Senate panel concurs with House decision to transfer Mislatel ownership to consortium
MANILA, Philippines — A Senate panel has concurred with the House of Representatives’ approval of the transfer of the ownership of Mindanao Islamic Telephone Company Inc. (Mislatel) to its partners in the Mislatel Consortium.
The consortium, led by businessman Dennis Uy’s Udenna Corporation, was named the provisional third telecommunications player in the Philippines last November 7.
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As chair of the Senate committee on public services, Senator Grace Poe on Monday endorsed for plenary approval House Concurrent Resolution No. 23, allowing the transfer of Mislatel’s majority shares to the consortium.
READ: House panel OKs transfer of Mislatel control to Dennis Uy group after 2 meetings
Poe explained that the consortium has 90 days to comply with its post-qualification requirement, including capital infusion into Mislatel, the holder of the congressional franchise.
Article continues after this advertisement“As necessitated by Mislatel’s franchise granted under Republic Act 8627, the Congress needs to approve the ‘transfer, sale, or assignment of the controlling interest of Mindanao Islamic Telephone Company Inc. due to the capital infusion of the Mislatel Group into Mislatel itself,” the senator said in her sponsorship speech.
Article continues after this advertisement“As regards the ‘red flags’ and ‘allegations of violations’ against Mislatel, interested parties are never precluded to avail of legal remedies in the regular courts. As a matter of fact, the Congress is not even precluded to alter, modify, or repeal the franchise granted to Mislatel under RA 8627,” she pointed out.
Besides, Poe said, the consortium would lose more than P25 billion if it fails to comply with its commitments.
“If Mislatel fails to deliver on their promises, they are going to lose their bond, they will also lose a big chunk of their capital expenditure,” she said.
The senator specifically noted Mislatel’s promise to cover 37 percent of the population with minimum average internet speed at 27 megabits per second in the first year.
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“Mr. President, it is for the aforementioned reasons that I stand here today to sponsor House Concurrent Resolution No. 23 to be considered by the collective wisdom of the Senate and all its members,” Poe said.
“Regardless of the outcome of House Concurrent Resolution No. 23, the Congress and the Senate will never abdicate its powers as regards the franchises it has granted, will be granting and will be renewing or not renewing,” she added.
Poe’s committee conducted an inquiry on the government’s selection of the third telco. /ee
