Setting the record straight
GSIS legal counsel Estrella Elamparo recently denied that GSIS president Winston Garcia “or any member of his family were involved in the Visayas Electric Company (VECO) which holds the franchise to distribute electricity in the Metro Cebu area.”
Industry observers have pointed to us that maybe, Elamparo should take a quick look at the website of Vivant Corp., the holding company of VECO. That website says that Jesus B. Garcia Jr. is Vivant director. And with all due respect, Jesus B. Garcia is definitely “family”. He is the first cousin of the GSIS general manager.
A quick visit to the Vivant and VECO websites also confirms that another Garcia family member is a senior officer of these business entities. He is Jess Anthony Neri Garcia, the eldest son of former Cebu City Mayor Alvin Garcia, younger brother of Sonny. Jess Anthony is therefore Winton’s nephew and elder brother of Raymond Alvin Garcia, former
We understand the haste with which Elamparo had to deny the Garcia family links to VECO. Observers note she must have felt that the Aboitiz family angle is something that the GSIS head needs to steer away from. But why do that? The Aboitiz-Garcia link is well-known and to hide that fact can only put a cloud of doubt in what is otherwise a noble mission embarked on by the GSIS head.
Winston’s cousin, Sonny, who was transportation secretary under the Ramos administration, is known to have counselled the Aboitizes in their shipping business. That cannot be helped. Even before Sonny took the helm of the DOTC, he was already a well-known luminary in the maritime field. Sonny is also known to have helped the Aboitizes significantly in the latter’s reinsurance business in the ‘90s.
As for the Garcia clan link to the Aboitizes, that is for the GSIS head to explain. So far, he has done well in the fight against Meralco. We are sure Winston can handle the Aboitiz issue.
NTC action sought
Why the present National Telecommunications Commission (NTC) leadership has not revoked the broadband wireless access (BWA) frequencies assigned by former NTC chief Abraham Abesamis to Liberty Broadcasting Network Inc. (LBNI) – a company under rehabilitation and which ceased operations even prior to the frequency award – remains a big puzzle.
Records from the NTC and in the hands of the rehabilitation court clearly show that Abesamis awarded the certain BWA frequencies (2540-2545 MHz, 2580-2595 MHz, 2535-2540 MHZ and 2565-2580 MHz) to LBNI “secretly” and contained only in two letters dated June 26 and 28 by Abesamis to company owner Raymund Moreno. An NTC internal memo says that there was no application filed by LBNI for said frequencies.
In August 2005, LBNI filed for rehabilitation before the RTC of Makati. Its petition was approved in 2006, or a year before the frequencies were awarded to it by the NTC. It was only on
LNBI’s creditors are now asking the court to order the NTC to explain why a bankrupt company, with no financial and technical capability, was given valuable frequency assignments, without any regular application being filed and without any notice and hearing. The same question is being asked by other telcos which are lining up for valuable BWA frequencies.
They said Abesamis Engr. Joselito Leynes (the former FMD Chief who appears to have endorsed the questionable frequency assignment) should be made to explain the questionable frequency assignment to LBNI. Also current NTC Commissioner Canobas and Pricilla Demition, the present FMD chief, should be made to explain why the questionable frequency assignment has not yet been revoked so that it can be assigned for the use of more capable telecoms providers.
And now, LBNI creditors, particularly RCBC, are also asking the RTC of Makati (Branch 149) to terminate the rehabilitation proceedings and proceed LBNI’s liquidation due to the transfer of certain LBNI frequencies (700 Mhz) to Smart Broadband, Inc.
The creditors have warned that unless the concerned NTC officials do something, they may be held liable for allowing the transfer of LBNI’s frequency allocations as being in fraud of creditors.
Not so hidden agenda
SB does it again. Security Bank posted superior first quarter 2008 results with an annualized return on equity of 26.6 percent compared to 22 percent at the end of 2007. This, while other bigger banks have been posting declines in their ROEs. Also, it continues to deliver excellent shareholder value with average return on assets of 2.69 percent versus last year’s 2.03 percent. SB’s net income likewise rose 10.3 percent to P835.7 million while other banks have reported lower bottomlines. According to SB president Abet Villarosa, this phenomenal performance is due to initiatives to streamline the business. Credit also goes to the bank’s creative yet prudent world-class management team. No longer hidden. A finance official has said that it would be difficult to lift royalties on our own natural gas since the proceeds are vital to finance Napocor’s fuel requirements. Does this mean that Napocor cannot operate unless it enjoys government subsidies? This is precisely the argument for Epira and the privatization of the energy sector. It is because of Napocor’s enormous debt that we have the EVAT. Filipinos, in short, were made to foot the bill for Napocor’s inefficiencies.
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