May 24-25, 2008

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May 25, 2008 Mind Bullet Inc.
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I.BANNER STORIES

1. Philippine Daily Inquirer

Cheaper power or bust
Solons: Meralco clash lead to reforms, lower rates
By TJ Burgonio, Abigail L. HoPhilippine Daily InquirerFirst Posted 01:46:00 05/25/2008
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MANILA, Philippines—The public expects nothing less than lower power rates to result from the annual stockholders’ meeting of the Manila Electric Co. (Meralco) on Tuesday, lawmakers said on Saturday.
The election this year of the Meralco board has taken on national significance because of the aggressive campaign of Winston Garcia, the president and general manager of the Government Service Insurance System (GSIS), to bring about a change in management in the Lopez-led power distribution utility.
“I’m hoping that a fair compromise could be worked out. But at the end of the day, everybody wants lower power rates,” said Iloilo Rep. Ferjenel Biron, who chairs the House committee on legislative franchises.
Senior Deputy Minority Leader Roilo Golez said he expected the boardroom battle between Garcia, who holds the proxies of government financial institutions (GFIs), and Meralco and its proxies on Tuesday to lead to reforms.
“At the end of the day, there will be reforms. Meralco is a big corporation with a huge public interest involved. Whoever wins, the proxy war will lead to reforms,” he said.
Palawan Rep. Abraham Mitra said that whatever agreement was worked out, “it should be the people who should benefit in terms of lower power rates.”
‘Abusive practices’
Meralco is holding its annual stockholders’ meeting on Tuesday, with the GSIS’ Garcia hoping to gain an absolute majority and control to effect changes in Meralco’s management, whose allegedly “abusive practices” he blamed for the country’s very high electricity rates.
Garcia, who holds one of four government seats in the 11-man board, has accused the Meralco management team of, among other things, lack of transparency about the company’s financial status, engaging in “disadvantageous and self-dealing” transactions with Lopez-owned and affiliated entities, and “subservience to Lopez interests.”
GSIS owns 25 percent of Meralco’s shares while other GFIs hold another 10 percent, giving the government a 35-percent stake in the country’s largest power distribution utility. The Lopez group owns 33.54 percent. The rest of the shares are held by various individual stockholders and nominee corporations.
Reduce pass-on charges
Garcia is hoping that the board’s three independent directors will side with the GFIs and give them the majority needed to effect a change in management.
Legislators said any change in the management of Meralco should lead to reforms.
For instance, Meralco’s pass-on charges should be scrapped for the sake of consumers, Biron and Golez said.
“I’m sure the Lopezes are reasonable individuals. If they can do something about it, they will,” Biron said.
“There should be progressive reduction in the systems losses until we reach the halfway mark to improve the efficiency of the system, run after pilferers and reduce losses from pilferage,” said Golez.
Meralco has come under fire from legislators and consumer groups for passing on to consumers its electricity bills and the so-called systems loss, or what it loses from theft and pilferage or technical problems.
Live coverage
The law allows private power distributors to pass on to consumers up to 9.5 percent of their systems losses. The pass-on rate for electric cooperatives is 14 percent.
Legislators also believe that there should be live media coverage of the Tuesday meeting.
“It should be transparent. The proceedings should be covered live without any commercial or commentary. And let the people form their own opinions,” Mitra said.
“Considering the public interest involved, it will be good to have it covered,” said Golez.
A group of independent power producers meanwhile warned that the Meralco imbroglio could make foreign investors lose interest in investing in the Philippines’ power sector.
“What’s happening to [Meralco] creates a very high degree of uncertainty. Meralco, after all, is their [the IPPs] biggest potential buyer,” said Ernesto Pantangco, president of the Philippine Independent Power Producers Association (Pippa).
“But this doesn’t only affect Meralco but all of the distribution utilities, which are the main buyers of power from generation facilities,” said Pantangco.
Omnibus petition
The Bureau of Trade Regulation and Consumer Protection (BTRCP) has filed with the Energy Regulatory Commission an omnibus petition to stop Meralco from collecting systems loss charges and to refund what it collected, and to refund as well to non-lifeline customers the amount paid for the lifeline subsidy.
The bureau said Meralco should stop charging systems loss charges since the law, RA 7832, was vague on this cost recovery scheme.
It also urged the ERC to compel Meralco to extend preferential treatment to poor households and to provide incentives to power-intensive industries in the allocation of transmission charges.
It said Meralco should also be compelled to “observe prudent purchasing practice” by buying more from the wholesale electricity spot market during off-peak hours, and to charge a distribution rate “at least equal to or lower than” those being charged by its counterparts in the Visayas and Mindanao.
Wait-and-see attitude
Pantangco said that foreign investors also considered in their valuation the transition supply contracts attached to generation facilities, and not just the value of the plants themselves.“Because of these developments, foreign investors are seriously thinking of adopting a wait-and-see attitude. The momentum that the privatization process has achieved will be wasted,” he said.

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080525-138683/Cheaper-power-or-bust


2. The Philippine Star

Yano to turn over military HR suspectsBy Reinir Padua Sunday, May 25, 2008
Newly installed Armed Forces of the Philippines (AFP) chief Lt. Gen. Alexander Yano warned erring officers and troops that he will personally turn them over to civilian authorities if they become involved in summary executions and human rights abuses.
Yano stressed that he will not tolerate wrongdoing under his leadership.
“I will surrender those personnel who will become suspect (in any case of human rights violations)…I will not hesitate to surrender them to really make sure those involved will have to answer,” he said.
Yano emphasized his respect for human rights and vowed to implement measures against violations committed by military personnel.
He said military field commanders are under strict orders to implement the national policy against human rights violations.
“I have given strict instructions to our commanders that they will face (consequences based on the principle of) command responsibility,” he said.
He admitted that some incidents of summary executions were perpetrated by “scalawag” military men acting on personal motives.
And with human rights violations always linked to the military’s counter-insurgency strategy, Yano said it was improbable the communist New People’s Army (NPA) would be completely eradicated.
“We can’t reduce insurgency to zero,” he said, adding that even the United States has its share of armed rebel groups.
He said the AFP “cannot afford to do a shortcut” and should always “operate within the bounds of the law.”
The target year of 2010 set by President Arroyo to wipe out the decades-old Maoist insurgency does not necessarily mean neutralizing all communists but reducing them to an “insignificant number,” Yano said.
At this level, the NPA will now be a thing of the past, he added.
However, Yano said the deployment of soldiers in slum areas in Metro Manila – an issue which drew protests from militant groups during the election period last year – will stay “as long as necessary.”
There are around 50 teams of troops deployed in urban areas in the metropolis, according to AFP spokesman Lt. Col. Ernesto Torres.
Yano said these soldiers deployed in Metro are actually “doing a fine job.”
“If you ask the barangay captains (about the presence of soldiers in their areas), you’ll get a good response,” he said.
Yano said the soldiers are tasked to participate in civil military operations to “win the hearts and minds” of the urban poor.
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=2008052494


3. Manila Times

Pump prices surge for the 12th time this year
As expected, the country’s big petroleum firms increased their pump prices after independent oil companies gave in to the soaring prices of crude in the world market on Friday.
Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines Inc. (formerly Caltex) and Total Philippines Corp. increased the price of diesel by P1.50 per liter, kerosene by P1.50 per liter and gasoline by P1.00 per liter at their retail stations late Friday evening.
This was the 12th price hike implemented by the oil companies this year alone. The increase pegged the diesel at between P43.17 to P45.47 per liter, kerosene between P47.65 and P50.50 per liter and gasoline between P50.33 and P52.57 per liter.
The oil firms, which provide the bulk of the country’s fuel needs, again attributed the hefty hike of their pump prices to the unabated increase in oil prices abroad, which recently hit a record-setting $130 dollar per barrel, while the Dubai crude rose to an all-time high of $129 per barrel on May 23.
The regional benchmark for unrefined crude is now averaging at $117.57 per barrel for the month of May, also higher from $103.41 per barrel in April.
For finished petroleum products, the average price of imported diesel and unleaded gasoline at the Mean of Platts Singapore (MOPS) rose to $156.13 per barrel and $127.76 per barrel in May from $141.98 per barrel and $118.08 per barrel, respectively, in April.
Data from the Department of Energy’s daily oil monitor said the high oil prices remain driven by supply worries, US dollar decline and market speculations.
Citing supply constraints, Goldman Sachs Group Inc, the most active investment bank in energy markets, even predicted crude to jump to $141 per barrel in the second half of the year.
In light of this, consumers—who are already reeling from the increasing prices of commodities—are urged to be conscientious with how they utilize energy resources.
Earlier, Petron Corp. Chairman Nicasio Alcantara said the regime of “higher energy prices will continue and it should become a way of life for the public for us to be conscious of high energy prices not only for fuel but also for electricity.”
Various groups have been calling on the government to fast- track the snail-paced development of the country’s indigenous energy resources, biofuels industry and alternative fuel sources that will shield consumers from expensive oil imports in the long run instead of implementing tariff and tax cuts.
http://manilatimes.net/national/2008/may/25/yehey/metro/20080525met1.html


4. Malaya

Protests swamp ComelecElectoral sabotage law will be tested
BY JP LOPEZ
THE Commission on Elections has found itself under attack from all political fronts over allegations of massive fraud which accompanied the May 14 midterm elections.
Senate minority leader Aquilino Pimentel Jr. said yesterday the opposition is "determined" to file criminal cases for election sabotage against officials of the Commission on Elections allegedly involved in "massive electoral fraud" in the recent elections.
Pimentel identified the officials as Rey Sumalipao, Comelec regional officer for Autonomous Region in Muslim Mindanao, and Remlane Tambuang, Comelec regional director for Southern Mindanao.
Pimentel said Sumalipao "has been challenging us to file cases against him, we will accommodate him and find out just exactly what’s going to happen."
"This will be the first time where the electoral sabotage will be tested in court, whether it will really work against those who perpetuated the fraud," he said.
He said Tambuang allegedly ordered his subordinates in Davao City "to pad the votes for certain Team Unity senatorial candidates."
"According to our informant, Director Tambuang told his subordinate officials ‘huwag siyang ipahiya (don’t put him to shame) and do something for my list of TU candidates’," Pimentel said.
Re-electionist Sen. Panfilo Lacson on Wednesday called for the immediate implementation of the crime of election sabotage under Section 42 of R.A. 9369 where the penalty is life imprisonment.
The law, which was passed last January, states "that any and all either persons or individuals determined to be in conspiracy or in connivance with the members of the BEIs (Board of Election Inspectors) or BOCs Board of Canvassers) involved, shall be meted the… penalty of life imprisonment."
Pimentel said his son Aquilino "Koko" Pimentel III was a victim of vote-shaving in Davao city.
He said the act of shaving 85,000 votes from Koko was "consummated" and "(the election officials) were caught with their finger on the pie."
Pimentel said he was also informed that Tambuang has a new car.
"So we’re asking the Comelec, the heads at the Comelec, to look into this matter to find out just exactly why all of a sudden Tambuang acquired a new vehicle in the midst of all the counting that is ongoing," he said.
Anakpawis Rep. Crispin Beltran said that by failing to ensure clean and peaceful midterm elections, Comelec has also failed to redeem itself from the accusations of massive electoral fraud in 2004.
"At the grassroots level, Comelec representatives and officials overseeing the local elections have been inutile in stopping electoral fraud; neither have they been decisive in settling disputes and protests that have erupted when fraud was detected. In a word, the Comelec has performed poorly," he said.
Beltran is under hospital arrest for rebellion charges over the alleged coup plot in February last year.
Beltran said the incoming 14th Congress must assess the performance of the Comelec and its chairman and consider calling for a top to bottom revamp.
Beltran said the Comelec under Abalos has not been the standard bearer for clean and fraud-free elections. "It is not surprising that there’s already a groundswell of support for calls for a revamp in the Comelec, beginning with the chief commissioner’s post," he said.
He said it was not the Comelec but mostly through the efforts of independent poll election watchdogs and foreign observers "that the incidents of fraud were detected and reported."
Koko Pimentel asked Comelec to exclude or annul the certificate of canvass (COC) from Maguindanao saying the document is "drenched with intrigues of electoral fraud."
The COC was supposed to be read last Tuesday but was deferred for today.
In a 23-page petition Pimentel said that as early as a week before the May 14 polls, possible election-related fraud in several areas in the country including the Autonomous Region of Muslim Mindanao was reported in media.
He cited a report from Bantay Boto, an election watchdog group composed of retired military and police generals, which gave details of "Oplan Mercury Rising," an alleged plot to rig the elections in favor of Team Unity senatorial candidates.
"Invariably, these accounts on "Oplan Mercury Rising" included the province of Maguindanao as an area of concern where electoral fraud will be perpetrated in favor of the candidates of the current administration of President Gloria Macapagal-Arroyo who are known as Team Unity," he said.
He said there were reports that as of 7:15 p.m. on May 15, partial results from 11 towns in Maguindanao showed that all TU candidates were in the top 12.
"This observation finds support in the very admission of the provincial administrator of Maguindanao who openly declared that the results of the elections therein were a product of "consultations" with constituents, which consultation left the voters with no choice, there being a subsequent sanction for non-compliance therewith," he said.
Pimentel cited reports from election watchdog groups on the purported admission of teachers in Maguindanao that they filled the ballots with the names of TU candidates starting from Luis Singson and Prospero Pichay.
"This particular admission came hand-in-hand with the accusation of the Namfrel that officers of the commission in Maguindanao were withholding copies of the provincial elections returns from Namfrel volunteers," he said.
Congressional and gubernatorial candidates in Bataan want Comelec to declare a failure of elections in the whole province due to massive vote buying, harassment and fraud.
National security adviser Norberto Gonzales, in a forum, said his daughter, Maria Aurora "Marie" Gonzales, will file an election protest on Monday against re-elected Rep. Albert Garcia of the second district of Bataan. Gonzales and Garcia belong to the administration coalition.
The national security adviser said Felicito Payumo, who won as congressman for the first district, will file a separate election protest along with gubernatorial candidate Leonardo Roman. Roman lost to Gov. Enrique Garcia Jr.
Gonzalez denied he is just sour-graping.
He said he has evidence and witnesses to back up the complaints of irregularities in Bataan.
He said he has sent a letter to PNP chief Oscar Calderon dated May 18 to investigate provincial chief Sr. Supt. Odelon Ramoneda and Bataan deputy intelligence chief Supt. Arnold Gunacaw for harassing candidates and voters.
He said he is preparing a letter to Abalos to relieve Ramoneda and Gunacaw while the PNP investigation and election protests are on going.
Gonzales said the recent elections showed "hired killers" are back.
"Nakita natin sa mga probinsya may mga hired goons na," he said.
He said he will raise the issue of the hired goons, hired killers, and involvement of police officers in the election violence in the next Cabinet meeting. – With Wendell Vigilia, Gerard Naval and Jocelyn Montemayor
http://www.malaya.com.ph/may25/news1.htm


