Beneco sets strict rules to stop BOD’s ‘fund misuse’

By Jordan Habbiling

 

BAGUIO CITY -- The Benguet Electric Cooperative Inc. implemented stricter financial policies to prevent board members from incurring personal loans or misusing cooperative resources.

During the regular session of the Baguio City Council Feb. 10, board of directors chairman George Dumawing told city officials Beneco’s corporate social responsibility, previously prone to misuse, was removed from control of the BODs and placed under the Internal Service Department.

He said this reform enforced by the Beneco Task Force aimed to curb “past abuses” which included branding of monoblock chairs with names of directors and excessive allowances.

Dumawing said this structural change would ensure requests for assistance would go through the approval of ISD to prevent the past practice of board members using Beneco resources for personal or political gain.

He cited past instances where Beneco had provided items such as monoblock chairs branded with the names of directors, a practice now abolished.

He added other privileges, such as gasoline allowances, had already been prohibited by the National Electrification Administration.

Councilor Betty Lourdes Tabanda commended this reform -- that Beneco took corrective measures against such practices.

Lawyer Delmar Cariño, Beneco ISD manager, added the electric cooperative had also implemented a good governance policy through Beneco Task Force.

This policy, along with its implementing rules and regulations (IRR), had closed loopholes that previously led to financial mismanagement which included concerns related to disbursements, information and education campaigns (IECs) and allowances.

The discussion stemmed from the request of Councilor Fred Bagbagen for updates on the unliquidated cash advances of former Beneco directors and status of car loans taken by these directors.

In response to this request, Cariño said Beneco failed to submit the requested documents because several issues were still under appeal before the Court of Appeals.

Beneco has a policy on access to records, approved by the National Privacy Commission, which restricts disclosure of personal information under the Data Privacy Act.

Despite invoking these legal constraints, Cariño said NEA filed administrative cases regarding cash advances still under appeal.

He added Beneco issued demand letters to those with balances urging them to settle their accounts or face legal action.

With regard to car loans, he said some former directors already fully settled their dues while four were still making monthly payments.

Bagbagen said given Beneco’s role as public service provider, transparency should take precedence over privacy concerns, especially since unliquidated amounts had reportedly reached millions of pesos.

He added these debts had remained unpaid for years and urged Beneco to set a firm deadline for repayment.

Cariño said they were following NEA’s directive to collect payments but could not release personal data without consent of individuals involved.

He said while the cooperative understood the concerns raised, they had to adhere to data privacy policies.

The city council referred the matter to its committee on public utilities, transportation and traffic legislation for study in aid of legislation.