Akelco Losses Need Auditing

by Ernesto T. Solidum

Akelco’s total accu-mulated financial losses of P659,231,574 as of December 31, 2008 should raise everyone’s concern. It is beyond comprehension that a service oriented power utility firm in Aklan would sustain staggering losses over the years. It is significant to note that deficits were incurred before global financial meltdown and high oil prices.
Volume of sales for 2008 was valued at P830,853,999 while operating cost was P957,351,991 or a deficit of P126,498,110. In 2007 the power firm lost P72,989,750.

General Manager Chito R. Peralta of Akelco said Akelco has one of highest collection rates in the country i.e. 99.16 percent and 12 percent system’s loss. Nevertheless, it is unable to provide at least the minimum service efficiency to its 103,306 consumer members. A relevant question: Is this the kind of service we expect as we celebrate National Electrification Awareness Month in August? What is the real score in the renegotiation between NAPOCOR officials and Akelco regarding extension of power contract of 29 MW? Thanks to Gov. Carlito S. Marquez and Cong. Florencio T. Miraflores for the 85 percent electric power supply they got with the assistance of Mr. Chito Peralta.

Considering the importance of electri-fication to our socio-economic life, LGU under the leadership of Gov. Carlito S. Marquez should step into the controversy surrounding the dire financial situation of Akelco. An exhaustive audit of books of accounts in its 37th year of existence must be undertaken to provide basis for evaluation and recommendation. Transparency will promote efficient management and delivery of vital services.

Losses incurred by Akelco during typhoon Frank (June 21, 2008) stood at P65 million. This can be significant but overall aggregate losses are just overwhelming to be ignored.

Mr. Jose Carl C. Quimpo, Pres. BOD needs to explain to all member–consumers why he and the rest of BOD should not resign from their post. If they have valid reasons for the underlying inefficiency, well, they can stay put. If not, it’s time to quit. Employment in a service cooperative is just a privilege. Hence, it could be withdrawn anytime by the members after due process. Absolutely no one is indispensable. /MP