Wednesday, June 01, 2005

The PPI case
HIDDEN AGENDA By Mary Ann Ll. Reyes
The Philippine Star 06/01/2005

Pacific Plans Inc. (PPI), a member of the Yuchengco Group of Companies which is exclusively handling about 34,000 open-ended educational plans, is certainly facing funding problems with its open-ended planholders.

This is because the deregulation of tuition fees in 1994 has caused a tremendous rise in the cost of education which, in turn, put enormous pressure on open-ended plans and their corresponding trust funds considering that pre-need companies selling open-ended plans, such as PPI, could not pass on the additional cost to their planholders. It has to be emphasized that the problem is not peculiar to PPI but is, in fact, an industry-wide problem.

Since the 1990s, tuition fees of exclusive private education institutions have increased by an average of 16 percent every year to as much as 28 percent per year.

In contrast, the return on investment on the trust funds created specifically to discharge their obligations under the open-ended plans ranged only from 11 to 14 percent. In other words, PPI’s actuarial assumptions for its open-ended plans were compromised by deregulated increases in tuition and standard fees.

Consequently, pre-need companies began experiencing trust fund deficiencies, 80 percent of which were reported to have been caused by availments on the traditional educational plans.

Because of this, PPI mid-last year was forced to transfer its fixed value plans, pension, memorial and educational fixed plans to another Yuchengco company, Lifetime Plans Inc. (LPI). This was made to protect the more than 400,000 fixed planholders from the huge financial requirements of the open-ended plans or those plans without any cap on educational benefits.

This transaction was intended to improve the efficiency and enable PPI to focus on open-ended target market segments.

At the opening of classes this school year, out of the 34,000 open-ended planholders, there are exactly 15,954 planholders of PPI who are availing of the plan’s benefits or are sending students to school.

This availing group of planholders had paid or contributed a combined total of P557,136,180 in premiums from the time they acquired the plan, with some having started paying back in 1986. That was the year PPI introduced the open-ended plan to the market, which they closed in 1992.

What ails PPI now is the fact that 22.5 percent of those currently availing planholders or only 3,590 are eating up more than 36 percent of the total benefits. These are planholders who are sending their students to exclusive schools. This small group is supposed to get P753.5 million of the total benefit packages.

This group contributed only P132 million to the plan. With 570-percent return on their investment, these minority planholders are the privileged group compared to the non-exclusive school set of planholders.

On one hand, the bulk of the open-ended planholders who are using non-exclusive schools numbering 8,347 or 52 percent of the availing planholders and who had paid over P172 million are getting only 29 percent or a total of P605.8 million.

And consider this: Some of these individual planholders contributed a total of only P29,200 each from 1987 in premium payments and collected up to as much as P558,000 in benefits representing 1,900 percent in their return on investment.

Now, a further review of PPI records and statistics of planholders who had fully availed of the plan’s benefits would attest to the inequity of the distribution from among those whose students are sent to exclusive schools and non-exclusive institutions.

This, thanks to the unabated increases in tuition fees since its full deregulation in 1994 that saw private schools scampering to determine their respective levels of tuition adjustments every year. This government policy prompted PPI to stop selling the open-ended plan two years ahead of full deregulation.

A total of 38,730 planholders had fully availed of the plan’s benefits, meaning, the beneficiaries had gone to school up to graduation under the plan.

And, as in the case of those still availing the plan, those who benefited much constitute 12,063 planholders representing 31 percent whose students were sent to exclusive schools, with total benefits amounting to P2.17 billion or 48 percent of the P4.6 billion that accrued all those who had availed of the plan. While they contributed some P397 million to the plan, they had a 549-percent return on investment.

The majority 21,825 planholders or about 56 percent of those who had fully availed earned total benefits amounting to P1.6 billion, or only 36 percent of total accrued benefits. They had a 500-percent return from their P326.7 million total contribution.

Under the prevailing average rate of return, which on specific cases had reached to as much as 2,232 percent on a total premium of P13,800, and which is abetted by unparalleled yearly increases in tuition fees, the planholders who still have to avail of the plan – numbering 18,510 – will be left with no more benefits to enjoy.

The P557-million contributions of those availing planholders are not even enough to earn for them P2 billion in benefits until 2010 without a rehabilitation program. More so, those who still have to avail will be deprived of the benefits since their own contribution will be wiped out when the benefits of those currently availing are fully enjoyed.

Just the same, PPI has opened a tuition fee assistance window amounting to P591 million for this school year to planholders who are sending their children to school. Of this, P341 million came from PPI while P250 million came from the head of the Yuchengco group of companies, Alfonso T. Yuchengco.

However, this window has been closed after the Securities and Exchange Commission (SEC) last May 25 revoked the registration of LPI.

With the SEC decision, the fate of the 400,000-plus fixed planholders under LPI is in limbo, not to mention the 14,400 sales force and employees of the company.


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The editorial staff of this weblog is always under pressure to try and anticipate the various initiatives that YGC is attempting at any point. Fortunately, many doors have been closed to them:

a) The SEC has definitively called their entire scheme as fraudulent and steeped in bad faith;
b) Their attempt to spin off Lifetime and siphon away the profitable pieces has been aborted by the revocation.

The article above is now a belated attempt on their part to sway public opinion that the entire industry is the victim of runaway tuition inflation. YGC is also aware that Mrs. Helen Dee boastfully remarked to Boo Chanco that she could defend the investment decisions made at Plaza Miranda.

In what Ms. Reyes is passing off as her own research (tsk, tsk, another CM Recto job if we ever saw one...), PPIwould have us now accept that they have opened PPI's and the trust departments' records to her so that she herself can do her own exhaustive analysis. The implicit agenda in this article is to show that despite their valiant efforts to play catch up, they (ie. PPI) and the rest of the industry were simply overwhelmed by the tuition increases.

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We unfortunately have to shut down another YGC line of defense because it is devastatingly easy to disprove the abovementioned article. We will discuss a simple investment strategy that our pet cat, Danny, can do in his sleep.


Danny- The Investment Manager

The strategy calls for investing money in US one year treasury bills at the start of the year and rolling the money over (principal and interest). In that way, we can take advantage of compounding.

The strategy assumes a starting point of 1992 and an end point of 2005 with a starting investment of US$100. We also look at what the tuition payout for a so-called elite school in peso terms for 1992 and 2005. We then convert the tuition into the US $ equivalent to see if our investment strategy has kept up.

Unlike Ms. Reyes figures which concocts numbers based on data that none of us can verify, we simply had to retrieve data from the website of the Federal Reserve Board of St. Louis for the US 1 yr. treasury bill for constructing the table and simulation below:

No Brainer Investment Strategy Posted by Hello


As one can easily verify from the table, our pet cat Danny's investment strategy has been able to keep up with the alleged runaway inflation in tuition.

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Therefore, we come back and pose the following comments:

a) We have noticed that whenever we post documents or facts, the apologists of YGC never join in on the exchange of comments. We challenge the apologists now to explain away our pet cat's investment strategy;

b) The investment managers were paid 1/2 of 1% per year for their so-called investment expertise. What they have managed to do is to create a tremendously underperforming portfolio with horrible assets. CALLING THE BSP ONCE AGAIN.... We want our money back, with investment managers like that, we were much better off doing the job ourselves.

c) Since PPI and the trust managers have decided to waive confidentiality and bank secrecy to Ms. Reyes for her research, then we have to CALL THE BSP ONCE AGAIN to give planholders equal access and transparency.

d) We are now beginning to think that there really is more than meets the eye with respect to those Napocor Bonds. We want everyone to come clean. Commentators on this blog have hinted that RCBC Capital made money underwriting it, sold it to Treasury, and then stuffed it into the PPI portfolio (ie. made money 3X)? CALLING THE BSP, PLEASE...

WE'RE AS MAD AS HELL AND WE WON'T TAKE IT ANYMORE.

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Now that we have shown the no-brainer investment strategy, Mrs. Helen Dee will have to really cram for Plaza Miranda and explain why she and the rest of the gang should not be hauled off to jail for gross negligence on top of the other transgression that the SEC has factually documented.

By the way, we could not help but notice how the apologists were arguing that it would be hard to prove gross negligence (shame on you, looking into the e-group emails...).

Now that you have seen what our pet cat Danny can do, you may want to sing a different tune (we still welcome stool pigeons to help us out)

125 Comments:

At Wednesday, June 01, 2005 10:16:00 PM, Anonymous Anonymous said...

HAHAHA!!! Maniwala kang may pinakita kay Reyes na trust fund document. The manner that column was written was identical to the press releases of PPI.

Trust fund document??? E kakabili lang nga ni Nanette Ferrer ng pampurga dahil pinalunok sa kanya ni Helen yung susi ng cabinet kung saan nakatagO ang mga trust documents nila.

O DARE O, PAKITA NIYO NGA LAHAT NG TRUST DOCUMENTS NIYO???? ILANTAD NIYO SA SHOW NI DONG PUNO O NI PARE AT MARE.

 
At Wednesday, June 01, 2005 10:29:00 PM, Blogger Dora said...

For the last time, blogmaster, please delete those hacker posts. I'm so sick and tired of reading them. Can we put messages on "moderate" status just like in yahoo groups? This means blogmaster can approve or disapprove messages prior to posting.

Yes I believe in freedom of speech. And they can do it on their own blog, not ours!!!

 
At Wednesday, June 01, 2005 10:43:00 PM, Anonymous Anonymous said...

From PDI Cocktales written by Vic Agustin ---

"Heard through the grapevine

THE BOARDROOM shakeup in RCBC Securities is still far from resolved, with one of its directors, former congressman Jose Apolinario Lozada Jr., being the latest to leave the Yuchengco-owned stock brokerage firm.

The instability has already sent fault lines down the executive ranks."

Comment of blogger:

I tell you that this is confirmed. Congressman Lozada has resigned as President-CEO of RCBC Securities. Perhaps, he could not take what his bosses are doing. IS THERE SOMETHING COOKING AT RCBC SECURITIES WHICH HE IS OBJECTING TO? I heard from the grapevine that the P250M "donation kuno" of AY was the Congressman's idea and he did this in good faith. He wanted to have a win-win solution for this PPI problem. Perhaps, he did not like the idea of PPI now holding the release of payments to the planholders since they claim that the payment from the P250M is their own discretion. Maybe for him, the Yuchengcos went overboard.

 
At Wednesday, June 01, 2005 10:52:00 PM, Anonymous Anonymous said...

PPI managers and Helen Dy, if you are really honest and in good faith, then why not show your documents on the purchase origin of the NAPOCOR bonds, down to the selling of said bonds (did you really sell to Lifetime at a loss?). What about your trust agreement with rcbc?
No amount of lip service and envelopmental journalism will change the mindset of the public, especially that the nature of your business is anchored on trust and confidence.

 
At Wednesday, June 01, 2005 11:15:00 PM, Anonymous Anonymous said...

SINCE THE SEC HAS DECIDED THE REVOCATION OF THE LICENSE OF LIFETIME PLANS, WE WOULD LIKE TO CALL THE ATTENTION OF THE:

1. BANGKO SENTRAL NG PILIPINAS - TRUST DEPARTMENT IRREGULARITIES AT RCBC;

2. BIR - TAX EVASION OF BOTH PACIFIC PLANS AND LIFETIME PLANS IN THESE IRREGULAR TRANSACTIONS; ALSO, PREVIOUS YEARS' INCOME TAX DECLARATIONS OF ALL OFFICERS AND SALES ASSOCIATES AT PACIFIC PLANS, INC. (ESPECIALLY VAT-ABLE AGENTS. A LOT OF THE AGENTS ARE IN CONFLICTS OF INTERESTS, ESPECIALLY THE WIVES OF SOME ppi OFFICERS WHO ARE ALSO SALES MANAGERS/ASSOCIATES AT THE SAME TIME);

3. SEC - ANOMALOUS PLANHOLDER DATABASE AT PACIFIC PLANS, USED TO BLOAT/UNDERSTATE ACTUARIAL LIABILITY RESERVES; ALSO, THE LEGAL STATUS OF ALL PLANS SOLD BY LIFETIME PLANS;

4. NBI/OMBUDSMAN/AMLACC - MONEY-LAUNDERING ACTIVITIES OF CERTAIN POLITICIANS, USING PPI/LIFETIME PENSION PLANS.

SINCE WE WILL LOSE OUR JOBS ANYWAY, WE MIGHT AS WELL EXPOSE THE TRUTH ABOUT PACIFIC AND LIFETIME PLANS!!

MABUHAY ANG SEC AT ANG PEP COALITION!!

SHAME ON YOU ENVELOPMENTAL JOURNALISTS!!

NO TO REHAB!! JAIL THE CRIMINALS INVOLVED!!

 
At Thursday, June 02, 2005 4:57:00 AM, Anonymous Anonymous said...

As a result of the PepTrad and Pension Mega we purchased, I used to have peace of mind of knowing that our children will go to college even after I retired from work.

The PLans are properly covered by Agreements., This contract, which was prepared and printed by PPI provided several fine prints, including Section XV. By its nature, the contract have the effect of "take it or leave it" meaning a planholder can not take one provision and reject the others. I was told this are called contracts of adhesion, and in case of conflicts, are always interpreted against the one who prepared the contract.

Our PPA specifically provided that PPI guarantees payment of tution and other fees at any cost at the time of availment. And our only obligation on this contract is to make sure we pay the premiums on time, activate it when lapsed or reinstate it.

