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Bacolod City, Philippines Thursday, January 19, 2006
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'All NEA recommended sanctions
should be imposed by VRESCO'
BY NANETTE GUADALQUIVER

Third District Board Member Reynaldo Depasucat yesterday said he believes that the recommendations of the National Electrification Administration to impose sanctions on VRESCO officers and employees involved in questionable dealings should be implemented.

"I read the NEA decision. It must be implemented," Depasucat, whose jurisdiction includes a town and a city under VRESCO, told the DAILY STAR yesterday.

Depasucat said he will take an action on the VRESCO issue in the coming weeks, but did not elaborate on what he will do.

The VRESCO Board of Directors ordered Tuesday the 30-day suspension of assistant general manager and finance manager, Antonio Magno Jr., based on the results of the NEA audit report for the period 2002 to 2005.

Director Ernesto Pilla earlier said Magno was suspended for 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.

In the audit report, covereing the period July 1, 2002 to April 30, 2005, it is stated 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."

For that, NEA recommended that the management, particularly the finance manager, internal auditor and other concerned officials, be required to justify the actions and sanctions to be imposed on them.

The board and the management was also asked 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.

On the Leonor case, it was recommended that sanction should be meted on the Screening Committee members for failure to disqualify Leonor, that internal auditor and officer-in-charge why certificates of eligibility of board of directors aspirants were not audited, and that disqualification procedures should be initiated against Leonor after due process.*NLG

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