"I am not in favor of the takeover of utilities. I think it would be best for government to put more focus on giving efficient social services than engage in any form of takeover," Teves told reporters at the sideline of the 31st Philippine Business Conference and Exposition.
Teves said the proposed takeover will be inconsistent with the government’s thrust to privatize its assets.
"As a matter of principle, the government is trying to move out from where the private sector can come in. That is why we are enhancing our privatization efforts," Teves said.
According to the finance chief, the proposed takeover of these vital utilities entails significant repercussions.
"Taking over has repercussions. We should look at financial aspects. What will be the results of this move. From my little information about doing business, I would rather propose government to focus on addressing social needs," he said.
Teves’ statement was in reaction to Executive Order (EO) 467 apparently being drafted by the Department of Justice (DOJ) which will allow President Arroyo the power to take over private enterprises engaged in vital services to the public such as airports and transportation facilities, power and oil plants and media entities for a certain period.
The EO will apparently allow government takeover of these vital installations should the country need help in coping with the global oil crisis.
At present, the government controls the Philippine National Oil Co., National Power Corp. and National Transmission Corp., the biggest oil and power utilities in the country.
The government also has a stake in Petron Corp., an industry leader in the oil industry and Manila Electric Co., the country’s biggest power distribution firm.
It is believed that the implementation of the expanded value-added tax (EVAT) anytime soon will push further the prices of oil products and electricity.