Friday, June 24, 2005

Picking Up the Pieces

Dear readers,

Some of you may be aware of the Law of Unintended Consequences. Very roughly, the law states that any initiative creates consequences that nobody could even imagine when the initiative was started.

That Law has been at work.

As this coalition gathered its strength and purpose, it has literally assembled an impressive array of talent and experience (e.g. expert lawyers, bankers, marketers, salespeople, media, etc.) as evidenced by the thoughtful comments in this blog over the summer just past.

As a virtual organism, these combined talents unearthed truly amazing amounts of information, secret memoranda as impressive as any other piece of investigative journalism. At the same time, we've been treated to detailed analysis and commentaries on the state of our government agencies, justice systems, banking practices, legal duties and responsibilities, and ethical concerns.

The unintended consequence is that the thoroughness of the work cannot help but leave an empty and sickening feeling at the pit of one's stomach...

Why? It's because we have come to the realization that we had a very close call. Had it not been for our militant and boisterous activism, we were actually being abused by:

a) guarantors of our children's education that were looking for slick ways to renege;
b) bank trust departments that couldn't be trusted;
c) supposedly crusading journalists who were only interested in spreading lies and aided and abetted by their publishers;
d) regulators who were routinely deceived;
e) lawyers and law firms who didn't believe that justice is blind;
f) justices who may not be just;
g) rich and educated business elite that behaved like the neighborhood thug.

And yet, we still have to deal with our pressing issues of planning our futures. Bank time deposits offer a depressing 2% return, inflation is running at 8%, and we still have to find out how to make our hard-earned savings work for us.

While we may all secretly wish we could go back to the way we were, there is, unfortunately, no magician out there that can wave a magic wand to make things right again.

We think we may have finally had enough of the sweet talking salespeople, their glossy brochures, and newspaper and TV ads that have ultimately betrayed us.

Lest this blog be accused of being negative and less than constructive, it may be a good time for the combined talents of the blog to put their thinking caps on and start coming up with concrete ideas and suggestions on how to start rebuilding the trust and confidence. We desperately need ideas so that truly reliable and trustworthy investments can be put in front of all the hard working Filipino families both here and abroad.

Have a good weekend and only concrete suggestions please!

130 Comments:

At Friday, June 24, 2005 4:56:00 PM, Anonymous Anonymous said...

A large key is the judicial system which lets big time criminals off the hook. Have you ever seen any banker go to jail? The BSP has yet to even file a case vs. owners of failed banks guilty of breaking DOSRI rules. The public has been and continues to be raped and abused by corrupt government officials and erring financial institutions. Perhaps this fight can be the start of something new.

 
At Friday, June 24, 2005 10:27:00 PM, Anonymous Anonymous said...

REMINDER: PEP COALITION MEMBERS

SENATE hearing on Monday, June 27, 9am, RECTO-LAUREL ROOMS, 2nd floor, Senate.

HAKOTS are not WELCOME....

 
At Friday, June 24, 2005 10:36:00 PM, Anonymous Anonymous said...

since the trust funds of Lifetime was frozen in 3 trustee banks.......Any idea how much is the marked-to-market values of these funds?

 
At Saturday, June 25, 2005 1:03:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 1:40:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 1:49:00 PM, Anonymous vagabond said...

They say if you want something done right, DO IT YOURSELF.

Over the two short months of its existence,the Coalition has gathered many human resources that it can tap to make a go of something along the lines of a CCOPERATIVE.

Members can pool their savings and the resulting funds can be invested by the organization's fund managers. Maybe show RCBC Trust a thing or two on how to manage funds properly.

I believe the Coalition, given the many talents of its members, can evolve into an organization which can give banks, preneed firms and even insurance companies a run for their money as far as fund management is concerned. All it really needs are selfless,dedicated,and trustworthy leaders and a vigilant, supportive and informed membership.

And there are many in the Coalition who fit this description .

 
At Saturday, June 25, 2005 2:44:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 2:59:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 3:01:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 7:45:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 7:51:00 PM, Anonymous Anonymous said...

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At Saturday, June 25, 2005 9:25:00 PM, Anonymous Anonymous said...

Here's one suggestion to rebuild trust and confidence in business and industry in the country. People like the Yuchengcos and their cohorts should be jailed.

 
At Saturday, June 25, 2005 9:31:00 PM, Anonymous Vicente said...

"how to start rebuilding the trust and confidence"

This thread started out with this challenge and may I continue this thought by saying: (inspite of the unfortunate interruptions by the untutored butting in here)

I attended the AIM conference on the Pre-Need Industry last Tuesday and heard, among the many comments made, very few comments about how the trust funds have been (mis)managed by the pre-need industry players. I found that very disappointing as, I believe, this is the crux of the problem facing the pre-need industry. Why do I say this?

Before CAP's and PPI's problems came to the fore, there were other less known pre-need companies that disappeared from the face of this earth with nary a trace. Their demise did not generate as much heat or publicity as either CAP or PPI. What happened to them? My best guess is their trust funds were depleted faster than they expected. Why? It wouldn't make too much of a stretch of anyone's imagination to guess that, with the amounts of money involved, more than a few "magic tricks" were employed on those trust funds.

Which brings me to what is number one in my wish list for this thread's challenge. And that is: the trust funds, once established, must be inviolate in every way possible. Among the steps to be taken to ensure this are:

1. The trustee bank(s) must have NO corporate relationships AT ALL with the trustor/pre-need company, either as co-subsidiaries within a conglomerate or whatever. This includes having no common directors or officers.

2. The trust agreements MUST specify that the trust is NOT DIRECTIONAL in any way (meaning, the trustor/pre-need company cannot influence the investments decisions of the trustee bank(s) in any way).

3. The trust funds cannot, in any way or at any time, finance any venture directly or indirectly linked to the pre-need company, its directors, officers, stockholders or related interests (a la the DOSRI limits on banks).

4. The government regulatory body, either SEC (as now) or the Insurance Commission (as has been proposed as an alternative to the SEC) must be equipped to monitor the true status of these trust funds. Equipped not only in terms of capable minds and bodies but also in terms of the ability to actually check on whether the assets claimed by these trust funds are really there. No more "ghost investments", please.

There are many more but let me stop here for now.

Am I inventing any of these? Heavens, no. I learned of them by reading the SEC's new rules on pre-need plans and a few sample wordings of trust agreements between a pre-need company and its trustee banks.

So where do these steps lead us to? Guess what, folks? Back to the basics. That's where the pre-need industry will have to start because the CAP and PPI fiascos have shown how far away from the basics they have strayed.

Atty. Vazquez of the Federation of Pre-Need Plan Companies complained, during the AIM conference, that the viability of their business model is not ensured if certain changes in the rules are made. Well, I have news for you, Atty. Vazquez, you've got it backwards. Unless those changes, especially in how the trust funds are managed, are made, NO ONE WILL BUY FROM YOUR INDUSTRY EVER AGAIN. If you want your industry to survive, make those changes without hesitation. NOW, not later. Convince me and all other pre-need customers that those changes are in place. Don't just tell me. Show me. You don't have much time. Call your federation together and tell them the market has changed. Our wallets are closing when we hear "pre-need plan". Good news for us but bad news for you.

 
At Saturday, June 25, 2005 9:40:00 PM, Anonymous vagabond said...

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At Sunday, June 26, 2005 10:45:00 AM, Anonymous kidd said...

Here's one to restore trust and confidence: I believe that the most effective way to build trust and confidence in any industry (marred by fraud and deceit) IS TO JAIL THE PERPERATRATORS including all those that planned and conceptualized to defraud the public. This achievement would definitely get the ball rolling in terms of rehabilitating the industry and will be an effective deterrent to anyone planning to commit fraudulent acts.

 
At Sunday, June 26, 2005 10:53:00 AM, Anonymous Anonymous said...

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At Sunday, June 26, 2005 11:32:00 AM, Anonymous Anonymous said...

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At Sunday, June 26, 2005 9:02:00 PM, Blogger SunTzu said...

Suggestions:

Aside from the great ones mentioned earlier

1. Regulators have to get tough with the Trust Banks. Unless an incident involves economic sabotage ie hoarding, speculation or flow restrictions, BSP takes its time on the minor stuff such as Trust Officers who violate rules and regulations. Sanctions, unless pursued with vigor and passion and contant nagging to the BSP, take soo much time to occur.

2. Transparency and due disclosure. The Trust Funds belong to the planholders so treat them lik customers - quarterly reports to the planholders to inform them where their money is placed, what loans are being given and to whom etc.

3. Regular annual or semi annual presentations to planholders - as they do for retirement funds from big corporate accounts

4. Proactive Monitoring. Aside from training the BSP examiners - CAP was an eye opener; use this and PPI as base cases and examples on what to look for - examiners for SEC and BSP and even the pre-need should be there in the presentations and read the reports. That way they cant go to the Senate/Congress and say "we did not read" or "we are too busy".

 
At Sunday, June 26, 2005 9:52:00 PM, Anonymous Anonymous said...

For those who might have missed it.


SEC rejects Lifetime Plans appeal over revocation of registration statement
By Zinnia B. Dela Peña
The Philippine Star 06/26/2005

The Securities and Exchange Commission (SEC) has shot down the motion for reconsideration filed by Lifetime Plans Inc. for lack of merit.

Lifetime, the spin-off unit of the troubled pre-need firm Pacific Plans Inc., sought the lifting of the SEC order revoking its registration statement.

SEC commission secretary Gerard Lukban said the commission did not see any valid reason to reverse its previous ruling, pointing out that Lifetime had been given more than enough time to comply with the conditions set forth in the approval of its registration.

Among these conditions included the submission of proofs of collection of receivables and the transfer of ownership of transportation equipment from Pacific Plans.

Submissions made by Lifetime, however, were found to be insufficient by the SEC’s Company Registration and Monitoring Department (CRMD).

"From Aug. 12, 2004 until CRMD gave its ultimatum on May 24, 2005, Lifetime had 285 days within which to submit the required documents. The opportunity to be heard was clearly given to Lifetime; in fact, repeated requests to comply were given by SEC as cited in its resolution, and in spite of this, Lifetime still failed to comply," Lukban said.

In its order, the SEC said: "The amounts involved are not petty cash that can be brushed aside as inconsequential for purpose of determining whether Lifetime’s capital base is sufficient to meet the financial requirements of its corporate objectives. The CRMD staff could find itself in serious administrative trouble if it did not recommend the revocation in spite of its own determination that the documents submitted by Lifetime are insufficient to show that it has the resources – by way of collected receivables and motor vehicles – that would enable it to meet funding needs of its operations. At the end of the day, it is the people who transact business with Lifetime that will be prejudiced if it turns out that the assets that are supposed to sustain Lifetime are not available to satisfy the requirements of its planholders."

The SEC said while the revocation of Lifetime’s certificate of registration would adversely affect the pre-need firm’s sales agents, employees and customers, the commission has no choice but to enforce the law.

"This commission can not be selective in the enforcement of the laws and rules and regulations on the registration and operation of corporations in the country. Lifetime has to suffer the consequences of its failure to comply with the requirements of its incorporation. The law may be hard, but it is the law," the SEC said.

