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Officials of the Manila Electric Co. (Meralco) could be cited for
contempt if they disregard the restraining order issued by the
Securities and Exchange Commission (SEC), senators said Tuesday.
The restraining order was issued while the
Meralco stockholders were meeting, primarily to decide whether the
Lopez Group was to retain management of the utility. Winston Garcia,
president of the Government Service Insurance System (GSIS), wants
the Lopezes out, claiming they are making Meralco a milking cow to
the detriment of electricity consumers. The Lopez Group denies any
wrongdoing and blames government surcharges for the high rates.
As Lopez and GSIS went on trading barbs,
Senators Aquilino Pimentel Jr., Miriam Defensor-Santiago and Juan
Ponce Enrile pointed out that the SEC has quasi-judicial functions.
“The power to issue a TRO carries with it the
power to cite in contempt those who disregard the order,” said
Santiago, a former regional trial court judge. She is also
co-chairman of the Joint Congressional Power Commission (PowerCom)
that is looking into the causes of the high power rates in the
Philippines.
They said it is possible for Tuesday’s
stockholders’ meeting to be declared null and void for ignoring
the SEC restraining order.
Santiago clarified that as power commission
co-chairman, she viewed the Meralco meeting as a mere battle for
control of the giant utility firm.
“We at the PowerCom are not interested in who
would control or own Meralco,” she added. “We are merely
interested in protecting the interests of the consumers and the
proper implementation of EPIRA,” she said, referring to the
Electric Power Industry Reform Act.
Palace position
Deputy Spokesman Lorelei Fajardo said Malacańang
hopes the issues attending to the election of Meralco officers will
be consummated within the bounds of law and in the greatest interest
of the public.
“While we maintain that GSIS has every right
to assert their claims or position, we however leave the election of
its board to the stockholders since the matter is a private matter
better resolved by its members and owners,” she said. “We,
however, appeal to all concerned to exercise fair play and prudence
as they elect their new board members.”
Garcia hails SEC
Garcia promptly hailed the SEC order saying the
move would protect the public.
“Meralco were trying to put in illegal
proxies,” he said in a statement also released Tuesday. “It’s
up to the SEC to determine how many. There were certain regulatory
provisions that they have to follow that were not followed. We will
let the SEC assume jurisdiction over the conduct of the stockholders
meeting. They will be stepping in to protect the public.”
A proxy is a written authorization given by a
shareholder for someone else, usually management, to cast his vote
at a shareholders’ meeting or at another time, the statement
explained.
The order and Garcia’s protest
notwithstanding, the election of board members pushed through and
votes were being counted as of press time.
-- Efren L. Danao and Angelo S. Samonte
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