How Martin became a banker

SOME people continue to wonder how Leyte Rep. Ferdinand Martin G. Romualdez could afford to treat the presidentita and her party of some 30-odd people at Le Cirque, one of the most expensive restaurants in New York. (Although his staff maintains it was his brother Daniel who did so. On the other hand, I've been told it is Martin who is the "galante" bet. the two.)

Remember that Rep. Romualdez' father is former Amb. Kokoy Romualdez, younger brother of former First Lady Imelda Romualdez Marcos, and a beneficiary of some largesse from her family's good old days in Malacañang esp. via the Meralco Foundation, among others. It is through the family's supposed ownership of shares in the old PCIBank that allowed Martin, a lawyer, to eventually become chairman, then vice-chairman of Equitable-PCIB (merger of PCIB w/ Equitable Bank). (Btw, those PCIB shares that were sequestered by the PCGG from the Romualdez family (via ownership of Trans Middle East Equities) were also being claimed by the Lopez family.)

Curiously, graft cases vs. the elder Romualdez have been dismissed, the latest of w/c was just in May, 2009, while the PCGG has entered into compromise agreements with him re: his firms. Also, Martin has yet to be charged for unilaterally w/drawing some P138 million in cash from PCIB back in 2005, at the time he was chair of the bank. Can you guys think of better reasons why Martin and his family are such ardent supporters of the presidentita and have a need to constantly butter her up?

Meanwhile, here are the statements of assets and liabilities of Rep. Romualdez for 2008 and 2007, as gathered by the GMA News TV research team. To his credit, at least he bothers to detail his stock investments unlike his big boss in Malacañang.

SAL 2008
Rep. Martin Romualdez's SAL 2008

SAL 2007
Rep. Martin Romualdez's SAL 2007

My conspiracy theory on the Meralco takeover issue

OKAY, so Ms. RP and I were debating yesterday about the Meralco stockholders' issue. For reasons of her own, she was siding with Fatty Winston of the GSIS while I was technically siding with Lolo Manolo. (I mean why entrust an important company like Meralco to the devil you don't know right? I'll stick with the devil I know.)

Anyhoo, our discussion basically revolved around the legality of the cease-and-desist order issued by the Securities and Exchange Commission to put the Meralco stockholders' meeting under the agency's jurisdiction. Ms. RP believes Meralco should have respected the legal document.

But I said the Lopezes were correct in going ahead with the counting of all proxy votes. In the first place, their point was to stay in control of management, so damn the torpedoes man! Count those proxies and bahala na si Batman. They can deal with the SEC later and sue the agency if need be for interfering in the meeting. That was a brilliant legal strategy, if I say so myself. That way, no matter how long the case drags out at the SEC or in court, the Lopezes will still be in power. If they had recognized the CDO, obviously they would have lost their company to the GSIS goon.

There were many questions raised about that SEC CDO. Why was it not dated? Why was there no docket number? Why was there no stamp/seal of the office? Why did only one commissioner (Jesus Martinez) sign the CDO?

To the lack of a date, the SEC spokesman explained to ANC that it was an "oversight." I mean duh? The spokesman added that the agency really has no dry seal of its logo. Wha? And commissioner Martinez signed the CDO on behalf of all the commissioners? Uhm...

That got me thinking...I don't think these SEC commissioners are idiots who would take a legal document like a CDO for granted. They have a battery of lawyers over there so something as simple as putting a date on a document and putting a docket number is SOP? How could this be an oversight?

An agency without a dry seal of its logo, and this a regulatory agency might I add, is just plain wooky! I just don't buy that. Mura lang magpagawa ng dry seal stamp sa Recto noh?!

Then only one commissioner signing the CDO? The SEC commissioners act as a collegial body and should have met and investigated first Fatty Winston's request that 1.9 million proxy votes of the Lopezes be disqualified, before issuing a CDO. There was no evidence that there was even a meeting.

What's more, check out these relevant paragraphs of the Securities Regulation Code of 2000:

"SEC 5.2.of the SRC: The Commission’s jurisdiction over all cases enumerated under Section 5 of Presidential Decree No. 902-A is hereby transferred to the Courts of general jurisdiction or the appropriate Regional Trial Court: Provided, that the Supreme Court in the exercise of its authority may designate the Regional Trial Court branches that shall exercise jurisdiction over these cases."

and Presidential Decree 902-A

"SEC. 5 of PD 902-A: In addition to the regulatory and adjudicative functions of the Securities and Exchange Commission over corporations, partnerships and other forms of associations registered with it as expressly granted under existing laws and decrees, it shall have original and exclusive jurisdiction to hear and decide cases involving.

