Estafa case vs. ‘unlisted’ Daneco-NEA mulled; rival lawyer says registration no need

May. 13, 2014

Davao Today

TAGUM CITY—Because it was not registered as a corporation, collection of payments made by the Davao del Norte Electric Cooperative (Daneco), under the wing of National Electrification Administration (NEA), is  “illegal.”

Thus, claimed the Daneco-Cooperative Development Authority (CDA) faction which is poised to file charges of “syndicated estafa” against its rival group.

But Daneco-NEA legal counsel George Rapista told Davao Today that the accusation has “no legal and factual basis.”

“We are not registered at the Securities and Exchange Commission
(SEC) because we are registered with the NEA. The same applies to all electric cooperatives nationwide under
the supervision of NEA,” Rapista said.

Daneco-CDA used a document from the SEC to prove that the NEA faction had no business collecting payments from member-consumers.

Gerardo del Rosario, Assistant Director of SEC Corporate Filing and
Records Division said in a two-page SEC certification last May 2 that “(R)ecords
of the Commission do not show the registration of the Davao del Norte
Electric Cooperative Inc. as a corporation or as a partnership.”

As such, Daneco-CDA claimed that the “absence of juridical
personality” on the part of the NEA faction has rendered their operations of collecting payments from
the member-consumers “illegal.”

“For that, we’re sure we will file a syndicated estafa case against
them for their illegal collection as they have no legal basis to
exist. They have no right in the first place. Many Daneco members will
file for it,” Daneco-CDA Board Chairman Albert Omega reportedly said.

Dioscoro Granada, Daneco-CDA Board Member said that “NEA must heed
the law and stop insisting their baseless authority which is only
prolonging the agony of member-consumers. The SEC certification is
clear that they don’t have any juridical personality and no authority to
collect payments.”


Daneco-NEA’s Rapista scoffed at the accusation and said “the filing of the estafa case would be an exercise
in futility and a waste of resources of Daneco not to mention the efforts
and time. They (Daneco-CDA) will be using again the money of the
member-consumers in filing a baseless and unfounded case of estafa.”

Rapista urged the rival Daneco-CDA group to use the money to pay the
power suppliers, instead of spending it to legal fees.

He alleged that “based on Daneco-CDA’s audited report  submitted to
DOE, the group spent more than 8 million pesos for legal expenses

“In fact, modesty aside, they lost in all these cases. All efforts and
energies should be focused and directed on how to solve the problem on
power outages, the payment to power suppliers and how to improve the
services of the cooperative,” Rapista added. (Mart D. Sambalud/

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