Biz Buzz: Missing at the dinner with the President
When President Duterte shared a light moment with some of the country’s business tycoons, almost every business group that matters in this part of the world was represented. There were four top businessmen, however, who were noticeably missing from the dinner in Malacañang: JG Summit’s Lance Gokongwei, San Miguel Corp.’s Ramon S. Ang, Puregold’s Lucio Co and Davao-based businessman Dennis Uy.
But far from being “outside the kulambo” (out of the loop), the four missing tycoons are perceived to have a direct line to the President and have, perhaps, much better access to Malacañang now than most of those present during the dinner. As one tycoon said in jest, “those of us who are not close (to the President) always have to be present.”
In the case of the four “absent” businessmen, well, the perception is that it won’t hurt if they missed this particular tête-à-tête to attend to other pressing personal and other business matters.
Long before other business groups thought of building rehabilitation centers or helping the remote province of Sulu, SMC’s Ang had already announced involvement in such projects. Lance Gokongwei, of course, is someone the President respects and who was even earlier invited to be part of his Cabinet.
In the case of Dennis Uy (who is also a presidential adviser for sports), he’s perceived to be the businessman to watch in the next six years. His holding company, Udenna Corp., is one of the few tightly held corporations that got a credit line from Bank of China during President Duterte’s visit to Beijing last October (along with the likes of Filinvest Development Corp., Metro Pacific Investments Corp., SM Investments Corp., International Container Terminal Services Inc. and Ayala Corp.) and that says something about his potential for growth in the coming years. Outside Phoenix Petroleum, Uy is said to be hatching grand diversification and expansion plans. —DORIS DUMLAO-ABADILLA
Costly battle
The government will have to cough out more than P1.5 billion for interest payment apart from about P5 billion it would have to pay to holders of the controversial Poverty Eradication and Alleviation Certificates (PEACe) Bonds. This was after the Supreme Court denied with finality the government’s appeal on the issue concerning the proper tax treatment of the discount or interest income arising from the P35-billion worth of 10-year zero-coupon treasury bonds (aka PEACe Bonds by the Caucus of Development NGO Networks or Code-NGO) issued by the Bureau of Treasury.
In a Nov. 22, 2016, en banc resolution, the Supreme Court denied the motion for reconsideration and clarification filed by the Office of the Solicitor-General on behalf of the government while partly granting the motion for clarification and partial reconsideration filed by petitioners-intervenors RCBC and RCBC Capital Corp.
The nearly P5 billion in mandated payment represents the 20-percent final withholding tax on the PEACe Bonds while the legal interest of 6 percent a year from Oct. 19, 2011, until full payment was estimated by Francis Lim of ACCRA Law—counsel for the consortium of petitioning banks—at P1.5 billion.
A zero-coupon bond is a bond bought at a price substantially lower than its face value with the face value repaid at the time of maturity. It does not make periodic interest payment, hence the term zero-coupon bond. However, the discount to face value constitutes the return to the bondholder.
During the term of the Aquino administration, former Internal Revenue Commissioner Kim Henares issued a ruling declaring that the PEACe Bonds, being deposit substitutes, were subject to the final 20-percent withholding tax. This was contrary to the clearance issued by the BIR at the time the PEACe Bonds were packaged and issued. As such, the BIR was directed to withhold a 20-percent final tax from the face value of the PEACe Bonds upon their payment at maturity on Oct. 18, 2011. This was the ruling questioned by petitioner banks all the way to the Supreme Court.
Lim said this was actually a penalty imposed by the Supreme Court on the government. “It is a strong message that the government should not change rules midway to the prejudice of investors in our country,” he added. —DORIS DUMLAO-ABADILLA
Giving back to society, the PBSP way
It’s good to “give back” to society, and that’s precisely what some of the country’s wealthiest and most influential are doing.
The Philippine Business for Social Progress (PBSP), during its 46th annual meeting, announced some impressive figures.
For its 2015-2016 fiscal year, the country’s biggest business sector-led social development organization had reached out to some 1.1 million households via its core health, education, environment, livelihood and enterprise development programs.
Underscored during the meeting was a successful program that diagnosed some 400,000 cases of tuberculosis in “vulnerable populations” such as indigenous communities and prison facilities. The project is funded by the USAID and Global Fund.
PBSP was also a boon to the education sector. It said that more than a million students across 182 public schools benefited from initiatives like the construction of new classrooms, teachers training programs and supplemental feeding.
On environment, a major achievement was the reforestation of 84 hectares of land at the Upper Marikina River Basin Protected Landscape in Rizal and the Central Cebu Protected Landscape. It also revitalized some 74 hectares of mangrove areas in Bantayan Island and Daanbantayan, Cebu.
The meeting Tuesday was led by PBSP chair Manuel V. Pangilinan and vice chair Paul Dominguez. Some of its board of trustees present were Phinma CEO Ramon del Rosario Jr., Roxas Holdings’ Pedro Roxas and Inquirer Group chair Marixi Prieto. —MIGUEL R. CAMUS
‘Tiger’ returns
In June 2016, Jacinto R. dela Rosa Jr. retired from the law office he founded in 1991. His decision surprised many people, who speculated that age had finally caught up with the man fondly called “Tiger” in the legal profession.
But doing consultancy work for some of his former clients didn’t go unnoticed, sparking rumors of a comeback at 75 years old.
The word is that Dela Rosa is gearing up for his return to active practice and admission as partner emeritus of the Viesca Dones and Malang Law Offices, an Ortigas-based firm specializing in employment law and labor relations.
Dela Rosa is known for helping resolve at the Department of Labor and Employment the drawnout case between Nestlé Philippines and 112 former employees, which had reached the International Labour Organization (ILO), and was one of the agenda items of the 2009 ILO High Level Mission to the Philippines.
The buzz is that all the paperwork has been finalized for Dela Rosa to soon reunite with former colleagues that he mentored in his heyday. It should be interesting to watch just how much fire is left in this old tiger, and if he can survive the jungle without changing his stripes. —POCH CONCEPCION
