Skip to main content

HOW A BUSINESS SCANDAL IN FAR AWAY AND LITTLE TOWN MANILA CAN POSSIBLY ROCK GERMAN POLITICS

A quick comparison of Germany and the Philippines shows that its land and population sizes are quite identical. Germany has a land area of 357 thousand sq km and a population of 82.4 Million while the Philippines has 300 thousand sq km and 87.8 million respectively.

However, a continued look will show that most of the other characteristics will paint a picture of David and Goliath. Most glaring is Germany's GDP (adjusted based on Purchasing Power Parity) of US$2.85 Trillion compared to the Philippines' $443.1 Billion. In terms of equality, Germany's percentage of population below poverty line is a low 11% compared to the Philippines' 40 percent.

Though the picture paints a thin and weak Philippines compared to a muscular European country, something is brewing in that part of Asia which threatens to scandalize German politics.

It all started with a noble project on 1996 to Build Operate and Transfer (BOT) a new Manila airport terminal. The bidding was won by PairCargo and its partner Fraport AG of Germany which immediately started building the new terminal. However, before the project can be completed, the project became the subject of lawsuits and arbitration between the Philippine government and Frapport AG. Much has been written about the case but a new twist recently came when a German stockholder of Frapport AG recently came into the Philippines and is said to have brought documents that may weaken the German firms position.
"The documents entrusted to Wengert included minutes of a Fraport board meeting with incriminating evidence showing that the board new and approved certain acts that violated several Philippines laws, including the foreign ownership limits, anti-graft, the build-operate-transfer law, among others."
While this may be nothing like an ENRON scandal, one explosive twist is the involvement of some of Germany's potential future leaders who sit at the Frapport board. Newspapers in the Philippines have reported that the stockholder has already been sued several times in order to prevent him from disclosing the potentially damaging documents. Such cases simply fueled more curiosity over the case.

Comments

Anonymous said…
got that right

philippines change the rules in the middle of the game

:(
Antonio Andolini said…
Hi Tutubi!

I had my sympathies for Frapport until I heard about that deliberate attempt to use illegal means to do business in the Philippines.

If the allegations are proven to be true, they should pay for playing around with German and Philippine laws.
Anonymous said…
I agree with both of you. Those at fault must do something to rectify the damages caused.

Popular posts from this blog

Land Reform: Land of Bondage Land of the Free

One of the most moving speeches that I've read. During grade school, this was the most often recited elocution piece in my school. Here it is, the text of Raul Manglapus' Land of Bondage, Land of the Free. Land of Bondage, Land of the Free By Raul Manglapus And yet, ladies and gentlemen, the tao is constitutionally free! No wonder, then, that the tao being a slave has acquired the habits of a slave. No wonder that after three centuries in chains, without freedom, without hope, he should lose the erect and fearless posture of a freeman, and become the bent, misshapen, indolent, vicious, pitiful thing that he is! Who dares accuse him now? Who dares rise up in judgement against this man, reduced to this subhuman level by three centuries of oppession? Ladies and gentlemen the tao does not come here tonight to be judged -- but to judge! Hear then his accusation and his sentence: I indict the Spanish encomendero for inventing taxes impossible to pay! I indict the usurer for s...

US PRESIDENTIAL CONVOYS

A columnist for a Philippine newspaper talks about the costs and massive preparations required by the US Secret Service whenever President Bush and other (US Presidents) travel outside of Washington DC. I remember watching a CNN report that showed how big a US presidential convoy is, compared to the two vehicle transport being used by Prime Minister Tony Blair of the UK.

How's the Philippine Economy?

The papers report the following: Mutual Funds are UP: First Metro leads the pack with a yield of 18% (year-to-date)with the others, not too far behind. It simply means that an investment made at the start of the year would have already earned 18% of its original value, by now. The Philippine currency is UP: The peso is close to breaking below PhP 48 to a dollar. The Stock Market index is close to attaining an all time (Pre Asian Crisis level). What does it actually say? The continued success of the country's Mutual Funds will most probably lure more foreign (short term investments) into the country. With the american mutual funds market hitting an average of only 10% for the entire 2006, more hot money can be expected to come in. If this momentum continues, coupled with a sustained increase in OFW (overseas foreign workers) remittances, and the absence of a sharply negative occurence in all the other sectors of the economy, the US dollar will most likely continue to decline. D...