Nowhere in the PPA did it mention that I will have to worry nor take active part to influence ARL, Trust Fund Level, expertise in fund investments,and other matters that will ensure avoidance of mismanagement or fraud.

Basta ang nakasaad sa Contrata ay bayad lang ako, at PPI na ang bahala sa pag aaral ng aking mga anak sa colegio.

Maraming nag-alok, pero pinili ko ang Pacific dahil sabi ng sales agent, Yuchengco Group of Companies, matatag at may integridad. In several of their press releases, YGC have always boasted they employ the services of full time investment experts,and have advantages of liquidity, affordability and convenience. Kaya ako ay naconvince to buy from Pacific Plans.

May dahilan naman ako na maniwala noon sa kanilang kakayahan dahil mula 1992 up to last sem of SY 2004-2005 sila ay kumita ng milyon milyon matapos nilang bayaran ang mga claims ng lahat ng planholders.

Nagsimula lamang ang problema ko ng itinatag nila ang Lifetime Plans, Inc. noong Sept. 2004. Ngayon at mag colegio na at gagamitin na ang isa sa aking PepTrad ay sasabihin nilang sila ay nalugi at may kung ano anong problema. Those are operational problems that are not my concern. Like hindi ko problema ang effecto ng pag taas ng gasolina, o ang dahilan ng masyadong pag init ng panahon.

It is my right to demand full delivery of benefits. Dapat lang magbayad ng full tuition fees ang PPI/Yuchengco

Sad to say, and the reality is PPI/Yuchengco have already diminished value of my investment by not making it available at the time I need it.

Ituloy ang laban. Magbayad ang may utang!

 
At Thursday, June 02, 2005 7:15:00 AM, Anonymous Anonymous said...

Maurice Greenberg charged
SPYBIZ By S.A. Maguire
The Philippine Star 06/02/2005

According to the Asian Wall Street Journal, former American International Group (AIG) bigwig Maurice "Hank" Greenberg was caught on tape ordering traders to buy as much as half a million AIG shares to prop up the company’s market price and to keep the stock from falling below $66. The New York State Prosecutor Eliot Spitzer had already charged Greenberg and several AIG officers, accusing them of manipulating financial results, propping up the stock, hiding losses, and arranging a sham deal. AIG allegedly masked losses from its insurance underwriting operations by converting them into investment losses and initiated a deal with Berkshire Hathaway’s General Re to falsely inflate AIG’s reserves for property casualty claims. Greenberg, who is idolized by some Makati businessmen as their god for "transparency and good governance," was fired sometime in March as AIG’s CEO. If one would recall, Presidential Spokesman Ignacio Bunye was quick to defend Greenberg, saying "he was a valuable member of President Arroyo’s International Advisory Board. We trust that he will continue to serve on the International Advisory Board in his new capacity as non-executive chairman of AIG," Bunye said. Malacañang keeps on saying it will not tolerate any corruption and not meddle in cases involving people around them, yet it keeps coming to the defense of these so-called local and international presidential "advisers" being criminally charged in court for graft and corruption. This equivocal stance is puzzling a lot of people. It is no wonder then that the popularity and credibility ratings of Malacañang’s present occupant is quickly sinking like the Titanic.

 
At Thursday, June 02, 2005 7:16:00 AM, Anonymous Anonymous said...

Pacific Plans planholders seek SEC assistance in release of tuition
By Zinnia B. Dela Peña
The Philippine Star 06/02/2005

Planholders of Pacific Plans Inc. are urging the Securities and Exchange Commission (SEC) to direct the pre-need firm to immediately resume its tuition assistance to secure the education of their children.

The planholders formed CARE (The Coordinating Alliance for Reform and Empowerment in the Pre-need Industry) and the Alyansang Reporma at Ugnayang Galing at Aruga ((ARUGA) as recognized legal organizations to protect and promote the interest of Pacific Plans planholders.

They said that while they respect the power and prerogative of the SEC to take certain measures that it believes would protect the interest of the public, the revocation of the certificate of incorporation of Pacific Plans’ subsidiary Lifetime Plans Inc. has resulted in the suspension of Pacific Plans’ tuition assistance, to the detriment of thousands of the pre-need firm’s planholders.

"With school opening just around the corner, the grim scenario awaiting planholders is that the enrollment of their children would be left hanging in the vine of uncertainty while the commission and Pacific Plans engage in legal squabble," CARE and ARUGA said in a joint letter to SEC chairperson Fe Barin.

Both organizations noted that "many planholders are pinning their hope for such assistance to ensure the enrollment of their children this coming schoolyear and that such assistance should cover the whole schoolyear and not merely the first semester enrollment."

CARE and ARUGA said the SEC should ensure that the greatest number of beneficiaries would benefit from such assistance by making it, for the time being, equal in amount to all planholders regardless of the original terms of their contract.

They have also asked the SEC to clarify its May 24 order to assure planholders of both Pacific Plans and Lifetime Plans that their rights under the terms of their contracts would not be impaired.

SEC commission secretary Gerard Lukban, for his part, said Pacific Plans should not make the agency’s order an excuse for it to evade its contractual obligations to planholders. "I believe part of the order is to continue paying the tuition. It’s out of our jurisdiction now. Their planholders can approach the court to require Lifetime to continue paying.

Prior to the SEC order, Pacific Plans had distributed P591 million in cash to its planholders, P250 million of which came from the personal resources of former ambassador Alfonso Yuchengco, the patriarch of the Yuchengco Group of Companies.

Pacific Plans said it would provide a liquidity window of another P300 million to its traditional planholders should the court approve its rehabilitation plan.

Lifetime Plans has strongly opposed the SEC’s order, saying the commission committed grave abuse of discretion when it cancelled the registration certificate of Lifetime Plans.

The revocation of Lifetime’s registration was allegedly due to the firm’s failure to comply with the requirements on transfer of property for shares to support its capitalization.

In its motion for reconsideration filed with the SEC, Lifetime said the questioned order failed to sufficiently state and discuss the reasons for the revocation of the certificate of incorporation, leaving the company to merely speculate on the basis of the commission’s finding that its submissions were "insufficient."

Lifetime alleged that the SEC failed to comply with the requirements of due process, particularly the requirements of notice and hearing.

The company, however, stressed that it had sufficiently and timely complied with all the requirements of the SEC. It explained that its alleged failure to submit sufficient documentation is not even expressly provided for by the Corporation Code to justify the revocation of the certificate of registration of a corporation.

 
At Thursday, June 02, 2005 7:24:00 AM, Anonymous Book Hunter said...

Mary Ann Ll. Reyes column is a classic example of selection of data favorable to one's argument. Classic PPI line: 1900% ROI. This is probably the highest return anyone ever got.

I'm surprised that no one has posted the link to tony lopez's column yet. Some interesting new tidbits there. The variance in the trust fund reports to the BIR and SEC is enough to put them in jail.
Here's the URL:
http://www.abs-cbnnews.com/storypage.aspx?StoryId=6687

 
At Thursday, June 02, 2005 8:29:00 AM, Anonymous Anonymous said...

In response to:

I'm surprised that no one has posted the link to tony lopez's column yet. Some interesting new tidbits there. The variance in the trust fund reports to the BIR and SEC is enough to put them in jail.
Here's the URL:
http://www.abs-cbnnews.com/storypage.aspx?StoryId=6687

This is another attempt by the Coalition to create a cloud of "fraud" in PPI's transactions. If you look at article below, it even shows that PPI tried to ask SEC help early on but PPI was told it is beyond their jurisidication and to file it in court.

Until now, no government agency or court of law has stated that PPI made fraudulent transactions. Opposition to rehabilitation is totally different to accusation of fraud.


Here is full article below:
SEC clobbers PPI


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VIRTUAL BUSINESS By TONY LOPEZ

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Finally, the Securities and Exchange Commission has spoken and it doesn’t like what Pacific Plans Inc. has been doing.

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Finally, the Securities and Exchange Commission (SEC) has spoken and it doesn’t like what Pacific Plans Inc. has been doing.

The government corporate watchdog is accusing PPI of bad faith in dealing with it and with the Bureau of Internal Revenue. The SEC claims PPI submitted a different set of figures with the agency and with the BIR on the value of its investment in trust fund. The amount is P6.33 billion with the BIR and P8.311 billion with the SEC.

The SEC has told the Makati Regional Trial Court hearing PPI’s petition for bankruptcy "of the unreliability of Pacific’s representations and statements." SEC wants the PPI petition junked.

The SEC action puts the PPI management under Ernesto "Sonny" Garcia, company president, and the SEC, under chair Fe Barin, on collision course.

Actually, the SEC has little recourse but chastise PPI. Its own credibility is at stake. It is supposed to supervise the operations of preneed companies.

Yet, the two biggest of them all, the College Assurance Plan and PPI, have collapsed. The two companies promised their preneed plan holders more than what they can deliver. And they simply have run out of money to make good on what they promised their plan holders.

Thousands of plan holders are angry, with CAP, with PPI, with the SEC and with the Makati RTC judge hearing the PPI bankruptcy case, Romeo Barza. PPI’s lawyer is the famous law firm of Villaraza & Angangco and Judge Barza is an alumus of that firm.

And given a company that you use to own and people, meaning the plan holders, you don’t know from Adam, you usually tread the path usually taken. It’s human nature. And it’s not even about money. Think of the possibilities of huge sums of money are involved. The bankruptcy petitioner, PPI, "is solvent and liquid. Thus, resort to rehabilitation is not necessary," the SEC told Judge Barza. "Petitioner is not entitled to the judicial relief sought considering that it did no come to court with clean hands," the SEC contended.

Pacific seeks to suspend the payment of its obligations under existing contracts with the plan holders of open-ended (traditional) educational plans.

"The paramount dream of concerned parents who have invested their hard earned money in securing their children’s education should not be put to naught," the SEC contended.

It pointed out: "Contracts are preferred by mere consent, and from the moment of their perfection, the parties are bound not only to the fulfillment of what has been expressly stipulated, but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law."

"The contracts executed between Pacific and its plan holders must be respected," the SEC insisted. "The plans cannot be unilaterally amended without the consent of the plan holders. The approval of the proposed rehabilitation plan will violate the consensual nature of contracts. Thus, Pacific’s obligations to its existing plan holders must be sustained."

Pacific has been in the preneed business for 39 years. It has 70 branch offices nationwide, and 9,052 sales agents. Since year 1966, it sold almost P44.6-billion worth of plans: P12.4-billion education plans, P7.02-billion life plans and P24.4-billion pension plans.

On December 19, 1992, Pacific stopped selling traditional plans.

In 1999 Pacific increased its authorized capital stock from P100 million to P600 million.

In a letter dated April 23, 2003, Pacific, through its counsel Villaraza & Angangco Law Offices, sought the SEC’s approval of its proposed changes in the reinstatement guidelines for the traditional plans.

The changes sought: requiring a payment in full of all overdue installments "with surcharge from due date of each installment at a rate of 18 percent per annum"; or redating "subject to the provisions of Article VI, by payment of one installment based on the prevailing rate and terms."

The SEC refused to act on the PPI petition. It said legal issues which may involve private rights like the implementation of PPI’s traditional plans (or PEPtrad) contracts are normally resolved by the courts upon filing the appropriate complaint.

In a letter dated March 29, 2004, Pacific, through its chair Helen Dee, sought the approval of the SEC to reorganize Pacific spinning off the company into two corporate entities, one for pension and memorial and the other, for education. The corresponding trust funds were to be transferred to the new corporate entities.

Thus, Lifetime Plans Inc. was born. Under the segregation, of PPI’s P5.68 billion actual reserve liabilities, P2.866 billion (50.44 percent) remained with PPI, while P2.81 billion (49.56 percent) with Lifetime. Lifetime was incorporated on August 12, 2004, with a paid-up capital of P205,137,852.00 (including premium of P105,137,852.00). The paid-up capital consisted of cash, receivables and the company’s property and equipment.

Later, the SEC dissolved Lifetime, shattering PPI’s game plan.

* * *

For comments and reaction, e-mail tonylopez@biznewsasia.com

 
At Thursday, June 02, 2005 9:45:00 AM, Anonymous Anonymous said...

Breakfast Table
Arousing a social conscience


THERE are businesses imbued with social dimension, pre-need plans, especially in education, is one. It is one thing to penalize an enterprise for an arguably evasive business practice and another to kill it. This is precisely what the Security and Exchange Commission has done with Lifetime Plans, Inc.



In hastily revoking the certificate of incorporation of PPI, the SEC has imperiled the livelihood of 14,500 working people and compromised the future of the children of 400,000 plan holders. With the prohibitive cost of education, the long-term effect of the SEC’s precipitate decision is the "dumbing" of the Filipino.

The lesson here is that a business will flounder if it’s built on the shifting sands of government’s economic policy. The vicissitudes of Pacific Plans, Inc., from which was spun LPI, were not caused by market forces, but by deregulation. Now, the PPI is in trouble because of regulation.

Even granting that both PPI and LPI should be penalized, it’s throwing the baby with the bath by depriving 400,000 plan holders of the privileges they bought with their life’s blood. Perhaps, the economy can gamely stand 14,500 more unemployed people, but it’s highly doubtful that the unemployed can endure it, as Ronald Arciaga, the spokesman for the LPI sales force said at the SEC media center.

At a time when apparent criminal deeds take lengthy investigations to unravel, it’s absurd that a business miscalculation would summarily be meted the supreme penalty.

