Energy dep’t files complaint vs Leviste, firm over idle solar projects

By Erika Mae P. Sinaking, Reporter

THE Department of Energy (DoE) filed a criminal complaint against a House lawmaker and his solar firm for allegedly failing to operate its national franchise, citing a seven-year period of total project inactivity.

Energy Secretary Sharon S. Garin, in an eight-page complaint-affidavit, sought an investigation into businessman-turned-politician Leandro Antonio L. Leviste and five other board members of Solar Para sa Bayan Corp. (SPSB/SPBC) over alleged violations of the Public Service Act.

Ms. Garin personally lodged the complaint before the National Prosecution Service of the Department of Justice on Wednesday.

“To this date, no application whatsoever has been lodged by SPSB/SPBC, nor has any report been filed regarding its compliance with the terms and conditions of the franchise,” the complaint read.

“Interestingly, when the legislative franchise was granted in 2019, SPSB/SPBC had no single project or operation to speak of,” it added.

The DoE said it has no record that the company applied for the permits and approvals required by law, and although there was an application for a solar project in Occidental Mindoro, there’s no signed contract or proof the project is actually underway.

It also noted that the company failed to submit required reports under the relevant energy laws.

According to the department, renewable energy projects were instead established and operated for profit through a separate group of companies under the umbrella of Solar Philippines Power Project Holdings, Inc. (SPPPHI), which it said was wholly owned by Mr. Leviste.

These projects include the 63.3-megawatt Calatagan Solar Farm located in the towns of Calatagan, Lian, and Balayan in Batangas, where he currently serves as district representative.

Republic Act No. 11357, signed on July 2019, granted the solar company a 25-year legislative franchise to build and operate renewable energy microgrids and distributed energy systems in remote, unviable, unserved, or underserved areas across several provinces in the Philippines.

Under the terms of the law, a franchise is deemed automatically revoked if the grantee fails to operate continuously for a period of two years.

The DoE argued that even if the franchise has not yet been officially revoked, the company’s failure to operate is already a violation of the Public Service Act. 

“As such, the willful neglect and failure to fulfill the obligations under the legislative franchise of SPSB/SPBC, coupled with the disregard of the obligations therein in favor of the operation of another corporation, SPPPHI, are badges of fraud that defeat public convenience and warrant the piercing of the corporate veil, thereby holding the respondents personally liable,” it said.

Justice Secretary Raphael Niccolo L. Martinez told reporters that the complaint is still under evaluation and has not yet been docketed before the Department of Justice.

“Should the evidence, upon evaluation, be found sufficient, the complaint will be docketed accordingly for the conduct of a preliminary investigation,” he said via a Viber group chat.

‘WEAK’ COMPLAINT
In response, Mr. Leviste described the complaint as “weak,” noting he has only seen a copy of it through media reports.

In a statement on Thursday, he pointed out the timing of the complaint, which followed the filing of a House resolution, condemning him for his alleged “baseless, malicious, and irresponsible” claims against Executive Secretary Ralph G. Recto and Governor Vilma Santos-Recto.

“It is also noteworthy that this coincides with [Batangas Rep. Ryan S.] Recto’s resolution and with my call to investigate [ES] Recto’s connection to [Party-list Rep. Edwin L.] Gardiola,” he said in Filipino, adding this also comes as he accused them of having links to Batangas Department of Public Works and Highways contractors and small town lotter operator Refresh Gaming Corporation.

“I would also like to point out: This sets a precedent for future administrations to file nuisance complaints against officers and directors of public utilities in the Philippines—including ABS-CBN, GMA, TV5 and Philippine Star.”