AN agricultural engineer in UP Los Baños (UPLB) has developed a small-scale corn mill suitable for village-level operation. Engineer Balbino Geronimo of the College of Engineering and Agro-industrial Technology had in mind the country’s small corn-producing villages when he designed the mini corn mill.
In the Philippines, people in certain barangays (villages) plant and consume white corn as their staple food. These barangays are usually in remote areas and thus have difficulty accessing commercial corn mills. In these areas, putting up a large-scale corn mill would cost millions of pesos and may not be cost-effective or even feasible.
As a result, most of the farmer’s white corn produce is traded instead of consumed. The farmer would have to buy milled corn or rice for his family, Geronimo explained.
The mini corn mill developed at UPLB can process corn grains, dried to 14 percent moisture content, at a rate of 91 kilograms per hour. The dried corn grain is loaded into a hopper that puts the grain inside the milling drum. Before the corn grits are passed onto the sieve tray, they are cleaned by a blower.
The grits are then graded by size by the sieve tray, producing grits with sizes #10, 12, and 14. All of the grits, including the produced corn bran, exit through separate outlets and are collected in pails or sacks.
Although only 42 percent of the grains milled become grits, the by-products may also be used for food and feeds, hence, nothing is wasted.
Corn-producing villages to benefit from mini mill
P3-billion loan to pump-prime Davao economy
-Jacinto presents plan to Chamber members
THE P3 billion loan of the city government from the Land Bank of the Philippines is intended to pump-prime the city’s economy. However, it is not only designed to cushion the impact of the expected economic crisis, it is also to prepare the city for the expected upturn of the economy later.
This, in a nutshell, was the explanation of City Planning and Development coordinator Mario Luis J. Jacinto of the city government’s plan to borrow from Land Bank in his presentation before the general membership meeting of the Davao City Chamber of Commerce and Industry, Inc. Friday night.
He said the major items lined up for the P2.8 billion LBP loan are: new infrastructure projects—P841 million; roads and maintenance projects—P754.4 million; phase 3 of the traffic signalization project—P705 million; crematorium and new city cemetery—P50 million; shelter program—P100 million and environmental management program—P395 million.
It is estimated that with 30 percent labor component, these projects will generate 923, 790 days of work.
“At P270 per day for the ordinary worker, this will translate to 2,962 employed persons over 12 months from start of implementation of the projects,” he said.
Jacinto presented what he called “the pump priming wheel” focusing on the priorities of the program, among them the need to increase food production activities, sustaining livelihood generation, increasing infrastructure and development projects “basically for its multiplier effect and the impact on the local economy, on business, on people, on jobs,” and improving human resources for the city to remain competitive.
“The money that will go to the hands of the people will not only upgrade their capacity but also give a multiplier effect to the community they live in as well as the entire local economy,” he said.
He added that the program is “based on the assumptions that, among others, the magnitude of the impact of the global economic crisis on the city and its people remains uncertain and difficult to judge.”
The program is also intended to continue ensuring peace and security of the city, especially in times of crisis, and promote an environment conducive to business and development.
Since women and children are the most vulnerable sectors, particularly during “these desperate times,” Jacinto said the maternal health and child care programs shall be further intensified and strengthened.
“We have to optimize resources and position the city to take advantage of opportunities in the expected upturn of the economy,” he said. Jacinto admitted that in planning the LBP loan, the income of the city government from the revised Tax Code was factored in.
Reduced rates,housing bonanza for Dabawenyos
-Loan interest rate down to 6%, lowest in Pag-IBIG history
-P400,000-housing unit for only P2,400 monthly amortization
HUNDREDS of thousands of families, including some 470, 000 members in Southern Mindanao of the Home Development Mutual Fund (HMDF), more popularly known as Pag-IBIG Fund, will benefit from two positive developments in the housing sector.
The bonanza includes the reduction of interest rates in Pag-IBIG loans and the implementation of Republic Act No. 9507 establishing a socialized and low-cost housing loan restructuring and condonation program.
Jose W. Banzon Jr., Pag-IBIG Fund vice president for Southern Mindanao operations, told business reporters the Fund is now offering several new loan packages with reduced interest.
