“Where does one find political will? I have been hearing that all my life but I have never found anyone who could tell me where to find it.”
by Ducky Paredes
Who’s right and who’s wrong on Meralco?
It is the wrong signal to investors and the investing public if government will take over Meralco, The government should not be in an acquisitive mode because it is, simply put, essentially incompetent to run industries and private businesses even when these control vital industries. Besides, if it does not have enough funds for social services, what is it doing buying up private companies?
Besides, our public service is just not set up to do what needs doing. All that it is good for is to do as whoever the President is wants done. Examples of this incompetence are legion and are part and parcel of the way that government has been run in this country and is not limited to the present administration.
An industry leader, on being told at a rotary meeting that all that was needed by his industry was political will, replied: “Where does one find political will? I have been hearing that all my life but I have never found anyone who could tell me where to find it.”
Politics – the prevailing culture in any administration that comes into office due to a popular vote – will, more often than not, place incompetents (political cronies) in positions of power in government-owned and controlled corporations (GOCCs).
Winston Garcia, President of the Government System Insurance Service (GSIS) is a rarity in government for being someone who knows what he is doing and does what he knows needs doing even when this is the unpopular thing to do. (Another example of this is Bayani Fernando, Chairman of the Metro Manila Development Authority). Winston fired the first salvo against Meralco precisely because he is watching out for the funds of the GSIS.
GSIS owns 33% of Meralco and has four seats on the Meralco board; the Lopez family though its First Philippine Holdings Corp owns 33.4 percent and is in virtual control of Meralco. The public holds the remaining 33.6 percent.
Winston wants to know whether the GSIS funds are invested in a properly run company. His question is this: Is Meralco being run to unduly favor the Lopez family’s other businesses? In their dealings with Meralco, are the other businesses of the Lopezes – including power plants that supply power to Meralco – being favored over the interests of Meralco? This is a fair question from someone who owns 33% of a company; yet, Meralco says it cannot trust Winston Garcia enough to let him in on all of the family secrets.
Thus, Winston has brought this out for all to hear and see the coming catfight. This is also what Winston did in Equitable-PCIB. He got away with selling the GSIS stake in that one at a slight premium price over what the Social Security System (SSS) pension fund for non-government employees got for its shares in the same bank.
Now, Oscar Lopez, president of First Philippine Holdings Corp. has said of the mess that Garcia is creating: “If he wants, he can buy us out. I am sick and tired of this business. We even can’t get a rate increase because the government is saying our rate is too high.”
Lopez points out that it is actually government that is responsible for its high rates. Look at your Meralco bill. The government takes over 10% in taxes; it is also paid most of the generation and transmission charges which go to Napocor and Transco. Meralco keeps for itself only 24% of what you pay Meralco. Thus, if the complaint is serious about what power costs the consumer, the one to be talked to is government itself and not Meralco,
The last time Meralco was allowed by the Energy Regulatory Commission to raise its basic distribution charge was in June 2003.
Sen. Rodolfo Biazon notes: “If government succeeds to effect government control and management of the company we will witness a parade of incompetent political appointees who will be coming one after another depending on the direction of the political winds.”
Amen. Still, Winston Garcia, representing 33% of Meralco shares ought to be given what he wants to know and should not be treated like a poor relative who is shunted off to a table too far away from where the big boys are.
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Invited to hit a ceremonial ball at the current Philippine Seniors Amateur Golf Championships at the Langer Course at Riviera golf and country club as the President of the Federation of Philippine Amateurs Senior Golfers, Inc. (FPASGI), I played in a foursome with Ogie Manalo, President of the Federation of Golf Clubs, Jun Galindez, Secretary-General of the National Golf Association of the Philippines (NGAP), the organizer of the tournament and Fidel V. Ramos.
At our level of play, our golf was not the same game that the leaders – Clavecilla, Hernandez, Manotoc, Viray and Gaston – were playing. It was, however, still an enjoyable foursome. We had just two pars among the four of us playing 18 holes each, which computes to a par production of less than three percent. Our first par came on the 13th hole and it was FVR’s. He was on in two over two ravines and two-putted for his par. The other par was an easy one on the par three 17th – six feet from the hole and I missed the easy birdie putt.
For those curious about FVR as a golfer, here are my observations: He has a great swing. It is as you see it in the instructional videos – smooth and full, from a backswing that is parallel at the top and a follow-through that is also almost parallel at the top. He putts with a long putter and is pretty good at it. My own putting was awful – two four-putts and several three-putts.
What I marveled at is that FVR walked the full 18 holes, explaining when asked, that this is one of the requisites for keeping one’s health as one ages. The Langer Course is a long and tough walk and many of the tee boxes, where one hits his next shot, are a long walk from the previous green. The terrain is also hilly to mountainous. And, to think that the former President was 78 last year!
For those younger who want to remain as strong and healthy when they get to be Eddie Ramos’ age: Sell that golf cart and walk the course!
It was fun playing with FVR. It was also a great learning experience.
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hvp 05.09.08)
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