They won it “fair and square”
Enrique Razon’s Monte Oro Grid Resources, in partnership with Calaca High Power Corp. and China’s State Grid Corporation, won the bid for the Transco power grid concession.
The bid was awarded by the Power Sector Assets and Liablities Management Corp. (PSALM), a government agency headed by Jose Ibazeta, a director on the board of at least one Razon company.
Ibazeta assures us there’s no conflict of interest there.
He said, “And everything’s so transparent, so how can it be said that this is ‘lutong macao’?”
Definitely it’s not “lutong macao”. The Chinese partner is from the mainland not Macao. If we must use analogy, the correct term is “shanghied”. Like the NBN deal.
But that has nothing to do with winning the bid because we know this regime does not tolerate corruption.
Enrique Razon was the treasurer of Team Unity. He is a very close associate not only of Mike and Gloria Arroyo but also Gloria’s brother, Diosdado “Buboy” Macapagal Jr., who is connected with Monte Oro.
But there’s nothing wrong with that Raul Gonzalez of justice assured us. He said Buboy was only a nominal member of the Monte Oro board.
“Assuming that he participated, it’s unfair that just because he is the brother of the President, he will be deprived of joining (the auction). He’s a legitimate businessman,” said Gonzalez. Just like Joey De Venecia.
“It was the corporation that participated. The personality of the corporation is different from the individual,” he added. Just like AHI was to Joey De Venecia.
The last time we heard about Enrique Razon was on the morning when Joey De Venecia testified before the Senate about an interesting conversation he had with Mr. Razon. That was the morning of the afternoon of the day when Erap was pardoned.
At any rate, here’s the story told by Joey. (I’m quoting from my own report of that testimony.)
(START) “He (Joey De Venecia) said he called Razon after the famous back-off encounter with Mike Arroyo. Razon asked him to go to the ICTSI office in Port Area.
Jamby (Sen. Madrigal) asked, What happened there?
Joey replied, I told Razon about the back off incident.
He (Razon) reacted: “Putangina kasi yung Abalos na yan. Sinabi pa niya kay Mike meron siyang 70 million dollars dito, hindi na nakalimutan ni Mike.” (END)
The testimony would have made bigger headlines than “Back Off!” but it was buried by news of Erap’s sudden pardon. I’m not implying the pardon was rushed to bury Joey’s revelation. I know this regime would never do that.
Anyway, it’s the biggest privatization in Philippine history. For $3.9 billion, 25% down and 20 years to pay the balance at market rate plus 2.3%, the Razon-led consortium got the Transco power grid concession that includes transmission lines with fiber optic broadband capability. BROADBAND TOO when the deal pushes through.
But it’s not yet a done deal. A joint Senate-House investigation committee, co-chaired by Sen. Miriam Santiago and Rep. Mikey Arroyo, is still looking into it.
If there’s anything wrong with the deal, you can be sure the co-chairs will see to it that anybody liable will be held accountable. “And you can take that to the bank,” as Enron executives used to say.
And that’s why Miriam immediately cleared Ibazeta.
“He (Ibazeta) is saying that there is no conflict of interest. I am chair of a terminal services corporation and we are here dealing with the power sector, so I don’t see any conflict between terminal services and the power sector,” Santiago said.
But it turns out that it’s really none of her business. “Whether there is any irregularity in the bidding process itself or in the projected dire consequences of the sale to this winning bidder, that will be taken up by another committee,” Santiago said.
To male a long story short, and to put everyone’s suspicions to rest, Mrs. Arroyo’s mayor domo, Cerge Remonde said, “The Palace has nothing to do with the awarding of the bids in the power industry.”
So there. They won it fair and square.
on December 14th, 2007 at 1:50 am
Yeah, they can tell that to their fellow pigs and crocodiles!
on December 14th, 2007 at 6:31 am
Noticed the long nose of razon in the picture , just like pinocchio when he lies.
on December 14th, 2007 at 11:15 am
Thanks for showing that Erap’s pardon was meant to bury the revealations of Ricky Razon.
