Subject: [NEXTEL-1] Investigation into Nextel ownership seen imminent

From: Marcel <[email-masked]>
Date: Sun, 20 Apr 2003 14:57:13 -0400

Monday, April 21, 2003

Investigation into Nextel ownership seen imminent

An administration congressman has warned that Congress might cancel the
legislative franchise of Next Mobile, formerly Nextel Communications Philippines
Inc. (NCPI) if it is proven that the telco has circumvented the country’s corporate
laws to allow foreign majority ownership.

Rep. Prospero Nograles also disputed the claim made by Nextel legal counsel
Justinian Adviento that the congressional investigation of Nextel would be “futile.”
Nograles believes that there is a strong case against Nextel which can become a
basis for the cancellation of the company’s congressional franchise.

Nograles said that apart from the testimony of Antonio Urera, Nextel’s former chief
executive officer, he also has documents suggesting that the company has
violated the Constitution.

“I’ve read through the documents and it looks like there’s a prima facie case
against Nextel if we talk about the cancellation of its franchise,” Nograles said.

Nograles revealed that the House Committee on Transportation and
Communications have already scheduled after the Holy Week recess an inquiry on
allegations that Nextel used dummies and an intricate corporate layering scheme
to conceal its true state of ownership.

The inquiry was sought by Nograles and Northern Samar Rep. Harlin Abayon
following reports that Nextel International Inc.(NII), a purely foreign-owned firm,
has taken full control of Next Mobile. If this were true, Nograles said, Nextel’s
present owners have violated the Constitution and other laws related to the
country’s anti-dummy policy.

Nograles also said that Congress should also look into the involvement of Gloria
Tan-Climaco, former presidential adviser on strategic projects, into Nextel’s affairs.

Recently, Climaco has been at the center of controversy because of her
involvement in the dispute involving the government and the Philippine
International Air Terminal Co. (PIATCO), which built the NAIA Terminal 3.

In Urera’s testimony, he said that Climaco had a hand in NII’s buy-out of the
Gotesco Group owned by Jose Go, one of the companies that previously owned
20-percent equity interest on the old NCPI. Gotesco’s holdings went to Gamboa
Holdings, one of the alleged dummy companies of NII.

Urera said NII managed to wrest control over Nextel through a series of buy-outs
involving the company’s original stakeholders. At present, he said Nextel is now
87 percent owned by NII.

Next Mobile legal counsel Justiniano Adviento has reiterated in two earlier
statements that the SEC has already settled the matter in the company’s favor.
-- Sheryll B. Casanova

http://www.manilatimes.net/national/2003/apr/21/business/20030421bus12.html

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