Why PCC went against Dennis Uy

For the Philippine Competition Commission, the government’s anti-trust body, nobody is above the law. It doesn’t matter if you’re perceived to be a staunch ally of President Duterte and part of the Davao cabal of businessmen close to the President.

So just when some industry sources observed that businessman Dennis Uy seems to be breezing through the PCC, the commission surprised the public last month when it declared as null and void a transaction by Uy’s Udenna. It was the first time the PCC issued such a ruling.

The PCC ruled that Udenna Corp. failed to notify the PCC of its 2016 transaction with KGLI Coop. The transaction involved KLGI Coop’s sale to Udenna of all its shares in KGL Investment B.V., a company that partly owns Negros Navigation Co. (Nenaco), which in turn, majority owns the 2GO Group at the time.

This was in stark contrast to PCC’s favorable and swift decisions on transactions that involved Uy’s companies – Chelsea’s acquisition of Starlite Ferries and Udenna’s purchase of Clark Global City.

Uy, one of the country’s youngest and most successful businessmen, is a known supporter of Duterte and a close friend of Bong Go.

But while the low-key and media shy Uy does not brag about his links to the President, Duterte himself sees nothing wrong with it.

During the 10th listing anniversary of Uy’s Phoenix Petroleum, Duterte went to the Philippine Stock Exchange to grace the grand ceremony. Duterte also earlier appointed Uy as the presidential adviser on sports.

But for the PCC, the law applies to all. Lawyers from within and outside the commission agree that Udenna indeed made a mistake, leaving the PCC with no choice but to rule against it, based on a complaint filed by Negros Holdings, the parent company of Nenaco.

It later on withdrew the complaint it filed against Udenna, but it was too late. PCC’s investigation had already commenced.

Industry sources said that in fairness to Uy and Udenna, the failure to file a notification was an honest mistake. There was no intention to skirt around the law.

Over breakfast recently, the no nonsense and highly esteemed chairman of the commission, Arsenio Balisacan explained that there was nothing political about the decision on Udenna or with any other decisions of the commission.

In fact, he pointed out, the Duterte appointee in the Commission, Commissioner Amabelle Asuncion, voted to void the transaction while the Aquino appointee, Commissioner Stella Quimbo was the one who dissented.

Balisacan said the commission is composed of some of the country’s most brilliant minds who study every case before coming out with a decision.

“Our meetings are like a thesis defense,” Balisacan said, adding the commission spends hours grilling the M&As group before arriving at a decision.

In short, Balisacan said, the PCC is merely implementing the law.

My sources said Uy’s camp may just file a notification, which Balisacan said is the most logical thing to do.

Uy declined to comment on the issue. But I’m sure that with his business acumen, he will get through this.

But for sure, businesses can learn some lessons here. They should know by now that they can no longer ignore the PCC because if they do, it will surely be a thorn on their side.

FEU Group of schools closing two Roosevelt schools

Parents of Roosevelt students are wondering what’s happening with Roosevelt College Inc. (RCI).

In a March 1 letter to parents, RCI president Michael Alba said management has decided to close two campuses, Roosevelt Cubao and Rizal, starting next school year.

“The break will give us time to develop plans for the campuses that would best serve RCI’s education mission,” Alba said.

Parents suspect there may be something more behind the development plans for the campuses, industry sources told me.

Some suspect FEU may convert the properties into a commercial area. Roosevelt in San Mateo, Rizal is strategically located not far from the San Mateo Municipal Hall, while Roosevelt Cubao is also in a good location not far from the Araneta Center .

Only management knows for sure what’s in store.

But for the parents and students who have been with the school, this is a very sad development.

They’re hoping it’s not all about money.

FEU took over RCI in 2015. At the time, RCI had five campuses: Cubao, Rodriguez and San Mateo in Rizal, Cainta and Marikina.

Iris Gonzales’ e-mail address is [email protected]