Accredited developers identified
For the convenience of housing borrowers, Pag-IBIG has also identified seven accredited developers who are offering the low-interest packages.
They are Kisan Lu (Santiago Villas), Foothills Realty (Samantha Homes in Bago), Primeland Properties (Wellspring Highlands, Vista del Rio Village, and Nakayama Village), Davao Joyful Realty (Victor’s Executive Homes), Uraya Land Development Inc. (Elenita Homes and Villa de Mercedes), 8990 Housing Development Corporation (Deca Homes-Cabantian and Deca Homes-Mintal), and LS Properties (Don Lorenzo Homes). Except for Nakayama Village in Digos City, all the housing projects are located in Davao City.
Banzon said Kisan Lu, which developed Gulf View Executive Homes at Lower Rapnaga, is offering a P400,000-housing package at an interest rate of 6 percent or a monthly amortization of P2,398.20 instead of the old P2,661.21.
On the other hand, Foothills is building homes at P500,000 at an interest rate of 7 percent or an amortization of P3,326.51 a month.
The reduced interest rate program is part of the P43-billion Pag-IBIG Fund share of the government’s national stimulus package of which P2.4 billion will go to Southern Mindanao, he said.
Lowest interest rate so far
He added that “six percent is the lowest interest rate ever prescribed by the government on low-cost housing.” In the past, it was nine percent.
The housing official said that the interest reduction program is aimed at increasing the Fund’s loan availment which stood at only 12 percent against Pag-IBIG membership of 470,000 in southern Mindanao.
“Of the 12 percent who availed themselves of housing loans, 18 percent are in arrears,” he said.
In Davao City, alone, he said, 4,000 borrowers were in arrears and of these, 1,127 have been foreclosed.
At the same time, the Pag-IBIG official bared that the newly approved RA 9507 took effect last March 16 for implementation by Pag-IBIG and other government financing institutuions (GFIs) during the next 18 months.
Who can avail of condonation?
Banzon said that if the original borrowers are no longer around, their legal heirs and successors-in-interest can apply for loan condonation and restructuring.
Those who have availed themselves of previous penalty condonation and restructuring are also eligible to apply.
The other favorable features of the new condonation law are:
–no processing fee;
–no down payment;
–full condonation of accumulated penalties/ surcharges;
–condonation of portion of accumulated interest;
–uncondoned interest is non-interest bearing and shall be paid in equal monthly amortization during the term of restructured loan;
–interest rate of the restructured loan is the original interest rate or 12 percent whichever is lower;
–maximum term of 30 years;
–discount on interest for prompt payment;
–applicant’s savings/contributions with PAG-IBIG Fund may be used to update his/her loan obligation; and foreclosed accounts covered by the program provided one-year redemption period has not yet lapsed.
by Antonio M. Ajero
1st Anniversary – We are one!
MEMBERS of the tiny staff of Edge Davao gathered to celebrate its first founding anniversary in the paper’s editorial room last Monday night. The celebrators partook of a sumptuous dinner with Davao City Councilor Edgar Ibuyan, lawyer-businessman Jude Ralph V. Yap and Ms. Pong Matalam as special guests.We share images of the simple celebration.
Davao LGUs urged to compete in tourism trade
LOCAL government units (LGUs) and all other stakeholders in the private sector involved in tourism should synchronize and integrate their tourism plans at the regional level to better market their localities.
This was the strong advice of national tourism officials to more than 400 government officials and players in the tourism industry gathered at the biggest tourism congress here last Friday.
Undersecretary Oscar Palabyab of the Department of Tourism also stressed the futility of LGUs prematurely selling tourist destinations without first fully developing them, including providing all the needed amenities for tourists.
“What is needed in Davao is really to organize things in a business-like manner, to package tours, offer special tours. We have to be organized because there’s no doubt, each town, each province has its own attraction, but unless they are organized regionwide, we can not market the region,” said Department of Tourism undersecretary Phineas Alburo during the tourism industry-related Congress (Tricon) held last Friday at the Grand Regal Hotel, Davao City.
The DOT officials warned the LGUs and the private sector against promoting tourist destinations which have not been fully developed “as it is counterproductive to sell tourist destinations unless they are provided with the needed amenities.”
