Monday, September 24, 2007

Hope for OMECO

OMECO is losing, as we all know. And it seems the present management is inutile -- as they have shown time and again -- in arrestint the monthly deficit of the electric cooperative.
Nonetheless, there is a NEA Memorandum (2006-018), dated 30 June 2006, that is on Annual Roundtable Assessment of A GM's Performance.
What is this? Let us get the salient points.
The intention accordingly is institutional strengthening, being one of NEA major thrust. Under EPIRA, NEA is mandated to prepare the electric cooperatives (EC's) to become competitive in the deregulated electric power industry. To make this happen, the significant role of GM, that is, his competence and level of performance must be gauged.
Going along with this roundtable assessment is NEA's policy to measure GM's competence or lack of it in different aspects of EC's operations, provide adequate feedback mechanism to enhance and develop his skills and thus improve the operations of EC's, and to provide the venue for change of leadership, if results warrant.
How is it to happen?
GM shall be required to undergo the roundtable assessment before a panel of evaluators composed of NEA top management, invited outstanding EC officials and private sector representatives. The Board President or authorized representative of the Board shall be present during the assessment. GM shall be required to submit his annual accomplishment report for presentation to the panel... on or before the end of February of each year. He shall report before the panel of evaluators his major accomplishments, problems and workplan... The EC's performance shall be evaluated based on key performance indicators (KPI).. and the GM's management skills... The results of assessment (including areas for improvement) in a report card form shall be given to the GM and their respective Boards for guidance and monitoring and appropriate action. The Board of Directors of a GM who has not attained improvements in operations and given a very low mark shall accordingly discuss his possible replacement.
For the rating parameters, the following are the KPI's: 1. Net Margin (Positive); 2. Collection Efficiency (95-100%); 3. System Loss (14%); 4. Payment of NPC (current); 5. Payment to NEA (current); 6. Non-Power Cost (P1,500); 7. Average Collection Period (30-45 days); 8. Customer per Employee (1:350); Power Factor (Not <85%).
For GM's management skills and behavior: Technical Knowledge (able to suggest modifications to an existing system or design a new system to improve performance); Communication Skills (presents information and ideas clearly and concisely, with content and style appropriate for the audience; presents opinions and ideas in an open, unprejudicial way; responds effectively without preparation in spontaneous situations); Creativity/Innovation (ability to produce/recommend artistic and new ideas as well as to introduce new methods, devices and ways of doing things in a more efficient and effective manner); Leadership (able to manage group interaction; promotes open discussion and involvement of all participants while not dominating; motivates and empowers others to act; able to gain cooperation from unreceptive people; challenges existing policies and procedures in a responsible manner; create shared organizational values and culture); Integrity (adherence to high moral and ethical standards); Networking (ability to reach out and establish good rapport among the stakeholders).
Papasa kaya dito si GM Labrador?
For this year, GM Labrador was already evaluated and the results of the evaluation already transmitted to OMECO Board for its appropriate action. Actually, on 29 July 2007, NEA received OMECO Board Resolution No. 48, 2. 2007, "Resolution expressing confidence and support of the OMECO Board of Directors to the commitment made by the GM during the Roundtable Assessment." The Board requested that GM Labrador be given enough time to turn-around the coop towards financial viability and operational efficiency.
Talk of an entire Board that is at the behest of the GM...
Tandaan po natin ito, dahilan sa malapit na naman ang eleksyon ng mga miyembro ng Board of Directors ng OMECO.

Sunday, September 23, 2007

The OMECO AFFAIR -- again!!!

We are fortunate to have gotten a copy of what is supposed to be a document openly accessible to all the subscribers of OMECO. It's the Financial and Statistidcal Report for the Month of July, 2007. From this, salient points may be culled.
1. OMECO paid the IPC the amount of P1,011,432,24. Since the beginning of 2007, the total payment of OMECO to IPC is 7,060,412.09. Umuusok pa ba ang IPC? News has it that IPC is no longer functioning. We are brought back to the old question regarding the IPC's capability to operate. For, if it is still functioning, then why the need for NPC power plants? The point here is that IPC does not deliver according to the stipulations of the contract between itself and OMECO. And it is not penalized. This brings me to a corollary point: I actually expect the Villarosa's to know the demands of delicadeza. In the spirit of concern for the province, can they initiate the rescinding of the contract?
2. For the month of July, 2007 OMECO has negative margin of revenue minus the expenses in the amount of P2,039,510.83. For the month of June, 2007, it was P1,447,006.50. Since January, 2007 the accumulated deficit of OMECO is P8,925,738.71.
3. After depreciation expenses, OMECO lost -- for July, 2007 -- P4,123,681.60; while its deficit is P3,548,638.19 for June, 2007. From January 2007, its accumulated deficit after depreciation is P23,782,450.09. Other way of saying this is: lugi na nga, wala pang pang-improve ng mga facilities.
4. Up to July, 2007, OMECO has an unpaid debt for power supply in the amount of P141,625,030.32. This is OMECO's payable to OMECO.
What shall we do? I suppose all our actions shall commence with the installation of another, this time sensical, General Manager of OMECO.

Friday, September 21, 2007

I Am Back...

I am back.. Yes, after some weeks of hibernation. It helps to rest if one must, in order to get oneself very well in focus when one goes back to what he vocationally does.
In my absence, there were lessons that I stumbled across which are too valuable in life to ignore. For one, I came into contact with a living testimony of how, for example, a communist state -- although it has begun to experiment with opening its system up, especially its economic system, to influence of capitalism -- can actually overtake a democratic nation like ours in terms of economic progress. I am referring to Vietnam. A war-torn country, that has a history of a hundred years or so of resistance against Chinese invasion, Vietnam defeated the American soldiers and their high-tech military hardware -- as what happens to the same hapless American soldiers in Iraq. I, at the outset, was thinking that probably to explain the phenomenon of our lagging behind and Vietnam overtaking us is our difference of the over all systems of our and their nations' life. We are capitalists, and we love free market. We pride of our practise of democracy. Vietnam is just beginning to open its doors to slowly let in capitalism. Their government is very well into the business of regulating the market, as opposed to neo-liberal economic philosophy. They are yet to go over their communism.
However, I believe that I am still to learn more in order to more fully understand the realism that I've found. For as I am back, I feel distressed -- again!!! -- since I came to know that ours in Mindoro is actually not a hopeless case. Ours is just a result of the confluence of a politically immature population, and a second rate political leaders.