Sunday, May 01, 2005

Compare and contrast Pacific Plans with Prudentialife

This article was clipped by one of our "helpers" (thanks DV!...) for us to comment on...

Prudentialife Plans sees big net profit

By Mary Ann Ll. Reyes

The Philippine Star 04/29/2005

Prudentialife Plans expects to generate a net income of between P300 to P500 million for the fiscal year ending March 31, 2005 compared to P302 million last fiscal year, even as its trust fund as of end-March this year reached P12.5 billion, the biggest in the pre-need industry.

This as Prudentialife president Jose Alberto Alba told The STAR that the company has no problem meeting its financial obligations to its planholders, including those holding the traditional or open-ended educational plans. "We have sufficient assets," he stressed.

Prudentialife has a trust fund of over P12.5 billion compared to College Assurance Plan’s P4.7 billion. Pacific Plans Inc. reportedly has less than P10 billion. Both CAP and Pacific posted losses during their last fiscal year. And while CAP has a trust fund deficiency, Prudentialife’s latest actuarial valuation showed an excess of P1 billion.

"Clearly, we are not in the same situation as that of CAP and Pacific Plans. I assure you that all obligations of Prudentialife will be honored," Alba said.

Meanwhile, he revealed that as of end-2004, Prudentialife’s sales grew 46 percent compared to the previous year while the industry growth was only 13 percent.

Alba attributed the sales growth to a migration of planholders from other companies (flight to quality) as well as the increase in Prudentialife’s sales organization, the introduction of new products, and the fact that CAP was no longer allowed to sell as of September last year. Just last December Prudentiallife ventured into mutual funds while its health maintenance (HMO)service will be offered starting this May.

According to Securities and Exchange data for January this year, Prudentialife is second in terms of sales volume next to Philam. But while Prudentialife’s sales volume grew 18.28 percent, that of Philam went down 22 percent. Number three is Loyola, followed by Lifetime Plans, Berkley, Manulife, St. Peter, Pet Plans, Sun Life, and TPG Plans.

The company has around 50,000 traditional college education plans to service(as against its over a million planholders) compared to CAP which has over 700,000 open-ended plans (those that pay the actual value of the tuition fee at the time the plan matures).

It was learned that the Yuchengco-owned Pacific Plans, which is seeking court approval for suspension of payments, sold grade school and high school traditional education plans, the early maturities of which strained Pacific’s trust fund. Pacific has around 34,000 open-ended plans.

Alba revealed that while the problem of CAP was more or less anticipated by the public, the industry and the public were caught offguard by Pacific Plan’s action. "We have to stress though that the problem of some pre-need companies is not the problem of all,"Alba, who is currently vice-president of the Philippine Federation of Pre-need Plan Companies, told The STAR.

While the industry as a whole is experiencing a 20-percent reduction in sales following the aftermath of Pacific’s action, Alba said he expects the situation to normalize once the public is able to realize that the pre-need industry is still a safe place to invest in general, provided they choose the company well. "We expect lower sales and higher termination in the next few months‚ but we believe that the general public’s reaction to Pacific is a temporary thing," he said.

THE QUESTIONS THAT SEC AND THE MAKATI RTC SHOULD ASK THEMSELVES:

a) Assuming that this the claims of Mr. Alba are accurate regarding his company's performance are accurate, how can Pacific Plan's performance be so different and miserable? Open-ended vs. fixed payout plans cannot be the difference since both Pacific Plans and Prudentialife offer both.

b) Or, isn't the real issue corporate mismanagement (we will start posting reviewers over this long weekend on the basics as trust fund management and fiduciary responsibility) as well as a clever shell game of moving healthy assets and corporate entities around as the reasons for Pacific Plans' demise?

In which case, we fully expect that RTC MUST RULE that the owners have an inescapable obligation to dig into their wallets and return profits they have made over the previous years. To close one's eyes and to look at Pacific Plans with its crummy Napocor bonds and claim that the Yuchengco group does not have the financial capability to meet its contractual and moral obligations would be an injustice of the greatest magnitude.

c) CAP and Pacific Plans are not regulated by the Insurance Commission. The healthy ones appear to be under the supervision of the Insurance Commission. Since the SEC is the regulator of Pacific, it has a lot of questions to answer regarding its oversight of the investments of the pre-need firms it regulates. As Congressman Joey Salceda said in the DEBATE show this week, his conversation with a senior SEC official revealed an admission that the SEC was misled regarding Pacific Plans representations!!!

Clearly, using the 1992 deregulation of tuition increases for being caught flat footed is a lame reason that Pacific Plans should already stop using. BISTADO NA!

35 Comments:

At Sunday, May 01, 2005 12:35:00 PM, Anonymous Anonymous said...

ppi cannot use the deregulation as an excuse, how can there be additional liabilities to speak of when our contract did not stipulate how much they should pay, what is stated is that they pay the tuition fee at the time of the availment, the deregulation did not require ppi to pay more than the tuition fee, surely ppi has no excuse, they are just trying to mislead us in every way they can

 
At Sunday, May 01, 2005 2:04:00 PM, Anonymous Anonymous said...

The article of Mary Ann Reyes (Star 4.29.05)is definitely a slap on the YGC/PPI Group. How can Prudentialife, who sold MORE open ended plans and has more unavailed open-ended plans than PPI be confident of their obligations to their planholders? While poor PPI who only has 16,000 availing plans CANNOT? One doesnt have to have a college education to compare these two pre-need companies in this aspect. This shows how ignorant and one sided SEC and RTC are with regards to this case. This should make us all planholders (whether availing or non-availing) to be more vigilant and firm in our stand against the rehab program. WALANG ATRASAN ITO!!!

Also, regarding Ernesto Garcia, Chairman kuno of PPI. He definitely was hired just to kill the trad plans. He admitted in Dong Puno's show that his contract with PPI is only for 6 months!! He WILL DO anything and everything to get the re-hab plan approved. He was hired only for this job!! He has nothing to lose. His pay for the next 6 months have been negotiated and will be delivered to him. THis guy is dangerous!! He is the same guy who misled investors into buying into PLDT and Piltel (when in fact, Piltel was already bleeding with billions of unpaid loans at that time) Go ask Manny Panginiban of PLDT!

 
At Sunday, May 01, 2005 3:27:00 PM, Anonymous Anonymous said...

The truth will set us free.

Yuchengco could have bought the SEC, the judge, and some of the media, but not all can be bought.

Specially not its competitors. I hope that more of the good performing pre-need companies come out with their financial results. This will surely be an added proof that the former PPI management team should be accountable for their INCOMPETENCE.

Their present attempt to hide their incompetence by manufacturing the liquidity problem of PPI is doom to fail with the profitable operation of their competitors.

 
At Sunday, May 01, 2005 4:36:00 PM, Blogger Punzi said...

Please check my blogs. I made one for PPI claimants.

Again, some unsolicited advice.

regards and good luck

 
At Sunday, May 01, 2005 5:55:00 PM, Anonymous TLS said...

Thank you for coming up with this Topic. I was already preparing this because this is the next action we need to strategize for. Also, we are nearing May 13, 2005, our deadline for coming up with our Opposition to the Proposed Rehabilitation by PPI. We all need to bone up on what the downside is. Bear in mind that the basic premise is that PPI/Yuchengco committed fraud here, okay? In the first instance, walang basehan ang paghingi ng rehab dahil sila lang ang nagmoro-moro at naghocus-pocus (read: financial and legal engineering / illegal transfer of assets para masabing hindi nila “kakayanin” ang pagserbisyo sa natitirang traditional plans). And especially sa mga planholders na matigas ang ulo at hindi naman iniintindi kung bakit hindi dapat tanggapin ang rehab plan at ang proposed “liquidity conversion package” na ibinabandera ni Garcia/Tecson, here’s your reviewer:
The principal laws governing insolvency and rehabilitation are the Insolvency Law, enacted in 1909, and Presidential Decree No. 902-A (“PD 902-A”), enacted in 1976. P.D. 902-A vested the Securities and Exchange Commission (SEC) with jurisdiction over, among others, petitions for suspension of payments and rehabilitation of corporations. However, on July 19, 2000, Congress enacted the Securities Regulation Code (SCR, or R.A. 8799). The SRC transferred jurisdiction from the SEC to the regular courts over petitions for suspension and rehabilitation, and allowed the Supreme Court to designate branches of the appropriate Regional Trial Courts to hear and decide cases of such nature. Pursuant to the Securities Regulation Code, the Supreme Court promulgated in December 200 the Interim Rules of Procedure on Corporate Rehabilitation (“Interim Rules”) setting forth the procedure for corporate rehabilitation.

The Interim Rules authorize a distressed debtor to file a petition for rehabilitation. They also authorize a creditor or a group of creditors holding at least twenty-five percent of the total liabilities of the debtor to file a petition to rehabilitate the debtor.
A “Petition for Corporate Rehabilitation” is filed by a corporation merely on the basis that the debtor foresees the impossibility of meeting its debts when they respectively fall due. It does not matter whether or not the corporation is solvent or insolvent. Thus, rehabilitation proceedings are resorted to suspend or delay payment of obligations. It may file the petition for corporate rehabilitation in the Regional Trial Court where the principal office of the debtor corporation is located.
If the court makes a determination that the petition is sufficient in form and substance, it then issues a stay order which, among others, stays enforcement of all claims against the debtor. All claims, whether secured or unsecured, are stayed for duration of the rehabilitation proceedings, which must not exceed eighteen months from the filing of the petition. If no rehabilitation plan is approved within said period, the petition is dismissed. (IN OTHER WORDS, SA PAGHINTAY PALANG NA MAY MA-APPROVE NA REHAB PLAN, 1 AND ½ YEARS NA ANG PWEDENG ABUTIN. HINDI PA IYON NANGANGAHULUGANG HINDI PWEDENG MAGINITIATE PA NG IBANG LEGAL MEASURES ANG PPI/YUCHENGCO PARA PAHABAIN ITO).