5. Manila Bulletin


6. The Daily Tribune

Garcia threatens lawsuit vs Lopezes

05/25/2008
With the stockholders’ annual meeting just a few days away, the word war between Government Service Insurance System (GSIS) president and general manager Winston Garcia and the Manila Electric Co. Lopez bloc stepped up, with Garcia yesterday threatening to file a large-scale estafa charge against Meralco chairman and chief executive officer Manuel “Manolo” Lopez over the alleged billions of pesos in unrefunded meter deposits.
Garcia said Meralco’s own financial statement would show that the company used some P14 billion in meter deposits instead of putting the amount in a trust fund account for each customer.
At the same time, GSIS spokesman lawyer Estrella Elamparo, in a telephone interview with the Tribune, complained that even as the proxy list underwent validation Friday, she alleged that Meralco has, to date, not given the GSIS bloc a copy of its verification and validation of the proxy list.
Elamparo told the Tribune that during the verification and validation process, it was clear
to the Elamparo told the Tribune that during the verification and validation process, it was clear to the GSIS bloc that the proxies for the Lopez group did not comply with the Securities Regulation code, stressing that “in order to validate these proxies, one must first comply with the code,” part of which she noted is the compliance of the proxy to use the official proxy form which carries with it the formal requirements, such as indicating the party from whom the proxy has been solicited, among other rules.
The GSIS spokesman also stressed that the GSIS bloc found glaring anomalies in the proxy papers, such as double entries.
“In two to three proxy forms, it was evident that they all came from the same person. There were no specifications, no allocation of shares, which goes against the code. The double entries also can result in double counting,” she said.
Garcia, for his part, said the meter deposits were included by Merlco in its payable account, which he said means that Meralco used the money as a loan, which will eventually be passed on to consumers.
This alone constitutes large scale estafa, he said.
Large-scale estafa is a non-bailable offense which carries a life imprisonment penalty.
The Energy Regulatory commission (ERC) had prohibited Meralco from collecting meter deposits in 2004, but it has been already four years since that ERC order and Meralco has yet to refund a single centavo of the P14 billion.
The P14 billion has already ballooned at present to P21.4 billion, including interests earned, a statement from GSIS said.
Garcia said Meralco has not explained how it used the meter deposits, and that each should make a full accounting of the same.
He also vowed to file charges against Meralco assistant corporate secretary Anthony Rosete for violation of the Corporation Code and Securities Act. The GSIS chief will also seek the disbarment of Rosete.
It will be recalled that a few days ago, GSIS shareholders complained that they have been asking for the list of proxies after the deadline for proxies had passed, from Meralco’s corporate secretary, a position then held by former SC justice Jose Vitug. Vitug has, since then resigned as corporate secretary, but Rosete, the assistant secretary, also was claimed to have refused the request of Garcia to be given a copy of the proxy listing, as the deadline has already lapsed.
The cases against Rosete will stem from alleged attempts by the Meralco officials to have bogus proxy voters cast their votes during Meralco’s stockholders meeting on Tuesday (May 27), said Garcia.
Proxy voters are individuals given authorization by shareholders to vote their shareholdings.
Reports have reached GSIS that Lopez allies have been soliciting proxies even after the May 17 deadline had lapsed. There were also disturbing reports about the signatures of Meralco shareholders being forged, although Meralco corporate communications director Elpi Cuna denied these allegations.
The GSIS, along with other government financial institutions (GFIs), holds four board seats in the 11-member Meralco board. The Lopez family, on the other hand, holds 5.
Earlier, Garcia had warned against the Lopezes trying to reduce the seats held by GFIs in Meralco through what it described as “dirty tactics.”
The GSIS official warned that the abuses that are prevalent in Meralco under the Lopezes will continue and may worsen if the GFIs will be marginalized in the Meralco board.
Among the raging issues being raised against the Lopez-controlled Meralco are its passing on to consumers the billions of pesos in electricity the company is using, and its repeated attempts to pad electric bills with illegal charges and increases.
Twice over, Meralco had been reprimanded by the Supreme Court (SC) for surreptitiously increasing its rates to the detriment of unsuspecting Meralco customers.
The SC ordered Meralco in 2003 to refund P30 billion in income taxes the company added on to the electric bills of 4 million consumers from 1994 to 2002. Meralco has yet to refund half of the P30 billion.
In 2004, the SC also ordered Meralco to refund the provisional increase it charged consumers in violation of the disclosure requirement of the trade adjustment mechanism prevailing at the time.
For its part, Malacañang yesterday disclosed it expects Garcia to do his best in the annual stockholders meeting of the Lopez-controlled Meralco on Tuesday.
In a phone interview, Chief Presidential Legal Counsel Sergio Apostol said the Palace cannot predict the outcome of the meeting.
“We (Malacañang) cannot interfere in inter-corporate matters but we expect Mr. Garcia to give his best in protecting the interest of his clients in the GSIS,” he said referring to 25 percent stake of the GSIS in Meralco that, if added to other government financial institutions shares of stocks count for some 33 percent control.
Apostol said whatever the results of the stockholders meeting, Malacañang will respect it. “Our main concern is reduce the power rates. We don’t interfere in the actions being undertaken by Winston,” he said.
Asked to react on Lopez’ denial of Garcia’s request to have the voting covered in full, and live by the media, Apostol said: “We cannot do anything about it, as much as Mr. Garcia wants it, it is the Lopezes who have the control in Meralco, he (Garcia) may have to heed the Lopezes’ response,” he said. Apostol however added that the Lopez family should allow Garcia’s request as they are accountable to the people.
“This is public interest. We are all involved here. We have the right to witness the (stockholders meet) event,” he stressed. The Philippines is second only to Japan in having the most expensive power rates in Asia, with Meralco, as one of the country’s largest power distributor, with a franchise area of 9,337 square kms. in 25 cities and 86 municipalities as of 2007.
Garcia charged that the Lopez management has flatly rejected a request from the GMA 7 television network—a rival of the Lopez-owned ABS-CBN –to cover the stockholders’ meeting live.
“They don’t even want it to be covered on a delayed basis,” said Garcia. The Lopez group countered that Garcia should stop his noisy agitation and “brusque tactics” and just accept the results of the Tuesday meeting.
The decision to open the annual meeting to live TV coverage was not up to a single investor, “even if he is Winston Garcia,” but to the board of directors, said Meralco treasurer Rafael Andrada, the Lopez group said.
”I don’t even know if he (Garcia) has made a request for live media coverage. He has a distinct aversion to rules, especially those not to his liking,” he said.
With the ERC, the view is that a government takeover of Meralco has no effect in lowering the high cost of electricity in the country.
“Whoever takes over the management of Meralco will be working in the same environment as Meralco. I cannot visualize how can it affect the rate of electricity,” ERC chairman Rodolfo Albano said.
With PNA and Tribune wires
http://www.tribune.net.ph/headlines/20080525hed1.html


7. Abante

OIL HIKE, TATAPOS KAY GLORIA!
Nina BERNARD TAGUINOD, NOEL ABUEL at JULIET DE LOZA
Malalagay sa mala­king peligro ang pananatili sa puwesto ni Pangulong Gloria Macapagal-Arroyo kung patuloy itong mabibigong solusyunan ang walang patid na pagsirit ng presyo ng langis na humahambalos ngayon sa taumbayan.
Naniniwala si Bayan Muna partylist Rep. Teddy Casiño na kung nalusutan ni Arroyo ang February coup plot, ang ‘Hello Garci’ scandal, fertili­zer scam at mga suhulan sa Malacañang kung saan ang pinakahuli ay ang kontrobersyal na NBN-ZTE deal na ga-hibla siyang napinahan, sa usapin ng sumisirit na presyo ng langis ay malabo nang makakalusot ang Pangulo.
Binigyan-diin ng solon na gigil na gigil na ang taumbayan sa pagiging inutil ng pamahalaang Arroyo sa nakakakubang halaga ng petrolyo.Ito ang isinatinig ni Casiño kahapon kasunod ng muling pagtaas ng halaga ng diesel at kerosene nang P1.50 kada litro kahapon at P1 naman sa gasolina. Ika-12 oil price hike ito simula noong Enero.
“Dumoble na ang presyo ng mga bilihin dahil sa oil price increase. Kung tataas pa iyan, at siguradong tatama iyan sa mga bilihin, kritikal na iyan. Tiyak aalma na ang mamamayan,” anang mambabatas.
Kung wala na umanong makikitang remedyo ang taumbayan bunga ng kawa­lang aksyon ng pamahalaan, walang ibang bubuweltahan ang mga ito kundi si Arroyo.“We don’t want to be alarmist pero kapag hindi nakaramdam ng konting relief ang mga tao at nanonood lamang ang gobyerno sa kanilang paghihirap, magagalit na talaga ang mga nananahimik kay Gng. Arroyo,” dagdag pa nito.
Naniniwala si Casiño na wala nang ibang puwedeng solusyon sa problema kundi ang pagtanggal sa 12% value added tax (VAT) na ipinapatong ng gobyerno sa produktong petrolyo.Ito rin ang patuloy na isinusulong ni Sen. Francis ‘Chiz’ Escudero na nagsabing panahon na upang ang pamahalaan naman ang magsakripisyo para masaklolohan ang sambayanan.Hindi umano totoong mapipilay ang pamahalaan oras na alisin pansamantala ang VAT sa la­ngis. “Sa kwenta nga naming P14 bilyon lang ang actual na mawawalang buwis sa gobyerno aalisin ang VAT sa langis kasi ang matiti­pid ng mga tao ay ibibili naman nila ng iba nilang panga­ngailangan. (kaya babalik pa rin sa gobyerno sa anyo ng buwis sa ibang produkto),” paliwanag ni Escudero.
Kahapon ay binakbakan ng militanteng grupong Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (Piston) ang dagdag na P1.50 sa diesel at P1 sa gasolina kahapon kaya’t pumalo na sa P44.98 at P53 kada litro ang average price ng diesel at gasolina, ayon sa pagkakasunod.
Bunga nito, binuweltahan ni Piston secretary-general George San Mateo si Energy Sec. Angelo Reyes sa pagsasabing wala namang epekto ang ibinida nitong ‘zero tariff’ sa ina­angkat na krudo at refined oil products dahil mas ma­laki pa nga ang nilundag ng halaga ng diesel sa pagkakataong ito.
Labis ding ipinagtataka ng Piston kung bakit hindi maisakripisyo ng pamahalaang Arroyo ang VAT sa langis gayong ito na lamang ang nakikitang re­medyo para mapababa ang oil prices.Duda ni San Mateo, na­ngangamba ang pamahalaan na mawalan ng ‘mahigop’ na pera sa kaban ng bayan oras na alisin ang oil VAT.
http://abante.com.ph/issue/may2508/default.htm


