Supreme Court intervention in business

Once again the Supreme Court is called upon to resolve an issue which involves business. The full-blown Meralco-GSIS controversy has now turned into a national issue because of allegations of bribery involving the Court of Appeals, with both sides claiming it is the other one which initiated the alleged bribery.

In the eye of the storm are CA Associate Justice Jose Sabio and businessman Francis Roa de Borja with conflicting versions of the alleged bribery attempt, each one trying to overturn the other’s statements. Both have friends and associates who vouch for their integrity. Sabio has received assurances of his integrity from well-respected Constitutionalist Fr. Joaquin Bernas and Dean Cesar Villanueva as well as the faculty and students of the Ateneo Law School, where Sabio is a lecturer and pre-bar reviewer on several subjects.

On the other hand, the 67-year-old De Borja, who went to Ateneo from grade school to high school, is being supported by friends and associates who vouch for his sincerity and straightforwardness, describing him as a man who stands by his friends and simply does what he thinks is right regardless of the consequences. Francis has had numerous business dealings with a lot of big names in the business community, and they, too, have a high regard for the Makati-based businessman.

But more than the bribery allegations and the consequent scandal that is threatening to taint the judiciary, the real issue boils down to the tiff involving Meralco and Winston Garcia,   head of the Government Service Insurance System which has a 22 percent stake in the utility company. Garcia had charged the Lopezes (who own 33 percent of Meralco) of mismanagement and of passing on unconscionable charges to consumers which has resulted in high electricity rates.

On the other hand, the Lopez family claims GSIS is putting the squeeze on Meralco to get back at them because of the Lopez-owned ABS-CBN network which has been critical of the Arroyo government. Things started to blow over when GSIS tried but failed to wrest control of the distribution firm during the May stockbrokers’ meeting through a cease and desist order from the Securities and Exchange Commission. Meralco eventually obtained a temporary restraining order from the Court of Appeals, with the CA’s 8th division recently affirming Meralco’s position that the SEC had no jurisdiction over the issue.

At their en banc session last Thursday, the Court of Appeals decided to elevate the issue of the propriety (or impropriety) of the action of justices involved in the GSIS-Meralco case  as well as the alleged bribery attempt on Associate Justice Sabio. Hopefully, elevating the issue before the Supreme Court will give people an indication of who is right and who is telling the truth. In fact, the SC had assigned the second division to look into the controversy, and perhaps they will come out with a resolution today at the en banc session of the entire 15-man Supreme Court.

Regardless of the outcome of the en banc session, at the end of the day, it will be the consuming public – and that includes not only the poor and the working middle class but down to businessmen whose operations depend a lot on electricity – who will be most affected. While some people laud GSIS chief Garcia’s declared intention of lowering electricity rates in the country, many however are not convinced of the government’s ability to efficiently run the distribution firm.  It can also be recalled that before the Meralco stockholders meeting last May 27, a group of businessmen have already indicated their preference for Meralco to remain a private enterprise – a clear indication that they are wary of any government “takeover” of the firm.

Given the sensitive nature of the issue which has become very complex, I am certain the Supreme Court, with the integrity of the justices especially with Chief Justice Reynato Puno (who is undoubtedly one of the most respected Chief Justices) at the helm – will come out with a fair and just resolution of the issue.

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The launching of the first authoritative and up-to-date book on the country’s telecommunications and information and communications technology (ICT) industry is opportune considering that telecoms and ICT are key drivers of progress and development. Co-authored by former National Telecommunications Commission (NTC) deputy commissioner Kathleen Heceta and current deputy commissioner Jorge Sarmiento, the book provides a comprehensive overview of the country’s ICT and telecoms sectors covering varied topics such as rules and regulations governing the industry as well as stories from the public and end users on how ICT has transformed their lives.

In his foreword, International Telecommunication Union secretary-general Dr. Hamadoun Toure cited the book for being a valuable reference for policy makers, regulators, engineers and end users as it points the way forward for the next generation of ICT in the Philippines. No doubt a progressive regulatory framework on the telecoms industry will be attractive to investors and could drive growth in the ICT sector – to the benefit of Filipinos particularly those living in remote areas in the country.

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