‘Brod’ is thicker than water

A Spybiz Ear-spy privy to the details of a consultancy contract in a government mass transport project revealed that the agency in charge is bent on awarding the contract to a consortium declared as the only one "eligible." However, the only eligibility of this group that supposedly qualified rests on a mere "minutes" of a board meeting instead of a board resolution or a secretary’s certificate from its foreign-based parent company authorizing its local representative to participate in the eligibility process. Curiously, all the other interested parties were allegedly declared ineligible for a variety of reasons, like the lack of the required board resolution or secretary’s certificate. Very special accommodation was evidently accorded to this so-called "eligible" consortium. To cover up the alleged favoritism, the agency in charge subsequently declared three other bidders eligible even if one of them did not even ask for a reconsideration, while the other did not have the necessary experience required in handling the said project. According to Ear-spies, the Bids and Awards Committee’s perceived bias towards this "eligible" consortium could probably be explained by the fact that the BAC chairman and the consortium’s top honcho both belong to a fraternity at a well-known university. It must be a case of ‘brod’ being thicker than water.

CDC: Back to square one after 8 years

It looks like it’s back to square one for the Clark Development Corp.’s attempt to privatize the 215-hectare Mimosa Leisure Estate following the revocation of the award of contract to a Korean-Filipino joint venture. This is strike two for CDC, whose first attempt at a bid two years ago failed because the winner allegedly submitted false claims. We’re disappointed, CDC president and CEO Antonio Ng reportedly said of this latest episode — and so are the numerous creditors of Mimosa who have been waiting for close to eight years for the satisfaction of their claims, among them CCA Holdings B.V. Spybiz sources disclosed that CCA Holdings has hired topnotch international lawyers to file a suit before the International Court of Justice against CDC officials, particularly director Benigno Ricafort for the latter’s declaration that only Mondragon’s four creditor banks were secured creditors whose claims have been considered in the minimum bid of P1.65 billion submitted by erstwhile winner NTM Jin Hung Corp. CCA lawyers claimed Ricafort misrepresented the facts and prejudiced the claim of their client, amounting to approximately $1.68 million as of November 1999. CCA Holdings’ claim was registered and communicated to CDC, with former CDC president Emmanuel Angeles acknowledging its merit and validity in an April 26, 2004 letter. Insiders said the latest debacle in the long-running Mimosa saga has turned off several interested parties. If CDC pushes through with another bidding and it fails again, it would be strike three, sources opined.

World Population Day marked today

Family planning advocates led by Cyndy Tan-Jarabata, founder and president of Advocates for Youth, are celebrating World Population Day today at the UP Diliman Film Center with the theme "Pinoy Youth Empowerment for Health and Development" — which is rather ironic considering that the Department of Education suspended its sex education pilot programs. According to Jarabata, of the country’s projected total population of 86 million, some 16.5 million are youth between 15 to 24 years old. Many are at risk for pregnancy, abortion, sexually transmitted diseases and other reproductive health problems because of ignorance, compounded by the fact that there are no services to help them. Jarabata contradicts several myths, saying sex education of the youth should not only be the responsibility of parents but a joint undertaking with the school and community. Kids are spending more outside the family, and in many homes, the subject of sex is taboo with parents still uncomfortable discussing it. Interestingly, findings by the WHO and the Joint UN Program on HIV/AIDS revealed that adolescents connect better with peers, underscoring the need to train and equip peer counselors with sound and evidence-based information on the issue of reproductive health. It’s not true either that educating the youth would only lead to promiscuity, Jarabata stated, citing a 2005 study by the Family Health International which revealed that responsible and safe behavior can be learned.

Insurance industry’s billion peso game

Finance Secretary Margarito Teves recently signed Department Order No. 19-06 upon the recommendation of Insurance Commissioner Evangeline Escobillo increasing the minimum capitalization requirements to P1 billion for new life, non-life, and reinsurance companies and those to be rehabilitated. On the other hand, new reinsurance companies will need P2 billion in capitalization, paid in cash, with 50-percent paid-up capital and the remaining portion as contributed surplus not less than P400,000. Life or non-life insurance companies under conservation, receivership or for liquidation may be rehabilitated with a net worth of P1 billion with at least half in paid-up capital and the remaining in contributed surplus of not less than P200,000, while the figures are double for reinsurance companies under conservation, receivership, or liquidation. Escobillo had announced her plans on increasing the capitalization requirements of extant life and non-life insurance as well as reinsurance companies, leaving many to wonder if the raise will be on the same level as in the recent order. By increasing capitalization on an industry-wide scale, the IC can easily justify its action and do its mandate of making certain that premiums paid by the insuring public is adequately funded. However, a major downside is that only the big boys will be allowed to play in this billion peso game while the mid to smaller-sized companies would have to either merge, sell-out or close shop leaving a number of office workers and their families with a bleak future.

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