8. Abante-Tonite

‘PINATITIHAYA AKO HANGGANG 10-LALAKI!’
(Bell Desolo)

Matinding trauma sa kamay ng mga kalalakihang banyagang kostumer ang sinapit ng 15-anyos na dalagitang nakaligtas sa sindikatong nagdala dito sa Malaysia.
“Tuwing may maririnig na boses ng lalaki ay nagtatago sa ilalim ng kama ang aking anak,” mangiyak-ngiyak na pahayag ni Minda Lopez, ina ng dalagita na taga-Barangay Aplaya, Sta.Rosa, Laguna na nailigtas ng embahada sa Malaysia.
Isinalaysay ng biktimang itinago sa pangalang Dianne ang mga kalupitang dinanas sa sindikatong nagdala sa kanila sa Malaysia kung saan ay inoobliga umano sila ng lima hanggang sampung lala­king kostumer sa loob ng isang araw.
Sapilitan umano ang pagpapa-entertain at ‘pagpapagamit’ sa mga biktima ng kanilang employer sa mga kostumer araw at gabi.
Maliban sa traumang inabot sa mahigit isang buwang pananatili sa Malaysia ay bumagsak umano ang katawan ng dalagita ayon sa inang sumalubong sa Clark Air Base kamakalawa.
Nakawala lamang si Diane sa pinagdalhang bahay na ginawang casa ng nag-recruit na kinilalang sina Ben Lim at mag-inang Marleen at Sheena Agpalsa y Brown nang pasikretong lumiham sa mga magulang at ipinadala sa isang kasamahang umuwi ng Pilipinas matapos na mabayaran ang mga ginastos patungong Malaysia.
Pinapayagan lamang daw makauwi ng Pilipinas ang mga umaayaw sa trabaho kung babayaran ang lahat ng ginastos at dahil walang kakayahang magbayad si Dianne ay sumulat na lamang ito sa panty upang hindi maharang ang sumbong na ipinadala sa kanyang mga magulang at ipinarating ang masamang kalagayan.
Naging masigasig naman sa paghingi ng saklolo ang mga magulang ng dalagita at sa pamamagitan ni Supt. Reymund Perillo Oliquiano, Police Chief ng Sta. Rosa City ay nakipag-ugnayan ang mga ito sa embahada sa Malaysia kaya’t matagumpay na nailigtas ang biktima na nagtungo sa Malaysia para sana mamasukan bilang factory worker.
Ipinagbigay-alam agad ni Oliquiano kay Marford M. Angeles, 3rd secretary and vice consul ng Philippine embassy sa Malaysia ang pangyayari kaya’t inasikaso nito ang reklamo hanggang sa mapauwi ang biktima.
Sa ngayon ay nakatakdang magsampa ng demanda laban sa mga suspek na umano’y nakatira sa Barangay Sinalhan dito ang biktima.
http://www.abante-tonite.com/issue/may2508/news_headline.htm


9. Pilipino Star Ngayon

GSIS money tagilidSunday, May 25, 2008
Binatikos ng mga ka­wani ng pamahalaan ang ginagawang “proxy war” ni Government Service Insurance System (GSIS) General Manager Winston Garcia laban sa pamilyang may kontrol sa Manila Electric Company (Meralco).
Ayon kay Ferdinand Gaite, national president ng Confederation for the Unity, Recognition and Advancement of Government Employees (Courage), mistu­lang “isinusugal” ni Garcia ang pera ng mga emple­yado ng pamahalaan sa pagkampi nito sa mga nagbabangayang mga elitista sa lipunan upang makontrol ang Meralco, ang pinakamalaking distribution utility sa bansa na ngayon ay hawak ng pa­milya Lopez.
“Walang miyembro ng GSIS na maniniwalang nais lamang ni Garcia na pangalagaan ang interest ng ahensya,” sabi pa niya.
Idiniin ni Gaite na lugi na ang pondo ng GSIS na ginamit ni Garcia noong Enero upang madagdagan ang bilang ng Meralco shares ng GSIS.
Noong Enero ay nag­bayad si Garcia ng P80.91 kada share ng Meralco kahit pumapalo lamang ito sa P71.50 sa stock market, kung saan nalugi na ng may P1.4 bilyon ang mga GSIS members, ani Gaite.
Dahil sa patuloy na pag-iingay ni Garcia laban sa umano’y mga katiwalian sa Meralco, patuloy ang pagbulusok ng halaga nito na ngayon ay bumebenta na lamang sa P67 bawat share.
Pinuna ni Gaite, lalam­pas pa sa P1.4 bilyon ang mawawala sa mga GSIS members kung patuloy na makikisali si Garcia bilang “proxy” ng Palasyo at mga crony nito laban sa mga Lopez.
“Bagaman lahat tayo ay nagnanais na bumaba ang presyo ng kuryente, wa­lang karapatan si Garcia na waldasin ang pondo ng GSIS sa ganitong away,” sabi ni Gaite.
Halata umanong pina­ba­bagsak ang presyo ng Meralco upang mura itong mabili ng tatlong mga umano’y “crony” ng Mala­cañang-ang pamilya Al­cantara, Razon at Aboitiz-na ngayon ay malalaking pangalan na rin sa indus­triya ng kuryente.
Ang mga Alcantara ay kilalang kasama sa “kitchen cabinet” ni Mrs. Arroyo at may-ari ng planta ng kuryente sa mga lala­wigan ng Lanao del Sur at Lanao del Norte sa Min­danao.
Bukod naman sa pag-aari sa Aboitiz Power, ma­ yorya rin ang pag-aari ng mga Aboitiz sa Union Bank kung saan inilipat ni Garcia ang pera ng mga GSIS members mula sa Land Bank, nang maupo ito bilang GSIS general manager.
Ang pamilya Razon naman ang nanalo sa bidding ng Transco noong 2007. Ang mga transmission lines ng Transco ang daluyan ng lahat ng kur­yente sa buong bansa.
Bukod sa pag-aari sa International Container Terminal Services Inc. (ICTSI) na may mono­polyo sa serbisyo sa Manila International Container Port, si Enrique Razon din ang may hawak sa pondo ng Kampi, ang political party ni Pangulong Arroyo.
http://philstar.com/index.php?Bansa&p=50&type=2&sec=54&aid=2008052461


10. Journal

11. Business World

12. Business Mirror


II.POLITICAL
Bro. Eddie to JDV: Tell the truth
By Nestor P. Burgos Jr.Philippine Daily InquirerFirst Posted 01:49:00 05/25/2008
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oSantiago says ABS-CBN out to sabotage bid for ICJ seat
oCheaper power or bust
oCabinet members hit for erroneous reports
oSC upholds suspension of state university head
oNo Catholic Mass for ‘Ka Bel’ in Legazpi
oBro. Eddie to JDV: Tell the truth
oIt started in a taxi for the Beltrans
oCash reward offered for capture of vice mayor’s killers
oPDEA agent killed in Cebu ambush
oMotorists complain against ‘taxes’ in southern Cebu town
oGovernment says it’s ready to protect Lozada
oMilitary to turn over personnel involved in RCBC massacre
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ILOILO CITY, Philippines—Come out and tell all.
Evangelist Bro. Eddie Villanueva on Saturday challenged former Speaker Jose de Venecia to tell everything he knows about the bribery-tainted National Broadband Network (NBN) deal with China’s ZTE Corp.
“(De Venecia) should come out (because) everybody should shed light on the scandal,” said Villanueva in a press conference here on Friday. The Jesus Is Lord founder and leader was here with other church leaders for the Sagip Bansa prayer assembly.
Villanueva said it was time for De Venecia “to show to God and the Filipino people if he is really serious in launching his moral revolution… by telling everything he knows about the ZTE deal.”
The Senate blue ribbon committee had earlier urged De Venecia to be the next witness at the resumption of its inquiry into the controversial NBN-ZTE deal.
Committee chair Sen. Alan Peter Cayetano had said that De Venecia’s testimony could provide a fitting “bookend” to the earlier testimonies made by De Venecia’s son and namesake, businessman Jose “Joey” de Venecia III, about alleged anomalies in the now-scrapped $329-million project.
Two other witnesses, Rodolfo Lozada Jr. and Dante Madriaga, had also testified that the deal was attended by kickbacks involving millions of dollars.
The testimony of the elder De Venecia, who was ousted from his post early this year after a falling out with President Macapagal-Arroyo as a result of his son’s testimony linking the President’s husband to the aborted deal, is deemed crucial by the Senate committee to shed light on how the project was changed from a build-operate-and-transfer (BOT) project to one funded by a government-to-government loan.
Cayetano said De Venecia could also provide information on the President’s secret visit to Shenzhen, China, where she played golf and had lunch with top ZTE officials. De Venecia was part of the President’s party during the visit.
Villanueva made the challenge to De Venecia as he called for continued vigilance on the NBN-ZTE deal and other corruption scandals being faced by the administration.
He said that amid the pressing issues affecting the people like the rice crisis and the high oil prices, he hoped “Pandora’s box will be opened and the truth will come out.”
“The Filipino people are waiting for the absolute revelation of the truth behind the various scandals that have happened in our midst,” Villanueva said.
He said vigilance was needed more than ever because “the government has been very busy in suppressing the revelation of truths” despite its pronouncement that it was serious in fighting corruption.
“Never in the history of our country that there has been a regime of lies, deceptions, incredible litany of corruptions,” said Villanueva.
Without giving any specifics, Villanueva said the “diversionary tactics of the enemies of truth, justice and righteousness, are experiencing a little success.”
But he said he believed the “inherent vigilance” of Filipinos would prevail.
Asked if he was still calling for the President’s resignation, Villanueva said that a leader who had failed to do his or her duty should step down or be replaced.
“If you’re hired as a CEO (chief executive officer) of a certain company to resolve the bankruptcy of that company, and the CEO fails to resolve the bankruptcy in one or two years, then the CEO should be fired or voluntary resign.”
Villanueva said the scandals that had plagued the administration, the rice and energy crisis, and the worsening crime, including the recent massacre of RCBC employees, “show the incompetence of the present CEO of the Republic of Philippines.”
But he said he doubted the President would step down.
“Everybody knows that is impossible in a regime which is devoid of any delicadeza, that is why the Filipino people should really pray hard for it appears that it is only God’s divine intervention that can save our beloved country from a chaotic future,” he said.

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080525-138684/Bro-Eddie-to-JDV-Tell-the-truth
Government says it’s ready to protect Lozada
By Christine AvendañoPhilippine Daily InquirerFirst Posted 01:50:00 05/25/2008
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oSantiago says ABS-CBN out to sabotage bid for ICJ seat
oCheaper power or bust
oCabinet members hit for erroneous reports
oSC upholds suspension of state university head
oNo Catholic Mass for ‘Ka Bel’ in Legazpi
oBro. Eddie to JDV: Tell the truth
oIt started in a taxi for the Beltrans
oCash reward offered for capture of vice mayor’s killers
oPDEA agent killed in Cebu ambush
oMotorists complain against ‘taxes’ in southern Cebu town
oGovernment says it’s ready to protect Lozada
oMilitary to turn over personnel involved in RCBC massacre
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MANILA, Philippines—The government is more than willing to be the protector of key Senate witness Rodolfo Lozada Jr. after the Senate cut the number of his security detail on May 1.
Presidential Management Staff Secretary Cerge Remonde said on Saturday it was actually to the “best interest’’ of the government to ensure Lozada’s safety.
Interviewed over government radio dzRB, Remonde said Malacañang and the Philippine National Police would “always be ready to provide security to Lozada and any Filipino for that matter needing their help.’’
“We are always concerned over the security of Mr. Lozada because if anything will happen to Mr. Lozada, the tendency is that it will always be blamed on the government,’’ Remonde said.
He reiterated his earlier warning that it was possible “some of the people who used him might find him (Lozada) more useful dead than alive.’’
“So it is in the best interest of the government to also ensure his security,’’ he said.
The Senate has cut the number of those assigned to protect Lozada to four security men and two drivers, according to Sister Estrella Castolone of the Association of Major Religious Superiors in the Philippines, who has given him refuge after Lozada charged in a Senate hearing in February that irregularities attended the now scrapped $329-million government telecommunications deal with Chinese firm ZTE Corp.
Sen. Juan Ponce Enrile had sought the removal of Lozada’s security detail after learning of the mounting expenses paid by the Senate to protect the witness.
To date, the Senate has spent nearly P2 million for security and food arrangements for both Lozada and another key witness in the NBN-ZTE deal, Dante Madriaga.
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080525-138685/Government-says-its-ready-to-protect-Lozada

