Hi! I am Nina Lasala, former Treasurer of the Philppines. This blog is meant to be an open forum for investors, fellow finance professionals, and other interested parties to discuss the state of Philippine Debt Management.

Tuesday, March 01, 2005

BusinessWorld Article: New Treasurer to uphold securties custodian rules

BUSINESSWORLD
MANILA, PHILIPPINES
| Tuesday, March 1, 2005

New Treasurer to uphold securities custodian rules

National Treasurer Omar T. Cruz vowed yesterday to abide by the Department of Finance's order to implement the controversial third-party custodian rules.

He also said he would immediately look into the issue, to resolve any misunderstanding between officials of the Bureau of the Treasury and the Bangko Sentral ng Pilipinas.

"The first order of the day is to clear out the confusion. There's been a great deal of misunderstanding," he told reporters.

He also said Treasury, under his watch, would take the position of Finance that custodianship was a function important to protecting investors.

The Treasurer also said he was optimistic that Treasury officials and securities traders opposed to the third-party regulation would eventually appreciate it.

"I'm sure we can work things out," said Mr. Cruz, who claimed familiarity with the custody business.

Before joining the University of Asia and the Pacific, Mr. Cruz headed the Treasury department of the local unit of Citibank. He also ran the custody operations of the foreign bank. He had also headed Citicorp Securities, the local Citibank's securities unit.

Mr. Purisima, for his part, said his Finance team would look at the custodian issue carefully.

Mr. Cruz replaces Norma L. Lasala, who found herself in the middle of the controversy after she strongly opposed the third-party custodian rule set by the Bangko Sentral.

Ms. Lasala had refused to turn over Treasury's registry system to Bangko Sentral's six accredited securities custodians -- a major stumbling block to the nmew regulation's implementation.

The National Treasurer manages the government's sale of bonds locally and abroad.

The third-party custodian rule requires banks to entrust to independent custodians accredited by Bangko Sentral all securities sold and traded in the market.

Bangko Sentral welcomed the appointment of Mr. Cruz, saying that it would pave the way for the smooth implementation of its third-party rule.

"We fully support the appointment as this would put order in the otherwise confused issue of custodianship," Bangko Sentral Deputy Governor Alberto V. Reyes said.

When asked about his borrowing plans, Mr. Cruz said he would still meet with Finance officials on this.

Mr. Purisima said the borrowing strategy would be consistent with Treasury's efforts to create a stronger and more reliable debt market.

The Finance chief also said the department would create a debt and risk management committee that would review all state borrowings. -- Iris Cecilia C. Gonzales

28 Comments:

Anonymous Anonymous said...

AHA! This confirms what we have been afraid of all along! Mrs. Lasala was replaced because the people in high places wanted someone who would cater to their whims without thinking-- without a squeak! Alas!What fate shall await the people if every so called "team player" just said AMEN to the BIG BAD BOYS???

Nina, what they did to you just wasn't fair! But don't you fret. YOU SHALL NOT FIGHT YOUR BATTLE ALONE. THERE IS A JUST GOD WHO PRESIDES OVER THE DESTINIES OF MEN AND NATIONS AND WHO WILL RAISE UP FRIENDS TO FIGHT YOUR BATTLE FOR YOU!!!

4:54 PM

 
Anonymous Anonymous said...

Nina, I think there is something fishy going on in your replacement.
why was it allowed by those who should and could have prevented it? Isn't it obvious the BSP folks want you out of the way? What will they do next? If they get away with this, when will they stop? Am afraid that there will come a time when there would be no stopping them. And to think it is those who knew what was right BUT WHO WERE AFRAID TO SAY NO, AFRAID TO STAND UP AGAINST THEM that is really to blame. These cowards let a woman like you fight for them! These guys with no guts let a woman like you be sacrificed for them! SHAME ON THEM!

5:04 PM

 
Anonymous Anonymous said...

I am amazed that the new treasurer will uphold the securities custodian rules without looking at the issues surrounding the case before giving his opinion on how the treasury should proceed with this matter.

6:15 PM

 
Anonymous Anonymous said...

OMAR WAS NEVER THE TREASURY HEAD OF CITI MANILA

Per the BWorld Article:
"Before joining the University of Asia and the Pacific, Mr. Cruz headed the Treasury department of the local unit of Citibank. He also ran the custody operations of the foreign bank. He had also headed Citicorp Securities, the local Citibank's securities unit."

i used to work in the FX group. Mr. Cruz was an economist, the head of custody, but he was certainly NEVER the head of treasury of Citi Manila, as represented in this article.

as national treasurer, the post requires someone who can call the markets.i would have thought that running a treasury would have been a pre-requisite for the post of National Treasurer. DUH!

