Strong opposition mounting vs NEA privatization of Aleco

Business Mirror

Published on Sunday, 24 February 2013 19:09

Written by Manly M. Ugalde / Correspondent

LEGAZPI CITY—Multi-sectoral groups here are condemning the efforts of the National Electrification Administration (NEA) to privatize the bankrupt Albay Power Cooperative (Aleco), saying the group would stage a series of protest rallies including marching to Malacañang if necessary to ask President Aquino  to reject the conversion.

In a radio interview with the Church-run Radio Veritas dwBS here, Aleco Labor and Employees Organization (Aleco) Vice President Noel Cantal lashed  outat NEA’s scheme in using Aleco creditors, the Albay governor, the six Albay congressmen and the Church as fronts for the privatization of Aleco, considered as among the 10th worst cooperatives in the country.

The group said until now, NEA could not even liquidate the controversial P500-million rehabilitation funds for Aleco in 2007 following the devastation wrought by Typhoon Reming in November 2006.

According to Cantal, the multi-sectoral stakeholders will be conducting a house-to-house signature campaign from Aleco’s 250,000 consumers to oppose the cooperative’s privatization.

Aleco’s debt is now P4 billion.

Cantal said the employees union believed the privatization was a cover-up for the 30 years of misdeeds “including the misuse of the P500-million Calamity Assistance Rehabilitation Efforts  funds.”

Meanwhile, the Albay League of Municipal Mayors also meet on Thursday last week and came out with a resolution asking condonation of Aleco’s debt of P1.9 billion with the Power Sector Assets and Liabilities Management (PSALM). The meeting also agreed for a further study of Aleco’s privatization, according to Guinobatan Mayor Juan M. Garcia.

Cantal, who was Aleco past employees’ union president, said the NEA has no right to convert Aleco to a private entity, saying as a cooperative, the conversion should have the nod of the consumers-elected board of directors and the consumers as members.

He said the NEA’s concentration on Aleco is obvious, adding that the Aboitiz Group which now owns the Tiwi (Albay) is interested in buying the plant.

Cantal said the Aleco interim board of directors headed by Bishop Joel Baylon of the Diocese of Legazpi had already signed on Feb. 19, its consent for NEA to privatize Aleco. The interim board was created in early 2011 after Gov. Salceda succeeded in forcing the resignation of the entire consumers-elected Aleco board of directors as a NEA condition in taking over Aleco management allegedly to save Aleco from collapse. NEA took over Aleco management in February 2011,

In rejecting the privatization proposal, Bishop Baylon in early 2011 issued a pastoral letter urging consumers to reject Aleco conversion. Under NEA management control, a Crisis Management Committee was created with Bishop Baylon as chairman. It was later replaced by the interim board of directors whose members were chosen by the six Albay congressmen, including the three Ako Bicol party-list nominees and the governor with Bishop Baylon retained as chairman.  source