The editorial article titled “Wasted subsidies” (Inquirer, 7/9/13) referred to the National Electrification Administration (NEA) as one example of a government-owned and-controlled corporation (GOCC) where government subsidies are wasted. The statement was based on the Senate Planning Office Study done in 2006, covering the period 1999-2004.
It is true that NEA is among the GOCCs being closely monitored by the Department of Finance, but it has not been a burden to the national government since its restructuring in 2004. In fact, it has taken major strides in ensuring good corporate governance and sound financial management, and in fulfilling its mandate of “totally electrifying the country on an area coverage basis.”
Government subsidies are not used for NEA’s operations (e.g., expenses for salaries and wages, maintenance, utilities); they are exclusively used for the electrification of each barangay and sitio, and for the rehabilitation of damaged distribution lines. In 2009-2010, through the Pantawid ng Kuryente: Katas ng VAT Program, the Department of Social Welfare and Development tapped NEA as a partner in providing subsidy for the electricity payments of electric cooperatives’ consumers.
Also, through the 44 years of the Rural Electrification Program, NEA and its partner-electric cooperatives have made a strong impact on the socioeconomic landscape of the countryside, providing electricity to 1,475 municipalities and cities, 36,049 barangays, 89,332 sitios; serving about 47 million Filipinos (as of May 31, 2013).
Since August 2004, under the stewardship of Administrator Edita S. Bueno, it has accomplished the following:
* Positive net margin. Since 2004, NEA has been in the black due to its enhanced lending program and prudent corporate practices. It has sustained a positive net margin since its financial turnaround in 2004 (earning a net income of P2 million after a P5.9-billion net loss in 2003;
100-percent debt servicing. NEA has been paying 100 percent its debt service obligations to the finance department in the past six years (2007-2012);
* Unqualified audit opinion (from the Commission on Audit) on NEA’s financial position for six consecutive years (2007-2012);
* Cited for effective Public Governance System (PGS) by the Institute for Solidarity in Asia (ISA) in 2007, PGS-compliant in 2008, PGS-proficient in 2009 and PGS-institutionalized in 2010. ISA is an organization committed to lead sectoral leaders, public officials and citizens to the pathway of good governance;
* Among the top 10 state firms in corporate governance in 2006 (citation made by the Institute of Corporate Directors for Best Practices);
* One of the top 5 GOCCs with the highest rating in the Government Energy Management Program in 2005 (5-star ratings, with 93-percent and 95-percent scores in 2006 and 2008, respectively); and
* The first government corporation to implement the electronic National Government Accounting System in 2005.
—JUDITH T. ALFEREZ, director,
Public Affairs Office,
National Electrification Administration