imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Philippine Congress asked to suspend interest for ?corrupted debts? in 2012 budget

by Freedom from Debt Coalition (FDC) Saturday, Sep. 03, 2011 at 1:44 AM

MANILA, Philippines ? On the last few days of the budget committee hearings, a debt watchdog has asked the House Committee on Appropriations to follow President Benigno S. Aquino III?s example by suspending interest payments for ?corrupted debts and deals? in the proposed 2012 national government budget.

Philippine Congress ...
2011-fdc-repeal-debt-philippines.jpg, image/jpeg, 476x317

The Freedom from Debt Coalition (FDC) stressed that the move will bolster the drive towards more efficient infrastructure spending in the future.

“If the President himself is willing to use his political capital to suspend anomalous debt-financed deals, I cannot see why the Congress will not be able to hold its other end of the stick and withhold payments for these deals until they are investigated or renegotiated”, said FDC vice president Emmanuel Hizon.

Hizon cited Aquino’s recent move to renegotiate the controversial North Luzon Railways Project, which cost ballooned from 1 million to 1 million from cost-overruns and had been the subject of numerous Senate investigations by Senator Frank Drilon. Other questionable debt-financed projects have been cancelled, including the P18.7 billion (0 million) Belgian-funded Laguna Lake dredging project and P12 billion (6 million) French modular RoRo ports.

“We know of the good track record of Committee on Appropriations Chair Joseph Abaya, and we are sure of his capacity to implement such a breakthrough reform if only he will be willing to,” Hizon said.

Obstacle to justice

Hizon said that the practice of suspending interest payments for questionable debts goes back to 14th Congress, but has been continually vetoed by then President and now Pampanga Representative Gloria Macapagal-Arroyo.

“At that time, Arroyo had been a huge obstacle to justice by continually opposing this House measure, fearing that the subsequent investigations will eventually uncover more of her questionable debt deals, more of her NBN-ZTE’s and Northrails,” Hizon said.

Hizon said that with the current administration’s drive against corruption, Congress can expect a “more favorable outcome this time.”

“Ang paggugol na matuwid ay ang hindi pagpabayad sa di makatarungang utang. (Proper spending is when you do not pay for unjust debts,” Hizon concluded.

________________________________________________________



Junk Napocor, Psalm petition to increase universal charge, FDC urged ERC

MANILA, Philippines – The petition of National Power Corporation (Napocor) and Power Sector Assets Liabilities Management (PSALM) seeking to recover stranded debts and contract costs amounting to almost P140 billion or equivalent to 40 centavos per kilowatt-hour through the universal charge (UC) should be denied by the Energy Regulatory Commission for lack of merit and substance, according to the Freedom from Debt Coalition.

In a protest action outside the Ortigas office of the regulatory body coinciding the public hearing on the said petition, FDC members from various communities and Youth Against Debt brought giant “scissors” demanding cuts in electricity rates in the country, which, at present, has the highest residential power rates in Asia at 24.566 US cents per kWh.

The group also brought a giant paycheck illustrating the latest total debts of Napocor and PSALM, amounting to P729 billion ( billion, P42:) under the account name of Juan de la Cruz. They then cut up the check with scissors, symbolically rejecting the huge debts intended to be passed on to ordinary consumers in the next 25 years.

FDC claimed that PSALM is “hiding behind small numbers” because the agency’s “true and cruel intention” is to pass on the entire debt to ordinary consumers. The group added that raising awareness about this issue among the public is vital.

PSALM is mandated under Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) to calculate the amount of stranded debt and stranded contract costs of Napocor. EPIRA defines stranded debts as any unpaid financial obligation of Napocor that has not been liquidated by the proceeds from the privatization of its assets. On the other hand, stranded contract costs are those excess contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of these contracts in the market.

