Monday, May 09, 2005

On the Saturday walkout

Before anything else, our apologies for not having posted anything over the last 24 hours. So many things have been happening and we have had to process a lot of new information coming in. But we thought we'd comment on the mischievous attempts to discredit Atty. Piccio.

We are sure that by now, most of you have gone through the comments of Reviewer 4. You are also aware of the massive backfire that YGC brought upon itself with its PPI Planholders meeting last Saturday.

And, oh my, Atty. Piccio has really caught the ire of the YGC spindoctors! It was such a neat set-up with the media in attendance and having the event stage managed with pre-managed questions to be entertained by the PPI folks. It would have really been a major public relations coup for YGC to show smiling planholders on TV and print. All that money spent only to see the headlines the following day talking about the walkout.

As you can see, conscience stricken people have forwarded their guarded views at 2:29:32 am on Sunday to dish the dirt on Atty. Piccio. You really have to wonder about how condescending the view of YGC and its spindoctors have on the supporters of the coalition could possibly be.

They probably are convinced that we don't even know how to tell the time nor immediately see that it is a half-crazed reaction to the way their carefully managed event blew up in front of their faces.

By the way, we had already encouraged Amb. Yuchengco on his PhP250 mm gesture, but even then, that may have sadly been a cynical gimmick as it seems to be tied into the rehab plan they are trying to force down on everyone.

Tsk, tsk, tsk. YGC should really think of getting professional help for their communications campaign. So far it has been amateur hour...

Candor, honesty, and an inclusive approach is the professional way to do it. Juvenile postings in this blog are really sad...First Erap, now Macoy, probably it will be MILF next...


At Monday, May 09, 2005 9:11:00 PM, Anonymous Anonymous said...

I am not a planholder, just one of the curious viewers of this drama in the internet.

Just a comment, "amateur hour" doesn't land in the front page.

At Monday, May 09, 2005 10:13:00 PM, Anonymous Anonymous said...



I had dinner with taipan Alfonso Yuchengco, founder and head of the Yuchengco group of companies, one of the oldest and largest in Southeast Asia. He built it thru sheer hard work, diligence and courageous entrepreneurship. I asked him once what is his formula for success and he replied, luck and integrity. A good name is your best legacy, he stressed.


I had dinner with taipan Alfonso Yuchengco, founder and head of the Yuchengco group of companies, one of the oldest and largest in Southeast Asia. He built it thru sheer hard work, diligence and courageous entrepreneurship. I asked him once what is his formula for success and he replied, luck and integrity. A good name is your best legacy, he stressed.

The dinner lasted for two hours at the Spices of The Peninsula and was capped by post-prandial coffee and halo-halo at the lobby. Past 80 but not his prime, he looked strong and healthy and sauntered smartly into the restaurant, despite a recent quintuple bypass. He ordered food for us and it included kebab, prawn meat baked like morcon, and noodles-for long life. The dinner was supposed to be lunch on the same day but he reset it because of a series of meetings lasting past 6 p.m.

Apparently, AY has taken full charge of what’s happening at Pacific Plans Inc., his ailing

educational pre-need plan company. AY had been into many a crisis before, including how to topple the Marcos dictatorship. He helped fund the Light A Fire Movement whose urban guerillas burned the PICC hall and a Century Park function room. He was out-hustled in buying control of PLDT during Erap’s time and in buying control of China Bank in Gloria’s time.

It seems the PPI people made a tactical—and now strategic—miscalculation. They were trying to avoid paying P300 million in tuition fee money this year and went to court to declare bankruptcy. Fortunately for them, they found a sympathetic judge.

For AY, P300 million is, I think, just coffee money. Soon after he sat down for dinner, I asked him if he could still make his flagship RCBC the No. 3 bank in the Philippines, the bank management’s vision.

RCBC is No. 9 in assets (P152 billion; with subsidiaries, it’s No. 7, P183.55 billion), No. 8 in deposits (P108 billion), and No. 6 in loans (P83 billion). RCBC’s return on equity is very good, 15.46 percent, compared to BPI’s 13 percent, Citibank’s 12 percent, Banco de Oro’s 9 percent, and Metrobank’s 6.7 percent. In other words, with P17 billion owners’ money, RCBC made P2.5 billion. With Wharton-educated Cesar Virata and Harvard-educated Roy Navarro, both former SGV headmen, at the helm of RCBC, how can you possibly miss?

Instead of answering my question, AY asked me if I know of a savings bank and or a commercial bank for sale. Of course, I am not in that business and replied "none that I know of." But it shows you AY is determined to make his bank bigger, in the Top 3 now occupied by Metro, BPI and PCI Equitable.

Back to PPI. The company may have to shell out up to P900 million just to redeem the education plans of irate planholders. The Monday after the AY dinner, I met for three hours with president of PPI, Sonny Garcia, and his rather aggressive spokesman and legal counsel, Jeanette Tecson.

They presented their case well. PPI sold education plans, promising the moon. You invest P25,000, you get more than P250,000 worth of tuition money for your kid in a school of your choice. If you have selected Ateneo or La Salle or Xavier you gain even more. Tuition in these places which look to me like honest-to-goodness businesses, can run up to P80,000 per year. Multiply that by four years, and you get P320,000.

In the late 1980s and up to early 1990s, tuition fee increases could not go beyond 10 per year. So if PPI makes money above 10 percent, it will be ahead of the game. But tuition fees were leapfrogging by more than 25 percent per year after deregulation. At that rate, you should be able to double your money every four years to beat tuition inflation.

Obviously, PPI didn’t do as well and decided to cut its losses. It parked the good plans like the memorial plans, burial plans and pension plans in a new company called Lifetime. I guess it refers to life after life or time after you cease to enjoy life. So Lifetime. In the meantime, PPI parked its money in Napocor bonds maturing to P2.5 billion in 2010.

The PPI bankruptcy ploy didn’t sit well with many planholders 600 of whom (out of 34,000) consequently organized themselves into a noisy group. They were able to create a "crisis" thru text messaging and media barrage that has hurt even the bank.

AY had to intervene. He promised to make good on the educational plans. AY is a man of honor. That should be good enough to calm the planholders. And end the crisis.


For comments and reaction, e-mail

At Tuesday, May 10, 2005 12:13:00 AM, Anonymous Anonymous said...

Regarding that article by Tony Lopez:
You've got to be kidding me.

At Tuesday, May 10, 2005 12:17:00 AM, Anonymous Anonymous said...

The sad fact is that we have learned NOT to trust the Yuchengcos. Unless I see it in writing, in specific and concrete terms on how AY plans to help out, I don't believe a single word of what he or Helen says.

At Tuesday, May 10, 2005 12:19:00 AM, Anonymous TLS said...

Although I'm sure the Coalition team has already analyzed this, I just want to spell this out also for others in the Coalition to think about and for the "plants" and pro-PPI people to know as well (that we know their plans and strategies as well).

Even without all the recent paid press releases and the inside info that I get, of course it is obvious that PPI/Yuchengco is also playing the "emotions" and "public perceptions" game. Given that they really have no hard facts to support a "positive" and "legal" view of their mismanagement and subsequent attempt to "kill" PPI and their financial and contractual obligations, they now want to "ride" on making the planholders the culprits in a reversal of roles. They are also riding on the "emotions" of people, knowing that they also need to sow disunity, raise questions and generally throw of the public's attention away from themselves.

They are trying hard to generate public opinion that the Coalition is made up of planholders who are:
1) Greedy - Wanting more, despite having astronomical returns on their premiums paid; Wanting to get benefits at the expense of non-availing or non-exclusive planholders.
2) Noisy and Troublemakers - Just out to destroy PPI/Yuchengco and just plain unruly with no basis for their actions.
3) Rich, Elite - Planholders who can actually afford to send their children to school, live in exclusive villages, drive fancy cars, go to schools like Ateneo, Xavier or La Salle, Poveda, etc., but simply want to ride on the back of Pre-Need companies and take in over 100% of what they paid for.
4) Working for other interests such as political, etc.

Of course we all know the falsehoods of the above. Pero hindi lahat ay may alam. In fact, possibly many uninformed do not know the truth. So I suggest we write more Fact sheets addressing not just what PPI/Yuchengco did but also who we are, why we are doing this, what is the situation of the pre-need industry, etc.

We should be prepared for their other strategies. We know, that they will of course have their own group of Planholders, in all probability, legitimate, who will fight for PPI, defend its rehab plan, stand up in court and in front of the press and public scrutiny, and possibly even file counter-suits or at the very least, supporting documents to the rehab.

We should probably expect that they will take the initiative and induce the Coalition or its members to incite illegal actions (just like nung panahon ng student activism, when you had to make sure your ranks were not infiltrated because that infiltrator was likely to make seditious statements and everyone would be hauled off to Crame) so that they could file criminal charges. Of course, highly visible Coalition people have already been attacked personally and will continue to be attacked. They will continue to exert effort for Coalition's and its members'reputations to be destroyed.

As expected, they will use all avenues and fronts. And while all that distraction is going on, they will again quietly slip by and get their rehab plan in and just tough it out in the courts. Unless, like Enron, Worldcom and AIG, the other parties involved just had to wash their hands and turn the perpetrators in. I'm not entirely sure how these other parties will defend themselves but if they were party to this massive fraud, then they better not wait for us to dig out the dirt they themselves dug into. We should work on these other parties, to get them on our side (just like the auditors, banks, finance and legal parties in the above-mentioned cases).

I may be giving their strategists, legal counsel, PR team, etc. too much credit but really, that's why dapat tayong "magkapit-bisig". That's how people fought back against dirty tactics, to ensure strength, unity and prevent infiltrators from getting in.

As I said in my earliest posts, I believe this will go all the way. PPI/Yuchengco is not going to simply pay the benefits we are legally entitled to. And even if they did, they know that it's already too late. They know that bayaran man nila ang buong benpisyo ng lahat ng planholders, as per contract, eh sira na ang pangalan nila sa merkado at panghabang-buhay nang may bahid na masama ang negosyo nila. Honestly, who in his right mind would want to deal with them after this? So, what good would it do to pay the planholders?

That's why i said earlier on that this is not just a fight for legal and contractual benefits as planholders, it is a fight for big business, such as PPI/Yuchengco, never to be allowed to do business like this again.

More than the economic sabotage it is dealing to a sector of the economy (pre-need), more than the disenfranchisement and trampling of rights it is committing against helpless Filipino families, it is the corrupting of values of future generations that we are fighting against. Pasensiya ang PPI/Yuchengco but we didn't start this fight. In fact, we didn't renege on our obligations. If it is turning out to be bigger than PPI/Yuchengco thought it would be, well again, that just shows very poor judgement and mismanagement on their part.

