History of Buseco

HISTORICAL BACKGROUND

Bukidnon II Electric Cooperative Co. Inc. (BUSECO) is an electric power distribution utility organized under Presidential Decree 269 (NEA Decree) under the Marcos regime on July 1978. It operated in 9 municipalities and 1 city in the northern part of Bukidnon with 65,547 member-consumers and 159 regular employees and 8 probationary workers.

The first General Manager was Mr. Ramon Bernad. In April 1989 to September 11, 1992  NEA designated Mr. Jessie Villena as Project Supervisor when Mr Ramon Bernad took a sick leave. Mr. Villena became permanent General Manager when Mr. Bernad retired on September 12 1992.

On September 11, 2001 concerned member-consumers and employees staged a rally in BUSECO in protest against corruption and anomalies in management, thus virtually ending the tenure of Mr. Villena.

After the ouster of Mr. Villena, a Project Supervisor was designated by NEA and a succession of Officers-In-Charge from among the coop key officers managed BUSECO. Persistent mismanagement and anomalies prompted some concerned member-consumers to ask NEA to intervene thru Mr. Francisco Silva, Presidential Adviser for Rural Electrification to hire a consultant group to address the management crisis in BUSECO.

Earth Resource Management Group, a consultancy firm patronized by Mr. Francisco Silva and under the leadership of Mr. Erico Bucoy and Mr. Edgardo Masongsong ran BUSECO as Executive and Assistant Executive Officers, respectively. Mr. Erico Bucoy eventually gave way to Mr. Edgardo Masongsong as Executive Officer, who eventually became a permanent General Manager when the case of Mr. Jessie Villena against the coop was finally dismissed by the higher court. The intended transitory intervention of the management consultancy group turned into a permanent take-over of management through subtle maneuver in contravention to ethical norm and standard on management consultancy work.

The specific issues of management corruption and anomalies prevalent under the administration of Mr. Jessie Villena have not been resolved, nay, they have recurred for the worse  under the leadership of Mr. Edgardo Masongsong as can be shown by the following significant and critical events:

TIMELINE(CYCLE) OF CRISIS

JULY 1978         BUSECO is organized and incorporated with Mr. Salvador Albarece as First BOD President and Mr. Ramon Bernad as General Manager

April 1989        Jessie Villena is designated Project Supervisor and later Acting GM while Mr. Bernad takes a sick leave

12 Sept 1992      Jessie Villena becomes permanent GM

08 June 2001      EPIRA LAW IS PASSED effecting reform in power industry.

EPIRA gives the electric cooperatives the option to become cooperatives under the Cooperative Code of the Philippines, a corporation under the Corporation Code of the Philippines or to remain with the National Electrification Administration. Mr. Francisco Silva, the Presidential Adviser on Rural Electrification of Gloria Macapagal Arroyo and long-time General Manager of CEBECO I, II and III, became NEA Administrator and he maneuvered the electric coops to remain with NEA, including BUSECO using political patronage and personal bias.

As concurrent NEA Administrator (later Presidential Adviser on Rural Electrification) and electric coop manager, Francisco Silva flagrantly disregarded the principles of subsidiarity, autonomy and solidarity and brazenly employed patronage politics to prevent informed and free exercise of the organizational options granted by law to the electric coops. It is a manifestation of Luciferian arrogance and total lack of modesty in the part of Silva to hold his various positions in the corrupt Arroyo regime and guide the electric cooperatives in the right path of genuine reform with fairness and objectivity.

Gloria Arroyo’s appointees and Francisco Silva’s recommendees packed the NEA and the only legacy of the past administration is the present confused and unresolved issues affecting the electric cooperatives. Francisco Silva and his minions of troubleshooters and crisis management team for electric cooperatives, such as BUSECO, sacrificed public service and trust in the altar of power politics and self-vested interest.

