Monday, May 12, 2008

Takeover of Meralco: A Political Move

We have seen in the news for the past few days the planned takeover or control of Meralco by the government. Although the President does not directly admit the possible takeover since it is not in accordance with the existing policy of the government which is on privatization.

What is in Meralco that the government is really interested. I really doubt if it is really for the public interest. Why only now. Meralco is charging high on its consumers for so many years but why now? This is a very big question. What is the motive. Should we believe what Mr Lopez have said that the government is just diverting the issues. And they are the victim. It is a fact that the Lopezes are not that close with the present administration.

Another critial issue here is the intervention of GSIS. Garcia wants to have a change in management. He also said that GSIS can purchase the bigger portion of the stocks so that they can already change not just the top management but at the same time the way Meralco is being run. A suggestion that Meralco should be divided into 2 is again a dangerous move. The question is, can GSIS, a financial instituion can run a utility company. Do they have the expertise?

If Meralco is charging above board, there are so many government agencies that should act to make inquiries or investigations but not a takeover.

The issue on the utility rates is a long time issue. Still no concrete actions are taken by the government to at least lower the rates. The EPIRA law and other energy related laws are still there. There are some laws which should be repealed but up to now it is still being implemented.

With the spiraling of gas prices, rice shortage, high ulitility rates, high inflation rates, and poverty, what will happen to us, the filipinos, and the Philippines.

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