NEA failure to enforce gov’t rural power program flagged
THE Commission on Audit (CoA) has flagged the National Electrification Administration (NEA) for failing to monitor the implementation of rural electrification efforts, resulting in about P992 million worth of subsidy funds still unliquidated as of end-2023, past its due implementation period.
In a December report, state auditors stated that P630 million in subsidies over a year old remain unliquidated with an additional P62 million in subsidies outstanding for two years; while P299 million in government subsidies have remained unliquidated for more than three years.
“Subsidy funds released to various [electric cooperatives] for the implementation of Rural Electrification Programs totaling P992.59 million remain unliquidated and unremitted as of December 31, 2023, due to NEA’s inadequate enforcement,” a part of the CoA report stated. “This clearly indicates that there are delays in the completion of the projects as well as in the liquidation of the subsidy funds released to the [electric cooperatives].”
Of the total amount, state auditors said that P189 million worth of funds have been liquidated by March 2024, leaving P802 million worth of subsidies outstanding.
The NEA did not immediately respond to an e-mail, text message and Facebook Messenger chat seeking comment.
The agency is responsible for overseeing the implementation of the country’s rural power program, but its implementation is mainly carried out by local electric cooperatives.
Billions worth of subsidies are provided by the National Government to the NEA to fulfill its goal of electrifying all households before President Ferdinand R. Marcos, Jr. steps down in 2028.
The Philippine Congress has earmarked P5.02 billion worth of subsidies to the NEA for its rural electrification program, more-than-doubling from the P1.82-billion initially proposed, according to a copy of the budget bill’s bicameral conference committee report.
State auditors have noted that recipients of government funds for rural electrification efforts have six months to implement their subsidized projects. Electric cooperatives should write a request for extension to the NEA if they “foresee the possibility of failing to complete the project” within the timeframe.
Requests for extension should not exceed three months, CoA stated.
“[Electric cooperatives] have a six-month timeframe to implement and complete the projects after receiving subsidy funds from NEA. If there is a concern about completing the projects within the given six months, [electric cooperatives] must submit a written extension request to NEA, with a maximum extension of three months,” the report stated.
“Additionally, [electric cooperatives] are required within three months from completion of the projects to settle or liquidate the subsidy funds,” it added.
The state auditing agency noted that NEA has the authority to “take necessary measures or actions” if electric cooperatives do not adhere to the implementation and fund liquidation policies.
“[The] NEA should conduct periodic inspection to monitor the project progress, as well as fund utilization and recommend remedial or corrective actions for any issues or problems that may arise.” — Kenneth Christiane L. Basilio
