The National Electrification Administration has put the board of Bukidnon Second Electric Cooperative Inc. under preventive suspension amid an ongoing internal investigation.
In an order dated Sept. 5, the NEA board put the members of the Buseco board of directors on a 30-day preventive suspension effective immediately to prevent undue influence on the motu proprio investigation being conducted by the NEA Administrative Committee.
NEA, in a statement, said the suspension order was due to the continued defiance of the Buseco board to heed several directives issued by the agency, which has supervisory powers over all electric cooperatives in the country.
The NEA board cited the two resolutions passed by Buseco board: Opposing and disallowing the order to intervene and/or take over the management of Buseco, and enforcing the regularization of Deiter Hoff Arellano as a general manager of the electric cooperative.
NEA ordered Arellano to be removed from office in an order dated June 22 after he was found guilty of grave misconduct, dishonesty, and conduct prejudicial to the best interest of the electric cooperatives and its member-consumer-owners.
According to NEA, the order shall enable the Administrative Committee to investigate charges against respondent members of the Buseco board “by preventing them from intimidating or in any way influencing witnesses against them and to protect the integrity of evidence in their possession, the issuance of preventive suspension herein is necessary.”
NEA also ordered the suspension of Danilo Paciente, Gloria Ranile, Erlinda Basera, Dioscora Ngoho, Alex Payangga, Charlie Castillanes, Francis Boniao, Edwin Galicia, and Tarcisio Barros.
The suspension means all orders emanating from Buseco board are no longer valid, according to lawyer Alexander Paul Rivera, NEA corporate board secretary.
NEA Administrator Edgardo Masongsong issued an office order last May creating a team to oversee the management of Buseco due to internal conflict among the members of the board, allegations of irregularities, and to ensure its continued operational and financial viability.
The order was pursuant to supervisory powers of NEA over the electric cooperatives under Sections 4 and Section 4-A of Presidential Decree No. 269, as amended by Republic Act No. 10531. It was issued upon the recommendation by the NEA fact-finding committee.
Last April 1, four Buseco directors requested for NEA’s intervention to take over the management of the electric cooperative, citing its high power rates and alleged irregularities among their concerns.
Buseco questioned the office order before the Court of Appeals and asked it to issue a temporary restraining order. The CA, however, dismissed the petition for lack of jurisdiction.
“Any disposition on petitioner’s prayer for temporary restraining order and/or writ of injunction is already moot. Petitioner’s Urgent Manifestation and Motion filed on May 29, 2017 is noted without action,” the CA stated in its resolution dated June 2.
Masongsong designated Felix Vergara, Jr. as acting general manager of Buseco, but the board refused to honor his appointment.