The Citizen’s Movement for Protectionism and Reform (CMPR) deplored Nextel’s planned disposition of its shares, saying it is a ploy by its American owners to avoid pending lawsuits for alleged violations of the Anti-Dummy Law, the Public Service Act and the Philippine Constitution. The group made the allegations during separate rallies, outside Nextel’s Ortigas headquarters and at the House of Representatives over the weekend.
"We received reliable information that negotiations for the transfer of Nextel’s ownership and management control are nearing its final stages. The parties involved include the Marsman/Drysdale Group and a certain Mel Velarde who claims to have close ties with the Carpio Villaraza law firm," CMPR secretary general Roland Padrelanan said.
According to CMPR, the mode of transfer will allegedly involve a buyout of the shares of Nextel’s corporate stakeholders namely Top Mega Ltd. (foreign); Joycelink Ltd. (British Virgin Islands); and the following Philippine corporations: Gamboa Holdings, Inc., Emerald Holdings and Foodcamp Industries & Marketing Corp.
"The NTC has yet to act on numerous complaints against Nextel for not reporting major changes in its ownership structure. Now it is again poised to transfer a large slice of its shareholdings to a private consortium without first securing authorization from the NTC," Padrelanan stressed.
He asked Congress to investigate what he alleged was an anomalous transaction and urged NTC to prevent the same if available evidence so warrants. "After all, Commissioner Eliseo Rio promised a swift and judicious resolution of the cases against Nextel. This development compels NTC to act even faster before everything is too late," he added.
The cases against Nextel stemmed from allegations that Americans have effective control over Nextel Philippines in violation of a Constitutional provision reserving majority ownership of public utilities to Filipinos. Likewise, Nextel was charged for alleged failure to report changes in its ownership structure to the NTC as mandated by the Public Service Act or Commonwealth Act No. 108.
CMPR’s suit follows the earlier complaint filed by telecoms lawyer Winston Abuyuan who alleged that Nextel’s American investors have effective control over 59.08 percent of the company’s equity, in violation of the 1987 Constitution.
While Nextel holds a legislative franchise as a public utility, CMPR alleged that the firm is controlled by non-Filipinos. It cited Nextel International’s own disclosure before the US Securities and Exchange Commission that it increased its direct and indirect interests in [Nextel Philippines] to about 59 percent through several holding companies.
CMPR also claimed that Nextel violated provisions of the Public Service Act when it failed to report and secure NTC’s approval for its multi-million dollar loans, the sale of its shares and the transfer of control of more than 40 percent of the company’s equity.