Regulators are supposed to serve the public interest by protecting consumers from the vagaries of commerce. As pointed out in another newspaper column, what the SEC did only bruised the ego of a prominent business family but killed the hopes of hundreds of thousands. Instead of looking for ways of protecting consumers, the SEC chose to be Draconian rather than conciliatory.

As the signatories of a manifesto to SEC chair Fe Barin stressed, LPI was not even given a chance to remedy the "insufficiency" of its compliance to SEC requirements.

And yet they’re appealing to the "sense of fairness" of the Commission, hoping to arouse its dormant social conscience.

 
At Thursday, June 02, 2005 9:48:00 AM, Anonymous Anonymous said...

It Seems that Danny the Cat(and Coalition) doesn't know his numbers:

Using your example:

Principle:$100
End Principle: $176

Increase before taxes: 76%

End Principle after Tax(20% tax on yield): 160.8
Effective percent increase in capital: 60.8%
(Coalition forgot TAXES!!!!!)


Begininng Tuition Fee: P17000 or $708.33 (@24PHP:1USD)
End Tuition Fee: P69,000 or $1254(@55PHP:1USD)
Increase: 77%

Increase in Money (60.8%) can't cope with Tuition Fee Increase (77%)

This doesn't include trust fees,administrative fees, and the like.

By your own example, you killed your own logic that you can find an investment that can match tuition fee hikes.

Coalition should try and try again until you can create something that seems logical.

 
At Thursday, June 02, 2005 9:49:00 AM, Anonymous tuition hikes said...

Great! I'm glad you answered that article by Mary Ann Reyes and no-one can argue with those figures. May I make a suggestion? Can the articles posted by the coalition be written in the style and spirit of the one who wrote "Explanatory Note on the AIG article"? It has a higher tone, somehow. The smart-alecky and slightly arrogant tone of "Untitled" is off-putting ... too much like our arch-enemy, that yucky Conrado Banal.

 
At Thursday, June 02, 2005 9:51:00 AM, Anonymous Anonymous said...

SIMO KAYA ANG MANLOLOKO? ANG PPI NA AYAW TUPARIN ANG OBLIGASYON? O ANG PPI NA HININTO ANG RELEASE NG MGA TSEKE?

IS THIS NOT FRAUD????

 
At Thursday, June 02, 2005 10:00:00 AM, Anonymous Anonymous said...

IT IS NOT TRUE THAT AFTER 1992, TUITION INCREASED MORE THAN 10%

IF U HAV AN EXCLUSIVE PLAN AND UR SCHOLAR IS ENROLLED IN A NON-EXCLUSIVE SCHOOL, PPI SHOULD GIVE U THE AVERAGE OF THE AMOUNT PAID TO EXCLUSIVE PLANHOLDERS.

SINCE PPI PAID AN INCREASE OF 7% PER YEAR FOR THOSE AVAILING THE "AVERAGE" OR "AVERAGING", THEN WHAT PPI CLAIMED IS NOT TRUE. IF IT WERE, THEN PPI HAS BEEN DEFRAUDING US ALL ALONG...

 
At Thursday, June 02, 2005 10:06:00 AM, Anonymous Anonymous said...

"Increase in Money (60.8%) can't cope with Tuition Fee Increase (77%)

This doesn't include trust fees,administrative fees, and the like.

By your own example, you killed your own logic that you can find an investment that can match tuition fee hikes."

Coalition should be more careful in publishing write-ups. This destroys our credibility.

 
At Thursday, June 02, 2005 10:20:00 AM, Anonymous Anonymous said...

Corporate Conscience,

Mag-remedial classes ka muna sa math dahil pati computation ng percentages mo mali. Isama mo na rin ang pusa mo baka sakaling may-pagasa pa kayong matuto.

 
At Thursday, June 02, 2005 10:28:00 AM, Anonymous Anonymous said...

Re: "Breakfast Table
Arousing a social conscience"

To Mr. Adrian Cristobal,

If this is the very best you can write about a complex situation, then please don't bother to publish it. What you have written barely scratches the surface of the issues involved and is obviously wrong on so many points. May I suggest that you conduct more research before saying anything. After you do so, then please review what you have written here and ask yourself: who was the dumb Filipino who wrote this?

 
At Thursday, June 02, 2005 10:34:00 AM, Anonymous Anonymous said...

tanga talaga kayong mga paid hacks! that's precisely the point...if the parents had self managed eh di ahead ka pa! and to the first guy who mentioned the taxes...HELLO! US Treasuries yan so there isn't 20% withholding....walang withholding tax sa America tsong! Bakit yung Napocor ba may withholding? di ba wala rin! bwahahahahaha....i sure hope you weren't our trust manager...pero..siguro nga ikaw yun...para kang guilty!

 
At Thursday, June 02, 2005 10:44:00 AM, Anonymous Anonymous said...

Imagine, in todays BusinessWorld, Citigroup settled a $208M fraud case caused by two of its units! Now THAT is business WITH a social conscience and moral responsibility!

Its investment advisers to its mutual fund misrepresented and put its own interest ahead of the interests of the mutual funds it had a duty to serve. It recommended a change in third-party transfer agent to one that was affiliated with Citigroup, thus prejudicing the interests of the mutual fund and its investors.

So, on behalf of those two investment advisors, Citigroup took up the responsibility and settled the fraud charges to the tune of $208M! THAT IS MAKING HONEST REPARATIONS. And to think that was just misrepresentation in advising for a change in transfer agents.

Eh in our case, its WORSE! Merong direct mismanagement of planholders funds!

Plus, sa atin, bulok ang mga nagpapatakbo! Crooks and thieves of the "scamming" and "swindling" type. Not at all world-class and global in terms of Corporate Social Responsibility and Good Governance!

Again, it doesn't matter if they cannot produce yields to meet plan benefit availment. That's beside the point. The point is, they reneged on the contract, they mismanaged funds, they committed fraudulent transfer of assets to be able to claim bankruptcy.

Kahit ano pang sabihin ng YGC hacks, those are the facts, plain and simple.

 
At Thursday, June 02, 2005 10:52:00 AM, Anonymous Anonymous said...

In response to:

"HELLO! US Treasuries yan so there isn't 20% withholding....walang withholding tax sa America tsong!"

Kung ayaw mo bayaran and local taxes bayaran mo na lang Federal taxes sa US on T-Bills which is even higher than 20% at 36%.


From the Internet:

"I think it's best to put everything on an after-tax basis. The after-tax yield on a T-bill is obtained by multiplying its yield by one minus your federal tax rate. Let's say the three-month bill is yielding 5.89 percent. If your marginal federal income tax rate is 36 percent, the after-tax yield is 3.77 percent:

5.89 percent x (1.00-.36) = 3.77 percent
"

 
At Thursday, June 02, 2005 10:58:00 AM, Anonymous Anonymous said...

"Bakit yung Napocor ba may withholding?"

All interest income is subject to 20% tax.

 
At Thursday, June 02, 2005 11:07:00 AM, Anonymous Anonymous said...

Never forget that PPI had enough funds in its trust for all plans. Never forget that it had an excess over ARLs until before the transfer of assets in 2004. Never forget that it had over a billion pesos net income before the 2004 transfer. Never forget that PPI/Yuchengco committed fraud and this was all documented even in earlier years when they asked for legal advice for their planned shutdown of PPI traditional plans.

 
At Thursday, June 02, 2005 11:28:00 AM, Anonymous Anonymous said...

"Until now, no government agency or court of law has stated that PPI made fraudulent transactions. Opposition to rehabilitation is totally different to accusation of fraud"

So what do you call a company that would not deliver what its contract state? Ang sa amin lang naman, restore the contents of the contract. Yun lang. Now, if your employer won't do that, then what do you call that?

 
At Thursday, June 02, 2005 11:28:00 AM, Anonymous Anonymous said...

para walang away..ipa-audit na lang natin yung trust manager. we should really lobby the BSP to see if they stuffed us with bum assets like Napocor Zeros just becasue RCBC Capital din yung nagbebenta

 
At Thursday, June 02, 2005 11:58:00 AM, Anonymous Anonymous said...

"ANG PPI NA HININTO ANG RELEASE NG MGA TSEKE?"

ang hininto lang ay ung sa 250M until clarified.

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

"So what do you call a company that would not deliver what its contract state?"

Eh anong tawag mo rin sa CAP, Platinum, Prudential, TPG and PET?

 
At Thursday, June 02, 2005 12:14:00 PM, Anonymous Anonymous said...

"Eh anong tawag mo rin sa CAP, Platinum, Prudential, TPG and PET?"

- You keep pointing the finger at other pre-needs. Hindi sila ang pinag-uusapan dito. Whatever they did, fraudulent or not, does not exonerate PPI/yuchengco of fraud.

 
At Thursday, June 02, 2005 1:00:00 PM, Anonymous Anonymous said...

'You keep pointing the finger at other pre-needs. Hindi sila ang pinag-uusapan dito. Whatever they did, fraudulent or not, does not exonerate PPI/yuchengco of fraud.'

What I'm pointing out is the issue on deregulation which does not affect PPI but also these companies. As to fraud, there are info on the owner and son of one the companies mentioned above getting payments to pay for condo and other things. But has there been any evidence of fraud against PPI except those which you keep on trumpeting around?

 
At Thursday, June 02, 2005 1:02:00 PM, Anonymous mjc said...

Mag-remedial classes ka muna sa math dahil pati computation ng percentages mo mali. Isama mo na rin ang pusa mo baka sakaling may-pagasa pa kayong matuto.

HAHAHA! Tama! Pero wag mo ng ipasama yung pusa. Kasi baka malaman na mas may utak ung pusa nya kesa sa kanya. NGIYAW!

 
At Thursday, June 02, 2005 1:05:00 PM, Anonymous Anonymous said...

grabe! sobrang active yung mga kampon ng ygc ngayon! magkano ba ang bayad per post?

 
At Thursday, June 02, 2005 1:08:00 PM, Anonymous Anonymous said...

For the information of the YGC paid hack:

Prudentialife is paying its planholder on time. Planhoilder can get the check either payable to school or reimbusement to planholder a day after all the documents were submitted to the their School Operations Department.

Please before pointing your fingers to other pre-need companies VERIFY FIRST.

 
At Thursday, June 02, 2005 1:15:00 PM, Anonymous Anonymous said...

"What I'm pointing out is the issue on deregulation which does not affect PPI but also these companies."

- changing government policies and new laws affect ALL businesses. It's part of the hazards of doing business. Financial institutions such as PPI are SUPPOSED to be in a better position to manage these risks for us - that is one reason for buying the plan. However, it is becoming apparent that idiots, liars and cheats managed our money. Evidence of fraud? Ninakaw na nga pera namin eh. That is evidence enough to convince me.

 
At Thursday, June 02, 2005 1:50:00 PM, Anonymous Anonymous said...

PEP's adivise to it's posters:

If people discover something wrong with our logic (today it was numbers), accuse them of being a paid-hack. (or any diversionary tactics)

MEOW!

 
At Thursday, June 02, 2005 2:10:00 PM, Anonymous Anonymous said...

'Prudentialife is paying its planholder on time. Planhoilder can get the check either payable to school or reimbusement to planholder a day after all the documents were submitted to the their School Operations Department.'

May nakikibasa palang taga Prudential. Pare, salamat sa tulong ha. Pakisabi rin kina Alba, pakidagdagan ang pondo namin.

Thanks!

 
At Thursday, June 02, 2005 2:12:00 PM, Anonymous Anonymous said...

"Ninakaw na nga pera namin eh. That is evidence enough to convince me."

Ninakaw? Saan napunta? Di ba binabalik pa nga with interest. Kung ninakaw yan, wala na yan!

 
At Thursday, June 02, 2005 2:21:00 PM, Anonymous prudential insider and longtimer said...

TO THE PRUDENTIALIFE GUY/GAY/LADY:

Wag kang pasisiguro. Baka mas maingay paglagapak natin. Press release lang naman ang sa atin eh. Alam mo yan. Tell me, why did we merge all our life, pension and education companies into one? Is it because this was done to hide the growing deficit sa trust fund natin? As everybody can verify from SEC, we have more than 280,000 Traditional Planholders and we only stopped selling in 2002. I am just worried. Lets see!

 
At Thursday, June 02, 2005 2:47:00 PM, Anonymous Anonymous said...

"Ninakaw? Saan napunta? Di ba binabalik pa nga with interest. Kung ninakaw yan, wala na yan!"

---
Asan yung binabalik? Napocor bonds? Sino ang tatangap ng napocor bonds? What are you? A moron?

The trust fund should have made more money had these PPI people were competent. Worst, what they have is a bum asset in napocor bonds.

Talagang magnanakaw sila!!

Proof: Plan holders who failed to complete payment lose their money to PPI. PPI will/did not return those money. Did the money paid went to the trust fund? Hindi! Sa bulsa ng mga yuchengco in the guise of profits!

Itong mga paid hacks na ito, di ko maintindihan kung bobo o tanga o ignorante! Alam ko na, all of the above!!

 
At Thursday, June 02, 2005 2:50:00 PM, Anonymous Anonymous said...

RCBC denies 'bank run' report


Rizal Commercial Banking Corp (RCBC) on Thursday debunked a newspaper report alleging that it had been hit by a mild bank run due to problems with sister company Pacific Plans Inc. (PPI).

"There is no truth to the article that appeared in [Thursday's] Daily Tribune. It is pure speculation," Pamela Quizon, RCBC disclosure department head, said in a statement to the Philippine Stock Exchange.

