Lucio Tan Jr. Dies

Miguel Camus, Philippine Daily Inquirer

November 11, 2019

PAL Holdings president Lucio Tan Jr. dies

PAL Holdings president Lucio “Bong” Tan Jr.

MANILA, Philippines — Lucio Tan Jr., president of airline operator PAL Holdings Inc., died Monday, his sister Vivienne Tan said in a statement. He was 53.

No cause of death was cited but Bong, as he was called inside and beyond the boardroom, was hospitalized Saturday after collapsing unconscious during a basketball match in Mandaluyong City. He was rushed to a nearby hospital and declared in stable condition.

“It is with deep sorrow that I announce the passing of my brother, Lucio ‘Bong’ Tan, Jr. this morning, November 11, 2019,” Vivienne said.

“His untimely passing leaves a big void in our hearts and our group’s management team which would be very hard to fill. Bong was a son, husband, father, friend and, most importantly, our elder brother whom we all relied on for advice, counsel, and leadership,” she added.

Tan is survived by his wife Julie and sons Hun hun (Lucio Tan III) and Kyle Tan.

“Our sincerest thanks to all who offered prayers and shared words of comfort during this hour of grief. Our family continues to request everyone to respect our wish for privacy as we go through this very difficult time,” Vivienne said.

Tan is the namesake son of taipan Lucio Tan, one of the country’s richest individuals with a fortune valued by Forbes Magazine at $3.4 billion.

The younger Tan’s death comes as he was taking on larger responsibilities within his father’s sprawling business empire in line with the family’s succession plans.

Last October 28, he was named president and chief operating officer of PAL Holdings, which owns Philippine Airlines, one of the group’s crown jewels.

He was overseeing a plan to reverse years of losses at PAL, which had lost market share to aggressive budget airlines apart from difficult operating conditions and volatile fuel prices.

In an interview last August, Tan said PAL plans to further cut costs and tap more online bookings in a bid to return to profitability by 2020.

“In every rehabilitation, it gets ugly first before it gets better,” he said.

Tan was also a director of the family’s main holding company, the $2.8 billion LT Group Inc., since 2003.  He held key positions in many of its subsidiaries, which include Philippine National Bank, Tanduay Distillers Inc., Asia Brewery Inc., Fortune Tobacco Corp., and Eton Properties Philippines Inc.

Tan was educated in Manila, Singapore, China, and the United States, where he earned a degree in Civil Engineering from the University of California, Davis and a Master of Business Administration from the Kellogg School of Management of Northwestern University.

Tan was known basketball enthusiast, often organizing company sporting events where he played alongside and against employees. In September, he was named coach of the basketball team of the family-owned University of the East.

Tan’s passion for sports started at a young age.

He was a  member of the national swimming team at the age of 12 and he took up table tennis during his High School years in Singapore, where his father sent him amid rampant kidnapping cases at the time, according to a 2016 profile by the Inquirer.

Basketball was easily his favorite sport and he relished taking on player younger, taller, and faster than he was.

“I can beat them by experience,” he said in the Inquirer profile.

Tan said he peaked in his 30s when he could score an average of 100 points. Up until his 40s, he could play two to three games a day.

“Basketball is the best exercise for me. I like the sweat and the intensity. I enjoy the camaraderie with the team which I lead. You can look at it from any angle—fun, a test of skills or a mind game like chess,” Tan said. /kga

Bill to change name of Camp Agunaldo to Camp Antonio Luna (who was killed on the orders of Emilio Aguinaldo)

Luna aguinaldo


Inggo De Guzman (author)

This list is very incomplete. There are hundreds of such incoherent and even self-contradictory, self-inculpating LIES about Bonifacio that I have encountered and documentarily refuted in my three thousand pages of published work on what I call the NEW HISTORY of the Philippine Revolution, the latest of which being the two volumes (1076 pages) of my RESCUED HISTORY, which came out in the US in 2018 together with my first selected poems, TRYSTS, ELEGIES AND REVOLUTIONS (358 pages),which may be ordered through AMAZON.COM

