No NEA takeover of Zamcelco-Sahi PDF Print E-mail
Wednesday, 08 August 2018 14:52

by BHONG SIMBAJON

There will be no takeover of the Zamboanga City Electric Cooperative (Zamcelco) by the National Electrification Administration (NEA).

Thus confirmed Zamcelco Board president Omar Sahi based on a statement made by NEA Administrator Edgardo Masongsong who revealed a decision by the government agency not to take over the ailing electric cooperative.

Masongsong said that they will not take the risk to rescue Zamcelco at its present stage because of the latter’s poor financial standing which makes it very difficult to rehabilitate the ailing cooperative.

Zamcelco reportedly owes nearly two billion pesos to power suppliers, some of which are demanding the immediate payment of Zamcelco’s outstanding debts.

Masongsong also admitted that they lack the technical personnel to administer Zamcelco should the takeover be implemented, saying that most of their personnel have been deployed to other ailing cooperatives.

“The issue of takeover will not happen at any given time.  They will not take the risk accordingly,”  Sahi stressed.

Sahi said that a status quo will currently be observed meaning that the present Board of Directors and management will continue to handle the elecric cooperative’s operations.

Meanwhile, rebidding for the Investment Management Contract (IMC) will continue.

Recall that NEA requested the Zamcelco Board to finalize the amended terms of reference before August 6, this year.

Zamboanga officials, Mayor Maria Isabelle Climaco-Salazar and Congressman Celso Lobregat, recommended the immediate takeover of Zamcelco by the NEA.  (Bhong Simbajon/ RMN News)