Broadsheet Daily Tribune on its June 2 issue said RCBC had been hit by big withdrawals amounting to at least P14 billion.

The report said one client who claimed to maintain a multi-million account in the bank told reporters he already withdrew his money and parked it somewhere else after the PPI issue exploded.

RCBC president and chief operating officer Francisco S. Magsajo also dismissed rumors being circulated via text message that RCBC is having financial problems due to withdrawals arising from the PPI controversy.

RCBC posted a net profit of P107.07 million for the first quarter to March, significantly less than its year-earlier earnings of P360.16 million, as it booked higher provisions for probable losses on loans.

PPI came under fire after it suspended payments to education plan holders citing liquidity problems. It also filed a petition for rehabilitation before the Makati Regional Trial Court.

The Securities and Exchange Commission (SEC), however, said the preneed firm doctored its books to make it appear that liquidity problems prevented it from paying its plan holders.

SEC spokesman Gerard Lukban said the company even gave conflicting figures in the audited financial statements it submitted to the Bureau of Internal Revenue (BIR) and SEC.

In its statement to the BIR, the company said its trust fund investment was worth P6.34 billion. But in its report to the SEC, it said its investment was at P8.31 billion.


---
Talagang mga bulag na yata itong mga tao sa YGC! Wala daw bank run!! Hello!!!

 
At Thursday, June 02, 2005 2:50:00 PM, Anonymous Anonymous said...

From the Coalition's report(no2pep2010 group mail):

"According to a study conducted by PPI sometime in the late 90s, the annual tuition hike of exclusive schools averaged about 15% per annum .

Comparatively, the average yield on 364-day Treasury Bills from 1986 to 1999 was about 16.4% per year. On the other hand, the average yield on 364-day T-Bills from 1986 to 2005 was 14.3% per annum."

Coalition again forgot to put taxes. 16.4% yield before tax, will have an effective yield of only 13.2% after tax. 14.3% yield before tax, will have an effective yield of only 11.44% after tax. This will be a biger discrepancy over 14 years.

With all the accountants and lawyers in PEP, I am sure that colaition knows about it. However, they have to maintain this "cloud of fraud" that they want to impose on the planholders.

 
At Thursday, June 02, 2005 2:59:00 PM, Anonymous Anonymous said...

"Ninakaw? Saan napunta?" -
Pumunta sa ibang kumpanya, payment of management fees, dividends, etc.

"Kung ninakaw yan, wala na yan!" - Nawala nga nung tinanggal sa PPI, eh. Binalik lang ng SEC.

"Di ba binabalik pa nga with interest." - Luma na yang linya na yan. That is not what we paid for. That is far less than the VALUE of the contract. (Which of course is almost worthless now.) If I paid you P100 for a certain stock and the VALUE of the stock climbed to P200, you will certainly be in default of our contract if you only return my P100 plus 7% interest. (Please, find out naman what value means.) And if you pass that stock to someone else in order to prevent me from enforcing our contract, that is fraud.

 
At Thursday, June 02, 2005 3:03:00 PM, Anonymous Anonymous said...

May naririnig na rin akong P25,000 na availment sa prudential, take it or leave it, may quit claim pa!

How's that?!

 
At Thursday, June 02, 2005 3:13:00 PM, Anonymous Anonymous said...

Sen. Edgardo J. Angara
Address: 5th flr., Rm. 504
Senate of the Philippines
GSIS Bldg., Financial Center,
Roxas Blvd., Pasay City
Telefax: No.: 552-6601 loc. 5572
email: edgardo_angara@hotmail.com

Is Angara blocking senate investigation of PPI/pre-need industry? Fellow planholders, lets give Angara a piece of our mind.

 
At Thursday, June 02, 2005 3:23:00 PM, Anonymous Apologist #1 said...

Puro kasi accusations, confident daw sa hawak nilang figures.
Pinagnakawan, niloko, etc., pero wala namang hinahabla. Puro ingay.
May ihahabla daw pero hindi sa korte pupunta, magprepress conference daw. Ang lupit!!!

Ang gagaling din pagdating sa analysis,computations, investments,etc. Pero malamang maxed out din ang credit cards. Kung may negosyo man, tagilid din, kung hindi man, well, good for you.

Balik tayo sa mundo, mga boss. Hindi naman lahat ng tao ay manloloko. Huwag tayo masyadong dramatic. Ngiyaaww!!!

 
At Thursday, June 02, 2005 3:45:00 PM, Anonymous Anonymous said...

"Proof: Plan holders who failed to complete payment lose their money to PPI. PPI will/did not return those money. Did the money paid went to the trust fund? Hindi! Sa bulsa ng mga yuchengco in the guise of profits! "

Aba'y, ikaw pala ang ubod ng tanga. kahit saang kumpanya mo tignan yan, may ganyang probisyon. MORON!

 
At Thursday, June 02, 2005 3:47:00 PM, Anonymous Anonymous said...

"For the information of the YGC paid hack:

Prudentialife is paying its planholder on time. Planhoilder can get the check either payable to school or reimbusement to planholder a day after all the documents were submitted to the their School Operations Department.

Please before pointing your fingers to other pre-need companies VERIFY FIRST. "

"May naririnig na rin akong P25,000 na availment sa prudential, take it or leave it, may quit claim pa!

YAN ANG SINASABI KO EH. AYAW KO LANG MAG-SPECIFY BUT IT TOOK SOMEONE ELSE TO DO IT. BAKA DI MO ALAM KAYO ANG SUSUNOD NA MAREHAB.

How's that?! "

 
At Thursday, June 02, 2005 3:56:00 PM, Anonymous Anonymous said...

apologist #1,

an empty can makes a lot of noise. go to the pro-rehab na kasi. ang ingay ingay mo na dito. parang ka ng eng-eng.

 
At Thursday, June 02, 2005 4:09:00 PM, Anonymous mjc said...

"an empty can makes a lot of noise."

KAYA PALA ANG INGAY NI PHILIP FREAKSHOW. YAN ANG TOTOONG NO-BRAINER!

 
At Thursday, June 02, 2005 4:26:00 PM, Anonymous Anonymous said...

It has been almost two months. A bank run will close a bank in a matter of days.

 
At Thursday, June 02, 2005 4:39:00 PM, Anonymous Anonymous said...

"A bank run will close a bank in a matter of days."

- not necessarily. Several banks have already suffered bank runs but survived via BSP emergency loans. In the case of RCBC, they did not get a loan from the BSP because it would be an outright admittance of a bank run. They got a loan from a foreign bank thereby making the transaction more discrete.

 
At Thursday, June 02, 2005 4:52:00 PM, Anonymous Anonymous said...

Obviously there is no bank run. If there is a bank run of 14B, then Yuchengcos would have just paid us planholders which is only 2B.

 
At Thursday, June 02, 2005 4:53:00 PM, Anonymous Anonymous said...

to the paid hack of YGC...

puede ba tumahimik ka na lang. were having constructive exchanges of idea here. doon ka na lang sa kabila, anyway konti lang naman ang hit nyo doon eh.
chong bilib ako sa iyo, am sure with your argument eh ganyan din ang teaching mo sa mga kids mo kung me anak ka nga. kapal mo naman!

 
At Thursday, June 02, 2005 4:57:00 PM, Anonymous Anonymous said...

How does it matter what happens at Prudential, Platinum, etc in terms of letting PPI off the hook? If my competitors in business all start losing money, that gives me the right not to pay my creditors? If banks like Urban, Westmont, etc have bank runs and close, it gives bigger banks like BPI and Metrobank the right not to return our placements?

That's why I didn't go with those other firms, I went with YGC.

All the analysis of rate or return is irrelevant. If I buy goods now and sell it at a loss, that still does not give me the right not to pay my supplier, no matter how I justify that I have negative rate of return.

A lot of companies had dollar denominated loans when our currency lost half its value. I don't think they could ask the banks to pay in peso using the rate at the time they availed of the loan. No amount of justifying the impact of the currency exchange rate and rate of return of their business would have been acceptable in not paying back the loan.

 
At Thursday, June 02, 2005 4:57:00 PM, Anonymous Anonymous said...

"If there is a bank run of 14B, then Yuchengcos would have just paid us planholders which is only 2B." - You want PPI to pay us w/money of depositors from RCBC? Man, no wonder we are in this situation!

 
At Thursday, June 02, 2005 4:58:00 PM, Anonymous Anonymous said...

"constructive exchanges"

Constructive? More of destructive to us. With the way your shotgun approach is wreaking havoc not only to the pro-rehab trad planholders but also to us fixed value planholders, there is no doubt as to your intentions - that is to destroy the future of more than 400thousand planholders, the industry and the economy as a whole.

 
At Thursday, June 02, 2005 5:01:00 PM, Anonymous Anonymous said...

"that gives me the right not to pay my creditors?"

Hindi ba binabayaran ka!

 
At Thursday, June 02, 2005 5:02:00 PM, Anonymous Anonymous said...

"there is no doubt as to your intentions - that is to destroy the future of more than 400thousand planholders, the industry and the economy as a whole." - and you say we are being dramatic?

 
At Thursday, June 02, 2005 5:02:00 PM, Anonymous Anonymous said...

Wala naman takutan. Susunod na irerehab ang TPG at Prudential? Di naman siguro.

Sa Platinum di ba dapat yung owners ang i-rehab?

 
At Thursday, June 02, 2005 5:08:00 PM, Anonymous Anonymous said...

pare...at what rate did rcbc get its loan rate? laki siguro ng overnight borrowing rate nila. it will only be a matter of time before the yuchengcos get a dose of their own medicine

 
At Thursday, June 02, 2005 5:13:00 PM, Anonymous Anonymous said...

The loan rate RCBC got is higher than the BSP emergency loan rate. Pero they bit the bullet para di kumuha ng BSP loan. They also got enough funds para lending sila sa overnight market. Para di halata.

Laki problema ng mga branch head nila ngayon.

 
At Thursday, June 02, 2005 5:29:00 PM, Anonymous Anonymous said...

In response to:

"Never forget that it had an excess over ARLs until before the transfer of assets in 2004."

ARL Analysis:

1) "The actuary does not make predictions. The actuary also does not determine
reserve liabilities at some point in time in the future. Instead, the actuary
calculates a reserve liability as of the time that financial reports are due, so
that the corresponding Trust Fund to back up the liabilities of existing preneed
plan contracts could be set up. From this Trust Fund will be paid the
current and future benefits as promised in the pre-need plan contracts."

Above is from the actuary web site.

2) ARL is computed yearly.

3) If 2004 trust fund is sufficient(greater than ARL), it doesn't mean that Trust fund in 2005 is sufficient. Possible reasons:

1) If NPV estimate of future liabilities change. Ex. 2010 forecast of tuition done in 2004 is different when done again in 2005 due to changes in expected tuition fees.

2) There were articles that PPI has been putting additional cash from margins into the trust fund to make it sufficient. When PPI stops doing this, then trust fund will be deficient since there are no new sales.

3) Exchange rates since this affects the current value of the trust fund. Peso has appreciated a lot since 2004.(Currently 54.50 vs 56.50 a year ago)

 
At Thursday, June 02, 2005 5:42:00 PM, Anonymous Anonymous said...

"Wala naman takutan. Susunod na irerehab ang TPG at Prudential? Di naman siguro.

Sa Platinum di ba dapat yung owners ang i-rehab?"

Pare, hindi ito takutan. Katotohanan ito. Magtanong ka sa mga planholders ng TPG, Prudential and Platinum.

 
At Thursday, June 02, 2005 5:53:00 PM, Anonymous Anonymous said...

The presence of those who are obviously paid hacks of YGC only confirms the company is desperate to sway public opinion. How sad.

the more kayo mag ingay, the more nagmumukhang desperado si Alfonso 'mr. Integreedy' yuchengco.

this episode will cost them alot of money paying for paid hacks and envelopmental journalists. at least it creates employment.

in the street, I have yet to find a person willing to believe those 'pro-yuchengco' articles and arguments. sa press at sa internet lang nila pinapalabas na may silent majority. heheh, kung totoong meron, bakit nyo pa kelangan patulan tong mga nasa minority?? hindi talaga kayo consistent. all those time you spent here just to sway a few dissenters? cummon?! diba kayo na rin nagsabi walang fraud, PEP lang puro ingay? e di hayaan nyo na mag ingay ang PEP kung talagang confident kayo sa mga sinasabi nyo. hehehe, pero hindi nga kayo confident kaya nyo iniinvade tong message board.

hindi bobo mga tao, they see fraud when they see one. you can huff and puff and sow intrigues but you know your days are numbered. enjoy your payment while it last. some people will do anything for money. sabi nga, marami ang mga pokpok sa bansa, I suppose YGC just showed us how many white collar prostitutes there are.

Sige, magpost pa kayo para di magutom mga anak nyo. here's a brigther future for kids whose parents are ready to trade their souls for a few pence. musta mo na lang kami kay demonyo when you meet him (anyway matagal pa kasi hindi madaling mamatay ang masamang damo). paki sabi rin kay Alfonso na walang abogabogado sa langit. there will be no technicalities on the day of reckoning. kayo rin, tandaan nyo yan.

 
At Thursday, June 02, 2005 6:02:00 PM, Anonymous Anonymous said...

Starting Principal = 100, End Principal = 176.40
percent increase=43% huh???!!!!
Starting Tuition = 708.33, End Tuition = 1254.55
percent increase = 44%, huh???!!!


