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Confluences of events

Competition never stops in the National Basketball Association. For those locked in battle for the ultimate prize, the next challenge comes in the here and now. It’s why the Raptors managed to hog news headlines for all of one day before their status as champions became overshadowed by subsequent events. As they celebrated in Las Vegas, they found themselves alongside the supposedly woebegone Lakers, fresh off a tumultuous season and a still-hazy offseason and yet already installed as favorites for the 2020 title following a triumphant bid for all-world Anthony Davis.

Not that the Raptors’ ascent to the top was unmerited. On the contrary, it was borne of a solid strategy that underscored the benefits of prescient management, confident personnel, and no small measure of good fortune. Yet, it’s telling that the fates of Masai Ujiri, the architect behind the ambitious roster — and culture — dismantling, and Kawhi Leonard, the superstar that carved their status as the best of the best, remain huge question marks. Their achievements have made them understandable targets for poaching, and their pursuit of the next mountain to climb has them open to the possibility of bolting.

Certainly, confluences of events have helped shape fans’ never-ending clamor for adrenaline rushes. Who would have thought the Raptors’ speculative “load management” program would net an ultra-sharp playoff-version Leonard? Who would have figured the law of averages finally catching up with the Warriors? Who would have predicted the Lakers, victimized by otherwise-debilitating dysfunction, to be winners of the Davis sweepstakes? These and more have avid followers of the pro hoops scene awaiting developments — and, meanwhile, contributing to the chatter — with edge-of-seat interest.

Considering the heightened expectations, disappointment seems the most likely outcome. If nothing else, however, the NBA has shown an uncanny capacity to deliver the goods, and how. The increased mobility of marquee names has promoted unpredictability — which, from commissioner Adam Silver’s vantage point, means success. No wonder all and sundry have no choice but to tune in. With so much happening, there is need to keep up.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operation and Human Resources management, corporate communications and business development.

BoP turnaround continues with May surplus

THE Bangko Sentral ng Pilipinas (BSP) said it estimates that the balance of payments in May continued to reflect a surplus, of about $3.7 billion, continuing the turnaround from a deficit of $3.5 billion as recently as November.

It added that the May estimate for BoP heralds an improvement in the domestic economy in the second half of the year.

The May estimate represents a slight retreat from the nearly $3.8 billion surplus in the first quarter.

“The development in the balance of payments in the first quarter (is) to some extent… also carried over to the balance of payments projection for 2019 and 2020. (The projections) actually capture the implications of a growing economy like the Philippines. We have shown in many instances, in many cases, that the Philippine economy is one of the fastest-growing economy despite a 5.6% (GDP) performance in the first quarter,” Deputy Governor Diwa C. Guinigundo said in a briefing on Friday.

The BSP expects a current account deficit of $10.1 billion in 2019, revising its projection of $8.1 billion made in November. The new projection is equivalent to 2.8% of Gross Domestic Product (GDP).

Mr. Guiningundo said the Philippine economy is benefiting from remittances of Overseas Filipino Workers (OFWs), and receipts from business process outsourcing (BPO) companies and tourist arrivals, which are helping fund the current account deficit. The current account measures the gap between inflows and “current” outbound payments, or those which are due within a year.

“We see the financiability of the current account deficit. We will continue to grow, we will continue to incur a merchandise trade deficit, and therefore the current account will continue to be in a shortfall position. But the inflows of foreign investment, foreign direct investment and even kinds of other investments (will continue),” Mr. Guingundo said.

According to BSP data, the BoP in the first quarter was in surplus by $3.8 billion, a reversal of the $1.2 billion deficit recorded in the same quarter last year due to higher net inflows in the financial account, mainly on reversal of portfolio investments to net inflows and increased net inflows in other investments and direct investment accounts.

The country’s account recorded a deficit of $1.2 billion in the first quarter of 2019, higher by 258% from the $335 million deficit in the first quarter of 2018.

“The strong performance of the financial account during the quarter was bolstered by favorable investor sentiment attributed to the country’s solid macroeconomic fundamentals and firm economic growth prospects,” BSP Department of Economic Statistics Director Redentor Paolo M. Alegre, Jr. said.

