SOCOTECO II plebiscite resumes after court lifts TRO on IGNITE deal

Insider Spotlight

• Court dissolved the temporary restraining order, allowing SOCOTECO II to proceed with the plebiscite on its proposed joint venture with IGNITE Power.
• Judge ruled the petitioner failed to establish grounds for a preliminary injunction, describing the claims as speculative.
• Remaining voting schedules are set for Sept. 19-20 and Sept. 26-27 after this weekend's voting was deferred.

The Regional Trial Court in Polomolok, South Cotabato, has cleared the way for member-consumer-owners (MCOs) of South Cotabato II Electric Cooperative (SOCOTECO II) to vote on a proposed joint venture with IGNITE Power and Energy Holdings Inc. after lifting a temporary restraining order (TRO) that had halted the plebiscite.

In a 12-page resolution dated Sept. 11, RTC Branch 62 Judge Vicente Andiano granted SOCOTECO II's motion to dissolve the TRO and denied MCO Eugenio Mangilaya's application for a writ of preliminary injunction, saying the petitioner failed to satisfy the legal requirements for the remedy.

Why it matters

The ruling removes the legal hurdle that had suspended the cooperative's voting process, allowing MCOs to decide whether SOCOTECO II should proceed with the conditional joint venture agreement (CJVA) with IGNITE Power, a partnership the cooperative says is needed to address financial and operational challenges.

The court said Mangilaya's allegations that SOCOTECO II's board lacked transparency in approving the CJVA, including claims that members were not provided copies of the board resolution and agreement, were insufficient to justify an injunction.

"What plaintiff offers is a conjecture presented as violation, and an injunction will not protect a right founded on nothing more than speculative claim," the court said.

The big picture

The court also rejected arguments that proceeding with the plebiscite would cause irreparable injury, noting that the proposed agreement remains conditional and has yet to reach its final stage.

"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.

It added that Mangilaya could still pursue his main case seeking to nullify the plebiscite and the CJVA, as well as claim damages, if irregularities are later established.

With the TRO dissolved, SOCOTECO II said it would no longer conduct voting on Sept. 12-13 because of limited preparation time following the ruling. The remaining voting dates are Sept. 19-20 and Sept. 26-27.

What they're saying

The decision came as thousands of SOCOTECO II MCOs gathered in General Santos City and Polomolok to express support for the proposed partnership. Organizers estimated about 5,000 attendees, including nearly 3,000 at Plaza Heneral Santos.

Supporters said the joint venture would provide capital and technical expertise to modernize the cooperative's aging distribution system. The proposal has also drawn opposition, including a House resolution filed by General Santos Rep. Shirlyn Bañas-Nograles seeking a congressional inquiry into the selection of IGNITE as private-sector partner. The resolution did not establish wrongdoing in the proposed transaction.

IGNITE Power is backed by Primelectric Holdings Inc. of billionaire businessman Enrique Razon Jr. and MP Holdings Inc. of boxer-turned-lawmaker Manny Pacquiao, while SOCOTECO II has maintained that a private-sector partnership is necessary to address accumulated losses, aging infrastructure and persistent system losses. The court's ruling now leaves the final decision to the cooperative's MCOs through the plebiscite.

— Edited by Daxim L. Lucas