Bankers’ choice

A new government (or a new mandate) means new faces, new favors to return, new debts to pay.

Whoever wins tomorrow’s presidential election should remember however, that if we want the peso to recover, we should never, and I mean never, use the Bangko Sentral ng Pilipinas or Department of Finance to pay political favors. Leaders follow leaders. Pick a good BSP governor and finance chief, and you will have good leaders in the banking industry.

This early, banking sources say at least two people are eyeing the BSP top post. They are Ambassador and former Finance Secretary and PNB president Ed Espiritu and former Far East Bank president Octavio V. Espiritu. The problem is, they are not well-liked and well-respected in the banking community.

(Has anyone looked at the NPLs of Far East stuck in BPI? BPI executives are shaking their heads in disbelief! Far East left huge NPLs. Luckily, BPI had a clean balance sheet and strong cashflow.)

Two names however are cropping up as the choice of the banking sector as the next BSP chief. They are DBP chief Simon Paterno and Bong Consing who are professional bankers, don’t play politics, and are respected here and abroad, just like Paeng Buenaventura. Both Mon and Bong by the way were based overseas for JP Morgan. Bong recently retired as the most senior Asian executive at JP Morgan Chase globally. He headed the investment banking business in Asia. He was also former adviser to the Ayala companies and was BPI director before JP Morgan sold out to DBS of Singapore.

The true test of a good BSP governor is how many former subordinates became bank presidents. Paeng has the most. Ed and OV cannot compare with Paeng who was an international banker, top Filipino in Citibank, lived in 12 countries, and was head of Citicentral Europe before heading PCI Bank. Paeng was well liked and admired. The banking community does not want just anyone to replace him.

Why Joey Is Voting For GMA

Very few high-profile and influential businessmen have divulged to the public who they are choosing for tomorrow’s presidential polls. Joey Concepcion, president and CEO of RFM Corp. is one of the few. Here are some of his reasons why he is choosing President Arroyo:

"Ever since, I have been very vocal in preferring President GMA to win in the coming election (please note that this is a personal position and not our company’s position as our company has to stay non-partisan).

A GMA win will be good for the country. On top of GMA being capable, hardworking and the most experienced in facing the many challenges of a Presidency, it is important that we have a CEO for the country who understands and has the political will to solve the problems that our country has, such as the issue on budget deficit and foreign debt level.

The business sector needs her for continuity – continuity in economic reforms, keeping the growth momentum and inducing further investors’ confidence that would spell greater employment and income opportunities for all Filipinos. It is essential for businessmen to see no radical change in policies. Our country has suffered enough of the boom and bust cycle that goes with the changes in the quality of leaders we had, and what we need is a sustained run-up towards economic modernization. With her win, the country would now have an even chance to come back and look forward to a brighter future.

With a fresh mandate from the people and no further interest in a re-election, I believe she would be in a better position to implement tough measures to ensure good reforms. As she promised, we look forward to having the political system changed towards a parliamentary form of government that will make the country more progressive. With a new mandate, we know that GMA would just like to be remembered as one of the presidents who was able to make the Philippines move forward."

A Flawless Trip

When I got an invitation from Emirates Airlines to visit Dubai, I was a little wary. After all, it will be the first time for me to visit this part of the globe. I heard that it was hot and humid and being in the Middle East, i was a bit apprehensive. The only thing that was keeping me excited about the thing is the promise of duty-free shopping at Dubai (everybody was telling me that Dubai is one big duty-free shop).

The occasion was the 2003-2004 financial and operational highlights briefing of Emirates chairman His Highness Sheikh Ahmed bin Saeed Al-Maktoum (Dubai’s crown prince).

Upon reaching Shangrila Hotel in Dubai where I was staying for the duration of my visit, I was surprised (and relieved) to see so many Filipinos in the lobby – from the concierge to the front desk representative to the waitresses. In fact, about 80 percent of the hotel staff is Filipino. In fact, Filipinos are highly in demand in the hotel industry in Dubai. They speak good English, are very warm and hospitable.

A visit to the Deira City Centre Shopping Mall was even more surprising. The store attendants are mostly Filipinos. I felt like I was back home shopping at Glorietta. Unfortunately, I hardly bought any. Buying from duty-free stores is cheap if you are earning in dollars, not if you bought your dollars and especially not if you keep converting the price of the goods to its peso equivalent.

Unfortunately, the visit was too short (I stayed one night in Dubai). I was looking forward to a trip to the desert and ride a camel, but such a trip would take you the whole day.

It’s no surprise that Emirates is one of the world’s best airlines. The service is great, the crew is warm and hospitable, the in-flight movies are good, and the seats were very comfortable. What surprised me most was that as soon as I reached the baggage conveyor belt at NAIA which was a few minutes after leaving the immigration counter, my luggage was already there. It was actually a flawless trip, which is a rarity nowadays.

Renewable Energy Gets Big Boost

The Central Negros Electric Cooperative (CENECO) recently signed a contract to purchase electricity from Talisay Bioenergy Inc., a wholly renewable 30-MW power project. Under the guidance of CENECO president Eddie Guillem, Talisay Bioenergy Inc. will provide CENECO consumers reliable, clean-and-green energy at reasonable rates. Talisay Bioenergy Inc. is a subsidiary of Bronzeoak Philippines, a joint venture between Bronzeoak Ltd. from the United Kingdom and Zabaleta and Co. from San Carlos City, Negros Occidental.

This innovative power plant uses bagasse, a sugar cane by-product, as its main fuel source, thus protecting the environment by promoting recycling. The First Farmers Holding Corp. sugar mill in Talisay City, Negros Occidental, is the location for the plant. Guillem states: "This is one of the most reliable forms of energy generation, a trend that has been implemented by many sugar mills abroad to improve efficiencies for their mills while providing grid stability through embedded generation to local cooperatives like CENECO. The Talisay Bioenergy Inc. plant is the first of its kind in the country and will serve as a showcase for how a locally sourced fuel can be used to address our future energy needs."

In a related event, and with representatives of the host mill present, President Arroyo and vice-presidential candidate and Senator Noli de Castro graced the official signing of an agreement for the Philippine National Oil Corp. (PNOC) to invest in Talisay Bioenergy Inc. . The President indicated her support for the project because of its positive impact on the community and the environment.

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