Archive for Abenir Labja

What if the illegitimate Daneco-CDA is outlawed?

Posted in Uncategorized with tags , , , on September 13, 2013 by cha monforte

aug 22-28, 2013


By Cha Monforte

That’s the big question lingering in the minds of those innocent member-consumers who have paid to illegitimate Daneco-CDA. In the midst of the fight which is legal or not- Daneco-NEA or Daneco-CDA?- they chose to pay to the latter because of the low electricity rates it bills all because it does not include in its billing the penalties, surcharges, taxes and other rightful charges.

It appears now that when they paid to the illegitimate  Daneco-CDA they were paying the bill that has incorporated violations of taxation, ERC, NEA and BIR laws and rules, and hence unwitting member-consumers hoodwinked by the scheme to sway more members to the side of the illegitimate Daneco-CDA were innocently dragged by the ring leaders of coop putschists into breaking laws.

The problem in their payments to the illegitimate Daneco-CDA is that supposed power bill payments do not go for the payment of power obligations to PSALM, Therma Marine and NGCP. The so-called Daneco-CDA board chairman Abenir Labja nonetheless claimed during the Sangguniang Panlalawigan session last June 10 that for once it did pay NGCP, and so it paid only for once for the cost of power transmission, not of power supply.

It’s all but the Daneco-NEA that has been paying for the power supply obligations since the group dismissed by NEA for abuse of authority staged a sort of coup at the pretext of converting into stock cooperative July last year. Where have all the Daneco-CDA’s collections gone even as they claimed in their own press conferences and releases they have already audited financial statements, which particulars were not leaked to the media? Publish it and we’ll scrutinize.

The other big problem in the illegitimate faction’s carting away of Daneco’s functions, chief of these is the collection, is the generation of additional costs and burdens  such as the fat salaries of its management and consultants, honoraria and allowances of its board of directors, expenditures in the creation of idle barangay collection centers including the security guards and manpower manning these, the high costs of continuing suits and lawyers’ fees, the expenditures for the questioned series of referendum and general assemblies, expenses for their propaganda and media mileage and the untold costs to all those pro-Daneco-CDA campaigning in the barangays. They have less if not none for the power maintenance and capital investment expenditures?  If Labja claimed in that SP session that they averaged to collect P10-11 million a month, did most of this income go only to these activities that try to break, destroy and swallow up the mother legitimate entity, the Daneco-NEA leaving them so scarce to pay for its power supply obligations? The payments of the innocents did not go to the coffers of real Daneco (for now, comparatively called as Daneco-NEA).

What if the Court of Appeals rules to outlaw the Daneco-CDA faction? Come now the corollary questions:

1. Will those innocents who paid to Daneco-CDA  charge the coop putschist ring leaders to be responsible for all what they paid lesser and for the shortages that covered for the unbilled taxes, penalties and other due and rightful charges as all their payments to the Daneco-CDA are treated by the Daneco-NEA as still all payables?

2. If the payments of the innocents are considered, for consideration’s sake, what if the Daneco-CDA has actually charged basic and minimum rates lesser than what is charged by Daneco-NEA as approved by the ERC (that’s not counting the penalties, etc)?

3. Will the Daneco-NEA and NEA allow that all those expenses incurred by Daneco-CDA to break, destroy and swallow the mother unit up as just quits while their coop putschist ring leaders go scotfree and the former will just move on as one revived Daneco for peace’s sake, charged to experience, as long as the latter is dissolved?

The legitimacy of the Daneco-CDA has long been questioned while it has only blinking color of legality as when it first got CDA registration, that was subsequently temporarily suspended and then surprisingly lifted by one person only, the CDA chairman, even while there’s an existing Writ of Preliminary Injunction from the Court of Appeals, from where the temporary suspension of the CDA registration was premised on. Second, when it got an either-or ruling from RTC Branch 1 Judge Virginia Tehano-Ang, who – my momma- gave member-consumers the option where they would pay their electric bills to any of the two fighting factions, and hey, it’s just OK pending the resolution on the issue of legality and CDA registration. Third, when the good judge again ordered the BIR to give to her sala the BIR-authorized OR to be distributed to both even while the CA already ordered her to no longer make any further proceeding on six special proceeding cases relating Daneco to avoid more confusions and complications.

Evidently, Daneco-CDA’s claims of legitimacy can easily be shattered by the fact that it is not the entity recognized by the ERC (Energy Regulatory Commission) and its electric rates have not been approved by the ERC in the first place. Recently, the BIR vouched that it is only recognizing Daneco-NEA and not the so-called Daneco-CDA in the matter of printing and issuing official receipts. So Judge Ang has to cite BIR for contempt now? BIR’s affirmation followed the earlier recognition of other agencies such as the depository banks, the LGUs and all other national government agencies, which pay their electric bills to which else but Daneco-NEA. Daneco-CDA might have blinking color of legality, but it is not legitimate as it is not legitimately recognized by authorities.

More importantly, Daneco-CDA is not recognized by   the true father of electric coops nationwide- the NEA (National Electrification Administration), which is now given more supervisory, disciplinary and step-in powers after the Implementing Rules and Regulations of the  recent National Electrification Administration Reform Act of 2013 (Republic Act 10531), which amended the NEA Charter (Presidential Decree 269), was issued last week. Middle this month the IRR would become effective and we’ll expect a NEA takeover anytime soonest to One Daneco which has been ailed by its separatist part.


TAGS & HASHES: Congrats to Tagum City Mayor Allan Rellon for materializing the long-clamoured indigenous representation to the city sanggunian in the first monthsary of his new administration…. Last August 1, Datu Rudy Onlos, half Mansaka and half Mandaya in blood, took oath as the newest member of the City Council. It all takes a political will to do it. It was a historic first monthsary act of PDPian Mayor Rellon…. It appears that Gov. RDR pulled a fast one to the PCL election result when he caused for the entry of Datu Pandian to the SP. He put one more IP vote for the LP to still edge out the Busog Baryohanon’s 1 more PCL vote.

