BIZ BUZZ: Insult and injury
The Bangko Sentral ng Pilipinas hosted a book launching a couple of Fridays ago to showcase the interesting and colorful aspects of the people who make the central bank one of the best and most professionally run government organizations in the country.
And, as is expected in events like that, the who’s who of the local financial community showed up, including all the living former heads of the central monetary authority. We’re talking about former Governors Benjamin Diokno, Amando Tetangco Jr., Jose Cuisia and Jaime Laya, all of whom joined the book’s author, journalist Roel Landingin, and current Governor Felipe Medalla in signing books for the guests after the program.
Nothing surprising there, but what really surprised some people who were “in-the-know” about inside events at the central bank was that one of the former governors showed up at the event at all after, as a couple of Biz Buzz sources put it, he was “disrespected” by the leaders of the establishment over a recent professional issue.
We’re talking about former Governor Jaime Laya who, just a few months ago, was nominated by the bank he has been working for for many years—Philtrust Bank of the Yap family—as its chair.
Under the rules, people who are nominated to top positions in the local banking system usually go through an approval process at the hands of the Monetary Board. The goal is to ensure that only the most reputable people are assigned to handle and manage “other people’s money” that go into the banking system. Disreputable people, as one can imagine, can cause quite a lot of damage.
Laya, of course, was expected to pass with flying colors, given his long history of distinguished service to Philtrust as its president, and the broader banking community, especially during a time when the country was facing one of the most challenging economic crises in its history.
Now here’s where it becomes interesting. Biz Buzz hears that, once Laya’s nomination reached the board, it was scrutinized by the seven-man body (headed by then central bank chief Diokno) and … rejected.
What? Yes, you read that correctly. His nomination was rejected, with even the future central bank chief Medalla (who favored Laya’s ascension to Philtrust’s chairmanship) getting outvoted along with another Monetary Board member. The vote was five opposed, and two in favor, we heard.
Apparently, there’s an obscure banking rule that says one cannot go straight from being a bank’s president to being its chair without some kind of cooling off period. It’s unclear what the rationale for that rule is, but we imagine it’s probably to prevent some form of conflict of interest.
Not easily discouraged, an appeal was filed by the bank, explaining that Laya was eminently qualified to be the bank’s chair and that—as his supporters argued—“regulatory relief” could be granted to him, given his status as a former central bank governor.
Again, it came to a vote during one Monetary Board meeting … and again Laya’s supporters were outvoted.
We hear this leaves Philtrust with little choice but to nominate someone else as chair, and Laya to take the vice chair’s post for now.
But the damage has been done, and the two rejections have not been taken lightly. Even other former central bank governors were upset by the Monetary Board’s decision, with one saying in frustration: “How could they do this to him? He’s one of us!”
In fact, we hear Laya almost skipped the book launch, but only decided to attend because of his sense of duty to the institution. Now that is class.
As for why the five Monetary Board members decided to reject his chairmanship of the bank, observers are unsure if they were simply being sticklers for an “obscure, little used and outdated” rule … or if there were other issues at play.
—Daxim L. Lucas
New Manila property dispute
Last week, lawyer Levi Baligod, the son-in-law and counsel of Marlina Galenzoga-Veloso, reached out to Biz Buzz to explain that the transfer of a disputed seven-hectare property in New Manila, Quezon City, was above board.
This week, lawyer Antonio Nachura Jr. of ACCRA Law, counsel of Titan Dragon Properties Inc.—which says it is the original and legal owner of the same property—reached out to Biz Buzz to challenge the claim.
According to Nachura, the story of Veloso and Baligod is nothing but a story.
Without the knowledge of Titan Dragon because of what he described as an “improper service of summons,” Veloso and Baligod were able to secure a judgment from a Quezon City Regional Trial Court “that initially supported their machinations.”
“But the [Quezon City Regional Trial Court] judgment has already been nullified by the Supreme Court in April 2021,” he explained. “As such, all acts performed by Veloso or Baligod pursuant to the void judgment, including the issuance of a new title in the name of Veloso, are void.”
“In fact, in addition to Veloso’s title having been declared questionable by the Land Registration Authority’s (LRA) Task Force Titulong Malinis in 2017, the dubious nature of Veloso’s title was reiterated by the LRA in its letter dated May 10, 2022,” the lawyer said in a statement.
He added that even the Bureau of Internal Revenue canceled the certificate authorizing registration it earlier issued because, contrary to the version of Veloso and Baligod, the property’s tax liabilities were supposedly never settled.
“With the July 18, 2022 Supreme Court’s denial of their motion for reconsideration with finality, Veloso and Baligod’s claim has no factual and legal support and Titan Dragon’s ownership of the 7-ha property prevails,” he said.
“Titan Dragon owners do not know Veloso and Baligod from Adam and there never was a joint venture between them for the development of the 7-ha property nor a sale of the multi-billion New Manila property for a measly P60 million,” the lawyer added.
Who’s wrong? Who’s right? That’s up for the justice system to determine, of course. But for now, what’s clear is that the drama continues, though we suspect the endgame is in sight. Abangan!
