PCHC Bails out BSP on Payment for Cash Management Machines

Manila Bulletin, September 4, 2006 | Go to article overview

PCHC Bails out BSP on Payment for Cash Management Machines


Byline: FIL C. SIONIL

The Philippine Clearing House Corporation (PCHC), the clearing firm wholly-owned subsidiary of the Bankers Association of the Philippines (BAP), has agreed to bail out Bangko Sentral ng Pilipinas (BSP) from a financial obligation worth P330 million for the purchase of the cash management machines.

Bank industry sources and documents obtained by Business Bulletin bail-out was brought about by the threat of a breach of contract suit to have been filed by Paris-based De La Rue, a leading provider of cash handling equipment and software solutions to banks and retailers globally.

Under the arrangement, PCHC will lease out the machines to the BSP for free to efficiently service the cash requirements of banks allegedly "for free." The payment, instead, will come in the form of reduced cost the BSP is charging banks.

Such is called "usufrunct" arrangement with the BSP "as a way for PCHC to recover costs."

"For instance, if banks are now paying BSP P20 for as service fee for the cash requirement distribution, the amount will be substantially reduced to P5. The rent of the cash resorting machines will be deducted from the servicing cost of the BSP," the source explained the process.

According to sources, the bail-out arrangement is not the only issue in question here.

It was pointed out that the "usufrunct arrangement with the BSP," wherein which PCHC will end up acquiring the machines "it has no use for," will eventually have collateral damage on the finances on its finances.

Excluded are the import duties, warehousing, shipment and other related costs.

Sources, too, said the BSP "is also under investigation by the Ombudsman for its role in the cash center project."

The De La Rue suit stemmed from the orders of seven high speed note sorter machines of the Cash Management Center Processing Inc. (CMCPI), which would have originally been a joint venture between the BSP and the BAP but the Commission on Audit (COA) rejected the regulators participation. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

PCHC Bails out BSP on Payment for Cash Management Machines
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.