Preliminary probe of estafa vs Meralco set

The Department of Justice (DOJ) yesterday issued a subpoena on ranking officials of the Manila Electric Co. (Meralco) to appear at the scheduled preliminary investigation on July 8 and answer the allegation of the National Association of Electricity Consumers for Reforms (Nasecore) that it was involved in a P899-million syndicated estafa.

Summoned by the DOJ to appear before the preliminary investigation were Meralco chief executive officer and chairman of the board Manuel Lopez; vice chairman Felipe Alfonso; Meralco president Jesus Francisco; and board members Arthur Defensor, Gregory Domingo, Octavio Victor Espiritu, Christian Monsod, Federico Puno, Washington Sycip, Emilio Vicens and Cesar Virata.

Also summoned were Francisco Viray, a member of the Meralco board of directors until June 2, 2006; Daniel Tagaza, Meralco chief financial officer; Rafael Andrada, first vice president; Helen de Guzman, corporate auditor; Antonio Valera, vice president; and Manolo Fernando, senior assistant vice president.

Cagayan de Oro Regional State Prosecutor Jaime Umpa will head the panel that will conduct the preliminary investigation.

Justice Secretary Raul Gonzalez earlier appointed Umpa as head of the panel to brush aside allegations of partiality.

“We named a prosecutor from Mindanao so that there would be no accusations of impartiality,” Gonzalez said.

Last May 29, Nasecore lodged a complaint for syndicated estafa before the DOJ against the summoned Meralco officials for the alleged questionable conversion into outright income for its stockholders of at least P889 million in interest earned by the meter deposits of its subscribers.

The case stemmed from a 1995 ruling by the Energy Regulatory Commission (ERC) that the interest rate for the meter and bill deposits for Meralco customers should be 10 percent per annum.

Meralco has been contesting this, insisting it should only be six percent.

According to Nasecore, Meralco has been juggling the four-percent difference between the ERC-mandated 10 percent interest and the six percent that it espouses between two accounts – the customer deposit account where it rightfully belongs and a provisions account.

According to Nasecore, Meralco showed that it had no intention of ever refunding its customers the four percent difference when it transferred the same (then amounting to P889 million) to its “interest and other income account.”

Meralco earlier said the issue has long been settled with the passage of the Magna Carta for Consumers in 2004 and is just waiting for the guidelines from the ERC on how to refund the deposits.

In 2003, the Supreme Court ordered Meralco to refund P30 billion of its income tax, which it passed on to consumers from 1994 to 2002 while in 2004 the High Court also disallowed a provisional increase Meralco charged its customers without public hearings.

Overcharged

Meanwhile, Government Service Insurance System (GSIS) president and general manager Winston Garcia yesterday said he would only stop his attacks against Meralco once the firm reduces the overcharging of surcharges by at least 20 percent.

Garcia was the guest at a forum held at Ilustrado restaurant in Intramuros.

“If management (Meralco) would have the decency and enlightened by a stroke of miracle, would reduce by 20 to 30 percent (the surcharges) then I will stop the fight,” he said.

He said the electric firm allegedly imposes P40 billion every year in overcharging. Lessening the extra charges would go a long way in helping Meralco subscribers cope with the rising cost of commodities.  – Mike Frialde Evelyn Macairan