Full Senate probe on Beneco, NEA ‘standoff’ pushed

Benguet Board declares Rafael persona non grata 

By Kimberlie Quitasol 

SEN. Sherwin Gatchalian has filed a resolution calling for a full-blown inquiry into the management standoff between Benguet Electric Cooperative Inc. (Beneco) and the National Electrification Administration (NEA).
    Gatchalian, chairman of the Senate Energy committee, said while reports showed regular services of the electric cooperatives, which had been interrupted by the forcible takeover by NEA-appointed officials last Oct. 18 to 20, has resumed, there is yet to be a final resolution on the issue between Beneco and NEA.
    He said he found out Beneco was having difficulties in processing bank transactions as some accredited banks do not acknowledge the signature of engineer Melchor S. Licoben as Beneco's general manager.
    "Kailangang maiwasan na magkaroon ng pagkaantala sa operasyon ng electric cooperative na maaaring magresulta sa brownouts sa Baguio City o saan man sa 13 bayan na sineserbisyuhan ng kumpanya (Delay has to be avoided in the operation of electric cooperative that may result in brownouts in Baguio City or anywhere in the 13 municipalities being served by the company)," Gatchalian said in filing Senate Resolution 945.
    The issue stemmed from the disagreement between the NEA and Beneco board of directors on who should be appointed the new GM following retirement of the late Gerry Versoza on April 30, 2020.
    While the Beneco BoD issued three resolutions that named Licoben as the new GM, the NEA board of administrators (BoA) instead recommended lawyer Anna Marie Paz Rafael to the position.
    What ensued saw the assumption of Rafael in the morning of Oct. 18, 2021, with the aid of around 50 heavily armed members of the Philippine National Police, causing alarm among Beneco employees who were fearful for their lives and safety.
    It also led to the closure of its office on Oct. 18 to 19, leaving consumer concerns unattended.
    "It is important to ensure the continuous and reliable electricity service within the franchise area of Beneco amid the ongoing disagreements between the NEA and Beneco on the appointment of its GM. They have to make certain that the appointment of the GM is done in accordance with the current rules and regulations," Gatchalian said.
    Gatchalian took note of the memorandum dated Oct. 24, 2017 issued by NEA on the selection of GMs. Memorandum No. 2017-035 entitled the "Revised Policy on the Selection, Hiring, Termination of Services/Suspension for General Managers of Electric Cooperative (3rd Revision)" provides that the BoD of an EC shall appoint its GM in accordance with guidelines set forth by the NEA.
    On April 21, 2020, the Beneco BoD appointed Licoben as the GM effective May 1, 2020 after the retirement of the late general manager Gerardo Verzosa pursuant to Option No. 2 in the selection of general manager enshrined under the pertinent provisions of NEA Memorandum No. 2017-035.
    Ironically, the NEA BOA entertained an endorsement from the Office of the President that transmitted the letter dated June 30, 2020 of former Presidential Communications Operations Office Assistant Secretary Rafael requesting an endorsement from the said office for her application as Beneco GM even if there was already an appointed person to the said position several months earlier.
    The Beneco BoD rejected the resolutions of the NEA BoA that insisted the appointment of Rafael as general manager and reiterated the appointment of Licoben.
    In La Trinidad, Benguet , the provincial board on Monday (Nov. 8) declared Rafael persona non grata (unwelcome) in Benguet after the recent armed takeover of the power utility serving the province and Baguio City.
    Voting 13 in favor and one abstention, the provincial board issued a resolution for the declaration.
    Vice Gov. Johnny Waguis said Rafael lied when she told the board during the Nov. 3 session that she arrived at the headquarters of the Benguet Electric Cooperative (Beneco) in South Drive around 7 a.m. during the takeover on Oct. 18
    Waguis said video footage with time stamps showed that Rafael was at the compound as early as 5 a.m.
    Licoben, who assumed the leadership of Beneco by succession and appointment by the Beneco Board of Directorsr, was slapped a 90-day preventive suspension by the NEA, along with Beneco’s board president and six directors, who voted to reject Rafael’s appointment due to her alleged ineligibility.
    Lawyer Omar Mayo, legal officer of NEA, designated by the regulator as Beneco “caretaker,” had also been declared persona non grata in Benguet last week.
    Mayo reportedly led the forcible takeover of the Beneco office backed by NEA-deputized policemen.
    During the provincial board session last week, Rafael was asked why she should not be declared persona non grata, to which she replied: “up to you to decide.”
    The board also asked her if she could give way and respect the public clamor, Rafael said: “I just want to work … unless and until my appointment is annulled, I need to work as the general manager.”
    In an interview last week, Board Member Juan Nazaro said they did not initially include Rafael in the persona non grata declaration saying they still had to verify her statement that she was not present during the armed takeover.
    To date Beneco member-consumer-owners are having 24-hour daily vigils at its main headquarters here in South Drive to prevent appointees of the NEA from taking over the power firm.
    At the Senate, Gatchallian said during recent committee hearing it was the prerogative of the board of directors electric cooperatives like Beneco to appoint the general manager.
    Gatchalian scolded newly-installed NEA Administrator Emmanuel Juanesa for the agency's failure to instill stability in leadership of Beneco, one of the country's top-performing electric cooperatives, when it insisted on appointing an unqualified and unrecommended applicant for the position of general manager.
    Gatchalian told NEA officials the regulating agency could interfere with affairs of an electric cooperative if it was declared ailing.
    In the case of Beneco, it was not an ailing cooperative, thus undue interference of NEA was unnecessary as it was one of the top-performing electric cooperatives in the country that could independently select its general manager pursuant to established rules and regulations, enshrined under NEA Memorandum No. 2017-035.
    Sen. Imee Marcos also branded the forcible takeover of the Beneco main headquarters, done under the guise of serving the preventive suspension order of some members of the Beneco board and incumbent general manager — as a show of excessive force since those being served with such an order were unarmed.
    Marcos said there was need for in-depth investigation on the matter to ascertain responsible persons who would be charged for offenses.
    Sen. leila De Lima had also called for an investigation on the matter.
    Earlier, MCOs, local leaders and the 121-strong Philippine rural Electric Cooperatives Association sought intervention of the Senate to instill law and order in Beneco because the present leadership crisis was having a negative impact on performance of duties and responsibilities of Beneco officials and employees who were caught in the crossfire of the feuding parties.
    The 13 board members who declared Mayo and Rafael PNG included Florencio V. Bentrez, Juan M. Nazarro,Robert Namoro, Jim Botiwey, Neptali B. Camsol, Ruben E. Paoad, Roberto K, Canuto, Fernando M. Balaodan Sr., Nestor B. Fongwan Jr.  Jeston S. Balong-angey and Melchor C. Guesey.
    Board Member Bernard Waclin abstained saying he preferred that lawsuits be filed against Mayo and Rafael, who is former assistant secretary of the Presidential Communications Operations Office, if needed.
    Mayo was earlier declared persona non grata by the Baguio City Council during its Oct. 23 session, also after launching its own inquiry into the deputization of police officers to help break into the Beneco building at the city’s South Drive before 3 a.m.
Members of the city council said they did not declare Rafael PNG as she was a Baguio resident.
    Board Member Nazaro, who sponsored the Benguet PNG resolution, said Mayo disrespected customs and traditions of     Benguet’s Ibaloy, Kankaney and Kalanguya residents when he led the violent takeover of the power utility serving Baguio and Benguet.
    The Provincial Board of Benguet also passed a resolution condemning the Oct. 18 raid-like takeover.