The deficit in the trade-in-goods account widened to $12.4 billion in the first quarter from $10.6 billion a year earlier as imports grew 7.6% while exports fell 0.8%.

“The continued growth in imports of goods was boosted by increased purchases of capital goods, consumer goods and raw materials and intermediate goods,” Mr. Alegre said.

Dennis D. Lapid, the central bank’s Director for the Department of Economic Research, said the outlook for the overall global economy declined this year due to external uncertainties such as the trade disputes between the United States and China, and the disruption caused by the United Kingdom’s pending exit from the European Union.

“There’s been a reduction in the overall growth outlook for the global economy… As of April 2019, the global GDP (gross domestic product) is now expected to grow at 3.3% compared with 2.7% in November,” Mr. Lapid said.

“[In] global oil markets and other non-oil commodity markets, there’s the expectation of weaker demand in going forward and that’s going to push down commodity prices,” Mr. Lapid said.

“We’re seeing weaker global economic activity and that’s pushing down demand for exports,” he added. — Reicelene Joy N. Ignacio

Regional inequality narrows in 2018 as poorer areas grow faster

REGIONAL inequality in the Philippines eased in 2018 compared to 2016 and 2017, the Department of Finance (DoF) said in an economic bulletin on Friday, citing lower measures of variability in regional domestic product.

It said the coefficient of variation of gross regional domestic product (GRDP) per capita fell to 0.788 in 2018 from 0.791 in 2016 and 0.795 in 2017, suggesting that laggard regions closed the gap with richer regions.

The DoF said the overall narrowing of the gap was due to a decline in growth rates of the richer regions coupled with the acceleration of growth in lower-income areas like Bicol, MIMAROPA (Mindoro, Marinduque, Romblon and Palawan) and the Autonomous Region in Muslim Mindanao (ARMM), now part of the Bangsamoro Autonomous Region.

The three regions mentioned grew faster than the national average at 8.9%, 8.6% and 7.2%, respectively in 2018.

The National Capital Region (NCR) continues to lead the country in terms of GRDP per capita in 2018 with P253,893, up from P244,589 a year earlier. Region IV-A or Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) was second at P104,708.

The regions that tallied slower growth in 2018 are Cagayan Valley, Cordillera Administrative Region (CAR) and the Davao Region at 7.3%, 3.3%, and 8.6%, respectively, slowing considerably from their 2017 rates of 12.2%, 7.1%, and 8.6%, respectively.

Poorer regions need to be supported through increasing infrastructure expenditure to improve those regions’ resource endowments, the DoF said.

The Finance Department said the national government needs to do more to reverse regional inequality by building irrigation facilities that allow multiple rice crops and more farm-to-market roads.

It also cited the need to link up the Technical Education and Skills Development Authority (TESDA) livelihood development centers with conditional cash transfer (CCT) beneficiaries.

The DoF said the Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), Cooperative Development Authority (CDA), and government financial institutions need to conduct financial literacy campaigns in poor regions to channel savings to productive activities. — Kimani Eros S. Franco

DTI says corruption in gov’t now more reportable under new law

THE Department of Trade and Industry (DTI) encouraged Cebu-based businesses to file complaints and report on corrupt practices they encounter in government transactions.

“The (ease of doing business) law is in effect already, which entitles everyone to file a complaint. Your support, through filing proper complaints, is very important in enforcing the law and to hold those government employees and officials accountable and liable for wrong practices and making doing business in the country difficult,” Trade Secretary Ramon M. Lopez was quoted in a statement as saying.

Mr. Lopez was addressing Cebu’s business community at the Entrepreneurs’ Summit on June 13.

Mr. Lopez noted the two-strike policy for violations, as well as the administrative and criminal liabilities for government employees and officials under Republic Act 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

The EoDB requires all government agencies to follow a standardized timeline for simple, complex, and highly-technical transactions of three, seven and 20 days, with the classification of the processes to be decided on by each agency.

Officials who violate the law the first time will be suspended for six months while second-time offenders are liable for imprisonment of between one and six years, a fine of at least P500,000, and dismissal from the service, perpetual disqualification from public office and forfeiture of retirement benefits.

