A RECENT P160 million loan and investment acquired by the Benguet Electric Cooperative Inc., (BENECO) is under audit for supposed violation of proper protocols..
According to the National Electrification Administration (NEA), the NEA’s audit department is in the process of conducting a financial and management audit of the BENECO P160 million loan from its P300 million credit line.
BENECO had supposedly invested the P160 million into the Rural Electric Finance Corporation (REFC).
NEA BAC-Secretariat Chairperson Oswaldo Gabat said that the BENECO maneuver is in violation of NEA protocols and is therefore undergoing investigation to verify the details.
According to Gabat, BENECO is allowed to take short-term loans from any financial entity in accordance with NEA policy and existing national laws.
However, investments into any company or corporation is required to go through NEA approval.
Gabat said that the P160 million investment into the REFC was made without NEA approval or consent, or even prior information, in clear violation of NEA policy.
He also said that sanctions for BENECO will be deliberated on based on the results of the audit of the loan and the investment into the REFC.
