Monday, September 01, 2008 Beneco management bows to board wishes By Jane Cadalig
THE Benguet Electric Cooperative (Beneco) management has bowed to the board decision halting the purchase of new vehicles whose cost will be shouldered on accompany-employee sharing scheme.
With a unanimous vote against the proposed car plan by the 11-member board of directors, the power cooperative is left with no choice but to acknowledge the decision.
"We have to accept and respect the board's decision even if such is not based on quantifiable and objective financial and economic analysis which would help reduce Beneco's cost of operations," Beneco general manager Gerardo Verzosa said.
The Beneco board junked the proposed car plan, which seeks to purchase brand new vehicles for employees occupying managerial and supervisory positions.
The proposal earned objections from some consumer welfare advocates and local officials on claims the plan is only beneficial to the employees and not Beneco members in general, even with management's explanation the plan, which sought to implement a 70-30 sharing scheme in the mode of payment, would save about P8.9 million in favor of the utility.
In denying the proposal, the Beneco board cited the objections raised chiefly by the National Association of Electric Consumers for Reforms or Nasecore and the Benguet Provincial Board.
Verzosa regarded the decision a comical move. "It is funny because the motorcycle plan, which is the same as the car plan was not disapproved," he said.
"They (Beneco board members) rejected it (car plan) not because it does not make sense but simply because there are those who are opposed to it. The board completely disregarded the fact the car plan will mean lesser costs to Beneco compared to the existing set-up where the company vehicle is provided by Beneco, including fuel and maintenance expenses," Verzosa added.
The proposed car plan intended to grant vehicles worth P1.5 million to managers and P1 million for supervisors. If implemented, the beneficiaries will shoulder 30 percent of the car cost, while the electric firm will shoulder 70 percent.
The Beneco management claimed this would cost the company more than P15.9 million, which is much lower than the P24.9 million the utility will spend if it assumes the entire purchase.
