‘Liquidating’ plan holders

The image of the preneed industry has suffered in the past several years due to problems that have affected a number of big insurance firms, no doubt exacerbated by the Asian financial crisis in 1997. Industry observers say that despite the optimistic projections of Insurance Commission (IC) chief Emmanuel Dooc, preneed firms will continue to face tougher challenges with troubled companies finding it difficult to survive with the IC allegedly employing “roadblock tactics” that derail complete rehabilitation.

Despite the clamor by a large number of plan holders of Prudential Life Plans Inc. (PPI) for alternative rehabilitation plans, the IC seems bent on the liquidation of PPI supposedly because this will be in the best interest of the plan holders. Sources, however, question how the Insurance Commission can decide on liquidation as the best option when, during a hearing chaired by Congressman Sergio Apostol, IC representatives reportedly admitted that they did not have the figures to ascertain the status of PPI and thus are in no position to make such a judgment call.

Insiders also found it intriguing that two conservators have been assigned to PPI when the usual practice is just to assign one. Worse, these two conservators seem to be at the opposite sides of the pole, with the first one favoring rehabilitation while the second one has declared that the IC is moving towards liquidation. Those in the know likewise claim that the IC’s liquidation plan provides “more questions than answers.” For one, memorial plans with adequate reserves are programmed by the IC for liquidation at 80 percent of the preneed price – which reportedly serves the interest of a rival preneed company that has offered to substitute its fixed value plans at the said liquidation values – not exactly beneficial to plan holders. Another preneed company has reportedly made an offer to swap PPI’s memorial plans with its own, and to continue servicing the same – yet plan holders were reportedly not apprised of such offer.

Some quarters are claiming that the liquidation plan of the Insurance Commission is full of “dubious solutions that they could end up “liquidating” the plan holders instead of the assets of the preneed firm.

Gambling on schools

The Philippine Amusement and Gaming Corp.’s revenues has risen dramatically, with over P40 billion in earnings recorded last year. Certainly, there’s every reason for Pagcor chairman Bong Naguiat to be optimistic that growth for 2013 will be even higher (projected at P44 billion) with the recent opening of Solaire Resort and Casino which reportedly had a turnover of P2 billion from high rollers on its first night alone.

Developed by Ricky Razon’s Bloomberry Resorts Corp. (shown in photo with Pagcor chairman Bong Naguiat), Solaire was the first to open at the Pagcor Entertainment City Complex along Roxas Boulevard. Three other casino operators are also set to open, with the SM Group’s Belle Corp. and Macau’s Melco Crown Entertainment looking at mid-2014 to launch Belle Grande. According to Belle vice chairman Willy Ocier, the casino project will bring in even more tourists into the country, with middle income foreigners in Asia being targeted as well as high rollers from China, Singapore, Indonesia, Malaysia and Korea. 

On the other hand, the Manila Bay Resorts project of John Gokongwei’s Robinsons Land group with Japanese billionaire Kazuo Okada is set to open either in late 2014 or early 2015, while the Resorts World Bayshore between the Alliance Global Group of property developer Andrew Tan and Malaysia’s Genting Corp. is targeted for completion by 2016. Naguiat has projected the country’s annual gaming revenues at $10 billion by 2017 when all the four casinos will be operational – which is very good news for many Filipinos not only because it means more jobs but bigger contributions for the education sector.

Just recently, the agency donated P2 billion for the construction of 2,000 public school classrooms with computer laboratories to boot. Much earlier, Pagcor gave P1 billion to build 900 classrooms and 100 learning centers for the “Matuwid na Daan sa Silid Aralan” project which was launched in 2011. “Gambling” on schools is definitely the kind of project that will make everyone a winner.

Solid at No. 1

The campaign season is heating up with all kinds of intrigues being thrown at senatorial candidates. But no matter what they may try to throw against her, Loren Legarda will continue to be at the top spot because she has a solid following from women and environmentalist groups, an insider told Spy Bits. Loren is the only female to top two senatorial elections but lost twice when she ran as vice president, yet this has not affected her popularity.

Some members of the elite find Loren “too ambitious for her own good,” but her supporters disagree saying she is “ambitious not for her own good but for the good of many Filipinos.” In fact, some of her close supporters are urging Loren to try for a higher post again in 2016.

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