Jose Alan Leonor was ousted as president of the board of the V-M-C Rural Electric Service Cooperative as the controversies hounding VRESCO in recent weeks peaked on Monday

This was disclosed yesterday by Director Ernesto Pilla, who was named new president of the nine-man board, after majority of his colleagues voted for Leonor's ouster during a meeting held at the VRESCO main office in Manapla.

Pilla told the DAILY STAR that Leonor, who still could not be reached for comment, walked out just before the meeting ended.

He said that Leonor, who represented Calatrava town, was ousted based on the audit findings of the National Electrification Administration that he was not eligible for re-election as director because he had violated a provision of the NEA Election Code.

When he filed his certificate of candidacy, according to the audit report, Leonor had an outstanding cash advance balance of P5,542.

"Misrepresentation of one of the qualifications is a valid ground for disqualification or termination as board member if elected to the position," the audit report added.

The other directors who voted for Leonor's ouster were Antonio Ocdinaria, who is now vice president (Internal); Jose Robles, vice president (External); Jane Benedicto, treasurer; and Antonio Demegillo, auditor.

Those who voted for his retention were Directors Armando Valmayor, Clemente Delgado and Eduardo Guiñabo.

P11.7M CLAIM

Pilla said that after he took over as president, he met with the Labor Organization of VRESCO Employees to address their call for the release of their P11.7 million salary differential.

Leonor had earlier asked the Land Bank of the Philippines Bacolod Branch to hold the payment or clearing of the check after the Court of Appeals, through its 19th Division issued a temporary restraining order preventing the National Conciliation and Mediation Board from taking further action on the amount garnished from VRESCO for the payment of the amount.

Pilla said that the board agreed with the union officers on the release of an initial P5.6 million and they will file a motion to seek the lifting of the TRO.

Another P5.6 million will be released before April 30, he said.

NEA ASKED TO ACT

Meanwhile, the Victorias Power Consumers for Reforms Inc., headed by Elinore Cabanilla, has reiterated its appeal to the NEA to take action on the latest findings of its audit team. In its board resolution dated Feb. 12, 2006, VIPCOR pointed out that the downgrading of VRESCO's categorization from A+ to B is proof enough that NEA has taken cognizance of the audit report, which underscored the "window dressing of financial statements/records to improve (electric cooperative) categorization."

It added that the "Evaluation of VRESCO Board of Directors and Management Comments" dated Jan. 23, 2006 addressed to the board, confirmed several grave infractions committed by some cooperative officials and employees, requiring formidable sanctions which, they sincerely believe, they said, is long overdue.

VIPCOR, in a separate resolution, lauded the NEA audit team for what the group described as the laudable work of the auditors of protecting the VRESCO consumers.

The team, composed of Edgar Tipon, Aurelio Mendoza, Herconida Lazaro and Elizabeth Domingo, conducted the Comprehensive Operations Audit on VRESCO, covering the period from July 1, 2002 to April 30, 2005.

VIPCOR said that the team's strict adherence to the principle of transparency and honesty in public service, as shown in the audit findings, is worthy of praise and commendation.*NLG

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