Tuesday, May 06, 2008 Palace backs scrutiny of Meralco’s books
MALACAÑANG said it supports Government Service Insurance System (GSIS) chairman Winston Garcia in scrutinizing the books of the Manila Electric Company (Meralco), but not in its takeover by the GSIS.
“We don't need to make any enemies where we don't need to. We just want to reduce power cost,” Press Secretary Ignacio Bunye said.
Bunye, who is also the Presidential spokesman, said the public has the right to know whether Meralco's charges are fair, citing the charges on systems losses and reports that customers are being charged for Meralco's income tax.
He said the corporation law states that GSIS, which has 33 percent shares in Meralco and holds four of 11 board seats, has the right to scrutinize Meralco's books as long as the examination is done during office hours.
Bunye dismissed questions on a possible vendetta by the Palace against Meralco and its owners, the Lopez family.
He said ordinary Filipinos would understand the need for transparency and the desire to know if the public is being charged properly in their electric bills.
The Energy Regulatory Commission (ERC) heard last week the petitions to lower power cost in Luzon, including Meralco's charges.
President Gloria Macapagal-Arroyo has ordered the National Power Corporation (Napocor) to cut generation charges down to P4.11 per kilowatt hour as an incentive for Meralco to reduce distribution rates.
However, Bunye said the proposal to remove the expanded value-added tax (e-VAT) on power is “a cure worse than the disease” because it would result in more foreign borrowings. (JMR/Sunnex)