As an example, Usec Palabyab said it is pointless to promote an amazing tribal village if tourists will still have to hike for five hours to the place because the LGU had failed to build a road.
Usec Alburo also bared that the DOT has funds to help develop small scale tourism ventures, saying that the money is an outright grant, not a loan to be repaid.
“There is a lot of expectations from government. They’re asking what the national government can do for them. Many of them should really be local initiatives, before the national government will come in. Still, there are valid complaints in terms of how to put more life in the tourism industry of the nation,” he said.
Also present at the tourism congress was Davao del Norte Gov. Rodolfo del Rosario.
More players
Palabyab said the high turnout of participants at the congress “indicates that there many new players in the industry.”
“I notice that a lot more people are attending the gathering. Tourism council assemblies are a regular thing, but this is the first of its kind this year. This is our opportunity to share ideas among stakeholders, an opportunity for us to synchronize our activities,” he said.
“It is important for stakeholders to know that the department is moving. It is important for government to know what the stakeholders are thinking and doing so we will know whether our policies are correct,” he added.
Alburo said another indicator that local tourism industry remains vibrant amid the global economic turmoil is the fact that flights within the Philippines are always full while flights outside the Philippines are either half-full or half-empty.
“I noted that most flights in the Philippines are full, meaning to say that that domestic travel is still going on and healthy, while international travel is not as brisk as before, maybe because of the high prices of plane tickets. Some travellers decided to go out only two times a year instead of three or five times a year,” he said.
“It could be that some travellers just confine their traveling within the region instead of to farway places like Europe and America,. It could be for many reasons but basically people in this generation will always travel, some two to three times a year. These days some people cut them to just two. People used to travel long haul, but many today limit heirs to short haul,” he added.
New tourism law
Meanwhile, local tourism players are expected to benefit much from the new tourism bill once President Gloria Macapagal-Arroyo signs it into law.
This was what Senator Richard Gordon, a former tourism secretary, told some 500 tourism stakeholders who attended the Tricon.
The bill features the establishment of tourism enterprise zones across the country. This alone is already expected to boost domestic tourism.
“With this law, local governments will now be pushed to develop their own tourism sites, come up with a package that would be attractive to potential tourists,” he said.
Gordon stressed that it is now the role of the LGUs to be more creative in having better tourism investments such that everything from hotel accommodation to products are all offered in a tourism site.
It is also the role of LGUs to develop their tourism enterprise zones as they would be competing with other cities and municipalities offering distinct sites and products.
Targets for the tourism enterprise zones include Cebu, Davao, Bohol, Laguna, Cavite, Boracay, Palawan, and Iloilo.
Undersecretary Palabyab said local tourist destinations must take advantage of cheaper air and sea transport fares being offered by various airlines and shipping companies.
“We observe that most domestic travelers have confined their travel within the region. Airlines have also opened flights to new areas like Laoag, Bosoanga, Zamboanga. This shows that there is a growing new market in local areas.” Palabyab said. [With PIA report]
Summer Hues
IF you don’t feel like jumping in to the season with your old swimwear, Freeway has the latest styles to make you gorgeous-ready for summer. Beaches, waves, sand, music, cold drinks, warm weather and hot swimwear… What can be better than you looking irresistible and sexy in your new bikini?
This season, Freeway has an array of exquisite and discerning pieces you’ll surely lust for. From pin-up polka dots to retro color blocking to artsy hand-painted, Freeway got you covered. There are many other fabulous prints in various designs like halter top bikinis and cut-out or maillot. The vibrant popping brights with soft sorbet tints will give you more reasons to grace poolside and shorelines in a hip and chic fashion.
Anne Curtis takes her pick from Freeway’s summer collection,”The hand-painted pieces are instant favorites. I
like how it creatively interprets nature, the waves, sunrise and sunsets. I am such a beach bum.
These elements of the beach are the most wonderful and beautiful things for me.”
Highlighted in this collection is the hand-painted limited edition series by designer Twinkle Ferraren. With courses taken at London’s esteemed Central Saint Martins College of Arts and Design, Ferraren uses her inspiration from nature and fragments of daze and trance to render her artwork into the label’s swimwear line. “My designs for Freeway are fluid and dynamic yet still feminine that makes each piece desirable.”
