Thursday, October 15, 2015

Entrepreneurial Farmer by Ambrosio R. Villorente

Your Choice On December 12, 2015

One of the alternatives to select from in the Akelco referendum is for Akelco to become a stock corporation under the Securities and Exchange Commission (SEC).
Today, and for the last 43 years since 1972, Akelco is a non-stock non-profit electric agency under the supervision and control of the government thru the National Electrification Administration (NEA).

As a non stock non profit organization under the NEA, Akelco is capitalized by the government thru the NEA. Consumers’ benefit is only the electrical connection services provided by Akelco management and technical staff members. Although the consumer members elect the members of the Board of Directors by district, the Board of Directors’ actions are subject to the approval of the NEA. This is understandable as funds in the Akelco come from the government.

Therefore, to me, Akelco BoD is a mere rubber stamp of NEA. Its actions such as appointment of personnel, purchase of materials, machine and equipment are subjects for approval-disapproval or revision of NEA.

BoD plans, programs, projects, and activities can never be implemented without NEA approval. Hence, this situation moves consumer members to care less for Akelco.

On the other hand, if the members of Akelco will vote in the referendum on Dec. 12, 2015 to convert Akelco into a corporation under the Securities and Exchange Commission (SEC), Akelco will be owned by the stockholders. A conversion process will be drafted and approved to convert Akelco into a stock and profit corporation. The present Akelco asset will be inventoried and assigned its total value. The asset may either be donated to the said corporation or be sold to the said corporation using stockholders’ money or the proceeds from the sale of shares of stocks.

If converted into a stock and profit corporation, Akelco must be registered with the SEC. Necessary documents for registration must be prepared and submitted to SEC.

Shares of stocks will be sold to probable buyers of shares of stocks. Buyers of shares of stock become stockholders. The stockholders will elect their officers to the BoD to serve as a policy and plan making body. They will appoint a management group to implement the approved policies and plans. At the end of the year, a financial report will be prepared. Any surplus after deducting the cost of operation from the gross sales and upon approval of the BoD, the surplus will be given to the stockholders as dividends.  The dividend amount is dependent upon the amount of shares of stock a stockholder holds.

For one thing, converting Akelco into a stock corporation is a sort of a “private public partnership”. This will relieve the government from spending government money for its operations and maintenance. The stockholders will take over. Any problem in Akelco, the private sector will solve it.

Since Akelco is a corporation, the stockholders owned it. It will be highly protected from vandals, thieves, and other destructions.

Since shares of stocks will be marketed, both investment and money in circulation will increase. Akelco will be highly operated in a business manner. Systems loss will be minimized. Any problem concerning Akelco will be solved by stockholders or by the corporation itself.

I may not discussed Akelco to become stock nonprofit cooperative under the Cooperative Development Authority (CDA). It is highly dangerous to convert Akelco under the CDA. Akelco distributes a very important commodity, power. And only, a small number of cooperatives had been successful. Even the Aklan Cooperative Development Bank in Kalibo went bankrupt and closed shop.

JOKER ARROYO’S “EXCEPTIONAL HUMILITY”

“He dazzled the nation with his brilliance, with his high sense of duty and strong commitment to defend the underprivileged.”

Drilon said, Arroyo, who reportedly passed away in the United States on October 5, “led a life of integrity, good character, diligence and with a profound love for the masses that are dearest to his heart.”

“It was a great honor to work with him; first in the Executive Department, and later in the Senate. I attest to Joker’s exceptional humility and simplicity as a public official,” Drilon said.

“With his frugal and prudent ways, he will always be fondly remembered for being the ‘Scrooge of the Senate,” Drilon said.

Drilon said, Arroyo’s passing “is the nation’s collective loss, but his life will always be an inspiration to every Filipino.”


“With deep sorrow, we remember him in our prayers and condole with his family. We join the whole nation in mourning the loss of a gem of a public servant whose achievements as a lawyer, human rights defender, lawmaker and public servant are unparalleled,” the Senate chief said. /MP

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