Transcript of Senator Miriam Defensor Santiago ’s interview

The resource panel synonymously endorsed Senate concurrence with two groups of treaties. One group consisted of the Mutual Legal Assistance treaties. This means that in criminal proceedings, the Philippines together with other country will perform certain services, if necessary, in connection with a criminal proceeding in that other country. For example, if they are looking for some witnesses, certain documents, if they want to see certain assets in the criminal proceeding in that country.

The resource panel also unanimously recommended concurrence with the Avoidance of Double Taxation Treaties. There are already 36 of such treaties, so I foresee this will be easily concurred in by the Senate. They are very non-controversial. It will encourage foreign direct investment because a capitalist will not come to the Philippines if his income will be taxed both in his home country and in the Philippines. We will have to forego or waive the taxes on that foreigner, but in compensation, that foreigner will be encouraged to provide foreign direct investment here. We are just following the path we already set with the 36 other Avoidance of Double Taxation Treaties.

The RP-Spain MLAT is different in a sense that even if the act which is involved in the proceedings does not constitute a crime in the Philippines, still the Philippines will be obliged to provide legal assistance. That is not a provision in the other treaties. But, I also noted that sometimes this is the result of negotiations. We cannot really have our own way all the time during the negotiation process. It doesn’t really bother me as long as the DFA will give me a written memorandum explaining why Spain took that recalcitrant stand. Possibly, they said either you include this provision or we don’t have a treaty. Sometimes we have good grounds based on their own peculiar circumstances.

On the Powercom hearing on Monday (12 May 2008)

I expect it to be a battle of titans. I will ask Mr. Winston Garcia of the GSIS to enumerate as briefly as possible the ways in which he thinks Meralco has been mismanaged such as to result in very high electricity rates. The JCPC or Powercom is not really concerned with the ownership issue. That is the business of business. But we in the JCPC are concerned with the issue of very high electricity rates. Pitong taon na ang ating Epira na gumawa ng pagbabago sa ating industriya ng kuryente, pero pagkatapos ng pitong taon, hindi pa rin nakamit yung tanging layunin na ibaba ang binabayad sa kuryente. Ibig sabihin lahat kami ay failure. Epira is a failure. The Senate is a failure. The executive branch is a failure.

Bakit? Dahil ang Meralco, dapat pasabugin iyan. Pugad iyan ng mga sindikato. Mas grabe pa iyan sa Bureau of Customs. Baka hindi alam iyan ng may-ari. Yun ang basehan kung bakit sinabi ng ibang senador na Meralco lang ang makakapagpatakbo sa Meralco. Ang ibig sabihin lang niyan ay napakaraming pasikot-sikot diyan. That is a conglomeration of mafias. I am sure, although I may not have the evidence, that there is a crime involved. That is a crime of a combination of a restraint in trade or monopoly. That is punishable under the Penal Code.

In America, ang anti-trust laws nila ay isang buong encyclopedia. Sa atin, isang provision lang ng Penal Code, hindi pa ginagamit ng Department of Justice. Maybe it is time that the DOJ made an example of Meralco employees and officials. I am not particularly talking about the Lopez group, they are simply the owners. Sometimes the owner just participates in the profits and allows other people to run their business. But, from the way we have seen how Epira cannot effectively lower the price of electricity, I am reasonably certain that there are criminal syndicates operating in Meralco, and they are all punishable for violating the Penal Code against combinations in the restraint of trade.

Sinasabi ng iba na ang kuryente na binibili niya hindi lamang sa Napocor kundi sa iba pang independent power producers (IPP) na pag-aari rin pala ng Meralco. Kaya binibilhan niya ang sarili din niya. That is self-dealing. That is inimical to the public interest, apart from being a criminal offense.

Maliban diyan, may isa pang batikos. Lahat daw ng materyales sa industriya ng kuryente ay binibili ng Meralco sa kumpanya ng pag-aari rin niya. Ang mga poste, electrical wiring, electric meters, and all other components of the delivery system for electric power. Tingnan natin ang mga batikos. So far, all we have are accusations.

Basically all these accusations are intended to wrest control of Meralco, and it is no concern of ours here in the Powercom. Our concern here is very basic: Bakit napakamahal ng kuryente?

Ipalista natin kay Mr. Garcia o sa kanyang representative ang lahat ng argumento niya, at makikita natin diyan kung ano ang dahilan kung bakit mataas ang presyo ng kuryente, at pagkatapos ay ipasagot natin sa Meralco. Sa ganoong paraan, makikita natin who is making more sense.

Plus, mayroong mga lupon sa electric power industry na nagmamaniobra na hanggang ngayon na ang ating kuryente ay manggaling sa coal, dahil ang laki ng ipinapatong nila kung magbenta sila ng coal sa Napocor. Titingnan din natin iyan pagkatapos nito. Kaya maari na ang imbestigasyon sa Senado sa Lunes ay matutuloy sa kasunod pang Lunes tungkol naman sa coal.

Ang resulta nito ay lalagyan natin ng proper provisions ang Epira law, which is in the process now of being amended by the Senate.

Malipat man natin ang pag-aari o pagpapatakbo ng Meralco galing sa pribadong kamay papunta sa gobyerno, meron ba tayong garantiya na magiging mas maganda ang pagpapatakbo nito o magiging mas mababa ng presyo ng kuryente, dahil kung bababa agad ang presyo ng kuryente, lahat tayo at kami sa Powercom ay pabor na magkaroon ng ownership o management takeover. There is no such guarantee, kasi maski sinong commissioner mo diyan, talagang kikita at kikita ang mga sindikato kasi matagal na sila doon at mahirap silang kuwestiyunin. Marami silang pera kaya sisiraan nila agad ang bagong tagahawak ng sistema nila hanggang magresign na lang ang pobre. Kaya dapat diyan sana, meron tayong administrator ng Meralco who is very street smart. Otherwise he will only be an office technocrat and he will definitely fail the expectations of the public. We need a graftbuster.