{not to mention some two thousand pages of journal articles and magazine (Phil. Progressive Review, The Review, WHO Magazine…) and newspaper (Malaya, Phil. Journal, etc.) columns across 25 years. Many of these lies were manufactured by Emilio Aguinaldo himself–the unspeakable coward and counterrevolutionary traitor and vendor of the Revolution (twice–to the Spaniards and then to the Americans, to consummate which vendings he had to murder at least 12 Filipino generals who opposed them, including Andres Bonifacio himself and his two brothers Ciriaco and Procopio, and, yes Antonio Luna and Gregorio del Pilar, but also the Nueva Ecija general who invited him to hide in his own Biyak na Bato stronghold, Mamerto Natividad…), In the majority of which I have documentarily demonstrated that the crimes, the errors, the evil traits and acts he was accusing Bonifacio of,were actually committed by or belonged to none other than him, Emilio Aguinaldo himself! (I will relate a number of these tomorrow–my wifi is faltering)///The most serious of these crimes was of course the counterrevolutionary one of TREASON, sometimes called “diivisiveness” (as does this arrogant nameless almost inexistent, workless, bookless, tergiversating, self-insinuating perseverator “Tomy Matic IV” here–who he?) and “factionalism” by such as Aguinaldo’s nephew Teodoro Agoncillo, and the Aguinaldo apologist and Marcos Martial Law crony from Tarlac, Onofre D. Corpuz … In my abovementioned works but most exhaustively in the two-volume RESCUED HISTORY, I have EXHAUSTIVELY DOCUMENTED and definitively established that the divisive, factionalist and truly treasonous because counterrevolutionary TRAITOR FROM THE VERY START was actually Emilio Aguinaldo, who refused to obey Bonifacio’s and the Katipunan Revolutionary Government’s Supreme Council’s order to attack his own Kawit presidencia (muncipality) on the night of August 29, 1896, and who two days later on August 31, instead declared the formation of his own government and army and was recruiting all the mayors of Cavite to join him. Then, barely a month and a half later,In October 1896, Aguinaldo in a second manifesto declared the establishment of his socalled IMUS REPUBLIC,”complete with a constitution” plagiarized for him from the Maura Law by the ilustrado traitor and Rizal-friend, Edilberto Evangelista; and then on December 30, 1896, in the socalled IMUS ASSEMBLEA MAGNA,, he first attempted the same coup d’etat and overthrow of the Katipunan Revolutionary Government and its replacement by his own IMUS REPUBLIC–this was the same coup d’etat and all-Caviteno conspiracy that finally succeeded to do the same in Tejeros, the culmination of which was the murder of Bonifacio himself.–and of course the SALE, the SURRENDER FOR PAY, of the Revolution for 800,000 pesos plus 2 pesos per rifle turned in at BIYAK NA BATO.

Bill seeks to rename Camp Aguinaldo to Camp Antonio Luna
Delon Porcalla (The Philippine Star)

August 26, 2019

MANILA, Philippines — A senior administration lawmaker has filed a bill at the House of Representatives that seeks to rename the main headquarters of the Armed Forces of the Philippines from Camp Emilio Aguinaldo to Camp General Antonio Luna.

House Bill 4047 of Surigao del Sur Rep. Johnny Pimentel also seeks to amend Republic Act 4434 or the 1965 law that changed the name of then-Camp Frank Murphy to Camp General Emilio Aguinaldo.

He issued the statement on today’s occasion of National Heroes Day.

Pimentel, former chairman of the House committee on good government, noted that the feisty Luna has been “described by historians as the most brilliant and capable of Filipino generals during the Philippine-American War.”

Luna, who was only 32 years old then, was chief of staff of the Philippine Revolutionary Army for 134 days during the Philippine-American War until his brutal assassination on June 5, 1899.

“We are counting on our bill to rouse all Filipinos, especially soldiers across the three branches – the Army, Air Force and Navy – to emulate and live up to Luna’s positive qualities, particularly his strong love of country and exceptional skills,” he added.

Pimentel, however, clarified that his Antonio Luna bill will “in no way seek to reduce Aguinaldo, the first President of the Philippines, and the Chief of Staff of the Philippine Revolutionary Army after Luna’s assassination.”

“Aguinaldo has been fittingly honored over the years, especially with the 41.4-kilometer Emilio Aguinaldo Highway,” he said, referring to the network of primary and secondary public roads passing through the busiest cities and municipalities of Cavite.

Luna had been widely credited for bringing “guerrilla warfare” into play way ahead of China’s Mao Zedong and Vietnam’s Ho Chi Minh and Vo Nguyen Giap, the Mindanao lawmaker pointed out.

