|
The Securities and Exchange Commission (SEC) has dismissed a
complaint filed against giant utility Manila Electric Co. (Meralco)
for allegedly misstating in its books the interests it had collected
from meter deposits.
In a decision, the SEC ruling en banc denied a
petition filed by Leonardo Aurelio appealing its decision to throw
away a previous complaint that he filed against Meralco and its
officials.
Aurelio filed a complaint against Meralco for
alleged misstatement of the company’s 2006 financial statements,
which reversed the accrued interests of P889 million that the
company made from meter deposits of non-residential customers and
bill deposits.
Meralco had transferred the amount from
“Customer’s Deposit” account to “Interests and Other
Income” account.
Because of this apparent switching, Aurelio
called on the SEC to stop the trading of Meralco shares at the
bourse, amend its 2006 financial statements, and impose sanctions on
the company and its officers.
In dismissing the petitioner’s claims against
Meralco, however, the SEC said the utility has extensively disclosed
the background and basis for the reversal of the P889 million.
Meralco said the P889 million represents the excess of the
10-percent interests on the deposits that should have only been 6
percent based on a series of issuances by the Energy Regulatory
Commission (ERC).
The SEC added that it was not within its
jurisdiction to question whether the regulator’s decision is
justified as the energy commission is the agency vested with the
authority to review and approve any changes in the terms of service
of utilities.
“The [SEC] could not have ruled on the
conflicting interpretations by complainant-appellant and respondent-appellee
Meralco of ERC’s issuances without violating the doctrine of
primary jurisdiction,” it said.
|
