HOME PAGE ABOUT US CONTACT US SUBSCRIBE ADVERTISE ARCHIVES
TOP STORIES NATION ECONOMY COMPANIES SHIPPING OPINION PERSPECTIVE LIFE SPORTS BANKING
SEARCH ENGINE
WWWOur Site
Anchored by Jonathan dela Cruz, Salvador Escudero, Boying Remulla, Teddy Boy Locsin and Alvin Capino
Monday to Friday
8:00pm-10:00pm

ARTICLE SERVICES
  • bookmark this page
  • print this article
  • view archive
  •  

    Open access, SMS and Lozada’s ‘fund’

    Word is that the Lopez-led Manila Electric Co. (Meralco) management has enough proxies on top of its 33-percent holdings to thwart any effort of its archcritic, Meralco director and GSIS president Winston Garcia, to engineer any kind of significant overhaul.

    That perception was reinforced by comments made on the ongoing debate over the high electricity rates, especially in the Meralco franchise area, made by both camps on Saturday, which were considered friendlier and constructive for all stakeholders, especially the consumers.

    Some reports quoted Meralco management endorsing President Arroyo’s advisory for all industry players to immediately petition the Energy Regulatory Commission (ERC) to approve the implementation of an “interim open-access” scheme meant to benefit mainly large consumers, i.e., those using 1 megawatt or more a month, to deal directly with the National Power Corp. (Napocor) and/or the independent power producers (IPPs) for their power needs.

    Under the Electric Power Industry Reform Act (Epira), open access can only commence once 70 percent of all Napocor generating units have been privatized to ensure that competition, not accommodation, will prevail in the power market.

    The endorsers, which include members of foreign chambers of commerce, claim that such a requirement should not be used to delay a scheme which, in their view, can reduce distribution and system-loss charges almost overnight.

    They may have a point. After all, it has been shown that the distribution utilities, with loads of help from the ERC, have not been as prudent and sensitive to the public needs as they pass on all kinds of charges to the millions of consumers in their areas.

    But they have to be told that open access, whether interim or permanent, is not enough. It is not even the “cure-all” which the Meralco management seemed to imply when it literally dragged the Chief Executive into another round of public rage by suggesting that if interim open access ensues, she was going to reject all moves to amend the Epira and rid it of its iniquitous provisions.

    That is as opaque and disingenuous a statement as can be, which was denounced by no less than Camarines Sur Rep. Luis Villafuerte, who has been leading the charge to amend the Epira. The Bicol legislator told us the President is well aware of the nine-point plan to reduce power rates, which he unveiled at the House last week, and that the Palace has not abandoned the same.

    The plan includes, among others, revisiting the system-loss and cross- ownership provisions of the law, as well as the taxes and royalties imposed and, of course, the open-access rule.

    In a word, the battle, if we may call it such, over the general call for the reduction of power rates continues and will not end with the Meralco stockholders’ meeting Tuesday even if Garcia gets his wish that another Lopez, Federico “Piki” Lopez, now CEO of the Lopez-owned First Gen which owns the highly profitable IPPs San Lorenzo and Santa Rita, takes over his uncle and current Meralco chairman and CEO, Manolo; and another First Gen veteran, Peter Garrucho, takes over Winston’s archenemy, Meralco president and COO Jesus Francisco.

    So, if Meralco is really concerned with reducing power rates, then it should not stop at open access but go all the way to slay, as it were, the demons, seen or unseen, in the power industry.   

    In the same manner, the combative Mr. Garcia and his proconsumer core, if they can be tagged as such, at the GSIS and elsewhere should focus not just on corporate finagling in Meralco but at the practices of the other power-industry players as well and, of course, the ERC.

    Haranguing Meralco officials, including the soft-spoken interim corporate secretary, Justice Jose Vitug, is par for the course. But to engage others like us in media to a wild-goose chase with that SMS message that Vitug resigned in disgust over the “dirty tricks” of his assistant and Meralco loyalist Anthony Rosete in the handling of proxies for the stockholders’ meeting, does not speak well of his own ways.

    Garcia was already doing well with his exposés of mismanagement at the power company. He does not need this one to promote his message, as well as his proconsumer standing.

    Just hammer on the established facts about the wayward practices and the benefits to the consumers of an amended Epira, Mr. Garcia, and the public will be with you. Stray off course and bring other messages, especially opaque or contrived ones, and you will turn out to be a charlatan, not a crusader. Sayang!