Before you make any more studies, you should read below. Baka ipa-print you sa dyaryo at pagtawanan kayo ng buong bayan!



Remedial Math for Coalition

-------------
Back to Numeracy


Figuring percentage change

Percentage means per hundred

So, a percentage is really just a fraction – something out of a hundred.

To get the percentage change, divide the difference between the two numbers by the starting number.

Percentage increase
Divide the change by the number you started with. An increase from 50 to 75 works like this:

25/50 = .50 = 50% increase

Percentage decrease


We do this the same way, but we call it a decrease. A decrease from 75 to 50 works like this:

25/75 = .33 = 33% decrease

Multiplying by percentage
To figure or check the percentage of something, first estimate so that you can later check to see if you’re in the ballpark.

Then it’s just multiplication.

A 30 percent increase in a number would be 1.30 (or 1.3) times the original number. For example, a 30 percent increase on $85,000 would be $110,500.

A 23 percent decrease in something would be .77 times the original number. For example, a 23 percent decrease in $85,000 would leave you with $66,450.

In some stories, the amount of the change, rather than the new total, may be most relevant. Then, using the first example above, you would say that the 30 percent increase on the $85,000 amount brought an increase of $25,500. It is never wrong to give all the numbers: first, last and the amount of change

 
At Thursday, June 02, 2005 6:05:00 PM, Anonymous mjc said...

"musta mo na lang kami kay demonyo "

Pare, hindi ba nasa inyo na sya. HE GOES BY THE NAME OF PHILIP FREAKSHOW. Tignan mo nga naman, nagpapakumusta eh kasa-kasama naman nila lagi.

 
At Thursday, June 02, 2005 7:46:00 PM, Anonymous Anonymous said...

"I tell you that this is confirmed. Congressman Lozada has resigned as President-CEO of RCBC Securities. Perhaps, he could not take what his bosses are doing. IS THERE SOMETHING COOKING AT RCBC SECURITIES WHICH HE IS OBJECTING TO? I heard from the grapevine that the P250M "donation kuno" of AY was the Congressman's idea and he did this in good faith. He wanted to have a win-win solution for this PPI problem. Among other things, perhaps, he did not like the idea of PPI now holding the release of payments to the planholders since they claim that the payment from the P250M is their own discretion. Maybe for him, the Yuchengcos went overboard."

PSE INSIDE INFO: A day or two before Yuchengco's P250M "personal donation" was announced in Manila Pen, there was a cross transaction of almost P250M worth of PLDT shares in the PSE. Guess who the broker was? None other than RCBC Securities.

 
At Thursday, June 02, 2005 8:58:00 PM, Anonymous Anonymous said...

During the Mass at St Andrew's, didn't Philip say that YGC changed the PR firm that they hired? If that is indeed true, that would explain the spate of "hate posts" that this blog is receiving.

You can tell that even though the messages are posted at different times, the tenor is the same. Their objective is to wear us down and to muddle the issue. Little do they know that they make the planholders even more angry with their lies.

 
At Thursday, June 02, 2005 9:03:00 PM, Anonymous Anonymous said...

I CHALLENGE THE PRO-REHAB GROUP: IF YOU ARE LEGITIMATE PLANHOLDERS (AND NOT YGC EMPLOYEES OR AGENTS), GIVE AN OBJECTIVE REASON WHY YOU ARE POSTING IN THIS BLOG, TO THE EXTENT THAT YOU ARE EVEN USING EXPLETIVES. YOU EVEN SOUND LIKE BRATTY CHILDREN.

WHY DON'T YOU POST IN JUST YOUR BLOG? IF YOU CANNOT EVEN ANSWER THIS QUESTION PROPERLY, THEN YOU REALLY ARE A PAID HACK.

 
At Thursday, June 02, 2005 10:08:00 PM, Anonymous Anonymous said...

Sabi naman kasi wag na pansinin yung mga comments na wala namang kakwenta-kwenta.

Tuwang-tuwa tuloy sila pag nag-rereact tayo.

Ipagdasal nalang natin sana kunin na sila ni Lord...heheh..

 
At Thursday, June 02, 2005 10:11:00 PM, Anonymous Anonymous said...

CALLING ALL RCBC TRUST DEPARTMENT STOOGES!!!!SABI NI MAM HELEN, HUWAG DAW TAYO MAGCOCOMMENT KAPAG DINIDARE TAYO NA MAGPAKITA NG MGA TRUST DOCUMENTS NATIN. KUNG HINDI, BAKA RAW MABANATAN SILA ANGEL AT NANETTE!!!! MAM NANETTE, PAANO NIYO NASUNOD SI MAM HELEN NA LUNOKIN NIYO YUNG SUSI NG CABINET KUNG SAAN NAKATAGO YUNG MGA TRUST DOCUMENTS NATIN? NINENERBIYOS NA NGA AKO E DAHIL PARANG SUSUNOD NANG UPAKAN ANG RCBC. PAANO NA ANG MGA KALANSAY SA LOOB NG MGA CABINETS???????

 
At Thursday, June 02, 2005 11:01:00 PM, Anonymous Anonymous said...

OO nga!!! Patunayan niyo rin nga na noong binili ng GPL ang shares ng Lifetime, tama ang valuation????

 
At Thursday, June 02, 2005 11:22:00 PM, Anonymous Anonymous said...

The presence of those who are obviously paid hacks of YGC only confirms the company is desperate to sway public opinion. How sad.

the more kayo mag ingay, the more nagmumukhang desperado si Alfonso 'mr. Integreedy' yuchengco.

You are definitely right, Why will they be wasting their time commenting at our site if they are so confident that fraud will not be establish. They even know every move Philip does even the color of his shirt. They would even go to the extent of looking at the mails of our e-group. Di na makatulog sa takot kayat parami ng parami and mga paid hacks nila. Thank you for giving the rag tag pep coalition so much importance.

 
At Friday, June 03, 2005 1:25:00 AM, Anonymous Anonymous said...

"KAYA PALA ANG INGAY NI PHILIP FREAKSHOW. YAN ANG TOTOONG NO-BRAINER!"

Of course Philip makes a lot of sense. Yung mga pro-rehab, kahit alam nilang panloloko ang ginagawa ng mga Yuchengco, ang hindi marunong umintindi...o ayaw lang talaga umintindi!!! Di niyo lang kaya si Philip.

We challenge anyone from the YGC camp for a one-on-one debate with Philip. What about our FAT BOY PICCIO with YGC's F_ _ L_ _ _ PADILLA??? This must be good!!! For those who listened to the interview last Wednesday at DWIZ, the two already had an encounter. Could this be a preview to the bout?

 
At Friday, June 03, 2005 1:28:00 AM, Anonymous Anonymous said...

From ABS-CBN News Interactive :

SEC clobbers PPI


VIRTUAL BUSINESS By TONY LOPEZ


Finally, the Securities and Exchange Commission (SEC) has spoken and it doesn’t like what Pacific Plans Inc. has been doing.

The government corporate watchdog is accusing PPI of bad faith in dealing with it and with the Bureau of Internal Revenue. The SEC claims PPI submitted a different set of figures with the agency and with the BIR on the value of its investment in trust fund. The amount is P6.33 billion with the BIR and P8.311 billion with the SEC.

The SEC has told the Makati Regional Trial Court hearing PPI’s petition for bankruptcy "of the unreliability of Pacific’s representations and statements." SEC wants the PPI petition junked.

The SEC action puts the PPI management under Ernesto "Sonny" Garcia, company president, and the SEC, under chair Fe Barin, on collision course.

Actually, the SEC has little recourse but chastise PPI. Its own credibility is at stake. It is supposed to supervise the operations of preneed companies.

Yet, the two biggest of them all, the College Assurance Plan and PPI, have collapsed. The two companies promised their preneed plan holders more than what they can deliver. And they simply have run out of money to make good on what they promised their plan holders.

Thousands of plan holders are angry, with CAP, with PPI, with the SEC and with the Makati RTC judge hearing the PPI bankruptcy case, Romeo Barza. PPI’s lawyer is the famous law firm of Villaraza & Angangco and Judge Barza is an alumus of that firm.

And given a company that you use to own and people, meaning the plan holders, you don’t know from Adam, you usually tread the path usually taken. It’s human nature. And it’s not even about money. Think of the possibilities of huge sums of money are involved. The bankruptcy petitioner, PPI, "is solvent and liquid. Thus, resort to rehabilitation is not necessary," the SEC told Judge Barza. "Petitioner is not entitled to the judicial relief sought considering that it did no come to court with clean hands," the SEC contended.

Pacific seeks to suspend the payment of its obligations under existing contracts with the plan holders of open-ended (traditional) educational plans.

"The paramount dream of concerned parents who have invested their hard earned money in securing their children’s education should not be put to naught," the SEC contended.

It pointed out: "Contracts are preferred by mere consent, and from the moment of their perfection, the parties are bound not only to the fulfillment of what has been expressly stipulated, but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law."

"The contracts executed between Pacific and its plan holders must be respected," the SEC insisted. "The plans cannot be unilaterally amended without the consent of the plan holders. The approval of the proposed rehabilitation plan will violate the consensual nature of contracts. Thus, Pacific’s obligations to its existing plan holders must be sustained."

Pacific has been in the preneed business for 39 years. It has 70 branch offices nationwide, and 9,052 sales agents. Since year 1966, it sold almost P44.6-billion worth of plans: P12.4-billion education plans, P7.02-billion life plans and P24.4-billion pension plans.

On December 19, 1992, Pacific stopped selling traditional plans.

In 1999 Pacific increased its authorized capital stock from P100 million to P600 million.

In a letter dated April 23, 2003, Pacific, through its counsel Villaraza & Angangco Law Offices, sought the SEC’s approval of its proposed changes in the reinstatement guidelines for the traditional plans.

The changes sought: requiring a payment in full of all overdue installments "with surcharge from due date of each installment at a rate of 18 percent per annum"; or redating "subject to the provisions of Article VI, by payment of one installment based on the prevailing rate and terms."

The SEC refused to act on the PPI petition. It said legal issues which may involve private rights like the implementation of PPI’s traditional plans (or PEPtrad) contracts are normally resolved by the courts upon filing the appropriate complaint.

In a letter dated March 29, 2004, Pacific, through its chair Helen Dee, sought the approval of the SEC to reorganize Pacific spinning off the company into two corporate entities, one for pension and memorial and the other, for education. The corresponding trust funds were to be transferred to the new corporate entities.

Thus, Lifetime Plans Inc. was born. Under the segregation, of PPI’s P5.68 billion actual reserve liabilities, P2.866 billion (50.44 percent) remained with PPI, while P2.81 billion (49.56 percent) with Lifetime. Lifetime was incorporated on August 12, 2004, with a paid-up capital of P205,137,852.00 (including premium of P105,137,852.00). The paid-up capital consisted of cash, receivables and the company’s property and equipment.

Later, the SEC dissolved Lifetime, shattering PPI’s game plan.

* * *

For comments and reaction, e-mail tonylopez@biznewsasia.com

 
At Friday, June 03, 2005 1:34:00 AM, Anonymous Anonymous said...

Attached is an article at the ABS-CBN News Interactive. It tackles RCBC's denial of a bank run. Of course, they will deny this. Who, in his right mind, will admit that his bank is having problems???


RCBC denies 'bank run' report


Rizal Commercial Banking Corp (RCBC) on Thursday debunked a newspaper report alleging that it had been hit by a mild bank run due to problems with sister company Pacific Plans Inc. (PPI).

"There is no truth to the article that appeared in [Thursday's] Daily Tribune. It is pure speculation," Pamela Quizon, RCBC disclosure department head, said in a statement to the Philippine Stock Exchange.

Broadsheet Daily Tribune on its June 2 issue said RCBC had been hit by big withdrawals amounting to at least P14 billion.

The report said one client who claimed to maintain a multi-million account in the bank told reporters he already withdrew his money and parked it somewhere else after the PPI issue exploded.

RCBC president and chief operating officer Francisco S. Magsajo also dismissed rumors being circulated via text message that RCBC is having financial problems due to withdrawals arising from the PPI controversy.

RCBC posted a net profit of P107.07 million for the first quarter to March, significantly less than its year-earlier earnings of P360.16 million, as it booked higher provisions for probable losses on loans.

PPI came under fire after it suspended payments to education plan holders citing liquidity problems. It also filed a petition for rehabilitation before the Makati Regional Trial Court.

The Securities and Exchange Commission (SEC), however, said the preneed firm doctored its books to make it appear that liquidity problems prevented it from paying its plan holders.

SEC spokesman Gerard Lukban said the company even gave conflicting figures in the audited financial statements it submitted to the Bureau of Internal Revenue (BIR) and SEC.

In its statement to the BIR, the company said its trust fund investment was worth P6.34 billion. But in its report to the SEC, it said its investment was at P8.31 billion.

 
At Friday, June 03, 2005 1:39:00 AM, Anonymous Anonymous said...

Another item from ABS-CBN News Interactive

Preneed firms’ ills crucible for independent directors


By DENNIS D. ESTOPACE, The Manila Times Reporter

Problems hounding preneed industry leaders College Assurance Plans and Pacific Plans Inc. are putting to the test the business community’s system of independent directors, according to the self-styled high priest of corporate governance in the Philippines.

Jesus Estanislao, chair of the Institute for Corporate Directors, admitted the Asian financial crisis in 1997 and the rise in tuitions are not solely to blame for the problems ailing the preneed industry.

