Press Release
December 21, 2007

PRESS STATEMENT OF SENATOR M. A. MADRIGAL ON TRANSCO

Despite public outcry, the Arroyo administration proceeded with the bidding of one the crown jewels of the Philippine power industry. The Filipino people deserve to know who will really have full control of the critical transmission facility of Transco. Is it the Chinese Government through its state-owned State Grid of China, or is it through some other shady and unknown foreign corporation? No one knows who will control a key service institution with serious national security implications. By law, Transco must be 60% Filipino owned.

Upon review of the corporate papers of A. Brown Company Inc., (ABCI)- (a member of the Monte Oro Grid Resources consortium) with the Securities and Exchange Commission and the Philippine Stock Exchange, we have discovered that, last May 2007 ABCI entered into an agreement with Baysfield Investments Limited (BIL) which subscribed to 300 million shares of A Brown Co., Inc. ("BRN") at the issue price of One Peso per share or a total subscription price of Three Hundred Million pesos. This subscription was critical as it increased the capitalization of ABCI. Without this major capital infusion, Monte Oro Grid Resources would not have been able to participate for the bid process of Transco. This means that, ABCI did not have the financial capacity. Hindi lang lutong macaw, patuloy pa nilang ginigisa ang taong bayan!

Upon verification, we note that Baysfield Investment is a 100% British Virgin Islands foreign corporation.

Further, we note that the PCD Nominee Corporation also has substantial interest in ABCI. Legal title is only being held by PCD Nominee Corporation and not beneficial ownership. Who is the beneficial owner of the PCD Nominee Shares in ABCI ? Is it another foreign corporation ? This anatomy of corruption using shell and nominee corporations should be unraveled.

Today I sent a letter addressed to Mr. Jose Ibazeta of PSALM demanding submission of the following on or before 27 December 2007:

  • The beneficial interests and ownership structure of Monte Oro Grid Resources Corporation, the successful bidder in the recent privatization of TRANSCO

  • The beneficial interests and ownership structure of the following companies that are part of the Monte Oro Grid Resources:

a.) Monte Oro Resources and Energy, Inc.,

b.) Calaca High Power Corporation

c.) State Grid of China

d.) A. Brown Company, Inc.

  • Copies of all the bid documents submitted by Monte Oro Grid Resources, including its business plan

  • Copies of documents relative to the USD250 million in in Standby Facility Support for the privatization of Transco to be extended separately by the Asian Development Bank and the World Bank.

Should Mr. Ibazeta refuse, I shall be forced to move for the issuance of a subpoena against him. Kung wala silang tinatago, dapat patunayan nila ito!

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