Palace open to free texts, says Remonde
By Christine AvendañoPhilippine Daily InquirerFirst Posted 01:51:00 05/25/2008
MANILA, Philippines—Malacañang has welcomed the proposal to make text messaging via cell phones free.
“You know the Palace is always open to anything that could give relief to the people,’’ Presidential Management Staff Secretary Cerge Remonde told government radio dzRB.
Remonde was reacting to a proposal by Communications Secretary Leandro Mendoza to telecommunications companies to make the short message system, or SMS, free of charge.
Remonde said he was certain that Mendoza made a thorough study of the proposal and found it to be feasible.
Remonde also said that President Macapagal-Arroyo would announce next week some good news regarding tuition at state universities and colleges (SUCS).
Remonde said he did not want to preempt the President’s announcement but let on that it had to do with a review of the tuition of SUCS.
Remonde said the review and consultation conducted by the Commission on Higher Education (CHEd) had been completed and that he and CHEd officials had submitted their report to President Arroyo on Friday.
“We’ll just wait for the announcement from her that would elate everybody when it comes to the issue of tuition, especially with the opening of the new school season,’’ Remonde said.
Remonde said that the initial report showed there were fewer SUCS that applied for an increase in tuition this year compared to last year.
There are more than 100 SUCS in the country.
Earlier, President Arroyo instructed Remonde to coordinate with CHEd chair Romulo Neri to find ways to suspend tuition increases in SUCS.
The President has been going around public schools throughout the country looking at preparations for the new school year.
Ms Arroyo will hold on Monday an inter-agency command conference regarding the opening of the school season at a public high school in Tondo.
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080525-138686/Palace-open-to-free-texts-says-Remonde

Santiago says ABS-CBN out to sabotage bid for ICJ seat
By Dona PazzibuganPhilippine Daily InquirerFirst Posted 20:18:00 05/24/2008
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oSantiago says ABS-CBN out to sabotage bid for ICJ seat
oCheaper power or bust
oCabinet members hit for erroneous reports
oSC upholds suspension of state university head
oNo Catholic Mass for ‘Ka Bel’ in Legazpi
oBro. Eddie to JDV: Tell the truth
oIt started in a taxi for the Beltrans
oCash reward offered for capture of vice mayor’s killers
oPDEA agent killed in Cebu ambush
oMotorists complain against ‘taxes’ in southern Cebu town
oGovernment says it’s ready to protect Lozada
oMilitary to turn over personnel involved in RCBC massacre
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MANILA, Philippines—Sen. Miriam Defensor-Santiago has accused the Lopez group of using its media outfit, the ABS-CBN television network, to sabotage her campaign for a seat on the International Court of Justice.
In a statement on Saturday, Santiago said the Lopez group, which controls Manila Electric Co. (Meralco), was trying to get back at her by trying to “scuttle” her ICJ candidacy because she had partly blamed Meralco for the country’s high electricity rates.
She referred to a story that appeared on the Web site of ABS-CBN and its Newsbreak partner that claimed that “some countries were moving to oppose her” and that some quarters in the legal community were blocking her candidacy.
Santiago said the story, “RP faces tough challenge in ICJ bid of Santiago,” which was published on May 23 by abs-cbnnews.com, was “full of unhelpful conjectures and factual errors.”
Not fit for SC
She said the story did not name the countries or legal groups opposing her or the reason for the opposition.
She said the story also claimed that “she has not even qualified for the highest court of the country.” She said this may have referred to a decision by the Judicial and Bar Council not to consider her nomination because of its policy of only considering incumbent Supreme Court justices.
In her statement, Santiago said the Lopez group was trying to get back at her for the role she played as chair of the Senate committee on energy during the Joint Congressional Power Commission public hearing two weeks ago.
During the hearing, power entities, primarily the state-owned National Power Corp., the Energy Regulatory Commission and Meralco, were made to account for their failure to lower power rates seven years after the passage of the Electric Power Industry Reform Act.
“A vast business empire such as that of the Lopez family will not hesitate to use its media outlets even to the point of destroying a national candidature, in order to protect their giant corporate profits,” she said.
Santiago said the “derogatory” abs-cbnnews.com story would likely affect her campaign for an ICJ seat since foreign embassies in the country would include it in their report to their capitals.
She said she was still considering whether to file a libel suit, react through a privilege speech in the Senate on Monday, or to “suffer in silence.”
“It is obviously the work of a dirty tricks department so evil that it hardly merits attention,” she said.
Marites Danguilan-Vitug, editor in chief of abs-cbnnews.com, denied that the Web site was out to “scuttle” Santiago’s candidacy or that ABS-CBN was trying to get back at the senator.
Just the facts
“What we did was to merely report the facts,” Vitug said, adding that “our interest in Santiago’s ICJ bid dates back to November last year” when Newsbreak first wrote about it.
“We would like to assure Sen. Santiago that we, as journalists, put premium first and foremost on our independence and integrity,” Vitug said in a statement.
Santiago stressed she was not running in her individual capacity but as an official candidate of the country.
“In trying to destroy me, they are also destroying a Philippine national candidature. Sometimes iniquity is its own worst punishment,” she said.
Santiago has been actively campaigning for election to the ICJ since last year, with the help of the Department of Foreign Affairs and the country’s various embassies.
UN’s judicial organ
The ICJ, known colloquially as the World Court, is the primary judicial organ of the United Nations and is based in The Hague, The Netherlands. It decides legal disputes between states and issues “advisory opinions” on legal questions referred to it by UN agencies.
The election for five ICJ seats, to be left vacant by February 2009, will be held at the UN headquarters in New York later this year. A candidate will need to get a majority vote in both the General Assembly and the Security Council which will vote simultaneously but apart.
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080524-138605/Santiago-says-ABS-CBN-out-to-sabotage-bid-for-ICJ-seat

RP joins international aid pledging session in Burma
By Cynthia BalanaPhilippine Daily InquirerFirst Posted 01:58:00 05/25/2008
MANILA, Philippines—The Philippines will take part in Sunday’s international pledging conference in Burma (Myanmar) organized by the Association of Southeast Asian Nations (Asean) and the United Nations to drum up relief support for the disaster victims in the cyclone-hit country, the Department of Foreign Affairs said.
The DFA said a Philippine delegation headed by Sen. Richard J. Gordon would join the pledging conference.
The delegation includes Philippine Ambassador to Burma Noel C. Cabrera, National Disaster Coordinating Council (NDCC) executive officer Maj. Gen. Glenn J. Rabonza, and the DFA’s Undersecretary Enrique A. Manalo, Assistant Secretary Romeo L. Manalo and Director Zaldy B. Patron.
Asean Secretary General Surin Pitsuwan and UN Secretary General Ban Ki-Moon will jointly lead the conference which aims to mobilize greater international assistance for relief operations, as well as rehabilitation and reconstruction efforts in Burma.
In a Special Asean Foreign Ministers’ Meeting in Singapore on May 19, Surin was tasked to lead the Asean Task Force which would coordinate the assistance from all Asean-member states.
Damage and needs assessment
An Asean Emergency Rapid Assessment Team (Erat) has conducted damage and needs assessment in Burma. Dr. David Mendoza of the Department of Health is now in Rangoon as the Philippines’ representative in the team.
The DFA also said the Philippines would send a 30-man medical team, medicines, relief goods and cash for the disaster victims in Burma. A Philippine Air Force C-130 will transport the team, together with the medicines and relief goods, to Burma as early as Monday. The team will be in Burma for two weeks.
The Philippines’ total contribution to Burma—in cash and in kind—amounted to some $300,000. This excludes the contributions of private Philippine companies and charitable organizations.
The DFA said the government welcomed the assistance extended by the Filipino community in Burma and Philippine-Burmese joint ventures such as United Pharma and Myanmar Liwayway. The Philippine Embassy in Rangoon is coordinating with them in the conduct of relief operations.
Faithful urged to help
As this developed, Catholic Bishops’ Conference of the Philippines (CBCP) president and Jaro Archbishop Angel Lagdameo urged the faithful yesterday to help in relief and rehabilitation efforts in calamity-devastated areas in the country and abroad, particularly China and Burma.
In an interview aired over Church-run Radio Veritas, Lagdameo said that in celebrating the Solemnity of Corpus Christi today, the faithful should emulate Jesus Christ’s sacrifice for our salvation.
“In the same manner that Jesus gave Himself to serve and save mankind, the essence of our faith should be to help each other, especially those in direst need, the disaster victims,” he said.
Lagdameo has appealed to church social action centers for donations, both in cash and kind, for the victims of cyclone Nargis in Burma and the earthquake in China.
Manila Archbishop Gaudencio Cardinal Rosales has also sought donations from his archdiocese for Burma and China. With a report from Jeannette I. Andrade

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080525-138692/RP-joins-international-aid-pledging-session-in-Burma

Adopt ‘flat rate’ generation charge policy, Napocor urgedBy Delon Porcalla Sunday, May 25, 2008
To avoid further confusion, the National Power Corp. (Napocor) should adopt a “flat rate” policy for the generation charge it sells to power distributors like the Lopez-run Manila Electric Co. (Meralco) to lessen consumers’ monthly power bills, a senior lawmaker suggested.
Rep. Luis Villafuerte said the state-owned power generation facility should “abandon the time of use pricing scheme, the peak and off-peak hours rates” that only tend to create perplexity, as Meralco has been accusing Napocor of imposing exorbitant rates.
“If Napocor implements the flat rate system, it is expected that the generation charge of Napocor will be lower than the Meralco independent power producer,” the Camarines Sur congressman said.
Meralco, the country’s biggest power distributor, buys 50 percent of its electricity needs from Napocor and gets the other half from its own IPP, like the Lopez-owned First Gas Power Corp. It has been said that electricity bought during off-peak hours is cheaper.
Villafuerte also called on the Energy Regulatory Commission to “review and evaluate the pricing of Meralco IPPs, such that Napocor and First Gas will reduce their respective charges from the present levels, to the ultimate benefit of consumers.”
Another sure way to significantly reduce the high cost of electricity is to break the monopoly of Meralco in providing power in Metro Manila and its suburbs, even as the Lopez-run firm has yet to comply with the P30-billion refund order of the Supreme Court, he said.
Villafuerte mentioned this in House Resolution 592 that he initiated, which seeks to adopt measures that would ensure “consumer protection,” through a “fair and reasonable price” of electricity to consumers.
Among the four amendments to the Electric Power Industry Reform Act (Republic Act 9136) he proposed were the “demonopolization of ownership and dispersal of shares of public utilities” such as Meralco.
At the same time, Villafuerte called on the Lopezes to pay back Meralco’s four million customers the P30 billion it overcharged from 1994 to 2003, which has been ordered by no less than the Supreme Court.
“It is not fair that all consumers will not be refunded fully for the income taxes that the SC ordered to be refunded. Billions of pesos remain to be refunded by Meralco,” he said.
Another refund that Villafuerte wanted to be enforced involves the “meter deposits” of Meralco’s end consumers, “plus an imputed 10 percent per annum from dates deposits were made.”
Villafuerte accused the power distributor of “cheating” after it admitted in a Senate hearing last week that it “passed on” to consumers the P531-million electric consumption it incurred in 2007.
“Consumers are not obligated to pay electricity that they never received or enjoyed using. Electricity, which Meralco appropriates for its own use, is not pilferage. That constitutes cheating by Meralco in layman’s term, if passed on to consumers,” he said.
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=2008052495
Palace supports free textBy Marvin Sy Sunday, May 25, 2008
Malacañang supported the proposal of the Department of Transportation and Communications (DOTC) to make text messaging a free service to consumers.
Presidential Management Staff chief Cerge Remonde said the Palace would support any measure that would provide some sort of relief for consumers who are already burdened by the spate of increases in fuel and basic commodities.
Transportation Secretary Leandro Mendoza said a petition would be filed before the National Telecommunications Commission (NTC) to compel mobile phone providers to make text messaging a free service for subscribers.
Mendoza argued the move is consistent with their franchise agreement that only allows them to charge voice calls.
Remonde said Mendoza studied his homework thoroughly before making the proposal.
“I’m sure that Secretary Larry Mendoza has studied that very carefully. As you know, the Palace will support anything that would provide relief to our people,” Remonde told dzBB radio.
Lawmakers warned they could amend the franchises of telecommunication firms if they do not allow the free use of short messaging system (SMS).
The Philippine Long Distance Telephone Co. earlier warned that offering free SMS would reduce the government’s tax collection.
Speakers Prospero Nograles said congressmen will review the congressional franchises of the three biggest cellular phone service providers – Smart, Globe Telecom and Sun Cellular – which he said, should have included free text messages in their services.
Nograles said his colleagues in the House of Representatives are already studying ways on how to “amend the franchise of the country’s telecommunications companies to compel them to stop charging their customers for SMS use.”
“We have to check whether they are legally allowed to charge text messages. If their franchise allows them to do so, we can make corrective measures and file a resolution as soon as possible for the NTC to address this concern,” he said.
Nograles said the telecom companies have been raking in billions in profits since they are no longer allowed to pay the three percent franchise tax on gross receipts.
He said the telecom firms are no longer subjected to the 12 percent cap in terms of income, based on return of investments (ROI).
Instead, the telecom firms are required to pay the 12 percent expanded value added tax, which they conveniently pass on to consumers.
“This taxation system should also be studied to lower the present rates,” Nograles said.
“We have to review the specifications of their franchise. We are in the middle of a very difficult economic situation and it will be a great help if we can remove the use of SMS from their daily budget,” he said.
Three House committees – legislative franchises, information and communications technology and oversight committee – have been tasked to “find out” if these telcos “are really allowed to charge their customers for using SMS.”
Nograles asked Iloilo Rep. Ferjenel Biron, chairman of the legislative franchise committee, Catanduanes Rep. Joseph Santiago of information and communications technology and Quezon Rep. Danilo Suarez of the oversight committee, to “scrutinize” the legislative franchises of the telecom firms.
Nograles, a habitual texter himself, joined the snowballing support for Mendoza’s proposal for free text messaging.
He said he finds it more convenient to send text messages to reporters who ask for his comments on the issues of the day.
Nograles said this mode of communication “has become a necessity even among poor Filipinos who rely on this technology for their day-to-day personal and business communications requirement.”
He estimates that even the poorest Filipino household spends an average of P25 to P60 per day for their texting needs. “This is already equivalent to one to two kilos of rice or 10 packs of instant noodles,” he said.
Nograles said “projections that oil prices in the world market will soar further will make life even more difficult.”
He added it is the “obligation of the government to find every available option to help the public cope with the present economic situation.”
Santiago, for his part, also disclosed moves by lawmakers to amend Republic Act 7925 or “An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services.”
Santiago, a former NTC commissioner, explained that before the passage of the law, a 12 percent cap was imposed on the income of telecom firms.
The 12 percent rate of return on their investments is similar to the cap on public utilities like Meralco and water companies.
But in 1995, he said the cap was removed to encourage the entry of telephone providers.
Although the law provides fair return on investments of telecommunication companies, Santiago said it apparently failed to define what is “fair rate of return.”
“We should return the cap and amend RA 7925. The presence of a cap for these firms would definitely lower the rates of cellular phone use,” he said.
Santiago said his committee learned the telecom firms enjoy a 36 percent rate of return on investments.
But Santiago opposed the idea of providing free text messaging as a value added service to subscribers.
He said this would be a burden on the part of the telecom companies.
“The bigger issue is to bring back the franchise tax and to impose a cap on their income so that they will have no choice but to lower their rates,” he said. – With Delon Porcalla, Pia Lee-Brago
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524100

