THIRD
DIVISION
FRANCISCO SILVA G.R.
No. 160174
as NEA Administrator,
Petitioner, Present:
QUISUMBING, J.,
Chairperson,
- versus - CARPIO,
CARPIO MORALES,
TINGA, and
VELASCO, JR., JJ.
LEOVIGILDO T. MATIONG, Promulgated:
Respondent.
August
28, 2006
x-----------------------------------------------------------------------------------------x
D E C I S I O N
CARPIO, J.:
The Case
Before
the Court is a petition for review[1]
assailing the
The Facts
Aklan Electric Cooperative, Inc. (AKELCO) is an electric
cooperative under the supervision and control of the NEA[4]
pursuant to Presidential Decree No. 269 (PD 269),[5] as
amended by Presidential Decree No. 1645 (PD 1645),[6]
and to the Contract of Loan between NEA and AKELCO dated 23 January 1996.[7] Respondent was
the general manager of AKELCO.
The
present controversy arose when the National Power Corporation (NAPOCOR) cut-off
the electricity in Aklan from 18-20 March 2002 for AKELCO’s failure to pay its approximately P25
million obligation.[8] Edita Bueno (“Bueno”), NEA
Officer-in-Charge and Deputy Administrator for Cooperatives Development and
Special Projects, formed a team to take-over the management and operations of
AKELCO.[9] On
On the same day, the AKELCO Board of Directors (AKELCO-BOD)
received a complaint from the different municipal mayors seeking the dismissal
of respondent as AKELCO general manager for gross incompetence and
mismanagement.[12] As early as
The
AKELCO-BOD issued Resolution No. 18 placing respondent under indefinite
preventive suspension to prevent him from exerting undue influence while the
audit and investigation were being conducted by the NEA management team.
On
On
Based on these conflicting board
resolutions, AKELCO obviously had an intra-corporate dispute involving two
factions of Board of Directors: one,
headed by Chito Peralta (“the Peralta faction”), and
the other headed by Melanio Rentillo
(“the Rentillo faction”). Due to the complexity of the issue, Bueno revoked the approval of Board Resolution No. 18 and
submitted the determination of the validity of the two board resolutions to the
NEA Board of Administrators (NEA-BOA).
Further, Bueno directed the opposing parties
to submit their respective position papers on the matter and enjoined them to
cooperate with the NEA management team.
The two factions submitted their respective position papers.
On
On
On the same day, the NEA-BOA issued Resolution No. 22[20]
authorizing petitioner to remove respondent
as general manager of AKELCO subject to the confirmation of the NEA-BOA,
allegedly pursuant to Section 5(e) of PD 269 as amended by PD 1645 (“PD 269 as
amended”).
On
x x x x
3. The AKELCO Board is directed to pursue action per approved Board Resolution 18, as qualifiedly approved by this office, importantly, its resolution placing Atty. Leovigildo T. Mationg under preventive suspension for thirty (30) days and that the investigation be terminated within the same period.
4. Pursuant to Section 5(a)(6), Chapter II of P.D. 269, as amended by Section 3 of P.D. 1645, Mr. Erico A. Bucoy is hereby designated to manage AKELCO in the meantime that its General Manager is under suspension.”
x x x x[21] (Emphasis supplied)
On
During the pendency
of the petition, the NEA-approved AKELCO BOD, along with the NEA-appointed
Executive Officer Erico Bucoy
(“Bucoy”), issued Board Resolution No. 32[23]
constituting itself as an investigating committee to look into the complaints
against respondent. In an undated
letter, Bucoy informed respondent of the
investigation of the charges against him and asked him to show why he should
not be terminated as general manager of AKELCO.
On
On
On
On
Meanwhile,
the NEA-BOA issued Resolution No. 37[28]
on
In
its Decision of
WHEREFORE,
the instant petition is hereby GRANTED.
