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Tuesday, May 20, 2008

 

EAST WEST
By Julius F. Fortuna
Meralco-Palace dialogue


As we write this column, President Arroyo is set to meet with Mr. Manolo Lopez, chairman of Meralco, and maybe Mr. Oscar Lopez, too, the patriarch of the family that controls Meralco. This is an extraordinary meeting, involving the head of the Republic and one of the political families in the country.

We hope the Panglao conference will end the imbroglio over electricity prices and start amicable relations. We dread to think that the relationship between the government and the Lopezes today will approximate its pre-martial law precedent.

I am no longer sure who started the fight which has now involved the use of advertisements. As we mull over the events of the past two weeks, the problem seemed to have begun with an innocuous statement of the President about the need to lower electricity prices. But now, the issue has become political, with the spread of slogans like “Ibaba ang kuryente, suportahan ang Presidente.”

Of course, as sovereign, she could not be faulted when she responds to popular demands to lower electricity and energy cost. She had opted to ask entrepreneurs to contribute collectively to lower energy cost—specially since the commodity is becoming too expensive.

But succeeding reportage has brought collateral damage to the Lopez family, the owners of Meralco. The media blitz against the Lopezes seems to have succeeded, specially that part where the firm was alleged to have passed on unverified costs to consumers.

That is happening despite their ownership of a radio and TV network whose presence could have made the difference in the media war. But the Lopezes have opted to wage a gentleman’s war that does not repeat the activist role of the ABS-CBN in pre-martial law days.

Besides the populist agenda of the President to decrease the prices of oil and electricity, we must try to understand that some vested interests are salivating to take control of Meralco. Could the Aboitiz family, backed by allied interests based in Luzon, be interested in getting Meralco from the Lopezes?

And on this point, it is necessary to determine the intentions of Mr. Winston Garcia, the president and general manager of the Government Service and Insurance System (GSIS), who sits in the Meralco board. Mr. Garcia seems to be the vanguard in the assault against Meralco. If Garcia can show that his proposals on Meralco do not carry a hidden agenda, then he deserves the accolade of the stockholders.

But if he is found to be fronting for a family that is heavily involved in the power distribution in Cebu and other parts of the south, then he should be censured by the GSIS members. We do not wish to prejudge Mr. Garcia, but he should come clean in the light of speculations that he is just using the members of the GSIS to front for Cebu-based companies. A categorical statement from him before the meeting that he is doing this independently would be reassuring to everyone.

There is a proposal with reference to the franchise area now being covered by Meralco. The proposal, aired in kapihans and press releases, is for the franchise area to be divided into two—one for Meralco and other for a still unidentified franchise holder. Does this other franchise holder mean the Aboitiz Family? This is a valid question, I think.

Brief notes

Mr. Hermogenes Esperon, the former Chief of Staff of the AFP, was appointed on Sunday as peace adviser of the President. The President’s aides believe that oftentimes the best negotiator is somebody who comes from the battlefield. They cite the example of former President Fidel V. Ramos who has forged peace pacts with several insurgent groups. On the other hand, the regime of Mrs. Corazon Aquino was a failure in the peace process. Her attempt to create “peace zones” did not move out of first base. When Mr. Jesus Dureza assumes his new post, he would be both press secretary and spokesperson of the President. I had a chance to meet Mr. Dureza in the 1992 peace negotiations with the NDF in Amsterdam. He had a good grasp of issues in the armistice . . . Congressman Eleandro Budooy Madrona is refilling his bill to transform the Romblon State College into a university. Madrona told me the other night that hs ie approaching Senator Aquilino Pimentel for help when the bill goes to the Senate. Madrona’s man argument is that as a poor province, Romblon needs a university to equalize the development thrust of other provinces. Right now, the Romblon school already serves portions of Panay and Mindoro. . . .Norway is keen about restarting the peace negotiations between the National Democratic Front and the government. Unlike its previous posture, the NDF is now open to renewed talks . . . Incidentally, the peace negotiations in the south is under review because of the change in facilitator. Libya has replaced Malaysia as the go-between. . . .

   
 

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