SC upholds "Filipino First" Policy; orders GSIS to sell the Manila Hotel to a local company
THE SUPREME Court stops the sale of the Manila Hotel to a Malaysian company which won the bidding held more than a year ago. Instead, it ordered its owner, the Government Service Insurance System (GSIS), to award the sale to a local company owned by publisher Emilio Yap.
ABS-CBN's Patrick Paez, tells us what the Supreme Court means by "Filipino first".
The Manila Hotel was the preferred residence of General Douglas MacArthur, in a suite that carries his name, till today.
At one point the Manila Hotel ranked among the finest in Asia, such, that the Supreme Court has ruled it to be part of the national patrimony.
If government must sell it, it must be sold to Filipinos first. Section 10, Article 12 of the Constitution, says the State shall give preference to qualified Filipinos in the grant of rights, concessions, and privileges.
The Supreme Court voted 11 to four, in stopping the sale of 51 percent of Manila Hotel to the winning bidder, Renong Berhad, a Malaysian company.
The GSIS, which owns the hotel was ordered to give the winning bid to Manila Prince Hotel which is owned by publisher Emilio Yap.
In the bidding that took place more than a year ago, Renong Berhad gave the highest bid: P44 per share, followed by Manila Prince Hotel at P41.58.
Manila Prince matched the bid of Renong Berhad. But when the GSIS refused it, Manila Prince went to the Supreme Court and invoked the Constitution's "Filipino first" policy.
Chief Justice Andres Narvasa was one of those who dissented. In their dissenting opinion, they say "Filipino first" does not mean that we wrong an alien.
The SC ruling is the latest setback in government's privatization efforts. It's got the business sector worried about the courts' intervention in economic affairs.
"A step backward in the effort to attract foreign investment." That's how business views the Supreme Court's decision to overturn the sale of Manila Hotel to a foreign firm. Analysts see a trend of privatization projects being delayed by the courts, which they say worries investors.
Just last Friday, the Court of Appeals temporarily stopped the privatization of the Metropolitan Waterworks and Sewerage System (MWSS), on a petition the bid was unconstitutional.
Two years ago the Supreme Court had also ruled on the transfer of a Petrochemical project from Bataan to Batangas. And just a few months ago, Hutchison Whampoa Limited, the winning bidder on the Subic Bay Container Terminal project complained of having exhausted time and resources on a project which was ordered rebidded by Malacanang, after protests by local ports operator, ICTSI.
One concern of investors is that losing bidders can easily find a forum to delay the process: the courts, the Executive Department or even Congress.
Many state assets are still up for privatization. The fear is that the Philippines' reputation may keep foreign investors away. And because of the Manila Hotel ruling, Finance Secretary Roberto de Ocampo, says they will review which assets can and cannot be privatized based on the Supreme Court's definition of national patrimony.
Malacanang hits back
WHILE government evaluates the implication of the Manila Hotel ruling, its legal experts are questioning the move of the Court of Appeals to stop the privatization of the MWSS.
The government's legal experts say it's alright for the courts to review the MWSS privatization deal. But they say the court does not have the power to stop it.
In Congress, Presidential Chief Legal Adviser Rene Cayetano's statement was sharpy rebuked even by members of the ruling party. But Cayetano does not think he can be held in contempt of court for questioning the court's order to suspend the sale of MWSS.
The government has 10 days to submit its position paper to the Court of Appeals. It is prepared to defend the transaction against a group of petitioners which has interests in a $1 billion dam project.
The Ayala and Benpres groups are breathlessly awaiting the outcome, hoping their deal with the government will still hold water.
Repeal of RA 8180 urged
THE FULL deregulation of the oil industry takes effect this Saturday, and a multi-sectoral group now considers taking the matter to the Supreme Court.
Members of the "Bukluran ng Mga Mamamayan Laban Sa Oil Deregulation" or "Buklod", signed a manifesto seeking the repeal of Republic Act 8180, the law deregulating the oil industry. They want it replaced by a pro-people legislation.
Among Buklod's guests were Congressmen Bobby Tanada, Edcel Lagman and Enrique Garcia. The congressmen criticized government for allowing the three oil companies to lord it over the industry with the onset of deregulation.
But one of the principal authors of the law is not disturbed by Buklod's threat to go to court.
Senate okays P433 billion budget
THE SENATE has ratified the bicameral conference committee report on the P433 billion 1997 budget. Only two senators voted against the measure.
Senators Alberto Romulo and Miriam Defensor-Santiago, criticized their collegues for continuing to include "pork barrel" in the national budget.
Romulo says much of the "pork" is in the P10.9 billion increase in the public works budget. The Department of Public Works and Highways' budget was set at P53.8 billion. The Education department gets the biggest, P56 billion; and Defense gets P39.9 billion.
