Showdown at Meralco
Source: Inquirer.net (Original Article)
GSIS chief girds for proxy war on Tuesday
MANILA, Philippines–Government Service Insurance System president Winston Garcia looks like a man getting ready for war as he prepares for a proxy fight at the Manila Electric Co.’s annual stockholders’ meeting on Tuesday where he could either lose his seat on the board, or end up in control of the country’s biggest power distribution utility.
Garcia said the soliciting of proxies could result in a reduction of the government seats at the 11-member Meralco board from four to three, with him as the probable casualty.
Garcia said it was apparent that the utility’s rates could go down only with a change in the Meralco’s management team.
He said this would be his objective at the shareholders’ meeting on Tuesday when a new board would be elected.
But Garcia has accused the Lopez group of “engaging in dirty tricks” by soliciting proxies even after the deadline for this had lapsed last week.
Meralco vice president Elpi Cuna said this was “not only irresponsible but downright false.”
“It was and will never be the policy of Meralco management to engage in dirty tricks,” said Cuna, Meralco’s director for corporate communication.
The government “needs the four seats to establish a quorum as well as a majority [with the help of two independent directors],” said Garcia who has been waging a media war against the Lopez group’s management of Meralco.
‘Abusive practices’
Garcia said that his aim was to change Meralco’s management team whose “abusive practices” were the reason why electricity rates were the highest in Luzon and even in Asia.
Garcia said his GSIS team was watching the developments leading to and during the annual meeting.
He said he would be bringing eight lawyers to face off with Meralco’s “40 lawyers.”
“If we see that we have been wronged, we are ready to take them to court. A lot of people Frequent Flyer Credit Cards could go to jail,” he said.
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