He also cited Filipino revolutionary leader Apolinario Mabini’s estimation of Luna, which goes: “If he was sometimes hasty and even cruel in his resolution, it was because the Army had been brought to a desperate situation by the demoralization of the soldiers and the lack of ammunitions: nothing but action of rash courage and extraordinary energy could hinder its dissolution.”

Luna was hailed even by the best US military officers during the Philippine-American War.

Pimentel also mentioned James Franklin Bell, a US Army captain, who said that Luna “was the only general the Filipino army had.” Bell received the US Medal of Honor for actions during the Philippine-American War. Bell later became chief of staff of the US Army.

Congressman Pimentel cited Frederick Funston, a US Army colonel, who called Luna “the ablest and most aggressive leader of the Filipino Republic.” Funston was promoted to brigadier general for cleverly engineering the capture of Aguinaldo in Palanan, Isabela.

Funston also received the US Medal of Honor for actions during the Philippine-American War, and later rose to major general of the US Army.


POLL SURVEY – Rapist murderer Mayor Sanchez for release. Vote for your choice and be counted. Maraming salamat po. Mabuhay ang Pilipinas.

Mayor Sanchez POLL. Bulukin? Palayain?  Mga kaDDS, ano po ang say ninyo tungkol sa pagpapalaya sa MANGGAGAHASANG MAMAMATAY taong si Sanchez na nahulihan pa ng MARIJUANA at SHABU habang nakakulong? Attendance po tayo. Nasaan kayo? Taga saan kayo?

sanchez nosanchez bato 2nd chance



Mining and logging industries AT PEACE with Gina Lopez DEMISE

The death of environment warrior Gina Lopez has elicited praise and admiration for her passion in her fight to protect Mother Nature. Even Congressional personalities, both Senators and Representatives, sing to the high heavens about her stint as Department of Environment and Natural Resources Secretary, when she held big business by the balls, enforcing laws, policies, rules and regulations that would have meant the closure of erring, and there were many, mining and logging companies. Few , if any, among the lawmakers mentioned how the Commission of Appointments, which they manned dealt the death blow to her short, but spectacular, stint in public office.

If she had not been infirm, she could have run for senator in the recently concluded midterm elections and may have won and taken her seat in the Senate as a nationally elected official whose stay in office would not be subject to the whims of an appointing power or the Commission on Appointments. Then 2022 could have propelled  her to higher office or the next President could appoint her back the the DENR (again to face the Commission of Appointments).

Alas, fate had to intervene to snuff the life of a dedicated and effective former Secretary when there are hundreds of corrupt officials who should have departed the world in her place.

So it is business as usual for the companies that denude our forests, flatten our mountains and poison our air and water. The drive for corporate profit continues at the expense of our future but there would no longer be a Gina Lopez to speak for us so we might as well get used to the idea that we have to fend off for ourselves.


DILAWANG Joy blasts Bistek, DDS counterattack

qc 2016 bistek joy yellows

Pinangalanan ni Quezon City Mayor Joy si dating Mayor Bistek na dati niyang kaalyado na sumuporta daw sa kalaban sa nakalipas na halalan. Sa kathang isp ni Mayora, sinasabotahe daw siya ng mga loyalista kay Herbert na nananatiling nasa City Hall.

