Body sought to probe alleged anomalies in Davao power coop
By Frinston Lim
Mindanao Bureau
First Posted 14:59:00 03/19/2008
TAGUM CITY -- Local officials and electric consumers here have pushed for the creation of an oversight committee to look into the operations of the Davao del Norte Electric Cooperative (Daneco) amid allegations of mismanagement and anomaly against the utility's officials.
The proposal was formalized during a summit, called for by government officials here, which was held here last week. The summit was attended by representatives from the energy sector, consumer groups and management of Daneco.
The summit was prompted by an open letter, circulating here for weeks now, urging an investigation into alleged anomalies within the power utility.
The open letter cited an audit conducted by the National Electrification Administration (NEA), which allegedly found out that Daneco incurred a loss of P144 million from 2004 to 2006.
"Daneco has become inefficient because the coop isn't managed properly. Business-wise, when it's losing millions, the cooperative is not running on the right track. Its service is affected," Tagum Mayor Rey Uy said.
Uy said Daneco had been passing its losses to its consumers in Davao del Norte and Compsotela Valley.
Daneco officials said several issues and concerns against the coop had been answered by the management, among them, the frequent power outages and the "enormously big" systems loss.
Edgardo Savellano, Daneco general manager, said pilferage by unscrupulous individuals accounted for the bulk of the systems loss but that the problem had been addressed.
"The NEA audit where the over P170-million deficit was reflected does not show the entire picture. The audit circulated and used by detractors was just the preliminary audit, with Daneco intending to submit the required justifications on the audit findings and action plans," Savellano said.
But Uy and officials from the Tagum City Consumer Welfare and Protection Council (TCCWPC) were adamant.
Uy said the creation of the oversight committee would ensure transparency in the affairs of the cooperative as it offered "an independent and third party to see into" the coop.
"The committee will now be answerable to the consumers during power summits and general assemblies. Their recommendations will be credible and unbiased, unlike that of the management or the BODs [board of directors]," Uy said.
He said Davao del Norte Governor Rodolfo del Rosario could identify competent energy and technical men for the job.
Del Rosario said he was accepting the task "hundred percent" but clarified that the committee would not be a "fault-finding" body.
He said the panel would help craft measures and recommendations to improve Daneco's services.
"All of us member-consumers should help Daneco improve its service before making any drastic moves against it," del Rosario said.
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