Manila Electric Co. president Jose ?Ping? de Jesus has called to clarify reports that his recent sale of 40,000 shares of Meralco stock may have been improper, given his current position as head of the controversial utility. According to De Jesus, he bought his Meralco shares in increments over a long period, before he assumed the leadership of the Lopez-controlled company.

Stock market rules only allow board members and other officers of Philippine corporations to make a profit through the sale of stocks in their own companies if they had bought them at least 60 days before they were unloaded. De Jesus is way past the holding period, having bought his last batch of Meralco shares last year.

As president and board member of the company, De Jesus has had to disclose the sale of his Meralco stock ? and to declare that he still keeps some more shares (a lot less than the amount he sold off) in his name. De Jesus made a tidy profit of up to 40 percent on his original stake, depending on what price he had bought the shares in the past.

The affable and hardworking Ping understands that his assumption of the Meralco presidency last month comes at a ?challenging? time. But De Jesus, who was installed by the Lopezes in Meralco after his stellar work as chief executive and architect of the Manila north tollway (which the Lopezes sold to Manny Pangilinan recently), says he still hopes the shareholder factions now a-forming in the utility can come to an out-of-the-boardroom settlement and avoid a costly proxy battle come May.

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The Legacy scandal keeps getting bigger and bigger. Perhaps one of these days some really big personalities in politics and government would be found to have feasted on nearly half a billion pesos poured by thousands upon thousands of gullible Filipinos into the syndicated looting scheme that is the true legacy of the failed conglomerate.

Yesterday, a Metro Manila congressman admitted to receiving ?donations? from the defunct bank-and-pre-need combine, which a former top officer says represents a ?consultancy fee? paid to the lawmaker by Legacy owner Celso de los Angeles. At the same time, the top official of the Securities and Exchange Commission in charge of pre-need companies has been accused of being the ?protector? of De los Angeles? less-than-proper operations.

Testifying before the Senate yesterday, former chief finance officer Namnama Santos said Para?aque Rep. Eduardo Zialcita received 18 checks totaling P1.8 million from De los Angeles? pre-need firm Legacy Consolidated Plans Inc. The company also shelled a total of P38 million to bankroll De los Angeles? 2007 campaign for the mayorship of Sto. Domingo, Albay.

What service Zialcita provided to merit the funds from Legacy remains unknown. The congressman himself vehemently denies personally receiving any money from De los Angeles, or ?any involvement, in any capacity, official or unofficial, with the companies of the Legacy Group.?

According to Zialcita, De los Angeles and the Legacy Group footed the bill for various charity programs in Para?aque?s first district, including free caskets and financial assistance for burials, feeding programs for children and medicine and tuition assistance to deserving constituents. Why Zialcita is apparently listed in Legacy?s records as a consultant ?and how the money was disbursed to him?remains unclear.

On the other hand, former Legacy CEO Carolina Hinola accused SEC Commissioner Jesus Martinez of being ?a close friend? of De los Angeles who helped fix Legacy?s problems with renewing its dealership license in 2008 due to some deficiencies. Hinola said Martinez got Legacy to pay a certain Michael Lirio for a house and lot in Para?aque, which Martinez said was a gift to his son.

Hinola told the Senate that Legacy paid for the house, whose title was transferred to De los Angeles? son before it was deeded to Martinez?s son. Hinola added that she personally gave P1.475 million in cash to Martinez on Nov. 9, 2007 upon the instructions of De los Angeles as payment for a Ford Expedition SUV acquired by the Rural Bank of San Jose but which is now being used personally by the Legacy owner.

Martinez, who is the SEC commissioner in charge of pre-need companies and other non-traditional investment instruments, has flatly denied the charges. But the two women insisted that De los Angeles had frequently boasted to them of his close ties to the top regulator who is supposed to be closely watching his businesses for compliance with government rules.

Hinola and Santos are expected to continue their testimony this week, in fulfillment of their promise to prove that funds from the investors in Legacy made its way to the bank accounts of several politicians. Maybe soon, some really big friends and protectors of De los Angeles in government will be exposed.

Let?s see how high the stink of Legacy goes.