3 Aug 2001        Letter of Complaint of Concerned Member-Consumers and Employees against GM Villena is submitted to NEA Region 10, alleging the following corruption and anomalies:

1.  Issuance of cheak without observing proper accounting procedure no internal control in coop transaction, implement BOD resolution without NEA approval

2.  Violation of coop’s internal control on cash disbursement

3.  Prejudicial and discriminatory actions against employees holding key positions who report and testified about GM abuses and irregularities

4.  No disciplinary action to his favored erring employees

5.  Appointing as OIC in the absence of GM Villena an undergraduate in the person of EVA PELAE

Other anomalies

1.  Suspect of BOD Belican forged signatures in per diem

2.  Acquisition of 3 units of commando jeep amounting to P250,000 each when actual price during canvass is only P220,000

3.  BUSECO issued check to APEC in the amount of P180,000 and only P156,000 was liquidited

4.  PET PLANS retirement fund issue involving millions

5.  NRECA DONATED MATERIALS

6.  Upgrading of Combo instrument shows P100,000is budgeted for 2001 in excess of actual budget

7.  Validity of attendance of NRECA convention

8.  Fuel of coop vehicles used personally by Internal Auditor

9.  Non-implementation of NEA approved resolutions

6 Aug 2001        Tita Perla Rubio, Tresurer of the BOD, files separate complaint against Jessie Villena on issuance of check without proper accounting procedure

27 Aug 2001       Fact-Finding Committee to investigate GM Villenal and BOD President Jonas Sale is created per NEA Memo

29 Aug 2001       NEA Fact-Finding Committee issue Report and Recommendation fully affirming and verifying the contents  of the Letter Complaint of Concerned member-Consumers and Employees, and issue the following recommendations:

1.  To prevent Mr. Jessie Villena to transfer employees

2.  Conduct of investigation

3.  Open Administrative case against GM

4.  Place GM Villena under preventive suspension for at least 90 days

5.  Assign project supervisor

19 Sept 2001      NEA Administrative Committee files charges against Mr. Villena for DISHONESTY, GRAVE ABUSE OF AUTHORITY AND CONDUCT PREJUDICIAL TO THE INTEREST OF BUSECO, MEMBER-CONSUMERS AND ITS EMPLOYEES

9 Nov 2001        NEA Management and Financial Audit Division submitted to NEA Administrator  the following findings and recommendations:

1.  GM Villena as well as Internal Auditor Clotilda Mesiona must be held responsible for long undetected misaapropriation of funds

2.  All accountable officers should be bonded

3.  The recommendation of Administrative Committee be strictly implemented

These findings and recommendations, among others, have never been resolved and completely ignored by the crisis management team, considering that their mandate sprung from them. Their premeditated, deliberate and malicious intent to take over (not to troubleshoot) the management drove them to sow division and create dissention in the officers and employees of the coop in order to concoct a management crisis justifying their grab of the control. The classic divide and rule theory.

Most of the officers and employees cited for complicity in the corrupt management of previous administration were coopted by the management team and promoted to higher positions, thus the recurrent crisis in management.

Worst still, those few who retain their integrity and consistency for critical objectiveness and honesty are pariah and persecuted by Masongsong management team.

10 Dec 2001       BOD Angel Baula files separate verified complaint to the BOD/NEA against GM Villena citing the following anomalies:

1.  Construction/renovation of various buildings of BUSECO amounting P560,880 without canvass

2.  Purchase of 102 pieces of KWH meter from AVS and Sons Trading Corp. without canvass/bidding

3.  Lack of supervision and monitoring by GM in cash handling by cashier in Malaybalay Sub-Office resulting to mismanagement

4.  While Mr. Villena was Project Supervisor and Acting GM allowed to allocate and receive from BUSECO the amount P51,135.23 as 13th month pay, bonus, cash gift, rice allowance, medical in violation of NEA Memo. No. 33 and Personnel Policy No. 6

