Razon-Pacquiao power firm: No formal nego on joint venture with SOCOTECO II

Ignite Power, a partnership of Razon-led Primelectric Holdings Inc. and Manny Pacquiao's MP Holdings, on Thursday said there are no formal negotiations ongoing for its proposed joint venture with South Cotabato II Electric Cooperative (SOCOTECO II).

Ignite Power issued a statement following a recent forum in General Santos City with stakeholders to discuss SOCOTECO II's current status and future direction.  

Ignite Power's legal officer Allana Mae Babayen-on said the company and SOCOTECO II's Board of Directors have not finalized any agreement.

“There are no negotiations at all, and the most we heard from the board of directors of SOCOTECO II was an initial acceptance of the offer,” Babayen-on said. 

“Nothing has been accepted. Nothing has been negotiated,” she added.

Ignite Power’s legal officer said that the proposed joint venture should not be decided solely by the cooperative’s board or selected groups, but by the entire membership base of SOCOTECO II. 

Babayen-on was referring to the referendum requirement under Presidential Decree No. 269, which mandates that joint ventures must secure approval from a qualified majority — or 50% plus one — of all active member-consumer-owners.

Ignite’s counsel clarified that SOCOTECO II is not an “ailing cooperative.”

“SOCOTECO II is not ailing, otherwise we would not be here at all. According to the law, if an electric cooperative is ailing, [the National Electrification Administration] steps in. So we cannot even offer a proposal if it is ailing," said Babayen-on. — BM, GMA News