The investigation into the Swiss unit of UK-based HSBC—at the center of a global tax evasion scandal—has revealed more than its secretive and “murky” banking practices: a relatively high number of Philippines-based clients compared to our wealthier neighbors in the region.
Recent information released by the International Consortium of Investigative Journalists, which dubbed their effort as “Swiss Leaks,” showed that the number of Philippines-based account holders in the controversial branch was just behind Singapore in Asean from 1988 to 2007.
(In 2008, former HSBC employee turned whistle-blower Hervé Falciani surrendered the data to the French government. That data are now at the center of the Swiss Leaks investigation, which has unearthed about $100 billion owned by more than 106,000 clients in 203 countries).
The figures, based on 2006-2007 amounts, were nevertheless telling of the wealth that can remain hidden offshore.
Based on the Swiss Leaks information, there were 240 clients in the Philippines with accounts worth $193.9 million—P8.6 billion in today’s money.
As noted, Singaporeans (255 accounts with $758 million) topped countries in Asean, while Brunei account holders were at the bottom, with two accounts worth $802,400, stashed away in HSBC’s Swiss branch, at the time.
Of course, there is nothing wrong with keeping some cash offshore, given the unstable Philippine economic and political climate back in the 1980s through 1990s.
However, some of the disturbing Swiss Leaks findings showed that bank employees aided clients with options “that would ultimately allow clients to avoid paying taxes in their home countries.”
The presence of Filipino clientele has nevertheless stirred some interest back home. But local journalists seeking to quiz HSBC about this during a prescheduled briefing tomorrow on its 2015 investment outlook might have to wait longer. HSBC yesterday cancelled the briefing as its private bank officials had “last minute schedule trip conflicts.”
There is at least one other person here who is very interested in the identities of those clients. Our very own Internal Revenue Commissioner Kim Henares told Biz Buzz her agency was planning to get in touch with the appropriate authorities to get a clearer picture of the unfolding scandal. Miguel R. Camus
Nickel play
GLOBAL Ferronickel Holdings Inc. (FNI), speculated by some to be the next big thing in nickel mining, is preparing to tap the capital market very soon. This much-awaited follow-on offer will most likely happen this April with an offer size of about $250 million, according to our sources.
After doing a backdoor listing through Southeast Asia Cement Holdings (Seacem), FNI, before taking the plunge, is finalizing its report on its 2014 financial performance, which, from what we heard, would not be too far from what its peer, Nickel Asia Corp., likely chalked up last year.
FNI is currently valued by the market at P20.5 billion while Nickel Asia now has a market capitalization of around P110 billion.
Stock pundits thus see a lot of room for FNI to narrow the gap, if not catch up once it delivers its 2014 earnings.
Proponents thus expect FNI (led by Mandarin-speaking Joseph Sy, who is said to frequent China to work on export deals) to fare well this 2015. Doris C. Dumlao
‘Lone bidder’ bid
AFTER more than three years and at least three commissioners who had come and gone, it looks like the much awaited P500-million Bureau of Customs (BOC) computerization project will finally get off the ground with the agency’s bids and awards committee (BAC) finally picking the winning bidder.
But to the surprise of many observers, the BAC summarily disqualified four legitimate, veteran consortia involving some of the country’s premier conglomerates who are active in other high-profile government projects as well. Instead, it short-listed as “lone bidder” a relatively unknown consortium that left many of the same observers scratching their heads.
Up for grabs is the selection of a system integrator for the design, implementation, operation and maintenance of the Integrated Enhanced Customs Processing Systems (iCPS) and National Single Window (NSW) for the BOC—two significant IT projects that will modernize Customs’ clearing process and eradicate corruption (hopefully) in the bureau.
Five bidders that submitted eligibility documents were short-listed for the project, including eKonek Pilipinas, Indra Sistemas, ePLDT and Globe’s Innove Communications—all well regarded in the field of information technology.
But lo and behold, BOC’s screening committee disqualified these four, leaving only a certain Omni Prime as the lone bidder.
According to our sources, BOC’s decision was based on an order issued by another government department which is, in itself, already enough to raise eyebrows.
The grounds for disqualification were mostly pertaining to the tax declaration documents that various foreign partners in the consortia had to submit (even if they don’t have any operation or presence in the country, and therefore do not owe anything yet to the government).
Seemingly satisfied with this lone bidder, BOC has requested Omni Prime for a technical submission by Feb. 13, which will effectively seal the deal for one of the most important computerization projects of the Aquino administration.
Will the Filipino people pay the best price, and consequently get their money’s worth, for this deal?
Well, the truth is—with just one bidder in the race—I guess no one will really know. Daxim L. Lucas
Fingers crossed for auto industry
LOCAL automotive players are probably now keeping their fingers crossed. The much-awaited automotive manufacturing road map is expected to be issued within the week, according to the top-level Japanese executives who recently paid a courtesy call to President Aquino.
In that meeting, investors were reportedly assured that the road map would be issued very soon, barring any unforeseen events.
Nobuo Fujii, vice president of the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI), said that based on their “understanding and impression,” it would be anytime this week, while another ranking government official separately confirmed of such talks and of the impression given to investors.
Then again, this remains to be seen. After all, local players have been waiting for the issuance of this proposed road map over the past two years and until the actual document is made public, that will be the only time that they can finally weigh in their prospects of whether automotive manufacturing will indeed be feasible to do in the Philippines. Amy R. Remo
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