Biz Buzz: Tetangco’s third ‘A’
For the third time in his term, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. has been given an “A” in Global Finance magazine’s annual grading of central bank heads from around the world.
Tetangco—who is serving a second six-year term as BSP head—found himself in the same league as six other A-listers such as Reserve Bank of Australia Governor Glenn Stevens, Bank of Israel Governor Stanley Fischer, Bank Negara Malaysia Governor Zeti Akhtar Aziz, Taiwan’s Fai-Nan Perng and Lebanon’s Riad Salameh.
“During one of the toughest years on record, the world’s central bankers were tested as never before,” said the magazine, which has been running the annual grading since 1994.
Just how tough? Tough enough for Federal Reserve chairman Ben Bernanke to receive just a “C” for the period, while ECB boss Jean-Claude Trichet got a “B-”.
Tetangco’s third “A” grade puts him a notch ahead of his predecessor, the late Rafael “Paeng” Buenaventura, whose bragging rights included having aced the ranking two years in a row, ahead of the legendary Fed chairman Alan Greenspan (who also got a grade of “C”).
With his third “A”, the BSP chief proved himself wrong, as he predicted that last year’s top grade would not be repeated due to rising inflationary pressures and growing complaints from local consumers.
Well, surprise surprise. The international community apparently felt that Tetangco’s BSP did a better job than its peers abroad.—Daxim L. Lucas
Still sharp
Speaking of central bankers, former BSP Governor Gabriel Singson remains sharp as ever 12 years after his own colorful and distinguished stint running the country’s central monetary authority.
Nowadays, Singson advises both the Ateneo de Manila University (his alma mater) and the Philippine Province of the Jesuits on their finances and investments (the former having investible funds of more than “$100 million” according to one source).
He also serves as “adviser” for practically every taipan in the country, while sitting on the boards of various corporations—when he’s not on the golf course, that is.
His constant companion nowadays is a trusty iPad (he hasn’t gotten around to upgrading to the iPad 2 yet) which supplies him with an endless stream of economic data and financial news, courtesy of the free Bloomberg app.
Singson (who helped the country dodge the worst of the 1997 East Asian financial crisis) still maintains his routine from his days as central bank chief.
He checks the US financial markets before going to bed every midnight, then checks on them again when he rises at 6 a.m., then onto the local financial markets at 9 a.m.
Apart from deftly dealing with the Asian crisis, Singson is also credited for having “talent-spotted” BSP Governor Tetangco and Deputy Governor Nesting Espenilla early in their careers.—Daxim L. Lucas
Last three months
The clock is ticking for publicly listed companies to widen their public float to remain on the roster of the Philippine Stock Exchange.
Indeed, the local bourse issued a “friendly reminder” as the 12-month grace period to comply with the 10-percent minimum public ownership as a requirement for continued listing nears its end on November 30.
Non-compliant companies (there are a little over 40) of course can simply pay the monetary fine and sit idly for 36 months more before facing trading suspension and eventual delisting from the PSE. However, there may be reduced appetite on the trading of their shares, as only transactions involving shares of compliant companies will still enjoy the preferential tax rate of 1/2 of 1 percent of gross selling price.
The Bureau of Internal Revenue has indicated that it would slap the 5- to 10-percent capital gains tax on trades of non-compliant companies by November simultaneous with the lapse of the PSE’s grace period. Minority investors have no power to influence the initiatives of investee companies to comply with the public float requirement but they can, at the very least, opt to rid their portfolio of stocks where tax burden will only outweigh potential returns.—Doris C. Dumlao
East West ‘driver’
East West Bank, the banking unit of the Gotianun group, is stepping up its campaign to grow its consumer lending business.
The bank, which earlier acquired AIG Philam Savings Bank and more recently, Green Bank (its ticket to microfinance), has now enlisted hunk actor Derek Ramsey in its auto lending campaign called “Auto Loans Free Gas” which will be unveiled this week.
Ramsey was selected by the bank as its celebrity endorser as he personifies the auto loan customer who likes using his vehicle to tour cities and see places.—Doris C. Dumlao
Those MRT ads
It seems that Transportation Secretary Mar Roxas has more work ahead when it comes to cleaning up contracts linked to the MRT and LRT lines.
After the DPWH and MMDA implemented stricter policies for advertising billboards along major thoroughfares, one advertising agency seems to have given the Department of Transportation and Communications (DoTC) the slip by securing an advertising contract and installing new ads along the MRT line at the Guadalupe, Buendia, Ayala and Magallanes stations, supposedly without the necessary permits.
In a letter addressed to MRT-3 general manager Honorio Vitasa, DPWH assistant district engineer Francisco Garces reminded the rail operator about the order of Public Works and Highways Secretary Rogelio Singson requiring billboard advertisers to secure structural clearance from their office, and that billboards of violators should be dismantled immediately.
As such, Garces required MRT-3 to “please allow this office or our authorized representatives to enter into the MRT premises to dismantle your illegal advertisement along MRT-3 line and Buendia MRT station.”
Garces, likewise, mentioned in the letter that DPWH would like “to find out who gave the authority for the installation of the new commercial advertisement along MRT line at the Guadalupe, Buendia, Ayala and Magallanes, Makati.”
It was learned that the outdoor advertising agency involved in this incident—which claims to have a contract with the DoTC—is the subject of an existing court order issued in 2010 upholding the annulment of its contract with MRT due to its supposed failure to pay P367 million in fees despite repeated demands.
Based on a court ruling issued last year, no advertising in whatever form can be placed by this outdoor ad agency along the MRT-3. Why are the ads still there? We can only scratch our heads and wonder.—Daxim L. Lucas
Telco report withdrawn
A preliminary report of the Senate committee on public services found its way to the hands of certain reporters last week, a few days before the August 26 deadline “imposed” by PLDT for the government to make up its mind on the legality of its P69-billion merger with Gokongwei-owned Digitel.
The report highlighted that “the proposed acquisition … is consistent with, and not in violation” of legislative franchises granted to PLDT and Digitel, which operates the Sun Cellular brand.
The report surfaced amid last-minute jockeying and lobbying by both PLDT and Ayala-controlled Globe Telecom, which is opposed to the supposedly “monopolistic” entity that will result from the merger.
The committee report was released despite having the signatures of only four senators on it.
The report was withdrawn posthaste after other senators started questioning its contents, our source said.—Daxim L. Lucas
