So Sad About Permaplans or Permanent Plans
I’m not a Permaplans planholder, but I’m so sad about what’s happening with Permaplans or Permanent Plans, especially with the pre-need firm’s interaction with the SEC.
Again, it’s the planholders who are suffering.
Back in April, Permaplans’ president Juan Miguel Vazquez said his firm isn’t considering going to court for rehabilitation because court rehab takes time and delays payments to planholders.
But now the firm has filed for rehab, which according to Justice Secretary Raul Gonzalez is not the best option for planholders. He mentioned this while commenting on the Legacy case.
Updates on Danvil Plans and Other Pre-need Firms from March to May 2009
March 13-19
At the Senate hearing on pre-need firms, former Legacy executive Carolina Hinola accused SEC Commissioner Jesus Enrique Martinez of covering up Legacy’s financial problems after accepting gifts from Legacy, including a 5-million-peso house and lot and a 1.5-million Ford Expedition from Legacy head Celso de Los Angeles.
Insiders also claimed that Martinez tried to broker the sale of Danvil Plans to the Legacy Group. The sale did not push through after Danvil Plans backed out of the deal allegedly upon the advice of other top pre-need executives.
(Martinez died on May 6 due to colon cancer complications.)
Pre-Need Philippines: Kabado Na Naman?
Pagkatapos na ma-assure tayo na licensed pre-need dealer for 2009 ang Danvil Plans at isa siya group of pre-need firms na willing to increase their capital, ito naman ngayon…
Nakakakaba yong sinabi ni Jose Miguel M. Vazquez, Federation of Pre-need Companies of the Philippines president, noong February 20 tungkol sa business na pre-need.
Nag-research uli ako ng news ngayong umaga about pre-need sa Internet noong nakita ko sa ABS-CBN news kagabi yong pagsasalita ni Vazquez habang ini-interview siya.
Ini-extend kasi ng SEC mula February 15 hanggang April 15 yong deadline ng mga pre-need companies para dagdagan ang capital nila.
Ang sabi ni Vazquez ay kailangan pa nila ng mas mahabang time para isipin kung magpapatuloy pa sila na mag-business. Iisipin daw nila kung profitable pa raw ba ang business na pre-need. Ano ba yon?
Vazquez’s exact words:
“Is it enough time? Probably not, since each company is assessing whether to continue, should continue and can continue. It is not just a question of capital. Each company is reviewing whether there is still a future [in this business] and this cannot be determined in such a short time.”
According sa news na ito of Business World online, the group said some pre-need companies were considering stopping operations and were just trying to pay plan holders due to their huge trust fund deficits.
In the same TV news, nagsalita rin si Philip Piccio, the head of the PEP Coalition. Ina-accuse niya yong mga pre-need companies na sinasadya raw nilang ipakita na nalulugi na sila kahit hindi para hindi nila ibigay yong full values ng pre-need plans.
Source:
BusinessWorld February 21, 2009
Danvil Is Still Berkley on Pre-need Federation Website
Just like Danvil Plans, the Philippine Federation of Pre-Need Plan Companies Inc. (PFPPCI) doesn’t also update its website. The latest post on the site was posted two years ago. Is this one of the signals of the difficult conditions of the pre-need industry? They don’t have people to update their web sites, or they don’t have something to say?
Anyway, according to what’s on the website, as of 2007, there are 48 members. But when one looks at the list of members, there are only 29. These are:
1 Ayala Plans Inc.
2 Berkley International Inc.
representative: Alan Michael Rafe, president
alternate: Daniel Villanueva evp, CFO
3 CocoPlans Inc.
4 CAP Pension
5 CAP Assurance
6 Destiny Financials
7 East Asia Plans
8 Eduplan Inc.
9 Eternal Plans
10 Excel Memorial Life Plan
11 First Union Plan
12 Himlayang Pilipino Plans
13 Ideal Pension Plans
14 Loyola Plans
15 Mercantile Care Plans
16 Manulife Financial
17 Paz Memorial
18 Permanent Plans
19 Philam Plans
20 PETPlans
21 Primanila Plans
22 Provident Plans
23 Prudentialife Plans
24 Redeemer Life Plan
25 St. Peter Life Plan
26 Sun Life Financial
27 TPG Corp.
28 Transnational Plans
29 Trusteeship Plans
The following firms are not listed, but they are included on the home page’s flashing ads:
30 AMA
31 Classic Plans
32 Gillamac
33 Lifetime
34 Millennium
35 Platinum Plans
36 Pryce
It’s interesting to note that the three failed Legacy pre-need firms are not on the list.
Same with Pacific Plans. It’s not in the list. However, according to Chino S. Leyco’s article in the January 28, 2009 issue of “Manila Times,” Noel Oñate, the businessman who acquired Pacific Plans from the Yuchengcos, was elected to the board of the PFPPCI on January 27. Oñate’s company Abundance Providers and Investments Corp. bought Pacific Plans in December 2008 for 250 million pesos.
The one we see speaking on television speaking for the pre-need industry these past weeks, Juan Miguel Madrigal Vazquez, has been president of the PFPPCI since 2005, possibly earlier. I can’t find info on when he was elected president. His educational and professional background is on the site. He’s the president and CEO of Permanent Plans.
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