Australia’s ODA to RP increased by almost nine percentBy Pia Lee-Brago Sunday, May 25, 2008
Australia has increased its official development assistance (ODA) to the Philippines to P4.4 billion (A$109.3 million) for 2008-2009 to boost economic growth, education and security, according to the Australian embassy here.
The Australian government’s P4.4 billion aid represents an increase of almost nine percent over the previous year, an embassy statement said.
In 2008-2009, Australia, which has become the second largest bilateral grant aid donor, will increase its support to the Philippine government’s infrastructure initiatives and provide over P425 million (A$11.2 million) to help upgrade and maintain critical road infrastructure at the national and local levels.
The ODA to the Philippines is managed by the Australian government’s agency for international development (AusAID).
Australia’s ODA to the Philippines in the last decade has totaled more than P25 billion (about A$670 million).
“Australia has long been a strong development partner of the Philippines, with our development cooperation program going back to the 1950s,” said Australian Ambassador Rod Smith.
Australia’s aid program in the Philippines is centered on three focus areas: economic growth, basic education, and national stability and human security.
In the last two years, Australia supported improved budget planning in the form of forward estimates, a paper on budget strategy and better performance management of government spending.
Australia is also helping public schools in the Philippines reach and maintain higher standards of basic education and to increase Filipino boys and girls’ access to education.
Australia’s basic education initiatives are contributing to enhanced teaching and learning outcomes and assisting thousands of educators and school children in 18 provinces in the Visayas and Mindanao.
Australian assistance has introduced new approaches to basic education delivery through the introduction and adoption of school-based management, enhancement of Muslim education curricula and access for indigenous people.
Australia will provide about P1.2 billion (about A$32 million) in 2008-2009 to support improvements in Muslim education and the Department of Education’s implementation of the Basic Education Sector Reform Agenda.
Australia will also continue to support peace-building and post-conflict recovery programs in conflict-affected areas, as well as the provision of basic health and malaria prevention services for vulnerable women and children.
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524102

Nograles files resolution on P16.7-B VAT revenue useBy Delon Porcalla Sunday, May 25, 2008
Speaker Prospero Nograles filed a House resolution urging the government to immediately avail itself of the P16.7-billion “unappropriated” revenues from the value-added tax (VAT) collection, to help people cope with the increasing cost of living.
Joint Resolution 18 mandates the “redistribution of the incremental revenues from the VAT on gasoline and other petroleum products as subsidy to the power and fuel consumption of consumers.”
The measure has already garnered support from both opposition and administration congressmen.
House Majority Leader Arthur Defensor, who also heads the committee on rules, said the resolution should be given priority in the light of the spiraling cost of food, fuel and electricity.
Defensor vowed to schedule next week deliberations on the proposed measure and expressed hope that it would be approved by the plenary.
He also sees no reason why the Senate and Malacañang would oppose the proposal since no existing budget allocation will be disturbed.
Nograles raised the need to provide relief to the public amid the persistent increases in global fuel prices which “have placed severe pressure on Filipino consumers due to the ensuing increases in the prices of commodities and services where local pump prices of gasoline and diesel climbed by at least P5 per liter vis-a-vis their averages in December 2007.”
Other lawmakers who supported the Nograles proposal were Deputy Speaker for Maguindanao Simeon Datumanong, Cagayan de Oro Rep. Rufus Rodriguez, Parañaque Rep. Roilo Golez, and Camarines Norte Rep. Liwayway Vinzons-Chato.
Reps. Arthur Celeste of Pangasinan, Francisco Matugas of Surigao del Norte, Neil Tupas Jr. of Iloilo, Florencio “Bem” Noel of An Waray, Marcelino Teodoro of Marikina, Abraham Mitra of Palawan, and Vic Agbayani of Pangasinan, also signed the resolution.
The Congressional Planning and Budget Department reported that the Department of Finance is now enjoying a P16.7-billion windfall from VAT on petroleum, which Nograles said “should be re-channeled toward subsidizing the public’s electricity and fuel consumption.”
Out of the amount, P6.5 billion should be redistributed to households whose electricity consumption is 500 kilowatt-hours and below.
“This sector comprises 3.9 million households or approximately 96 percent of the residential households in the entire Meralco franchise area,” Nograles said.
“The P10.2-billion balance should be used to provide subsidy in fuel consumption, of which amount around P8.3 billion shall be used in providing approximately P1.30 per liter subsidy for diesel to benefit public transport utilities as well as commuters, and P1.9 billion shall be redistributed to subsidize P1 per liter LPG consumption of households,” he said.
The Department of Finance is open to the proposal to use the VAT proceeds to subsidize electricity and fuel consumption of consumers, instead of the plan to scrap the VAT on oil importation.
In the weekly radio program “Para sa Iyo Bayan” of Vice President Noli de Castro, Finance Secretary Margarito Teves said yesterday that the proposal to use proceeds from the VAT on imported oil will help especially the poor.
“I think they outlined some areas or some sectors we should support. That P16.7 billion could be a rough estimate because the figure is projected up to end of the year. At least up to April we will have about P4 billion that can be redistributed to the needy,” he said.
Teves said the effect of the scrapping of tariff on oil and fuel products may not be felt by the consumers because the oil companies still have collectibles.
Teves said the P2 subsidy for commuter vehicles that was ordered by President Arroyo should be implemented. – With Pia Lee-Brago
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524105

Villar appeasing JambySunday, May 25, 2008
Senate President Manuel Villar Jr. is reportedly trying to resolve his dispute with Sen. Jamby Madrigal, who has become one of his most vocal critics.
Sources said Villar has a standing dinner invitation to Madrigal even as the two have been at odds over the Commission on Appointments (CA).
Madrigal, however, has yet to decide whether to accept the invitation or not.
Observers said senators used to maintain good and friendly relations and that even after intense debates, they could laugh with each other.
But at present, even some senators lamented that attacks had become personal and that differences over issues seemed to extend beyond the floors of the session hall.
Senators have been known as “independent republics” and would act only according to his or her principle.
Madrigal had always attacked Villar over his leadership style wherein the Senate president encourages debates during sessions but later come out with decisions through consensus.
“Last Valentine’s Day, Villar even sent her (Madrigal) a beautiful bouquet of flowers, but then again the issue on the CA came up again,” a source said.
Madrigal had earlier expressed outrage over the decision of CA officials to hold plenary deliberations on the confirmation of appointees on the last day of session where she could not invoke Section 20 and block the process. – Aurea Calica
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524157
Teodoro: MILF peace pact must adhere to CharterSunday, May 25, 2008
Defense Secretary Gilberto Teodoro pointed out yesterday that the Constitution must be paramount over any peace agreement with the Moro Islamic Liberation Front (MILF).
“My insistence (peace talks) is on the primacy of the Philippine Constitution from which we derive our authority and beyond which we cannot act without a valid national consensus,” he said.
Any decision on the issue of ancestral domain must be subservient to the Constitution, according to Col. Joselito Kakilala, Teodoro’s military adviser.
Meanwhile, a senior military commander in Mindanao said for the MILF to place certain areas in Mindanao under its administrative control is “totally outrageous.”
“Hindi naman pwede na hati-hatiin ang Pilipinas (It can’t be that the country be divided),” he said. “We are a sovereign nation. What they want is almost three-fourths of Mindanao to be under them, even Palawan. That’s just not possible.”
The military commander said although he wanted peace in Mindanao, he is always willing to fight to defend the Republic.
“Technically we are still at war, and it is our job as soldiers of this nation to be always prepared to go to battle anytime if ordered,” the military commander said.
Last Friday, MILF deputy spokesman Khaled Musa said it was “unfortunate and inappropriate” for Teodoro to demand that the secessionist movement abide by the Constitution. – Jaime Laude
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524164

Remonde: Gov’t willing to provide security to LozadaSunday, May 25, 2008
The administration is willing to provide security to national broadband network (NBN) deal witness Rodolfo Noel Lozada Jr. during his provincial trips now that the Senate has pulled out its security aides due to high cost.
Presidential Management Staff head Cerge Remonde told state-run radio station dzRB that while the matter is between the Senate and Lozada, it is in the best interest of the administration to ensure the safety of Lozada.
“That is a matter between the Senate and their star witness Jun Lozada. However, Malacañang and the PNP (Philippine National Police) will always be ready to provide security for him and any Filipino for that matter who require assistance from the government and the police,” Remonde said.
He pointed out that the administration would automatically be blamed if ever anything bad happens to Lozada during his tour of the country.
Since his first public appearance, Lozada has claimed that the government tried to abduct him and that it wants him dead because of what he knows about the controversial NBN contract between the government and ZTE Corp. of China.
“We are always concerned over the security of Mr. Lozada because if anything will happen to him, the tendency is that it will always be blamed on the government,” Remonde said.
The government has denied the claim of Lozada who has testified on numerous occasions before the Senate and has gone around the country rallying support for truth and against corruption in the administration.
Remonde said it is the handlers of Lozada who have more to gain with his death.
“As I have warned before, maybe some of the people who use him might find him more useful dead than alive. So it is in the best interest of the government to also ensure his security,” he said.
PNP chief Director General Avelino Razon previously said that he was willing to provide security to Lozada and that this was offered to him.
Meanwhile, the nuns and priests who have taken care of him since he exposed the alleged anomaly in the NBN-ZTE deal suggested money isn’t the issue.
In a press conference the other day at De La Salle University in Greenhills, San Juan, Sister Estrella Castalome, executive secretary of the Association of Major Religious Superiors of the Philippines, said the Senate is conniving with an influential person to silence Lozada.
Castalome said the Senate Office of the Secretary has ordered them to stop Lozada’s out-of-town campaign for truth and accountability in various universities and colleges, citing the lack of funds to support his travels.
She said that from an eight-man security detail, the Senate has trimmed it down to only six, including two drivers. The security team escorts Lozada in his out-of-town visits.
“I don’t believe that the problem here is the P2 million (security costs) that (Sen. Juan Ponce) Enrile is harping about. Is Lozada’s life only worth P2 million? How much has Jun Lozada saved for the government? $329 million,” Castalome said. – Marvin Sy, Jose Rodel Clapano
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524167

