Cease and desist order vs Daneco

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Tuesday, July 29, 2014


THE National Electrification Administration (NEA) has implemented a cease and desist order against the Cooperative Development Authority (CDA) faction of the Davao del Norte Electric Cooperative (Daneco) on Monday.

"The NEA through their implementing officers from Manila implemented a cease and desist order that was issued last December 13, 2013 pursuant to Republic Act. No. 10531 and based on the injunction they got from the Court of Appeals," said lawyer Jeorge Rapista, Daneco-NEA legal counsel, in a phone interview yesterday with Sun.Star Davao.

Daneco-CDA was ordered to cease their operations and to turn over all the equipment, tools, management, and other things to the NEA management.

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"The cease and desist order is not yet fully implemented. It is not until the operations of Daneco-CDA reach a 100 percent stop that we can say that it is fully implemented," he pointed out.

Rapista clarified that the implementation of the cease and desist order, when and how long it will be implemented, is the call of NEA and not Daneco.

He said though the order was issued last year, Daneco-CDA refused to comply with it. This resulted to the forced closure of Daneco-CDA's offices and collections in order to stop their operations.

"There were [also] no turnover of funds in the past two years eventhough they (Daneco-CDA) were ordered to. Na alarm si Energy Secretary Carlos Jericho L. Petilla kay nangayo naman ug clearance ang Power Sector Assets and Liabilities Management Corporation (Psalm) na putlan na ang Daneco if dili kabayad sa power obligations so nag take action na ang national government," he added.

Rapista said one of the things Daneco will now be focusing on is on how to comply with their obligations to their power suppliers. During Sec. Petilla's visit to Davao City for a dialogue between the two factions in August last year, he barred that Daneco has a debt of P600 million and would increase by P100 million every month if the fight between the two factions don't end or reach a proper decision.

Another matter they have to settle after the implementation of the cease and desist order is on how they will go about the consumers who paid to Daneco-CDA.

Rapista pointed out that the transactions done through Daneco-CDA are "illegal and unauthorized" and their receipts were "not authorized by the Bureau of Internal Revenues(BIR)."

He said handling this will not be easy since there is a need that the collections of Daneco-CDA be remitted to them and it will also be difficult to determine if the receipt issued by Daneco-CDA can be acknowledged or not.

Rapista said they have already informed the consumers way back in October 2012 that they will not be horing payments done through Daneco-CDA.

He said they will continue to conduct massive information campaigns in informing their consumers of the situation and that they only need to pay to the Daneco NEA management and not the Daneco CDA management.

Published in the Sun.Star Davao newspaper on July 30, 2014.

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