Lifetime legal counsel Samuel V. Torres, meanwhile, said the company will appeal the SEC ruling. "While we did not expect the SEC to reverse itself, we believe we have strong legal grounds against the order of revocation," Torres said.

Torres said Lifetime will work closely with Pacific Plans to exhaust all legal and administrative remedies to challenges brought about by the recent developments, including ensuring that no Lifetime employee or sales agent is displaced.

 
At Sunday, June 26, 2005 10:52:00 PM, Anonymous pep_parent said...

On the article posted above from Philstar:

What is disturbing is how "concerned" Lifetime Plans Inc. is over the revocation's effect on its employees and sales agents but NO MENTION WHATSOEVER ABOUT THEIR PLANHOLDERS.

This seemingly habitual preference for the welfare of its people over those of the planholders (whether traditional or fixed-value) should be cause for grave concern over how this company's management and directors will continue to do business.

While I have trad plans, I have 3 Lifetime plans as well. I think Lifetime planholders should think several times before assuming that management will hold their welfare above everyone else's in this organization.

 
At Monday, June 27, 2005 7:35:00 AM, Anonymous Anonymous said...

Good morning!

REMINDER; Senate hearing today, 9am at the recto-laurel rooms. 2nd floor senate.

Please attend and support our CAUSE!

 
At Monday, June 27, 2005 9:17:00 AM, Anonymous Anonymous said...

While my spouse and I are truly happy about the very positive results of the efforts of the Coalition, we continue to be realistic. As all legal cases in our country go, this will really be a long haul. But we believe we must continue this fight for the ff. reasons:

1) We have to send a clear and strong message to all business men especially to the Yuchengcos that we will no longer tolerate any corporate misdeeds;

2) We have to show our children and the investing public that honesty, trust and integrity are values that we cherish and fight for. Indeed who willl invest in us if they see that we do not even care when contracts are violated and reneging on commitments is so regular and commonplace that those affected do not even react anymore;

3) We want to be able to tell our children that we fought for their rights and protected their interests.

we look at this fight not just in the narrow sense which is fighting the Yuchengcos and their plan to disenfranchise planholders. It is much bigger than that. It is a fight for right against wrong; for good against evil!

 
At Monday, June 27, 2005 10:22:00 AM, Anonymous Anonymous said...

"Torres said Lifetime will work closely with Pacific Plans to exhaust all legal and administrative remedies to challenges brought about by the recent developments, including ensuring that no Lifetime employee or sales agent is displaced."

Assuming that the consolidated FS of PPI & Lifetime show that the company is losing overall, the first thing to do for the company to survive is to trim away FATS or FIXED Expenses like what ABS-CBN is doing. This means that high salaried individuals who have little or no positive contribution to the company (the likes of Garcia, Tecson, Gener) should be retired. Therefore, some employees of Lifetime/PPI will definitely be displaced. This is a small price to pay for the company's survival.

Agents who do not contribute to the FIXED Expenses of the company since they only earn commission, will also be displaced. In fact, many are already displaced because potential clients (or victims) who are now smarter and better informed, are shying away from these agents. The only agents I see surviving are the smart ones who have already shifted to pre-need products of companies backed by top rate insurance companies like Insular, Sunlife, Philam.

One lesson can be learned from this is that prioritizing the company (owner, management, employees, agents)before customers is a BAD if not the worst business decision one can make.

 
At Monday, June 27, 2005 10:44:00 AM, Anonymous Anonymous said...

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At Monday, June 27, 2005 11:03:00 AM, Anonymous Anonymous said...

Why can't banks offer self-service investments at discounted rates???

Some years back, I was envious of a friend of mine that was so happy to have been able to acquire a government security retail treasury bond. From what he told me, he was able to purchase that directly for a small amount of 10,000 pesos from his bank for a very small service charge and got an interest rate of 12% or something like that. And my friend claimed that was a very secure investment.

I don't know why that program has disappeared. I've asked my bank and they say that they don't know anything about it and they are convincing me to get a 2% time deposit.

Sana kung available pa yung retail treasury bond, yun na lang sana yung binili natin. From what I read, RCBC charged us 2% management fees and could only invest in this Napocor Bond which nobody has properly explained yet.

Just a suggestion! Is this something that some of the coalition members can look at as a cooperative effort?

 
At Monday, June 27, 2005 11:08:00 AM, Blogger ceteris paribus said...

interesting that one blogger suggested a cooperative....that is a mutual fund that you are suggesting...problem is, mutual funds in our country have been focused purely on the stock market. for most investors, esp. those who are looking for tuition money, what u need is something more conservative like a bond fund. there is actually a need for this service.

one suggestion that i would put forward is to look at the Treasury Direct of the US. (http://www.savingsbonds.gov/).

i use this program myself to manage my own funds. if u try to get local t-bills, the bank will eat up all your profit. unlike sa US where they will let u manage ur own money.

problem is, in our country, the banks corner the distribution of tbills so they can make easy money off of investors.

the suggestion made by the blog's dog of an investment manager actually made a lot of sense. a large part of ur portfolio should be in risk free assets like government securities and US treasuries. the rest should be in riskier assets to make up for the lack of yield.

now i have seen comments that there is no asset that can match the yield requirements of rising tuition. that is partly true, though ur asset manager should really look at more speculative items to balance out ur asset holdings by looking at investments in the stock market either locally or in the US. i guess the only security RCBC chose to give u was Napocor zeros.

i guess the time is ripe for development of the local market for mutual funds. not mutual funds where the manager is underwriting securities. conflict of interest yun. no different from what RCBC did to your money.

 
At Monday, June 27, 2005 12:16:00 PM, Anonymous full disclosure said...

What would be so wrong about having the trust departments or portfolio managers of the investments disclose the stuff that they bought.

These banks have been bragging about their WAP banking etc. etc. So I can only assume that they are smart enough to post a report on their website, right???

My thinking is that if the BSP or SEC actually requires this, then DOSRI lending ceases to become an issue. For example if I know that RCBC is lending to finance the construction of Malayan Plaza condominium, then I can make a decision whether I still want to to keep my money with them or not. I do not need to resort to name calling because I can make my own judgment that the manager is favoring his "relatives" in not getting enough returns for my money.

I think half the problem may lie in that we are clueless as to what these managers do behind closed doors and it has to take a fiasco like this to find out things like Napocor. It may also reduce the burden of the regulators if more "eyes" are allowed to look into the business deals.

 
At Monday, June 27, 2005 12:48:00 PM, Anonymous KIT said...

Below is my opinion on what we should push for to allow us to get the best education for our children


1) The root of our problem is the uncontrollable tuition fee increases.
All schools including PAREF and IS schools should have a cap on tuition. All miscellaneous fees should also be capped.

2) Quality and rate of increase of tuition should match. I have read many independent reports showing that quality has not improved on some schools that took advantage of the deregulation of tuition fees. Schools can only increase a certain percentage if they meet certain quality standards.

3) As mentioned in some posts above, the average filipino should be able to buy t-bills and t-bonds like other countries. Currently, only banks are able to access these investment vehicles. Parents should manage actively their savings. Investing in local stock market should be encouraged.

4) One possible solution is allowing schools to sell future tuition fees at current prices to the general public. These are securities and can be transferred/auctioned in the secondary market since this doesn't guarantee that our kids will pass the entrance exams in the future. We will take out the "middle men" (pre-need companies) out of the equation. This will allow schools to have cash to increase quality in their schools at the same time. Also, "tuition fee increases" have no direct impact on this product. Of course, this practice has to be regulated by government agencies.
if this is not possible since schools will be dealing with securities, schools should be required to allow pre-need companies to buy "future tuition credits" from them. This will allow pre-need companies to shield themselves from "tuition fee increases".

5) Lastly, all private financial institutions should have reportorial requirements similar to public companies. This will allow general public to have some idea the state of the financial institution so one can make investments wisely.

 
At Monday, June 27, 2005 1:18:00 PM, Anonymous Anonymous said...

The root of our problem is the uncontrollable tuition fee increases. - I disagree. I think the root is 1) lack of regulation on pre-need industry, 2) lack of transparency not only for pre-need but for all financial institutions, and 3) weak judicial system which encourages big financial scams since everyone has so far managed to get away with financial fiascos.

 
At Monday, June 27, 2005 1:40:00 PM, Anonymous vagabond said...

ceteris paribus
said...

interesting that one blogger suggested a cooperative....that is a mutual fund that you are suggesting...problem is, mutual funds in our country have been focused purely on the stock market. for most investors, esp. those who are looking for tuition money, what u need is something more conservative like a bond fund. there is actually a need for this service.



I earlier suggested that the Coalition consider something along the lines of a "COOPERATIVE". Is that a mutual fund? OK, so whatever it is called, the basic idea would be for members to pool resources together and these resources could then be used to invest in fixed income instruments like T-bills etc, mostly the low risk stuff.

Like Ceteris paribus said, maybe a portion of the funds can be used to buy the better stocks to balance out the lower returns of the safe investments.

If we go through the "COOPERATIVE" path, we may even open a loan facility where members can loan (for tuition at enrollment time?)against their equity and the interest paid and service charges could add to the income of the organization.

The point is to use the power of aggregation to get the members a better return on their investments than if they were to individually go to their banks or any other financial institutions. We all know banks and other financial institutions give better rates and preferential treatment to "BIG PLAYERS". If we band together, we will be treated differently as compared to going it alone.

The Coalition could be our starting point. We have a lot of members who are looking for alternatives to the broken promises of preneed companies. We also have a wealth of expertise in fund management to answer those needs.

Like i said in a previous post, if we want something done right, LET'S DO IT OURSELVES!

 
At Monday, June 27, 2005 2:43:00 PM, Anonymous reliable research said...

I'd like to kick this idea forward regarding a cooperative effort. I am not to proud to say that I bought the IPO on a so-called leisure company that is now categorized as syndicated estafa.

How can we graduate beyond rumors and tips from brokers? I know there is investment research out there but I guess my wife and I are not rich enough to be the beneficiary of such treatment from my bank. The newspapers are equally useless in terms of analysis and recommendations.

How do we also get research or advice that is not biased nor an attempt by the bank that did the research to dump a bad investment on unwitting investors?

If I can pay a few hundred or thousand pesos a month for my cell phone bills, I could make room in my budget to pay for good advice and cheap execution of the suggested investments.

 
At Monday, June 27, 2005 3:37:00 PM, Anonymous Anonymous said...

to vagabond,

I think the point you make, whether or not it is put into practise, is certainly more constructive than all the bickering and mudslinging that has dominated this blogsite in the recent past. These are the types of posts that will turn away those who are anti-coalition and will bring back the coalition's more intelligent contributors who were disgusted with all the low level banter.

 
At Monday, June 27, 2005 4:16:00 PM, Anonymous honesty is the best policy said...

I think we can blend vagabond and full disclosure's comments...

we probably will not have all of this pent up anger if the institution we dealt with had a policy of fully informing us of their business decisions (both for PPI and their trust managers).

let me propose that the reason we needed to trust YGC is because we were clueless on what their business decisions were at any point in time. If however, there was a policy and practice by YGC to fully share all of their dealings in PPI, then we can do the analysis for ourselves (as suggested by "vagabond").

i will also agree with "full disclosure" that if there was such a disclosure policy then I probably couldn't care less if the good Ambassador was investing in his nephew's email adventure or some other nonsense like that.

in other words, if I knew exactly what PPI was doing on a timely basis, it would be a case of "if PPI made a mistake, it's shame on them, if PPI commiets the same mistake, shame on me because I should have known better"

The interesting question now is would we prepared to reward a financial institution that does implement full disclosure of its investment policies and decisions?