Kung tutuusin, dapat nga hindi lang “sufficiency in form and substance” ang tinignan ng korte, kundi dapat tinignan ng korte kung mayroong “substantial likelihood of rehabilitation” ang PPI/Yuchengco in order for it to continue to avail of the stay and other benefits in the law. READ PPI/YUCHENGCO’S PETITION FOR REHAB AND SEE THAT IT HAS ZERO LIKELIHOOD OF REHABILITATION. IT SHOULD NOT HAVE EVEN BEEN SIGNED BY THAT RTC JUDGE. Substantial likelihood for the debtor to be rehabilitated means: (1) the proposed rehabilitation plan submitted complies with the minimum contents prescribed by law; (2) there is sufficient monitoring by the rehabilitation receiver of the debtor’s business for the protection of creditors; (3) the debtor has met with its creditors to the extent reasonably possible in attempts to reach a consensus on the proposed rehabilitation plan; (4) there is sufficient assets with which to rehabilitate the debtor; and (5) the rehabilitation receiver submits a report that, based on the preliminary evaluation: (a) there is sufficient cash flow to maintain the operations of the debtor; (b) the debtor’s stockholders, directors and officers have been acting in good faith and with due diligence; (c) the petition is not a sham filing intended only to delay the enforcement of creditors’ rights; and (d) the debtor would likely be able to pursue a viable rehabilitation plan. BASE SA GINAWA NILANG PANLILINLANG NUNG 2004 BY “CARVING OUT” THE EARNING ASSETS OF PPI AND LEAVING IT AS AN UNPROFITABLE SHELL, EH, WALA NA DAPAT PINAGUSAPAN PA AT HINDI PINIRMAHAN ANG PETITION FOR REHAB.

The rehabilitation court also appoints a rehabilitation receiver, whose primary tasks are to monitor the operations of the debtor under rehabilitation, evaluate the feasibility of rehabilitating the debtor, and implement the rehabilitation plan if approved by the court. Once the rehabilitation plan is approved, it is binding upon the debtor and the creditors, whether or not they participated in the proceedings or opposed the plan. (WALA NA TAYONG MAGAGAWA, ONCE NA MA-APPROVE ANG REHAB PLAN. KUNG ANG REHAB PLAN NILA AY MAGANDA LANG PARA SA STOCKHOLDERS NILA - WHICH IS THEIR PRIORITY, IYON ANG MASUSUNOD). An approved rehabilitation plan may, on motion, be modified if, in the judgment of the court, such modification is necessary to achieve the targets or goals set forth therein. If the plan is successfully implemented, then the rehabilitation proceedings shall be terminated by the court.
Under the Interim Rules, there is no period provided for the stay order or suspension order. It shall be effective from the date of its issuance until the dismissal of the petition or termination of the rehabilitation proceedings. However in no event shall additional hearings be held beyond 180 days from the date of the initial hearing. Consequently, a longer period of time is allowed for the effectivity of the stay order to afford the parties and the court an opportunity to establish a viable rehabilitation plan. (SO ONCE NA MA-APPROVE ANG REHAB PLAN, SINONG MAY SABING MAAARING MAGLABAS NG PERA ANG PPI/YUCHENGCO PARA MASILBI ANG PLANHOLDERS? WALA SILANG MAILALABAS NA PERA).
Furthermore, the rehabilitation receiver shall not take over the management and control of the debtor but shall closely oversee and monitor the operations of the debtor and shall have the powers and functions of a receiver under P.D. 902-A and the Rules of Court. He shall be considered an officer of the Court who shall be primarily tasked to study the best way to rehabilitate the debtor and to ensure that the value of debtor’s property is reasonably maintained, as well as implement the rehabilitation plan.
The focus of these proceedings is the proposed Rehabilitation Plan. Upon approval of the plan by the court then:
(1) The plan will be binding upon the debtor and all persons who may be affected by it including creditors whether or not they had participated in the proceedings;
(2) The debtor shall comply with the plan and take all actions necessary to carry it out;
(3) Payments will be made in accordance with the plan;
(4) Contracts and other arrangements between the debtor and its creditors shall be interpreted as continuing to apply only in so far as they are not in conflict with the plan; and
(5) Any compromises on amounts or rescheduling of timing of payments by the debtor shall be binding on creditors regardless on whether or not the plan is implemented.
(SO WALANG GARANTIYA NA ANG REHAB PLAN AY IBIG SABIHIN = BABAYARAN NA NG PPI/YUCHENGCO ANG TUITION FEES NATING LAHAT AS PER CONTRACT. ANG PRIORITY NG REHAB PLAN AY MABIGYANG TULONG ANG PPI AT STOCKHOLDERS NITO SA NEGOSYO AT MULING PAGNENEGOSYO NG PPI. SEGUNDO LANG ANG CREDITORS - KASAMA TAYO AS PLANHOLDERS DOON. KUNG SA PAGBABAGONG-TATAG NG PPI AY KAILANGAN HINDI NIYA BAYARAN ANG FULL EDUCATIONAL BENEFITS NG PLANHOLDERS AS PER CONTRACT, THEN IYON ANG MANGYAYARI!!! KAHIT YUNG PAGKAPANGIT AT WALANG KWENTANG 2010 PROPOSAL NILA, KAPAG SINABI NG RTC NA HINDI NILA PWEDENG GAWIN, AY WALA NA NAMAN MAGIGING REAKSYON ANG PPI/YUCHENGCO KUNDI MAGKIBIT-BALIKAT AT MAGSABING “TALI ANG KAMAY NAMIN. UTOS NG KORTE”. THE KEY HERE IS FOR US NOT TO ALLOW THEM TO GET INTO COURT AND HAVE THEIR REHAB PLAN APPROVED!!!)
If however, (1) the debtor fails to submit a rehabilitation plan or (2) the same is disapproved by the Court, or (3) the debtor fails to achieve the desired targets or goals as set forth in the plan, or (4) the debtor fails to perform its obligations under the plan, or (5) it is determined that the rehabilitation plan may no longer be implemented in accordance with the terms, conditions, restrictions, or assumptions, the court shall upon motion or motu propio or upon motion of the rehabilitation receiver, terminate the proceedings. It is surmised that with the termination of the proceedings, the suspension order shall be lifted accordingly and the creditors are at liberty to enforce their respective rights as they deem fit. (SO KUNG MA-TERMINATE NA ANG REHAB PROCEEDINGS, TSAKA LANG MAAARING MAGHABOL ULI ANG PLANHOLDERS, I.E., MAGFILE NG CIVIL O CRIMINAL CASES, MAGHABOL NG LIQUIDATION O DISSOLUTION PARA IBALIK NA SA ATIN ANG PERANG NASA TRUST FUND NA PERA NATIN, ETC., ETC. PERO HIHINTAYIN PA BA NATIN IYON? AT IYON AY ASSUMING HINDI PA GUMAWA ULI NG LEGAL MANEUVERS ANG PPI/YUCHENGCO PARA PAHABAIN ITO. AGAIN, ANG SUSI DITO AY HUWAG HAYAANG MAKAPUNTA ANG PPI/YUCHENGCO SA KORTE AT MA-APPROVE ANG REHAB PLAN NILA!!!)
SO LEGALLY ALONE, THERE ARE SO MANY REASONS WHY IT WOULD BE DISADVANTAGEOUS TO PLANHOLDERS FOR PPI/YUCHENGCO TO BE ABLE TO GET THEIR REHAB PLAN APPROVED.
In addition, to implement the provisions of the Securities Regulation Code the Supreme Court, through A.M. No. 001103-SC, dated 21 November 2000, designated 60 branches of the various Regional Trial Courts all over the country (including 14 within the Metropolitan Manila Area) to hear, among others, petitions for rehabilitation. These courts are referred to as Special Commercial Courts. The judges of the Special Commercial Courts cannot as of yet be considered specialists in insolvency and rehabilitation proceedings, in terms of mastery of the applicable law/procedure or experience in handling these types of cases. The RTCs are courts of general jurisdiction. As for rehabilitation, jurisdiction was transferred to the RTCs only in August 2000, and the Interim Rules were promulgated only in December 2000. In this sense, the experience of Special Commercial Courts the court in handling these cases is limited. (SO HINDI MATAAS ANG TIWALA O KOMPIANSA NA MAGIGING MAAYOS AT MAKATARUNGAN ANG MAGIGING DESISYON NG KORTE UKOL SA KARAPATAN NATING PLANHOLDERS O CREDITORS. LALONG NAGPAPATOTOO NA HINDI DAPAT NATIN HAYAANG IMANE-OBRA NG PPI/YUCHENGCO SA LEGAL GROUNDS ANG IPINAGLALABAN NATIN).

Await further inputs on this and other issues. Please, let’s educate ourselves. Ipinaglalaban natin ay edukasyon, so tayo rin, let’s know and understand the issues and repercussions of taking a certain strategy.

TLS

 
At Sunday, May 01, 2005 9:17:00 PM, Anonymous Anonymous said...

To TLS,

On page A-16 of today's Inquirer, Cong. Francis Escudero suggested that we file a case of large-scale estafa which is non-bailable.

How will our filing of this large-scale estafa affect the court proceedings?

Will it be more effective if we do a combo legal con media attack? For example, I always see the pictures of persons who were terminated by their companies in the classified ads. What if you know who's picture appears on the classified ads with a notice of the large-scale estafa case (puwede na siguro ang one-fourth page).

