Ongpin rapped for LBP deal

A private complainant with a history of litigation against the Land Bank of the Philippines on Monday filed a complaint against the government bank, along with businessman Roberto V. Ongpin, over its 2008 sale of shares in Manila Electric Co.

The complainant, Emilio Aguinaldo Suntay III, filed his complaint with the Office of the Ombudsman, and named as respondents Landbank itself, its president Gilda Pico and former Finance Secretary Margarito Teves.

Also named respondents were San Miguel Global Power Holdings Inc. officials led by its chairman Ramon Ang, counsel Estelito Mendoza, as well as “public respondent” Supreme Court Justice Lucas Bersamin.

The case involves Landbank’s decision in late 2008 to sell 46 million shares of Meralco to SMC Global for P90 a share, for a total of P4.12 billion at the height of the fight for control of Meralco by the San Miguel and PLDT groups. Meralco’s controlling shareholder then, the Lopez family, sided with the PLDT group.

Reminiscent of an earlier issue regarding the sale of the Development Bank of the Philippines’ shares in Philex Mining Corp. to Ongpin, Suntay questioned why Landbank sold its shares to the SMC group—citing a news report as evidence—when a better offer had been made by the rival PLDT group, resulting in an opportunity loss for the government.

Suntay and the Landbank have had legal tussles before, with the former having gone after the latter—unsuccessfully—for additional compensation over his family’s properties, which were declared agrarian reform lands.

The Inquirer learned that Suntay was able to acquire the Meralco shares in question as compensation for his family’s property, but that the Supreme Court had eventually declared that transaction null and void.