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MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Order No. 409, December 3, 1996 ]

CONSTITUTING AN AD HOC COMMITTEE TO TEMPORARILY TAKE OVER AND MANAGE THE AFFAIRS OF THE CAMARINES NORTE ELECTRIC COOPERATIVE, INC. (CANORECO)

To efficiently and effectively address the worsening problem of the Camarines Norte Electric Cooperative, Inc. (CANORECO) and in order not to prejudice and endanger the interest of the people who rely on the said cooperative for their supply of electricity, an AD HOC Committee is hereby constituted to take over and manage the affairs of CANORECO until such time as a general membership meeting can be called to decide the serious issues affecting the said cooperative and normalcy in operations is restored. Further, if and when warranted, the present Board of Directors may be called upon by the Committee for advisory services without prejudice to the receipt of their per diems as may be authorized by existing rules and regulations.

The AD HOC Committee shall be composed of the following:

REX TANTIONGCO Presidential Assistant on Energy Affairs	Chairman
HONESTO DE JESUS Cooperative Development Authority Nominee	Member
ANDRES IBASCO Cooperative Development Authority Nominee	Member
TEODULO M. MEA National Electrification Administration Nominee	Member
VICENTE LUKBAN National Electrification Administration Nominee	Member

The said Committee shall have the following functions:

1. Designate the following upon the recommendation of the Chairman:

1.1 an Acting General Manager who shall handle the day-to-day operations of the Cooperative. In the meantime, the General Manager shall be deemed to be on leave without prejudice to the payment of his salaries legally due him; and

1.2 a Comptroller who shall handle the financial affairs of the Cooperative.

2. Ensure that:

2.1 all bills and collections due from the consumer-members are paid fully and promptly;

2.2 withdrawals and other operating bank transactions from the cooperatives bank accounts are made only under the signatures of those authorized by the AD HOC Committee;

2.3 all assets, properties, premises, records, bank accounts, etc. of the cooperative are maintained and accounted for;

2.4 all legitimate employees of the cooperative report to their respective work places and be unified under the AD HOC Committees auspices;

2.5 the account with the National Power Corporation is kept current;

2.6 maturing obligations with NEA are paid fully and promptly;

2.7 a comprehensive management, performance and financial audit is done as soon as possible;

2.8 the present security force/s of the Cooperative be completely changed and overhauled;

2.9 all measures necessary and called for under the circumstances are taken within the shortest possible time.

The AD HOC Committee shall submit a written report to the President, through the Office of the Executive Secretary, every two (2) weeks from the effectivity of this Order.1aшphi1

A General Membership Meeting shall be called by the AD HOC Committee to determine whether or not there is a need to change the composition of the membership of the Cooperatives Board of Directors. If the need exists, the AD HOC Committee shall call for elections. Once the composition of the Board of Directors is finally settled, it shall decide on the appointment of a General Manager in accordance with prescribed laws, rules and regulations. Upon the appointment of a General Manager, the Committee shall become functus officio.

This Memorandum Order shall take effect immediately.

Manila, 3 December 1996.

(Sgd.) FIDEL V. RAMOS

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary

The Lawphil Project - Arellano Law Foundation

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