Speaking for myself, I would certainl shift my business because I believe that a business that can afford to share such information is a safer institution.

 
At Monday, June 27, 2005 4:16:00 PM, Blogger ceteris paribus said...

hmm..kit's comments are actually quite workable.

the main concern i have with direct issuance by schools is that it could be open to abuse - for example, a school could over-issue and not be able to accomodate all the students.

the product you envision is a derivative. more like tuition fee futures, for lack of a better term. i would suggest a fixed delivery period ie. investor has to avail at a fixed date in the future. then mag-roll over ka na lang ng investment mo if u aren't set to avail. at least the parent/investor was able to hedge the tuition for that period.

being an economist, i am not inclined to cap tuition fees. it is a reality that local schools (moreso the exclusive schools) are faced with piracy of teachers. i mean, they have to increase teachers' pay otherwise, teachers will start looking for work overseas.

putting a hard cap on tuition increases will only make matters worse. teachers will just look for other jobs.

i do however agree with you that parents need to have an instrument that will allow them to purchase "insurance" from tuition fee increases over a fixed period. but these instruments need to be properly structured against future cases of fraud as i pointed out.

 
At Monday, June 27, 2005 4:25:00 PM, Anonymous Anonymous said...

Newspapers have reported that the SEC has upheld their decision to order that lifetime be reverted to pacific plans. Also newspapers reported that ppi/lifetime will appeal and fight this decision. In the light of this development and situations where a lot of traditional planholders after having fully paid their previous plans where encourage to buy other plans from ppi/lifetime and are the process of paying the installments for these plans are undecided whether to continue paying these installments. If they stop paying their installments, they stand to lose their investments which would benefit only ygc, but if they continue paying their installments, (1)they risk a chance to lose more. (2) they will be making a fool of themselves since they will be paying a company who are not paying their obligations but require us planholder to continue paying our obligation. It seems a case of damned if you do, damned if you don't. I wonder if the coalition legal team can come up with a legal scheme wherein planholders can deposit first their installment payments on a particular account in trust for ppi until all issues on the ppi obligations have been resolved. Through this, the interest of the planholders will be preserve. PPI cannot accuse of nonpayment by planholders thereby cannot cancel and forfeit the payments already made by the planholders. This is
quite similar of making rental payments in a bank if there are any dispute between landowner and tenant. If there can be a legal basis for this suggestion, then we will have a situation wherein (1) planholders will have more peace of mind as well as a feeling of a better fairness in continuing paying their installments, (2) ppi/lifetime will not be able to cancel the plans of the planholders as the planholders have demonstrated their willingness to pay but because of unresolved issues (who to pay lifetime or ppi and what about the obligation due to us from ppi) (3)ppi/lifetime will have no choice but to finally resolved these issues since they will be oblige to pay whatever is stated in these new plans yet they were not able to actually received these installments. The decision by the rehab court to revoke the papers of lifetime is quite intriguing. Why was this issue resolved first when the issue on the jurisdiction were not resolved, yes the inhibition on the grounds of possible undue influence were resolved and denied but not the question of jurisdiction. If the rehab court agree with the recommendation of the sec, why was it selective. Simply, if the court will adopt the sec position, the stay order will have to be lifted immediately but with the court order revoking lifetime, ppi now has a chance to appeal an "adverse?" decision repeatedly until it reaches the supreme court, in the meantime the stay order stays and the court can always says that cannot decide on the stay order until the issues appealed in the higher court is resolved. Thus without doing anything in the meantime, ppi/court has made a good act for themselves. It is in this way, that the only way to fight this is to withhold all payments to ppi/lifetime legally, put these must payments in a account so we will not be accuse of mon-payment. Our interest is protected, both those that are already in the hands of ppi/lifetime as well as our running obligations on the the plans we are paying at the moment to ppi/lifetime.

 
At Monday, June 27, 2005 5:37:00 PM, Anonymous Anonymous said...

This idea about tuition fee futures... nice idea but I think un-implementable. Didn't Sonny Garcia say that they tried to talk to schools to fix the tuition fee costs for their future scholars at today's price with an annual increase of 10 percent (?); but he said that not one of the schools entertained his proposal because they thought that 10% annual increase is too little?

I am just trying to extend this discussion about eliminating the middle men (pre-need companies)....Thanks.

 
At Monday, June 27, 2005 9:08:00 PM, Anonymous Anonymous said...

"Simply, if the court will adopt the sec position, the stay order will have to be lifted immediately but with the court order revoking lifetime, ppi now has a chance to appeal an "adverse?" decision repeatedly until it reaches the supreme court, in the meantime the stay order stays and the court can always says that cannot decide on the stay order until the issues appealed in the higher court is resolved. Thus without doing anything in the meantime, ppi/court has made a good act for themselves."
Very astute. And I thought it was good for us that the court revoked Lifetime so quickly! The court and PPI are so devious and cunning. I thought before that those calling for a boycott of all Yuchengco companies were overdoing it but I agree now because I've come to hate that family. Will someone please post the list of all the Yuchengco companies again?

 
At Monday, June 27, 2005 10:07:00 PM, Anonymous full disclosure said...

If the foregoing comments regarding the fear that the court and PPI may be conniving so that the adverse decision is dragged up to the SC, I have this to say.

When banks, as creditors, do not get paid, what do they do? They institute foreclosure procedures.

As planholders, our classification is that of creditors. Since PPI has not paid any of us as per the stated agreement, then we should consider a demand letter to PPI as a prelude to instigating foreclosure procedures.

This is a concrete suggestion which bystanders will consider as extreme. You can say the same thing about banks as being aggressive when they start foreclosure proceedings even if some of the creditors believe it to be a drastic step.

The economic and legal theory there is that no one is safe anyway once a company begins to default on its obligations.

That is probably the another thing that a cooperative entity should initially consider. Foreclosing bank(s) set up a management committee to take over the business affairs of the defaulting business.

Since the SEC has ordered a freeze on the trust funds to ensure that no dissipation is attempted, the prudent thing to might be to do such a foreclosure rather than wait around for the backroom dealings get all the way up to the SC.

It may also be another way to signal our displeasure with the governance of PPI as well as serve as a warning to the entire preneed industry to start shaping up.

Again, keeping in the spirit of coming up with concrete suggestions.

 
At Monday, June 27, 2005 10:48:00 PM, Anonymous Anonymous said...

we planholders are not merely creditors, we can claim also that we are a victim of a well planned estafa. we bought goods (plans) from ppi who promised to deliver the goods on a future date. Failure to deliver the goods despite demand constitute a ground for estafa.

 
At Tuesday, June 28, 2005 12:40:00 AM, Anonymous Anonymous said...

full disclosure said...
If the foregoing comments regarding the fear that the court and PPI may be conniving so that the adverse decision is dragged up to the SC, I have this to say.

When banks, as creditors, do not get paid, what do they do? They institute foreclosure procedures.

In line with this idea if workable, all Traditional and Fixed Plan Holder can be share holders (number of plans and amount of present availment value) and take over of PPI. As have been mentioned that this coalition has in its arsenal bankers, cpa’s, actuarials, finance experts and what have you that can run this pre-need company the way it should be in the first place. This way we can put our money where our mouth is and show the Yuchengcos and other pre-need plan companies how things will workout if greed and deceit is not part of the business creed. This way everybody can get their fare share of their plan, set a good warning to corporate pirates and a precedent and an alternative way of getting back our moneys worth. This way walang away, or the Yuchengcos cannot make us away and divide, divha?

 
At Tuesday, June 28, 2005 9:19:00 AM, Blogger SunTzu said...

To Anonymous re:
Why can't banks offer self-service investments at discounted rates???

When you mean discounted rates I assume lower rates than the typical market rates since the amount is smaller.

If they continued to do this individually, the cost of handling and operating for a Peso 10,000 placement will outweigh the service fee of Peso 200 or 2% as what some banks charge.

Hence the move toward mutual funds and unit investment trust funds. By pooling the investments into various instruments (each fund differs on where money is invested), allows an individual access to rates that the people with Peso 1M earn. Make sure you check the fees they are charging 1.5 to 1.75% are within norm.

One other thing is to monitor the rates historically delivered. A number of banks tend to take a spread of the top by requiring their trust bank managing the UITF's or Funds to get all investments from them. This is not only self serving, it does not allow the manager to get the best rates (versus one that would canvass from 5-7 diff. counterparties).

The other comments on using either establishing a fund or a cooperative are logistically tough to implement but very doable.

However when done, make sure a 3rd party custodian (other than the investment manager or team) are in charge of receiving the investments and controlling the ins and outs. This way you eliminate hanky panky as what has happened in the financial industry.

 
At Tuesday, June 28, 2005 10:09:00 AM, Anonymous Anonymous said...

In response to:

"Hence the move toward mutual funds and unit investment trust funds"

Why reinvent the wheel? There are are a lot of local mutual funds(below):

Also, the best performing mutual fund with guaranteed returns have less than 10% per annum returns. This may be still less than the rise of tuition fees.



Balanced funds
First Galleon Family Fund
GSIS Kinabukasan Fund
Legacy HY Fund, Inc.
MFCP Kabuhayan Fund
Philam Fund
Sun Life Prosperity Balanced Fund Sun Life Prosperity Dollar Advantage Fund (US$)

Bond Funds
ALFM Dollar Bond Fund
ATR-Kim Eng Fixed Income Fund Ayala Life Fixed Income Fund Cocolife Fixed Income Fund
Ekklesia Mutual Fund, Inc.
Grepalife Fixed Income Fund
Legacy GS Fund, Inc.
Legacy TD Fund, Inc.
MAA Privilege Dollar Fixed Income MAA Privilege Peso Fund
Philam Bond Fund
Philam Dollar Bond Fund, Inc. Prudentialife Fixed Income Fund, Inc.
Sun Life Prosperity Bond Fund Sun Life Prosperity Dollar Abundance Fund
Sun Life Prosperity GS Fund

Equity Funds
ATR- Kim Eng Equity Opportunity Fund
Philam Strategic Growth Fund Philequity Fund
Sun Life Prosperity Phil. Equity Fund
United Fund

Index Funds
Philippine Index Fund

Money Market Funds
Sun Life Prosperity Money Market Fund

 
At Tuesday, June 28, 2005 10:17:00 AM, Anonymous Anonymous said...

In response to:

"In line with this idea if workable, all Traditional and Fixed Plan Holder can be share holders (number of plans and amount of present availment value) and take over of PPI."

Sure, we can take over PPI through a debt to equity swap. All planholders will be shareholders. However, is this what we really want. Why? if PPI continues to operate under our stewardship, we will be faced with the same industry problems:

1) PPI has to continue selling its plans if it plans to continue to operate. Thus, we have to continue dealing with the agents. Agents have to be paid commissions. With the proposed pre-need law, it might be difficult to stay afloat since agents demand immediate commissions for their efforts. Also, the unscrupulous agents of PPI are still there!

