Business World

NEA installs new management team at Masbate power co-op

- Saulon Victor V.

THE National Electrific­ation Administra­tion (NEA) along with Masbate Electric Cooperativ­e (Maselco) are to hold another meeting with DMCI Masbate Corp. after the government agency designated a team to supervise the indebted power distributi­on utility.

NEA said the meeting would negotiate and discuss the provision of a more reliable electricit­y to the island province after DMCI Masbate agreed to restore power supply to Maselco pending talks on how the distributo­r will commit to pay its debts.

The agency said the meeting sought to ensure “more concrete agreements are met and definite solutions are laid out.”

On June 1, NEA said it had deployed a team to Masbate led by Edmundo A. Aguilar, who was designated project supervisor and acting general manager of Maselco. This was after a massive power failure in the province on May 31, which prompted NEA Administra­tor Edgardo R. Masongsong to place the previous manager Eduardo N. Margallo on 30-day preventive suspension over allegation­s of gross inefficien­cy and mismanagem­ent of the cooperativ­e.

A source at DMCI Power Corp. said Maselco has an outstandin­g obligation of around P273 million as of April 2017, of which it demanded settlement of at least the principal amount of P143 million.

After DMCI Masbate’s demand letter, Maselco asked for an extension to June 30 to settle the principal amount. The source said the utility paid only P20 million on May 30. The power generation company wants the governing body’s assistance to collect what is due to it. It also wants to see the appointmen­t papers of a new general manager.

NEA previously said that the suspension order was in response to the resolution­s issued by the Masbate Sanggunian­g Panlalawig­an and the Maselco board after the demand letter of DMCI Masbate on May 24, threatenin­g to cut the power supply of Maselco for failing to settle its overdue obligation­s.

Mr. Masongsong said the suspension was warranted to forestall any potential destructio­n of evidence, pending the outcome of the investigat­ion against Mr. Margallo.

Mr. Aguilar had a meeting with Masbate government officials to discuss together with the Maselco employees plans to settle the outstandin­g bills of the cooperativ­e with DMCI Masbate, NEA said. —

 ??  ?? DMCI Power Corporatio­n’s Masbate Diesel Power Plant in Brgy. Tugbo, Mobo, Masbate
DMCI Power Corporatio­n’s Masbate Diesel Power Plant in Brgy. Tugbo, Mobo, Masbate

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