Aboitis announces Lotilla’s resignation | Leni Lecture

Aboriginal Power Corp. announced on Thursday the resignation of independent director Rafael “Popo” Lotilla, who has been named the next energy secretary.

In a disclosure, Aboitis cited “nomination and appointment to a government position” as the reason for Lotilla’s resignation effective July 11, 2022.

Lotilla, who was previously appointed as the next secretary of the Department of Energy (DOE), has been cleared by the Justice Department of any violation barring the appointment of an employee of an energy company.

In addition to being an independent director of AboitizPower, Lotilla also holds a similar position at ACE Enexor.

The Justice Department on Thursday said Lotilla could be appointed as Secretary of the Department of Energy. It stated that Lotilla was not subject to the prohibition of ch. 8 of the U.S. Department of Energy Act: “No employee, statutory auditor, accountant, or legal adviser of any private company or enterprise primarily engaged in the energy industry may be appointed secretary within two years of retirement, resignation, or separation from it. ”

“The new concept of an “independent director” was not provided for by the Republican Law no. 7638… Under subsequent laws, namely the Revised Corporate Code, the Securities Regulation Code and the Corporate Governance Code, an independent director is not an officer based on the nature, duties, functions and responsibilities of the corporation he serves. It is sui generis in nature,” the Justice Department said.

Industry stakeholders have welcomed Lotilla’s appointment, saying he is “perfect” to replace Alfonso Cusi.

The Philippine Independent Power Producers Association (PIPPA) said it recognizes Lotilla’s invaluable leadership and longstanding contributions to the Philippine energy industry.

Lotilla previously served as Secretary of the Department of Energy from 2005 to 2007.

“PIPPA believes that his experience and deep knowledge of the energy sector make him the best candidate at this critical time. Our member companies lend a hand of cooperation to Mr. Lotilla, in our common goal of increasing energy security, affordability and resilience for the Filipino people,” said PIPPA.

AK Energy Corp. President Eric Francia said Lotilla’s extensive experience in the energy sector would be “invaluable in helping to manage the country in a challenging energy environment,” adding that the energy sector must deal with the global energy crisis in the short term and an energy transition is imperative. in the medium and long term.

San Miguel Corp. President Ramon Ang commented in a text message that Lotilla’s nomination is “very good.”

DMCI Holdings Inc. President Isidro Konsunji said in a text message that Lotilla is “competent and honest”.

Former energy secretary Vince Perez and current chairman of the Alternergy group of companies said Lotilla is a “great choice” for the energy secretary. “He is the most qualified, well acquainted with the problems facing the energy sector. In addition, he is an honest person and a true professional. We look forward to working with him during this challenging period of energy transition.”

An advocate for consumer group People for Power Coalition (P4P) said that while he is aware of Lotilla’s “experience”, he remains concerned that, given his ties to the energy sector, he may not be acting as an honest broker, but instead of this is a Trojan horse. for corporate interests,” said P4P curator Jerry Aranses.

“The next Secretary of the Department of Energy should speak for consumers. Once appointed, Lotilla or any other candidate will have to deal with astronomically high electricity rates for consumers due to our reliance on fossil fuels such as coal and gas, especially now that we are seeing the country turn into a natural gas hub that is blocking us high power. stakes for decades to come,” Aranses said.