NEA orders dismissal of Davao Norte electric co-op execs

TAGUM CITY, Philippines—The National Electrification Administration (NEA) has ordered the dismissal of several officials of the Davao del Norte Electric Cooperative (Daneco) over allegations of grave abuse of authority, gross misconduct and other illegal acts.

In an order dated April 30, NEA directed the firing of Daneco board president Dean Briz, vice president Eugenio Ramonida, treasurer Ananias Darjan and board members Brendo Ceniza, Miguel Fermil, Ramon Zafra, Dan Gervacio and Roberto Binasbas.

Also ordered dismissed was acting general manager Felix Hibionada, while his predecessor, Nelso Balangan, was slapped with a 30-day suspension.

The order against the Daneco officials came barely a week before a controversial referendum to convert the electric utility into a stock cooperative under the Cooperative Development Authority (CDA) would be held. The move is being opposed by the Diocese of Tagum and several civic groups.

Founded in 1978, Daneco serves over 130,000 member-consumers in  Compostela Valley and Davao del Norte, except the city of Panabo and several municipalities.

The order, under NEA Administrative Case No. 01-10-11, was handed down by a five-member panel, chaired by Energy Secretary Jose Rene Almendras.

The NEA order was based on complaints filed by six private individuals identified as Gregorio Ybañez, Khernie Bahan, Efifanio Alfeche, Paulito Villaceran Jr., Juan Esperanza and Arnold Dinopol.

In its decision, NEA said the allegations against the Daneco officials included anomalous contracts allegedly entered into by them that were disadvantageous to the cooperative and its members-consumers.

It cited a contract with a private supplier for 2,000 electric meters, which were steeply priced. The contract was later rescinded even though Daneco had paid at least P3.096 million in advance  to the electric meter supplier.

The complainants also questioned the alleged abusive and unauthorized claims for fuel, oil and other lubricant allocations by the respondents.

NEA said it already disallowed more than P600,000 in such claims but the officials continued to draw fuel allocations.

NEA said the officials also committed grave abuse of authority, grave misconduct, among others, in the purchase of  10-  and 20-megawatt substations from Asiaphil, despite the winning bidder quoting a price of about P23.4 million, which was more that 50 percent higher than the two other suppliers.

NEA said it also found out that the respondents committed grave abuse of authority and discretion, among other offenses, when it renewed the contract, after re-bidding, of Christian Security and Investigative Agency or Cisa, when in fact, the security agency had been disqualified by the previous bids and awards committee.

“The foregoing assessments on the individual transactions so far discussed show the propensity of the respondents to use cooperative funds in a manner which does not befit them as fiduciaries of the Daneco member-consumers,” the NEA decision said.

The sacked officials could not appeal the decision to the same regulating body because it was “final and executory” but they may contest it in other venues, according to NEA lawyer Ricardo Urias.

“Of course, they could appeal (to the Court of Appeals). In so far as NEA is concerned, the respondents were now dismissed from the electric coop,” he said.

As a result of their dismissal, Urias said the respondents’ benefits would be forfeited and  they would not be allowed anymore to work in Daneco or in any other electric coop anywhere in the country.

Lawyer Gleen Blair Carnicer, counsel for the respondents, said due process was not followed by the NEA  and that they had sought and obtained relief in the form of a temporary restraining order from the Regional Trial Court in Nabunturan.

“How could (they) prove corruption if there was not even a single piece of evidence proving my clients gained from the alleged transactions? There’s no fair play here,” Carnicer said.

“While there’s still the TRO, the dismissal (order) was still not in effect and my clients are still working with Daneco. Status quo is still in effect,” Carnicer said.