Inilabas ng Pangulo ang naturang desisyon sa pamamagitan ng ipinadalang liham sa Kongreso.
“While I recognize the prerogative of the Honorable Members of Congress and the laudable intent of the bill to further improve and develop access to electricity within the captive market of the expanded franchise area, I am constrained to veto the bill due to the susceptibility of the proposed expansion of the franchise area of Davao Light and Power Company, Inc., to legal and/or to constitutional challenge due to the apparent overlap and possible infringement into the subsisting franchise, permits, and contracts previously granted to North Davao Electric Cooperative Inc,” saad nito.
Sinabi ng Pangulo na mayroong prangkisa ang North Davao Electric Cooperative Inc. sa expanded franchise area na iiral hanggang 2028 at 2033.
“The bill runs counter to the provisions of Secion 27 of Republic Act No. 9136 or the EPIRA mandating that’ all existing franchises shall be allowed to their full term,” giit nito.
Ayon kay Marcos, malalabag ng resulting repeal ng prangkisa ng North Davao Electric Cooperative Inc. sa expanded franchise area ang 1987 Constitution.
“The bill, while on its face, amends the franchise of another entity over the expanded area, is a prohibited collateral attack on North Davao Electric Cooperative Inc. franchise,” saad nito.
Dagdag ng Pangulo, “This is contrary to a jurisprudentially settled doctrine that a franchise cannot be subjected to a ‘collateral attack’.”