NASECORE asks Council for Zamcelco’s regulatory audit PDF Print E-mail
Wednesday, 11 November 2015 11:04

A local consumer group has called on the City Council  to pass a resolution urging the Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA) to separately send special auditors to conduct regulatory audit to Zamboanga City Electric Cooperative, Inc. (Zamcelco).

National Association of Electricity Consumers for Reforms, Inc. (NASECORE) Chapter president Mon Follosco said while Zamcelco  is currently saddled with more than one-billion-peso debt, comprehensive loss of Php128 million, unauthorized fund utilization in the amount of Php221 million both in 2014, and a system loss of more than 20% which is illegal and all of which are contributing to the crippling daily brownouts, there is a need for financial rehabilitation for Zamcelco.

The CIty Council presided by Vice Mayor Cesar Iturralde in its attempt to find solution to the above issues and concerns, has approved a resolution endorsing the proposed adoption of the Investment Management Contract (IMC) between a management company and Zamcelco  where the management company will infuse fresh capital to bail out the debt-saddled electric cooperative.

“A regulatory audit is a necessity as this will determine and establish the true financial condition of Zamcelco  and will serve as a point of reference before the new investment is poured into Zamcelco,” Follosco explained.

Zamcelco is expected to conduct a special general assembly before the end of this year, as the Investment Management Contract (IMC) will be the subject for approval and highlight of the occasion.

The City Council earlier unanimously approved Resolution No. 1253, dated October 27, 2015, referring to the Committee on Energy and Public Utilities chaired by District 1 Councilor Charlie Mariano a NASECORE letter addressed to City Vice Mayor Cesar Iturralde, dated October 26, 2015, requesting for Sangguniang Panlungsod (SP) resolution “urging ERC and NEA to conduct regulatory audit for the period 2011 to October, 2015”.

“While Zamcelco is subjected to an annual financial audit to ensure that all coop financial expenditures are accounted for, a regulatory audit sees to it that fund utilization are according to the criteria set by the regulators like ERC and NEA,” Follosco said.

Meanwhile, the City Council’s Committee on Energy and Public Utilities chaired by Councilor Mariano will conduct a committee meeting on November 12, 2015 (Thursday) at 8:30 o’clock in the morning at the SP Session Hall to tackle Resolution No. 1253.

District 2 Councilor Elong Natividad as co-chair of the Energy Committee said that there is really a need to discuss the issues presented by NASECORE.

“While Zamboangueños are suffering for years and we cannot see light at the end of the tunnel, then there is a need for us to be guided and transparent for the best interest of the thousands of consumers,”Natividad said.

The invited guests and visitors are Zamcelco officials including General Manager George Ledesma, Board President Omar Sahi, NASECORE officials, City Legal Officer Jesus C. Carbon and other guests. — Dan Toribio