DOJ subpoenas Meralco execs on estafa case

MANILA, Philippines - The Department of Justice has issued a subpoena against the officials of Manila Electric Company (Meralco) in connection with the P889 million syndicated estafa complaint filed by a consumers' group, radio dzBB reported Tuesday. Radio dzBB's Teresa Tavares reported said the DOJ panel of prosecutors asked the Meralco officials to appear at the preliminary investigation set on July 8. The report said the prosecutors also ordered the electric company's officials to file a counter affidavit on the complaint filed by the National Association of Electricity Consumers for Reform (Nasecore). On May 29, Nasecore accused Meralco executives of committing estafa when they converted “interest from meter and bill deposits of consumers" and claimed it as the company’s income. Since Meralco has already recovered the cost of the meters from its earnings, Nasecore said in its complaint that there is a need to refund the deposits amounting to P889 million. “Meralco has customarily charged deposits for meters, but this stopped in 2004 when the Energy Regulatory Commission (ERC) passed the Magna Carta for Residential Consumers," Nasecore said. “Residential consumers who subscribed prior to 1995 were declared to earn 6 percent interest and only consumers who subscribed after 1995 were declared to earn 10 percent interest. In 2006, Meralco converted the 4 percent interest accrued from the year 1995 to 2003 to the company’s 'interests and other income.' The accrued interest differential translates to no less than P889M," it added. Named respondents in the suit are Manila Electric Co. executives and board members who served the company in 2006. These include Manuel M. Lopez, Felipe B. Alfonso, Jesus P. Francisco, Arthur R. Defensor Jr, Gregory L. Domingo, Octavio Victor R. Espiritu, Christian S. Monsod, Federico E. Puno, Washington Z. Sycip, Emilio A. Vicens, Cesar E. A. Virata, Francisco L. Viray, Daniel D. Tagaza, Rafael L. Andrada, Helen T. De Guzman, Antonio R. Valera, and Manolo C. Fernando. In a phone interview, Ilagan told GMANews.TV that a Meralco stockholder was able to detect this “irregularity," leading him to file an administrative case at the company. For his part, Elpi O. Cuna, Meralco’s spokesperson, told QTV’s Flash Report that the company welcomed the case since it will be able to present evidence in its behalf. - Amita Legaspi, GMANews.TV