Pre-Need Company Time Bomb

[Juan Tamad]

SPYBIZ By S.A. Maguire
The Philippine Star 04/14/2005

Spybiz received very strong reactions from readers regarding this pre-need company whose name reminds one of a frosty looking metal. Spybiz informants dug even deeper and came out with several interesting facts about this company. It’s apparently owned by just one family, so in most likelihood, there will be no other partners to help bail it out if the company goes belly up. Its liability for the next nine years in terms of matured pre-need plans is close to P11 billion, while its trust fund liability based on the portfolio of active, in-force and lapsed accounts is in the P30 billion range. The actual trust fund is reportedly just a little above P300 million, prompting the actuarial officer to resign after discovery of these horrific facts. The family that owns the pre-need company had allegedly amassed so much wealth, buying several luxury condos and cars, living the high life at the expense of the plan holders. The owner’s son is said to be engaged in "inside robbery," getting money from at least three Metro Manila branches of the company to the tune of P500,000 to P1 million a week, and replacing the cash collections with personal checks. Plan holder payments are now in jeopardy because the son could no longer pay back the amounts. The son apparently learned well from the father. What’s more, the quirky side of the family became even more apparent when they hired a woman psychic who claimed that she had visions of anomalies in the company, which resulted in a witch-hunt that saw the arbitrary dismissal of several employees because of fabricated charges. Insiders predict that it’s just a matter of time before this company time bomb explodes.

What company kaya ito?