  • Virgie Piocos hehehehe itsura palng ng gusto nyong maging mayor ng QC malamya n ano p b ang aasahan nyong kilos di mabagal din
  • Revilo Ellav de p*** yan ..kung sinuwerte ang lungsod ng maynila at may yorme kois sila …na alam kung anu ang gagawin sa lungsod …. ang kyusi naman ..mukhang minalas ..matapos ang terminong ng walang silbi ..parang ganun din ang pumalit ..kyusi.gising hoy !!
  • Ernesto Cadiz Ganyan ang ugali ng mga dilawan instead na ayusin at ilagay sa tamang lugar ang mga pasaway ay kinukonsinti nila pr makuha ulit nila ang boto ng mga pasaway na yan….kaya laging magulo ang bayan dahil sa puro pumumulitika ang inaatupag.
  • Top Fan
    Ephraim Pasion QC????tulog un mayor namin..hwg kyo maingay dyan..
  • Rachelle Mae Hanggang ngayon madumi padin qc. Mas nakakatakot na xa kesa sa manila!! Kayang mangampanya sa laki nang qc. Pero di magawa nang maayos ang trabaho pag asa pwesto na.tsk!
  • Aramaj Oravla Kung pde lng hatiin nlng sa dalawa ang qc. Para nmn my kwenta kung sakali ung isang magiging mayor. Wla na eh wla ng ititinu ang qc sa mga kuko ng belmonte.
  • Gem Z Santillan Tandaan sa election yan!! Kapartido OCHO DERECHO KAYA FLUSH SA ENEDORO JOY BELMONTE
  • Arturo Talili Simula pa noon layunin na ng liberal na sirain ang bansa para magdusa ito habang buhay. Protectahan nila ang kasamaan at magkunwari na kakampi sa kabutihan. Ubud ng kasinungalingan ang mga yan
  • Arnold Sangalang Alaga po nila ang mga squatters dyan sa QC dyan po sila kumukuha NG boto pano po nila paaalisin Yan eh alaga po nila Yan sayang ang boto NG mga epal Nayan
  • Yanyan Salinog kawawang QC napugaran ng mga inutil na politico
  • Brian See Hindi pa naka kota kaya bumabawi pa sila sa ginastos nila noong election.
  • Al Aris Huwag na iboto sa sunod na election kasalanan ng mga naghalal iyan ngayon ngaw ngaw ng ngaw eh sinu maykasalanan kumuha lang ng maso pok pok sa ulo tiis kayo gusto niyo na walang pagbabago eh , Pero hindi rin magtagal mga ganun dahil karma din iyan kasama mga humalal sa kanila dahil hindi pabayaan ng Du30 administration na mag hariharian mga salot na mga ganiyan mamalasin iyan.
  • Susie Edgar Padilla nakaw muna pra mabawi ang ginatos nya noong nakaraan kapal ng mukha ang ama nya wla nman nagawa nakaw lang alam sa Q CITY
  • Moses Cagampang Sumaoy She’s only famous to LGBTQ
  • Josh Razon Incompetent ang naging mayor ng QC, di ko nga binoto yang si babalina dahil alam ko nung vice pa lang sya na walang binatbat yan
  • Shirley Escabarte Romano Tagal ng yellowgarbage…kaya ung garbage sa vicinity nila sang damakmak kuda lng kuda si mayora. Magtrabaho ka nman!
  • Cezar Arcega Makakarelate mga tiga QC dito
    mga trapo mga nging mayor nyo QC ang alam lng gawin mglagay ng initials s mga poste at signage ung matanda SB ung bansot HB abangan nyo QC JB inuukit n 😀😁😄
  • Carlo Lagazo Kung Hindi nyo sinuportahan yan edi sana di nanalo yang dilawan na mahaba Ang baba na yan!
  • Danny Argawanon sangayon ang laki ng inagbago ng ating bayan mula c presedinte duterte ang umopo gumanda ang pinas at nasogpo ang iligal drug mahuy ka presedint
  • Isko Cabian Pu****ina nyo dapat maubos na kayong mawala na mga TaengDilaw Syndicate sa politiko mga salot traydor terorista kahirapan Lang ang makakamtam ng Pilipino sa mga Putangina mga ito
  • Shi Estrada Tayco Mga tao ng QC anu pasalpak pa kau ng pera para bumuto sa bulok na mayor nyu puro paganda ng sarili lang ang alam puro basura naman ang bayan…
  • Danny Argawanon Kong para sakin dapat mag sipag at gawin ang ikakabuti sa ating bayan at lugar na malinis dito po Quezon city patuloy ang pag lilinis sa mga kalye na may mga naka habalang iligal parking padat talaga matangal na paking. taga Quezon city din kc ako.
  • Ryan Rogs B Ramos Wala na Yan, Laos po. Dati sila Ang president, puro kasiraan NG future sa kabataan naging adect Ang mga Bata. And pray Tayo sa ika but I NG atin bansa at future ng mamayan. God bless Philippines..
  • Marc Barlisan Santos Di ba kasamahan nyo yan last election mga HP
    Bakit kasi nag adopt pa kayo ng tulad nyan
  • Ramon Valencia Alam na kung ano ang dapat gawin sa susunod na election…
  • Jovie Guban Hatiin nlang QC pra hindi mhirapan at ang novaliches ay ihiwalay na pra magkaroon nrin ng sariling mayor..
  • Rhaff Rhod Malinao Tinitira ng hugpong ngaun, pero inindorso ninyo nung eleksyon..
  • Rique Flo Relax lang mga taga qc mayor nga natin RELAX NA RELAX lng kaya ganun din dapat tayo🤦🏻‍♂️🤷🏼‍♂️🙄🤪😂🤪😂😂😂
  • Rebecca Balgos Wow si mayora joy gsnda ng ngiti..
  • Dannie Gabriel Dilawan yan kay girl sisi pareho ni pnot boy sisi
  • Lola Pam one term only for sure
  • Freddie Morandez lugar nga nya di nya maayos ayos daming basura sa gabi daming nakapark sa gabi pano nya malilinis tamad mag ikot amputsa
  • Carlo Lagazo Sinuportahan nyo kasi yan kaya nanalo. Ikinampanya pa ng tatay mo!
  • Kikay Azarraga bakit ganon mayora ng QC dami nang umaangal sa trabaho mo hindi ka pa matinag
  • Joel Anoran Ang QC.ang may punakamataas n tax.dahil minsan narin ako naging taxpyer ng QC.wala naman nakkitang project..
  • Roger So Tiu Corruption doon magaling c Belmonte
  • Noel Joey Musni Basta dilawan ” palpakski, parang ung taga pasig!, puro SISI , tatak dilaw”,!!
  • Eugenio Arreglo Deretso automatic sa iniduro pa rin.Hahaha 🐺
  • Jose Hila Calibod Crisologo nman kc binoto nmin d2 sa kyusi
  • Zenky Zenky wla nmn tlg kwenta meyor dito ssmen lge lng yan nsa aircon election lng yng lumilitaw…puro lng yng pasarap sa gobyero…
  • Odnalor Betito Mga polpol yan walang wala sila sa manila ni Mayor Esko
  • Arnel Bautista tabingi na mukha..kksuyop..
  • Ferdz Amada dilawan pala si mayora.!
  • Miko Palabasan Laging tulog si mayora beauty rest daw sia
  • Juday C. Valdez yellow is always yellow nagpapalit lng ng balat pansamantala pero babalik ulit sa dating kulay
  • Agustin Cordoba Huwag iboto sa susunod na eleksyun.
  • Nerfe Acuraad Mag isa kayo mga dilawan
  • Regor Sabado Mga TAEng kulay DILAW….😂😂😂😂😂
  • Peter Fred Lee sa totoo lang poor in governance at poor in performance mga dilawan.
    Dindo Ballano Ngaun nag sisi kayo.. Eh kung ung binoto nyo si bing bong di maganda sana..


