Defer the SSS-BDO Deal , Investigate All the Investments of SSS

Workers belonging to the Alliance of Progressive Labor (APL) today picketed the Bangko Sentral ng Pilipinas to press for the deferment of the Monetary Board’s approval of the controversial SSS-Banco De Oro deal.

“Until such time that the SSS has fully explained the propriety of the deal to its own members, the Monetary Board should not allow the deal to be

consummated,” Josua Mata, APL secretary general said. “Especially now that there is an accusation that someone got a ‘Christmas gift’ of P2 billion from the deal,” he added.

The APL declared that while they generally do not trust politicians, they nonetheless welcome the Senate’s probe into the matter. “All SSS investments must be carefully reviewed. For all we know, there may be other SSS investments that are in far worse condition than those in the Equitable-PCI Bank,” Mata said.

While everyone was out on a Christmas break, the SSS brokered a deal to sell its stake in the Equitable PCI Bank to Henry Sy’s Banco de Oro for a total of almost P14 billion. For a downpayment of only P1 billion, Banco de Oro will have full control of the 25.8% of the total outstanding shares in Equitable PCI Bank, the country’s third largest bank. The balance of almost P13 billion will be paid in the form of zero bonds maturing in 6 1/2 years. It was reported that the deal would result to SSS losing P6.7 billion or 42% of its investment and several questions remain unanswered.

The deal requires the imprimatur of the Monetary Board.

Is the SSS really getting the best price? What about the other offers reported in the newspapers? Was the option for a worker’s buyout explored? Why is the downpayment only P1 billion? Why not higher? What does the SSS intend to do with the P1 billion in downpayment? What is our guarantee that they will not squander it away again? Are the zero coupons of Henry Sy attached to BDO’s assets or revenues as guarantees for the balance of almost P13 billion? Why is it that until now, no one has been made to account for SSS anomalous exposure in Equitable-PCIB in the first place? These are just some of the more important questions being raised by the workers.

The APL vowed to continue to hold actions to ensure that no bad deal would be consummated. “We would be forever vigilant to prevent another SSS fiasco and ensure that our money would be safe from unscrupulous capitalists and politicians,” Mata declared.