Wednesday, May 04, 2005

Reviewer 2 - Fiduciary Responsbility - Portfolio Management

The past 2 weeks have been spent getting the awareness and information levels up regarding the questionnable transfer of policies from Pacific Plans into other YGC spin-off entities. Those discussions can all be categorized as the propriety of PPI's management of its liabilities.

We need to spend time as well on the asset side since there are huge questions of propriety that need to be properly understood. Much discussion has already been spent on the fact that 70% of the assets supporting PPI's 34,000 policies are Napocor Bonds maturing in 2010.

There are several things to note about the Napocor Bonds:

a) Napocor is a Government Owned and Controlled Corp (GOCC). These are not government securities and cannot be directly compared to treasury bills and notes which are direct government obligations. The notion that the National Government will come in an answer for Napocor's debts in the event Napocor cannot pay is entertained because of the underlying guarantee comes with these bonds. These guarantees are not failsafe as has been proven in the past.

b) Napocor is a money losing entity whose financial troubles have long been chronicled publicly.

c) The bond is a zero coupon instrument. Normally bonds pay off interest periodically (i.e. coupon bearing bonds). Zero coupon bonds pay off principal plus accumulated interest on the maturity date of the bond, in this case 2010.

d) Forecasting the cash payments for a preneed firm is much easier than those of an insurance firm for the very simple fact that the firm can tell exactly when the availments will occur. Pacific Plans knows exactly the number of availing plans (e.g. 16,000 out of 34,000). Common sense would dictate that one needs investments that would generate cash flows to meet these tuition obligation. (47% of your planholders are already availing and yet more than 70% of the portfolion is not throwing off cash till 2010).

e) Asset managers are dutybound to look at investment grade assets for the portfolio. Investment grade securities have 2 characteristics: i. liquidity: you can always get a ready buyer and seller for the security ii. good credit rating. Liquidity is important because in the even t of an unforeseen cash payment, the portfolio can sell the security immediately at a reasonable price in order to meet the obligation.

Napocor is an extremely illiquid asset (ie. buyers or sellers are hard to find) with huge disparities in terms of prices.

We need for both the SEC and the BSP to look at what appears to be incompetent if not negligent asset management practices of PPI and their 3rd party asset managers.

38 Comments:

At Wednesday, May 04, 2005 8:39:00 PM, Anonymous Anonymous said...

I would also like the authorities to look into the parties from whom PPI bought the Napocor bonds from.
Was it from RCBC? If yes, how much did RCBC profit from this transaction? NAPOCOR bonds are highly discounted! If they bought at a certain percentage below par, how much did they sell it to PPI?

 
At Wednesday, May 04, 2005 8:45:00 PM, Anonymous Anonymous said...

This came out 7:30pm, Wed, ABS-CBN- Internet site. What do you make of this?

Yuchengco comes to Pacific Plans rescue


Insurance and banking magnate Alfonso Yuchengco on Wednesday said he is raising funds from his personal resources to assist Pacific Plans Inc. planholders.


Yuchengco said in a statement that although the issue is a "corporate matter" for Pacific Plans, he will raise the funds to help pay the tuition requirements of beneficiaries during the school opening.

The fund to be raised, which shall be up to P250 million, will be used to provide additional tuition support, the statement said. Details of the plan are still being finalized, it added.

Pacific Plans also assured planholders that they will be consulted about the development.

The company said it wanted to put the company back on its feet when it spun off the fixed-value plans to Lifetime Plans in August last year.

However, the spin-off failed to cushion the impact of the company’s financial requirements.

"We thought we could make it work. We wanted to outsource everything to keep expenses down. But time was not on our side. Enrollment crept up so fast, and we were forced to go to court to seek suspension of payment and file for rehabilitation," an earlier Pacific Plans statement said.

The shift in government policy doomed the open-ended plans and it was because of this that Pacific Plans stopped selling them in 1992.

Last year, the company decided to spin off its open-ended plans to make sure its more than 400,000 fixed-value plans remain healthy. Without the spin-off, the whole firm, not only the education group, would have been affected, Pacific Plans said.

"We were paid a total of P13,800 on installment and got the last payment in 1995. But we had to pay from 2001 to 2005 a total of P240,000 for a four-year nursing course in Far Eastern University (FEU). It is worse when exclusive schools are involved," the company said.

Pacific Plans claimed that it paid each FEU plan holder P27,710 in school year 2001 to 2002; P45,184 in 2002 to 2003; P75,481 in 2003 to 2004; and P91,540 in 2004 to 2005.

"No company can make P13,800 earn enough to match the gallop in tuition increases. One semester’s benefit claim alone exceeds the total payments made by the plan holder," it said.

"To cover these increases alone, we must earn 50 percent compounded each year for 10 years. And we didn’t have 10 years, let alone the 50-percent income," it added.

Early last month, Pacific Plans filed for rehabilitation owing to liquidity problems.

A hearing at the Regional Trial Court of Makati is set for May 25.

Ernesto Garcia, Pacific Plan president, said the deregulation of tuition was the biggest cause of the company's problems. He said the company reacted prudently when it stopped selling open-ended plans in 1992, two years after partial deregulation and two years before the 1994 full deregulation.

Pacific Plan sold around 90,000 open-ended plans from 1986 to 1992.


Garcia said Pacific Plan paid all tuition claims, regardless of amount, in the past 14 years. Its contract, however, explicitly freed Pacific Plan from paying the extra costs.

Earlier, Mapua Institute of Technology, a unit of the Yuchengco Group of Companies, announced that it is considering accepting fixed-value plans held by beneficiaries of Pacific Plans Inc. as payment during enrollment.

"We don't have the details yet but this looks promising," Garcia was quoted as saying.


The fixed-value plans will be issued only after the Makati City court approves Pacific Plans' petition for rehabilitation.

Pacific Plans was negotiating with financial institutions to put up a liquidity window that would buy the plans from plan holders who need immediate cash.

Pacific Plans went to court last month to file for rehabilitation, saying it was running out of cash and might not meet future claims, but added it had more assets than liabilities.

Its assets are in the form of government-guaranteed bonds with a face value of $52 million that would mature in July 2010. If sold now, they would fetch P550 million less than if redeemed at maturity.

To avoid this loss, Pacific Plans' fixed-value plans would also be redeemable shortly after the government bonds do in 2010.

 
At Wednesday, May 04, 2005 8:59:00 PM, Anonymous Anonymous said...

Do not be misled on the primary objective of the coalition, that is to make the Yuchengcos, personal or corporations, pay for the tuition fees of our children no matter how much it cost. Stay on course.

 
At Wednesday, May 04, 2005 9:09:00 PM, Anonymous Anonymous said...

The so called "rescue" by Ambassador Yuchengco is a tad too late and too little!

In fact, it doesn't sound like a rescue at all! It's in line with what they had originally offered plus the Mapua factor which is only given to "fixed Plan" holders.


Its again an attempt to divide and rule!

Very crafty indeed!

If Ambassador Yuchengco has any sincerity in his heart ( which I'm hoping), he would ahve sold some assets and fulfill PPI's obligation down to the letter. Then and only then, he would have recovered his "integrity" that he sorely deserves!

Ambassador Yuchengco, our children's future is in your hands! Please prove the TRUST that we have bestowed on your company solely upon YOUR name was not a MISTAKE!

 
At Wednesday, May 04, 2005 9:17:00 PM, Anonymous Anonymous said...

Guess we just have to be firm and NOT accept any additional tuition fee support to show we want every cent of what was promised paid. What about those who can't afford? I can always send my childen to UP which has cheaper and affordable tuition fees. But what about those who are on their third year in say, La Salle or Ateneo and can't afford? Sana if we can have resources to support the continuing education of our children we COULD refuse the additional support if given. Can we decide to get with the "under protest" clause?

