Subject: [NEXTEL-1] Fmr. Presidential Adviser Could Be Involved In Nextel's "Dirty Deeds"

From: Marcel <[email-masked]>
Date: Wed, 09 Apr 2003 02:45:54 -0400

Fmr. Presidential Adviser Could Be Involved In Nextel's "Dirty Deeds"
Is Climaco involved in the Nextel buyout?
By LENIE LECTURA
TODAY Reporter

Is former Presidential Adviser on Strategic Projects Gloria Tan Climaco involved
in the controversy about the real ownership of Nextel Communications Philippines
Inc. (NCPI)?
Based in an affidavit executed by Nextel’s former president, Antonio Urera, Rep.
Prospero Nograles said Monday that Urera gave hints that Climaco had been
involved in Nextel’s alleged scheme to circumvent the law on foreign ownership.

Nograles and Rep. Harlin Abayon of Northern Samar are seeking an inquiry on NCPI
following reports that Filipino dummies have been used in order to get around
the constitutional prohibition against foreign companies and individuals owning
more than 40 percent of any corporation or association organized under
Philippine laws.

Urera has revealed in a sworn statement that Nextel International Inc. (NII), a
foreign firm, has taken full control of NCPI despite the constitutional
prohibition.

Urera said in his affidavit that NII used dummies to buy out Filipino holding
companies that have interests on NCPI in order to take majority control of the
telecom firm. He said the NII now has “almost full and absolute control of NCPI”
with a staggering 87.7-percent equity interest.

According to Nograles, what is startling about the testimony of Urera are hints
that Climaco, who is in the thick of a controversy for her alleged role in the
government’s decision to scrap its deal with the Philippine International Air
Terminal Co. (PIATCO), may have a key role in the NII’s buyout of the Gotesco
Group owned by Jose Go, which has a 20-percent equity interest in the old NCPI.

“It was not clear how Climaco figured in the NII scheme to take full control of
the NCPI, but I suspect that she is directly involved in this mess,” Nograles
claimed.

Nextel was launched in 1996 after Nextel International Inc., a US-based firm,
entered the country’s telecommunications industry by purchasing a company called
Top Mega, a Hongkong-registered company holding 30-percent interest of Infocom
Network Inc.  (infocom), a local telecommunications carrier.

Another foreign-registered company called Joyce Link owned 10 percent of
Nextel’s equity while the remaining 60 percent belonged to the Gotesco Group
owned by Jose Go ( 20 percent), Jetcom Inc. owned by Bernard Asperin and Food
Camp Industries represented by Johnny Wong.

According to Urera, after securing 30-percent equity interest in infocom which
is supposed to be Nextel’s carrier, NII worked its way to gain control of
infocom by buying out the 20-percent interest of Gotesco, using a company called
Gamboa Holdings Inc., with $9-million paid in three installments.

Using what Urera described as “sophisticated scheme of indirect purchases,” the
NII managed to make it appear that a qualified, Filipino-owned third-party
purchaser, Gamboa Holdings, would acquire Gotesco’s share in infocom.

Gamboa, which was incorporated by accra Investment Corp. (ACCRAIN), was put
together days before the intended acquisition of Gotesco. Strangely, 40 percent
of Gamboa’s common share belongs to Top Mega, a corporation wholly owned by NII.

According to Urera, after the Gotesco buyout, the NCPI ownership belonged to Top
Mega Inc. (30 percent), Joyce Link Inc.( 10 percent), Jetcom Inc. (32.3
percent), Gamboa Holdings (20 percent) and Foodcamp Industry and Marketing Inc.
(7.7 percent).

In July 28, 2002, the NII also acquired Joyce Link from the AIG Group while
ACCRAIN,
the majority stakeholder of Gamboa, incorporated another company called Emerald
Investments Inc. in partnership with another company called Orient Holdings
Ltd., another NII subsidiary.

Emerald Investments was used to acquire the shares of Foodcamp Inc., which holds
7.7-percent equity in NCPI. Emerald Investments went on to acquire the 30
percent of 32.3-percent share of Jetcom Inc. for $3.7 million.

“To date, NII, through it’s subsidiaries, has accumulated 40-percent ownership
of the capital stock of NCPI through the purchase of Top Mega and Joyce Link and
roughly 19.08 percent indirect foreign ownership in the capital stock of NCPI
through the shares it purchased in Emerald and Gamboa for a total of 59.08
percent in interest in the capital stock of NCPI,” Urera said.

“ Since the entire capital contribution of accracor in Gamboa and ACCRAIN in
Emerald virtually came from NII, coursed through a financial institution which
facilitated the transaction, it appears that the total equity interest of NII in
NCPI is practically a staggering 87.7 percent -- thus giving NII, a foreign
company, almost full and absolute control of NCPI,” Urera added in his
testimony.

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