Panay Electric Company (PECO) is in a legal battle with the Mandaluyong regional trial court for distributing its seized power assets to mining firm of billionaire Enrique Razon.
The said mining firm is the awardee if Congress approves the new franchise.
PECO was quoted in a Manila Bulletin report saying, “there is no substantial due process when private property is taken by the government from one private person and given to another person for the latter’s benefit.”
PECO is challenging the newly issued franchise of the Razon firm or also known as Republic Act 11212, specifically its Section 10 and 17 saying “to expropriate PECO assets,” arguing that these “violate PECO’s right to due process and Constitutional right to equal protection of the law.”
The PECO petition also aims “to stop other government agencies – including the Department of Energy and the Energy Regulatory Commission from implementing RA 11212 while the validity of the law is being challenged and heard.”
“Sections 10 and 17 of that law authorizes MORE to expropriate PECO assets via eminent domain that affect an individual’s right to private property,” the PECO petition was quoted as saying.
PECO also added that the Court filing shows that “the authority granted to MORE for the taking of PECO’s assets is arbitrary and confiscatory” and “the law authorizes the taking that is not for a public purpose.”’
The power firm also questioned the validity of the newly enacted issued franchise.
“The Constitution itself provides that private property shall not be taken for public use without just compensation,” the firm noted as quoted in a Manila Bulletin report.
PECO also stressed that the provisions of RA 11212 is an attempt to interfere with PECO’s rights.
The transfer of PECO’s assets to the Razon group is scheduled this May.