GSIS should reveal their investments

GSIS says it has about a billion dollar worth of exposures in global markets. US$ 300 million went to fund managers of ING, another US$300 million are being managed by Credit Agricole. From these, they gained P 1.2 billion. Question--where's the US$400 million?

Being a government institution, GSIS should feel accountable and reveal where they invested the remaining global funds. Winston Garcia is not managing his own financial institution. He's still a government official. He should be reminded by Gloria that he should be honest and tell the people what happened to all those monies.

In the same vein, financial institutions such as the SSS under Neri and the Pag-Ibig funds should likewise reveal their investments. These people should be reminded that it's not their monies that are at stake here. It is the people's money.

More than Ousting the Lopezes

Stockholders dumped Meralco shares today, bringing down the price to 60 pesos per share. The market remains jittery over the long-term effects of a prolonged Meralco-GSIS row. Winston Garcia's threat against Meralco chairman Manolo Lopez that he'll better relinquish the chairmanship to govermment or else sends a different signal to private enterprise. This row has long-term implications not only to the business sector but even in the political stability of this country.

I am surprised though on the muted reactions of political figures in this fight. In fact, I am not hearing anything from any politician in defense of Meralco. By maintaining silence and positioning themselves as "neutral", these groups are de facto siding with the government against Meralco. Groups should realize that this fight is not about the Lopezes losing control of the firm. No. This is actually a fight of principles. It is a debate between the prevailing global practice of open societies against closed ones. It is a fight between government's creeping totalitarianism against free enterprise.

Whoever controls the distribution of energy controls the country. By allowing Gloria to destroy Meralco, we are actually allowing her to reconsolidate her powerbase, thereby ensuring her continued stay in power. Civil society groups believe that this is just a fight between elites, hence, not fit to intervene.

I see otherwise. I see this as a ploy by Gloria to further strengthen her base and enable her to perpetuate herself in power beyond 2010. We should not be misled by this issue. More than ever, we need to be very vigilant because, let me repeat myself, whoever controls the distribution of electricity controls the very lifeblood of industry in this country. A government running both generation and distribution of power can very well use this as an extortion tool against any business enterprise critical of its governance style.

Groups critical of Arroyo should set aside partisan political or personal animosities against the Lopezes and unite against this government slowly turning more powerful by the day. A more powerful Gloria, as history shows, would further move brazenly against enemies--perceived or otherwise.

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.

Aboitiz and Garcia to benefit from Meralco takeover

Friends and colleague read this: http://tongueinanew.blogspot.com/2008/05/meralco-vs-mafia.html. It hits the nail in the head and reveals a ton of stuff about this government attempt to break Meralco.

As we wrote here, there's really an insidious plan to takeover Meralco, not to lower these electricity rates. No. What government wants is to give this firm to the Aboitiz and the Garcias of Cebu, staunch allies of Madame devil infant, Gloria.

As what a reader commented on Tongueinanew's blog, this is the highest tongpats ever!

Imagine something like this, bigger than the water concessionaire bidding a few years back.

This is probably the reason why there's a multi-million propaganda funds being brandied about by propagandists of Garcia and the Aboitizes. It's a miniscule amount compared to the billions they'll earn from breaking up Meralco.

WE SHOULD STOP GOVERNMENT FROM DOING THIS. YES, BREAK THE HOLD OF THE LOPEZES, BUT GOVERNMENT SHOULD NOT BE ALLOWED TO SELL THE FRANCHISES AND MERALCO NOW! IT SHOULD BE DONE AFTER THE MAY 2010 ELECTIONS, NOT NOW!

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.