The Yuchengco Group of Companies’ (YGC) top executives told this writer that they did no wrong legally and ethically, and they wish to fight it out in the courts, the Securities and Exchange Commission (SEC) and through the mass media. They might be inspired by Yuchengco’s words: "Whenever you go into a fight, you must prepare yourself as if you are going to war. Defend all your flanks. Look ahead, look to your right, look to your left and do not forget your back. Never go into a legal battle half-heartedly or half-prepared. Once you go into a legal battle, you must be prepared to fight to the end and fight to win."
My unsolicited advice to the YGC, however, is to take the initiative and boldly find a mutually acceptable compromise to the PPI controversy. Do not let this unnecessary problem drag on. They should study the past sayings of Ambassador Yuchengco for guidelines. These sayings were published in a small red booklet on his 73rd birthday on February 6, 1996
Among the favorite mottos of the tycoon is "A bad compromise may be better than a good case in court." He also said, "Whenever there is a crisis, there is an opportunity as well as danger. Avoid the danger, grasp the opportunity." He also once said, "I would rather lose a million dollars than to have my reputation tainted."
They added, "He has a lifelong track record as a respected philanthropist who supports programs to promote the Filipino youth. An example is the annual search for outstanding students nationwide who are conferred the National Discipline Award for outstanding student work. Over 5,000 students have benefited from this program
"We hope the other side of Ambassador Yuchengco can be presented to the public – that he is a philanthropist and an honorable business leader, not what the personal attacks paint him to be. The anti-PPI opposition is retaliating unfairly against the Yuchengco family and other companies with negative text messages and other vicious attacks. Ambassador Yuchengco thought very deeply about this problem. He is hurt by this barrage of unfair accusations because he wants to leave a good name. His recent commitment of P250 million of personal funds to PPI is proof of his goodwill, because PPI is no longer a Yuchengco-controlled firm – it is 51 percent owned by the managers due to an earlier management buy-out, and Grepalife Holdings owns only 49 percent of PPI now. Despite the Yuchengco Group’s minority stake in Pacific Plans Inc., Ambassador Yuchengco is infusing his personal funds in the hope of helping solve this problem."
Alfonso Yuchengco is one of the strongest supporters of EDSA 1 and EDSA 2, and a close ally of former President Fidel Ramos and President Gloria Macapagal Arroyo. On the Pacific Plans imbroglio, ex-President Ramos came to the defense of Yuchengco, saying, "By personally pledging P250 million to help PPI beneficiaries, Ambassador Yuchengco swiftly responded to the problem beyond the call of duty. The financial trouble affecting PPI is not an isolated case because all other pre-need firms are faced with the same issue – skyrocketing tuition fees. Because education is a primordial necessity for people empowerment and national development, the government, schools, and the pre-need industry should get their act together to address this issue."
Asian Institute of Management (AIM) president Roberto "Bobby" de Ocampo, ex-finance secretary during the FVR presidency, also came to the defense of the tycoon. He said, "Pacific Plans Inc.’s financial problems reflect the present state of the entire pre-need industry. I believe the government should immediately take urgent steps to alleviate the problem for the benefit of our Filipino youth whose education, in this case, is largely at stake. I think Ambassador Yuchengco recognizes this. And this must be what prompted him to shell out P250 million from his own pocket to help PPI planholders support their children’s tuition requirements."
Bankers Association of the Philippines (BAP) executive director Leonilo Coronel said, "As chairman of RCBC who is a very active member of the BAP and outgoing chairman of the Asian Bankers Association, Ambassador Alfonso Yuchengco has always been in the forefront of banking reforms to enable Philippine banks to become world-class banking institutions. He is a man of vision whose hard work and dedication have enabled RCBC to become one of the premier banking institutions in the country."
Unlike rags-to-riches taipans John Gokongwei Jr., Henry Sy or Lucio Tan, Alfonso "Al" Yuchengco was born into a rich family in lumber, construction and trade in Gandara St. of downtown Manila and just an estero across from the pre-war Lee Tay & Lee Chay sawmill compound facing T. Alonzo St. He went to school in the pre-war years in a chauffered Packard and later inherited an insurance-based fortune from his father Enrique. The young Yuchengco grew up with a Spanish mestizo barkada in La Salle, and was not considered Chinese in culture or nor in Confucian values.
