Biz buzz: Davao banker to be named new Landbank chief
A Davaoeño banker who ran a leading rural bank in the country for two decades is likely to be named by Malacañang as the next president of the state-owned Land Bank of the Philippines, the country’s fourth-biggest bank in terms of assets (P1.29 trillion as of end-June).
We’re talking about veteran banker Alex Buenaventura, the long-time president of One Network Bank (ONB), which used to be owned by the Consunji family until it was sold to BDO Unibank last year. ONB, as we all know, is a proponent of inclusive banking and a leading player in Mindanao.
A countryside lending guru, Buenaventura is seen to bring to Landbank his vast experience in dealing with small entrepreneurs, agro-industrial enterprises, farmers, cooperatives, rice millers and other key economic players. He previously headed the Rural Bankers Association of the Philippines (RBAP) and the Rural Bankers Research and Development Foundation Inc.
Beyond banking, Buenaventura served the education sector as a former chair of the board of trustees of Ateneo de Davao University (1995-1996) and likewise as a trustee of Holy Cross of Davao College Inc. (2000 to April 2016) and Davao del Norte State College in Panabo City (1997-2003). He is also one banker who knows how to deal with local government units, having chaired the municipal industrialization task force of Panabo City and as a director of Panabo’s Municipal Water District, both in the mid-1990s.
Buenaventura obtained his BA Degree at the Ateneo de Manila University’s College of Arts and Sciences (honorable mention in 1973) and MBA from the Catholic University of Louvain in Belgium (1977). —Doris Dumlao-Abadilla
‘Fox guarding the henhouse’
The banking community is eagerly awaiting not only President Duterte’s choice to head the Bangko Sentral ng Pilipinas once Governor Amando Tetangco Jr. ends his second term in mid-2017 (with the law expressly prohibiting a third term), but also the personalities the Chief Executive will name as the six other members of the policy-making Monetary Board.
This Monetary Board’s seven presidential appointees (including the governor) help determine the interest rates that, in turn, determine how much borrowers pay for their loans and, ultimately, how much the peso bills in the wallet of every Filipino are worth.
In addition to that, the Monetary Board also makes sure that banks play by the rules and are sanctioned if they do not (just like in the case of Rizal Commercial Banking Corp., which was fined P1 billion not too long ago for being linked to a money-laundering scandal).
To top it off, Monetary Board members are some of the highest-paid government officials, with salaries north of P5 million a year, on the average. Think of the group as a Supreme Court, of sorts, but dealing exclusively in financial matters.
To date, the jockeying for the slots that will be freed up over the next few months has not yet heated up. But Biz Buzz learned that there is at least one person who is trying to secure a slot this early.
Word on the street is that the man who wants to be appointed to the Monetary Board is a current ranking appointee of President Duterte to an executive department, but this is said to be a temporary assignment for him before giving way to another Duterte political ally next year.
Initially, Mr. Appointee (as we shall call him) was supposed to be named ambassador to one of the country’s most important foreign posts, but this slot went to a career official, so it seems that the former now has nowhere to go. It is perhaps because of this that Mr. Appointee is suddenly looking longingly at a Monetary board position—something he may very well get, since all the attention is on the jockeying for BSP’s governorship.
Here’s the thing: Mr. Appointee was previously embroiled in a high-profile banking controversy where he was the subject of a complaint filed by no less than banking regulators for his association with a shuttered bank.
The thing is, Mr. Appointee seems to have the President’s ear at this point although, admittedly, concerning other issues. But that proximity does provide him with opportunities to sneak in his opinions on banking matters to help convince the President to appoint him, we’re told.
But if the President does name Mr. Appointee to the Monetary Board (or even listens to him regarding his pending legal issues in the field of banking), it would be very much like appointing the proverbial fox to guard the proverbial henhouse. That can’t be good. —Daxim L. Lucas
Property shakeup 2
Property consultancy firm Leechiu Property Consultants (LPC) and CBRE Group Inc. on Thursday formally announced their strategic alliance, which will come into effect in January 2017, with LPC becoming the latter’s preferred provider for brokerage and consulting services for its clients in the Philippines.
“This is an exciting time for the real estate industry. The alliance brings us closer to being the No. 1 real estate brokerage business in the country by 2017. It will definitely strengthen our capabilities, and will pave the way for new possibilities for our clients. With our team of professionals, we are fully committed to delivering superior value and providing exceptional real estate solutions to our partners and clients,” said David Leechiu, LPC chief executive officer.
But CBRE’s long-time Philippine partner, property veteran Rick Santos, likewise had his own “brand transition” announcement to clients.
“Following a 23-year partnership, we have made the tough decision to end our affiliation with CBRE Inc. at the end of this year,” Santos said in an advisory to clients. Starting Jan. 1, 2017, he said his group would be in partnership with a “multibillion-dollar global real estate services brand. We shall announce the details of that partnership in the coming weeks.”
He said the Philippines was a pivotal component of the vibrant Southeast Asian economy and it was key that his group’s international partner would be “strategically aligned with the wider Asian region.”
“During our discussions, it has been of the utmost importance that we preserve our roots as a Philippine-controlled organization and leave ourselves best positioned in the market to provide the comprehensive range of professional real estate services that our global, regional and local clientele require,” he said. —Doris Dumlao-Abadilla
Ride sharing competition
Competition is heating up in the country’s ride-sharing business dominated by Grab and Uber—although not in a way most of us would imagine.
Apparently, the poaching of drivers is a growing trend in this sector. That usually happens when drivers are enticed to join the “other side” with juicy incentives and even pre-paid “load.”
One driver complained to Biz Buzz that he got calls from a representative of a rival ride-sharing operator at least once a week. Based on anecdotal evidence, we’ve heard that one operator was more aggressive in grabbing market share in this manner than the other player.
In any case, some of the drivers were baffled at this poaching strategy, since to switch over to the other side, they would need to secure another license from the government.
Of course, that was out of the question given a moratorium on new applications here imposed early on in the Duterte administration. (We’re assuming that all drivers out there are operating within full compliance of existing regulations, after all.)
With the generally sorry state of mass transportation in Metro Manila, many people still opt to take their cars and ride-sharing operators say they’re encouraging people to drive less.
In fact, Uber claims more people are using its carpooling service. And while they are fierce rivals, both Grab and Uber agree the current supply is not enough and they are lobbying government to lift its moratorium.
Eyes are now on the Land Transportation Franchising and Regulatory Board (LTFRB) on what happens next given its current review of ride-sharing rules. —Miguel R. Camus
