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VOL. LIII No. 78
City of Tagbilaran, Bohol, Philippines
Sunday, February 11, 2007

ADVERTISERS
Public calls to drive out
Salcon group
Salcon "disappointed"
Cebu PNP hunts two
 rob suspects
OPINION
Obiter Dictum
Juan L. Mercado
Sundry
Viewpoints
One Voice
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Public calls to drive out
Salcon group

BY KIT BAGAIPO

  
 
OUST SALCON. Energy Commissioner Jose Reyes (extreme left) evaluates the proposed programs of Bohol Light Co. during last Friday's public hearing while a rally was in progress outside with (l - r) Ex-Gov. dela Serna, Ex-Gov. Tirol, Mayor Lim calling for the buy-back of the power and water facilities by the provincial government.

A public protest rally last Friday called on the Salcon consortium to pack up and sell its 70-percent ownership in the power and water utilities.

Meanwhile, Bohol Light successfully conducted its public hearing for capital projects presided by Commissioner Jose Reyes of the Energy Regulatory Commission (ERC) who arrived Friday at the Bohol Light office while the protest rally was in progress.

Organized by City Mayor Dan Lim and businessman civic-leader Djingo Rama, the rally was attended by former Bohol Gov. David Tirol, former OIC Gov. Victor dela Serna, Vice Mayor Nuevas Tirol-Montes, Provl Administrator Tomas Abapo Jr. and city councilor Danilo Bantugan.

Some 500 protestors, mostly students, joined last Friday's rally which was questioned by some quarters on why students were "used" to attend the rally, which was covered live by city radio stations.

In his speech, Mayor Lim threatened that if Salcon, which controls Bohol Light and Bohol Water will refuse to leave within this year, he will be compelled to find legal remedies to shutdown the utility companies.

The mayor declared he is willing to offer up to P300 million to reacquire the Salcon equity in both utility firms and pay up for its losses just so the provincial and city governments have control on the utilities.

   

In three-year time, the mayor expressed optimism that both utilities can stand on its own and will be financially stable to support other basic services such as healthcare.

According to Mayor Lim, he doubts the reported losses of both Bohol Water and Bohol Light in the past six years being subsidiaries of Salcon which is a publicly listed company.

The mayor blames a local businessman who is reportedly the conduit of Salcon to invest here.

For his part, former Gov. Tirol bared that during their recent board meeting in Cebu City, he queried Salcon chair Lim Chan-lok on Bohol Light's P15-million allocation for administrative services or about 45% of its operational expense from the total P28-million budget this year amid rumors of overstated expenditures specifically in professional and retainers fees in its financial statements.

According to Tirol, Chan-lok pointed out that these expenses included payments to local media practitioners who are hired by the twin utilities for its public relations.
He identified Boy Guingguing, Sunday Post publisher and Loy Palapos, freelance writer.

After learning the amounts being paid to media practitioners, the former governor argued that even the government's board representatives receive a per diem of only P1,500 every three months.

The hired mediamen where allegedly receiving over P5,000 monthly, according to the Salcon chairman.

Tirol accused Bohol Water and Bohol Light of cheating consumers in its monthly billings.
Tirol suggested to Gov. Erico Aumentado to communicate directly with Salcon stockholders regarding Capitol's proposal to buy back the utility firms as Chan-lok said that ownership issues could only be resolved by the stockholders.

The right to manage basic services such as power and water utilities should be the responsibility of the local government, Tirol stressed, and that "foreigners have no business" controlling the power and water firms.

On the other hand, Abapo, who represented Gov. Aumentado conveyed the governor's opposition to the water and power rate increases.

In fact, Abapo stressed, an intra-corporate complaint has been filed at the Regional Trial Court last January 18 questioning the legitimacy of the 40-percent water rate increase of Bohol Water.

Abapo also cited that the governor is already awaiting the current valuation of both utilities and its market value when it was semi-privatized following the joint-venture agreement (JVA) forged back in 2000.

Meanwhile, Dela Serna raised points why it is necessary for the provincial government to buy back the water and power services.

He explained Salcon is a private corporation with the primary purpose of earning profits while the 30-percent ownership of the province is affected with the suffered losses of Bohol Water and Bohol Light.

Mayor Lim also raised the issue of power cost adjustment being charged in the electric bills that is more than the actual consumption.

Councilor Bantugan revealed that the city government received notice from Bohol Light last month that the company's systems losses will be passed on to its concessionaires.

This was opposed by city lawmakers who adopted a resolution in its regular session last Wednesday.

MEDIAMEN'S COMMENT

Asked to react on Tirol's statement, Guingguing challenged the former governor to show proof that he actually received money from Salcon. With his access to the books of accounts and corporate records, Tirol should support his claims.

According to Guingguing, as a lawyer, Tirol should have first substantiated his claims and charges against members of the media. The former governor, Guingguing said, sounded uncertain with his facts.

The Post publisher added that if Tirol felt he is receiving less for the services he renders as the provincial government's representative to the Bohol Light board, then he should resign.

Guingguing explained further that his personal position against the buy-back of the utilities is sometimes misconstrued he is being paid.

On the other hand, Palapos told the Chronicle that he was indeed contracted by Salcon two years ago to handle its public relations.

However, after a few months, Palapos completely changed his mind when he sensed there was something wrong with Salcon and refused to sign the renewal of his contract.

ERC HEARING

The public hearing inside the Bohol Light building was orderly presided by Commissioner Jose Reyes of the Energy Regulatory Commission (ERC) together with Atty. Joel Bontoyan, hearing officer of the ERC Visayas.

Bohol Light manager Engr. Noel Alingig made an expository presentation on the proposed capital projects.

In an interview with the Chronicle, Reyes explained that the hearing was for capital projects only in order for Bohol Light to put up transformer substation and install new lines and improve existing lines in its service areas.

He clarified that Bohol Light have no application for rate adjustment yet and a separate hearing will be conducted once the utility company applies for increase.

Clarificatory hearings will be scheduled as soon as the commission has reviewed Bohol Light's capital project application.

  

 
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