Do we really have a solid evidence of large-scale estafa? Are the paper trail of the transfer of plans and trust funds from Pacific to Lifetime and later to 2 other companies enough to pin down the owners of PPI?

 
At Sunday, May 01, 2005 11:26:00 PM, Anonymous marc said...

Thanks, tls, for the info. It's pretty enlightening, although I have to sit down again and go over the issues you covered in order to internalize the points. But you are right, we have to educate ourselves, and now it's clearer to me why they are going through rehabilitation...

Also, it looks to me like we have to escalate our protest actions against the rehab procedures even as our legal team is preparing for it.

More power to the coalition!

 
At Sunday, May 01, 2005 11:30:00 PM, Anonymous Anonymous said...

I'm glad a concerned parent told me about this website. It really helps to keep people concerned in the loop.

If Pacific had already foreseen this problem since 1992, why did they not offer the parents to convert to the fixed plan?

I asked their lawyer about this and his reply was that Pacific was probably hoping for the best. How can Pacific be so nonchalant about this when they know that this affects millions of lives.

Whoever said that only a few parents attended the meeting was probably blind. Maybe he should have attended the meeting at St. Paul's. Or maybe that person should have been in Kamagong or in Roxas Boulevard where parents had to be given numbers and wait to be called. If the parents were indeed few, would Pacific even need to give numbers out?

Yuchengco tells us they don't have the money but even their agents in Pacific admitted that they do have the money but was somehow diverted.

So many parents, I myself included, were banking on these plans to at least ease the the cost of education. The foremost reason people got these plans was because it belonged to Yuchengco. The parents trusted his company by investing in this
pre-need plan and after having profited from our money, they decide to drop us.

I guess that doesn't say much about Mr. Integrity!

 
At Monday, May 02, 2005 6:38:00 AM, Anonymous Anonymous said...

PPI was established by a man of integrity, Mr. Alfonso Yuchengco. Under his helm, his company grew by leaps and bounds, expanding into many businesses. It is now run by his children.

Some, not all, family corporations have this tendency, over the years, to be immensely successful during the founder's reign, then the following generation keeps up the good work, then the third generation squanders it. In this case, it looks to be happening a generation earlier. Well, it hasn't happened yet but the foundation of integrity with which their company stands on now appears to be turning to clay.

Somewhat reminds me of the movie It's a Wonderful Life starring James Stewart. Two main contrasting characters are worth watching - George Bailey and Henry Potter. Our Mr. Yuchengco could relate to both in more ways than one. I'm partial to thinking that Mr. Yuchengco could assume George Bailey's character although at present it looks like he is (or at least his children are) doing a Henry Potter. I'm just hoping and praying Mr. Yuchengco has an angel Clarence to help fix his situation.

Unlike George Bailey or Job (from the Holy Bible), Mr. Yuchengco has not lost anything yet. In fact his coffers are still full to the brim. Like George Bailey or Job, Mr. Yuchengco can do some sacrifices so he doesn't fail the community he initially wanted to serve, in the process restoring the integrity his name had grown synonymous with. He may even be rewarded after all is said and done.

 
At Monday, May 02, 2005 7:06:00 AM, Anonymous wm said...

Hey guys, look at opinion section of Phil. Star todays edition. Mr. Sison & Jarius Bondoc just drop an atomic bomb on Pacific. Lets continue the emails with the other various columnist from other major dailies which up to this point has remained unusually quiet. Wait till Phil. Center for Investigative Journalism make a report and drop their nuclear bomb.

Our sincerest gratitude to all those connected with Phil. Star for standing by the truth and the oppress.

 
At Monday, May 02, 2005 9:19:00 AM, Anonymous Anonymous said...

Please also read the column "Questions of Policies" of Honesto C. General in today's edition of the Philippine Daily Inquirer. It contains advice for those who still have instalments to pay and are unsure what will happen if they discontinue payments.

 
At Monday, May 02, 2005 9:29:00 AM, Anonymous Anonymous said...

The columns of Jarius Bondoc and Atty Sison talked about the same points that the Coalition has raised. But what is mind boggling is the last paragraph of Bondoc's column which I quote below:

"What takes the cake is a PPI-Lifetime timeline for fixing the transfer, marked "highly confidential" and turned over to Piccio "by disgruntled insiders who also hold traditional plans." Showing further premeditation, it sets dates for major moves, such as: Apr. 4, file rehabilitation petition; Apr. 6, brief marketing regional managers; Apr. 7, approval of stay order and tuition support; all the way to Apr. 11 and 29, start and end of tuition support releases. For June 4, a month now, the entry states, "court approval of rehabilitation." Huh? "

JUNE 4 - COURT APPROVAL???!!! ANO BA IYAN?!!! I'M TOTALLY DISGUSTED! PEP, LET'S SHOW THEM THAT THEY CANNOT JUST RAILROAD THIS DOWN OUR THROATS.

 
At Monday, May 02, 2005 10:08:00 AM, Anonymous TLS said...

marc and other planholders,

Yes, please go through the facts about insolvency, bankruptcy law and corporate rehab and come up with your analysis also. Definitely if we have 34,000 or at least so many thousands of brilliant planholders' minds working as one in strategizing, what chance do the few minds at PPI/Yuchengco and even the much vaunted the "Firm" have? Suffice to say, what I'm trying to point out is that the law on bankruptcy and corporate rehab is, at best, old, antiquated and very much in favor of the debtor (PPI/Yuchengco). Maraming pasikot-sikot na maaring gawin ang legal counsel nila ONCE WE GET LOCKED IN A CORPPORATE REHAB CASE. Look at all the past rehab cases and where they are now. Mga Bangko pa yung mga creditors doon, with teams and a whole bunch of legal counsels fighting against the rehab plan of the debtor. DO WE WANT TO GO THAT ROUTE? HINDI DAPAT MAGPROSPER ANG PETITION FOR REHAB NILA. WE FIGHT IT BECAUSE THERE WAS FRAUD.
We should stress on the liability of directors and officers. Directors and officers
of a debtor shall be liable for double the value of the property sold, embezzled or disposed of or double the amount of the
transaction involved, whichever is higher, to be recovered for the benefit of the debtor and the creditors under the
following circumstances: (1) if the officer or director, having notice of the commencement of the rehab proceedings, or having
reason to believe that rehab proceedings are about to be commenced, disposes or causes to be disposed of any property of the
debtor or authorizes or approves any transactions fraudulently or in a manner grossly disadvantageous to the debtor
and/or creditors; or (2) if such director or officer conceals from the creditors or embezzles or misappropriates any of such
property.
The court shall determine the extent of the liability of a director or an officer under this. In this
connection, the court shall consider the amount of the shareholding or equity interest of such director or officer, the
degree of control of such director or officer over the debtor, and the extent of the involvement of such director or debtor in
the actual management of the operations of the debtor.

Employees/Officers of PPI should be liable as well. A director, officer
or other employee of the debtor who commits any one of the following acts shall, upon conviction thereof, be punished by
a fine no more than one million pesos and imprisonment for not less than three (3) months nor more than five (5) years for
each offense: (1) if he shall, either after the commencement date or prior thereto with contemplation of their
commencement, hide or conceal, or destroy or cause to be destroyed or hidden any property belonging to the debtor; or if
he shall hide, destroy, alter, mutilate, or falsify, or cause to be hidden, destroyed, altered, mutilated, or falsified, any book,
deed, document, or writing relating thereto, or if he shall, with intent to defraud his creditors, make any payment, sale,
assignment, transfer, or conveyance of any property belonging to the debtor; (2) if he shall, in any case of any person
having, to his knowledge or belief, proved a false or fictitious debt against the debtor he shall fail to disclose the same to
the rehabilitation receiver or liquidator within one month after coming to the knowledge or belief thereof; or if he shall
attempt to account for any of the debtor’s property by fictitious losses or expenses; or (3) if he shall knowingly violate a
prohibition or knowingly fail to undertake an obligation established in the law on insolvency / corporate rehab.

TLS

 
At Monday, May 02, 2005 10:36:00 AM, Anonymous EB said...

A BIG THANK YOU TO ALL PEP COALITION LEADERS ! I JUST CAME ACROSS THIS IN MY READINGS AND IT SURELY MIRRORS OUR CAUSE

"GOD'S WORK, DONE GOD'S WAY WILL NEVER LACK GOD'S SUPPLY"

THANK YOU !

 
At Monday, May 02, 2005 5:07:00 PM, Anonymous Anonymous said...

The one page commentary on Pacific Plans which came out yesterday at the Phil Daily Inquirer was intended to both boost the moral of Pacific planholders and at the same time HATE Pacific even more.

Rep Escudero made a good point. While Garcia was such an asshole. Even by just reading his statement, I could feel the insincerity of his every word.

At this point, nothing can pacify us planholders of the widespread fraud that your company has committed. No amount of management terms and tactics will make us understand you.

YOUR PROJECTION ON TV WAS THAT OF SOMEONE WHO WAS JUST FORCED TO SAY WHAT YOU HAD TO SAY BY YOUR COMPANY. IT SHOWED ALL OVER YOUR FACE THAT YOU YOURSELF WAS NOT CONVINCE THAT THOSE WERE THE RIGHT WORDS TO SAY TO PLANHOLDERS... IN SHORT YOU CAME ACCROSS AS SOMEONE WHO WOULD HAVE DONE OTHERWISE FOR THE PLANHOLDERS IF YOU HAD IT YOUR WAY!!!

