NEA imposes life ban to hold office in any electric cooperative imposed on former Oriental Mindoro power coop executive

POSTED: Thursday, January 2nd, 2014


Continuing saga in Oriental Mindoro’s power management struggle

CALAPAN CITY – The continuing issue on whether to remain as it is or convert the present status of Oriental Mindoro Electric Cooperative, Inc. into a system under the Cooperative Development Authority (CDA) or Securities and Exchange Commission (SEC) somehow got its first casualty after the state-run agency that governs all power coop in the country decided to impose its strictest penalty to a former ORMECO executive for “grave misconduct.”

The board of administrators of the National Electrification Administration (NEA), after a reported “diligent and impartial investigation” on a case filed against former ORMECO director for Calapan City Engr. Dennis C. Alcancia, ruled the latter “guilty of grave misconduct” and imposed on him a “perpetual disqualification for re-employment in any rural electric cooperative” in the country, cancellation of eligibility to run for the position of power coop director, and forfeiture of his possible retirement benefits.

The said NEA decision, announced over the weekend by ORMECO General manager Romeo Cuasay, was actually ordered and signed unanimously last November 6 by NEA board officials, namely: Jose Raymundo A. Acol, being alternate chairman for Energy Secretary Carlos Jericho L. Petilla; and Jose Victor Lobrigo, Wilfred Billena, Joseph Khonghun, and Editha S. Bueno, as board members; takes effect immediately.

Even as this developed, Alcancia, who is now chairman of CDA-registered ORMECO, a splinter group who broke away from the present non-stock ORMECO purportedly to convert the lone electric cooperative in Oriental Mindoro into a “stock cooperative,” sent a letter to all banks which ORMECO Inc. currently has official transaction and demanded to “hold in abeyance any transaction” by the latter “or stop payment any withdrawal relative to said accounts.”

Alcancia’s ORMECO group claims to be the real representative of all member-consumers of the cooperative by virtue of their registration with the CDA as the “real electric cooperative” and the former being elected together with other new directors of ORMECO in a supposed election last November 23.

However, in its November 6 order, the NEA board has imposed a lifetime ban on Alcancia to hold any electric cooperative office because the state-run agency has found out that the former ORMECO director is guilty of grave misconduct based on the complaint filed by Felipe A. Ramos, another former ORMECO official.

Based on Ramos’ complaint, the NEA board has found out that Alcancia, despite his capacity as then director went against two official decisions of ORMECO Inc. – first a decision by its general membership assembly, and second, by the ORMECO board of directors – all have been decided when Alcancia was still a member of the said board.

Alcancia, during his term as official ORMECO Inc. director, formed another group advocating for the conversion of the said non-stock cooperative into a stock cooperative.  He and his group, for some time was called as Movement for Consumer Ownership of Ormeco (MCOO), even registered with the CDA another ORMECO group and conducted a hastily-called election of directors all over Oriental Mindoro to whom Alcancia is now the elected chairman of the board.

According to NEA, while they recognized Alcancia group’s actions as within the bounds of the law, the former director was found guilty of grave misconduct under the established rules or laws pertaining to his then official functions as a member of ORMECO, Inc. board.

Meanwhile, the banks which Alcancia sent a letter-memorandum demanding the stoppage of business transactions and withdrawals of present ORMECO management have yet to accede to said request.  And the ORMECO, under Cuasay and Board Chairman Audel Arago, has already officially contradicted with the same banks all the claims of Alcancia’s ORMECO group. (By JUANCHO R. MAHUSAY)


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