PhilHealth corruption, incompetence, amateurism and inefficiency KILLING hospitals, private and public

In the three years of the Duterte Administration, there has been a number of top executive and board changes in PhilHealth which indicates the inability to put honest, competent and visionary personnel to manage the state run national health insurance system. Patients, hospitals and physicians bear the brunt of PhilHealth anomalies, quirks and idiosyncrasies. Patients lose their lives for lack of basic medicines and diagnostic tools brought about by hospitals unable to replenish much needed pharmaceutical products or repair x-ray and ultrasound machines due to lack of funds as billions of pesos are locked in PhilHealth time deposits and unreleased to service providers because of convoluted, often changed, mazes to effect reimbursement for hospitalizations rendered ages ago. Even the accounting treatment of amounts payable to hospitals and physicians is HUGELY UNDER REPORTED since PhilHealth is the accuser, judge and executioner in terms of whether submitted claims should be rightfully paid by PhilHealth or not. In other words, filed claims still undergoing evaluation and/or appeal are not considered as ACCOUNTS PAYABLE thus effectively hiding large amounts of indebtedness to hospitals and physicians from their books. Considering PhilHealth has been with us for decades, BILLIONS of PESOS due service providers have been largely unrecognized and ignored. The last few years has seen the transfer of ownership of many big private hospitals from their original physician owners to corporate hospital chains that will only lead to increased hospital rates. PhilHealth largely contributed to the decision to sell out on the basis of mounting receivables and diminishing cash for badly needed rising personnel costs and inability to upgrade facilities and diagnostic machines.


