Posted on: Tuesday, January 13, 2004
U.S. subpoenas Filipino executives visiting Hawai'i
By Sean Hao
Advertiser Staff Writer
Thirty visiting Filipino executives attending a telecommunications conference in Hawai'i were served summonses over the weekend by the U.S. Department of Justice.
The department's antitrust division is investigating possible anti-competitive practices among Philippine telecom companies that provide services to U.S. and international communications companies, department spokeswoman Gina Talamona said.
The Philippine government questioned whether the timing of the subpoenas was intended to embarrass both the Filipino executives and the government. On Sunday Philippine Foreign Affairs Secretary Delia Domingo Albert lodged a complaint on the matter with Francis Ricciardone, U.S. ambassador to the Philippines.
Philippine Long Distance Telephone Co. and Globe Telecom Inc. are among the Philippine phone companies subpoenaed.
The companies in question are battling AT&T and MCI International over termination rates, according to the Philippine Daily Enquirer. Those are the rates paid by domestic carriers to complete calls on the networks of foreign carriers.
"This was an issue that has been resolved through negotiation and dialogue between our telecommunications authorities," Albert said in a news release. "This action goes against the understandings we had achieved through negotiations. This is inconsistent with what has been discussed and is an action that we would not expect from a close friend and ally."
According to Albert the executives were subpoenaed to testify before a grand jury in Honolulu this week. The Justice Department confirmed that it was conducting an investigation, but would not provide further details.
The executives were here for a Pacific Telecommunications Council conference at the Hilton Hawaiian Village.
Bruce Drake, conference chairman, said he was surprised by news of the subpoenas, but that he supports the Justice Department's actions.
Bloomberg News Service contributed to this report. Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
