Meralco explains Landbank shares issue

MANILA, Philippines - The Manila Electric Company (Meralco) reiterated yesterday its earlier statement that the issuance of new stock certificates in the name of Josefina S. Lubrica was pursuant to the Demand to Comply dated Nov. 3, 2008 covering the certificate of sheriff’s sale dated Oct. 24, 2005 issued by the Office of the Regional Adjudicator, Region 4, Department of Agrarian Reform and Adjudication Board (DARAB).

Meralco issued this statement after news reports stated that the Land Bank of the Philippines “allegedly” filed a case of plunder against two Meralco officials.

“As of this writing, the company has not received a copy of the alleged plunder charges filed against our former President and current Board Director Jesus Francisco and our Corporate Secretary, Atty. Emmanuel Sison by the Land Bank of the Philippines. We are therefore not in a position to give our comment on the “reported” charges at this point.

Meralco however maintains that the actions it has taken with respect to the cancellation of the Land Bank shares and their transfer to Josefina S. Lubrica are all in accordance with law,” said Meralco Vice President and Legal Head Anthony V. Rosete.

The said Demand to Comply, which Meralco received on Nov. 4, 2008, directed the corporate secretary of the company “to immediately and without delay issue or cause the issuance of and/or transfer in the most expeditious and efficient manner the corresponding certificates evidencing the subject securities or ownership or registration of said securities in the name of the purchaser at Sheriff’s auction, Josefina S. Lubrica.” Meanwhile, Lubrica, the transferee, secured the corresponding Certificate Authorization Registration dated Nov. 20, 2008.

Rosete reiterated that it is not as if the Land Bank of the Philippines (Landbank) did not have knowledge of the reasons for the cancellation of its stock certificates and the issuance of new stock certificates in favor of Lubrica. He added, “Since the cancellation and the issuance of new stock certificates are based on an involuntary sale and the final decision of Supreme Court, the consent of Landbank is not necessary to transfer the subject shares in the name of Lubrica.” Rosete repeated that Meralco merely complied with a legal order and should not be conveniently and unnecessarily dragged into discussions that are beyond its scope of responsibility.