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Bacolod City, Philippines Wednesday, December 14, 2005
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Make VRESCO officials, workers
in audit accountable, NEA asked

The Victorias Power Consumers for Reforms Inc. has asked the National Electrification Administration to make accountable the officials and employees of V-M-C Rural Electric Service Cooperative Inc. who, they claimed, committed "abominable acts" as noted in the latest NEA audit report on the cooperation.

VIPCOR, headed by Abelardo Gustilo as acting president, wrote NEA Administrator Editha Bueno on this yesterday in a letter signed by him, secretary Rufina Ticar, treasurer Rogelio Bernaje, directors Lope Orocio, Clarita Acosta, Ireneo Villa and Eduardo Duarte, and advisers Alejandro Tupas and Elinore Cabanilla.

The VIPCOR officers said they found the adverse findings "distressingly alarming and shockingly disgusting."

The audit report, covering July 1, 2002 to April 30, 2005, stated that the management had "maliciously padded" the kwh consumptions of selected consumers from two to five kwhs, or an average of two days consumption per consumer, for the last quarter of 2004 "in an attempt to attain Category A+ status."

It also noted misrepresentations such as paddings, reclassification of accounts, writing off of power bills were not allowed that the management, particularly the finance manager, internal auditor and other concerned officials, are required to justify the actions and sanctions to be imposed on them.

"The deception was all too nauseating, to say the least," the VIPCOR officers claimed.

They added that they were urgently seeking support and intervention of the agency.

The audit report also asked both the VRESCO Board and management to explain why there are delays in the arrival of the 10 MVA power transformer and 5 MVA accessories despite payments of all the cooperative's obligations as specified in the contract signed on April 5.

A total of P9 million had been paid as of June 30 this year, and the balance of P23 million will be paid in 36 months, it said.

The VIPCOR also commended the NEA Audit Team for the audit and said they only recently received a copy of the report and learned about the Team's findings.*NLG

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