1. Maria Luisa Vistan (or Isa Vistan) was the Regional Sales Manager (RSM) of Central Luzon (CL) of Nestle Philippines Inc (NPI) from 2005 to 2009. The RSM is highest ranking Nestle Manager in a particular area with a rank of Vice President. Prior to that she was a sales manager in the same area under another RSM who left. She took on the responsibility in an acting capacity at first and then eventually being promoted officially to the position
2. An RSM, being in sales, is tasked to hit sales targets in his/her particular area of responsibility and as such, has the authority to execute and implement various customer related programs (including authorizing discounts) in aid of hitting this target.
3. CL, under Isa Vistan, was a consistent performer in the Nestle Philippines world, always hitting or even exceeding its target during her tenure. In fact, CL garnered the Best Area Award in 2007 and 2008. As such, Isa Vistan was a trusted and valuable employee of NPI.
4. Obviously as some part of damage control to unfavorable public opinion in April and May, NPI issued a press release in July 6 in the Philippine Star highlighting what they have done to improve the business of one of the CL distributors. The projection of NPI being a helpful and values-oriented business partner through Isa, in retrospect to the CL distributor scandal that exploded, served to highlight how evil they are when a crisis is happening.
5. A few weeks later, word from one of the CL distributors was that Isa Vistan had disappeared. As it turns out, 5 of the 6 CL distributors had in their possession recently bounced checks from a particular customer who gets goods in large quantities from all of them. They will later find out that this particular customer was operated by Isa's husband. Furthermore, the bounced checks were from Isa's account!
6. NPI subsequently sent auditors to the various distributors to do an investigation and has since kept mum about this issue.
7. Since then, through regular contact through several conduits and informants both internal and external to NPI, the real scenario of what had happened emerged.
8. Isa, in her capacity as RSM, commanded the distributors to give preferential discounts (of 10% to 12%) to the said customer. Distributor only gets 4% discount so Isa promises she will reimburse them the balance. One particular distributor has a letter in an NPI letterhead from Isa of this promise.
9. Customers who get preferential discount sells goods to Metro Manila (MM) wholesalers at 8% to 10% off. Manila distributors therefore cannot compete because of the low prices. MM NPI sales management therefore gets hit with their targets. With their mentality of "Hit target at all costs", they coerce and threaten MM distributors to compete with the prevailing pricing at the distributors cost, causing them to lose money. Nestle hits its targets while the poor distributor loses a lot.
10. When the issue exploded last July 2009, Isa's husband got cash advances from the MM wholesalers to the tune of up to 22million for at least one customer located here in MM. The wholesalers never got the goods they already paid for. The amount of money involved in the advance payments imply that these transactions have been going on for some time, perhaps way back to 2005. The MM wholesalers are experienced business people and will only trust someone if there has been a longstanding relationship. Also, rumor has it that there were letters with NPI letterheads given by Isa to the MM wholesalers.
11. Alleged total losses from both sides (CL distributors and MM wholesalers) are said to be approaching a billion pesos but this is unverified. The distributor (whom Nestle "helped") featured in their publicity campaign last july 6 in their Philippine Star article, lost allegedly 30 million.
12. Nestle's stand on this is that Isa is MERELY a rogue individual who acted on her own and therefore, implicitly is saying that they have nothing to do with it. However, they said that through the goodness of their heart, they will extend and pay for the legal fees for the CL distributors to sue Isa. They are insistent on this stand and are making it appear to the affected distributors that this is the only way for NPI to help. NPI is using a different kind of bullying through the use of charm (they assigned a "charming" RSM to CL) and an unwavering stand on the help they can extend. They are stringing the CL distributors out and hope that they get beaten down to the only way they want to "help". This is standard bully tactic again! The distributors think that they can't fight back since Nestle is this big giant and NPI is rubbing this in to them.
13. However, independent lawyers say that Isa, whether by verbal or written orders, bound NPI through the doctrine of Apparent Authority. please refer to previous article on topic.
14. What NPI is doing is clearly wrong on all levels.
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