The Benguet Electric Cooperative (BENECO) Inc. has implemented stricter financial policies to prevent board members from incurring personal loans or misusing cooperative resources.
During the regular session of the Baguio City Council on February 10, 2025, Board of Directors Chairman George Dumawing told the city officials that BENECO’s Corporate Social Responsibility (CSR), which was previously prone to misuse, had been removed from the control of the board of directors and placed under the Internal Service Department (ISD). He said this reform enforced by the BENECO Task Force aims to curb “past abuses” which include the branding of monoblock chairs with names of directors and excessive allowances.
Dumawing said that this structural change would ensure that any requests for assistance would go through the approval of ISD to prevent the past practice of board members using BENECO resources for personal or political gain. He cited past instances where BENECO had provided items such as monoblock chairs branded with the names of directors, a practice that had now been abolished.
He also noted that other privileges, such as gasoline allowances, had already been prohibited by the National Electrification Administration (NEA).
Councilor Betty Lourdes Tabanda expressed appreciation for this reform, stating that it was reassuring to know that BENECO had taken corrective measures against such practices.
Atty. Delmar Cariño, BENECO ISD Manager, added that, aside from the aforementioned reform, the electric cooperative had also implemented a good governance policy through the BENECO Task Force. This policy, along with its implementing rules and regulations (IRR), had closed loopholes that previously led to financial mismanagement which included concerns related to disbursements, information and education campaigns (IECs), and allowances.
The discussion stemmed from the request of Councilor Fred Bagbagen for updates on the unliquidated cash advances of former BENECO directors and the status of car loans taken by these directors.
In response to this request, Cariño said BENECO failed to submit the requested documents because several issues were still under appeal before the Court of Appeals. Furthermore, BENECO has a policy on access to records, approved by the National Privacy Commission, which restricts the disclosure of personal information under the Data Privacy Act.
Despite invoking these legal constraints, Cariño shared that NEA had filed administrative cases regarding the cash advances which were still under appeal. He also revealed that BENECO had issued demand letters to those with outstanding balances urging them to settle their accounts or face legal action. With regard to the car loans, he said some former directors had already fully settled their dues while four were still making monthly payments.
Bagbagen argued that, given BENECO’s role as a public service provider, transparency should take precedence over privacy concerns, especially since the unliquidated amounts had reportedly reached millions of pesos. He expressed frustration that these debts had remained unpaid for years and urged BENECO to set a firm deadline for repayment.
Cariño explained that they were following NEA’s directive to collect payments but could not release personal data without the consent of the individuals involved. He said while the cooperative understood the concerns raised, they had to adhere to data privacy policies.
The city council referred the matter to the Committee on Public Utilities, Transportation, and Traffic Legislation for further study in aid of legislation. Baguio City – Sangguniang Panlungsod