Be true to yourself, Garcia! Forget about the big money Yuchengco is paying you to be his fall guy.Dont allow yourself to be used... Unless of course you are as ROTTEN as they are and HAVE THAT SPECIAL TALENT TO LOOK AS IF YOU ARE FEELING SORRY FOR THE PLANHOLDERS but instead YOU ARE JUST THINKING OF HOW MUCH YUCHENGCO CAN FILL UP YOUR BANK ACCOUNT.

That lawyer-spokesperson is a different thing altogether. From day 1, she looked arrogant!

HOW CAN THE BOTH OF YOU SLEEP SOUNDLY AT NIGHT --- for once advise your client/employer of their MORAL RESPONSIBILITY to the children whose parents trusted them! Rather than just mimic what you are being told to.

I BELIEVE THIS IS A MORAL ISSUE AS WELL AS IT IS A LEGAL ONE.

EDUCATION is there product. This is not just any tangeable product that you can cut loose and just drop.

Pacific should admit that once before the traditional plan was their carrier product and made up for more than 80% of their sales.

 
At Monday, May 02, 2005 6:16:00 PM, Anonymous Anonymous said...

Time for being "nice" has ended! They (YGC) have planned this since last year. They have the date when the judge will allow them to rehab despite our opposition- June 4, 2005!

THE GOOSE IS COOKED!

Start the BOYCOTT of Yuchengco Group (BYG!)

Go ahead with the legal moves but a parallel moves has to be done to pressure them on all sides!

To the PEP group: start selling those stickers now! Am more than willing to buy a few! Will even stick it at some RCBC ATMs!

To all PEP members and friends: Do not accept RCBC checks, this will force our customers to open other accounts. You have to convince 5 or more people to drop RCBC and Malayan insurance.

That's YGC's top 2 money maker! Your hurt the 2 you put a crack on their system!

 
At Tuesday, May 03, 2005 12:53:00 AM, Anonymous Anonymous said...

I suggest that a legal complaint be filed before a court now against the Yuchengco's, Pacific, Lifetime, GPL holdings and Exemplar Inc. citing the doctrine of Piercing the Veil of Corporate Fiction. This must be filed before approval of Rehabilitation Plan, otherwise as I understand it, we will lose any legal action because the effect of approval of rehabilitation plan is automatic suspension of all actions against offending corporations. The urgency is emphasized now that they already have identified June 4, 2005 as date of court approval of rehabilitation.

When a second corporation is created as a means to prevent a first corp. from paying obligations; when used as a cloak to cover fraud, illegality, or results in injustice; when stockholders created the corporation to evade taxes, violate laws, commit fraud, evade just obligations; the veil must be pierced==meaning these separate corporate personalities will be disregarded, and deemed to be the same with Pacific Plans, INc.
God bless us all!

 
At Tuesday, May 03, 2005 9:48:00 AM, Anonymous Anonymous said...

Anonymous said...
Please also read the column "Questions of Policies" of Honesto C. General in today's edition of the Philippine Daily Inquirer. It contains advice for those who still have instalments to pay and are unsure what will happen if they discontinue payments.

In reply to above: All PEPTrad plans are already assumed to be fully paid as these were last sold in 1992 pa. So there's no installments to be paid.

 
At Tuesday, May 03, 2005 12:09:00 PM, Anonymous Anonymous said...

Some planholders raised questions about instalments they still have to pay, so this assumption that all open-ended plans are already fully paid may be premature. In any case, this issue will become clearer as the coalition's database fills up. Mr. General's column may help those who are in that stage of their contract commitment, for whatever reason.

 
At Tuesday, May 03, 2005 12:56:00 PM, Anonymous Anonymous said...

Here are Interesting notes/excerpts from today's newspapers:

SEC reviews financial status of YUCHENGCO-owned companies:

"The SEC is also looking into the financial conditions of First Malayyan and Finance, a big financing firm owned by the Yunchngeco group.
Based on the latest financial statements submitted to SEC, House of Investment posted a net income of P166.11 million as of end of Sept 2004 compared with only P11.38 million for the same period of previous year.

EEI Consgtruction, also a YGC, reported a net profit of P8.09 million in 2004.

As its interest burden remains high, EEI has prepared a financial program for discussion to its creditors--hmmmmm rehabilitation plan, too???

As regards to RCBC, the Bangko Sentral earlier said this bank is in good financial state

In a separate article titled "Yuchengco asset management group offers cross-currency strategy"

"With the guarantee of professional fund management, diversification of investments, and access to high-calibre financial tools, mutual funds still remain as a promising investment outlet.

The Yuchengcos) launched in October of 2004 the Grepalife Income Fund (GFIF).

In just six months, GFIF expanded net assets by six times to over P300 MILLION, making it the third best sold fund for the two month period ended February 2005.

Adopting the slogan "We Give More WEIGHT to your Peso" GFIF investors enjoy the services of full time investment experts, instant diversification on investments, liquidity affordability, and connivance. But that's not all; invesors also enjoy more practical insurance benefits.....

Pacific said when it spun off the fixed-value plans, (its management and sales force,and 99.6% of its assets) to Lifetime, its plan was "to put Pacific Plans back on its feet", PAANO AANDAR ULIT ANG KOTSENG TINANGALAN NG GASOLINA, O NG GULONG O NG BATERYA?

Maloloki aki! In just seven months from the transfer of Pacific to Lifetime, claimed impossibility to meet its legitimate obligations to Trad Educ Plan Holders!!!

Ano ba to? at least consistent ang timetable ng YGC: GFIF increased assets six times in just six months, PPI collapeds in just seven months!

Ayaw kong tumawa... are you sure you did not eat fish? cause I'm sure I did not, but how come i can smell something fishy here?

aba! si ako ito.

 
At Tuesday, May 03, 2005 1:54:00 PM, Anonymous Anonymous said...

We continue to honor our obligations

Posted 08:08am (Mla time) May 01, 2005
By Ernesto Garcia
Inquirer News Service



Editor's Note: Published on page A16 of the May 1, 2005 issue of the Philippine Daily Inquirer


AS emotions subside, people would view Pacific Plan's actions since 1990 as one continuing commitment to honor its obligations.

So let us go back to 1990, the year all open-ended education plans were in effect doomed by a radical change in government policy: from capping tuition increases to no more than 10 percent to allowing unlimited increases.

That stroke of deregulation was the single biggest cause of the problems PPI and other similarly situated pre-need companies now face. The degree of their present problem is a function of how management reacted then.

PPI reacted prudently when it stopped selling the open-ended plans in 1992, two years after partial deregulation and two years before the 1994 full deregulation. The handwriting was on the wall and it took heed. Still, PPI had roughly 90,000 open-ended plans sold from 1986 to 1992.

PPI paid all the tuition claims, regardless of amount, in the past 14 years although its contract explicitly freed PPI from paying the extra costs. Early this month, it went to court to seek suspension of payments and approval for a rehabilitation plan.

When PPI did this, it was accused of a lot of things. But did it really renege on its obligations? Don't the Yuchengcos and their other companies have the moral obligation to pay? Did PPI cheat its plan holders when it spun off its fixed-value plans? Was PPI unfair to its plan holders? Very simply, why doesn't it just pay?

To put things in perspective, everybody must realize companies with open-ended plans have a problem and it was beyond their control.

Deregulation was a ticking time bomb. Companies with the most number of open-ended plans will suffer the most. No company could match, much less surpass, with limited income the unlimited yearly increases the schools were charging.

PPI does not have the most number of these plans but it is the bravest to face its problem squarely and to provide a solution. It is a controversial solution to those affected, but PPI will be vindicated sooner than later that it did right.

What did PPI do right? Let us count the ways.

1. PPI stopped selling these plans in 1992. That was one move that proved critical because it was able to contain the injury. The more of these plans a company has, the worse off it is.

2. PPI has not exercised its right under Section XV of its contract. It could have taken legal cover from this but so far it has not.

3. PPI put in P1.5 billion to pay the runaway tuition. This is one reason it paid in full all tuition claims in the past 14 years. It has so far sent to school 56,000 scholars and at most 18,000 are not yet availing themselves of the benefits-a modest number by industry standards mainly because of No. 1.

4. PPI sold instead fixed-value plans, where benefits are defined. PPI sold more than 400,000 of these. But it eventually had to put these in a separate company because the 34,000 open-ended plans continued to be voracious eaters of corporate funds. It separated the two types of plans through a spin-off, a perfectly legal action that is done all over the world. Without this move, the whole body of fixed-value and open-ended plans would have suffered. So why not take steps to keep the 400,000 healthy?

5. Even before this, PPI wrote many schools to buy thousands of scholarships for its beneficiaries and pay in advance the whole four-or five-year courses. Not one agreed to the offer of a 10-percent annual increase. PPI pleaded. It failed.

6. PPI bought back plans but the secondary market, which it has no control of, has brought prices to unreasonable levels.

7. After the spin-off, PPI was left with the 34,000 plans. It had looked for ways to limit liability on the open-ended plans by offering to swap them with fixed-value plans. But time was not on its side. Enrollment was creeping in fast. It had more than P300 million in cash left and $52-million worth of government-guaranteed bonds that would mature in 2010. Of the 34,000 plans, 16,000 are due for enrollment; the rest, the majority, would be due to file in the coming years and obviously would be disadvantaged if assets are liquidated now. Something must be left for them.

8. So PPI went to court early this month. While it sought for suspension of payment, it asked the court to allow it to use its remaining P341 million in cash to support the tuition needs of the 16,000. PPI knew it had to help pay the tuition because it is enrollment time.

9. PPI proposed to return all the premium payments plus seven percent net compounded interest to the 18,000 non-availing plan holders. For the 16,000 who are already availing themselves of the benefits, PPI offered tuition support, which is part of the discounted balance of remaining "availments," plus seven percent net compounded interest that they are entitled to. All these depend on the court approving its rehabilitation plan.

