Back Mislatel franchise validity, Senate urged

The Mindanao Islamic Telephone Company Inc., (Mislatel) consortium is looking to the Senate to support the validity of its franchise that would allow it to operate as the country’s third telecommunications carrier, the company said at a hearing of the Senate public services committee on Wednesday.

“The key to the continuation of this project is in the hands of the committee,” said Adel Tamano, spokesperson for Mislatel, adding that the consortium was willing to face the risks that the process would entail.

Tamano maintained that the franchise of Mislatel remained valid because there was no action from Congress or from any court revoking it.

He also appealed to the Senate to concur with the House of Representatives’ resolution approving the transfer of Mislatel shares to its partners, Udenna Corp., Chelsea Logistics Holdings Corp. and China Telecom.

Court challenge

“We are doing the right thing, we have come to you, we are asking for your approval. Your approval will cure any deficiencies. And if we are challenged in court, with your approval, we can say there is no revocation of the franchise,” Tamano said.

Senate Minority Leader Franklin Drilon last week questioned the validity of Mislatel’s franchise, saying it should be considered revoked because it failed to operate within one year as required by law.

The transfer of the franchise to the current owners also had no congressional approval, Drilon said.

But the committee chair Sen. Grace Poe warned that even if the Senate decided in favor of Mislatel and approved the transfer of its controlling interest to allow the franchise to continue, it could still face problems and risks since the validity of its franchise could still be questioned in court.

Mislatel risks losing its performance bond if it is unable to meet its obligation, Poe said.

She said there was nothing to stop an interested party from filing a petition for quo warranto, questioning the validity of the franchise that had been transferred to the consortium.

More than the validity of Mislatel’s franchise, the more pressing issue concerning the third carrier is ownership, Senate President Pro Tempore Ralph Recto said during the hearing.

China Telecom stake

Recto noted that China Telecom comprised nearly 40 percent of Mislatel consortium, and that a pending bill to amend the Public Services Act would allow 100-percent foreign ownership of certain utilities.

This could make it possible for China Telecom to own 100 percent of the new telco player, he said.

Poe said that aside from the telco industry, China was also involved in a project to install security cameras in Manila and Davao City that would be connected to a central database.

Assistant Solicitor General Marra Salom explained that a quo warranto petition was needed to revoke Mislatel’s franchise, and that there were other issues involving the company that were best left to the courts.

Senate Majority Leader Juan Miguel Zubiri said Mislatel’s franchise was valid unless revoked by the court or by an act of Congress.

A quo warranto petition or a bill in Congress must be filed to repeal it, he said.

While these two “have not transpired in the issue of Mislatel,” Zubiri said that the House had passed a resolution approving the transfer of Mislatel shares.