5.  GM Villena caused write off of power bills amounting P1,422,395 without NEA approval

6.  Deficit of BUSECO (1991-1993) amounting P355,724 without NEA approval

7.  GM grave abuse of discretion when he repaired his car in manila without BOD resolution

8.  Car repair charged to BUSECO amounting P33,754

9.  Lack of supervision in Malaybalay office resulting to 127 unpayed  power bills of employees and 291 power bill of member-consumers

10.Failure to pursue and recover new oil circuit recloser costing P382,260.67 borrowed by LANECO

11.NO garaging of vehicle per BOD resolution 86-06-10

12.Discrepancies in general ledgers and    actual/physical inventories

13.GM increased his salary without NEA approval

14.GM grave abuse of discretion when he bought 4 units of motor vehicles without NEA approval

15.GM travel to USA violating NEA Memo No. 43

16.Failure to collect from former employees account and material recievables

17.Discrepancies in physical inventory of power bills shortage of P4,732,843

18.Abuse of discretion in failure to revert back written off power bills per NEA audit recommendation

19.Continuous practice of employees of outstanding power bills of relatives and other consumers

20.GM purchased of PHILRECA 50 units KVA recon transformer costing P950,000 without canvass

21.Failure to recover garnished property in labor cases

22.Failure to act on NEA audits and recommendations

What happens to this complaint is indicative of NEAs lack of seriousness to curb corruption. The allegations are serious and the crisis management never bothered to address the case.

The allegations above are the constant refrain committed by the Masongsong management team sa can be shown below.

24 May 2002       BUSECO BOD pass Resolution No. 52, S 2002 terminating the services of GM Villena as General Manager of BUSECO in exercise of its power under the By-Laws sensing that NEA is “soft” on Mr. Jessie Villena who is perceived as NEA Boy. The resolution cites the following grounds for termination:

1.  Repair of personal car charged to BUSECO

2.  Reimbursement of light and water expenses of residence in Bugo, Cagayan de Oro, not within the area of operation

3.  Continued patronage (suki system) of favored suppliers (E.R. Ramos of Davao)

4.  Unauthorized purchase without canvass, splitting of combo equipment disbursement

5.  Conduct unbecoming of GM (favoritism)

6.  Unauthorized travel abroad

7.  Anomalies related to Kalabugao expansion project

8.  Alteration of documents/records on various occasions

Others:

Defiance of BOD resolutions

Reneged of palabra de honor

May 2002          Mr. Domingo Santiago is designated NEA Project Supervisor and the BOD appoints Ms. Sylvia Pepito (Finance Manager) as OIC, followed by Mr. Chito Ebora and and then Engr. Rudy Agustin. NEA categorized BUSECO as C Category in 2005. This is up to the time when the Earth Resource Management Group Consultants under Mr. Bucoy and Mr.Masongsong maneuvered to take over management in 2006 and the presidency of the BOD is held in turn between ENGR. MIKE QUIÑO AND MR. BONIFACIO EBUZA, THE LATTER BEING LONGEST SERVING DIRECTOR DURING THE RECURRENT CRISIS UP TO THE PRESENT.

14 June 2002      Villena files Certiorari and prohibition in CA assailing the action of the BOD and NEA AdCom to investigate him

15 Nov 2002       NEA BOD pass Resolution removing Mr. Villena as GM with grant of separation benefits

11 Mar 2003       Mr. Villena files a Supplemental Petition to assail his termination

22  Oct 2004      TRANSCO President Alan Ortiz says that local power cooperatives milking cow of executives (PDI Issue)

7 Dec 2004        Concerned Member-consumers sends Letter- Complaint and request to conduct investigation to Ms. Edita Bueno NEA Administrator citing following anomalies of OIC Rudy Agustin:

1.  Payment of check to Director Tamayo without the signature of Finance Personnel and Internal Auditor

2.  Detail of Engr.  Fernandez, ESD-OIC to MOELCI II as guard of equipment

3.  Flagrant insult and intrigues against employees

4.  Promotion of Alice Ylanan despite pending case of forgery

5.  Promotion of EVA PELAE, an undergraduate in disregard of NEA audit finding and recommendation and related Tonacao case