Mounting PhilHealth payables hurting hospitals, says exec demanding P204M

By: Marlon Ramos – Reporter
Philippine Daily Inquirer
August 13, 2019

MANILA, Philippines — Unpaid obligations of Philippine Health Insurance Corp. (PhilHealth) have financially weakened many private hospitals in the country, including Chinese General Hospital and Medical Center (CGHMC), according to Dr. James Dy, president of the private hospital.

In a letter to PhilHealth branch manager Henry Almanon on July 17, Dy said the state insurance firm owed CGHMC P204.6 million for the medical services it provided to PhilHealth members from April to June.

In a text message to the Inquirer on Monday, PhilHealth acting president and chief executive officer Ricardo Morales declined to comment, saying he had yet to see Dy’s letter.

“Have not received this letter. Can’t comment yet,” Morales said.

Due, demandable

Of the total unpaid amount, P61.7 million was already “due and demandable” since the hospital had already complied with all the documentary requirements imposed by PhilHealth, according to Dy.

“The very poor collection from your office… results in financial debility not only of our hospital, but for most private hospitals in the health industry,” Dy said in the letter, a copy of which was obtained by the Inquirer.

“[Since] the medical services on this claim had long been served, it is grossly unfair for the state insurance system to put the financial burden of public health care on private hospital institutions, and then leave us hanging for months and years on end just to get paid,” he said.

Senate probe

He submitted a copy of his letter to Sen. Bong Go, chair of the Senate health committee, and Sen. Richard Gordon, chair of the blue ribbon committee, who will jointly head on Wednesday a legislative inquiry into irregularities in PhilHealth.

In a dialogue in May, Dy said PhilHealth officials had promised CGHMC to settle the debts within 10 days, but they failed to keep their word.

PhilHealth, a government-owned and -controlled corporation mandated to provide social health insurance to Filipinos, has been under the microscope after the Inquirer published a series of investigative reports on the alleged massive corruption involving its officials and unscrupulous owners of private health facilities.

In a privilege speech on July 29, Sen. Panfilo Lacson claimed PhilHealth had already lost as much as P154 billion to overpayments and other fraudulent schemes.

Lacson said the state insurance company was financially ill as it suffered a net operating loss of P29.1 billion from 2013 to 2017 due to fund mismanagement and corruption.

In his letter, Dy pointed out that the delay in PhilHealth’s payment “negatively impacts the provision of quality health care” for Filipinos.

Citing hospital records, he said PhilHealth paid a measly P14.9 million to CGHMC for the medical services it rendered from June 14 to July 17.

But this amount, he added, was just 7 percent of PhilHealth’s total unpaid obligations to the hospital.

He said PhilHealth’s latest filing system necessitated the hospital to have another program and “reprocess” all the forms it had submitted for insurance claims worth P142.9 million.

Moreover, he said, PhilHealth had sent back collection forms to CGHMC “based on unsubstantiated reasons,” such as the unreadability of statement of accounts. 


This problem was caused by the “incompatibility” in the electronic processing systems of PhilHealth and its technology provider, Eurolink, according to Dy.

“Any incompatibility on both systems that results in poor readability is beyond the control of the hospital, and hence, should not be blamed on the hospital,” he said.

“Simply put, the hospital should not suffer the adverse consequence of poor data integration from Eurolink to PhilHealth,” he added.

Dy said the passage of the UHC law, which required a budget of P257 billion for the first year of its implementation, warranted the removal of “organizational bureaucracy” in PhilHealth to ensure the timely payment of hospital dues.

He said PhilHealth’s critical role in attaining the law’s goals “will never be realized unless industry-wide collection is improved dramatically.”

“The confidence of the various sectors in PhilHealth’s credibility to successfully implement the provisions of this new law rests on your capability to finally clear away PhilHealth’s transactional backlog,” Dy reminded Almanon. —With a report from Jovic Yee



2.8 BILLION PESOS in unauthorized disbursement involving Priority Development Assistance Fund (PDAF) of congressional members and the Development Acceleration Program (DAP) of the Aquino administration.

landbank bdo bpi meme

Adverse COA findings support Duterte’s misgivings about Land Bank of the Philippines

By Ben Rosario, Manila Bulletin

Adverse audit observations noted by the Commission on Audit (COA) seemed to support President Rodrigo Duterte’s misgivings about the Land Bank of the Philippines (LBP) which he conveyed in his State of the Nation Address on Monday.

