NEA Makes Management Takeover in DANECO, New Acting GM is Engr. Galarce of ASELCO

The National Electrification Administration (NEA) through its Task Force Duterte Northern Davao Power made a management takeover Thursday to the Davao del Norte Electric Cooperative (Daneco)that designated new managers coming from other electric coops in Mindanao.

NEA’s Task Force Duterte NDP chairman Eric Bucoy announced the management takeover as ordered by NEA during the general assembly of Daneco employees held at the College Seminary Chapel in Tagum City Thursday afternoon.

daneco employees assembly
Historic general assembly of Daneco employees when the NEA’s six-month management takeover was announced

“The management takeover is temporary. Our challenge is to bring back Daneco to its limelight. As to our timeline, maybe six months is too long. Within the period we will aim to have 100-percent collection efficiency, to become Triple A category electric cooperative,” said Bucoy, whom Malacanang through NEA appointed as the man to troubleshoot the long ailing and financially troubled Daneco.

NEA has designated Agusan del Sur Electric Cooperative (Aselco) General Manager Engr. Emmanuel Galarce as Daneco’s Chief Operations Officer (COO) and Agusan del Sur II Electric Cooperative (Surseco II) General Manager Iglorio Hinayon as Daneco’s Chief Executive Officer (CEO).

Other new management officers were also designated like Mario Angelo Sotto as the deputy COO 0for the administration-finance department while the last acting general manager Benedicto Ongking was assigned back to his old post as the technical department manager in Daneco-Comval office.

Bucoy said that the positions CEO and COO are latest NEA’s management innovations. “The CEO gets its mandate from the Board of Directors, the COO is the acting general manager who is responsible to the daily operations of the electric cooperative and he is under the CEO,” he added.

Witnessing the formal announcement of NEA’s management takeover were other members of the Task Force Duterte NDP who are general managers and board presidents of other electric coops in Mindanao, Philippine Electricity Market Board Member and Leyte  Electric Cooperative General Manager Allan Laniba and the 13­-man Daneco board of directors.

Bucoy at the same time ordered for the halt of the old practice of employees of paying their electric bills through salary deduction but rather on or before the due date of their electric bills as their contribution to target of increasing collection efficiency and decreasing system loss.

He assured employees that under the new structure nobody would be displaced from employment but those “doing wrong and having conflict of interest would be terminated.”

In an interview, Bucoy refused comment on what would be done to the still rivaling “Daneco CDA” group that accordingly is still doing clandestine collections but is not paying power obligations.

Bucoy was President Duterte’s campaign manager in Visayas during the last 2016 election. He is a known electric consumerist leader in Cebu.

However, a Daneco insider said that an agreement had already been struck for the “Daneco CDA” group to be “pardoned” than sued with syndicated estafa based on the Bucoy’s “amnesia” principle of moving on so long that the group would dissolve itself.

But Bucoy sounded off during his talk before the employees that he could have earlier opted for cease and desist order (CDO) to stop the group when the Task Force Duterte NDP was constituted by NEA Administrator Edgardo Masongsong last February pursuant to NEA’s step-in powers over ailing electric coops. “But CDO is our last alternative.”

He also asked employees to stop the use of “Daneco NEA” and “Daneco CDA” as reference, adding that it is only one Daneco that has authority with the NEA and a franchise to distribute power.

An audit for both Daneco and the “Daneco CDA” group by external auditor would also be conducted.

Daneco is already past of its legal battle phase with the “Daneco CDA” group  with Daneco winning in all of the cases up to the Supreme Court. The “Daneco CDA” group has still its unrevoked CDA registration.

But it is experiencing losing financial streak as it has a trouble of not regularly meeting its power obligations by its collections resulting to several debt restructuring cases.

There is also talk that Daneco inevitably would be divided into three electric coops, one for Comval, another for Davao del Norte and another Samal Island come the expiration of Daneco’s congressional franchise in 2028.

To prepare for this eventuality, newly-designated COO Galarce told the employees that under his management the Samal area, Davao del Norte area and Comval area would have a “friendly competition” but when one falters the other areas would come to help for augmentation.

He also said that legal actions and apprehensions would be launched to stop power pilferages that contribute to the problem on collection and system loss. ( Monforte)

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