Excerpts from PRIVILEGE SPEECH of Senator Enrile

VERNETTE G. UMALI-PACO

“Vernette G. Umali-Paco. Who is Vernett G. Umali-Paco? She is the Securities and Exchange Commission general counsel. What did she do? She issued SEC orders, grossly favorable to the Locsin group, which appointed both Locsin and Lokin as members of the three-man commission on election for the supposedly annual stockholders meeting of Philcomsat Holdings Corporation. She did not act on petitions for the cease and desist orders against Locsin group or for the appointment of a receiver or a management committee for Philcomsat Holdings. She refused to heed the plea of the majority stockholders of Philcomsat Holdings. And for that, according to the records of Philcomsat Holdings, at the time she issued her orders Philcomsat Holdings Corporation disbursed P250,000 in cash as PR for SEC matters.

The Securities and Exchange Commission was supposed to have received a substantial amount in exchange for an order favoring the Locsin group, and allowing this minority block of 2/3 vote versus a 1/3 vote of the majority private owners in an election of the Board of Directors in July 8, 2004."

4/20/06 "SEC Matters" P1,500,000 - long-overdue PHC Annual Shareholders' Meeting (ASM) was scheduled for May 9, 2006. On the evening of May 8, 2006, the SEC issued an ORDER indefinitely postponing the May 9, 2006 ASM based on a "COMMENT" filed by PCGG Comm. Abcede. This "postponement" kept the Locsin/Araneta directors entrenched on the PHC Board.

6/3/04 "Cash-PR (SEC)" P200,000