In the 2018 annual audit report (AAR) recently released by COA, auditors noted that LBP’s credit card receivables account amounting to P401.92 million as of December 31, 2019.

In the executive summary of the audit report, COA also drew attention to the Financial Statement indicating that the LBP’s Fair Value Through Other Comprehensive Income/Available-for-sale investments account included undelivered 3,366,800 Meralco shares.

“Likewise corresponding cash dividends earned amounting to P403.481 million and P358.446 million as at December 31, 2018 and 2017, respectively and property dividends of 9,488,394 shares of stock in Rockwell Land Corporation were still unpaid to LBP,” the audit agency said.

In his SONA, Duterte scolded the LBP, alleging that it had been focusing too much on commercial operations. As such, the President said the government bank had failed to help the farmers and fisherfolk it was meant to primarily help.

“I will give you until the end of July to give me a plan or else I will ask Congress to reconfigure you or whatnot… if there is no viable plan for the farmer then it is all commercial transaction, I plan to abolish it,” said the chief executive.

The AAR revealed that audit suspensions and disallowances have reached P2,871,717,704.84 that included P2.81 billion in unauthorized disbursement involving Priority Development Assistance Fund of congressional members and the Development Acceleration Program of the Aquino administration.

“The other suspensions and disallowances are payments of benefits and allowances of LBP Board of Directors, officers and employees which were not in accordance with existing laws, rules and regulations,” the audit report stated.

State auditors also took notice of the P164.469 million in past due loans under the Livelihood Loan System and the LBP Mobile Loan Saver that remained uncollected “due to non-compliance with the remedial actions for past due accounts.”

The LBP was warned that this exposed the bank to “possible credit losses.”

“Non-recovery of the loan could also affect the financial performance and deprives the bank of additional funds and the income that could be generated therefrom, had it been timely collected,” COA said.

On its credit card operations, COA disclosed that there have been delays in the recording of payments of Mastercard and VISA amounting to P50.043 million.

This and other operational lapses, the audit agency said, affected the faithful representation of the Credit Card Receivables amounting to P401.929 million as of December 31, 2018 which could not be ascertained due to the General Ledger and Subsidiary Ledger balances aggregating P734.971 million.

In response to the audit finding, the LBP management admitted delays in the reconciliation reports, saying that this was due to the “migration of VISA credit card to MasterCarBusiness Integrated and its subsequent upgrade to Mastercard Integrated.”


FAST FACTS: What you should know about Landbank

(3rd UPDATE) President Duterte threatens to shut down the government bank in his 4th SONA, saying it’s acting more like a commercial bank instead of focusing on farmers and fishermen

August 05, 2019

The President threatened to shut down the bank’s operations. “You are supposed to finance agricultural enterprises and endeavors. Bakit wala? (Why is there none?) Why can’t you just buy a few wagons or whatever? Go to the countryside and ask the people if there are cooperatives, tulungan ninyo (help them) to form one,” he said in his speech.

Since its creation in 1963, Landbank has emerged as one of the biggest banks in the country. Here are some fast facts about the government bank.

1. Landbank’s creation and primary function

Landbank was formed under Republic Act 3844 or the Agricultural Land Reform Code in August 1963. The main function of the bank is to be the financing agency for the government’s acquisition of agricultural estates for division and resale to small landholders, as well as the purchase of the land-holding by the agricultural lessee.

2. It was eventually granted universal banking powers in 1973

Ten years after its creation, Landbank was granted universal or expanded commercial banking powers through Presidential Decree 251 to remedy the bank’s “deficient and inadequate” capitalization and organization structure. Former president Ferdinand Marcos cited the bank’s failure to meet the requirements of the agrarian reform program, so he included granting short-, medium- and long-term loans to agricultural, industrial, home-building projects, and other productive enterprises to Landbank’s powers.

In 1977, the bank underwent a major reorganization and formed 3 main sectors: agrarian, banking, and operations. Today, Landbank’s role is not limited to the provision of credit assistance to farmers and fisherfolk. It is also an implementing agency of the Comprehensive Agrarian Reform Program, as well as an official depository of government funds.

As of July 2019, Landbank has a total of 401 branches and 2,046 automated teller machines nationwide.

