MANILA, Philippines — Davao-based tycoon Dennis Uy — whose companies form part of a consortium named as the Philippines’ new major service provider — skipped a Senate hearing on Tuesday into the selection of the third telecommunications player.
“Unfortunately, I will be out of town due to a previously scheduled commitment,” Uy said in a letter to the Senate Committee on Public Services.
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Udenna Group Vice President of Corporate Affairs Adel Tamano attended the Senate hearing on Uy’s behalf.
President Rodrigo Duterte last year invited China to be the Philippines' third telecom provider that will transform the country's troubled telecommunications sector that has long been dominated by PLDT and Globe.
Uy, an old friend of Duterte, teamed up with 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.
Uy’s Udenna Corp. and Chelsea Logistics Holdings Corp. will own 35 percent and 25 percent, respectively, of the eventual Mislatel consortium, while China Telecom will hold 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.
“I believe we need to invite Mr. Dennis Uy because I will have some questions directly which I believe Atty. Tamano may not be able to answer. Along those lines, can we issue another invitation to Mr. Dennis Uy?” opposition Sen. Antonio Trillanes IV told the Senate committee.
“It’s very important for the Filipino public to scrutinize the character of those behind the company,” Trillanes added.
The government has maintained that the selection process has been transparent and above board.
Bias for China seen
Earlier this month, think tank Fitch Solutions said the choice of Mislatel—and China Telecom—highlights Beijing’s growing political clout in the country.
It said the selection "hints at the government’s bias towards Chinese involvement in the telecoms sector, and is a clear sign of Duterte’s warming posture towards China," but also said that the consortium was also the logical and practical choice.
It added that "from a technical perspective, the most feasible one as the state-owned telco has the experience, scale and financial capability needed to disrupt the Philippines telecoms sector that is otherwise lacking at the other contenders."
Two other bidders, PT&T and SEAR Telecoms, were disqualified by the National Telecommunications Commission's selection committee for failing to meet requirements. Both firms appealed their disqualification but the committee also junked those motions. — Ian Nicolas Cigaral