Plan to privatize co-op stopped

LEGAZPI CITY—Opponents of the plan to privatize the Albay Electric Cooperative (Aleco) scored an initial victory after the regional trial court (RTC) here granted their petition for a temporary restraining order (TRO) to stop the process of turning over to the private sector the nearly bankrupt cooperative.

Lawyer Bartolome Rayco, one of the petitioners, on Wednesday said RTC Branch 2 Judge Ignacio Almodavar issued the TRO on Monday, stopping the Aleco interim board of directors from proceeding with the awarding of the winning bid to the concessionaire that will operate Aleco under the private sector participation (PSP) scheme.

Almodavar also set on May 28 the hearing for the petition for a preliminary injunction filed by Rayko and another Aleco consumer, Darlan Barcelon.

Rayco filed the petition on April 19 arguing that members of the Aleco interim board have no authority to place Aleco under PSP or any privatization scheme as they were not elected into office by cooperative members.

The interim board, chaired by Legaspi Bishop Joel Baylon, was formed after the National Electrification Administration (NEA) took over the supervision of the financially beleaguered cooperative last year.

Baylon was named respondent in the complaint, along with board members Ian Macasinag, Jose Misael Moraleda, Magen del Rosario, Rosario Bombales, Augusto Villalon, Antonio Tan and Jose Vicente Fernandez.

Asked to comment on the TRO, Baylon, in a text message Wednesday, said he could not react until he has discussed the matter with Aleco lawyers.

Rayco, in an interview Wednesday, said the PSP proposal has already been rejected by majority of cooperative members in a special general assembly held on Nov. 30, 2012.

Under the PSP, Aleco will enter into contract with a private company that will manage and run Aleco for the next 25 years.

Bishop Baylon, in earlier interviews, defended the privatization plan, saying it was the only way to bail out Aleco, which is saddled with a P3.7-billion debt.

Aleco was pushed deep into debt as a result of mismanagement and unabated corruption by officials that ran the cooperative for the last 10 years, according to NEA officials.