The DOTC asked NTC to look into allegations made by lawyer and constitutionalist Alan Paguia that Nextel has violated Article 12 Section 11 of the Constitution which limits foreign ownership of the capital of public utilities to only 40 percent.
Earlier, legislators led by Congressman Aniceto Saludo, also called for a congressional investigation of Nextel on the same alleged violation.
The complaint endorsed by the DOTC to NTC alleged that two domestic corporations, Gamboa Holdings and Emerald Investments, which hold 20 and 28 percent of Nextel’s outstanding shares, respectively, are mere conduits of Nextel International (NII), the Virginia-based mother company of the local Nextel.
Paguia said NII had publicly stated that it owns 59 percent of the local Nextel’s capital stock.
He added that Nextel lawyer Teodoro Regala of the ACCRA law offices, had also admitted in a shareholders meeting that foreign ownership of the local Nextel "is indeed more than 40 percent".