Sorsogon electric coop on hot seat explains Php40 million loan

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soreco2By Felix ‘Boy’ Espineda, Jr.

SORSOGON CITY, 27June2013 (BicolToday.com) – Finally a public admission of the 40 million loan of Sorsogon II Electric  Cooperative, Inc. (SORECO II) was acknowledged by lawyer Percival Alvarez, general manager of the power cooperative when it guested over dzGN in its noontime program yesterday.

The loan as explained was part of the capital expenditures of the cooperative to enhance the output of its sub-station which according to him is nearing full load capacity. It will be source from the Development Bank of the Philippines. To prevent  the collapse of the sub-station which will have serious effects to the district was how it was explained.

But as to how much would be the actual project cost it was not discussed by Alvarez. It was pointed out that the energy regulatory commission was properly advised of the loan and the management of the cooperative informed local government officials of its intention, for they are required to do so.

The issue came to public attention after BicolToday.com published an opinion column taking task the coop why the need to contract the loan. Lately the cooperative is in the trending news here because of its inability to be transparent on its dealings with its member consumers.

The manager confirmed that they will not purchase additional lot for the construction of a new sub-station. They will construct it at their existing property. This was disclosed when he was asked during the program if there is a need to purchase new property to construct the sub-station.

But as to why it was not forwarded to the general assembly for consideration because of the enormity of the amount Alvarez was silent on it but assured the listeners that it will be solely for the construction of the sub-station and not to be use as payment to other indebtedness of the cooperative. [BicolToday.com]

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