In their petition, Napocor and PSALM seek the approval of stranded contract costs portion of UC in the amount of P74.298 billion to be imposed at the rate of P0.3666/kWh, and stranded debts portion of UC in the amount of P65.019 billion at the rate of P0.0313/kWh. The petitioners seek to impose these additional rates to customers of the Luzon, Visayas and Mindanao grids. They await the issuance of provisional authority in order to start charging electricity consumers with these additional rates pending approval of their petition.

Job Bordamonte, FDC power campaign coordinator, said that privatization of assets held by government-owned entities – in this case Napocor – “strands” certain costs. This is because obligations incurred in pre-existing expenses/debts pertaining to acquisition and maintenance of those assets would have been recovered by Napocor through its return-on-rate-base (RORB).

“But these could no longer be recovered when the assets were sold to private entities and could no longer be operated by Napocor for electricity-generation,” said Bordamonte.

In its intervention, FDC cited a paper by William J. Baumol and J. Gregory Sidak published in the Harvard Journal of Law and Public Policy (Volume 18, Number 3, Summer 1995), explaining that these costs represent expenditures incurred in the past while meeting its obligation to serve all customers within the area in which it holds an exclusive franchise.

“However, the entry of competitors who are not burdened by such inherited expenses can prevent the utilities from recovering those costs,” FDC said.

The ERC has denied PSALM and Napocor’s first petition on 15 November 2010 due to their failure to substantiate their application for proposed rate increase. The original amount of the said application was P573 billion for stranded debts while stranded contract costs was around P22 billion and P26.865 billion. FDC was one of the many opposed to the said application.

However, FDC has learned during the budget deliberation last August 9 at the Lower House that PSALM’s most updated debts continue to surge, amounting now to billion or P729 billion (P42:). FDC believes that a series of applications is still being worked out by PSALM and Napocor until the entire amount is paid for by consumers.

In addition, FDC said that the petition on stranded debts tends to lump all types of Napocor losses together to be paid for by electricity consumers through the UC. “This opens the door to double recovery for Napocor, such as actual and/or constructive recovery through its regulated rates and recovery through the UC,” FDC said.

According to FDC, “most of the amount in the latest applications does not have any relations to our legitimate usage of electricity because these are mainly financial obligations in the form of debts which are being borne-out over the past years of government incompetence, mismanagement and wrong policies that continue to aggravate the lingering problems of our national debt as well as our power industry.”

FDC said that despite the EPIRA’s formula of selling government assets, imposing various additional charges, and assuming P200 billion of Napocor debt, the debts of Napocor and PSALM continue to balloon while the lives of ordinary consumers have worsened in the last ten years under the EPIRA law.

FDC said the present administration must acknowledge that this is no longer a business-as-usual approach in relation to the issue of ever-increasing power rates which are being left alone in the hands of ERC commissioners.

Invoking President Benigno S. Aquino III’s slogan of “matuwid na daan,” FDC said that this is a matter of national survival and that the need for a debt audit and cancellation of onerous Napocor loans are urgent

http://www.fdc.ph/

Report this post as:

MANILA, Philippines

by Freedom from Debt Coalition (FDC) Saturday, Sep. 03, 2011 at 1:44 AM

MANILA, Philippines...
2011-philippine-protest-epira.jpg, image/jpeg, 432x288

Report this post as:

LATEST COMMENTS ABOUT THIS ARTICLE
Listed below are the 10 latest comments of 1 posted about this article.
These comments are anonymously submitted by the website visitors.
TITLE AUTHOR DATE

Local News

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A12 5:39PM

lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

TheMilitary of Yemen IN In The 1990's A26 5:42PM

The Shortwave Report 04/27/18 Listen Globally! A26 4:03PM

Federal Bank Examiner FDIC recalls year long 1999 robbery in 2017 A26 3:24PM

Doxa du lobby A25 2:03AM

Tech workers organize A24 6:24PM

Architect Stephen Francis Jones A24 3:01PM

UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for A24 12:34PM

Xyloglossie attitudinale A23 8:07AM

What does the Quran Say About Islamic Dress?? A21 4:15PM

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy