Conflicting interest

The Star TV-Destiny Cable controversy continues to be hot news. After failing to get a temporary restraining order to stop Star from pulling the plug on five top-rating cable channels, Destiny has reportedly withdrawn its court suit against Star. However, Star is reportedly very upset with Destiny and is now contemplating on filing a countersuit.

Destiny is said to be consolidating forces with other groups to wage war against Star through the National Telecommunications Commission and is very confident that NTC will rule in its favor and order Star to reinstate the five channels – ESPN, Star Sports, Star Movies, Star World and National Geographic Channel. Why the confidence? Sources reveal that a very high NTC official once lawyered for Destiny and has maintained a soft spot for the cable TV company. This official is said to have even taken cared of Destiny’s provisional authority to go into the cable TV business.

Meanwhile, other content providers like HBO, Discovery, Cartoon Network, Nickelodeon and Disney are complaining about NTC’s spending too much time and energy on the Star-Destiny row and not enough on more pressing problems of the industry like cable piracy. These providers say that up to now, the NTC has not taken a firm stand on this issue. It is estimated that government loses more than P100 million in taxes each year from piracy. And the figure keeps growing.

The biggest frustration of the cable TV industry is that neither the NTC nor the Department of Trade and Industry (through the Intellectual Property Office) wants to take a stand on the piracy issue. Instead, the two agencies keep passing the buck.

A much-coveted jewel

It seems that everybody wants to take a piece of the 150-hectare Fort Bonifacio Global City. Name it – the Ayalas, Gokongweis, Concepcions, Sys – and they are there, seriously contemplating on getting a piece of the action.

Whoever controls Fort Bonifacio Development Corp. (FBDC) decides the strategic development direction of the Global City, which could explain why the Ayalas – in partnership with Jose Yao Campos who owns Greenfield Development Corp. – want to acquire the more than $100 million loan which Metro Pacific Corp. owes Larouge BV and secured by 50.4 percent of Bonifacio Land Corp. (BLC). FBDC is owned 55 percent by Bonifacio Land and if the Ayalas get control of Bonifacio Land, they will have control of FBDC, whose board goes over all development contracts.

The Ayalas will not allow land prices in the Global City to unfairly dampen real estate prices in the nearby Ayala business district. No less than Ayala chairman Jaime Zobel de Ayala has confirmed the group’s interest in the Global City. The 50-50 joint venture between the Ayalas and the Camposes is virtually a sweetheart deal for the Ayalas considering that they are going to shell out $45 million for a project with a value of P40 billion easily.

The Global City promises to be the next ‘in’ business district, especially once the Philippine Stock Exchange transfers headquarters there in four years’ time maximum.

FBDC, which is donating the land, is close to finalizing an agreement with the PSE, which is expected to be signed in the next few weeks. And FBDC reserves the option to tie up with a developer to construct a condominium type of structure, some floors of which will be occupied by the stock exchange. FBDC will also have a share in the commercial proceeds of the structure.

But while the Ayala-Campos tandem seems to be the only serious offer for First Pacific’s interest in Bonifacio Land, First Pacific seems not to be that interested. Metro Pacific president Manuel V. Pangilinan would very much like to know, but the First Pacific guys are not interested in talking to him.

Show me the money

Presidential publicist Dante Ang insists that his investment in Seed Capital Inc., which now owns 60 percent of Bankwise Inc., is aboveboard and that it did not violate any laws or requirements of the Bangko Sentral ng Pilipinas.

So if this is a purely business transaction, how come there is a very persistent rumor in banking circles that Ang has not paid P50 million or 20 percent of the P250-million purchase price? Why was he made chairman of the bank if no money was involved?

Other incorporators of Seed Capital, which has put up the balance of the purchase price, include Bobby Ansaldo who was a high-ranking official of Pioneer Hi-breed and the Department of Agriculture, Enrique Herbosa who was formerly president of the United Coconut Planters’ Bank, Ramon Diokno, and Bobby Guevarra who was involved in the peace bonds and who reportedly used to frequent the National Agriculture and Fisheries Council of the DA looking for projects. This group also used to be involved in the propagation and sale of sweet corn seeds.

Questions are now being raised as to why Seed Capital is suddenly interested in acquiring a thrift bank and Ang’s involvement with the group. Ang is said to have helped the group raise the money to acquire control of Bankwise, but it seems Ang’s involvement is much more. Sources said he is there to make sure that the BSP approves the sale.

Ang may have turned down offers of appointment to any government post but if rumors are true, then it seems that he may have made the right choice. Not being a public employee, his buying binge (which include Technogas) may not be subject to public scrutiny unlike those of ‘Clint Eastwood’ and ‘Harrison Ford.’

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