SOCOTECO II, NEA officials sued before Ombudsman over 'IGNITE' deal

Around 10,000 member-consumer-owners (MCOs) have signed criminal and administrative charges before the Office of the Ombudsman against officials of the South Cotabato II Electric Cooperative (SOCOTECO II) and the National Electrification Administration (NEA) over alleged serious irregularities in a proposed joint venture agreement with IGNITE Power and Energy Holdings.

The complaint was filed last July 10 by Eduardo Villaluz Corteciano, Henry Singco Cadorna, Danilo Adrales Daca, and Evangeline Genilo Malit alongside Bantay Kuryente Consumer Watch, Inc. and other MCOs.

It seeks both criminal and administrative liability against the respondents and calls for the immediate preventive suspension of all parties pending investigation.

NEA representatives Antonio Mariano C. Almeda, Emerico Escobillo, Atty. Ivan Darwin Zamora, Prof. Rowaldo "Wali" D. Del Mundo, and SOCOTECO II Board members Elenito C. Senit, Patrick S. Yap, Peter Jayson A. Acharon, Jessie F. Alaban, Ben B. Advincula, Musa N. Mang, Mae V. Mendoza, Cherry Joie Lima-Ponce, Ancieto G. Baculna Jr., and Leyne S. Alferez were named respondents.

Among accusations in the complaint are violations of Sections 3(e) and 3(g) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act.

The complainants also filed administrative charges for Oppression, Grave Misconduct, Serious Dishonesty, Gross Neglect of Duty, and Conduct Prejudicial to the Best Interest of the Service.

There are alleged irregularities in the joint venture sought between SOCOTECO II and IGNITE Power, where, according to the complaint, the deal was conspired to push through without conducting the mandatory competitive public bidding required under NEA Resolution No. 88, Series of 2002.

They also allege that the resolutions used to advance the partnership were passed under "questionable circumstances".

Specific allegations include pre-determined Terms of Reference, which the complainants say had already been prepared and approved even before the technical working group tasked with drafting them was even constituted.

It also highlighted "improper classification" on the part of NEA where the agency only has "step-in rights", which allow for joint ventures, mergers, or third party management, only for electric cooperatives classified as "Red" or ailing.

However, SOCOTECO II has been consistently classified as "Yellow" and was further downgraded to Category "B" in May last year.

The complaints also allege that there was a lack of member approval, saying the PPP framework was finalized before securing such approval, and that the respondents intended to use the Annual General Membership Assembly, scheduled for July 26, to ratify an already finalized agreement.

Furthermore, they also said that in March 24, 2026, Directors Patrick Yap and Elenito Senit assured that no direct award would be granted to IGNITE Power, however, the board had already obtained NEA's conditional approval for resolutions favoring the company's proposal.

Complainants also said that MCOs only learned of the true status of negotiations through media reports and public hearings, and not from official disclosures from the cooperative.

They also questioned the financial challenges cited in the proposed PPP, and said that the SOCOTECO II board was divided over the proposed deal.

Two directors refused to sign the resolutions while another signed them only "with reservation" further questioning the legitimacy of the transaction.

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