‘Jueteng operators’ Middle East invasion

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Emeterio Sd. Perez

Emeterio Sd. Perez

Twin dividend. I-Remit Inc. is distributing 20.587 million treasury shares as property dividend to stockholders as of August 16 in addition to P0.0422 per share dividend both payable on September 11.

The acquisition of 20.587 million treasury shares cost I-Remit P69.210 million, which translates to P3.312 per share. I-Remit closed at P2.94 on Friday.

In a filing posted on the website of the Philippine Stock Exchange, I-Remit said the property and cash dividends will come from retained earnings of P334.507 million, of which P265.297 million was unappropriated as of December 31, 2012.

“Jueteng” invasion. I-Remit has organized a number of subsidiaries to operate in various countries, including those in the Middle East to efficiently serve its market.

But these units also found the strongest competition to attract clients from illegal operators who are engaged in currency transfers “outside of regulatory restrictions” one of which is called “kaliwaan system” (which means on-the-spot cash remittance).

“The method has been the subject of congressional inquiries because of its use in money proceeds from illegal activities such as “jueteng.”

I-Remit did not elaborate how OFWs (overseas Filipino workers) use “jueteng” in remitting money to their families in the Philippines. But it would be easy to deduce from its filing that the illegal numbers game has invaded the Middle East countries.

Simply put, the two-number combination is raffled in countries where OFWs thrive with the lucky winners’ winnings paid to their families back home. P3.8-trillion revenues. “Is it inclusive?” Senate President Juan Ponce Enrile asked this during his program aired over dzAR on Saturdays.

Apparently, he was referring to the benefits of economic growth if these reach all Filipinos.

The answer, of course, is in the negative. Economic growth, if one were to closely analyze it, does not reach every one of more than 100 million Filipinos.

Take for instance a report issued by the Philippine Stock Exchange that “corporate revenues of listed companies grew by 17.5 percent to P3.80 trillion in 2011 from P3.24 trillion in 2010. . .”

Most of these the bigger and more profitable companies, are controlled only by a few who nevertheless share from P429.96 billion net profits, though down 1.90 percent from P438.09 billion in 2010.

The revenues, in turn, represent 41.229 percent of the Philippines’s gross domestic product valued at $224.8 billion, which, in turn, equals P9.217 billion at P41 to a US dollar.

For students’ sake. The Securities and Exchange Commission could also be sympathetic if its officials want it to be. It has shown this in the case the University of San Carlos, which used to enjoy perpetual corporate term when it registered with the SEC on February 11, 1911 under the old Corporation Law.

But when Batas Pambansa 68 took effect on May 1, 1980, USC should have reregistered because the new law limits a corporation’s term to 50 years.

Did the school’s failure to renew its SEC franchise under Batas Pambansa 68 end its corporate existence?

No, according to an SEC opinion signed by Camilo Correa, SEC general counsel, as to say otherwise would be “detrimental to students who might be affected by the dissolution of their school.”

Common anniversary. Having been saved by the SEC’s favorable opinion, the University of San Carlos still exists as a stock corporation. But what happened to the renewal of its SEC franchise?

As the SEC has opined, USC and other schools in similar situation are deemed to have obtained a new 50-year corporate term from May 30, 1980, the date Batas Pambansa 68 took effect, until May 1, 2030, “unless sooner dissolved or extended within the prescribed period under the Corporation Code.”

(Note: Should it not be April 30, 2030 so as not to exceed by one day the 50-year term?)

Since the SEC’s opinion covers all, a number of schools that have not availed themselves of the two-year period within which to renew their SEC registration would be observing with USC the same anniversary of the start—May 1, 1980—and end—May 1, 2030—of their 50-year SEC certificate of registration.

esdperez@yahoo.com

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