A reshuffle in the Cabinet of President Aquino may be forthcoming after the holidays, according to an über reliable Biz Buzz source.
But hold your horses. Critics of Finance Secretary Cesar Purisima, who are hoping for his inclusion in the reshuffle, are set to be sorely disappointed.
According to our source, far from being in danger of being removed from his present position, the finance chief is “as secure as ever,” notwithstanding the country’s two successive quarters of weak economic growth (which is under his purview as the de facto head of P-Noy’s economic team).
The source noted that while an “unusually high” number of complaints about Purisima have reached the Palace, there are simply no alternatives to replace him at this point.
(The source pointed out that even some members of the Cabinet have been grumbling about Purisima, including personalities he was closely allied with before and during last year’s campaign period.)
Another private sector “complainant” lamented that all the brickbats thrown the finance chief’s way may have actually strengthened his standing with P-Noy, given the president’s well-known aversion to “unsolicited advice.”
Indeed, it looks like Purisima’s position is rock solid right now. His critics will just have to grin and bear it.—Daxim L. Lucas
Investing in art
It seems like a good time for art collectors, gallery operators and especially newbie artists to collect premium pieces these days.
Apart from hard commodities like gold, a growing number of retail Filipino investors have caught up with their peers across the globe in turning to art pieces as a safe haven.
For some moneyed Filipinos wary of the global market volatility, investing in art is becoming a good proposition. One good indicator is the sharp uptrend in the indices of Art Market Research, which tracks 400 sectors such as paintings, sculpture, furniture, silver, porcelain, stamps, coins, posters, toys, wine, rugs and carpets, jewelry, clocks and watches, photography, prints and classic cars.
Although art is an illiquid asset class like real estate, enthusiasts say it’s just as tangible and, here in this country, it can change hands more easily (with little or no tedious documentation and less prying from the BIR) relative to investing in real estate. Art pieces may be stored in one’s home or office, a feast for the eyes and a good conversation topic over dinner and cocktails. And while their pricing is more arbitrary compared with real estate, some studies suggest that art as an asset class can easily outperform bonds and equities.
There’s also evidence that while there’s rising appetite for art as more consumers become affluent across the region, the Internet is empowering even upstart artists who now have a way to directly sell their work to the global market through private negotiations.—Doris C. Dumlao
CSR horror tales
We’re happy to see more companies becoming more conscious of their corporate social responsibility, but watch out for those who tend to exploit their beneficiaries.
True story 1: Health maintenance organization picks non-profit organization as a beneficiary, but the pledged donation either takes too long to be paid or does not get released at all. That’s long after the press releases had been made, sent out and published.
True Story 2: Big blue chip service company comes in as a corporate sponsor/partner of a local government unit in Mindanao in one project, hands out a meager amount, but ends up putting up conspicuous banners virtually owning the project and appears in major dailies as valiant philanthropist.
We hope that such cases are more the exception than the rule.—Doris C. Dumlao
Turning a new LEAF
Speaking of CSR programs, here’s one that looks like it will work.
Norwegian-controlled Intex Resources Philippines Inc. and Aglubang Mining Corp. are embarking on what is dubbed the Livelihood Enhancement Agro-Forestry Project (LEAF), under which various species of trees would be replanted, in line with their corporate goal of propagating safe and green mining.
The tree-planting project is not only meant to conserve the ecological system, it would also provide community livelihood as well.
To date, proponents have planted about 500,000 seedlings from their nurseries and planted over 300,000 trees. They have also responded swiftly to the call of the government to participate in its greening program by committing, through the Chamber of Mines, to plant 600,000 trees.
Both companies are affiliates of Intex Resources ASA, a publicly listed company based in Oslo, Norway. They are the main proponents of the Mindoro nickel project, which—if realized—could bring in $2.5 billion in investments and generate 10,000 direct jobs during construction, and 2,000 during its operations phase.
Will all this be good enough to convince the mining industry’s critics? We doubt it. But it’s a good example how mining can be environmentally friendly as well.—Daxim L. Lucas
BDO here, BDO there
When one says “BDO” in the Philippines, there can be no mistaking that one is referring to the Henry Sy-controlled BDO Universal Bank.
Not so in the United Kingdom.
The country’s largest bank recently discovered that it had been beaten to the “BDO” trademark in Great Britain when it tried to register operations there, in an attempt to set up a remittance center (to tap the lucrative remittance business from UK-based Pinoy expatriates).
As it turned out, “BDO” was already taken by a UK accounting firm.
The bank is now deep in negotiations with its namesake, as well as UK’s financial regulators “to come to an understanding” in the use of the name.
It seems the Filipino BDO may revert back to “Banco de Oro” for its UK brand or add a suffix to distinguish itself from “the other BDO.”—Daxim L. Lucas
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