Panay Electric taps top lawyer in franchise issue

By Manila Standard Business
September 30, 2018 at 07:40 pm

The lawyer-husband of presidential daughter and Davao City mayor Sara Duterte-Carpio has weighed in on the tug-of-war between two companies over the electric distribution franchise in Iloilo City.

Lawyer Manases Carpio, acting as counsel for Panay Electric Co., asked Palawan Rep. Franz Josef Alvarez, chair of the House committee on legislative franchises, to hold the impending approval of House Bill 8132 seeking the grant of an electric distribution franchise to More Minerals Corp.

Carpio, in a letter to Alvarez dated Sept. 24, 2018, said Peco was objecting “in the strongest terms possible” to the alleged indecent haste and lack of justification for the committee to favor HB 8132 over another measure, HB 6023, which endorses the renewal of Peco’s franchise.

HB 6023 was filed as early as July 22, 2017 by Camiguin Rep. Xavier Jesus Romualdo, while HB 8132 was filed on Aug, 22 by Paranaque Rep. Gus Tambunting.

Peco said its its workforce, key industry players, stockholders and residents of the firm’s franchise area, were shocked that the Alvarez-led committee moved on on Sept. 17 to approve the MMC measure without giving the other party a chance to voice out their objections during the committee deliberations.

Carpio, citing records of the committee itself, noted that Peco’s franchise renewal bid was based on established track records and experience in power distribution, and “consistent with the ‘prior operator principle’ which gives preference, all other things being equal, to the prior holder of a franchise granted by the government over other applicants.”

The lawyer scored the committee for the alleged rush toward the approval of HB 8132, handing over the franchise to an applicant without any track record in power distribution and which “appears to be a mere shell company with a measly paid-up capital of only P2.5 million.

”Carpio said that based on information, the committee did not exert efforts to ensure that Peco representatives and other stakeholders were present during the hearings to give them the chance to air their sentiments, views, motives and motivations relative to the franchise issue.

“We thus respectfully request your committee to hold in abeyance its approval of the franchise application of More Minerals Corp. under HB 8132 until after more public hearings, with proper invitations to attend and adequate notice given to stakeholders, shall have been conducted on the matter,” Carpio’s letter stated.

“We believe that this is the best way to serve public interest as your committee goes about its business of determining which of the franchise applicants deserves its nod,” the lawyer told Alvarez.

An umbrella organization of electric distributors across the country earlier rallied behind Peco, saying a faulty decision by Congress on the issue would likely trigger a potentially damaging power crisis in Iloilo City.