AGN asks PCGG to bar its nominees from ETPI board meet on Aug 10

Australian Gigahertz Network International Pty. Ltd. (AGN) which owns 40 percent of Eastern Telecommunications Philippines Inc., (ETPI), has asked the Presidential Commission on Good Government not to allow its representatives in the ETPI board to participate in the meeting of the telecommunications firm’s board scheduled on Aug. 10.

Andrew Inocencio, AGN legal counsel, appealed to PCGG chairman Camilo Sabio to restrain PCGG nominee-directors Basilio Cruz and Emiliano Jurado from acting or participating in any action that could preempt a court order or judgement on matters under litigation.

AGN, through representative Roger Buckeridge, has filed a civil case against ISM Communications Corp. seeking to stop the transfer of ETPI shares to ISM of former Trade and Industry Secretary Roberto Ongpin, citing a PCGG policy that "recovered ill-gotten wealth should not be offered to former (Marcos) associates." According to AGN, Ongpin is a crony of former President Marcos.

The transfer is also being opposed because it reportedly violates the right of first refusal enshrined in ETPI’s articles of incorporation.

Lawyer Mario Reyes, representing Buckeridge, said the two PCGG directors set the stage for the purchase and eventual control by the Ongpin group of ETPI.

ISM entered into a share swap agreement with Aerocom Investors & Managers Inc. for the latter’s 17.7- percent stake in ETPI. It will issue 6.816 billion new shares to Aerocom in exchange for 4.6 million class A shares of ETPI.

AGN earlier threatened to file criminal charges against the PCGG representatives who voted to replace Buckeridge from the position of chairman in ETPI.

Inocencio said the two PCGG appointed directors are liable under Article 3 (e) of Republic Act 3019 which declares unlawful an act of any government official "giving any private party unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence."

He said the move taken by the PCGG nominees caused undue injury to AGNP and the government and gave unwarranted preference to the group of Ongpin.

AGN bought its shares in ETPI from its long-time foreign shareholder, Cable & Wireless Plc. The two largest investors in the AGN syndicate, owning 70 percent, are Union Resources Ltd., an Australian publicly-listed company, and a venture capital fund managed by Allen & Buckeridge Asset Management Ltd.