Sharon S. Garin, Secretary of the Department of Energy, said Batangas 1st District Rep. Leandro Leviste is guilty of conflict of interest for failing to divest from Solar Philippines, citing constitutional restrictions on lawmakers holding interests in government-granted energy contracts.

“Under the 1987 Constitution, especially as a franchise holder, when you get a privilege or a contract, you should divest,” Garin said, as reported by Philstar. “You can get elected, but before you even sit and take your oath, you should no longer be involved because that’s a conflict of interest.”

Garin said verification with the Securities and Exchange Commission showed that Leviste remains the owner of Solar Philippines, which she said continues to hold energy contracts considered privileges granted by the government.

Citing the Constitution, Garin said a senator or member of the House of Representatives should not “directly or indirectly, be interested financially in any contract with, or in any franchise or special privilege granted by the government during his term of office.”

“It’s a privilege given by the government to you, that is why there should be no sitting politician/s on those kinds of contracts,” she said.

Solar Philippines has previously been at the center of major enforcement actions by the DOE after failing to meet development commitments tied to its renewable energy projects. The department had earlier canceled a large volume of stalled power supply service contracts linked to the firm and sought financial penalties related to non-delivery.

Garin said the DOE canceled a total of 163 power supply service contracts amounting to about 17,000 megawatts as part of efforts to remove what she described as “flippers” from the government’s list of energy suppliers. Of this figure, Solar Philippines accounted for around 12,000 megawatts, or about 60% of the canceled capacity, which she said disrupted the agency’s power planning.

Leviste, the son of Senator Loren Legarda, has invoked good faith, saying he disclosed his ownership of Solar Philippines in the Statement of Assets, Liabilities and Net Worth he filed as a sitting lawmaker.

The issue underscores broader concerns about governance and accountability in the energy sector, particularly as the government seeks to accelerate power project development while enforcing conflict-of-interest rules.

How should such rules be applied to ensure public trust and protect long-term power planning?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.