House of Representatives (Ellson Quismorio/ MANILA BULLETIN)

Privately-owned power grid operator National Grid Corporation of the Philippines (NGCP) has reiterated to congressmen that it is Filipino-led company.

NGCP highlighted this during the motu propio hearing of the House Committee on Legislative Franchises on the transmission firm's existing operating franchise on Tuesday, Jan. 14.

Lawyer Lally Mallari led the NGCP representatives in the seven-hour hearing, which was presided by committee chairman, Parañaque City 2nd district Rep. Gus Tambunting.

The consortium comprised of Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and State Grid Corporation of China won the bidding for the operation of the country’s transmission grid for a purchase price of $3.95 billion.

Monte Oro Grid Resources and Calaca owns 60 percent of the company while State Grid Corporation of China holds 40 percent, meeting the law’s requirement for foreign investors.

The NGCP is under fire for its alleged violations to its franchise, which Congress can revoke at any time.

Shutdown button?

Clark Agustin, NGCP assistant vice president for system operations, clarified that NGCP abides by the internal procedures outlined under the Philippine Grid Code.

“Decisions are based on established procedures. Mayroon para sa maintenance at mayroon din para sa emergency,” Agustin said. He added that there are control centers in Luzon, Visayas, and Mindanao.

“If you decide to cut off power for entire country, wala pong ganun (there's no such thing). Wala rin pong central control point na single button (There's no such thing as a central control point that's a single button),” he clarified.

Agustin also allayed worries about the China-made equipment used by NGCP for its operation, and noted that China was a technical partner allowed by government.

“Wala pong midnight deal na nangyari. Transparent po ang NGCP sa lahat ng mga galaw at transaksiyon nito,” he pointed out.

(There was no midnight deal. The NGCP has been transparent in all of its activities and transactions.)

'Compromised in favor of foreigners'

During Tuesday's hearing, Batangas 2nd district Rep. Gerville “Jinky Bitrics” Luistro raised concerns over the potential foreign control of the NGCP. 

For her, the company's compliance with constitutional requirement of 60 percent Filipino ownership and the exclusive appointment of Filipino citizens to executive and managerial roles isn't so clear-cut.

“It is indeed my humble submission that while, based on the General Information Sheet (GIS) of NGCP, only 40 percent is Chinese-owned, considering, however, the presence of Chinese citizens—one as chairman, the other two as evaluators of bids, the other one as chief technical officer, and NARI, which I believe is Chinese IT infrastructure—it seems that control over the NGCP has been compromised already in favor of foreign nationals,” Luistro said.

While the ownership structure appears compliant with constitutional requirements on paper, the Batangas solon argued that the presence of foreign nationals in strategic roles undermines the intent of the law and poses risks to national security.

The "Young Guns" member said the presence of these foreign nationals in critical positions not only undermines the intent of constitutional safeguards but also raises questions about who really has operational control over the grid.

NGCP official Pia San Diego insisted during the hearing that the company adheres to constitutional requirements. She asserted that all executive and managerial officers were Filipino citizens.

However, Luistro challenged this claim, and argued that positions such as chairman of the board, chief technical officer, and evaluators of bids clearly fall under managerial roles.

“How do you consider a chairman of NGCP? Is it not a managerial or executive position?” Luistro asked, to which San Diego argued that the chairman wasn't considered an executive officer.

Chinese nationals

Luistro noted that the GIS identifies Zhu Guangchao, a Chinese national, as chairman of the board. She also cited other Chinese nationals in the NGCP leadership, including Liu Zhaoquiang, described as assistant chief technical officer; and Liu Xinhua, chairman of the board audit committee.

“These two officers are responsible for hiring employees and signing contracts with them. Having said so, Mr. Chair, may we hear from NGCP—are you still maintaining your position that executive and managerial officers are Filipino citizens?” Luistro asked.

“Your honor, we maintain that all our executives and officers are all Filipino," San Diego said.

Luistro then presented additional records indicating the presence of Wen Bo, described as Chief Technical Officer and also a Chinese national.

“With that, I wish to manifest without asking anymore that NGCP’s operations are clearly participated in by individuals who are not Filipino citizens,” said the congresswoman.