PLDT denies Lacson's claim, says deal is 'aboveboard'

(Updated)The Philippine Long Distance Telephone Co. (PLDT) denied claims made by a senator that the Yuchengco family was coerced into selling its holdings in a company that owned PLDT shares. The transaction between the group of Manuel V. Pangilinan – who chairs PLDT – and the Yuchengco Group – which owns equity in the Philippine Telecommunications Investment Corp. (PTIC) that in turn holds PLDT shares – was “commercial in nature," PLDT director Ray Espinosa said. “Since the completion of the purchase way back in November 24, 1998, we have had a continuing and good relation with the Yuchengco Group of companies," Espinosa said in a phone interview aired over 24 Oras. The transaction was later amended to reflect the increased purchase price because "the Yuchengco group wanted to preserve the agreed premium," Espinosa said in a separate statement. Helen Yuchengco Dee, daughter of Alfonso Yuchengco, remains a PLDT board member, Espinosa added. PLDT also maintains good business relationship with the Yuchengco Group which has interests in the Rizal Commercial Banking Corp. and Malayan Insurance. The Yuchengcos were “well-represented" when the deal was being threshed out. Espinosa also said he had no personal knowledge about Estrada's supposed involvement in the sale of Yuchengco shares in PLDT to the Pangilinan group. First Pacific bought an indirect 11.3-percent stake in PLDT by purchasing 52.7 percent of PTIC from various parties including Yuchengco fo $552 million. In 1998, PTIC controlled 21.5 percent of PLDT, In his privilege speech on Monday, Senator Panfilo Lacson claimed that Yuchencgo was pressured to convey PTIC's 7.75-percent holdings corresponding to about 2.018-million PLDT shares. Lacson added that Yuchengco “was pressed to sign a waiver of his right of first refusal over the PTIC shares of the Cojuangco-Meer group." “It was only after the passage of many years that I was to learn that Mr. Estrada, barely two months in office then, used the PNP to harass Mr. Yuchengco’s son, Tito, with threat of arrest on some trumped-up drug charges to force his father, Mr. Yuchengco to sell. This harassment of the young man was accomplished through deliberate and obvious physical surveillance," said Lacson, who once was Estrada’s police chief. In an affidavit in 2001, after Estrada was ousted from office, Pangilinan admitted that he issued a P20 million pay to cash check for Estrada in November 1998. Pangilinan denied that the donation was made in connection with the acquisition of PLDT shares after Estrada sought a donation among businessmen to establish a new political party. - GMANews.TV