Mislatel Inc. insists franchise still valid

Mindanao Islamic Telephone Company Inc., a member of the third telco consortium, insisted Wednesday that its congressional franchise remains valid contrary to what Minority Leader Franklin Drilon has been claiming.

Adel Tamano, Mislatel Consortium spokesman, said no positive action has been made to revoke Mislatel Inc.’s franchise.

“In regards to the validity of the franchise, just in terms of matter of fact, no quo warranto procedure has been filed against the franchise of Mislatel. Number two, there is no revocation by the Congress of the franchise of Mislatel,” Tamano said during the fourth and final hearing on the third telco.

“Without going into legal matters, there has been no positive act that would revoke the existence of the franchise of Mislatel,” he added.

Drilon earlier said that the franchise of Mislatel Inc. is ipso facto void for violating its franchise provisions.

Tamano said a quo warranto proceeding is needed to revoke a franchise ... and due process must be observed.

He also discredited that claim that the controlling interest in the company has been sold, saying it was an increase in capital stock when Nicanor Escalante and his group entered the company. Escalante is the company’s current president and CEO.

“There was no sale of controlling interest. In fact, what happened was … The initial entry of Nicanor Escalante and the other shareholders into Mislatel was not through the sale of controlling interest, which is a basis for ipso facto revocation, but subscription into the increase of capital stock,” he said.

Drilon asked if Tamano is denying that Escalante and his group acquired control of the company when they acquired the stocks, Tamano insisted that there was no sale of the original shares of stock.

Tamano said the 2015 subscription did not result in a single shareholder obtaining a controlling interest as defined in pertinent laws and prevailing jurisprudence.

Escalante said he placed P5.8 million in the company, which is equivalent to 11.67 percent of the new capital structure, plus his investment with his group.

Aside from Mislatel Inc., the consortium is made up of Dennis Uy’s Udenna Corp., its subsidiary Chelsea Logistics Holdings Corp., and China Telecommunications Corp. Ltd. —VDS, GMA News