Bid out congressional franchise

Any and all congressional franchise for any public utility must be won through bidding and not by political lobbying.

The on-going controversy regarding the franchise to operate the electric power distribution in Iloilo City has scaled up to the point that certain irregularities or alleged abuse of power in Congress have become talking points for all parties concerned as well as the media and the general public. We can all deliberate and debate on talking points but the one thing many members of Congress and certain Senators will want to avoid would be my suggestion that any and all congressional franchise should be bid out, won through bidding and at the very least for those biddings to be managed by the department or regulatory agency in charge of such franchised public utility.

Why should Congress be exempt from the law they made that requires all government offices and agencies to conduct biddings for purchases, sale of property, or franchises and permits to operate if the intention and design of public bidding is to ensure integrity in doing business with government? If Congress and the Executive branch are co-equals, then Congress must stop being the privileged house that can give away, bargain or sell off franchises for public utilities. In a day and age where political lobbying is a daily occurrence, when politicians are increasingly suspected of supporting vested interests in exchange for political campaign contributions, financial support as well as perks for travel, wining and dining, and in a period when “politi-corporate” figures loom large as influencers and the bosses of industries and elected officials, it is time to trim the claws of legislators who have a penchant for manipulating legislation for the benefit of their commercial patrons. Only through bidding out franchises can public interest be protected and only through public bidding can we stop politicians from facilitating hostile takeovers or literally and legislatively stealing business from small companies or corporations.

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Judging solely from what has been put out in the media, it is clear that the fight between the Panay Electric Cooperative or PECO and Monte Oro Resources Energy or MORE Mining is a corporate hostile takeover that was decided by political patronage and not corporate competence or capability. How on earth can a 90-year-old-plus company that went from the ground up in power distribution covering 64 square kilometers of Iloilo City and with an investment of P1.7 billion pesos in its operation simply be taken over by a mining firm whose only possible ace card would be the billions it can tap into from sister companies engaged in gambling and port operations. The would-be competitor for the franchise does not have the track record, history, or logistics on the ground that would make them a legitimate aspirant for such a takeover. If the Panay franchise were subject to bidding in a fair and square process, MORE Inc. would automatically be disqualified on the basis of  having no experience in power distribution.

But that is the problem we have. No one is interested in a fair fight. Congress and the Senators involved don’t even want a “fight.” Based on what PECO officials shared, the legislators did not even conduct a fair hearing or a chance for the aggrieved party PECO to confront the people who now stand to take away their business by simply using the provision of “eminent domain” or the right of government or its agent to expropriate property for public use with payment of compensation. In other words MORE can simply cite that provision, offer PECO an amount for their properties and equipment and MORE gets to sit on the throne collecting all the profits for the next 25 years or more. In the meantime, my fellow columnist Vic Agustin recently wrote that Senator Grace Poe has effectively given PECO two years to finish up with their business matters and move on, while MORE moves in. That I think is the ultimate insult to PECO, knowing two Ilonggos or Senators who have roots from Iloilo, gave them up and allowed the boys from Imperial Manila to kick them out.

After the legislative coup d’état on PECO I am reminded of the scene from a local movie No Other Woman where actress Carmi Martin goes: “Ang buhay ay parang Quiapo. Maraming snatcher. Ma-aagawan ka. Lumaban Ka.” Will the Cacho clan simply take the money or will they make this hostile takeover a complicated, scandalous and ultimately higher priced acquisition for Mr. Razon? Will it end up before the Supreme Court or will it all lead to changes where Congress and Senators will also pay a price come elections and beyond? Stick around.

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LTFRB Board Member Aileen Lizada who was once the Joan of Arc who rallied the forces of the LTFRB and IACT against corruption in the transportation sector and was the voice of the agency was recently publicly slammed by the DOTr and Secretary Tugade because Lizada criticized and pointed out the questionable issuance of City Bus franchises in front of Congress. To be fair, Lizada had no choice, as she was a resource person who had to tell the truth and give her professional input to the inquiry. 

Unfortunately the intellectual honesty and personal integrity of Lizada did not sit well with the Boys Club at the DOTr so they painted her out as a malcontent who should have brought her complaints to the Boys Club and not Congress or media. Perhaps it is about time that President Duterte removes his blinders of friendship and send in a team to investigate the DOTr and the LTFRB. If members of Congress already found reason to conduct an inquiry on the PITX and the 300 special franchises, then Malacañang should really do likewise.