Biz Buzz: Guessing game continues
With only six of seven slots currently occupied in the policymaking Monetary Board of the Bangko Sentral ng Pilipinas, the guessing game continues as to whom Malacañang will choose to complete the cast.
(The post is important, of course, because the members of the MB help determine the value of the money in everyone’s wallets and purses, as well as the pace of growth of the Philippine economy.)
The search for the final member is now in full swing, with several high-profile names—including prominent bankers—already turning down the offer to be shortlisted due to the inevitable stress that comes with being sued by errant banks.
One promising candidate has, however, stood out in recent days.
Our sources described this person as “a lawyer with a strong capital markets background” (almost dead giveaway, unless one has been living on another planet). This lawyer was also, at one point, considered for the top slot at another regulatory agency which eventually went to his colleague.
The only problem facing this person is that he was recently promoted to the highest echelon of one of the country’s most storied law firms and is also enjoying directorships in several big-name corporations… not to mention the peace and quiet of private life.
So will this lawyer trade his current job where he gets to sue people for one where the job hazard is that he will most likely get sued? Abangan.—Daxim L. Lucas
Parting shot
Outgoing PNB president Eugene Acevedo has chosen to keep quiet despite the criticism that has come out against him after his surprise resignation. He also points out that his relationship with tycoon Lucio Tan a.k.a. “Kapitan” has not been strained by recent developments. In his last conversation with Kapitan, Acevedo said the tycoon even asked him how he was doing.
“I feel adored and loyal to Kapitan, and to anyone who will try to put a wedge between him and me, they won’t succeed. I will never go against Kapitan,” Acevedo says. “I owe him and I don’t want to be disrespectful. I don’t want the old man to be disturbed by all this.”
While Acevedo will no longer be there to be part of PNB’s bid to regain its slot during its glory days, he’s too young to retire in banking. Watch out for Acevedo’s next hurrah.—Doris C. Dumlao
15-year GPNs
After setting key benchmarks for its offshore peso-denominated bonds a.k.a. GPNs, or global peso notes, the Philippine government’s next step is to widen the liquidity of these instruments, while continuing efforts to reduce the dollar-denominated debts. Thus, the request recently sent out by the government was for an offer to swap offshore cash bonds, or ROPs, in exchange for 15-year GPNs, banking sources said.
With the outlook on the peso and other Asian currencies (with some studies even pointing to a much reduced vulnerability to the European contagion), the Philippines seeks to harness confidence from the recent sovereign credit upgrades into better liability management.—Doris C. Dumlao
No approval yet for Seal project
The Bureau of Customs is due to put into place this year a system to safeguard cargo in transit using the global positioning system (GPS) system.
The project has been welcomed by Customs users and stakeholders, but in two briefings conducted last month, concerns were raised about the implementing rules and mechanics of the system and about the pilot project that has been scheduled this September.
Called the Customs Electronic Global Positioning System Equipped Barrier Seal Service Provider, the project will provide for an electronic seal to be placed in container vans about to be transported overland to port users’ storehouses. The seal is placed only after contents are inspected to ensure that they correspond to the declared manifest. Once done, the seal can be electronically trailed during transit through links with the PNP Highway Patrol Group and the Special Action Team, which can then monitor any deviation from established routes. This is meant to immediately track down hijacking activities.
According to our sources, questions have been raised about the proposed fixed fee of P2,250, which the owners of the goods will shoulder. The amount does not take into account the distance and the traffic from the ports to the destination, or the frequency of use of the containers with the GPS seal. Customs officials were also asked if the fee will replace the underguarding cost and the bonds.
With the pilot project to be undertaken by one of three bidders, representatives of user groups asked if the contract had already been awarded. They were told that no contract has been signed and that none of the bidders has been accredited. Some members of the committee in charge of the project reportedly used to (or still have) links with the service provider tapped to do the pilot project.—Daxim L. Lucas
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