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, May 24, 2005

SPOT THE DIFFERENCE - Third Party Custodianship Rule vs. Cash Management Center Project (Paging COA and the OMBUDSMAN)

In a letter of 25 April 2005 addressed to the President of the Bankers' Association of the Philippines, BSP Officer-in-Charge wrote that "As a consequence of the aforesaid letter (of COA), the BSP Monetary Board in its Resolution No. 519 dated april 14, 2005, instructed as follows:

a.) That CMC should be suspended in the meantime; and,
b.) That a letter be prepared for the COA chairman informing him (i) that the BSP has received aforesaid letter, (ii) that the BSP shall revisit its decision relative to the project; and (ii) that it is suspending the works involved therein.

As you may realize, the foregoing developments may affect the continuance of the project.

Please be guided accordingly."

WHAT EXACTLY WERE THE FINDINGS OF COA?

ISSUES OR POINTS RAISED BY COA versus the CMC PROJECT:

1. BSP has not satisfactorily shown that (it) will be efficient and cost-effective

2. BSP cannot delegate its power

3. There is no legal basis

4. It is violative of SEc 27 of RA 7653

5. That it is illegal, irregular, extravagant and unconscionable expenditure of the BSP

A further note on the letter of the BSP indicated " Consider determining persons who may be held primarily liable including other parties who have acted in bad faith, under the provisions of RA 3019 otherwise known as the Anti-Graft and Corrupt Practices Act"

14 Comments:

Anonymous Anonymous said...

Is this another ill considered project? At least the BSP saw sense in suspending it. Maybe they'd see sense in suspending 392 and 428 instead of bullheadedly forcing it on unsuspecting investors/public.

5:48 PM

 
Anonymous Anonymous said...

Let me spot the difference- this is a BSP function BSP is giving away. In 392 and 428 , it is the BTR's function that BSP is giving away.

The first is subject to the corrupt practices act, the second is ...... let me guess

5:51 PM

 
Anonymous Anonymous said...

Ah, Cash Center pala 'yon. If COA's findings were adverse against the Cash Center project, the third party rule is even more injurious,therefore, COA's or Ombudsman's review ahould be even more prejudicial. Kailangan pa bang may mangyaring LOSS katulad ng cash center para siyasatin anG ANOMALYANG ITO?

3:19 PM

 
Anonymous Anonymous said...

To the second poster:

Allow me to add to your observations:

Cash management - A BSP function that the BSP is giving away;

Custody - a BTr/banks function that BSP is giving away (to a non-bank entity btw, should it be the SEC who should have the authority with regards to securities as Joker pointed out)

A credit bureau that is a private function - BSP is thinking of getting into

Someone, somewhere, there is a brilliant mind behind all of these...now find the intersection!!!

3:30 PM

 
Anonymous Anonymous said...

Hi All:

Those who wish to make the cash management center issue more public, please email me at bob.sakamento@gmail.com. Your identity will be held in confidence.

Bob

8:30 PM

 
Anonymous Anonymous said...

Speaking of bad faith and similar practices, I remember hearing from the news recently that the BTr and the DOF will be going on a roadshow abroad to raise funds again for next year's needs. Btr also said they are doing this this year while interest rates are low. Why should the DOF/BTr borrow beyond the targeted borrowing levels? Has not the targeted level been set already this year? Would they not "forget" the amount borrowed by next year when they set the targets for 2006? Moreover, the amount they will borrow now will stat earning interest and will be an add on to the amount the Philippines will be paying even BEFORE we actually need the money.
I hope they are not going to this roadshow merely for junket purposes and for the per diems and free trips and accommodations, etc... kAWAWA NA NAMAN ANG PILIPINAS AT ANG MGA PILIPINO.

11:24 AM

 
Anonymous Anonymous said...

The Philippine Government is run by sith!!!

12:27 PM

 
Anonymous Anonymous said...

i cannot believe the gall of the people behind the cash center and the RoSS issues. They must have graduated from a school where money is the god of everything, regardless... as long as they make money (tons of it!) for themselves and their benefactors. For these money-eyed monsters, forget about the hapless Filipinos - let them suffer... let them die...

3:14 PM

 
Anonymous Anonymous said...

You are right. You know,I am beginning to think it is not just these people in the cash center and ROSS issues who are of that kind. Have you noticed that many in the government are also of the same kind? That is the sadder truth. The godlessness pemeates all levels of our government now from the very top of the hierarchy. How else could acts like that of the cash center and ross issue guys get away with what they did? They will realize sooner than they expect that THERE IS A RECKONING TIME. AND THAT TIME MAY BE VERY SOON.

8:27 AM

 
Anonymous Anonymous said...

The problem is that BSP people thinks they are not accountable to anybody... that is why they did what they did and not afraid of any consequences... and probably they will try again and gain!... and it seems that there are no more jedis around to save us from these evil creatures.

10:01 AM

 
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