Will the Real Owner of PLDT Please Stand Up!

I was kind of shocked a couple years ago when the Supreme Court went out and said that PLDT – biggest telco in the country and one trusted (more or less) by generations of Pinoys – was not owned by Filipinos.  Apparently, it was owned by Indonesians via the Salim family’s First Pacific Group and they held over 50% of all the voting shares.  I was damned pleased when the SC declared that this was definitely illegal because it violated a line in the Constitution that says foreigners can’t own companies that provide things like power, water, and telco services.  But I got an even bigger shock recently when I read in the papers that those wily guys over at PLDT did – seriously dared to make – a workaround that let them off the hook.

PLDT has what’s called a beneficial trust fund (BTF); it’s a pension fund for employees who are ready to fly the coop after years in service.  Unfortunately, this BTF isn’t being used to give retirees comfort in their old age.  In fact, PLDT issued 150 million voting shares to BTF Holdings Inc., a company formed under the BTF.  This brought down the voting clout of the First Pacific Group from 58.4% to just 34.5%.  On the surface, it looks like they hunkered down and complied with what the SC told them to do and gave Pinoys the majority vote.  The truth, unfortunately, isn’t so good. 

I checked with someone I know who works at PLDT.  Apparently, PLDT employees are worried and are questioning the real purpose for the creation of the Fund and the companies formed under it: BTF Holdings and Media Quest.  Any dividends and income derived from the said voting shares have never gone into the Fund; PLDT uses the money for something else all together!  I can’t blame the folks at PLDT for running scared: they are not entitled to representation on the BTF board and they are being kept in the dark as to how its income is being used. 

Which all runs back to a question that remains unanswered to anyone’s satisfaction: who’s really calling the shots over at PLDT?  Is it still the good ol’ Pinoy company we grew up with or are the head honchos dancing to the tune the Indonesians are playing?  I wouldn’t be surprised if the SC suddenly decides to give them another look-see.