It is returning approximately P14 million worth of electronic loads it earlier captured from a network of at least 100 sub- dealers and retailers in the Visayas and Mindanao.
But the company is insisting it did nothing wrong when it deactivated the Mother Dealer and Sub-Dealer Subscriber Identification Modules (SIM) issued to the Integrated Distribution Network Inc. (IDNI) and its 100 sub-dealers and retailers, thereby resulting in the captured millions.
Smart’s Atty. Roger Quevedo said they are sticking to the argument even if it means going to court.
Lawyers representing the IDNI, together with a lawyer that the IDNI provided for its sub-dealers, and representatives from Smart squared off at the National Telecommunication Commission (NTC) yesterday morning.
The “mediation conference” lasted for close to two hours behind closed doors. After the conference, Smart called for a press conference.
“The sub-dealers are the crux, the heart, of our operation,” said Quevedo in announcing why they were returning the captured load.
60 days only
In justifying why they captured the load to begin with, Quevedo said the electronic loads sold to IDNI, which the latter re-sold to the network of sub-dealers, had a 60-day validity that ended May 15.
He pinned the blame on IDNI, who earlier filed a criminal complaint for large-scale estafa against Smart before the Office of the Cebu City Prosecutor, for “failing to inform the sub-dealers” of the limited shelf life.
According to Quevedo, they have a document that shows how IDNI, one of only 11 Smart accredited dealers nationwide, was informed of the limit.
The load had been purchased as part of a compromise agreement to settle a P14-million payable that Smart owed IDNI chief executive officer Salvador Gonzales.
Under that compromise agreement, dated Oct. 4, 2006, Smart allowed IDNI to buy P379,881,600 worth of electronic loads at a discount sufficient to pay off half of Smart’s payables. IDNI accepted “just to buy peace and be able to move on.”
Paid for
But Atty. Alvin Butch Cañares, one of IDNI’s counsel, disputed the claim.
“I challenge them to produce any document during the preliminary investigation or the trial proper on the estafa complaint,” said Cañares.
The estafa complaint cited provisions of Presidential Decree (PD) 818 because of the amount involved. Estafa under PD 818 is a non-bailable offense, with a 30-year jail term for those convicted.
“We communicated with them so many times on this matter, to the point of going to Manila to seek an audience with them, but nothing happened. It is only now that the NTC has intervened that they have decided to return the captured load,” Cañares said.
He said the estafa complaint, which impleaded Smart president Napoleon Nazareno and other officials, would continue.
NTC Director Danilo Sy, in an interview after the mediation, said that Smart “definitely had” to return the captured load.
“Whatever issues they have with IDNI, it is different with the sub-dealers. The captured load had already been paid for,” he said.
Sy, however, admitted there are no guidelines to govern how carrier companies like Smart should transact its electronic-load business. The incident might pave the way for future policies.
