The National Electrification Administration has called the attention of Jose Alan Leonor, president of the V-M-C Rural Electric Service Cooperative Inc., to the reply of the VRESCO board of directors and management to the findings of the NEA Comprehensive Audit covering July 2002 to April 2005.

The DAILY STAR yesterday obtained a copy of NEA's letter to the VRESCO board dated Jan. 23, 2006 sent along with audit team's evaluation report.

Leonor, son of 1st District Board Member Fernando Leonor, could not be reached for comment as of press time.

In the letter, Director Veronica Cruz of the NEA Electric Cooperatives Audit Department, mentioned items in the audit findings/observations that the management failed to explain or justify.

These include the writing off of P8,168,495.22 and P4,533,081.80 and its reclassification to Other Accounts Receivable without Board Resolution and approval from NEA; Director Jose Alan Leonor had an outstanding cash advance before filing his candidacy, a violation of Section 7, No. 6 (a) Article II of Election Code;

Refund of disallowances by concerned officers and employees; The computation of system loss without padding as presented by the EC (electric cooperative) only considered the December kwh padded consumption; Monitoring of employees efficiency-related activities, such as absences and tardiness; Encroachment of Leonor on management functions in violation of NEA Bulletin No. 35; and that (Then) Officer-in-Charge Noel Aquino had acted beyond his capacity as asserted in the letter of NEA Deputy Administrator Pablo Pan III.

Aquino has already been replaced by Joseph John Gallardo.

Cruz said the management is also required to take appropriate and immediate action on Sanctions on the deliberate misrepresentation committed by concerned officials; and the fact that the separate report on 10 MVA substation and 5 MVA accessories from Murakami Power Engineering had not yet been received;

There is no explanation/action for the damaged 10 MVA substation in San Carlos City repaired and reconditioned by Prime Electric Inc.; and that management should submit staffing pattern and functional chart for NEA's approval, he said.*NLG

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