10. If some opponents succeed in blocking the rehabilitation, PPI would likely be forced to Square One with all the problems and no solution, or into liquidation and sell its $52-million worth of bonds before maturity. If sold now, these bonds would fetch P550 million less than if they are redeemed by 2010. This loss, all plan holders must absorb.

PPI has done more as an exercise of its obligation, legal and moral, to its plan holders. When the time bomb ticks its last, PPI will be remembered as the company that offered to return the plan holders' money plus more while it still could, and took a lot of beating for a misunderstood but correct decision.

(Garcia is the president of Pacific Plans Inc.)

 
At Tuesday, May 03, 2005 3:04:00 PM, Anonymous Anonymous said...

Additional food for the brain - Judge Romeo Barza is SIGMA RHO from University of Philippines like Justice Carpio, Avelino Cruz and other members of The Firm.

 
At Tuesday, May 03, 2005 3:09:00 PM, Anonymous Anonymous said...

Has anybody looked into the connections between the presiding Makati RTC Judge Romeo Barza, Sigma Rho and the Villaraza Law firm?
Has any of our legal minds thought of inhibition?

 
At Tuesday, May 03, 2005 4:13:00 PM, Anonymous marc said...

"10. If some opponents succeed in blocking the rehabilitation, PPI would likely be forced to Square One with all the problems and no solution, or into liquidation and sell its $52-million worth of bonds before maturity. If sold now, these bonds would fetch P550 million less than if they are redeemed by 2010. This loss, all plan holders must absorb." - by Ernesto Garcia

Wow, how glib! "Would fetch 550 million less that if they were redeemed by 2010"...Are you saying, Mr. Garcia, that the difference between the market value of zero coupon bonds with the par value of these same zero coupon bonds is a loss? You are comparing MARKET VALUE WITH PAR VALUE, DID I GET YOU RIGHT? But perhaps your arguments are correct.

If so, then let's all borrow 10 million cash from RCBC, buy a 10 Million par value, deep discount zero coupon bond maturing in 2010 (say, with market value of 9 Million), transfer all of our real assets (save for the zero) to another company, file for rehabilitation for the original company and tell RCBC to accept our 10 Million par value bond maturing in 2010 because we have liquidity problems (it's a zero coupon bond, after all).

Hey, and don't liquidate the 9 million now, after all, you lose 1 million if you get it now so why not wait until 2010 and get the par value.

Ha!

 
At Tuesday, May 03, 2005 6:55:00 PM, Anonymous Anonymous said...

Hoy Pareng Ernesto Garcia, kawawa ka kasi nagmumukha kang gago na panay ang pagtatanggol sa PPI!!! You said that if the rehab plan of PPI does not push through, PPI will be forced to sell the Napocor bonds prematurely, and consequently earn much lower. Well, did you know that RCBC acquired those bonds at a much higher yield, then sold it to PPI at a profit? Did you know that PPI then sold some bonds back to Lifetime at a loss to PPI???? Is this your way of saving the company???? Alam ba ni Atty Tecson itong mga facts na ito? YOU BOTH LOOK LIKE PATHETIC MERCENARIES ON TV!!!!! Atty Tecson, binalibag ka sa Dong Puno Live!!! Masisira ang credibility mo. Drop this!!! Pera lang yan. Makukuha mo rin yan sa ibang mas mabuting paraan. Bata ka pa, marami ka pang kakaining bigas.

 
At Tuesday, May 03, 2005 9:51:00 PM, Anonymous Anonymous said...

The nerve of that Ernesto Garcia to post his Inquirer speech here!! Hey Mr Garcia, hindi pa ba sapat ang kinitata mo sa Piltel? Dapat mag retire ka na no? You are inviting more enemies into your life!!!

 
At Tuesday, May 03, 2005 9:52:00 PM, Anonymous Anonymous said...

lets not forget the doctrine of piercing the veil of corporate fiction... kailangan silang lahat managot, PPI, LPI, Yunchengco, GPL, Ezemplar at pati ang Ernesto Garcia!


aba ako ito!

 
At Wednesday, May 04, 2005 12:39:00 PM, Anonymous Anonymous said...

Curious lang:

Prudential joined all its pre-need companies (life, educ and pension) under one company which essentially combined these products' trust funds. Will this be detrimental in the long run to the pension and memorial planholders as their trust fund will be used/are being used for paying trad educ availments?

Just asking!

 
At Wednesday, May 04, 2005 12:42:00 PM, Anonymous Anonymous said...

The SEC should investigate further on Prudentialife's trust fund with their banks. The SEC and the public should know that their unavailed traditional plans, no matter how small it is can greatly affect the performance of their trust funds. The risk of inflation on the rising tuition fees can hamper the growth or eventually make the company do what Pacific have done to their planholders.

The public/planholders of Prudentialife should be protected.

 
At Wednesday, May 04, 2005 4:38:00 PM, Anonymous TLS said...

What did PPI do WRONG? Let us count the ways.

1. PPI stopped selling these plans in 1992. That was one move that proved critical because it was able to contain the injury. The more of these plans a company has, the worse off it is.
FIRST OF ALL, TRADITIONAL PLANS ARE NOT THE PROBLEM. WHILE IT IS TRUE THAT TUITION FEES WERE DEREGULATED, WHAT NEEDS TO BE ADDRESSED IS THE REVENUE-COST MODEL USED. (Ta-tagalogin ko para madaling maintindihan) DAPAT ISINA-AYOS NG PPI/YUCHENGCO ANG COST MODEL NILA (IBIG SABIHIN, IBINABA DAPAT ANG COMMISSION STRUCTURE AT OPERATING EXPENSES PARA MAS MALAKI ANG MAILAGAY SA TRUST FUND. EVEN IF THEY HAD CONTINUED SELLING, HINDI PROBLEMA IYON KUNG IA-ADJUST ANG COST MODEL. ALSO, THE REVENUE MODEL OR PRICING COULD BE ADJUSTED TO FURTHER COMPENSATE FOR HIGHER TUITION FEES.
ALSO, PPI IN ALL THOSE PAST YEARS HAD HIGH OPEX (OPERATING COST TO REVENUES) RATIOS. THEY SHOULD HAVE REDUCED FIXED OPERATING EXPENSES ALSO, I.E., REDUCED BRANCHES, MANPOWER, ETC. BECAUSE THIS WOULD HAVE SAVED MILLIONS IN THE PAST YEARS.
IN ANY CASE, THEY HAD NO TRUST FUND OR ARL DEFICIENCY UNTIL LAST YEAR SO EVEN FOR THE TRADITIONAL PLANS, WALANG PROBLEMA NA SERBISYOHAN ITO, EXCEPT FOR THE LIQUIDITY PROBLEM NA GAWA-GAWA LANG NILA.

2. PPI has not exercised its right under Section XV of its contract. It could have taken legal cover from this but so far it has not.

THERE IS NO PROVISION IN THE PRE-NEED CONTRACT THAT EXPRESSLY STATES THAT TUITION FEES MUST BE REGULATED OR BE KEPT UNDER THE 10% OR WHATEVER TUITION FEE CAP. WALA! IT DOES NOT EXPLICITLY STATE THAT THE SERVICING OF THE BENEFITS TO PLANHOLDERS IS ANCHORED ON A FIXED, PROJECTED INCREASE IN TUITION FEES OF SO MUCH PERCENT. WALA! THE CONTRACT IS SILENT ON THIS BUT EXPLICITLY STATES THAT PPI WILL PAY OUT THE BENEFITS/TUITION FEES OF THE PLANHOLDER FOR THE SELECTED COURSE OR EDUCATION LEVEL OF THE NOMINEE. IYON MERON! THIS SECTION XV IS TO BE INTERPRETED ONLY IN EVENTS THAT ACTUALLY PREVENT PPI FROM PAYING OUT BENEFITS NOT EVENTS THAT MAKE IT DIFFICULT FOR PPI TO PAY OUT BENEFITS. TUITION FEE DEREGULATION MAY HAVE MADE IT MORE DIFFICULT FOR PPI TO MEET AND SERVE ITS OBLIGATIONS. BUT IT CERTAINLY DID NOT AND DOES NOT PREVENT PPI FROM MEETING AND SERVING ITS OBLIGATIONS. MALAKING DIPERENSYA ANG PANUKALANG BATAS NA IPAGBABAWAL ANG PAGSAGOT SA KARAPAT-DAPAT NA BENEPISYO SA PANUKALANG BATAS NA MAARING MAGPAHIRAP SA KOMPANYANG TULAD NG PPI NA SAGUTIN ANG KARAPAT-DAPAT NA BENEPISYO.

3. PPI put in P1.5 billion to pay the runaway tuition. This is one reason it paid in full all tuition claims in the past 14 years. It has so far sent to school 56,000 scholars and at most 18,000 are not yet availing themselves of the benefits-a modest number by industry standards mainly because of No. 1.

HINDI NAMAN ITO KAHANGA-HANGA DAHIL IYON NAMAN ANG DAPAT LANG NILA GAWIN DAHIL MAY OBLIGASYON SILA AT KATUNGKULILN NA HARAPIN ANG PAGSERBISYO SA PLANHOLDERS. REMEMBER, NEGOSYO ITO. KUNG MALULUGI ANG STOCKHOLDERS NG PPI, PASENSIYA NA LANG. PERO DAPAT HARAPIN ANG LEGAL, FINANCIAL, FIDUCIARY OBLIGATIONS (we’re not even citing the moral and social obligations). HINDI MAARING SABIHIN TAMA ANG ISANG AKSYON DAHIL MARAMI NA ANG “NASERBISYOHAN” AT KONTI NA LANG ANG “MASASAKTAN”. WE ARE NOT TALKING OF NUMBER WEIGHTING AND AVERAGES HERE. KUNG HINDI NABIGAY NG PPI ANG KARAPAT-DAPAT NA BENEPISYO SA KAHIT ISANG PLANHOLDER, MALI AT WALANG MASASABING TAGUMPAY ITO. YOU FAIL JUST ONE PLANHOLDER AND THAT MEANS YOU ARE A FAILURE IN YOUR BUSINESS BECAUSE THAT IS THE WHOLE POINT OF THE BUSINESS.

