The sale of shares of the Bohol Light Company Inc. (BLCI) has effectively undermined the right of the Provincial Government of Bohol (PGBh) to choose its private sector partner, according to Board Member Benjie Arcamo.
In an interview with Ardy Araneta-Batoy on Newsmakers ug Uban Pa on November 27, 2024, Arcamo explained that the inability of the PGBh to terminate the joint venture agreement (JVA) that led to the sale of BLCI shares from Salcon to Primelectric Holdings Inc. deprived the government of a choice.
“The PGBh, as the owner of the resources, was unable to make a choice on which private company to partner with,” Arcamo said.
“When Salcon sold its BLCI shares without prior written approval, the agreement should have been terminated, and the PGBh should have been given the opportunity to choose the next partner.”
However, Arcamo claimed that the PGBh refused to buy the BLCI shares, and Salcon felt that it had gained the right to sell the shares to someone else.
Arcamo argued that the agreement should have been terminated first before selling the shares.
“What happened is that the agreement was not terminated, and Primelectric only took over from Salcon as a substitute to operate BLCI,” Arcamo said. “The move of substitution is now the subject of interpretation for the court to decide.”
The issue has been deferred by the provincial board, and Arcamo and his colleagues are waiting for it to be calendared and discussed.
Meanwhile, columnist Donald Sevilla of The Bohol Tribune pointed out the need for a thorough study before making a decision on the BLCI issue.
Sevilla said that the PGBh should have conducted a long and hard study before refusing to buy back the BLCI shares.
“The quick refusal to buy back the shares should have been given a thorough study,” Sevilla said. “Salcon offered the BLCI shares to the PGBh, which refused, and then Salcon sold the shares to the group of Enrique Razon.”
Sevilla expressed surprise that the shares were sold while the discussion was ongoing, and people are left with unanswered questions due to the lack of transparency.
He also pointed out that there are processes in relation to the share sale that allegedly were not followed, including the need for prior written approval from the provincial government and the valuation of the joint venture by a third-party firm.
BLCI share sale has stained the transparency and accountability of the provincial government’s decision-making process.