2) If PPI cannot continue to meet its obligations with the new planholders, tables will be turned and we will be in the same situation as the old owners of Pacific Plans.
A la Edsa 2?

3) Reorganization needs fresh capital. If you want to have new people on board, you have to institute early retirement. Also, we want to disassociate with YGC. Thus, capital for marketing (brand rebulding), revamped sales force, office move, and others are needed.

4) Also, we may have actuarials, cpa's, finance experts, etc. However, this will be a full time job. Thus, are our experts willing to give up their jobs and transfer to PPI?

5) Lastly, as indicated by most postings, to sell a financial product, one looks at the integrity, capability,experience and financial backing of its owners. We may have the heart, but we definitely don't have the money or expertise.
Even if you put all priests as management doesn't mean people would buy our product.

Aside: Above statement also shows the factor in choosing the president of our country. If people believed in all heart, Bro. Eddie would have won. He didn't. I didn't vote for him and so did the majority of the public.

However, I believe it is still best to dissolve the company. However, we might be getting a lot less than the original money + 7% proposal. why? Immediate liquidation of assets will incur penalties and most investments are not yet to term. Also, employee severance package will be deducted before planholders can take their share of the pie.

Come to think of it, the highest returns for us is to negotiate with PPI. But if we want to make a statement and highest returns is not our priority, let us push for foreclosure proceeding on PPI.

 
At Tuesday, June 28, 2005 10:34:00 AM, Blogger corporate conscience said...

anonymous posted "If they stop paying their installments, they stand to lose their investments which would benefit only ygc, but if they continue paying their installments, (1)they risk a chance to lose more. (2) they will be making a fool of themselves since they will be paying a company who are not paying their obligations but require us planholder to continue paying our obligation. It seems a case of damned if you do, damned if you don't."

This dilemma requires serious deliberation and deserves a more detailed analysis by way of a main posting. In the meantime, these are the key issues we can see:

a) PPI is facing a material adverse situation. It may not have sales force at this time for it to continue its business. Let's remember, the sales force resigned and jumped ship over to Lifetime. But Lifetime is no more and PPI has no residual obligations to rehire these people since they tendered their resignations.
b) PPI has not defaulted on its payments to availing planholders. They can quibble all day about what tuition support means but what is undeniable is that the contracts have not be satisfied;
c) For the non-availing planholders (regardless now of your type of plan, ie. memorial, cremation, etc.) how are they to analyze their situation? Is it rational to think that a company that is already defaulted will suddenly make good 10 years from now? Or is it more likely that PPI will still be a deadbeat 10 years from now. Yes, as a plan subscriber, I may have contracted to pay a stream of premium but only if PPI on the other side is likewise meeting its obligaitons. To argue that PPI can selectively be "balasubas" to set of planholders and be good to others doesn't hold water legally since the spin-off has already been struck down.

 
At Tuesday, June 28, 2005 10:40:00 AM, Anonymous Foreclose them! said...

To full disclosure, who said:
"If the foregoing comments regarding the fear that the court and PPI may be conniving so that the adverse decision is dragged up to the SC, I have this to say.

When banks, as creditors, do not get paid, what do they do? They institute foreclosure procedures."

Wonderful! Great! I'm all for it! My stand, which used to be "reasonable" and open to compromise, is hardening thanks to 1) The obvious connivance between the court and PPI and 2) Disappointment with the Senate inquiry, where first Mar Roxas and then Osmena treat the PPI issue and Sonny Garcia in particular with kid gloves, reserving their lectures and scorn for the SEC and Sobrepena who at least had the decency to show up.

Let's go ALL THE WAY with this thing -- boycott them, foreclose them, jail them!

 
At Tuesday, June 28, 2005 11:54:00 AM, Anonymous Anonymous said...

vagabond's suggestion of trying to organize a cooperative deserves some deep thought. it would depend on what we want it to do for us, and whether such is really feasible. if he is serious then we might as well get in touch with representatives of some of the more successful cooperatives, i.e., San Dionisio Credit Cooperative or PA Finance Center Multi-purpose cooperative. The cooperative Development Authority has a website at cda.gov.ph, FYI

 
At Tuesday, June 28, 2005 12:33:00 PM, Anonymous Vicente said...

There seems to be some confusion about the various roles of PPI in this fiasco and therefore the possible courses of action against PPI. Let me try to clear up some of this confusion:

1. PPI, as a corporation, has assets of its own, albeit dissipated by the spin-off maneuver to create Lifetime Plans.

2. PPI, as a pre-need company, was a trustor of several trust funds for the various pre-need plans. After those trust funds were created, the assets in them were technically no longer the property or assets of PPI. According to the new SEC rules on pre-need plans, the trust funds shall be "SEPARATE AND DISTINCT FROM THE PAID-UP CAPITAL OF A REGISTERED PRE-NEED COMPANY (capitals mine), established with a trustee under a trust agreement approved by the Commission, to pay for the benefits as provided in the pre-need plan."

From these two facts, one then has to be careful about what course of action to espouse.

Foreclosure proceedings against a corporation usually target the assets of that company. However, PPI, as a corporate entity, does not have much vis-a-vis the benefits due planholders. Even a recombined PPI/LPI will not have much, again vis-a-vis the benefits due planholders. Why? Because the moneys due to planholders are in the trust funds. Which, as noted above, are technically not anymore the property of either PPI or LPI, solely or recombined. These trust funds are in the hands of the trustee banks, per the trust agreements which created the trusts, and shall remain with them until someone, say the SEC, tells them what to do with them.

Therefore, I think the key then is the control of the trust funds. Under the trust agreements, the trustee banks have that control. But since the revocation of LPI's incorporation has put this part of the world in limbo, I believe the trust agreements are also in limbo. It remains to be seen who can legally make those directions for the trustee banks.

 
At Tuesday, June 28, 2005 5:11:00 PM, Anonymous full disclosure said...

to vicente,

now we are getting somewhere in terms of knowing where to start. we should get guidance from SEC as to who the trust funds can take directions from.

I would bet though that the revocation simply means that the trustor is still PPI since Lifetime seems to be deemed (by some SEC personnel at least) as inexistent, ab initio.

Regular trust procedures should still apply. Meaning at any time, the trustor can revise and amend the trust agreement that it has with the trustee bank. Should that still be applicable, taking control of PPI is still the path to take.

 
At Tuesday, June 28, 2005 6:42:00 PM, Anonymous Anonymous said...

Since PPI became whole again, we cannot take over PPI since the liabilities to us traditional planholders will only amount to half of the company or less.

If PPI was not merged with LPI we can take this path.

I think we are forgetting that there are 400,000 fixed value planholders now in the re-merged PPI.

 
At Tuesday, June 28, 2005 10:04:00 PM, Anonymous Anonymous said...

Pacific Plans sale of Napocor bonds questioned

An advocacy group is questioning the sale of Pacific Plans, Inc. of its National Power Corp. (Napocor) zero-rated coupon bonds to its spun-off company Lifetime Plans, Inc. as the Senate continues with its hearings on the pre-need industry.

This was revealed during a Senate hearing yesterday by officers of the Parents Enabling Parents Coalition, who alleged the sale of part of the Napocor bonds at 66% of face value is a negotiated sale, and this could be a case of self-dealing as there were no transactions recorded by Bloomberg between Dec. 10, 2002 to June 23, 2005.

The bonds were bought by Pacific Plans on Dec. 27, 2002 from Goldman Sachs at 52.3% of face value, or $146.43 million of the face value of P280 million. It was bought partly from a $76.4-million leverage loan from the Rizal Commercial Banking Corp. (RCBC) Treasury, due 2007

Roberto Manabat, Securities and Exchange Commission (SEC) general accountant said that $190.9 million of the face value of the said bonds were transferred to Lifetime. Of the $89.1 million worth of bonds at face value left to Pacific, $37.4 million were sold at 66% of face value, in order to finance its loan to RCBC Treasury.

Pacific President and Chief Executive Ernesto Garcia confirmed the contract party was indeed Lifetime, and they accepted the 66% of face value offer as it was above market value.

Sen. Sergio R. Osmeña III meanwhile said the allegation remains to be proven, as information is still lacking. Furthermore, he said he wants to see the contract of sale and ask Pacific to justify the pricing.

Senate trade committee chairman, Sen. Manuel A. Roxas, on the other hand, said even if Bloomberg did not record transactions from 2002 to present, he said it is possible that bank treasurers traded these bonds. Also, he said it is incumbent upon the SEC to determine if the sale was at arm’s length or was indeed self-dealing. -- Francis Y. Capistrano

 
At Tuesday, June 28, 2005 10:37:00 PM, Anonymous vicente said...

Full disclosure wrote:
"I would bet though that the revocation simply means that the trustor is still PPI since Lifetime seems to be deemed (by some SEC personnel at least) as inexistent, ab initio."

I wish it were that simple. There are legalities involved and since I am not a lawyer, I can only surmise that these legalities will have to be overcome before we can really say that PPI, and not LPI, can be considered the trustor of the trust funds created by LPI.

"Regular trust procedures should still apply. Meaning at any time, the trustor can revise and amend the trust agreement that it has with the trustee bank. Should that still be applicable, taking control of PPI is still the path to take."

In a privately created trust fund, it would be true that "at any time, the trustor can revise and amend the trust agreement that it has with the trustee bank". But in these trust agreements of pre-need companies, the SEC has a role in approving these amendments, before they can be implemented. And these amendments have to pass muster within the scope of the SEC's rules on pre-need plans.

Anonymous said:
"Since PPI became whole again, we cannot take over PPI since the liabilities to us traditional planholders will only amount to half of the company or less.

If PPI was not merged with LPI we can take this path.

I think we are forgetting that there are 400,000 fixed value planholders now in the re-merged PPI."

1. The re-merger of PPI and LPI has not yet really happened, although the SEC's moves and declarations seem to indicate that it will eventually happen.

2. Even assuming PPI and LPI are re-merged, what are re-merged will only be their corporate assets and liabilities. The trust funds, which are separate and distinct from the corporate assets, as noted above, will still be with the trustee banks who had them before. In any case, the different plans (memorial, pension as well as education) have their own separate trust funds and, if the rules are followed, they will not subsidize each other.

 
At Wednesday, June 29, 2005 9:18:00 AM, Anonymous Anonymous said...

In response to Vicente:

"Even assuming PPI and LPI are re-merged, what are re-merged will only be their corporate assets and liabilities. The trust funds, which are separate and distinct from the corporate assets, as noted above, will still be with the trustee banks who had them before. In any case, the different plans (memorial, pension as well as education) have their own separate trust funds and, if the rules are followed, they will not subsidize each other. "

This means we are back to square one:

1) Fixed value planholders are unaffected by all of this.
2) Taking over PPI is not possible since converting debt of traditional planholders to equity will only result in a minority position
3) Forclosure proceedings will not prosper because fixed value planholders will be affected
4) Availing planholders will get their benefits while non-availing will be left to dry.

