Biz Buzz: Tycoon’s ‘estranged’ daughter /

The business community was jolted recently when the family of tycoon George S.K.

Ty issued through their legal counsel, Puno Law, a public notice that any dealing or representation made by Margaret Ty

Cham— one of the tycoon’s daughters—would not be recognized by the family or by any of the companies under the group.

For some time now, TyCham—previously affiliated with GT Capital Holdings, PSBank and Orix Metro—had ceased to have any business relationship with the family “of whatsoever nature,” the advisory said.

The law firm added that TyCham had suffered a “completely estranged” relationship with the 84-year-old patriarch, George Ty, the 7th richest in the Philippines (according to Forbes magazine) with an estimated net worth of $3.6 billion, derived mostly from banking, automobile manufacturing and real estate businesses.

“The public is put on notice that any dealings with Ms TyCham are purely on her own account and responsibility,” the advisory said. The same notice disavowing this daughter’s authority was circulated to all companies under the group in recent days.

For things to blow up like this, it’s not a small infraction that the tycoon can just sweep under the rug. To make the long story short (and like the usual story of wealthy families) the conflict is all due to money matters.

What the public notice didn’t discuss—but which people from the grapevine have been hearing for the longest time—was that this daughter had entered into a series of personal financial dealings that flopped and family members had to bail her out. But the external obligations have piled up over the years, becoming more frequent and greater in amount, prompting the tycoon to resort to this mechanism, despite knowing the big buzz that it will create.

One source from the group said the transactions started with a few millions but eventually grew bigger and became a force of habit. Then there were likewise “opportunists” who took advantage of the situation, enticing this daughter with certain deals, knowing that the Tys would come to the rescue if something went haywire. One version is that the lady had only been victimized by a scammer, hence the moneywoes.

This public disavowal is the family’s way of cutting the moral hazard. —DORISDUMLAO-ABADILLA

Entitled gov’t official

An undersecretary seems to be in the crosshairs after she was seen at the airport berating and humiliating a staff member of an airline company for not giving her the special treatment she allegedly deserved.

In a Facebook post, this presidential relative who saw the shocking scene, revealed that this entitled undersecretary along with her “whining” assistant demanded that they be upgraded in the business class for an out of town trip.

Apparently, she even told the airline employee in Tagalog that she didn’t have to introduce herself.

A slip of the tongue from another department official also confirmed the shocking incident, which has now become an open secret in the agency. —KARL R. OCAMPO

‘BPO-unfriendly’

This city in the metropolis is aspiring to be a bigger business process outsourcing (BPO) hub, knowing how this $25-billion industry has created numerous jobs and brought good fortunes to many cities and the overall economy. But this local government unit (LGU)—or at least some people who represent it—triggers the red flags for prospective BPO locators and other investors.

Compared to other LGUs which strive to be a good host to business locators, BPO firms under this LGU oftentimes feel “harassed” by city hall. BPOs enjoy certain tax exemptions when they locate in buildings that are classified as special economic zones or when they register under the Board of Investments. Nonetheless, there are more and more anecdotes about this LGU being overzealous in fault-finding, apparently with the goal of collecting more of those “minor” fees and penalties. The concerns are legitimate, such as: is the site fire safety-compliant enough? Are there enough fire extinguishers? But there’s growing perception that this LGU is going beyond the compliance framework.

As such, this LGU needs to evaluate whether the momentary boost in its coffers is worth the ugly reputation it’s creating.

Incidentally, we’ve heard concerns from other businessmen about the same LGU being too harsh (some say it’s the harshest in the metropolis) when it comes to real property tax assessment. Some businessmen feel that property tax assessment —being tied to the discretion of the LGU than any best-practice metric—becomes exponential every year even when there are no improvements on the property. Yet they lament that social services that these taxes are supposed to fund like garbage collec- tion and security controls haven’t improved. Some say it has become too “insane” or even “ridiculous.”

Any LGU, after all, can opt to be overbearing if they want to (anecdotes of mayors stalling approval of business permits of supporters of political rivals are a dime a dozen). But they can also choose to be the enabler: build a better investment climate and create more jobs for its people, or lose opportunities to other LGUs in this competitive era.

All these lamentations, unfortunately, are just exchanged in whispers rather than position papers. “Everybody just keeps quiet about these things,” one businessman tells us, “Nobody wants to pick a fight with city hall.” —DORISDUMLAO-ABADILLA

Top of the heap

Another Filipino is leading the way when it comes to recognition in the global corporate scene.

Ernest Cu, Globe Telecom CEO, was named a finalist for the “CEO of the Year” category at the World Communication Awards 2017. This is apparently the largest awards event in the global telecom scene.

Cu, CEO of Globe since 2008, has been credited with steering Globe through the ongoing digital transition—betting earlier than its main rival PLDT Inc. that users would rapidly transition to internet services.

This gave Globe a big advantage, helping it gain significant market share.

For the upcoming awards, to be held in London on Nov. 28, Cu is up against Ahmad Hanandeh of Zain Jordan, Alan Masarek of Vonage and Rick Calder of GTT Communications.

The awards were established in 1999 to recognize excellence among global telecom leaders.

In April, Cu was named the Philippines’ best CEO by Finance Asia. In other words, Cu is having a relatively excellent year. The question is: Where does one go from there?

Word among industry insiders is that Cu might be considering other career options, having climbed to the top of his chosen field with great success. While those plans don’t appear imminent, Globe should likely be taking early steps to find a successor. We don’t doubt there is a wealth of talent within, or even beyond its walls. —MIGUEL R. CAMUS ANDDAXIML. LUCAS

‘Blanket support’

The Philippine Chamber of Commerce Industry (PCCI) insists that it supports the government’s first comprehensive tax reform package. We’ve heard that time and again. What we don’t know, however, is which version of the package it actually supports.

PCCI officials were quick to defend the first tax reform package under the Duterte administration in a briefing last week. After all, the package would finally lower the personal income tax although it would increase consumption taxes. However, when asked to categorically state which of the versions they support, there was no definite answer. One official said they supported the tax reform “in general.”

Currently, there are two versions filed in the two respective chambers in Congress. Both would give the government funds for its infrastructure program, a key initiative which many businesses had been suggesting for years. But the difference between the two is glaring.

While they are both watered-down versions from what the Department of Finance (DOF) wanted, Senate Bill 1592 has less taxes, which may be good for business, and yet not so good for a government that wants to generate more revenues. DOF, on the other hand, wants a bill that is closer to the version it proposed.

According to DOF, its version is supposed to generate P157.2 billion worth of additional revenue. In the meantime, the House version will raise P133.8 billion. And finally, the Senate version will produce even less than half of that of the Lower House, raising only P59.9 billion.

There was one board member of PCCI who took a hardline stance though. And it’s not even one of the two choices.

“I prefer the DOF version. The DOF version should be supported in its entirety because that has been planned to support the BBB. If you keep on making exceptions from the original, the [revenue] of the government would not be worth what the DOF planned for,” he said.

This board member is no other than Jose P. Leviste Jr., who is also chair of Oceanagold Philippines Inc. “If you ask me, I am100 percent for the DOF version,” he said. He said the final version of the congressional bill should be closest to what the DOF wants.

The farther a bill goes from the DOF version, the less tax burden it would be on businesses, and even on the consumers. PCCI is supportive. There is no doubt about that. But the question still remains. How close can one get before it gets unbearable? —ROY STEPHENC. CANIVEL