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Business

Out with the old, in with the new

HIDDEN AGENDA - Mary Ann LL. Reyes - The Philippine Star

The 1987 Constitution itself provides that the grant of franchises for the operation of public utilities is subject to the condition that it can be amended, altered, or repealed by Congress when the common good so requires.

And this is exactly what Congress did when it refused to renew the franchise of Panay Electric Co. (PECO) to distribute electricity in Iloilo City, which it has been doing for 95 years, and instead gave newcomer More Electric Power Corp. the right to operate in the same area.

And last Valentine’s Day, President Duterte gave the people of Iloilo City what they have been clamoring for many years now – a new franchisee with financial muscle to modernize the city’s power distribution system. He signed into law Republic Act 11212 granting More Power a franchise to operate a distribution system for the conveyance of electric power to end users in Iloilo City.

PECO, whose franchise expired last Jan. 18, was temporarily authorized under the said law to operate until the establishment or acquisition by More Power of its own distribution system.

More Power has reportedly offered to pay the Cacho family which owns PECO just compensation for PECO’s assets that More Power needs to take over so it could build its own reliable electricity distribution system.

But PECO refuses to give up the fight. Its owners want More Power to put up its own electricity distribution system and have refused to sell. Apparently, they plan to secure a legislative franchise when a new Congress convenes in June. In short, they want two power utilities operating in the city.

PECO also said it would question in court any unconstitutional expropriation by More Power of its assets without due process.

But More Power president Roel Castro has said expropriation proceedings are a last resort, as the company remains hopeful they could convince PECO’s owners to negotiate.

RA 11212 actually entitles More Power to take “immediate possession, operation, control, use and disposition of the properties sought to be expropriated, including the power of demolition,” once it has initiated expropriation proceedings and deposited in the bank the full assessed value of the PECO distribution asset it wants to take over.

Castro revealed that they are interested in buying from PECO its transmission lines particularly those in the new business district in Iloilo City.

Senate Minority Leader Franklin Drilon, an Ilonggo and a former supporter of PECO, has expressed frustration over the Cachos’ hardheadedness on the issue and blamed their failure to invest to improve operations for the non-renewal of their franchise.

On the other hand, More Power, including its major stockholder Enrique Razon Jr., is willing to spend P2 billion for capital investments.

It plans to install new transmission poles or rehabilitate existing ones to make them safe, considering that at present many electric poles are already leaning while the wires are not properly laid out.

The Cachos already had it good for 95 years. Maybe it’s time for them to make a graceful exit. This is not longer about pride. Public good already requires a more efficient franchisee. And what’s this we’ve heard that to accept a settlement, PECO’s owners want More Power to pay for prospective loss of income?

Seeking the truth

Did she or didn’t she?

While the camp of Ilocos Norte governor and senatorial candidate Imee Marcos claims that she graduated with honors from the UP College of Law, UP’s administrators are saying otherwise.

The issue was actually triggered by photos posted on Imee’s Facebook account supposedly taken during her graduation rites in 1983 from UP College of Law. According to the photo’s caption, the  ceremonies were held at Meralco Theater where her parents pinned her cum laude medal.

Reports also reveal that the late UP Law dean Froilan Bacungan, who was dean from 1978 to 1983, had admitted in a published book that he allowed Imee to enroll despite her failure to present a certificate indicating that she had the required bachelor’s degree.

Bacungan had said he was at the said graduation ceremony. “It was a little bit (of) PR that, strictly speaking, we should not have participated in,” he was quoted as saying. But then of course, there is no way that we can ever verify his alleged statement.

Now, we have the Office of the UP President saying there is no record of Imee graduating from UP nor any honors or academic distinctions received with the University Registrar's office.

For his part, UP executive vice president Teodoro Herbosa said that Imee took non-degree courses in the UP College of Arts and Sciences during 1976-77 and then took courses under the Bachelor of Laws program at the UP College of Law from 1st semester 1979 to 2nd semester 1983.

So there was a commencement exercise with lots of people in attendance, notably faculty members and her parents, then President Ferdinand Marcos and her mother Imelda. Imee attended law school for four years. Is it possible that her records were misplaced or worse, hidden or destroyed? If that’s the case, then Imee can file a criminal case for infidelity in the custody of public documents against UP officials or personnel who may have removed, destroyed, or concealed documents or papers entrusted to them. It is not even required that there be proof of intention to conceal.

It is unfortunate that Imee no longer wants to talk about this matter when asked by media people. But this is understandable. If she produces her diploma or transcript of records, what would stop UP from saying that these are fake?

On the other hand, if she is lying, then she should suffer the consequences.

For comments, e-mail at [email protected]

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PANAY ELECTRIC CO.

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