121
electric coops, Partylists, Baguio council hit NEA
By
Jordan G. Habbiling and DC and AD
BAGUIO
CITY – The Lower House is set to probe the National Electrification
Administration on June 2 for its alleged “illegal” methods and intrusion on
selection of general managers nationwide after all electric cooperatives in the
country assailed and opposed its endorsement of a Palace Assistant Secretary to
assume as general manager of the Benguet Electric Cooperative here.
Lawyer
Delmar Carino, head of Beneco’s legal department bared this saying the NEA’s board
of administrators asked the government agency’s legal department Thursday for
advice on its next move after four Partylists associated with the country’s
electric cooperatives urged Congress to investigate the controversy surrounding
the position of general manager of Beneco.
The
Baguio City Council also called on the NEA Monday to adhere and follow its own
policy in selection of general managers of electric cooperatives.
The
NEA has a standing rule stipulating that all GMs (or those applying for GM) of
electric cooperatives must be an electrical engineer, worked or managed an EC
for at least five years among others.
The
Baguio City council made the stand in a forum Monday regarding issues raised by
Beneco board members against NEA’s endorsement favoring lawyer Anna Marie
Rafael Banaag, Assistant Secretary of the Presidential Communication Operations
Office as lone candidate for Beneco GM.
The
Beneco board has issued several resolutions recommending Melchor Licoben as
general manager and expressing their opposition against NEA’s single candidate
endorsement.
Licoben,
an electrical engineer is now Beneco incumbent officer in charge GM.
The
city legislators said there were lapses on the part of NEA, citing provisions
of memorandum No. 2017-35 that were not complied with in endorsing Banaag as
GM.
The
Baguio City local government earlier endorsed Licoben as GM.
The
memorandum was issued by NEA in October 2017, spelling out the recruitment
policy for general managers of electric cooperatives in the country.
Nollie
Alamillo, chairperson of NEA’s selection committee, admitted that candidate (Banaag)
failed to submit documents indicating her five-year work experience in
effective management of an electric utility-related business enterprise as
required under d.6 of the memorandum.
The
councilors questioned the decision of the NEA selection committee to allow the
said candidate to go through the selection process despite the latter’s absence
of proof of qualifications.
According
to Alamillo, both Licoben and Banaag passed qualifying examinations and initial
interview, underwent background investigation, and advanced to final interview
conducted by the NEA BOA.
The
NEA memorandum stated “the list of applicants who passed the NEA Board final
interview, with necessary information and results of the background investigation,
shall then be transmitted to the Electric Cooperative (EC) Board for perusal
and selection.”
According
to Beneco Board president Esteban Somngi, only the name of Rafael-Banaag was
forwarded by NEA to the Beneco board.
Cariño
said Licoben should have also been endorsed by the NEA BOA for Beneco’s board of
directors’ selection for the GM position as he also passed the final
interview.
Licoben
scored 82.75 percent while Rafael-Banaag obtained a score of 94 percent in the
final interview, according to NEA board resolution No. 2021-47.
Cariño
said the decision of the NEA BOA to endorse only one candidate based on results
of the final interview violated NEA memorandum no. 2017-35.
“Nowhere
in the NEA memorandum does it state that the applicant with the highest score
in the final interview should be the only candidate to be endorsed by NEA to
the electric cooperative,” Cariño said.
On
May 19, 2021, the Beneco board in a 6-4 vote rejected the NEA endorsement of
Rafael-Banaag and reiterated its previous resolution recommending Licoben for
the GM position, saying thet earlier appointed him as GM.
Lawyer
May Flor Abuedo, NEA’s corporate secretary, disclosed Monday the NEA BOA will
hold a meeting on May 27, to deliberate on the Beneco board’s decision to
reject the NEA endorsement.
The
city council also urged the NEA to provide the legislative body and Beneco all
documents containing results of examinations and background investigation and
interviews of applicants, conducted by the selection committee and NEA BOA in
aid of legislation.
Four
Partylists associated with the country’s electric cooperatives urged Congress
to investigate the controversy surrounding the position of general manager of Beneco.
Rep.
Presley de Jesus (Philreca), Rep. Adriano Ebcas (Ako Padayon Pilipino), Rep.
Sergio Dagooc (APEC) and Rep. Godofredo Guya (Recoboda) filed on May 19 a
resolution urging the House committee on energy to conduct an inquiry in
aid of legislation on the “overreach of the NEA on the screening and selection
of general managers of electric cooperatives.”
The
resolution stemmed from the nationwide protest of the country’s 121 electric
cooperatives which staged a nationwide “Black Friday Protest” last May 14 that
condemned the manner the NEA BOA processed applicants for general manager of
Beneco.
