ROM one reader who
did not identify himself (I have his e-mail, though) we have a list of those
partners who did not sign the document presented to them by Earnest & Young. I
have used it as is (without correction) excising only a portion that further
involves other persons and unnecessarily complicates the story further. Here it
is: "Would like to correct you on the 12 accountant patriots. They are 13.
"1. Manny Reyes - the leader; 2. Mildred Ramos - MC Leader;
3. Lizette Peralta; 4. Betty Siy-Yap; 5. Boy Vinzon; 6. Manny Clariño; 7.
Bennette Bachoco; 8. Joel Tan Torres; 9. Cocoy Tacandong; 10. Carlo Angeles; 11.
Linda Manto; 12. Haydee Reyes; 13. Bel Fernando
"Are you sure that these people are really accountants
patriots? or was there a people behind their protest? We learned from an inside
that these 13 people has asked a certain amount for the exit package in the
company. An amount that could brought down the company or in a correct term to
closed and we will have a 2,000 plus unemployed from this company.
"A blog in a certain website has been blocked by this company
because there are hidden agenda of the above names has been posted and read by
some of their staff that was under their supervision.
"I think you better interview both sides. If you could asked
somebody to have a copy of the demand letter of the 13 - you so called
accountants patriots. You will be shock!
"They don’t deserved to be called the accountant patriots if
they demand a monetary for their exit. They asked the company to give them their
share within 3 days of else they will file a case against SGV. Remembered that
the monetary/shares they are asking was beyond our expectations. They even
sending e-mails to the companys clients and questioning the integrity of it and
even the founder of the company.
"Mr. Ducky Paredes I don’t think these 13 people deserves to
be a accountant patriots. I sent you this just to let you know the real story."
***
Thanks for filling out the details. We have a second letter
from someone whom we identified wrongly.
***
Another reader writes: "I just read your column today at the
Malaya with great interest and a little concern. Great interest because like you
probably, I am a nationalist but a little concerned because my name was used out
of context in your article.
"Just as an introduction, my name is Alfredo J. Non and a
former partner of SGV & Co. I was affiliated with the firm for 26 years until my
early retirement in 1994. From there, I proceeded to work with the Lopezes as
GM/CEO of a subsidiary (RCPI) where I met your brother Gabby who replaced me
when I left in 1999. From RCPI, I joined the interim management group formed by
former DAR Sec. Sonny Dominguez and that is where I met another relative of
yours - Joey Leviste. I stayed in PASAR till 2002 when we turned over the
management to the Swiss owners. From there, Sonny Dominguez and I went on to
manage a mining company but this time without Joey who was then involved in
another mining company in North Luzon.
"So, you see, I cannot be the replacement for Dave Balangue
as Country Head and CEO. The replacement is Cirilo Noel, a tax lawyer. However,
I am involved in the fight against the Integration being imposed by EY. I hope
that reporters like you who have a deep sense of Nationalism would pursue this
matter to its conclusion. The conclusion to me cannot be anything less than the
ouster of EY from its affiliation with SGV. True, the agreement can be changed
to reflect the spirit of the law but I believe that over time, EY will find a
way to bring it back because its Integrated structure worldwide has been there
since 2000 and a small practice on the international scale like SGV cannot
change it overnight."
***
Thanks. I have no excuse. Major errors like these come with
having newly-imposed too early deadlines; thus, columns are written before the
day begins and one could still be half-asleep. But, since this is still a new
thing with Malaya, I probably will eventually get used to the new schedule and
do better in a couple of weeks. Thank you for your letter.
***
From a former SGV partner: "If it was a simple affiliation
agreement, why are there four different legal positions? One maintains that the
integration is okay, but another says it is not. Another position says it is
okay but. . .
"A later confirmation with another lawyer indicates that the
integration agreement can be challenged and may be difficult to defend as it is.
"Under the Code of Ethics, this internal crisis, where the
partners themselves could not agree, would have required the SGV partners to
consult an independent party (confidentially) for guidance. Failing to reach any
conclusion, they should have consulted the regulatory bodies (SEC, PRC, etc.)
also for guidance.
"Again, failing to reach an agreement at this point and,
taking the conflicting legal opinions mentioned above, the SGV partners are
expected to take a course of action that would protect the Philippine practice,
avoid any legal issue or violation of laws and eliminate any doubt that it has
permitted a questionable transaction to prosper. The more prudent decision at
that stage can only be the repudiation of the affiliation agreement with EY on
legal grounds."
***
One would have expected accountants and auditors to take the more
conservative and safer road as auditors always tell us we should rather than
opting for a reckless plunge into uncharted waters. But, then, of course,
neither the PRC of the SEC or other agencies – including Congress – may not have
what it takes to take on the venerable firm established by Wash Sycip when being
Pinoy did not yet matter and having SGV around doing better than foreign
accountancy and auditing firms was a source of pride for all of us.