 
At Wednesday, May 04, 2005 9:33:00 PM, Anonymous Anonymous said...

if the press release issued was true and they will support the current beneficiaries, what about those plan holder like us who will avail it by 2008? are we gonna wait for 2010? Mukhang hindi naman yata fair yun. Just want a clarification please!
thks
ardel

 
At Wednesday, May 04, 2005 9:35:00 PM, Anonymous Anonymous said...

DO NOT BE MISLED!!! I think part of their strategy is to use the old man to defuse the tension.

And as for Mapua accepting the plans, hahaha, that proves our point exactly. It demolishes YGC's stand that the other YGC companies cannot help out.

 
At Wednesday, May 04, 2005 9:40:00 PM, Anonymous Anonymous said...

Huwag tanggihan ang Gracia!

We need the money for the tuition. Just receive it, its our money!

Doesn't mean we put our guard down.

No to their rehab plan as usual.

 
At Wednesday, May 04, 2005 10:55:00 PM, Anonymous Anonymous said...

I am afraid nobody is looking deeply how Pacific Plans bought these Napocor bonds (at the behest of the planholders, at the expense of the planholders' trust funds)and why there was a loan from RCBC. And why Pacific plans gave up so much Napocor bonds as collateral for these loans.

The Planholders of Pacific Plans used to be the CASH COW of the Yuchengcos. Now we are made to suffer form their ill-advised business expansions.

 
At Wednesday, May 04, 2005 11:03:00 PM, Anonymous Paul said...

Paul - Undecided, Future availing

We should be grateful that Mr. Yuchengco did this to help those who are availing. Corporation are shielded from any liability and he did this without any legal obligation.

The way I understand tuition support is that it is advances on your fixed term plan as a result of the rehab plan. Therefore, what is happening is exactly like the liquidity window Pacific Plans is talking about.

If the rehab plan pushes through, there will be an opportunity like this to cash out for non-availing planholders.

It is really boils down to waiting indefinitely for my full tuition fee or money + 7 % quicker.

Still undecided.

 
At Wednesday, May 04, 2005 11:27:00 PM, Anonymous Susan said...

In response to:

"We need for both the SEC and the BSP to look at what appears to be incompetent if not negligent asset management practices of PPI and their 3rd party asset managers. "

The Coaltion has in fact opened the possibility that Pacific Plans is not liable for the trust fund management. If there are indeed 3rd party asset managers, then Pacific Plans is cleared of any liability from the management of the trust fund. It will now be a fight between the Coalition and the 3rd party asset manager.

 
At Wednesday, May 04, 2005 11:30:00 PM, Anonymous Anonymous said...

Yup, this could be YGC's strategy to mislead us. Let's just continue with what we started and stay "focused"...let's just ignore this news on the add'l tuition suppport, as if it was never written.

This will be more believable if the Ambassador appears on TV and gives the 'speech' himself.

 
At Wednesday, May 04, 2005 11:44:00 PM, Anonymous Anonymous said...

To the Coalition Lawyers:

Pls. look into the possibility of asking Makati RTC Judge Romeo Barza to inhibit himself from the case.

Barza was a partner in The Firm of Carpio Villaraza Barza Cruz, now known as Villaraza Angangco after Carpio became SC Justice; Barza, RTC Judge; and Cruz, Defense Secretary.

And who represents Pacific Plans in its petition which was dignified by Barza with a stay order? None other than F. Pancho Villaraza himself, the favorite tenant of Atty. Mike Arroyo at LTA Bldg. on Perea St., Legaspi Village.

ISN'T THIS A CLEAR-CUT CONFLICT OF INTEREST THAT REQUIRES INHIBITION ON THE PART OF JUDGE BARZA?

 
At Thursday, May 05, 2005 12:27:00 AM, Anonymous Anonymous said...

to Paul;

Grateful to Yuchengcos? Steal our kids' future and thank you? DUH?

It's true that corporations are indeed a seperate legal entity. But when there is FRAUD, then all the officers and directors can be personally be persecuted!

