Mandanas Criticized Over Alleged Conflict of Interest in Pushing LNG Project in Batangas

Governor Hermilando Mandanas is currently facing criticism from legal experts over an alleged conflict of interest concerning his role as governor and his promotion of a company linked to liquefied natural gas (LNG).

Critics claim that Mandanas used the natural gas issue to benefit financially from his company, AbaCore Capital Holdings Inc., which owns large tracts of land in Batangas.

A report from the Associated Press revealed that Mandanas holds the largest share in AbaCore, a real estate firm, even though he resigned as CEO of the company when he was elected governor in 2016. Documents submitted to the Securities and Exchange Commission, which served as the basis for the AP report, show that Mandanas still owns nearly 30% of the company.

Mandanas has been actively advocating for the expansion of LNG development in the province through media interviews and public events. This push for LNG has reportedly increased the value of land owned by his company.

According to the Daily Tribune, AbaCore’s affiliate company and three Chinese firms have entered into an agreement to build a $3-billion LNG complex in Simlong, a fishing village. This development has caused the value of AbaCore’s properties in the area to rise fivefold.

The company recently sold a 30,117-square-meter property in Mabini, Batangas, for P227.5 million and has also sold other lands in Batangas worth hundreds of millions of pesos.

Attorney Michael Henry Yusingco from the Philippine Institute for Autonomy and Governance told the Associated Press that Mandanas clearly has a conflict of interest due to his continued ownership of AbaCore. Yusingco believes this could lead to Mandanas being suspended or removed from office.

The group United Philippines Against Corruption has also called for Mandanas to be disqualified from running for vice governor of the province because of the alleged conflict of interest.

Mandanas, however, firmly denied the accusations, stating that the energy hub project in Simlong has no conflict of interest, and that AbaCore’s role is limited to land sales. He also clarified that AbaCore does not have any energy-related business in Batangas.