Agencies with qausi-judicial functions, however, have raised concerns on implementing the law which was initially meant to address the release ofbusiness permits or certificates.

The implementing rules and regulations of the law, however, have yet to be formally issued pending President Rodrigo R. Duterte’s selection of a Director-General for the Anti-Red Tape Authority which the EoDB law created.

In addition, Mr. Lopez noted that the business process and licensing office of the city or municipality will not require the same documents already provided by an applicant or requesting party to local government departments.

Mr. Lopez also noted that government agencies and personnel cannot sell, offer, or recommend specific brands of fire extinguishers and other fire safety equipment to applicants, requesting parties, or business entities.

He said said he hopes business registrations can be performed via smartphone under a program called Doing Business Design Sprint. The pocess will require only one form for all transactions. The program started trials in 2018.

“There are a number of government initiatives we’re currently implementing. If properly executed, with your support, the whole business process — from starting your business to trading across borders — should become faster, easier, and less costly,” he added. — Janina C. Lim

Globe makes case for energy-saving benefits of more cell towers

GLOBE TELECOM, Inc. is calling for the easing of restrictions on building passive telecommunications infrastructure such as cell sites, claiming that easier rules would aid network operators in operating more efficiently by reducing power consumption.

At a Power Summit event held in Globe’s Bonifacio Global City offices Friday, Globe Chief Technology and Information Officer Gil B. Genio said adding more cell sites across the country will help telecommunications firms minimize their use of energy.

“The more dense cell sites we have, the less power these cell sites consume. This is a message we want to convey to our public sector. Allow us to build more cell sites so we can effectively manage our energy consumption,” he said.

He said the Ayala-controlled telco is currently using 360 Megawatt-hours (MWh) of electricity ever year, and estimates the company’s power bill at P3.5 billion.

Mr. Genio added that for the past thee years, Globe’s power requirement also included 9 million liters of diesel fuel to power generators each year, at a cost of about P348 million.

“The positive economic impact of us in telecom is undeniable — from connectivity to contribution to GDP (gross domestic project) and employment. But the downside is the energy consumption that powers our developments,” Mr. Genio said.

“A more dense cell site network allows both telecom operator as well as individual consumers lower overall power consumption,” he added.

Globe has said that the government’s stringent requirements to build out telecommunications infrastructure is a big challenge that is keeping the industry from thriving.

It said around 25 permits are needed before Globe is allowed to put up a cell site, and the Department of Information and Communications Technology (DICT) confirms this claim.

“I know site density is a hard problem to solve, it is not entirely within our control. But this is a message from a public policy perspective that we are consistently giving our government… Allow us to build more sites faster… and overall power consumption of both operators and consumers will actually come down,” Mr. Genio said.

The DICT said it is currently studying rules on infrastructure sharing, which it plans to finalize within the year. It is also offering help to common tower providers in securing permits needed to roll out infrastructure across the country. — Denise A. Valdez

DA request for emergency procurement of X-Ray machines approved

THE Department of Agriculture (DA) said it will tap a Quick Reaction Fund (QRF) to buy 20 X-ray machines to be deployed in various ports to guard against the entry of pork from African Swine Fever (ASF)-affected countries.

President Rodrigo R. Duterte “has approved the utilization of the Quick Reaction Fund (QRF) of the Department of Agriculture for the emergency procurement of 20 units of X-Ray machines which will be established in all international airports of the country to check agricultural products, especially meat, brought in by passengers,” Agriculture Secretary Emmanuel F. Piñol said in a social media post on Friday.

DA proposes to spend P130 million from the QRF for the immediate procurement of the machinery, as well as other items to prevent the entry of tainted pork, which could decimate the domestic hog industry.

He also noted that Finance Secretary Carlos G. Dominguez III, who also heads the Economic Development Cluster, also supported the procurement proposal.

The x-ray machines are intended to examine passenger baggage for por products from ASF-affected territories like Belgium, Bulgaria, China, the Czech Republic, Hungary, Latvia, Moldova, Poland, Romania, Russia, South Africa, Ukraine, Zambia, Mongolia, Vietnam, Cambodia, Hong Kong, and North Korea.