(a) Devices or schemes employed by or any acts, of the board of directors, business associates, its officers or partnership, amounting to fraud and misrepresentation which may be detrimental to the interest of the public and/or of the stockholder, partners, members of associations or organizations registered with the Commission;

(b) Controversies arising out of intra-corporate or partnership relations, between and among stockholders, members, or associates; between any or all of them and the corporation, partnership or association of which they are stockholders, members or associates, respectively; and between such corporation, partnership or association and the state insofar as it concerns their individual franchise or right to exist as such entity; and

(c) Controversies in the election or appointments of directors, trustees, officers or managers of such corporations, partnerships or associations."

SO my brilliant theory is, the SEC commissioners were probably badgered by Fatty Winston into issuing the CDO (which doesn't look beneath him with the way he arrogantly carries himself), so the commissioners, not wanting to get caught in this mess, deliberately issued an infirm document to give the Lopezes enough legroom to respond appropriately to it.

The SEC Commissioners know their place, know the law, and know their functions. These are not stupid people. They know the agency can no longer handle intra-corporate disputes, but probably not having any way out, were forced to issue a CDO anyway which everyone says is a first in Philippine SEC and corporate history. Not any other time in history, we are told, has the SEC interfered in a stockholders meeting right before said meeting was to be held.

So there. That's my conspiracy theory. If it is true, then bravo to Martinez and company for thinking up this brilliant strategy. Anyhoo, let's see how the corporate drama plays out today at the SEC.

The GSIS Monster and a Seair special

BEEN feeling really bleah since Sunday evening but I won't bore you with the details. Suffice to say my brain has lost some matter and so I shall be making lazy posts today. Seeing GSIS president Winston Garcia's pigface on TV didn't help; it just made me feel even worse as I tried to recuperate while watching TV. (I appreciate the objectivity of ANC, and Maria Ressa's crew should really be commended for covering all sides of the Meralco takeover issue very well, but perhaps that was just a tad too long a spot for Winston's blathering in his presscon, much too long. I mean, really. Ick!)

What's up with Winston anyway? Hasn't he made enough trouble over at the GSIS, using up members' monies to buy art pieces, delaying members' medical reimbursements (I should know, my Dad was one of them), and making it difficult for members to take out loans? Now he wants to take over Meralco, too?! Hey, I'm not happy w/ my Meralco bill either but having the government take over this company is just going to make things worse. Since when has government been efficient?

Buti nga na-heckle si taba kanina sa Meralco stockholders' meeting! And he talks about Meralco's arrogance? Who's been acting like a spoiled brat over this issue anyway? I'm pretty sure he threatened the SEC commissioners their jobs that's why they issued that cease-and-desist order (a first time in Philippine corporate history, mind you!) for the stockholders meeting this morning. (Bravo for the SEC though because I think the commissioners deliberately fudged the order so it could be forever questioned.)

Winston should go back to Cebu where he belongs.

UPDATE: Lopezes retain control of Meralco (Read it here)

* * *

Anyhoo, I just got this email from Lino Zapanta, president of Southeast Asian Airlines (Seair), and he has good news for all you travelers out there:

Dear colleagues,

The airline bargain season is upon us. This is the time to take advantage of truly budget flying to your fantasized leisure destinations like Boracay, Busuanga, Baler and Daet from Manila; Busuanga and Boracay from Clark, and from Caticlan to Busuanga. For this period, starting June 2 we're selling these routes for a song, a real low, all-in, no hidden charges, roundtrip price per passenger of:

P2,999

for flying starting June 16 or any day up to mid October. Seats are quite limited so the sooner you book the better. Take the whole family. Prices are never like this in SEAIR, the airline that operates the fastest flights to your favorite leisure destinations such as Boracay and Busuanga.

Lino Zapanta
SEAIR P&CEO

Wow! I like!

Let the low-season travel fun begin!

Does anyone see a pattern here?

IN an attempt to boost her sagging popularity and credibility among the public, the Presidentita and her henchmen are trying to take on issues that would seemingly reinvent her as a heroine and savior of the country.

First she goes to the Department of Justice five times in a row just to see how cases against so-called rice hoarders/smugglers are coming along.

Second, she has her incompetents at the Ombudsman's office regurgitate a six-year-old corruption case against her former justice secretary Hernani Perez, his ailing wife, Rosario, and businessman Ernest Escaler.

