Ex-SSS, Landbank execs face graft charges over anomalous Meralco deal

Director Maria Janina Hidalgo, spokesperson of the Office of the Ombudsman

FORMER executives of the Landbank of the Philippines and Social Security System are facing graft charges before the Ombudsman over a P9-billion anomalous Manila Electric Co. (Meralco) deal.

Facing graft charges are former SSS chairman Thelmo Cunanan, vice-chairman Romulo Neri, Marianita Mendoza, Donald Dee, Sergio Ortiz-Luiz, Fe Tibayan Palileo, Victorino Balais and Sonny Matula.

In a press conference on Thursday, Director Maria Janina Hidalgo, spokesperson of the Ombudsman, said an investigation found that Cunanan and other SSS officials approved the block sale of its Meralco shares to Global for P5.669 billion with a downpayment of P1.333 billion in January 2009.

Hidalgo said an Audit Observation Memorandum from the Commission on Audit noted that the “block sale was not in accordance with sound business practice as it has the effect of giving P4.535 billion loan to Global 5000,” which had an initial paid-up capital of only P62.5 million.

She said the deal was approved by SSS officials despite Global’s lack of financial capacity and track record as the firm was established only one year prior to the sale.

“Documents show that SSS executives waived voting rights to Global despite the lack of full payment and actual transfer of ownership,” she said.

Hidalgo said a related investigation is also being conducted against LBP executives for approving the P4.193 billion block sale of its Meralco shares of stock in favor of Global.

LBP executives facing graft charges are Margarito Teves, Gilda Pico, Marianito Roque, Patricia Rualo-Bello, Eduardo Nolasco, Albert Balingit, Ombre Hamsirani, George Regalado, Cyril Del Callar, Roberto Vergara and Carel Halog.

The Field Investigation Office (FIO) of the Ombudsman said  the LBP executives gave unwarranted benefits, advantage or preference to Global, a firm with doubtful financial capacity and no track record to undertake the sale.

The Ombudsman said that LBP executives entered into a Stock Purchase Agreement without any negotiations and was undertaken in a matter of 10 days.

Global executives were also included in the investigation namely, Iñigo Zobel, Roberto Ongpin, Joselito Campos, Jr., Consuelo Eden Lagao and Rhodel Gandingco