Last 9 December 2021, NEA rendered its Decision in ADM Case No. 12-09-20, on the matter of the Motu Proprio Investigation of the Benguet Electric Cooperative (BENECO). The Notice of Decision was personally served at the BENECO office last 23 December 2021. Copies were also served via electronic mail to the Internal Auditor and the Institutional Services Manager who were
among those suspended, as well as on the Administrative Officer of the EC.
The NEA BOA Decision pertains to the audit findings wherein the respondents were meted administrative penalties of suspension, as well as the order for them to return the excess amounts they earlier received in violation of NEA policies amd guidelines.
The findings cover the period 01 June 2014 to 31 December 2017. The EC Board and Management’s response failed to justify some of the audit observations especially on the excessive benefits and allowances they extended to themselves. The respondents filed a joint answer, denying liability on the audit findings.
Earlier on 26 August 2020, the Administrative Committee (ADCOM) received the details of these findings and the respondents were directed to file their responses on the alleged violations. To determine further whether they may be held administratively liable for the charges, a clarificatory hearing was held on 03 February 2021.
In the Decision of the NEA BOA, a BENECO officer’s earlier resignation, as well as the subsequent death of another Respondent that would prevent him from defending himself were taken into account.
For the remaining respondents, the NEA BOA generally found each charge as substantially proven thus the imposition of the penalties. Among those are the continuous defiance of NEA guidelines on the payment of meeting per diems.
During the clarificatory hearing, their hollow excuses was revealed to be betrayed by certain facts. Earlier audit reports containing identical findings of defiance had been duly furnished to the BENECO board and management. Subsequently, the EC tried to increase the frequency of compensable regular board meetings from two to three.
However, said move was partially approved by then Deputy Administrator of EDUS Edgardo Piamonte and then by former Administrator Edita S. Buenoon who stated that “per diems will only be given for two (2) regular board meetings, in accord with NEA Memorandum No. 2015-007.”
BENECO Board President Esteban Somngi further admitted that starting January 2021, they still conducted their third regular monthly board meeting without the payment of per diem. This is evidence that they recognize non-entitlement of per diems beyond the allowed for 2 monthly meetings.
The rest of the findings take on the same pattern of violation. The following grants, benefits, and allowances were extended without explicit approval of NEA Administration:
- Information Dissemination Allowance
- Granting of gasoline Allowance
- Token of appreciation to two outgoing BOD Members
- Other benefits claimed under the following categories: 13th month pay, grocery allowance, representation allowance, insurance allowance, rainwear allowance, Christmas bonus.
For each of these, the NEA BOA found the respondents liable for willful violation/non-compliance of NEA issuances. They are meted the penalty of Suspension for a period of ninety (90) days.
They are consequently ordered to return the computed excess funds they have granted to themselves.
Following the notice of decision, the respondents are directed to show proof of payment and/or return of the aforementioned amounts within ten (10) days.###
