Full Senate probe on Beneco, NEA ‘standoff’ pushed

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 reportedly 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.
    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.