Manila: The Supreme Court (SC) has ruled that officers and directors of electric cooperatives do not automatically forfeit their positions when they file their certificates of candidacy (COCs). In a decision by the SC’s Third Division, the court nullified Section 2 of National Electrification Administration (NEA) Memorandum No. 2012-2016, which mandated that officers of electric cooperatives be deemed resigned upon the mere filing of their COCs.

According to Philippines News Agency, the SC clarified that electric cooperative officers remain private individuals despite the public nature of their functions. The court stated, “While the officers are elected by the members, they cannot be considered holding public appointive positions under the Omnibus Election Code.” The tribunal further noted that the only private individuals deemed resigned upon the filing of their COCs are mass media columnists, commentators, announcers, reporters, and on-air personalities if required by their employer.

The ruling stemmed from a case filed by Oscar Borja and Venancio Regulado, then members of the Board of Directors of Camarines Sur Electric Cooperative II. Borja ran for mayor of Bombom, Camarines Sur, while Regulado sought a seat in the Canaman municipal council. They challenged the validity of Section 2 of the NEA Memorandum before the Regional Trial Court (RTC), which ruled in their favor. The Court of Appeals later affirmed the RTC’s decision.

In affirming these decisions, the SC emphasized that under the Omnibus Election Code, automatic resignation upon filing of COCs applies only to persons holding public appointive positions, including active members of the Armed Forces of the Philippines and officers and members of government-owned or controlled corporations (GOCCs). The SC stated, “Electric cooperatives are private entities engaged in public service as electric distribution utilities. While they are regulated by the NEA, they are not government agencies and cannot be classified as GOCCs, as they are owned and controlled by their member-consumers, not the government.”