To Susan;

Who is their financial advisers? RCBC! Then because of RCBC advise they invested in a highly questionable "zero" bonds of (all things!) NAPOCOR!

Then if that claim is true, it would be easy for others to make such an excuse- "that my financial advisers gave me a wrong advice therefore it's not my fault and am not liable to all my planholders!"

 
At Thursday, May 05, 2005 12:46:00 AM, Anonymous Anonymous said...

In response to:

Then if that claim is true, it would be easy for others to make such an excuse- "that my financial advisers gave me a wrong advice therefore it's not my fault and am not liable to all my planholders!"

Actually, trustee is not liable according to laws in the US. Check local laws, normally Philippines follows US. Because if US did not enact this, there will be no clients to Asset Management companies.

 
At Thursday, May 05, 2005 12:48:00 AM, Anonymous Anonymous said...

It was posted that the coalition will have its 2nd general meeting on May 14.

Bet you, YGC will again call a meeting at the same time. Gustong manlito ng planholders.

 
At Thursday, May 05, 2005 8:06:00 AM, Anonymous Anonymous said...

Yuchengco pledges P250M for Pacific Plans plan holders
Posted: 0:54 AM | May 05, 2005

Inquirer News Service

TYCOON Alfonso Yuchengco issued a statement Wednesday pledging to raise P250 million from his personal resources to assist the beleaguered Pacific Plans Inc.

Yuchengco said he was doing this in his desire to help parents pay their children's tuition requirements for this year's school opening although, he added, Pacific Plans' problem was a corporate matter. He said the funds he would raise would be used to provide additional tuition support to Pacific Plans' disgruntled customers.

Pacific Plans said the details of Yuchengco's fund-raising pledge were being finalized and would be announced shortly.

Pacific Plans, a unit of the Yuchengco group of companies, has sought court assistance in suspending debt payments related mainly to its traditional education plans that have matured.

It issued a statement early this week saying it had to spin off its 34,000 open-ended or traditional plans to make sure its more than 400,000 fixed-value plans would remain healthy. It said open-ended plans had been bleeding it since the deregulation of tuition increases in 1990, before which tuition increases were limited to 10 percent a year. Pacific Plans said it stopped selling open-ended plans in 1992.

The company said that when it transferred the fixed-value plans to Lifetime Plans last August, its objective was to put Pacific Plans back on its feet. "We thought we could make it work. We even have a product that other pre-need companies think is excellent. We wanted to outsource everything to keep expenses down," it said.

With INQ7.net
copyright ©2005 INQ7money.net
all rights reserved

 
At Thursday, May 05, 2005 8:46:00 AM, Anonymous Anonymous said...

The recent press release of the YGC should be taken, NOT as a sign for us to give in, but for us to CONTINUE WITH OUR FIGHT. IT MEANS THAT WE ARE ON THE RIGHT TRACK!

Also, don't believe anything they say unless you see it written as a contract, and the mechanics of how the additional money infusion will be distributed across the different types of plan.

The YGC's tactic is to use that additional money to retire some plans or to service the availing ones, HOPING THAT OUR RANKS WILL DWINDLE.

WELL, THEY CAN GO EAT ****.

 
At Thursday, May 05, 2005 9:42:00 AM, Anonymous Anonymous said...

To the poster who replied to Paul --

Hay naku, Day, prosecuted.... hindi persecuted. Sobra naman that we persecute them.

 
At Thursday, May 05, 2005 9:47:00 AM, Anonymous Anonymous said...

today's News Re: yuchengco raising P250m for ppi as i see is just a tactic to divert us from our main goal of fighting for what is due us! maybe he thought at 82 yrs. old, he could be dying soon and this is a way to clear his name... besides it would be a temporary cure to pacify the planholders; that ygc group has no intention of bailing out ppi, hence no intention of keeping ppi's obligations!

