Lanao del Sur 1st district Rep. Zia Alonto Adiong said that the franchise issue involving Batangas 1st district Rep. Leandro Legarda Leviste's solar energy company is akin to a "ghost project".

Adiong, a member of the House Committee on Energy, said that if proven true, the claims raise serious questions about the use of government-granted privileges, particularly on franchises.

"Sa akin, pag binenta mo ‘yan dahil tatakasan mo lang, anong pinagkaiba niyan sa mga ghost projects na merong obligasyon ka na dapat gawin tapos tinakasan mo? So walang pinagkaiba,” Adiong said in a news forum over the weekend.

(For me, if you sell that just to escape, how is that any different from ghost projects where you had obligations to fulfill but abandoned them? There’s no difference. )

The Mindanaoan underscored that his remarks were premised on the allegations as reported, and that the matter ultimately hinges on verification, due process, and the establishment of facts.

Notheless, Adiong stressed that the issue carries enough weight for lawmakers to scrutinize closely once Congress resumes session, especially if it involves alleged failure to deliver on commitments tied to government approvals.

“I don’t know if there’s already a resolution that has been filed to investigate this case. So I think kailangan talaga natin masusing tingnan ito (I think we need to examine this thoroughly)," he added.

Solar Para Sa Bayan Corp. (SPBC), one of Leviste’s companies in the power sector, was awarded a congressional franchise through Republic Act (RA) No. 11357 in 2019 to construct, install, and operate solar-powered microgrids in remote areas.

Leviste on Friday filed a civil libel complaint against Presidential Communications Office (PCO) Undersecretary Claire Castro, and accused her of spreading false claims that he illegally sold the franchise of SPBC. He is seeking P100 million in moral damages, P10 million in exemplary damages, and P1 million in attorney’s fees.

There have been allegations that SPBC was sold or transferred even as certain deliverables were supposedly not fulfilled. This raised questions on compliance, responsibility and transparency.

“Well, una-una (first of all) … ang (the) grant of franchise is not a right, it’s a privilege granted to the one that is being given this franchise. So ibig sabihin, it’s a state right … hindi mo pupwedeng ibenta (you cannot sell it),” Adiong explained.

Adiong noted that existing provisions typically require Congress to be notified first if there is a merger, transfer or sale involving controlling stocks of a franchise holder. He said that such a move changes the identity, responsibility and capability of whoever is expected to operate under that privilege.

“Actually, under sa batas, if there’s a merger or selling or transfer of any of the controlling stocks ng isang kumpanya na binigyan ng grant (of a company that was provided a grant) to operate under this franchise, it should first notify the House of Representatives. That’s very clear in the law. … So, violation po talaga ‘yan sa batas (that's really a violation of the law),” Adiong said.

He added that beyond the legal requirement, the logic is straightforward: once ownership and control shifts, Congress has a duty to reassess who is effectively holding the franchise, whether the new structure still meets the intent of the grant and whether accountability is being preserved.

“Kasi hindi po pupwedeng ibigay kung ano pa yung pribiliheyo na ibinigay sa iyo. Kung ibebenta mo man ito yung stocks mo, controlling stocks mo, magme-merge ka, mag-iiba po yung definition kung sino ang dapat na bigyan ng prankisang ito,” he further said.

(Because you cannot simply transfer the privilege that was granted to you. If you sell your stocks, even controlling stocks, or merge, the definition of who should be granted the franchise changes.)

“So kailangan talaga kung sino yung may kapangyarihan na nagbigay sa iyo ng prankisa, dapat yun po ay i-notify mo. At least man lang sabihan mo na there’s a plan to merge, to sell or whatever form you want your company to take on,” he added.

(So it’s really necessary that whoever gave you the franchise must be notified. At the very least, you should inform them that there’s a plan to merge, to sell, or whatever form you want your company to take.)

Leviste, a rookie congressman, has packaged himself as a hardliner against infrastructure corruption, particularly on anomalous and ghost flood control projects.

On Tuesday, the Department of Energy (DOE) imposed a P24-billion fine on Solar Philippines Power Project Holdings Inc. (SPPPHI), the parent firm of the solar business linked to Leviste, for allegedly failing to generate power committed under more than 30 government service contracts.

Leviste, however, rejected the claim, and said the projects could not move forward because they were not issued permits to proceed.

He said the franchise of SPBC was automatically revoked and rendered moot in 2022 after the DOE failed to issue implementing rules. He added that the company he sold was SP New Energy Corp. (SPNEC)—which had no franchise—to Manila Electric Co. (Meralco).

Adiong says the issue is still worth investigating. "I guess the House of Representatives should look into because there seems to be a corporate layering to obfuscate the issue at hand,” he said.