Batangas mayor orders closure of electric coop

Batangas, Philippines – Lipa City Mayor Maynard Sabili ordered the closure of Batangas II Electric Cooperative Inc. (Batelec 2) for allegedly failing to secure a business permit and illegally collecting fees from its members.

The city government issued an order of desistance/closure against Batelec, one of the country’s largest electric cooperative, on Dec. 12.

It was also discovered that Batelec has no mayor’s permit since 30 years ago and has been charging contributions from its consumers for its capital expenditures without any basis or proof that they are shareholders.

“Batelec, which they claimed a legitimate cooperative, is not duly registered with the Cooperative Development Authority but continuously receiving and enjoying the benefits of a bona fide cooperative such as exemption in local taxes, securities, court fees and other priveleges” Sabili said.

He said the practice is in violation of Section 124 of the Cooperative Code of the Philippines which states- “the use of word cooperative by any person or organizations, domestic or foreign, unless duly registered as a cooperative” is prohibited.