6.  Promotion of Clotilda Mesiona despite strong adverse NEA audit finding and recommendation

7.  Persecution of lone CPA staff in BUSECO (Ma. Bella Saavedra

8.  Appointment of Ms Sylvia Pepito as Internal Auditor when her husband is warehouseman and custodian

9.  Non- implementatation of garaging policy and waste of fuel

10.Glaring overpricing of materials

11.Non-obsevance of NEA Material Price Index in purchases

12.Electric line using BUSECO materials are sold to private entities

13.No control system in numbering in the distribution of transformers

14.Inadequate and lack of Internal Control system on Consumers Account Recievables

15.No prompt action on reports of illegal tapping and direct connection

16.Hiring of employees without conducting evaluation

17.Mr. Horacio Mordeno accident case due to service inefficiency

Dec 2005          OIC Engr. Rudy Agustin retires under charges of diversion of subsidy funds

19 Jan 2006       ERMG under Mr. Erico Bucoy and Mr. Edgado Masongsong come to BUSECO thru BOD Resolution approving the Term of Reference

22 Feb 2006       CA denies and dismisses the petition of Mr. Villena

March 2006        Comprehensive Operations Audit for the Period 01 May 2005 to 31 December 2006 is conducted in BUSECO

24 Mar 2006       BOD BUSECO pass Re. No. 06-03-24 approving the special retirement package of Engr. Rudy Agustin, Engr. Marlon Obeneta, Sylvia Pepito and Danilo Pepito, as of 2009 NEA audit, this resolution has no NEA approval.

27 Jul 2006       CA denies and dismisses with finality the Petition of Mr. Villena

03 Aug 2006       Mr. Edgardo Masongsong replaces Mr. Erico Bucoy as Executive Officer of BUSECO up to yearend.

06 Sept 2006      Clotilda Mesiona of Finance Services Department is Promoted to OIC Manager of Branch Operation

27 Sept 2006      Sanguniang Panlalawigan of Bukidnon declares Mr. Erico Bucoy as PERSONA NON GRATA of the Province of Bukidnon

30 Nov 2006       Concerned Member-consumers sends Letter-Complaint to NEA Administrator about anomalies commited by management consultants, such as:

1.  Liquidity problem and difficulty in paying GENCO, TRANSCO and various creditors

2.  P300,000 monthly pay of the consultants

3.  Factionalism inside BUSECO

4.  Appointment of under qualified employees to key positions and double standard

5.  Anomalous disposal of non-performing assets

6.  Purchase of substandard materials

7.  The non-appearance of Mr. Erico Bucoy before the Sanguniang Panlalawigan for clarification

8.  Recurrent absences and travels of Mr. Erico Bucoy

9.  Finally requesting for a Special Audit.

20 Dec 2006       Sanguniang Panlalawigan of Bukidnon passes Resolution No. 2006-1275 supporting the Member-Consumers request for Special Audit

01 Jan 2007       BUSECO BOD passes Resolution 06-12-115 hiring Mr. Masongsong with consultants to manage BUSECO up to June 2007 with a Compensation Package of P150,000 per month, out-of-pocket expenses for board and lodging and travel allowance to and from home base in the amount of P20,000 net of taxes and other operation-related out-of-pocket expenses as stipulated in TOR

02 Mar 2007       BUSECO BOD recommended Mr. Masongsong as probationary GM

16 July 2007      NEA Audit Team on the Comprehensive Operations Audit in March 2006 is submitted to NEA Administrator only signed by two financial auditors and without signatures of EDGAR A. DE GUZMSAN AND ABDULMALIK L. BACARANAN, Technical and Institutional Auditors, respectively.

     

In the Audit Report the auditors find the complaint supported by Sanguniang Panlalawigan almost baseless, even recommending that Mr. Masongsong should request a BOD resolution to justify the general AMNESIA or AMNESTY granted to erring employees.

     

This Audit finding was released only after more than a year after the actual audit.

