Concrete poles purchase controversy reaches NEA

CEBU, Philippines - Issues surrounding the controversial multi-million peso bulk purchase of concrete poles, by the Negros Oriental Electric Cooperative 2 (NORECO 2), has resurfaced due to persistent reports of alleged anomalies and irregularities in the internal and external dealings of the cooperative.

A member-consumer, lawyer Joel Cadiongan Obar, chairman of  the National Union  of  Peoples Lawyers-Negros Oriental chapter, petitioned the National Electrification Administration (NEA) for a management and financial audit of  the affairs of NORECO 2, to put to rest speculations of wrong doings, if there are any, on the part of officers or employees of the cooperative.

Obar wrote to NEA Administrator Editha Bueno last June 19, describing a “glaring anomaly in the purchase of the concrete poles to the tune of  P52 million from a supplier in China.”

The sale was on installment basis for a period of five years but was actually paid in less than one year. Obar further alleged that the poles were non-usable because of structural defects.

Obar wanted NEA to conduct a fraud audit to give NORECO 2 a clean state of affairs to pursue its objectives, or, should there be irregularities discovered, the people responsible be made civilly, administratively or criminally accountable.

NORECO 2 director James Fontelo, however, refuted allegations that the concrete poles, numbering about 5,000, were non-usable. He confirmed though that the poles, imported from China, had no holes and that clamps were needed, prompting the coop to order for these from another company in that country, out of the savings generated from paying the whole amount of P52 million.

Fontelo said the late Eunora Sameon, the then NORECO 2 general manager, even brought samples of the concrete poles to Bacolod City for stress and durability tests, which these had passed. The first delivery of 260 imported poles was also used in the coop’s construction activities.  (FREEMAN)