PRESS RELEASE GENERAL SANTOS CITY CHAMBER OF COMMERCE AND INDUSTRY, INC. PRESS CONFERENCE April 26, 2013, 11:00am Gensan Sports Center, General Santos City We are calling this press conference with the objective of making known our official stand on the power crisis based on our observations after working with SOCOTECO II for the past 4 months in our attempt to understand and help SOCOTECO II come up with solutions to the power outages. For the past years, the Gensan Chamber of Commerce has taken a constructive approach and has tried to help SOCOTECO II to find solutions to the recurring power crisis. Despite the general perception of incompetence on the part of SOCOTECO II’s top management, the Gensan Chamber chose not to condemn and further compound the problem but to help look for solutions to the problem. In 2010, at the urging of the Gensan Chamber of Commerce, the Board of Directors of SOCOTECO II approved the purchase a 20 MW imbedded diesel-fed power generator to prevent or minimize future power outages. For the past four months, officers of the Gensan Chamber worked closely with SOCOTECO II GM Rodolfo Ocat and its Board of Directors in order to understand the real situation and help SOCOTECO II solve the power outages that have caused huge losses to our businesses and industries. Unfortunately, the good faith and sincere efforts of the Gensan Chamber to help were not reciprocated by good faith and sincere efforts on the part of the top management of SOCOTECO II. What the Gensan Chamber officers observed during the past four months have compelled us to make the following stand: THE GENSAN CHAMBER OF COMMERCE HAS LOST ITS TRUST AND CONFIDENCE ON, AND WITHDRAWS ITS SUPPORT FOR, SOCOTECO 2 GM RODOLFO OCAT AND ITS BOARD OF DIRECTORS. We are withdrawing our support to SOCOTECO 2 GM Rodolfo Ocat and its Board of Directors but we will continue to support our fellow businessmen, most especially the members of the Chamber of Commerce and Industry and the constituents in the franchise area of SOCOTECO II for long-term stability of power supply, and transparency in negotiating all the upcoming energy sources of SOCOTECO II. Our reasons for the loss of our trust and confidence, and withdrawal of our support are as follows 1. In 2010, the Board of Directors of SOCOTECO II approved the acquisition of a diesel-fed embedded power supply for 20MW. Until this time, such resolution has never been repealed, and yet the Board of Directors and GM Rodolfo Ocat did not implement this Board Resolution. Such attitude is a manifestation of an ulterior motive of the present top management to seize whatever opportunity this power crisis will benefit them. 2. The present Board through its President Elenito Senit has signed a Power Supply Agreement with Peak Power Corporation on March 20, 2013. Such corporation was only registered with Securities and Exchange Commission on February 18, 2013. And if the Agreement is approved, Peak Power Corporation will supply SOCOTECO II with 20.9MW diesel-fed power starting sometime middle of 2014 for a term of 15 years. The contract has definitive cost already for SOCOTECO II. However, the Seven Annexes to the Agreement were all blank and these are important determinants to the contract cost that Peak Power will charge to SOCOTECO II and this will eventually be passed on to consumer-members of the cooperative. We find that this 8 Billion Peso Agreement is highly irregular and does not provide any basis for the charges, not to mention the following circumstances: a. There was total lack of transparency on the part of SOCOTECO II top management. The Agreement was kept from our scrutiny as stakeholders. This has never been on the table since the November and December power fora and during the recent media briefing of the chamber to the media on March 15, 2013. In fact, President Raymund Salangsang asked GM Ocat about any incoming power supply project and firm offer and GM Ocat responded in our presence that there was none. The said Agreement was signed 2 days after GM Ocat gave us that answer. b. The Agreement was signed hurriedly, and without considering other alternatives available in the market and those being proposed by the National Government. c. The contract negotiation was concealed amidst on-going power outages and timed in the middle of the mid-term election. d. The delay in the approval of the previous Sarangani Energy Corporation’s Power Supply Agreement is being used by no less than the Board President of SOCTECO II to discourage further oppositions, questions and clarifications in Peak Power Supply Agreement. e. During the stakeholder consultation on April 20, 2013, while our President Raymund Salangsang, who was seeking clarification and raising valid concerns through a series of questions, was disrespected by the loud applauses of the other participants, majority of whom apparently favor the PSA. It was not a real consultation but an affront and insult to the Chamber President. 3. While the Gensan Chamber of Commerce wants to be part of the solution, the top management of SOCOTECO II is found to be a part of the problem and lacks focus in looking for solutions to the on-going power outages as manifested in the following circumstances: a. “Snail”speed implementation of the Interruptible Load Program where 3 hours of power outage supposedly will be eliminated. b. Failure or refusal to immediately negotiate for the available power supply in the area as pointed out by government officials and the private sectors. The Gensan Chamber still needs to prod them, lead them and endorse prospective suppliers to them. We even received comments from them that we will be the one to call the possible supplier as they do not have their phone number. Is this not their job? c. Allowing a multinational company to connect starting last year to the Distribution Utility grid despite the fact that their usual supply will be directly sourced-out from NPC. This created more power outages not to mention this being a breach in their contractual obligation to supply their own existing consumer-members. d. Cannot arrest the 13.61% systems loss. All the aforementioned have caused us to lose our trust and confidence in the top management of SOCOTECO II. As group of major consumers of the cooperative, we strongly demand the following reforms and actions: 1. That GM R. Ocat be restrained from participating in any decision-making of the Board and from supplying information to the Board on major projects of the Cooperative. This is proper as he is already retiring from service. 2. To forthwith approve the immediate retirement of GM Ocat. 3. To immediately recall the onerous Power Supply Agreement with Peak Power Corporation that was signed in “hush-hush” by their Board President Elenito Senit and to entertain and properly evaluate other alternative proposals in order to come up with the most beneficial terms and conditions for consumer- members; or otherwise, to make the entire membership of the board answerable for this onerous agreement. 4. To allow the participation of the Gensan and Sarangani Chambers of Commerce in the deliberations of the Board of Directors of SOCOTECO II regarding major projects for transparency and protection of their members who are also members of the SOCOTECO II and are severely affected by its decisions. 5. To actively pursue other sources of available power supply as suggested to SOCOTECO II by the National and Local governments and the private sectors. 6. To allow full transparency and never to be selective of invitees to any of their forums, consultations or hearings. 7. To bring down the current system’s loss of around 13.61% to 9%. 8. To explain to the public their short-sightedness and failure to prevent the present power crisis. 9. To assume responsibility for the present power situation and move forward with vision and passion to serve the welfare of the general membership of the cooperative. 10. To always honour their contractual obligation to the member-consumer of the cooperative and always tell the full truth and not a selective truth. 11. To increase the number of Board representation of General Santos City from 3 to 7 seats. We remain steadfast in our commitment to our chamber members and the community where we exist to create a competitive and productive business environment conducive for business growth and socio-cultural-economic development. We stand united, strong and focussed in our resolve to protect the interest of the majority and improve the quality of life of our people. In the conduct of this commitment, we will ensure that we will be guided by what is ethical, fair and right. We solicit the understanding of our media friends to be with us also in this commitment. As unanimously approved by the Board of Directors of GSC Chamber of Commerce and industry, Inc.