State-run National Electrification Administration (NEA) said it referred to the Department of Justice its case against the board of Negros Occidental Electric Cooperative (NOCECO) for allegedly unduly granting themselves P65.5 million in allowances and benefits.
The NEA board issued a decision on April 18, 2024, on the basis of the NEA-Administrative Committee’s report and recommendation, slapping certain NOCECO board the penalty of removal; the accessory penalty of disqualification from reinstatement or reemployment in any electric cooperative and the forfeiture of monetary benefits.
Other NOCECO officers were meted the penalty of suspension for their participation in the subject disbursements.
NEA said that on June 1 to June 29, 2023, its EC-Audit Department (NEA-ECAD) conducted a comprehensive operations audit of the NOCECO as part of its regular operations. It said the audit covered NOCECO’s operations from Aug. 1, 2019 to April 30, 2023.
It said the NEA-ECAD found that improper disbursements were made by the NOCECO management and board of directors during the audit period.
The NEA-ECAD endorsed its findings to the NEA Administrative Committee (ADCOM), which then conducted a motu proprio investigation of the case in accordance with due process and its administrative rules of procedure.
NEA said the NOCECO board admitted to being aware of the NEA’s regulatory jurisdiction over electric cooperatives (ECs) registered with the Cooperative Development Authority.
NEA said that under Republic Act No. 10531, it is granted regulatory jurisdiction over all electric cooperatives in the country.