COA flags P10.4-B terminated contracts of Leviste's Solar Philippines - GMA Network
The Commission on Audit (COA) has flagged a staggering P10.77 billion in uncollected financial obligations tied to 37 terminated solar energy contracts, reporting that a single corporate group founded by Batangas Representative Leandro Leviste accounted for 96% of the total defaults.
In its observations on the Department of Energy (DOE), state auditors said the government is at risk of non-collection following the widespread cancellation of Solar Energy Operating Contracts (SEOCs), "thereby underscoring the need for timely enforcement and close monitoring of contractual obligations of solar energy service contractors."
"Further, the termination of these contracts resulted in approximately 6.796 gigawatts-hour of unrealized potential generating capacity that could have contributed to the country's renewable energy supply," the COA said.
State auditors said that out of the P10.77 billion in financial obligations demanded across the 37 cancelled solar agreements, P10,389,331,719.44 is directly owed by firms under the Leviste-led Solar Philippines umbrella.
To put into context, state auditors said the sheer scale of the default at P10.39 billion demanded from Solar Philippines dwarfs the Solar Energy Management Division's 2025 operating budget of P21.02 millionβrepresenting roughly 494 years' worth of the division's annual funding requirement.
"This comparison highlights the significance of the outstanding obligations and underscores the importance of adopting timely and effective measures to ensure their collection in order to protect government interest and maximize the use of public resources," COA stated in its report.
The unpaid sums cover unfulfilled work commitments, training commitments, development assistance fees, and heavy contractual penalties.
The DOE has since escalated the matter to the Office of the Solicitor General (OSG) to initiate legal recovery actions against Solar Philippines.
In particular, the Energy Department is demanding P24 billion in claims against Solar Philippines, which has been referred to the OSG.
The amount represents the P10.39 billion from the terminated solar energy contracts, while the remaining billions were related to their contracts terminated in previous years.
The Ombudsman is investigating Leviste and his mother, Senator Loren Legarda, in connection with P10-billion plunder and graft complaints, alleging that his renewable energy firm failed to provide solar power under its congressional franchise.
The mother and son lawmakers are currently outside of the country and are believed to be in France. Legarda is on medical leave, which she has repeatedly extended.
GMA News Online has reached out to Leviste for comment, but he has yet to respond as of posting time.
Earlier, lawyer Tony La ViΓ±a, spokesperson for Leviste and Legarda, said the Batangas congressman's companies did not have a monopoly, having only 5% of the total solar and 2% of the renewable energy contracts.
La ViΓ±a said not performing a service contract is normal since it is essentially a permit to explore.
He added that it was malicious to say Leviste did nothing, because President Ferdinand "Bongbong" Marcos Jr. himself inaugurated the 3500 MW Terra Solar project in Nueva Ecija that was "conceptualized and implemented originally by Leviste, which the DOE boasted as the world's largest solar-battery project and the largest project of this administration."
Meanwhile, the DOE has assured state auditors that previously blocked project locations have been reopened for application to new, qualified developers under streamlined rules designed to fast-track real power output.
Furthermore, the Energy Department is finalizing a formal blacklisting policy for renewable energy (RE) developers.
Under the proposed rules, developers in default must fully settle outstanding financial obligations before being recognized as RE developers in good standing or being allowed to bid on future energy contracts. β VDV, GMA News
