City legal office favors Dahino’s deferment of Moresco-1 agreement

By LITO RULONA,
Correspondent

The City Legal Office (CLO) has favored the decision of City Councilor Edna Dahino to defer the approval of the Memorandum of Agreement (MOA) entered into between the Misamis Oriental Rural Electric Service Cooperative 1 (Moresco-1) and the city government for its electrification project for relocation sites in Sitio Calaanan, Barangay Canitoan for being “disadvantageous” for the city.

Dahino, who chairs the Committee on Finance, said she recommended the deferment after finding loopholes in the passing of the ordinance when it was deliberated in the city council plenary.

In a three-page endorsement issued by CLO Assistant City Legal Officer Atty. Reymond Villablanca said based on the Energy Resolution No. 03, series of 2012, Moresco-1 should refund to the City Government necessary amount advances by the latter to cover the expenditures of the electrification project of Fil-Chi upper and Lower Phase 3, Relocation Site, Calaanan, amounting to P1.3 Million.

“Hence, it is only proper to renegotiate the terms of the Memorandum of Agreement (MOA) to seeking therein to reflect a stipulation requiring Moresco-1 to comply with the foregoing ERC Resolution,” he said.

Villablanca said it has been brought to their attention that the Committee is not amenable that the City Government shall shoulder the cost for the installation of lines and facilities which Moresco-1 treats as Contribution in Aid for Construction (CIAC).

“It has also reached to this office that Moresco-1 claimed that its current budget did not include the cost for the said electrification project. On the other hand, Moresco-1 is of the view that it has no obligation to refund the city government for the cost it will advance for the said electrification project pursuant to the provisions.

Considering the foregoing conflict it has clearly become necessary to further review the MOA and check the pertinent laws and rules on the matter,” he said.

Dahino for her part, said since Moresco-1 would benefit from the customers electrical bill after the realization of the project.