SP leaves conversion to coop groups as committee urges registration with CDA
Last month's "conversion talks" of key players in Iloilo's electric cooperatives has now been resolved by the Committee on Cooperatives and Other Non-Governmental Organization.
Chaired by Third District Board Member Mariano Malones, the committee focused on a request to have Iloilo's electric cooperatives register with the Cooperative Development Authority (CDA). To note, majority of the current registration in the province and Western Visayas region is with the National Electrification Administratioin (NEA).
Yet after hearing arguments for and against it, the committee resolved to pass a Resolution, "urging all electric cooperatives operating in the province of Iloilo to register with the CDA."
And "urging" only too since as the committee noted, pursuant to the Electric Power Industry Reform Act (Epira), the option is for the electric cooperatives themselves to decide on the matter. Convert either into a stock cooperative under the CDA or stock corporation under the Corporate Code – one basic provision recognized to be outside the powers of the Iloilo Sanggunian Panlalawigan (SP).
"After hearing all sides on the issue… and noting that it has no power to force or oblige the electric cooperatives to register with the CDA, (the committee) decided to propose a resolution urging all electric cooperatives operating in the province of Iloilo to register with the CDA," excerpts of the report went as obtained by The News Today (TNT).
The report contained in Committee Report No. 2008-02 will be presented for the SP body's adoption in today's regular session.
With officers and members of the Iloilo Provincial Cooperative Development Council as among the resource persons, government officials and electric cooperative officials present, a question was posed.
What is more beneficial for the Ilonggo public – continued registration of electric cooperatives with the NEA or transfer to the CDA?
Iloilo consumers are currently under three electric cooperatives namely Iloilo Electric Cooperative (ILECO) I, ILECO II and ILECO III. ILECO I has the biggest in member-consumers placed at over 92,000 coming from all seven Southern Iloilo towns and eight others from Central part of the province.
Lawyer Salvador Cabaluna II, ILECO I President of the Board then relayed his group's non-committal position. Yet he assured the committee that whatever decision will be reached in the future "is one with reason and logic."
Pressed for further comment, Cabaluna told TNT that he is personally amenable to a referendum with all member-consumers prior to any "executive decisions." The referendum was the position made by Board Member Cecilia Colada who already expressed her objection to CDA registration now.
At the moment, Cabaluna shared, cooperative- membership with NEA enjoys a significant government subsidy and loan condonation.
A need to evaluate the status of cooperatives under the CDA is also needed, lawyer Dennis Ventilacion said. Such, he stressed, will present the picture on what benefits are enjoyed as compared to maintaining affiliation with the NEA.
TNT learned that CDA has one member-cooperative in Western Visayas while a total of 18 are registered here all over the Philippines.
The hearing for the most part heard views of lawyers representing both groups.
Former Iloilo Vice Governor and now ILECO I Director Robert "Bob" Maroma was among the CDA movers.
"It is about time the consumers fully avail of the benefits. It is about time the government help make it a real cooperative," Maroma told committee members.
Similar sentiments albeit more 'passionate' from another resource person who said "no need to be legalistic… let us just use common sense and register with the CDA!"
The man's comments were met with 'jeers' from cooperative employees seated in the gallery of the Capitol session hall, venue of the committee hearing.
Another lawyer, Eduardo Jalbuna took note that "cost benefit analysis" of CDA membership will mean the retention of benefits currently enjoyed with NEA affiliation.
In the end of the exchanges though, Vice Governor Rolex Suplico did stressed that the SP can only issue a Resolution with no powers to compel the cooperatives to do either way.