The
Sangguniang Panlalawigan (SP) unanimously granted "blanket authority"
to Gov. Erico Aumentado to negotiate for the reacquisition of the water and power
utilities controlled by majority shareholder Salcon group during a special conference
last Monday at the Bohol Beach Club in Panglao town.
This,
in effect, provides the governor a freehand to "take appropriate action"
on what he deems necessary to protect the welfare of the consumers of Bohol Water
Utilities Inc. (BWUI) and Bohol Light Company Inc. (BLCI).
During
the said conference, former Gov. David Tirol, who represents the provincial government's
stake in Bohol Light together with former OIC Gov. Victor dela Serna, criticized
the members of the then Sangguniang Panlalawigan (SP) who approved the semi-privatization
deal with Salcon that triggered an "emotional" confrontation with some
SP members who were also part of the board that approved the joint-venture way
back in 2000.
Former
Gov. Rene Relampagos and the SP then were accused to have received remuneration
for the entry of the Singaporean-financed Salcon, now a major player in the power
industry.
Board
members Concepcion Lim, Eufracio Mascariñas and Godofreda Tirol who were
members of said board expressed dismay over the allegations.
| | | In
order to resolve the issue, Vice Gov. Julius Cesar Herrera proposed that, in deference
to the three board members, the SP would adopt a resolution giving full authority
to the governor to determine what is necessary to protect Bohol Water and Bohol
Light consumers.
In
an interview with the Chronicle, former governor Tirol clarified he had no intention
to offend the three SP members as he was just stating his position on the joint-venture
agreement entered into by the provincial government with Salcon. This was the
same position he took even when debates were still underway for the semi-privatization
of the former Provincial Public Utilities Department (PPUD). |
Tirol
disclosed everyone in the conference showed strong interest in reacquiring the
70-percent Salcon shares in both utility companies.
Tirol
said, "Rate increases would go ballistic" once the first round of adjustments
for Bohol Light and Bohol Water will be imposed.
Meanwhile,
Atty. Victor dela Serna, told the Chronicle in a separate interview that the Energy
Regulatory Commission (ERC) issued an order, which he received last Friday, regarding
the ongoing hearing for Bohol Light's application for a Certificate of Convenience
and Necessity (CCN).
In
the order, the ERC, through its chairman Alejandro Barin, set a hearing on January
26, 2007 in Pasig City, for Gov. Aumentado to testify regarding the Bohol Light
application.
Dela
Serna pointed out that a CCN is a requisite for a utility firm to operate and
provide public convenience services, such as transportation, power and water.
Without such, Bohol Light is not authorized to impose rate adjustments.
Gov.
Aumentado's testimony is crucial to reject Bohol Light's application for CCN,
dela Serna stressed.
Without
the CCN, dela Serna added, the power utility firm can be prevented from implementing
rate increases and will motivate Salcon to sell-out their shares at its fair market
value.
40%
OWNERSHIP EXAMINED
In
his research, dela Serna bared that Salcon could be violating the constitutional
limitation of 40-percent ownership in its overall holdings in five different corporations
engaged in providing utility services.
The
constitution provides that foreign investors could only own up to 40-percent of
a corporation. The 60-percent should be held and controlled by Filipinos.
However,
dela Serna disclosed that through "interlocking directorates", Salcon
allegedly exceeds the allowed 40-percent ownership as they have controlling equities,
or majority stakes, in these companies.
This
was an argument made by the former OIC governor when he testified in the ERC hearing
last year for the granting of CCN to Bohol Light. | 