Expect the unexpected from Freeway for its latest collection – feminine, desirable, coveted.
Each unique creation is a sure head turner. Check out Chimes Specialty Store for flattering swimwear for every style you crave!
Good governance: Behind Davao City’s liveability
by Alex Roldan
TOUTED as the financial hub of Mindanao, Davao city is steadily reaping the gains pushed by its potentials and opportunities. Obviously, this could not have been achieved without the able leadership of Mayor Rodrigo R. Duterte whose no-nonsense policies effectively address the fundamental requirements of his almost 1.4 million highly heterogeneous constituency.
The maintenance of peace and order is foremost among the city’s priorities. It is not all about strengthening the capabilities of the police force to control criminality and illegal drugs, but ensuring that the other aspects of maintaining orderliness in the city could be assiduously addressed, such as effective traffic management systems, disaster management, emergency response system through 911 and the anti-terrorism campaign.
The delivery of basic services is paramount in every aspect of Mayor Duterte’s governance. He fully understands the dilemma of the poor sector of the population while taking into consideration the city’s capability to respond to it. Medical assistance through Lingap Para sa Mahirap Program leads the way in the city government’s response to the people’s immediate medical needs. Health-related campaigns such as anti-rabies, anti-smoking, malaria control, reproductive health, maternal and child care, gender and development and the like have been sustained and expanded.
Conscious of the growing population and the need for housing, the city government provided several relocation areas for poor and deserving residents.
Human resource development is indispensable in any city’s development. This is effectively addressed through education programs for all (including building Madrasahs). To date, 599 day care centers are operating throughout the city. Educational assistance programs for all grade levels, vocational and non-formal education continue to benefit more individuals. Scholarships to poor but deserving college students was launched early this year.
Harmonizing all the efforts and strengthening the economy inevitably sustain Davao City’s growth. Economic services are constantly being improved, particularly in the areas of investment generation, tourism, and employment services. To further reduce the cost of doing business, innovations were applied to make an effective one-stop shop for all business permit transactions.
The city government believes in the potentials of the micro, small and medium enterprises to generate more employment.
Agriculture is vital to Davao’s economy. Mayor Duterte is focused on efforts that improve crop and fisheries production, and planting materials and livestock upgrading.
Central to Mayor Duterte’s policies is sound management of the environment. The city put up effective solid waste management, pollution monitoring, parks and playgrounds and the almost completed sanitary landfill.
This is what good governance is all about. And more.
DAVAO CITY: A vibrant commercial hub in the country . . . and beyond
AS it marks its 72nd foundation day, Davao City continues to enjoy its reputation as one of the most progressive local economies in the Philippines and the East Asian countries.
The influx of private investments, which steadily grew in the last two decades, has further strengthened Davao City’s position as among the vibrant commercial hubs in the country.
The city has shifted counting investments from the millions of pesos in the ‘80s to billions in the ‘90s and up to the new millennium.
Among Asian cities, Davao has maintained its competitive position in attracting investments and in penetrating new foreign markets owing to its resilient exports base, peaceful business climate, better quality of life, and rich pool of skilled workforce.
With over 1.4-Million people as primary market base, the city is conducive to business as evidenced by the presence of the country’s top 200 companies.
Inflow of investments has been remarkable in the last ten years. Export in the City is now billion dollar industry with a growing niche market for its products.
The stable banana and flourishing pineapple industries are among the country’s leading export commodities. A net exporter since 1987, Davao City largely contributed in making the Philippines as the world’s top 3 banana exporter.
Primarily an agricultural area, almost all kinds of fruits thrive in Davao including the exotic Durian. Other major agriculture-based exports are pomelo, mango, coconut, papaya, mangoosten, and even flowers.
The productive linkages between established businesses and Davao City community reinforced the competitive quality of life in a city that has consistently maintained single digit inflation rate since 1993.
Along with flourishing investments and exports, the low inflation rate serve as concrete illustration of the remarkable gains from Davao City’s sustained competitiveness nurtured by high level of responsiveness of the local government which put priority focus in facilitating business-friendly initiatives and in ensuring a peaceful and prosperous environment.
