Right or wrong, it was Yasay's duty to make a judgment call

Whether keeping the Philippine Stock Exchange open will save it in the end remains to be seen. Finance Secretary Jose "Titoy" Pardo, now also known as "Sleepless Pardo", deserves an A for effort. And if his bold but unorthodox (even illegal?) moves succeed in rescuing our stock market from imminent collapse, then he'll be a hero worthy of the "Grand Order of Erap."

It can be said that Titoy did something resolute. However, could the four "other" commissioners legally convene an en banc meeting at 9 p.m. Tuesday night all by themselves? Under the law only the Chairman of the Securities and Exchange Commission (SEC) has the authority to convene an en banc meeting. As for the order issued by SEC Chairman Perfecto Yasay, Jr., requiring the "suspension of trading in the Philippine Stock Exchange effective March 8, 2000" it still remains to be established whether Yasay promulgated that order unilaterally, without consulting the other four commissioners en banc, whatever the denials and protestations.

In any event, it was a judgment call made in a crisis situation, and whether Yasay's decision was right or wrong he had the authority to promulgate it.

Neither the President nor Pardo, by the same token, had the authority to overrule a SEC order in such a matter. That's the bottom line.

And so, I think even an angry President Estrada and his Cabineteers who are howling for Jun Yasay's blood should pause -- and take their bearings. Seeking vengeance on Yasay or tarring him as an "economic saboteur" (nobody has ever been seriously "tried" as such) will only stir up more heat and controversy. Just let him get out, peacefully, on March 25 as his resignation letter pledged -- why, that's only a day over two weeks from now.

If Malacañang now pounces on him, snarling and biting, Yasay will only end up as a martyr. And if he's really bent on running for the Senate, Jun would certainly like that, and would throw in a "Thank you, Sir" into the bargain. But whatever the outcome of any tussle, the government -- and surely the PSE itself -- can only come out much the worse of the wear. Therefore, better an uneasy "peace" between Palace and outgoing SEC Chairman than a nasty confrontation. Two weeks is not too long to wait.

After all, a worthy incoming SEC Chairperson is already waiting in the wings: Trade and Industry Undersecretary and former Ambassador Lilia R. Bautista.

In the meantime, the suggestion of Secretary Pardo can be pursued to implement "reform" in the PSE. With the once all-powerful stock brokers literally "on the run", they won't resist a determined move towards "demu-tualization", i.e. turning over control of the stock exchange to the public, such as the shareholders and other "outsiders." I don't think stock brokers should ever again be allowed to dominate the PSE's Board of Governors. In fact, if I had my way (and I hope Congress legislates it so), none of them would be members of the PSE board in the future.

Finally, a word on Yasay's implied "threat" that he might not resign, as an act of defiance to flout the President's huffing and puffing against him. He hints that he may chose to stand pat and refuse to go -- as, indeed, it is his Constitutional right. This is however a question, Jun, that goes beyond individual right and impinges on the public good.

It's true that an SEC Chairman is awarded a fixed tenure of seven years in order that he may be free of "pressures" from politicians and other "powers," including that of the Presidency. On the other hand, an SEC chief, hanging on tenaciously to his post and defying Malacañang, will only damage the country -- and ultimately himself.

We are, in this confrontational and voluble society of ours, suffused with too much prickliness and pride. Yasay's nobility would be better sustained if he yielded his "right" to stay in place to the higher purpose of saving our already shaky economic and business sector from further international embarrassment.

In such an impasse, I am reminded of several trips to Europe in which I drove thousands of kilometers along the highways, from the German Autobahnen to the French autoroutes and the Italian autostrada.

On the European roads, you tend to observe the driving habits of the different nationalities. The Belgians used to be the most reckless drivers in Western Europe (perhaps it was either because theirs was a civilisation des pommes frittes or because in the old days -- like Filipinos -- Belgians could acquire licenses without undergoing rigid driving test). I'm told this is true no longer. But in this light, whenever you spotted a circled "B" on a car rear, you recognized the driver as a "Belgian" and became wary in your own movements.

The Brits were distinguished by a plaque which said "GB" (Great Britain or Gross Brittanien), and you had to remember that they were more used to driving on the left side of the road.

The French had an "FR", the Italians had an "I", while the Swiss had "CH" (for Confederation Helvetia).

The most dangerous, since most of the Autobahnen had no speed limits (except for stretches outside Frankfurt and other areas which were clearly marked as speed traps with "photo patrol" sensors enforcing those limits), were the German drivers. You knew a vehicle had been registered in Germany from the "D" on its rear (for "Deutschland"). Why do I say dangerous? Because they had a strange habit. Whenever a German motorist was approaching a crossing, as soon as he realized he had "the right of way" he would step on the gas in order to demonstrate that right, even though a trailer truck or bus was bearing down on him at a right angle, at full tilt. Prudence might have dictated that the "disciplined" German slow down and let the oncoming Leviathan pass -- but the motorist was always determined to invoke his law-mandated "right of way."

As a result, Germany's cemeteries are full of people who knew, in the last moments of their lives, that they had the "right of way."

Yasay, truly, has the right of way. But he mustn't step on the gas.

