New SEC Policy

New policy over at the Securities and Exchange Commission (SEC) what with the recent appointment of long-time bureaucrat and big-time operator Manuel Gaite as Commissioner, replacing the controversial SEC official Martinez.

FOR BUSINESSMEN, here's the new sign:

SECURE your business by
EXCHANGING some
COMMISSION to us.

500,000 pesos and you'll be okey.

This recent appointment shows you how government regard business and corporate affairs--another money making venture.

On the flipside, maybe Gaite was appointed to this post for another purpose---that of securing the future takeover of Meralco and as a threat to businessmen opposed to Mrs. Arroyo to toe the line or else...

Looming RP financial crisis

Congress just approved the 1.4 trillion peso budget for 2009. About 56 billion were allocated by the government to help ailing industries, companies and economically displaced Filipinos. Calls are, however, being made coming from the Senate and some pre-need companies, seeking for financial help, since according to SEC reports, pre-need companies have some 46 billion pesos worth of outstanding credit. Pre-need companies have just 64 billion pesos, inadequate to satisfy the financial requirements of more than 34,000 Filipino plan holders.

Bad management and bad investments are forcing some pre-need companies to close shop. However, let me warn government---should Congress and Malacanang extend a helping hand to these pre-need companies and rural banks through infusion of funds coming from the enacted 1.4 trillion peso budget, that constitutes a clear violation of the Constitution.

Any infusion of financial calamity or stimulus plan should be submitted to Congress and passed separately from the annual budget. This constitutes a special fund which should not be sourced through the General Appropriations Act.

Likewise, I believe that these reports about pre-need companies are just PR. Pre-need company owners just want to have a slice of public funds by creating this so-called financial mess that they themselves created. If government helps them, it's just like condoning their malpractices which led to the dissolution of their funds. Pre-need companies should not have encountered such a mess if they just did a prudent investment plan.

What is more alarming is the slow rise of bad car mortgages. As more and more Filipinos lose their jobs and OFW's coming home, I heard from a reliable source that bad car loans are starting to accumulate. This will surely affect the existing loan portfolio of banks. Definitely, this will affect large banks since some of their income are derived from interest payments, which are then, re-invested in either medium-term or high-risk investments. With a veritable slump in regional stock markets, how would they re-coup their daily investment losses?

Aside from this, I am quite certain that this year, we will see the rising sub-prime crisis brought by bad property mortgage loans. Last November, government failed to sell bad mortgage loans amounting to half of the 250 billion pesos. SSS is being made to assist the NHMFC, yet, its depleting funds are also a cause of concern.

Government is hiding this thing from us.

Tremors

After the 4.5 magnitude quake which rocked Aurora and Metro Manila over the weekend, a few tremors were felt today in Manila. I noticed that these tremors are starting to increase in frequency, not in strength. Philvocs should explain these things before the public to dispel fears of a big one coming. An email is circulating in the blogsphere about this prediction of a Brazilian "psychic" who recently predicted a big quake to hit the Philippines come 18 July 2008.

I am not big on predictions and I surely can't believe someone who predicts quakes. No one can do that except probably chickens or cats. Animals are known to feel these quakes.

I am more fearful about the economic quakes hitting us than real quakes. I mean, life is getting harder by the day due to the global slowdown.

Malacanang's economic advisers are on the right course with the Noah's Ark proposal. It seems that government is beginning to act like a Robin Hood, promising to give to the poor billions of pesos worth of VAT collections probably to prevent a spillage of dissent to the underground.

Government should realize that the prospect of riots is not far-fetched in the Philippines. It happened at EDSA dos and the May 1 rebellion. We saw the anger of the poor against this government before and without an outlet to vent their anger, disorganized violence could erupt anytime.

It already happened in Cavite, with thousands of angry families marching towards the NFA warehouse, demanding for more rice supplies. This is the fault of the current Secretary of Agriculture Art Yap. He's constantly giving us false info on the true status of our food security. IN this times of crisis, government should be more forthright to us. People would understand if we don't have enough food stocks. I mean, its quite evident that this administration has failed the people several times. And the people are not expecting that much from this administration anyway, so it's better to just tell people the truth instead of giving us false hopes.

I have some proposals to government to at least mitigate the effects of this impending disaster:

1. Government should increase the rate of excise tax especially on sin products.
2. Government should suspend VAT until January 2009.
3. Government should reclaim its stake on oil companies, instead of selling its stake on Petron to a tycoon. This is NOT the right time to sell oil stocks. I don't see any rationale behind this plan to sell.
4. Government should sell non-performing GOCC's now to generate revenues.

Art Yap Did'nt Get it

Agriculture Secretary Arthur Yap was interviewed yesterday on the rising costs of rice. He's surprised why are we complaining when the price of a kilo of rice here costs "only" 35 to 45 pesos a kilo when overseas, he says, a kilo costs an average of 40 pesos. We should be thankful, he says.

Mr. Secretary, that is the most stupid and idiotic statement I have ever heard since the outbreak of this crisis. That, Mr. Secretary, is pure and simple callousness. It shows your lack of understanding of what's happening in this country today.

The issue, as your principal Gloria The Devil Infant says, is an issue of price. Yes, price. Why is it price? Because the average Pinoy can't afford the price of commercial rice, even if its "only" 35 pesos.

One needs at least 3,000 pesos just to eat enough rice for a month. This means that if I'm just being paid 10,000 pesos, I spend 30% of my income just for rice. How about electricity? How about viands? How about transportation? How about house rent? Or, how about the daily baon of my kids to school?

You and the rest of those who belong to the elite class would probably frown at 3,000. It could just be the equivalent of a day's restaurant bill. Or a fancy shoe.

For most of us, it's a struggle to get 3,000 pesos.

You are the worst agriculture secretary this country ever had. You don't know the issue. And you're simply too naive to even think that there's a majority of people right now who can't afford to eat what you're eating. You're simply not cut out for this job. Worst, you even have the gall to put yourself among the roster of senatoriables?

The people are not that stupid to vote a person like you in the senate. Or even in their barangays.