6:57 PM

 
Blogger betterphil said...

just like what others have mentioned earlier, I am now really afraid and very concerned for our country. The big bad wolves have been given the responsibility and AUTHORITY to look after the treasury roost. Oh, what fate awaits us! I fervently pray that the more enlightened and courageous members of the legislature take up the cudgels to investigate the custodianship issue and ensure that the government gets a fair and secure deal from whoever should be awarded the "privatization" of the Registry.
On the issue of the new treasurer, he wouldn't get the job in the first place if he is against the transfer of the custodianship to a particular private entity. Kawawa rin sya. It now appears that he is merely a puppet without any personal conviction nor choice. He does not have the balls to even ask that he be allowed to study the issue before he renders an informed opinion. Kawawa sya. Lalo na ang ating bayan.

10:22 AM

 
Blogger betterphil said...

just like what others have mentioned earlier, I am now really afraid and very concerned for our country. The big bad wolves have been given the responsibility and AUTHORITY to look after the treasury roost. Oh, what fate awaits us! I fervently pray that the more enlightened and courageous members of the legislature take up the cudgels to investigate the custodianship issue and ensure that the government gets a fair and secure deal from whoever should be awarded the "privatization" of the Registry.
On the issue of the new treasurer, he wouldn't get the job in the first place if he is against the transfer of the custodianship to a particular private entity. Kawawa rin sya. It now appears that he is merely a puppet without any personal conviction nor choice. He does not have the balls to even ask that he be allowed to study the issue before he renders an informed opinion. Kawawa sya. Lalo na ang ating bayan.

10:24 AM

 
Blogger betterphil said...

just like what others have mentioned earlier, I am now really afraid and very concerned for our country. The big bad wolves have been given the responsibility and AUTHORITY to look after the treasury roost. Oh, what fate awaits us! I fervently pray that the more enlightened and courageous members of the legislature take up the cudgels to investigate the custodianship issue and ensure that the government gets a fair and secure deal from whoever should be awarded the "privatization" of the Registry.
On the issue of the new treasurer, he wouldn't get the job in the first place if he is against the transfer of the custodianship to a particular private entity. Kawawa rin sya. It now appears that he is merely a puppet without any personal conviction nor choice. He does not have the balls to even ask that he be allowed to study the issue before he renders an informed opinion. Kawawa sya. Lalo na ang ating bayan.

10:25 AM

 
Blogger betterphil said...

I am certainly in agreement that your replacement has got to do with the IMMEDIATE implementation of the transfer of custodianship to a particular private entity. The banks mentioned serve as mere covers. How did the identified private entity take precedence over other banks with capitalizations of PhP2.5 Billion or more? How much is that private entity capitalized at? In real Paid-up equity? Will this serve as the lifeboat (or nest egg) of someone who will be retiring soon? Now I am truly afraid and concerned for our country. It seems the big bad wolves have been given the responsibility and AUTHORITY over the treasury roost of our country.
On the new treasurer, kawawa rin sya. His subservience to the controlling powers is so obvious. He did not even have the balls to ask for some time to study the issues in-depth so he can render a more informed opinion. I guess the consent to implement the third party custodianship was the primordial criteria for the new tresurer's job. I pity him. But I pity more our country.
Won't some courageous and enlightened members of the legislature take up the cudgels for you, Ms. Lasala, and us common Filipinos?

10:41 AM

 
Anonymous Anonymous said...

Nina, havn't heard DOF why it sided with Banko Sentral on the 3rd party custodian?
Select the best answer:

a. Masarap pala umupo sa MB
b. Kahiyaan na.
c. Market reform kuno?
d. Magkano?
e. all of the above


Nina, I admire the courage you've drawn on and stood up for what you believe. YOU'LL NOT FIGHT THIS BATTLE ALONE! KASAMA MO KAMI!!!

1:47 PM

 
Anonymous Anonymous said...

If Omar Cruz was never the Head of Treasury of Citi Manila, we wonder what is his qualification to be appointed as National Treasurer. Kawawa naman siya. Magiging tautauhan na lang siya, tagasunod ika nga. Sabagay hindi mo naman kailangan maging magaling na treasurer para sa trabahong ito, dahil ang kailangan lang naman ng mga ponente nito ay isang taong marunong sumunod ng walang angal. Sana matauhan siya para maipagmalaki siya ng pamilya niya pagdating ng araw. Kung hindi naman siya matauhan at maging tagasunod na lang, may ganti ang lahat at ikakahiya siya ng kanyang pamilya. Bumaba tuloy ang pagtingin ko sa mga galing citibank. Ang alam ko sa mga ito matatalino at marunong mag-isip. Sana mali ako ng pag-tingin sa kaniya. Kaya kailangan ko ng pruweba, kailangan makita sa kanya na hindi siya tuta at marunong siyang mag-isip kung ano ang tama para sa kapakanan ng nakararami at ng bansa at hindi para sa kapakanan at bulsa ng iba riyan na ewan ko lang bakit kinakailangan pang maghangad e ang yayaman na.