Estanislao blamed the heads of CAP and PPI for leaving independent directors in the dark about these firms’ financial condition.

"The problem I think in the case of Pacific Plans, to be specific about it, is that the independent directors were kept in the dark," he told The Manila Times. "They [independent directors] really didn’t know what was going on, which is a no-no in corporate governance."

Independent directors have a critical role to play in running a company, Estanislao said, adding that the Code on Corporate Governance provided for this check and balance.

Independent directors could be considered activists because they are tasked to go against the tide of groupthink. That is, when everyone else in the board is moving in one direction, the independent director should put on the brakes and ask the hard questions as to the consequences of such a move.

Independent directors "are supposed not to be influenced by ‘connivance or conspiracy’ among directors and management in connection with unethical, immoral or illegal transactions, particularly in the effort to increase or bloat shareholder value," the International Academy of Management and Economics (IAME) said in a paper.

"This obsession for increasing ‘shareholder value’ has led to unethical and illegal accounting and financial practices of mega-corporations, which suffered bankruptcies," the academy said.

In the United States, Enron Corp. and WorldCom Inc. are examples. In the Philippines, PPI and CAP appear to be competing to become the poster-boy of bad governance. PPI has filed for court rehabilitation, while regulators deemed CAP’s trust fund as insufficient to settle future maturing claims.

Finance Secretary Cesar Purisima said PPI’s problems could have been avoided if the independent director was more active in the decision making process.

But how can greater participation be ensured if the right information needed to act on the situation wasn’t given, he said.

Estanislao, who admitted to knowing several of the independent directors in PPI and CAP, said these people found out "about the filing for rehabilitation only in a meeting elsewhere."

"So they had to go back to the office and check if it was really true. It was a clear indication that they really, really didn’t know—and that is a no-no," he said.

The Code crafted by the Securities and Exchange Commission defines corporate governance as "a system whereby shareholders, creditors and other stakeholders of a corporation ensure that management enhances the value of the corporation as it competes in an increasingly global marketplace."

The Code defines how sellers—the preneed firms’ executives—should interact among themselves with their buyers—in this case, plan holders who surrendered their trust to the company for promised benefits in the future.

But in withholding information from independent directors, the buyers were also put in the dark about their investments, Estanislao said. Consequently, the ills of PPI and CAP put to risk the reputation of people and businesses connected with them and what these companies represented.

"You need an independent director to say, ‘Hey there’s such a thing as reputation management’," Estanislao said. "It can be very expensive in the sense of reputation of several people, especially the reputation of Ambassador [Alfonso] Yuchengco has been put on the line."

The damage however is unlikely to end there. Apart from the hard-earned savings of plan holders that may be lost, other companies offering a similar investment proposition may take a hit—if they haven’t already.

Fearing a backlash, life insurance companies are distancing themselves from their preneed counterparts.

Top life insurance executives have begun an information blitz aimed at stemming the tide of withdrawals. They admit that potential clients have been hedging instead of buying plans.

The ripple effects of the preneed industry’s dilemma have yet to be felt throughout the business community.

Purisima, who is pushing for new regulation over the preneed sector, admitted a lot remains to be done in the area of corporate governance.

 
At Friday, June 03, 2005 1:59:00 AM, Anonymous Anonymous said...

SEC payment order sought by agents


By CAI U. ORDINARIO, The Manila Times Researcher

Agents of Lifetime Plans, Inc. (LPI) called on the Securities and Exchange Commission (SEC) to order its sister firm, Pacific Plans, Inc. (PPI), to continue the payment of their plan holders’ tuition assistance. This, after PPI decided to discontinue tuition support for LPI policy holders in protest of the SEC decision to revoke LPI’s business license and registration.

LPI agents said the SEC decision pushed PPI to stop payment of its plan holders’ tuition and placed the future of its plan holders "in the vine of uncertainty."

"With school opening just around the corner, the grim scenario awaiting plan holders is that the enrollment of their children would be left hanging in the vine of uncertainty while the commission and PPI engage in [a] ‘legal squabble’ so to speak," the members of the Coordinating Alliance for Reform and Empowerment in the Preneed Industry (CARE-PreNeed) and the Alyansang Reporma at Ugnayang Galing at Aruga sa Preneed Industry (ARUGA-PreNeed Convenor Group) said.

CARE-PreNeed and ARUGA-PreNeed Convenor Group, which are mainly composed of LPI and PPI agents who are also LPI and PPI plan holders, said the tuition support should cover the school year’s tuition.

"Many plan holders are pinning their hope for such assistance to ensure the enrollment of their children this coming school year and that such assistance should cover the whole school year and not merely the first-semester enrollment," the members said in their statement.

However, Atty. Gerard Lukban, commission secretary, told reporters that only the court has this kind of authority. In the last hearing, he said the court made it clear that the company should pay the tuition support since they should not be affected by the revocation of the registration of LPI.

Instead, Lukban said that plan holders should file a motion to the court to ask the Makati RTC to issue such an order.

"We don’t have the [legal] personality to do that. [But] the revocation of the license of LPI should not have any bearing on the tuition support," Lukban said.

"LPI shouldn’t be using this as an excuse to stop paying the tuition support," he added.

In the rehabilitation plan submitted by PPI to the court, a P341-million-worth tuition support was set aside for availing plan holders for this semester.

Ambassador Alfonso Yuchengco, owner of the Yuchengco Group of Companies, of which PPI and LPI are members, also shelled out P250 million for tuition support.

The members of the two preneed associations called on the SEC to ensure that plan holders get the same benefits, regardless of their original terms of contract.

The members stressed that in the light of the current situation, it would benefit more plan holders if they get the same amount as tuition assistance.

The two organizations called on the SEC to clarify its decision to revoke the license of LPI to assure PPI and LPI plan holders that their rights according to their contract would be upheld.

Previously, the SEC revoked the registration of LPI due to incomplete capitalization requirements. The commission decided to put its foot down on LPI and deem it a nonexistent corporation.

In reaction to the SEC’s decision, LPI’s parent company, PPI, said the company is stopping its payment of tuition assistance for this semester.

Jeanette C. Tecson, PPI spokesperson, said payment of its plan holders’ tuition might cast a doubt on the rehabilitation of the company

 
At Friday, June 03, 2005 6:42:00 AM, Anonymous Anonymous said...

Estanislao, who admitted to knowing several of the independent directors in PPI and CAP, said these people found out "about the filing for rehabilitation only in a meeting elsewhere."

Yuchenco not only fooled the ordinary plan holders but even the board of directors of Pacific. It’s only a matter of time even the paid hacks will find out they too were fooled by non payment of their services in posting in this blog site. KALIMUTAN NYO NA ANG PAG POST DITO DAHIL HINDI NAMAN KAYO BABAYARAN NI HELEN!!!!!!!!

 
At Friday, June 03, 2005 9:00:00 AM, Anonymous Anonymous said...

I CHALLENGE THE PRO-REHAB GROUP: IF YOU ARE LEGITIMATE PLANHOLDERS (AND NOT YGC EMPLOYEES OR AGENTS), GIVE AN OBJECTIVE REASON WHY YOU ARE POSTING IN THIS BLOG, TO THE EXTENT THAT YOU ARE EVEN USING EXPLETIVES. YOU EVEN SOUND LIKE BRATTY CHILDREN.

First,I am a legitimate pepstar(fixed-value)planholder. Since we have been unwillingly incorporated in this fight, I will be defending our rights as the majority of the planholders in this group.

You bring us into your fight when your basic computations to prove mismanagement of funds is full of error. Look at your position paper, no taxes!!. And you want the whole PPI(LPI) to suffer because of your illogical reasoning??!

I am not the poster who wrote expletives. I will continue to defend our rights to a coalition whose "cries for injustice" are so full of illogical statements. I will continue doing this until I am certain that fixed value planholders will not be affected by your devious plans.

Let us continue our exchange of reasonings as mentioned in your article:

"a) We have noticed that whenever we post documents or facts, the apologists of YGC never join in on the exchange of comments. We challenge the apologists now to explain away our pet cat's investment strategy;"

I presented a refute on your logic that you can find an investment vehicle that can match the hike of tuition (look at your lopez report) . What is your answer and please do not evade this issue!!

With this alone, it destroys your theory of fund mismanagement. If you cannot even find a fund that matches tuition fee hikes, how can you even cry about fund mismanagement?

Also, how you can expect symphaty from fixed value planholders(400,000) who are only getting 9+% returns from the tradition planholders who are crying foul because you are not getting your exorbitant returns?

 
At Friday, June 03, 2005 9:28:00 AM, Blogger Dora said...

To the allegedly legitimate PEPSTAR planholder who wishes to remain anonymous,

Thank you very much indeed for your post. It reveals so many things.

And in case you haven't noticed, it is the YGC that has caused this impasse, first by refusing to be transparent to the planholders; and second by not complying with SEC regulations when they incorporated Lifetime. For where in the world have you ever heard of "conditional existence" for a corporation? Answer that, will you?

You talk about investment vehicles.
Well, we have told YGC that we are reasonable people and if they can prove to us that the fund was not mismanaged, then we can negotiate for fair terms on both sides. Not only have they refused to be transparent, but they counter it with lies and deception and PR stunts. Instead of putting all that time and energy into PR, why don't they just face the planholders? Heck, they even refused to hold an open forum.

Lastly, they are in the insurance business, are they not? If you provide fire insurance, do you not take into account all the possible causes of fire? Take for example the 9/11 terrorist attack, wouldn't you say that was an extreme case? Do you think insurers refused to pay the coverage for the buildings that were destroyed in 2001?

The risks are for the account of the insurer, not the planholders, especially since the Education Act of 1982 already provided for such. And don't give me that baloney about the tuition cap. If you read that act, you would know very well that the cap will eventually be removed.

So don't blame us, blame the YUCHENGCOS. And when you answer, please identify yourself since you are (allegedly) a legitimate planholder anyway.

 
At Friday, June 03, 2005 9:52:00 AM, Anonymous an ex-client of "that" PR Group said...

"During the Mass at St Andrew's, didn't Philip say that YGC changed the PR firm that they hired? If that is indeed true, that would explain the spate of "hate posts" that this blog is receiving."

Don't worry, palpak yung PR group na yun.

 
At Friday, June 03, 2005 10:26:00 AM, Anonymous KIT said...

To Dora,

In response to:

"And in case you haven't noticed, it is the YGC that has caused this impasse, first by refusing to be transparent to the planholders; and second by not complying with SEC regulations when they incorporated Lifetime. For where in the world have you ever heard of "conditional existence" for a corporation? Answer that, will you?"

I was looking at all the previous posts, and the Coalition's directions is to make PPI whole again. This was only hastened by SEC's revocation of the "Certificate of Incorporation." So, whether or not SEC made this ruling, this was the intent and goal of the Coalition. And now, we are in this situation. All planholders of LPI and PPI are now affected, unlike before where traditional planholders are isolated.

"Conditional Existence". How granted this? Wasn't it SEC? Then go after SEC.


"You talk about investment vehicles.
Well, we have told YGC that we are reasonable people and if they can prove to us that the fund was not mismanaged, then we can negotiate for fair terms on both sides. Not only have they refused to be transparent, but they counter it with lies and deception and PR stunts. Instead of putting all that time and energy into PR, why don't they just face the planholders? Heck, they even refused to hold an open forum."

Isn't it any situation, that someone creates first a valid allegation to a party before the party tries to answer it. If your logic doesn't even pass by an ordinary person, why would a company even try to answer it? I saw so many newspaper articles showing that investments cannot keep up with tuition fee hikes. What does the coalition do instead of coming with a valid argument? Cry to the world that the journalist is paid. Where are your facts???!!!

So, in this case, create a valid case for fund mismanagement and then hurl it to PPI. It has been months and no valid fund mismanagement argument has been shown by coalition. I just started reading your blog a few days ago and I can easily see the wrong logic in your computations. That is why I think journalists are taking sides with PPI because of this. All you people do is cry "paid" instead of making logical arguments. Is it because you could not come up with a valid argument and just cry foul?paid?pr? Who is the one evading issues/arguments?

"Lastly, they are in the insurance business, are they not? If you provide fire insurance, do you not take into account all the possible causes of fire? Take for example the 9/11 terrorist attack, wouldn't you say that was an extreme case? Do you think insurers refused to pay the coverage for the buildings that were destroyed in 2001?"

Unfortunately, pre-need is not insurance. In fact, it is not regulated by the Insurance Commision. It is regulated now by SEC. Pre-need is treated more as an investment. When I got my fixed value plan, I didn't treat it as insurance but rather as an investment.

So, here I am still waiting for your valid arguments on fund mismanagement. Because without this, you won't get my sympathy.

 
At Friday, June 03, 2005 10:49:00 AM, Anonymous Anonymous said...

Kung sakali mang magkaroon ng settlement ang PPI with planholders led by the Coalition, lahat ng miembro nito ay mabibiyayaan. Ang hindi mabibiyayaan ay ang mga miembro ng CARE ay yung mga sumasangayon sa rehab. Magaantay sila hangang 2010. Ok lang yun siguro sa kanila. Kawawa naman sila. Nagpapaloko kay Helen Dee.

 
At Friday, June 03, 2005 10:56:00 AM, Anonymous Anonymous said...

