Council OKs NASECORE request for Zamcelco’s regulatory audit PDF Print E-mail
Friday, 13 November 2015 13:11

The City Council in its regular session on Tuesday is expected to approve a resolution urging the National Electrification Administration (NEA) to conduct a regulatory audit to Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) from 2011 to 2015.

This, after the Council’s Committee on Energy and Public Utility chaired by District 1 Councilor Charlie Mariano conducted a committee meeting Tuesday , passed and approved a resolution on the NASECORE’s request “urging the National Electrification Administration (NEA) to conduct a regulatory audit beginning the month of 2011 to 2015”.

During the deliberation, ZAMCELCO General Manager (GM) George Ledesma suggested to the Energy Committee if it is possible that the conduct of regulatory audit will start from 2013 and backward years.

National Association of Electricity Consumers for Reforms, Inc. (NASECORE) Chapter president Mon Follosco immediately reacted on the issue presented by Ledesma.

“It will be improper to say nor unfair for all those former officials of Zamcelco, what we are talking here from 2011 to 2015 including the present management,” Follosco said.

“In that years to cover, there are some former officials will be included. In fact, at the time when GM Ledesma was appointed at the last quarter of 2013, ZAMCELCO’s comprehensive loss was at Php3-million then it pegged at more than Php128 million last year (2014) with a big difference of Php125 million,” Follosco explained.

He said aside from the comprehensive loss, ZAMCELCO is currently saddled with more than Php1 billion in debt, unauthorized fund utilization in the amount of Php221 million in 2014, and a system loss of more than 20%, which is beyond the allowable by law of 13%, which is illegal and all of which are contributing to the crippling daily brownouts.

District 2 councilor Vincent Paul (VP) Elago commented and presented his sentiments to the officials of ZAMCELCO.

“I’m really surprised that majority of the officials of the Board and management are present in this committee hearing but for the past council invitations they disregarded or even ignored the August Body,” Elago said.

District 2 councilor Elong Natividad as co-chair of the Energy Committee moved for the passage of the resolution and seconded by councilors Vincent Paul (VP) Elago, Mike Alavar and IP Representative Ismael Musa.

Energy Committee chair Councilor Mariano banged the gavel on the resolution presented by Natividad.

“This will be presented during the Council in session on Tuesday (November 17, 2015) as part of the committee recommendation,” Mariano said as he is confident that the said resolution will be approved unanimously by all councilors present.

Meanwhile, the local chapter of NASECORE headed by Follosco wrote a letter, dated November 10, 2015, to the Board of Administrators of the National Electrification Administration (NEA) thru its Administrator Editha S. Bueno, seeking immediate favorable action on their letter dated September 8, 2015, which as of this writing have remained unanswered perhaps, inadvertently ignored, due to hectic schedule of NEA officials.

The letter which states “to look for another general manager who can immediately arrest the worsening operation of ZAMCELCO to avoid falling into the category of an “ailing cooperative,” where NEA will be compelled to take over – a condition that we will all look with contempt as this will inevitably and unnecessarily show the failure of NEA,” Follosco said. — Dan Toribio Jr.