COA asked to audit P240 M loss of power coop the past 3 years

By DEXTER A. SEE

LA TRINIDAD, Benguet – Cooperative advocates here have asked the Commission on Audit to conduct a comprehensive audit on the reported R240 million losses incurred by the Benguet Electric Coop. the past three years.

In Resolution 14, series of 2007, the Regional Cooperative Development Council stated conduct of the audit was sought by some consumers to ensure transparency in the operation of the power utility company.

The group said its annual income statement showed the power cooperative incurred losses of R67.01 million in 2004, R78.8 million in 2005, and R96.4 million in 2006

RCDC said Beneco incurred losses because it reportedly entered into an agreement with Mirant Philippines which has a plant in Sual, Pangasinan.

But Gerardo P. Verzosa, Beneco general manager, said some people in RCDC wanted to create a public impression that the Beneco management was inefficient.

He said people criticizing power firm’s operation were the same people pushing for the conversion of Beneco into a stock cooperative but their attempts failed.

Verzosa asked stock cooperative advocates if they were sincere in their cause since they were singling out Beneco.

“They should look into other cooperatives who are incurring huge losses due to mismanagement,” he said.

Beneco had admitted it incurred losses the past years, but said this couldn’t be attributed to mismanagement.

The RCDC said collection efficiency of Beneco was now at an average of 99.36 percent, and its systems loss was pegged at an average of 12.71 percent.

Verzosa said management had not been remiss in its obligations to give effective, efficient and reliable power service to its over 100,000 member-consumers.

A proof that Beneco had been effective and efficient in complying with the rural electrification program was that only three barangays out of the 140 barangays in Benguet were left un-energized as of this year, he said.

Versosa said almost 90 percent of the rates charged to consumers in Baguio City and Benguet represented cost of power and that Beneco had been working with a very tight budget the past years.