Former NPA chief’s power co-op in the red

MABALACAT, Pampanga – Former Communist Party of the Philippines chairman and New People’s Army chief Rodolfo Salas has uncovered serious problems in the merged electric cooperatives the government tasked him to manage as chairman.

Salas, who was named by the National Electrification Administration (NEA) chairman and chief executive officer of the Pampanga Electric Cooperative which serves some 200,000 households in at least 15 towns of this province.

"When I took over Wednesday last week as chairman, I found out that Pampanga Electric Cooperative 2 (Pelco 2) has only P5 million in cash and that the Napocor had already issued it an ultimatum to pay at least P45 million from its P160 million arrears or face power cut-off last Friday," Salas said

Salas said he negotiated for the extension of Napocor’s deadline, as he launched an intensive campaign to collect unpaid electric bills of consumers in areas covered by Pelco 2, including the towns of Mabacalat, Porac, Sta. Rita, Bacolor, Guagua, Lubao, Sta. Rita, and Sasmuan.

"In five days, we were able to collect about P32 million, and we still have to raise another P13 million to raise the P49 million the Napocor wants," he said.

The general managers of the three cooperatives were deprived of their powers and were merely designated by the NEA as consultants amid allegations of inefficiencies and anomalies.

Salas noted that the municipal government of Mabalacat has yet to pay its accumulated power bills worth some P10 million. But Mabalacat officials allegedly demanded that the power cooperative pay the town some P15 million as its share in the cooperatives use of local natural resources.

"The demand was reportedly based on an ordinance the Sagguniang Bayan passed only recently, but it really doesn’t apply to Pelco since we do not exploit any natural resource in Mabalacat. The cooperative merely distributes Napocor power," he said.

Salas, who used to be known as Kumander Bilog during his rebel days, officially took over the management of three heavily losing electric cooperatives Pampanga Electric Cooperative 1, 2, and 3, as directed by NEA director Fr. Francisco Silva.

The move was reportedly backed by President Arroyo herself who, during her visit to Clark recently, asked mayors of affected towns to support Salas.

Salas was the chief of the NPA when he was captured and jailed during the Marcos administration.

He was granted amnesty by former President Corazon Aquino and has been engaged in various cooperative and business enterprises since then.

The three general managers and the members of the boards of the three cooperatives were designated as advisers to the central management, said Sarmiento who was among those present when Silva signed Salas’ appointment of last Oct. 17.

Catalina Saplala, co-chairperson of the Regional Development Council (RDC) and chairperson of the Consumers’ Alliance of Central Luzon, also expressed support for the leadership of Salas, as she noted anomalies in Pelco 2. She cited audit findings that as of last December, Pelco 2 incurred a net loss of about P100 million.

Pelco 1 covers some 65,000 households in the towns of Magalang, Mexico, Sta. Ana, Candaba, and San Luis, Pelco 2 some 99,000 households in Bacolor, Guagua, Lubao, Sta. Rita, Porac, and Mabalacat, and Pelco 3 some 46,000 households in Sto. Tomas, Minalin, Macabebe, Masantol, and San Simon.

Sarmiento cited studies indicating 27 percent "systems losses" or losses incurred from unauthorized use of electricity being incurred by Pelco 1, 22.4 percent by Pelco 2, and 20 percent by Pelco 3. She also noted that Pelco 2 has not been able to pay its debts amounting to some P116 million to the National Power Corp., while Pelco 3 has similar arrears amounting to P179 million. Pelco 1, however, has been up-to-date in its payments to the NPC.

Silva directed the new management of the merged Pelco’s to implement a 100-day "plan of action" to reduce systems losses, improve collection efficiency, contain non-power costs, and boost the merged cooperatives’ financial viability and operational efficiency.

Consumers in Mabalacat have expressed support for Salas, as they noted that frequent and unannounced power failures have barred many investors from locating in their town, particularly at the Dau commercial district where many business establishments, such as internet cafes, have relocated to neighboring Angeles City which is served by a privately owned power firm. (Ding Cervantes)