Bong's wife joins SMC board

MANILA, Philippines - Actress Lani Mercado, wife of Sen. Ramon “Bong” Revilla Jr., has been appointed as government nominee to the board of directors of San Miguel Corp. (SMC).

Officials of the Presidential Commission on Good Government (PCGG), who requested anonymity, admitted yesterday they were caught by surprise and puzzled over the appointment to the SMC board of Jesusa Victoria Hernandez-Bautista, more popularly known as Lani Mercado.

“She was in the ‘desire letter’ sent by the OP (Office of the President). We did not even know that she (Lani Mercado) was in the list,” the source said.

“We just install whoever is in the desire letter,” the source explained, saying all questions about the appointment should be addressed to Malacañang.

Sources said the desire letter does not include background information on the nominee. “It’s just their names that are in there.”

She was also elected as a member of the SMC’s nominations committee in the organizational board of directors’ meeting last July 23 at the Valle Verde Country Club in Pasig City.

Mercado replaced current Cabinet Secretary Silvestre Bello III.

The government controls about 27 percent of SMC and is authorized to name five nominees to the company’s board.

The desire letter from Malacañang also included the reappointment of the government’s four other nominees: businessman Menardo Jimenez, a former chairman of GMA 7 television network; industrialist Egmidio Jose; former Presidential Security Group (PSG) commander Leo Alvez; and former Nueva Ecija Rep. Pacifico Fajardo, father of deputy presidential spokesperson Lorelei Fajardo.

The Government Service Insurance System holds another seat in the SMC board with GSIS president and general manager Winston Garcia as nominee.

PCGG claims that the agency does not interfere in the management of SMC even though the commission appoints the five nominees to the board upon the recommendation of Malacañang.

The government nominees have long supported SMC chairman Eduardo Cojuangco Jr. in his control and management of the food and beverage giant.

Cojuangco’s nominees in the SMC board include himself, Ramon Ang, SMC president; former Justice secretary Estelito Mendoza, Iñigo Zobel, and Carmelo Santiago.

Cojuangco had staged a comeback at the SMC top post during the term of then President Joseph Estrada in 1998. Estrada was Cojuangco’s vice presidential running mate when he ran for president in 1992.

The Supreme Court has declared the 27 percent SMC stake earlier sequestered by the PCGG as “imbued with public interest” and bought with public funds.

The PCGG is now awaiting final judgment from the Sandiganbayan forfeiting the 27 percent stake in favor of the government, clearing the way for the government’s sale of the shares in a public bidding.

The PCGG is also pursuing its claim over another 20 percent of SMC being claimed by Cojuangco.

Lawmakers recently questioned SMC’s recent string of investments outside its core business of food and beverage manufacturing.

After spinning off its brewery business through San Miguel Brewery, SMC had announced its intent to diversify into growth industries such as power, power distribution, energy, water utilities and mining.

SMC recently bought the 27 percent stake of GSIS at the Manila Electric Co. (Meralco) reportedly for P27 billion.

San Miguel had also bought a controlling stake in Petron Corp. from British investment firm Ashmore Group, reportedly for some P33 billion or $660 million.

SMC had also bought a controlling stake in Liberty Telecom Holdings for its foray into the highly competitive telecommunications industry.

The firm has also submitted an unsolicited proposal to the government to build the Laiban Dam in Rizal to supply water to Metro Manila in partnership with the Metropolitan Waterworks and Sewerage System (MWSS).