Tuesday, November 20, 2007 Cebeco denies extorting P2M from Korean group
IT wasn’t extortion when the Cebu 2 Electric Cooperative Inc. (Cebeco 2) asked for P2 million from a Korean group in Medellin.
Cebeco 2 General Manager Peter Alan Señeres said it was for the electrification of the Korean Retirement Village project.
The Provincial Board (PB) closed the matter yesterday during its regular session, calling the grilling of Señeres a waste of time.
“It’s unfair. We don’t appear very prudent and we did not spend time wisely on the extortion issue,” said PB Member Victor Maambong in closing the investigation on Cebeco 2.
Señeres was invited by the board after Medellin Mayor Ricardo Ramirez complained that Cebeco 2 asked for P2 million from those behind the retirement village.
Board members said, though, that they were satisfied with Señeres’ explanation.
Reduced
Ramirez was unable to attend the session. It was PB Member Jose Ma. Gastardo who explained the issue. He was present when Ramirez complained to the governor about the alleged extortion by Cebeco of the Korean group.
While the Korean Retirement Village was first asked P2 million, the amount was later reduced to just P1.3 million and finally cut down to just P547,544.60.
Señeres said that when Cebeco 2 first surveyed the site of the retirement village for electrification, the cost estimate amounted to P2 million.
But further ocular inspections revealed that the lines that will be set up for the Korean village can be used by other consumers. This is when Cebeco 2 lowered its price to just P1.3 million.
The Koreans though asked for a further reduction. Señeres said Cebeco 2 suggested that the Koreans buy their own distribution transformer and other needed items.
Documented
When Maambong asked, Señeres confirmed that all transactions covering the reduction of prices had the knowledge of the Cebeco board and everything had been documented.
PB Member Agnes Magpale then asked if this is a common practice that transformers are paid for by the client and if the client is entitled to a refund if other consumers also use it.
Señeres explained that if there are at least 10 more consumers using it, then the client can have a refund.
PB Member Joven Mondigo then asked if Ramirez was aware of the reduction of prices, considering that it was the mayor who complained.
“I don’t think he knew because when he came to the office it was not yet decided, the last cost estimate was sent to the Korean Retirement Village on Sept. 10,” said Señeres.
PB Member Juan Bolo then asked if it was true that Cebeco denies connection to remote areas where there are only a few consumers.
“Cebeco is mandated to electrify even those remote sitios. Considering Cebeco’s restricted funds and number of requests, we cannot oblige all. We prioritize the number of users,” said Señeres.
Vice Gov. Gregorio Sanchez was concerned over Cebeco’s disconnection schedules asking if it was a true that only after a few days of non-payment, the cooperative cuts off the electricity of consumer. Señeres confirmed this, saying that they disconnect after nine days.
But Sanchez said he heard a different story.
“Are you sure? Can you check the industries in Bogo City? Just check your records,” said Sanchez. He said he heard that some companies in the city have not paid for six months to a year, yet they continue to get Cebeco electricity.
Non-stock, non-profit
“You will just cut off these poor people yet these big businessmen can go on for a year,” Sanchez complained. Señeres promised to check on the report.
The board then discussed the nature of Cebeco as an organization. Señeres said it is a “non-stock, non-profit” company, which is why they don’t give dividends to consumers. Cebeco may be a cooperative by name, but it is technically a private organization.
But Maambong disagreed saying that Cebeco should consult its lawyer because calling itself a “non-profit” company is a misnomer. (JGA)