It would have been so easy to revert back all their transactions and simply "swallow their pride" and literally lose their profits but in so doing, really show what good corporate governance, honor, integrity and professionalism is all about. Pero, hindi. They believe so much in their "intelligence and cunning", their legal dexterity and financial muscle.

In fact, if they really wanted to show that AY was a man of integrity, they would not have advised him to offer P250M of his money. First of all, a professional manager and a man confident in his business/corporate governance of his people, would not offer money against that. Kahit ano pang "spin" ang gawin doon, it doesn't come off strong. In fact, its just the opposite. So yung strategists niya and PR people are really quite inept and made a huge, huge mistake there. Kaso, walang bawian. Nailabas na, eh. Also, if he was really professional, confident in his people and above-board management of PPI, and a person of integrity, the right thing to have done would have been to offer the people in PPI, Board of Directors and Officers, (that had been moved to Lifetime) up for scrutiny, legal and financial-wise, in terms of their corporate actions. That would have been a proper and strong statement. Not the lame-ass offer of money while keeping the people hidden.
Second,granted that its really his P250M, mali pa rin ang spindoctors niya. The proper thing to have said would have been that he is returning back the money that the planholders put in that he already legally earned through salaries, per diems, profit-sharing etc. Because we all know na meron iyon. No use hiding or "sugar coating" that. If it had at least been phrased that way, it would have at least been more palatable, although mali pa rin (based on my first point).

So anyway, the point is, that we need to address all these "attacks" that the PPI/Yuchengco group is making, even if they may be weak and ill-thought in terms of impact and strategy.


At Tuesday, May 10, 2005 3:03:00 AM, Anonymous Anonymous said...

I bought the PEPTRAD for my children in 1992 inspite of the fact that i knew I do not have the extra money to pay for premiums. Buying it was a hard decision, for it would mean tightening of the already very tightened meant skimping on snacks, delaying purchase of shoes, no new dresses for me and my children, walk to EDSA instead of taking the jeep from Ayala, or half order ng ulam sa tanghalian.

One of the primary considerings why i bought from Pacific is that it is a member of the YuchengcoGC. I was proud of this investment, and time and again tell/boast to our children that they/we do not have to worry of their college education. because Pacific Plans will pay for their tuition fees no matter what the costs... They educ plans were fully paid in 1997, and this made it easier 2 decide on early retirement from work.

Finally, the waiting is over. My son is going to college this June. PPI is backing out on their Obligation, and all our teachings to our children on savings and nvestments now meaningless.

I have a valid contract with PPI. I paid their premiums, and they have to pay their Obligation.

Accepting the rehab plan is like telling your children "pacensya ka na, kasi isip bata ang aming kausap" or "di bale, wag ka na lang mag aral kasi hindi tumupad ng salita ang nangako sa atin"

At Tuesday, May 10, 2005 3:14:00 AM, Anonymous Anonymous said...

The P250M will not come from AY's "personal resources" It will be coming from one of the Yuchengco Group of Companies.

At Tuesday, May 10, 2005 3:20:00 AM, Anonymous Anonymous said...

PPI officers say that the PICC event last Saturday was for YGC employees only and not for planholders. Palusot pa sila! There was a banner outside PICC which says "Welcome Planholders".

Please please please, when will you people stop lying??? The PPI agents, themselves, were asked by management to bring their planholders with them. In other words, "HAKOT" to make it appear that a lot of planholders are now siding with PPI. But their scheme even backfired at them. This is what you call "KARMA".

At Tuesday, May 10, 2005 6:21:00 AM, Anonymous Anonymous said...

From Philippine Star.
If you believe this, then I've got a bridge that I want to sell to you.....

Pacific Plans to hike equity to P1B

Pacific Plans Inc., the beleaguered firm owned by the Yuchengcos, plans to raise its equity base to as much as P1 billion in the next three or four years as it hopes to rebuild its business with the introduction of new products and the entry of an investor.

Pacific Plans president Ernesto C. Garcia said the company is fully committed to meeting obligations to all its planholders and that given sufficient time to map out its rehabilitation plan, the firm can bounce back.

Garcia said the company is now in talks with several financial institutions to provide up to P300 million in funds which will be used to pay for the company’s tuition obligations.

He said Pacific Plans currently has P340 million in available funds and that another P250 million will come from Amb. Alfonso Yuchengco’s personal resources. "Another P250 million is coming in.

We’re just waiting for the court to approve our request for the release of the funds," Garcia said.

"We are committed to serving our planholders.

Our decision to go into rehab is consistent with our objective of meeting planholders obligations. We will serve planholders the minimum entitlements they should have.

We will make sure everything is secured," Garcia said.

Pacific Plans is in need of P300 million in fresh equity infusion to stay afloat pending the approval of its proposed rehabilitation plan.

"We’re looking at a third-party investor that can infuse fresh equity," Garcia said.

To provide additional liquidity, Pacific Plans also plans to issue preferred convertible shares at 11-percent interest. These preferred shares shall be fully retired in five years.

Pacific Plans likewise intends to seek the renewal of its dealer’s license to allow it to offer education plans. The new education plan shall pay the cost of tuition and other school fees at the time of need, subject to a pre-determined maximum education benefit per year. The plan is payable in five years and will mature on the start of school year following the beneficiary’s stated birthday.

In its rehabilitation plan filed with the Makati Regional Trial Court, Pacific Plans offered to return its planholders’ payments by issuing fixed-value plans, which can be encashed in July 2010 when the government bonds in the pre-need firm’s trust fund mature.

Planholders who opt to convert their open-ended plans to fixed value plans will earn upon maturity seven-percent interest or roughly nine-percent gross per year.

Pacific Plans has started distributing P341 million in funds for the current enrollment period. It has pegged a tuition support ceiling of P22,000 per semester for those enrolled in non-exclusive schools and P28,000 for exclusive schools.

At Tuesday, May 10, 2005 6:45:00 AM, Anonymous Anonymous said...

I used to have high regards for Tony Lopez as a journalist, but after this "Virtual Business" article, I have to conclude that he succumbed to "envelopmental journalism", especially after enjoying dinner at "the Spices of The Peninsula".

Tony, why not look deeper into this PPI mess? Look into the aspects of:
1. fraudulent transfer of assets;
2. mismanagement of the trust funds;
3. conflict of interest in appointing trust banks (RCBC is a related bank, a part of Yuchengco Group of Companies);
4. violation of ceilings in investing in different asset classes;
5. failure of the trust officers to FULFILL their fiduciary responsibilities;
6. the purchase of PPI from RCBC of these WORTHLESS Napocor bonds through an ONEROUS DOLLAR-DENOMINATED LOANS FROM RCBC!;
7. the MONEY TRAIL of the EXCESS MONEY FROM THESE DOLLAR-DENOMINATED LOANS (I suspect these excess money went to finance other YGC business empire expansion, at the BEHEST of PPI Planholders. BEHEST LOANS are proofs of FRAUD!!

I still have high regards to the Philippine Center for Investigative Journalism (PCIJ). Do what needs to be done, for the sake of TRUTH and JUSTICE for all Filipinos (planholders or otherwise).


At Tuesday, May 10, 2005 6:48:00 AM, Anonymous Anonymous said...

Bakit kaya ang tahimik ng Senado dito sa isyu na ito? Pati Kongreso??

Dati, may issue tungkol sa ESCORT GIRLS, o di kaya sa FIL-SHAMS, todo-todo IMBESTIGASYON.



At Tuesday, May 10, 2005 7:15:00 AM, Anonymous Anonymous said...


We wll be having our 2nd general assembly on Saturday, May 14 2005 8am at St. Pauls-Pasig Gym.

Included in the AGENDA is the signature campaign for PGMA and the Pre-Need Industry. Updates regarding our case will be given.

Please DO COME and STAND AS ONE!!!

At Tuesday, May 10, 2005 9:31:00 AM, Anonymous Anonymous said...

Ginoong Tony Lopez nalulungkot ako at dahil pinakain ka lang sa isang magandang restorant na may masarap na pagkain ay tila yata nabili ka na ni Mr. Yuchengco. Kaming mga nagkayod magtrabaho at nagbayad ng aming gingugol na pera para sa Pacific Plan ay sana'y paunlakin mo rin at dumalo ka sa pulong namin sa Mayo 14 at marining mo naman ang aming panig. Sana sunduin mo na rin si Gng Ces Drilon at madama ninyo ang tunay na daing ng mga magulang ng mga bata na ang kinabukasan ng Inang Bayan. Pasensya na kung wala kaming mga sobreng may kalakip na "pangkape" maibibigay sa inyo dahil hirap na nga kaming makabayad ng tuition eh. - Sumsainyo isang hamak na empleyadong magulang

At Tuesday, May 10, 2005 9:36:00 AM, Anonymous Anonymous said...

I am a planholder and non-commital to any action at the moment. I would like to respond to:

3) Rich, Elite - Planholders who can actually afford to send their children to school, live in exclusive villages, drive fancy cars, go to schools like Ateneo, Xavier or La Salle, Poveda, etc., but simply want to ride on the back of Pre-Need companies and take in over 100% of what they paid for.

I didn't attend the first general meeting but I have been reading and participating through this website and I am a member of the no2pep2010 groupmail.

I also feel that the coalition is more an elitist movement because of the database of the planholders in the no2pep202 groupmail:

1) Here are statistics of the registered planholders in the groupmail that I computed:

a) Assumption - 2%
b) Ateneo - 5%
c) San Agustin - 7%
d) DLSU - 4%
e) ICA - 11%
f) LSGH - 2%
g) Southridge - 5%
h) Learning Child - 2%
i) Xavier - 34%
j) Unspecified/No School Yet - 28%

If you look at it, 100% of those who specified schools are exclusive schools.

At Tuesday, May 10, 2005 9:42:00 AM, Anonymous Anonymous said...

There has been a media blitz being undettaken by AY and PPI. Please ignore these and just concentrate on the case at hand. Press releases like AY to infuse 250M from his own pocket, and lately PPI to increase its equity to 1B in 3 to 4 years. These are all just promises!!! As they said, promises are made to be broken. Don't forget they're already trying to run away from the very first promise they for our children. Beside, if they are serious, they could just have pumped in those money to PPI and made a corporate disclosure. Then media could have picked it up from there

Even articles praising AY should not be taken at face value. Corruption in media? What else in new?

Do not visit PPI's website as well. It's full of BS. All they speak is that they did the all right thing that could have done. If you dont call it arrogance, I wonder what can you call it?? Haven't they heard of good corporate governance, prudence, transparency, sound judgement, trust, ...

