With due respect to our top govt officials, a trading company does not require huge capital

Every generation needs a revolution - an entrepreneurial revolution

Many of our distinguished legislators are questioning why a trading company has the barest capital to transact billions with the govt.   Its a trading company that is why and relies on credit and trust of its suppliers.   It is contingent upon shipping companies, factories and airlines to have huge equity   

But not for a trading company.   We ran a supermarket before  and we were running at 90% debt to equity  The suppliers whose sales manager were the old school network trusted us with their merchandise on credit

A hardware company with chain of stores I learned had most of their goods on consignment   

There seems to be nothing wrong with the little trading company capitalized only a small fraction of the total deal   Especially if they are friends of the suppliers,

Dennis Uy Udenna decries allegations vs the Malampaya take over; the field would be dry in 5 years

Every generation needs a revolution - an entrepreneurial revolution

Malampaya deal above board - Udenna from GMA news

Udenna through its lawyer Atty Raymond Zorilla said the Malampaya deal is above board.  There is no law requiring that the sale of shares of stocks that require prior govt approval.  The management of the gas fields shall be under the same persons who are now running the facility. 

The group decried making the deal a political battlefield.  A graft charge has been filed at the ombudsman

The deal was subject of an investigation by committee headed by Sen Win Gatchalian and alleged to be "lutong makaw"  (He is a Chinese and businessman too

Dennis Uy was reported to have spent $190 million for the deal (about P9,5 billion)  

The criticism vs the deal were based on alleged crony relationship with the President (he is from Davao and was alleged to have contributed plenty to the 2016 election campaign of PDU30) and lack of capital and expertise to push with the deal. 

Uy however has to contend with declining gas reserves at Malampaya  LNG production of Malampaya declining  It is down by 50% compared last year.  And the gas field will be completely exhausted by 2027.  I would comment that Udenna must be crazy to enter into a deal in field that would be exhausted in 5 years.    

To run the NG fed power plants in Batangas like the Ilijan and Sta Rita, the regassification facility are now being built.   

Re gassification process

Reasons to be confident about the business external environment

Every generation needs a revolution - an entrepreneurial revolution

                                                   vs. China

Important developments for Philippine Economy

1.   Its Gross International Reserve (GIR) tops $`100 billion  on account of higher gold prices.  No need to worry much on the P11 trillion debt ($220 billion debt)

2.  7.1 % GDP growth for the third quarter  vs 12% for the second quarter (Quite robust)

     This boosted the PSE and made the peso stronger.     The year to date is about 4%

https://www.bworldonline.com/peso-climbs-on-strong-q3-gdp-growth/

We can breathe with sigh of relief.