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The Commission on Audit has flagged P10.77 billion in uncollected obligations from 37 terminated solar energy contracts, with Solar Philippines accounting for 96% of defaults.
The Commission on Audit (COA) has flagged P10.77 billion in uncollected financial obligations tied to 37 terminated solar energy contracts, with a single corporate group founded by Batangas Representative Leandro Leviste accounting for 96% of the total defaults. In its observations on the Department of Energy (DOE), state auditors warned that the government risks non-collection following the widespread cancellation of Solar Energy Operating Contracts (SEOCs).
The COA said the terminations resulted in approximately 6.796 gigawatt-hours of unrealized potential generating capacity that could have contributed to the country's renewable energy supply. Of the total amount demanded across the 37 cancelled solar agreements, P10,389,331,719.44 is directly owed by firms under the Leviste-led Solar Philippines umbrella.
Scale of Solar Philippines Defaults
State auditors noted that the P10.39 billion demanded from Solar Philippines dwarfs the Solar Energy Management Division's 2025 operating budget of P21.02 million, representing roughly 494 years' worth of the division's annual funding requirement. The COA said this comparison highlights the significance of the outstanding obligations and underscores the importance of adopting timely and effective measures to ensure their collection to protect government interest and maximize the use of public resources.
The unpaid sums cover unfulfilled work commitments, training commitments, development assistance fees, and heavy contractual penalties. The DOE has escalated the matter to the Office of the Solicitor General (OSG) to initiate legal recovery actions against Solar Philippines.
The amount represents P10.39 billion from the terminated solar energy contracts, while the remaining billions were related to contracts terminated in previous years. This is in connection with P10-billion plunder and graft complaints alleging that Leviste's renewable energy firm failed to provide solar power under its congressional franchise.
Leviste and Legarda Abroad
The mother and son lawmakers are currently outside the country and are believed to be in France. Senator Loren Legarda is on medical leave, which she has repeatedly extended. Leandro Leviste is taking care of her, according to a spokesperson. GMA News Online reached out to Leviste for comment, but he has yet to respond as of posting time.
Earlier, lawyer Tony La Viña, 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 Viña 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 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.
COA Recommendations and DOE Actions
The COA recommended several measures, which it said were agreed to by the DOE-SEMD and other concerned bureaus. These include exhausting all available legal and administrative remedies to facilitate collection of outstanding financial obligations from the Solar Energy Developers concerned. The COA also called for strengthening monitoring of compliance with the provisions of SEOCs to ensure timely and effective enforcement of sanctions for contractual defaults.
Furthermore, the COA recommended revisiting existing policies and guidelines over the award and implementation of solar energy service contracts and causing reforms or modifications, if warranted, to minimize project cancellations and the resulting loss of potential generating capacity.
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. The Energy Department is also finalizing a formal blacklisting policy for renewable energy 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.
The COA's findings underscore the need for timely enforcement and close monitoring of contractual obligations of solar energy service contractors. The report comes amid broader scrutiny of renewable energy contracts and the government's efforts to boost the country's renewable energy supply.
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