The House Committee on Good Government and Public Accountability, chaired by Manila Representative Joel Chua, opened an inquiry into the financial situation of the Zamboanga City Electric Cooperative (ZAMCELCO).
In his privilege speech recently, Majority Leader Mannix Dalipe highlighted ZAMCELCO’s financial woes, including P4.6 billion in liabilities, 22% systems loss and monthly losses of about P60 to 70 million.
Chua said the hearing aims to investigate, in aid of legislation, any potential errors and accountability in the investment management contract (IMC) process to prevent similar issues with electric cooperatives in the future.
“The panel will assess whether to terminate the IMC or pursue other solutions without impacting ZAMCELCO’s consumer-members.”
Cagayan Rep. Joseph Lara emphasized the need to examine if the actions of executives are compliant with IMC regulations and that the panel will assess whether to terminate the IMC or pursue other solutions without impacting ZAMCELCO’s consumer-members.
National Electrification Administration (NEA) Administrator Antonio Mariano Almeda attributed ZAMCELCO’s losses to outdated posts, cables and overheated substations.
Almeda also noted the need to address non-technical system losses, such electricity pilferage.
According to him, upgrading the cooperative’s facilities will require P500 million.
“There is a possible existence of an “alaga system,” where ZAMCELCO linemen and supervisors would allow some large companies to pilfer electricity.”
PHILRECA Party-list Representative Presley De Jesus mentioned the possible existence of an “alaga system,” where ZAMCELCO linemen and supervisors would allow some large companies to pilfer electricity, and pay significantly less than their actual bills.
Committee vice chairperson and Antipolo City Representative Romeo Acop revealed the existence of a second contract, one dated April 2018 and another dated August 2018, which ZAMCELCO representatives were unaware of.
“Nag-infuse ang isang bagong company ng P2.5 billion to fix ZAMCELCO. But unfortunately, based on this hearing, not even P1 was used to fix the cancer which is system loss of ZAMCELCO. Anong lumabas? Kasi wala silang track record, wala silang experience in managing a distribution utility,” Dalipe remarked.
APEC Party-list Representative Sergio Dagooc commented that ZAMCELCO and the new company Crown-Desco should have prioritized addressing the system loss, including electricity pilferage.
“Noong pinasok ‘yong IMC, dapat ‘yong systems loss ang na-address kasi lahat ng mga utang na ‘yan is because of the systems loss. Kasi kung within the level ‘yong systems loss nila, mababayaran nila ‘yong mga power supplier at kung anu-ano. Kaya mali po ‘yong priority sa pera,” Dagooc said.
Iloilo Representative Janette Garin asked for an itemized list detailing how the P2.5 billion cash infusion from Crown-Desco has been invested from 2018 to the present.
Atty. Rommel Agan, Crown-Desco chief management officer, admitted to the panel that none of the investment was used to address ZAMCELCO’s system loss issue.
