DANECO-CDA execs poised to file syndicated estafa vs. DANECO-NEA execs

may 12, 2104

After finding out recently that the Davao del Norte Electric Cooperative (Daneco)–NEA has “no juridical personality” for not being registered with the Securities and Exchange Commission, officials of the competing Daneco-Cooperative Development Authority (Daneco-CDA) group said that they are now preparing to file a syndicated estafa suit against the rival group.

In a press conference Saturday, Daneco-CDA board chairman Engr. Albert Omega relayed that per certification they got from SEC Manila office dated May 2, 2014 “records of the Commission do not show that that the registration of Davao del Norte Electric Cooperative, Inc. as a corporation or as a partnership.”


“For that, nakaseguro gyod mi nga mo file gayod ug syndicated estafa sa ilaha (We’re sure we will file syndicated estafa case against them),” he said referring to the Daneco-NEA management and board officials.

“We will file syndicated estafa for their illegal collection as they have no legal basis to exist. They have no right in the first place. Many Daneco members will file for it,” he continued.

Omega said that as advised by their lawyers a syndicated estafa will be filed because Daneco-NEA officials “acted as a group without juridical personality.”

The copies of SEC certification that Omega gave to reporters was signed by Gerardo F. del Rosario, assistant director of SEC Corporate Filing and Records Division in behalf of SEC Director Ferdinand B. Sales.

On the other hand, Daneco-CDA OIC general manager Engr. Jerold Osorio said that the Daneco- NEA is neither registered with the CDA as it is their group that had registered the Daneco entity with the CDA under Registration. No. 920-11021778.

“So we are the legal one, and they (Daneco-NEA officials) should not insist. Because they continue collecting, they can be liable for syndicated estafa. We have already discussed the possibility of filing that case,” he added.

Osorio recalled that since Sept. 2013 their own collection of electricity bills from member-consumers sank as they temporarily stopped collecting “in compliance to the agreement and to respect” Energy Secretary Carlos Jericho Petilla who brokered for an agreement to end the Daneco’s woes of infighting between two electric cooperative groups that has lasted to almost three years now.

When they started collecting again after the agreement failed, Osorio added, the Daneco-CDA was saddled with financial difficulties due to low collection.

“Now our collection is increasing and a great number of members are returning to pay to us,” he said.

Omega also said that the agreement with Daneco–NEA first sought for confirmatory referendum supposed to be held on Feb. 16, 2013, and for the unification of two sets of board of directors and managements.

“But Daneco-NEA did not sign the memorandum of agreement, and instead they wanted the MOA turned into Memorandum of Understanding, which they still did not sign when it was done,” Omega claimed.

He charged that Daneco-NEA officials allegedly bluffed Petilla, the governors and mayors during the forging of agreement at the Waterfront Insular Hotel Davao by allegedly threatening that power supplier PSALM would soon disconnect power and put Daneco’s franchise in total darkness due to ballooning power debt obligations.

Omega said that, on the contrary, power suppliers could not arbitrarily cut power supplies to Daneco without Energy Regulation Commission(ERC) hearings.

Omega further claimed that at the recent the ERC was “not entertaining Daneco-NEA anymore as ERC wanted to deal only with only one Daneco.”

There was a cease and desist order (CDO) issued by NEA to Daneco-CDA last Dec. 13, 2013 to turn over the management and control of Daneco including all the vehicles and equipment but the latter filed a writ on prohibition and mandamus at the Court of Appeals Manila to stop the CDO and the confirmatory referendum . The mandamus case is still not decided at press time.

Daneco-NEA, too, objected the holding of the confirmatory referendum.

Stopping the operations of the Daneco-CDA has all been made in various legal actions of the Daneco-NEA with the support of NEA as its project supervisor since when the once single Daneco entity was ripped two factions apart in July 2012 in a hostile and divisive leadership row.

But Daneco-CDA remains operating as its CDA registration remains unrevoked although it was temporarily suspended by CDA in Sept. 2012 due to Daneco-NEA petition. But CDA lifted the suspension of registration in May 2013.

At present, the two rival groups are still on cat-and-mouse affair in reconnecting meters what the other has disconnected from delinquent member-consumers while they compete to collect from among the more than 150,000 member-consumers in the provinces of Davao del Norte and Compostela Valley including the Samal Island.

Management officials and members of Daneco-NEA board of directors were present and showed their unity during the press conference held at Philippine Cooperative Union (PCU) compound at Magdum, Tagum City, where the Daneco-CDA holds office.

“We decided di na gyod mi moundang, and we believe we can get justice from the court as we already got several favorable court decisions,” Omega declared. (Rural Urban News/Cha Monforte)


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