National Electrification Administration (NEA) Administrator Edgardo Masongsong has refuted claims by a supposed consumer group that he had abused his authority when he issued memoranda increasing the salaries and retirement benefits of general managers (GMs) of electric cooperatives (ECs), stressing the issuances were all aboveboard and that the accusations were part of a “malicious scheme” aimed at destroying his reputation.
Masongsong denied that he had abused his authority when he issued two memorandum circulars—NEA Memorandum No. 2018-003 dated January 17, 2018, and NEA Memorandum No. 2019-008 dated January 24, 2019—that improved the wages and benefits of EC GMs all over the country, emphasizing that the said issuances were issued and implemented upon approval by the NEA Board of Administrators (BOA) through resolutions issued during regular board meetings, and were published in the UP Law Center, Office of the National Administrative Register.
“Part of this oversight function is to ensure that the ECs meet operational and financial standards and take preventive measures.”
In a letter to Department of Energy Secretary Alfonso Cusi, the National Association of Electricity Consumers for Reforms, Inc. (NASECORE) sought the removal of the NEA administrator for the alleged abuse of power based on the issuance of the two memoranda.
Contrary to the allegations, records show that NEA Memorandum No. 2018-003 titled “Revised Retirement Plan for General Managers of Electric Cooperatives” was approved by the NEA BOA through Resolution No. 8 in its meeting on January 17, 2018, and was published in the UP Law Center on January 24, 2018.
NEA Memorandum No. 2019-008 titled “Revised Salary Scale for Electric Cooperative General Managers,” on the other hand, was approved by the NEA BOA through Resolution No. 12 in its meeting on January 24, 2019, and was published in the UP Law Center on January 30, 2019.
Masongsong said the allegation that he had abused his authority “is nothing more than a malicious scheme designed to portray me in a bad light.”
“It is bereft of any basis in fact and in law—a hatchet job by desperate people who are part of an organization that has vested interests inimical and prejudicial to the industry,” the NEA chief added.
“NEA Memorandum No. 2019-008 does not only encourage GMs to perform better, it will likewise further the interests of member-consumers.”
He also pointed out that under Presidential Decree No. 269, as amended, the NEA has supervision and control over the management and operations of ECs to ensure their economic, technical, and financial viability.
“Part of this oversight function is to ensure that the ECs meet operational and financial standards and take preventive measures, including the development of standards and protocols for the efficient operation of the ECs,” explained Masongsong.
“The task of continuously monitoring the operations of ECs, including the setting of salary standards of the general managers and employees lies with the management of NEA,” added the former legislator.
According to Masongsong, the increases in the salaries of the EC general managers also pale in comparison to the executives of the Manila Electric Company (Meralco), as highlighted by NASECORE in its letter to the Energy secretary.
“The highest salary adjustment for an EC general manager, which shall be secured with all the efforts to further improve the EC performance, is far below the salaries enjoyed by Meralco executives. To compare the same, as propounded by NASECORE, is to highlight the disparity in figures,” the administrator said.
Masongsong also emphasized that the salary adjustments of GMs are not automatically given, contrary to the allegations of NASECORE, and these are only granted when general managers meet the required conditions stated in Section V of the NEA Memorandum No. 2019-008.
“The desire to be granted a salary adjustment under NEA Memorandum No. 2019-008 does not only encourage GMs to perform better, it will likewise further the interests of member-consumers with improved electricity services, and in the long-runt, mechanisms for the reduction of electricity rates and lower system loss,” the NEA chief said.