By Erika Mae P. Sinaking, BusinessWorld Reporter

A Makati court has ordered the arrest of Batangas Rep. Leandro Antonio L. Leviste over alleged violations of the Public Service Act tied to Solar Para Sa Bayan Corp. (SPSBC), exposing the lawmaker to criminal proceedings over the company's alleged failure to meet its franchise obligations. The case also puts a spotlight on how the Public Service Act applies to holders of legislative franchises — special charters passed by Congress — with the defense expected to argue that SPSBC's solar operations fall outside the law altogether.

Prosecutors filed charges on Sept. 29 before a Makati Regional Trial Court (RTC) against Mr. Leviste and two other Solar Para Sa Bayan incorporators and corporate officers for violating Section 25 of Commonwealth Act No. 146, the Public Service Act, Justice spokesman Raphael Niccolo L. Martinez said. Section 25 serves as the law's general penal provision, the clause the defense contends cannot be invoked without identifying a specific requirement that was violated.

“The filing of the informations stemmed from a finding of prima facie evidence with reasonable certainty of conviction that SPSBC willfully neglected and intentionally failed to comply with its obligations under its legislative franchise,” he told reporters via Viber on Wednesday.

The presiding judge of Makati RTC Branch 235 signed the arrest warrant on Oct. 5 and set bail at P72,000. According to the court, bail may be paid in cash or secured through property or a private company, and release without payment is allowed under certain conditions.

“The issuance and terms of the warrant matters within the jurisdiction of the court,” Mr. Martinez said.

Lawmaker's camp disputes the case

Mr. Leviste's spokesman, lawyer Antonio Gabriel “Tony” M. La Viña, said the lawmaker's camp had expected the case and was prepared to challenge it in court.

“This is a complaint looking for a crime,” he said in a Facebook post. “There is no crime committed here by Leandro Leviste or his company Solar ng Bayan which was granted a franchise by Congress in 2019.”

He argued that the franchise “is not a public utility covered by the Public Service Act,” and that Mr. Leviste and his companies therefore could not be prosecuted under the law.

Mr. La Viña also said implementation of the franchise had been prevented by the Department of Energy's failure to issue the necessary rules and identify the areas where the company could operate. The franchise had effectively been revoked because it was not implemented, he added, arguing that prosecutors could not invoke the law's general penal provision without identifying a specific provision that was violated.

Franchise background

Congress granted Solar Para Sa Bayan a franchise under Republic Act No. 11357 in 2019, one of the charters Congress has granted to power sector companies and whose compliance conditions are now the basis of the enforcement case before the courts. Energy Secretary Sharon S. Garin filed a complaint with the Justice department in May over alleged failures to comply with franchise conditions.

Mr. Leviste left the Philippines in early August. His spokesman earlier said the lawmaker was caring for his mother, Senator Lorna Regina “Loren” B. Legarda, while she was on medical leave in France.

Serving the warrant and passport questions

Mr. Martinez said an accused must first submit to the court's jurisdiction through arrest or voluntary surrender before bail may be granted. A valid outstanding warrant may be served on any day and at any time, he added, although its enforcement rests with the appropriate law enforcement authorities.

He said it was too early to determine whether the Justice department would seek the cancellation of Mr. Leviste's passport. Under the New Philippine Passport Act, a passport may be canceled only on specific grounds and upon a court order, including conviction of a criminal offense or a declaration that a person is a fugitive from justice. Neither condition applies to Mr. Leviste at this time, he said.

The next markers in the case are procedural: whether Mr. Leviste is arrested or surrenders, whether bail is posted, and whether the Justice department later moves on his passport — developments that will determine how the case moves forward.

Source: BusinessWorld