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A proposed partnership between South Cotabato II Electric Cooperative (Socoteco 2) and Ignite Power can proceed to a member vote after a regional trial court lifted a temporary restraining order that had blocked the plebiscite.
In a 12-page resolution dated Sept. 11, the Regional Trial Court in Polomolok, South Cotabato, granted Socoteco 2’s motion to lift the TRO and denied a writ of preliminary injunction sought by consumer Eugene Mangilaya.
The court found that Mangilaya had failed to establish the requirements for an injunction, describing the allegations against the cooperative’s approval of the conditional joint venture agreement (JVA) as speculative.
“What plaintiff offers is a conjecture presented as a violation, and an injunction will not protect a right founded on nothing more than a speculative claim,” the court said.
The ruling effectively removes the legal obstacle to a plebiscite in which Socoteco 2’s member-consumer-owners will decide whether to approve the proposed partnership with Ignite Power and Energy Holdings Inc.
“The JVA remains subject to a final, independent stage. It has not yet happened. Until it does, whatever consequence plaintiff fears from it remains a possibility hedged by condition, not an injury demonstrable in the present,” the court said.
Voting Set To Resume
Socoteco 2 said the plebiscite can now proceed, but the cooperative deferred the Sept. 12 and 13 voting dates because of the limited preparation time following the court ruling.
The remaining scheduled voting dates are Sept. 19 to 20 and Sept. 26 to 27.
The TRO was initially issued on Sept. 4 and later extended to Sept. 24, affecting the voting schedule for the proposed joint venture.
The planned partnership involves Ignite Power, a joint venture backed by Primelectric Holdings, led by businessman Enrique Razon, and MP Holdings, associated with boxing legend and former senator Manny Pacquiao.
Under the proposal, Ignite Power would provide fresh capital for the rehabilitation and modernization of Socoteco 2’s aging distribution system.
The cooperative has said the proposed five-year modernization program is intended to reduce system losses to 5.5% from the current recoverable level of 8.25%.
System loss refers to electricity generated or purchased by a distribution utility that does not reach customers because of technical losses, pilferage and other factors. The cost of recoverable system losses is reflected in electricity charges.
Governance Concerns Remain
The court ruling comes as separate complaints and calls for scrutiny of the proposed agreement remain pending.
In a letter dated Sept. 1, Diocese of Marbel Bishop Cerilo Casicas and Diocese of San Carlos Bishop Gerardo Alminaza, president of Caritas Philippines, asked Ombudsman Jesus Crispin “Boying” Remulla to place members of the Socoteco 2 board under preventive suspension while complaints linked to the proposed joint venture are being investigated.
The Ombudsman received the letter on Sept. 8.
“We urgently call for the issuance of a preventive suspension order against the members of the SOCOTECO II Board of Directors implicated in the pending complaints,” the bishops said.
They also requested a dialogue with the Ombudsman over consumer concerns involving the proposed JVA and the cooperative’s governance.
The bishops said they were speaking on behalf of the clergy, faithful and around 300,000 member-consumer-owners of Socoteco 2. They raised allegations of procedural manipulation and questioned the cooperative’s handling of the proposed agreement.
Criminal and administrative complaints have also been lodged with the Ombudsman against Socoteco 2 board members and National Electrification Administration officials over alleged irregularities related to the proposed agreement. These allegations remain subject to investigation and appropriate proceedings.
The bishops said the controversy could have implications for electricity prices and service reliability if the proposed deal is approved.
“As a shepherd of the faithful who will bear the impacts of high electricity prices and unreliable service if this JVA proposal from Ignite Power gets approved, we stand with our communities in upholding transparency, integrity, and the rule of law,” they said.
Source:
https://business.inquirer.net/610691/court-lifts-restraining-order-vs-socoteco-iiignite-plebiscite
