Salceda wants Aleco privatized

Business Mirror

30 Jan 2014 

 

Written by Manly M. Ugalde / Correspondent

LEGAZPI CITY—Despite the ongoing problems besieging the Albay Electric Cooperative (Aleco), including a monthlong strike by its regular employees, Gov. Joey Sarte Salceda is asking critics to give San Miguel Corp. (SMC), the cooperative’s new owner, the opportunity to manage Aleco.

Salceda expressed his belief that the electric-power cooperative would be revived by the management team of SMC.  The cooperative provides the electric-power needs of more than 200,000 consumers.

Protesters have prevented SMC from taking over Aleco early this month by “physically” taking its control through its own interim board of directors reportedly sanctioned by a consumers’ assembly.

SMC representatives began their takeover operation last December with the formal management change supposed to have taken place on January 7.

Officials of the Aleco Labor Employees Organization (Aleo) and the Aleco Multisectoral Stakeholders Organization (Amsso) had earlier declared the SMC contract for the initial 25 years to manage Aleco as concessioner as “null and void,” saying it did not have the  approval from member-consumers.

As this developed, consumers said their monthly bills have not been delivered for five months now since Aleco employees went on strike. They were protesting what they called the manipulation by the National Electrification Administration to privatize Aleco and had its management awarded to SMC.

SMC was the lone bidder that won the Aleco concessioner contract after four other giant firms who joined the prequalification bidding withdrew during the prebid conference.

Salceda said he has no doubt Aleco’s service would greatly improve under SMC management. 

Amsso and Aleo officials, however, said striking regular employees had returned to work on the second week of January in respect of the return-to-work order from the Department of Labor.

 Ephraim de Vera, an Aleo official, admitted that the physical takeover of the member-consumers interim board of directors nominated to manage Aleco was also temporarily disabled pending its regular takeover as required. Documents are being prepared and finalized by lawyers.

 De Vera admitted the nondelivery of Aleco monthly billings to consumers, saying even Aleco’s meter readers hired by SMC could not perform their duties because of a legal conflict after the hiring of a collection agency was also questioned by Aleo and Amsso.

Generoso Butial said fellow consumers could not pay their electric consumption minus their bills and designated collection centers. He said he had requested Aleco since last year for the transfer of his electric connection to his nearby new residence but was told by an Aleco employee that no one would attend his request.

SMC allocated some P350 million for employees who would retire and those who opt for separation.   source