Senator Sherwin Gatchalian on Friday urged the National Electrification Administration (NEA) and the Department of Energy (DOE) to recall NEA’s most recent memoranda in appointing general managers (GMs) of electric cooperatives (ECs) saying that agency violated the law as it went beyond its supervisory powers.

NEA, an attached agency of the DOE, has Secretary Alfonso Cusi as Chairman of the Board, said Gatchalian, who is seeking re-election in the upcoming May 2022 polls.

By vesting the NEA the power to appoint a general manager of an electric cooperative, Gatchalian said NEA Memorandum No. 2021-55 and Memorandum No. 2021-56 violate Presidential Decree (PD) 269 or the National Electrification Administration Decree.

“Maliwanag na iligal ang bagong polisiya ng NEA at maaari silang kasuhan ng (It is clear that the new policy imposed by NEA is illegal and they can be charged for) grave abuse of discretion,” Gatchalian said in a statement.

“Ano ang basehan nila para iatang sa kanilang mga sarili ang kapangyarihan na magtalaga ng general managers sa mga kooperatiba? Wala itong basehan sa batas (What is their basis for them to arrogate upon themselves the power to assign general managers of cooperatives? It has no basis under the law),” he added.

The memorandum primarily changed the rules on the selection, hiring, termination of service/suspension of general managers of electric cooperatives contained in NEA Memorandum No. 2017-035.

The new policy transferred the power to appoint GMs to the NEA Board of Administrators, which was previously reserved to the Board of Directors (BOD) of ECs.

Meanwhile, Memorandum No. 2021-56 is the revised policy guidelines on the conduct of examination and interview for applicants. Both memoranda were issued last December 1.

Gatchalian, who chairs the Senate Energy Committee, stressed that Section 4 (e) of PD 269, as amended by Republic Act (RA) 10531, provides that NEA has merely the power to supervise the management and operations of all ECs.

Therefore, he said NEA is not allowed under the law to replace the judgment of ECs with their own discretion in appointing GMs.

The senator further said that under Section 26 of PD 269, ECs have the power to determine in its by-laws the manner of elections and filling of vacancies of its officers.

A new Section 26-B was introduced by RA 10531 which limited NEA’s role to merely review the qualifications and disqualifications of individuals appointed or elected to electric cooperatives.

Earlier, Gatchalian called out NEA in the last quarter of last year following its alleged anomalous appointment of a new general manager for Benguet Electric Cooperative (BENECO), saying that NEA did not follow its own memorandum on succession mechanism and selection process.