Kilusang Mayo Uno

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NEWS RELEASE

February 22, 2006

EPCI-BDO  merger a done deal

KMU sees Arroyo pulling strings

The militant labor center Kilusang Mayo Uno (KMU) fears a “done deal” on the merger of Equitable PCI Bank and  Banco De Oro as Social Security System (SSS) President Corazon dela Paz assumes the chairmanship of EPCI replacing Ferdinand Martin Romualdez.

KMU Executive Chairperson Elmer Labog said that Dela Paz who has been outright vocal in favor of the EPCI-BDO merger is also known to be a stooge of President Gloria Macapagal-Arroyo, “Our group doubts that Dela Paz will protect the interests of 18 million SSS members in EPCI as she is infamous for entering dubious transactions disadvantageous to SSS members.”

Dela Paz assumption as EPCI chairwoman is welcomed and supported by Banco de Oro.

In September 1999, the SSS and GSIS financially supported the merger of Equitable Banking Corp and Philippine Commercial International Bank. The SSS and GSIS  paid P90 per share during the deal.

Labog recalled that in 2003, under Dela Paz’ steer, the SSS sold  187.85 million Equitable PCI shares  to Banco de Oro for 43.50 pesos each, but was hindered with a case in the Supreme Court because of opposition from various sectors due to the deal’s apparent loss to SSS members.

KMU doubts easy loan access for Leyte mudslide victims

Labog expressed doubts on Arroyo’s pronouncement that Leyte mudslide victims will get easy access on SSS loans. “The mismanagement of SSS funds through anomalous transactions like this is the main cause why members of the pension fund have difficulty in acquiring loans and benefits. With the present financial position of SSS, Arroyo’s statement is built on loose ground.”

Labog reiterated the call for a full disclosure of Social Security System (SSS) investments and asks legislators to investigate those behind “disadvantageous” ventures amidst the upcoming EPCI-BDO merger.

Labog warns that the SSS funds which is built upon the sweat and toil of workers is in threat of a “financial catastrophe.” Anomalous investments, Labog said, expose the SSS reserved funds to risks which threaten the retirement needs, education, health and welfare of SSS members and their dependents.

“Since it is the workers money which SSS is built on, the voice of the workers should primarily be heard regarding any major financial transactions, “ended Labog. ###

posted by: KMU at 04:39 | link | comments |

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