Trouble brewing for FG in Bauang?

The La Union Spy-Ring disclosed that First Generation Holdings Corp.’s (First Gen) operating company Bauang Private Power Corp. (BPPC) reportedly delayed payment of local taxes to the province of La Union and to the municipality of Bauang where the 225-megawatt diesel-fired power plant is operated. Last year, the Central Board of Assessments Appeal, an attached agency of the Department of Finance, ordered BPPC to pay the local government of La Union P409 million in taxes on the use of its machinery and equipment from 1999 to 2003. Despite reports that BPPC and the other operating companies of First Gen posted an increase in net income to $42.89 million for the first half this year from $41.793 million compared to the same period last year, insiders claim BPPC is allegedly on the verge of bankruptcy and negotiations are reportedly underway for a possible buy-out by Mirant Philippines Corp. If this is true, then it looks like there’s trouble brewing for First Gen in Bauang’s port. Before First Gen even considers its planned IPO for January 2006, it certainly has to clear up this mess first.

Reaction to ATM fraud devices

Catanduanes Rep. Joseph Santiago wrote in relation to a Spybiz item titled "ATM Fraud Devices, Part 2" (Sept. 6, 2005) that showed photos of electronic devices being used by a criminal group to steal ATM card data and personal identification numbers (PINs). The gadgets can also be used to download confidential information stored in the magnetic strip of credit cards. The stolen data can then be uploaded into a fabricated card, which in turn, can be used for illegal purchases and cash advances without the knowledge of the legitimate credit card holder, Santiago disclosed. This probably explains why a number of cardholders suddenly find themselves getting billed for purchases which they never made in the first place. The Catanduanes congressman had earlier pointed out that compared to other countries, the Philippines is very lax when it comes to cardholder protection against spurious transactions. Last July, the industry was stunned when CardSystems Solutions Inc. revealed that private information on 40 million credit card holders from big card companies had been stolen, thus exposing cardholders from Japan, Australia, Hong Kong and the Philippines. Japanese to the risk of illegal transactions. Last year, Filipinos charged some P150-billion worth of purchases to credit cards, an industry survey said. Thieves do not have to get wallets to steal anymore, as they rely on high technology more and more to do the job for them. Some even reportedly look at trash cans to get loan application forms, financial transactions and other printed documents showing credit card numbers, mortgage details, birthdays, social security numbers, telephone numbers, drivers’ license numbers and even calling cards. Thieves also obtain information from banks, schools, employers, government agencies, telephone companies, credit card networks and payment processing agencies to create spurious documents.

Beware of "sleeping potion" maids

>Spybiz informants warned of a new modus operandi by household helpers in stealing from unsuspecting employers. These maids allegedly spike the drinks or food of their employers with a sleeping potion or substance that makes one sleepy, and the minute the employer dozes off, they then ransack the house to steal cash, jewelry and other valuables. These maids may be working with organized criminals who would pinpoint target victims, then send these women to work as maids in the target victim’s house. Employers should conduct thorough background checks on women applying as maids or nannies, and as much as possible employ only those referred by reputable agencies or whose honesty can be vouched for by friends known to the employer.

Spybiz travel advisory: When the going gets rough, RRR goes on vacation

Controversial Presidential Adviser and former Equitable Card Network chair Roberto R. Romulo was heard by our Ear-Spy bragging the other day about his planned European vacation from Sept. 27 to Oct. 21, while his brother, Makati Business Club chairman Dick Romulo, continues to demand the resignation of his boss – GMA. RRR and his wife are renting an 11-room castle in Tuscany, Italy, and boasted that he would be bringing along 10 other couples. Among those he mentioned were Ronnie Concepcion, Nene Quimson, Ramon Sy, and Jesus Tambunting and their wives. According to our Ear-Spy, he was heard to have said that he sent Ambassador Lani Bernardo – our Philippine ambassador to Spain – to personally check out the castle for him. (Isn’t Bert Romulo the DFA Secretary?) The controversial Presidential Adviser has two pending criminal cases; one involving a serious conflict of interest case filed before the Office of the Ombudsman by Atty. Frank Chavez, and another one filed by GSIS president Winston Garcia for criminal fraud involving Equitable Card Network, Inc. When the going gets rough, RRR goes on vacation.

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