The Makabayan bloc has blocked Davao-based businessman Dennis Uy’s request that his multibillion-peso loans for his business expansion be under a sovereign guarantee.
According to Bayan Muna Chairman Neri Colmenares, Uy’s buying spree involving big companies from 2017 to 2019 was no surprise since he expected backing from the Duterte administration.
However, a government guarantee of the loans clearly showed Uy’s selfish interest which the public, specially Congress, must oppose, Colmenares added.
In a disclosure, the Uy-owned Chelsea and Infrastructure Corp. requested a guarantee from the Philippine Guarantee Corp. for its loans from nominated banks and financial institutions.
Once the government approves Uy’s application, PhilGuarantee will be mandated to pay 90 percent of the loan amount once Uy fails to pay or defaults in his obligation.
In response, Colmenares warned PhilGuarantee against giving sovereign guarantee to Uy and other big businesses and challenged other agencies to reveal the list of businesses given government guarantee under the administration of President Rodrigo Duterte.
“We warn Philguarantee against giving sovereign guarantee to big businesses at the expense of farmers, SMEs and public housing who need these funds the most. Additionally, we demand Philguarantee not to give guarantees on the basis of the closeness of the applicant to President Duterte instead of on the merits” said Colmenares.
“If the reports that Chealsea Logistics is planning to ask for sovereign guarantee are true, Filipino taxpayers should not be made to pay for loans of big business, that could have been used by farmers, Taxpayers must be informed where their taxpayers money are spent,” stressed Colmenares.
It remains unclear if the state guarantee being requested by Uy would cover new loans only or will include earlier ones from different institutions.
Until September 2019, Uy has loans amounting to P16 billion from the
Development Bank of the Philippines, BDO Unibank, Amalgated Investment Bancorporation, Visayan Surety and Insurance Corp, Philippine National Bank and Beijing-based Bank of China as a result of his ‘buying spree.’
Among those bought by Uy’s Udenna Corp. for the past three years were 45 percent stake of Chevron at the Malampaya gas field in Palawan; the Philippine franchise of the international service food chain Wendys, Conti’s Restaurant; Philippine franchise of Family Mart; Uy’s Motorstrada Inc which is now the exclusive general distributor of Ferrari Sports Car’s parts and accessories in the Philippines.
Uy has also bought the SuperCat Fast Ferry Corp, the subsidiary of 2GO where he is Chairman of the Board; and the BGC-based Enderun Colleges.