Trillanes questions ‘oozing preferential treatment’ for Dennis Uy, Mislatel

MANILA, Philippines — Sen. Antonio Trillanes IV on Thursday questioned the government’s decision to name Mislatel, a consortium of Davao-based tycoon Dennis Uy and state-run China Telecom, as the Philippines’ new major service provider, saying the selection was “oozing with preferential treatment.”

President Rodrigo Duterte last year invited China to be the Philippines' third telecom provider that would transform the country's troubled telco sector that has long been dominated by PLDT and Globe.

Uy, an old friend of Duterte, teamed up with state-run China Telecom to form the Mislatel Group — which the Philippine government had formally declared as the country’s third telco carrier after two rival bids were rejected and foreign players backed out.

At a Senate hearing, Trillanes expressed doubts over Uy’s qualification to run a telco business.

The lawmaker also echoed Senate Minority Leader Franklin Drilon’s concerns over the validity of Mislatel’s franchise.

READ: Drilon: Mislatel franchise ‘deemed revoked’ due to ‘patent violations’

"As it is, it's now oozing with preferential treatment and at worst cronyism," Trillanes said.

Under the Mislatel’s structure, Uy’s Udenna Corp. and Chelsea Logistics Holdings Corp. own 35 percent and 25 percent, respectively, while China Telecom holds a 40-percent stake. Mindanao Islamic Telephone Company, Inc. will act as the franchise holder.

Critics were quick to point out that Udenna’s Uy is a supporter of Duterte, and had donated to his 2016 presidential campaign. Being the largest shareholder, Udenna can unilaterally make decisions for the consortium.

Responding to Trillanes, Uy — who is behind the rapid diversification of Udenna beyond oil retailing and shipping — said “as a businessman, we are capable in due time to be able to learn and compete.”

“Our lack of experience doesn’t mean we can’t compete in a sector,” he added in Filipino.