3. Landbank now belongs to the top 10 universal/commercial banks in the Philippines

In Duterte’s 4th SONA, in jest, he called Landbank the “number one” commercial bank in the Philippines. “You know, you are called Land Bank but you are now the number one commercial bank in the Philippines. What the heck is happening to you?” Duterte said a little over the one-hour-and-20-minute mark into his speech.

While Landbank is not the leading bank in the Philippines, based on 5 metrics, it is included in the Bangko Sentral ng Pilipinas’ (BSP) top 10 rankings of universal/commercial banks as of March 2019: assets, stockholder’s equity, deposits, loans, and return on equity.

Landbank is the 3rd biggest universal/commercial bank with total assets of P1.9 trillion. Its stockholder’s equity – the amount of assets the bank has minus its liabilities – stands at P136.5 billion, while its total deposits as of March 2019 reached P1.7 trillion – second to the Sy family-owned BDO Unibank’s P2.3 trillion. In the same period, Landbank also had P850.8 billion in its total loans and receivables portfolio.

Meanwhile, the bank’s return on equity ratio stands at 13.25% – only the 8th highest out of the 45 universal/commercial banks listed by the BSP. Return on equity is a known measure of profitability and of how well the company generates income growth by utilizing the equity investments of its shareholders.

4. The Duterte administration stopped the Landbank-Development Bank of the Philippines merger

Former president Benigno “Noynoy” Aquino III signed and approved the proposed merger of the two government banks in February 2016 through Executive Order No. 198. Under this EO, Landbank was supposed to be the surviving entity between the two banks.

EO 198’s goal was to increase Landbank’s capital stock to P200 billion from P25 billion and to strengthen the financial capabilities of both banks while avoiding unnecessary overlaps of their respective functions.

However, the new administration stopped the merger in September 2016, led by the Governance Commission for Government-Owned and -Controlled Corporations (GCG). Finance Secretary Carlos Dominguez III pointed out that the two banks serve different functions: Landbank for the agriculture sector, and DBP, for industry.

5. Landbank’s loan portfolio and its compliance with the Agri-Agra Law

Under the Republic Act 10000 or the Agri-Agra Reform Credit Act, banks are mandated to allot 25% of their loan portfolios for agriculture and fisheries – 10% for agrarian reform projects and 15% for agriculture.

Landbank’s First Vice President for Corporate Affairs Catherine Rowena Villanueva said the combined loans extended to the agriculture sector and the its mandated sector, which includes agrarian reform beneficiaries and their associations as well as small farmers, reached 27.45% of the bank’s total loan portfolio of P799.64 billion as of June 30, 2019.

Data from BSP show that the compliance of universal and commercial banks are way below the minimum amount required, with total compliance for agrarian reform credit only reaching 1.01% of its minimum required amount as of end-March 2019, and only 13.27% for agricultural credit.

But Villanueva said Landbank remains to be the biggest lender to the sector. “While growth of the agriculture sector remained stagnant for the past 10 years, averaging only 1.11%, Landbank’s loans to the sector continued to increase at an average of 10.94%,” she added.

Economist and former socioeconomic planning secretary Cielito Habito argued that Duterte’s scolding is “misplaced” since Landbank is expected to be profitable just like other commercial banks and is still subject to the same rules imposed by the BSP.

“Like it or not, lending in an agricultural sector dominated by smallholders is always risky business anywhere, and even more so in a calamity-prone country like ours. That’s why commercial banks prefer to pay the fine for not complying with the Agri-Agra law, rather than lend the mandated amounts of loans to small farmers and agrarian reform beneficiaries,” he wrote.

Landbank also reported in the 1st quarter of 2019 that its loans to the agricultural sector grew 12% year-on-year to P13 billion. This covers 128,496 small farmers and fishermen.

6. Landbank’s actions to Duterte’s threats

Duterte has been urging Landbank to focus more on the farmers and fishermen even before his 4th SONA. He earlier threatened to look into the finances of the bank in 2018.

A day after President Duterte threatened to abolish Landbank, the bank said it is submitting a detailed report of its plans and programs for farmers. The bank also turned over 354,783 hectares of land to the Department of Agrarian Reform on July 25.

Prior to this, the bank had committed in December 2016 to loan P115 billion to small farmers and fishermen by 2022 – which triples the P37.9 billion recorded that year.  –