Members of the militant Freedom from Debt Coalition and its allied organizations, Sanlakas and Partido ng Manggagawa, will hold a picket in front of the Central Negros Electric Cooperative office at 10:30 a.m. today to protest the purchase of a substation and a generator by the management which they claim to be anomalous.

In December last year, the FDC had asked the Energy Regulatory Commission to investigate or audit CENECO for possible violations of the guidelines and policies of the ERC and the National Electrification Administration and provisions of the Electric Power Industry Reform Act.

CENECO president Ed Guillem had then dismissed the claim as a smear campaign against the management and stressed that they had not committed violations.

Raised by FDC were violations of the CENECO Procurement Manual-Board Resolution No. 7384-2005 on the award of contract of the supply, delivery and installation of the 30MVA substation in Brgy. Alijis, Bacolod City for the Pre-qualification, Bids and Awards Committee did not recommend the award;

Open defiance of the CENECO Board to NEA's disapproval to award the P6.9-million contract to Power Star Inc. claiming the cost will push higher the electricity cost in CENECO's coverage area, and the fact that the PBAC did not recommend the awarding of the contract;

Misuse of electric cooperative fund especially the five percent Reinvestment Fund on another 30MVA substation contract awarded to PPI Pazifik Power Inc. wherein the supplier/contractor allegedly only asked for a 20 percent downpayment but the check issued to PPI Pazifik Power Inc. was for P17,470.352, and;

Non-compliance with CENECO procurement, accounting and auditing procedures when the management purchased one unit of Stanford Generator Set worth P800,000 with the management, claiming it was an emergency purchase, and not holding a bidding.

Last December, the ERC's Regulatory Operations Service had said it was looking into the allegedly anomalous P69-million transaction of the Central Negros Electric Cooperative with contractor Power Star Inc. for the upgrading of CENECO's 30 MVA station.*NLG

back to top