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MEMORANDUM No. 2017-035

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ALL ELECTRIC COOPERATIVES
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SUJECT REVISED POLICY ON THE SELECTION, HIRING, TERMINATION

OF SERVICE/SUSPENSION FOR GENERAL MANAGERS OF
ELECTRIC COOPERATIVES (JRD REVISION)

I. RATIONALE

The power industry has been deregulated and has become highly competitive as a
result of the Electric Power Industry Reform Act (EPIRA) of 2001. The Electric
Cooperatives (ECs) and the other players in the industry have to contend with the
new r~quirements of the regulators, suppliers as well as the demands of the
Member-Consumer-Owners (MCOs). ",

Moreover, Republic Act No. 10531 of 2013 Amending Presidential Decree No. 269
Mandated NEA to promote Sustainable Rural Development through Rural
Electrification , which under the new vision of NEA shall be attained in partnership
with Globally Competitive ECs and Empowered MCOs.

Thus, to ensure the able compliance and successful respons·e by·the ECs to all these
new challenges , an EC General Manager (GM) must be highly qualified , competent
and dedicated to spearhead all efforts towards the attainment of the targeted results.

The selection, hiring and termination of service/suspension of a GM are some of the

most sensitive procedures in an EC. To promote transparency and prevent
complications that may arise from the conduct of such procedures, a uniform set of
standards for the selection , hiring and termination of service/suspension of a GM, to
be followed by all ECs, is instituted by the NEA thru this policy.

II. POLICY STATEMENTS

1. NEA's guidelines specify the qualification standards for a GM which include the
prescription on academic preparation, work experiences, personality and
character and other qualities. (amended)

2. The Board of Directors (BOD) of an EC shall appoint or terminate the

service/suspend a GM in accordan.ce with the guidelines set forth by the NEA.

3. The Board of Directors and the successful applicant shall enter into a
Performance Management Contract (PMC) to ascertain the level of competency
and potential as initially determined by the entrance test results, during actual
application , is effective and sustained.

(02) 929-1 909

www.nea.gov.ph
 Ill. IMPLEMENTATION

1. Publication of the Vacancy

a) On the request of the Board or upon determination of NEA, an advertisement

shall be published by NEA on behalf of the EC, in at least one major
newspaper of nationwide circulation that will appear in one Sunday and one
Monday issue. The EC will also advertise the vacancy in provincial papers
covering its service area. (See attachment 1 for sample). The coop will pay
for both the national and local advertisements.

b) Should the EC Board choose to recommend to NEA a Department Manager

of the EC to the vacant position , an advertisement shall be made in the local
newspaper informing the MCOs in coverage area of such recommendation
based on the following:

b.1) Such Department Manager has been an OIC of the EC for a period of
six (6) months;
b.2) Has been rated very satisfactory in his/her performance during his/her
six (6) months stint as OIC ;
b.3) Shall undergo the regular process of hiring prescribed by NEA rules
and regulations.

The public shall also be encouraged to submit any information in support of

the application or otherwise.

c) 1. To avoid undue influence to the EC Board and Management, an

incumbent Board Director is eligible to apply for the position of GM only
after three (3) years that he has ceased to be a member thereof. this shall
also apply to incumbent directors applying for the position of GM in other
ECs.

2. To give all applicants vying for the position a fair and just chance in the
selection process, an incumbent OIC-GM who applied for the GM position
shall relinquish his/her designation as OIC.

d) Qualifications

d.1 Applicant must have a bachelor's degree from accredited

schools/universities in any of the following fields:

• Engineering (preferably Electrical, Mechanical and Electronics

and Communications Engineer)

• Business Administration/Finance Management

U.P. LAW Ct:N l ER
OFFICE of the NATIONAL ADMINISTRATIVE REGiTER ACCOUntancy
Adm1nistra t1ve Rules and Re gulations ·
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d.2 Completion of post graduate degree or its equivalent, or with
master's degree/s is preferable

d.3 Must have at least five (5) years supervisory experience and must
be willing to relocate with his family in the coop headquarters site.

d.4 Trainings/seminars in any or all for the following areas:

