Code-NGO, RCBC used stealth, influence to gain from bonds scam
10/25/2011The Caucus of Development NGO Networks (Code-NGO) formed by known backers of both former President Arroyo and President Aquino and which acted as the secretariat of Kompil II, the umbrella organization which called for the removal, impeachment and ouster of former President Joseph Estrada, and its bank partner, Rizal Commercial Banking Corp. (RCBC) of the Yuchengco group made a killing from the anomalous float of the so-called Poverty Eradication and Alleviation Certificates or PEACe bonds on Oct., 2001, using government connections, documents obtained by The Tribune showed.
Based on the documents, Code-NGO purchased the bonds with money it did not have and sold it to investors affiliated with RCBC, the very bank that underwrote the deal.
For this Code-NGO earned a staggering amount of P1.8 billion in gross profit. Code-NGO then distributed its windfall, paying its financial advisers and RCBC at least P400 million in fees. It kept 10 percent of the P1.4 billion, roughly P140 million, for itself, then set up the Peace, Equity, and Access for Community Empowerment Foundation (Peace and Equity Foundation), the incorporators of whom were mostly the same offcials of Code-NGO, with a permanent endowment of roughlyP1.3 billion, according to the documents..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/headlines/20111025hed4.html
2 comments:
kayong mga nagpunta sa edsa 2, you made all these scams possible due to your stupid sense of judgement.
"It was shown in the documents that RCBC was sure to win the bid in which it had already lined up clients for the bonds it will purchase to immediately buy from the said bank after the auction. RCBC received a two percent commission for the sale when the going rate for a P10 billion bond flotation was only one-half percent, based on the documents
"It was also shown that the Treasury should have rejected the bids because the gap between the purchase price and ultimate market value was too wide. Instead of using a 14.14 percent interest rate as the benchmark, the Treasury should have aimed for an amount that was closer to nine percent, which was the going yield of financial assets that are eligible to be used as bank reserves mandated by the BSP."
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