Biz Buzz: Oppressed landlord
Normally, it’s an issue of an oppressive landlord versus an oppressed tenant. But probably not in this case.
Spanish mestizo businessman Carlos Ortoll is embroiled in a dispute with the owner of Chocolate Fire restaurant in Makati City due to the owner of the latter allegedly refusing to pay rent to Ortoll, who owns the space that the restaurant occupies (at the corner of V.A. Rufino and Leviste streets).
In fact, Ortoll’s camp says the lessee—Australian businessman Peter Parcell—owes them about P10 million in back rent covering the last five years that the restaurant has occupied the prime location.
Supposedly, the problem arose when both parties could not agree on the start of the reckoning period for the rental payments. While Chocolate Fire began to occupy the location in March 2009, actual operations began only a year later because the location had to be renovated.
A dispute soon arose and, to prevent Ortoll from ousting Chocolate Fire from the location, the latter filed a case against the former to determine the actual start of the lease period and recover some P587,000 in renovation costs. So Ortoll issued a check covering this amount, but surprisingly, the Australian businessman refused to accept it.
Ortoll’s camp suspects that the refusal to accept the payment is part of Chocolate Fire’s delaying tactics and that the latter will take further legal action to take advantage of the slow-moving judicial system in the country.
Of course, Chocolate Fire’s five-year lease on the property is set to end this Friday, Feb. 28, 2014, says Ortoll’s camp. But if something else comes up on the legal front, who knows? Maybe they’ll end up enjoying the location rent-free for several years more, at Ortoll’s expense. Poor businessman.—Daxim L. Lucas
Rebranding with Megan Young
Security Bank has embarked on a rebranding program and enlisted beauty queen Megan Young as its new brand ambassador. Young, who won the Ms. World tilt last year, symbolizes “world-class” banking, according to bank president Alberto S. Villarosa.
The bank has also adopted a new logo dubbed “perfect harmony”—a modernized yin-yang symbol (solidifying its old yin-yang emblem) colored in blue and green, depicting two parts “working together and coming together.”
The blue is a vivid version of the bank’s traditional all-blue motif and symbolizes change while acknowledging the values that have elevated Security Bank from a mid-sized player to the level of the big boys in the Philippine banking arena.
The introduction of the green hue in the logo is symbolic of the bank’s aspiration to put customers first and have them grow with the bank. Like other big players, Security Bank is going down-market with its five-year retail banking expansion strategy.
But Villarosa says in jest that there’s a hidden story behind the bank’s new blue-and-green logo: that is, to balance the perennially clashing interests of the La Salle- and Ateneo-bred staff in the organization. He says this was an observation first made by Manila Water CEO Gerry Ablaza upon espying the bank’s new logo.
Apart from this new relationship with Young, Security Bank is working on a new “bancassurance” partnership involving the cross-selling of insurance products. Security Bank executive vice president Rafael Algarra says there can be something concrete on this by the middle of this year. “That goes hand in hand with our retail banking proposition,” he adds.—Doris C. Dumlao
Aggressive No. 2
Things have been happening in the normally staid accounting world.
Auditing firm Manabat Sanagustin & Co. has announced the change of its name to R.G. Manabat & Co. (RGM & Co), coming on the heels of the recent merger of smaller firms Navarro Amper and Punongbayan & Araullo.
The name change is not just cosmetic as the local KPMG affiliate is very much bent on gearing up to maintain its status as the second-largest audit firm in the country (behind the SGV behemoth, of course).
Seven years ago, Roberto Manabat and Noel Bonoan took over management of the firm and grew it from just more than 300 people to its current complement of 900 employees. Both men’s advantage, of course, is their strong ties not just within the private sector, but within the government as well. The former used to be general accountant of the SEC, while the latter was an undersecretary in the Department of Finance and had oversight over the government’s main revenue-raising agencies.
Our sources said that Manabat and Bonoan have been in discussions with other firms to potentially acquire them. This, it is hoped, will make the audit and consultancy market more competitive and not subject to the pricing power of the dominant player. Asked to comment on his firm’s growth ambition, Manabat said: “We are not pursuing expansion for growth’s sake but are committed to a path of quality growth.”—Daxim L. Lucas
‘Bagwis’ agency
In fighting corruption, the Department of Trade and Industry reportedly chalked up the highest in net sincerity ratings among government agencies, based on the 2013 Social Weather Stations (SWS) Surveys of Enterprises on Corruption.
The DTI, tasked to ensure a more conducive business climate to attract local and foreign investors in setting up shop here, got a +58 Net Sincerity Ratings. This meant that it was the “most genuine and earnest” in implementing measures that would ward off any form of graft and corruption within a government agency.
“The DTI proved once again that it is ‘bagwis na ahensya ng gobyerno’ as we maintained ‘very good’ net sincerity ratings in fighting corruption in 2013,” said Trade Secretary Gregory L. Domingo during one of the agency’s flag ceremonies.
Domingo congratulated the DTI employees and urged them to continue serving the Filipinos and doing what is right. He acknowledged the employees’ hard work and dedication, even without a salary increase.—Amy R. Remo
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