ABC ELECTRIC COOPERATIVE, INC.: Masquerade Right after Engr Ace Puno finished his electrical engineering course at FRONT University in 2000, he was hired as an employee of the National Electrification Administration (NEA). He was assigned to handle jobs in the various units of NEA until his promotion to Chief Planning Officer in 2008. His main function was to supervise the planning activities of his unit. Three engineers and two other employees reported directly to him. His performance was rated very satisfactory. Engr Ace Puno attended training sessions of various kinds including those for management. He finished his MBA course in 2010. When the position of general manager of the ABC ELECTRIC COOPERATIVE, INC. Became vacant in January 2011, he was nominated by NEA. He got the post in March 2011. Aware of the many problems besetting the cooperative, he immediately went to work. 1. When Engr Ace Puno called the key officers of the cooperative to a meeting, he was appraised of the following: That the price of electricity charged to ABC ELECTRIC COOPERATIVE, INC. customers is the fifth highest in the country; 2. That 25% of the electric service provided by ABC ELECTRIC COOPERATIVE, INC. Is lost every month and cannot be accounted for; 3. Requisitions for supplies and materials are served after delays of as long as three months; 4. Some employees of the cooperative do not report regularly for work; 5. The increasing amount of uncollected accounts. Three days after the meeting, he recommended to the board of directors the following: 1. The dismissal from the service of employees not regularly reporting for work; 2. Salary increases of up to 20 percent for every employee on the payroll; 3. The hiring of eight additional employees; and 4. The formation of a team to investigate and recommend measures to minimize "system loss". All his recommendations were approved by the board, after which Engr Ace Puno signed all the necessary memoranda to implement his programs. He made regular inspections of the activities of the various units of the cooperative. During the first week of March 2012, he convened the key officers for an evaluation of the past year 's activities. The following points were made clear to him: No reduction in the price of electricity could be extended to ABC ELECTRIC COOPERATIVE INC Customers because