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The House of Representatives’ committee on legislative franchises is set to investigate franchise issues involving solar companies linked to Batangas Rep. Leandro Legarda Leviste, amid mounting controversy over renewable energy contracts.
Negros Occidental Rep. Jeffrey Ferrer, chair of the committee, said the planned probe is a matter of legislative duty and not politically motivated, stressing that the panel is obligated to act on franchise-related concerns brought before it. The investigation will proceed once the House committee on rules gives clearance.
“This is nothing personal. This is just work,” Ferrer said, emphasizing that the committee has the authority to cancel or terminate franchises if violations are established. He added that while Leviste has positioned himself as an advocate against corruption, the committee’s actions are independent of those claims.
Motu Proprio Investigation
Ferrer said the committee had already approved a motion to conduct a motu proprio investigation into the franchise of Solar Para sa Bayan Corp. (SPBC), a company founded by Leviste under the Solar Philippines group. The motion was raised by Philreca party-list Rep. Presley de Jesus and supported by APEC party-list Rep. Sergio Dagooc, both of whom had earlier expressed opposition to SPBC’s franchise application.
According to Ferrer, concerns raised during the original franchise deliberations in 2017 resurfaced following recent public controversies involving Leviste. SPBC was granted a 25-year franchise in 2019 under Republic Act No. 11357, but critics warned at the time that the law could disadvantage small, mini, and microgrid operators by giving SPBC an undue edge over other renewable energy developers.
Discussions on the franchise intensified after Leviste made public statements alleging corruption in infrastructure projects, including claims that companies owned by lawmakers benefit from government contracts. While these remarks drew public attention, they also prompted renewed scrutiny of Leviste’s own business interests.
DOE Penalties
The controversy was further fueled by the Department of Energy’s (DOE) recent enforcement actions against Solar Philippines Power Project Holdings Inc. (SPPHI), another Leviste-founded firm. Earlier this month, the DOE imposed penalties totaling P24 billion on SPPHI and terminated numerous power supply contracts for failure to meet project timelines.
Energy Secretary Sharon Garin said the DOE canceled 163 delayed or non-performing energy projects across various firms, noting that about 64 percent of them were handled by SPPHI. She stressed that the actions were based on performance metrics and contractual obligations, not politics.
Apart from the fines, the DOE also canceled idled contracts with SPPHI, including 33 projects awarded under the Green Energy Auction Program (GEAP), as well as several agreements signed between 2014 and 2019 outside the auction scheme. Garin said SPPHI had a documented history of underperformance, contradicting claims that the company was being singled out.
Lanao del Sur Rep. Zia Alonto Adiong subsequently called for a broader probe, likening the stalled projects linked to Leviste’s firms to “ghost projects”.
Dispute Over Franchise Status
Leviste has maintained that SPBC had already ceased operations years ago and that its franchise was “ipso facto” revoked in 2022, citing provisions that automatically terminate franchises when companies stop operating for two years.
Ferrer, however, questioned whether such revocation was properly documented. While acknowledging the concept of automatic revocation, he said formal congressional action may still be necessary to establish a clear legal record.
“Here, for example, that has no receipt. It’s not documented,” Ferrer said, explaining that hearings would help determine whether the franchise was effectively revoked or could still be revived. He added that the committee may eventually issue a formal recommendation to cancel or disenfranchise the company, depending on the findings.
Ferrer also said Leviste would be invited to the hearings, noting that as the company’s owner, his testimony would be essential to clarifying the issues.
Leviste Welcomes Probe
For his part, Leviste said he welcomes the congressional investigation, describing it as an opportunity to correct what he called false information circulating about his businesses. In a message to reporters, he said he plans to use the hearings to push for broader transparency among lawmakers.
Leviste challenged members of Congress to disclose their assets and campaign donors, declared or otherwise, to expose potential conflicts of interest related to public works projects and contractors. He said such disclosures would allow a more comprehensive examination of corruption concerns beyond his own companies.
“I am 100 percent for transparency and accountability,” Leviste said. He also claimed that issues concerning his firms have surfaced solely to silence him following his statements about alleged irregularities linked to files once handled by late Public Works Undersecretary Maria Catalina Cabral.
Garin has rejected these claims, reiterating that the DOE’s actions were driven by missed deadlines and unmet commitments rather than political considerations.
Source:
https://newsinfo.inquirer.net/2167583/levistes-solar-energy-firm-slapped-with-p24-b-fine
