Tan, PDIC set to sign term sheet on government takeover of PNB

The state-run Philippine Deposit Insurance Corp. (PDIC) and the group of business tycoon Lucio Tan are set to sign next week the term sheet that will spell out the critical features of government’s retaking control of debt-saddled Philippine National Bank (PNB).

Further more, government is hoping that the memorandum of agreement (MOA) itself that will be the basis for the implementation of the bank’s rehabilitation program will be signed before the end of the year or early next year.

As this developed, PDIC chairman Norberto Nazareno will be stepping down next week as concurrent chairman of PNB to focus on his work as PDIC head.

Nazareno confirmed that the government panel negotiating with Tan’s group, decided to name banker Edward Go as the new chairman of PNB effective next week. Nazareno however, will remain as a director of the bank until such time a new board is installed.

Go, according to Nazareno is an experienced banker, having been connected previously with Global Bank where he was vice-chairman and was also formerly the president of Asian Bank. Prior to this, he was connected with China Bank, Philippine Bank of Communications, Citibank N.A. and Philbanking Corp.

Current PNB president Feliciano Miranda will also be replaced, but this will be done only after the government negotiating panel comes up with a shortlist of candidates.

"We already started developing a shortlist and it is from this list that the group of Lucio Tan will make their choice," Nazareno said.

Nazareno denied reports that among those who made it to the shortlist for PNB president are current board directors Francisco Dizon and Vicente Panlilio.

"We do not have the final names yet, but Dizon and Panlilio will remain in the board until the installation of an entirely new board," Nazareno said.

Both parties agreed to implement major changes in organization and management.

Government is entitled to nominate four members to the PNB board, one independent director and the president. Aside from nominating Go as board chairman, government will also nominate the chairman of the executive committee, chief financial officer, corporate secretary and the deputy general counsel.

Tan’s group will nominate five members to the board, one independent director, general counsel, assistant corporate secretary and deputy chief finance officer.