At Tuesday, May 10, 2005 9:43:00 AM, Anonymous marc said...

Regarding the Phil. Star article, did this really come out? PPI looking for investors? Planning to sell new educational plans? Hahahaha, this is really funny... except that the joke is on us.

Hey, Mr. Garcia, I got advise for you, just return Lifetime Plans back into the fold; that way, PPI will get back the assets that were tunneled away into Lifetime Plans. But you don't want that to happen, because you argued that the fixed-value plans would suffer. So now you are saying the fixed value plans won't actually suffer, that's why you are looking for investors.



At Tuesday, May 10, 2005 10:01:00 AM, Anonymous marc said...

People, thanks very much for the affirmations! Thanks for the friendships formed along Kamagong St. and the different meeting halls, and the countless correspondence with faceless friends over the internet. I treasure these days, although stressful and difficult, because today I am in the company of real people with real values, who are not afraid to stand up and do something for what they believe.

Win or lose, I shall look back to these days with fondness. When all of this is over, in the future, we might find ourselves in different sides of the fence, arguing bitterly our own position statements, but I shall always remind myself of these days when that happens. This, so that I shall always argue with you as friends do, not as enemies.

For now, the real fight begins! NO TO THE REHABILITATION!

At Tuesday, May 10, 2005 10:16:00 AM, Anonymous Anonymous said...

Please educate me. Is a rehab plan necessary for PPI to get investors to infuse money? CAP did not do this. Why not recall the rehab plan?

How will anyone invest in this company called PPI if the YGC itself does not do so?

The Phil. Star article also mentioned that PPI wanted to renew its license to sell education plans which I understand are fixed-value plans. If this is the case, why did they transfer their PEP STAR fixed-value plans to Lifetime Plans in the first place. Something weird here.

Mr. Garcia, please stop all your non-sense publicity gimmicks. Pare-pareho lang naman mga sinasabi mo sa mga write-ups. Don't you have something new to say? Tigilan niyo na mga palusot niyo. You can never fool us with your lies!

At Tuesday, May 10, 2005 10:25:00 AM, Anonymous Anonymous said...

Hindi ako naniniwalang pang-elitist lang ang coalition. Kami ay hindi mayaman pero pinaghirapan namin ng aking asawa na mapunuan ang bayad sa ExclusiveI na plano ng anak ko. Ito ay sa dahilang gusto namin siyang makapasok sa isang magandang pribadong paaralan pagdating niya sa High School at College. Pero paano na iyon mangyayari ngayon?

Palagay ko, marami ang kagaya ko na naghirap para makabayad sa Pacific Plans, umutang kung kani-kanino, nagbayad ng mga penalty at nagtiis sa maraming trabaho para lang dito sa eductional plan na ito.

At Tuesday, May 10, 2005 10:36:00 AM, Anonymous Anonymous said...

Response to:

"I also feel that the coalition is more an elitist movement because of the database of the planholders in the no2pep202 groupmail:

1) Here are statistics of the registered planholders in the groupmail that I computed:

a) Assumption - 2%
b) Ateneo - 5%
c) San Agustin - 7%
d) DLSU - 4%
e) ICA - 11%
f) LSGH - 2%
g) Southridge - 5%
h) Learning Child - 2%
i) Xavier - 34%
j) Unspecified/No School Yet - 28%

If you look at it, 100% of those who specified schools are exclusive schools."

I am a planholder with children at STC. I believe the list you saw in the group site is a very small fraction of the membership base.

When you were not in the 1st general meeting, several of the 2,000 who attended already submitted their membership forms. These people did not have to register via e-mail.

Furthermore, if you notice, there are only about 254 members in the egroup so far. Assuming that all of them are planholders, how come only 22 planholders with 63 plans are recorded in the database?

The database you saw is obviously not the whole database (22 out of 2000 who attended). If you want to see and feel the real sentiment of the coalition, please attend the May 14 meeting. This way, you don't need to jump into conclusions.

At Tuesday, May 10, 2005 10:43:00 AM, Anonymous Anonymous said...

To the person who feels that the coalition is more an elitist movement because of the statistics on the schools in the no2pep2010...

Yes, it could be true that the schools specified in the egroup were mostly exclusive schools. But this doesn't mean that the scholars belong to rich or well-to-do families. Please do remember that even low-income parents had to make sacrifices to afford Exclusive education plans and bring their children to these schools. And I would say that they are the most affected. How can these children now study in exclusive schools considering the very small tuition support or the proposed 2010 payout? So, this fight is even more for them.

And this coalition doesn't distinguish social classes nor schools. We are all here because of a common cause, i.e. to fight for truth and justice against PPI and the YGC.

that most of the plan
the databaseposted the statistics of the registered planholders in the egroup or group mail and feels that the coalition is more an elitist movement be

of the database of the planholders in the no2pep202 groupmail:

If you look at it, 100% of those who specified schools are exclusive schools.

Tuesday, May 10, 2005 9:36:

At Tuesday, May 10, 2005 10:44:00 AM, Anonymous Anonymous said...

To the person who feels that the coalition is more an elitist movement because of the statistics on the schools in the no2pep2010...

Yes, it could be true that the schools specified in the egroup were mostly exclusive schools. But this doesn't mean that the scholars belong to rich or well-to-do families. Please do remember that even low-income parents had to make sacrifices to afford Exclusive education plans and bring their children to these schools. And I would say that they are the most affected. How can these children now study in exclusive schools considering the very small tuition support or the proposed 2010 payout? So, this fight is even more for them.

And this coalition doesn't distinguish social classes nor schools. We are all here because of a common cause, i.e. to fight for truth and justice against PPI and the YGC.

At Tuesday, May 10, 2005 10:57:00 AM, Anonymous Anonymous said...

Ako ay mayroong 3 original plans na ang dalawa ay availing na sa Xavier School. Masasabi ko na bawi ko na ang aking binayaran pero kasali pa rin ako sa laban na ito dahil alam kong tayo ay dinaya ng PPI at ng mga Yuchengco. Naisip ko rin yung ibang planholders lalo na yung mga di-gaanong angat sa buhay na naghirap para lang makabayad ng kanilang education plan. Ang ginusto lang nila ay makasiguro na pumasok sa isang exclusive school ang kanilang mga anak. Last year nung sinubmit ko sa PPI yung assessment ng anak ko, may nakatabi akong nanay na nagkwentong maswerte siya at nagdesisyon siyang bumili ng PEP nung siya ay nanganak. Lalo na't hirap sila sa buhay. Pero paano na kaya sila ngayon? Alam kong marami ang kagaya niya na napakalaki ngayon ng problema. Kaya nga itong labang ito ng PEP Coalition ay isang malaking tulong para sa lahat...hindi para sa mayaman lamang o sa mahirap lamang.

At Tuesday, May 10, 2005 11:19:00 AM, Anonymous Anonymous said...

I bought my children's educ. plan in the secondary market. This means that it is at a higher price vs. the the acquisition cost. But I do not blame the seller/original investor. Because he/she invested his/her hard earned money to buy that plan and when he/she sold it, it is but right to get a fair return. What I am saying is, it was alright for us to pay the present value at the time we purchase it because when we use it in the future we were also suppose to enjoy a much bigger future value (i.e., based on the prevailing tuition fee upon availment). The rehab proposition is way below the present value of our plans.
Mr. Tony Lopez and Ms. Ces Drilon, you don't realize how much damaged PPI is doing to the future of our children. How could you even side with the Yuchengcos? Do us a favor, try to hear the other side and do some research. Most of all, pray for enlightenment.

At Tuesday, May 10, 2005 11:20:00 AM, Anonymous Anonymous said...

I agree that not all Exclusive 1 planholders come from well-to-do families. I myself own this kind of plan, but I had to scrimp and save and deprive my child of simple joys just to be able to pay off that plan.. I had it redated three times because of non-availability of funds, utang dito utang doon just so I can eventually send my child to these Exclusive 1 schools which I would otherwise be unable to afford.

AND NOW WHAT!!?? She will be in High School come school year, and all her dreams are broken

.. It's hearbreaking to see my daughter crying - we can't afford to send her to her school of choice, simply because PPI suddenly turned its back on us..

Please don't say that this coalition is elitist. That is so unfair.. Besides, it's working for the rights of everyone..

At Tuesday, May 10, 2005 11:21:00 AM, Anonymous Anonymous said...

Response to:

"Naisip ko rin yung ibang planholders lalo na yung mga di-gaanong angat sa buhay na naghirap para lang makabayad ng kanilang education plan. Ang ginusto lang nila ay makasiguro na pumasok sa isang exclusive school ang kanilang mga anak."

I totally agree!!

I personally know of a family driver who together with his wife (tending a sari-sari store) saved their hard earned money to buy a PEP trad plan for their child. The man was very enterprising - having as many sidelines as possible. They were able to send the child to La Salle.

At Tuesday, May 10, 2005 11:33:00 AM, Anonymous MOM said...

Mr. Tony Lopez, and others who think the coalition is an elitist group:

What is your basis for such judgment? Because we are sending our children to the best schools?

Di ba dapat lang? We saved up to pay for the plans for 5 years. Do you know how much we had to sacrifice just to pay for those plans? Research before you speak and know your figures. This Yuchengco company sold different types of educ plans. Prices varied depending on the type of school you plan to enroll your kids. Find out so you don't stay ignorant.

Mr. Lopez, many of us do not have the connection you have and enjoy free lunches with the likes of a rich man like Yuchengco. Many of us are just ordinary employees, small business people, working hard, hardly dining in plush places like you do for free. We work hard to we can afford to pay for the premiums of plans that companies like the Yuchengcos sell.

Do you have kids now who ask you Mr. Lopez, if they have enrolled already? I have. Three of them. I am between jobs now, and don't know where to raise the money to pay for the tuition fees of my children as the tuition support I got is much too short.

You don't know how it feels to be in the shoes of people like us, Mr. Lopez. Maybe you grew up in comfort unlike the many of us parents who went through many pains in life. All we want now is to send our children to the best schools so they don't go through what a lot of us have gone through while young.

Many of us, like me, graduated in public school. Masama ba pag ipunan ang pag aaral ng anak para makapagaral sila sa pinakamagandang iskuwelahan?

Masakit ang mailagay sa kalagayan namin ngayon.

Mabuti ka Mr. Lopez pwede kumain na masarap ng libre araw araw. Kami kakayod ng husto para makakain lang ng masarap.

At Tuesday, May 10, 2005 11:46:00 AM, Anonymous Anonymous said...