The DA has requested all delivery companies not accept any meat products sent from those countries, while the Food and Drug Administration (FDA) has also order the recall and seizure of imported pork meat products from those countries.

The DA has also deployed sniffer dogs at airports. Passengers found to be carrying such pork products are subject to a fine of P200,000.

Canned goods confiscated from an Overseas Filipino Worker (OFW) from Hong Kong has tested positive for ASF.

According to the Philippine Statistics Authority (PSA), total hog production in the first quarter of 2019 grew 1.6% to 567,420 metric tons (MT). The average farmgate price of hogs raised for slaughter fell 2.7% to P110.52 per kilogram (kg).

ASF is non-treatable and contagious, and can kill swine in as little as two days. The virus still has no vaccine, and raises the prospect of mass culls if the P200-billion hog industry is affected. — Vincent Mariel P. Galang

Customs seeking to simplify broker accreditation process

THE Bureau of Customs (BoC) said its Account Management Office (AMO) is hoping to simplify the accreditation process for brokers and other entites that routinely deal with the bureau by decentralizing approvals.

Customs Memorandum Order (CMO) No. 19-2019 allows the renewal of brokers’ accreditation and the activation of the Client Profile Registration System (CPRS) at the collection district nearest the brokers’ place of business.

The CMO was issued by Customs Commissioner Rey Leonardo B. Guerrero on April 16.

The new process will involve activation by the AMO Head Office will now handle the CPRS accounts and the preparation of the Certificate of Accreditation (CoA). Signed CoAs will then be transferred to the District Collectors for release to the custom brokers.

Instead of having the brokers’ accreditation go through signatories such as the Office of the Deputy Commissioner for Intelligence and the Office of the Commissioner, it will now be processed by the local Intelligence and Investigation Service (CIIS) and at the office of the District Collectors to be released to the customs brokers.

In a memo earlier this year, Commissioner Mr. Guerrero said the decentralization exercise is in compliance with Republic Act No. 11032, or the East of Doing Business and Efficient Government Service Act of 2018.

The Office of the District Collector will processed CPRS activation of entities accredited by other government agencies upon the endorsement receipt from concerned government agencies along with the other documents.

Mr. Guerrero has listed among his top priorities the enhancement of the BoC’s information and technology system, alongside filling up the buearu’s many job vacancies. — Kimani Eros S.Franco

China ‘thoroughly, seriously’ investigating boat collision — ambassador

CHINESE Ambassador Zhao Jianhua said China is “thoroughly and seriously” investigating the collision between a Chinese vessel and a Filipino boat on June 9.

Presidential spokesman Salvador S. Panelo shared a text message with reporters from Mr. Zhao following his statement on the collision “condemning the Chinese ship for abandoning the Filipino vessel crew after it hit and sunk.”

“This fishing boat issue is being thoroughly and seriously investigated. We share your concerns about fishermen. If it were true that it was Chinese fishing boat which did it, they would be duly educated and punished for their irresponsible behavior,” read the text message from the Chinese ambassador.

Mr. Panelo on Thursday said the Philippines “will cut of diplomatic relations with China if the investigation proves the collision is not accidental.” He also said that a diplomatic protest will be filed first.

Defense Secretary Delfin N. Lorenzana on Wednesday condemned the Chinese vessel which abandoned the 22 crew members of the sinking Filipino boat it collided with. The Filipino boat was anchored at the Recto Bank which is within the country’s Exclusive Economic Zone.

The Armed Forces of the Philippines Western Command said the collision on June 9 was “accidental” based on the information it received, but confirmed that the Chinese vessel left after the incident.

The Commission on Human Rights (CHR) also condemned the collision and the abandonment of the Filipino fishermen in open water by the Chinese vessel.

“We believe that asserting our sovereignty and the right of our fishers to rightfully gain economically from the resources found off the coast of Recto Bank in the West Philippine Sea, a country’s exclusive economic zone, protects our people’s right to self-determination,” CHR spokesperson Jacqueline Ann de Guia said in a statement.