Among its comparative advantages is the established linkages and accessibility.
Davao City is strategically located in Souther Philippines. It has air and sea linkages to major points of destination in the country and the rest of the world. Goods and people can also be transported by land via the Philippine-Japan Friendship highway.
The new Davao International Airport is one of the busiest airports in the Philippines with daily flights to major destinations in the country. Davao City also serves as your gateway to the sub-regional trade bloc known as the East ASEAN growth area with direct flights to Singapore and Indonesia. Modern infrastructure and facilities present in the City provide businessmen access to the 25 million market of Mindanao and the 56 million market of the BIMP-EAGA.
Davao City is also blessed with perfect weather. It is situated in a typhoon-free zone. The all-year round predictability of its tropical weather (sunshine by day and occasional rain showers by night) makes the place conducive for business, leisure, agriculture and other worthwhile activities.
The city is also equipped with efficient public utilities. It has excellent public utilities that offer the best products and services. There is abundance in the supply of (piped) potable water.
There is availability of cost-efficient electricity through hydropower generation. 24-hours a day power is assured by the able distribution of Davao Light with the availability of a back-up generation plant. State-of-the-art telecommunications facilities connect its people to the rest of the world.
Players in the telecommunications industry (phone companies, Internet Service Providers, Cable-TV, computer vendors) have continually offered new products, services and innovations to keep the people abreast with the latest and even ahead.
Davao City is also host to regional centers and headquarters of government and private agencies whose scope of operational jurisdiction covers Southern Philippines or the island of Mindanao. This is the reason why many organizations consider the City as the de facto capital of Mindanao.
It is considered as the financial center of the Mindanao Island with more than 1,000 institutions classified as banks, non-bank financing, and lending agencies.
The city is also the center for learning, education, and trainings in Mindanao with 39 tertiary education institutions classified as universities (including the University of the Philippines-Mindanao), colleges, and technical schools that regularly supply the City of needed expertise and manpower.
Davao City is also touted as the one of the most peaceful cities in Asia with a monthly crime index of 0.8 cases per 10,000 persons per month. Its Davao Police Office is a consistent top pick for the Country’s Best Police Office Award. The City has also established the 911 central communications and emergency response center in 2002 to lessen crime incidences as well as preserve lives and properties.
Its comparative advantages are further strengthened by its competitive cost of doing business. In Davao City, quality products and services do not necessarily equate to high cost. Almost everything of quality in Davao City costs cheaper compared to other major cities. Rates of public utilities, real estate, rentals for commercial spaces, accommodations, labor, raw materials, and other business related inputs are comparatively cheaper than other major cities in Asia. This factor is seen vital in achieving a healthy return on investments.
In terms of human resources, the city is home to the best professionals and laborers in Southern Philippines. Its human resources are touted as competent, highly literate, English-speaking and very cost-effective. Davao is the biggest producer of engineers, computer programmers, medical practitioners, accountants, lawyers, and other skilled labor in the region.
It is also considered as the fruit basket of the country as almost all kinds of fruits grow in abundance in the City. It is host to a lot of fruit plantations and it is famous for its exotic Durian.
Davao City is one of the biggest exporters of banana in Asia. Other fresh produce includes delectable delights such as the pomelo, mango, mangosteen, rambutan, strawberry, lanzones, and pineapple among others. Aside from this edge, the City functions as the trade-off point of Mindanao’s high value crops.
As an investor-friendly city, investors are well taken cared of in Davao City. Being the pioneer city in establishing an investment promotion center that provides free professional assistance including processing of applications for local fiscal incentives, the local government sees to it that investors are provided the red carpet in starting business as easy as possible.
Topping all its comparative advantages is the responsive and forward-looking local government. The City Government of Davao is very positive on developmental projects. Infrastructure modernizations such as international standard airport, roads, bridges, and seaports are being done in response to the present challenges of the new millennium.
The city’s goals, thrusts, and programs are being guided by the fundamental principles of sustainable development. Under the Comprehensive Development Plan for 1996-2021, the city’s priorities are: peace and order; health; environment; education and social services; shelter; livelihood; infrastructure; agriculture and fishery development; investment and tourism; revenue enhancement; sports development; and good governance.
