MANILA, Philippines – Despite legal obstacles, the House committee on legislative franchises approved the transfer and sale of the controlling interest of Mindanao Islamic Telephone (Mislatel) to Dennis Uy’s Udenna Corporation, Chelsea Logistics, and China Telecom.

The panel approved the proposal on Tuesday, December 11, despite opposition of lawmakers and DigiPhil, a subsidiary of Chavit Singson’s Sear Telecom, which participated in the bid for the 3rd major telecommunications slot.

DigiPhil legal counsel Dennis Manalo said they filed a case before the Pasig City Regional Trial Court against Mislatel for allegedly breaching an exclusive contract when it teamed up with Uy and China Telecom.

Mislatel previously said its tie-up with Uy was valid since it already “unilaterally terminated” the contract with DigiPhil last October.

Mislatel also accused DigiPhil of misrepresentation when it claimed that the 3rd telco bid was part of the contract. Mislatel said the contract was limited only to projects servicing areas with low internet access.

Manalo said the legal proceedings might affect the status of the congressional franchise of Mislatel.

Palawan 1st District Representative Franz Alvarez, chairman of the House committee, insisted that the legal feud between Mislatel and Digiphil is not the panel’s concern.

The lawmaker said the proposal will be taken up by the plenary next year. – Rappler.com