Third, she has pushed her GSIS juggernaut Winston Garcia to take on the Lopezes so government can take over Meralco.

Fourth, she now wants telecommunications companies not to charge for text messages.

What's next? Will she now tell the banks not to charge fees for using their ATMs?

All these are desperate measures to shore up confidence in her flagging presidency. If the presidentita thinks that by coming to our defense in populist issues like these will make us like her better, she is sadly mistaken. As usual, her idiot brigade in Malacañang, who sit in their airconditioned offices all day, and who travel in style by land, sea, or air, anywhere they go, are so out of touch with reality. They don't know us really and what we think, and so they keep feeding their Madam the wrong ideas and concepts to help reinvent her image, which has been drubbed in the mud ever since the Hello Garci, the ZTE-NBN scandal, etc.

The Presidentita's makeover program will all be for naught, because she lacks the values that will make all of these desperate measures credible...honesty and humility. No one believes her because she has never been sincere in her intentions and motives.

I wonder, when she was thinking of grabbing Malacañang from Erap...did she actually want to do it because she wanted to change the country and improve our lives? Or did she just want to become President? Period.

Maybe it's about time the Presidentita thinks of the legacy she wants to leave behind. Because the way things have been going lately, I don't think History is going to be kind to her.

* * * *
NOW here comes the JDV threatening to spill the beans on what really transpired in the ZTE-NBN shenanigan. Isa ka pa! Here's another political opportunist trying to take advantage of an issue that he should have spoken on before, when the Senate hearings were at its peak. Why come out just now? Why not before when his own son had stuck his neck out and testified about the deal?

Kasi nawala na sa limelight so gusto na namang pumorma! Kesho the information he has may lead to the "fall of the government," etc. etc. Pwede ba?! This JDV and Manay Gina make me sick!

Gov't takeover na naman?!

SO it's back to '70s are we when private companies were nationalized by President Marcos and taken over by the government? One of these companies were ABS-CBN, the broadcasting arm of the Lopez Group.

When Corazon Aquino came into power and became President of the country in 1986, her government immediately took itself out of business and returned most private companies back to their owners, ABS-CBN to the Lopezes included. As many academic studies have shown, government in business is simply, bad business. Most of these government companies are non-performing and inefficiently run. To this day, there are many government assets that are being privatized albeit ever so slowly, but because of the way most of these companies have been operating, they have become virtually unpalatable to investors.

Now comes 2008 an it must be deja vu all over for the Lopezes as President Arroyo and her minions try to take over Meralco, the largest power distributor in the country. Coincidentally (or coaccidentally?) just when news of the planned government takeover spread, a two-hour power outage hit several parts of Quezon City last night, including my village. While the cause was traced to "line trouble", as usual the conspiracy theorist in me can't help but think some sinister motive behind the blackout. Okay lang sana kung ginawa sa Malacañang noh?

Seriously, we all hate our high electric bills that's for sure. And especially this summer, my own power bill has gone up by P2,000 primarily due to the regular use of our aircons. I'm not blaming Meralco though. I'm blaming the presidentita because of her government's inability to really implement reforms in the power sector.

Like, for years, the public can have access to lower electricity costs if only we are able to tap the power generated by the Sta. Rita and San Lorenzo gas plants in Batangas. But that plant's output, which is sourced from the Malampaya gas field in Palawan, is not being utilized properly. Why can't Napocor buy more of these gas plants' power output? Because they are owned by the Lopezes as well?

Not only that, the Electric Power Industry Reform Act of 2001 has yet to be fully implemented. Napocor has yet to privatize many of its power plants and assets which account for about 70 percent of the electric generating capacity.

Also, the costs of crude is going about in the world market hitting over $100 per barrel. This pushes up local power costs as well. So why doesn't the government temporarily remove the tax on imported crude, as well as the sales tax on systems energy loss? I say temporarily because of course, I am aware that the goverment needs to boost its revenues (bec. it cannot stem the tide of corruption in revenue-collecting agencies), but while the economy and the public are struggling from the high costs of power, it is the government's responsibility to give us temporary relief.

Taking over Meralco is another greedy "hare"-brained (utak kuneho) scheme of the presidentita to get back at her detractors, most especially the Lopez Group whose ABS-CBN Broadcasting Corp. is not too sweet on her.

But just look at what happened when she forced her way into the NAIA terminal 3? Government took over the terminal which wasn't built by taxpayers' monies btw, and yet it continues to be closed...a virtual white elephant for the country. Ang galing mo talaga, GMA! Isa kang henyo!