Seeking justice for Boholano taxpayers, a corruption watchdog group is calling for transparency and due process in the one-sided sale of shares of Bohol Light Company Inc. (BLCI), the main power distributor in Tagbilaran City, to billionaire Enrique Razon.
The Center for Government Accountability and Review (CGAR), now led by former CabSec Leoncio “Toloy” Evasco and former City Mayor Atty. Dan Neri Lim, has raised concerns about the provincial government’s decision not to exercise its right of first refusal in the sale of a 70% stake in BLCI currently held by Salcon Power Group (SPG).
Lim, a CGAR spokesman, appeared on Ardy Araneta-Batoy’s program over station DYTR on Thursday to explain the group’s position.
“Naay nakakwarta ani,” Lim revealed. “Atong tagaan ug hustisya ang katawhang Bol-anon nga maoy tag-iya sa Bohol Light.”
Atty. Lim said CGAR is primarily concerned with protecting the interests of Boholano consumers.
“Transparency is the important thing here,” Lim said. “Consumers have the right to know what the deal is all about.”
The controversy stems from SPG’s sale of its majority stake in BLCI. The More Power Group, part of businessman Enrique Razon’s corporate empire, had confirmed it bought BLCI for P200 million. BLCI assets have been estimated at P3 billion.
CGAR sent a strongly-worded letter to provincial officials questioning the decision-making process.
The group argues that the Local Finance Committee’s recommendation to decline purchase of the shares is based on flawed calculations.
According to CGAR, when BLCI was initially privatized in 2001, the provincial government received only 52.5 million pesos for the 70% stake. This contradicts the recent valuation of 206 million pesos cited by officials.
The watchdog group also alleges that privatization has failed to improve BLCI’s services as intended. They are calling for the Sangguniang Panlalawigan, the provincial legislative body, to reopen its investigation into the matter.
Atty. Lim reminded Capitol officials that they do not own BLCI as their private corporation, stressing public ownership and public interest are at stake in the transaction approved by suspended Governor Aris Aumentado.
Lim disputed the Local Finance Committee’s assessment that the provincial government cannot afford to buy the shares. He suggested that a public bidding could fetch up to 500 million pesos from interested investors.
“If push comes to shove, CGAR will be constrained to go to court and file appropriate charges against the current provincial administration,” Lim warned.
The former mayor also raised concerns about alleged obstruction by Provincial Administrator Asteria Caberte in releasing relevant documents.
Lim said if these allegations prove true, it could place the administration in a difficult position.
CGAR members signed the letter in their private capacities, Lim clarified, as the group’s official status remains unclear following legal challenges to its creation.
The watchdog was originally established as the Office of Government Accountability and Review (OGAR) by suspended Governor Erico Aristotle Aumentado. However, a court ruling deemed the office unconstitutional, leading to its current ambiguous state.
Despite losing their office space in the Capitol, Lim insists CGAR remains active. The group now meets monthly in hotels and coffee shops to continue its oversight efforts.
“CGAR remains the vanguard of good governance, which is the reason for its existence,” Lim said.
Only two members, Macario Delusa and Suceso Arcamo, are paid as consultants, while others, including Lim and Evasco, serve as volunteers.
The Sangguniang Panlalawigan’s planned probe into the BLCI share sale has been delayed following the death of acting Governor Dionisio Victor Balite.
No new date has been set for the Committee of the Whole meeting to address the issue.
Lim expressed understanding for the postponement given the province’s current situation. The provincial board is expected to meet Tuesday, following Monday’s Bohol Day holiday.
JORDAN MOVES
Meanwhile, a lawyer in Bohol province has raised concerns about the discounted sale of BLCI, warning it could negatively impact consumers already struggling with high power costs.
In a letter addressed to provincial officials, Attorney Jordan Pizarras said he was writing “as a Boholano lawyer, concerned citizen, taxpayer, and resident of Tagbilaran City” regarding the potential sale of SPC Power Corporation’s 70% stake in Bohol Light Co. Inc. (BLCI) to Razon group-affiliate Primelectric Holdings.
Pizarras cited recent media reports indicating SPC Power was divesting its stake in BLCI for P199.5 million pesos. The remaining 30% of BLCI is held by the Bohol provincial government.
“What is bothersome is the report that appeared in Bohol Chronicle that the Provincial Government declined the earlier offer of SPC Power Corporation to buy back the 70% of the BLCI held by the SPC Power Corporation as it would reportedly cost the province P206 million pesos,” Pizarras wrote.
He argued this decision, if accurate, would be “most unfair to the long-suffering people of Tagbilaran City who will continue to shoulder the high cost of electricity in the city.”
The lawyer urged provincial leaders to show “a little more concern for the welfare of the Tagbilaranons” instead of “just rejecting the buy-back offer.”
Pizarras, a self-proclaimed “tigpanalipud” or people’s defender, suggested officials could have sought a lower price or considered obtaining a loan to finance the buyback.
Pizarras also raised questions about the original 2000 sale of the government’s stake in BLCI, citing reports of financial discrepancies.
“Based on its publicly disclosed financial statement, BLCI then under the control of Salcon consortium, bought the provincial government’s electric distribution assets for P97.5 Million,” he wrote. “Of these P97.5 Million, and the Provincial Government allegedly received only P75 Million, P22.5 Million went missing. The missing P22.5 was recorded in the BLCI books as goodwill.”
He further alleged that of the P75 million pesos received by the provincial government, P22.5 million was “allegedly paid back to BLCI as payment for the provincial government’s 30% stake.”
Pizarras argued these transactions occurred during the tenure of then-Governor Rene Relampagos and then-Vice Governor Edgar Chatto, who he said was “the Presiding Officer of the Sangguniang Panlalawigan which approved the sale.”
The lawyer contended that rather than improved service, “Tagbilaranons continue to suffer from poor service. Brownouts are most frequent. Tagbilaranons continue to suffer at such a high cost.”
He urged the current provincial leadership to take a more “pro-active” approach, suggesting they consider buying back the entire 70% private sector stake or enough shares to gain control of BLCI.
If government funds are insufficient, Pizarras proposed officials “consider obtaining a loan from the Development Bank of the Philippines or the Land Bank for the purpose.”
“At any rate, a cursory review of the budget for the provincial government will show that the amount of P200 million is but a little over five (5) percent of the budget for 2024,” he added.
The lawyer argued that greater transparency from the provincial government in its dealings with SPC Power Corporation could have avoided the current situation.
Pizarras addressed his letter to Acting Governor Dionisio Victor A. Balite and Acting Vice Governor Tita Baja Gallente. He requested they look into the matter, citing its impact on “thousands of consumers of electricity in Tagbilaran City and neighboring municipalities.”
Provincial officials could not be immediately reached for comment on Pizarras’ claims and suggestions.