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By Paul Anthony A. Isla
Reporter
INDEPENDENT power producer Mirant Philippines Corp. said Friday it cannot supply to the Bataan Polyethylene Corp. (BPC) since that would have been a criminal act under US law.
Mirant added that its supply contract with BPC was already terminated in 2002 following the latter’s shutdown and bankruptcy.
Mirant spokesman lawyer Laurence Rogero said BPC still owes Mirant P1.1 billion for power that was supplied by Mirant but not paid for by BPC.
Rogero said under US law – part of broad economic sanctions Washington had imposed for Iran’s pursuit of weapons of mass destruction and support of international terrorism – makes it a criminal act for any American company and its executives to facilitate “directly or indirectly” any commercial transaction with any Iranian-owned entity “wherever located.”
Atlanta-based Mirant Corp., which is the mother company of Mirant Philippines Corp., is conducting a global divestment to focus on the US market, where aside from its offshore in the Philippines, is also selling out its Caribbean and certain other US businesses are being sold as well.
“What BPC wants is for the local courts to force us to commit a criminal act. Under the said US law, American executives, if found guilty, can go to jail for as long as 20 years. The companies face heavy fines. Mirant’s understanding is that the new group that will operate BPC includes Iranian interests.” said Rogero.
BPC is now owned by NPC Alliance Corp., which is a joint venture between Iran’s National Petrochemical Corp. (NPC) and William Gatchalian-led Metro Alliance.
The supply contract was signed in late 1999 between BPC and Mirant, then named Southern Energy. In 2002, BPC closed down because of financial difficulties.
That same year, Mirant, with no revenues from BPC after putting up a power substation and pre-paying rent on the land for the next 20 years to a BPC sister company, terminated its supply contract with BPC and sought payment of termination penalties as provided for in the contract.
“That BPC’s foreign guarantors —British Petroleum, Sumitomo, and Petronas—paid the termination penalties worth P240 million is unassailable proof that Mirant no longer has any contractual obligation with BPC,” the Mirant spokesperson said
“The complaint by BPC itself admitted as much by saying ‘nowhere in plaintiff’s demand letter (earlier this month) did it state that defendant Mirant had any such contractual obligation with plaintiff…’” Rogero said.
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ECONOMY