'Real complainants' to revive folder rap

As President Noynoy Aquino swings around America and Japan this week to entice foreign investors, a major business case pends in the Supreme Court. This is the plea of telecom giant PLDT for reversal of the SC’s new definition of foreign capital in domestic utilities. The case is of particular interest to foreign and Filipino businessmen because it will affect most of the biggest publicly listed companies. Specifically, their foreign stockholders would be forced to divest, and hundreds of billions of capital would flow out of the country.

The SC has announced that it will schedule the PLDT appeal for oral arguments. PLDT chairman Manuel Pangilinan sees in this a chance to present his case. Chief Justice Renato Corona too feels that the SC needs to restudy the matter.

Past and present Constitutions limit foreign ownership in utilities (telecoms, water, transport, etc.) to 40 percent. Statutes refer to the 40 percent as the voting or common shares. But the SC recently ruled that the computation of foreign capital should include non-voting preferred shares. This suddenly puts the PLDT, and dozens of other conglomerates, in violation. PLDT spokesmen say that even its competitor Globe Telecoms would be 63-percent foreign-owned. PLDT shares are traded in New York; Globe, only in Manila.

The Philippine Stock Exchange and the Securities and Exchange Commission have warned of dire economic effects of the SC ruling. Supposedly, not only will existing foreign capital depart, but potential new ones will stay out as well. To be hit aside from utilities are the mining and exploration industries.

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From their actions, two gentlemen are the “genuine complainants” against the P690-million ballot-secrecy folder scam. Lawyer Melchor Magdamo had researched it for the Comelec in April 2010, as special aide to then-chairman Jose Melo. Then-Senator Aquilino Pimentel Jr., the first ever victim of dagdag-bawas, had helped with the legal work and to break the story. Their spadework became basis for formal charges with then-Ombudsman Merceditas Gutierrez in June 2010.

That was the last Pimentel and Magdamo heard of their rap. Contrary to the Constitution, law and procedure, the anti-graft agency never notified them of the actions taken. Contacted instead were unknown parties whom Pimentel and Magdamo never heard of during their sleuthing. Only in the papers did they read last month of the results of what they had thought would be a case of plunder. Three of the Comelec officers they had implicated were found guilty of “simple neglect,” and so merely suspended for six months. Three others were absolved. Worse, they learned in the aftermath, the new Comelec chief had tried to intercede with the new Ombudsman in behalf of the punished officers. To top it all, the Comelec law department head, who had investigated the six, was sacked this month.

That does it for Pimentel and Magdamo. They are to revive the case this week against the Comelec officers. These are Executive Director Jose Tolentino, lawyer Maria Norina Casingal, budget head Martin Niedo (who were absolved), bids and awards chief Maria Lea Alarkon, lawyer Allen Abaya, and general services head Antonio Santella (suspended).

The “genuine complainants” are to implead as well OTC (One-Touch Carbon) Trading single proprietor Willy Kwok Young, and manager Henry Kwok Young, who had proposed the P690-million deal. If not for the public outcry, OTC would have fabricated 1.815 million cardboard folders to cover the ballots as these were being filled out on Election Day in May 2010, for an astounding price of P380 apiece. Folders sell for about a peso in bookstores; the ballot-secrecy versions were to be a little bigger, but become useless the day after.

To be included as well are officials of the Ombudsman: Overall Deputy Orlando Casimiro, Assistant Aleu Amante, investigation director Medwin Dizon, and investigator Marius Fitzgerald Veloso. Allegedly, these persons conspired to lessen the offense from criminal to merely administrative.

Last Monday Magdamo executed a 29-page affidavit recounting the rush proposal, fake bidding, and attempted cover-up of the scam. Attached to it are Comelec en banc resolutions and transcripts that show Tolentino to have gone against the express orders of the commissioners. The affidavit of September 19, 2011, is in addition to three lengthier ones that Magdamo had filed in April and May 2010.

Among the en banc decisions was one in February 2010 to hold in abeyance any action on OTC Trading’s proposal to fabricate the folders. Magdamo alleged that Tolentino disobeyed and proceeded with it as concurrent head of the Project Management Office. The Comelec Planning Office vehemently was opposing the project then.

Among the transcripts was of the en banc session in the same month in which Tolentino “misled” the commissioners to believe that a public bidding was to be conducted. From transcripts of two sessions in March and April 2010, Tolentino also pressed the commissioners to issue the P690-million purchase order. Magdamo had refused to endorse such PO because written at the top of the paper was “by public bidding,” although no such thing was held.

The inventor of the ballot-secrecy folder had complained to the Comelec that OTC stole her intellectual property, Magdamo swore. The inventor said the folder was worth P3.80 each, not a hundred times more at P380.

Tolentino’s job as executive director was to economically manage Comelec projects, Magdamo said. Failure to do this was a violation of the Administrative Code, to say the least.

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Inimitable Willie Nep restages “Macoy to P-Noy — Music and Memories, Fun and Laughter,” one time only, this Saturday, September 24, at the Music Museum, Greenhills, Metro Manila. Call 0918-9054580 for ticket delivery. Or Ticket World, (02) 8915634; Music Museum, (02) 7210635, (0917) 5130909. Reduced prices.

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Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).

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