CANORECO half billion loan lead up to privatization, power rate hike

4
129

DAET, Camarines Norte – Hundreds of member consumers’ storm Camarines Norte Electric Cooperative (CANORECO) public hearing on the proposed half a billion peso loan application to Energy Regulatory Commission (ERC) said public hearing is slated 9:00am today at 4th flr. CANORECO building.

“We fear that said amount will be paid by member consumers without knowing where the money goes. General Manager Canlas lost our trust and confidence due to his administration’s records of mismanagement and incompetence. The very reason why we cannot allow this half a billion peso loan application”, said Nicolas Zabala.

“CANORECO has yet to answer the latest comprehensive audit report conducted by National Electrification Administration (NEA) which revealed irregularities on some transactions entered by the cooperative”, added Zabala.

Below are the transactions mentioned in the NEA audit report?

1. Procurement of Supervisory Control and Data Acquisition (SCADA) Software from SUNERTECH Corporation amounting to 5.6 million pesos which has no feasibility study, project design, and other specifications prior to acquisition. Worst there was no approved budget for this project.

2. Purchase of one unit reconditioned Isuzu Manlift Truck from Seino Motor Corporation amounting to P700.000 which upon delivery was found faulty and the cooperative incurred additional expenses for the repair of the newly purchased vehicle.

3. Without proper bidding, the cooperative entered into consignment agreement with Poleman Energy System Corporation for steel poles from October 2006 to October 2008. For 1, 354 pieces of steel poles the cooperative incurred P11,990,525. Dubious documents were found out like the computer generated receipts and the serial numbers indicated were from a stamp pad.

“The above mentioned are some of the issues and concerns that the management must answer before entering into another contract. I believe we have all the right to know since we are the one paying their salaries.” ended Zabala.

“This loan application is nothing but a part of a big play privatizing the Camarines Norte Electric Cooperative, Inc. We’ve seen it in other cooperative in Bicol like ALECO and CASURECO. The management is deliberately miring the cooperative in debt adding that private intervention is the only way to save it”, said Dr. Domingo Yu, Head Convenor of Bikol Power.

“The cooperative has no other way to pay this half billion peso but to pass it on to its consumers and let them pay for it by increasing rates and other charges. This has been the experience in other cooperative”, Yu concluded.

Bikol Power is a regional alliance of organizations, institutions and individuals opposing warrantless electricity rates.

4 COMMENTS

  1. If there are evidence to prove that the management under Mr Canlas committed irregularities then they should be made to answer all this allegation.And if found to be true according to the audit performed by NEA then prosecution should be the next step.And if possible conduct a lifestyle check for all involved in the irregularities..

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.