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Friday, May 16, 2008

 

Legislator: Meralco franchise can be recalled


The Manila Electric Co. (Meralco) may lose its franchise, if Congress can prove it violated the law or committed fraud, a lawmaker warned Thursday.

Congress may review Meralco’s franchise in the investigation that the House of Representatives is conducting, Albay Rep. Edcel Lagman, chairman of the influential House appropriations committee, told The Manila Times.

Earlier, Camarines Sur Rep. Luis Villafuerte delivered a privileged speech where he accused Meralco of overcharging its customers and charging them P13 billion for “ghost power deliveries.” He said Meralco paid its sister company, First Gas, P1.08 billion each month for 1,000 megawatts of electricity when that power plant can only supply 300 megawatts.

Lagman said, “The result of the investigation of the House Committee on Energy can be used as a basis to recall their franchise. If they are not complying with the guidelines in their franchise, then it can be recalled.”

It only takes one lawmaker to file a bill to recall Meralco’s franchise, but a thorough study should be done first to determine if there were violations actually committed, he added.

There are three ways to check if Meralco made violations, Lagman explained. These include the ongoing congressional investigation in aid of legislation, or a case may be filed in court. The third way is for the Energy Regulatory Commission to investigate if Meralco is applying the correct rates.

House moves

Despite denials by Winston Garcia, president of the Government Service Insurance System (GSIS), that the government is bent on taking over Meralco, President Gloria Arroyo’s allies in Congress have started their assault against Meralco.

“The Villafuerte exposé was explosive because of its utter simplicity. Nakaabot sa sikmura ng lahat [It has touched everyone]. It’s close, but no cigar for the apologists of Meralco. Buking na sila [They’ve been exposed],” Garcia said.

In his speech, Villafuerte described the “sweetheart deals” involving Lopez companies, such as Meralco and First Gas, as “scandalous, anomalous, immoral and illegal.”

During a Committee on Energy hearing presided by Pampanga Rep. Juan Miguel Arroyo—one of President Arroyo’s two sons in Congress—it was found that besides the system loss charges, Meralco was also collecting hidden charges from its customers for the company’s electricity usage amounting to P500 million annually. Earlier reports said Meralco was charging customers for value-added tax for system loss.

Meralco maintains that it has done nothing illegal, and that the Energy Regulatory Commission has approved all of its charges.
--Jomar Canlas And Sammy Martin

   

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