The Resolution dated
SO ORDERED.[30]
The
Court of Appeals denied petitioner’s motion for reconsideration in its
Resolution of
Hence,
this petition.
The Ruling of the Court of Appeals
In nullifying petitioner’s issuances
and reinstating respondent as general manager of AKELCO, the Court of Appeals
ruled as follows:
At the outset, We shall first tackle respondent’s assertion that the instant case does not fall within our jurisdiction. In essence, respondent argues that the foregoing acts establish a labor dispute cognizable only by the Labor Arbiter. We disagree.
x x x What is at issue is whether or not respondent is vested with the authority to issue the assailed resolutions and orders.
x x x x
Furthermore, under Section 5 of the same law which amended Section 10 of PD No. 269, if the electric cooperative concerned or other similar entity fails after due notice to comply with NEA orders, rules and regulations and/or decisions, or with any of the terms of the Loan Agreement, the NEA Board of Administrators may take preventive and/or disciplinary measures including suspension and/or removal and replacement of any or all of the members of the Board of Directors, officers or employees of the Cooperative, other borrower institutions or supervised or controlled entities as the NEA Board of Administrators may deem fit and necessary and to take any other remedial measures as the law or the Loan Agreement may provide.
x x x It is the Board of Administrators and not the Administrator himself who is empowered to suspend and/or terminate the incumbent general manager and appoint an acting general manager of an erring electric cooperative. The Administrator cannot arrogate unto himself a power that is not given to him by the statute. It is a well-established rule of law that a public official must trace his powers from the statute that created the office or position. The power, however, need not be express but may be implied from the wording of the law. In the absence of such conferment, the public official cannot validly exercise the power. If executed and properly challenged, the unauthorized exercise of such power may be set aside. x x x
x x x x
x x x whether or not the Board of Administrators may validly delegate the foregoing powers to the NEA Administrator. We hold that it cannot. To sanction this delegation would violate the maxim: potestas delegata non delegari potest (what has been delegated cannot be delegated).
x x x x[32] (Emphasis supplied)
In its Resolution dated
The
Issues
While
petitioner raised numerous issues in his 121-page Memorandum,[34]
the crucial issue in this case is whether petitioner’s approval of the AKELCO-BOD’s resolutions suspending and terminating respondent as
AKELCO general manger is valid.
Inextricably related to this issue is the question of whether the NEA-BOA’s authorization for and confirmation of respondent’s
suspension and removal as AKELCO general manager by petitioner as then NEA
Administrator are legal.
The Ruling of the Court
The petition is meritorious.
Procedural Matters
At the outset, the Court declares
that its resolution of the present case
is confined to determining the validity of petitioner’s Resolution and
Orders insofar as the preventive suspension and dismissal of respondent are
concerned. The Court will refrain from
discussing other matters raised by petitioner immaterial to the resolution of
this main issue, such as the transfer of the AKELCO office to Lezo, Aklan, which is allegedly
pending before the Court of Appeals,[35]
the management take-over of AKELCO, and the composition of the AKELCO-BOD. The Court is not a trier
of facts. These incidental matters which
definitely require an examination of facts and evidence are not proper in a
petition for review which should only raise questions of law.[36]
Concerning the procedural issues
raised by petitioner, suffice it to state that substantial justice and the
public interest involved in this case far outweigh any procedural lapses
committed by respondent. Justice
dictates that this Court resolve the instant controversy on the merits than
dismiss it on the grounds of forum-shopping, non-amendment of the petition before
the Court of Appeals, collateral attack of various issuances of the NEA-BOA,
exclusion of indispensable parties, and non-exhaustion of administrative
remedies.
Moreover, the Court finds no
reversible error in the Court of Appeals’ findings on the issues of
jurisdiction, forum-shopping, exhaustion of administrative remedies, and
amendment of the petition for certiorari.