• Electric Cooperative Principles Supervision and/or Management

• Strategic Planning/Organization and Operation af Business
Enterprises
• Values Enhancement and Leadership Trainings
• Resource Utilization, Development and Management
• Corporate Governance
• Energy Management
• Technology Management

d.5 Skills Required

• Communication Proficiency (Oral and Written)

• Computer Literacy
• Networking Ability
• Effective Public Relations

d.6 Work Experiences

• At least five (5) years experience with proven track record in the
effective management of a successful electric utility-related
business enterprise.
• Must have held at least two or more senior management positions
involving business leadership or managerial functions .
• Must have no derogatory or adverse administrative record in any
of his/her previous employment/s.

d.7 Personality and Character

U.P. LAW CENTER
OFFICfi ~i tll; NMIONAl, AOMINISiRATIVE REGISTER

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• Sound Physical and Mental D1spos1t1on . Adm1~ 1 ~trhtiv@ Ruin and Regulations
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Strong Leadership Qualities
Ability to Withstand Pressure
OCT 2 ~ 2017
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• Pragmatic and Productive Outlook in W., IECCJ:EITWIE I/
• High Sense of Integrity TIME: BY:
• Logical Reasoning and Judgment
• Enthusiastic and Innovative Work Attitude
• Profound Values in Humility and Honesty
 2. Screening of Applicants

a. All applicants shall use NEA Form 4-1 (Attachment 2) and shall submit the
completed application form to the Institutional Development Department
(100)-NEA within the deadline indicated in the advertisement.

b. All applicants shall pass thru a qualifying written examination to be

administered by NEA which shall measure Intelligence Quotient,
Emotional Quotient, computer literacy, knowledge of the industry and
management perspectives.

An essay examination shall be taken by the applicant using the computer,

as a gauge to measure applicant/s knowledge and capability relevant to
the operation of an electricity/power industry.

c. A Preliminary Screening Team composed of NEA Members in the

Selection Committee shall process applications of those who passed the
qualifying examinations to determine their fitness to the stipulated vacant
position. ·

The Selection Committee for General Managers shall be composed of the

following:

Chairperson - Director for IDD

Members Director for EC Audit,

Director for Finance
Director for Account Management
Director for Engineering
Director for Management and Consultancy
Services Office,
Director for Corporate Planning
Director for Opass
Head Executive Assistant

d. The pre-qualified candidates will be invited to appear for personal

interview before the selection committee at NEA on a designated date. An
applicant who fails to report for interview shall be deemed to have waived
his/her right to be interviewed.

e. The Selection Committee shall choose best qualified applicants on the

basis of scores obtained in the interview using NEA form 4-2 (Attachment
3). Only applicants who attained a score of 80 or above shall qualify for
further consideration . Mechanics for rating shall be defined in the
implementing rules issued for this purpose .

f. These applicants shall then undergo background investigation (Bl) to be

conducted by NEA. To aid NEA in the conduct of investigation, the
applicants shall be required to submit the fo11owing sJqcaJDients:

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 1) Municipal Trial Court (MTC) Clearance/Regional Trail Court
Clearance (RTC)
2) Police Clearance
3) NBI Clearance
4) Baran gay Clearance
5) Medical Clearance (including results for psychological
examination)
6) Drug Test Result (through blood test)
7) Diploma
8) Transcript of Record (graduate and post-graduate studies)
9) Statement of Assets and Liabilities (SALN)
10) Combine 2 Years copy of Income Ta·x Return (ITR)
11) Birth Certificate
12) Marriage Contract (if applicable)
13) Photocopy of Board/Bar License/s (If Applicable)
14) Service Record
15) Certification of no record of apprehension on electricity pilferage
from issued by the EC TSO

g. After the Bl, applicants with no derogatory records will be called for final
interview before the NEA Board of Administrators.

h. The list of applicants wtio passed the NEA Board final interview, with
necessary information and results of the Background Investigation , shall
then be transmitted to the EC Board for perusal and selection.

3. Selection. From the list of names forwarded by NEA, the EC BOD shall select
the GM of their choice. In the event that the Board rejects all pre-qualified
applicants, a Board Resolution shall be submitted to NEA containing valid
reason(s) for such rejection which shall then be evaluated, and if found
reasonable the entire selection process may again be undertaken at the
expense of the EC. However, if the reasons given are unreaspnable the NEA
shall appoint from among the pre-qualified applicants. The EC board shall
then be informed of such appointment.

