Sunday, April 30, 2006

The Brewing Pre-Need Storm

The link above takes you to a headline from The story is about the merging of the legal teams of all pre-need victims to run after pre-need companies and their directors who obtained legal cover through court-sanctioned "corporate rehabilitation". I have a strong feeling this is the stuff that could make a revolution. Hard-earned money made by wage-earning parents were given to pre-need comanies ran by high-rolling executives. And all the billions of pesos vanished on sour investments. Do we expect the parents to simply accept that?

Personally, I think the whole pre-need system can only work if we have something like the Bangko Sentral ng Pilipinas (BSP) regulating them, instead of mere corporate regulators in the Securities and Exchange Commission (SEC). The system of check and balances and financial expertise cannot be found in the SEC. The experience and competence is with the BSP.

Meanwhile, the courts should dismiss all those "corporate-rehabilitation" cases, so the pre-need owners could meet accusations of fraud and racketeering in the proper criminal courts. If we give less than that to these pre-need victims, we are surely headed for chaos.

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