PEP's fight is not with Lifetime fixed plan holders. The YGC group is only using that excuse to gather groups to rally for the cause. If they can use deregulation and the asean finacial crisis as an excuse not to honor their contract to the traditional planholders... they can always use another coup or a tsunami for that matter not to pay you guys in the future. The basic fact is that you entered a contract, you have to honor it. That is how business is being done. If every businesses in the country used the Asean Crisis as an excuse not to pay their loans or settle their obligations eh di bagsak na lahat ng banko. Even the government cant make that as an excuse not to pay all their loans. GMA can't just tell the IMF sorry dahil nagdevaluate ang peso di namin kayong kayang bayaran. We'll just pay you the peso equivalent noong 1990 or else di ko mapapakain ang buong Pilipinas. That is why the gov't is raising taxes here and there. Same goes with the YGC... if you feel you are losing money in one product, you have to find ways to cover up the loses by making your other products profitable. That is how you do business and not turn your backs on those who have helped you make money in the first place. Bottom line is... Honor your word and Trust will follow. You break you word, you break your honor and that is how you break our Trust!!!

 
At Friday, June 03, 2005 11:46:00 AM, Anonymous Anonymous said...

"We challenge anyone from the YGC camp for a one-on-one debate with Philip"

Ilabas nyo sa korte mga sinasabi niyo. Dun dapat!

 
At Friday, June 03, 2005 11:55:00 AM, Anonymous Anonymous said...

so what's wrong w/ fighting for ur rights?

and who are these people so good in math? palnholders ba kayo? you think you are so good kaya nyong lokohin lahat?!!!

cguro, dati na kayong nakinabang coz ak na sa inyo ung rehab?

 
At Friday, June 03, 2005 11:55:00 AM, Anonymous Anonymous said...

To Kit,

I commiserate with your situation, although I do not know if you will feel the same with mine. I have two availing trad plans and one non-availing trad plan with Pacific, plus two fixed value plans transferred to Lifetime. I am in all three camps at the same time. The convolutions in this drama have made me feel like I don't know if I am coming or going.

I am willing to grant that the issue of fund mismanagement is one that is wide open to interpretation. Both sides would be able present reams and reams of data, all of which are history but, at the end of the day, is just that, history.

What is more important to me, and I am sure also to most planholders caught in this mess, is: what do we do to move forward from here?

That "here" has changed dramatically since this whole fiasco blew up in our faces on April 14. Let me retrace the steps for you.

First, PPI unleashed their rehab plan, without notice to any planholder. Then they dropped the bomb on us, with their letter about their rehab plan and their "tuition support" for less than the guaranteed amount.

I, for one, bit the bullet like never before and hoped and prayed for the best. Within a week of that bomb, news of the PEP Coalition forming came and created a wave of support from me and others like me.

Days of frenzied press releases from both camps ensued, resulting finally in the old man AY himself coming out with his P250 million. So, the "here" of April 14 moved forward to some relief for guys like me.

In the midst of the release of this second tranche, the SEC revoked Lifetime's incorporation. In apparent retaliation, PPI suspended the second tranche, and from what I have read elsewhere, even payments from the first tranche. Now, the "here" is where? It looks like limbo for everyone, at the moment.

As an earlier blogger commented, the coalition has been trying to begin negotiations with the people at PPI who have brought this all about. Up to today, those efforts have been rebuffed. And rebuffed with a vengeance! No way will they come to any negotiating table! From all indications, not now and not ever!

Now, tell me. How do we move forward from this particular "here" if the other party, who started this whole fiasco, does not even want to talk to the parties they should have consulted with in the first place, we the planholders of both PPI and LPI? Nover mind all these discussions about fund management and ARLs and spin-off and whatever. Please let me know if you have any ideas how we, all planholders of either trad or fixed value, can get this monster of a company to talk to us in a decent manner. Let's not get caught in any argument over anything else. How do we all move forward from this "here"? I am dying to hear your ideas.

 
At Friday, June 03, 2005 12:16:00 PM, Anonymous siddartha said...

People who want a cure,
provided they can have it without pain,
are like those who favor progress,
provided they can have it without change.

No to rehab! No to fraud!

 
At Friday, June 03, 2005 12:52:00 PM, Anonymous Anonymous said...

" CALLING ALL RCBC TRUST DEPARTMENT STOOGES!!!!SABI NI MAM HELEN, HUWAG DAW TAYO MAGCOCOMMENT KAPAG DINIDARE TAYO NA MAGPAKITA NG MGA TRUST DOCUMENTS NATIN. KUNG HINDI, BAKA RAW MABANATAN SILA ANGEL AT NANETTE!!!! MAM NANETTE, PAANO NIYO NASUNOD SI MAM HELEN NA LUNOKIN NIYO YUNG SUSI NG CABINET KUNG SAAN NAKATAGO YUNG MGA TRUST DOCUMENTS NATIN? NINENERBIYOS NA NGA AKO E DAHIL PARANG SUSUNOD NANG UPAKAN ANG RCBC. PAANO NA ANG MGA KALANSAY SA LOOB NG MGA CABINETS???????"

RCBC trust fund officers, tameme kayong lahat. Bakit? Para namang di niyo binabasa itong blogsite. E wala nga kayong gawin ngayon kundi subaybayan ang blogsite na ito para malaman niyo kung tuloy pa rin ang panggugulo dito ng mga ahente niyo. Saka isa pa, huwag naman kayong masyadong hilong talilong kakawitch hunt sa amin kung sino ang mga di sumasangayon sa mga kawalangyaan niyo. Nakakademoralize yon e.

 
At Friday, June 03, 2005 12:56:00 PM, Anonymous Anonymous said...

Just a warning.....the coalition office has a pldt phone right? Tandaan niyo board member si Helen Dee doon. Baka lahat ng phone discussions niyo nasusubaybayan. Pati na yung phones ng mga coalition heads, may posibilidad na ma tap. Ingat lang tayo.

 
At Friday, June 03, 2005 1:36:00 PM, Anonymous Anonymous said...

"Just a warning.....the coalition office has a pldt phone right? Tandaan niyo board member si Helen Dee doon. Baka lahat ng phone discussions niyo nasusubaybayan. Pati na yung phones ng mga coalition heads, may posibilidad na ma tap. Ingat lang tayo."

PARANOID!

 
At Friday, June 03, 2005 3:11:00 PM, Anonymous Anonymous said...

sa lahat ng mga anak ni YG....si Helen ang kampon ni taning....

 
At Friday, June 03, 2005 3:28:00 PM, Anonymous Anonymous said...

Mr.blogmaster, pakidelete thise with expletives.

let us maintain the level of professionalism here.

 
At Friday, June 03, 2005 4:14:00 PM, Anonymous Anonymous said...

First, RCBC monitors withdrawals made by their own officers. Most likely naka tap na ang phones ng mga employees sa PPI/LPI at sa RCBC. Next, they will probably monitor e-mail and internet connections. hahaha. Even directors of YGC group have pulled out their deposits from RCBC. Yung iba namang employees, para di masabi na nag pull-out, linipat sa t-bills and the like ang pera.

 
At Friday, June 03, 2005 4:34:00 PM, Anonymous Anonymous said...

"Most likely naka tap na ang phones ng mga employees sa PPI/LPI at sa RCBC. Next, they will probably monitor e-mail and internet connections. "

PARANOID

 
At Friday, June 03, 2005 4:54:00 PM, Anonymous KIT said...

In response to:

How do we all move forward from this "here"?

Unfortunately, this site/coalition has been infiltrated by non-planholders whose comments indicate that they just want to bring down YGC, nothing else. Where they are coming from, I have no idea.

I have some constructive suggestions but will postpone posting it until atmosphere is better.

 
At Friday, June 03, 2005 5:50:00 PM, Anonymous Anonymous said...

"I have some constructive suggestions but will postpone posting it until atmosphere is better."

now is better than later, who knows, maybe your suggestions are what's needed to calm things down here and bring things down to a more rational level?

 
At Friday, June 03, 2005 8:39:00 PM, Anonymous Anonymous said...

Ah the bow-wows are really back with a vengeance and then some.... incredibly spending a lot of time analyzing everything being put up in this site.

Well let me just say the 14B is very very real! 6B in month 1 and now 14B in month 2.

BSP is helping them at this point -shades of PCIBEquitable then. Then again its only the 2nd month. Give it another month then it will be as bad and the worse part, it only gets worse.

Aside from having their license
revoked and figuring out what will "click" legally, they are alsonot selling much product from Grepa, Malayan and other firms forming part of YGC.

People are not only pulling money out of accounts, they are telling their friends about it. Suppliers are being told to transfer their accounts else be left out of bidding for corporate supplies.

Every wonder why other major banks that are profitable and part of top 5 are making more than 200M every quarter vs. RCBC that is making less than that now? its because they are really mismanaged and the Yuchengco's are just bad managers - that's the bottom line.

Want to see Dewey Dee circa 2005-2006; wait another 2-3 months and its going to snowball bigtime.....

 
At Friday, June 03, 2005 11:17:00 PM, Anonymous vagabond said...

Trust was the bedrock upon which the Yuchengco empire was built. The Yuchengco's themselves in their greed for profit eroded that bedrock by going back on their word. So now comes the whirlwind that will destroy their empire. God help us all.

 
At Saturday, June 04, 2005 12:05:00 AM, Anonymous Anonymous said...

To the fixed value planholder who posted this:

"I will continue to defend our rights to a coalition whose "cries for injustice" are so full of illogical statements. I will continue doing this until I am certain that fixed value planholders will not be affected by your devious plans."

--
How's that again?!!! Devious plans?!!! It's the company that sold you your fixed value plan who has got devious plans and not the coalition...Maybe it's high time you form your own group...Wala kayong mapipiga kung kakalabanin ninyo ang Coalition ng PEPTrad...Hindi Coalition ang may kasalanan kung bakit iniipit ng Pacific o Lifetime ang pera ninyo...Lifetime o Pacific ang may hawak sa pera ninyo...

BTW, aside from having PEPTrad plans, I also have fixed value plans just like you. But unlike you I think I have a fairly well balanced mind to know where to point the gun...

 
At Saturday, June 04, 2005 1:42:00 AM, Anonymous Anonymous said...

Investors declare war on corporate fraud


By CAI U. ORDINARIO, The Manila Times Researcher

Preneed plan holders, war veterans and club shareholders banded together on Thursday to declare war on "corporate fraud and terrorism."

At a press conference, representatives of the Parents Enabling Parents Coalition (PEPC), plan holders of College Assurance Plans (CAP), Philippine Veterans Legion (PVL) and shareholders of Universal Leisure Corp. lashed out at government’s failure to act on their concerns with speed.

"While our government will not act, we promise you we are going to fight for every defrauded public who cannot fight," Philip Piccio, president of PEPC, a group of Pacific Plan Inc. plan holders, said.

"We are declaring war on corporate fraud," he added.

The group urged the government to take a more proactive stance on recent cases of corporate malfeasance.

"We are appealing the full force of the law. There should be no government laxity in any of our cases," Terrence Ong, a Universal Leisure shareholder, said.

The lawyer Maricel Lopez said the group is also opposing Pacific Plan’s rehabilitation petition.

Plan holders of CAP and Pacific Plans complained that the two preneed firms mismanaged their money and invested them in nonprofitable investments.

CAP plan holders already filed a class suit in April. Plan holders of Pacific Plans, meanwhile, are mulling syndicated fraud charges against the firm.

At the same briefing, World War II veterans complained of harassment by Philippine Veterans Bank representatives. A veteran said security personnel surrounded him during a stockholders’ meeting, allegedly to prevent him from asking questions about the bank’s dividend declaration.

For their part, shareholders of Universal Leisure are in the final stages of a suit they filed against the Consunji-led firm.

The company promised shareholders that by paying P1 million, they would get exclusive access to the firm’s two private golf courses, pool, business center and restaurant.

The exclusive facilities, however, are nowhere in sight after eight years, shareholders claim.

They already won the case at a regional trial court but the Consunji group elevated it to the Court of Appeals.

The shareholders will have a hearing at the appellate court on June 21 while Pacific Plans’ rehabilitation hearing is scheduled on June 22.

 
At Saturday, June 04, 2005 2:41:00 AM, Anonymous Anonymous said...

sa mga negosyanteng magnanakaw...
makukulong din kayo balang araw...
kung hindi man kayo makulong eh makakasama nyo naman si taning!!!

 
At Saturday, June 04, 2005 3:15:00 AM, Anonymous Anonymous said...

Angara accused of blocking inquiry on pre-need firms

First posted 05:27am (Mla time) June 03, 2005
By Alcuin Papa, TJ Burgonio
Inquirer News Service


DISENFRANCHISED plan holders of the Pacific Plans Inc. (PPI) and College Assurance Plan (CAP) Thursday accused Senator Edgardo Angara of supporting and abetting corporate fraud by blocking the Senate investigation of the troubled pre-need industry.
Philip Piccio, president of the Parents Enabling Parents Coalition (PEP Coalition), said he and other members of the group were surprised during Tuesday's Senate hearing when Angara, chair of the committee on banks, decided to close the probe "without hearing us out."

"It seems Senator Angara is supporting or abetting corporate fraud by silencing us plan holders and blocking the Senate investigations into the problems of the pre-need industry," Piccio told reporters Thursday.

Maricel Lopez, lawyer for CAP plan holders, agreed with Piccio. "I was totally shocked by what happened last Tuesday," she said. Lopez added that it was time for the legislators to craft better laws to protect the public from "corporate terrorists" who victimize unsuspecting investors.