EDGE DAVAO: A year of making a difference
EDGE DAVAO, the pioneering business and investment weekly publication in the region, came out with its very first issue on March 10, 2008. Not without some trepidation, as it were. It was a time of grave peril for economies around the world which began to feel the first stirrings of a global financial crisis. Local pundits, well-meaning or otherwise – wondered how long the publication would last, noting its appearance on newsstands in such uncertain times. A news publication, after all, depends mainly on the availability of advertising revenue to survive; more so, if it is still undergoing birth pains.
After a year of trying to keep its head above water, so to speak, EDGE DAVAO has managed to keep itself, not only afloat (thank you), but to make a mark in its chosen field as the region’s first and only business and investment weekly. Its hard-working and dedicated staff now realize that, with the first year already behind them, there’s no stopping their pursuit of their goal.
Business and economics are often not accorded with high priority in terms of coverage and prominence in most newsrooms hereabouts, until lately after EDGE DAVAO had shown the way. In an age of globalization, economics is changing our lives so much that today it is more and more in the mix of public policies. Especially at a time when a global economic meltdown has most of the world’s economies in its grip.
OUR VISION:
We are the first and only globally competitive weekly business and investment publication in Mindanao.
OUR MISSION:
To consistently provide our readers total access to business news, information and views they need to know through insightful coverage of business events and trends.
To act as a vehicle and forum for an open exchange and sharing of creative ideas among readers of communities that we serve.
To deliver trustworthy information to empower aspiring young entrepreneurs to make smart decisions in their professional and personal lives.
To ensure the well-being and development of our employees.
To give back to our shareholders a fair return of their investments.
We feel that EDGE DAVAO has what it takes to lead the field as a business and investment publication.
Madayaw na Araw ng Dabaw kamayo!
Davao groups vs Legacy swell to 5
THE groups of investors in the Davao area who claim to have invested money in pre-need services and double-your-money schemes of the controversial Legacy Group of Companies have swelled to five assisted by different law firms.
This developed as investors in General Santos City and neighboring areas came out and also sought legal assistance.
Another startling development is the reported testimony of a former Davao City-based Legacy vice president for marketing in the Senate hearing on the Legacy conducted by Senator Mar Roxas.
Davao City Councilor Peter T. Lavina who was requested by Senator Roxas to gather Legacy investors for a forum last February 28 said the huge money involved in the Legacy schemes will “surely have an effect of our local economy, because aside from their money becoming idle or lost, it has eroded the confidence of our local business people in investing their money in pre-need, in banks and other financial schemes.” Councilor Lavina said “this will have an impact on the trust and confidence of the business sector in such financial instrumentalities.”
He said more than 300 Legacy investors showed up during the forum called by Roxas, many of them have not yet joined any group under a particular lawyer .
Lavina said the lawyers handling Legacy cases under different groups are Ramon Edison Batacan, the biggest group; Israelito Torreon; Rollie B. Dumalag and Cynthia C. Doromal; Jeoffrey Koronel in the office of Councilor Mabel Acosta; Philip Pantojan and Alexis Lumbatan.
He said that victims of Legacy in General Santos City and neighboring areas in Region 12 have likewise signified intention to take collective action to recover millions of pesos invested in the double-your-money schemes offered by the controversial group of companies.
It was estimated that based on the figures disclosed of those who claimed they have invested in Legacy, the total investors’ money in Legacy could reach billions of pesos.
Lawyer Ed Batacan, who is currently governor for Eastern Mindanao of the Integrated Bar of the Philippines, said his law firm is right now studying hundreds of Legacy cases.
He said he is trying to determine who among the alleged victims are deserving to be given free legal assistance. He said he is willing to offer his services pro bono to victims who can not afford to hire lawyers, but those who can afford have to pay for the legal services.
Earlier, Torreon said his group represents more than 200 Legacy clients whose money invested in the double-your-money schemes can reach a total of P250 million.
While those represented by lawyers Dumalag and Doromal are less than 40 people, their total investment is bigger, easily more than P400 million.
It was not learned how much money has been invested by alleged Legacy victims who sought the legal assistance of lawyers Pantojan and Lumbatan and those represented by lawyer Koronel.
