Babauta: What letter from RP’s DTI?

Gov. Juan N. Babauta said he is unaware of the purported letter of the Philippine government to his office backing the sale of Verizon to Pacific Telecom Inc.

Babauta said his office has no record receiving such a letter.

“If I received it, I should have responded, but there’s none,” he said.

PTI earlier presented a Sept. 27, 2004 letter reportedly signed by acting DTI Secretary Thomas G. Aquino to Babauta, urging the latter to display a fair stance on the proposed telecom purchase.

Babauta said his senior policy advisor, Robert Schwalbach, has inquired with the Philippine Consulate General on the existence of the letter, but the diplomatic office was said to be not aware of it, too.

“According to the consul, the protocol is that any communication from the RP government to the CNMI government would come through the Consulate. The consul has never received the Sept. 27 letter,” said Schwalbach in a letter.

The Executive Branch said the diplomatic post would verify with the Philippine government as to the existence of the letter and as to why it has not been delivered through regular channels.

At the same time, the administration has asked the consulate to be provided with information regarding the rules on foreign ownership in the Philippines.

For instance, it noted that the Philippine government applies restrictions on foreign equity investment such as in media and local transportation.

“I would be particularly interested in regulation of foreign ownership in the telecommunications industry,” said Schwalbach in a letter to Philippine Consul Wenceslao Gayola.

The Sept. 27 letter, a copy of which was sent to Saipan Tribune by PTI last Nov. 14, said PTI’s proposed investment in the CNMI would further strengthen the bond between the Commonwealth and the Philippines.

“We in the Philippine government have been keenly watching developments in the Verizon/PTI transaction for quite some time. As you may know, the principals of PTI are well known in the Philippine business community, and we at the DTI would like to help in any way possible,” the letter said.

Aquino, in the letter, noted the delay in the approval of the proposed telecom deal due to Babauta’s reservations.

PTI and Micronesian Telecommunication Corp. jointly filed with the Commonwealth Telecommunication Commission the application for the approval of the Verizon sale to PTI on Sept. 5, 2003.

The Philippine official cited that the Federal Communications Commission had approved the telecom deal.

After a series of objections, the governor is now asking the CTC to strip Verizon of part-ownership of the only fiber optic cable in the CNMI, consistent with his declaration to break the company’s monopoly of the cable facility.

“We earnestly hope to see from your administration a fair stance towards PTI. The Philippine government stands behind them, and will support them in their efforts,” Aquino said.