Subject: [NEXTEL-1] Congressmen have charged trunk radio operator Nextel Communications Philippines Inc. with deceiving government

From: Marcel <[email-masked]>
Date: Fri, 14 Mar 2003 10:25:30 -0500

2/20/2003
Marcel wrote: <SNIP>

> Something is VERY Fishy here.
>
> Ok,  Nextel International last reported they sold their interest for Nextel Int in the
> Philippines for $500M , then the invested $500M back into the company.
>
> Now Next Mobile reports they have acquired majority stake in Nextel Communications
> Philippines, Inc. with a
> US$200 million capital infusion.
>
> So for $500M nextel has a minority stake in the business?

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Nextel is going to get caught on this one..........

"How Business Gets Done"-
                                            With Dummy Companies

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Friday, March 14, 2003

Nextel ownership questioned

Congressmen have charged trunk radio operator Nextel Communications Philippines Inc. with deceiving government by using dummies and intricate corporate
layering to circumvent Philippine laws.

In a statement, Representatives Harlin Abayon and Prospero Nograles said Nextel
has layered its ownership structure using Filipino dummies in order to go around
the Constitutional prohibition for foreign companies and individuals to own more
than 40 percent of any corporation or association organized under Philippine laws.

Nextel Communications Philippines was launched in 1996 after Nextel
International Inc. (nii), a US-based firm entered the country’s telecommunications
industry by purchasing a company called Top Mega, a Hong Kong-registered
company holding 30 percent interest in Infocom Network Inc. (icni), a Philippine
telecommunications carrier.

Another foreign-registered company called Joyce Link owned 10 percent of
Nextel’s equity, while the remaining 60 percent belonged to the Gotesco Group
owned by Jose Go, Jetcom Inc. owned by Bernard Asperin and Food Camp
Industries represented by Johnny Wong.

The company, which prides itself as the only carrier in the country that
incorporates in one handset a two-way radio service, a mobile telephone service
and sms (short messaging service), has failed to break through the local
telecommunications market that has been dominated by Globe Telecom and Smart
Communications.

According to Abayon and Nograles, they would file a resolution next week to seek
an inquiry on Nextel’s real ownership.

Mel Velarde, president of Nextel, refused to comment on the matter when
interviewed during the launch of Nextel’s new identity, Next Mobile, Wednesday
night.

Gamboa Shareholdings Inc. and Emerald Investments Inc. own the 60-percent
equity in Nextel reserved for Filipino corporations.

nii holds 40 percent each in Gamboa Shareholdings and Emerald Investments.

The two congressmen allege that NII used a Hong Kong-registered company
called Orient as its shareholder for Gamboa Shareholdings and Top Mega for its
interest in Emerald Investments Inc.

According to Nograles, the Nextel’s structure was layered and compartmentalized
in such a way that NII would have majority stake over Nextel Philippines.

Article 12, Section 11 of the Constitution provides that “no franchise, certificate, or
any other form of authorization for the operation of a public utility shall be granted
except to citizens of the Philippines or to corporations or associations organized
under the laws of the Philippines at least 60 per centum of whose capital is
owned by such citizens . . .  the participation of foreign investors in the governing
body of any public utility enterprise shall be limited to their proportionate share in
its capital and all executive officers of such corporation or association must be
citizens of the Philippines.”

If found violating the law, NII would be forfeited its congressional franchise and
completely banned from operating in the Philippines, Nograles said.

In a Nextel statement, the company said Maxwealth Consultant Ltd. is the partner
of the Velarde Group in forming the Next Mobile consortium.
-- Sheryll B. Casanova

http://www.manilatimes.net/national/2003/mar/14/business/20030314bus10.html