“To this end, we affirm the need to protest the said incident before the Chinese government, and for our own government to appropriate robust measures that will protect the rights of all Filipinos — be it on land or at sea,” she added. — Vann Marlo M. Villegas

Bong Go biggest spender in senatorial race

PRESIDENTIAL PHOTO

WITH 11 of the 12 senators who won in the 2019 midterm elections having submitted their reports on campaign expenses and contributions before the June 13 deadline, the top spender turned out to be former presidential special assistant Christopher Lawrence “Bong” T. Go who spent over P161 million on his campaign.

The 11 recently proclaimed senators who submitted their Statements of Contributions and Expenditures (SOCE) to the Commission on Elections (Comelec) Campaign Finance Office are: Cynthia A. Villar, Grace Poe-Llamanzares, Christopher Lawrence “Bong” T. Go, Pilar Juliana “Pia” S. Cayetano, Ronald “Bato” M. Dela Rosa, Juan Edgardo “Sonny” M. Angara, Maria Imelda Josefa “Imee” R. Marcos, Francis N. Tolentino, Aquilino Martin “Koko” D. Pimentel III, Ramon “Bong” Revilla, Jr., and Maria Lourdes “Nancy” S. Binay

Only actor and re-electionist Manuel “Lito” M. Lapid has not submitted his SOCE.

The Comelec said winning candidates do not have to submit their SOCEs before the June 13 deadline (both winning and losing candidates have to submit the report) as they can submit their SOCEs within six months after the elections. However, winning candidates are not permitted to sit in office until they have submitted their reports.

Out of all the elected senators, Mr. Go’s SOCE showed he had the most campaign expenditures, spending P161,418,299.31. Total campaign contributions were P162,035,537.34. He spent only P415,500 of his own money for his campaign.

Mr. Tolentino was the second biggest spender with P159,169,836.54. He received P112,900,000 in contributions.

According to the SOCEs seen by BusinessWorld, senators Villar and Marcos spent only their own money in their campaigns, not having received any contributions and donations. Ms. Villar spent P135,529,061.09 while Ms. Marcos spent P132,146,754.55.

Unlike Ms. Marcos and Ms. Villar, Ms. Llamanzares-Poe used only contributions from other sources for her election campaign, expenses of which totaled P156,433,463.80. She spent no personal funds and resources according to her SOCE. Ms. Binay also used contributions to fuel her senatorial bid, spending only P59,470,000.

Ms. Revilla’s election expenditures came to P121,952,358.93. He received contributions from his political party, Lakas CMD, and other sources, which amounted to P115,575,235.21. Only Mr. Revilla received contributions from his political party unlike the other senators who did not report receiving anything from their own parties.

Meanwhile, Mr. Angara spent P153,341,072.84; Mr. De la Rosa spent P92,701,416.79; Mr. Pimentel spent P79,525,818.90; and Ms. Cayetano spent P73,714,198.55. — Gillian M. Cortez

DoJ indicts WellMed officer, whistleblowers for estafa

THE Department of Justice (DoJ) indicted an officer of WellMed Dialysis and Laboratory Center Corp. and the two whistleblowers for several counts of estafa through falsification of data in connection with the “ghost” dialysis claims which were paid by the Philippine Health Insurance Corp. (PhilHealth).

In a statement released Friday, Undersecretary and spokesperson Markk L. Perete said the investigating prosecutor found that WellMed owner and Vice-President Bryan Christopher W. Sy and whistleblowers Edwin C. Roberto and Liezel Aileen Santos-De Leon “conspired in using falsified documents to collect payments from PhilHealth for alleged medical services to patients who were already dead.”

“The inquest prosecutor meanwhile referred the case against seven other WellMed officers/employees for preliminary investigation. Said employees were not brought to the prosecutor for inquest,” Mr. Perete said.

Justice Secretary Menardo I. Guevarra said the charges are bailable.

The National Bureau of Investigation (NBI) filed the complaint with the DoJ on June 11, following a complaint filed by PhilHealth.

Mr. Sy and the two whistleblowers, who were former employees of WellMed, were presented for inquest proceedings on the day after they were arrested by the NBI on June 10.

The other WellMed officers included in the complaints are Medical Director John Ray M. Gonzales, Chairman Claro N. Sy, Purchasing Officer Therese Francesca R. Tan, Administration Officer Dick S. Ong, and physicians Porshia C. Natividad and Joemie D. Soriano.

