Lawyer questions Leviste’s qualifications for multibillion-peso franchise

Seasoned litigator and DAILY TRIBUNE columnist Estrella Elamparo has raised questions over how Batangas 1st District Rep. Leandro Leviste secured a multibillion-peso solar power franchise in his early 20s despite what she described as his limited experience in the energy sector at the time.

“Leandro Leviste was only around 20 or 21 when he dropped out from university and entered the energy business. By the time the franchise was granted, he had no known record of employment or executive training in an established power company,” Elamparo said.

“There is nothing inherently wrong with being young, leaving college or becoming an entrepreneur. But operating an ordinary private business is one thing; receiving from Congress a 25-year authority to generate, distribute and sell electricity to captive consumers is something else,” she added.

Elamparo noted that the franchise granted to Solar Para sa Bayan Corp. (SPSB) authorized the company to establish renewable energy systems and microgrids in qualified areas across several provinces, cities and municipalities.

She also pointed to subsequent difficulties involving Leviste’s energy ventures.

Leviste confirmed in January that SPSB had ceased operations, while his Solar Philippines Power Project Holdings Inc. (SPPPHI) was penalized by the Department of Energy over its failure to meet commitments involving thousands of megawatts of power projects.

“Leviste himself has said that SPSB incurred approximately P500 million in losses and eventually shut the facility down. He has also maintained that SPSB stopped operating and that its franchise was consequently revoked by operation of law after two years of continuous non-operation,” Elamparo said.

She said the circumstances surrounding SPSB’s operations warranted closer scrutiny of how Congress evaluated the company before granting the franchise.

“In other words, the principal venture used to demonstrate SPSB’s capability allegedly operated without essential regulatory approvals, sustained substantial losses and ultimately failed,” she said.

“How, then, did a company with such limited and questionable operating history obtain a franchise of this magnitude? What technical, financial and managerial qualifications did Congress independently verify? What due diligence was conducted concerning Paluan’s permits, rates and regulatory compliance?” she asked.

Elamparo also questioned whether the Department of Energy and the Energy Regulatory Commission had been consulted regarding SPSB’s compliance before Congress granted the company broader authority.

“Were the DOE and ERC asked to certify that SPSB had lawfully operated its existing facilities before legislators entrusted it with authority over communities across the country?” she said.

She further questioned whether Leviste’s family connections may have had a bearing on the grant of the franchise, noting that Sen. Loren Legarda was serving in the Senate when the franchise was granted.