Instead of wasting his inheritance like other spoiled rich kids, Yuchengco worked hard and spent over half a century building his diverse business empire. He pioneered the introduction of credit cards and memorial plans in the Philippines. He competed aggressively against entrenched multinationals and big Philippine companies
Yuchengco Group top official Cesar Virata, former prime minister and finance secretary, said, "Al Yuchengco is unique among entrepreneurs in the Philippines for being open to entering into joint ventures." Many of these joint ventures were entered into with foreign companies. These unions allowed the Yuchengco Group of Companies to take advantage of extensive resources and advanced technical know-how of international associates." An example of this strategy of joint ventures with top foreign institutions was the 40 percent capital contribution of the Government Investment Corp. of Singapore to the construction of the 48-storey RCBC Plaza. There is also the over 30 years of association with the UFJ Bank of Japan
Although Yuchengco has his own share of corporate battles and was as shrewd as any businessman, allies point out that no major breach of obligation, corporate scandal or fraud ever tainted or undermined his reputation in his long career as tycoon and later as Philippine ambassador to Beijing, Tokyo and the United Nations.
Makati Business Club president Atty. Ricardo Romulo said, "Mr. Yuchengco has shown throughout his distinguished career a high degree of entrepreneurship and acumen. His accomplishments, philanthropy, foresight, and vision of the Philippines need no elaboration from me. They are well-known, and have earned for him an honorable place in the world of business and commerce."
In his quest for a good name for himself and his family, Yuchengco created the AY Foundation for his philanthropic endeavors. He said, "We decided on this idea of engaging in what we call SROI or a ‘social return on investment.’ To accomplish this, we founded the AY Foundation. Every company that belongs to our group is mandated to turn over between one to five percent of its profits to the AY Foundation. I personally donate the balance to make up for what may still be lacking."
Among the numerous charities of the AY Foundation include the annual search for the Blessed Mother Teresa of Calcutta Awardee for selfless humanitarian service, the donation of the P52.5 million Enrique Yuchengco Hall at De La Salle University, the 1,100-seat Teresa Yuchengco Auditorium inside the hall, the 100-bed Doña Maria Yuchengco Charity Wing for the poor at the Our Lady of Peace Hospital along Aguinaldo Highway in Cavite, and many others
Even his worst critics and most bitter corporate rivals acknowledge that Yuchengco is a financial genius and an astute business strategist. He is also a great judge of character and knows how to recruit the most brilliant minds to help him build up YGC like Carlos P. Romulo, Sen. Gaudencio Antonino, former Senate President Mariano Cuenco, ex-Prime Minister Cesar Virata and Harvard-trained ex-Trade Secretary and former SGV Group chairman Rizalino "Roy" Navarro. His allies said it would be unfair to ignore or diminish Yuchengco’s pioneering efforts in the Philippine insurance and finance industries, which are crucial to nation-building.
It would be a big tragedy if the Pacific Plans controversy, which is only a small part of his vast business empire, is mishandled and allowed to overshadow Yuchengco’s long and eventful business career
What are the secrets of his business success? Alfonso Yuchengco explained, "The elements of success are luck, hard work and discipline. As I have said, no matter how smart you are, how hardworking you are, if you are not lucky, you will not succeed. As for hard work, you cannot just depend on people to work for you. You have to show the way. Discipline is very important." Will Yuchengco be lucky again this time around, in overcoming the Pacific Plans problem and repairing whatever damage it has caused?
He said, "A million, a hundred million, even a billion can be lost in a day, but a good name is forever. And so, for me, a good name is much more important."
What daring moves or what personal sacrifices will the tycoon undertake to safeguard his family’s reputation, which has been badly shaken and severely challenged – whether fairly or unfairly – by the troubles with former subsidiary Pacific Plans Inc.?
We shall soon see.