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DoJ to decide major cases at start of year

THE Justice department is expected to resolve “big cases” at the start of the year, a government prosecutor said on Friday.

“There will be quite a number of cases coming out, big cases in the early part of 2020,” Senior Deputy State Prosecutor Richard Anthony D. Fadullon said. He did not say which these cases are.

Among the cases under preliminary investigation are the sedition raps against Vice President Maria Leonor G. Robredo, drug complaints against rogue cops and the kidnapping case against former Senator Antonio F. Trillanes IV.

“As soon as January kicks in, I will start collecting and asking what is happening to all these cases,” he Mr. Fadullon said.

The deputy state prosecutor recommends the approval of his peers’ case decisions to the prosecutor general. — Vann Marlo M. Villegas

Aboitiz holding firm plans to offer dollar-denominated notes

ABOITIZ Equity Ventures, Inc. (AEV) is planning to issue dollar-denominated senior unsecured notes “subject to market conditions,” the holding said on Friday as one of its units appointed financial institutions to arrange events for investors on the proposed offering.

“The Notes, if issued, are expected to be unconditionally and irrevocably guaranteed by AEV and unrated,” it told the stock exchange.

It said the notes offering are to be classified as “Regulation S,“ referring to rules allowing safe harbor from the registration requirements for offshore offers and sales of securities. It has yet to disclose the use of the proceeds from the planned offering.

AEV said its wholly owned subsidiary AEV International Pte. Ltd. had appointed The Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank as joint global coordinators.

DBS Bank Ltd., HSBC, Mizuho Securities (Singapore) Pte. Ltd., MUFG Securities Asia (Singapore) Ltd., and Standard Chartered Bank were also appointed as joint lead managers and joint bookrunners.

They will arrange a series of fixed income investor meetings and conference calls in Hong Kong, Singapore, and London starting on Jan. 6, 2020.

On Friday, shares in AEV rose by 0.19% to P52.35 each.

Separately, AEV’s energy arm Aboitiz Power Corp. said on Friday that its Cleanergy brand now has 32 customers in Luzon and the Visayas for the supply of 203 megawatts (MW) of renewable energy.

In a statement, it said the customers include multinational companies that are choosing renewables for their energy needs as well as electric cooperatives that are shifting to a more balanced energy mix.

“It is our commitment to continue providing ample, reliable, and reasonably-produced power to our customers by maximizing renewable energy for as long as feasible, while at the same time using the reliability and cost-efficiency of fossil-fired power plants,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

Through Cleanergy, AboitizPower and its partners generate a total of 1,242 MW, which account for about 27% of the company’s net sellable capacity. Its renewable energy portfolio includes solar, geothermal, run-of-river hydro, and large hydropower facilities.

Among its customers are green office developer and operator NEO Property Management, Inc., which renewed its partnership with AboitizPower in January 2019 after first signing up in 2013.

NEO signed up for the supply of 13.5 MW to its facilities in Bonifacio Global City, Taguig. The company is a bulk electricity user or a “contestable” customer that can choose its own electricity supplier under the country’s rules on retail competition and open access (RCOA).

Similarly, food and beverage company Nestlé Philippines switched to Cleanergy in 2017 to supply its manufacturing facility in Lipa, Batangas. Other Nestlé facilities have since switched, including factories in Cabuyao, Laguna and Tanauan, Batangas, as well as its corporate administrative office in Makati City. Their total power demand has reached 17 MW.

Other Cleanergy customers include Shangri-La’s Mactan Resort & Spa in Cebu, Shangri-La at The Fort, Shangri-La’s Boracay Resort & Spa, and Hotel Jen Manila by Shangri-La, for a total power supply of 10.4 MW.

AboitizPower also supplies a total of 15.7-MW of clean and renewable energy to Asian Development Bank, Draka Philippines, Eton Properties, and Unionbank.

