AMBUSH INTERVIEW
Possible revocation of the NGCP Franchise | NGCP delayed IPO | VFA

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POSSIBLE REVOCATION OF THE NGCP FRANCHISE

Q: Sir, you issued a sort of threat. Do you not worry that this would somewhat appear as blackmailing or bargaining with the company who has sort of violated the Constitution?

SEN WIN: Hindi naman, dahil ito ang ating Constitution, ito ang pinaka-basic na batas, so dapat lahat tayo sumusunod pero kung may isang kumpanya na hindi sumusunod dito, wala siyang Karapatan na magnegosyo dito. Itong saligang batas natin ay pantay-pantay na tinutupad ng bawat isa. Hindi porket malaking negosyo exempted ka na.

Q: But why give them the leeway-parang sinabi mo it's either you allow the audit or we'll review your franchise? Bakit kailangan pang bigyan sila ng chance to allow the audit instead of proceeding to review the franchise?

SEN WIN: Kasi yung audit is a process that will validate these validations. Sa hearing, maraming violations lalong-lalo na sa mga dayuhan na nasa critical positions like management and executive positions. Yung audit ang magpapatunay na merong violations. Importante na magkaroon tayo ng proseso na i-audit sila, i-inspect at tingnan ang mga documents. Kapag napatunayan na may violations, lalo na sa Constitution natin, pwede natin i-revoke ang kanilang franchise.

Q: It seems na very glaring ang kanilang violations sa Constitution.

SEN WIN: Ready na ang DOE na mag-conduct ng audit. Matagal na nilang gustong simulan ito. Nakita ko sa documents na 2017 gusto na nilang mag-conduct ng audit dahil sila ang general supervisor ng ating energy sector. Kaso hindi sila pinapayagan kaya marami sa dokumento natin ay hindi nava-validate. Nakita natin kanina na may katotohanan sa mga ipinakitang dokumento sa atin.

Q: Personally Sir, will you move for the revocation or the cancellation of their franchise?

SEN WIN: Yes, kung may violation sa franchise lalo na pagdating sa protection ng public utilities. Very clear na kung ikaw ay public utility tulad ng TransCo, 60% dapat ay nasa Filipino at ang management at executive ay dapat nasa Filipino. Dito, nakita natin na ang Chief Technical Officer na syang may control ng lahat ng grid from Luzon, Visayas at Mindanao ay dayuhan. We need to validate the documents first. We have to remember na ang basis ng franchise ay ang Constitution. Kung napatunayan na may violations sa Constitution natin, then there is a violation on the franchise.

Q: As for the NGCP officials?

SEN WIN: Sa NGCP officials, dapat managot sila dahil alam naman nila na ang franchise ay pribilehiyo ito. This is a privilege for them to operate meaning any privilege there are mandates they have to follow. Dapat sundin nila ang mga binigay na patakaran. Isa dito ay ang pagsunod sa saligang batas.

Q: Gaano katagal?

SEN WIN: Hindi ito matagal dahil ang DOE ay ready na eh. Since 2017, gusto na nilang mag-conduct ng audit. Hindi lang technical audit, management audit din dapat pero hindi lang sila pinapayagan. Kanina nakita nating ang dahilan ay napakababaw dahil lang iba ang kanilang interpretasyon. Pero bakit mo iibahin ang interpretasyon kung very clear na nasa concession nila na ang audit na ito ay para masigurado na protektado tayong lahat bilang consumers.

Q: Yung audit report Sir ay gagawin niyo rin as basis to make the recommendation?

SEN WIN: Correct. One of the basis na gagawin natin para sa recommendation kung kakailanganing i-revoke ang franchise.

Q: Most likely, hindi niyo pa masasabi kung ano yung magiging recommendation niyo?

SEN WIN: I think nakita natin sa hearing na may basehan rin itong audit. In fact, makikita rin natin sa mga sagot na inamin nil ana meron talagang dayuhan. Yung isa ay Chief Technical Officer na matatawag natinng management and executive position. Very clear yan. Inamin nila at one point in time na may isang dayuhan na nagkokontrol sa Luzon, Visayas at Mindanao grid natin.

Q: Tama po ba ang interpretation na regardless if they submit themselves into an audit, mare-review pa rin ang franchise?

SEN WIN: Yes.