7:50 AM

 
Anonymous Anonymous said...

I heard from a mole at the BTr that Mr. Edeza has been accompanying Mr. Omar Cruz to the BTr office. I find that rather strange. I know that Mr. Edeza is now connected with a bank -- RCBC. Is there no problem or conflict of interest there? By frequenting BTr, does Mr.Edeza not gain access to information that should be known only to BTr? Shouldn't Mr. Cruz be more careful? Afterall, Mr. Edeza is no longer a BTr employee. What does the government employees' CODE OF ETHICS say about this? Besides, why does Mr. Cruz have to be accompanied by Mr. Edeza to the BTr. Makes me wonder ...

9:42 AM

 
Anonymous Anonymous said...

The new treasurer should detach himself from anything that could affect his independence. It may not be such a good idea that he be seen as an extension of anyone else. Pag lagi syang hinahatid at sinasamahan ng iba, nagkakaroon ng ibang kulay ang kanyang pamamalakad. Maging maingat sana siya

9:47 AM

 
Anonymous Anonymous said...

I heard from a mole at the BTr that Mr. Edeza has been accompanying Mr. Omar Cruz to the BTr office. I find that rather strange. I know that Mr. Edeza is now connected with a bank -- RCBC. Is there no problem or conflict of interest there? By frequenting BTr, does Mr.Edeza not gain access to information that should be known only to BTr? Shouldn't Mr. Cruz be more careful? Afterall, Mr. Edeza is no longer a BTr employee. What does the government employees' CODE OF ETHICS say about this? Besides, why does Mr. Cruz have to be accompanied by Mr. Edeza to the BTr. Makes me wonder ...

9:48 AM

 
Anonymous Anonymous said...

I heard from a mole at the BTr that Mr. Edeza has been accompanying Mr. Omar Cruz to the BTr office. I find that rather strange. I know that Mr. Edeza is now connected with a bank -- RCBC. Is there no problem or conflict of interest there? By frequenting BTr, does Mr.Edeza not gain access to information that should be known only to BTr? Shouldn't Mr. Cruz be more careful? Afterall, Mr. Edeza is no longer a BTr employee. What does the government employees' CODE OF ETHICS say about this?

9:49 AM

 
Anonymous matanglawin said...

Whether Omar will perform his new job well or not is best left for future history. Let's not assasinate his character online because of political colors and interests surrounding his appointment and Ms. Nina's sudden ejection from office.

We all know that newspapers tend to exagerate (most of the time), so let's take the article with a grain of salt - we all know that. Let us not preempt Omar, in what he will do, can do and cannot do. He will learn all these in due time.

Let us also not question his associations with certain people becasue of our own perceptions. We all know that the industry is small and people know each other. We might just be putting color into the affiliation of Omar with Boy. Again, our own perceptions.

If we have an ax to grid about Omar's delicadeza by associating with Boy at the BTr, then by all means tell him. I would belive that he has a listening ear, and is open to suggestions and sound unsolicited advice.

7:41 PM

 
Anonymous Anonymous said...

hey, who died and made this matanglawin character a moderator?

go get you own blog!

4:33 PM

 
Anonymous Anonymous said...

FIE Launched!

It's really amazing how a guy like Omar, (a) without a lot of due dilligence into the issues surrounding it or; (b) much aware of the controversy surrounding the FIE, PDTC and the 3rd Party Custodianship decides to go ahead with this and not try to take a step back to assess the situation.

Who is Omar kowtowing to?

And to take it a step further, who is the DoF kowtowing to also?

I wouldn't be surprised if the other suspects here eventually become part of either the PDTC, FIE or a service provider (IT or otherwise) that services the FIE/PDTC. It is really indeed a golden parachute!

4:01 PM

 
Anonymous Anonymous said...

To the previous poster:

You mean to tell me that you suspect that someone, after retirement from thier current office, will eventually join FIE/PDTC?

Who could this be? Is the person an avid golfer? Is the person a former BAP Prexy? Was the person from a foreign bank before? Did the person head a bank formerly jointly owned by a Chinoy Taipan and a Broadcasting and Utilities Family?

10:36 AM

 
Anonymous Anonymous said...

y react to matanglawin's comment? r u guys afraid of free speech? look who's talking now? if u like nina, show it. if u like omar, show it...and yes, who died that matanglawin gives his opinion, r u afraid of matanglawin? or ur just immature and naive?

5:41 PM

 
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