To the person who posted the figures about the schools of the children.

Kung nasa Assumption, Ateneo, ICA, Xavier, La Salle, and other expensive schools ang mga anak, what's wrong with that?

The parents have worked very hard to make ends meet para matapos lang bayaran ang premiums for the plans.

If we dream big dreams for our children, work for it to make it happen, find ways to make the dreams come true, work hard, buy plans, prepare for the future, save, spend less on unnecessary items so we can pay up the plans, aren't these actions of the most responsible parents?

All of us did this for our children, precisely why we are now together in this predicament. Now people question us why we even bought plans for our children.

Tayo pa ang tanga ngayon kung bakit tayo naniwala grupo ng Yuchengco.

The Yuchencos are ssssooooooo rich, we are just simple folks who prepared for the future of our children. Saving up whatever penny we canset aside for the plans. Sayang lang ang preparation natin, wala pala tayo maasahan.

God sees all of these. Parents, God knows what we are all going through. God knows our intentions: makapag aral lang ang mga bata, masaya na tayo. Di tayo pababayaan.

At Tuesday, May 10, 2005 12:18:00 PM, Anonymous Anonymous said...

ako bilang OFW dito sa gitnang silangan ay nagtratrabaho upang mabigyan ng magandang kinabukasan ang aking mga anak. ano ang masama kung mangarap kami na makapasok sa magandang school ang anak namin. kaya kami kumuha ng educational plan ay upang matugunan ang pangangailangan sa pag-dating ng araw. ang araw na yaon ay dumating ngunit ang paghahanda pala namin ay nauwi sa wala. alam kaya ng nag comment na pang-elitista lang ang mga nagrereklamo laban sa rehab ang paghihirap at pagtitiis ng isang magulang na mawalay sa kanyang mga minamahal para lang matustusan ang pangangailangan sa araw-araw. mahiya ka naman!!!!
ang sabi nga sa commercial noon..




ofw/saudi arabia

At Tuesday, May 10, 2005 12:19:00 PM, Anonymous Anonymous said...

Hindi nga naman mga elitista. Aping-api nga,e.

Never mind if the tuition grew by 650% or so in the last few years. Di pwedeng soli lang ang pera na may konting kita. Nangako, e, dapat bayaran.

And you call PPI arrogant?

At Tuesday, May 10, 2005 12:35:00 PM, Anonymous Anonymous said...

arrogant? definitely! Philip Piccio embodies that arrogance.

At Tuesday, May 10, 2005 12:41:00 PM, Anonymous Anonymous said...

Tony Lopez on envelopmental journalism? Wouldn't we want to know how the Yuchengco's work on envelopmental deal with CNN and BBC? Can we invite these internationals into reading our webpage?

At Tuesday, May 10, 2005 1:06:00 PM, Anonymous Anonymous said...

Do you know that only a small minority of the planholders's scholars are enrolled in elite schools?

So, please represent your own group "the coalition", and not the whole planholders.

At Tuesday, May 10, 2005 1:11:00 PM, Anonymous Anonymous said...

Do the person talking about elitist:

Duh? Isnt Yuchengco one of the most elitist figures in the country? Would not other elitist (and non-elitist) not want to put their money with someone who has that reputation and has also done quite well in business?

So whether the planholders are elitist or not should not make a difference - in the end, we are united in one common goal against a common foe.

At Tuesday, May 10, 2005 1:21:00 PM, Anonymous Anonymous said...

sa mahigit kumulang na sampong taon, ako ay pilit na inalukan ng traditional educational plan. hindi ako bumili dahil sa hindi talaga namin kaya ang magbayad ng obligasyon twing quarter para doon. Pero ng ang sabi ng sales rep nila: "last chance mo na ito, kasi discontinue na ang traditional plan" Alam na alam ko noon at alam na alam din ng PACIFIC PLANS INC. na taon taon ay tumataas ang halaga ng tuition fee,at sa takot ko na hindi makapag aral ang aking mga anak, bumili kami ng non-exclusive plan. Limang taom namin binono ang pag bayad. na lapse ang plan, pero nangutang para lang ,a reinstate at hindi mawala sa amin ito. kami ay naghirap para lang makuha ang pangako ng Pacific Plans, one of the Yunchengco Group of Companies, na babayaran nila ang tuition kahit magkano pag dating ng panahon nang pag aaral ng aming mga anak.

Hindi naman nalugi ang PPI.... siguro mababawasan ang kita, kung kaya't itinatatag ang Lifetime Plans, Hindi ba't sila ang nag pumilit sa amin na bumili sa kanila? Sila rin ang nagsabi kung magkano ang halaga nito, at sila rin ang nagsabi kung ano ang kanilang obligasyon. Yes lang kami ng yes sa sinabi ng Pacific Plans, Inc.

Pero kung kami ay lolokohin lang pala ng mga billionaryo ay


At Tuesday, May 10, 2005 2:05:00 PM, Anonymous NANAY said...

Mr. Yuchengco,

Ikaw ay taong marangal. Di ko alam kung ikaw ay galing sa hirap. Ako galing sa hirap. Isa akong ina na nag elementary at high school sa isang public school. Nag kolehiyo sa U.S.T. Tatlo ang aking anak na pinag aaral ko sa magandang eskuwelahan, elementary at high school- ang hindi ko natikman noong ako ay bata.

Simple lang ang buhay namin, pero dahil sa Pacific Plans, Nagawa kong pag aralin ang mga bata sa magandang iskuwelahan. Exclusive1 ang binili kong plano. Mahal pero pinilit kong bayaran kahit laging muntik muntik na mag lapse. Actually nag lapse pero napareinstate ko rin.

Maraming pagtitiis ang ginawa ko mabayaran lamang ang plans. Masaya ako na napag aaral ko sila sa magandang paaralan. Ngunit ngayon, ako ay nag aalala dahil baka wala na ako maasahan sa plans na pinaghirapan ko bayaran.

Mr. Yuchengco, pakinggan mo kami mga ordinaryong tao lamang. Alam namin narating mo ang kinroroonan mo ngayon dahil din sa mga bumuli ng mga produkto ninyong plans.

Di kami kasing yaman ninyo. Masaya na kami na makita maayos ang pag aaral ng mga bata.

Lahat kami ngayon kinakabahan. Ano kaya ang mangyayari. Nakakasakit sa loob na kung sino yung pinagkatiwalaan mo ng perang pinagtrabahuhan mo, ay sya rin ang iiwan sa yo.

Sana ay magising kayo. Baka namam nakakalimutan mo sa amin din galing ang kayamanan ninyo. Kami na kumakayod upang bayaran ang binili namin sa inyo.

Mr. Yuchengco, tingnan din ninyo ang kalagayan namin. Di na kami makatulog.

At Tuesday, May 10, 2005 2:30:00 PM, Anonymous Anonymous said...

Sagot kay nanay:

Kung makakahintay kayo na walang katapusan, at may pera kay habang naghihintay, sumali kayo sa Coalition, dahil iyan ang gusto nilang mangyari. Alam niyo naman kung gaano katagal ang mga korte dito. Parang Pepsi 349 ito, labing tatlong taon na, wala pang resolusyon. labing tatlong taon ka hindi makakatulog.

Kung hindi, mag yes kayo sa rehab plan. Dahil mapapaikli ang paghintay natin. May plano na nakalatag. Mas-sigurado.

Iyung alok na pera ni Mr. Ambassador ngayon, tanong mo sa Coalition kung gusto nilang tanggapin mo iyan. Sa kanila, ok lang na hindi, dahil kaya nila supportahan ang araw-araw na gastos.

Desisyon mo iyan Nanay sa iyong sariling pangangailangan. Iba't iba ang pangangailangan ng tao, iyan lang dapat ang maintidihan ng coalition.

At Tuesday, May 10, 2005 2:31:00 PM, Anonymous BING said...

Ms. Helen YUCHENGCO DY, Mr. Yuchengco:

Marami sa amin ngayon na pinaglalaban ang aming karapatan bilang planholders ay mga ina. Iba sa amin mga single parents. Bumili ng plans para ang mga anak ay maging maayos ang pag aaral sa kabila ng mga ibat ibang situwasyon sa buhay.

Tao rin kayo, may puso, may isip. Noong pinasok ninyo ang negosyo ng educational plan, siguro, may maganda naman kayong pakay. Di lang naman siguro para kayo ay yumaman. Siguro pinasok ninyo ang negosyong ito upang makatulong sa kapwa.

Kaming mga ina ay labis nag aalala. Marami kaming dinanas na sakripisyo upang matapos bayaran ang educational plans na binili namin sa inyo. Paano na ngayon kung ganitong di ninyo gagawin ang sinabi ninyong babayaran ninyo ang tuition fee kahit ano ang halaga?

Exclusive 1 ang kinuha namin. Mahal ang benta ninyo sa planong yun , di ba? Di ba bibabayaran ninyo ay DECS approved fees lang. Di naman ninyo binabayaran lahat ang assessed fees ng school , di ba?

Kung meron kayong pagkakamali sa mga desisyon ninyo sa pricing ninyo, kami ba dapat ang kakarga ng pagkakamali ninyo?

May mga kasama rin kayo sa industriya na nagbenta ng open- ended plan, hanggang ngayon, maayos naman sila. Nakakabayad naman sila ng tuition fee ng mga scholars. Bakit kayo, hindi? Dahil, meron kayong ginawang mali na kaming mga magulang ang pumasan para sa inyo.


Nawa ay lumago pa kayo at marami pa kayong mabentahahan at iiwanan isang araw.

Sa mga inang tulad ng marami sa amin, iisa lamang ang aming pangarap: na makitang maayos ang pag aaral at buhay ng aming mga anak. Helen babae ka, siguro isa ka ring ina. Alam mo, gagawin mo ang lahat maipaglaban mo lamang ang iyong anak, kahit saan ka umabot, di ba.

Ganoon ang karamihan sa amin, INA. Kahit saan umabot, ipalalaban ang anak. Walang masama kung sa pinakamahal na iskuwelahan pag aralin ang mga anak namin. EXCLUSIVE1 ang plano namin. Dapat lang. HELEN

At Tuesday, May 10, 2005 3:07:00 PM, Anonymous Anonymous said...

Viewer only:

Isn't it interesting that after someone posted this:

Anonymous said...
Do you know that only a small minority of the planholders's scholars are enrolled in elite schools?

majority of posts are now in tagalog. ;-)

At Tuesday, May 10, 2005 3:13:00 PM, Anonymous bmw said...

"Anonymous said...
Viewer only:

Isn't it interesting that after someone posted this:

Anonymous said...
Do you know that only a small minority of the planholders's scholars are enrolled in elite schools?

majority of posts are now in tagalog. ;-) "

Eh ano pa nga ba! Gagamitin na naman ng mga elitista ang mga karaniwang tao para sa kanila pansariling kapakanan.

At Tuesday, May 10, 2005 3:27:00 PM, Anonymous Anonymous said...

sa sino mang nag post nito:

sana ay maliwanagan ka...

"Do you know that only a small minority of the planholders's scholars are enrolled in elite schools?"

sa katulad naming nagtratrabaho sa ibang bansa, ang una naming hangad eh mapag-aral namin sa magandang school ang aming anak upang sa ganoon eh magkaroon sila ng magandang pagkakataon na guminhawa ang buhay upang hindi na nila danasin ang mangamuhan sa ibang bayan. sa tingin mo ba eh papansinin kami ng higanteng kalaban kung wala ang "coalition"? ang ipinaglalaban lang namin dito ay ang aming karapatan na bayaran kami na naaayun sa napagka-sunduan. ito ba ay mahirap maintindihan? ngayon kung gusto mong tanggapin ang alok ng pacific plan na soli bayad plus 7% ay humayo ka at tanggapin mo. wala naman pumipigil sa iyo. sa ngayon hindi na pera-pera ang ipinaglalaban kundi prinsipyo na. ako ay nagpapasalamt sa bumubuo ng coalition dahil sa pagmamalasakit nila. darating ang panahon na tatanungin ako ng anak ko kung ano ang ginawa ko noong panahon na nanloko ang me utang, at taas noon akong sasagot sa kanya na ipinaglaban ko ang aking karapatan. ngayon, kung mahirap para sa iyo na sakyan ang ipinaglalaban bahala ka sa buhay mo.


ofw/saudi arabia

At Tuesday, May 10, 2005 3:33:00 PM, Anonymous Anonymous said...

To the one who posted about elitist,

If your boss Yuchengco didn't want to pay for these schools, then sana they didn't offer exclusive 1 plans na lang. Why did you sell plans that will pay for such schools, then condemn the planholders for using it? Exclusive school or not, all of us are victims of Yuchengco. Where does it say that it's ok for Yuchengco to defraud planholders as long as they're elitist? Even if my kids go to the mentioned schools, I haven't had the chance to eat at Spices. Mas elitista pa si Yuchengco, so Yuchengco stooges, don't use that against the coalition.

I would think the reason why most of the leaders (not members) of the coalition come from good schools is bec they have more time and resources to contribute and donate to the cause. The poorer planholders are trying hard to make ends meet and are worked to death, how can we expect them to sit at a computer and log on the internet? The best we can do is fight for them too.

At Tuesday, May 10, 2005 3:42:00 PM, Anonymous Anonymous said...

so when will mr. ____ pay us for destroying ygc?
he better pay us some good money after the magnificent show we put up at the PICC... hehehe
great set-up really.

At Tuesday, May 10, 2005 3:47:00 PM, Anonymous Anonymous said...

Hey people,
Just stop responding to those comments about elitism. They are just trying to detract from the real issue which is the CONTRACTUAL OBLIGATION OF PACIFIC PLANS AND THE YUCHENGCOS.

And to the stooges,
Admit it -- the Yuchengcos and Liway Gener seriously underestimated the planholders of PPI. You thought we'd just grumble and accept what you have done. Well, you thought wrong. If being elitist means knowing your rights and fighting for it, then I'm all for it!

And hey, a lot of social changes were sparked by so-called elitists like Jose Rizal. Read up on your history.

I hope this is the last of the topic b/c it has totally NOTHING TO DO WITH THE REAL ISSUE.

At Tuesday, May 10, 2005 3:51:00 PM, Anonymous Anonymous said...

To webmaster,
I think it is time to monitor the IP addresses again. Looks like a lot of stooges coming in. It's such a waste of time plowing through nonsense posts.

At Tuesday, May 10, 2005 4:27:00 PM, Anonymous Anonymous said...

I agree! Let's monitor the IP addresses. These are just nuisance posts.

Ewan ba, they have naman their own pro-rehab website, but they choose to post here....guess this blog is read by a wider set of planholders. Wala bang magbabasa sa kabila kaya nandito kayo?

We are free to choose our course of action. No need to throw mud at our decision to go with the coalition. We respect your decision to go pro-rehab, but when you post here, respect ours as well! In the end, we are all just parents trying to make the best decision for our children.

At Tuesday, May 10, 2005 4:36:00 PM, Anonymous Anonymous said...

To whoever posted that comment/calculation on how many of us coalition members enrolled our kids in expensive exclusive/private schools --

Seriously now, we bought TRADITIONAL plans that are FOR EXCLUSIVE SCHOOLS NOT because we are rich but BECAUSE WE WANT TO GIVE OUR KIDS THE BEST EDUCATION WE COULD GIVE...Nagkandahirap-hirap ang marami sa amin just so we can afford to pay for the premiums...we had to SACRIFICE... get it? Nagsakripisyo kami to be able to give our kids the kind of education that we weren't so lucky enough to have had during our youth...


At Tuesday, May 10, 2005 4:50:00 PM, Anonymous Anonymous said...

In summary, speak only for the members of your coalition but don't even dare say that your represent all planholders,for that will be a major misrepresentation.

At Tuesday, May 10, 2005 4:58:00 PM, Anonymous Anonymous said...

May 9, 2005

Virtual Business
Manila Times

Dear Mr. Lopez,

We read your article in today’s issue of the Manila Times on "AY and PPI" with great interest. Together with my brothers and sisters, we have over 10 PPI traditional open ended plans for our children.

In the interest of balanced reporting, may I respectfully suggest that you also meet with the head of the PEP Coalition to hear the planholders’ side. For one, it is grossly inaccurate to say that there are only 600 planholders in the “noisy”coalition. I assure you there are more than 600 – much, much more. However, I am willing to grant that about 600, more or less, are noisy.

Likewise, the issue of deregulated tuition fees being raised by PPI Management as the principal cause for their inability to pay up is irrelevant. The reason why we, the parents & grandparents, decided to buy the open-ended traditional educational plans back then was precisely because of the firm belief that tuition fees will be deregulated and will, therefore, go up, hence, the investment in PPI Educational Plans. There must be something seriously wrong if Pacific Plan management did not see that coming, isn’t it?

The crux of our complaint, however, is the broken promise of the Yuchengcos and of Pacific Plan that by getting a Pacific Plan, "you have just made certain that no matter what the cost is, no matter what happens, your child is assured of education."

In addition, we were told that "This plan is an inheritance of knowledge that you are handing to your child. It is of inestimable value. There can be no greater gift."

Capping their claims, they went further to say that "Pacific Education Plan offers more than just education. It answers your child's future and everything that comes with it."

Therefore, no explanation from Mr. Yuchengco, Sonny Garcia, President of PPI, and his spokesperson and legal counsel, Jeanette Tecson on the current financial situation of PPI can elicit any sympathy from us. When the Yuchengcos and PPI surreptitiously transferred their profitable plans to Lifetime Plans and later filed a case for rehabilitation, they have lost all credibility.

From 1992 to April 2005, there was no attempt to discuss the financial status of PPI and work out a solution with the planholders. If they foresaw the impending difficulties after 1992 and responsibly informed the planholders, we could have pursued alternative plans to provide for the education of our children. Instead, the Yuchengcos and PPI opted to pull-out the rug from under the unsuspecting planholders' feet who foolishly believed in the Yuchengco name. This they did immediately before the 2005-2006 enrollment.

Now, no matter which way we look at it, that is DISHONEST, and certainly does not add up to a GOOD NAME.

Mike & Enya

At Tuesday, May 10, 2005 5:11:00 PM, Anonymous Anonymous said...

tony lopez give me a break that's what you call spin a win AC DC yan attck and collect defend and collect

At Tuesday, May 10, 2005 5:21:00 PM, Anonymous Anonymous said...

I just love reading the posts in this blog. Carry on, guys. Sa mga nagiisip kung paano iboycott ang YGC: 1. Do not accept RCBC cards/checks as payments.
2. Stop paying for insurance bought under Malayan Group.
3. Bibili ka rin lang, basta huwag from Honda Quezon City.
4. Pigilin makipag transaksiyon with RCBC, House Of Investments, Subic Power Corp., EEI Corporation, First Malayan Leasing & Finance Corp., IPeople, Inc., Manila Memorial Park, La Funeraria Paz Sucat, HI-Eisai Pharmaceutical Inc., Landev Corporation.

At Tuesday, May 10, 2005 5:42:00 PM, Anonymous Anonymous said...

Ako ay kumuha ng plano sa PPI at Non-exclusive ang kinuha ko para sa anak ko noong 1989 na noon ay three months old lang. Ang asawa ko ay isang ordinary seaman lang at kaya ko ikinuha ng plan ang anak ko ay para makasiguro na makapag-aaral siya ng college dahil ang katuwiran ko ay hindi panghabang panahon ang pagtatrabaho ng seaman. Noong late '90's nagkaroon ng heart attack ang mister ko kaya di na siya nakapagtrabaho kahit medyo nakakarecover na siya. Sa ngayon hirap na hirap kami dahil ako lang ang nagtatrabaho at may mga utang pang pinababayaran dahil sa pagkakasakit niya kaya walang natitira sa suweldo ko. Ang kasiyahan ko lang ay nasiguro ko na ang pang college ng anak ko. Ngayon taon na magka college na ang anak ko bigla ganito nga ang nangyari sa PPI. Paano pa mag aaral ang anak ko kung di naman ako makakapag-avail sa PEP. Nagpunta ako sa le Pavillion para mag clainm tapos ang sabi ay sa 2010 pa daw ako makakakuha sa PEP. Pasensiya na lang daw sabi noon abogado na nakausap ko. Paano na lang ang kinabukasan ng ank ko? Iginapang ko ang pagbabayad ng plan niya tapos pasensiya na lang ang isasagot nila. Hindi kaya may anomalyang nangyari sa PEP kaya nagkaganyan tapos mga planholders ang magsasuffer? Kasalanan yan ng management o ng ilan nilang employees kaya di dapat ang mga planholder/scholars ang magdusa. Kung halimbawa kaya baligtarin natin ang situation. Sila ang tumayo na planholders at ang planholders ang may ari ng PPI, ano kaya ang masasabi nila? Di din kaya sila magdamdam?
Ang panalangin ko lang, sana magkaroon naman ang management/Yukengco's ng damdamin maka diyos at di pangsarili lang ang iniisip. Nawa'y di sila makarma sa ginagawa nila. Puwedeng hindi sila pagtamaan niyan kundi ang kanilang mga anak at mga magiging apo. Dahil ang alam ko ang karma ay nangyayari hanggang sa ikapitong generation.