Q: So kailan Sir mangyayari yung audit?

SEN WIN: Binigyan ko sila until Monday para balikan tayo at kung hindi sila pumayag papasukin ang DOE, itutuloy naming ang aming recommendation na i-revoke ang franchise.

Q: Wala ba silang sinabi kanina na pumapayag sila to be audited by TransCo?

SEN WIN: I recognize na meron silang Board. Itong si Mr. Almeda ay magdidiscuss sa Board na 40% ay merong Chinese representatives so dapat mag-report muna siya sa Board at ipaliwanag muna niya ang instruction at balikan kami by Monday.

Q: Paano pag sinabing "no, you do not have the authority to audit our company?"

SEN WIN: Kung hindi sila papayag, yung mga sagot nila kanina tulad ng pagsang-ayon nila na merong dayuhan sa Chief Technical Officer position, yun ang gagamitin naming basehan. Very clear. Hindi mo kailangang maging abogado para maintindihan ito. Very clear na may violation sa management and executive requirement ng Constitution natin.

Q: Just to clarify, yung binabanggit ng NGCP na dapat ERC yung mag-aaudit?

SEN WIN: That's their interpretation.

Q: Pero yung ERC for the last five years, they have yet to conduct an audit on TransCo?

SEN WIN: Pwede namang mag-conduct ang DOE at ERC eh. Aayusin lang nila ang parameters. Sa ERC, tungkol yan sa rates at presyo. Sa DOE, tungkol sa performance including cyber security. Pag sinabi mong cyber security, sino ang mga nakaposisyon? Kanina lang ay lumabas na meron palang dayuhan na nakaposisyon, doon pa sa pinakamahalagang aspeto ng pamamalakad ng national grid which is the Chief Technical Officer.

Q: Yung ERC nakapag-check at audit na ba sila?

SEN WIN: Hindi nga sila pinapapasok eh. Yun ang problema.

Q: On the claim of ERC that hindi sila nakapag-audit initially because under the stipulations, yung funding ng audit should be funded by the NGCP. Do you see the need to look into the contract?

SEN WIN: Meron ding pagkukulang ang ERC dahil yung reset na matagal nang dapat ginawa, four years ago, ay hindi pa rin nila ginagawa. So ang regulator which is ERC ay may pagkukulang rin dahil kung nagawa nila ang pag-aaudit nila four years ago, ito yung reset na tinatawag, bababa pa ang presyo ng kuryente at makikita rin nila ang technical aspect. Kadugtong yan eh.

Q: Sir yung suggestion kanina, na-inform ba ang President about the situation?

SEN WIN: The President is the Chairman of the National Security Council at kanina sinabi ni Gen. Esperon na this infrastructure is imbued with national security interest. Ibig sabihin, itong imprastraktura na ito, ang grid na ito ay mahalaga sa atin pagdating sa pambansang seguridad. Kung naputol ang kuryente dyan, lahat tayo mamomroblema lalong lalo na pagdating sa negosyo. Kailangang i-elevate ito at malaman ng ating Pangulo dahil siya ang Chairman ng National Security Council at dapat gumawa ng mga hakbang. Una diyan, ang NSC ay dapat mag-conduct ng sarili nilang audit pagdating sa usapin ng national security. Pangalawa diyan, ano ba ang mga safeguards? Ano ang proteksyon na ginagawa natin? Kanina napakita natin sa Ukraine, almost 200 plus na mga kabahayan ang nawalan ng kuryente overnight dahil inatake ng mga hackers.

Actually, nakakabahala yun. Kung merong 100 attacks, ibig sabihin, anytime ay pwede tayong mawalan ng kuryente at hindi natin alam kung bakit. Importanteng malaman natin kung saan nanggagaling itong attacks. Sino ang gumagawa nito at bakit? Anong proteksyon anong pwede nating gawin? We have to remember ang cyber security ay tuloy tuloy ang evolution niyan. Gagawa ka ng firewall, ngayon o bukas lang, alam na nila kung paano pasukin yan. Kaya tuloy-tuloy ang paggawa natin ng proteksyon para hindi tayo mapasukan.

Q: NGCP was able to thwart?

