It's about time!
After a controversial extension, Congress terminated the YMN Pacific Consortium deal for the Masinloc power plant and set the stage for a new bidding.
Entering into a new bidding at this stage and with all the controversy will surely push the price of the power plant down. It may even be a calculated move of the supposed YMN investor, Ranhil Berhad, to eventually get the plant for a song and dance routine.
Anyone from PSALM can always argue the losses can be recovered from the bid security that was forfeited. But that security covered losses only for the time between the bid award and the downpayment. It does not cover the government's losses for the extension period.
That controversial extension granted by PSALM can be the "grossly disadvantageous" contract that can be subject of a case against its officials.
I can understand where YMN Pacific was coming from in seeking these extensions. It was seeking to salvage its deposit that would be forfeited. For that amount, I would understand if it would try to "move heaven and earth" to salvage it.
But the government should not tolerate this, first because of the losses I mentioned above and second, of the bad precedent that would be set. It would encourage speculative bidding of government contracts since assignment of interests would be a "convenient" option.
The way I see it, the only asset YMN Pacific had was this bid award, a bit of a sham because it's actually worth nothing as it is revokable anytime.
Now, can you see the logic in seeking the extensions?
Entering into a new bidding at this stage and with all the controversy will surely push the price of the power plant down. It may even be a calculated move of the supposed YMN investor, Ranhil Berhad, to eventually get the plant for a song and dance routine.
Anyone from PSALM can always argue the losses can be recovered from the bid security that was forfeited. But that security covered losses only for the time between the bid award and the downpayment. It does not cover the government's losses for the extension period.
That controversial extension granted by PSALM can be the "grossly disadvantageous" contract that can be subject of a case against its officials.
I can understand where YMN Pacific was coming from in seeking these extensions. It was seeking to salvage its deposit that would be forfeited. For that amount, I would understand if it would try to "move heaven and earth" to salvage it.
But the government should not tolerate this, first because of the losses I mentioned above and second, of the bad precedent that would be set. It would encourage speculative bidding of government contracts since assignment of interests would be a "convenient" option.
The way I see it, the only asset YMN Pacific had was this bid award, a bit of a sham because it's actually worth nothing as it is revokable anytime.
Now, can you see the logic in seeking the extensions?
transcription by Punzi @ 6:33 AM
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