BACOLOD CITY, Negros Occidental, Philippines – Joint venture proponent MORE Power Corporation has started its due diligence audit on local power distributor Central Negros Electric Cooperative as part of the process that would lead to the acceptance or rejection of its unsolicited offer.
Lawyer Arnel Lapore, acting general manager of CENECO told DNX a team of MORE Power is now here conducting their audit of the firm’s operations after which CENECO will send its own team to Iloilo City to do the same on MORE Power that services Iloilo as the private power distribution utility.
As this developed, three consumers groups here are noe split on the proposal – two on polar opposites and one taking the middle ground.
Former Bacolod Councilor Wilson “Jun” Gamboa Jr told DNX he is not only against the joint venture but is also pushing for the immediate registrstion of CENECO with the Cooperative Development Authority (CDA).
He also demanded for the resignation of Lapore whom he accused of being a part of the “whole hullabaloo” and “charade.”
Gamboa, convenor of Amlig Kuryente, said the process of entering into a joint venture with MORE Power will be “railroaded,” similar to that of Primewater Construction Corporation that has entered into a similar venture with water utility Bacolod City Water District.
Labor advocate Wennie Sancho, on the other hand, convenor of Power Watch Negros Advocate said they are backing the joint venture with MORE Power as this woukd be a “life-saving” measure for a “bleeding” cooperative that is cash-strapped and cannot provide efficient services.
The third group, UCARE, is taking the middle road for now with its convenor, Rodolfo Song calling for a series of consultations and an information-education campaign on the proposal of the Razon-owned firm.
A due diligence is defined conceptually as a “check (that) involves careful investigation of the economic, legal, fiscal and financial circumstances of a business or individual. This covers aspects such as sales figures, shareholder structure and possible links with forms of economic crime such as corruption and tax evasion,” the website Lexis Nexis said.
In practical terms, it is a step taken by a business before proceeding with a sale, a purchase, or entering into an agreement.