Neal Cruz

As I See It : Happy days here again for solons, local officials

Neal Cruz opinion@inquirer.com.ph
Inquirer News Service

WHY are there so many governors and mayors in Metro Manila? Somebody asked this question at a gathering last Saturday. Shouldn't they be in their hometowns and provinces attending to the needs of their constituents?

"They were summoned here to pledge support to President Macapagal-Arroyo," was the answer.

"Why are they so eager to go to Malacañang?" was the next question.

"Because of the pabaon that each of them gets."

Indeed, proceeds from the expanded VAT have not yet been collected but they are already being spent and distributed by Malacañang. And because of the impending impeachment complaint against GMA (Gloria Macapagal-Arroyo), happy days are here again for the congressmen and, soon, for the senators. Administration congressmen were seen trooping to the Palace to pledge support for GMA and when they went out, they were seen to be very happy.

Suddenly, the budget department has also been ordered to release pork barrel allocations to congressmen. Not so long ago, it was very hard to get fund releases for projects because the budget secretary had a hard time scraping up enough funds. Now that Emilia Boncodin is no longer the budget secretary, the department is very generous.

"If the stalemate over the presidency continues some more, the government will go bankrupt," somebody quipped.

Indeed, as some of the Hyatt 10 Cabinet members who resigned and asked GMA to do the same said, all the priorities of government are to ensure her political survival; governance takes the back seat.

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Speaking of the Hyatt 10, Senate President Franklin Drilon told newsmen that there were originally 17 Cabinet members who had decided to resign but seven balked at asking the President to step down. So they did not join the first 10. But they have submitted or are about to submit resignations.

This account of Drilon confirmed the statement of former presidential adviser on the peace process Teresita Deles that more resignations of Cabinet members will follow.

Drilon also denied that he went to Hong Kong to talk to Vice President Noli de Castro. "I went there to talk to the President," he said.

What did they talk about?

"Briefly, what reforms she has to do to save her administration. I told her, 'Mrs. President, the perception of the public is that your husband is involved in governance, not only in appointments, [but] also in government contracts. This is not good. Do something about it because this erodes your ability to govern.'"

Drilon also said that the President is making too many compromises. "When you want to act in order to survive," he said, "you are liable to make too many compromises. Precisely, because of these compromises that you do in order to survive, that makes it difficult for you to govern. In fact, look at what is happening now. Former President Ramos is there. The projection is that he is the one running this government."

Drilon denied that he wanted to be vice president and executive secretary in a Noli de Castro presidency. "I have been there." He said he has been in the Cabinet for eight years and has been through all the positions. "I am not interested in going back to the Cabinet. Mas maganda ang buhay namin dito sa Senado." (Life is better in the Senate.)

* * *

Tomorrow will be the moment of truth for the Equitable-PCI Bank when its stockholders meet to elect its new board of directors. The fight for control of the bank between the Go family, founders of Equitable and the SSS-GSIS group is very bitter and has reached the courts, the Securities and Exchange Commission and the Bangko Sentral, which finally disqualified Roberto R. Romulo, a Go ally, from being one of the independent directors of the bank.

Romulo blamed "the continuing effort of Banco de Oro and its owners (the family of Henry Sy) to gain control of EPCIB." BDO officials have admitted that they are keen on merging with EPCIB. And that's where the trouble starts.

The EPCIB has an anti-competitor provision in its by-laws that prevents the entry of BDO officials into its board. It is now a settled rule in the private sector that a private corporation can reject the nomination to its board of persons representing the interests of competitors. "BDO now wants to enter the board through the back door," with the help of the Social Security System and the Government Service Insurance System, said Romulo. The SSS and GSIS have a combined 40 percent of EPCIB shares (SSS 29 percent, GSIS 11 percent) which entitle them to occupy a sufficient number of board seats to control the bank. The Go family has only 25 percent, but it controls the bank's management.

However, the investment guidelines of our investment funds (SSS and GSIS) expressly prohibit them from taking over companies they invest in. Moreover, SSS and GSIS officials are just temporary trustees of their members, who are the true owners of the funds, Romulo said.

In December 2003, BDO tried to buy the SSS-GSIS shares but it was foiled. This triggered a Senate investigation because there was no bidding conducted for the sale of the shareholdings, contrary to the rules on equity divestment of government-owned assets.

Worse, the transaction would have meant a loss of P8.067 billion to SSS members. The SSS and GSIS acquired the EPCIB shares at P94 per share during the incumbency of President Estrada. The SSS agreed to sell its shares to BDO at only P43.5 per share during the incumbency of President Macapagal-Arroyo.

The possibility of this deal being consummated will depend on the outcome of the EPCIB stockholders' meeting tomorrow.