On the issue of jurisdiction, there is evidently no employment
relationship between the parties. Hence, the instant controversy does not
involve a labor dispute requiring the expertise of the National Labor Relations
Commission. This case involves the
exercise of the enforcement power of the NEA under Section 10 of PD 269 as
amended.[37]
On the issue of exhaustion of
administrative remedies, the Court holds that the main issues for resolution in
this case are purely legal. Thus, the
instant case falls within the recognized exceptions to the rule of exhaustion
of administrative remedies.[38]
On the issue of forum-shopping, the
Court sustains the Court of Appeals’ ruling that appeal is not a speedy and
adequate remedy for respondent.
Respondent’s “appeal” to the NEA-BOA appears to be a futile exercise
because the assailed issuances were subsequently confirmed by the NEA-BOA. Hence, respondent properly filed a petition
for certiorari with the Court of Appeals challenging the authority of
petitioner to suspend and remove him.
On the issues of collateral attack of
various NEA-BOA issuances and exclusion of indispensable parties, the Court
notes that petitioner raised them for the first time on appeal. Settled is the rule that issues not raised in
the court a quo cannot be raised for the first time on appeal because to
do so would be offensive to the basic rules of justice and fair play.[39]
Enforcement Power of the NEA
The NEA, as a public corporation, acts through its Board of Administrators, composed of a Chairman and four members, one of whom is the Administrator as ex-officio member.[40] The NEA exercises supervision and control[41] over electric cooperatives organized and operating under the mandate of PD 269, as amended. The extent of government control over electric cooperatives covered by PD 269, as amended, is largely a function of the NEA as a primary source of funds of these electric cooperatives.[42]
In
exercising its power of supervision and control over electric cooperatives, the
NEA, through its Board of Administrators, can issue orders, rules and
regulations, and motu proprio
or upon petition of third parties, can conduct investigations in all matters
affecting electric cooperatives pursuant to Section 10 of PD 269, as
amended. Further, the NEA-BOA may avail of the remedial
measures enumerated in Section 10 of PD 269, as amended, in case of
non-compliance by the electric cooperative concerned with NEA orders, rules and
regulations, and decisions, or with any of the terms of the Loan
Agreement. One of these remedial
measures, Section 10(e) of PD 269, as amended,
provides for the suspension or removal of members of the Board of
Directors, officers or employees of the defiant electric cooperative as the
NEA-BOA may deem fit and necessary, thus:
Section 10. Enforcement Powers and Remedies. In the exercise of its power of supervision and control over electric cooperatives and other borrower, supervised or controlled entities, the NEA is empowered to issue orders, rules and regulations and motu proprio or upon petition of third parties, to conduct investigations, referenda and other similar actions in all matters affecting said electric cooperatives and other borrower, or supervised or controlled entities.
If the electric cooperative concerned or other similar entity fails after due notice to comply with NEA orders, rules and regulations and/or decisions, or with any of the terms of the Loan Agreement, the NEA Board of Administrators may avail of any or all of the following remedies:
x x x x
(e) Take preventive and/or disciplinary measures including suspension and/or removal and replacement of any or all of the members of the Board of Directors, officers or employees of the Cooperative, other borrower institutions or supervised or controlled entities as the NEA Board of Administrators may deem fit and necessary and to take any other remedial measures as the law or the Loan Agreement may provide.
The
question is whether the NEA-BOA can delegate to the NEA Administrator its power
under Section 10(e) of PD 269, as amended, to take preventive and disciplinary
measures against electric cooperative officers.
Petitioner maintains that such power
of the NEA-BOA can be lawfully delegated to the NEA Administrator by virtue of
Section 5(b)(7) of PD 269, as amended.
Section 5(b)(7) refers to the NEA Administrator’s other powers and
duties which may be vested in him by the NEA-BOA.
On
the other hand, respondent contends that the power of the NEA-BOA under Section
10(e) of PD 269, as amended, is reserved solely to the NEA-BOA. In other words, the power of the NEA-BOA
under Section 10(e) of PD 269, as amended, cannot be validly delegated to the
NEA Administrator.
