BY DAVE SUAN ALBARADO
The Sanguniang Panlalawigan’s Committee of the Whole will review the sale of Salcon’s stake in Bohol Light Company Inc. to Primelectic Holdings Inc., following opposition from board members.
The decision was made during a regular session on Nov. 12, after the provincial board rejected a resolution by Board Member Aldner Damalerio to adopt the opinion of the Provincial Legal Office on the matter.
The Provincial Legal Office had been asked to revisit issues raised by the Center for Government Accountability and Review (OGAR) about the sale of Salcon shares in BLCI, allegedly brokered by Gov. Aris Aumentado, and to consider filing court action to protect the provincial government’s interests.
Instead, the majority of the board decided to review the legal office’s opinion before taking any action.
Board Member Benjie Arcamo has taken a stance that the provincial government should issue a notice of default, citing an alleged violation of the joint venture agreement.
Arcamo claims that the sale of Salcon shares to the Razon group of companies was made without prior written agreement from the provincial government.
He has filed a resolution to issue a notice of default, but it was not adopted.
Arcamo maintains that the provincial board has not seen the deed of sale executed between Salcon and Primelectric Holdings Inc. and that the board does not know what was sold or what role Primelectric plays in the private consortium.
The board member argues that the termination of the agreement occurred due to default, which happened when the sale was made without prior written consent from the provincial government.
This stance is contrary to the Provincial Legal Office’s opinion, which states that prior written consent is not necessary since the board declined Salcon’s offer to buy the shares.
Arcamo insists that the board only declined the offer to buy the shares and did not authorize the governor to issue prior written approval for the sale of Salcon’s BLCI shares.
The Committee of the Whole will review the matter further.
Board Member Aldner Damalerio initially moved for the board to adopt a September 17, 2024 legal opinion from the Provincial Legal Office (PLO) regarding the sale.
However, after several clarifications and amendments, even this procedural motion failed with eight members voting against and only four in favor.
Board Member Venzencio Arcamo raised important concerns about potential defaults under the Joint Venture Agreement’s Article 13, particularly regarding the transfer of operational rights without prior provincial approval.
Arcamo proposed sending formal notice to the consortium about the alleged default, but this motion was also defeated 8-4.
“We do not know what was sold because we have not seen the contract,” Arcamo said during deliberations. “As long as there was a sale [without prior written consent], we have to assume the Consortium committed default when it sold or conveyed its right in the operation, maintenance, and management.”
The issue has drawn increased attention following recent statements by former Bohol Governor Rene Relampagos in a radio interview with Ardy Batoy of radio station DYTR.
Multiple legal opinions and communications have been submitted to the board, including letters from former OGAR officials Leoncio Evasco Jr. and Atty. Dan Lim, as well as various legal assessments from the PLO.
Board Member Greg Jala, opposing immediate action, pointed out the need for careful deliberation.
“We need to discuss it further,” Jala said. “We cannot sort out these things in this hall kay daghang we need to consider.”
Floor Leader Jiselle Rae Villamor echoed these sentiments, noting that new information about the Joint Venture Agreement warranted “a well-studied and informed session” with additional clarification from Provincial Legal Officer Atty. Handel Lagunay.
The sale of BLCI has become controversial as it follows a previous board resolution declining to exercise the province’s right of first refusal on BLCI’s 70% share sale.
The complex legal and procedural questions surrounding the sale’s compliance with existing agreements have created uncertainty about the validity of the sale.
The provincial board ultimately voted to refer the entire matter back to its Committee of the Whole for comprehensive review and discussion.