Aug 2007          Reorganization of BUSECO Personnel effected by Mr. Edgardo Masongsong

04 Jan 2008       Mr. Masongsong becomes regular GM with P60,000 salary

01 Jul 2008       NEA confirms Mr. Masongsong as GM

O3 Aug 2009       BOD BUSECO thru Re. No 09-08-02 confirming the decision of the Board President Bonifacio Ebueza injoining Director Santoninio and Alima from attending the Board meeting purportedly to show that not Mr. masosng but the Board who acted against Dir. Santoninio

15 Sept 2009      Prebyterial Council of the Diocese of Malaybalay

passes Resolution No. 2 requesting NEA to immediately remove Mr. Masongsong as GM of BUSECO

15-23 Sept 2009   NEA comprehensive Operations Audit covering Jan 01 to July 31, 2009 conducted in BUSECO

09 Oct 2009       BOD BUSECO passes Resolution No. 09-10-03 refuting Res. No. 2 of the Presbyterial Council last 15 September 2009

02 Dec 2009       Sanguniang Panlalawigan of Bukidnon Declares Mr. Masongsong as PERSONA NON GRATA of the province

29 Jan 2010       NEA Audit Team submitted to NEA Deputy Administrator the Audit Report on Comprehensive Operations Audit  conducted last September 2009

10 Mar 2010       Fr Jonathan C. Tianero, Secretary, Diocesan Core Committee requests copy of the Audit report conducted last September 2009

14 Apr 2010       NEA Deputy Administrator Edgardo Piamonte replies that they cannot give final report since the BUSECO Management and BOD seek extension of period to submit explanation/justification.

The Executive Summary of the Comprehensive Operations Audit for 2007 to 2009 highlights the following findings:

1. FINANCIAL AND MANAGEMENT AUDIT

1. BUSECO realized net margin of P2,490,377 in 2008 and a NET LOSS of P13,358,542 for the first seven months of 2009. Prior years' accumulated losses amounting to P12,689,360.

2. The total amount of P142,909,380.78 has been refunded to its consumers starting May 2004 for the reduction of rate arising from loan condonation, however, it has over refunded P23,839,119.56 as of 31 August 2009.

3. The coop received total subsidy of P2,561,618.06 for the period under audit and were utilized for the intended purposes. A total amount of P20,510,000.00 was received for the “Pantawid Kuryente Katas ng VAT Program” benefiting 41,020 consumers.

4. The 10 MVA Power Substation in Aglanyan, Malaybalay City project that was initially granted to Asiaphil Manufacturing Industries, Inc. but withdrawn and awarded to Electrobus Consilidated, Inc. was not completed un accordance with the contract. In orderexpedite its energization, the coop allowed its equipment to be temporarily installed. Equivalent amount of liquidated damages for the delay was not yet charged/collected as of audit period.

5. The project Manager assigned for the said 10 MVA Power Substation project was fully paid of his professional fee without completion of the project.

6. The acquired 681 units of GE Class 200 Kwh meters from Sharp Electrical Supply, Inc. were not compatible with the coop’s line to ground system. As of audit period, inventory of this item was 679 units.

7. The coop did not avail of the suppliers’ offer of 12-equal monthly payments for its procurement of 1,600 units of KWH Meters per P.O. #0811 of October 23, 2008, instead, full payments of P1,278,400 was made on December 18,2008.

8. Unplanned purchases of lots.

9. Explicit approval from NEA was not sought in the implementation of the maximum rate salary adjustment to employees thereby exceeding its approval budget.

10. Inconsistent schedule of kwh meter readings.

NEA HAS FOUND OUT THE THERE EXCESS OF SUBSIDY FUND REALIGNMENT IS WITH BOD RESOLUTION.

