Moises Arzaga Jr. will take no action in response to a call for his resignation as chairman of the board of directors (BOD) of Palawan Electric Cooperative (PALECO) based on doubts about his ability to fulfill the duties of the position.
Antonio Cabrestante, a member-consumer-owner (MCO), demanded Arzaga’s resignation as chairman and director of District 2 in a letter dated January 5, questioning his ability to serve as chairman of the BOD while also serving as branch manager of a bank.
Arzaga said that this is Cabrestante’s second call for him to resign, but he will take no action in response.
“Wala akong gagawin. No counter action. The truth shall prevail,” Arzaga told Palawan News in a text message.
Cabrestante also questioned how much Arzaga had helped PALECO’s finances, since he had been on the board for 17 years before becoming chair in 2022. He said that the power coop’s status dropped from “AAA” to “A.”
“Evidently, the performance of PALECO in all aspects miserably ‘fell down’ during your term as member of the board,” Cabrestante told Arzaga in the letter.
Cabrestante stated further that Arzaga’s work influenced the cooperative’s decision to open an account at a bank that he oversees. Such conflict of interest, he asserted, is prohibited by the PALECO constitution and bylaws.
He accused that Arzaga protected the interests of independent power providers (IPPs) as opposed to the MCOs, and that he “favored” his family members to get “juicy positions at PALECO.”
“My conscience is clean,” Arzaga stressed.
Cabrestante also questioned Arzaga’s efforts to assist in the renewal of PALECO’s franchise, which he claimed would expire in 2024.
PALECO information officer Maria Janelle Rebusada, on the other hand, clarified that the franchises that will expire are only those of Cagayancillo, Agutaya, and Dumaran.
“Tulad ng sinabi ni Corporate Planning Department OIC Peter Vincent Mendoza noong ipinatawag kami sa Sangguniang Panlalawigan, nilinaw ng opisina sa NEA na yung franchise na mag-i-expire sa 2024 ay ‘yong for Agutaya, Cagayancillo at Dumaran,” she said.
“Let’s remember na mayroong six na certificate of franchise na na-award sa kooperatiba liban doon sa huling tatlong munisipyo at lahat ‘yong anim na iyon ay 50 years permanent franchise. Yong pinaka-una na-award ay mag-e-expire sa 2029 pa. Pero ganun pa man, rest assured na inaasikaso ang renewal sa parehong franchise,” she added.
The application for renewal will be submitted following the Annual General Assembly Meeting (AGAM) in May, where required committees such as election, audit, ethics, mediation, and reconciliation will be filled in order to obtain a certificate of good standing from the Cooperative Development Authority.
She went on to say that this certificate is one of the requirements for renewing the expiring franchises.