The National Electrification Administration (NEA) reiterated the legal bases supervisory actions over electric cooperatives' operations and management. As stated in its previous media releases, the NEA cited that in the context of state regulation, the "Interference" in ECs' affairs comes as a matter of course in the exercise of NEA's mandate of supervision over their operations and management under the provisions of Presidential Decree (PD) 269 as amended by Republic Act (RA) No. 10531.

Supervisory actions such as the selection and hiring of EC general managers (GM) as in the case of the Benguet Electric Cooperative, Inc. (BENECO) are therefore lawful and were executed with due diligence. It is the collective action of the NEA Board of Administrators (NEA BOA) to appoint Atty. Ana Marie Rafael as the GM of BENECO, under the guidance of the NEA BOA Chairman.

The NEA BOA passed Regular Board Resolution No. 2021-47 on April 29, 2021, endorsing the candidate with the highest score in the final interview for the General Manager of BENECO. However, the BENECO Board of Directors passed a resolution on May 19, 2021, rejecting the NEA BOA's resolution. The NEA found no merit to the action of BENECO without a valid reason.

In a report submitted to the Senate Committee on Energy, the NEA said the process of selection and hiring of an EC GM is governed by the Agency's pertinent memorandum which provides, among others, that all applicants vying for a General Manager position must be given a fair and just chance in the selection process, and that an incumbent Officer-in-Charge-General Manager (OIC-GM) should relinquish his/her designation.

Engr. Melchor Licoben was disqualified due to his failure to comply with the condition that he should relinquish his designation as OIC GM of BENECO. With this, only Atty. Rafael was left as a candidate for GM of BENECO. Since she had the highest score during the selection process, she was appointed GM of BENECO.

Even with the appointment of Atty. Rafael as GM of BENECO, Engr. Licoben refused to turn over his duties and responsibilities to the newly appointed GM. His actions eventually led to confusion and even chaos because he continued disbursing BENECO funds as if he was still the BENECO GM. He also signed checks on behalf of BENECO. Engr. Licoben was then preventively suspended for 90 days together with seven (7) other directors whereby they have ignored and defied the suspension order.

NEA also rendered its decision in the administrative case pertaining to the audit findings wherein the respondents were meted an administrative penalty of 90-day suspension, as well as ordered them to return the excess amounts they earlier received in violation of NEA policies and guidelines. Until now, however, Engr. Licoben and the other suspended directors have yet to serve their respective suspensions.

In view of the foregoing factual backdrop, it is unfair to insinuate that the camp of GM Rafael is manipulating the funds of BENECO with the backing of NEA. The funds of BENECO, just like all other electric cooperatives, shall continue to be monitored and audited by NEA.

As to the NEA Memorandum No. 2021-55 and Memorandum No. 2021-56 challenged by ISELCO I in court, the agency will continue to address the issue in the proper forum.

Finally, NEA does not intend to disrespect the House of Congress, its Honorable Members and the will of the people. The NEA is only fulfilling its mandate for the best interest of the member-consumer-owners by continuing to bring light and hope to the countryside.###