Under
Section 10 of PD 269, as amended, the power to impose preventive and
disciplinary measures on erring electric cooperative officers can be exercised
by the NEA-BOA as a collegial body to whom all the powers of the NEA had been
vested in.[43] Section 10(e) of PD 269, as amended,
categorically states that the NEA-BOA may take preventive or disciplinary
measures against an erring electric cooperative officer as the NEA-BOA may deem
fit and necessary.
Contrary
to the ruling of the Court of Appeals, there was no undue delegation of power
by the NEA-BOA to the NEA Administrator.
Resolution No. 22 provides:
WHEREAS, in Section 5(e) of P.D. No. 1645, the NEA Board may take preventive and/or disciplinary measures including suspension and/or removal and replacement of any or all of the members of the Board of Directors, officers or employees of the electric cooperative, other borrowing institutions or supervised or controlled entities as the NEA Board of Administrators may deem fit and necessary and to take any other remedial measures as the law or the Loan Agreement may provide;
RESOLVED TO AUTHORIZE
THE ADMINISTRATOR, as he is hereby
authorized, to remove the General Manager of Aklan
Electric Cooperative, Inc. (AKELCO) as the Administrator may deem fit and
necessary, subject to confirmation of the Board of Administrators.[44] (Emphasis
supplied)
It is clear from Resolution No. 22
that any action of the NEA Administrator is subject to the confirmation of the
NEA-BOA. What is delegated to the NEA
Administrator is only the power to investigate and to make a recommendation,
not the power to discipline.[45] The disciplining authority is still the
NEA-BOA. The authority of the NEA
Administrator is only recommendatory. If
it were otherwise, there is no need for any confirmation by the NEA-BOA. Thus, any sanction or penalty arising from
any investigation by the NEA Administrator takes effect only upon confirmation
by the NEA-BOA.
The act of the NEA-BOA in delegating
the power to investigate to the NEA Administrator is not without basis. Hence:
The rule that requires an administrative
officer to exercise his own judgment and discretion does not preclude him from
utilizing, as a matter of practical administrative procedure, the aid of
subordinates to investigate and report to him the facts, on the basis of which
the officer makes his decisions. It is
sufficient that the judgment and discretion finally exercised are those of the
officer authorized by law. x x x[46]
Even this Court, in its exercise of
its disciplinary authority over lower
court justices, judges, judicial employees and lawyers, delegates the power to
investigate administrative complaints.
Thus:
[T]he Constitution grants the Supreme Court disciplinary authority over
all lower court justices and judges, as well as judicial employees and
lawyers. While the investigation of
administrative complaints is delegated usually to the Office of the Court
Administrator (OCA) or the Integrated Bar of the Philippines (IBP), the Court
nonetheless makes its own judgments of the cases [where] sanctions are
imposed. It does not merely adopt or
solely rely on the recommendations of the OCA or the IBP.[47]
In this case, the phrase “subject to
confirmation of the Board of Administrators” implies that the final decision
rests on the NEA-BOA. The NEA-BOA may
confirm, modify or nullify the act of the NEA Administrator.
Further, the delegation of authority
by the NEA-BOA was in accordance with Section 5(b)(7) of PD 269, as amended,
which grants the NEA Administrator the following powers and duties:
(1) To execute and administer the policies, plans and program, and the rules and regulations, approved or promulgated by the Board of Administrators;
(2) To submit for the consideration of the Board of Administrators such policies, plans and programs as he deems necessary to carry out the provisions and purposes of this Decree;
(3) To direct and supervise the operation and internal administration of the NEA and, for this purpose, to delegate some or any of his powers and duties to subordinate officials of the NEA;
(4) Subject to the guidelines and policies established by the Board of Administrators, to appoint and fix the number and compensation of subordinate officials and employees of the NEA; Provided, however, [t]he provisions of the Civil Service Law and Position Classification Law shall not apply to the appointment and compensation of any such subordinate official or employee;
(5) For cause, to remove, suspend, or otherwise discipline any subordinate official or employee;
(6) To prepare an annual report on the activities of the NEA at the close of each fiscal year and to submit a copy thereof to the President of the Philippines and when it comes into existence, the Prime Minister and the appropriate committee of, and as determined by, the National Assembly; and
(7) To exercise such other powers and duties as may be vested in him by the Board of Administrators.
