08 June 2022

EMMANUEL P. JUANEZA
Administrator
National Electrification Administration
57 NIA Road, Government Center, Diliman Quezon City

MOTION FOR REVERSAL

(Decision of Deputy Administrator Atty. Omar Mayo on Protest
Case No. 2022-02)

COME NOW, the undersigned member of the Board of

Directors (BOD) of the Misamis Oriental II Electric Service
Cooperative, Inc. (MORESCO II) unto the Honorable NEA
Administrator, Emmanuel P. Juaneza most respectfully submit
this Motion for Reversal of the Decision of Deputy Administrator
Atty. Omar Mayo on Protest Case No. 2022-02 in the matter of
the disqualification of Engr. Amado B. Ke-e to run as candidate
for the District of Medina in the District Election scheduled on
June 5, 2022, and assert as follows:

A-PREFARATORY STATEMENT

1. On June 3, 2022, the undersigned member of the

MORESCO II BOD (hereinafter, the BOD) received the
Decision of Deputy Administrator Atty. Omar Mayo on
Protest Case No. 2022-02 resolving the verified Appeal of
the undersigned MORESCO II Board of Director affirming in
toto the Decision dated May 28, 2022 and Resolution dated
June 2, 2022 of the Screening Committee of MORESCO II
disqualifying him to run as candidate for Director in the 5
June 2022 District Election for Medina. Please see copy of
the Decision hereto attached and made an integral part
hereof as Annex “A”.

2. According to the Decision, the Screening Committee of

MORESCO II disqualified the undersigned Board of Director
on the basis of Article XI, Section 4 of the MORESCO II
Articles of Incorporation and By-Laws, which prohibits a
General Manager or any member of the Board “up to third
degree of relationship either in (sic) consanguinity or
affinity” from being employed or receiving compensation for
services to the EC.

3. The Decision of the Deputy Administrator also declared

the non-applicability of NEA Memorandum No. 2005-022, as
the same has been deemed superseded by NEA
 Memorandum No. 2014-2019, The Guidelines on the
Conduct of District Elections for Electric Cooperatives, to
incorporate the changes brought about by the passage and
effectivity of Republic Act No. 10531 which amended
Presidential Degree No. 269.

B-GROUNDS RELIED UPON FOR THE MOTION

4. This Motion is filed on the following grounds, to wit:

A. All provisions of the By-Laws of the electric

cooperative inconsistent with the provisions of 2014
Guidelines on the Conduct of District Elections for
Electric Cooperatives are repealed, amended or
modified accordingly.

B. The disqualification of the undersigned Board of

Director on the basis of Article XI, Section 4 of the By-
Laws of MORESCO II is incorrect.

C. NEA Memorandum No. 2005-022 is applicable and

shall continue to have full force and effect.

C-ARGUMENTS AND DISCUSSION

All provisions of the By-Laws of the electric

cooperative inconsistent with the provisions of 2014
Guidelines on the Conduct of District Elections for Electric
Cooperatives are repealed, amended or modified
accordingly.

5. Memorandum Circular 2014-019, Series of 2014, which

pertains to the 2014 Guidelines on the Conduct of District
Elections for Electric Cooperatives (Election Code for brevity)
had been framed pursuant to Republic Act No. 10531 and its
Implementing Rules and Regulations, as well as other
related DOE and NEA Issuances incorporating the new
qualifications and disqualifications of an EC Director or
Officer.

The Election Code, having been approved by the NEA Board

of Administrators through Board Resolution No. 118, Series
of 2014 dated 08 May 2014, shall govern the conduct of
district elections of all ECs and supersede the 2005 Election
 Code and other issuances which are inconsistent with its
provisions.

Moreover, Article XIII Section 58 of the Election Code

referring to the Repealing Clause explicitly states that all
provisions of the By-Laws of the electric cooperative,
resolutions passed by the EC Board and any previous NEA
Issuances anent Rules and Regulations in the Conduct of
Electric Cooperative District Election or provisions thereof
inconsistent with the provisions of these Guidelines are
hereby repealed, amended or modified accordingly.

Hence, Article XI, Section 4 of the By Laws of

MORESCO II on Nepotism, being inconsistent with Article II,
Section 8.5 of Memorandum No. 2014-019 or the Guidelines
on the Conduct of District Elections for Electric Cooperatives
is not applicable as it is deemed repealed, amended or
modified.

II

The disqualification of the undersigned Board of

Director on the basis of Article XI, Section 4 of the
MORESCO II By-Laws is incorrect.

6. The unanimous decision of all the members of the

Screening Committee to disqualify the undersigned BOD on
the basis of Article XI, Section 4 of the By Laws of MORESCO
II, which reads as follows is bereft of legal merit.

“SECTION 4. Nepotism. No relative of the General

Manager or any member of the Board of up to the third
degree of relationship either in consanguinity or affinity
shall be employed by the Cooperative or receive
compensation for service to the Cooperative.”