Miriam: Lopezes derailing my ICJ bidSunday, May 25, 2008
Sen. Miriam Defensor-Santiago accused the Lopezes yesterday of trying to ruin her candidacy for the International Court of Justice (ICJ), apparently in retaliation for her blaming the Lopez-controlled Manila Electric Co. (Meralco) for the high electricity rates.
Santiago said only weeks after she led an investigation into the causes of high power rates, the website of news provider ABS-CBN, which is also owned by the Lopezes, tried to scuttle her ICJ candidacy by claiming that “some countries are moving to oppose her” and that “she has not even qualified for the highest court of the country,” referring to the decision of the Judicial and Bar Council not to take seriously her nomination because they chose to adopt the policy of considering only incumbent Supreme Court justices.
The story did not name the countries or give the reason for the alleged opposition, Santiago said.
Santiago recently presided over a televised public hearing of the Joint Congressional Power Commission (JCPC) where she equally blamed Meralco and the National Power Corp. as well as alleged lax regulation, for the high power rates charged by Meralco.
“The news article is full of unhelpful conjectures and factual errors,” Santiago said.
The “derogatory item” came out Friday, only days after the probe on high Meralco rates, Santiago said.
She said the bicameral investigation was part of the JCPC’s duties under the law. Santiago chairs the JCPC, while her co-chairman is Pampanga Rep. Juan Miguel Arroyo, son of President Arroyo, who has been urging Meralco to lower its rates.
“I will have to take this in stride, because the Philippines has a culture of corruption. A vast business empire such as that of the Lopez family will not hesitate to use its media outlets, even to the point of destroying a national candidature, in order to protect their giant corporate profits,” she said.
Santiago added that at least one newspaper columnist in a national daily had previously hinted that there would be a propaganda campaign against Santiago’s ICJ bid.
She said the columnist mentioned that her prior bid for another international court was scuttled because she was an ally of former President Joseph Estrada at the time.
Santiago added that she would consider over the weekend her options such as filing a libel suit or giving a privilege speech on Monday, or whether she would just “suffer in silence.”
“It is obviously the work of a dirty tricks department so evil that it hardly merits attention. In trying to destroy me, they are also destroying a Philippine national candidature. Sometimes iniquity is its own worst punishment,” she said.
In her statement, Santiago quoted a top official in the Philippine Permanent Mission to the United Nations in New York as saying that “the negative spin of the news articles obviously affects the campaign since foreign embassies in Manila and the foreign service of other countries would report this to their capitals.”
The official, according to Santiago, also said that the article “would tremendously affect both the gains achieved by the Philippines in the campaign in the ICJ and its future efforts to preserve such gains to obtain more support.”
Santiago said she was not running in her own individual capacity, but as an official candidate of the Philippines.
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524168

GMA, Kampi allies play golf, talk about merger with LakasBy Marvin Sy Sunday, May 25, 2008
She may have spent most of the day on the greens with her husband but golf was definitely not the only thing on the mind of President Arroyo yesterday.
With most of the week spent in meetings and other appointments in and out of Metro Manila, the President and First Gentleman Jose Miguel Arroyo took a rare day off with her allies in the Kabalikat ng Malayang Pilipino (Kampi) for a round of golf at the Valley Golf and Country Club in Antipolo.
Mrs. Arroyo led the ceremonial tee-off for the Kampi-organized game, which the party said was meant to raise funds for various programs and projects for the disadvantaged sectors across the country.
Pampanga Rep. and presidential son Juan Miguel Arroyo said the golfers were on the fairway as early as 6 a.m. and that all holes were full.
He said the President was expected to stay the entire day and that she would join them for a party fellowship afterwards.
Rep. Arroyo admitted it was inevitable that the Kampi members would talk about the forthcoming merger with the Lakas-Christian Muslim Democrats, the two major political parties affiliated with the administration.
According to Arroyo, the members of the two parties who used to oppose the merger are now more receptive to the idea.
It was the President who called for the merger of the two parties, which came after members of Lakas started moving over to Kampi and the relationship between Mrs. Arroyo and party president Pangasinan Rep. Jose de Venecia Jr. became strained.
The long-standing alliance between De Venecia and the President practically went down the drain when the erstwhile Speaker’s son and namesake, Jose de Venecia III, implicated the First Gentleman in the controversial NBN-ZTE deal.
“You know you can’t discount the fact that there are resistance from both sides, from Lakas and Kampi. The resistance now is much softer than it was three months ago,” Rep. Arroyo said.
He said the merger would probably push through within the year or by the middle of next year.
Apart from giving some orders, he said the President has left it up to Speaker Prospero Nograles, who is now Lakas party president, to handle the merger of the two parties.
Asked about the reaction of the President and the First Gentleman on the statements being issued by De Venecia’s wife, Georgina, against them on the issue of the NBN-ZTE deal and other controversies, Arroyo said Mrs. De Venecia was probably just “sourgraping” over her husband’s ouster as House speaker.
“Alam mo si Manay (You know Madam) Gina, with all due respect, she probably thinks that the speakership is their family owned corporation,” Arroyo said.
“I hope she accepts the fact that 174 congressmen voted for change. I mean it’s a democracy, let’s allow democracy to run its course,” he added.
He said the President and the First Gentleman are not paying any attention to the statements coming from Mrs. De Venecia.
“I don’t think they’re really minding her. My mom is focused on her work and my dad is trying to revitalize his health,” he said.
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080524169

Lozada sasaluhin ng PNPSunday, May 25, 2008
Sinigurado kahapon ng Malacañang na maa­aring protektahan ng Philippine National Police si ZTE star witness Rodolfo Noel Lo­zada Jr. sakaling magde­sis­yon ang Senado na bi­tawan na ito dahil sa gastos.
Ayon kay Presidential Management Staff head Cerge Remonde, naka­handa ang gobyerno na bigyan ng proteksiyon si Lozada dahil posibleng ibintang pa sa pamaha­laan sakaling may mang­yaring masama sa kanya.
Posible aniyang may ilang sektor na magtang­ka sa buhay ni Lozada upang masisi ang pama­halaan.
Naging isyu sa Sena­do ang gastos sa pagbibi­gay ng seguridad kay Lozada lalo na ang pag-iikot nito sa mga probin­siya.
Si Lozada ang pangu­nahing testigo sa hindi natuloy na $329.48 mil­yong national broadband network project na ipinag­kaloob ng gobyerno sa ZTE Corp. ng China.
Nakaladkad sa nasa­bing maanomalyang kon­trata si Pangulong Gloria Arroyo na pinayagan uma­nong matuloy ang pirma­han ng kontrata sa kabila ng isyu ng suhu­lan.
Sinigurado naman ng grupo ni Lozada na ipag­papatuloy pa rin nito ang paglilibot sa mga probin­siya at mga unibersidad sa pagbubukas ng klase sa Hunyo upang ipaalam sa taumbayan ang kato­to­ hanan. (Malou Escudero)
http://philstar.com/index.php?Bansa&p=50&type=2&sec=54&aid=2008052465

Mikey A. lambasts De Venecias anew

05/25/2008
Presidential son and Pampanga Rep. Juan Miguel “Mikey” Arroyo yesterday renewed his “word war” against the family of former Speaker Jose “Joe” de Venecia Jr. who he claims continues to sour grape because of the speakership issue where De Venecia was ousted.
In a phone interview, Mikey warned De Venecia that the speakership is not their (JdV’s) “family-owned corporation.”
The De Venecias have been blaming the Arroyos for the former Speaker’s fall from the House speakership which he held for several years.
“It’s been going on for sometime,” said Rep. Arroyo on what he termed as continuous “sour graping” by the De Venecias, including Gina de Venecia, the former House leader’s spouse.
“Let democracy run its course,” he said, stressing that a total of 174 congressmen voted for democracy in the House of Representatives, thus successfully replacing the then seemingly invincible former Speaker.
Asked how his parents are taking the latest barrage from De Venecia’s spouse, Rep. Arroyo said: “I don’t think they are minding her.”
“My mom (President Arroyo) is very focused while my dad is (busy) revitalizing his health… And the ongoing controversies about the Arroyo family? It goes with the territory…”
The former Speaker after his ouster from his post, has vowed to expose wrongdoings in the Arroyo administration and lead a moral revolution.
Meanwhile, Senate Mino-rity Leader Aquilino Pimentel Jr. also yesterday said the testimony of the former Speaker on the ZTE-National Broadband Network (NBN) controversy will be “meaningful” in helping unravel the truth but he should be prepared to face the risks for doing so.”
Pimentel backed the plan of the Joint Senate blue ribbon committee to invite De Venecia to shed light on what really transpired in the meeting between Mrs. Arroyo and top executives of ZTE Corp. during a visit to the company’s headquarters in Shenzhen, China on Nov. 2, 2006.
De Venecia has confirmed that he was present during that meeting as a member of the presidential party.
“For all his faults, Joe de Venecia’s appearances before the blue ribbon committee, if he tells the truth, will be meaningful because he was one of those deeply involved in the negotiation with the ZTE. And therefore, he can very well spill the beans on the involvement of other people, including the President,” Pimentel said.
De Venecia is being dissuaded by some adminis-tration senators from testifying, as they warned that it could backfire on him, especially in the light of his involvement in the nego-tiation with the Chinese government for the financing of another venture, the $50-million North Rail Project.
“That is the risk that he will have to take, obviously. That’s up to him to decide,” Pimentel said.
“The moment JdV appears before the Senate anything goes,” he stressed in view of allegations that the former Speaker was also involved in the ZTE-NBN deal and the likelihood that he will be grilled by the senators on his involvement in the North Rail Project.
He also debunked Malacañang’s claim that there was nothing inappropriate in
in the visit of Mrs. Arroyo, together with First Gentleman Jan Miguel Arroyo, to the ZTE headquarters and her meeting with the ZTE executives.
“If we are talking of the President’s meeting with the ZTE officials as a routine engagement of the President, you may say there’s nothing wrong with it. But you have to consider the circumstances under which the meeting took place,” he said.
At the time, the public bidding of the NBN project was under way and the ZTE Corp. was only one of the interested bidders. Sherwin C. Olaes and PNA
http://www.tribune.net.ph/headlines/20080525hed6.html

Pang-aabuso ng Meralco tinulugan ng ERC
Ni Bernard Taguinod

Pinayuhan ng isang kongresista ang Malacañang na sa halip pag-isipan ang pag-takeover sa Meralco mas makabubuti kung mismong si Pangulong Gloria Macapagal-Arroyo na ang mamuno sa Energy Regulatory Commission (ERC) dahil tinutulugan ng ahensya ang trabaho nito na proteksyunan ang mga consumer sa pagsasamantala ng naturang kumpanya.
Ito ang tinuran ni Bayan Muna party-list Rep. Teddy Casiño kaugnay ng pagsisikap aniya ng gobyerno na maagaw sa mga Lopez ang Meralco sa pamamagitan ni Government Service Insurance System (GSIS) president and general ma­nager Winston Garcia.
Ayon kay Casiño, lahat ng mga increase at iba pang bayarin na sinisingil ng Meralco sa mga consumer ay inaprubahan ng ERC kaya ito umano ang dapat na talian ng Malacañang.
“Kung gusto talaga nilang ibaba ang presyo ng kuryente, i-takeover o kaya talian nila ang ERC. Lahat naman ng sinisi­ngil ng Meralco, sila ang nag-apruba,” pahayag ni Casiño.
Lalong dapat aniyang pamunuan na ni Pangulong Arroyo ang ERC dahil tinutulugan ni ERC chairman Rodolfo Albano ang kanyang trabaho na proteksyunan ang mga consumer sa pagsasamantala ng Meralco.
Halos ganito rin ang pananaw ni Sen. Alan Peter Cayetano sa halip na idaan aniya sa stockholders’ meeting ng Meralco ang pagpapababa sa presyo ng kuryente sa bansa.
Ayon kay Cayetano, wala sa management ng Meralco ang problema kundi sa mga ahensya ng gobyerno tulad ng ERC at National Power Corporation (Napocor) kung bakit mataas ang presyo ng kuryente.
“Bakit sa board (ng Meralco) ang labanan samantalang ang problema ay nag-ugat mismo sa mga ahensya ng gobyerno?” tanong ni Cayetano kaya duda ito na pinag-iinteresan ng mga alipores ni Arroyo ang nasabing kumpanya.
“Sana lang wala talagang pulitika sa Meralco takeover kasi hindi ma­ngangahulugan na bababa ang presyo ng kuryente kung may pulitikang kasama,” pahayag pa ng senador.
Ginawa ni Cayetano ang nasabing pahayag bilang reaksyon sa stockholders’ meeting ng Meralco sa Martes kung saan pagbobotohan ang bagong grupo na mamumuno sa nasabing kumpanya.