At Tuesday, May 10, 2005 5:48:00 PM, Anonymous Anonymous said...

Allow me to comment on the contents of flyer that PPI gave out that Saturday.

1. "... reacted prudently". Tunay na wise move, as in malaking pang ootso ang inyong ginawa. Imagine planholders pa ang may pagkakamali kasi bumili ng plans and expected PPI na babayaran kahit magkano ang tuition. Prudent kung tinigil na nuong 1992 ang pagpapatuloy ng pagbebenta of any unpaid educational plan. Palihabsa, gahaman, sayang ang kita.
2. "... honor obligations despite legal cover". Section 15, may regulation that can void the contract daw. Hindi ba Education Act of 1980 ang nag deregulate ng tuition, well before they sell the plans. Sabi nga ng counselors, para maiwasan ang malaking pananagutan bumili ng Education Plan mula sa Pacific.
3. " Put in additional 1.5 billion over the years...for the 56,000 scholars". These 56,000 must have paid 5.6 billion pesos kung average natin na 100,000 ang bawat isa. Pero teka, ano ba ang 1.5 billion, kung kita nga ang PPI ng 1 billion nuong 2003. Isang taon at kalahati lang nawala sa kita, ipinagmamalaki? Nakakatawa talaga.
4. " PPI instead sold fixed value plans..through a spin off to protect." Para majustifify ang spin off, ang rehab plan at maitago ang maraming mga pagkakamali ng PPI management.
5. "offered to various schools an advance tuition payment..." Mukhang sa wakas, may tama ring nagawa..kaya lang, maige siguro, binili na lang ang mga exclusive schools.

Medyo mahaba na, malaki na ang bayad ko sa Internet. Bukas na lang uli. Siguro to those who have seen the can react too. Kaya lang, hindi kaya waste of time ...hmmmm...Continue with the struggle. Down with Yuchengcos. Ipakulong ang mga opisyal ng Pacific Plans.

At Tuesday, May 10, 2005 7:37:00 PM, Anonymous Anonymous said...

tony lopez nasiraan ka na ba? anong kala mo - parehas lang iyan , mga sobrepena, mga yuchengco - sino susunod, colayco, alba -

men of integrity. ginoo ko po !!! ang tawag djan nagpapaloko lang tayo sa mga iyan!

At Tuesday, May 10, 2005 9:15:00 PM, Anonymous marc said...

Regarding the posts to boycott the YGC:

I'm all for it, because it is a legitimate form of protest and given the circumstances, we are well within our rights to declare a boycott.

Just reminders:
A) the point is to educate the public that the YGC, through Pacific Plans, betrayed us (and they continue to betray us still) and cannot be trusted!

B)The second point is to drive home the lesson that it should never pay to betray the trust given, or else this will corrode and destroy the social contract that binds us together. Imagine the anarchy if we are all allowed to renege on our obligations by manufacturing our own liquidity problems ... Thus, PPI (and by extension through collusion, the YGC) should not be allowed to get away with this betrayal of trust

Still, some comments as we do not want planholders to get the raw end of the deal, even as we advocate a boycott.

1) If you have paid your insurances already and cannot get any refunds, don't lapse your policies. Just renew with a non-YGC company afterwards

2) Do not surrender your Lifetime Plans products, as you will only get at most 50% of the amount you paid, and Lifetime Plans gains with your surrender. This is a tricky issue if you are still paying, I'll respond to this separately.

3) For life insurances, if you are no longer insurable, don't lapse your plans at all as you might not
get any insurance after all anywhere.

4) Let us focus on those items that have low switching costs, such as moving our bank deposits away from RCBC, and the like.

Again, the point is to educate the public and to penalize betrayal of trust...


At Tuesday, May 10, 2005 9:50:00 PM, Anonymous Anonymous said...

It was Pacific Plans Inc. who brought out the "traditional educational plan". They offered it to us via explanation- "you can't be assured of your children's future most specially when the tuition fees goes up". Who made the offer in the 1st place?

And for the coup de grace- "Yuchengco Group" yan! "May connection yan sa RCBC, Malayan Insurance Etc."

Puro pala "BULLSHIT"! Tapos ngayon sila pa bida- "tuition support"-tayo pa ngayon ang may utang na loob?

Mag titiwala pa ba kayo ke Yuchengco? E pano pag nag request sila ng rehab para sa Mapua (for whatever reason), RCBC, Malayan Insurance? E pano pag sa Funeraria Paz (YGC also) mag pa rehab din?

Paktay na, paktay uli!

O di kaya- Paktay iba araw! Die Another Day?

To the other blogger- "isip bata"? Please don't insult the kids!


At Tuesday, May 10, 2005 10:53:00 PM, Anonymous rita said...

just want to express my thanks to the coalition. keep up the good work. because of what ppi did, i have to work double shift to raise more money for my children's tuition this semester and regretfully cant help much. but during breaks, i try to keep abreast of what is happening. it is really sad to see that some people just cant seem to understand that not all rich people get the trad exclusive plans. like me, i have to break my back working long hours just to be able to pay the installments. in fact naglapse ng ilang beses and after saving enough saka pay again. that's how hard it is for me. i am a graduate of an ordinary school and i saw the advantage of those who graduated from exclusive schools. so i dream to give a better education for my children that they will be able to enter exclusive schools. so to say na only elitist ang holder ng exclusive plans ay isang malaking pagkakamali. i should know, for i am only a clerk who dare to dream na my children would have a better life than me, pinning my hopes, their dreams in pacific plans. now, papano na ang education nila? for those who are accusing na only elitist and holder ng exclusive plans, you know very well in your heart na this is not true.i dont know what is your motive, but remember, there is a God who knows what is in your heart and will deal with you accordingly, if not in this life, in the thereafter.
to the coalition, thank you for fighting for the rights of those underprivileged people who dared to dream, but whose dreams were shattered by pacific plans,inc.
Please continue the good work you are doing for us. for justice and for all the children whose dreams were broken. May God bless you all!

At Tuesday, May 10, 2005 11:18:00 PM, Anonymous Anonymous said...

"so when will mr. ____ pay us for destroying ygc?
he better pay us some good money after the magnificent show we put up at the PICC... hehehe
great set-up really. "

To: Whoever posted that message;

Somehow someway someone will trace who you are.

Maybe you can hide, but not for long!

Manuod na lang kayo sa wide screen. May mangyayari din sa mga taong gaya nito at mga amo n'yang bwaya! Baka hindi ngayon, maaring hindi bukas, pero biglaan na lang!

At Tuesday, May 10, 2005 11:32:00 PM, Anonymous peewee said...

Is it true that the maximum tuition fee support for Exclusive1 enrolled in exclusive school is P28,000 ? How come I only got P22,000 today when I enrolled my daughter/scholar in La Salle ? I asked a PPI guy why I didn’t get P35,000 which was the alleged maximum given but he said ‘coz La Salle is on trimester program and the maximum is P22,000. Then I read here its P28,000, hello? Ano ba talaga, kuya? I’m getting so stressed with this PPI fiasco I haven’t slept properly since they started this, I needed to borrow money to pay my daughters tuition and masama man sa loob ko, I claimed that f---ing tuition fee support, tapos ganito, what’s this, panibagong anomalya na naman? … I’m a single-parent who’s not even middle income, actually I have no income as I’m presently unemployed, I was so confident with PPI before that I opted to advance my retirement ten years early to take care of my youngest son, now PPI ruined everything… to think ang daming nabentang PPI plans dahil ipinagyabang ko sila sa lahat ng friends and relatives ko? And how come some people look down on Exclusive planholders enrolling their children to exclusive schools? Di ba we need to maximize how can anybody question that, porke ba ipilit mong ipasok sa exclusive eletista ka na? Masama bang asamin ng mahihirap ang magandang kinabukasan ? Rich or poor we all want the best for our kids kaya nga pinursige at iginapang na makabili ng Exclusive 1 plan, ano pa nga ba? You know what guys, I have a feeling infiltrated na talaga itong blogspot natin… ang daming alien comments lumilihis tuloy ang totoong issue… PPI is committed to all planholders, no distinction whatsoever and they are duty-bound to honor it!!!

Let’s all unite… more power to the COALITION people… pwede bang maki-contribute? As I can give you money, I can offer my services hanggang kaya ng oras ko… I want to help out humble as it may be… how? peewee

At Wednesday, May 11, 2005 12:07:00 AM, Anonymous Anonymous said...

I have exclusvive grade school, high school, college plans for each of my two kids, now in 1st and 2nd yr HS, respectively. I am against the rehab plan. But even if YGC does NOT get its rehab ruling, I also can't trust it anymore (despite the propaganda, Alfonso Yuchengco's promises of renewed cash infusion, etc.) to count on promises that it will honor the plans until my kids' graduations.

If I am not mistaken, the coalition has opposed the collection of investment + 7% interest on 2010. Is this only because it is a computation that puts us at a disadvantage (hence the comments that we might as well have put it on bonds or better investments)? Or is it also because the coalition cannot trust the YGC to even pay whatever is promised on 2010?

If the second case is true, has the coalition considered demanding a refund of the original investment (with interest earnings acceptable to the coalition) so that we can put it in other, "safer", more honorable companies? TO THE ACCOUNTANTS HERE, WHAT WOULD BE AN ACCEPTABLE REFUND-WITH -INTEREST, IF IT'S POSSIBLE WE CAN GET IT NOW?

[I ask this not because I favor the rehab (which as I said is unacceptable), but because I want to get my money out of this company now. In fact, even if YGC offers to "erase, erase" this whole mess, reverse the creation of Lifetime and put everything back in PPI, I still would want to get my money out, of course at the best terms.]

At Wednesday, May 11, 2005 1:08:00 AM, Anonymous Anonymous said...

pls allow me to post this Q/A from the other blogsite:
At 1:45 PM, May 09, 2005,

Anonymous said...

me tanong lang po ako..

1. kung sakali na pumayag po ako sa rehab plan ng PP, matutugunan po ba nito ang pagbabayad sa matrikula ng anak ko pag dating ng 2008?
2. pagsapit po ng 2010, magkano po ang isosoli sa akin. Natapos ko pong hulugan ang educational plan ng anak ko noong 1995 at nagbayad po ako ng halagang 40,000.

maraming salamat po.

At 2:15 PM, May 09, 2005, Anonymous said...
In response to
me tanong lang po ako..

