GSIS mulls filing charges against Meralco

MANILA, Philippines - Government Service Insurance System President and General Manager Winston Garcia on Monday said the GSIS might file criminal and civil charges against the management of the Manila Electric Company (Meralco). In a press statement, Garcia said that "large-scale" estafa case could be filed against the electric company’s management for overcharging its consumers. He said that the GSIS might also file a civil suit against Meralco based on the Supreme Court‘s decision saying that the firm is guilty of overcharging its customers to the tune of P30 billion. In that decision, the high court even ordered Meralco to refund its consumers. Garcia thanked President Gloria Arroyo for supporting his move to review Meralco’s power rates and to audit of its operations. "I am happy that the President supports my move because we should really change the present management of Meralco as they (managers) hold themselves accountable to nobody despite the many anomalies that are happening in the company," said Garcia. He claimed that Meralco hides many things from its stockholders, adding that its management has refused the demand of GSIS for documents relating to the firm’s operations. "We are a major stockholder. I represent 1.5 million members of GSIS who collectively are owners of 25 percent of Meralco. Yet, despite repeated demands, the Meralco refuses to give us the documents.... There is no transparency in the Meralco's management. They must be hiding a lot," he said. Garcia was referring to the "systems loss," which Meralco used as an excuse for collecting high charges from consumers. Garcia explained that the "systems loss" represents losses from pilferages and from inefficient management, for which Meralco was charging over 10 percent, even if it was only allowed to collect not more than nine percent. "Why should the consumers and stockholders, who are also consumers, be made to pay for their inefficiency? Somebody has to pay for this but not the innocent customers and stockholders," he added. He said he would ask the Bureau of Internal Revenue, the Energy Regulatory Commission and the Securities and Exchange Commission to get the documents from Meralco should the firm continue to ignore the request of GSIS. Garcia stressed that GSIS has a right to help bring electricity rates down on behalf of its 1.5 million members who are both consumers and stockholders. Meralco’s defense In a report last Friday by the BusinessWorld, Meralco disputed claims that the firm was not transparent, saying it was merely balancing shareholder interest and the company’s sake as a whole. Meralco Director Christian Monsod said that the company had granted the request of Garcia for some documents, but the management also had to treat shareholders equally. "Any precedent established... would open the company to suits and damages in the future," Monsod was quoted as saying. "Copies of documents can end up in the hands of those with adverse interest in Meralco," he said, adding that the interest of GSIS through its other investors might conflict with Meralco’s interest. - GMANews.TV