http://www.abante-tonite.com/issue/may2508/news_story3.htm

Gloria marami pang itinatago sa NBN deal
(Bernard Taguinod)

Walang plano ang Se­nate blue ribbon committee na ilabas ang resulta ng kanilang imbestigasyon sa ZTE-National Broadband Network (NBN) deal dahil marami pang itinatago ang Malacañang sa maano­malyang kontrata.
Ito ang sinabi kahapon ni Sen. Alan Peter Ca­yetano, chairman ng blue ribbon committee, kaugnay ng pagkaka-delay ng committee report na inaabangan ng taumbayan.
“Hindi pa puwedeng ilabas dahil mayroong development,” ani Cayetano na ang tinutukoy ay ang paglabas ng mga larawan ni Pangulong Gloria Macapagal-Arroyo na nakikipag­laro ng golf sa mga ZTE officials.
Ayon kay Cayetano, ang mga larawan ay indikasyon na marami pang itinatagong lihim ang Malacañang ukol sa naturang maanomalyang kontrata na dapat munang malaman bago ilabas ang committee report.
“Hindi pa kasi kumpleto dahil marami pa silang itinatago. Marami pa silang hindi inaamin,” paliwanag ni Cayetano.
Sinabi ng senador na tanging ang Malacañang ang puwedeng makapagpabilis sa pagpapalabas ng committee report sa pamamagitan ng pag-amin sa papel ni Arroyo sa naturang kontrata.
“Kung inamin na ba nila lahat, sana natapos na kaso marami pa silang itinatago,” dagdag pa ni Cayetano.
http://www.abante-tonite.com/issue/may2508/news_story4.htm

May 24, 2008 Mind Bullet Inc.

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I.BANNER STORIES

1. Philippine Daily Inquirer

Showdown at Meralco GSIS chief girds for proxy war on Tuesday By Ronnel Domingo Philippine Daily Inquirer First Posted 00:11:00 05/24/2008 Most Read Other Most Read Stories x News oShowdown at Meralco oNani Perez, wife arraigned oAngry kin cry rubout in killing of 3 suspects oArroyo, Legarda chat like long lost chums oLopezes may stay at helm even if gov't gains Meralco control oPNP: 2 of 6 behind RCBC massacre uniformed personnel oMissiles explode in Russian arms depot blaze--agency oSome jurists asleep when God spread wisdom oLopez says no to full, live media coverage oPublic warned vs credit card scam o'Chef' Thai PM goes to market oPrince Charles has growth removed from face--office News Most Read RSS Close this MANILA, Philippines--Government Service Insurance System president Winston Garcia looks like a man getting ready for war as he prepares for a proxy fight at the Manila Electric Co.'s annual stockholders' meeting on Tuesday where he could either lose his seat on the board, or end up in control of the country's biggest power distribution utility. Garcia said the soliciting of proxies could result in a reduction of the government seats at the 11-member Meralco board from four to three, with him as the probable casualty. Garcia said it was apparent that the utility's rates could go down only with a change in the Meralco's management team. He said this would be his objective at the shareholders' meeting on Tuesday when a new board would be elected. But Garcia has accused the Lopez group of "engaging in dirty tricks" by soliciting proxies even after the deadline for this had lapsed last week. Meralco vice president Elpi Cuna said this was "not only irresponsible but downright false." "It was and will never be the policy of Meralco management to engage in dirty tricks," said Cuna, Meralco's director for corporate communication. The government "needs the four seats to establish a quorum as well as a majority [with the help of two independent directors]," said Garcia who has been waging a media war against the Lopez group's management of Meralco. 'Abusive practices' Garcia said that his aim was to change Meralco's management team whose "abusive practices" were the reason why electricity rates were the highest in Luzon and even in Asia. Garcia said his GSIS team was watching the developments leading to and during the annual meeting. He said he would be bringing eight lawyers to face off with Meralco's "40 lawyers." "If we see that we have been wronged, we are ready to take them to court. A lot of people could go to jail," he said. In a slide presentation, Garcia showed what these abusive management practices were. He said that while Meralco charges its residential customers P9.64 per kilowatt-hour, the country's next-largest private power distributors like the Visayas Electric Co. bills consumers P6.92 and Davao Light & Power Co. P6.44. While Meralco charges its large-consuming customers P8.09 per kWh, Veco bills its own large users P6.50 and Davao Light P5.87. "Meralco's business account for 60 percent of all kilowatt-hours sold in the country and it has some 4 million customers. In terms of client base, that is 10 times the second-largest utility in the country (Veco)," he said. "With such economies of scale, Meralco should be charging 20 percent to 30 percent lower than the other utilities" but it doesn't because of the management's abuses, Garcia said. Self-dealing transactions He said the root of the problem was Meralco's "disadvantageous, self-dealing transactions" with Lopez-owned, -controlled or -affiliated corporations. He cited Meralco's supply contracts with two independent power producers which he described as the "the most disadvantageous" IPP contracts in the country. He was referring to two power plants, the 1,000-megawatt Sta. Rita and 500MW San Lorenzo, in Batangas which are owned by First Gas Power Corp. and FGP Corp. The latter two companies are the generation subsidiaries of First Gen Corp., the primary holding company for the power generation and energy-related businesses of the Lopez group. Manipulative purchasing "To give the illusion that the Lopez IPPs charge lower than the [state generator] National Power Corp., Meralco buys from Napocor at peak hours," he said. He said the electricity supplied by the First Gen plants was priced at a take-or-pay rate of P4.25 per kWh. "Napocor's peak hour rates are higher than that, but at off-peak hours [Napocor's] prices range between P1.87 and P2.719 per kWh," Garcia said. "Despite that, 80 percent of Meralco's purchases from Napocor is done at peak hours," he said. "This manipulative purchasing is against the law, which says that purchases should result in the least cost (for consumers)," he said. Garcia also denounced other abusive practices by the Meralco management, such as the creation of several subsidiaries in order to disguise or mask the purchase of overpriced goods and services. These subsidiaries are involved in engineering, contracting and consulting services, metering products and services and insurance. Benpres P328-M debt He also deplored the Meralco management's "subservience to Lopez interests," citing, among others, "the settlement of Benpres' P328-million obligation to Meralco through conversion of undervalued shares of stock," and Meralco management's entering into a joint venture with Benpres and First Philippine Holding Corp. (FPHC) for the development of Meralco's Rockwell property. Benpres Holdings Corp. is the Lopez family's holding company for its investments in broadcasting, entertainment, cable, television, power generation and distribution, infrastructure, real estate development and health care delivery. FPHC is another Lopez group holding company with investments in power and tollways, property and manufacturing. Meter, bill deposits Garcia also accused the management of having "no sense of accountability," for allegedly appropriating its customers' meter and bill deposits for other purposes without proper authority. These deposits totaled P14.09 billion in 2007, with accumulated interest of P7.31 billion. Finally, Garcia accused management of having made no serious effort to curb systems losses and deplored the lack of transparency on how these systems losses were incurred. He said the losses have been steadily increasing, from P15.8 billion in 2005, to P16.4 billion in 2006, to P17.31 billion in 2007. Jesus Francisco, Meralco president and chief operating officer, denied Garcia's accusations at a hearing earlier this month of the Joint Congressional Power Commission. Flat rates Francisco told senators and congressmen that under contracts with both the Napocor and IPPs, Meralco was being charged a flat rate regardless of the time of day when the purchases are made. As for purchases made outside these contracts or through the wholesale electricity spot market, Francisco said Meralco was forced--during times when supply was scarce--to buy at a clearing price of as high as P20 per kWh. "Our supply-demand profile is made 24 hours in advance. As a price taker, we are not sure where the power will come from," he said. Cuna said Garcia's "habit of spewing false information about the company" was dampening investor confidence. He said it has brought down the price of Meralco shares, which fell Friday to a new one-year low. Meralco shares closed at P64 Friday, down P3 or 4.48 percent from the previous P67 a share. Garcia said that with a new management that is responsible and accountable to consumers, he would push for Meralco to buy as much as 90 percent of its supply needs from Napocor and at off-peak hours. Politician's promise While this means putting the Lopez-owned IPPs out of business, Garcia's data show that Meralco rates could go down by a range of P1.531 to P2.38 per kWh. Cuna said Meralco is not against lowering power rates. "We are one with him (Garcia) or anyone in reducing power rates. The question is how," he said. Cuna said Garcia's suggestion to replace current management in order to lower power rates sounded like a "politician's promise." "Any change in management will be decided by shareholders. They have the last say," Cuna said. Meralco treasurer Rafael Andrada meantime explained that salaries, wages, overhead costs and systems losses of Meralco are included in an average distribution charge of P1 per kWh, which is the amount Meralco earns from consumers equivalent to its service fee. A 20-percent reduction in the power rate as suggested by Garcia would mean a reduction by P2 per kWh. "Where will the balance of another P1 come from?" Andrada asked. With reports from Elizabeth Sanchez, Norman Bordadora and Christine Avendaño

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080524-138466/Showdown-at-Meralco

2. The Philippine Star

Diesel up by P1.50
By Donnabelle Gatdula
Saturday, May 24, 2008

A day after the government announced the scrapping of import duties on crude oil to cut pump prices, oil firms announced another round of price increases.

Among those to be hardest hit by the increase are jeepneys, which are mostly fueled by diesel.

Eastern Petroleum Corp. president Fernando Martinez said the company has no choice but to raise its prices for diesel and gasoline by P1.50 per liter and P1 per liter, respectively, effective today.

Martinez said the move to adjust prices is unprecedented due to the continuing rise in international crude prices.

“It’s a matter of survival. Some of us have already entered into allocations, supplying only existing and loyal clients and dealers,” Martinez said.

Other oil firms, however, remained silent on whether they would adjust their prices this weekend. It is likely that a number of them will, within the same price range as they did in the past.

In a deregulated environment, competitive pressures typically drive oil players to adjust prices based on the market. So if an oil firm announces an increase or reduction in pump prices, the others tend to follow.

Martinez said they are trying to implement an allocation scheme that will enable them to stretch their inventories instead of buying oil products at current high prices.

This means that the oil firms will not replenish their inventories until after they have sold their current supply.

As of May 17, the suggested pump prices were P49.33 to P52.26 per liter for unleaded gasoline, P41.67 to P43.97 per liter for diesel, and P46.15 to P49.30 per liter for kerosene.

Oil firms increased their diesel prices by only 50 centavos per liter last weekend.

Later on, however, the oil companies realized that at the rate the global oil prices are rising, they cannot afford to implement minimal oil price adjustments.

The other day, the Department of Energy (DOE) approved a zero percent tariff rate on crude and refined petroleum products effective June 1.

This decision followed a 15-day review (from May 1 to 15) of Dubai and diesel benchmark prices in the international market.

Energy Secretary Angelo Reyes said he signed the certification specifying that oil import duties will be reduced to zero percent, from the one-percent rate in April and May.

The review is part of the automatic tariff adjustment mechanism which is based on certain trigger points indexed to international crude oil prices.

The average price of Dubai crude and diesel in the international market was above $115.46 per barrel and $153.52 per barrel, respectively, last May 1 to 15.

“We are faced with a regime of high oil prices. This is the reality and we should brace ourselves for adjustments in local pump prices. The benefits of the programs we are implementing to attain energy independence will not be immediately felt since most interventions in the energy sector are medium- or long-term in nature,” Reyes said.

Reyes said the DOE continues to implement existing programs aimed at achieving energy security and self-sufficiency to mitigate the impact on the general public of oil price surges in the international market.

These measures include advocating the efficient use of energy, promoting the biofuels program, advancing the renewable energy bill in Congress and continuing operations against colorum or out-of-line vehicles and kotong (illegal toll).

According to Reyes, there is also a move to create a transport fund that drivers and operators could tap into to convert their vehicles to liquefied petroleum gas (LPG) or compressed natural gas (CNG)-driven vehicles.