 
At Thursday, May 05, 2005 9:58:00 AM, Anonymous Anonymous said...

from the same news... "We thought we could make it work. We even have a product that other pre-need companies think is excellent. We wanted to outsource everything to keep expenses down," it said.
YOU THOUGHT... so it didn't work!!! kaya mali ang naisip nyo!!!

 
At Thursday, May 05, 2005 10:10:00 AM, Anonymous Anonymous said...

who is this garcia? if he came from piltel, when did ppi employ him? alam ba nya ang mga sinasabi nya re 1990 events, kasi parang may cheat code sya while on "dong puno live" last thursday. parating nakatingin sa baba; he seemed puzzled too!!!

 
At Thursday, May 05, 2005 10:24:00 AM, Anonymous MRCruz said...

I've talked to 1 affected planholder who revealed that she has to transfer her children from private to a semi-private school. She relied on the contract with PPI that for the past years have been paying the tuition fee.

Felt sad that she has to do it!

Let us stay focus and continue staying together.

God Bless us All!

 
At Thursday, May 05, 2005 10:31:00 AM, Anonymous Anonymous said...

Ernesto Garcia is said to be a professional crisis manager, who swoops into distressed and deeply-troubled companies to "manage" their problems. I heard he is paid very handsomely to remove the ugliness from troubled corporations.

 
At Thursday, May 05, 2005 11:06:00 AM, Anonymous Anonymous said...

Re the comment that said: "It was posted that the coalition will have its 2nd general meeting on May 14."

Will there be a position paper and/or demand letter then to be signed by all PEP planholders in attendance?

 
At Thursday, May 05, 2005 12:50:00 PM, Anonymous bmw said...

this story was taken from www.inq7money.net

Breaktime:
Back to the drawing abroad

Posted: 1:56 AM | May 05, 2005

Conrado R. Banal III
Inquirer News Service


SCHOOL opening is just about a month away, and already we hear that magnificent sound coming from the parents.

They are crying out: "Where will we get the enrollment money?"

Nowadays, even if the parents bought, stole, or borrowed some education pre-need plans, they are not safe anymore.

Houston, the industry has a problem. And it's money, the same problem hounding the semi-bankrupt cute administration of Gloriaetta.

Based on reports, which were mostly leaked to media by the pre-need industry's regulator, the SEC itself, the industry has a liquidity problem.

In this case, "liquidity" has nothing to do with frontal sanitary disposal in the bathroom. It is actually, in investment parlance, ready cash.

The pre-need industry does not have enough of it. The funds of the industry are invested in bonds and hard assets that are not easily convertible to cash. In short, trouble!

* * *

WHAT do we do now?

For one, the Securities and Exchange Commission wants to kill the entire industry by imposing impossible rules on ALL pre-need companies, seemingly to favor another business called insurance.

And then, believing perhaps that the judiciary holds the solutions to our problems as a nation, we go to court. Sure, nice move! Only, the lawyers make all the money!

Yet, this is a serious problem. It is not just about education plans, although these are the pre-need products hugging the headlines at the moment.

Perhaps the president of Bank of Commerce, Raul de Mesa, sums it up well: "The problem runs from the womb all the way to the tomb."

Well, when the mother gives birth, she uses a pre-need health plan. As the child reaches school age, the parents draw on a pre-need education plan.

To support themselves in their old age, the same parents resort to the pre-need pension plan. Sooner or later, since we must all go there, they may need the pre-need memorial plan.

There -- from birth to death, from womb to tomb! That's the pre-need industry! Kill it and you will have a restless population!

* * *

BY the way, De Mesa's bank is one of the trustees of College Assurance Plan (CAP), currently at the center of this pre-need storm, owing to being the industry's biggest, with more than 700,000 plan holders.

Somebody filed a "class suit" against CAP and Bank of Commerce. Never mind that the "somebody" is known as a professional class suit filer, having sued other companies, with all the cases simply dismissed by the courts.

The point is, anyway, I thought that De Mesa has a valid point, and we cannot let the industry just collapse.