In Mr. Roberto’s sworn statement, which was attached in the complaint, he said that it was Mr. Sy who first instructed him to file the dialysis billing of PhilHealth claims of two deceased patients. Before he resigned in 2018, a total of 27 claims for 280 session worth P808,600 were charged.

Lawyer Harry L Roque, Jr., the legal counsel of the two whistleblowers, previously said that they are applying for the witness protection program so they have to be charged first and have to be discharged in court as a requisite to be under the program. — Vann Marlo M. Villegas

Immigration told to keep a lookout for KAPA officers

THE Department of Justice has issued an Immigration Lookout Bulletin Order (ILBO) against 16 officers and incorporators of KAPA-Community Ministry International Inc., and three officers of Alabel-Maasim Credit Cooperative (ALAMCCo).

“Immigration officers are directed to monitor within all ports of exit and entry the movement of those covered and verify if legal basis exists to prevent them from leaving Philippine jurisdiction,” Undersecretary and spokesperson Markk L. Perete said in a statement.

The eight incorporators of KAPA are Joel A. Apolinario, Nonita S. Urbano, Junnie G. Apolinario, Nelia V. Nino, Maria Pellea B. Sevilla, Jouelyn A. Del Castillo, Cristobal R. Barabad, and Joji A. Jusay.

The eight KAPA officers included in the ILBO, meanwhile, are Mr. Apolinario, Reyna L. Apolinario, Modie S. Dagala, Benigno D. Tipan, Jr., Marnilyn M. Maturan, Ricky A. Taer, Joji A. Tusay, and Margie A. Danao.

The three officers of ALAMCCo under the Lookout order are Chairman Jerson A. Cagang, Corporate Secretary Cynthia A. Gomeri, and Chief Finance Officer, Ailene D. Mancao.

The National Bureau of Investigation (NBI) said they are going to file appropriate complaints against officers of KAPA for violation of Sections 8 (Requirement of Registration of Securities) and 26 (Fraudulent Transactions) of the Securities Regulation Code.

The Securities and Exchange Commission (SEC) found KAPA, an independent religious corporation, to be soliciting investments despite the lack of a secondary license to do so. The SEC issued a cease-and-desist order against the religious group last February but it still continued it operations and revoked its certification of registration last April.

SEC also secured a freeze order from the Court of Appeals against KAPA over its alleged involvement in an investment scam.

The office of ALAMCCo meanwhile was among the offices served with search warrants by the SEC and NBI on June 10 in a bid to shut down alleged fraudulent schemes. — Vann Marlo M. Villegas

FDA orders Shopee, Lazada to stop selling medicines

THE Food and Drug Administration (FDA) has ordered Shopee Philippines and Lazada Philippines to stop selling medicines online, after it had warned the public regarding the purchase of health products over the internet earlier this week.

In a statement released on Friday, the FDA said that it directed the two online shopping platforms to cease their sales of medicines in line with an advisory issued by the FDA on June 11. Shopee and Lazada will only be permitted to sell medicines when they obtain an FDA license to offer medicines online.

“The FDA, through the Regulatory Enforcement Unit, served and implemented Summons with Preventive Measure Order (SPMO) directing Shopee Philippines and Lazada Philippines under pain of direct or indirect contempt and/or other administrative sanctions, to immediately CEASE AND DESIST from further online selling and offering for sale drug products until it has secured the appropriate License to Operate (LTO) from the FDA,” the FDA said.

In FDA Advisory No. 2019-154, the FDA said that online selling of medicines is not allowed except through an FDA-approved online ordering service of an existing licensed pharmacy that has a physical establishment.

The FDA also told the public that purchasing medicines over the internet “can pose serious health risk,” adding that improper storage issues could cause serious side effects. The FDA also added that there is also no assurance of medicines being genuine since fake health products are also widespread online.

“The continuous online selling of any of these drug products will place the lives of the general public in danger and at risk. Likewise, the FDA assures the public of the continued implementation and monitoring of an effective drug regulatory system responsive to the country’s health needs and problems,” the FDA said. — Gillian M. Cortez

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