Electric cooperatives that signed up for Cleanergy are Siargao Electric Cooperative, Nueva Ecija II Electric Cooperative, and Batangas II Electric Cooperative. Other customers include power distribution utilities in Zamboanga del Sur, Zamboanga del Norte, Bukidnon, Misamis Occidental, and Iloilo City. — Victor V. Saulon

Lopez firm appeals order to pay P1.2 billion in tax case

FIRST Philippine Holdings Corp. (FPH) said on Friday that it intends to ask within the day the Court of Tax Appeals (CTA) to reconsider its decision that granted in part the Lopez-led firm’s petition for review to protest a tax assessment of around P1.5 billion.

“FPH maintains that the assessments are without valid basis. It will be contesting the foregoing on factual, due process and legal grounds with respect to the assessments sustained by the CTA,” it told the stock exchange.

The firm said it had received on Dec. 20, 2019 the CTA decision ordering it to pay P1.21 billion composed of deficiency taxes, 25% surcharge plus 20% deficiency and delinquency interest.

FPH said it was also being ordered to pay delinquency interest of 12% on the total unpaid deficiency taxes as of July 15, 2014, computed from Jan. 1, 2018 until fully paid.

The decision came after the firm disclosed on Feb. 20, 2015 that it had filed a petition for review with the CTA to protest a tax assessment of the Bureau of Internal Revenue for different taxes, including interest and penalties, of around P1.5 billion.

The company’s major business segments are in power generation, real estate development, manufacturing, and construction and other services.

As of the third quarter, it reported a 35% increase in net income attributable to equity holders of the parent firm to P9.6 billion, which reflected the increase in operating income.

Its financial performance was also due to favorable foreign exchange rates and deferred income tax movements, as well as the decline in non-recurring expenses incurred by a subsidiary.

On Friday, shares in FPH rose by 0.59% to close at P68.40 each. — Victor V. Saulon

Petron starts fuel marking in refinery, import facility

PETRON CORP., the country’s largest oil refiner, said on Friday that it had rolled out fuel marking at its refinery in Bataan and its import facility in Misamis Oriental to support the government’s efforts to curb smuggling.

“We are optimistic that the fuel marking program will significantly address fuel smuggling, which has been a constant deterrent to the continued growth of our economy. Consumers also stand to gain once everyone gets on board as it will ensure that all fuel products in the market will be legitimately sourced,” said Ramon S. Ang, Petron president and chief executive officer, in a statement.

Fuel marking involves the use of low concentrations of markers or dyes to be blended with the fuel, to mark the stages undergone by a particular batch of product, determining whether shipments have gone through legal import channels.

“These developments in our facilities testify to our firm commitment to support the government in their fight against smuggling. We also continue to work with their fuel marking team for the installation of the Automatic Injection System (AIS) in our refinery,” Mr. Ang said.

Petron’s refinery in Bataan has a maximum capacity of 180,000 barrel-per-day, making it the country’s largest supplying nearly a third of total fuel demand. It started fuel marking on Dec. 23, 2019.

The company said it had in “close coordination” with the Department of Finance, Bureau of Internal Revenue, and Bureau of Customs on the initiative since 2018. It said it had consistently expressed its support for the fuel marking program provided that it is enforced on a level playing field.

Petron’s move came after the Philippine Institute of Petroleum (PIP) said in July last year that its members, which includes the country’s biggest oil companies, were backing the fuel marking program of the government as a mechanism against smuggling and revenue leakages.

PIP, a business group operating in the country’s downstream oil industry, said its members include Petron, Chevron Philippines Inc., Isla LPG Corp., Pilipinas Shell Petroleum Corp., PTT Philippines Corp., and Total Philippines Corp. — Victor V. Saulon

AirAsia adds more local and international flights

PHILIPPINES AirAsia, Inc. said on Friday that it was increasing the frequency of flights in high demand domestic and international destinations.

