Saturday, May 10, 2008 Palace hands-off on Meralco-GSIS issue
MALACAÑANG denied Friday that a takeover of the Manila Electric Company (Meralco) is within their policy insisting that they are into the privatization of government owned and controlled corporations (GOCC).
Deputy Presidential spokesperson Lorelei Fajardo said Malacañang had nothing to do with the threat of the Government Service Insurance Systems (GSIS) to buy out the First Philippine Holdings Corp. of the Lopez's, which is the majority shareholder of Meralco.
Fajardo said any possible changes in the management of Meralco are strictly a corporate issue but they, however, support the call of GSIS, as the second biggest shareholder of electric company, "for transparency in the books of Meralco."
"It is not the policy of this administration to take over the business of Meralco rather, it is the government's thrust to ensure that our people will have affordable energy especially since prices of most basic commodities are soaring due to the complaints on high cost of electricity," she said.
"We leave it to the GSIS and the Lopez's to assess the transaction. We have trust that GSIS will do what it can do, what it can to protect the interests of the majority. The Palace will be supportive of measures that can best benefit are people," she added.
GSIS president and general manager Winston Garcia said they are willing to sit down with the officials of Meralco to settle any misunderstanding, believing that the mismanagement of the company contributes to its high rates.
Estrella Elamparo, chief legal counsel and spokesperson of GSIS, said that while the GSIS has the capability to buy out the First Philippine Holdings Corp., there is no final decision yet if they would buy off the 33.4 percent share of the Lopez's to gain majority ownership of Meralco. GSIS at present has a 23 percent share. (JMR/Sunnex)