The
Philippine Rural Electric Cooperatives Association (Philreca), the country’s
mother organization of all electric cooperatives also lambasted the NEA resolution
as illegal for having violated NEA memorandum No. 2017-035, the rules governing
selection of GMs.
Philreca
cited the protest of Beneco employees and member consumers who said there is
nothing in rules that allow the BOA to endorse only the applicant with the
highest score in the final interview.
More
than 14 allied organizations of the electric cooperatives have also filed
separate resolutions assailing the BOA resolution, saying it was an attempt to
clip the powers of the electric cooperatives.
The
call for a congressional inquiry came after the Beneco BOD rejected the BOA resolution in a special
meeting last May 19.
In
their resolution, the four partylists, known as the “Power Bloc” in the House
of Representatives, said the act of the BOA amounted to usurpation of the
powers of EC directors to appoint their own GM.
Lawyer
Janeene Depay-Colingan, Philreca executive director said Beneco followed the
right process from the very start. “Let it be known: Beneco management and
employees, Beneco MCOs, and our One EC-MCO Movement are not meddling with the
mandate of NEA. We are calling out the decision that did not go through the
proper procedure to be rectified. We thank Beneco for standing up for what is
right,” said Colingan.
Presley
C. De Jesus, Philreca president, said “the reason the entire 121 electric
cooperatives are up in arms is because the BOA of the NEA violated and breached
the very clear processes in hiring and appointing general managers that they
themselves approved.”
“The
NEA BOA should not intervene in the affairs and mandate of the electric
cooperatives’ board of directors. The BOA committed grave abuse of discretion
because the NEA BOA has no power – neither by virtue of Republic Act 10531 nor
by any existing regulatory measures – to choose which of the qualified
applicants they should endorse to the EC’s BOD based on any arbitrary
preference of the NEA BOA,” De Jesus said.
In
joint letter by Philreca and Nagmec (National Association of General Managers
of Electric Cooperatives), also urged the NEA BOA to “rectify its error and set
aside RB Resolution No. 2021-47 to spare itself from a deluge of serious legal
actions and unprecedented rant not just from Beneco’s member-consumer-owners
but from the entire electric cooperatives sector who have the same sentiment on
this issue.”
The
Beneco board, led by its president Somngi, earlier assailed the BOA endorsement
of Banaag as unfair and utterly without legal basis.
The
board also reiterated the three resolutions it passed in 2020 that named and
appointed licoben as the Beneco GM.
Aside
from Somngi, the other directors are Mike Maspil, Rocky Aliping, James Aclopen,
Peter Busaing, Luke Gomeyac, (all representing Baguio City), Robert Valentin,
Enrique Moresto, Fr. Jonathan Obar, Josephine Tuling and Jefferd Acop (all
representing Benguet).
“The
basis of the BOA to endorse Rafael is her higher score of 94% in the final
interview compared to Licoben who garnered 82.75%. But nothing in NEA
Memorandum No. 2017-35 states that only the candidate with the highest score in
the interview must be endorsed to the BOD. Both of them were qualified. Licoben
did not fail the interview. Therefore, both of them must be endorsed to the BOD
for selection,” they said.
NEA
Memorandum No. 2017-035 governs the rules of recruitment and selection for the
GMs of all electric cooperatives in the country.
The
Beneco resolution rejecting the lone endorsement and the reasons for the
decision was forwarded to the BOA for action.
Under
NEA Memorandum No. 2017-035, the BOA has the power to review the board’s
decision to reject and should it find the reasons unreasonable, it can endorse
other pre-qualified applicants.
Concerned
member consumer owners and Beneco employees, led by the BELU and the Beneco Supervisors
Association (BSA) had been holding vigils after office hours since two weeks
ago to protest the BOA’s decision to endorse only one applicant.
“How
can the BOA endorse an applicant who is not technically competent to lead an
electric cooperative which is a highly technical industry?” the BELU and BSA
said.
The
provincial board also recently approved a resolution requesting the NEA to
confirm Resolution No. 2020-90 of the Beneco BOD that appointed as new general
manager of the electric cooperative vice former general manager Gerardo P.
Verzosa who retired from the service effective April 30, 2020.
The
board stipulated that all the municipal governments in the province strongly
supported Licoben’s appointment as the new Beneco general manager through the
passage of separate resolutions by each of the municipal councils of the 13
municipalities.
The
board added that the League of Municipalities of the Philippines (LMP) Benguet
chapter and the Vice Mayor’s League of the Philippines (VMLP) Benguet chapter
unanimously passed separate resolutions also strongly supporting Licoben’s
appointment and recognized his technical expertise, knowledge of the
intricacies of the power industry and experience in managing the affairs of the
power distribution as his advantage to sustain the gains of the electric
cooperative being one of the top performing electric cooperatives in the
country.