The Board of Directors of the Victorias-Manapla-Cadiz Rural Electric Services Cooperative yesterday ordered the suspension of the VRESCO assistant general manager and finance manager, Antonio Magno Jr., for 30 days effective immediately.

Director Ernesto Pilla told the DAILY STAR the decision was reached based on the results of the National Electrification Administration audit report, which outlined questionable actions of the VRESCO management from years 2002 to 2005.

He said that during the board's meeting yesterday morning, upon the motion of Director Jane Benedicto, five out of nine members voted for Magno's suspension.

Magno could not be reached for comment as of press time.

The grounds for suspension, he said, were window dressing of VRESCO's financial statements, manipulation of policy of actual purchasing procedures, and the issuance of certificate of eligibility for election to board president Jose Alan Leonor despite his unsettled or outstanding obligations to the cooperative.

Magno has command responsibility, Pilla said, adding that the board acted on the recommendations of the audit report otherwise, they will be sanctioned by the NEA for failure to act on these.

The NEA audit report, which covered the period July 1, 2002 to April 30, 2005, revealed 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."

The report 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 management was also asked by the audit team to explain the delay 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, 2005.

As of June 30 last year, a total of P9 million had already been paid, and the balance of P23 million will be paid in 36 months, the report said.

Elinore Cabanilla of the Victorias Power Consumers for Reforms Inc., said yesterday their group welcomes the suspension of Magno, but said that all the other officials involved in the questionable acts should have also been imposed a similar penalty.

"How about the others who were also involved in committing acts detrimental to the interest of VRESCO consumers?" she asked.

Last December, VIPCOR, headed by Abelardo Gustilo as acting president, had asked the NEA to make accountable the VRESCO officials and employees who, they claimed, committed "abominable acts" as noted in the latest audit report on the cooperative.

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

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