The purchases has no public biddings, and if thre is any, the quotations is below three (3) and the coop Guidelines for Procurement is not strictly implemented

Requisitioning of supplies and materials are not based on coop’s requirement. NEA recommends the negogiation with suppliers for the remaining unsuable items

Capital expenditures is not based on NEA approved ICPM to ensure that limited resources are disbursed according to prioritization of projects. NEA audit also recommends the maximization of cost of money and avoid lost opportunities such as availing the 12-month payment instead of paying the full amount of the item purchased. (This maybe because of the persistent issue of SOP)

Diligence is not observed by the warehouseman who accept delivered materials not in accordance with specifications, terms of payment are not always provided for in the Purchase Order and previous PO’s are not attached in the processing of payment

The audit also found that the priority of operations is not the utmost concern in acquiring assets and there is lack of proper study in capital investment.

Benefits and allowances are with resolutions NOT approved by NEA. Expenditure for the Extension for the implementation of the People Empowerment allowance are done WITHOUT explicit approval of NEA and no required report and review by Presidential Adviser of Rural Electrification. (The management selectively organized the member-consumers to give imprimatur to management and BOD shenanigans during General Membership Assemblies). This is reviewed by the Presidential Adviser on Rural Electrification under Gloria Macapagal Arroyo. The DIVIDE AND RULE TACTIC covered the BOD front, employees front and the member-consumers front. They referred to this as People Empowerment, but it most unbecoming and violative of the principle of subsidiarity and solidarity. There is no check and balance in the BOD-management relation because any independent-minded BOD member is targeted for expulsion using the fund for people empowerment, such as the case of Directors Santoninio, Adovino and Paciente. The management of Mr. Masongsong used his brand of people power in his bid to run as party-list congressman under the patronage of Mr. Francisco Silva, Adviser of Gloria Arroyo. Mr. Masongsong is a Francisco Silva Leadership Awardee.

There is no explicit NEA approval on budget for salary readjustment

KWH reading is not consistently conducted, including information dissemination causing complaint in readjustment. Study on BMCEC as collectors must be study.

Incentives, salary adjustment and professional fees for various cases are not provided in approved budget

Transactions were post audited when ERMG took control.

The coop has pending case of EXCESSIVE assessment of real property tax from 2005-2007 in the province amounting to 12.5 millions. (TheBUSECO was able to have a court ordered compromise with the province. But the Raal Taxes in the city and municipalities are also not yet settled).   

2. TECHNICAL AUDIT

1. The 10 MVA substation transformer in Aglayan, Malaybalay has exceeded the maximum tolerable loading.

2. Primary protective device of the substation transformer were not yet compliant with the GRID Code. Installed substation transformer has not undergone preventives maintenance.

3. Power factor of Transco metering No. 2 is quite low at 68% serving ECA Mining.

4. Meter shop of the coop is not compliant with the requirement of the ERC.

5. Testing of the class 200, 32i43, single phase kwh meter installed at the unmanned of communication equipment of Digitel Mobile Philippines located in Manolo Fortich revealed there is a potential difference of 190 volts between the meter casing and ground connection.

6. There were installed kwh meters that have no terminal seals and prone to pilferages if not corrected. As of 30 September 2009, there are 29 consumers with stopped kwh meters and billing is based on average consumption.

7. Procurement of 681 pieces of class 200, 3 wire, single phase kwh meters that are not compatible with the EC system and remain idle at the warehouse.

Defective cooling fan in 10MVA transformer is not repaired and there is no annual preventive maintenance. No identification of consumers connected in every feeder line to correct system loss.

Delay in the testing and correction of meter of Digitel Mobile Philippines. No compliance of ERC meter shop. Not all meters are with seals.

There is wrong delivery of specified materials and the coop should return the wrong items to suppliers. (This is another opportunity for corruption)

3. INSTITUTIONAL AUDIT

1. The reorganization was effected in August 2007 and amendments were made in November 2008 including increasing the approved plantilla positions from 187 and 210.

2. The positions of the Institutional Services Department (ISD) Manager and that of the Human Resources Division Chief are both vacant.

3. Performance evaluation is not being conducted regularly.

4. No coop policy on longevity pay that was granted to selected employees which caused uproar from those who were not given the pay.

