The chief executive officer (CEO) and two other senior officials have resigned in what observers describe as a major shakedown in the cash-strapped Philcom Corp.
Philcom president and CEO Alex Villamar led the pack by filing his terminal leave last Jan. 10. Evelyn Singson has assumed the position, while management looks for a suitable replacement.
Singson is the president and CEO of APC Group Inc., a subsidiary of Belle Corp. which bought 40 percent of Philcom in 1997. Indirectly, Belle controls 90 percent of the company.
Nobody from Philcom would give an official comment on the situation.
At least two senior vice presidents left with Villamar while a number of officials and staff of Philcom's management information system (MIS) division are planning to join their mentor in the new business he has established.
Villamar is expected to launch his own Internet company called Fil-web by Feb. 1, a move which is viewed to be in conflict with his position in Philcom. Aside from offering telecoms services, Philcom is also an Internet service provider.
A highly-placed industry source who requested anonymity said the current controlling shareholders of Philcom are disappointed over the performance of Villamar's group which saw the company entering into a debt restructuring agreement for its P787.4 million outstanding short-term loans.
On the other hand, Villamar allegedly claims he did not get any support from the firm's new owners, thereby, keeping his hands tied.
Villamar joined Philcom in 1981 rising to the position of CEO in 1998 after Philcom Corp. merged with its mother firm, the Philippine Global Communications Inc.
Villamar is closely associated with Marcos Trade Minister Roberto Ongpin who was removed last year from the 15-man board of directors of Belle without any explanation given.
Ongpin is the single biggest shareholder of Belle with 20 percent ownership.
Belle has announced its intention to sell the firm even as it continues to scout for a possible third party investor or strategic partner for Philcom.
A utilities company like Philcom is allowed by law to have up to 40 percent foreign interest.
Although Philcom reported a significant increase in revenues beginning 1998 after incurring net losses from 1995 to 1997, it still has a negative working capital and an accumulated deficit.
Another source said Philcom dropped to the bottom of the list from its number two position in the industry when Villamar took over as problems became more acute during his time.
"There was already a business plan made to solve the problem little by little but he did not pursue it," the source said.
As part of its license to provide international toll services, Philcom is required to install at least 300,000 landlines in its assigned service areas in Mindanao but it failed to meet the target within the three-year deadline given by the National Telecommunications Commission (NTC).
Philcom, which was established in 1924, is the first local company to offer international telex and telegraph services.