NEA removes Beneco board due to irregularities

MANILA, Philippines — The National Electrification Administration (NEA) has ordered the removal of the board of directors of the Benguet Electric Cooperative (Beneco) due to long-standing irregularities in the management of the electric cooperative.

NEA, through its board of administrators, found that the directors “unduly received benefits and allowances, availed of and mismanaged substantial loans to the detriment of Beneco, as well as amended the terms of payment for several of its service providers without the required approval of NEA, among others.”

NEA said the removed directors of Beneco are disqualified for reinstatement or reemployment in any electric cooperative, as well as to run as candidate for a board of director position in any cooperative, with their other monetary benefits forfeited.

NEA has likewise ordered them to refund to Beneco the disallowed amounts they received.

Beneco’s assistant general manager has also been suspended for 45 days, with NEA finding him administratively liable for simple negligence as a first offense.

NEA has approved the creation of Task Force Beneco to act as the board of directors of the electric cooperative in the interim.

The task force is composed of representatives from various sectors, such as the business, academe/education, consumer/professional, agricultural and religious sectors.

The Department of Energy has directed NEA administrator Antonio Almeda to act as Beneco’s project supervisor for   six months.

Almeda will supervise the management and operation of the electric cooperative to ensure the delivery of electric service to the member-consumer-owners.

A new acting general manager has also been appointed to serve for six months.

Almeda said he intends to prioritize the election of Beneco’s regular board of directors, as well as the appointment of a regular general manager within his tenure project supervisor.

According to NEA, Beneco’s rating as an electric cooperative has regressed to category C from AAA   in the 2019 overall performance assessment.

Almeda earlier assured stakeholders of the rural electrification sector that only the most qualified individuals would manage the electric cooperatives nationwide to make them globally competitive.

He said this would be achieved by making sure that proper and fair selection process is followed at all times.

NEA is mandated to carry out the total electrification of the country on an area coverage basis, with the 121 electric cooperatives as the implementing arm.