“We are pleased to welcome the new year with additional flights, offering guests more options when flying with us as they accomplish their travel goals this 2020,” Ricardo “Ricky” P. Isla, AirAsia Philippines chief executive officer, said in a statement.

He said the move is in line with the low-cost carrier’s vision of allowing its guests to tick-off more destinations from their travel bucket list.

“Our adjustments are well guided by data, and I am very optimistic about the tourism boost this will bring to our country in the summer months,” he added.

AirAsia Philippines operates more than 500 weekly domestic and international flights from its hubs in Manila, Clark, Cebu and Kalibo.

It said guests can book now for routes, some of which will have more frequencies starting on March 29, 2020.

Among the flights that will have increased frequencies are those from Clark to Iloilo and vice-versa, which will have daily flights. Flights from Cebu to Kuala Lumpur, Malaysia and vice-versa will increase to four times a week.

Starting on March 29, the airline will have daily flights between Cebu and Puerto Princesa. Flights from Clark to Tacloban and vice-versa, which will be four times a week.

AirAsia operates in Malaysia, Indonesia, Thailand, the Philippines, India and Japan. Its services include hotels, holidays, activities and online shopping, as well as integrated logistics and digital financial services. — Jenina P. Ibañez

DA confirms ASF in QC supermarket meat display

THE Department of Agriculture (DA) said Friday it has confirmed a case of African Swine Fever (ASF) in a Quezon City meat dealer’s produce chiller.

It identified the dealer as North Star Meat Merchants, Inc., which has operations at the Cherry Congressional grocery in Quezon City.

Mr. Dar said the Bulacan-based meat company has since been sanctioned and the Quezon City government has seized all the pork displayed in the chiller.

“The meat found in the supermarket was found positive (for ASF), so with that we sent a notice of closure earlier to North Star, then the NMIS (National Meat Inspection Service) continued its evaluation in the company…,” he said.

Asked to comment, the operator of the grocery said it is now doing a “thorough inventory check and (is) asking our supplier to explain to us and the authorities concerned” how the chiller came to contain contaminated meat. — Vincent Mariel P. Galang

Kaliwa Dam waiver, arbitration terms onerous, legislator says

A HOUSE official spelled out what he described as onerous provisions in the China-funded Kaliwa Dam project agreement, including the waiver of sovereign immunity and the conditions set for any arbitration proceeding.

Represenative Carlos Isagani T. Zarate, the Deputy Minority Leader from the Bayan Muna party list, said onerous nature of the provisions are “very apparent” and “cannot simply be ignored by Malacañang.”

The Palace had dismissed earlier claims of disadvantageous contract terms by saying that the deal could be subject to review if onerous provisions are found.

Mr. Zarate said the President’s Spokesman, Salvador S. Panelo, “should have done some research on these onerous provisions… especially after we exposed them early last year which also then prompted the Department of Finance (DoF) to make public the terms of the deal” Mr. Zarate said.

Mr. Zarate noted that under the terms of the Kaliwa Dam project agreement, the Philippines is not entitled to “any right of immunity on the grounds of sovereign or any legal process” and that the agreement “shall be governed by and construed in accordance with the laws of China”; and that the Hong Kong International Arbitration Centre will adjudicate on any disputes disputes. He also cited the confidentiality of the terms, conditions and the standard of fees of the loan agreement.

On Thursday, Mr. Panelo said in a briefing that Mr. Zarate had failed to identify any specific onerous provisions.

Mr. Zarate added that “solving the water crisis in Metro Manila can be done without building a large dam.”

“For starters, Manila Water and Maynilad should drastically reduce their system losses because billions of gallons of water are wasted daily from leakages in the existing distribution infrastructure,” Mr. Zarate said, referring to the two concession holders supplying water to Metro Manila, Manila Water, Co. Inc. and Maynilad Water Services Inc.

He said Maynilad wastes “more than a billion liters of water per day, while Manila Water, which has a much lower reported NRW (non-revenue water) than its west zone counterpart, suffers a deficit. This further underscores the inefficiency and wastefulness of water resource management and the artificiality of water shortage under MWSS privatization.”

