Titoy’s HK foray
Now it can be told.
Former Finance Secretary Jose “Titoy” Pardo played a key role in raising the funds that were used to compensate the families of the victims of the Luneta siege—an act that helped restore normal relations between the Philippines and Hong Kong.
Biz Buzz learned that Pardo—who is also chair of the Philippine Stock Exchange—made it his personal mission to raise the funds from his wide network of contacts and friends in the business community. The total compensation package amounted to P110 million for the families of eight Hong Kong nationals who were killed in the 2012 hostage drama.
Pardo was tapped for the critical fund-raising role, in part because of this close ties to the Aquino family, going back to his friendship with the late President Cory Aquino.
“P-Noy was adamant that no government funds be used for the compensation package, so Pardo had to raise the amount completely from the private sector,” a source told Biz Buzz.
We understand that most of the donors were taipans (for whom friendly relations with China and Hong Kong are important) as well as some of the country’s biggest conglomerates like the SM, San Miguel, PLDT and Ayala groups, among others.
Half of the amount had to be put up by Pardo himself, we’re told (presumably with the help of less prominent private individuals).
To mark the successful Hong Kong mission, Pardo joined his buddy, former President Joseph Estrada, in a mobster-themed “Partners in Prime” party last weekend, which also doubled as a joint birthday celebration for both April-born gentlemen.
Present at the party—held at the Mandaluyong City head office of JELP Realty—were former officials who served in government with Estrada and Pardo, business and religious leaders, as well as their guest of honor, Vice President Jejomar Binay.
Also present at the dinner party were Secretary of the Cabinet Rene Almendras, who joined Estrada and Pardo in Hong Kong as the official government representative, and Finance Secretary Cesar Purisima (in whose wedding some years ago Pardo stood as principal sponsor).
In any case, the diplomacy they honed during the Hong Kong foray will be very useful for the Erap-Titoy due. Biz Buzz understands that the inseparable partners are now working on mending fences with another Asian country with whom the Philippines has big problems. With bigger geopolitical issues at stake, fixing soured relations with this particular country will require much more than fundraising skills. Daxim L. Lucas
PAL switchover
As part of the package of benefits brought by US President Barack Obama during his state visit, US Federal Aviation Administration the other day gave the green light for Philippine Airlines to use its new Boeing B777-300ER aircraft for its trans-Pacific routes.
No less than PAL president Ramon Ang—clearly pleased at the prospect of being able to finally use more fuel efficient planes on the lucrative route—announced that the FAA had cleared the airline’s B777s for US flights last Wednesday.
And PAL is clearly eager to take advantage of the benefits brought by the country’s recent upgrade to category 1 status. We understand that the flag carrier will inaugurate the use of the twin-engined B777 for its Manila-Los Angeles flight tomorrow, May 3.
Ang expects total annual savings for the airline to reach $160 million just by replacing its two-decade-old 747s with the more fuel-efficient 777s.
Meanwhile, Biz Buzz understands that PAL is preparing a retirement ceremony for its 747 fleet sometime this month, in what is sure to be an emotional event for hundred of pilots, crew members and passengers who flew on the so-called “Queen of the Skies.” Daxim L. Lucas
Sparing no expense
The country’s next landmark casino, City of Dreams Manila in Entertainment City, is set to open its doors sometime in October and its operators are not sparing any expense when it comes to bringing in the appropriate star power.
City of Dreams Manila, a venture between Macau’s Melco Crown Entertainment and Belle Corp., would be sure to draw some of the country’s biggest business names, including billionaire-owners Lawrence Ho, James Packer and the country’s richest man Henry Sy and his family.
But also expected are international celebrities. Belle vice chair Willy Ocier noted that US actor Robert de Niro, a part owner of luxury hotel Nobu that will also open in City of Dreams Manila, was expected to return to the country in time for the grand opening.
To celebrate the casino’s Filipino roots, operator Melco was also drawing up a list of global stars with “Filipino blood” to grace the event.
Also among the names being considered is a certain American hit musician who we can only imagine is all too “happy” with a recent string of successful tracks. Miguel R. Camus
Bread price scare
For some weeks now, a group of Chinese-Filipino bakers has been warning that the price of bread—a socially sensitive commodity—will inevitably rise with the crackdown on what the government believes is artificially cheap flour from Turkey.
So the question is: Are price increases for the likes of “Pinoy pandesal” and “Pinoy Tasty” warranted due to anti-dumping measures imposed by the Department of Agriculture on Turkish flour?
The Department of Trade and Industry doesn’t think so.
DTI Undersecretary Vic Dimagiba believes that Pinoy Tasty should remain at P37 a loaf while Pinoy Pandesal should keep its current price of P22.50 a plastic bag of 10 pieces because both products mainly use locally milled flour (as do most other bread products in the local market, apparently). More importantly, the supply of local flour is very stable.
Another group, the Philippine Federation of Bakers’ Associations Inc. led by Chito Chavez, said there were other sources of flour such that bread prices would not be affected even with the government’s move against Turkish flour.
The agriculture department recently imposed additional tariffs of up to 39 percent on Turkish flour after local flour millers complained about dumping activities allegedly practiced by the Republic of Turkey.
While flour is sold in the domestic Turkish market at $470 a metric ton, it is sold here at only $348 a metric ton. (Of course, the other major player in this equation is US Wheat Associates, which is the organization responsible for lobbying for and protecting the interests of US wheat farmers. Their products are sold locally and are being affected by the artificially cheap flour from Turkey.)
So why is this Chinese-Filipino bakers’ group raising the specter of more expensive bread?
One source tells Biz Buzz that the group simply wants a justification to raise their profit margins. And the perceived tightness in the supply of Turkish flour is a good excuse as any. Daxim L. Lucas
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