The Office of the Ombudsman, in a July 11 order, said there is “strong evidence showing their guilt” for grave misconduct, gross neglect of duty, and violations of office rules.
Investigators found the November 2023 transaction bypassed the GSIS board of trustees, breached 2022 investment policy guidelines, and involved shares that were unlisted at the time of subscription and payment.
Management’s view
“We are confident that all our actions adhere to the highest standards of governance,” Gerry Magbanua, Alternergy president, said in a statement.
“Maintaining stakeholder trust is at the core of everything we do,” he said, adding the clean energy firm will cooperate with any official review to ensure transparency and accountability.
Key details
• GSIS subscribed to Alternergy’s perpetual preferred shares at P14.50 each, earning an 8 percent annual coupon.
• The shares carry a step-up rate on the 7th year and can be redeemed at a premium from year five.
• Listed on the stock exchange in March 2024, these non-voting, non-convertible shares have already delivered P118 million in coupons as of December 2024.
• GSIS is projected to earn a 56 percent return over seven years, with the P1.45-billion principal to be fully repaid.
• Proceeds from the deal are funding Alternergy’s 225 MW of wind projects in Tanay and Alabat under the DOE’s Green Energy Auction 2 program.
Rising profitability
Alternergy, which listed on the stock exchange in March 2023, posted a 241 percent surge in net income to P129.6 million in 2024 from P38 million in 2023 and a 60 percent revenue jump to P274.9 million.
The company also declared a P40-million dividend in July.
