THE Insurance Commission (IC) has issued a license to the Philippine Public School Teachers Associations Inc. (PPSTA) to operate as a mutual benefit association of public-school teachers, after putting such corporation under conservatorship for the past nine years.
Insurance Commissioner Emmanuel F. Dooc said the rehabilitation of PPSTA can be replicated by the IC in other companies facing financial distress to allow them to continue their business instead of defaulting in their obligations to their clients.
The successful rehabilitation of PPSTA was done through the conservatorship of the IC, although the IC will continue to have effective control of PPSTA’s management until a competent and trustworthy board of directors and management have been firmly established.
“The successful rehabilitation of PPSTA can serve as a model for all other companies under the jurisdiction of the IC which are currently facing financial distress. What we did to PPSTA can be replicated to other companies for their eventual rehabilitation and for them to be able to continue their business as a going concern,” Dooc said.
From a high negative of P1.8 billion in 2005, PPSTA is now at a positive P128.31 million in terms capital which means that the total assets of the association is higher than its total liabilities. In terms of assets, PPSTA posted a 8.4-percent increase from P4 billion in 2013 to P4.4 billion last year.
“This success was due to IC’s close supervision and monitoring of PPSTA’s financial and business operations, enforcement of effective corporate strategy and the filing of appropriate court cases against erring former officials of the association,” Dooc said.
Dooc commended the performance of the IC-appointed conservator for PPSTA Atty. Moises A. Balon and PPSTA’s Board of Trustees, headed by Dr. Kahar H. Macasayon, for their effective management of PPSTA’s business operations.
He also commended PPSTA’s former conservators, namely Daniel A. Gomez; lawyer Francis X. Perez; Francisco E. Josef; lawyer John A. Apatan; and Carlos H. Yturzaeta.