The Commission on Audit (COA) has affirmed with finality its decision that ordered the Power Sector Assets and Liabilities Management Corporation (PSALM) to pay Southern Philippines Power Corporation (SPPC) $6,199,684.61 and P80,358,014.48 for contractual obligations.

The ruling was issued as the COA denied the motion for reconsideration filed by PSALM against the Oct. 1, 2024 decision that granted SPPC’s petition against PSALM for the payment of obligations under the Energy Conversion Agreement for the period Aug. 26, 2010 to April 25, 2016.

In its motion, PSALM argued that the claim did not exist at the time of the effectivity of the Electric Power Industry Reform Act of 2001 (EPIRA), and thus, PSALM cannot be made liable for the amounts. It also alleged that the money claim was immature.

However, the COA found the motion without merit. "The grounds raised by PSALM are mere rehash of the arguments in its Answer to the Petition for Money Claim, which have been considered and judiciously passed upon in the decision," the COA ruled.

It explained that the PSALM was created to liquidate all financial obligations and standard contract costs of the National Power Corporation (NPC) in "an optimal manner." This also meant that PSALM will assume all of NPC's liabilities existing at the time of its creation, it also said.

"Without a doubt, PSALM is statutorily mandated not only to privatize NPC's generation assets, but also to manage the proceeds obtained from privatization including its net profits and use these proceeds to settle all of NPC's financial obligations, without exception," the COA stressed.

The four-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioner Douglas M.N. Mallillin.