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Dumaguete City, PhilippinesThursday, July 26, 2012
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SP to probe NORECO II
concrete poles contract

BY JUANCHO GALLARDE

The Sangguniang Panlungsod of Dumaguete will investigate why the Negros Oriental II Electric Cooperative paid fully for the 5,564 steel poles it ordered from China when only 266 arrived last year and the payment contract will end in 2015 yet.

The SP is also asking why the 266 poles were shipped to Cebu and not to Dumaguete, causing additional expenses of P3.8 million, Vice Mayor Alan Gel Cordova yesterday said.

NORECO II entered into a contract with Su-Mai International Inc., a supplier based in China, in August 2008, for the delivery of concrete electric poles to replace the rotten ones in its coverage area, with a down payment of 20 percent of the contract amount of around P42 million.

Cordova said the contract is for seven years, but the electric cooperative fully paid the amount, including interest, in a single transaction in December last year.

He said consumers of NORECO II should be concerned over this as they are the ones who will shoulder any flawed transaction the cooperative entered into.

Acting NORECO II general manager Dionefred Macahig had earlier assured that Su-Mai will deliver the remaining poles by the first week of next month.

He said the delay was caused by the expiration of NORECO’s certificate of good standing last May. Macahig said it was only on June 25, 2012 that the electric cooperative received the renewed document, which is required by the Bureau of Customs, in the delivery process.

Macahig said Su-Mai had assured that its sub-contractor, the Yander Industry Group also based in China, will deliver 4,428 poles by August directly to the port of Dumaguete for offloading.

The last batch will immediately follow, perhaps on another ship, he added.*JG

 

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