Biz Buzz: Mining debate, part 2?
The mining forum jointly organized by Financial Executives Institute of the Philippines (Finex), Management Association of the Philippines (MAP) and Philippine Chamber of Commerce and Industry (PCCI) last Friday was a certified blockbuster. Hotel Intercon’s grand ballroom was filled to capacity as about 600 people—double the 250-300 originally expected by organizers—came to witness the equal passion by which pro- and anti-mining advocates argued their case ahead of the issuance of an executive order/mining policy framework under P-Noy’s regime.
Both sides were well-prepared for battle, which many people say isn’t the same with the impeachment trials against Chief Justice Renato Corona.
Given the huge interest in mining (except for the EO jitters that have tempered share prices of most mining stocks), a mining forum part 2 may be in the making, one where other key stakeholders will be represented. “(We) will still discuss if various parties are willing to attend as we would like to include LGUs [local government units], IP [indigenous people] and small miners,” said MAP president Eduardo Francisco.
For part 2, the organizers may also want to bring in foreign guests from Australia, Canada or even Indonesia to talk about global best practices in mining.—Doris C. Dumlao and Riza Olchondra
Tough love
Last Friday’s mining debate served as a good listening post for Malacañang’s policymakers who are reviewing a proposed executive order authored by a four-member policy study group assigned to draft the administration’s mining policies.
Equal time were given to both sides, who had three speakers each—Gina Lopez, Christian Monsod and Clive Wicks (anti-mining group); Gerry Brimo, Peter Wallace and Manny Pangilinan (the responsible mining group)—each making a 15-minute presentation. Then a group of panelists from the three business organizations asked the speakers questions.
Lopez, of course, bore the brunt of the assault of the mining group, facing industry stalwarts—a role reversal, of sorts, since she was usually on the attacking side in various fora like the International Conference on Mining in Mindanao organized recently by the Ateneo de Davao University.
After Lopez made her presentations, wherein she kept on saying: “I love you Gerry [Brimo], but I don’t like what you’re doing in Palawan,” Brimo responded by saying: “Gina, I love you too, but you don’t know what you’re talking about.”
Brimo’s presentation tried to highlight that Gina’s anti-mining campaigns were based on inaccurate information.
During the Q&A, Lopez had a chance to tell Gerry: “I don’t lie, Gerry,” to which some members in the audience chuckled. She later ran into an awkward situation with Manny Pangilinan, who earlier said in his presentation that the areas where they were mining were not suited for agriculture and tourism (which Lopez was advocating for, in lieu of mining).
Lopez then argued with Pangilinan, saying: “When you make a statement that all the areas where there’s going to be mining are ugly anyway…” Pangilinan, retorted: “I did not say that. Now you’re lying!”
The audience, predictably, exploded.
In any case, our sources now say that the three business groups that organized the event—after having heard both sides—are in the process of drawing up a joint statement. Their final verdict could spell the difference for an indecisive Malacañang, which is still in the process of drafting a national mining policy.—Daxim L. Lucas
Deal dampener
Is Manny Pangilinan’s acquisition of GMA 7 imminent? Not if you take it from the network’s chair and CEO, Felipe Gozon.
In a brief statement issued by GMA 7, Gozon said he was “flattered by the expression of continued interest on the part of MVP.”
He pointed out, however, that “there has been no price offered that could form the basis of discussion between the parties.” So there. Settle down people.—Daxim L. Lucas
LMG/Chemphil tug-of-war
The trading suspension on Chemical Industries of the Philippines Inc. (CIP) and LMG Chemicals Corp. will be lifted Monday but their shareholder squabble is far from over.
Diversified Securities owner Ramon Garcia dared his brother Antonio (chair of LMG and Chemphil) to put under oath the latter’s complaint against the allegedly unauthorized sale of LMG shares by the brokerage.
Based on Securities and Exchange Commission documents, Antonio does not own shares in holding firm A2K, a key shareholder of CIP, or in 3G, a key shareholder of LMG. All shares are instead registered under the name of his daughter, whom Ramon claimed was being used as a dummy. Ramon’s garnishment of shares was rooted in a court complaint that these shares were stolen from him. “I sued him and got a favorable ruling from the regional trial court of Makati and the appellate courts. He is now claiming he will get a favorable ruling from the Supreme Court. He may have a contact in the SC or just bragging as usual,” Garcia said in an interview. “He has no voting rights in the said corporation. So what authority is he talking about?”
The proper forum is in the courts, Ramon said, adding that his lawyers would write to the Philippine Stock Exchange and tell them they were acting on complaints that were neither under oath nor verified.—Doris C. Dumlao
Red herring
If the latest scuttlebutt is to be believed, Internal Revenue Commissioner Kim Henares may be up for a promotion soon.
According to some people, the feisty revenue chief is being eyed as Secretary of Finance, vice Cesar Purisima, who may be moved to the Department of Energy (once Secretary Rene Almendras finally gets his Malacañang post).
Of course, there are times when rumors like this should be taken with a grain of salt. According to our other sources, this particular piece of scuttlebutt is being propagated by someone who wants President Aquino’s shooting buddy out of the BIR. Let’s see if it works.—Daxim L. Lucas
PSBank said, BSP said
If PSBank president Pascual Garcia III is to be believed, the leakage of the bank documents belonging to Chief Justice Renato Corona happened on the side of the Bangko Sentral ng Pilipinas examiners during their last audit of the bank.
However, a couple of banking regulators that Biz Buzz spoke to insisted that BSP examiners never audited PSBank’s Katipunan, Quezon City, branch. In fact, we heard that the audits onsite were done only at the bank’s head office and Binondo branch. Katipunan was supposedly left untouched.
So … could the leak have come via a rogue PSBank employee? Or a rogue BSP examiner? At this point, it’s down to a “he said, she said” situation. We may never know who’s telling the truth.—Daxim L. Lucas
Union Bank play
Aboitiz-affiliated stocks have sizzled recently on a merger-and-acquisition play on the group’s profitable banking unit Union Bank of the Philippines. Union Bank shares rose and, at one point, lifted shares of parent firm Aboitiz Equity Ventures and power unit Aboitiz Power. Could the Aboitiz group be ready to cash out of banking to focus on power ventures? Or is the market only recycling old rumors?
A top Union Bank official told Biz Buzz that as far as management was concerned, there was nothing in the works that they were aware of. And usually, the official pointed out that whenever shareholders were taking serious moves—like the i-Bank acquisition in 2006—management was immediately involved.
While Union Bank was the acquirer in its last M&A involvement, some speculate now that it could be an acquisition target, but the official pointed out that this has been a recurring rumor that has not prospered in the last five to seven years.—Doris C. Dumlao
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