Probe Zamcelco board over mismanagement – Climaco

zamboanga

Zamboanga City Mayor Beng Climaco is calling for an investigation into the Board of Directors of the Zamboanga City Electric Cooperative (Zamcelco) over the co-op’s system’s loss amounting to P1.2 billion.

‘We are asking the Zamcelco Board to be investigated because the independent auditor was saying if we continue with P1.2 billion system’s loss with the same Board, the IMC (Investment Management Contract) will not be fully realized because there is a track record of mismanagement,” Climaco pointed out last Thursday over “Dateline Teleradyo,” a public affairs program of IBC-TV11.

“In order to solve that, we need to remove the Board and let the NEA (National Electrification Administration) take over Zamcelco temporarily,” the mayor said.

She likewise agreed that the IMC must be pursued

On August 10, National Electrification Administration (NEA) Administrator Ed Masongsong presided over the Zamcelco stakeholders meeting where he agreed to the call for NEA’s temporary takeover of Zamcelco to pave way for the IMC process.

During the meeting attended by NEA officials, electric cooperatives and associations together with consumers of Zamcelco, it was discovered that the power co-op’s debt liability has ballooned to P 2.144 billion.

Zamcelco’s system’s loss was pegged at 22.95% which translates to P3 million for every 1% system’s loss. With a system’s loss cap of 12% plus 22.95% system’s loss, Zamcelco was found out to be losing approximately P 33 million a month.

Record showed that Zamcelco boasts of 128,299 member-consumers as of July 2018, and has a total of 17,759 defective meters or nor meters that needed to be purchased and/or installed immediately.

Source: 1

Comments

comments




%d bloggers like this: