COA flags power coops’ unliquidated subsidies

THE Commission on Audit (COA) asked the National Electrification Administration (NEA) to explain the billions of pesos worth of subsidies to electric cooperatives, which until now have not yet been liquidated.

In its special annual report, the COA revealed P10.45 billion worth of subsidies was given to at least 102 electric cooperatives nationwide from 2012 to 2014.

The P10.45 billion worth of government subsidies were processed and released multiple times to different electric cooperatives without considering unliquidated balance of their previous subsidies.

Such action is a violation of at least two NEA rules, resulting in the accumulation of unliquidated subsidies and difficulty in establishing the correct receivable account from the electric cooperatives.

The COA stressed that the intervals of releases of funds were too close and sometimes simultaneous without taking into consideration the liquidation of previous/prior releases as required by relevant regulations.

In addition, the COA said, the actual cost incurred for a particular project cannot be ascertained, thus, any excess in subsidies cannot be established at this time for refund to NEA, as required under the MOA between NEA and electric cooperatives.
In its response, the NEA reported that the amount of unliquidated subsidy releases to 102 electric cooperatives is down to P403 million as of March 22, 2019.

The NEA had issued Memorandum No. 2017-009 on April 6, 2017, asking all electric cooperatives to provide the liquidation of subsidy funds released for completed projects.

In addition, the NEA has required electric cooperatives to liquidate their respective government subsidies before they are granted rewards, incentives, benefits, allowances and salary upgrading.