4. PPI sold instead fixed-value plans, where benefits are defined. PPI sold more than 400,000 of these. But it eventually had to put these in a separate company because the 34,000 open-ended plans continued to be voracious eaters of corporate funds. It separated the two types of plans through a spin-off, a perfectly legal action that is done all over the world. Without this move, the whole body of fixed-value and open-ended plans would have suffered. So why not take steps to keep the 400,000 healthy?
SEE MY REPLY TO NO.3. FIRST, NOTICE THE LANGUAGE – “open-ended plans are voracious eaters of corporate funds”. HINDI NA NILA SINABING “TRUST FUNDS” KASI MALI IYON. THE OPEN-ENDED PLANS HAVE THEIR OWN TRUST FUND WITH NO DEFICIENCIES. SO DO THE FIXED-VALUE PLANS. NOW, BECAUSE HINDI NA NAGBEBENTA NG OPEN-ENDED PLANS, ANG PANGSERBISYO NITO IS TAKEN FROM ITS OWN TRUST FUND, NOT FROM THE TRUST FUND FOR FIXED-VALUE PLANS.
NOW, THEY’VE PROJECTED THAT IF TUITION FEES CONTINUE TO RISE, WITH THE LOW INVESTMENT YIELDS, THE TRUST FUND OF THE OPEN-ENDED PLANS MAY (EMPHASIS ON “MAY” KASI FUTURE ITO – WALA PANG CERTAINTY NA MANGYAYARI) NOT BE ENOUGH TO SERVICE FUTURE AVAILMENTS.
SO, AND THIS IS THE TRUTH, SA SALES NG PAGBENTA NILA NG FIXED-VALUE PLANS, THEY MUST NOW REDUCE THEIR PROFIT MARGIN AND ADD TO THE OPEN-ENDED TRUST FUNDS OR EVEN USE PART OF THEIR PROFIT MARGIN TO SERVE CURRENT AVAILMENTS. THE TRUST FUND FOR FIXED-VALUE PLANS IS SAFE AND INTACT.
SO MALIWANAG NA HINDI KINUKUHAAN ANG TRUST FUND NG FIXED-VALUE PLANS. ANG NAGYAYARI AY NABABAWASAN ANG KITA OR PROFIT MARGIN NG PPI/YUCHENGCO PARA MADAGDAGAN ANG “POSIBLENG” FUTURE KAKULANGAN SA TRUST FUND NG OPEN-ENDED PLANS (TANDAAN DIN NA UNTIL LAST YEAR, WALANG DEFICIENCIES SA TRUST FUND AT ARL ANG PPI).
SO KAILANGAN NILANG BAWASAN ANG COMMISSION SA AHENTE, O BAWASAN ANG OPERATING EXPENSES NILA (SWELDO’T BONUSES NG TOP MANAGEMENT, NO. OF BRANCHES, ETC.) PARA MATUGONAN ANG PAGDAGDAG SA TRUST FUND PARA SA OPEN-ENDED.
SO, IT IS SIMPLY FALSE AND A LIE TO SAY THAT THE WHOLE BODY OF
FIXED-VALUE AND OPEN-ENDED PLANS WILL SUFFER. NO!!! WHAT WILL SUFFER IS YUNG PROFIT MARGIN NILA ON FIXED-VALUE PLAN SALES.

5. Even before this, PPI wrote many schools to buy thousands of scholarships for its beneficiaries and pay in advance the whole four-or five-year courses. Not one agreed to the offer of a 10-percent annual increase. PPI pleaded. It failed.

AGAIN, THIS IS THE SAME AS OFFERING THE BUYBACK OF PLANS FROM PLANHOLDERS OR OFFERING PLANHOLDERS TO MAKE LOANS ON THEIR PLANS. ITO AY MGA STRATEHIYA PARA BAWASAN ANG KAUKULANG OBLIGASYON. LEHITIMO NAMAN ITONG MGA STRATEGY NA GANITO. PERO, AGAIN, PASENSIYA NA LANG AT HINDI GUSTONG TANGGAPIN NG IBANG SCHOOLS O PLANHOLDERS ITO. AGAIN, LET’S FOCUS ON WHAT PPI DID WRONG AND SHOULD HAVE DONE (see no. 4 reply). THEY MISMANAGED OPERATIONS AND EVEN DECLARED DIVIDENDS IN EARLIER YEARS. THEY EXPANDED BRANCHES AND INVESTED IN DUBIOUS INSTRUMENTS.

6. PPI bought back plans but the secondary market, which it has no control of, has brought prices to unreasonable levels.

AGAIN, SIMPLENG PANLOLOKO ULI ITO. SALES IN THE SECONDARY MARKET BOOST NEW BUSINESS OR INITIAL COLLECTIONS BROUGHT IN (ICBI), THE SALES INDICATOR FOR PRE-NEED COMPANIES. SO IT WAS TO PPI’S BENEFIT TO KEEP THE SECONDARY MARKET ALIVE. ALSO, HINDI NAMAN MABUBUHAY ANG SECONDARY MARKET WITHOUT PPI’S CONSENT SINCE ALL THESE SECONDARY SALES WOULD HAVE ADMINISTRATIVE PROCESSING FROM PPI.

7. After the spin-off, PPI was left with the 34,000 plans. It had looked for ways to limit liability on the open-ended plans by offering to swap them with fixed-value plans. But time was not on its side. Enrollment was creeping in fast. It had more than P300 million in cash left and $52-million worth of government-guaranteed bonds that would mature in 2010. Of the 34,000 plans, 16,000 are due for enrollment; the rest, the majority, would be due to file in the coming years and obviously would be disadvantaged if assets are liquidated now. Something must be left for them.

AGAIN, THIS JUST REITERATES THE MISMANAGEMENT THAT PPI/YUCHENGCO DID. HINDI LANG P300 MILLION ANG PERA NG PPI BAGO ILIPAT ANG LAHAT SA LIFETIME. THE $52 MILLION-“WORTHLESS” OF GOVERNMENT BONDS WAS A DUBIOUS SELF-SRVING INTER-COMPANY TRANSACTION ITSELF, NOT AT ALL FOR THE BENEFIT OF THE PLANHOLDERS. WE ARE NOT TALKING ABOUT LIQUIDATING ASSETS FOR THE AVAILING AND NON-AVAILING PLANHOLDERS. WE ARE TALKING ABOUT PPI/YUCHENGCO MAKING AMENDS AND FIGURING OUT A WAY, TO THE POINT OF SELLING ASSETS, CLOSING DOWN BRANCHES, REDUCING THEIR PROFIT MARGIN, HAVING STOCKHOLDERS INFUSE MORE EQUITY, TO SERVICE CONTRACT- AND LEGALLY-STIPULATED BENEFITS OF AVAILING AND NON-AVAILING PLANHOLDERS.

8. So PPI went to court early this month. While it sought for suspension of payment, it asked the court to allow it to use its remaining P341 million in cash to support the tuition needs of the 16,000. PPI knew it had to help pay the tuition because it is enrollment time.

NO. PPI/YUCHENGCO PRE-EMPTED THE SEC AND FAST-TRACKED ITS PETITION FOR SUSPENSION OF PAYMENTS AND PETITION FOR REHAB (THOSE ARE TWO SEPARATE LEGAL ACTIONS) TO FURTHER “PRETEND” THAT ITS HANDS WERE TIED AND HAD NO MORE FUNDS BECAUSE IT KNEW IT HAD TO PAY FULL BENEFITS OF PLANHOLDERS BECAUSE IT IS ENROLLMENT TIME.

9. PPI proposed to return all the premium payments plus seven percent net compounded interest to the 18,000 non-availing plan holders. For the 16,000 who are already availing themselves of the benefits, PPI offered tuition support, which is part of the discounted balance of remaining "availments," plus seven percent net compounded interest that they are entitled to. All these depend on the court approving its rehabilitation plan.

SIEMPRE, KAPAG GUSTO MONG MAKALUSOT, KAILANGAN MAY IBIGAY KANG “PAMPALUBAG-LOOB”. SO PPI/YUCHENGCO ALREADY COMPUTED THAT GIVING THESE PREMIUM PAYMENTS PLUS 7% NET COMPUNDED INTEREST WOULD NOT HURT THEIR POCKETS. AGAIN, THIS PROPOSAL IS BASELESS O WALANG BASEHAN KASI NGA, KUNG HINDI NAGLOKO AT NAGLIPAT NG EARNING ASSETS SA LIFETIME AT HINDI NAGFILE NG REHAB AT SUSPENSION OF PAYMENTS, WALA LAHAT ITONG “PROBLEMA” NA HINDI DAW “KAKAYANIN” NG PPI NA BAYARAN ANG FUTURE AVAILMENTS.

10. If some opponents succeed in blocking the rehabilitation, PPI would likely be forced to Square One with all the problems and no solution, or into liquidation and sell its $52-million worth of bonds before maturity. If sold now, these bonds would fetch P550 million less than if they are redeemed by 2010. This loss, all plan holders must absorb.