Meanwhile, the House leadership virtually admits defeat in its attempt to put to a vote a recommendation to suspend Congressman Romeo Jalosjos.
The Mindanao bloc and first-termer congressmen insisted on hearing the side of Jalosjos first. It takes a 2/3 vote to ratify the recommendation. The leadership will call a caucus to get a reading of the congressmen's sentiments on the matter.
Tooth decay gave Jalosjos a respite from jail
CONGRESSMAN Jalosjos stepped out of jail today to see his dentist for a root canal. Judge Roberto Diokno approved the special pass. For that, the private prosecutors want him out of the case.
Jalosjos left the Makati City Jail at 6:00 this morning, and was treated by his personal dentist in the posh Forbes Park Subdivision.
Prosecution lawyers objected to the court order allowing Jalosjos to leave jail. The judge gave the go-signal on a Saturday. Prosecutors had no chance to question it since it was a non-working day.
But prisoners like Congressman Jalosjos have rights too. Under the law, sick prisoners who require treatment shall be transferred to a place where medical facilities are available. Judge diokno says he is only doing his job.
But the Justice department remained silent about the issue. They are now thinking of asking Diokno to inhibit himself from the case. Diokno says that's alright with him.
The warden of the Makati City Jail refuses to comment on reports that Jalosjos is getting special treatment. Sources say Jalosjos had already left his cell and is now in the newly-renovated, airconditioned quarters of the Deputy Jail Warden.
Jail officials also recently accepted donations of four toilet bowls, four gas stoves, two ceiling fans and a refrigerator from Jalosjos.
His cellmate, Ferdinand Marcos, says Jalosjos did this to help his fellow inmates.
Phone rates to go up this week
PLDT, Bayantel and Globe Telecom, will apply for increases in their basic monthly fees within the week.
PLDT will ask for a P120 or 48 percent increase in its current monthly rate of P250 for residential subscribers, and a P180 or 31 percent increase for commercial users.
Bayantel will seek a P100 or 35 percent increase for residential users, a P150 to P200 hike for commercial subcribers.
Globe Telecom wants a 44 percent increase or P118 for residential users; for corporate clients, a P150 to P198 increase.
The phone companies say the increase will compensate for an impending cut in international call rates.
PLDT's Antonio Samson, says the new rates will be imposed until they shift to a call metering mode scheduled to be in place by the end of the year.
At the stockmarket, it is still another all-time high despite expectations the market would start the week with a minor correction. The market rose for the fourth straight trading day, up by 25 points.
Philippine Stock Exchange Chairman Wilson Sy, says foreign funds kept pouring in with the country's corporate earnings results being higher than others in the region.
PFF Cup starts in South Cotabato and Davao
THE PHILIPPINE Football Federation Under 19 Cup has kicked off in South Cotabato and Davao.
In Koronadal, the Guillamac Booters lead the early winners. They are unbeaten in two games.
In Davao, Canon Printers crushed Ateneo de Davao University, 11 to 0. Maryknoll High, Rizal Memorial Colleges, and Maryknoll High Lupon, also scored easy wins.
Ninety teams from the country's 14 regions are competing in the cup. The games will be played nationwide all the way till May.
In boxing, a grudge match between WBC featherweight champion Luisito Espinosa and former titlist Manuel Medina of Mexico. They will slug it out on March 22, at the Luneta Park. The match is dubbed "The Battle of Manila Bay Part 2".
It will be Espinosa's 4th title defense of the crown he took from the Mexican, with a hard-fought unanimous decision in 1995 in Japan.
Espinosa admits the bout will be as tough as the first. "King Louie" has been running 20 kilometers daily, but reportedly has been having problems finding worthy local sparring partners.
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President Ramos honored 10 Outstanding Young Filipinos
THE PRESIDENT honored 10 Filipinos for their achievements here and abroad. Olympic medalist Mansueto Velasco led the 10 "Outstanding Young Filipino" awardees.
Other awardees were ballerina Lisa Macuja, trackster Elma Muros-Posadas, concert pianist Jovianney Emmanuel Cruz, filmaker Carlitos Siguion-Reyna, businessman Johnlu Koa, Professor Graciano Yumul, Dr. Arturo Pesigan, Surgeon Rafael Bondoc, and Department of Environment and Natural Resources Asst. Secretary Ramon Paje.
ABS-CBN also gave recognition to several people for their determination to overcome the odds.
Norma Gohetia received the "Bayaning Pilipino Award" for helping hundreds of families in her communtiy. Despite Parkinson's disease and poverty, she set up various projects to provide others a living.
Other awardees: the Besao Multi-purpose Cooperative, for the "Samahang Pilipino Award"; the Davide family, for the "Pamilyang Pilipino Award"; and Encarnacion Montales, "Filipino Overseas Worker of the Year".