The Supreme Court of the Philippines has ruled that a National Electrification Administration (NEA) memorandum requiring electric cooperative officers to resign upon filing certificates of candidacy for local or national elections is invalid. The Court determined that the memorandum violates the rights of cooperative officers who are considered private individuals rather than public appointees.
The Supreme Court of the Philippines has ruled that a National Electrification Administration (NEA) memorandum requiring electric cooperative officers to resign upon filing certificates of candidacy for local or national elections is invalid. The decision stems from a legal challenge brought by Oscar Borja and Venancio Regulado, former members of the Board of Directors of Camarines Sur Electric Cooperative II.
Borja sought the mayoralty of Bombon, Camarines Sur, while Regulado aimed for a municipal council seat in Canaman. They contested the validity of NEA Memorandum No. 2012-2016 before the Regional Trial Court (RTC), which ruled in their favor. This decision was subsequently upheld by both the Court of Appeals and the Supreme Court. In a ruling penned by Associate Justice Japar Dimaampao, the Supreme Court clarified that the Omnibus Election Code's provision for automatic resignation upon filing a COC applies solely to individuals holding public appointive positions. This includes government employees, active military personnel, and officials of government-owned or controlled corporations (GOCCs). The Court emphasized that electric cooperatives, while regulated by the NEA, are private entities that provide public service as electric distribution utilities. They are owned and controlled by their member-consumers, not the state, differentiating them from government agencies or GOCCs. Consequently, officers and directors of electric cooperatives retain their status as private individuals, even within a public service-oriented industry. Their positions are not classified as public appointive positions, rendering them exempt from the automatic resignation rules stipulated under the Omnibus Election Code. Additionally, the Court noted that the NEA Charter does not prohibit candidates from serving as cooperative officers. It only disqualifies those who have already won elections and assumed public office, ensuring that elected officials do not concurrently hold leadership roles in electric cooperatives
SUPREME COURT ELECTRIC COOPERATIVES NEA MEMORANDUM RESIGNATION ELECTION CODE
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