The situation, in brief
The Office of the Ombudsman has indicted former Energy Secretary Alfonso Cusi and several Department of Energy (DOE) officials for graft in connection with the controversial transfer of shares in the Malampaya natural gas project in 2019. The indictment centers on their approval of a $565-million…
The Office of the Ombudsman has indicted former Energy Secretary Alfonso Cusi and several Department of Energy (DOE) officials for graft in connection with the controversial transfer of shares in the Malampaya natural gas project in 2019.
The indictment centers on their approval of a $565-million transaction that enabled Udenna Corporation, led by Davao businessman Dennis Uy, to acquire Chevron Philippines’ 45% stake in the offshore gas facility.
The deal, combined with Udenna’s earlier acquisition of another 45% share from Shell, gave Uy effective control of 90% of Malampaya, the country’s most significant source of natural gas.
Prosecutors said Cusi and his subordinates acted “with evident bad faith, manifest partiality, or at the very least, gross inexcusable negligence, conspiring and confederating with one another, did then and there willfully, unlawfully, and criminally give unwarranted benefits, preference and advantage” when they endorsed the transaction despite UC Malampaya’s negative working capital of $137,156 and lack of experience in oil and gas exploration.
The Malampaya deal has long been the subject of public criticism, with lawmakers warning it jeopardized energy security and allowed unqualified entities to take over a critical power source.
The gas field, which supplies 20% of Luzon’s electricity needs, has been in steady decline and is projected to be depleted within the decade.
Cusi and his co-accused are facing charges for violating Section 3(e) of the Anti-Graft and Corrupt Practices Act.
