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The Commission on Audit (COA) has flagged ₱10.77 billion in outstanding financial obligations from 37 terminated solar energy contracts, with companies under the Solar Philippines group accounting for about 96% of the total.
In its audit of the Department of Energy (DOE), the state auditor said the cancellations of Solar Energy Operating Contracts (SEOCs) exposed the government to the risk of non-collection and highlighted the need for closer monitoring and faster enforcement of contractual obligations.
Of the ₱10.77 billion in obligations demanded from the 37 terminated contracts, ₱10.389 billion was attributed to firms under Solar Philippines, the renewable energy group founded by Batangas Rep. Leandro Leviste.
COA said the outstanding obligations cover unfulfilled work and training commitments, development assistance fees, and contractual penalties. The audit agency urged the DOE to pursue available legal and administrative remedies to protect government resources and ensure collection.
The ₱10.39-billion obligation is equivalent to roughly 494 years of the Solar Energy Management Division’s (SEMD) 2025 operating budget of ₱21.02 million, according to COA.
“This comparison highlights the significance of the outstanding obligations and underscores the importance of adopting timely and effective measures to ensure their collection in order to protect government interest and maximize the use of public resources,” COA said.
Lost Generating Potential
Beyond the financial exposure, COA said the termination of the 37 contracts resulted in about 6.796 gigawatt-hours of unrealized potential generating capacity that could have contributed to the country’s renewable energy supply.
The agency recommended that the DOE strengthen its monitoring of solar energy contracts and ensure that sanctions for contractual defaults are imposed promptly.
It also called on the department to review existing policies governing the award and implementation of solar energy service contracts and introduce reforms where necessary to reduce project cancellations and the resulting loss of potential generating capacity.
The DOE has referred the collection issue to the Office of the Solicitor General (OSG) for legal action. The department is seeking a total of ₱24 billion in claims from Solar Philippines, including the ₱10.39 billion from the recently terminated contracts and additional obligations linked to contracts canceled in previous years.
The department has also told COA that areas previously blocked by canceled projects have been reopened for applications from new qualified developers. The streamlined process is intended to allow replacement projects to move more quickly toward actual power generation.
The DOE is also finalizing a proposed blacklisting policy for renewable energy developers.
Under the proposed rules, developers with outstanding financial obligations would have to settle their liabilities before being recognized as developers in good standing or being allowed to participate in future energy contract auctions.
Leviste Group Disputes Criticism
The audit findings come as Leviste and his companies face separate scrutiny over their renewable energy activities.
The Office of the Ombudsman is investigating Leviste and his mother, Senator Loren Legarda, over ₱10-billion plunder and graft complaints involving allegations that Leviste’s renewable energy firm failed to deliver solar power under its congressional franchise.
Leviste and Legarda have been outside the country and are believed to be in France. Legarda has said she is on medical leave, which has been repeatedly extended.
Tony La Viña, spokesperson for Leviste and Legarda, previously disputed suggestions that Leviste’s companies dominated the renewable energy sector. He said the companies accounted for only about 5% of solar contracts and 2% of renewable energy contracts.
La Viña also argued that non-performance of a service contract is not unusual because such contracts essentially provide developers with permits to explore.
He cited the 3,500-megawatt Terra Solar project in Nueva Ecija, which was inaugurated by President Ferdinand “Bongbong” Marcos Jr. and which he said was originally conceptualized and implemented by Leviste. The DOE has described Terra Solar as the world’s largest solar-battery project and the largest project of the Marcos administration.
COA’s findings put the focus on the government’s ability to recover unpaid obligations while preventing delays in the development of renewable energy projects.
For the DOE, the reopening of project areas and proposed blacklisting rules are intended to ensure that canceled contracts do not leave valuable sites idle and that developers with unresolved obligations cannot secure new energy contracts without first meeting their financial commitments.
Source:
https://tribune.net.ph/2026/10/03/coa-leviste-firms-account-for-96-of-p1077-b-collectibles