Angara's office, however, quickly issued a statement, saying a "hearing is being calendared by the committee and the agenda is to give the plan holders a chance to tell what they want to tell SEC and the Senate."

"It will be their forum and the airing of their complaints will be the sole agenda of the hearing," Angara said in a statement.

In the Senate, the minority bloc is locked in a squabble as to which committee should handle the inquiry into the operations of the pre-need industry.

Senator Sergio Osmeña III took the floor late Wednesday afternoon and moved that the committees on trade and social justice conduct the inquiry because the committee on banks had been sitting on the issue.

Osmeña said he had written Angara requesting that he conduct hearings on the troubles confronting CAP and PPI, but the committee chair indicated that he would focus first on the pre-need code.

"I would like to listen to the plan holders who have been dying to voice their opinions about what happened to them. Whether they're right or wrong. This is a democratic country. This is their Senate," Osmeña said.

Osmeña's scathing comments on the floor triggered a lengthy, heated debate with Angara, who rebuffed the move to exclude his committee from the inquiry.

"If the gentleman wants his committee on justice to conduct a hearing on CAP, he can do so. But that is at his risk," he retorted.

 
At Saturday, June 04, 2005 9:45:00 AM, Anonymous Anonymous said...

Pacific Education Plan
Nangako ng kinabukasan

Binenta sa kapwa Pilipino
ni Ambassador Yuchengco

Binayaran namin ng limang taon
Ngunit ang pangako bukas ay tinatalikuran ngayon

Ang aming perang inihulog
Kasamang nadurog

Na YUCHENGCO kami
Ng may-ari ng RCBC
Si Alfonso Yuchengco
at Helen Yuchengco Dee

 
At Saturday, June 04, 2005 9:46:00 AM, Anonymous Anonymous said...

"In the case of RCBC, they did not get a loan from the BSP because it would be an outright admittance of a bank run. They got a loan from a foreign bank thereby making the transaction more discrete."

BINGO!
YOU ARE SO CORRECT!

 
At Saturday, June 04, 2005 9:51:00 AM, Anonymous Anonymous said...

To the person who said


I was looking at all the previous posts, and the Coalition's directions is to make PPI whole again. This was only hastened by SEC's revocation of the "Certificate of Incorporation." So, whether or not SEC made this ruling, this was the intent and goal of the Coalition. And now, we are in this situation. All planholders of LPI and PPI are now affected, unlike before where traditional planholders are isolated.

Huh are you for real. Basing on what you wrote your just another ygc stooge trying to protect your boss. I have both the trad and fix value plans. All were bought under Pacific with no distinction from the very beginning that trust funds from one product will be separated to the other. Pacific without informing me suddenly transferred my fix value plans except when it was already transferred. I bought both plans with the assurance that by the time they mature I shall be getting whatever was promised in the contract. I would like to bring up the following points for the ygc hack to answer.

1. Pacific is claiming deregulation as one of the cause – The early 1980 education act already points to eventual deregulation in the future with a cap of 10% at that time.
2. Regarding asian crisis – Can we planholders both the trad and fix value plans use the asian crisis to miss or stop payment without penalty or forfeiture . Did they ever gave us any leeway in payment knowing so well of this situation affecting the consumers
3. After both excuses above were soundly rebuke now your claiming no financial instrument could give a return of above 8-10% net. What do you call those instrument offered by big banks in the mid to late 90’s offering double your money in 5 years net of everything. Certainly those banks lost money for that particular product but did any of them use this excuse for not honoring their obligation? What they did was use profits from other products to cover their losses here. If you accept the logic of Pacific then what will stop all the rest of the companies (not necessarily pre-need alone) using the same argument that since no instrument can make as much as what was quoted in the contract from using the same excuse as non-compliance. You claim you’re a plan holder so when maturity date comes and suddenly Lifetime uses this argument you will readily accept their offer of reduce payment?
4. Any person or company who has nothing to hide will be the first one to ask for an independent investigation to clear ones name.
5. What makes you think that without the trad plans everything in Lifetime is safe. Memorial plans also has no fix value and it has also been phase out recently. What will stop them from doing the same thing for the said plan holders?
6. SEC never told Lifetime to stop payment of their obligation to maturing plans. The order was for the banks handling the trust account to make sure that any withdrawal shall be for the purpose only of servicing plan holders claim. If Lifetime refuse to pay our claims then it is they to blame and not any other parties fault. So stop blaming the pep coalition na dinadamay kayo, its more of gusto ni yuchengco idamay kayo.
7. SEC revoke the permit of Lifetime – What has this got to do with Pacific suddenly refusing to give tuition support? Lifetime was sold to different companies so it is of different entity now. So how come the suspension of one company will affect the other? This is what you call blackmail.

I wonder what excuse will the spin doctors use next?

 
At Saturday, June 04, 2005 9:52:00 AM, Anonymous Anonymous said...

"So what do you call a company that would not deliver what its contract state?"

Eh anong tawag mo rin sa CAP, Platinum, Prudential, TPG and PET?

In response to the above...

What do I care about those other companies? I did not buy from them. I bought it from you.
In other words, kasi may manloloko, manloloko ka na rin? What a reason to exist!

 
At Saturday, June 04, 2005 9:56:00 AM, Anonymous Anonymous said...

So, here I am still waiting for your valid arguments on fund mismanagement. Because without this, you won't get my sympathy.

A cockroach has more brains than you since they know when to run when threatened.

 
At Saturday, June 04, 2005 10:03:00 AM, Anonymous Anonymous said...

Pacific Education Plan
Nangako ng kinabukasan

Binenta sa kapwa Pilipino
ni Ambassador Yuchengco

Binayaran namin ng limang taon
Ngunit ang pangako bukas ay tinatalikuran ngayon

Ang aming perang inihulog
Kasamang nadurog

Na YUCHENGCO kami
Ng may-ari ng RCBC
Si Alfonso Yuchengco
at Helen Yuchengco Dee

 
At Saturday, June 04, 2005 11:23:00 AM, Anonymous Anonymous said...

Si Helen Yuchengco Dee? Babae by yun? Di ba lalake iyon? HAHAHAHAHAHAHA

 
At Sunday, June 05, 2005 1:27:00 AM, Anonymous vagabond said...

Everybody can talk about legalese and financial gobbledygook but it will still amount to BS. When you come down to basics, it will still come down to the basic issue of TRUST. Not the condom, the value of TRUST.

When you go to Jolibee, or McDonald’s and you give them your money, they give you a burger or a value meal, or whatever it is you bought and paid for. It is easy to see what your money’s worth.

When you go to Pacific Plans or Malayan insurance or RCBC, you give your money and all they give you is a promise that at some future date, they will give you such and such amount in return for the X amount you will give to them at this given date. In the case of Pacific Plans traditional planholders, the promise was for payment of school fees whatever they were at the time of availment.

You don’t really get anything except a PROMISE from the provider. That is the nature of PRE-NEED, INSURANCE, and BANKING. It is anchored on TRUST.

But now, it would appear that Pacific Plans, and whatever incarnation it is in now, chooses to renege on its commitment to its clients. This, after its clients had shelled out good money for its many sweet promises..

So what does this make of Pacific Plans, and the guys who backed it up? The guys who promised to fulfill the promises its agents made that the kids would go to school no matter what?

It would appear that the promises were empty, that the assurances that the YUCHENGCO name guaranteed fulfillment of the contract were not reliable. That indeed, The YUCHENGCO name was not worth the paper it was written on!

Whatever financial hurdy gurdy or legal gobbledygook they may invoke, the guys behind Pacific Plans will still have to go back to the basic question: They promised us that they would send our kids to school no matter what..

WE KEPT OUR PART OF THE BARGAIN, THEY SHOULD KEEP UP TO THEIRS. IT IS AS SIMPLE AS THAT.

Sunday, June 05, 2005 1:25:29 AM

 
At Sunday, June 05, 2005 1:52:00 AM, Anonymous Anonymous said...

Going back to basics- we bought the educational plan from Pacific Plans Inc. because we TRUSTED the Yuchengco name.

Ever since before, our insurance was Malayan Insurance. It paid all our insurance needs on our damage cars-FAST. Thereby giving us more reasons to TRUST them.

Because of the TRUST, we also extended it all under the Yuchengco Group of Companies, including RCBC and others.
Instead of investing an educational plan with Philamlife, CAP, or others, I placed it all to PPI! Because I tought we could rely on the Yuchengco name.

We have a contract- legal and binding. I was promised that I will have no more worries when it comes to the tuition fees of my children- no matter how much the tuition fee will increase- they claim they will shoulder it.

But after this PPI fiasco, I dare say- I won't be stupid enough to keep my faith with them. I had withdrawn all my deposits with RCBC and had convince my relatives and friends to do the same. I have not renewed all my insurance at Malayan, shifted it to other insurance. I also told my son not to pursue his engineering course at Mapua (Malayan University).

This I do it on my own.

ENOUGH BLAH-BLAHS!

 
At Sunday, June 05, 2005 10:31:00 AM, Anonymous Anonymous said...

The Yuchengco brood led by Helem Dee made a stupid mistake by seeking to isolate the open ended plan from the money making programs of PPI. This led to the creation of Lifetime Plans. Now they are virtually in a quicksand. The more they wiggle out, the deeper they sink. This is a clear case of one mistake leading to another.The best thing they can do is to go back to the original mistake and correct it.

Right now, there seems no way to restore the public's respect for the name "Yuchengco". It is no longer an endearing name. It is a name associated with fraudulent action. Who will suffer? Pity the grandchildren. They will be the ones to face up to folly of Helen Dee, et.al.

 
At Sunday, June 05, 2005 2:08:00 PM, Anonymous Anonymous said...

"But after this PPI fiasco, I dare say- I won't be stupid enough to keep my faith with them. I had withdrawn all my deposits with RCBC and had convince my relatives and friends to do the same. I have not renewed all my insurance at Malayan, shifted it to other insurance. I also told my son not to pursue his engineering course at Mapua (Malayan University).

This I do it on my own.

ENOUGH BLAH-BLAHS!"


Right on, Man! That's the way to do it!

 
At Sunday, June 05, 2005 6:56:00 PM, Anonymous Anonymous said...

No matter what the paid hacks say, without a doubt PPI is at fault in not making good with their COMMITMENT to pay the tuition of our children. With that fact established, what do we planholders do now? Do we wait for the courts cases to prosper which might take a decade with the high caliber lawyers of YGC. Or do we get into a compromise with them? I dont know if this is acceptable to all: PPI pays NOW the amount they promised to pay in 2010. Will that suffice? It will take a long time for court cases to prosper. The marcos case is a classic example as it has been close to 20 years already! And nobody in their family have been imprisoned. I dont think we can sustain a protracted court battle. I think we will have to deal with this reality. It is useless to keep on establishing PPI's fault because everyone, even our dog, know they committed fraud by not honoring their commitments and manuevering to transfer to LIFETIME. But as planholders what do we do NOW? Of course we want the cheats punished and jailed, but the reality of our situation is JUSTICE in this country moves so slowly.

 
At Sunday, June 05, 2005 11:51:00 PM, Anonymous Anonymous said...

I agree with our courts being slow despite having a creed "JUSTICE DELAYED IS JUSTICE DENIED".

You don't have to delve into how un-prudent PPI was in investing the trust funds (Napocor Zero Bonds). Just the fact that they would not carry through their obligations to plan holders is itself a crime (Law of Obligations and Contracts).

Using the "time-line" method of analysis, it is clear that they did hatch the Lifetime Plans to undermine the whole PPI liquidity issue. Stripping away money making policies and leaving the open-ended policies at PPI.

They turn around and accuse the planholders of greed despite the fact that it was they who had defaulted. Take note, they had never apologized.

Sure they have caboodle of monies stashed elsewhere and can use it to defend themselves i.e. best lawyers to defend the indefensible plus the envelope mentality of some media people.

They are extremely wise in knowing that it is relatively cheaper to pay off politicians, corrupt judges, etc. than to live up to their obligations to the planholders.

At the end of the day, they will end up with more profits, but at what price? The Yuchengco name is no longer trusted and this they will pass on to their generations to come.

for us planholders, it is indeed a heavy burden to bear. Our childrens' once bright future is placed in peril. Our trust had been betrayed. But we can't just sit and wallow in self pity.

That's why I focus my energy in what can be salvaged or act upon for now. simply put- I will just stop doing business with them or Boycott Yuchengco Group.

By the way, I have also stopped honoring RCBC checks paid to my company. This will force my customers to issue other checks and probably rethink about their accounts at RCBC.

 
At Monday, June 06, 2005 11:01:00 AM, Anonymous JAM said...

To the poster above:

That's the way to go.

Everyone: do whatever you can in your personal effort to do what you can do against the Yuchengcos. e.g. don't patronize any of the yuchengcos businesses. Tell friends and relatives about it. Don't honor any of their checks.

There's power in all our efforts put together.

Use PARENTS' POWER! DON'T ENROLL YOUR CHILDREN IN MAPUA. DON'T EVEN INQUIRE THERE.

THAT FAMILY CANNOT BE TRUSTED ANYMORE. THEY HURT PEOPLE! THEY ROB PEOPLE OF THEIR HARD-EARNED INCOME. SOME EVEN WORK FOR THEM (THE YUCHENGCOS).

 
At Monday, June 06, 2005 3:40:00 PM, Anonymous Anonymous said...

TO ALL COMPETITORS OF YGC:

Keep it up. Tama yang ginagawa nyo. Suportahan ang coalition.

 
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