Misamis Oriental to probe power coop P101-M loan-A A +A
Tuesday, June 24, 2014
A MISAMIS Oriental provincial official is urging the province to investigate an alleged multi-million peso loan of an electric cooperative.
Misamis Oriental vice-governor Joey Pelaez asked the Sangguniang Panlalawigan Monday to investigate the unapproved use of the Misamis Oriental II Electric Cooperative, Inc. (Moresco-2) of P101 million fund for its infrastructure project.
The fund stemmed from the petition of Moresco-2 to finance its proposed 27-kilometer sub-transmission project which will be constructed from Balingasag to Sugbongcogon towns.
Pelaez questioned the loan of the electric cooperative for some reasons. "Why are they planning to erect 69 sub-transmission lines anew knowing full well of the existing lines that can be shared with Camiguin Electric Cooperative at a lower cost," he said.
According to Pelaez, the said loan was disapproved by the Energy Regulatory Commission (ERC) in November 2012 but the management of Moresco-2 had commenced already the project.
In November 2011, National Electrification Authority (NEA) approved the loan giving Moresco-2 P51 million in April 2012 and P50 million in January 2013.
"The payment of the said loan will cause irreparable and serious damage to the financial situation of Moresco-2 considering that the loan amount cannot be passed on to the consumers," Pelaez said.
Pelaez considered this action of Moresco-2 as “reckless.”
"This irresponsible action is indicative of serious mismanagement," he added.
The Sangguniang Panlalawigan has yet to call the management of Moresco-2 for investigation.
Published in the Sun.Star Cagayan de Oro newspaper on June 24, 2014.