GARCIA SAYS
Lopezes may stay at helm even if gov't gains Meralco control
By Ronnel Domingo
Philippine Daily Inquirer
First Posted 20:45:00 05/23/2008
MANILA, Philippines--The Lopezes and their representatives may stay at the helm of the Manila Electric Co. even if, given a chance, the government gained absolute majority and thus control of the country's largest power utility.
Winston Garcia, Government Service Insurance System president and general manager, said on Thursday he was amenable to Peter D. Garrucho Jr. becoming Meralco's chief operating officer.
The current COO, who is also Meralco president, Jesus P. Francisco, has locked horns with Garcia in various venues, including a hearing of the Joint Congressional Power Commission and a Cabinet meeting in Bohol over what Garcia called "abusive practices" of the company's management team.
A former Secretary of Trade and Industry, Garrucho holds top positions in the Lopez business empire and is a current Meralco director.
"I know Peter and I see that he is good to work with and a professional," Garcia said. "I don't mind if he is a Lopez man."
The GSIS president added that he had nothing against the Lopez group, but that the present management team must be replaced if Meralco was to be run properly and its power rates reduced. "The Lopez group may continue to control Meralco's management, that's fine with me," Garcia said. "In fact, I would agree if (Federico R. Lopez) were to replace his uncle (Manuel "Manolo" M. Lopez) as chief executive."
Federico, who goes by the nickname Piki, is the son of Oscar M. Lopez who chairs First Philippine Holdings Corp. which holds the Lopez group's controlling stake in Meralco.
Federico is currently president and COO of First Gen Corp. which holds 60 percent of First Gas Power Corp. and FGP Corp. -- the companies that own two of Meralco's three independent power producers, the 1,000-megawatt Sta. Rita and 500-MW San Lorenzo power plants, respectively.
"I have even told Piki that he should replace his uncle," Garcia said. "He knows that business, he is fit for the job."
Garcia said the current management team was responsible for Meralco's high power rates because it was completely subservient to the Lopez group's interest and insistent on Meralco's "disadvantageous self-dealing transactions" with its affiliates and subsidiaries.
He also lambasted the management for maintaining an expensive, top-heavy bureaucracy that has more supervisors than rank-and-file employees.
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