Malacañang keeps hands off on Ombudsman’s probe of Meralco deal involving Poe, Binay backers

Business Miror
by Butch Fernandez - September 30, 2015

MALACAÑANG on Wednesday played down fears in the markets it had anything to do with an ongoing Ombudsman inquiry into a supposed “sweetheart deal” involving the government financial institutions’ (GFIs) 2009 sale of Meralco shares to businesses coincidentally seen as supporters and potential donors of the two closest rivals of administration standard bearer Manuel R. Roxas in the 2016 elections.

“The Ombudsman is an independent office that guards its mandate of independence fiercely,” said Secretary Edwin Lacierda, President Aquino’s chief spokesman.

The Palace official was reacting to reports that the Ombudsman’s investigation of the six-year-old transaction may be intended to scare businesses said to be identified with groups inclined to support 2016 presidential derby front-runner Sen. Grace Poe or Vice President Jejomar Binay instead of Roxas, President Aquino’s “anointed” candidate to succeed him.

Earlier reports said the investigation of a deal done six years ago had raised eyebrows since the GFIs even reaped a substantial windfall when Meralco shares then trading at P60 were sold at P90.

Asked if the Palace will look into the matter, Lacierda indicated the Office of the President is taking a hands-off stance, assuring it will respect the Ombudsman’s independence.

“Who, how and what the Ombudsman decides to investigate is entirely their decision,” Lacierda added.

The Ombudsman itself had earlier confirmed the ongoing probe of an alleged sweetheart deal involving the Social Security System’s approval of a block sale of Meralco shares to a company identified with businessman Roberto Ongpin, even if the sale was reported to have “made a significant premium.”

The GFIs involved in the deal, including the Government Service Insurance System, was also said to have reaped P17 billion in windfall profit.

Other GFIs reported to have benefitted from disposing their Manila Electric Co. shares then were the Development Bank of the Philippines and the Land Bank.

The report, however, withheld the identities of other personalities also being linked to the Meralco-deal inquiry, but added that coincidentally, they are known to be backing Binay or Poe. source