1. kung sakali na pumayag po ako sa rehab plan ng PP, matutugunan po ba nito ang pagbabayad sa matrikula ng anak ko pag dating ng 2008?
2. pagsapit po ng 2010, magkano po ang isosoli sa akin. Natapos ko pong hulugan ang educational plan ng anak ko noong 1995 at nagbayad po ako ng halagang 40,000.

maraming salamat po.

Kami po ay hindi taga PPI kundi manga planholders kagaya niyo. Kaya hindi ho namin, masasagot and tanong niyo. Mag-email nalang ho kayo sa at ang mga taga PPI ay masasagot and tanong ninyo.

At 3:04 PM, May 10, 2005, Anonymous said...
Sa nag post sa taas:

Ang alam ko po, pag naaprubahan ang rehabilitation plan ng PPI, may "liquidity window" pong ilalagay kung saan ang perang makukuha natin sa 2010 ay pwedeng ipalit na. Ang perang binayad nyo ay ibabalik kasama ang 7% compounded interest umpisa sa buwan at taong nakunmpleto nyo ang pagbabayad (1995).

Ayon sa aking nabasa rin, pag nakuha nyo na ang pera sa paraang 'liquidity window', wala na pong para sa 2010.

Pero ayon sa PPI, ibabalik ang pera nyo kasama ang mga interest basta aprubado sa korte ang kanila petisyon.

At 7:02 PM, May 10, 2005, Anonymous said...
salamat po sa paliwanag nyo.

ibig po bang sabihin noon eh yung ibinayad ko noong 1995 na 38,023 ay ibabalik sa akin sa 2010 at ito po ay magiging 104, 907. ako po ay may exclusive 2 na plan. sa tingin ko po ay ang perang isosoli sa akin ay hindi kayang tugunan ang apat na taon na tuition fee. masuerte na kung kumasya ito sa dalawang taon.
ito po ang ikinakatakot ko pag na-approve ang rehabilitation plan.
salamat po

Now tell me if you want to push for rehab.....this is a real case using 7% intestest compounded.

I want your honest...i mean very honest answer.

At Wednesday, May 11, 2005 4:46:00 AM, Anonymous Anonymous said...

so people may know:

At Large : Who should pay?

Posted 00:09am (Mla time) May 11, 2005
By Rina Jimenez-David
Inquirer News Service

Editor's Note: Published on page A15 of the May 11, 2005 issue of the Philippine Daily Inquirer

THE TRANSFER of ownership of Pacific Plans Inc. was marked not just by a flurry of paper work that must have kept a battery of lawyers working 24/7 for months, but also by the actual physical transfer of its offices. At one point, the Pacific Plans offices were relocated to a small obscure building on Kamagong Street in Makati City, "exiled" from the heart of the Great Pacific Life corporate headquarters in Binondo. The "new" Pacific Plans could count on a skeleton staff of only five employees expected to service around 34,000 "open-ended" educational plan holders. Plan holders wanting to avail themselves of their benefits were forced to line up outside the building under the hot sun and wait for hours before they could be attended to.
It was here, says lawyer Lito Dizon, that the Parents Enabling Parents Coalition Inc. (PEPCI) was born. The coalition's first president, Winnie Bonifacio, "was so incensed at the treatment they were getting that she talked with other plan holders waiting in line and they decided to organize themselves then and there."
Today, PEPCI is a registered organization leading the fight to protect the interests not just of the 34,000 holders of open-ended or traditional educational plans issued by Pacific Plans, but of all Pacific plan holders as well as of the general public.
While Bonifacio, a cancer survivor, has taken a less prominent role in PEPCI, other plan holders have stepped up to the plate. The group is now headed by lawyer Philip Piccio, who in a phone conversation exclaimed, "I've had it with large and giant corporations" getting caught in financial straits, if not outright fraud, and getting away with their actions.
"Filipinos are generally passive, and even when they're victimized, they're willing to wait for government to take action. But has anyone ever gone to jail?" Piccio wants to know. "It's time for the people to stand up and demand action from our government -- from our regulators and from our courts!"
* * *
IT'S easy for the ordinary wage-earner, such as this columnist, who invested in a "problematic" education plan such as that of Pacific Plans and of College Assurance Plan (CAP), to feel like such a fool, having fallen for the reassurances of agents that the company would make good on its promises.
But over lunch with Dizon and two bankers (who requested anonymity), all of whom are holding open-ended educational plans from Pacific, one's feelings are assuaged. These are, after all, men who should have known better and who would have spotted any flaw in the business plan of a pre-need firm. If, as Pacific Plans' president Ernesto Garcia has declared publicly, "there was no way Pacific Plans, or any company for that matter, could earn enough to cover those steady annual increases [in school fees]," then surely they would have recognized this early enough and bailed out before it was too late?
But there was no reason for them to doubt the validity of the plans they held or the reliability of the company that stood behind them, they said.
When word about CAP's difficulties first leaked out, did they begin to nurse doubts about their Pacific plans? "Not at all," says Banker A. "We knew that the Yuchengco Group of Companies was standing behind Pacific Plans and it had a solid reputation. We were confident that it would be responsible enough in terms of the investments it made with the money of the plan holders."
* * *
A STUDY provided by the PEPCI shows that even with tuition increases breaching the 10-percent cap in place when Pacific Plans started selling educational plans (the plan holders claim the average tuition hike of exclusive schools was 15 percent), there were numerous other investment instruments available at the time that were earning from 16 percent to even 20 percent per annum. In short, more than enough to cover the tuition increases.
Other pre-need firms, says the PEPCI, still manage to meet their obligations, even those of traditional educational plan holders, and this is because the funds kept in trust were managed well and invested wisely.
What happened with Pacific Plans, which is now petitioning the Makati Regional Trial Court to "bless" its rehabilitation plan which involves, among other things, converting the open-ended plans to fixed-value plans?
The PEPCI claims to have found evidence of mishandling of Pacific Plans' investment funds, and accuses the corporate parent of Pacific Plans of "bad faith" when it sought to spin off Pacific Plans, with only the open-ended plans in its portfolio, to "isolate" it from the rest of the conglomerate.
* * *
"THE BOND has been broken," declares Banker B, who posits that the relationship between Pacific Plans and its plan holders was built mainly on trust and that, by its unjustifiably poor investment performance, the company can be accused of reneging on its fiduciary responsibility.
"We didn't buy just any plan," says Banker A. "We invested in the education of our children, which means we invested in their future. This was not something we would fool around with. If we invested in a 'five-six' operation and we were victimized, we would have no one to blame but ourselves. But we chose carefully and put our trust in a supposedly reliable company. Where is our protection?"
Banker B says that his decision to buy an educational plan was rooted in a personal trauma, when both he and his wife lost their jobs in the late 1980s. Shaken by the possibility that anything could endanger his family's future, Banker B decided to ensure his children's welfare. "That's why the first thing I bought when I began earning again was precisely an educational plan!"
It's scant comfort, of course, knowing that even men learned in financial matters could have been taken for a ride. But if even they have ended up victims, who will step in for humbler folk?

"kaya sino pa ang magtutulong-tulungan kundi tayo lang"


At Wednesday, May 11, 2005 12:05:00 PM, Blogger charlie said...

Yes my children are in expensive schools, Why not? They offered it, required on time payments with penalties if not paid and alot of fine prints on the contract. And it was a contract.
They took my money, used my money(though obviously not wisely)and most probably enjoyed my money.
Now it's payback time and they don't want to keep their end of the bargain.
That, my friends, Is stealing. Thats the bottom line. Does it matter what strata of society you belong to or what you had to do to pay PPI. I believe there is a commandment about Stealing.
While conceding that they were very smart in how they did what they did. IT STILL WRONG.
By the way did I hear someone mention INTEGRITY?

At Wednesday, May 11, 2005 1:50:00 PM, Anonymous Nangarap Ngunit Nabigo said...

Napaka-kitid naman ng pag-iisip ng mga tao na nagsasabing kapag ang PEP plan mo ay pang-exclusive school, elitista ka na. Kami po ng aking asawa ay sa UP High nagtapos. Ipinangarap namin na maibigay sa aming mga anak ang pagkakataong makapasok sa pribadong paaralan sa aming paniniwalang ito na ang pinakamabuting pamana sa kanila dahil hindi naman ho kami mayaman. Nagbanat-buto kami ng limang taon para sa tatlong PEP plans kahit halos isang kahid isang tuka kami noong mga panahon na iyon. Tapos ngayon naputol, di lang ang aming pangarap para sa aming mga anak pero pati ang pangarap nila na makapagtapos sa isang paaralan na mas nakaka-angat sa iba. Ibig ho bang sabihin wala kaming karapatan umangat sa aming kinalalagyan kung kami ay nangarap sa pamamagitan ng PEP na mai-angat ang aming mga anak? Pano na lang ang mga tulad namin na hindi na ito maipapatupad?

At Wednesday, May 11, 2005 2:14:00 PM, Anonymous Anonymous said...

Can I have the contact details of the PEP Coordinator Ms. Wininie Bonifacio?


At Wednesday, May 11, 2005 2:20:00 PM, Anonymous Anonymous said...

yeah, whats the name of the overall head of the PEP Coalition and the contact details. Would want to know more about the group as well the forthcoming General ASsembly.


At Wednesday, May 11, 2005 10:46:00 PM, Anonymous Anonymous said...

Re: Rich, Elite - Planholders who can actually afford to send their children to school, live in exclusive villages, drive fancy cars, go to schools like Ateneo, Xavier or La Salle, Poveda, etc., but simply want to ride on the back of Pre-Need companies and take in over 100% of what they paid for.

Comment: One cannot assume that planholders sending their children to these exculsive schools are rich and elite. It is to their credit that they had the foresight to buy Exclusive I plans. These middle-income (or even lower middle-income) wage earners may have actually bought the PEP plans using their hard-earned money just so their children could go to schools they otherwise could not have afforded given their meager incomes. Pacific Plans promised them it would make the dream possible and the plan holders banked on that promise, which they now realize was for naught.

So there.

At Thursday, May 12, 2005 10:24:00 AM, Anonymous Anonymous said...

Just because a number of the scholars are in expensive schools does not mean they are all elitists. Where is the logic there? Ikaw, kung may educuational plan ka, at magaling ang ulo ng anak mo, kahit di ka mayaman, ipapasok mo sa mabuting paaralan di ba? I know of many scholars that ended in schools like Ateneo, La Salle, and Xavier simply because of their mental capabilities, not withstanding their financial standing. So there.....

At Friday, May 13, 2005 1:17:00 AM, Anonymous Anonymous said...

