2 firms pressed to pay P671M arrears to PSALM


    The Power Sector Assets and Liabilities Management Corp. (PSALM) has sent out final demand letters for payment to two firms, which the Department of Finance (DOF) said yesterday had long overdue obligations “of at least P671.16 million combined.”

    The DOF said in a statement that in the final demand letters sent by PSALM president and chief executive officer Irene Besido Garcia and acting vice president for finance Manuel Marcos Villalon, both firms were given seven calendar days from receipt of the demand letters to pay theirarrears or face legal action.

    These formal and final demand letters were sent to First Bay Power Corp. (FBPC) which the DOF said had long overdue financial obligations to PSALM amounting to P35.15 million, and Abra Electric Cooperative Inc. (ABRE CO).

    The DOF said the latter had arrears of P599.13 million on its power account and another P36.89 million in unremitted universal charge (UC) collections “plus all other unremitted UC collections for the months not covered by its submitted UC reports.” The separate final demand letters to FBPC and ABRE CO were both dated Aug. 24, 2020.

    According to the DOF, Garcia and Villalon told the two firms in the letters that PSALM “shall be constrained to avail of all appropriate legal remedies to protect PSALM and the government’s interest, including the filing of criminal, civil and administrative cases” against them “as well as against your officers and directors for the extreme prejudice you have caused PSALM and the Philippine government.” – A. Celis