The foregoing Miscellaneous Provision of the By Laws of

MORESCO II is inapplicable and should not be misconstrued
as a ground for disqualification of any person or aspiring
candidate for Director as to render him/her ineligible to be
elected or appointed as member of the Board of Directors of
an electric cooperative. Nowhere is it expressed in the By-
Laws that this specific provision should be understood and
interpreted as a ground for disqualification.

This provision of the By-Laws merely says that no

relative of the General Manager or any member of the
Board of up to the third degree of relationship shall be
employed (meaning, prospective) by MORESCO II or
receive compensation for service to the cooperative. Thus,
this provision is not applicable to the case of the
undersigned BOD since he has no relative seeking
employment from MORESCO II to begin with.

The governing and prevailing rule on disqualification

with respect to relationship by consanguinity or affinity is
embodied in Article II, Section 8.5 of Memorandum No.
2014-019 or the Guidelines on the Conduct of District
Elections for Electric Cooperatives. It states that any person
shall not be eligible to be elected or appointed as member of
the Board of Directors of an Electric Cooperative if such
person is related within the fourth civil degree of
consanguinity or affinity to any member of the Electric
Cooperative Board of Directors, General Manager,
Department Manager, NEA-appointed Project
Supervisor or Acting General Manager and its
equivalent or higher position.

In this regard, it is very clear that the undersigned BOD

is qualified and does not possess such disqualification since
he does not have any relative employed for the above-
mentioned positions.

In addition, NEA Memorandum No. 2005-022 referring

to the Addendum and Amendment to the 2005 Election
Guidelines for Electric Cooperatives clarified that any
person related to any member of the incumbent
Board, General Manager and employees holding the
position of Department Manager, Area Manager and
other equivalent positions within the fourth civil degree of
consanguinity or affinity shall be disqualified to run as Board
Director.

On the basis of the foregoing provision, it is very

evident that the undersigned BOD should not be disqualified
because the persons that the Screening Committee specified
in its Letter of Disqualification particularly Mr. Genaro
Legaspi, Mr. Dexter B. Ke-e and Ms. Emalyn P. Gabule do
not hold the aforesaid positions as they hold merely rank
and file positions.

Furthermore, the same rule on disqualification is

supported by Rule III, Section 15 (f) of Department of
Energy Circular No. 2013-07-0015, which prescribes the
Implementing Rules and Regulations of Republic Act No.
10531, otherwise known as the National Electrification
Administration Reform Act of 2013.

The said Department Circular reiterated that any

person shall not be eligible to be elected or appointed as
 member of the Board of Directors of an Electric Cooperative
if such person is related within the fourth civil degree of
consanguinity or affinity to any member of the Electric
Cooperative Board of Directors, General Manager,
Department Manager, NEA-appointed Project
Supervisor or Acting General Manager and its
equivalent or higher position.

III

NEA Memorandum No. 2005-022 is applicable and shall

continue to have full force and effect.

7. According to the Repealing Clause of the Election Code as

stated in Article XIII Section 58, NEA Memorandum- 012
issued on 21 March 2005, on the Consolidated Guidelines in
the Conduct of EC District Election and other NEA related
issuances shall continue to have full force and effect.

Therefore, NEA Memorandum No. 2005-022 dated 04

August 2005 is still applicable and shall likewise continue to
have full force and effect since it is not inconsistent with NEA
Memorandum No. 2014-019 as the same only serves to
clarify queries of the electric cooperatives (ECs) regarding
certain provisions of the 2005 Election Guidelines. This
memorandum is apparently an addendum and amends
original NEA Memorandum 2005-012, Article II, Section 7,
Item 13, of the 2005 Election Guidelines for Electric
Cooperatives, as approved by the NEA Board of
Administrators.

The Amendment clearly states that any person

related to any member of the incumbent Board,
General Manager and employees holding the position
of Department Manager, Area Manager and other
equivalent positions within the fourth civil degree of
consanguinity or affinity shall be disqualified to run as Board
of Director.

D-PRAYER

In the light of all the foregoing, the undersigned member of

the MORESCO II Board of Directors most respectfully pray of the
Honorable NEA Administrator to:
 A. REVERSE and SET ASIDE the Decision of Deputy
Administrator Atty. Omar Mayo on Protest Case No. 2022-02 in
the matter of the disqualification of Engr. Amado B. Ke-e to
run as candidate for the District of Medina in the District
Election scheduled on June 5, 2022;

B. CONDUCT the District Elections for District 6, that is the

District of Medina, Misamis Oriental scheduled on June 5, 2022
with the undersigned MORESCO II Board of Director as the
lone qualified candidate.

Other reliefs just and proper under the premises are likewise
prayed for.

RESPECTFULLY SUBMITTED, this 8th day of June 2022, in the

Municipality of Medina, Misamis Oriental, Philippines.

AMADO B. KE-E, PEE

Member, MORESCO II BOD