He was referring to the Metropolitan Waterworks and Sewerage System (MWSS), the water industry’s regulator.

Mr. Zarate added that the combined water losses of both Manila Water and Maynilad are “too high at more than 28% of the estimated current water supply of 4,167 MLD (millions of liters per day)”.

“At any rate, just reducing the current total NRW (as estimated by MWSS) by half could produce an additional 588 MLD in water supply. This is almost the same yield as the P12.2 billion Chinese-funded Kaliwa dam that has a projected capacity of 600 MLD” Mr. Zarate noted.

“Malinaw na mukhang ginagamit lang ang sinasabing kakulangan sa tubig para ipilit ang Kaliwa dam at iba pang mga dam na gusto nilang mapondohan. Hindi nila sinasabi na ayusin lang nila ang mga sirang tubo ay mapipigilan ang sinasabi nilang krisis na hindi sisira ng kalikasan at magpapalayas ng mga katutubo (It is clear that the shortages are being used to force through the Kaliwa Dam and other projects that they want to fund. They are not looking into whether fixing the distribution system could avert a crisis without destroying the environment or expelling indigenous peoples),“ Mr. Zarate said. — Genshen L. Espedido

Tarlac provincial gov’t to take up 52 hectares of New Clark City

THE Tarlac provincial government will establish offices and other facilities in New Clark City, Capas, Tarlac.

The provincial government will occupy 52 hectares, including five hectares for its offices and the remainder for other institutional facilities, according to its memorandum of agreement with the Bases Conversion and Development Authority (BCDA).

“It is important for us to have a partnership with the provincial government and the local government units because we want New Clark City to be the most inclusive development in the country,” BCDA President and CEO Vivencio B. Dizon was quoted as saying in the statement Friday.

The complex, which houses the New Clark City Sports Hub, served as one of the venues for the 30th Southeast Asian Games in December.

“Finally we have a place in the center (of the) biggest hub, the most vibrant place in Central Luzon. To be part of it and to be in it is such an honor and a privilege for the people of Tarlac,” Governor Susan A. Yap said. — Beatrice M. Laforga

DA authorizes red onion imports until Feb.

THE Department of Agriculture (DA) said it issued import clearances for red onions to address the inadequate domestic supply.

Agriculture Secretary William D. Dar said in a briefing Friday the department has issued an import clearance for 35,000 metric tons of red onions, sourced from various countries, including China.

He said the clearance for the red onion imports will run for two months, as the department wants to avoid imports to coincide with the harvest.

“We will have to consider the caveats there. These red onions can only be brought in up until February so that it will not be in competition with the main harvest time starting March,” Mr. Dar said.

Citing the Bureau of Plant Industry, Mr. Dar said the DA estimated a two-month period when demand for red onions will be greater than supply.

Undersecretary for Operations Ariel T. Cayanan also said the department is looking at methods to increase the shelf life of onions, such as cold storage and processing onions into powder.

Mr. Dar added that agricultural damage due to calamities in 2019 declined to P16 billion from P34.45 billion a year earlier, adding to the DA’s optimism of achieving 2019 agriculture output growth of 2-2.5%.

“2018 has been badly affected not only because of floods but also drought… So nahati yung damage (in 2019) and hopefully overtime pababa (So the cost of damage in 2019 was reduced by half and I hope over time it will keep shrinking,” Mr. Dar said. — Denise A. Valdez and Vincent Mariel P. Galang

Qatar Fund hopes to back BARMM development projects

THE Qatar government hopes to fund development projects in the Philippines focused on infrastructure, human capital development and assistance to the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

In a statement Friday, Finance Secretary Carlos G. Dominguez III said the Qatar Fund for Development (QFFD) has committed to provide assistance in these areas.