Davao Norte SP inquires status of two fighting electric coops

Posted in Uncategorized with tags , , , , , , on June 15, 2013 by cha monforte
june 12, 2013By Cha Monforte, Rural Urban NewsThe Sangguniang Panlalawigan of Davao del Norte has managed to have the two sets of board of directors and management officials of two conflicting electric cooperatives see eye to eye each other and answer issues during its regular session Monday.

Presiding officer Vice Governor Victorio Suaybaguio Jr said during the session’s question hour that all the legislative department and Governor Rodolfo del Rosario wanted was to know the real situation of the Davao del Norte Electric Cooperative (Daneco) and find solution to the problem for the good of the member-consumers in Davao del Norte and Compostela Valley.
Daneco has been wracked with two factions, comparatively called now as Daneco- NEA (National Electrification Administration) and Daneco-CDA (Cooperative Development Authority) fighting it out in courts and in their separate operations and collection activities for legitimacy and dominance for more than a year now.
“We are the one that is legal for being under the regulatory and disciplinary powers of NEA,” said Gregorio Ybanez, chairman of the board of directors of Daneco-NEA.
He ruled out suggestions of several board members for a compromise and instead charged Daneco-CDA’s officials to account for the millions of collection they made and remit these to Daneco-NEA.
He told SP members that Daneco-CDA should show their audited financial statements and should be liable for the acts they are continuing to make that create confusion to the people and exact huge damage to Daneco.
Ybanez said that Daneco-CDA is not paying its power obligations and it is Daneco-NEA that has been paying power suppliers which include PSALM, NGCP and Therma Marine.
Also, Daneco-NEA OIC general manager Benedicto Ongking informed officials in session that as of June 2013 their group was able to pay P437.93 million to the power generator PSALM but there is still a balance of the total payable amounting to P271.92 million.
From October 2012 to June 2013, Daneco as a whole had a total payable to PSALM amounting to P293.39 million, which was already restructured by PSALM to P274.99 with an interest of P18.4 million payable in three years, Ongking said.
“We can still pay power suppliers but not on due date, and (for this) we are incurring interest,” he said.
Ongking said that before the crisis came up Daneco used to have 95 percent collection efficiency rating in 2012.
But when the dispute with Daneco-CDA started, he added, the collection efficiency rating was down to 51 percent and further sank down to 42 percent in the succeeding months after typhoon Pablo, he said.
He bared that on the whole Daneco is saddled with P7.93 billion on total loans and obligations to power suppliers and various credit lines being amortized in various terms, about P5.5 billion of which is from PSALM.
“The financial requirement for these obligations stood at P209.98 million per month but our average cash collection was only P154.37 million, thus a deficit of P55.6 million, from August 2012 to November 2012,” he said.
Ybanez said that runaway interests that mount Daneco’s debt can be still be met head on if Daneco-CDA dissolves itself.
On the other hand, Abenir Labja, chairman of the board of directors of Daneco-CDA, told SP members that they would continue operating and asked Daneco-NEA officials for unity and reconciliation.
Asked by Board Member Shirley Aala if Daneco-CDA has been paying power supply obligations, he said that records showed that they paid P34.10 million to NGCP, a State-controlled firm in charge in the business of power grid and transmission.
As to Daneco-CDA’s collection, Labja said they are collecting an average of P10-11 million monthly, which “represents about 5.5 percent of Daneco’s total power consumption.”
He said the bulk of the balance of the collections “are still in the hands of the power consumers” treating those collected by Daneco-NEA as still receivables.
He said Daneco-CDA’s legality came up with the May 2012 referenda where member-consumers voted for a conversion of stock cooperative under CDA.
He said that the legality is given a boost when CDA lifted the temporary suspension of their CDA’s registration last May 31, 2013.
But Daneco-NEA legal counsel Jeorge Rapista said that the lifting is not yet final and executory as Daneco-NEA submitted its motion for reconsideration to CDA last week.
He said that the Writ of Preliminary Injunction issued by the Court of Appeals from which the CDA Commission en banc based its earlier decision to suspend Daneco-CDA’s registration “is still valid, effective and existing”.
While noting of the CDA’s “highly irregular” and confusing turnaround, the lawyer said that, “it is Daneco-NEA that has been recognized by all government agencies and power suppliers.”
The session ended up only with pleas from several board members for the two parties to mend ways and resolve, but no agreement nor consensus between the two parties was reached.
Earlier, Engr. Godofredo Guya, NEA project supervisor to Daneco-NEA, expressed apprehension that the “problem of having two factions claiming for legitimacy” might put Daneco in a further mess.
He feared that power suppliers might cut off power supplies to Daneco as a whole and bring blackouts to the two provinces if increasing payables to power supply obligations would not be arrested. He said that already the NGCP had sent a disconnection notice to Daneco last month.
Guya estimated the Daneco-CDA has eaten up about 35 percent in the power bill collections of the hitherto one Daneco entity.
He said that both NEA and the Energy Regulatory Commission (ERC), that fixes electric rates, only recognized Daneco-NEA and not Daneco-CDA.
Labja said that Daneco-CDA now is employing more than 174 personnel, fourteen of whom are regular employees who opted to stick it out with Daneco-CDA after it separated in July 2012. The faction hired some 160 job-order (JO) personnel.
Ybanez bared, on the other hand, that Daneco-CDA has 375 personnel, of whom more than 300 are old, original and regular employees, and the rest are JO personnel. (Rural Urban News/Cha Monforte)