Complicating matters

At the last Joint Congressional Power Commission (PowerCom) hearing, Sen. Miriam Defensor-Santiago asked Meralco officials why they have not turned over the business of power distribution if it was that complicated.

The question in a way makes sense, because a long list of complicated problems now goes with running Meralco. What probably irritates those who want to take over it is the fact that the Lopezes simply refuse to give up.

Meralco and the Lopezes are targets not only of a well-coordinated vilification campaign but also of a plot to drive them out of business, if not to send them all to jail.

The Commission on Audit wants a general audit on Meralco’s books upon the request of a private group, although ERC rules require such a request to come only from a government agency.

The ERC and energy department support the COA audit, although ERC’s own rules do not allow a COA general audit (only a rate-related audit is allowed) on a power firm.

When the GSIS-Meralco row reached the Court of Appeals, the Lopezes were dragged into a bribery scandal, although some people have observed that those caught meddling in the case were all appointees of President Arroyo.

Meralco’s woes highlight problems that investors encounter when government functionaries show undue interest in their business.

Many are hoping that the involvement of the Powercom will not further complicate matters for Meralco.

NLRC controversy

Why the National Labor Relations Commission (NLRC) has created a special division headed by a commissioner facing criminal charges has puzzled many.

In 2006, the Presidential Anti Graft Commission (PAGC) recommended the preventive suspension of this commissioner to the Office of the President yesterday based on the recommendation of then Labor Secretary and now Supreme Court associate justice Arturo Brion. This recommendation still has not been acted upon.

This commissioner was nabbed in an entrapment operation conducted by operatives of the National Bureau of Investigation (NBI) in 2006. Said officials, together with two lawyers of the Philippine Overseas Employment Administration (POEA) allegedly demanded P400,000 from an applicant to speed up the processing of her license to operate a recruitment agency in the Philippines.

According to reports, they initially asked for a downpayment of P200,000 so the POEA could start processing the papers. This prompted the applicant to seek assistance from NBI and an entrapment operation was set.

The said NLRC commissioner was arrested after receiving the P200,000. Recovered from the suspects were two pieces of P100 bills that were dusted with fluorescent powder. They posted bail.

Let us hope that the Office of the President immediately act on the matter. After all, the purpose of preventive suspension is to prevent the accused from using his office to tamper with evidence or use his public office to influence the outcome of the case. Giving him his own division at the NLRC is too plain an anomaly.

Another shipping disaster

Sulpicio Lines’ M/V Cotabato Princess recently plowed into 16 concrete piles (newly driven into the seabed) of the Port of Iloilo.The area was part of the new port extension and the cost of damage was initially estimated at P16 million.

Sources say the estimate does not include the costs and losses to be incurred by the contractor and the project proponent, Philippine Ports Authority with the delay in the project’s completion.

The M/V Cotabato Princess was allowed by the Maritime Industry Authority (Marina) last Aug. 5 to once again commence operations albeit for cargo transport only (together with the M/V Princess of the Earth) after a lifting of suspension was signed by Marina deputy administrator Primo Rivera allegedly without prior approval by the Marina board.

Sources add that the lifting of the suspension was signed at a time when then Marina administrator Vicente Suazo, Jr. was in Cebu City .

During a Marina board meeting following the lifting of the suspension, the board members reportedly raised the matter and questioned Suazo why said lifting was issued without any approval from the board.

Suazo then pointed to Rivera as the one who signed the order. In turn, Rivera said that he signed the order upon the instructions of DOTC Undersecretary for Maritime Affairs Elena Bautista who for her part said she only acted upon the instructions of Transportation Secretary Leandro Mendoza.

Bautista claimed the order to lift the suspension was based on Sulpicio’s vessels having passed the audit of Marina inspectors.

However, Marina claims that while said vessels made the Marina audit, the company itself had to comply with its requirements of comprehensive protection and indemnity insurance, training for its officers and crew to meet international ship management standards, and the appointment by Sulpicio of a ship management team to oversea their technical management. These requirements reportedly have not yet been complied with

For comments, e-mail at [email protected]