1. NBN ZTE Scandal (130 Million Dollar Kickbacks)
2. Millions of bribe money to Congressmen and Governors (October 2007) where Gov
Panlillo showed the bag of Money (500,000 Each)
3. Cheating in 2004 Elections (Hello Garci) CNN/SWS survey Shows 85% of Filipinos
believed she CHEATED during the elections
4. Joc Joc Bolante Case (Fertilizer Scam, P728 Million)
5. Jose Pidal Bank Account (Unexplained Wealth, P200 Million/Mike Arroyo)
6. Nani Perez Power Plant Deal (98 Million pesos/2 million dollars)
7. Use of Road User's Tax for Campaigning
8. Billion Peso Macapagal Boulevard (Overprice of P532 Million)
9. Juetengate (Illegal Numbers game kickbacks/200 millions/Bong Pineda)
10. Extra Judicial Killings
11. Arroyo Moneys in Germany (Exposed by Senator Cayetano/700 million)
12. Billion Peso Poll Automation contract (P1.3 Billion)
14. Northrail Project(503 Million Dollars )
15. Maguindanao Results of 2007 Elections (Zubiri, Bedol)
16. NAIA-3 some $20 million from Fraport, the German firm with a 30-percent stake in
Piatco, in exchange for legal favor.
17. Venable Contract (Norberto Gonzales 400 million)
18. Swine Scam (Exposed by Atty. Harry Roque) - Details in this link
http://www.newsflash.org/2004/02/hl/hl107311.htm (500 million pesos)
19. P432-million fertilizer deal in 2003
20. Journalist and former Ombudsman of the DA Marlene Esperat was killed 2005. The gunmen were
apprehended and convicted,but the mastermind was
nevercaught.newsinfo.inquirer.net/inquirerheadlines/nation/view/20081023-167961/Marlene-Esperat-
murder
21. AMPATUANS - She did not respond right away because FPJ got zero vote in the kingdom of ampatuan,
where even FPJ poll watchers claim that they voted for FPJ's/ 56 People were murdered and an ally of
GMA
23. Million Peso Dinner in New York
24. Houses in Pampanga / worth 50 million
25. Undeclared asset and liabilties (from 5 million in 2001 to 171 million in 2009)
26. House in USA $7.1 million in the Bay City from 1992 to 2000. ( courtesy of MikeyArroyo) and Stament of
asset and liability during Igans's and Winnie Monsod interview. Mikey inability to explain his source of
money
27. Oakwood Mutiny and State of Emergency ( Nowhere to found in the Constitutions)
28.IMPSA Four days after it assumed office, the Arroyo administration approved the
awarding of a controversial $470-million contract to the Argentine firm
29. MIKEY’S HORSES Newsbreak in August 2003 broke the news on a plan of presidential son Juan Miguel
“Mikey” Arroyo to import 32 thoroughbred horses from Melbourne, Australia ($1.2 Million)
30.LAS VEGAS SUITEThe First Gentleman was the subject of another controversy over his
alleged use of a $20,000-a-night suite at the MGM Grand Hotel in Las Vegas,
Saturday, March 6, 2010
Wednesday, May 6, 2009
PRE-NEED PLANS VS INSURANCE
The pre-need issue has been a big concern for thousands of Filipinos. Many are in anguish because they have lost their hard-earned money or they will be losing their investment. I have granted many TV interviews and have given dozens of advice on the issue in the past few weeks.
What is a pre-need plan to begin with? The broad definition of preneed is that it is a “security” being sold by a preneed company. It looks and feels like it is an insurance product, but it is not. It looks like a trust product, too, but it is not, either.
In fact, you’ll find the pre-need to just “exist” in the Philippines. Proponents of preneed have boasted it to be a genuinely “Pinoy” invention. The closest earlier preneed I know of are those you find in mortuaries in the US, where you can prepay your memorial expenses at a discount.
When you look at the design of a pre-need product, it is very similar to an endowment policy being carried by life-insurance companies. With life-insurance companies also setting up preneed companies, the public gets more confused and the general public can’t distinguish the differences. Through the years, preneed products became mainstream investment instruments and have become part of the psyche of Filipinos. With very good branding and marketing endeavors by preneed companies, most Pinoys would dream of having a pre-need educational plan for their children.
What happened? Why did preneed companies start to fold up? There are many theories to explain their current predicament. But the current financial crisis should not be used as an excuse by the preneed companies. We all know that many of them were already beleaguered for some years now.
Why are they in trouble?
