On Thursday, progressive organizations lodged an allegation of graft against DOE Secretary Raphael Lotilla, accusing him of breaching a coal moratorium by showing partiality towards the expansion of a power plant in Toledo City, Cebu. Sanlakas, Power for People Coalition (P4P), and Bukluran ng Manggagawang Pilipino Chairman Emeritus Leody De Guzman jointly submitted a criminal complaint citing a violation of Republic Act No. 3019 (the Anti-Graft and Corrupt Practices Act), as well as an administrative complaint alleging grave misconduct and behavior prejudicial to the best interest of the service. These complaints are in connection with Lotilla’s purported “endorsement” of Aboitiz’s Therma Visayas Inc. (TVI) Unit 3 expansion.
Violation of Coal Moratorium
They claim that Lotilla’s alleged approval breaches a coal moratorium imposed by the DOE in 2020 under the leadership of former President Rodrigo Duterte.
During the moratorium, the DOE informed stakeholders that it would not be accepting applications for new coal-fired power generation facility projects seeking endorsements and existing and operational coal-fired power generation facilities, among other types of projects.
Implications of Expansion Approval: Allegations and Claims
In a statement, P4P Convenor Gerry Arances mentioned that Secretary Lotilla’s approval of the TVI expansion raised electricity costs for Cebu residents, worsened pollution in the Central Visayas, and showed favoritism towards AboitizPower, his former company.
Furthermore, AboitizPower was granted an exemption from the coal moratorium, a special privilege not extended to other companies.
“Walang lugar ang interes ng malalaking negosyo sa kuryente, konsyumer dapat ang bigyan ng prayoridad. Oras na para sagutin ni Lotilla ang mga alegasyon na binabato laban sa kanya,” De Guzman, for his part, said.
(The focus in electricity should be on prioritizing consumers over the interests of big businesses. Lotilla needs to address the allegations made against him.)
Arances also highlighted that the TVI expansion was given the green light last year, three years after the agency implemented its coal moratorium in 2020.
“Aboitiz Power, as late as 2023, could not even decide if the plant will be fueled by coal or gas. However, despite the moratorium, they decided to use coal, and the Department of Energy approved their request and claimed the project was exempted despite the project not obviously in the coal pipeline when the moratorium was issued,” he added.