In some ways, it’s an all-too-familiar story: Bacolod-based Washington Lou thought his money would grow when he plunked in his hard-earned money—as well as the retirement funds of his parents—in an investment offered by the Manila unit of Dutch banking giant ING in 2005.
He was, after all, a longtime client, and their account managers had assured him that his funds were safe with them. But surprise, surprise! In came the global financial crisis in 2008, and the value of his investments started to decline. Alarmed, he contacted his account managers, only to supposedly receive reassurances that all was well and that he should even add more funds.
Well, we know how the markets around the world went that year, and to make a long story short, the businessman who is a former director of the Manila Polo Club, saw his investments get wiped out. He said that, upon closer scrutiny, the money was invested by ING in Lehman-type securities—the same kind that lopped off a substantial amount of wealth of the country’s elite a few years ago.
But here’s the thing: Lou said that the securities sold to him as investments were actually booked in Singapore and not in Manila. This means that, if he is correct, the local ING office was selling investments to Filipino investors that were not registered with the local authorities like the Securities and Exchange Commission.
Lou has since asked Congress to investigate the activities of ING which, he believes, is liable for misleading him as to the exact nature of the securities he bought and lost a ton of money on.
His worry now is that ING was initially represented by the Villaraza law office (the same lawyers of the Bangko Sentral which, he fears, may be less inclined to hear him out). ING has since shifted to Accra, which is another source of worry for Lou, Accra being the “home” law office of SEC chief Teresita Herbosa. So let’s see how this plays out in Congress.
Oh by the way … the sum involved? Some $5 million (note: dollars) of his money and that of his elderly parents. That’s gotta hurt.—Daxim L. Lucas
MVP’s new generals
The consumer industry is about to be shaken up as businessman Manuel V. Pangilinan beefs up his telecom group’s senior management team with two new crucial hires. The new recruits—both previous CEOs of big consumer group—will henceforth head the marketing and sales units of parent firm Philippine Long Distance Telephone Co. and wireless unit Smart Communications.
The first new recruit, Mr. A.F., is CEO of a pizza chain that is, in turn, part of a leading fast-food company. He will join PLDT itself. The second recruit, Mr. N.L., the CEO of a big manufacturer of condiments and formerly with Unilever, will be assigned to Smart.
Apart from both being experts in marketing and brand management, what’s common with the two is that both were the bosses of a young market professional that the leading telco wanted to bring on board but this was aborted due to some internal tiff.
It’s a simple strategy: If you can’t get the lieutenant, get the general. Two of them, in fact.—Doris C. Dumlao
‘Early’ stage
Reacting to an earlier Biz Buzz item on the potential sale of its life insurance asset to businessman Eusebio “Yosi” Tanco, Maybank-led ATR KimEng Financial Corp. confirmed discussions involving its subsidiary AsianLife Financial Assurance Corp. (ALFA), but noted that the talks were still in the budding phase.
Tanco, who is associated with PhilPlans Care and PhilPlans First Inc., is a beneficial shareholder and board member of ALFA.
“While there have been ongoing discussions between the shareholders of ALFA on possible ways of developing a closer business relationship and/or strategic alliance between the two groups who are in related businesses, these discussions have not been conclusive and are at a very early stage,” ATRKE Financial said.
ATRKE Financial added it has two other insurance subsidiaries and the other one, its 100-percent-owned Asian Life and General Corp., isn’t up for grabs now or in the near future.—Doris C. Dumlao
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