I'm a planholder with 3 unavailed plans. I bought my plans from pacific because i know it's a yuchengco owned company and i believed it's a strong company. Me and my husband are both working and we belong to the low-middle class. Pinaghirapan namin hulug-hulugan ang mga plans na ito. Matatagalan pa ang pag-avail namin dito sa plans dahil ang isang anak namin ay 4 yrs old palang. Hindi namin ito binili sa iba, kami pa din ang naghulog sa mga plans na ito. Ito ay para sana sa aming anak na namatay kung kaya't nailipat namin ito sa susunod naming anak na ngayon ay apat na taon gulang pa lang. Madaling sabihin na mura namin nabili ang plans ngunit noong kapanahunan na iyon ang pera natin ay mataas ang value kumpara sa ngayon. Ang dahilan ng pagkuha namin dito ay dahil naisip namin habang kaya pa naming mag-asawa na kumayod para sa aming anak ay gagawin namin at inuna na namin ang kanilang edukasyon. Nais naming maging secured ang kanilang edukasyon para kung sakaling may mangyari sa amin (magkasakit, malay-off, permanent dis-ability o mamatay) nakasisigurado kaming makakapag-aral pa din ang aming anak. Sinasabi ng pacific na ibabalik nya ang perang hinulog namin plus 7% interest kaya hindi na daw kami lugi doon. Hindi naman pera ang gusto namin kaya kinuha namin ang mga plans na iyan kundi ang promise nila na secured ang education ng anak namin kahit gaano pa katagal namin iyan i-avail. Aanhin namin ang perang ibabalik nya sa amin kung by the time mag-aaral na ang anak namin ay tsaka naman kaming minalas sa aming kabuhayan. WE DID OUR PART TO PAY THE PRENEED PRICE OF THE PLANS AND THEY SHOULD DO THEIR PART TO DELIVER WHAT THEY HAD PROMISED IN THE CONTRACT. Hindi lahat ng tao ay nabibili ng pera kahit mahirap marunong ipaglaban ang karapatan.

At Friday, May 13, 2005 11:15:00 AM, Anonymous Anonymous said...

The Yuchengcos will defend their name
The Philippine Star 05/13/2005

The good news is, after this column urged the Yuchengcos to defend their name and live up to their commitment to Pacific planholders, they released a story that the taipan Al Yuchengco will contribute P250 million of his personal funds to help planholders enroll their children this June. The amount, though substantial, is not nearly enough to cover potential liabilities to holders of the traditional or open-ended plans. But it is a start.

It is also encouraging that recent press releases from Pacific Plans have become less legalistic and more appreciative of the concerns of planholders. Even as they also appeal for more understanding of their own predicament, officials of Pacific Plans are now talking of doing what they can to rehabilitate the enterprise. They earlier gave the impression they did all they could to isolate Pacific Plans and let it and the planholders wither in the legal vine.

Shortly after my column was published, Helen, the daughter of the taipan who is carrying the day-to-day burden of running the taipan’s enterprises, also sent word through mutual friends to reassure me that the Yuchengco family understands everything I wrote and "would do what is humanly possible to help all affected planholders."

I subsequently sat down with her and she reiterated the family’s general commitment in principle, even as she couldn’t be more specific about how far they could go by way of support to Pacific Plans. I guess this is because no one can really estimate at this point, the amount of money needed to rescue Pacific Plans completely. Given our extremely volatile economic (and political) situation, any number is at best, a moving target. Even the schools have refused attempts of Pacific Plans to tie them down to a number. Everything depends on how well or how badly our economy fares.

But Helen emphasized that contrary to what many people may think, they did not mismanage Pacific Plans. She didn’t compare what is happening to Pacific Plans with the other pre-need plan companies in trouble today. But she didn’t have to. A week or two ago, the bank managing the trust fund of that other pre-need plan came out with the revelation that they lost over a billion pesos by investing in a related real estate company. In contrast, Helen assured me that their investment portfolio at Pacific Plans can be defended at Plaza Miranda.

Helen explained that they would not be in trouble if two major events didn’t happen: Deregulation of tuition fees and the Asian financial crisis. The deregulation of tuition fees rendered their assumption of an annual 10-percent increase in tuition fees inoperative. And we all know the returns on investments – T-bills, real estate, business – were pitifully low following the outbreak of the Asian financial crisis, considerably reducing their earnings projections. The fine print in the pre-need contracts they wrote gives them a way out. But, she pointed out, they have so far lived up to the promise as best as they can.

To prove to me that their investment decisions for Pacific Plans are defensible, Helen showed me sample plans, comparing what they have paid out, how much the plan was sold to the plan holder and what could have been earned by the purchase plan under various investment options. In fairness, she did have a point.

For example, a plan for a four-year college course in an exclusive school bought in 1987 for P29,200 due for availment on school years 2002-2005, paid out total benefits of P368,603 for an internal rate of return of 19.60 percent and a return on investment of 1,262.34 percent. A very wise investment, indeed!

When they sold that plan, they assumed they would pay out benefits amounting to P128,027 compared to the P368,603 they actually paid out. Their trust fund investments earned P105,484, or an IRR of 10.59 percent and a ROI of 438.45 percent, which is not that far from their assumption even if they actually earned less. If the money were invested in T-bills, it would have earned P124,666 with an IRR of 10.50 percent and a ROI of 426.94 percent. If the money was merely parked in a time deposit, it would have made P91,521 or an IRR of 8.18 percent and a ROI of 313.43 percent.

There were other examples presented to me, all clearly showing that their trust fund investment earnings were within the ballpark of what alternative investments could have earned during the period in question. In other words, the numbers seem to indicate that they did not mismanage the funds, but were just a victim of unforeseen events.

Even the investment in Napocor bonds cannot be looked at as evidence of a bad investment decision, as some critics point out. Napocor may stink, but its bonds are totally guaranteed by the government. It is as good as a government Treasury bill, even better, because the Napocor bonds Pacific Plans invested in are dollar denominated, giving the trust fund an extra measure of protection.

But, I pointed out to Helen, if you had nothing to hide, why did you resort to such a sneaky tactic as establishing another company and transferring the good assets to it, leaving the open-ended ones in Pacific Plans? Helen insists they had the best of intentions of safeguarding the interests of the buyers of fixed benefit plans, while they figured out how to save the open ended plans left at Pacific Plans. Their mistake, Helen now realizes, is they allowed the lawyers to do the talking. When the legal Rottweilers take over, of course people get threatened and offended.

Still, I insisted to Helen, the numbers and your best intentions notwithstanding, the family must still live up to the public’s high expectations, to preserve the value of the name built up by her father. Any default now would also have serious social consequences, and threaten their other businesses that are all dependent on the public’s unwavering trust.

She looked up at me with a tired and worried look and nodded agreement, as if to say how dare you pontificate the obvious. Of course she realizes all that. She didn’t get to where she is by being dense. The reputably tough lady that she is, she just feels helpless at the impossibility of pinning down a number that keeps on changing.

Actually, if you think hard about it, any holder of an open-ended plan from any company should have reason to worry. Looking at the numbers, it does seem impossible for even the best managed trust funds to make the kind of return on investment needed to service those open-ended plans. Perhaps Pacific Plans was just honest enough to admit early on that they have a problem. In hindsight, the pre-need industry made a colossal miscalculation in selling those open-ended plans. I am not sure there is a viable way out of this bloody mess now.

Unfortunately for Helen, the Yuchengcos have a name and reputation to protect. Unlike the Sobrepeñas whose problems with their real estate business have been legendary long before they experienced any problem with CAP, the Yuchengcos have managed their businesses well. I would be very surprised if they decided to turn their backs on a legacy that Helen’s 82-year-old father, now recuperating from quintuple heart bypass surgery, built over his lifetime.

Still, it is a good idea for Pacific Plan holders to keep the pressure on the Yuchengcos. But as a CAP planholder, I would trade places with them in an instant. They are lucky they are dealing with the Yuchengcos.

I do not expect the Sobrepeñas to lose sleep over the amount I am entitled to collect from the last year of my youngest daughter’s CAP plan, given their string of payables: Over a billion pesos to BCDA for Camp John Hay and the billions of pesos owed to hundreds or thousands of buyers of Fil-Estate projects. I have a nephew who bought a lot in Forest Hills, a Fil-Estate subdivision. He completed his payments of over a million pesos years ago, but is unable to get his title up to now. Isn’t that against the law? But, duh… what else is new?

I know it is small comfort to affected Pacific Plan buyers but they are still luckier than I am. Even if the future may not be that clear now, at least, they have more reason to hope

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All I can say is WOW PEP COALITION. The other half and I just got back from our friends house (well her friends house) and I needed a huge break. I am working on a project right now that is based on travelers home insurances. I have literally been on-line for 2-3 hours doing research. Even though On the Saturday walkout really isn’t on the same page as travelers home insurances I am certainly glad I came across your blog. There are a ton of great view points on this blog. Well I think I can here the kids screaming in the background. I put you in my internet favorites and I will certainly come back and visit. If you want to take a peek at my site you can find me here at travelers home insurances. I update my site very frequently. Again, great job blogging and I will be back again soon!

At Wednesday, December 14, 2005 12:13:00 PM, Anonymous best home insurances said...

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At Wednesday, December 14, 2005 12:15:00 PM, Anonymous travelers home insurances said...

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At Wednesday, December 14, 2005 10:20:00 PM, Anonymous california home insurances said...

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At Thursday, December 15, 2005 9:28:00 AM, Anonymous california home insurances said...

Hey this blog is not about best home insurances. Silly internet bringing me here :-) Funny I have been doing hours of research on best home insurances and it brought me to your blog on On the Saturday walkout. The web plays funny games sometimes. Anyways, I was reading your blog PEP COALITION and I think it is really cool. Keep up the great work.
If you do not mind I will snag your blog and put it in my favorites. I read a ton of stuff on here that interested me. Keep blogging away :-)

At Friday, December 16, 2005 9:13:00 PM, Anonymous california home insurances said...

Sad to say I just got back from a bowling tournament and decided to log in and do some websurfing. PEP COALITION I love your blog. I had some very good laughs. I am doing a paper on travelers home insurances and have been downloading information for the last hour. I don’t know how I came across On the Saturday walkout but I am glad I did. It has set me back a little because I have spent the last hour reading your archives. If you don’t mind I would like to add you to my favorites so I can back again and read some more. Well I need to get back to travelers home insurances. I am almost finished with it. Great job.
p.s some very good points on your blog

At Monday, December 19, 2005 7:00:00 AM, Anonymous home title insurances said...

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