In Davao City last February 28, Senator Roxas said he would do his best to force beleaguered investor Celso delos Angeles, president of the controversial company, to give them back their money.
The Liberal Party senator made the commitment after getting hold of the affidavit of Myrna Castillo-Axalan, former vice president for marketing of the Legacy Consolidated Plans Inc., one of the companies of the Legacy Group.
Roxas, chair of the Senate committee on trade and commerce, has already started the investigation on the controversy surrounding the company with Axalan testifying at the hearing last March 2.
Other aggrieved investors have filed similar cases against the company following the failed “double-your-money” schemes.
Axalan, who spent six years with the company, admitted that she was convinced that its scheme was fraudulent and victimized thousands of innocent investors and planholders.
“Now, I find the Legacy Products of Mr. delos Angeles really designed to defraud us, by the very fact that in spite of the generous promises of high returns, investors and planholders got nothing, while Mr. delos Angeles still maintains a high standard of living with his luxury cars, mansions, yacht, and other worldly amenities and expensive material possessions,” she added.
The damning point in Axalan’s affidavit was that it was Delos Angeles who “personally designed and created” the “products and programs” of the company. In supporting her claim, Axalan said Delos Angeles “would be the one to personally explain and discuss to use the mechanisms and features of the said Legacy Products and Programs,” and that when these products were presented, he and members of the executive committee would always be present.
“Mr. delos Angeles would also categorically and clearly declare during the presentations at the Marcom (marketing committee) meeting that said Legacy products or programs were his very own creations and innovations,” she said, adding that it was also delos Angeles who would present the products to investors.
Axalan, however, admitted that she never questioned the motive of delos Angeles nor doubted his innovative products “even if its returns were unbelievable considering that they were unusually high.” “Little did I know that I would be mistaken in trusting Mr. delos Angeles and his products, which turned out to be just mere devious ploys to defraud investors, including myself, and planholders of our hard-earned money and savings, much to our great damage and prejudice,” she added.
In Manila, two former Legacy executives announced last Thursday their willingness to tell the truth about the financial collapse of the Legacy Group and are set to testify at the Senate after Roxas officially took them into protective custody.
Carol Hinola and Namnama Pasetes, record keepers of the LCPI, said that despite the intimidation they have suffered, they decided to spill the beans about how the multibillion-peso funds of investors and plan holders were siphoned off and funneled into the pockets of Angeles.
Hinola used to be the senior vice president and chief operating officer of LCPI and also chief executive officer of other Legacy companies while Santos is the president and chairman of the LCPI, and formerly chief finance officer and director of several companies in the Legacy Group.
Meanwhile, a monetary official said closure of the 14th rural bank allegedly involved with the Legacy Group may not be the last.
It can be recalled that the policy-making monetary board (MB) of the Bangko Sentral ng Pilipinas (BSP) issued a closure order last February 26 for the Rural Bank of Polangui (RBPI), based in Albay province, and placed it under receivership of the state-insurer Philippine Deposit Insurance Corporation (PDIC).
BSP Deputy Governor Nestor Espenilla Jr. said that perhaps most of the banks being operated illegally by the group of businessman and Santo Domingo, Albay Mayor Celso de los Angeles have been closed down “but not all of it.”
He explained that “the Legacy Group is surprising in terms of hiding the activities but I think this issue is now very focused.”
“It’s just a matter of pursuing what the law requires,” he said.
BSP officials have filed several cases including a P1-billion syndicated estafa case against De los Angeles and other officials of the Legacy Group for duping depositors of their money in what is considered a complex pyramiding scheme.
Lawmakers are also conducting investigations on the operation of the Legacy Group.
Espenilla said the crisis that came out of this situation is not systemic because they “are dealing with a very specific group of banks whose business model has been a major concern for BSP even prior to the financial turmoil.”
Closure of the rural banks allegedly involved with Legacy may be big news in Manila but this is not the case in some parts of Bicol, he said, because people there “are aware that something is amiss.”
For RBPI alone, the bank, said to be established in April 1965, offered 20 percent monthly interest on deposits for minimum placements of P250,000 since last year.
This is unusual since the average monthly deposit interest being offered by major banks to date is around two percent. [With reports from Philippine News Agency]