If rehab plan is junked and lpi/ppi is merged, then it will be business as usual meaning full benefits will be given to availing planholders until funds run dry(trust funds are separate and no subsidy should happen). Junking rehab plan will cause lifting of the freeze order on the trust funds. I think this is the case because rehab plan supposedly distributes the trust fund equitably among planholders. With rehab plan junked, PPI will be forced to give full benefits to availing planholders to the prejudice of non-availing planholders.

Vicente, Is my understanding correct?

 
At Wednesday, June 29, 2005 11:02:00 AM, Anonymous Anonymous said...

I'm trying to see SEC's viewpoint.

They revoked Lifetime's license so the company including the trust funds should go back to where it first originated.

In other words, the trust fund is made whole again prior to spin off. It seems obvious to me that PPI (and SEC has to figure how to do this) would continue oversee the trust fund managers.

What I am curious is how in a span of 1 year, the ARL which was less than the trust funds suddenly became more than the trust funds. Becuase at that point in time when the ARL was less than the trust funds, all the planholders are covered.

Secondly, I would think that with all these issues, neither Pacific nor Lifetime are able to sell any products (only be able to collect from existing plan holders paying on installment basis).

How long can this company survive?
Not long I would think and that for me is their problem not ours coz the trust funds are totally separate.

I suggest we:
a. push for the SEC to have the trust funds combined and maintain status quo on payments (but dont take to long) until all the planholders and their type of plans are accounted for

b. have an independent actuarial firm do its study (paid by PPI) and determine how much is the trust fund shortage

c. sue YGC (or whoever) for the shortage (based on this study) to honor the contracts

d. distribute the remaining funds (sorry am speaking for the educational traditional plans)based on their plan type on a discounted present value covering the remaining number of years applicable per plan holder (prorata if the trust fund is not enough)

 
At Wednesday, June 29, 2005 12:02:00 PM, Anonymous Anonymous said...

M just curious, why is it that we have never filed a criminal case against Yuchengco and his cohorts with the fraud they have done to us. Is it because we cant trust the justice system? Can this be an option? If we never see our money back can we not atleast make the Yuchengcos pay dearly for their fraudulent ways and how they have cheated us and the future of this country. If GMA can be exposed why not this old man and his daughter who continues to be as arrogant as the devil himself. Why can't we have them jailed?

 
At Wednesday, June 29, 2005 12:04:00 PM, Anonymous vicente said...

Wow, this is getting a bit convoluted. Let me try anyway, though not in the order the Anonymous who laid out these premises.

"2) Taking over PPI is not possible since converting debt of traditional planholders to equity will only result in a minority position"

First, I am not making any judgment at all about the feasibility of taking over PPI. I think that that is a judgment call that no one in the coalition is prepared to make at the moment.

Second, I am not sure if converting PPI's debt to planholders to equity would be a correct move. Or if that is even possible. Right now, planholders are paid out of the trust funds that have been specially set up for their benefits. No other creditor of PPI can lay claim on the money in those trust funds. If planholders were to agree to convert the debt to them to equity in PPI, what happens to the trust funds? Do they become part of the corporate assets of PPI, as part of this maneuver? If that happens, then that money may become available to all other creditors of PPI and not just to the planholders. Planholders may then end up sharing that money with PPI’s other creditors, instead of having it for their own benefits exclusively, resulting in less per planholder. Do we want that?

Third, assuming “converting debt of traditional planholders to equity” can be done, what valuation will be used for that “debt”, to be used for this conversion? This was precisely the problem of PPI. The amount due to traditional planholders was indeterminate, given the nature of their promise. If we traditional planholders agree to a value for this conversion, we have effectively capped the debt due us. Do we want that?

“1) Fixed value planholders are unaffected by all of this.”
“3) Forclosure proceedings will not prosper because fixed value planholders will be affected”

I don’t know if I am coming or going on this one. Never mind. As I said before, foreclosure proceedings usually target the corporate assets. In the case of a pre-need company with trust funds deemed separate and distinct from its paid-up capital, my guess is that any foreclosure proceedings will most likely be on the pre-need company’s net assets, and not on the trust funds per se. Those proceedings will probably be for the benefit of all creditors, not necessarily planholders only. Planholders, either open-ended or fixed value, will probably still get their benefits primarily from the trust funds.

Again, I make no judgments or predictions if any foreclosure proceedings will prosper or not.

“4) Availing planholders will get their benefits while non-availing will be left to dry.“

Too many variables to deal with before anyone can definitely come to this conclusion. Even the actuaries I have talked to about this question can only say “It depends”. So I can only echo their “It depends”.

“If rehab plan is junked and lpi/ppi is merged, then it will be business as usual meaning full benefits will be given to availing planholders until funds run dry (trust funds are separate and no subsidy should happen). Junking rehab plan will cause lifting of the freeze order on the trust funds. I think this is the case because rehab plan supposedly distributes the trust fund equitably among planholders. With rehab plan junked, PPI will be forced to give full benefits to availing planholders to the prejudice of non-availing planholders.”

In the past, “business as usual” included PPI having to pump in money from whatever sources it could to make up for any deficiency the trust funds had vis-à-vis the ARLs (actuarial reserve liability). In fact, according to their audited FS for 2003 and 2002, they had to kick in P1.582 billion in 2003 and P1.007 billion in 2002 to meet the “Increase in actuarial reserve liability”. With PPI and LPI re-merged, then this “business as usual” will have to include this continuing subsidy by them for any deficiency in the ARLs. Whether or not they will do so, of course, remains to be seen.

 
At Wednesday, June 29, 2005 12:11:00 PM, Anonymous full disclosure said...

Let's stay focussed and pay attention.

To say that the other planholders are unaffected is incorrect. It is the dilemma of one of the planholders on whether he or she continue to make premium payments to the re-integrated PPI is what triggered this thread on liquidation in the first place.

I've had extensive discussions with disinterested finance professionals as well as academics on this dilemma and their insights are uncannily the same:

a) The reintegrated PPI has continued to choose not to pay its full contractual obligations to availing trad holders. In short, it is in default to its creditors;

b) If PPI has already chosen to default on its current obligations, what is the rationale to justify that they will suddenly be good debtors tomorrow and pay off the other planholders?

c) PPI, whether by accident or design, has already established a precedent by its subjective default strategy. Now that it has been, or soon will be, reintegrated, it is discrimating against the trad holders. And yet all planholders, regardless of whether you have cremation, pension, etc. are all general creditors. Left unchallenged, PPI can always to discriminate against everybody else going forward;

d) PPI is now once again a YGC company and it has, again by accident or design, chosen the path of default.

e) The planholders who are actually worst off are those who still have premium payments to make. Unlike borrowers who took out a bank loan who are still obligated to pay off even if, say, PDIC has taken over the bank, these planholders have a reversed position. They have entered into contract with PPI where they have obligated themselves to pay premiums today with the expectation of benefits at some future date. The problem being, PPI is already choosing not to honor its current obligations therefore these paying planholders must be relieved of their obligations to maintain their premium with no prejudice to the validity of their contract until such time PPI chooses to honor all its obligations.

f) Should PPI choose to maintain its selective default stance, then the paying planholders are throwing good money after bad. It's far better for these paying planholders or the unavailed to force liquidation today. In terms of probability, since default has already been triggered, the probability that this will continue as a corporate tactic is much higher going into the future. To continue paying premium is to actually compound your uncertainty because every peso you pay in today already has the likelihoold that it will be less than your contracted benefit.

g) The ones who have availed are the ones who are at lesser risk because they have already been defaulted on and can only hope to pick up the crumbs in a liquidation proceeding. The losses of the availing planholders have already been unquantified, so to speak, while the non-availing ones are totally unknown.

h) what I found depressing was that the analysts, who were totally unaware of the fierce debates actually said that if they were in YGC's shoes, they would actually try to continue the game by arguing the opposite and convincing the non-trad planholders to stick it out with them through a rehab.

 
At Wednesday, June 29, 2005 12:16:00 PM, Anonymous pikachu said...

anonymous said....

"cge na nga. awat na. wala ng away, u stand on your own issues, i on mine."

To Anonymous:

Thank you, as this was the best post I have read so far from you.
We shall have to respect each others views and convictions. Let us not try to intimidate others (you and us the coalition) and just get on each others nerves. You and the coalition have one common goal, and that is to get what was promised to us but the means by which we want it is where we differ. That is natural and this is were democracy comes in. But morally, let us from now on respect each other, stop calling each other names and work towards a constructive solution to the problem we are all facing. Thank you again and peace to you and your family, but I still pray that the Yuchengcos will soon realize that they too are losing more by not facing up to the problems they have caused, just like what GMA did. At least GMA, whether she's guilty or not, had the decency to face her accusers and speak, it may be too late as some say, but nevertheless, she had the guts to break her silence. So once again, PEACE AND LOVE TO EVERYONE !!!!!!

 
At Wednesday, June 29, 2005 1:30:00 PM, Anonymous Anonymous said...

PEACE! AMEN TO IT! INSHA ALLAH! LET IT BE!

AGREED! IN WHATEVER FORA, LET'S STOP THE NAME CALLING!

PEACE AND LOVE!

 
At Wednesday, June 29, 2005 2:02:00 PM, Anonymous Anonymous said...

I too am in favor of filing criminal charges and fraud vs. PPI and the yuchengcos. This could be an additional pressure for them to owe up to their promises.

 
At Wednesday, June 29, 2005 3:03:00 PM, Anonymous Anonymous said...

"I too am in favor of filing criminal charges and fraud vs. PPI and the yuchengcos. This could be an additional pressure for them to owe up to their promises. "

Unfortunately, the problem is that there is still no strong case of fraud against PPI. This is why in the Senate, the focus is on CAP. CAP has numerous fradulent transaction in acquisition of land and investments in non-performing sister companies using trust fund. All of the transactions of doubtful transactions are well documented. In PPI, everything is just speculation as of now.

From Senate hearings in post above:

"Sen. Sergio R. Osmeña III meanwhile said the allegation remains to be proven, as information is still lacking. Furthermore, he said he wants to see the contract of sale and ask Pacific to justify the pricing."

 
At Wednesday, June 29, 2005 11:17:00 PM, Anonymous Anonymous said...

The problem with the Senate hearings was that they keep on dwelling at the CAP issue. As mentioned, there are already a lot of facts and evidences against CAP, plus a number of oversight committees formed by the SEC. So, why didn't the hearings then focus on PPI. For those who were there, I'm sure they were so disppointed that not much "grilling" was done on the 3 conspirators, Garcia, Tecson and Desiderio. In fact, the Senators seem to be "lawyering" for PPI, i.e. Sen. Roxas contesting the NO TRADING TRANSACTION OF THE NAPOCOR BONDS, not requiring or putting in motion a request for Lifetime to submit their financial statements, for the various Yuchengco companies to submit the different Deed of Sale documents. These were the:

1. sale of LPI by PPI to GPLH
2. sale of Exemplar by GPLH to MEMNON Corp. (51%)
3. sale of PPI by GPLH to Exemplar

The Senators didn't even pursue the issue on fraudulent conveyance. They should have done more interrogations on the 3 "crooks" so they will know the whole story on the corporate maneuverings and machinations done from August 2004 (spin-off to LPI) to January 2005 (sale of PPI by GPLH to Exemplar).

 
At Thursday, June 30, 2005 12:55:00 AM, Anonymous Anonymous said...

