Former Bayan Muna lawmaker Carlos Isagani Zarate has sounded the alarm over what he described as a rushed and questionable attempt to place South Cotabato II Electric Cooperative Inc. (SOCOTECO II) under greater private corporate control, warning that the proposed joint venture could have long-term consequences for electricity consumers and member-consumer-owners.
Zarate, Bayan Muna’s national executive vice president, issued the warning as the House of Representatives prepares to investigate the proposed Conditional Joint Venture Agreement between SOCOTECO II and IGNITE Power and Energy Corp.
House Resolution No. 1401, filed by Rep. Shirlyn Bañas-Nograles, seeks a congressional inquiry into the agreement involving IGNITE, a consortium that includes Primelectric Holdings Inc. of the Razon group and MP Holdings associated with the Pacquiao family.
“Bayan Muna is totally against the takeover of electric cooperatives by power oligarchs,” Zarate said, describing the SOCOTECO II controversy as a case of what he called “disaster capitalism.”
He alleged that the cooperative’s reported financial and operational problems were being used to justify a corporate takeover while potentially diminishing the role of SOCOTECO II’s member-consumer-owners, or MCOs.
Zarate also questioned the timing of the plebiscite scheduled over four weekends in September 2026, saying the voting should not proceed while legal and transparency issues surrounding the joint venture remain unresolved.
Concerns over the agreement have reportedly been raised by representatives of the academe, local businesses, civil society groups and the Social Action Center of the Diocese of Marbel.
“This rushed plebiscite, set against a backdrop of incomplete information and legitimate fears over the agreement’s fine print, is anti-democratic,” Zarate said.
He argued that consumers must first be given full access to the terms of the proposed partnership, particularly provisions that could affect electricity rates, management control and the future ownership and operation of the cooperative.
Zarate urged the House Committee on Energy to conduct what he described as an immediate, impartial and comprehensive investigation, saying lawmakers should look beyond the technical provisions of the deal and examine the broader implications of allowing private conglomerates to take a major role in electric cooperatives.
Electric cooperatives, he stressed, were established primarily to deliver affordable and reliable electricity to communities rather than maximize corporate profits.
Bayan Muna is also calling for the deferment of the scheduled plebiscite until all allegations of irregularities and transparency concerns are addressed and the complete agreement is made accessible to SOCOTECO II members.
“The assets of SOCOTECO II belong to the people of South Cotabato, Sarangani and General Santos City,” Zarate said.
He added that any decision involving the cooperative must ultimately protect the interests and rights of its member-consumer-owners and ensure that they are able to make a fully informed decision on the proposed joint venture.