The Meralco Gambit

Let's set aside our partisan thoughts about the Lopezes and pause for a while and think about the repercussions of today's Meralco stockholder's meeting.

True enough, as what we wrote in the Filipinovoices.com, Garcia's ploy of using proxies backfired. The Lopezes mustered more than the number of proxies that Garcia was able to generate. Realizing this a day earlier, Garcia filed a complaint with the Securities and Exchange Commission (SEC). It was, however, too late in the game. Garcia was distracted by numerous media inquiries that he failed to do his assignment.

Those scenes we saw on TV Patrol and over at ANC shows you graphically how government interference could backfire and lead to a real mess. That scene showing Garcia standing up and shouting at all those stockholders show you how a member of Gloria's mafia gang thinks about himself as an overlord of this country.

Surely, the ruckus created by the government in a private entreprise such as Meralco could dampen investor confidence in the independence and integrity of the local business community. Those scenes of confusion, of chaos, and of disorder shows one how messy a situation would become if government interferes in a legitimate business operation. True, the Lopezes could be profitting more than it can legally chew. True, the Lopezes could be mismanaging Meralco and charging us exorbitant fees. And true, the Lopezes could be entering into those sweetheart deals that impacts on the rates they're charging us.

Yet, the cost of dislodging this aristocrat from their crown jewel is more expensive than its intended result. The intended result is a lowered electricity rate, right? But, if done in an expensive gambit like this could do more harm than good. Imagine these scenes being repeated in other countries' television, what would foreign investors think about us? How many billions of dollars' worth of investment did we lose? How many billions more did we lose in tourism? Quite considerable if I may be asked.

Government's continued harassment and intimidation tactics against the Lopezes set a very dangerous precedent. It shows how this government is slowly turning into a rapacious corporate raider and destroyer of enterprise. It shows that government is using the people's money for corporate raids which will not in any way, benefit the suffering Filipino People.

This gambit of Gloria backfired. First, it showed how powerful the Lopezes are compared with the Garcias, the Aboitizes, the Alcantaras, and the Arroyos of this land. Second, it showed how teethless the SEC is. And third, it shows how inept and foolish government becomes when the people allow it to continually perpetuate its proto-dictatorial powers especially on businesses.

I hate to say it, but this gambit of Garcia could further erode the people's confidence and could be used to justify extra-constitutional means to dislodge this evil regime from the face of the Motherland.

Business and civil society should unite and show Gloria the true source of power. Let everyone unite behind the movement for change and throw this evil regime out. Then, after throwing them out and exiling them to China, then, let's resume this fight against the Lopezes. By then, the entire nation would probably rally behind us.

Double Talk Amidst Societal Chaos

Peace double talk

Former AFP Chief of Staff Gen. Hermogenes Esperon is now Gloria's chief peace negotiator, a few days after his retirement. I don't know what came over Gloria but why did she retain Esperon? His tenure as AFP C-S is quite turbulent. Was he retained solely for his knack at creating destabilization or for his prowess in electioneering? Probably both.

Esperon's appointment speaks volumes on the true peace plan of GMA. Esperon is the least person to be given the powers to talk peace on behalf of government. Everyone knows his true nature--that of a lapdog. He's largely credited for plunging this country into total chaos because of the caper he did in Mindanao during the 2004 elections.

Power play

Amado Doronilla says nothing will come out of Malacanang's power play against the Lopezes. Over at ABS-CBN, the Lopezes are still defiant, vowing to survive this latest onslaught while sending their president to tomorrow's Cabinet meeting over at Panglao Island in Bohol. Will there be a blood compact in the name of big bucks there? Or will these two camps lunge at each other's throats 7 days from now? Knowing how haughty the Lopezes are, chances are they will not bulge against the Arroyos. Or would they?

Callousness

The Arroyo administration admitted meeting the ZTE officials over at Shenzhen. For meeting Arroyos, the gods punished the Chinese with a devastating earthquake, killing more than 20,000 people. Even abroad, Gloria is creating chaos.

Transport Groups double talked

Lastly, transport groups raised a howl after the DOTC withdrew an order from the LTFRB to raise transport fees. This is double talk, says these groups and threatened the government of another transport holiday. Well, I hope they do it this time. Otherwise, will just laugh at them.

Garcia's Dream

Now, the cat is out of the bag.

Sensing no public outrage or opposition to government's plan, GSIS President Winston Garcia told the Inquirer that GSIS plans to break up the Meralco concessionaire franchise into two or more sub-franchises. He says it worked before, when government divided Metro Manila into two franchises. Why will it not work now?

However, here's the catch which would explain why Garcia wants to break Meralco free from the Lopezes--it's not good, says Garcia, that so much wealth has been concentrated in the hands of just one family. He says, everybody should earn from Meralco's franchise.

Well said Winston. So, it's not government who'll manage Meralco--it's still the private sector. Question--will the sale of Meralco be above-board? Being a lucrative one, so many predators will definitely ask for their share of the pot?

Winston's dream is commendable provided that the bidding for the sub-franchises will be above-board.

After Meralco, what now?