BLOCKING THE REHABILITATION PLAN DOES NOT MEAN NA MAPIPILITAN ANG PPI/YUCHENGCO NA ILIQUIDATE ANG NAPOCOR BOND (NA, FOR ALL INTENTS AND PURPOSES, IS WORTH NOTHING ANYWAY SINCE NAPOCOR IS A LOSING GOCC ENTITY). BLOCKING THE REHAB PLAN MEANS PPI/YUCHENGCO WILL HAVE TO (see nos. 4 and 7 above) FIND OTHER MEANS TO FUND PPI. IF THAT MEANS RESTRUCTURING LIFETIME AND PPI TO RETURN ALL EARNING ASSETS TO PPI, THEN SO BE IT. IF THAT MEANS RCBC AND GREPA WILL HAVE TO LEND OR HAVE INTER-COMPANY ADVANCES, SO BE IT. IF THE YUCHENGCOS WILL HAVE TO SELL REAL ESTATE PROPERTIES, CLOSE BRANCHES, REDUCE OPERATING EXPENSES, SO BE IT. BOTTOMLINE IS, HINDI ANG PLANHOLDERS ARE DAPAT MANAGOT SA MISMANAGEMENT NA GINAWA NG PPI/YUCHENGCO.

PPI has done more as an exercise of its obligation, legal and moral, to its plan holders. When the time bomb ticks its last, PPI will be remembered as the company that offered to return the plan holders' money plus more while it still could, and took a lot of beating for a misunderstood but correct decision.

NO. RIGHT NOW, ITS ALREADY LOOKED AT AS THE COMPANY THAT RENEGED ON ITS OBLIGATIONS AND IS BRINGING DOWN NOT ONLY THE PRE-NEED INDUSTRY BUT EVEN AFFECTING ALSO THE LIFE INSURANCE INDUSTRY FOR A WELL-UNDERSTOOD (TRANSPARENTLY MALICIOUS AND FRAUDULENT) AND INCORRECT DECISION. EVERY SINGLE DAY THAT PASSES NA GANITO ANG SITUASYON ONLY REINFORCES THAT. ACTUALLY, ALL GARCIA. TECSON, ET.AL., AND PPI/YUCHENGCO ARE TRYING TO DO NOW IS TO DESPERATELY SAVE FACE AND JUSTIFY THEIR ACTIONS. BUT BELIEVE ME, WALA SILANG KAKAMPI. EVEN IN THE PRE-NEED INDUSTRY. GALIT SA PPI/YUCHENGCO ANG LAHAT FOR MAKING A VERY STUPID AND SELFISH MOVE. RENEGING ON OBLIGATIONS, KAHIT GAANO KAHIRAP GAMPANAN, IS NEVER ACCEPTABLE. BREAKING THE “TRUST” IN A BUSINESS BUILT FULLY ON “TRUST” IS SIMPLY THE BEST REASON TO SAY THAT THESE SUPPOSED “STEWARDS OF OTHER PEOPLE’S MONEY” SHOULD NOT BE ALLOWED TO CONTINUE ON MISMANAGING THE FUTURE OF PLANHOLDERS’ CHILDREN.

TLS

 
At Thursday, May 05, 2005 12:29:00 AM, Anonymous Anonymous said...

Eraser

Eh kung wala kayong ginagawang masama, bakit
mo binura?"

This confirms that our website have been infiltrated... someone is in panic that we have gathered enough and credible data to support:"

corporate fiction of Lifetime Plans. Shielding
to avoid payment of obligation

Frathernito Brotherhood
and a firm associate

no plan to bring back PPI to its pre-Lifetime operations-- PPI isleft with lemon product line, and with no one to manage and sell

Renegiong contractual Obligations

aba aba aba

 
At Monday, May 09, 2005 9:45:00 AM, Anonymous Anonymous said...

College Education in Crisis

Five years from now, the Philippines’ tertiary
education will likely face a crisis if the current
trends in college enrolment and dropouts will
continue. Due to continuing tuition hikes more and
more students enrolled in private colleges and
universities find themselves either dropping out or
forced to transfer to state institutions.

By Carl Marc Ramota
Contributed to Bulatlat
(First of two parts)

Five years from now, the Philippines’ tertiary
education will likely face a crisis if the current
trends in college enrolment and dropouts will
continue.

Citing recent studies, the Anak ng Bayan Youth Party
revealed over the weekend that due to continuing
tuition hikes more and more students enrolled in
private colleges and universities find themselves
either dropping out or forced to transfer to state
institutions.

But the state universities and colleges (SUCs) are
plagued by similar problems: Not only are they few now
and their enrolment quotas limited, they are also
haunted by increases in tuition and other fees thus
forcing many state scholars to leave.

As a result, Raymond Palatino, vice president of Anak
ng Bayan (nation’s youth) said, students who can no
longer afford to study in expensive private tertiary
schools and are planning to transfer to public higher
education institutions may just have to give up their
dream of earning a college diploma.

Palatino also predicted an upsurge in the rate of
college dropouts and number of out-of-school youth in
the coming school year, a situation that will worsen
in 2010.

Recently, the United Nations Educational, Scientific
and Cultural Organization (UNESCO) National Commission
of the Philippines reported a measly 22 percent
overall student survival from 1st to 4th year college.
In June 2004, the Wallace report revealed that the
dropout rate in college is at a staggering all-time
high of 73 percent.

A similar study – a primer on the country’s education
system - was made by the National Union of Students of
the Philippines (NUSP) also in June last year.

Palatino said that access to public higher education
institutions, which are the last resort for students
who want to obtain a college degree, has become
impossible to many college hopefuls. While it is true
that SUCs offer a tuition lower than private schools,
educational expenditures in state schools and
universities have seen the biggest increases in recent
years, thus making it also inaccessible to ordinary
students.

Exodus from private school to public

A new report by the Commission on Higher Education
(CHED) shows that the number of tertiary population in
schoolyear 2002-2003 was 2.4 million compared to 1.87
million in 1994-1995. It cites however that while
state institutions had their population soar by
415,972 (from 399,623 to 815,595 during the same
period), private colleges and universities could only
absorb an additional 139,357 enrolees (or from 1.472
million to 1.611 million).

It is true that in 1997, enrollment in private
tertiary schools grew by 6.47 percent. By 2002 however
the figure plunged drastically to a -2.8 percent.
Enrollment figures in private schools fell by 46,354
in schoolyear 2002-2003 from 1,657,735 in the previous
year.

The exodus of college students enrolled in private
schools to state universities and colleges (SUCs) over
the last two decades is also shown in other CHED
records. In 1980, only 10 percent of college students
were studying in SUCs. By 1994, the number went up to
21 percent and in school year 2002-2003, it already
accounted for 34 percent of tertiary population.

Apparently, Palatino said, many college students have
been going in droves to SUCs in recent years because
of the incessant tuition and miscellaneous fee hikes
in private schools as mandated by the Education Act of
1982.

This is aggravated by the low priority that government
places on state education as manifested not only by
constantly chopping down education budgets but also by
reducing the number of public tertiary schools in the
country. From 271 in 1996, the number of public
tertiary institutions was down to only 173 by 2002.

As a result, enrollment figures in public tertiary
schools have also seen a sharp decline since 1997,
from a growth rate of 20.75 percent that year to only
0.9 percent by 2002.

Biggest tuition increase in SUCs

In recent years, the shift from public to private
funding of SUCs has resulted in the jacking up of
tuition and miscellaneous fees in all these
institutions. The biggest increase in tuition took
place in the Philippine Normal University (PNU) last
2003, from P10 to P50 per unit or 400 percent.

Ladderized tuition hikes are also ongoing in SUCs in
Central Luzon and Bicol until 2006. The

Central Luzon State University (CLSU) plans to
increase tuition and other fees by as much as 298
percent. Similarly, the Aklan Polytechnic Institute
will implement a 400 percent tuition increase within
four years, which effectively doubles tuition every
year.

Most of these increases were the result of the
imposition of a tuition scheme similar to the
Socialized Tuition Fee Adjustment Program (STFAP)
implemented in the University of the Philippines (UP)
in 1989. Under the program, the UP tuition shot up by
nearly 300 percent, from P11 to P300 per unit today.
This scheme is also now being implemented in public
technical and vocational schools in the country.

While some SUCs increased their tuition by more than a
hundred fold over the last years, some feigned by
pretending to maintain the same rates. What they did
however was to increase miscellaneous fees as well as
tuition in graduate schools.

At the Polytechnic University of the Philippines
(PUP), for instance, tuition remains at P12 per unit.
But the same university has imposed a 67-100 percent
hike in processing fees this school year. The biggest
increase was for the fine for late enrolment, from P10
to P100. And there are new fees charged: for shifting
form, verification of grades per subject, re-admission
fee and change of subject or schedule.

Other SUCs such as the University of Northern
Philippines in Vigan, Ilocos Sur and Samar State
Polytechnic College in Eastern Visayas collect a P200
development fee.

In UP, laboratory fees in five departments and
colleges have increased from P50 to P600. In its
graduate schools, tuition increased in 2001, from P300
per unit to a maximum of P700, a 66.67 to 400 percent
hike.

Anak ng Bayan Youth Party’s Palatino said that with
educational services now being treated as a mere
“commodity for trade,” educational institutions
previously insulated from market forces due to
relatively stronger state support in the past must
from now on bow to the "harsh discipline of the
market."

“By ‘privatizing’ institutions of higher learning, the
state must now clamp down on the proliferation of
non-viable campuses and course offerings,” he added.
“Apparently, the ideal of ‘non-viability’ is not
connected to any other concept than that of
profitability.”