4. Approval. The EC Board shall then notify the applicant of his selection as GM
or appointment as GM by NEA, as the case maybe, under a Performance
Management Contract (PMC) for one (1) year (copy of template is attached).
A PMC shall be executed between the EC Board and the applicant. The PMC
and Board Resolution shall then be submitted to NEA for approval within 10
days from the execution of the PMC together with the workplan mentioned in
item no. 5.

The PMC shall be submitted to NEA with all supporting documents mentioned
above and within the prescribed period. Otherwise , no action shall be taken
by NEA on PMC with incomplete documents .
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 The EC Board shall be held responsible and accountable to ensure that all
prescribed requirements for the approval of PMC is complied with.

5. Probationary Period. The GM shall submit a work plan as an integral part of

the PMC detailing his actions for one (1) year with clear and measurable
performance indicators. This shall be the basis of the evaluation by the BOD.

6. Orientation. To assist the GM to meet his/her new job responsibilities quickly

and easily, he/she shall attend NEA seminars like CMG I and II for new coop
General Managers and Board of Directors. The orientation shall be
undertaken during the period of PMC.

7. Permanent Appointment. Sixty (60) days defore the expiration of the PMC of
the GM, the Board will notify NEA of its dFcision and ask approval together
with the GM's Performance Evaluatio by the Board. No permanent
appointment shall be made without NEA a proval. The board's decision shall
be in the form of a.resolution accompanie by a completed evaluation sheet.
The· NEA shall conduct its evaluation bas don the workplan submitted .

8. Termination of Service/Suspension. If the oard decides to terminate his/her

employment, the Board shall submit to NIEA of its decision through a Board
Resolution and shall request approval. Th~ GM cannot be dismissed without
NEA approval. No action shall be taken t~ dismiss a GM until the case has
been reviewed by the NEA to make sure THAT any action taken will comply
with the existing rules of NEA and labor la s.

9. Desi nation of an Officer-In-Char e OIC . In · case of resignation ,

suspension, termination, leave of absen?e or official travel outside of the
cooperative area, ·an OIC shall be designated from among the Department
Managers of the EC. Except for reason ~leave of absence or official travel
not exceeding one month, in which the aut ority to designate an OIC is vested
on the GM, designation for all other reas ns shall rest on the Board, subject
to the approval of the NEA. In no case sh II an incumbent Board Director or
one who is not an incumbent employee o the EC be designated as OIC.

IV. GENERAL

The successful operation of an electric cooperati e as a service enterprise depends

in substantial degree upon the effectiveness of it General Manager. It is, therefore,
essential that a competent, dedicated person o high integrity be selected for this
position. This is major responsibility of the Board of Directors. NEA Is Mandated
under section 4 (e), chapter 2 of republic act 10 31 to supervise the management
and operations of ECs and will exercise close upervision over the selection and
dismissal of the General Manager.

V. POLICY GUIDELINES

The NEA shall issue such guidelines as may be deemed necessary to implement this
policy.
U.P. LAW CENTER J.
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OFFICE of the NATIONAL ADMINISTRATIVE REGI SfE :" I I ... uJ.. , Q~:~~ri~~i:u.;,1 1~1.. "'""-- !
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VI. Approved by the NEA Board of Administrators through Resolution No. 128, s. 2017
on 23 October 2017. This supersedes NEA Memorandum No. 2004-022 dated
October 21, 2004; NEA Memorandum No. 2004-023 October 21, 2004 and NEA
Memorandum No. 2008-008 dated May 12, 2008.

VII. This guidelines shall take effect on the fifteenth (15 1h) day following its publication in
the newspaper of general circulation and in the University of the Philippines (UP)
Law Center.

EDGARDO R. MASONGSONG
Administrator
NATIONAL ELECTRIFICATION
ADMINISTRATION

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U.P. LAW CENTER

OFFICE of the NATIONAL ADMINISTRATIVE REGISTER
Administrative Rules and Regul ations

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