Baguio Electric auditor in hot water over fund misuse

BAGUIO CITY, Philippines – A supposed financial scandal is rocking the Baguio Electric Cooperative (Beneco).

Lawyer Emiliano Gayo, who lodged the complaint with the cooperative’s board of directors on October 1, 2012, asked that the audit manager be suspended for a month “in view of the gravity of the charges,” while also criticizing the cooperative, which was earlier also entangled into an alleged “lavish spending” complaint when it bought a prime lot in the city allegedly worth P200 million.

Gayo said Balisong allegedly drew a cash advance amounting to P573,858.66 in March 2008 for the payment of capital gains tax and other taxes for its Bonuan Condo Unit here. 

“However she only paid P100,539.16 per her liquidation report dated Oct. 16, 2008, with the remaining balance of P473,319.50 classified as ‘refundable,' but remained in custody for more than nine months,” Gayo said.

Balisong filed a liquidation report dated Jan. 14, 2009 which she approved. It showed a return of P400,000 by a deposit to the Beneco account dated December 24, 2008, while the P73,319.50 balance was also returned. 

Gayo also claimed Balisong on February 2009 allegedly requested again for another P644,059.80 for the same purpose (the payment of capital gains tax and other taxes for the Bonuan Condo Unit, which again, she herself approved). 

The irregularities of the cash advances, the complaint said, were pointed out in a letter of Beneco bookkeeper Benelita Linmipao to Beneco General Manager Gerardo Versoza in September 2010.  

Linmipao allegedly stated in her letter years ago that Balisong has unliquidated cash advances amounting to P735,428.66 as of Sept. 18, 2008. 

Gayo said Balisong’s cash advances were drawn when the general manager was on travel and pre-signed checks were used, meaning, she approved her own liquidations and approved her own request for cash advances.

Gayo also said Balisong’s husband, Rocky Thomas, who was a former Beneco director, is also accountable as he also has unpaid balance amounting P230,755.61 from a total amount of P315,465.89 borrowed in 2003.

Gayo said Balisong also has alleged unpaid accounts amounting to over P128,314.33 as of April 2012.   

Balisong’s alleged numerous meetings at expensive restaurants in the city with the human resource personnel, Landbank internal auditors, complaining customers and members of the media, as well as discrepancies in marking in the official receipts which were previously marked Mr. Balisong but was changed to Mrs. Balisong, left doubt that her husband Rocky is using the privileges of the Beneco auditor. 

Versoza reportedly noticed the change in signatories (Mr. Balisong to Mrs. Balisong) as seen in notations in the Statement of accounts at Cafe Melodin totaling over P4,000, calling the auditor for clarifications. 

Gayo said meals ordered at the Cafe Melodin in Camp John Hay Manor, Baguio Palace Hotel, as well as Jollibee Foods Corp., included takeout orders, drive-through purchases and alcohol purchases. 

Also, the “garnishing” of P18 million by La Trinidad town government is also blamed to Balisong according to the complaint. “She has not taken the required prompt, appropriate action to question the assessment of business taxes against Beneco, resulting to the garnishment of its bank deposits. Beneco was jeopardized and suffered damages because the garnished deposits were frozen and cannot be used for operations.” 

Balisong, who has remained mum, also allegedly violated the labor code including the Social Security System assessment of Beneco to pay P938,700 and penalties amounting to P483,790.08 for unpaid premiums and contributions of trainees.

The procurement of uniforms of employees in 2009 is also put to fore with the complaint alleging that the supplier, Sigmund Parel, is close to her husband and was able to acquire the authority to produce the uniforms despite a lack of credentials and track record. 

The uniforms, Gayo said, were allegedly not delivered on time, of substandard quality and did not conform to the approved design resulting to lady employees not having uniforms for the entire year of 2009.