Part 2
In a previous column, I wrote about the 9th General Assembly Meeting of the Philippine Federation of Electric Cooperatives (Philfeco) held in a swanky resort hotel in Mactan, Cebu last April 1.
It was my first time to be in the company of power co-operators, mostly managers and policy makers of 13 power cooperatives all over the country. My pass to the gathering was courtesy of John Peter “Jopet” Millan, newly-elected chairman of the board of the Negros Occidental Electric Cooperative (NOCECO) based in Kabankalan City. The unexpected invite was coursed through my brother who, I found out, was also elected chairman of NOCECO’s election committee.
As a member of a media cooperative, I am quite familiar with a co-op general assembly, an annual meeting wherein member-owners are updated about what’s happening and going on in the organization. The financial statements and the distribution of patronage refunds and dividends underline the performance of the incumbent board of directors, the management and staff working within the framework of the co-op system and policies. These officers are mandated by law to give an account of their performance in line with one of co-op principles and core values, namely, democratic member control.
Speaking of which, the Cebu News Workers Cooperative (NewsCo-op) is set to hold its 17th GA come April 26 at the Marcelo B. Fernan Press Center in Lahug. Incumbent chairman of the board Elias Baquero, board members Flor Perolina and Liv Campo including election officer Jovy Gerodias are vying for the four seats up for grabs in the election of the board of directors.
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Philfeco is a secondary co-op, in which members (called primaries) are also cooperatives. My expectations of the traditional general meeting fell apart when I heard the opening statements of federation secretary Atty. Rohima Sarra who immediately set the tone of the gathering.
In her brief remarks, Atty. Sarra expressed dismay that as all full-fledged cooperatives registered with the Cooperative Development Authority, the 13 member coops are not getting any support from CDA vis-à-vis the federation’s dispute with the National Electrification Administration (NEA). Atty. Rohima lamented that it is as if the federation has no allies in the regulatory body and is left to fend for itself in the squabble with NEA.
To recall, NEA has been “strengthened” by virtue of the NEA Reform Act of 2013. I find nothing remarkable about the amendment to the Marcos-era PD 269 except perhaps for NEA’s supervisory powers over electric co-ops. Under Republic Act 10351, the powers of NEA do not just overlap but is more broad compared with the authority of the CDA which exercises similar powers through the Philippine Cooperative Code of 2008 or RA 9520.
The electric co-ops are up in arms over RA 10351’s Section 5 Article (e and f) which empowers NEA to supervise and exercise step-in rights over the management and operation of electric cooperatives.
Under the law, candidates running for a seat in the board or any elective office should be a graduate of a four-year course. They are deemed disqualified if his or her spouse holds public office and has run for an elective local or national position in the past. Because NEA can practically hire and fire members of the board of directors, the agency can gain control of the policymaking body by sheer political muscle and psychological influence.
The cooperative concept derives from the power of members who elect policy makers to sit in the board, as well as officers of vital committees. The election is provided under the by-laws and articles of cooperation, sometimes referred to as the “bible” of the Co-op.
In other words, nobody can sit in the board unless he is elected and proclaimed in an election conducted during the general assembly and sworn into office by a legal entity. Having said that, I can understand why Philfeco is clear and confident about its opposition to RA 10351. One Philfeco official maintained the controversial provisions are inconsistent with the Bill of
Rights. Section 10, Article 3 of the Philippine Constitution states that no law impairing the obligation of contracts shall be passed.
As I mentioned in a previous article, many power co-ops are ailing and groaning under the weight of huge indebtedness to power suppliers. However, the agency cannot simply impose itself on the self-help enterprises without insulting and stepping on the toes of the members who are the owners of the co-op. What NEA intends to do, in my understanding of the workings of cooperatives, is take over control of the electric cooperatives by placing itself strategically in the board, through their protégées.
No wonder Philfeco looks at RA 10351 as acting true to form – an offspring of Martial Law.
Part 1 Quo vadis, electric co-ops?
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