Court lifts TRO vs. plebiscite on SOCOTECO II deal with Pacquiao-Razon firm - GMA Network

A court on Friday lifted the temporary restraining order (TRO) that halted the plebiscite on the partnership deal between South Cotabato II Electric Cooperative (SOCOTECO II) and the Razon-Pacquiao-led IGNITE Power and Energy Holdings Inc.

In a 12-page resolution, the Polomolok, South Cotabato Regional Trial Court (RTC) Branch 62 ruled in favor of SOCOTECO II and dismissed the plea of a member-consumer-owner (MCO) for a writ of injunction against the plebiscite.

The proposed partnership between SOCOTECO II and IGNITE Power seeks to reduce the system loss charges passed on to consumers to 5.5%. It was set to be voted on by MCOs this September in line with directives from the National Electrification Administration (NEA).

Eugenio Mangilaya, an MCO who stood as the petitioner, claimed that SOCOTECO II's board lacked transparency in approving the conditional joint venture agreement (CJVA) between the companies, including their alleged failure to provide members with copies of the board resolution and agreement.

"...Claim on the assertion that the lack of transparency of SOCOTECO II's Board has prevented the MCOs from exercising their right to scrutinize the [CJVA]. The Board, he alleges, approved the Conditional JVA… without submitting the agenda for the assembly's approval and without furnishing the members present with copies of either the resolution or the agreement itself," the decision read.

"From this alleged lapse, plaintiff draws the conclusion that his right as an MCO was clearly violated even before the plebiscite could begin. The difficulty with this position is not that it lacks conviction, but it lacks proof," it added.

The court also noted that the CJVA remains conditional and has yet to reach its final stage.

SOCOTECO II had expected some 200,000 MCOs to vote in plebiscite, which would have decided if the cooperative's deal with Ignite Power should push through. Ignite Power is a partnership between Razon-led Primelectric Holdings Inc. and Manny Pacquiao's MP Holdings.

Last July 25, some 32,000 MCOs endorsed the proposed Conditional Joint Venture Agreement between the two parties.

The court added that if the plebiscite is later found to be tainted by irregularities, Mangilaya can still pursue his case seeking the nullification of the plebiscite and the CJVA, as well as damages.

"The JVA remains subject to a final, independent stage. It has not yet happened. Until it does, whatever consequence plaintiff fears from it remains a possibility hedged by condition, not an injury demonstrable in the present," the court said.

On September 4, Mangilaya filed for a TRO, which was later extended until September 24. This halted the first leg of the plebiscite scheduled for September 5 and 6.

In a statement, SOCOTECO II said voting on the deal could still proceed, but it would skip the scheduled voting on September 12 to 13 because of limited preparation time. The next voting dates will be on September 19, 20, 26, and 27.

The proposed joint venture with Ignite Power comes as SOCOTECO II continues to confront financial and operational challenges.

The electric cooperative said it has reported consecutive annual financial losses accumulated to P2.1 billion as of December 2025, increasing system losses to 14%, which causes P40 million monthly losses, aging distribution facilities, and the need for substantial capital investments to rehabilitate and expand its network. — VDV, GMA News