He thinks that the solution must come from all the sectors involved in pre-need, namely, the regulators, the pre-need companies, the trustees, and yes, even the schools, the HMOs, and the funeral homes.

The question is, when are they going to sit down to come up with a workable plan, starting with, say, a liquidity mechanism for the industry?

Thousands of parents will surely use their education plans this school year. The pre-need firms do not have the "liquidity."

The central bank has such a mechanism for banks. Who should do it for pre-need firms -- the "jueteng" illegal numbers game lords?

* * *

PART of the problem, according to De Mesa, is the regulatory setup. Pre-need was a Filipino invention. It was such a new thing to us, and even to the rest of the world, that our regulators never knew and still do not know how to treat it.

For instance, De Mesa noted that the SEC came up with new regulations four years ago, specifying the assets in which the pre-need firms can invest their trust funds.

Yet, the very same specific regulations did not provide a period -- such as one year, or one day -- for the pre-need firms to remit their new sales collection to the trust funds.

Within the SEC itself, Commissioner Jesus Enrique Martinez is leading the commission's (serious?) effort to solve what he calls a "crisis situation."

In a memo to SEC Chairperson Fe Barin, Martinez wrote:

"The Commission should adjust its attitude toward the industry, in the sense that it is not here solely to police the industry and enforce regulatory compliance, but to help the industry develop, grow and mature, and particularly to assist those in need through creative and appropriate regulatory leeway."

In basketball lingo, how about a little assist!

* * *

PERHAPS the pre-need industry is wanting in correct regulations because, while it is its own different industry, the SEC wanted to regulate it in the same way as insurance firms.

For whose benefit, everybody in the industry knew a long time ago.

The SEC rules were heavily influenced by a US group called AGILE.

And that probably inspired the head of the local subsidiary of a New York-based insurance group to put down the industry in the media even more.

While reports talked about the "crisis situation" in the industry, our bright insurance guy came out in the media, proclaiming his company as shielded from trouble.

His company is now supposedly the leader in education plans, and his gloating seemed to refer to Pacific Plans Inc. and CAP, which are in the news as troubled pre-need firms.

The industry has a problem, sure, but it does not need that kind of boasting from anybody, particularly if the big boss of that somebody's parent company is facing criminal suits in New York.

The cases had something to do with the way it did business - a rather questionable way. And here comes the local triggerman, giving us a drawing of nice things from his principals abroad.

And look who's talking. Even our boastful hero has a pending lawsuit filed by some family members, involving hundreds of millions of pesos, prompting his company to talk to a former Cabinet member to be his replacement.

Besides, it is well known in the industry that, a few years back, the same guy held a meeting with CAP officers, wanting to take full control of CAP then, with the blessing of the SEC chairperson at that time, even before all this trouble erupted.

You know -- like a white knight. Maybe literally!

* * *

PRE-NEED firms like Pacific Plans may be getting the ire of its plan holders, but at least, this company is doing something about the problem.

Its president, Ernesto Garcia, said that Pacific Plans used P1.5 billion of its corporate earnings to pay the runaway tuition that started to zoom up in the early 1990s.

Unfortunately, the company had 34,000 "open-ended" plans, the sale of which the SEC stopped about four years ago.

The open-ended plans, said Garcia, had become a "cancer." They treated the others who had "fixed value" plans.

Thus, Pacific Plans separated the fixed-value plans into another company to shield the plan holders from the problem in the "open-ended" plans.

Castigating Pacific Plans for the move are, of course, the holders of the open-ended plans. Its 400,000 or so holders of the "fixed value" plans are rather quiet.

But Garcia revealed that, even before Pacific Plans took such a drastic measure, it wrote many schools, wanting to buy -- in advance -- thousands of scholarships for its beneficiaries.

Pacific Plans even offered 10-percent increase in the tuition for the four- and five-year courses for its beneficiaries. Not one of the schools took the offer.

copyright ©2005 INQ7money.net all rights reserved

 
At Thursday, May 05, 2005 2:03:00 PM, Anonymous Anonymous said...

