INSTEAD of bringing peace, last week?s unceremonious sacking of David Balangue as managing partner has further poisoned the atmosphere within SGV, with Balangue, according to the grapevine, now becoming a reluctant ally of the anti-integration bloc against SGV?s de-facto principal, Ernst & Young.

Despite the written denial by Romulo Mabanta Buenaventura Sayoc & De los Angeles on behalf of the multinational accounting group, Cocktales has confirmed that as early as Oct. 22, the internal agreement and forced management changes were already being discussed by Balangue and Jim Hassett, the Hong Kong-based Far East Area head of Ernst & Young overseeing SGV.

A breakfast meeting took place on that date at the Makati Shangri-La?s Red restaurant, where the forceful Hassett not only startled Balangue but even the waiters hovering nearby when the visiting American issued in what is now known in the SGV folklore as a ?Fire-them-or -you-get-fired? ultimatum.

Attended also by Steven Phan, Ernst & Young?s Asean head, Balangue, according to the grapevine, had reported to Hassett the difficulties he was encountering with the other partners opposed to the higher level of integration that the multinational was asking SGV to agree to.

One particular bone of contention: the proposed consolidation of SGV?s financial statement with that of E&Y?s.

While the Romulo Mabanta firm sees nothing irregular about the proposed integration, SGV?s own counsel, Sycip Salazar Hernandez & Gatmaitan, has warned Balangue that the SGV partners were courting violation of the Constitution and the anti-dummy law should the integration proceed.

Sycip Salazar, incidentally, is the law firm founded by Alexander Sycip, brother of SGV founder Washington Sycip, who has taken the Ernst & Young side.

Now, this should make the still unfolding SGV saga an even gripping case study on corporate governance at the Asian Institute of Management.

Picpa chief on firing line

The partnership turmoil within SGV threatens to wash up even to the Philippine Institute of Certified Public Accountants, the industry association whose president happens to be an SGV partner.

According to the grapevine, Picpa president Protacio Tacondong is one of the 15 SGV partners who have refused to sign, on pain of dismissal, the ?Internal Agreement? with SGV principal Ernst & Young.

The chief finance and administrative officer and head of branches of SGV, Tacondong is one of the core officers of what appears now to be a dissident SGV group that also includes SGV vice chairman Roman Felipe Reyes, who ironically started his career in what was then known as Ernst & Whinney in New York; tax expert, Wharton scholar/UP summa cum laude graduate and market circle head Feliza Peralta; another market circle head, Betty Siy-Yap; and transaction advisory services head Mildred Ramos.

According to the grapevine, no less than ABS-CBN chairman Eugenio Lopez III had personally expressed interest in featuring the SGV turmoil in one of the ANC talk shows but that the main SGV players had to bite their tongues in declining the ABS-CBN offer, still hoping for an amicable end in the partnership standoff.

There should be some resolution soon. We understand that SGV founder Washington Sycip is returning from overseas today.

(Web site: www.cocktales.ph; e-mail: cocktales_mst@pldtdsl.net)