In a 43-page decision dated Oct. 6, the NEA removed Reynaldo Panaligan, Isagani Casalme, Ruben Calinisan, Cesario Gutierrez, Gerardo Hernandez, Celso Landicho, Tita Matulin, Ireneo Montecer, Tirso Ramos, Jose Rizal Remo, Cipriano Roxas and Eduardo Tagle from the board of directors of Batelec II.
NEA chairman Raphael Lotilla and members Wilfred Billena, Jose Victor Lobrigo and Edita Buena signed the decision, which also barred the 12 from running for any position in future elections of the electric cooperative.
The NEA’s order stemmed from the administrative case filed against the 12 board directors by members and consumers of Batelec II, represented by lawyer Erwin Layog, over an allegedly anomalous computerization project and procurement of 10 boom trucks.
In their affidavits, the complainants said Batelec II incurred net losses amounting to P63.9 million in 2003 and 2004 because of the board’s gross mismanagement, as shown in the audit report of the NEA’s electric cooperatives audit department.
The complainants added that Batelec II has accumulated arrears from power suppliers totaling more than P200 million.
Despite the electric cooperative’s poor financial condition, they said the board entered into a P75-million computerization contract allegedly without any comprehensive study and also authorized the unprogrammed purchase of 10 boom trucks costing P6.1 million.
"The transactions were all illegal because there were no biddings conducted in purchasing the boom trucks and in acquiring the services of the computer company," Layog said.
The 12 board directors, however, denied the allegations, claiming that they acted with utmost diligence and in good faith in approving the projects.
Based on their affidavits obtained by The STAR, the respondents claimed that NEA had approved all computerization contracts with the computer company I-SOLV as these were included in their approved 2004 supplemental budget.
"The respondents have no direct involvement in the bidding process because the Batelec II has its own public bidding and awards committee," lawyer Glen Mendoza, the directors’ legal counsel, said in a statement.