x x x x (Emphasis supplied)
The
Court notes that petitioner did not motu proprio issue the assailed Resolution and Orders
suspending and removing respondent as AKELCO general manager. The AKELCO-BOD initiated the suspension and
termination of respondent through the issuance of Board Resolutions. The AKELCO-BOD submitted its Board
Resolutions suspending and removing respondent to NEA for approval. This procedure is in accordance with Section
24(a) of PD 269, as amended, which states in part that “the management of a
cooperative shall be vested in its Board [of Directors], subject to the
supervision and control of NEA which shall have the right to x x x approve all policies and resolutions.” In approving the AKELCO-BOD resolutions,
petitioner was acting pursuant to the authorization[48]
issued by the NEA-BOA. More importantly, the NEA-BOA confirmed petitioner’s
issuances approving the suspension and removal of respondent.
The Court notes that petitioner’s
counsel relied on several decisions of the Court of Appeals in addition to
Supreme Court cases to buttress his arguments. The Court reminds counsel that
decisions of the Court of Appeals are neither controlling nor conclusive on
this Court. Moreover, the Court strongly
suggests that petitioner’s counsel be brief and straightforward in drafting
pleadings. He should, as much as possible, refrain from quoting lengthily irrelevant portions of Supreme
Court decisions. The Court further
advises petitioner’s counsel to observe and maintain the respect due to courts
at all times. An unfavorable judgment
can never justify the use of intemperate language against the courts.
WHEREFORE,
the Court GRANTS the petition.
The Court SETS ASIDE the
SO
ORDERED.
ANTONIO T. CARPIO
Associate Justice
WE CONCUR:
LEONARDO A. QUISUMBING
Associate Justice
Chairperson
CONCHITA CARPIO MORALES DANTE O. TINGA
Associate Justice Associate Justice
PRESBITERO J. VELASCO, JR.
Associate Justice
ATTESTATION
I attest that the conclusions in the
above Decision had been reached in consultation before the case was assigned to
the writer of the opinion of the Court’s Division.
LEONARDO A. QUISUMBING
Associate Justice
Chairperson
CERTIFICATION
Pursuant to Section 13, Article VIII of the
Constitution, and the Division Chairperson’s Attestation, I certify that the
conclusions in the above Decision had been reached in consultation before the
case was assigned to the writer of the opinion of the Court’s Division.
ARTEMIO V. PANGANIBAN
Chief Justice
[1] Under Rule 45 of the Rules of Civil Procedure.
[2] Penned by Associate Justice Eubulo G. Verzola, with Associate Justices Martin S. Villarama, Jr. and Mario L. Guariña III, concurring. Rollo, pp. 453-462.
[3]
[4] Rollo, pp. 539-548.
[5] Creating the “National Electrification Administration” as a Corporation, Prescribing its Powers and Activities, Appropriating the Necessary Funds Therefor and Declaring a National Policy Objective for the Total Electrification of the Philippines on an Area Coverage Service Basis, the Organization, Promotion and Development of Electric Cooperatives to Attain the Said Objective, Prescribing Terms and Conditions for their Operations, the Repeal of Republic Act No. 6038, and for Other Purposes.
[6] Dated 8 October 1979.
[7] Rollo, pp. 539-548.
[8] Id. at 454.
[9] Id.
[10] Id.
[11] Id.
