SC to prioritize Meralco case after bribery scandal

MANILA, Philippines - The Supreme Court will prioritize the leadership row at Lopez-led Manila Electric Co. (Meralco) as a consequence of the bribery scandal that it had triggered. Court sources privy to the case said twin petitions questioning the Court of Appeals ruling on July 23 favoring the Lopezes had been consolidated and raffled off to the high court’s second division. Supreme Court Spokesman Jose Midas Marquez told reporters Wednesday the case was "not yet ripe for a decision." "We are still waiting for comments from the parties, but it could be prioritized," he added. Last month, the appellate court’s eighth division nullified a Securities and Exchange Commission (SEC) order that would have prevented the Lopez-led management from counting proxy votes. The state pension fund Government Service Insurance System (GSIS), a big Meralco shareholder, and the SEC then elevated the case to the high court. After investigating bribery charges involving appellate court magistrates, the Supreme Court on Monday dismissed Associate Justice Vicente Q. Roxas, who wrote the July 23 decision, for having demonstrated "undue interest" in the case. The high court also suspended Associate Justice Jose L. Sabio, Jr. — the chairman of the original division that first heard the case — for inappropriate behavior. The magistrate, who exposed an alleged attempt by a Meralco emissary to bribe him with P10 million, was found to have spoken with his elder brother, Presidential Commission on Good Government chief Camilo Sabio, about the case. The latter had tried to sway the justice to take the government’s side. The high court also reprimanded Presiding Justice Conrado M. Vasquez, Jr., for his indecision and Associate Justice Bienvenido Reyes, Jr. A fourth associate justice, Myrna Dimaranan-Vidal, was admonished. Mr. Marquez earlier said the findings of the full court would have to be considered when deciding on the main case. Monday’s decision was silent on the main case. Lawyers said the bribery probe should not affect the merits of the case. The decision penned by Mr. Roxas, which allowed the Lopezes to maintain control of the utility, "is correct notwithstanding the goings-on in the court," said Reynaldo Geronimo of the Romulo Mabanta, Buenaventura, Sayoc and Delos Angeles law office. Lawyer German Lichauco of the Siguion-Reyna, Montecillo and Ongsiako law firm said the ruling that the SEC does not have jurisdiction over corporate squabbles was sound. Supreme Court Associate Justice Leonardo A. Quisumbing said the Meralco management row and the bribery scandal are different issues. "They have to be taken up separately." — Ira P. Pedrasa, BusinessWorld