The National Electrification Administration said Tuesday it intervened in the management of an electric cooperative in Misamis Oriental through the creation of a task force to improve the power distribution utility’s operational efficiency.
It passed Resolution No. 2021-44 approving the deactivation of the board of directors of the Misamis Oriental II Rural Service Electric Cooperative Inc. (Moresco II) and the creation of Task Force Sidlakang Misamis Dos Power.
NEA administrator Edgardo Masongsong, through Office Order No. 2021-36 dated March 30, 2021, said the creation of the task force was in the exigency of the service and pursuant to Section 4 (e) and (j) and Section 4-A of Presidential Decree No. 269, as amended by Republic Act No. 10531.
“The immediate intervention of the NEA is necessary in order to avert further operational and financial losses to the detriment of the EC member-consumer-owners and other stakeholders,” Masongsong said.
A comprehensive assessment conducted by the NEA Management and Consultancy Services Office revealed that the operational performance of Moresco II declined to “B” rating from “AAA” rating, with three non-compliances in power accounts, collection efficiency and system loss.
The task force, chaired by Melchor Cubillo, will perform the duties and responsibilities of the Moresco II board prescribed in NEA Bulletin No. 35 and NEA Memorandum No. 2020-001 on Code of Governance for Electric Cooperatives.
Named as members of the task force are the general managers of neighboring top-performing electric cooperatives are Jovel Ubay-Ubay of Moresco I; Christopher Dulfo of Bukidnon Second Electric Cooperative Inc.; and Darwin Daymiel of Agusan del Norte Electric Cooperative Inc. with Jovinita Calingin and a representative from the provincial government of Misamis Oriental.
The task force is tasked to resolve several issues that brought it to its financial distress; institute measures in the management and operational performance towards NEA standards; review its governance policies and practices and institute measures for reforms; and, obtain/encourage commitment building from the EC leaders, officers and employees and stakeholders.
It is also tasked to assist NEA in monitoring an assessment of the operations of Moresco II based on monthly and quarterly reports, historical and projected cash flow statement; and, in providing financial, institutional, and technical support in its operational management.
