Biz Buzz: PEACe bonds peace broken
The brokered peace between the Bankers Association of the Philippines and the Department of Finance over the PEACe bonds’ tax treatment was shattered last week with both sides accusing each other of bad faith.
In a bid to inform the public about their stand on the issue, the BAP and some 13 other business groups took out paid ads in two national newspapers asking the government to honor its contract entered into a decade ago with bondholders.
A little-known fact, however, is that the bankers themselves “tipped off” DoF officials, “courteously” warning them that such an ad was about to be published the next day.
“We gave them a heads up as a form of courtesy,” said one senior banker involved in the dispute.
Sorry guys, the DoF side did not sound like it appreciated the gesture as it came out with guns blazing, accusing the bankers of breaking a truce and an agreement to simply let the Supreme Court decide on the issue.
According to one source, the fiscal side is now preparing some countermeasures, including punitive tax audits to “teach the banks a lesson.” The banks, on the other hand, are drawing up measures of their own. Buckle up, guys.—Daxim L. Lucas
Wash Lou, sophisticated?
Not one to take things lying down, officials of ING Bank have responded to the accusations of businessman Washington Lou that the Dutch financial giant did not fully apprise him of the risks involved in his investments, which caused him to lose some $5 million worth of his own (and his parents’) funds.
Sent to Biz Buzz through the bank’s representatives, ING disputed Lou’s contention that his investments were transacted through the Manila office of ING, saying instead that all investments of the Bacolod-based businessman were booked and executed by the bank’s Singapore office.
“[They] do not have, and did not open, bank accounts with ING Manila,” the bank said. “As such, they are not, and have never been clients of ING Manila.”
(Herein lies part of the problem since many foreign banks in the Philippines rely on “briefcase bankers” who are based overseas but fly in to sell foreign-registered securities to unwitting local investors.)
Of course, ING said that Lou is far from being an unsophisticated investor since he is married to a banker and has given “numerous, frequent and aggressive instructions for the purchase and sale of various securities, particularly in emerging-market, fixed-income securities.”
Lou, who used to be a director of the Manila Polo Club, claimed otherwise, saying he was surprised to learn later on that he was invested in those infamous credit-linked notes of the now-defunct Lehman Brothers that went under in the wake of the 2008 financial crisis.
ING Bank said that a regional trial court in Bacolod has already ordered the businessman to file a complaint against the bank in Singapore, but he has not done so.
Looks like another case of “he said, she said.” It should be interesting to see then how lawmakers take to Lou’s complaint after he approached the Lower House to air his grievances.—Daxim L. Lucas
Santa Elena ‘delinquents’
Someone seemingly upset with the large arrears of some members of the Sta. Elena Golf and Country Club tipped off Biz Buzz about some members with the highest amount of delinquencies at the exclusive club.
Entitled “List of members without payment after final notice,” the roster as of Oct. 20, 2011, included Jose Millonado (P1.69 million in arrears), Ramon Tambunting (P1.25 million), Carmelo Santiago (P1.2 million), Benjamin Bitanga (P1.09 million) and Manuel Rivera (P1.02 million).
There are several other names on the delinquency list (all with arrears below P1 million), which also includes corporate member Chevron Philippines Inc. (which owes the club P41,355.57).
Looks like someone got tired of chasing after these people to pay up and decided to go public. Better get the hint.—Daxim L. Lucas
‘Dead man’ walking
It is the stuff that films are made of. Casino high roller defrauds government-run casinos of as much as P400 million. He and his cohorts are then charged with syndicated estafa, only for the charges to be downgraded to simple estafa, allowing them to post bail. They manage to slip past the Bureau of Immigration and flee the country unscathed.
For Singapore national Loo Choon Beng, it was all in a day’s work. Until he was allegedly found dead in his hotel room in early August. We say “allegedly” because someone claimed to have seen him at the gaming facilities of the Cagayan Special Economic Zone and Freeport.
Officials of the Cagayan Economic Zone Authority are denying this claim, saying not even a shadow of Loo was seen at the Cagayan Freeport since the beginning of the year.
“This is to clarify that the Cagayan Economic Zone Authority has not allowed Loo Choon Beng in the Cagayan Freeport gaming facilities,” CEZA Administrator Jose Mari Ponce said in a statement. “Our land-based gaming operators in Cagayan have issued individual certifications that no person under the name of Loo Choon Beng, alias Ben Lui, has ever been in their facilities or premises since Jan. 1, 2011.”
At this point, there is still no evidence of Loo’s death. According to international news reports, only a handful of people supposedly attended his funeral. The report of the sighting at the Cagayan Freeport has convinced Congress that Loo may still be alive somewhere in the country.
Whoever told Zambales Rep. Milagros “Mitos” Magsaysay about the Loo sighting at the Cagayan Freeport may have seen one of a few things: A ghost, a doppelgänger, or Loo himself. Fake death: definitely one for the movies.—Abigail L. Ho
Get business alerts and a preview of Biz Buzz the evening before it comes out. Text ON INQ BUSINESS to 4467 (P2.50/alert).
