MANILA, Philippines—Government Service Insurance System (GSIS) president and general manager Winston Garcia, a director of of Manila Electric Co. (Meralco), may have failed to oust the Lopezes from the management of Meralco but we have to thank him for trying. Were it not for the noise he made about Meralco, this utility would still be merrily doing what it has been doing during the pre-Winston Garcia era—overcharging its customers.
The Lopezes may still control Meralco, but they will be less cocksure now, their shenanigans having been exposed, their activities under scrutiny, and the laws and rules under which they have abused their privilege with impunity being reviewed. Most of all, the eyes of the public have been opened to the fact that for decades power consumers were being abused by Meralco. Customers now know that they are not getting the true worth of the money they are paying Meralco. Most of it is lost in the “systems losses,” in Meralco’s own electric consumption, in Meralco’s income tax payments, in the fat pensions of Meralco executives, in the overpricing of electricity and supplies bought from Meralco’s sister companies—all of which are charged to its customers. Each consumer’s power consumption bill is doubled because of these pass-on charges.
Also, Meralco subscribers now know that the biggest power distribution company in the country owes them billions of pesos that should be given back to them as refunds, as directed by the Supreme Court. And that they cannot now be forced to pay deposits for electric meters. It is our hope that we now have more enlightened and vigilant electric consumers.
It is also our hope that the Electric Power Industry Reform Act (Epira) would be amended, that the politicians in the Energy Regulatory Commission (ERC) would be replaced with professionals, and that electric rates would finally be lowered. These, we hope. When all these happen, don’t forget that Garcia made these possible.
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Manuel Lim, the son of Manila Mayor Alfredo Lim, who has been charged with selling “shabu” [methamphetamine hydrochloride] in a buy-bust operation, has been released on a P400,000 bail. The evidence against Lim and two other co-accused—Joel Sabado and Ronald Pascual—said the judge, is weak—so far.
The police witness who testified at a summary hearing said that he did not actually see the buy-bust transaction inside a car, he being about 15 meters away from the car. Moreover, Lim, Sabado and Pascual were not the target of the buy-bust operation of the Philippine Drug Enforcement Agency (PDEA). They were arrested only because they were there. Furthermore, the prosecution, which has full control of the proceedings, has agreed to submit the petition for bail on the basis of the evidence so far presented, and the court had no recourse but to resolve it on the basis of the evidence at hand, Judge Adelina Calderon-Bargas said.
Lim was represented by lawyers Reynaldo Bagatsing and Danilo Formoso, while Sabado was represented by lawyer Mario Ongkiko.
Bagatsing guaranteed that Lim would appear at every scheduled hearing, would not leave the country without the permission of the court, would comply with all the orders of the court, and would undergo drug rehabilitation.
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The deadline for the filing of a motion for reconsideration (MR) by the Philippine government of the recent Supreme Court decision on the case of Terminal 3 of the Ninoy Aquino International Airport (NAIA)—GR 169914 and 174166, AEDC vs DOTC—is fast approaching. If the government doesn’t file an MR, or does not make the deadline, it will weaken the Philippine defense in the arbitration cases against Philippine International Air Terminals Co. (PIATCo) and Fraport AG in Singapore and Washington. Total potential loss to the Philippine government is $1 billion.
In its decision, the Supreme Court placed the blame entirely on the government for the fiasco that led to the nullification of the PIATCo contract for the construction of the NAIA 3.
In two previous decisions (Agan Jr. vs PIATCo and Republic vs. Gingoyon), the Supreme Court declared the PIATCo contract null and void. In Agan, the Court itself concluded: “In sum, this Court rules that in view of the absence of the requisite financial capacity of the Paircargo consortium, predecessor and respondent PIATCo, the award by the PBAC (Prequalification Bids and Awards Committee) for the construction, operation, and maintenance of the NAIA 3 is null and void.”
However, the Court laid the blame entirely on the government which, according to concerned business and labor sectors, could mean dire consequences for the Philippines. Citing Page 26 of the decision, they said: “In his separate opinion in Agan, former Chief Justice Artemio V. Panganiban noted that ‘there was effectively no public bidding to speak of, the entire bidding process having been flawed and tainted from the very onset, therefore the award of the concession to Paircargo’s successor PIATCo was void, and the Concession agreement executed with the latter was likewise void ab initio. xxx’ In consideration of such a beginning then, it would be senseless to reopen the same to determine when the project should have been properly awarded to. The process and all proposals and bids submitted in participation thereof, and not just PIATCo’s, were placed in doubt, and it would be foolhardy for the Government to rely on them again. At the very least, it may be declared that there was a failure of bidding.”
Business, labor and civil society leaders lament that “this declaration effectively exculpates PIATCo and instead places the entire blame on the government for all irregularities that marred the PIATCo contract, making the government liable for damages and condemnation by international arbitration committees in Singapore and Washington.”