Is government planning to break the oil industry since this sector is also being blamed for inflation due to high gas prices? Is government also planning to break the rice/food trading industry since food prices are abnormally high also?

Meralco takeover a play of words?

Executive secretary Eduardo Ermita just denied a purported palace plan to takeover Meralco. Ermita told journalists in a media forum that, though the Palace has the numbers to force a takeover, he denies that they intend to dislodge the Lopez Group from the power distribution firm. Ermita said they're just forcing Meralco to reveal and "open its books for scrutiny" so that Meralco will be forced to lower its electricity distribution rates.

This is a stark departure from the "war-like" stance of Gloria when the little dictator faced a group of businessmen a few days back. Could this be the result of what GSIS President Winston Garcia revealed during Ricky Carandang's show "News on 8" over ANC this morning?

Garcia told Ricky that he has been in contact with the Lopezes and he assured Ricky and the public that "there'll be no fireworks" come May 27.

However, if you analyze what Garcia told Ricky and what Ermita told the palace media, there seems to be a stark difference.

Garcia wants a change in the management of Meralco. While Ermita says all of these noise is just "pressure" from the palace to lower electricity rates.

Ermita knows that you can't just "shout" at the Lopezes to get their attention. No. They've been entrenched already and so callous and so haughty enough that they'll not bulge in their seats even if your voice turns hoarse. Garcia knows this. That's why he's targetting a management change, not a company takeover.

I think Garcia is telling the truth that government does not intend a corporate raid. What is certain though is government is eyeing a management change which is an under-handed tactic to effectively control the firm.

What's certain is this---government has achieved what it wants when it played the takeover card. I mean, it exposed how vulnerable the hold of the Lopezes is in Meralco. It remains to be seen though if this thing will lead to what Ermita says as a lowered electricity rate.

Probably, Meralco chairman Lopez is correct. Garcia is just shaking Meralco down to probably prop it for a ripe picking in the future, not now when the issue is still hot. Garcia is creating this fuzz to force a diminution of Meralco stock. That way, investors can still buy in and eventually dilute Lopez stocks more.

Arroyo's Power Play in Meralco--worst than the cure

Some would probably laud Mrs. Arroyo for bringing it on with the Lopezes. In the case of Meralco, Arroyo's "crusade" against Meralco was predicated on (as her propagandists want us to believe) protecting the consumer against high costs of electricity. This time, however, it's different. Mrs. Arroyo and her gang of misfits are flirting with the media to justify a possible corporate takeover come May 27.

Some of my media colleagues, which include Manila times columnist Julius Fortuna, agrees with what Arroyo is doing right now. She's reportedly fighting what others say, is a megalith. The Lopez family has been in control of Meralco since 1986 and what Arroyo is doing is breaking the hold this aristocrat. This could be the start of a campaign to get rid of aristocrats such as the Lopezes.

Though I may laud government for doing this, I suspect this to be part of a greater, more sinister plot connected with charter change. Why?

First, the timing. It's just a month away from June, the possible month where government is expected to push real hard on charter change. Government needs millions, if not billions of lobby money just to see this thru. Question--why attack Meralco now when Arroyo has been in power for 7 years? Why now, when its just 2 years away from 2010 and just a month before chacha?

Second, the intention. Why attack Meralco now when there's a food crisis and a continuing probe on the ZTE and the Spratlys issue. Look, the public has already forgotten the Spratlys issue when its one of the most important legislation the Philippines should pass this year since the UN already gave us a deadline in 2009.

Third, the chosen mode of attack. Government wants a takeover. They're not resolving the issue of high prices through the Energy Regulatory Board (ERB). No. Government is using the issue as a justification for a takeover. Macapagal and Marcos failed to takeover Meralco during their terms. Arroyo is hopeful that she'll accomplish what his father failed to do during his time as president. Why?

Because a takeover of Meralco means billions of pesos to the Arroyos. Government propagandists say the high prices is directly a result of the "mismanagement" of the Lopezes. Maybe its true. Or maybe its not. But, will government control of Meralco solve this "management issue"? No.

Government is the worst administrator, the worst possible alternative to the Lopezes. What's government's plan for Meralco after ousting the Lopezes? Probably they'll sell the electricity distribution firm to the Chinese, as what they tried to do with our telecommunications and IT industries? Or maybe, just maybe, they'll use it as a milking cow, just like they did with RPN 9 and IBC 13?

TRUE, forcing Meralco to lower electricity charges is the most logical thing to do, given the high inflation of 8.6% and the other attendant problems being faced by the Pinoy right now.

BUT, if the solution of government is worst than the problem, then, maybe those who agreed on this plan should rethink their position and revisit history. History has shown that this administration is the most corrupt, the most greedy, the most brazen, the foremost violator of human rights and the most vindictive. If government takes hold of Meralco, they will not only have electricity but a REAL POWER TO COERCE OTHER COMPANIES to kowtow to their wishes.

Let me make myself VERY CLEAR--I am not a stooge of Meralco. In fact, I was among those who rallied last 2003 against the power firm. It's just that a government takeover of Arroyo's gang is a DANGEROUS PRECEDENT which could cost this country billions of pesos more than the 24 billion that the Lopezes reportedly earned from us since 2003.