THE RECENT suspension order against the top executives of Negros Occidental Electric Cooperative (Noceco) could be part of its tidying up by the National Electrification Administration (NEA).
Noneco, serving the southern part of Negros Occidental, is registered with the Cooperative Development Authority (CDA) but by law can’t do away with NEA. Everything it does needs to be consulted with NEA.
The Oct. 26 Noceco-NEA brouhaha due to a legal dispute led to these questions:
* Was the appointment of Noceco general manager Ray Bustamante by the coop’s board (for more than six months already) illegal?
* Did Noceco board err in appointing Bustamante without seeking NEA’s confirmation?
Let’s legally be guided by Republic Act (RA) 10531, otherwise known as the National Electrification Reform Act of 2013.
Section 18 of this RA states that NEA has the disciplining jurisdiction-slash-power over all electric cooperatives. This is backed by jurisprudence – the Seares versus NEAB (National Electrification Administration Board) case and theZambales II electric Cooperative, Inc. Board of Directors versus Castillejos Consumers Association case.
CONSTRASTING LAWS
Noceco invoked RA 9520 or the Philippine Cooperative Code of 2008 and RA 11364 or CDA Charter.
RA 9520’s Section 2 states that the “State shall foster the creation of growth of cooperatives as a practical vehicle in promoting self-reliance and harnessing people power towards the attainment of economic development and social justice.”
RA 11364, on the other hand, paves the way to reorganize and strengthen or ultimately repeal RA No. 6939, the very statute that gave birth to CDA.
However, RAs 9520, 11364 and 6939 were all rendered inutile by the nine-year-old RA 10531.
And so NEA administrator Almendras was right in saying that Noneco GM Bustamante’s appointment by the board must be approved by NEA.
MANDAMUS
Bustamante’s or Noceco Board’s camp reportedly filed a mandamus before the Court of Appeals in Cebu City.
Almendras, with all humility, said if the Appellate Court will issue an injunction, he’ll abide by it. But for the meantime, Bustamante is preventively suspended for 90 days, and the members of Noceco board for 30 days effective Oct. 26.
Also, by virtue of authority vested in him as NEA administrator, Almendras designated Engr. Dominggo Santiago Jr.as Noceco interim general manager.
PADLOCKING
The padlocking of Noceco gate, necessitating NEA Administrator Almendras to use force to gain entry to the Noceco compound and office, was tantamount to disobedience to a disciplining authority.
Disobedience occurs when someone intentionally refuses to obey the order of the authority or when instructions are not complied with.
AIN’T INTRUSION
NEA Administrator Almendras’ legal basis in reining in Noceco is RA 10531. He is also making an appeal for obedience on the part of Noceco.
I think Noceco execs must ponder upon the insight of former US President Theodore Roosevelt: “No man is above the law and no man is below it: nor do we ask any man’s permission when we ask him to obey it.”
What NEA wants for Noceco is simply to obey, and they’ll be guided legally./PN