In reply to:

Anonymous said...
if the press release issued was true and they will support the current beneficiaries, what about those plan holder like us who will avail it by 2008? are we gonna wait for 2010? Mukhang hindi naman yata fair yun. Just want a clarification please!
thks - ardel

I think the liquidity window as provided in the rehabilitation plan will be used for those who have needs prior to 2010. The tuition support stated will be used to augment the enrolment needs of those availing this year but this will be deducted from the expected maturity benefits from the 2010 fixed value plans.

On the other hand, this is what others could be fearing. The continued barrage by the availing planholders will undoubtedly deprive those non-availing of their equitable share and drain what is remaining of the trust fund.

 
At Thursday, May 05, 2005 3:22:00 PM, Anonymous Anonymous said...

in response to the above:

the more we have to fight for our right even if the press release is true e dapat lang naman talaga nilang bayaran yun availing ngayon and those that will avail in 2006,2007,2008,2009,2010 because that is what is stated in the contract. Eventhough, they are paying the tuition this year in full i don't think the parents of those availing will just keep quiet. After all, i am sure they also have non-availing plans like yours.

 
At Thursday, May 05, 2005 5:09:00 PM, Anonymous Anonymous said...

To unavailing planholders:

Like you, I have more unavailed plans than availing. So it is also to my interest to see what unavailing planholders stand to gain from the coalition's stand. From what I see, the coalition is not partial either to availing or unavailing, to exclusive or non-exclusive. This fight is to get what is due ALL of us.

Let us not be overcome with fear that the trust fund as it is will be cut up among the availing only, leaving unavailed plans with nothing . Our total trust fund appears to have been mismanaged, with most of it going heavens knows where rather than being invested. And even the little that was invested opens questions as to whether the trustee was prudent in putting it in investments with long-term value. WHY NAPOCOR, of all investments? Given a choice, would any of us have bought these NAPOCOR bonds when it is up against all sorts of problems even now? 2010 is 5 years down the road. What will NAPOCOR be by then?

Let us not swallow what PPI feeds us in the news without a deeper understanding of the events. Let's read all the posts in this blog explaining the damage done to all of us planholders. Remember, the trust fund would not have dwindled this badly if it was WELL-MANAGED throughout the years our money was with them. Not only should we look at WHAT IS LEFT OF THE TRUST FUND. We should look at what it should have been with all our money placed in it and the "business decisions" made by PPI's trustee as well as its board and officers FROM THE 1990s up to now.

 
At Thursday, May 05, 2005 5:25:00 PM, Anonymous Susan said...

In response to:

"Eventhough, they are paying the tuition this year in full i don't think the parents of those availing will just keep quiet. After all, i am sure they also have non-availing plans like yours."

Yeah, currently availing parents will not be quiet but unfortunately won't shout as hard. Sad to say, this is human nature. One's needs first before the needs of others.

 
At Thursday, May 05, 2005 7:27:00 PM, Anonymous Anonymous said...

I am also both availing (3 plans-partial up to Gr. 4) and non-aviling (6 plans-3HS, 3Col).

For me, the MINIMUM I want to receive for my non-availing plans is the average (of all schools in the same classification) last availment per classification per level.

For example, if the last average availment (annual) of High School Exclusive 1 is say P60,000 (1st Yr.), P65,000 (2nd Yr.), P70,000 (3rd Yr.), and P75,000 (4th Yr.), these are the MINIMUM amounts that I expect to receive by the time my kids start availing their High School Plan.

Although I feel that we have a good chance of stopping the PPI rehab plan, I hope the Coalition starts planning for the next steps.

 
At Thursday, May 05, 2005 7:55:00 PM, Anonymous Anonymous said...

There is already a move in a number of sectors (DOF or Congress whichever) to remove the Government guarantee from unprofitable or losing GOCC's or government controlled companies/corporation. 2010 is a long ways away so its like rolling a dice as to whether the "hit" is taken now (550M estimated loss
opportunity wise they say) or not get anything in 2010 Napocor has
been losing money (albeit they say the new rate hike will make the profitable - gee since 19++ was the last time they were profitable)

Second, whoever was managing this trust fund - does not take a banker to realize that they are holding on to very risky investments - in the end one should not look at govt guarantee alone but at the credit of the borrower.

