EDITORIAL

Are Members of BOD of Akelco
Working For Consumer Members’ Interest?

It is really hard for the people to figure out the desire and interest of the Board of Directors (BOD) of the Aklan Electric Cooperative (AKELCO). Is the BOD of Akelco serving and protecting the interest of the consumer–members? Are the BOD of Akelco capable to perform their duties as duly elected to the position by the members? And are they there out to profit from every transaction they approved?

One transaction that the BOD perfected is with Avon River Power Holdings Corporation which they call "Settlement Agreement".

Settlement Or What?

Going over the entire text of the Agreement, a reader can easily conclude the document is prepared by school children.

There are no dates for the agreement to take effect. There is no termination date. Except in No. 14. Effectivity, which states, "this settlement agreement shall become effective upon execution. This document therefore is just a scrap of paper if not executed. It takes effect only if executed.

The Settlement Agree-ment is signed by Jose Carl C. Quimpo, Acting Board President, BOD, Akelco and Francisco G. Go for AVON. There is no date stated when they signed the agreement with two witnesses which signatures are not readable.

Aba…! This appears like a blank check. The parties may just fill the blanks when needed. Agreement however, was acknowledged and notarized separately. It was notarized on January 18, 2008 in Makati City by Notary Public Antonio P. Serrano, Jr. for Mr. Francisco G. Go, and notarized on February 6, 2008 in Kalibo, Aklan by Notary Public Saykeme Molino–Martelino.

92,345,142.46
Million Pesos Debt

The most important provision stipulated in the agreement is the acknowledgment of Akelco to pay P92,345,142.46 and the mode of payment at P3,220,284.15 for 24 equal monthly installments for a total of P77,286,819.53 and the P15,058,322.93 for 12 months at P1,254,860.24 per month. Payment will take effect on December 25, 2007. Akelco therefore will pay a total of P4,475,144.39 a month for the whole year 2008. Take note, payment was scheduled to start on December 25, 2007. The agreement was notarized only on Feb 6, 2008.

BOD Approval

Is Jose Carl C. Quimpo authorized by the BOD of Akelco to sign the Settlement Agreement? It is urgent for Mr. Quimpo to show to consumer-members his Board approval.

For one thing, the Settlement Agreement was kept air tight for quite sometime. Even the LGU Kalibo was refused a copy of the Settlement Agreement. Its resolution requesting a copy of it was denied for "it is not of public interest". It was only upon the scientific technique in document gathering of K. Butz Maquinto of RGMA–DYRU when Gen. Manager Chito R. Peralta furnished him a copy of it.

Upon review, additional defects are noted in the agreement. Is this the advice of lawyers who were allegedly paid P3 million without any receipt? If there is, the public is glad to view it.

Paragraph "D" of the agreement shows the sum of P15,058,322.93 was wrongly paid by Akelco to NPC instead of to Avon. This is clear gross negligence of the management. That money belongs to the consumer members. Shame and incompetence to the Akelco management. Is proper sanction given to the culprit(s)?

Amendment

In view of the errors noted in the Settlement Agreement, Mr. Jose Carl C. Quimpo and Francisco G. Go signed another agreement. This time, they call it "Amendment Agreement to the Settlement Agreement".

And what is the amendment? It just amended only the dates stated in paragraph C. from "…(92,345,142.46) representing electricity consumption for the period Feb. 25, 2005 to Sept. 25, 2007" to "…(P92,345,142.46) representing electricity consumption for the period of February 26, 2007 to Sept. 25, 2007".

While the period for the supply of power was reduced from 31 months to seven (7) months, the amount is never reduced. Is it the truth?

This time, the Amended Settlement is dated July 23, 2008, notarized in Kalibo on July 23, 2008 and in Makati City on July 31, 2008.

But what happen to the schedule of payment that should have started on Dec. 25, 2007 as stipulated in the Settlement Agreement? Take note, of all schedules, Dec. 25, Christmas.

Is Mr. Jose Carl C. Quimpo, authorized by the members of the BOD to sign that agreement? This two stated agreements bring hatred, instead of love for Akelco.

There is an extremely urgent need for both Akelco management and BOD to explain this matter of 92.4 million pesos settlement agreement and later, amendment to the settlement agreement.

The consumer-members must know the truth of the 92.4 million pesos debt to Avon. There is no statement of account. There is a need to inform the people where Akelco will get the money to pay this debt if indeed the quantity of electric power costing 92.4 million pesos was honestly supplied to Akelco. Both BOD and Akelco management must inform the people of all things happening from time to time and not only the schedule of black out. /MP