Aboitiz Power Corp. told the stock exchange that its unit in Pagbilao, Quezon province was able to obtain a temporary restraining order (TRO) against a cease and desist order served by the town’s local government on its operations.

In a disclosure to the stock exchange, AboitizPower said the town officials’ order came during the course of subsidiary Pagbilao Energy Corp.’s (PEC) application for a business permit for calendar year 2018 from the municipality of Pagbilao.

It said Pagbilao required PEC to execute a memorandum of agreement (MoA) implementing its corporate social responsibility programs for an amount above the company’s approved budget.

AboitizPower said the municipality refused to issue the business permit without the executed memorandum, and instead issued the cease and desist order (CDO) against the operations of the company’s power plant in Pagbilao.

“PEC therefore filed the application for Injunction and obtained the TRO to prevent the municipality from implementing what PEC believes to be an unwarranted cease and desist order,” it said.

The TRO was issued by the Regional Trial Court of Lucena City, Branch 57 on Feb. 28, 2018, a day after the municipality’s order was served.

PEC maintains that the execution of the MoA is not part of the published and legal requirements for the issuance by the municipality of a local business permit, AboitizPower said.

The listed company said the PEC plant had received all the necessary endorsements required from the relevant local government units, namely: the Quezon provincial government, the municipality of Pagbilao, and the host barangay of Ibabang Polo. — Victor V. Saulon

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