BAYAN RAISES RED FLAGS ON P3.6 BILLION MAHARLIKA–ATI DEAL
The planned P3.6 billion buy-in of the Maharlika Investment Corporation (MIC) in the privately-owned Asian Terminals Incorporated (ATI) raises serious constitutional and public trust concerns, says the Bagong Alyansang Makabayan (BAYAN).
In a recent disclosure to the Philippine Stock Exchange, ATI said MIC offered to buy up to 101.19 million common shares of the company at a fixed price of ₱36 per share, which will cause ATI to voluntarily delist from the local stock exchange.
Such fixed-price acquisition by the state-backed sovereign wealth fund is certain to benefit ATI’s private shareholders while transferring its financial risk to the public. Worse, delisting ATI from the stock exchange exempts it from the PSE’s disclosure and governance rules, reducing public scrutiny over the strategic port operator.
In effect, the buy-in will benefit, consolidate and protect ATI’s private shareholders while shielding them from public scrutiny and accountability. Worse, MIC will plunk in P3.6 billion in public funds in a private company in which it will have no controlling stake, no role in operations, nor guaranteed income. At a time when government is cutting down on ayuda for the poor, it is giving away money to the rich.
ATI manages and operates the Manila South Harbor, the Manila Inland Clearance Depot, Port of Batangas, Batangas Supply Base, and Tanza Barge Terminal. It also owns 35.71 percent of South Cotabato Integrated Port Services Inc., which operates the Makar Wharf in General Santos City.
Thus, ATI’s port operations are affected with public interest, are central to trade, the prices of goods, and have national security implications. The Constitution empowers the State to own, control and regulate such enterprises in favor of the people. The buy-in is contrary to this mandate. Public funds will be used to absorb private risk even as private entities retain control of the company while transparency and accountability is weakened.
This controversial ATI buy-in follows MIC’s questionable P4.42 billion bridge loan to Makilala Mining Company and its P19.7 billion investment in the National Grid Corporation of the Philippines (NGCP), all privately-owned corporations.
From being touted as a vehicle for national development, MIF is now exposed as a vehicle for subsidizing privatization, thus lining private pockets, with public funds.#
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