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December 19, 2007 |
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PHILCOMSAT HOLDINGS: Court Tells Parent to Surrender Dividends The Sandiganbayan's Third Division has ordered the Philippine Overseas Telecommunications Corp. to turn over about PHP150.61- million in unpaid cash dividends to the government, the Philippine Star reports. POTC is the parent firm of Philcomsat Holdings Corp. In its resolution, the report says, the Sandiganbayan upheld the Presidential Commission on Good Government's earlier sequestration of POTC shareholder Polygon Investors and Managers Inc. on allegations that the firm, along with other business interests of Jose Africa, were partly-funded using the Marcos family's wealth. According to the Star, the Sandiganbayan also overruled Polygon's claim of being the proper repository of the stock earnings. "It is proper that [Polygon's] dividends just like that of the other sequestered corporations be put under the custody of this court is an escrow account at the Land Bank of the Philippines until its rightful owner is determined," the Court said, the newspaper relates. Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc. -- was incorporated on May 10, 1956. During the 70s and early 80s when the country experienced a boom in geophysical and drilling activities both offshore and onshore, Philcomsat Holdings was one of the active participants in search of oil. The company has since withdrawn from oil exploration because there was no commercial discovery of oil. On January 10, 1997, the company approved amendments to its Articles of Incorporation, changing its primary purpose from embarking in the discovery, exploitation, development and exploration of mineral oils, petroleum in its natural state, rock or carbon oils, natural oils and other volatile mineral substances to a holding company. According to a Troubled Company Reporter-Asia Pacific report on May 18, 2006, Philcomsat Holdings has not declared dividends for the past two fiscal years. Philcomsat is involved in an anomaly brought about by huge losses. The company reported a PHP6.965-million loss in 2004 and a PHP22-million loss in 2005. The Philippine Senate has initiated an inquiry into the matter. Moreover, according to press reports, a huge fraction of the shareholdings of Philcomsat, which is said to be ill-gotten, had been confiscated by the Government. |
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