Boycott BW Bingo Operations

Unfortunately, the issue that started it all, BW, has managed to get out of the limelight. BW's PR consultant was even gloating about that in a news report I saw on Mel Tiangco's late evening newscast. The spotlights are now focused on the conflict between the SEC and the PSE. The PSE has defied seven orders of the SEC, making government look helpless in the hands of well-connected and arrogant stockbrokers.

Passing that new Securities Law has become even more urgent now. But they must update the draft to take into account the lessons we have learned and are continuing to learn from BW. The defiance of the PSE must be addressed, or government risks losing its credibility here and abroad.

Right now, anyone who desires reform in the local bourse feels helpless. The old boys club mentality is alive and well at the PSE and that means they will resist the introduction of meaningful reforms unless they are given no options but to comply.

In a way, PSE's defiance of SEC orders is SEC's fault. By recalling the order of Chairman Jun Yasay to suspend trading until such time as the PSE can put a good monitoring team in place, the SEC threw aside a potent weapon that can make those incorrigible stockbrokers toe the line. It is unfortunate that the SEC en banc doesn't seem determined to enforce its orders. No wonder the PSE governors are ignoring them.

Actually, if trading were halted the first time around, it would have been because of bad faith on the part of the PSE Governors. Jun Yasay only wanted PSE to give assurance that there will be competent people manning the compliance and surveillance group. The resigned staff members were willing to go back. But the PSE Governors acting through newly appointed COO, Atty. Pete Cervantes banned them from the premises.

Right now, we are trading stocks without an effective compliance team on duty. The SEC personnel sent to the PSC "to monitor" are nothing more than token. How can a couple of SEC officers do the job of the 16 resigned personnel of PSE's compliance group? By Mr. Yasay's admission, the SEC staff are not even trained to do what they are now supposed to be doing in lieu of the resigned PSE staff. Worse things than BW can happen in the exchange now and there is no cat to keep the mice from playing too unfairly.

Closing down the exchange to institute reforms is not such a bad thing. Better to do it now when the market is down and hope the resulting reforms will improve confidence faster. Otherwise, the basic problems in our stock market will fester and make recovery a long drawn out process. Radical surgery may be the only option left.

As for BW, there is one thing common citizens can do to express disgust. There should be a concerted effort from civic and religious groups to encourage a boycott of all its bingo operations.

In any case, people may already be getting a little tired of all the legalized gambling that blossomed under the Erap administration. Lotto outlets are reportedly closing down due to bad business volume. Some lotto outlet operators tell me they are even hard pressed to earn enough to cover overhead.

A little push from their parish priests, ministers and civic leaders should be enough to make people seek alternative recreation to BW's bingo operations. We should deliver the message that we are tired of all the craziness that Erap's friends have plagued this country with.

And with on-line bingo gone, airtime on the government television channel will be freed from bingo telecasts. Maybe we can have more useful educational programs aired by PTV4.

In a sense we are not helpless unless we think we are. Those cronies can be stopped, if we put our heads to it. And it takes so little to do it -- stop playing bingo, for one. That isn't such a big sacrifice.

The saving grace in all this mess is the appointment of Ambassador Lilia Bautista as Mr. Yasay's replacement. Not only has she proven competence and dedication in her many years of public service; she is also someone who can be trusted to uphold decency and of course, the law. Unlike Yasay and his predecessor Ms. Rosario Lopez, Ambassador Bautista is also low key. I think she will speak softly but will carry a big stick.

If the Estrada administration thinks they can more freely call Ms. Bautista to exert pressure on matters pending before her, they are in for a shock. Time and again, it is these intelligent and principled women in government who have exhibited balls. It would have been easier for Malacanang to talk to Mr. Yasay if only they handled him with more care.

During that breakfast forum the other day at the La Dolce Fontana in Greenhills, Ms. Bautista clarified that when she talked about being a team player, it had more to do with the internal operations of the SEC. It had nothing to do with playing along with the administration if she thought what was being asked of her was improper.

Hopefully, too, the SEC associate commissioners whose terms expired, will be replaced by people who are as highly credible as Ms. Bautista. Titoy, Paeng and Mar should make sure this happens. If political proteges with hidden agenda get appointed, sayang lang si Ms. Bautista dyan.

Jun Yasay, in the same forum, also gave a good presentation of what he thought was SEC's main responsibility in regulating the stock exchange. SEC's main concern is the protection of the small investor. Jun said reforms must be implemented to develop a solid base of local investors. This in turn, will make us less vulnerable to the movements of volatile foreign funds.

Mr. Yasay said he is not too worried about the foreign investors. The big foreign fund managers know what they are doing and have the facilities and the network to protect themselves. But the small investors only have the SEC to assure them of protection from the questionable activities of hustlers among stockbrokers and other players.

I got the impression that Ambassador Bautista will not be any less vigilant in looking after the interests of guys like you and me. I am sure the Ambassador will make it her first order of business to get the PSE to respect the orders of the Commission. That unruly bunch must be disciplined and the anarchy at the PSE tamed.

EJS, using a cybercom e-mail address, sent this one.

The Godfather, accompanied by his attorney, walks into a room to meet with his accountant. The Godfather asks the accountant, "Where's the three million bucks you embezzled from me?" The accountant doesn't answer.

The attorney explains, "Sir, the man is a deaf-mute and cannot understand you, but I can interpret for you."

The Godfather says, "Well, ask him where the @#!* money is." The attorney, using sign language, asks the accountant. The accountant signs back, "I don't know what you're talking about." The attorney interprets to the Godfather, "He doesn't know what you're talking about."

The Godfather pulls out a pistol, puts it to the temple of the accountant, cocks the trigger and says, "Ask him again where the f--king money is!"

The attorney signs to the accountant, "He wants to know where it is!" The accountant signs back, "Okay! Okay! The money's hidden in a suitcase behind the shed in my backyard!"

The Godfather says, "Well, what did he say?" The attorney interprets to the Godfather, "He says that you don't have the guts to pull the trigger."

(Boo Chanco's e-mail address is [email protected])