Prone to abuse

If there is one thing that National Telecommunications Commission (NTC) chief Ruel Canobas should give utmost priority, it is the investigation and possible recall of all frequencies granted by former NTC commissioner Abraham Abesamis during his term without the benefit of a public hearing.

Several companies were reportedly issued frequencies by Abesamis without going through the quasi-judicial process of conducting public hearings, and submitting proof that the grantee has the technical and financial capacity to undertake the proposed service, among others.

While lawyers that I’ve talked to say that since the grant of frequencies is an administrative matter and that it is true that it is the prerogative of the NTC chief to do away with the quasi-judicial process, still the former NTC commissioner has no reason to dispense with a tried and tested method of granting frequencies.

First of all, frequencies are a scarce resource, and the companies that are granted their use should prove that they are capable of utilizing these for the benefit of the public. The conduct of public hearings also prevents any doubts being cast on why certain companies are blessed to be granted frequencies and why some are not. And as everybody knows, any grant of franchise, privilege, or authorization by an regulatory agency without the benefit of rules or restrictions is prone to abuse.

The ZTE contract and the grant by the NTC of broadband frequencies to the group to operate a national broadband network is therefore just the tip of the iceberg. Whether Pacific Internet, Bell Telecom, and other companies that were granted broadband frequencies by Abesamis without undergoing the quasi-judicial process really deserve the award is something we are not in a position to judge. But how is the public supposed to know if everyone is kept in the dark?

RCBC defies market woes

The Yuchengco family owned bank, RCBC, is slowly but surely (and silently!) gaining ground as far as its industry position is concerned.  Aside from successfully getting turn around expert Lorenzo V. Tan and his team to their fold, the Yuchengcos, it seems, are scoring big once again in their flagship company.  

I was told by an insider recently that despite the bad market conditions that prevailed in the months of July and August, brought about by the trickle effect of the sub-prime crisis in the US, RCBC still chalked in a decent month end bottom line of close to half a billion pesos in August alone!  That’s surely a surprising surge in income considering all the beating other banks took during what the Chinese consider as the ghost month. Year-to-date August, I was told that the group is already close to breaching its annual net income target of P2.5 billion, which is 20 percent higher than the previous year’s achievement of P2 billion.

Some quarters note that it does help that a good working blend between YGC top honcho Helen Yuchengco Dee and Tan seems evident with the way things are moving inside the RCBC Plaza. Tan, who is known to be a “stakeholder pleaser,” always reaching his targets ahead of his deadline — is said to be the perfect guy to complement the sharp and goal-oriented Dee. No wonder, we see less and less of the Ambassador and Secretary Al Yuchengco, who now has more time to spend for the philanthropic pursuits carried out through his AY Foundation. He is probably happy with the way his people are performing and is focusing more on how to share and give back some of his blessings to the community.

Going back to RCBC, the bank — which prides itself as the fourth largest capitalized private universal bank in the country, thanks to a successful re-issue of ownership shares to the public in March this year — recently celebrating its 47th anniversary.

According to my source, the bank surely has a lot in store for the public as it is poised to launch “a battery” of new products and services that will surely change the way banking is done in the side of the world. It has also been opening more and more branches and ATMs nationwide to further widen its reach. On the side of bad asset management, the bank has been scoring big time in disposing its formerly non-performing assets through auctions, nationwide roadshows and even negotiated sales.

Also enjoying this wonderful growth ride are subsidiaries RCBC Savings and Bankard, which are said to be experiencing unprecedented growths in their net incomes lately.  RCBC Savings Bank, which is tapped as the group’s consumer lending arm, is said to be seeing an accelerated expansion in its auto and home loan portfolios. Bankard, which now provides backroom services for RCBC Credit Cards is also experiencing improvements in its membership and even delinquency figures.

Over and above these, RCBC — given the Yuchengcos’ big exposue in the insurance industry — is a giant as far as its potential in the bancassurance business is concerned. It is presently talking with some highly possible partners but my source opted not to name them. And speaking of not naming names, all are also excited with RCBC’s undisclosed partners in bank acquisition talks, which may just be business headline materials in the next few months. The bank is planning to acquire not just one but a number of smaller institutions, I was told. Given all that is happening, it seems Tan is realizing his commitment to grow RCBC both organically and through M&As, and he is getting all the support from his bank’s owners.

Watching how this dragon of an institution will wake up, roar and fire up the industry will certainly be interesting and we’re anticipating this to happen sooner than later.

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