Investigators of the National Electrification Administration have recommended the approval of the Central Negros Electric Cooperative resolution terminating the services of former CENECO general manager Sulpicio Lagarde "due to loss of trust and confidence" in November last year.   

The recommendation was contained in the memorandum of the NEA Investigating Team led by Xerxes Adzuara dated December 4, a copy of which was obtained by the DAILY STAR.

The investigation, conducted days after Lagarde was terminated, focused on both financial and institutional concerns raised against him.

On the claim of the Board that they were misled by Lagarde that the transfer of the P17-million was proper and legal, the team said they observed that the amount was not a Reinvestment Fund transferred to the General Fund, but loan proceeds from the NEA, intended for the construction of a 69kv transmission line and acquisition of one unit 5 MVA substation for Silay City.

After the loan proceeds were received on June 6, 2008, and deposited to the RCBC General Fund account, it was transferred to the DBP Reinvestment Fund account on June 11, and on July 8, it was transferred back to the General Fund and used to augment the payment of CENECO for its bill with the National Power Corp.

“As of the investigation date, said loan proceed is not yet replenished nor deposited to its appropriate fund account,” the NEA team said, thus, “Lagarde’s statement that the ‘monies for both reinvestment fund and loan proceeds are all accounted for’ is simply confusing.”

The NEA team also found out that under Lagarde, CENECO was implementing the NACTEL Corp. wireless connectivity project in two phases at P419,000 for each phase, and it was awarded without contract to NACTEL on May 20 yet, but approved by the Board only on June 30.

“In sum, it is observed that the causes in terminating the probationary employment of Lagarde are real and actual, and not feigned,” the investigators said. 

Moreover, the NEA team said that, based on documents submitted and interviews conducted randomly on CENECO officials and employees, they perceive that “the management of the cooperative has become an impossible undertaking under the present condition and situation, where many employees and majority of the (directors) are against him.”

The investigators added that they found no justifiable reason to recommend the nullity or disapproval of CENECO Board Resolution No. 8323.*NLG

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