Changes in BSP/Alphaland deal

Our letter, “Alphaland windfall from BSP, speculative” (Opinion, 2/3/15), thankfully merited a rejoinder from Rodolfo Ma. A. Ponferrada, once a university schoolmate and now corporate secretary of Alphaland. (Mario Oreta, Alphaland president, was my senior.) In his letter, “Alphaland: BSP made ‘fantastic investment’” (Opinion, 2/18/15), Ponferrada virtually pledged a P3-billion-plus ROI on the P600-million land investment that the Boy Scouts of the Philippines (BSP) made—this on top of a monthly cash inflow of P634,160 from the lease of BSP’s share on the third floor of the six-level Podium, starting January 2014. With assurances no less from the parent company Alphaland Corp. that the BSP is entitled to what is rightfully due the two-million-plus strong boy scouts (which is P3 billion plus the lease income), this senior citizen (once a boy scout from the north) has no more motivation to pursue BSP’s monetary gain, in absolute terms, from the joint venture. How can we question the “in-house” figures shared with the public for the first time? The returns are deemed fantastic indeed!

But an objection must be made on Ponferrada’s attribution to me of the use of the phrase “raw deal” in describing the joint venture. I need not look for the files to verify. My recollection is still crystal clear. In fact, I held back. A close relative has words of admiration for his former boss, Roberto V. Ongpin as commerce and trade minister in the 1980s.

Of principal concern is an educated estimate of BSP’s monetary gains from the project. Nothing else is paramount. Alphaland management, which has strong credentials in corporate finance, may run rings around the BSP National Executive Board composed mostly of volunteers with no proven track record in professional deal-making. The Feb. 18 blue ribbon subcommittee hearings highlighted what appeared to be unilateral revisions by Alphaland of the June 2008 original sharing agreement—the Senate, citing the disclosures of the Securities and Exchange Commission that BSP’s share was impounded just to Tower 3, which is due for completion in 2016 yet, instead of all three towers. (Towers 1 and 2 are for delivery in 2015.) And Tower 1 obviously has fewer units. Maybe BSP’s combined share in the three towers will be moved to Tower 3. But this was not disclosed in the Senate hearings.

Regrettably, when asked by the senators to present a list of allocated units as to location, floor area and other parameters, BSP appeared still clueless. That speaks of BSP’s capability to manage a P3-billion project.

BSP, please abide by our motto; come prepared to the Senate hearing next time!

—MANUEL Q. BONDAD, [email protected]