If we dont have a chance in the senate hearings, nor do we have a chance to pursue a criminal case. Will we just remain the kawawa in the fraud that these big companies continue to do to the filipino people. What future will our children have? If even in their education they are robbed and fooled by the likes of the Yuchengcos.

 
At Thursday, June 30, 2005 9:24:00 AM, Anonymous very disappointed said...

Roxas and Osmena were so obviously uncomfortable when Piccio persisted on bringing up PPI ... at 12 noon, just before Roxas broke up the meeting. Everything before that had been CAP, CAP, CAP.

It was a complete turn-around on Osmena's part. He treated Garcia with kid gloves when he did ask him anything, which was only once or twice and very near the end. Something very suspicious happened between last week and this to make Osmena change like that. I wish that Piccio or Ongkiko spoke up and reminded Osmena about the fraudulent conveyance that we were supposed to research .. on HIS request. But I guess they did not want to antagonize them by being too pushy. Philip did insist on bringing the lousy Napocor bonds to everyone's attention. But it left Roxas and Osmena unmoved .... none of the indignance and scorn they reserved for the SEC and CAP. Malakas talaga and mga Yuchengco. We're not going to get any help from the Senate.

 
At Thursday, June 30, 2005 12:39:00 PM, Blogger PopsJ said...

The above post on the senate hearing is discomforting. PPI's lawyers can use this in rehab's defense. Let's face it. This is a tough fight. I have lost my trust in GMA, senators and congressmen, but I still beleive our legal system is a beacon of hope.

The discussions on future path to take are elightening. I commend the suggestions and exchanges. I wish I can contribute in small ways, but for now, I am just an avid listener. I believe and trust in the leadership of the coalition! Please carry on!

 
At Thursday, June 30, 2005 2:14:00 PM, Anonymous Anonymous said...

If we can't trust GMA, our senators, congressmen, Yuchengco, who do we trust? Why dont we just rally in all RCBC branches and stop or make it hard for people to go in and out the banks? If we are jailed it would be worth the time in jail. Maybe its time we do something drastic.

 
At Thursday, June 30, 2005 2:16:00 PM, Anonymous Anonymous said...

Or we can campaign to bring SUSAN ROCES to power and take our chances. If she fails, we can just blame ourselves.

 
At Thursday, June 30, 2005 2:37:00 PM, Anonymous Anonymous said...

If I may, we might be 'misdirected' in rallying in all RCBC branches and stop people's ingress and egress from these establishments.

 
At Thursday, June 30, 2005 2:51:00 PM, Anonymous Anonymous said...

Warning to the Yuchengcos, GMA, the Senate & Congress.

You make us desperate through your callousness, greed and tyrannical oligarchy.

Then you make us hopeless by denying us legal justice.

When those who have been victimized and made miserable exact their own kind of justice, it can be a terrible, terrible thing!

 
At Thursday, June 30, 2005 3:50:00 PM, Anonymous Anonymous said...

With what is happening to
GMA, remember that she will have to draw favors from all sorts of sectors and influential people just to stay in power. She will do everything in her power to stay in her power given her monumental pride. When payback time comes to these people, guess who will pay? Us, the filipino people. Now, if uncle al is included in those who will give her support now - then we planholders will end up paying for the favor.

 
At Thursday, June 30, 2005 3:59:00 PM, Anonymous pikachu said...

I know how helpless many feel at this point, and asking, where are we headed for after the senate hearing ended. Let me remind everyone that the Senate Hearing was resorted to by the Coalition not as a means for solving the Yuchengco fiasco but to help in aid of legislation for the drafting of the pre-need code. Through these hearings though, we have managed to make the senators aware of the fraud commited by the Yuchengcos inspite of the fact that we all know very well, the senators ARE POLITICIANS and they play politics remember that!!!
Once they are elected into office, all their big promises during campaign season is forgotten and become empty promises to serve the people who put them there in the first place. They now become servants of those who financed their campaigns and have to pay up a lot of favors. Its very sad but that is a reality. Just look at the way Roxas, Angara, and even Osmena played up and fizzled out when the PPI issue became too hot too handle during the senate hearings. Many were grandstanding, typical politicians. I was there in every session and I was very disappointed how the senators would be so informal, talking on their cellphones, standing up and walking in and out of the room (other than going to the little boys/girls room)not really paying attention to what was being discussed, even to the answers on their own questions. I guess my standards were just too high and expected too much out of our PUBLIC SERVANTS. Well, inspite of this, I have not given up hope. I believe we are fighting a cause much more worthy than the wiretapping/jueteng/election fraud etc. as the crime committed by the Yuchengcos is a crime against the very innocent, OUR CHILDREN, and the deprivation of their RIGHT TO A GOOD EDUCATION. I BELIEVE THAT ONE DAY, through lots of prayers (from all religious denominations) and hard work from the coalition who volunteer pro bono and even those silent planholders, WE WILL SUCCEED in achieving JUSTICE FOR OUR CHILDREN. The coalition is NOT SLEEPING most especially during this time of "lull" as many more "weapons" will be launched !!
HAVE FAITH MY FRIENDS, OUR LORD IS NOT SLEEPING EITHER. WE JUST NEED THE COOPERATION OF EACH AND EVERYONE WHO HAS BEEN VICTIMIZED BY THESE "WHITE COLLARED THIEVES" (according to Sen. Pimentel).
GOOD DAY, PEACE AND MY LOVE TO EACH AND EVERYONE !!!!!

 
At Thursday, June 30, 2005 4:04:00 PM, Blogger corporate conscience said...

To all commentators,

Kindly refrain from statements that may be viewed as political or politically motivated.

We need to be solutions-oriented and stick to the boundaries of acceptable and tempered behavior. If anything, it is the best lesson we can give our children.

 
At Thursday, June 30, 2005 4:19:00 PM, Anonymous Anonymous said...

TO Corporate Conscience
It would be very difficult to refrain from statements that you say may be viewed as political or politically motivated as any statement mentioning personalities, political events may be viewed by the reader according to his/her own perception. As long as the statements made are true and not libelous there is no need for concern as this is a venue for freedom of expression.

 
At Thursday, June 30, 2005 4:34:00 PM, Anonymous senator sana said...

Clarification lang:

Hindi ba yung 'WHITE COLLAR THIEVES' was used by Sen. Pimentel in reference to CAP officers?

 
At Thursday, June 30, 2005 4:46:00 PM, Anonymous Anonymous said...

TO PIKACHU:

Agreed! But the congressmen were more terrible and less disciplined. In comparison to the senators, the congressmen-members of the Oversight Committee should have belonged to other body not Congress!

 
At Thursday, June 30, 2005 7:26:00 PM, Anonymous Pandy said...

Dear Pikachu,
Thanks for your continued optimism, cheerfulness and encouragement at a very disheartening time. We all need to keep on hoping and being confident that we will succeed in the end. I admire you for being so upbeat and helping us keep faith in the work of the coalition!

 
At Thursday, June 30, 2005 9:57:00 PM, Anonymous Anonymous said...

Yuchengco will be in the forefront when susan roces comes into power, believe me. I am sure his family is now making sip2 with her through binay of makati. Wise yan! In the end he goes laughing all the way to the bank while we rot and starve to pay for our childrens education.

 
At Friday, July 01, 2005 8:52:00 AM, Anonymous Anonymous said...

CARE TO COMMENT ON THIS PLEASE!

this story was taken from www.inq7money.net

URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2005&mon=07&dd=01&file=5




SEC eyes management takeover of Platinum Plans
Posted: 2:18 AM | Jul. 01, 2005
Elizabeth L. Sanchez
Inquirer News Service


THE SECURITIES and Exchange Commission is studying taking over management of pre-need firm Platinum Plans Inc. to address the deficiencies in its trust fund, Inquirer sources said.

The sources said there had been complaints lodged again with the SEC on delayed payments by Platinum, whose incorporation the commission has ordered revoked.

Inquirer sources in Platinum Plans said these reported delays had been addressed and that the company president, Ernesto Salas, had advanced the payments. No amounts were disclosed.

A Platinum official said an option that Platinum Plans was studying was to seek court approval of a rehabilitation plan.

Platinum Plans has an estimated 50,000 plan holders owning traditional plans. Its dealer's license has been suspended.

Its collections have been affected by overall weakness in the pre-need industry in the face of the troubles of industry pioneer College Assurance Plan Philippines and of Pacific Plans Inc., from which Platinum Plans was spun off

Sales of pre-need firms dropped 24 percent to P2.2 billion in April from P2.9 billion a year earlier as a number of companies lost their permits to sell plans and some asked for court intervention to suspend payments, SEC sources said.

In a monthly report, the SEC said sales of education plans fell 57.5 percent to P472.5 million in April from P1.11 billion a year earlier, and pension plan sales dropped 6.56 percent to P1.44 billion from P1.54 billion.

Life plans sales grew for 18.8 percent to P309.27 million in April from P260.3 million.

Industry-wide, the number of plans sold decreased 25.2 percent year-on-year to 33,252 in April, with education plans down 60.9 percent to 4,352 and pension plans down 37.2 percent to 16,074. Only life plans sales increased, by 66 percent to 16,074. With INQ7.net



copyright ©2005 INQ7money.net all rights reserved

 
At Friday, July 01, 2005 9:47:00 AM, Anonymous Anonymous said...

In response to:

"Dear Pikachu,
Thanks for your continued optimism, cheerfulness and encouragement at a very disheartening time. We all need to keep on hoping and being confident that we will succeed in the end. I admire you for being so upbeat and helping us keep faith in the work of the coalition!"

However, coalition specially Pikachu should start giving the real story instead of "embelishing" incidents to make it seems that everything is going so well. We need the real score!

Ex. 1) "BEEN VICTIMIZED BY THESE "WHITE COLLARED THIEVES" (according to Sen. Pimentel)." - Pimentel was referring to CAP. Since last week, all the supposedly "fraud" remarks by Senators being posted here have been referring to CAP. Why mislead us?

2) "Senate Hearing was resorted to by the Coalition not as a means for solving the Yuchengco fiasco" (latest post of Pikachu)
- last week's post of coalition and pikachu herself stated that through the senate we will be the able to show fraud which will result in the imprisonment of PPI owners and management. Senators are not even considering fraud for PPI judging by the senate hearings.

3) "Through these hearings though, we have managed to make the senators aware of the fraud commited by the Yuchengcos"
- Posts above showed the Roxas and even Osmena were leaning against fraud.

4) Since three weeks ago, coalition has been stating that next week "bombs" will start falling. This has been mentioned for 3 weeks straight and nothing new has come up.

5) What is the strategy of Coalition? It has been vague and constantly changing ever since.


I admire you for keeping everyone optimistic but please do not mislead us. By the conflicting and misleading statements, I feel the I am being played. I talked to some other planholders and they feel the same way too. Yahoo Group mail is now close to being inactive. Definitely, there is a big drop of interest and loss of faith in the coalition.

 
At Friday, July 01, 2005 10:52:00 AM, Anonymous Anonymous said...

in response to:

"Yuchengco will be in the forefront when susan roces comes into power, believe me. I am sure his family is now making sip2 with her through binay of makati. Wise yan! In the end he goes laughing all the way to the bank while we rot and starve to pay for our childrens education. "

I susan roces comes into power, we probably won't need to worry about our children's education anymore because our entire country is bound to go down the drain anyway!

