Thursday, May 08, 2008 Palace won’t meddle in Meralco stockholders meeting
MALACAÑANG -- which reiterated that it has no intention of having government takeover the Manila Electric Company (Meralco) -- will leave the Government Service Insurance System (GSIS) alone when it attends Meralco’s stockholders meeting and election of new officers at month-end.
This was stressed last Wednesday by Executive Secretary Eduardo Ermita when asked if the Palace will be supporting the GSIS when it attends the Meralco stockholders meeting and election of officers on May 27. The GSIS, which owns 32 to 34 percent of Meralco’s shares, has asked Meralco management to open Meralco’s books to stockholders.
The Palace “has no penchant for taking revenge on anybody,” the executive secretary added.
Earlier in the government-televised press briefing, Ermita reiterated that “There is no plan to take over Meralco -- this came about (only) because of the query of GSIS, which has big share in Meralco, for them to have access to Meralco books, and they’re questioning the management practices.”
“And GSIS and DBP (Development Bank of the Philippines) constitute a big share (and) they felt it’s their right to ask Meralco to make available the records to improve the management,” he said.
Ermita added that “other than that, GSIS general manager Winston Garcia has his own position on the matter -- he will initiate a meeting with other stakeholders in Meralco, DBP, Landbank and other shareholders of Meralco.”
Asked if the government is capable of taking over the electricity-distribution firm, Ermita reiterated: “There is no intent and no sense to talk (about capability since there are no plans to take over).”
“Government always has the capability to run a public utility as necessary just like taking over the national airport. Capability-wise, yes, but there is no intention. The issue is how to bring down electricity rate and from the point of view of the GSIS, they would rather sit down with groups and other stakeholders and with the management of Meralco -- they might be able to bring down the cost. I have no idea but that is the only intention of GSIS,” Ermita said.
Meanwhile, presidential son and Pampanga Representative Juan Miguel “Mikey” Arroyo, chairman of the House committee on energy, accused the Lopez family of trying to “cover up” the issues against Meralco by insisting that politics is behind the government’s threat to take control of the power distributor.
Arroyo blamed the Lopezes, who also own ABS-CBN television network, for speculations that President Gloria Macapagal-Arroyo is only exacting political vendetta from them by threatening to seize Meralco.
“Whatever they say, the thing is we have high power rates and we need to know how to bring down the prices of electricity,” he said.
Government critics, particularly United Opposition president and Makati Mayor Jejomar Binay, believed that timing of the President's tirade against Meralco could very well be part of a pattern of harassment against her "perceived enemies" given the critical stance taken by ABS-CBN against the Arroyo administration on the issue of restrictions to media.
Congressman Arroyo said the Lopezes are obviously muddling the issue by injecting politics.
“Well, they can harp on whatever spin they want. The bottom line is we have high power rates. People are crying and we need to do something," he said.
While the House leadership supports the call of Senator Miriam Defensor-Santiago, chairperson of the Joint Congressional Power Commission, for the panel to convene and investigate Meralco’s inability to lower electricity rates, the energy committee still decided to push through with its own hearing on the issue.
The younger Arroyo challenged Meralco to open its financial books, contracts and all pertinent transactions and explain why it is unable to make the price of electricity cheaper. (Press release/WV/Sunnex)
