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NEA sacks NOCECO officials

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• GILBERT P. BAYORAN

The National Electrification Administration (NEA) ordered the dismissal and forfeiture of benefits of two former general managers and 12 members of the board of directors of the Negros Occidental Electric Cooperative (NOCECO), due to improper fund disbursements.

Based on the results of the audit report of NEA Electric Cooperative (EC) Audit Department, National Electrification Administration head Antonio Mariano Almeda ordered sacked from their positions the NOCECO board of directors Richard Benedicto, Raymundo Tongson Jr., Reynaldo Bedaure Jr., Eduardo Benjamin Alonso, Rolito Espinosa, John Peter Millan, Elbert Magbato, Rey Ronald Cabalde, Edmund Arceo, Ma. Rama Espinosa, Allan Paul Mirasol, as well as Jose Emeric Jabagat, who already died.

A statement from NEA said that NOCECO former general managers Jonas Discaya and Engr. Ray Bustamante were also shown to have been involved in the improper disbursements, in an audit report covering the period of August 1, 2019 to April 30, 2023.

NOCECO’s board of directors were found to have unduly granted themselves at least P65,534,504.20, representing numerous allowances and benefits, Almeda said.

He also said that Discaya was found to have been unduly granted and received at least P20,128,907.28 as a general manager of NOCECO, representing improper increases in his salary and per diems, excess gratuity pay, travel expenses, and other benefits.

On the other hand, Engr. Bustamante was also found to have been unduly granted and received at least P2,127,111, representing undue increases in his salary and per diems as a supposed general manager of NOCECO, as well as other unwarranted benefits, Almeda further disclosed.

In an audit report, Almeda said that the NEA-ECAD found that improper disbursements were made by the NOCECO management and board of directors, being above and beyond the allowable thresholds under the relevant NEA rules and regulations, made without NEA’s explicit approval, and despite NOCECO’s attention being called in previous audit findings, for being made with the deliberate failure to submit appropriate board resolutions required by NEA to evaluate the fund disbursements.

In sum, the concerned Directors, together with former GM Discaya, admitted to being aware of the NEA’s regulatory jurisdiction over electric cooperatives (ECs) registered with the Cooperative Development Authority (such as NOCECO). Nevertheless, they also admit the fact that they chose to disregard the same, and instead, continued to unilaterally and unduly grant themselves numerous monetary benefits, he added.

It should be noted that NEA, under  RA No. 10531, is granted regulatory jurisdiction over all electric cooperatives, regardless of registration, and such authority is confirmed by the Supreme Court through jurisprudence, Almeda stressed.

He also noted that the NOCECO’s Board supposedly “appointed” Engr. Bustamante as the supposed GM of the cooperative, as GM Discaya would eventually retire, which was in blatant disregard of the NEA rules and regulations.

Bustamante had been earlier placed under a 90-day preventive suspension by NEA for allegedly illegally occupying the position of NOCECO general manager. He was replaced by Domingo Santiago Jr., in acting capacity as EC manager.

While he complied with at least some of the NEA’s guidelines, Almeda said Bustamante would still join NOCECO’s Board in disregarding the rules which pertained to salaries, incentives, and monetary benefits.

Aside from removal from NOCECO and forfeiture of benefits, the NEA Administrative Committee (ADCOM) also disqualified concerned NOCECO officials from reinstatement or reemployment in any electric cooperative, or from running as a candidate for a director position in any EC, he also said.

Other NOCECO officers were also meted the penalty of suspension, for their participation in the subject disbursements, Almeda stressed.

He also referred the NEA decision to the Department of Justice for possible prosecution of criminal liabilities.

NOCECO serves the 4th, 5th and 6th districts of Negros Occidental.*

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