FORMER National Transmission Corporation (TransCo) president Melvin Matibag on Thursday warned lawmakers about potential national security threats posed by the National Grid Corporation of the Philippines (NGCP), particularly its reliance on Chinese technology and the government’s limited oversight of its operations.
Appearing before the House Committee on Legislative Franchises, Matibag painted a grim picture of vulnerabilities within the country’s power transmission system, which he said could be exploited by foreign interests.
“I just like to remind everyone, pinag-uusapan natin dito presyo 3% ba, 10% ba, ganito ang binayaran. But more than that, this is something that should be a concern of everyone and that is the national security and national interest of our country,” Matibag pointed out.
“Alam ninyo nag-uusap-usap tayo, West Philippine Sea, may nakita tayong mga barko ng China na malalaki. Ito po hindi na ito kailangang pumasok pa sapagkat nandito sila sa sistema mismo natin ng ating power grid,” Matibag warned, as he emphasized the implications of China’s involvement in NGCP’s operations.
Matibag’s concerns centered on NGCP’s use of the SCADA (Supervisory Control and Data Acquisition) system provided by NARI Group Corporation, a Chinese IT infrastructure provider.
He questioned whether NGCP truly had full control over this critical infrastructure.
“Simple lang po ang tanong ko kay Eng. Clark: Ano ba ‘yung NARI? Proprietary ba ‘yan? Alam niyo ba ang source code?” Matibag asked, challenging NGCP’s claims about the security of its systems.
During a previous hearing, NGCP Assistant Vice President for System Operations Clark Agustin assured the public that there is no single switch capable of shutting down the grid, allaying concerns about NARI’s involvement in NGCP operations.
But Matibag pointed out that the SCADA system had already been accessed remotely on two occasions.
“There was already an incident na nagkaproblema ang power grid natin. It was resolved remotely. Twice already na nangyari. So ano ibig sabihin nito? Remotely pwede gawin,” he said.
Matibag also revealed that NARI had previously showcased the SCADA project in the Philippines as its “first overseas deployment” but later removed this information from its website after it was raised in Senate hearings.
“When we made the presentation sa Senado, lumabas that NARI is a state-owned company used by a military. Nakita namin, kini-claim talaga nila na first overseas nila na paggamit ng equipment at ng SCADA ang Pilipinas,” he said.
Matibag criticized the lack of government oversight over NGCP’s facilities, despite the government owning the transmission assets through TransCo.
“Ngayon lamang po ako nakakita na kami ang may-ari ng bahay at gusto mong tingnan kung anong ginagawa sa bahay mo ay hindi kayo pwede pumasok,” he lamented, describing how TransCo was barred from inspecting NGCP’s operations during his tenure as president.
He emphasized that the government’s inability to access its own facilities undermines not just operational transparency but also national security.
Matibag’s warnings echoed concerns raised by some lawmakers regarding NGCP’s control structure, specifically over its foreign minority shareholder’s influence.
Lawmakers questioned NGCP’s compliance with constitutional provisions requiring 60% Filipino ownership and the exclusive appointment of Filipino citizens to executive and managerial roles.
The NGCP, which manages the country’s power transmission grid, is 40% owned by the State Grid Corporation of China, a state-owned enterprise, while Filipino tycoons Henry Sy Jr. and Robert Coyiuto Jr. own the remaining 60% through Synergy Grid and Development Philippines.
While the ownership structure appears compliant with constitutional requirements on paper, lawmakers argued that the presence of foreign nationals in strategic roles undermines the intent of the law and poses risks to national security.
The NGCP’s 2024 General Information Sheet identifies Chinese national Zhu Guangchao as chairman of the board.
Other Chinese nationals also hold key positions, including Assistant Chief Technical Officer Liu Zhaoquiang, Chairman of the Board Audit Committee Liu Xinhua and Chief Technical Officer Wen Bo.
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