If you're one of the persons whose egos and wallets got deflated because you played BW Resources stock unwisely and let your enthusiasm get the better of you, don't think you're dumb. Essentially, all players in the stock market are gamblers -- and, though they think they've got the "gift" of insight, Lady Luck doesn't often smile on them.

Itzhak Perlman, the famous violinist, was quoted in the New York Times (Sept. 22, 1996) as saying: "Betting on the stock market is as ludicrous as betting on the lottery, unless you are so independent financially that you can afford to give the money away."

The well-known private banker to King Edward VII of England, Sir Ernest Cassel, was quoted in the book, Baruch: My Own Story (Holt, 1957), as asserting: "When as a young and unknown man I started to be successful I was referred to as a gambler. My operations increased in scope and volume. Then I was known as a speculator. The sphere of my activities continued to expand and presently I was known as a banker. Actually, I had been doing the same thing all the time."

The Economist, the British financial weekly magazine, commenting in an article about the adoption of lunch time trading in Tokyo (May 31, 1997) declared: "Financial traders, as everyone knows, are the world's most carnivorous species. So unlike most people, who must take a break from their working day to ingest a little sustenance, the average trader is perfectly capable of devouring his lunch and his clients simultaneously."

For lack of space in this newspaper yesterday, the appearance of Internal Revenue Commissioner Dakila Fonacier at the Greenhills Walking Corp. was not given enough coverage. But here are a few additional highlights of the BIR commissioner's appearance last Wednesday before the well-attended forum.

Manila Mayor Lito Atienza, who made it a point to attend the weekly breakfast-gathering, reminded Fonacier that ever since the E-Vat (Value Added Tax) was imposed four years ago, the City of Manila -- the nation's capital, mind you -- had not received a single centavo of its share of VAT collections as a Local Government Unit (LGU). He estimated that Manila was already owed at least P1 billion. Fonacier replied that, unfortunately, the BIR is only the collection agency, and any payments of "LGU share" had to come from the Department of Budget and Management.

The BIR chief further revealed that when the Tax Amnesty bill becomes law, it will constitute a "peace of mind" factor for many taxpayers. The amnesty will cover a period in which the cut-off date is December 31, 1998.

Fonacier said that he believes a Tax Amnesty measure would result in a collection of about P15 billion in taxes, which is a figure higher than the original conservative collection estimates of P7 to P10 billion. (These are hard times, however, and taxpayers might decide to keep their money and "take their chances" with the BIR -- instead of spending more to take advantage of the Tax Amnesty deal).

When asked about whether the current stock exchange crisis would adversely affect business and sharply reduce tax collections, Fonacier held his head in his hands but expressed the "hope" that it would not.

With regard to the supposed capital gains tax liabilities incurred by those who engaged in BW Resources stock activities, Fonacier stated that he had formed a team or task force, composed of all four deputy commissioners of the BIR to investigate such tax liabilities, depending on the current situation. For instance, he noted, if there had been P10 billion in profits taken, liabilities could come to P1 billion, etc. He referred any further queries to Deputy BIR Commissioner Romeo S. Panganiban, who had been in the agency 38 years but, unfortunately (he added) is retiring next May.

The forum was attended by many interested officials and businessmen, including Chairman Eufemio "Fem" Domingo of the Presidential Commission Against Graft and Corruption, former Budget Secretary Salvador Enriquez, Jr., of the previous FVR government, Chairman Dante M. Lantin of the Land Transportation Franchising Regulatory Board (LTFRB), retired BIR Deputy Commissioner and Club Filipino Chairman emeritus Fortunato Aguas, Jose G. Araullo, managing partner of the auditing firm of Punongbayan and Araullo, STAR Columnists Boo Chanco and Nelson Navarro, several BIR officials, and the regular club members led by Chairman Leo Owyong.

Fonacier said he had been meeting, one on one, with the collectors and directors of the BIR and urging them to exert greater efforts in expanding collections and the revenue base.

There are 12,000 BIR officials and personnel, he noted. He impressed his audience with his forthright answers to their questions, and his air of quiet but sincere humility. He said that his five-year stint as Undersecretary of the Budget had helped him immeasurably in understanding the demands of his new job.

"Nobody has interfered with the BIR," he assured his listeners Wednesday, "I haven't received a single phone call from anyone interceding on any issue, not even from the President himself or Secretary of Finance Pardo who is my immediate boss." Perhaps, Daky, it's just that your phone is out of order.

THE ROVING EYE . . . Next Wednesday, incoming SEC Chair Lilia R. Bautista and "outgoing" SEC Chairman Perfecto "Jun" Yasay will both appear as guests in the Greenhills Walking Corp. forum at the Ristorante La Dolce Fontana. That should be an interesting interplay and bull session . . . On March 22, Vice President Gloria Macapagal- Arroyo (GMA herself) is scheduled to be guest of honor at the same Wednesday forum. The only cloud on the horizon with regard to this sure-to-be "jampacked" appearance is the fact that the Vice President is scheduled to leave for the People's Republic of China, via Hong Kong, late that same morning. We hope La Gloria will be able to discuss her views -- and plans for the future . . . Quote of the week: "Life was a lot simpler when what we honored were father and mother rather than all the major credit cards" (attributed to Robert Orben).