5. The coop having employees on probationary basis beyond the mandated six-month period in violation of coop policy on hiring.

6. The Management has imposed penalties on erring employees, not taking into consideration the recommendations of the Investigation/Fact Finding Committee (IFFC).

7. There are many stopped meters some of which were reported 5 or 6 months ago but were not yet replaced.

8. Some coop policies are not being strictly implemented.

9. A few employees have outstanding power bills.

Management has not filled up vacant position ISD abd HRDChief.

BUSECO HAS Functional Chart job description but not every position contains job summary, duties, responsibilities and QUALIFICATION, when the coop reorganization as submitted to NEA is aimed at:

1.  PUTTING THE RIGHT PERSON TO THE RIGHT POSITION

2.  PROFESSIONALIZE EMPLOYEES/WORKFORCE

THERE ARE EMPLOYEES HOLDING SUPERVISORY POSITIONS WITHOUT QUALIFICATION:

A.  EVA PELAE designated Branch Manager

B.  Juancho Chiong designated Branch Manager

C.  Artemio Omapas

D.  Urbano Talibong

E.  Eleazar Boter

F.  Wilfredo Hansol

G.  Joel anghiron

H.  Raul Chong

I.  Sabas Ragandang

J.  Three (3) Leadmen

No regular performance evaluation. On July 2009 the longevity pay is implemented without policy and BOD resolution.

201 files not updated and no central/general file of employees appointment and job description. (It has been rumored that fake academic diplomas and certificates from fake schools are prevalent in BUSECO)

The numerous pending labor cases testify the mismanagement of Mr. Masongsong and causing financial loss to the coop, such as the cases of:

A.  JUN FLORES

B.  JOEL URBINA

C.  HENRIETA URBINA

D.  ETC.

The Retirement Policy of the coop has no NEA approval as per NEA MEMO No. 2005-001.

The audit found out the demoralization among employees due to the oral reprimand meted out by Mr. Masongsong.

The Independent Fact Finding Committee recommendations on employees administrative cases are not implementated by management.

The appropriatenenss of the Baoard as Appeal Committee is recommended for study.

No regular conduct of PMES.

Non-performing assets are disposed without following NEA guidelines

There are employees who have pending bills

Lots acquired by BUSECO are still untitled

BUSECO is involved in at least eight (8) cases pending before the various courts of law and is very costly to the coop. ( This is exclusive of cases filed after 2009.

11 Jan 2011 Director Oliver Abella Aldovino writes a letter to the BOD President Charlie Castillanes objecting to the policy of using the non-bonded BMCEC as bill collectors, citing as grounds, the absence of MOA, collection is already part of the supply charges in the unbundled rates approved by ERC and it is double charging and the provision of Magna Carta.

04 Feb 2011 Complaint in ERC is filed on IMPOSITION OF CHARGES NOT APPROVED BY ERC

14 Mar 2011       BUSECO BOD passes Res. No 11-03-12 requesting NEA to approve an increase of the salary of GM masosngsong frm P60,000 to P80,000 excusive of other benenfits

                  BUSECO BOD passes Res. No 11-13-128 granting a token to out-going BODs who serve three (3) term equivalent to one month per diem for every year of service

                 

BOD BUSECO passes Res. 11-03-129 requesting NEA to approve grant performance incentives of P20,000 to all officers and P10,000 to all employees regardless of status

                  BOD BUSECO passes Res. No 11-03-132 granting networking monthly allowance of P5,000 to members of the BOD

                  BOD enjoy rice allowance, medical and uniform allowances anniversary bonus, death assistance, cellcard allowance, gasoline allowance and other incentives

23 Mar 2011       Energy Regulatory Commission ordered BUSECO to answer ERC Case No. 2011-025MC for IMPOSITION OF OTHER CHARGES WITHOUT PRIOR APPROVAL FROM COMMISSION

 Edgardo R. Masongsong

General Manager

Manolo Fortich Bukidnon Branch