Divina said the accused constituted themselves into an executive committee and passed a resolution authorizing accused Nieto Jr. to enter into an illegal memorandum of agreement (MOA) with ANSEAR Realty and Development Corp. and Antonio Araneta.
According to Divina, Philcomsat and Philcomsat Holdings Corp. (PHC), a subsidiary of Philcomsat, precipitatedly released the amounts of P265 million and P125 million, respectively, without obtaining the approval of the Philcomsat and PHC Board for the ratification of approval of the stockholders of the two corporations in gross violation of the provisions of the Corporation Code.
And yet with the unsettled feud within the company, the Nieto Jr. group took over forming its own board of directors composed of newcomer Enrique Locsin, an appointee by the Presidential Commission on Good Government (PCGG), taking over the chairmanship of the divided telecoms firm. Divina in a letter to PCGG chairman Haydee Yorac assailed the March 22 special meeting of the Philcomsat board chaired by Nieto Jr.
In his letter to PCGG, Divina said "the foregoing acts clearly constitutes a mockery of the judicial rulings declaring the rump board election of Aug. 27, 1998 by the said Nieto-led group as illegal." He said it was the intention of the said group to further "sow chaos and confusion in order to perpetrate themselves in power as they have managed to do so in Philcomsat Holdings Corp., a publicly-listed corporation, 81 percent of the shares of which is owned by Philcomsat."
Divina said the legal feud stands until matters are cleared as to who would legally sit on the board of the troubled telecoms outfit.