SEN WIN: Yun ang claim nila. Ang problema nga, dahil hindi nakaka-audit ang gobyerno, hindi natin alam kung ano ang statement na yun kaya nga pinapa-submit natin to the committee ano ba tong attacks na sinasabi niyo dahil nakakabahala yan. Ako, first time kong narinig yan, nabahala ako dahil ibig sabihin anytime ay pwede nilang patayin ang kuryente natin.

Q: Sa first hearing, kumbinsido ka po ba na may enough grounds para irekomenda ang revocation ng franchise?

SEN WIN: Based on the documents at sa mga sagot nila, may basis tayo and this basis is the violation of the Constitution.

Q: Review or revocation?

SEN WIN: Review and revocation but this is subject to the validation of the DOE. Kailangang i-audit pa rin. Iba yung nasa hearing, iba yung nasa ground ka at tinitingnan ang mga documents.

Q: Sino ang mag-iinitiate?

SEN WIN: DOE.

Q: Until when are you giving NGCP to comply?

SEN WIN: We gave them until February 10 to comply.

Q: So pag dayuhan, mga Chinese talaga?

SEN WIN: In this case, Chinese dahil ang partner nila ay Chinese at based on the records, Chinese talaga but we are not isolating Chinese, it can be anyone. Sinabi ng Constitution, must be a Filipino. Very clear yan.

Q: Ayaw nga nila magpa-audit sa DOE eh.

SEN WIN: Ang approach diyan ay dalawang proseso. Unang-una, sa National Security Council, the President being the Chairman can exert his powers to conduct audit in light of our security aspect. Ang Presidente maraming kapangyarihan yan na pwede nyang sabihin na gawin nyo ito para malaman natin kung ano ang katotohanan. Pangalawa, in the department levels, sa DOE, they should also conduct audit. Mas technical ito because DOE has engineers to do the technical aspect. Q: Yung point na ni-raise ng NGCP na parang nawawala yung pagiging stable ng business environment dahil they signed this concession agreement tapos biglang mag-iiba.

SEN WIN: These businesses, when they engage business in the Philippines, they should know our laws especially the Constitution. Basic yan. Alamin mo ang aming batas lalong-lalo na ang Constitution. Ang na-violate nila, ang pinaka-basic natin sa lahat which is our Constitution. Kanina naman, tinanong natin at inamin nil ana meron talagang dayuhan na nasa Chief Technical Officer at pinakita natin sa slide na ang Chief Technical Officer is the second in rank sa grid. Pangalawa sya sa pinakamataas na posisyon sa national grid that controls everything.

Q: Bakit daw nila pinayagan?

SEN WIN: They couldn't answer that-

Q: Did they confirm na Chinese national?

SEN WIN: Chinese national siya-but going back to the stability, if businesses will comply with our local laws, with our constitution, then government has no reason to revoke contracts even the franchise. It's incumbent upon the business sector to comply and government should only validate, validate lang ang trabaho ng gobyerno.

Q: Halimbawa na revoke, wala yun effect sa overall power supply situation?

SEN WIN: Government can take over nasa franchise rin na ang government can take over through the President at nakasulat pa doon sa franchise nila, "public peril," ibig-sabihin kung delikado para sa publiko at disturbance sa peace and order, ang peace and order balang araw malalagay sa alanganin ang Pangulo ang pwede mag take-over.

Q: Capability?

SEN WIN: Alam niyo satin naman lahat TransCo eh, ang TransCo, ang transmission company of the Philippines ang nagpapatakbo netong transmission. So pagdating sa technical capability, meron tayo. Ang importante naman ngayon ang puno't dulo, protektado ba tayo? Kaya ba tayong papasukin ng cyber terrorists o mga hackers at patayin ang kuryente natin?

Q: When do you intend to hold the executive session?

SEN WIN: We plan to do it within the week, marami doon concerns sa national security, so magkakaroon kami ng executive session.

CYBER SECURITY

Q: Hackers?

SEN WIN: The only way to protect ourselves is to know who the attackers and what type of method they are using, magagaling na sila. We need to know what type of method we should be doing.

One attack, we should already be panicking, hindi na dapat yan umabot ng 10 attacks. One attack, we should study it carefully, in the US, one attack lang they panic and they devise policies and software to protect themselves.

Q: Kung nangyari talaga yan, naturally report ang isang kumpanya na ang system nila ay being attacked, any specifics from NGCP?

