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Thursday, June 15, 2006
Power firm warned of legal suit
By Maricar Aranas

THE provincial legal counsel has warned the board of directors of the Negros Oriental 2 Rural Electric Cooperative (Noreco 2) of legal problems if they reject the request of member-consumers to hold a special assembly in Dumaguete City.

Provincial legal counsel Erwin Vergara's warning comes as the Rotary Club of Dumaguete, the City Government of Dumaguete, and the Provincial Government started their joint campaign to collect a minimum of 3,500 signatures for the petition to hold the special assembly.

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A minimum number of 3,500 signatures are needed for the directors to entertain the petition and decide on whether to hold a special assembly.

But Vergara said the board could not afford to play “deaf and dumb” to the cry for the special gathering because they owe their position to the cooperative members which total to more than 20,000.

The legal counsel said any member of Noreco 2 could sue the directors if they rejected the call.

The joint signature campaign was hatched after the annual general assembly of Noreco 2 last March in Bayawan City, more than 100 kilometers from Dumaguete City, when the board rejected the offer of the Provincial Government to lend P27 million interest-free to the cooperative to improve its power distribution system.

Vergara said the decision of the annual assembly should not have been used as basis to repudiate the offer because the attendance estimated at only over 1,000 was way below the membership population of more than 20,000.

He explained that calling for a special assembly in Dumaguete was only proper since the recipients are electric power consumers of the city.

Moreover, the legal counsel said, Noreco 2 general manager Ephraim Taclob had assured that the loan offer would not affect power rates.

Vergara said political and personal reasons could be behind the decision to reject the interest-free loan offer.

(June 15, 2006 issue)
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