Mayor John Dalipe has called on Crown Investment Holdings, Inc. and Desco Inc. to clarify the existence of two versions of the Investment Management Contract (IMC), a discrepancy uncovered during a congressional inquiry led by Majority Leader and Congressman Mannix Dalipe.
In his statement, Mayor Dalipe expressed strong support for the inquiry and urged the Department of Energy to address Zamboanga City’s ongoing energy issues before they escalate into a crisis that could hinder the city’s growth potential.
The revelation of the dual IMC versions adds to the existing challenges faced by Zamcelco, which include a 21 percent systems loss and a staggering P4.6-billion debt. These issues are compounded by insufficient capital expenditures, making it difficult to resolve the financial and operational problems.
The IMC between Crown-Desco and Zamcelco, established in 2018, was initially intended to rescue Zamcelco from financial ruin. However, Mayor Dalipe criticized Crown Investment Holdings and Desco Inc. for their lack of experience and track record in the power industry, accusing them of driving Zamcelco towards bankruptcy through mismanagement.
Mayor Dalipe’s call for transparency and accountability highlights the urgent need for effective solutions to Zamboanga City’s energy problems, ensuring that the city’s potential for growth is not compromised.