[12] Id. at 455.
[13] Id.
[14] Id.
[15] Id.
[16] Id. at 192-194.
[17] Id. at 582.
[18] Composed of Alicia F. Mercado, Benita A. Montilla, and Rodney Z. Magbanua.
[19] Rollo, pp. 588-593.
[20] Id. at 597.
[21] Id. at 594-595.
[22] CA
rollo, pp. 2-26.
[24] Id. at 604-605.
[25] Id. at 607-609.
[26] Id. at 521-523.
[27] Id. at 142-147.
[28] Id. at 631-632.
[29] Id. at 453-462.
[30] Id. at 462.
[31] Id. at 525-536.
[32] Id. at 459-461.
[34] Id. at 705-824.
[35] Rollo, pp. 806, 811.
[36] Section 1 of Rule 45 reads:
SECTION 1. Filing of petition with Supreme Court. ― A party desiring to appeal by certiorari from a judgment or final order or resolution of the Court of Appeals, the Sandiganbayan, the Regional Trial Court or other courts whenever authorized by law, may file with the Supreme Court a verified petition for review on certiorari. The petition shall raise only questions of law which must be distinctly set forth. (Emphasis supplied)
[37] Section 10. Enforcement Powers and Remedies. In the exercise of its power of supervision and control over electric cooperatives and other borrower, supervised or controlled entities, the NEA is empowered to issue orders, rules and regulations and motu-proprio or upon petition of third parties, to conduct investigations, referenda and other similar actions in all matters affecting said electric cooperatives and other borrower, or supervised or controlled entities.
If the electric cooperative concerned or other similar entity fails after due notice to comply with NEA orders, rules and regulations and/or decisions, or with any of the terms of the Loan Agreement, the NEA Board of Administrators may avail of any or all of the following remedies:
(a) Refuse to make or approve any loan to the borrower or to release funds to implement loans that are otherwise already approved;
(b) Withhold NEA advances, or withhold approval of advances or fund releases in behalf of any other lender with respect to which the NEA has such power relative to loans made;
(c) Withhold any technical or professional assistance otherwise being furnished or that might be furnished to the borrower;
(d) Foreclose any mortgage or deed of trust or other security hold by the NEA on the properties of such borrower, in connection with which the NEA may, subject to any superior or co-equal rights in such lien held by any other lender, (1) bid for and purchase or otherwise acquire such properties; (2) pay the purchase price thereof and any costs and expenses incurred in connection therewith out of the revolving fund; (3) accept title to such properties in the name of the Republic of the Philippines; and (4) even prior to the institution of foreclosure proceedings, operate or lease such properties for such period, and in such manner as may be deemed necessary or advisable to protect the investment therein, including the improvement, maintenance and rehabilitation of systems to be foreclosed, but the NEA may, within five years after acquiring such properties in foreclosure proceedings; sell the same for such consideration as it determines to be reasonable and upon such terms and conditions as it determines most conducive to the achievement of the purposes of this Decree; or
(e) Take preventive and/or disciplinary measures including suspension and/or removal and replacement of any or all of the members of the Board of Directors, officers or employees of the cooperative, other borrower institutions or supervised or controlled entities as the NEA Board of Administrators may deem fit and necessary and to take any other remedial measures as the law or the Loan Agreement may provide.
No Cooperative shall borrow money from any source without the Board of Administrator’s prior approval: Provided, That the NEA Board of Administrators, may, by appropriate rule or regulation, grant general permission to Cooperative to secure short-term loans not requiring the encumbrance of their real properties or of a substantial portion of their other properties or assets.
[38] Regino v.
Pangasinan Colleges of Science and Technology,
G.R. No. 156109,
[39] R.P. Dinglasan
Construction, Inc. v. Atienza, G.R. No. 156104,
[40] Section 5(a) of PD 269 as amended.