Survival mode.
on December 14th, 2007 at 1:15 pm
[...] Uniffors takes a look at the ongoing Transco bidding. [...]
on December 14th, 2007 at 2:09 pm
For $975 million (25% D/P), they got an asset worth $3.9 billion. And since Transco is one of the few government cash-cows (they sell only the profitable GOCCs to their friends [ or to themselves?]), the balance will be paid through future profits. Ginisa tayo sa sarili nating mantika.
No, they didn’t win fair and square. They won bigtime!
on December 14th, 2007 at 6:13 pm
You said it shaman. Why don’t they the non performing assets like Napocor?
Cronyism is still here, only the characters have changed.
on December 14th, 2007 at 8:54 pm
There’s got to be a few good men out there….
Scoping…. Plotting…. to end this madness!
Vigilante justice, probably?
on December 14th, 2007 at 10:05 pm
Monopolies and dynasties, that is what the Philippines is all about.
on December 14th, 2007 at 10:15 pm
[...] Recently, one of my partners in the botched deal won a big, big contract in the power sector. A deal worth more than ten times the value of the project I was brokering and also with a Chinese group. Now I see that there are the usual suspects raising the usual tiring suspicions. But what evidence do they really have? Nada. Tengo razon? Si! [...]
on December 14th, 2007 at 11:01 pm
onionista,
Please tell him to call us when he has our 200
on December 14th, 2007 at 11:09 pm
To quote Razon’s reaction….
Putangina kasi yung Abalos na yan.
My reaction to Razon….
Pu_______ mo rin! Wow! It feels good!
Fair and balanced!
on December 14th, 2007 at 11:50 pm
merce,
They won’t sell Napocor to themselves because it’s a loser and they would have to shell out serious money from their own pockets to turn it around. So, they just content themselves in milking an emaciated cow - by overpricing the coal supplies.
Bastards!
on December 15th, 2007 at 9:01 am
The recent ‘power grabbing’ by E.R.(jr) is a literal translation. The Junior finally had his way! if the ‘Don’ is still alive, ICTSI will continue to be the dominant fixture of internatonal container vans biz, without dipping its finger in business Politics.
Further, it’s also just unfortunate that sister Terry had to leave this world early and joined our Creator; conversely, she would not be a witness to a mesh that brother Jr got entangled into, with some ‘biz advisers’ of diversification.
The die is cast and it’s so hot to really ‘touch’ it. I just hope that the different pens inked here, can do the job of making the real-life (typographical)changes in power biz.
Perhaps, E.R.(jr) got the push that became a shove and catapulted him to be in the ‘energy biz’! Some smart alecs may have said: “Look at the Lopezes, they have Meralco and yet owns an IPP (Independent Power Producer); the same IPP that extends power to meralco, which in turn, supplies electricity to more than 24million subscribers!”—that’s big money, and further hold, by the neck, its subscribers and tell the press that the energy biz is perennially losing that’s why gov’t must subsidize or guarantee its debt-to-equity with international banks and/or fnancial institutions.
(just imagining how E.R.(jr) was convinced
“Besides, Señor Ricardo, yung mga container vans mo, mabubulok sa kalawang and ultimately, you will reach ‘that point of diminishing return’; kaya diversify na tayo!-dto tayo sa TRANSCO, malakas backer natin. Tsaka dapat lang na may ROI (Return of Investment) tayo, noh, dun sa nakaraang elecsyon. This is it!”
on December 16th, 2007 at 11:58 pm
[...] Chief of staff Eduardo Ermita revealed that visitors will each receive an envelop containing an undetermined amount in cash; a food basket with cans of Century tuna, ham, chestnuts, and century eggs; and 500 kilowatt-hours of free electricity from Monte Oro of Enrique Razon, prospective operator of the national transmission system. [...]