Axed Ceneco GM gets vindication from NEA
BACOLOD CITY – Sulpicio Lagarde, former General Manager of Central Negros Electric Cooperative (Ceneco) confirmed recently that the complaints filed against him by the cooperative's Board of Directors at the National Electrification Administration (NEA) did not prosper.
The Ceneco board dismissed Lagarde last year due to several issues including the alleged transferring of 5% Reinvestment Fund (P17M) to the General Fund, Mishandling of Retirement Fund, and holding of a bidding for bulk materials without prior board approval.
Based on the findings made by NEA Member Nixon R. Bautista, it was learned that the amount transferred to the general fund is not a reinvestment fund but a loan proceed from NEA amounting to P17,870,680.93 intended for the construction of 69 KV transmission line and acquisition of one unit 5 MVA substation intended for Silay City.
The loan was received by the cooperative last June 6, 2008 and was deposited to (RCBC) General Fund Account No. 1-419-84546-5. It was transferred to DBP Reinvestment Fund Account on June 11, 2008. On July 8, 2008, this fund was transferred back to General Fund in the meantime that the construction of the 69 KV line and the acquisition of the 5 MVA substation has not yet started.
Lagarde observed that said acts were beneficial to the cooperative based on the findings because the fund was used to augment payment of its NPC Bill to avail of the 3% Prompt Payment Discount and other operating expenses.
The findings further stated that there was no window dressing noted as what transpired in the complaint that the board of Directors was mislead when it was reported that the net loss for the month of August 2008 drastically and erroneously dropped from P11 million to P2 million, when in fact the reduction was a product of window dressing and deliberate manipulation.
Lagarde also justified that Pre-Bids and Awards Committee (PBAC) had indeed conducted a public bidding for various materials and equipment with Approved Budget Cost of P64,882,312.18. This justification made by NEA was in response to the complaint that the holding of a bidding for bulk materials costing P65 million, more or less, without prior board approval and considering that the cooperative has only P39.2 million Reinvestment Fund.
Lagarde also said that there was no mishandling of employees retirement fund because the transfer from GE Money Bank to RCBC in the amount of 18 million last August 2009 was authorized through Board Resolution. 8239 series of 2008.
Lagarde hopes that his case will be acted by the Ceneco Board so that he could be restored as CENECO General Manager.