Zamboanga City Second District Rep. Manuel Jose Dalipe is pushing for the termination of a contract between the Zamboanga City Electric Cooperative (ZAMCELCO) and an electric distribution facility over ZAMCELCO’s supposed P4.6B debt.  

During the 45th annual assembly of ZAMCELCO, Dalipe moved to terminate the investment management contract between ZAMCELCO and Crown Investments Holdings, Inc., the power distribution facility that runs the cooperative since 2018.

However, ZAMCELCO said the move of the lawmaker was not included in the agenda.  

“He should further be reminded that Section 10 of Republic Act 10531 provides that “the management, operations, and strategic planning of electric cooperatives, shall, as much as practicable, be insulated from local politics,” Atty. Estrella Elamparo, legal counsel of the ZAMCELCO Board of Directors, said.  

Crown Investments Holdings Inc. said the agenda and order of business for the annual general meeting of ZAMCELCO is fixed based on its by-laws.

“Assuming that the Agenda could still be modified, the proper motion should have been raised before the meeting could proceed. It was only after all the matters in the Agenda had been taken up that the request to insert a matter therein was raised,” Crown Investments Holdings Inc. said in a statement.

It also clarified that only the board of directors of ZAMCELCO can act whether to continue or terminate the contract and only a court of law can decide to rescind a duly executed contract.

“It is very clear that the termination of the IMC is not something that the General Membership has the authority to decide on. The contract has specific provisions on dispute resolution and grounds for termination. As such, the AGMA is not the proper forum for such a legal and commercial discussion,” it added.

Dalipe’s camp clarified that what they wanted is a resolution to be passed that will terminate the contract.  

“Only a resolution from the annual general membership assembly, a resolution emanating from members consumers of ZAMCELCO, it will not immediately and automatically terminate contract,” Atty. Carl Rubio, legal counsel of the power consumers, said.  

Dalipe revealed that ZAMCELCO has incurred a debt amounting to P4.6 billion.  

“Ang issue simple lang, tinuod ba dunay 4.6 billion pesos ang Zamcelco gumikan sa Crown? Tinuod ba nga dunay system loss on the average 22 percent tungod sa Crown? Tinuod ba nga dunay monthly loss nga P60 million? Ako, dunay letter gikan sa adminitrador sa National Electrification Administration… kini ang tinuod. Ang data dinhi is accurate, up-to-date,” Dalipe said.  

However, ZAMCELCO said the P4.6 billion is not a current debt.  

“Sa amua sa accounting, dunay ginatawag nga accrual… correct na ang 4.6 (Billion pesos) apan parte sa 4.6 (Billion pesos) katung gi-recognize namo nga utang, bayaran namo sa July, power bills sa amuang power supplier,” ZAMCELCO Chief Management Officer, Atty. Rommel Agan, said.  

ZAMCELCO is looking into taking possible action against Dalipe for ‘courteous interference.’