THERE IS a changing of the guard at medium-sized Bank of Commerce ahead of what is expected to be a greater role for the banking arm of diversifying conglomerate San Miguel Corp.

The bank has hired Virgilio ?Billy? Goquingco?formerly with the local unit of Royal Bank of Scotland (and with ABN-AMRO before that)?as its new chief executive officer. His predecessor, Raul de Mesa, is now bank chair.

Jeronimo Kilayko has quit San Miguel Properties to return to banking as vice chair of the bank while remaining as a consultant in the property unit.

Goquingco has more than two decades of banking experience and has been involved in major deals created in and out of the Philippines, including in telecommunications. Given San Miguel?s diversification thrust, it?s no surprise that the conglomerate enlisted an expert in structured finance and project financing to lead the bank in this new era. But the bank, recently recapitalized by San Miguel, will still have to seek a universal banking license from the Bangko Sentral ng Pilipinas to be able to conduct more sophisticated deals. Expect it to apply for such upgrade by the first or second quarter of next year.

San Miguel previously seconded its head of treasury, Sergio ?Boy? Edeza, to the bank as its CEO for a month ahead of the new management team?s entry. Suffice to say, the former BSP treasurer, and later on national treasurer, got a big shiny bonus from San Miguel?s car-loving big boss after this stint. Doris C. Dumlao

Cold war in corporate RP

THE COLD War has long ended between US and Russia but for the Philippine Stock Exchange and the Securities and Exchange Commission, it may still be at its peak. From the point of view of the PSE, it all began during the last elections in May when an association of brokers sued the SEC?and the PSE itself?and managed to get the court?s backing to vote during the annual stockholders? meeting to the extent of their shares (then at around 33 percent) versus the SEC?s order to limit their cumulative voting power to 20 percent.

Then came the P500,000 monetary fine slapped by the SEC for various punitive actions taken by the PSE that the corporate regulator was not informed about, but which the PSE said were all duly reported on its website. The PSE pointed out that under the e-commerce law, soft copies were admissible as compliance for documentary requirements.

The latest assault is the brouhaha over the appointment of Val Antonio Suarez as the new president and CEO of the local bourse. Though Suarez himself has never been affiliated with any trading participant within the last two years (as prohibited under the law), his wife Milagros Cecillia Dollendo-Suarez has long been working for JP Morgan Securities. The furor apparently started when the wife was recently named nominee of JP Morgan Securities, although some people were wondering why this issue was not raised by the SEC when Suarez was first hired as chief operating officer of the PSE early this year.

The PSE board of course is solidly backing Suarez?s appointment. It has obtained two separate legal opinions from two leading law firms, both saying that the appointment was above board. Sycip Salazar Hernandez & Gatmaitan Law opined that Suarez should be disqualified only if he himself were associated with any broker-dealer in the last two years while Accralaw said the securities laws ?do not expressly restrict relatives by affinity or consanguinity of a broker or dealer from being appointed as president or management of an exchange.?

If the SEC insists on blocking Suarez?s appointment, will the PSE eventually pick a new CEO or will Mrs. Suarez quit JP Morgan? Or will the Cold War end up in court? Doris C. Dumlao

The other Pardo

FORMER Finance Secretary Jose ?Titoy? Pardo did not end up as chair of the Social Security System as was earlier rumored. Instead, it was his daughter?investment banker Diane Pardo-Aguilar?who ended up as SSS commissioner, having been sworn in by President Aquino in Malacañang last Monday.

The retired Pardo (a close friend of the Aquino family) is instead focusing on his other jobs like being chair of PSBank and a newly named independent director of National Grid Corporation of the Philippines.

Pardo is also working with the Bankers Association of the Philippines and several business groups to come up with a ?guarantee pool? that will help small and medium enterprises gain more access to bank loans. Daxim L. Lucas

World-class logistics for rice importer

A BUSINESSMAN widely known for his involvement in the logistics business has taken an interest in putting order to the country?s rice inventory, according to reliable sources.

The Philippines, as the world?s biggest rice importer, certainly needs an orderly tracking and inventory system.

As news of the National Food Authority (NFA) ?swimming in rice? and having ?rotting rice? sparked outrage nationwide, this logistics businessman apparently offered to transfer knowledge to the grains agency.

What?s the catch? It?s too early to say as talks are still in the early stages, according to our sources.

The NFA is ?interested,? that much is certain as talks have started. After all, new targets (curb imports, minimize waste) call for new methods. Riza Olchondra

No need to panic

GIVEN the unexpected violence that marked the 11-hour hostage crisis at the Quirino Grandstand the other night, where eight Hong Kong tourists were killed while the rest were scarred for life by the ordeal, it wouldn?t be a surprise if multinational companies in the country were to suddenly ban travel of their executives to the Philippines.

Deutsche Bank, fortunately, is not one of those companies.

In an e-mail to key people, Deutsche Bank Asia Pacific officers said travel to the Philippines will go on as usual.

?We have been asked about travel advisories and/or restrictions to the Philippines as a result of this incident. As of now, travel can proceed as normal with no restrictions. We view this as an unfortunate one-off event and not of a changing risk profile in Manila. Although last night Hong Kong issued its top-level black travel alert for the Philippines, we believe this is more out of respect for the victims than a reflection of a real travel risk,? Deutsche Bank said. Tina Arceo-Dumlao

BSP?s ?secret weapon?

THE TRANSFER of alleged Legacy scam mastermind Celso delos Angeles to the Ormoc City jail officially makes him the first bank owner to be put behind bars for financial malfeasance in the country?s history.

It is a significant achievement for the Bangko Sentral ng Pilipinas, which has often been accused of being too soft on errant banks and bankers.

It is also a big achievement for the BSP?s legal team, which continues to labor without immunity from suit, as well as for the central bank?s secret weapon: the legal gunslingers of the Villaraza Cruz Marcelo & Angangco law office (a.k.a. ?The Firm?). Daxim L. Lucas