Ayala-SM rivalry

News of Ayala Land’s withdrawal from the disputed P6-billion Negros Occidental capitol project will allow it to focus on other development projects, a market analyst said. The 7.7-hectare property development project has been the subject of a case filed by SM Prime Holdings that questioned the awarding of the project to rival developer ALI through a negotiated bid, saying the SM Group was the rightful bid winner.

It can be recalled that Ayala offered P24.3 billion (with an upfront cash payment of P19.5 billion in 60 days and the balance to be paid a year after) for the 74-hectare, government-owned FTI property in Taguig, besting Robinson’s P14.7 billion tender by over P9.6 billion. This raised the eyebrows of several observers, describing ALI’s offer as an “imprudent overbid” that could be difficult to sustain.

The same analyst said Ayala’s reported withdrawal from the Negros Occidental capitol project will allow the developer to use its much needed funds for other projects. The SM Group is more liquid, “awash with cash” according to our insider market analyst, with over $1 billion in cash and a credit line that can be readily tapped should the need arise. (Incidentally, SM won major awards during the recent International Council of Shopping Centers awarding ceremonies in Shanghai, China for its digital media campaign (gold award) and its Operation Sendong project in Cagayan de Oro City, one of the areas devastated by the killer typhoon in 2011.) 

In any case, the rivalry between Ayala Land and SM Group is on high gear with both parties’ strong and intense interest in the Ortigas property. Certain factions within the Ortigas family are at odds with each other, with the Ignacio Ortigas group having aligned with Ayala, while another faction led by Fernando Ortigas is totally committed and allied with the SM Group.

Visayan Forum funneling funds to leftist groups?

Visayan Forum Foundation is reeling from accusations of wrongdoing by the US Agency for International Development, with some “whistleblowers” lending credence to allegations of fraud involving P210 million in funding for the NGO’s anti-trafficking efforts. Several sources said the discovery of “evidence” allegedly gives credence to USAID’s complaint, such as falsified documents including fake receipts, blank official receipts and “doctored” books and ledgers, among many others.

According to sources, the multi-awarded NGO – which has been described by several sectors as a leader in the fight against human trafficking and slavery – is also suspected of allegedly funneling donated funds to left leaning organizations (some listed as terrorists groups) – which is definitely against the policy of the US government. The controversy involving Visayan Forum has also raised questions about the credibility of non-government organizations and the need to ensure transparency in their operations, with many saying that even foundations are prone to corruption.

The Association of Child Caring Agencies of the Philippines or ACCAP, another NGO supportive of Visayan Forum, sent Spy Bits an email cautioning against “the rush to judgment” against the officers of the beleaguered foundation, saying legal processes should be allowed to take its natural course to determine the guilt or innocence of those implicated in the alleged fraud. CAAP president and lawyer Gwendolyn Gana warned against trial by publicity, noting that VFFI is a globally recognized and multi-awarded NGO that has partnered with her group to promote the welfare of Filipino children.

Chinese veep: In or out?

The unexplained two-week disappearance from public view of Xi Jinping, gave rise to frantic speculations that all may not be well with Chinese President Hu Jintao’s heir apparent. Rumors began appearing in Sina Weibo – China’s equivalent of Twitter – that Xi may have suffered a heart attack or was comatose after having been involved in an accident, or that he has become paralyzed after suffering a spine injury after escaping an assassination attempt. Informed sources, however, claim that China’s soon-to-be Number One had to rest after hurting his back in a swimming pool.

The guessing game finally ended after Xi showed up at an agriculture event – but not after eliciting concerns about the impending leadership change, with some quarters saying there shouldn’t be too much cause to worry since China has always ruled “collectively” and that there are still other “candidates.” As they say, out of sight, out of mind. Nevertheless, the “Houdini” act underscores the Chinese Communist Party’s penchant for secrecy, keeping a tight lid on information especially when it comes to their leaders’ health.

Political observers, however, note disturbing internal power struggles within the party leadership, with tensions exacerbated by protests against Japan. Demonstrators – reportedly with the approval of certain leaders – pelted the Japanese Embassy in Beijing with rocks, demanding that Japan relinquish control of a disputed small group of islands called Senkaku in Japan and Daioyu in China.

Spy tidbit

Global analyst group The Holmes Report has named Weber Shandwick as the most creative PR agency of the world as part of its Creative Index, which analyzed more than 25 key global and regional award programs over a 12-month period using the 2012 Cannes Lions as a cut-off date. Some of the shows included the PRWeek Awards, the European Excellence Awards, Cannes PR Lions and the SABRE Awards. Each show was weighted according to knowledge of its scope/scale, significance, geographic remit and reputation within the global PR scene.

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Email: spybits08@yahoo.com

 

 

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