    Lozada’s ‘fund’

    It is well that Sens. Juan Ponce Enrile and Rodolfo Biazon have sounded off the Senate leadership about the need to revisit the status of witness Rodolfo “Jun” Lozada Jr. in view of concerns over funding his and his family’s “keep” and the insinuations of another round of acrimonious wrangling over this embalmed issue called the national broadband network (NBN)/ZTE inquiry.

    Apart from asking for a detailed accounting of the P2 million or so which have been disbursed to defray Lozada’s security and travel expenses, the two solons are now seeking a more involved assessment of the so-called security threat to him and his family.

    That assessment, as well as the value of keeping Lozada indefinitely under Senate custody to shed light on the canceled NBN/ZTE deal, should have been done earlier after Senate blue-ribbon committee chairman Alan Peter Cayetano issued an “interim report” on the months-long inquiry.

    Quite apart from the fact that Lozada has not offered evidence other than collaborative rage over what Jose de Venecia III had earlier issued on this case, his value to the committee and, of course, to the country, has been marginal, at best.

    Yes, we acknowledge his contributions to the lexicon and his graphic denunciations of some acts and personalities, but all these have been far from conclusive proof worthy of a court case or of regime change, as is the wish of some sectors.   

    What Senate President Manny Villar should do is draw lessons from the witness-protection program, if not as practiced in the country, at least in others, which have used the same to truly indict the guilty and enhance the role of genuine whistle blowers.

    In these countries, protected witnesses are urged to provide detailed testimonies which are then duly recorded and counterchecked against other sources, properly debriefed, threats to them and their families correctly assessed and treated as “state secrets.”

    Lozada and almost all other Senate witnesses on this and other sensational cases have not gone through as thorough and proper screening as should be. In a very real sense, they have been offered through media or through some influential sector or at the behest of an inquiring member of the chamber.

    They have been given various and varying degrees of incentives and protection as they wing their way through the inquiries without as much as clear and proper guidelines on how they conduct themselves, what testimonies to offer, how they can be questioned and, yes, how their and their family’s upkeep be funded.

    Just compare the one accorded Lozada and the other whistle blowers who have been frequenting the Senate lounge, from Sandra Cam to Vidal Doble to Madriaga to Boy Mayor and the like, and you will realize that this kind of work cannot and should not be accommodated in a real, honest-to-goodness institutional inquiry, whether criminal, administrative or in aid of legislation.

    In sum, the Senate “witness” initiatives have been long on tokenism and short on proper and regular arrangements. These guys have been subject to the whims and caprices of the committees and the members and open to all kinds of enticements or even blandishments from all sectors.

    This irregular practice has to end. A witness-assessment and -protection scheme hewing closely to those provided by law and the solid practices in place in other countries should be put in place if we are to guard against the misuse of these opportunities for purposes other than the real search for truth and in the best public interest. Tama na.

    OTHER STORIES
    Editorial: Lowering the rates

    Tomorrow, at the end of the annual stockholders’ meeting of the Manila Electric Co. (Meralco), we will know if the Lopez family will still manage the country’s largest power- distribution utility, or if the big block of government shares, led by Government Service Insurance System (GSIS), will prevail.

    read more

    Through the Looking Glass: Proxy wars and pretender wrath

    This one doesn’t have veteran boardroom lawyer Popoy Ricalde in it. That alone indicates it won’t be fought on the merits of performance or anything that pretends to legitimate equity interests. But its pretensions worm deeper where the cistern lies and torpid methane accumulates.

    read more

    Personal Finance: Branding financial planning

    If you are a financial-services practitioner, you will probably agree that this job is not easy. More than a half of the people you will talk to would give you a negative reply, and only a tenth of those you get to talk to will probably buy something that you are offering.

    read more

    Coast-to-Coast: Open access, SMS and Lozada’s ‘fund’

    Word is that the Lopez-led Manila Electric Co. (Meralco) management has enough proxies on top of its 33-percent holdings to thwart any effort of its archcritic, Meralco director and GSIS president Winston Garcia, to engineer any kind of significant overhaul.

    read more

    The Entrepreneur: Why the property sector remains strong

    UNDERSTANDABLY, recent reports about global oil and food crises, as well as the subprime-led slowdown in the United States, have dampened growth forecasts for the Philippines.

    read more

    Reflections from the Mirror: The challenge we face

    The last of the legendary Kennedy brothers is dying. The 76-year-old Sen. Edward “Ted” Kennedy was found to have a malignant brain tumor, sending a shock wave across the political terrain of America.

    read more

    William Pesek: China’s ‘tofu buildings’ raise inflation risks

    ‘Tofu buildings.” That’s what rural Chinese have long called structures thrown up with remarkable speed. They look fine on the outside, but aren’t much sturdier than the bean curd on last night’s dinner table.

    read more