 
At Friday, July 01, 2005 11:11:00 AM, Anonymous Anonymous said...

"I susan roces comes into power, we probably won't need to worry about our children's education anymore because our entire country is bound to go down the drain anyway!"

Agreed! Just like the way our country could have gone the same way (capital flight, etc) if her late husband won.

 
At Friday, July 01, 2005 11:22:00 AM, Blogger funkysmell said...

I'm going to kill myself now, thanks!

 
At Friday, July 01, 2005 11:50:00 AM, Anonymous Anonymous said...

Binay is making hakot for anti GMA rally at P300 whole day with lunch. Kawawa naman ang Pilipinas!

 
At Friday, July 01, 2005 12:07:00 PM, Anonymous Anonymous said...

Totoo yan! Binay is always in charge of bringing in the participants to the anti-govt rallies.

 
At Friday, July 01, 2005 12:42:00 PM, Anonymous Anonymous said...

To the person asking the coalition to "...start giving the real story instead of "embelishing" incidents to make it seems that everything is going so well.", a few personal comments (and these are not official coalition statements, just my own thinking):

1. Your points are well taken. However, I believe that being a blogsite, the comments posted by anyone (even pikachu) should NOT be construed to be OFFICIAL. What is officially coming from the coalition are the MAIN POSTS. Comments should be taken as information and as areas of discussion but should not be viewed as the coalition's official stance.

If anyone describes the Senate hearings and posts them here, these were done out of their own personal desire to describe what went on for the sake of those who did not make it to the hearings. Much as the posters try to be as accurate as possible, there will always be differences in the style of writing and degree of detail. Let us try not to impute anything malicious to our co-parents by using words like "please do not mislead us". If someone wrote a different view of the same hearing or heard comments differently, we can politely correct a poster or say we think it was meant a certain way.

2. The poster also wrote: "What is the strategy of Coalition? It has been vague and constantly changing ever since."

We are up against a corporate giant and no one will dispute this. They have had YEARS and DEEP RESOURCES to dream up all types of strategies and counter-strategies under different scenarios for this moment. Our coalition is one of simple parents who somehow bonded together for the simple reason that we are all victims of an injustice began by this giant. We are only BARELY THREE MONTHS into this fiasco and have had to organize ourselves into this coalition and to prepare counter actions. To my personal mind, even with that short time and with short resources on the part of the coalition, many of us planholders got more than our initial tuition support checks which was what PPI initially offered us. Remember, they only offered the liquidity window, the 2nd/3rd checks after the coalition made so much noise.

If you view the coalition's changing strategy as less than desirable, it is also because the other side has been changing strategy everytime a certain plan falls through the cracks (I believe they have many plans of action already lined up in case certain plans fail).

If more planholders lent their time and skills to the coalition, maybe we can improve what we are presently doing. That is an open invitation to us all. Let us give the coalition concrete and constructive suggestions but let us steer away from suggestions that the coalition is less-than-sincere in its moves. The coalition is not infallible and it can stumble along the way but let us help it up on its feet, not kick it back down to the ground.

3. It was written: "Yahoo Group mail is now close to being inactive. Definitely, there is a big drop of interest and loss of faith in the coalition."

Wow, this is really one whopper of an unfair conclusion. It is true that there have been considerably less posts than before, but let us remember that the e-group was very active around the time the checks were being handed out. Parents were posting, asking for info, putting their own experiences down as they got their checks.

Just because nothing spectacular is going on now that is worthy of posting should not lead to the conclusion that there has been a significant drop of interest and loss of faith in the coalition!

Many of us simply log on everyday to see if new posts have appeared. That is as far as our participation goes. What many do not realize is that even when there seems to be an absence of activity, our lawyers continue to meet, our volunteers continue to sort through all the documents submitted, school chapters are organizing, etc. All these are behind the scenes and we do not see it. Moreover, you have to understand that certain things are best left unsaid and unwritten at this time as the other side has access to this blog and to the e-group as well. Have more faith than this, please!

Now, after having said all this and you still feel "suspicious" of the coalition's intent, I suggest that you find your own resources to pursue your personal case with your own personal and trusted lawyer/s. The coalition should not be divisive at this point and neither should its members.

 
At Friday, July 01, 2005 2:00:00 PM, Anonymous Anonymous said...

I agree with the poster above re: a poster saying the coalition is being vague about where it is going. Some things might be happening that a lot of people might not be aware of. It's true there is a lull in our fight against the Yuchengcos. But this should not make us disheartened. Keep praying and have faith that one day things will turn for the better. Let us keep encouraging & supporting the people working in the coalition instead of pulling them down. They also need our moral support...if that's the only thing that some can give as their help in this fight against a corporate giant who committed a sin against our children.

 
At Friday, July 01, 2005 2:22:00 PM, Anonymous pikachu said...

To Anonymous:

I wouldn't have wanted to even given you the benefit of an answer but I guess I would have to especially since an accusation is being hurled at me because of your wrong perceptions:

1. "Pimentel was referring to CAP. Since last week, all the supposedly "fraud" remarks by Senators being posted here have been referring to CAP. Why mislead us?"

DID I SAY THAT PIMENTEL WAS REFERRING TO PPI? PLEASE READ MY POST AGAIN. I USED HIS DESCRIPTION "WHITE COLLARED THIEVES" AND GAVE HIM THE CREDIT FOR COMING UP WITH SUCH A TERM OTHERWISE SOMEONE (LIKE YOU AGAIN) WILL ACCUSE ME OF USING A PHRASE THAT WAS NOT ORIGINALLY MINE. THAT'S WHY I PUT IT IN QUOTATION MARKS. THE TERM IS APTLY SUITABLE TO THE YUCHENGCOs TOO AND THAT AGAIN IS MY OPINION.

2. "last week's post of coalition and pikachu herself stated that through the senate we will be the able to show fraud which will result in the imprisonment of PPI owners and management. Senators are not even considering fraud for PPI judging by the senate hearings."

I STAND BY MY STATEMENT THAT THE COALITION DID NOT USE THE SENATE TO SOLVE ITS PROBLEMS AS WE ALL KNEW THAT THE PURPOSE OF THE HEARINGS WILL BE IN AID OF LEGISLATION FOR THE NEW PRE-NEED CODE BUT AND I SAY BUT, THROUGH THESE HEARINGS WE WERE ABLE TO BRING OUT THE FRAUDULENT MANEUVERINGS OF PPI, SUCH AS THE DIRECTIONAL RELATIONSHIP PPI HAD WITH RCBC TRUST, THE PURCHASE OF THE NAPOCOR BOND AND MANY MORE.
I SAID WE MADE THE SENATORS AWARE BUT I NEVER SAID THAT THEY ARE CONSIDERING FRAUD AND MAKING A JUDGEMENT ON THE YUCHENGCOs AS AGAIN I WILL MAKE IT CLEAR TO YOU THAT OUR PURPOSE IS NOT TO USE THE SENATORS OR THE HEARING TO PROSECUTE THE YUCHENGCOS BUT TO JUST MAKE THEM AWARE. IF WE DIDN'T DO THAT, DO YOU ACTUALLY BELIEVE THAT THE SENATORS WILL PUT THE HEAT ON S.E.C. AS THEY DID DURING THE HEARINGS? DO YOU THINK THAT CAP'S SITUATION WOULD HAVE PROSPERED HAD IT NOT BEEN FOR THE MOVES OF THE COALITION WHICH BROUGHT THE FOCUS TO THE PROBLEMS OF THE PRE-NEED COMPANIES MORE THAN WHEN CAP'S PROBLEM FIRST ERUPTED? DO YOU ACTUALLY BELIEVE THAT THE EFFORTS OF THE COALITION WERE FUTILE? AS TO THE IMPRISONMENT ISSUE, OUR PRESSING ON THE SENATE HEARING ABOUT THE FRAUD, THAT WAS ALREADY MENTIONED IN THE POSITION PAPER OF SEC TO THE COURT,MADE ONE SENATOR STATE THAT IT SHOULD BE THE GOV'T AGENCY LIKE SEC WHO SHOULD PROSECUTE THE EERING COMPANIES AND THEIR OWNERS/DIRECTORS ETC.AND NOT WAIT FOR THE CITIZENS TO COMPLAIN. SO THE COALITION WILL BE WATCHING SEC'S EVERY MORE TILL THEY TAKE THE STEPS TO SOLVE THE PPI MESS AND PUNISH THOSE WHO HAVE CREATED THIS MESS. SO IF YOU ARENT SATISFIED WITH WHAT THE COALITION HAS BEEN DOING, I WOULD LIKE TO CHALLENGE YOU TO DO IT YOURSELF AND LETS SEE HOW FAR YOU COULD GO TO GET THE SAME RESULTS IN JUST TWO AND A HALF MONTHS !!!!!!!!!!

3. "Since three weeks ago, coalition has been stating that next week "bombs" will start falling. This has been mentioned for 3 weeks straight and nothing new has come up."

DON'T YOU THINK THAT WHAT THE COALITION HAS BEEN DOING SINCE APRIL 13 ARE "BOMBS" THAT HAVE MANAGED TO CREATE SOME "EFFECTS" ON THE YUCHENGCO's? DO I HAVE TO MENTION AGAIN WHAT EFFECTS HAVE BEEN PUT UPON THE YGC GROUP? AND DO I HAVE TO MENTION THE OTHER "BOMBS" THAT WILL BE DROPPED?
THESE ARE STRATEGIES THAT CANNOT BE DIVULGED AND YOU WILL ONLY KNOW WHEN IT HAPPENS. ONE THING YOU PROBABLY DON'T HAVE UP TO THIS POINT IS "FAITH IN THE COALITION AND IN OUR LORD". PEOPLE I KNOW THE BUSINESS SECTOR AND EVEN IN THE SAME INDUSTRY THE YGC GROUP ARE IN, SAY THAT THE WORK OF THE COALITION HAS BEEN SO TREMENDOUS THAT NO OTHER MINORITY GROUP GOING UP AGAINST A GIANT COULD HAVE ACHIEVED THE RESULTS WE HAVE IN SUCH A SHORT SPAN OF TIME.

4. "I admire you for keeping everyone optimistic but please do not mislead us. By the conflicting and misleading statements, I feel the I am being played. I talked to some other planholders and they feel the same way too."

AGAIN, IM SORRY IF YOU FELT I HAVE MISLED YOU BUT THAT IS YOUR INTERPRETATION. MY ADVISE TO YOU AND ALL THOSE WHO FEEL THAT "YOU ARE BEING PLAYED", WHY DON'T YOU GET ACTIVELY INVOLVED INSTEAD OF LEAVING THE WORK TO THE DEDICATED FEW AND THEN TEARING THEM APART BIT BY BIT BY PUTTING YOUR OWN MEANING INTO THEIR WORDS THEN SAYING WE ARE MISLEADING YOU!!!!!

