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MALACAÑANG supports the move of the Government Service
Insurance System (GSIS) to secure the audited financial
statement of the Manila Electric Co. (Meralco), but is
mum on calls for changes in the public utility’s
management, Press Secretary Ignacio Bunye said on
Monday.
Bunye
said in an interview with reporters that the GSIS, which
has a 25-percent stake in Meralco, has every right to
demand an examination of Meralco’s books, which is
provided by law.
Asked
whether the government supports the position of GSIS
president and general manager Winston Garcia that there
must be changes in Meralco’s management, Bunye said that
“the support of the government is not so much on the
change in management; our support is for transparency.”
“We
don’t agree with that [change in management]. We only
agree with the transparency, with the opening of the
books because that’s a right guaranteed to stockholders.
Maybe the GM has his own reasons, but we will support
him as far as the transparency,” Bunye said, adding the
GSIS is “also representing the public interest” in this
regard.
He said
opening Meralco’s books for review by interested
shareholders like the GSIS would show whether Meralco
has been charging its customers fairly as its management
claims, or whether it has been overcharging them.
“Let’s
say that there are systems losses—what is Meralco doing
about this, since its customers have to bear this? There
are reports, subject of course to the examination of the
books, that some items that should not be charged to the
customers are being charged, like income tax....So it is
very important that the books of Meralco are made
available,” Bunye said.
He
said based on the corporation law, stockholders with a
substantial holding such as the GSIS have the right to
question and examine financial books during office
hours.
Meanwhile, the militant group Bagong Alyansang Makabayan
(Bayan) on Monday expressed serious doubts over the
government’s efforts to lower power rates by applying
pressure on the Lopez-owned Meralco.
“The
government’s efforts will eventually fall short of the
desired effect of lowering power rates. There are more
fundamental reforms needed in the power sector and there
are concrete steps that can lower power rates that the
government is not addressing,” Renato Reyes Jr., Bayan
secretary-general, said.
He added
that power rates are high because of the policies of
deregulation and privatization in the energy sector and
the presence of the value-added tax on power, which is
levied on all items in the electricity bill.
“Privatization, deregulation and high taxes on energy
are the reasons power rates are so high. The ‘power
play’ being done by the Arroyo government on Meralco may
score the President some populist pogi points,
but that’s all there is to it. Even the so-called bid of
the Arroyo government to take over Meralco will not
ensure the lowering of power rates, not when the
policies of the Epira [Electric Power Industry Reform
Act] remain,” Reyes said.
Reyes
said his group proposes the immediate lifting of the VAT
on power that will save consumers around 10 percent to
12 percent in their monthly electric bills.
Bunye
brushed aside speculation that Garcia’s actions are
fueled by President Arroyo’s alleged grudge against the
Lopezes, who manage Meralco, noting that the issue of
power rates is a matter of general public interest.
“Ordinary people understand the need for transparency.
You pay your Meralco bills....We are all affected, and
definitely, we are interested to know if the basis for
the charges in our electric bills is just. So this is
something that applies to all the consumers,” he said.
Bunye
said that Malacañang “would prefer not to be
confrontational” on the power-rates issue which is why
it has set in motion efforts to course the matter
through the Energy Regulatory Commission.
“We
don’t need to make enemies where we don’t need to. We
are only after reduced power rates,” he said.
Palace
officials also rejected calls from consumer groups to
reduce the expanded value-added tax (E-VAT) on power
rates as such a move would inflict far worse effects on
the economy.
“That is
a cure that is worse than the disease,” Bunye said.
He said
the full implementation of the E-VAT has strengthened
the country’s macroeconomic fundamentals and has placed
it on the path of a balanced budget after years of
budgetary deficits, and has also improved the country’s
credit rating which has reduced its borrowing cost.
“That
year when we were able to successfully collect the
E-VAT, we had an improved credit standing which reduced
our borrowing cost, and we saved something like P25
billion or P30 billion. That will be reversed if the
E-VAT is reduced or suspended,” Bunye said.
Deputy
Presidential Spokesman Anthony Golez said in a statement
that a reduced E-VAT on power rates, as pushed by
consumer groups, would set back the economic reforms
achieved by the administration since the tax was imposed
a few years ago.
“The
short- and long-term effect of the suspension of E-VAT
will be less beneficial to Filipinos. What the
government should be working on are safety nets targeted
to help the really poor sector,” Golez said. (With P.
Isla) |