 
At Thursday, May 05, 2005 8:50:00 PM, Anonymous Anonymous said...

It has been almost 2 weeks since the first St Paul’s meeting where like minded people first came to organize themselves. In the meantime, the lawyers among us have gone over the options and are getting together, dissecting the situation and planning legal moves. The same is true with those well versed in finance and the corporate world. It is all well and good that there a lot of people who are competently attending to that part of our battle with the corporate giant that is the Yuchengco Group of Companies. In the meantime the rest of us stay tuned to the blogspot awaiting word on what to do next, how we can channel our outrage and frustration.

A lot of us regular guys and gals are neither lawyers nor financial people. How can we help in this battle? What CAN we do? May I suggest the following?

The hearing for the Rehab has not happened yet. Between now and then, we need to generate a lot of attention about our problem in order to exert pressure on the old man Yuchengco to call off and if possible reverse his attack dogs who carried out this assault on us. I read somewhere that the Yuchengcos live in Forbes. If they are churchgoers, they probably go to the Sanctuario de San … well, you know that church in Forbes. Between now and the hearing, storm heaven with prayers there. If enough aggrieved planholders go to church there wearing the t-shirts/articles of clothing clearly identifying us as the victims of YGC’s dastardly moves in PPI, I wonder how uncomfortable it would be for the Yuchengco’s. Make his NEIGHBORS and FRIENDS who attend church there uncomfortable with your presence. “We are here because among you lives the man who promised to pay for my kids’ education then went back on his word. How can a so called man of integrity do such a thing?” That is the message we are all sending by being there. As a bonus, in the heat of summer, it would be nice to go to an airconditioned church for a change. While you are there, maybe you can festoon your car with stickers/leaflets/flyers( improvised or otherwise) expressing the same sentiments as your clothing. May I suggest again to go back to the issue of TRUST and keeping one’s word. Avoid incendiary and emotional statements. It’s Mother’s day on Sunday. Let your kids wear t-shirts saying their mothers trusted the Ambassador’s word about their education, only to be let down. Please feel free to refine the idea further.
TCM

 
At Friday, May 06, 2005 10:52:00 AM, Anonymous Anonymous said...

You know what? You people just talk amongst yourselves.

Wala na kayong pinaniwalaan. Masyado pang magagaling! With all those indepth analysis that you dish out, it makes one wonder why you're not running a billion-peso company of your own (with all the time you spend in this website, sure, you have one..)
After a while, I'm certain that you'll be doubting each other's intentions.

The rest of us will just continue with our lives.

Bye and the best of luck to all!

 
At Friday, May 06, 2005 12:26:00 PM, Anonymous Anonymous said...

Oo nga, everything seems so simple. Go to the press, make some noise and for sure makikipag-usap yan. Pag ayaw pa din, hiyain natin, baka sakaling magbayad. Mayaman yan, ayaw lang magbitaw ng pera. Kalkalin natin lahat, bibigay din yan. Even our kids, force them to wear the t-shirt to get our message across. Edukasyon nila ang nakasalalay dyan.

tsk..tsk..tsk..
Talk about the damage done.

To whom? Ewan.

 
At Friday, May 06, 2005 1:36:00 PM, Anonymous Anonymous said...

Awww, what's the matter? Ran out of substantial issues to discuss with the PEP Coalition? It would be fun to give some dignity to these last two posts by actually answering them, but it's useless naman, di ba? You're here for a different purpose anyway, di ba? In fact, you are not looking for answers at all...

 
At Friday, May 06, 2005 3:11:00 PM, Anonymous Anonymous said...

you are right. dont mind those trying to dampen our fight. dont even bother to dignify their comments with an answer. we just remain focus

 
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