Udenna Corp, a conglomerate controlled by tycoon Dennis Uy, a detailed Duterte ally, entered right into a sale agreement with Chevron in late 2019 for a forty five% stake within the country’s $565 million Malampaya gas-to-power project.
The Department of Energy (DOE) said a corruption criticism filed Monday by a gaggle of “concerned residents” is baseless.
“The matter is speculative, baseless and malicious. The disputed transaction is public,” the statement said.
The deal was the subject of a Senate investigation into Udenna’s technical and financial capabilities to handle the project, with some senators expressing doubts about the accuracy of the DOE’s financial assessment of the buyer.
However, the investigation has not yet been completed. The DOE approved the Udenna-Chevron deal in April.
How Duterte’s ‘tough’ advice helped Filipino tycoon Dennis Uy
How Duterte’s ‘tough’ advice helped Filipino tycoon Dennis Uy
Uy, who was a major contributor to Duterte’s 2016 presidential campaign, has since rapidly expanded his business interests, including taking over shipping lines, resorts, casinos and investing in a telecommunications venture with state-owned China Telecom.
Udenna has previously insisted that Uy’s association with Duterte did not give his companies an unfair advantage.
Udenna will gain control of 90 percent of Malampaya after purchasing the remaining 45 percent stake from Shell Philippines Exploration BV. The transaction is pending regulatory approval. The project provides fuel for power plants with a total capacity of over 3,000 megawatts.
Udenna said in a statement that it had not seen the complaint and only learned about it from media reports.
“At the appropriate time and place, we will address all allegations against the company to prove that everything was done as planned,” Udenna said.
Chevron didn’t immediately reply to a request for comment.
This article appeared within the print edition of the South China Morning Post as: The energy agreement with Duterte’s ally was defended
