Press Release
May 8, 2008

Incompetent Political Appointees Cannot Run Meralco

Senator Rodolfo G Biazon today warned that care must be taken on steps to effect a change in the control and management of Meralco.

"The government seems to be deploying all powers and resources to effect government control over this utility company."

"This move is seemingly being put into motion by mustering the necessary votes through the use of government stocks and proxies from the independent stock holders."

"If government succeeds to effect government control and management of the company we will witness a parade of incompetent political appointees who will be coming one after another depending on the direction of the political winds, " Biazon assessed.

"If this happens, then there is danger that this utility company could go under. If this occurs, it may not only be the interest of the general public being served by MERALCO that will be jeopardized, but may include the losses to be suffered by government corporations owning stocks in MERALCO such as the GSIS that would also be put into danger."

The Chairman of the Senate Committee on National Defense and Security cited, "We have to remember the disaster suffered by the AFP - RSBS through the huge losses of its investments over three decades that until now it cannot recover. The AFP-RSBS which is supposed to build up the fund for the pensions of soldiers can never attain that goal after their massive losses in investments."

"If the GSIS has this kind of investment in MERALCO, it would suffer the same if MERALCO will be government controlled and managed."

"The government control and management of corporations do not register competence but rather are marked by manifested mismanagement such as NAPOCOR which is mired in debt and is only subsisting on subsidies in the form of government guaranteed loans." "The government somehow is weakly denying that they are moving towards a government takeover of the company. However, no less than Executive Secretary Eduardo Ermita is hinting that the government can run MERALCO."

"I therefore say that caution should be taken in dealing with the issue of this utility company, " Biazon concluded.

News Latest News Feed