Malampaya: Why sell goose laying golden eggs?
Posted by akosistella on March 17, 2010
DEMAND AND SUPPLY
By Boo Chanco
With only three months to go before a new administration takes over, it is easy to see this impending sell-out of a prime revenue-generating government asset as one more short-term measure of this administration most probably for some kind of self-serving gain. The deal is obviously unwise from a business investment point of view and seems fraudulent from a governance perspective, Ms. Ferrer observes.
Given the reputation of this administration it is easy for some to “surmise the funds will be diverted to private pockets, or electioneering. Others think the administration wants to exit without the shameful legacy of a huge budget deficit…. Still others cannot help think of even more sinister plots in the offing, such as the eventual privatization of the much devalued PNOC-EC at bargain prices to a favored investment group.”
Or maybe, this is just a case of a very desperate Finance Secretary who is ready to sell the most saleable government asset regardless of other strategic considerations because his exit report card would otherwise report that large deficit. But if he is using his brains the way he used to in his younger days, he would realize that ending his watch even with that deficit number is not as bad as losing a strategic investment in a strategic industry that also more than pays for itself.
Click Boo Chanco.