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Bacolod City, Philippines Monday, April 10, 2006
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NEA execs urged to release
CENECO audit report soon

An official of the Central Negros Electric Cooperative Consumers Coalition and Action Group has urged the National Electrification Administration to expedite the release of its audit report on CENECO in the wake of the continuing controversies hounding the electric cooperative.

Romeo Lavilla said their group is watching out for the results of the management, financial and technical audit on CENECO as they believe it will reveal the violations committed by the board of directors in various contracts and purchases, particularly in the construction of a 30 MVA substation in Mabini St., Bacolod City and the upgrading of the 20 MVA to 30 MVA subtstation in Brgy. Alijis, also in Bacolod.

A four-man audit team from NEA conducted a month-long audit on CENECO from February to March.

Lavilla said that, along with their group, the Freedom from Debt Coalition-Negros and the CENECO Union of Rational Employees, have also sought intervention from the NEA on what they believe are questionable acts of the board of directors headed by president Eddie Guillem.

He pointed out that there is an open defiance on the part of the board of directors when it approved and proceeded to award the contract for the Alijis substation upgrading to Power Star Inc. for P69 million, which was later amended to P43 million, even though the NEA disapproved the award.

Lavilla said that their group has obtained documents showing that the board approved payments to Power Star Inc., but the CENECO accountant and financial manager refused to sign the vouchers. Guillem had earlier denied the claim of various groups about the allegedly questionable contract with Power Star, saying the criticism is just a smear campaign against his leadership.*NLG

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