The Negros Oriental II Electric Cooperative yesterday denied insinuations of anomalous transactions in the importation of P52 million worth of concrete electric poles from China.

NORECO II acting general manager Dionefred Macahig said all transactions have been above board, and went through the correct procedures.

He said the seven-year schedule of payment was accelerated, and saved the electric cooperative more than P4.88 million in interest.

Macahig added there were two amendments to the contract with Sumai International Inc., the supplier of the concrete poles, after the first one was signed in April 2008.

He said the first contract stipulated that the port of entry for the poles will be Dumaguete, but due to negotiations for the escalation costs and to acquire the Certificate of Good Standing from the Cooperative Development Authority, the shipment of 266 poles was routed to the port of Cebu last year, and cost an additional P3.8 million expense for NORECO.

An amended contract was then approved by the coop’s Board of Directors on December 2010, stating that the delivery will be made directly to Dumaguete.

Macahig said NORECO II paid in full the contracted amount, including interest amounting to P6.18 million.

Since payment was accelerated, NORECO also wants to recover the corresponding interest for the remaining years from 2012 to 2015.

He said that of the 5,564 concrete poles contracted, 266 were delivered in 2011, 4,628 pieces will be arriving next month, and the remaining 670 due for next shipment with the date still unknown.

NORECO Board chair James Fontelo, meanwhile, said he will advice Macahig not to appear at the session of the Sangguniang Panlungsod of Dumaguete next week, for lack of particulars and specifics, and to avoid being embarrassed by grandstanding politicians with the elections forthcoming.

Fontelo told the SP members that if they want answers, they could visit the NORECO II office. “This issue was thoroughly discussed several months ago, and even during the general assembly, making it a recycled issue”, he added.*JG

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