Wednesday, January 23, 2008 Aboitiz exec calms board's fears
LA TRINIDAD, Benguet -- The Benguet Board were assured Monday by the new owners of the Ambuklao and Binga dams that no drastic change will occur when the new management takes over the facilities on June 25.
SN Aboitiz Power Hydro, Inc. (Snap) chief operating officer Emmanuel Rubio said even the contentious matter of local and national taxes will be paid because Snap "is a good corporate citizen."
"We are even seeking the legal opinion of the DOE (Department of Energy) whether we could pay the national wealth tax shares directly to the host communities," he stressed.
Benguet officials and residents find this matter ticklish because large corporations exploiting the natural resources of the province pay the national wealth taxes to the National Government.
The local governments find it difficult to collect their shares of this tax from the Department of Budget and Management.
However, this assurance could make up for his previous announcement that Snap cannot pay franchise taxes to the province.
Rubio said since the company is involved in the generation of power and not in the sale of electricity, the franchise tax law does not cover it.
But Rubio said other local taxes will be faithfully paid by the company.
The Snap executive likewise told the members of the board the generating company cannot take a hand in the land case of some claimants in Ambuklao because it is a matter the NPC must resolve.
"This is why PSALM (Power Sector Assets and Liabilities Management Corp.) only gave us the power plant and other 'clean' areas. We are not a party to this," Rubio stressed and was seemingly accepted by the members of the Provincial Board.
On employment and livelihood, Snap said it already hired the 90 or so employees, which will be displaced when it takes over the reins Ambuklao and Binga.
"Although they may not be under their old title and position," Rubio said.
He explained the first six years of the company in Benguet would entail a lot of rehabilitation work. The rehired NPC employees will have to be fitted to task, which are of more immediate concerns.
The fish cage owners on the reservoir of the Ambuklao dam also need not worry because the company will accept the terms of their stay in the reservoir as contained in their agreement with the NPC "so long as they no longer increase in number and they are safely far away from the power intake of the plant," Rubio said. (Sam Bautista)
