Biz Buzz: PBCom frontrunner

The staggered liberalization of branch restrictions in the Philippines doesn’t mean that the wave of banking mergers and acquisitions will diminish.

In fact, it seems that Philippine Bank of Communications now has a better shot at getting a new investor.

Aside from ISM Communications, which is led by former Trade Minister Roberto V. Ongpin, some non-banking groups have expressed interest in the bank.

Potential white knights have until Wednesday to submit a firm offer.

If at all, the liberalization of branching has made existing franchises like that of PBCom’s more attractive, in turn boosting chances of this new round of auction succeeding as non-banks can compensate for lukewarm interest from other banking peers.

And RVO’s group is widely believed to be the frontrunner in this race.—Doris C. Dumlao

Monetary Board guessing game

With just a little over two weeks to go before a new cycle of appointive terms at the Bangko Sentral ng Pilipinas is to begin, the banking community is still waiting with bated breath as to which personalities Malacañang will appoint to fill the three soon-to-be vacant slots at the Monetary Board.

At this point, the smart money is on current MB member Nelly Favis-Villafuerte to be reappointed to another six-year term (something bound to make a number of bankers and banks exchange sideward glances, quietly).

Apart from her, however, some names have already been put forward by a couple of influential economic managers to the Palace for the three highly coveted posts.

These include former Neda director general Felipe Medalla (a veteran economist with a very pragmatic view on monetary policy); former BSP deputy governor Andy Suratos (a bar topnotcher who has helped regulators with legal issues in the past); MB member Freddy Antonio (who has, by all accounts, acquitted himself well in his current term); and the newcomer to the race, Development Bank of the Philippines president Popoy del Rosario (reportedly backed by the Balay faction of this administration).

There are, of course, many other would-be applicants, but some of the most qualified—including the Filipino chair of a Makati-based foreign bank—have turned down offers to join the slate, due to the “litigious nature” of job.

The Palace is expected to announce its decision later this week, or next week at the latest.—Daxim L. Lucas

The House of Pacman

That mansion on Cambridge Street in the posh North Forbes enclave that Manny Pacquiao and family will soon inhabit was bought from—who else?—a banker, of course.

According to our sources, the house, situated on a sprawling lot, was acquired from no less than RCBC president Lorenzo Tan.

The banker confirmed this himself when reached by Biz Buzz for comment, pointing out that it took him over three years to build the three-story edifice.

He confessed to being a little sad about having to sell it to the pound-for-pound king, but quickly added that he also felt “guilty” at the thought of letting the P388-million opportunity pass.

With this particular bragging right, Tan now feels that he may have a second career as a property developer once he retires from banking … which, of course, is still a long way off.—Daxim L. Lucas

DoF-PNPI war rages

The war between the Department of Finance and Pacific Nickel Philippines Inc. continues to rage.

Finance Secretary Cesar Purisima stands firm that PNPI’s operations should be halted by the DENR because the company allegedly defaulted on its obligations to the government.

PNPI, however, claims Purisima’s basis for the suspension is not accurate.

PNPI said the sudden suspension was done “arbitrarily, hastily and without due process.”

Purisima insists that the company has not paid its obligations to the government in the amount of $300 million. PNPI said, however, that “whether the company is in default is still the subject of a court case before the Regional Trial Court of Makati.”

But the DoF is bent on closing PNPI’s operations as it released another statement last week claiming that PNPI “shipped to China $1 billion worth of minerals.”

PNPI is denying it, saying that total revenues generated from 2003 to 2010 amounted to only $44.585 million, or an average of $5.57 million per year.

Of these revenues, PNPI was able to pay the government P423 million in royalties, national and local taxes and fees for the eight-year period.

On top of these, the shareholders had spent approximately $60 million of their own resources for the drilling and exploration expenses to establish a JORC compliant reserve, engineering and technical studies, maintenance, security and maintain the integrity of the MPSA.

So who’s right, and who’s wrong?

The facts will speak for themselves. Sooner rather than later, it seems.—Daxim L. Lucas

Deadly discussions

While most current and former employees of National Power Corp. wait with bated breath for a final resolution on their pension, two of them are not even breathing at all—having succumbed to stress caused by the alleged inaction of Napocor management with regard to their retirement benefits.

In a letter circulated to Napocor employees on May 10, Napocor employee Miguel Bisnar said that Lester Rigonan of the state firm’s project management department “died because of anxiety (and) eventual heart attack over the (Government Service Insurance Sytem) issues discussed on May 9.”

Another Napocor employee, who spoke to Biz Buzz on condition of anonymity due to the sensitive nature of the issue, said that apart from Rigonan, the demise of another employee was also tied to stress caused by pension discussions.

The source said the two cases were similar in that the deaths occurred following discussions about the status of their pension.

The GSIS last month stopped issuing pension to retired Napocor employees, saying they should not have chosen pension over a separation plan of one and a half months’ salary for every year of government service when they were separated from the company by virtue of the Electric Power Industry Reform Act of 2001.

According to the GSIS, the law provided for a separation package of either a retirement pension or a bulk amount to be given upon separation from Napocor. Employees wanting to have their pension continued, the GSIS said, would have to refund the government the one-time package that they were given then.

But even this had yet to be decided. The source said this was just one option being considered. Until a final decision is made, no Napocor employee will be getting any pension.

Napocor management better place its foot on the pedal on this one if it does not want another one of its own to die of stress over not having a monthly pension.—Abigail L. Ho