Entrepreneurial Farmer

Ambrosio R. Villorente

Will Akelco Shutdown?

I wish to thank Akelco under the leadership of its General Manager Chito R. Peralta for inviting me to attend the 30th Annual General Membership Assembly (AGMA) meeting held on Saturday afternoon, July 27.

The invitation is printed back to back on a photo paper measuring 4 inches by 6 inches. The front side of it is in full color, the message is very readable. However, the opposite side which is the “Programme”, the font of it is pixilated giving unclear and distorted printout. The font size is minute and the text is hardly readable.

Is this Akelco invitation an indication of Akelco’s bankruptcy? Balicas, Lamboco & Co said, “Akelco’s current liabilities is P343,139,610 while its “current asset” is P107.3 million only in 2012.

Even if I felt interested to attend, the AGMA, I didn’t after reading the programme content. The programme consisted of registration, opening ceremonies, business meeting and open forum. Analyzing the programme content, the AGMA was a forum where policy makers and management will tell the beautiful things Akelco is doing. Akelco consumer-members has remote chance to give feed backs.

I also thank Akelco for including me in the mailing list in “Akelco Kahayag”, its official publication, Volume XII, Issues 1 and 2. 

I appreciated very much the publication printed in full colors in good quality papers in just readable presentation. 

After reading it, I asked. How can Akelco loss in its annual operation when according to Akelco Kahayag, Akelco got the lowest systems loss in Region VI, awarded Triple A or AAA rating in 2012 with the implementation of the new Key Performance Standard NEA issued, won US$5,000 in Print Effectiveness Index, and awarded “Customer of the Year” in 2012 among others?

Despite these awards for high performance, Balicas, Lamboco & Co. submitted a very discouraging audit report. I expected GM Peralta to respond to these findings of much higher cost of operations than the gross income resulting to much bigger liabilities than the current assets. Hence, the fear of Akelco shutdown.

GM Peralta for example has the duty to explain why there are several millions of pesos collectibles when Akelco claims high rate of collection. 

If Akelco is losing in its yearly operations, what are the measures being instituted to reduce the loss? What is the salary standard in Akelco and its personnel compliment? Can this be adjusted to minimize losses?

How is and who are financing the GM’s hotel construction and the purchase of his luxurious cars? These are imputations Akelco management and the GM may explain to the consumer members. 

Or Akelco is a case of going bankrupt while the officials and personnel are progressing. It is ideal to have both Akelco and personnel progress. Let nobody stops its operations. /MP