PNCC, Radstock and Recto’s ‘corrections’

I had always thought that the extension of the PNCC franchise would be a walk in the park, what with no less than former Quezon City representative Maite Defensor of the politically powerful Defensor clan which includes father, Mat, who replaced her; brother, senatorial candidate and former Presidential Chief of Staff Mike; aunt, the Senadora Miriam; and uncle, House Deputy Majority Leader Arthur, among others, riding shotgun over the country’s sole tollways franchisee.

But that has not turned out to be so. With Congress now out on election recess, the PNCC franchise, which is due to expire next month, will probably be left to wither and wait for the incoming 14th Congress to be revived. This will definitely impact negatively on the company’s standing and derail its upgrading into a world-class toll- ways owner and operator. How PNCC’s fortunes skidded to this sorry impasse should be one hell of a story.

But if reports from the grapevine are to be believed, the PNCC got into this rut solely because of the mysterious P17-billion “Radstock” deal.

Apparently, while the House Committee on Franchises, chaired by Bukidnon Rep. and now senatorial candidate Miguel “Migs” Zubiri passed the PNCC bill in a jiffy, it was stalled in the Senate over the objections of Sen. Frank Drilon. The Iloilo senator disclosed that the P17-billion “compromise” agreement between PNCC and Radstock Securities, which was initialed during the Erap years and firmed up under the watch of former NDC and PNCC president, now Transco head honcho Art Aguilar, smelled to high heavens.

In the first place, except for former agriculture secretary Sonny Dominguez (also of Lafayette and Rapu-Rapu Mining fame), who has been identified as the Radstock man in the papers, the Bermuda-based company’s provenance remains a puzzle. Even more puzzling is the metamorphosis of its claim which apparently took almost a decade to surface and its multibillion “compromise” agreement with the publicly listed, financially challenged PNCC.

Too, PNCC failed to satisfactorily argue that the said “compromise” deal should take precedence over all other obligations, including its P38-billion debt with the national government. Even the most loyal PNCC advocate in the Senate failed to sway Drilon over those objections, thus sinking the company’s chances to have its franchise pass congressional muster.

What a queasy, roller-coaster ride indeed. And what a whale of a correction waits if PNCC hopes to have its franchise renewed

Recto’s ‘corrections’

Speaking of corrections, we are not surprised that “Co-Recto” is the tagline of re-electionist Sen. Ralph Recto’s political ad.

A play on the Recto name it is meant to convey approval by a slew of people who have presumably been affected by the youthful solon’s various initiatives, a number of which quite controversial, since the time he entered that chamber in 2001 after serving three terms in the House.

In his six years at the Senate, Recto has indeed become the go-to guy for any corrective measures, especially in critical, nay controversial, matters involving the economy.

The more controversial ones, if we may call them such, have everything to do with Recto’s efforts at correcting, as it were, the country’s highly complicated and, may I add, oftentimes antipoor and antipeople, fiscal regime. It is this regime, which has, in more ways than one, consigned the country to the margins of development. 

As the chairman of the Senate Ways and Means Committee this Herculean job of leveling the playing field and going after the special interests embedded in the country’s Jurassic internal revenue and Customs and tariff codes fell squarely on his shoulders. It has been a lonely and oftentimes thankless task.

But, to his and his more conscientious colleagues’ credit, this task has turned out to be rewarding not only for them but even, more importantly, to the Filipino people. In fact, even those persons and sectors who were initially apprehensive, if not openly critical, of many of these initiatives later on became the most vocal advocates of the fiscal reform packages which Recto nursed through the legislative mill.

No wonder, even the most discerning economists and policy makers at the ADB, World Bank, European Union, the ratings agencies and, yes, the giant international financial houses, have only praises for his steady, balancing acts which have spawned in its wake the most far-reaching overhaul and modernization of our financial and fiscal environment.

It is this reform initiative which has in the process ignited a revolution of sorts in key sectors of the economy. Now, the country is on track to balance its budget, substantially reduce its debt stock and, essentially, clear its standing in the international financial market.

More importantly, this reform package, this correction, if you will, opens up the public’s appreciation of the real and critical role of public finance in the nation’s affairs. Not only will this result in fair and equitable taxation but focused, results-oriented spending of the people’s monies.

Which is why it pains us to hear some sectors going out of their way to intentionally demonize Recto for his reform and corrective initiatives without as much saying that the same has resulted in a more balanced, equitable and responsible fiscal management.

It is Recto, for example, who has been the moderating voice in the fiscal-incentives rationalization effort ensuring in the process that only those industries and sectors truly deserving government assistance get such assistance and only for as long as they undertake projects in priority, job-generating and export-enhancing areas.

It is Recto who has stomped the efforts of the big money-making machines and industries to wiggle their way out of paying their fair and just share in taxes through loopholes in the revenue code. It is Recto who has been able to see through the schemes of the decades-old “sunshine” industries to stay in that category forever and get incentives in the process almost as a right already. It is Recto’s corrective ways which has saved Juan de la Cruz from a regime of fiscal inequity and marginalization.

“Co-Recto” indeed and how!

IT is gratifying to see the government trying to rev up the economy so we could achieve a 7-percent to 9-percent growth in the country’s gross domestic product (GDP).

If you think I was enthusiastic about purchasing Philippine property the last time I discussed it, you have not seen anything yet.

The militant groups that have borne the brunt of extrajudicial killings have called the visit of UN Special Rapporteur Philip Alston an exercise in futility because not even his presence here has stopped the death squads from committing more murder and mayhem.

I had always thought that the extension of the PNCC franchise would be a walk in the park, what with no less than former Quezon City representative Maite Defensor of the politically powerful Defensor clan which includes father, Mat, who replaced her; brother, senatorial candidate and former Presidential Chief of Staff Mike; aunt, the Senadora Miriam; and uncle, House Deputy Majority Leader Arthur, among others, riding shotgun over the country’s sole tollways franchisee.

With the huge P150-billion trust fund of the preneed industry, there is now more need than ever of letting a third-party investment house to take charge of investing the funds.