MORE lawmakers have expressed opposition to Meralco’s bid to have its congressional franchise renewed four years before it expires in 2028.
Among those who joined the opposition to the move is Surigao del Sur Rep. Johnny Pimentel, vice chair of the House legislative franchise committee, which is currently discussing Meralco’s bid.
Pimentel echoed the appeal made previously by Sta. Rosa City Rep. Dan Fernandez for the House to carefully review the Meralco franchise before acting on it.
Pimentel agreed that the power distribution giant should first answer the issues presented to the committee against the utility’s practices.
During a committee hearing last Monday, Pimentel raised questions about Meralco’s change of ownership from the Lopez clan to the group of businessman Manuel V. Pangilinan.
The ownership change took place in 2009 but 25 years later, Congress has not been formally informed of the process. The law granting the Meralco franchise passed by Congress was for the then-Lopez company.
“Did you seek permission from Congress for (a) change of ownership?” Pimentel asked Meralco representatives at the hearing.
Lawyer Ray Espinosa, Meralco director, answered no, adding there was “no change in controlling interests” which meant no approval was needed from Congress.
Pimentel said he deemed the move as “illegal,” adding the situation is similar to that of Sonshine Media Network Inc. (SMNI), which also failed to declare its change of ownership.
SMNI is required by the law that granted its 25-year franchise, RA 11422, to declare and seek approval from Congress for any ownership change.
The same mandate, Pimentel said, applies to RA 9209, the law that granted Meralco its franchise.
Between 2009 and 2012, the Lopezes’ stake in Meralco was diluted to 33.4 percent after the clan sold shares to the First Pacific Group of Pangilinan. The stake was further diluted to 3.95 percent in 2012.
First Pacific, through Beacon Electric Asset Holdings Inc. and Metro Pacific Investment Corp., currently holds 45.46 percent of Meralco shares.
Pimentel warned Meralco that the failure to declare and seek Congress approval of the ownership change was sufficient ground to reject the renewal of the Meralco franchise.
“That issue is exactly what I raised–if Meralco did not violate the provision of their franchise that any change in ownership they should ask prior approval from Congress,” Pimentel said.
“This violation was one of the grounds to revoke the franchise of SMNI,” Pimentel said.
“In my opinion, they have the same predicament as SMNI and they may be held liable for the violation of (the) said provision,” Pimentel stressed.
SMNI openly admitted to transitioning from a non-stock, non-profit corporation to a sole corporation under disgraced preacher Apollo Quiboloy in 2006. In 2023, the controlling stake was transferred to Bro. Marlon Acobo, with both transactions taking place in the absence of Congress’ approval.
Pimentel also raised questions about the rush to renew Meralco’s franchise, echoing Fernandez’s position.
“It’s only 2024. Four years more,” said Pimentel. “Why apply for renewal of a franchise that is set to expire four years from now?”
