This state-run corporation has drawn a lot of flak for what many peers in the energy industry believe to be the undue haste in surrendering the list of payables to the state-owned National Power Corp. (Napocor) and its successor firm Power Sector Assets and Liabilities Management Corp. (PSALM) to a would-be claimant.
This claimant group is now seeking to collect about P61 billion worth of Supreme Court-prescribed settlement of severance pay and back wages related to the restructuring of Napocor in 2003 post-Electric Power Industry Reform Act.
What further angered some top energy officials was that this government-owned and -controlled corporation (GOCC) even invited the lawyer believed to be responsible for the potential drain to government coffers—the same one who can be an instant multibillionaire given a 10-percent share in the hefty monetary award (or about P6.1 billion)—to speak at a recent flag-raising ceremony of the institution.
On one hand, this GOCC was only complying with the garnishment order from the sheriff to surrender all credits payable to Napocor/PSALM. On the other hand, many peers believed that it was not acting on the government’s interest while private sector utility operators/administrators have been persuaded to exercise more restraint in dealing with this issue.
While the Supreme Court has affirmed the award with finality, it seems that PSALM’s position was for all the claims to be aggregated and lined up for approval by the Commission on Audit. PSALM is thus seen at risk of folding up, in which case the claims will be passed on to the national government (through the Department of Finance) for further processing. Some believed there was a legal way of reducing the amount of settlement to a “more reasonable” level especially in view of the critical state of the power industry.
But what has driven this GOCC’s haste in dealing with the “enemy”? That’s what many stakeholders wish to find out. Doris C. Dumlao
PAL holds its breath
People waiting for the resolution of negotiations on full ownership of Philippine Airlines (PAL) between business tycoons Lucio Tan and Ramon Ang will have to hold their collective breath a little while longer.
The decision on the part of Tan on whether he would ante up his earlier buyback offer to Ang was expected to come last week at the end of the traditional Chinese “ghost month” (which was supposed to be an inauspicious time for making big business deals).
In any case, the Aug. 27 target date for a deal came and went without any new offer being made to San Miguel Corp. (Recall that Tan initially offered a $372-million cash payment up front and another $800 million in installment over two years for SMC’s 49 percent of PAL. SMC wants everything in cash, up front.)
According to our source, the new deadline for Tan to raise the cash for the buyback is the end of this week.
“We’ll know by Friday if we have a deal or not,” said one company official familiar with the talks.
That means PAL’s stakeholders and employees will be on tenterhooks for at least five more days before a resolution becomes apparent.
Meanwhile, Biz Buzz learned that the flag carrier’s recently retired fleet of Boeing 747-400s have been sold as scrap to a US firm that specializes in “parting out” aircraft. The four “jumbo jets” have been (or will be) flown to a desert “boneyard” in the US where they will be broken up and sold as spare parts for other 747 operators (as the aircraft is now out of production).
Ironically, the collective value in dollar terms of spare parts from a broken up 747 jumbo jet is much greater than the entire aircraft intact, according to PAL insiders. Daxim L. Lucas
Hermie’s Herma
There has been a recent string of IPO applications seeking to capitalize on familiar themes like real estate and retail. But how about logistics and shipbuilding, which are certainly crucial businesses in the Southeast Asian archipelago known as the Philippines?
Apparently, some investment bankers have the same idea and have been wooing the Herma Group, led by its CEO Hermino Esguerra, according to the group’s new vice chair, Peter Favila.
The company last week launched the M/Tkr Matapat petroleum tanker, locally built by a sister firm, and the 16th vessel for the Herma Group.
Favila was mum on how Esguerra felt about going public. But one can imagine that dealing with bankers was also familiar territory for the former trade secretary, who recently ended a stint as a Monetary Board member of the Bangko Sentral ng Pilipinas.
Despite having just started with Herma Group, Favila said they were already outlining big plans such as possibly building patrol boats for the Philippine Navy and making overseas acquisitions given opportunities presented by the Asean economic integration next year.
Ambitious plans indeed so it probably also helps that the Herma Group has friends in high places. Their event’s keynote speaker was none other than Vice President Jejomar Binay, a friend of Esguerra’s and a contender in the upcoming presidential elections in 2016. Miguel R. Camus
Solaire bottles on the (black) market
Don’t be surprised to see the small water bottles bearing the trademark of the Solaire Resort and Casino being sold in public markets such as nearby Baclaran and Nepa Q-Mart in faraway Quezon City.
Apparently, a number of unscrupulous individuals have been swiping the water bottles provided for free by Solaire management to its gaming patrons and selling them in the public markets for at least P10 each.
Eagle-eyed security personnel of Solaire Resort and Casino, fortunately, have implemented measures to put a stop to the annoying practice to make sure that the water goes where it is supposed to—local and foreign guests willing to bet their money on games of chance.
As for the free flowing, freshly brewed coffee, it is hot enough to be free from the reach of sticky fingers. Tina Arceo-Dumlao
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