SEN WIN: There is already a protocol, meaning if there is an attack, there is already a protocol, report it to DICT. Tama naman yun kasi DICT is the information technology agency natin, so they should know that because the attacks evolve, so they should be aware of thesre attacks.

Q: Sa NGCP yan?

SEN WIN: Yun na nga nagulat din ako in fact it's the first time I heard of it. We were already contemplating about future cyberattacks, yun pala nangyayari na pala sa atin.

Q: Sir was there a clarification why they didn't report the attacks?

SEN WIN: No eh, the answer was blank, ang daming unanswered questions-

DELAYED IPO

Q: Sir yung ganitong uncertainty would it fuel another reason to NGCP to delay the IPO? Because they have been citing unfavorable market stance?

SEN WIN: Unfavorable market stance is a general reason meaning, nakasulat doon, the only reason they would delay is because of market reasons. Stock market has been steadily climbing, in fact they gained, if my memory is correct, gained around 2,000 points in the last five years. Obviously, the stock market condition is favorable it didn't say if its favorable to NGCP, its market conditions. So meaning if its not favorable to you its not good to delay the IPO kasi what is not favorable to you is subjective to you e-Kunyari nagkaroon ng financial crisis, yun talaga hindi pwede-

Q: Pag bad press should not be grounds to delay?

SEN WIN: Its part of your operations eh, talagang hindi maiiwasan magkaroon ng bad press, hindi mo ma-avoid magkaroon ng problema sa empleyado, regulatory risks di mo ma-avoid yan.

Q: Sir clarification sa 60-40, kunyari 40% lang stake ng Chinese, yung 60 pag dinivide mo into two, 30/30, mas malaki pa rin yung Chinese, kumbaga sa voting, mas dominant yung 40?

SEN WIN: We have to review the documents whether if the Filipinos are united or not, we have to look at the pattern-

Q: The face value alone? Hindi yun violation ng constitution?

SEN WIN: It just has to be 60% Filipino. I can be 6 10 percents, it doesn't really matter.

Q: Kailan mag reresume yan?

SEN WIN: Mga two weeks.

VFA

Q: Kasama ba kayo sa magsa- sign sa resolution na pinaplano ni SP, "expressing the sentiments of the Senate na hindi ibasura ang VFA?

SEN WIN: I have to read the contents first, masyadong maaga pa but my take on that is dapat i-review natin ito independently, i-review natin ito based on the merits VFA, ibig-sabihin meron bang provision na hindi pantay satin, meron bang provision doon sa unfair para sa atin? At meron bang provision doon na hindi naman effective? So, the review should be independent. Yun ang aking opinion dito at minungkahi ko nga noong nagkaroon kami ng executive session na ituloy natin yung review through a hearing so that the public can participate, at independent and objective. Importante na objective yung review dahil meron din yung bagay doon, ang aking pananaw dito, yung Mutual Defense Treaty natin, yung MDT natin is the overarching treaty to operationalize that maraming agreements, one of which is the Visiting Forces Agreement, (VFA) nakikita natin doon marami doon ay operational agreement or agreements in nature on how to implement MTD. So andun na yung Balikatan, yung mga inter-operability, andun na lahat. So without the VFA, how do you operationalize the MDT. So yun ang pananaw ko dito.

Q: Pero gagawin ba yan ng House without the visa of Senator Bato?

SEN WIN: Para sa akin, these are two different matters, noon pa man dapat talagang nireview na ang VFA.

Q: Kahit mabalik na kay Senator Bato yung visa niya, still the Senate-

SEN WIN: The Senate should continue with the review of the VFA and should continue the review of the EDCA, also review the MDT dahil matagal na ang MDT, 1950s pa yan so we should review din. Typically mga ganitong treaty and agreements are reviewed periodically.

Q: what is your view that some of your colleagues support the VFA?

SEN WIN: In the hearing kung lumabas na marami namang kabutihan na ginawa, lalong-lalo na kung paano ioperationalize yung MDT then susuporta tayo dahil mabuti ito sa ating bansa pero alam ko rin na maraming unfair na provision doon at yung ang dapat tanggalin for example yung custody nung criminal or violator dapat dahil nasa Pilipinas ka, dapat sumunod ka sa ating batas like any other Filipino.

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