Mr. Dominguez said QFFD will likely help fund the government’s efforts to support BARMM, peace-building programs in the south, and strengthen Islamic banking. It will also support targeted sectors such as education, fisheries development, rural infrastructure development, health care, disaster risk reduction and management and the energy sector.

“We are encouraging more investments in this region to improve the lives of its people in underserved island communities… I look forward to further working with you in achieving our shared goal of inclusive growth and the development of areas under the BARMM,” he told the QFFD delegation during a meeting in Manila last year.

QFFD is the Qatar government’s external development assistance organization for developing countries, backing economic and social development programs through loans, grants and technical assistance.

Mr. Dominguez added that the Philippines will consider further cooperation with Qatar on other possible investments and on sustainable development.

Samer Frangieh, a QFFD senior advisor, expressed interest in providing assistance to development projects in education and health care, expanding livelihood opportunities in fisheries and initiatives to bring former rebels back to the economic mainstream.

Mr. Frangieh said he will seek out other agencies in Qatar that could fund other BARMM projects not covered by QFFD’s mandate.

He added that Qatar could lend its expertise to the BARMM on disaster and risk managament and response to help the earthquake victims in North Cotabato’s 63 affected barangays.

“We will be coming back with our work hat, not the thinking hat. We will put our words to action and hopefully we will be reaching out to the various departments we have networked to kind of indicate and insure that the priorities are properly set,” Mr. Frangieh was quoted as saying.

BARMM Interior Minister Naguib Sinarimbo said the regional government hopes to convert former rebel camps to “economic-producing areas.”

Finance Undersecretary Mark Dennis Y. C. Joven has been assigned to work on the framework agreement with the Qatar government “to ensure their seamless bilateral cooperation.”

Union Bank wins approval for tier-2 note issue of up to P20-B

UNION BANK of the Philippines, Inc. said it received approval from the Bangko Sentral ng Pilipinas (BSP) to issue up to P20 billion worth of notes.

The issue is intended to replace P7.2 billion worth of notes due 2025, which it plans to pre-terminate.

UnionBank Assistant Corporate Secretary Maria Eliza Camille B. Yamamoto-Santos said in filings with the Securities and Exchange Commission, The Philippine Stock Exchange, Inc. and the Philippine Dealing and Exchange Corp. that the P20 billion worth of unsecured subordinated debt is considered as Tier 2 Capital under the Basel 3 framework.

In August, the bank said in a filing that it was planning to exercise a call option to redeem the P7.2 billion in unsecured subordinated debt eligible as Tier 2 capital.

The P7.2 billion worth of debt was issued in November 2014 at a coupon of 5.375%, callable starting Feb. 20, 2020.

The bank’s net profit hit P8.5 billion in the first nine months of 2019, up 40% year-on-year.

UnionBank ended trading Friday at P57.80, down 0.34%. — Luz Wendy T. Noble

Closed rural bank’s creditors urged to file claims

CREDITORS of the defunct Maximum Savings Bank have been invited to submit their claims against the bank’s assets, the Philippine Deposit Insurance Corp. (PDIC) said.

According to the (PDIC), the creditors have until Jan. 21 to file their claims.

“Creditors refer to any individual or entity with a valid claim against the assets of a closed bank and include depositors with uninsured deposits that exceed the maximum deposit insurance coverage (MDIC) of P500,000,” PDIC said in a statement Friday.

Creditors whose claims are denied will will be notified officially by email, after which the claims can be further pursued in liquidation court within 60 days.

Depositors with account balances beyond the MDIC of P500,000 that have already submitted their claims for the insured portion of their deposits as of Jan. 21 “are deemed to have filed their claims for the uninsured portion or the amount in excess of the MDIC.”

The Monetary Board of the Bangko Sentral ng Pilipinas ordered the closure of the rural bank on Nov. 7 and authorized PDIC to take over the assets.

The bank’s main branch is at Batangas City while the others are in Sabang and Calapan City, Oriental Mindoro. — Luz Wendy T. Noble

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