[41] Section 38(1), Chapter 7, Book IV of the Administrative Code of 1987 defines supervision and control as follows:
Supervision and control shall include authority to act directly whenever a specific function is entrusted by law or regulation to a subordinate; direct the performance of duty; restrain the commission of acts; review, approve, reverse or modify acts and decisions of subordinate officials or units; determine priorities in the execution of plans and programs; and prescribe standards, guidelines, plans and programs. Unless a different meaning is explicitly provided in the specific law governing the relationship of particular agencies, the word “control” shall encompass supervision and control as defined in this paragraph.
[42] Philippine Rural Electric
Cooperatives Association, Inc. (PHILRECA) v. The Secretary, Department of
Interior and Local Government, G.R. No. 143076,
Under Section 60 of Republic Act No. 9136 or the “Electric Power Industry Reform Act of 2001,” all outstanding obligations of electric cooperatives to NEA shall be assumed by the Power Sector Assets and Liabilities Management (PSALM) Corporation in accordance with the program approved by the President within one year from effectivity of RA 9136. Section 60 of RA 9136 provides:
Upon
the effectivity of this Act, all outstanding
financial obligations of electric cooperatives to NEA and other government
agencies incurred for the purpose of financing the rural electrification
program shall be assumed by the PSALM Corp. The ERC shall ensure a reduction in
the rates of electric cooperatives commensurate with the resulting savings due
to the removal of the amortization payments of their loans. Within five (5)
years from the condonation of debt, any electric
cooperative which shall transfer ownership or control of its assets, franchise
or operations thereof shall repay PSALM Corp. the total debts including accrued
interests thereon.
[43] Section 5 of PD 269 as amended states that “[a]ll of the powers of the corporation (NEA) shall be vested in and exercised by a Board of Administrators x x x.”
[44] CA rollo, p. 189.
[45] See Mollaneda v. Umacob, 411 Phil. 159 (2001).
[46] Mollaneda
v. Umacob, supra, citing American Tobacco Co. v. Director of
Patents, No.
[47] See Department of Health v. Camposano, G.R. No. 157684,
[48] Per Resolution No. 24-A issued by
the NEA-BOA on
WHEREAS, the NEA Administrator is often confronted with problems on how to act with dispatch on cases involving disciplinary action against REC officials (Board of Directors and/or General Manager), particularly, enforcement of NEA’s authority under Sec. 5(e) of P.D. 1645;
WHEREAS, there have been cases when REC officials have continued to defy NEA’s orders, despite repeated reminders to comply with the same, underscoring the need for strict and immediate action by the Administrator, including preventive suspension of said erring REC officials, to ensure the continuous smooth operations of the REC concerned;
WHEREAS, this emergency measure, in most cases, has had to await the decision and action of the NEA Board of Administrators, which normally meets once a month;
RESOLVED THEREFORE, to grant the Administrator, as he is hereby granted, standby authority to exercise the power under Sec. 5(e) of P.D. 1645, particularly, placing REC officials under preventive suspension, PROVIDED that such immediate and strict measure is, in his judgment, necessary to ensure the continuous smooth operations of the REC concerned; and PROVIDED FINALLY, that such emergency measure is submitted to the Board of Administrators for confirmation.
Also
per Resolution No. 22 issued by the NEA-BOA on
WHEREAS, in Section 5(e) of P.D. No. 1645, the NEA Board may take preventive and/or disciplinary measures including suspension and/or removal and replacement of any or all of the members of the Board of Directors, officers or employees of the electric cooperative, other borrowing institutions or supervised or controlled entities as the NEA Board of Administrators may deem fit and necessary and to take any other remedial measures as the law or the Loan Agreement may provide;
RESOLVED TO AUTHORIZE THE ADMINISTRATOR, as he is hereby authorized, to remove the General Manager of Aklan Electric Cooperative, Inc. (AKELCO) as the Administrator may deem fit and necessary, subject to confirmation of the Board of Administrators.