One reason is that many of the plans that many pre-need companies were selling were not “actuarially” sound. According to Wikepedia.com, “actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries.” Simply put, we can surmise that some preneed plans were lacking in actuarial studies, a big reason they sold products that may be flawed by design.
Another probable reason is wrong investments by Pre-Need companies. Yields will always be a function of risks. I noticed that many preneed companies are heavily invested in real estate and other riskier and non-liquid investments. We all know what happened to the real-estate industry. Imagine a company that you invested in putting a bulk of its investments in real estate. When maturities fall and you find your investments with minimal growth or, worse, illiquid, how will you meet your obligations?
How do preneed companies really invest their funds? We only hear about their trust funds, but what are in those trust funds? It is great if these companies are wholly transparent with what they do with their plan holders’ monies. By contrast, life-insurance companies are heavily invested in bonds, mostly treasuries.
Flawed design and poor investment decisions are a reflection of management competence. Not all preneed companies are in trouble, although there are just very few of them that are “strong and stable.” When you look at these “strong and stable” preneed companies, you will see that they employ prudent investment strategies, are actuarially sound and probably employ competent management teams. Sadly put, the majority of the players in this industry are in catatonic state, leaving their plan holders shaking their heads in disbelief and grief.
I would like to raise two questions. First, why is it that there are no preneed companies/products in other countries? Could it be that they know things that we don’t? Second, I would want to ask the regulators—why, why, why?
If you have invested in a preneed plan, what can you do now? Further, how should you invest for your pension and education now that preneed companies are in a flux? Catch part two of this column in two weeks.
I wish to leave you with these words: Then he said, “Beware! Guard against every kind of greed. Life is not measured by how much you own.” (Luke 12:15 [NLT]).
What is a pre-need plan to begin with? The broad definition of preneed is that it is a “security” being sold by a preneed company. It looks and feels like it is an insurance product, but it is not. It looks like a trust product, too, but it is not, either.
In fact, you’ll find the pre-need to just “exist” in the Philippines. Proponents of preneed have boasted it to be a genuinely “Pinoy” invention. The closest earlier preneed I know of are those you find in mortuaries in the US, where you can prepay your memorial expenses at a discount.
When you look at the design of a pre-need product, it is very similar to an endowment policy being carried by life-insurance companies. With life-insurance companies also setting up preneed companies, the public gets more confused and the general public can’t distinguish the differences. Through the years, preneed products became mainstream investment instruments and have become part of the psyche of Filipinos. With very good branding and marketing endeavors by preneed companies, most Pinoys would dream of having a pre-need educational plan for their children.
What happened? Why did preneed companies start to fold up? There are many theories to explain their current predicament. But the current financial crisis should not be used as an excuse by the preneed companies. We all know that many of them were already beleaguered for some years now.
Why are they in trouble?
One reason is that many of the plans that many pre-need companies were selling were not “actuarially” sound. According to Wikepedia.com, “actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries.” Simply put, we can surmise that some preneed plans were lacking in actuarial studies, a big reason they sold products that may be flawed by design.
Another probable reason is wrong investments by Pre-Need companies. Yields will always be a function of risks. I noticed that many preneed companies are heavily invested in real estate and other riskier and non-liquid investments. We all know what happened to the real-estate industry. Imagine a company that you invested in putting a bulk of its investments in real estate. When maturities fall and you find your investments with minimal growth or, worse, illiquid, how will you meet your obligations?
How do preneed companies really invest their funds? We only hear about their trust funds, but what are in those trust funds? It is great if these companies are wholly transparent with what they do with their plan holders’ monies. By contrast, life-insurance companies are heavily invested in bonds, mostly treasuries.
Flawed design and poor investment decisions are a reflection of management competence. Not all preneed companies are in trouble, although there are just very few of them that are “strong and stable.” When you look at these “strong and stable” preneed companies, you will see that they employ prudent investment strategies, are actuarially sound and probably employ competent management teams. Sadly put, the majority of the players in this industry are in catatonic state, leaving their plan holders shaking their heads in disbelief and grief.
I would like to raise two questions. First, why is it that there are no preneed companies/products in other countries? Could it be that they know things that we don’t? Second, I would want to ask the regulators—why, why, why?
If you have invested in a preneed plan, what can you do now? Further, how should you invest for your pension and education now that preneed companies are in a flux? Catch part two of this column in two weeks.
I wish to leave you with these words: Then he said, “Beware! Guard against every kind of greed. Life is not measured by how much you own.” (Luke 12:15 [NLT]).
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