Partido Manggagawa Advocates State Takeover of National Grid Operations Amidst Controversial MIC Investment Proposal
In a recent press release, Partido Manggagawa (PM) reiterates its call for the government to reassume control of the national grid, countering the suggested state investment in the National Grid Corporation of the Philippines (NGCP) through the Maharlika Investment Corporation (MIC), as proposed by House Speaker Martin Romualdez.
PM underscores its opposition to the MIC proposal, expressing concern over the diversion of public funds to support what it deems an unsound investment proposal. "We have consistently opposed the creation of MIC, and witnessing public funds being diverted to support an unsound investment proposal only strengthens our opposition," emphasized PM.
The group argues that reclaiming control of the national grid operations is the most appropriate alternative, as investing public funds into NGCP through MIC, owned by the country's wealthiest family and supported by Chinese state capital, is totally unnecessary.
PM urges the government to take back the national grid operations, highlighting the historical success of the state's management of the grid before its privatization in 2008. The national grid was then considered a 'crown jewel' among Government-Owned and Controlled Corporations (GOCCs), generating an annual net income of at least ₱20 billion.
"Today, it is the NGCP, rather than the state, that accumulates wealth, as revealed in previous Senate investigations. NGCP's financial statements indicate a total comprehensive income of ₱306.77 billion in 14 years, with ₱238.84 billion distributed as dividends to shareholders," lamented PM.
According to the labor group, the real issue facing NGCP is performance, not a lack of cash. PM contends that pouring more money into NGCP through MIC is unwise and would divert crucial resources from other essential programs.
The group likewise suggests that instead of investing further in NGCP, the government should rather consider imposing a wealth tax on windfall profits of power oligarchs to address the government’s own fiscal problems.
"NGCP’s problem is performance, not lack of cash. It is the government, on the contrary, which needs more funds; thus, it should also consider imposing a wealth tax against the windfall profits of power oligarchs," concluded PM.
FOR IMMEDIATE
08 January 2024
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