MAY 15, 2016

NR # 4201

Senate committees approve House bill creating a screening committee for

the election or appointment of officers of electric cooperatives
A House proposal to create a screening committee for the election or appointment of the
directors and officers of electric cooperatives, and to modify the officers qualifications has been
endorsed for plenary approval by two Senate committees.
House Bill 6080, which embodies the proposal, had been approved with amendments by
the Senate committee on energy chaired by Sen. Sergio Osmea III and committee on
cooperatives chaired by Sen. Manuel Lito Lapid last February 2, 2016 prior to the
congressional break.
The House approved the bill on third and final reading on September 21, 2015 and it was
subsequently transmitted to the Senate for concurrence. Osmea delivered the sponsorship
speech for HB 6080 on February 3, 2016.
The bill principally authored by Rep. Reynaldo Umali (2 nd District, Oriental Mindoro),
chairman of the House committee on energy, seeks to amend Sections 26-A and 26-B of
Presidential Decree No. 269, as amended by Republic Act 10531, otherwise known as the
National Electrification Administration Reform Act of 2013.
Section 26-A pertains to the Independence of the Board of Directors and Officers of
Electric Cooperatives. The bill provides that to ensure the long-term business and economic
viability of electric cooperatives, the management, operations and strategic planning of electric
cooperatives shall, as much as practicable, be insulated from local politics.
Towards this end, no person shall be elected or appointed as an officer or be eligible to run
as a board member of an electric cooperative if the person holds any elective office higher than
the position of barangay chairman.
Other prohibitions are : if the person or the persons spouse has been a candidate in the last
preceding local or national elections; and such person is employed by or financially interested in
a competing enterprise or a business selling electric energy or electrical hardware to the
cooperative or doing business with the cooperative, including the sale or rental of poles.
Meanwhile, the bill also seeks to amend Section 26-B of PD. 269, as amended by RA
10531, pertaining to Fit and Proper Rule for the director or officer of the electric cooperative.
The bill provides that to ensure the management of electric cooperatives is carried out with
due regard to its economic viability, a Screening Committee in each electric cooperative is hereby
directed to be established by its Board of Directors which shall be composed of the following: a
representative of the academe as Chairperson; a representative from the business community who
must be a member of the Philippine Chamber of Commerce and Industry (PCCI) of the province
or city where the concerned electric cooperative is located; a representative from the civil society
based in the region; and a representative from the religious community within its franchise area.

The members of the Screening Committee shall be appointed by the Chairperson based
upon nomination by their respective government accredited organizations. The chairperson shall
appoint one of the said nominees as vice chairperson.
The Screening Committee shall consider the integrity, experience, education competence
and probity in determining whether the candidate shall be fit and proper to become a director or
officer of the electric cooperative.
A director or officer of the electric cooperative shall meet the following qualifications:
must be a Filipino citizen; must be able to read and write; must possess a five-year experience in
management; must be at least 21years old; must be of good moral character; must be a member
of the electric cooperative in good standing for the last 12 months immediately preceding the
election or appointment; must be an actual resident and consumer in the district to be represented
for at least two years immediately preceding the election; and must have attended at least two
Annual General Membership Assemblies (AGMA) for the last three years immediately
preceding the election or appointment.
The NEA may, after due notice to the Board of Directors and Officers of the Electric
Cooperative, disqualify, suspend or remove any director or officer, who commits any act which
renders him unfit for the position. (30) rbb