BIZ BUZZ: Hush hush selling spree
A big local bank is reportedly in a mad rush to sell its prized foreclosed assets to raise cash. However, the manner of disposal is allegedly raising eyebrows, especially since the sale is being kept from the public eye.
Case in point is the planned sale of the bank’s strategically located property in the City of Manila. A rare find in the capital city’s congested port area, the property was allegedly being peddled to high net worth businessmen. But that, bank insiders say, is just a ploy. Apparently, the real intention is to find ways to reject third party bids so that a pre-arranged “preferred buyer” related to the bank’s majority shareholder will eventually get the prize.
To protect the investing public, banks have strict policies on related party transactions to ensure that deals involving shareholders (or their relatives) are undertaken at arm’s length. Hence, offers are regularly subjected to appropriate scrutiny by the board of directors and relevant committees. The objective is to protect the bank from possible accusations of conflicts of interest in its dealings.
That the planned sale is being done in secret is already a red flag. As publicly listed entities, banks are required to publish details of properties on the auction block to attract as many offers and get the best price possible.
But if the sale is done quietly and away from the prying eyes of regulators, the investing public has no way of knowing whether the bank favored certain parties to the detriment of other prospective buyers.
Does the bank’s president, busy with a massive cleanup job, know what some subordinates—and possibly principals —are up to?
While details of the property sale are still murky, regulators like the Bangko Sentral ng Pilipinas and Monetary Board are expected to keep an eagle eye on the bank’s property sales, especially those being made to related parties. After all, that’s just in keeping with their oversight functions. So, as usual, abangan!
—Daxim L. Lucas
‘A better Customs bureau’
No less than Finance Secretary Carlos Dominguez III, who oversees the Bureau of Customs (BOC), took up the cudgels for the country’s second-biggest tax collector after it took a beating from presidential aspirants during Sunday’s televised debate.
Almost all of the candidates—save for Sen. Manny Pacquiao, who chose the Department of Health—in the running for the country’s chief executive position said the BOC would be the first agency they’ll investigate for alleged corruption if ever they win in the May 9 elections.
For Dominguez, “obviously, I think [the BOC’s] a lot better now than in 2016.”
But in the past, President Duterte himself often tagged the agency as among the most corrupt in government.
The Finance chief nonetheless said he welcomes any inquiry or investigation to either verify his positive observations about the agency during the past six years or for “presidentiables” to point out areas for further improvement.
“In fact, I have asked Commissioner [Rey Leonardo] Guerrero to invite all candidates for a briefing in the BOC’s office,” said Dominguez, Mr. Duterte’s chief economic manager.
For one, Dominguez sends to reporters covering the finance beat weekly updates of oil revenues collected with the help of the fuel marking program. In the past when fuel marking was nonexistent, oil smuggling resulted in billions of pesos in foregone revenues—estimated back in 2016 to be equivalent to half of actual BOC and Bureau of Internal Revenue collections from fuel products yearly.
Last week, Guerrero told Biz Buzz that the BOC can automate 100 percent of its processes this year—something that could help minimize corruption as customs transactions would be with minimal human intervention.
“Of course, we acknowledge the need for continuing improvements,” Dominguez said, who generously praised the BOC under Guerrero’s watch during the agency’s 120th anniversary celebration last week.
Jet Maronilla, assistant commissioner of the BOC, said: “We welcome, will cooperate and support any and all investigations. PACC, Arta, NBI, PDEA, and COA are already embedded in the BOC investigating any and all reports or complaints against the BOC. We also welcome the assignment of a resident ombudsman in the BOC.”
— Ben O. de Vera INQ
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