Monday, April 30, 2007 SC junks workers' plea to quash power firm's privatization
THE Supreme Court (SC) has turned down a petition filed by workers of the National Power Corporation (Napocor) seeking to invalidate the privatization of the government-owned power firm that resulted in the dismissal of more than 2,000 employees.
The SC First Division chaired by Associate Justice Angelina Sandoval-Gutierrez ruled that the issue on the validity of the privatization of Napocor has already become moot and academic following the enactment of Republic Act (RA) 9136 or the Electric Power Industry Reform Act (Epira), which took effect on June 26, 2001.
The law mandated not only the restructuring of the entire electric power industry, but also the privatization of Napocor.
Thus, Napocor and the National Power Board (NPB) did not commit grave abuse of discretions in issuing several resolutions allowing the privatization of the power firm and the restructuring of the power industry, the SC said.
"Whether the state's policy of privatizing the electric power industry is wise, just, or expedient is not for this court to decide. The formulation of state policy is a legislative concern. Hence, the primary judge of the necessity, adequacy, wisdom, reasonableness and expediency of any law is primarily the function of the legislature," said the court.
Agreeing to the decision were Chief Justice Reynato Puno and Associate Justices Renato Corona, Adolfo Azcuna and Cancio Garcia.
The case stemmed from the petition for certiorari, prohibition and mandamus filed by several union groups of Napocor led by the NPC Employees Consolidated Union (Necu) seeking the nullification of NPB Resolutions 97-293, 99-24, 2000-41, NPC Circular No. 99-19 and NPC Memorandum Order no. 00-37.
NPB Resolution No. 97-293 approves the privatization and restructuring program of Napocor and its three-phase implementation strategy; 99-24 provides for the 1999 organizational realignment/reorganization program of Napocor; Napocor Circular No. 99-19 dated Feb. 17, 1999 provides for the implementing guidelines on Napocor's 1999 organizational realignment/reorganization; Napocor Memorandum Order No. 00-37 dated March 20, 2000 creates the steering committee on corporate reorganization; and NPB Resolution No. 2000-41 issued on March 27, 2000 provides for the realignment of Napocor.
Petitioners claimed that as a result of the issuances, more than 2,000 employees of Napocor have been dismissed or displaced.
Such issuances, according to the petitioners, violated Section 2 (3) of Article 9-B of the 1987 Constitution, which ensures security of tenure of civil service employees. They further alleged that the restructuring of Napocor is null and void since these were issued without legislative authority.
During the pendency of the case, President Gloria Macapagal-Arroyo Arroyo signed RA 9163 into law, prompting the petitioners to file a supplemental petition challenging its constitutionality.
The SC, however, merely noted the supplemental petition and decided to resolve only the issues raised in the original petition.
"We have ruled that a case is moot and academic when there is no more actual controversy between the parties or no useful purpose can be served in passing upon the merits," the court said. (ECV/Sunnex)