Paying scholars

Overall, Palatino said, expenditures for public
education including tuition, lodging, food,
transportation and books have soared in recent years.
He cited the findings of the 1998 International
Comparative Higher Education Finance and Accessibility
Project of the University of Buffalo on Philippine
higher education which reveals that a student in a
local university or college (LUC) who lives with his
or her parents needs at least P46,950 every semester.
On the other hand, an iskolar ng bayan (state scholar)
who lives as an “independent adult” will need as much
as P101,650 a semester.

So now, most Filipino families can’t anymore afford to
send their children even to public schools, especially
given the stagnant wage level and declining income, he
said.

Based on the 2003 Family Income and Expenditure Survey
(FIES), the average Filipino family income went down
by 10 percent compared to year 2000 figures. The
inflation-adjusted average family income in 2003 fell
to P130,594 in 2003 from P145,121 in 2000.

Province of the elite

The current crisis in tertiary education, Palatino
said, should also be blamed on government’s policy of
rationalization. The policy allows SUCs to be treated
no longer as national agencies performing
socially-oriented activities and hence entitled to
government subsidy, but as income-earning entities.

“This further translates into incentives for
money-making tertiary schools, thereby fully
encouraging the commercialization of education,”
Palatino said. “The policy has ensured corporate
dominance even in public education, making tertiary
education the province of the elite.”

He said government’s own education policies further
inflate the ballooning uneducated population. “If it
will continue its present thrust on education, the
government will be driving more and more students out
of school every year,” he said. Bulatlat

Profit-makers Produce Mediocre Graduates

If the average tuition rate increase of 12 percent
continues for the next five years, the national
average per unit would reach P590.20 by 2010. By then
tuition would have increased by as high as 1,257.41
percent since 1990.

By Carl Marc Ramota
Contributed to Bulatlat
(Conclusion)

Many college students are dropping out of school, but
there are no similar danger signs as far as some
private universities and colleges are concerned. Their
new corporate owners are raking in profits as they
continue to hike tuition and other fees.

But the question is, do higher college costs mean
quality education? Not necessarily, if recent reports
about the results of board or licensure exams are any
indication.

In the current schoolyear, 381 out of 1,321 private
higher education institutions - or 29 percent of the
total – have applied for tuition increase. The
national average tuition increase is 11.37 percent or
P33.15; the current rate per unit is P334.89.

In the National Capital Region, the average tuition is
pegged at P614.54 posting a 10.83 percent increase
compared to last year’s figures.

A study made by Anak ng Bayan Youth Party on the
rising cost of tertiary education showed that in just
five years, from academic year 2000-2001 to the
present, the national average tuition rate has
increased by as much as 63 percent. The National
Capital Region (NCR) average rate, on the other hand,
went up by 57 percent.

Based on the Commission on Higher Education’s (CHED)
records on tuition increases, tuition was steadily
increasing by an average of almost 12 percent for the
last five years.

Deregulation of tuition

Raymond Palatino, vice president of Anak ng Bayan,
blamed the Education Act of 1982 for the staggering
tuition hikes in the last two decades. “By giving them
a free hand in determining tuition rate, the Education
Act effectively bestowed private school owners
limitless powers,” he said.

Batas Pambansa (national law) No. 232, otherwise known
as the Education Act of 1982, laid down the guidelines
and regulations governing the collection and
application of tuition and other fees by all
educational institutions. In particular, Section 42
gave private schools a free hand in determining
tuition rates thus allowing private schools to
increase the fee every school year.

The deregulated environment set by the Act ensured the
wholesale commodification of a fast-expanding private
tertiary education, Palatino said.

“This was also the reason behind the unexpected
collapse of the College Assurance Plan (CAP),”
Palatino said. “CAP’s downfall merely highlights how
the cost of education, particularly in the tertiary
level, has dramatically increased after the
deregulation of tuition.”

From 1990-1995 just before the Asian financial bubble
burst in 1997, tuition jumped to 275 percent. For the
last 15 years since 1990, tuition has swelled by a
whopping 670 percent.

Anak ng Bayan projects that if the average tuition
rate increase of 12 percent continues for the next
five years, the national average per unit would reach
P590.20 by 2010. By then tuition would have increased
by as high as 1,257.41 percent since 1990.

But these figures only speak of the average tuition
rate per unit in private schools. Most exclusive
schools charge tuition five times higher than the
average.

At present, Jose Rizal University (JRU) in
Mandaluyong, Metro Manila imposes the highest tuition
rate with P2,600 per unit. The runners-up include De
La Salle University (DLSU)-Manila (P1,506/unit); Asia
Pacific College (P1,240/unit); and Mapua Institute of
Technology (P1,254.64/unit).

Based on the average tuition increase every academic
year in these schools, tuition per unit in JRU would
reach P4,582.09 in five years; DLSU-Manila with
P2,654.10; Asia Pacific College with P2,185.31; and
MIT with P2,211.10. In 2010, a student with a full
21-unit load have to pay P96,223.89, P55,736.10,
P45,891.51 and P46,433.10, respectively.

“Clearly, the relentless hikes in tuition and other
fees have earned for private school owners millions of
profits over the last two decades,” Palatino says.
“This largely explains why some business tycoons like
Lucio Tan and the Yuchengcos are now venturing into
tertiary education.”

Most of these schools have consistently landed among
the country’s top 1,000 corporations since 1996. By
the end of 2003, nine schools were included in this
list. Their combined profits amounted to P1.13
billion.

Private schools frequently listed among the top
corporations in the country in terms of profit are the
Centro Escolar University (CEU), MIT, Far Eastern
University (FEU), UE, Philippine Maritime Institute
(PMI), Technological Institute of the Philippines
(TIP), AMA Computer University and STI College.

Substandard education

So, does expensive education mean quality education?
This is not so in the country: While the cost of
tertiary education has increased, the results of the
licensure examinations showed a continuous decline in
the quality of higher education in the last few years.


In 1995, the Task Force on Higher Education even said,
“College education in the Philippines is comparable to
top science high schools in the country and regular
secondary education in Europe and Japan.” This comment
is reflected by the pathetic results of annual
licensure examinations.

In the list of most popular programs, according to
CHED, are Teacher Education, Accountancy, Criminology,
Marine Transportation and Electronic and
Communications Engineering (ECE). However, records of
the Professional Regulation Commission (PRC) show that
only a fraction among the thousands who flock to these
courses are able to attain their dream professional
career.

The national passing average for these courses and for
most programs offered in the Philippines has not even
reached 50 percent. From 1997 to 2001, the passing
rate for Accountancy was only 18.40 percent;
Criminology was better with 47.60 percent; and ECE was
the highest so far with 48.20 percent.

In the 2003 licensure exams, Accountancy remained the
lowest at 19 percent. Teacher Education, both in basic
and secondary level, had only a 26 percent passing
rate.

So mediocre were the results that in the same year,
CHED ordered the phasing out of 115 higher private
institutions that had a five percent or lower passing
rate in the licensure exams. Of these, only 17 schools
have followed the order.

Some schools are offering programs without government
permit. The most notorious of these, according to
CHED, is the ABE international School of Business and
Economics. ABE is currently offering degrees in Hotel
and Restaurant Management, Business Administration,
Tourism and Accountacy in its Caloocan, Taft and
Makati branches with no standard permit from CHED.

Dim future

Palatino urged lawmakers to repeal the Education Act
of 1982. “Our lawmakers must immediately act to stop
these tuition and miscellaneous fee increases and put
a moratorium on the proposed new round of hikes for
the next school year. Unless the government starts to
flex its muscles on these increases, we will be seeing
a higher drop-out rate and bigger number of
out-of-school youth in the next five years.”

Even CHED admits that “unless BP 232 (Education Act of
1982) is repealed or amended, the most viable course
for all concerned is to take a close look at where the
increases are going.”

“Unless the government reverses its present education
policies and its thrust to hand over tertiary
education to private sector and until it flexes its
muscles to stop the incessant hikes in tuition and
other fees, it will certainly bury the confidence,
hopes and great faith of the Filipino youth and the
nation for a brighter future ahead,” Palatino warned.

 
At Monday, May 09, 2005 5:21:00 PM, Anonymous joy chu said...

I am a PEP TRAD holder too. Like most of you, I also bought the PEP TRAD plans based on the INTEGRITY of Mr. Yuchengco and everything that he & his business group stood for. I am a 2nd hand owner & I put in all my savings to pay for the educ plans of my children.

I would like to know how I can join the e-group. I would also like to be advised of upcoming activities. My email address is: joytugas_chu@yahoo.com

 
At Tuesday, May 10, 2005 7:32:00 PM, Anonymous Anonymous said...

i can tell you something about prudential that you may not know. as they admit they have 58,000 trad plans - they are second only to CAP.

what makes you think that the damage to pacific is isolated? it is true for the following players. check the SEC records - first is CAP, second is prudential, in third and fourth - are platinum plans and TPG ( colayco).

the only safe companies are those that never sold a traditonal plan : philam, sunlife and manulife. they are all MNCs kasi and they have ties to mother companies abroad. while there are fiascos too abroad. you cant help it that our local track records for integrity leaves a lot to be desired..

sorry guys, dont be lulled into compalcency - this extends beyond the shores of PPI and - is the beginning of a scandal that will rock philippine insurance.

 
At Thursday, May 12, 2005 5:26:00 PM, Anonymous Anonymous said...

i can tell you something about prudential that you may not know. as they admit they have 58,000 trad plans - they are second only to CAP.

what makes you think that the damage to pacific is isolated? it is true for the following players. check the SEC records - first is CAP, second is prudential, in third and fourth - are platinum plans and TPG ( colayco).

There is another which sold trad educ plans - Pet Plans.

 

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