A pre-need firm, the subject of complaints by a group of Manila policemen for its continued failure to pay their claims, blamed the problem on its trustee bank, which allegedly refused to transfer the firm’s trust fund assets to another bank.
In a letter to its planholders dated Sept. 27, 2007, a copy of which was obtained by The STAR, Primanila Plans, Inc. chairman and chief executive officer Eduardo Madrid expressed his desire to pay the planholders their claims for plan termination and maturity benefits.
“However, we have here a situation that has rendered us unable to pay such claims because Wise Capital Investment & Trust Co., Inc. (WISECITCO), our trustee bank, has failed to unlock our trust fund beyond our control and understanding,” Madrid said in his letter.
According to Madrid, Primanila has P46.4 million in a trust fund with WISECITCO.
“This amount plus all interest thereon are to guarantee the delivery of benefits pursuant to Rule 16.1 of the pre-need rules of the Securities and Exchange Commission (SEC),” he said.
Madrid said the SEC en banc approved the cancellation of the trust agreement between Primanila and WISECITCO on Nov. 16, 2006, and ordered the transfer of the remaining trust fund to Asiatrust Bank not later than Jan. 17, 2007. However, WISECITCO “continues to fail and refuse to transfer the trust fund to Asiatrust Bank.”
The STAR tried but failed to get the side of WISECITCO officials.
In the same letter, Madrid appealed to planholders to remain patient until Primanila finds an effective solution to the problem.
In a recent letter to The STAR, Madrid said “we do not have at our disposal the amounts corresponding to the claims of the planholders.”
According to him, the claims of the policemen had already been processed and approved for payment by the SEC through its Non-Traditional Securities and Investments Department, the government agency tasked to oversee the operations of pre-need companies.
The more than 100 policemen who hold Primanila pension plans said they are not familiar with the technicalities involved.
“All we want is our payment which we understood should be given by Primanila. The company is the one who received our monthly contribution, so we expect the company to pay us. The company should settle their problem with their supposed trustee, but should not allow the planholders holding an empty bag,” the complainants said.
The policemen said representatives of Primanila convinced them to get a pension plan with a maturity period of five to 10 years. The firm reportedly offers an endowment of P10,800 for five years, P14,000 for seven years and P20,000 for 10 years. – Nestor Etolle