REMEMBER, DO NOT BE FENCESITTERS, JUST WATCHING FROM A DISTANCE, THEN QUICK TO CRITICIZE. HAVE SOME GUTS AND PUT YOUR EFFORTS WHERE YOUR MOUTH IS. (I CHANGED THE SAYING A BIT TO FIT WHAT I WANT TO SAY. YOU MIGHT AGAIN CORRECT ME BY SAYING THAT IT SHOULD BE "PUT YOUR MONEY WHERE YOUR MOUTH IS").

AS SOMEONE ALSO MENTIONED, OUR POSTS ARE OUR OWN PERSONAL VIEWS. THAT'S WHY IF YOU THINK IT WAS NOT ACCURATE ENOUGH FOR YOU THEN START GETTING INVOLVED, ATTEND ALL HEARINGS (CONGRESS NEXT) AND OTHER ACTIVITIES AND THEN DO THE RECAPS FOR THE COALITION, INSTEAD OF BEING SO CRITICAL AND YET JUST WAITING FOR THE CRUMBS TO FALL WHILE OTHERS DO THE JOB!!!!!

5. "Agreed! But the congressmen were more terrible and less disciplined. In comparison to the senators, the congressmen-members of the Oversight Committee should have belonged to other body not Congress!"

THIS WAS A POST BY ANOTHER ANONYMOUS (I THINK, UNLESS ITS THE SAME PERSON WHO HURLDED ACCUSATIONS ABOUT MY MISLEADING POSTS)

WELL YOU MAY BE RIGHT ABOUT THE CONGRESSMEN BUT UNFORTUNATELY I WAS ONLY DESCRIBING THE SENATE HEARINGS !!!! THAT'S YOUR OPINION AND I RESPECT THAT. I WAS NOT AT THE CONGRESSIONAL INQUIRY THEREFORE I REFRAIN FROM COMMENTING. AS I SAID, MY POSTS ARE BASED ON MY OPINIONS TO WHAT TRANSPIRED AND ON FACTS THAT I TRY TO RELAY TO YOU AS ACCURATELY AS POSSIBLE BUT OF COURSE THERE MAY BE DISCREPANCIES BUT WITH NO INTENTION TO MISLEAD.

SO ONCE AGAIN, TO ALL THOSE WHO LOVE TO ACCUSE OTHERS OF MISLEADING THEM, WHY DON'T YOU GET INVOLVED INSTEAD OF JUST READING THE POSTS AND LAMBASTING THOSE WHOM YOU FEEL AREN'T DOING WHAT YOU THINK THEY SHOULD OR COMING UP TO YOUR STANDARDS !!!!!!

WITH THIS, I BID YOU A PLEASANT AFTERNOON, PEACE TO YOU, SMILE AND REMOVE THE WRINGKLES FROM YOUR FACE AND PRAY THAT ALL THESE WILL BE RESOLVED SOON. REMEMBER ALSO,
"OUR LORD HAS THOSE WHO HELP THEMSELVES" !!!!!!!!!!!!!!!

 
At Friday, July 01, 2005 2:35:00 PM, Anonymous pikachu said...

To Anonymous

This was your last paragraph:
"Definitely, there is a big drop of interest and loss of faith in the coalition."

It really saddens me to hear people like you who are in the same boat as everyone say the above statement. If the posts on the blog indicate loss of faith and drop of interest, then all i can say is that this attitude is a typical attitude of fencesitters.
I mentioned that in this period of "lull", the coalition is still working hard to reach a solution.
If there are those who are disheartened, like you and YOU SAY MANY OTHERS, all I can say is, "o men of little faith"!!!!! Well, the coalition is not bothered by those kind of statements and are still determined to fight as Philip asked the core group in the very beginning, are we willing to go on as this will be a long haul.
The core has affirmed its commitment to the coalition and to the thousands of aggrieved. But what the results will be, I cannot say at this point. All I know we will continue to work hard (PRO BONO mind you!!!) since we are not working for ourselves but for you and your children too!!!!!

 
At Friday, July 01, 2005 2:54:00 PM, Anonymous Anonymous said...

5. "Agreed! But the congressmen were more terrible and less disciplined. In comparison to the senators, the congressmen-members of the Oversight Committee should have belonged to other body not Congress!"

THIS WAS A POST BY ANOTHER ANONYMOUS (I THINK, UNLESS ITS THE SAME PERSON WHO HURLDED ACCUSATIONS ABOUT MY MISLEADING POSTS)


THAT WAS MINE. AND I AM NOT THE POSTER WHO HURLED ACCUSATIONS ABOUT YOUR POSTS.

 
At Friday, July 01, 2005 3:40:00 PM, Anonymous Anonymous said...

it is expected that nothing comes so easy in this world, faced of fighting not only with a giant but also the phil justice system, i fully agree with pikachu that indeed we have come along way in last two and a half months although we have not attain our real objective that is to get what is rightfully due us, despite the meager resources, the coalition can be proud and thankful for those who fighting for a noble course, the right of our children to a good education and a good future. These people who not only volunteers their services but also has to sacrifice a lot e.g. time, money, energy in making things right as they ought to be. The least we can do is to offer constructive inputs. Let us continue to fight, and fight we must that in the hope that we will able to help this country get rid of unscrupulous individuals and corporations who takes advantage on helpless individuals using the legal system to their advantage.

 
At Friday, July 01, 2005 4:30:00 PM, Anonymous Anonymous said...

the idea of the ygc is wear us out, as Father Reyes told us during the mass, the key to what we are fighting is sustainability. If we can sustain what we are fighting, we have a chance of achieving what have seek out. As the saying goes, "A winner never quits and a quitter never wins." In a fight between good and evil, it is always the good that has to overcome a lot of obstacles before reaping the results, there will always be non-believers, hecklers, pessimists, fence-sitters along the way, but still, we must keep up a good fight. Thanks to the coalition whatever the outcome will result in our fight.

 
At Friday, July 01, 2005 4:46:00 PM, Anonymous Anonymous said...

Grabe ang daming hakot ni Binay. Grabe tuloy trapik d2 sa ayala.

 
At Friday, July 01, 2005 7:57:00 PM, Anonymous pikachu said...

"THAT WAS MINE. AND I AM NOT THE POSTER WHO HURLED ACCUSATIONS ABOUT YOUR POSTS."

Ok Anonymous, I was just trying to pry out if it was the same Anonymous who hurled accusations, as there are so many "Anonymouses".
Anyway, I do agree with you about the Congressmen as I heard how they were during one congressional inquiry which I couldn't attend and also after watching on TV how the investigation on the wiretapping was being conducted. I don't know if I should be amused or distraught as it does erase the way I thought "men of dignity" and men who are addressed as "honorable" should act. Well, I guess I have to wake up, face reality and stop living in a dreamworld, full of idealism !!!!

 
At Saturday, July 02, 2005 9:21:00 AM, Anonymous Anonymous said...

"Ok Anonymous, I was just trying to pry out if it was the same Anonymous who hurled accusations, as there are so many "Anonymouses"."

Thanks! Hindi ba sabi ko "cge na nga. awat na. wala ng away, u stand on your own issues, i on mine."

Kaya ayun, just gave my two-cent's worth of observation sa congressional hearing that i've attended.

 
At Monday, July 04, 2005 10:46:00 PM, Anonymous Anonymous said...

will they still release for 2nd sem?
at this time I want to congratulates the leader of this coalition you have done a tremendous task,no one will deny without it d 2nd n 3rd check will not be release.good luck God bless us all.

 
At Wednesday, July 06, 2005 11:20:00 AM, Anonymous Anonymous said...

The last post mentioned a third check. Was there one and for what was it? Sorry for sounding so clueless but there have been other matters to attend to. Would appreciate being enlightened, please?

 
At Thursday, July 07, 2005 8:10:00 AM, Blogger SunTzu said...

To Anonymous On the 3rd check - may I suggest you enroll in the yahoo egroup so you can obtain the latest news on such topics.

I understand that the 3rd check is available for those whose 1st and 2nd checks (when added up) fall short of the amount received for last years tuition. So if the tuition for last year (yes not this year) is Peso 80,000 and your first 2 checks add up to 70,000, then there should be an additional 10,000 for you.

I suggest we all go back to the original intent of this post which is to solicit suggestions on the trust funds.

 
At Thursday, July 07, 2005 11:28:00 PM, Anonymous Anonymous said...

Thanks, sun tzu.

 
At Friday, July 08, 2005 10:24:00 AM, Anonymous Anonymous said...

this story was taken from www.inq7money.net

URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2005&mon=07&dd=08&file=2




Another pre-need firm files for rehabilitation
Posted: 2:35 AM | Jul. 08, 2005
Elizabeth L. Sanchez
Inquirer News Service


PRE-NEEDA firm Platinum Plans Philippines Inc. early this week sought refuge from a regional trial court to undergo rehabilitation and suspend payment of its tuition obligations.

Branch 61 of the Makati Regional Trial Court on Thursday allowed the company to suspend payments to plan holders and creditors.

Platinum Plans, with over 37,000 plan holders, is the second pre-need firm to ask for court protection this year. In April, Pacific Plans Inc. of the Yuchengco group filed for rehabilitation with the Makati court. It said that it could not pay future claims because school fees had been increasing at a tremendous rate after the government removed the 10-percent cap on tuition hikes in 1990.

Platinum Plans, majority-owned by the Salas family headed by former banker Ernesto Salas, had its license to sell fixed-value and open-ended education plans suspended this year after it ran into liquidity problems.

Platinum has a trust fund deficit of more than P100 million.

In its petition, Platinum asked the court to suspend all claims that would be filed against it and its guarantors. It said it could settle only up to P75 million of its maturing obligations to plan holders.

It has also asked the court to appoint a rehabilitation receiver.

As part of its rehabilitation plan, Platinum said it would not sell, transfer or dispose in any way any of its properties except as requested or incurred in the course of its business.

Platinum said that despite the meltdown in the pre-need industry it believed it should be allowed to undergo rehabilitation and implement a recovery plan to protect the interests of its stakeholders, creditors and plan holders.

It added that the "realizable value of its existing assets can provide a mode of settling all claims of its plan holders which are not yet due at the moment."

It proposed a rehabilitation plan that would run for eight years.

Platinum said in a statement that the filing of its petition to suspend payment to its plan holders and creditors would have a grave impact especially on holders of plans approaching maturity.

It said it hoped that the court would allow it to sell assets to raise enough funds to settle maturing plans.

Platinum began selling education plans in 1983. At the time, it was known as Children's Investment for Lifetime Development Corp. It changed its name to Platinum Plans in 1990.

The company stopped selling traditional open-ended education plans in 1993 and shifted to fixed-value education plans.

It said that from the time it was organized up to 2003 its revenues were on an upswing. It said revenues rose to P553 million in 2003 from P28 million in 1989. During this period, it expanded its distribution network to 132 branches.

In 1999, several senior officers were found to have initiated fraudulent deals by making it appear that the plans were fully paid when they were not. The company dismissed the delinquent officers.

Platinum said that in 2004 revenues fell to P363 million as confidence in the industry was affected by the financial problems of pre-need giants like College Assurance Plan Philippines Inc.

Platinum said that while it has more than enough assets to cover all liabilities, it might not be able to pay for plans as they mature.

Like other pre-need firms that sold open-ended plans, Platinum was adversely affected by spiraling tuition rates.

With INQ7.net

copyright ©2005 INQ7money.net all rights reserved

 
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