But the energy chief said in lieu of an additional subsidy from the government of P2 per liter of diesel for public utility vehicles, the amount could better be used to set up this fund.

“This will have a better effect on the quality and condition of their vehicles on the road and reduce air pollution,” Reyes said.

Reyes has been a staunch promoter of LPG and CNG as it is cheaper than imported gasoline, diesel and crude.

The P2 per liter subsidy was proposed by the Land Transportation Franchising and Regulatory Board on top of the P1 per liter discount given by the oil firms to the transport sector.

3. Manila Times

Going up again: LPG, fuel

Cooking gas hike could be P3 per kilo in June

By Euan Paulo C. Añonuevo, Reporter After cooking-gas prices went up P0.50 per kilo Friday, liquefied petroleum gas (LPG) suppliers announced yet another increase in June—this time by at least P3 per kilo. It gets worse. Small oil companies also on Friday said pump prices are poised to go up—P1.50 per liter for diesel and P1 per liter for gasoline. Arnel Ty, LPG Marketers Association president, said that starting next month—which is just a week away—the public should expect “the highest increase for LPG” because of higher contract prices in the world market. He added that prices may see an increase of at least P3 per kilo in light of this, pushing the price of an 11-kilogram LPG cylinder to more than P650. Data from the Department of Energy showed that as of May 17, the prevailing price of an 11-kilo tank has been hovering between P575.50 and P627.25. The LPG Marketers Association accounts for about a quarter of the cooking gas market in Luzon, and carries such brands as Omni Gas, Pinnacle Gas, Island Gas, Cat Gas and Nation Gas. Although large oil firms have yet to make an announcement as of press time, they are expected to follow suit. Industry officials pointed to the soaring prices of crude in the world market as the culprit behind the increasing price of cooking gas, as LPG is made during the process in which a barrel of oil is turned into petroleum products. The contract price for LPG rose to $855.50 in May, up by $43.50 from the previous month. Aside from high crude prices, a number of petrochemical firms in the region are starting to use LPG as feedstock for their operations because of the increasing price of naphtha, causing an increase in demand. Gasoline to go up Oil firms on Friday confirmed previous reports of a looming hike of pump prices after their under-recoveries ballooned from about P7 per liter at the start of the month to P10 per liter. “We have no choice. It’s a matter of survival,” said Fernando Martinez, Eastern Petroleum Corp. president. He is also chairman of the Independent Philippine Petroleum Companies Association, whose members are small oil companies. Martinez said his company increased its diesel prices by P1.50 per liter and P1 per liter for gasoline effective Friday. Other oil firms are expected to follow suit, because of the petroleum industry’s deregulated environment. He added that some oil firms have already started to enter into allocations, supplying only existing and loyal clients and dealers, to allow them to cope with the high crude prices by stretching their inventories, instead of buying oil products at the current extremely high prices. World oil prices Crude oil prices jumped higher in London on Friday to trade just below $132 a barrel, just $3 away from record highs reached this week on concerns that supplies will not meet demand. New York’s main oil futures contract, light sweet crude for July delivery, rose $1.12 to $131.93 a barrel. In London, Brent North Sea crude for July delivery grew $1.42, also to $131.93 a barrel. On Thursday, Brent struck an all-time high of $135.14 and New York crude reached a record $135.09, before both contracts slid as investors banked profits. “While we do expect this bubble to burst, and make no mistake about it, this bubble will burst, we are not ready to say yesterday’s profit-taking selloff was the start of the correction,” said the latest daily Schork Report on energy markets published Friday. Oil prices have risen more than fourfold in five years, when the New York benchmark rose, underpinned by Chinese demand for crude. They reached $100 for the first time in January, crossed $120 a barrel at the start of May, and $130 on Wednesday after government data showed US energy inventories surprisingly fell last week. Oil prices are also being supported by unrest in oil-producing countries, OPEC’s unwillingness to hike output, and a weak dollar that makes commodities priced in the US unit cheaper for foreign buyers. OPEC is the Organization of Petroleum-Exporting Countries. “With the surge in oil prices starting to look increasingly like a speculative mania, further increases are likely in the short term as more and more speculative capital is sucked into the vortex created by rising prices,” said Shane Oliver, chief economist of AMP Capital Investors in Sydney. Oil at $150 a barrel “is now just a few weeks trading away,” he said. With supply struggling to meet demand, oil at $300 per barrel “is not inconceivable on a five-year horizon,” Oliver added on Friday. Algeria’s Energy minister and OPEC president, Chakib Khelil, said Thursday that falling production in non-OPEC countries, such as Russia, has contributed to the spectacular rise in global oil prices. Meanwhile, Abdala El-Badri, OPEC secretary-general, said cartel members were unhappy with surging prices that he blamed on speculators and a weak US dollar. OPEC, which produces 40 percent of the world’s oil, is reluctant to bend to US-led demands for it to increase production to help cool rocketing prices. The 13-nation cartel insists that the market is well supplied and that record prices reflect speculative investment activity, rather than actual supply and demand conditions. -- With AFP

http://manilatimes.net/national/2008/may/24/yehey/top_stories/20080524top1.html

4. Malaya

Oil tariff at zero
won't stem prices
Teves says: No stopping increases

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BY REGINA BENGCO

FINANCE Secretary Margarito Teves yesterday said the tariff on oil imports would be brought down to zero on June 1 following the rise of global oil price to $135 per barrel on Thursday.

Don't expect any immediate lowering of prices, he said.

The zero tariff will not immediately result in lower pump prices because some companies still have recoveries, he said.

Eventually, he said, prices would have to increase.

Oil was trading at $132 per barrel yesterday.

"Kasi tumataas din ang presyo, wala tayong magagawa doon. Ang kapalit niyan, we'll find a way of re-channelling whatever additional resources that the government has collected back to the sectors that were affected. Yun ang plano," he said.

Oil companies are expected to raise prices again this weekend. Since the start of the year, the oil firms have raised prices nine times, bringing the price of gasoline to a record high of at least P51 a liter.

Oil firms have said they are eyeing a recovery amount of P7 a liter to stop losses due to skyrocketing world crude prices.

The energy department earlier this week said price triggers for the zero tariff were breached during the first two weeks of the month.

The current tariff is 1 percent. Last January, Malacañang effected a 1 percentage point reduction (to 2 percent from 3 percent) on the tariff on oil as an alternative to calls for suspending the 12 percent value-added tax on oil or scrapping the oil deregulation law.

The Palace has said suspending the VAT would result in a P60 billion revenue loss and lower credit ratings.

Teves said the current value of the peso (P43.42 to a dollar) is still within the P42-P45 peg for the 2008 national budget.

He said the deterioration of the peso to more than P43 to the dollar helps the exporters and the overseas Filipino workers but government will have to pay more interest for its debts.

He said the lower peso value also improves Customs collections because taxes are collected based on the peso equivalent of the imported item.

He said what government is watching out for is the effect of the peso on the gross domestic product because a lower GDP would affect the overall revenue collection.

He said deterioration would initially be inflationary and would result in higher tax collection.

"We will know in the next semester, because it may already have an effect on our economy. But we don't know to what extent yet," he said.

But he said government has to look at the assumptions associated with the economic projections because both the inflation and interest rates are now higher than the assumption.

The inflation rate was 8.3 percent as of April.

http://www.malaya.com.ph/may24/news1.htm

5. Manila Bulletin

Lozada unfazed by move
to cut out-of-town trips

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NBN-ZTE star witness Rodolfo "Jun" Lozada yesterday said the Senate has told him to stop his out-of-town speaking trips, saying that it could no longer afford the expenses of providing security.

Lozada was unfazed. Told that there may have been Malacañang pressure to gag him, he said no amount of pressure or threats could force him to stop his crusade.

"Tuloy pa rin ang krusada at wala na itong atrasan," he said.

The Association of Major Religious Superiors of the Philippines (AMRSP) which has taken Lozada under its protection was disappointed.

Sr. Estrella Castalone branded the order as a "way to scare off" potential witnesses from coming out in the open against corruption in the administration.

"What about the risks taken by Jun when he came out of the open? I don't think this is the right decision. I don't think money is the reason here, there's something other than money here," she said.

She said they had been repeatedly assured by Senate President Manuel Villar and Blue Ribbon chair Alan Peter Cayetano that money was no problem.

But she said that Lozada's security detail complained they were having a hard time getting travel orders.

She said Senate officials told her on May 1 the Senate could only provide a four-man security detail.

Lozada originally had an eight-man security detail which was later cut to six, four of whom covered his out-of-town trips.

Castalone said if money was the problem, the ARMSP and other non-government organizations were more than willing to shoulder the expenses but said that what is at issue is not about the money but rather the truth.

"They are practically accomplices to the move to gag Lozada. Is Jun's life worth only P2 million considering that what he told enabled the country to save P16 billion?" Castalone said. - Ashzel Hachero

http://www.mb.com.ph/MAIN20080524125451.html

6. The Daily Tribune

Palace to Garcia: Go to SC, seek TRO on proxy listing

By Sherwin C. Olaes

05/24/2008

Malacañang, through its Chief Legal Counsel Sergio Apostol yesterday advised Government Service Insurance System (GSIS) president and general manager Winston Garcia to file a case before the Supreme Court (SC) as a means of ending the row between Garcia and the Lopez group.

The latest flareup came when the Garcia group Thursday questioned Manila Electric Co.’s (Meralco) alleged refusal to give GSIS a copy of the listing of proxies which deadline had already expired.

The GSIS group, a major stockholder of Meralco, had reportedly requested Meralco’s corporate secretary, retired SC Justice Jose Vitug, for the listing of the proxies prior to the stockholders’ meeting scheduled on May 27.

Vitug was supposed to have said he would assume the position of corporate secretary only during the stockholders’ meeting on the 27th,and could not therefore hand over to the Garcia group the list of proxies.

Yet Vitug Thursday said he was resigning as corporate secretary but would stay on as Meralco’s counsel.

The Garcia group also issued the same request to the assistant corporate secretary, who was alleged to have refused to provide the GSIS group with the proxy listing.

Malacaang yesterday advised Garcia to go to the Supreme Court, as a last resort to end the row over the Lopezes’ alleged non-transparency.

In a phone interview, Apostol said former Justice Vitug, and current Meralco board consultant made a right decision to resign as Meralco’s corporate secretary, because his decision to deny Garcia the list of proxies is a corporate violation, as the GSIS president, combined with other agencies of government, has a 33 percent stake in the company.

“He (Vitug) resigned as corporate secretary. He made the right decision because he could be charged in court. What he did is a corporate violation.”

Apostol also claimed that the “Lopez family has also committed a violation. GSIS is a major stockholder of Meralco and should not be denied of list of proxies,” he said referring to small stockholders who can have a voice in the election of directors in the Meralco board.

The Lopezes, through their First Philippine Holdings Corporation, has a 33.4 percent shareholding in the power utility firm, with the remaining less than 40 percent shared by smaller stockholders.

Apostol said since the Meralco’s stockholders meeting is already set on May 27, the GSIS can still make a last ditch effort to scrutinize the listing of Meralco’s small stockholders by filing a complaint in the Supreme Court.

“We (in Malacaang) recommend that Winston should go to the Supreme Court and file a mandamus to compel them (Meralco) to open their books of accounts and also open the list of proxies,” he said.

Apostol added that the high tribunal can issue a temporary restraining order (TRO) which could effectively postpone the Meralco’s stockholders meeting until the Lopez group in Meralco discloses the entire list of proxies.

As for Thursday, the GSIS representatives were present in the Meralco offices to check on the proxy listings.

Sources told the Tribune that the GSIS group questioned a lot of names in the proxy list.

Asked if Apostol doubts the reliability of list of proxies, he replied in the affirmative.

“That’s why they (Meralco) should open their records, for all we know those in the lists are their relatives,” he said.

For his part, Executive Secretary Eduardo Ermita said Department of Finance Secretary Gary Teves, along with the special economic team President Arroyo formed to investigate Meralco’s high electric charges, met the other day and will be again meeting next week, along with the officials not only of Meralco but the Energy Regulatory Commission, National Power Corporation and the GSIS to find means of lowering down power rates.

In a chance interview, Teves said they will also grill Garcia and ask him whether the change of management in Meralco, from the Lopezes’ would reduce electricity.

“We want to meet them (disputing groups in Meralco) separately so they can discuss uninterruptedly their side. Our agenda is first to present to us (Cabinet committee) recom-mendations on how to reduce the cost of electricity. Hopefully this will dilute differences over this matter. I still have to know what the row is about. Garcia seems to be asking for transparency and governance changes. We have to ask whether these (changes) have direct relevance on reducing (power) cost. By focusing on that, we can dilute personal differences,” he said.