Problems hound posh residential subdivision

One would think that living in an exclusive, secured and gated residential enclave is hassle-free but I learned recently that there are real problems hounding one subdivision in Pasig.

While we may dismiss this as “first world problems,” the issues are real, my sources said.

Lack of transparency

This particular subdivision has some 300 households which pay annual dues of P60 per square meter. This means that a 500-sqm house would have to pay P30,000 a year in annual dues.

In all, the association generates approximately P8 million plus additional revenue from rentals, penalties and car stickers.

And yet, some residents are wondering where these funds go.

Some of the residents said the homeowners’ association’s financial statements have not been made available immediately.

Only tentative financial statements were submitted to the Bureau of Internal Revenue for the 2021 and 2022 fiscal years to avoid payment of penalties.

The residents want to see and scrutinize the FS because in the past, one administrative manager supposedly got away with P4.3 million.

There are also issues on procurement of supplies for projects.

A proper audit will make sure that there are no fraudulent maneuverings. Disgruntled residents are quietly dealing with these issues and they feel helpless about it.

Aside from the lack of transparency, residents are also complaining about the autocratic management style. Some association leaders may even be violating the subdivision’s own by-laws, they said.

The problems of this subdivision aren’t unique. In fact, anecdotal evidence shows that we’re hearing more and more problems in these residential and condominium associations, especially since during the COVID-19 pandemic.

Perhaps, everyone got so busy surviving the pandemic that efforts to be transparent have been forgotten or some simply pushed their own agenda while nobody was looking.

Our government housing regulators must look into these issues as well.

Like in any organization, members just want to make sure that their organization’s coffers are not being drained and that the money goes to where it should be.

Allcard appeals for reconsideration

ALLCARD Inc., which submitted the lowest calculated bid for the government’s pre-printed driver’s license cards project, has sent a request to the Department of Transportation (DOTr) to reconsider its decision disqualifying the company.

In its request, ALLCARD appealed to the DOTr to reconsider the decision of the Centralized Bids and Awards Committee (CBAC) disqualifying the company supposedly for its alleged failure to comply with the provisions of the 2016 Revised Implementing Rules and Regulations of Republic Act No. 9184, otherwise known as the Government Procurement Reform Act.

ALLCARD, a source said, is puzzled why it was disqualified after it supposedly submitted the lowest bid at P33.88 per piece. This compares to a rival bidder’s price of P42 per card.

Last May, ALLCARD already received a Notice of Lowest Calculated Bid from the DOTR but weeks later, the company was told that it was disqualified supposedly because of delays in another project, this time with the Bangko Sentral ng Pilipinas (BSP) – which ALLCARD has already disputed.

It’s a curious case indeed, unless of course this is another example of a bidder being favored over another.

US SEC acts on Binance and Coinbase

It looks like the Securities and Exchange Commission (SEC), the country’s corporate regulator, will further delay the issuance of a framework governing digital assets in the Philippines.

This is because of actions recently taken by the United States Securities and Exchange Commission (US SEC) on Binance, the world’s largest cryptocurrency exchange.

SEC chairman Emilio Aquino said the SEC is carefully studying the lessons from the Binance scandal to ensure that we won’t have that kind of problem here.

Recently, the US SEC filed charges against Binance. It said that Binance mishandled customer funds, provided false information to US regulators and investors and created separate US entities in order to evade US federal securities laws.

Additionally, the US SEC alleged that Sigma Chain, a trading firm owned and controlled by Changpeng Zhao, who is also the co-founder of Binance, engaged in wash trading on the Binance.US platform, artificially inflating the trading volume of crypto asset securities.

Against this backdrop, Infrawatch PH convenor Terry Ridon is calling on our local regulators, the SEC and the Bangko Sentral ng Pilipinas, to undertake strong action against unregistered cryptocurrencies operating here.

In his letter addressed to SEC chairman Aquino, Ridon also said:

“Coinbase, the largest cryptocurrency trading platform in the United States, is also facing legal action from the US SEC. The complaint alleges that Coinbase violated the law by failing to register as a broker and exchange. The US SEC emphasized that Coinbase prioritized its profits over investors’ interests and disregarded compliance with securities market regulations, which were designed to safeguard investors and the US capital markets.

“Moreover, in its complaint filed in Manhattan federal court, the US SEC alleges that Coinbase has, since at least 2019, made billions of dollars by operating as a middleman on cryptocurrency transactions, while evading disclosure requirements meant to protect investors.”

Ridon thus called on our regulators to ensure this won’t happen in the Philippines.

It’s a wise call considering that we’re hearing more and more scams and other fraudulent activities victimizing people almost everyday now.

Our regulators must be a step ahead of these scammers, especially with technology changing at dizzying speed.

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Email: [email protected]. Follow her on Twitter @eyesgonzales. Column archives at EyesWideOpen on FB.