The House Committee on Energy chaired by Marinduque Representative Lord Allan Jay Velasco and Committee on North Luzon Growth Quadrangle (NLGQ) chaired by Ilocos Norte Representative Angelo Marcos Barba resumed its discussion of controversies involving Isabela Electric Cooperative 1 (ISELCO 1) and Isabela Electric Cooperative 2 (ISELCO 2).
The meeting was held pursuant to House Resolutions (HRs) 333 and 732 filed by Isabela Representative Faustino Dy.
HR 333 urges the National Electrification Administration (NEA) to exercise its mandate under RA 10531, also known as the NEA Reform Act of 2013, to promote the welfare of the people of the Province of Isabela against the dismal performance of the Isabela Electric Cooperative 1 (ISELCO 1) and Isabela Electric Cooperative 2 (ISELCO 2). HR 732 on the other hand, seeks an investigation into of ISELCO 1’s alleged defiance of legal orders as well as irregularities in its operations.
Velasco cited 1) ISELCO 1’s defiance of the appointment of an acting general manager; and 2) ISELCO 1’S loss of P18 million due to the closure of one its depository banks; and 3) the need to review and re-evaluate NEA’s policies in relation to electric cooperatives management, as among the issues and problems raised in the last joint meeting.
In a statement read by Representative Maximo Dalog, Barba said, “I put forward the collective role of NEA, ERC, and the energy cooperatives in the infrastructure development in our country, especially in remote areas. Undeniably, the road to the fulfillment is a great challenge to the energy sector and our electric cooperatives, as well as each of us has a part to carry through and align our actions towards the goal of his Excellency President Ferdinand Marcos Jr. to transition to renewable energy and energy access for more Filipinos.”
Dalog presided over the Committee on North Luzon Growth Quadrangle.
Dy questioned former ISELCO 1 general manager (GM) Virgilio Montano qualification for term extension.
The veteran legislator said that under a NEA memorandum issued in January 2015, the Board of Directors may extend an officer’s term provided that: 1) one has been recognized by NEA for his significant contributions and role in rural electrification program 2) attained triple A rating during the last three years 3) has not been found guilty of any administrative offense by the NEA and 4) has no adverse audit findings.
“Montano was found guilty of an administrative offense.”
According to the seasoned lawmaker, Montano was found guilty of an administrative offense per the NEA.
Dy also said ISELCO 2 must be made to explain about its net loss of about P28 million in 2021 and the radical decrease in its share capital from P165.051 million to just P10.857 million.
He also asked Montano why ISELCO 1’s contracts entered with providers were renewed or continued despite the latter being unable to deliver and having overpriced contract amounts.
“Yung situation ni GM Montano doesn’t really sit well with me. Why? Because one, you are retired. Your retirement pay was already computed. You received your retirement pay (and) you filed for an extension. Tama and you were extended,” Velasco said.
“Your retirement pay for the latter part, should have been computed not with 43 years but only five years because you had already received P15 million based on the first retirement pay computation.”
“So the way we see it, instances like this, your retirement pay for the latter part, should have been computed not with 43 years but only five years because you had already received P15 million based on the first retirement pay computation, and then all of a sudden you were extended and then you were appointed, then the base was computed based on your present salary received, P34 million. Parang something is wrong there, sorry to say,” he added.
ISELCO 1 Finance Services Department Manager Leizza Niguidula disclosed that Montano’s retirement package for 38 years of service amounted to P15.529 million. Montano’s second retirement package, when he retired in January 2022, amounted to P34.5 million.
