Mayor seeks probe on Zamcelco Board Print
Monday, 20 August 2018 12:07

Mayor Beng Climaco is seeking for an investigation into the Board of Directors of the Zamboanga City Electric Cooperative (Zamcelco) vis-à-vis the co-op’s system’s loss amounting to P1.2 billion.

‘We are asking the Zamcelco Board to be investigated because the independent auditor was saying if we continue with P1.2 billion system’s loss with the same Board, the IMC (Investment Management Contract) will not be fully realized because there is a track record of mismanagement,” Climaco said Thursday over “Dateline Teleradyo,” a public affairs program of IBC-TV11.

“In order to solve that,” the mayor said, “we need to remove the Board and let the NEA (National Electrification Administration) take over Zamcelco temporarily.” She likewise insisted that the IMC must be pursued

To recall, NEA Administrator Ed Masongsong presided over the Zamcelco stakeholders meeting last August 10, during which he agreed to the call for NEA’s temporary takeover of Zamcelco.

During the meeting attended by NEA officials, electric cooperatives and associations together with consumers of Zamcelco, it was discovered that the power co-op’s debt liability is P2.144 billion.

Zamcelco’s system’s loss was pegged at P22.95% which translates to P3 million for every 1% system’s loss. With a system’s loss cap of 12% plus 22.95% system’s loss, Zamcelco was found out to be losing approximately P33 million a month.

Record showed that Zamcelco boasts of 128,299 member-consumers as of July 2018, and has a total of 17,759 defective meters or nor meters that needed to be purchased and/or installed immediately.

The NEA officials assured that the agency will take over Zamcelco and will monitor the bidding process for IMC.-(Vic Larato)