Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

SEC summons Meralco officials

Posted on May 30, 2008

PHILIPPINE NEWS SERVICE — THE Securities and Exchange Commission yesterday ordered the top executives of Manila Electric Co. to explain why they should not be cited for contempt for defying an order to exclude the proxies in the election of its new board Tuesday that were being questioned.

The commission issued its order to Meralco chairman and chief executive Manuel Lopez, president and chief operating officer Jesus Francisco, and acting corporate secretary Anthony Rosete.

The commission ordered the three Meralco officials to submit their response by noon Friday, before a 2 p.m. hearing scheduled on the same day.

“Your non-appearance at the said meeting will constitute a waiver of the right to be heard on the matter,’’ the commission said.

The show-cause order was signed by officer-in-charge Commissioner Jose Enrique Martinez.

Meralco’s chief of regulatory management, Monico Jacob, said the power company would abide by the commission’s order and present its side on Friday.

The commission last Tuesday issued a cease-and-desist order to exclude proxies in favor of the Lopez group, after the Government Service Insurance System, a 25-percent stakeholder, questioned their validity.

But Meralco’s board declared the commission order ‘‘null and void” at a contentious stockholders meeting Tuesday and proceeded to elect a new board.

Rosete said the order was not valid because the order was undated, was signed by only one commissioner, and did not bear the commission’s official seal.

But commission secretary Gerard Lukban said the order was valid, and that most of the commissioners had agreed to issue it. He added that the commission did not have an official seal, and that the lack of a date was ‘‘an oversight.’’

The Philippine Stock Exchange yesterday imposed a one-hour trading halt on Meralco’s shares following the results of the company’s shareholders’ meeting last Tuesday. The order was lifted at 10 a.m.

The Palace yesterday said it supported any legal moves that GSIS president and general manager Winston Garcia might take against Meralco, but added it would not take sides in the management struggle within the largest power distributor.

At his regular weekly press briefing, Executive Secretary Eduardo Ermita said the Palace was hoping the meetings that economic managers were holding with both parties would defuse the controversy and lower power rates.

Garcia yesterday asked the commission to void the board election results.

“Garcia can very well take care of himself as representative of the GSIS in the Meralco board,” Ermita said. “We will support what he does within the law.”

He added: “The stockholders’ meeting is a corporate matter, and Meralco just went on to exercise its right on this. As I stated earlier, they just have to answer to the SEC on the legal aspect. Malacañang does not have to lift a finger on that matter.”

In a press conference yesterday, Garcia said that without the questioned proxies, the GSIS would have taken five board seats, to be occupied by himself, Bernardino Abes, Daisy Arce, Jeremy Parulan and Eusebio Tanco.

The Lopez bloc would only get four board seats, to be occupied by Manuel Lopez, Felipe Alonso, Jesus Francisco and Christian Monsod.

But counting the proxies gave the Lopez group five seats and deprived the government bloc of one, Garcia said.

He urged the SEC to confirm “the true winners” in Tuesday’s board election.

The new 2008 to 2009 board is composed of Lopez, Alfonso, Francisco, Abes, Arce, Garcia, Monsod, Parulan and Cesar Virata. Retired Chief Justice Artemio Panganiban and Vicente Panlilio were elected as independent directors.

Lopez, Alfonso, Francisco, Monsod and Virata were nominated by the management. Abes and Garcia were nominated by the GSIS, while Arce and Parulan were nominated by Philippine First Insurance Co. Inc.

Jacob said the disputed proxy votes in favor of the Lopez Group were counted.

The Lopez Group owns 33.47 percent of Meralco through First Philippine Holdings Corp., while government-owned financial institutions hold 32.32 percent. Other stockholders own 31.10 percent, Meralco’s Employees Stock Purchase Plan, 1.01 percent, and Meralco Pension Fund 2.10 percent.

In the House, administration allies attacked the Lopez family for defying the SEC order.

Also yesterday, Meralco said it would lose P250 million month if the Energy Regulatory Commission approved the government petition that it absorb the lifeline subsidy for poor consumers.

Francisco said it would be unfair for the government to make Meralco absorb that subsidy while other distributors and electric cooperatives did not have to.

“Last year, our return on rate base was 6.9 percent, which means we are not earning a reasonable return,” said Ivanna dela Pena, Meralco vice president for utility economics.

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme