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Fitch cuts Philippine growth forecast

By Melissa Luz T. Lopez, Senior Reporter
FITCH Solutions has downgraded its growth forecast for the Philippines anew, noting that the economy is unlikely to bounce back to a faster pace due to tighter credit conditions and waning investor appetite.
In a report, the global research firm said the Philippine economy will likely grow by just 6.2% this year, down from 6.3% previously following a slower expansion logged during the third quarter.
Philippine gross domestic product (GDP) expanded by 6.1% in July-September, easing from the 6.2% climb during the second quarter to mark the slowest pace in three years.
This brought the nine-month tally to a 6.3% expansion, well below the government’s downward-revised 6.5-6.9% target.
“We believe that the Philippine economy will struggle to reverse its waning growth momentum over the coming quarters owing to tighter monetary conditions, deepening trade tensions, as well as a declining business environment,” Fitch Solutions said in a report on Friday.
The research unit said household spending will likely remain “weak” as rising interest rates, sustained elevated inflation and declining consumer confidence.
Yields have been on an uptrend following a series of tightening moves from the Bangko Sentral ng Pilipinas (BSP), which has raised benchmark rates by a total of 150 basis points (bp) since May. This comes as the central bank sought to rein in inflation expectations, just as consumer prices have been trending beyond the 2-4% target band.
Inflation has averaged 5.1% during the first 10 months, marked by a nine-year peak at 6.7% tallied in September and October. In turn, Fitch Solutions expects another 25bp rate hike from the central bank before the year ends.
Authorities said private consumption growth cooled to 5.2% year-on-year in the third quarter from 5.9% during the April-June period. The Philippines has long been a consumption-driven economy.
“The rising interest rate environment is likely to dampen consumer spending,” the report read, noting that Fitch Solutions also sees another 75bp worth of rate increases next year.
“The slowdown in private consumption and investment growth was in line with our view, and we continue to expect both GDP components to perform poorly over the coming quarters.”
Growth is seen to ease further in 2019 at 6.1%, well below the state’s 7-8% goal.
Prospects may also be dimming for investments due to dampened business confidence in light of an uncertain tax environment. The research firm cited the Philippines’ slip in ranking under the World Bank’s latest Ease of Doing Business index to the 124th rank from 113th previously.
Contents of the second tax reform package, dubbed the Tax Reform for Attracting Better and High-Quality Opportunities bill, is also creating uncertainty for investors pending its passage in Congress.
“Risks to our growth forecasts are weighted to the downside,” the analysts said. “Deepening trade tensions between China and the US are weighing on global risk sentiment, and a faster-than-expected rate hiking cycle in the US could exacerbate a possible capital flight to safety, weighing on foreign investment further.”
Investment-led growth boosted the economy last quarter, the Department of Finance said, with its share rising to 26% of GDP from 23.6% a year ago. The agency said the passage of remaining tax reforms will maintain investment growth, together with reforms to improve the local business climate and by easing limits on foreign participation.

2 groups submit bids for Clark airport O&M

AIRPORT operators from Singapore and Indonesia have teamed up with local companies to submit on Friday competing bids for the Clark International Airport operations and maintenance (O&M) contract.
The Bases Conversion and Development Authority (BCDA) said North Luzon Airport Consortium and X-Droid Consortium both submitted complete bids on Friday. Awarding of the contract is scheduled in December.
North Luzon Airport Consortium is composed of Gotianun-led Filinvest Development Corp., Gokongwei-led JG Summit Holdings, Inc.. Philippine Airport Ground Support Solutions, Inc., and Changi Airport Philippines. Changi Airport Philippines is the local unit of the operator Singapore’s world-class Changi international airport.
Earlier this year, the government rejected the P839-billion unsolicited proposal of Filinvest and JG Summit develop the Clark airport as the DoTr wanted to bid out the gateway’s O&M instead.
On the other hand, the X-Droid Consortium is comprised of Angkasa Pura II, Globalport 900, Inc., Mazy’s Capital, Inc. and Desco, Inc. A representative of Philippines AirAsia, Inc. separately confirmed that it is part of the X-Droid consortium.
Angkasa Pura II is a state-owned operator of several airports in Indonesia, including the biggest one — the Soekarno-Hatta International Airport in Jakarta. Mazy’s is owned by former Ambassador Alfredo M. Yao, while Globalport 900 is a listed firm led by chairman Michael L. Romero. Messrs.
The bids of the North Luzon Airport Consortium and X-Droid Consortium will now undergo a pre-qualification test by the Special Bids and Awards Committee (SBAC), targeted to be completed next week.
Upon completion of the pre-qualification test, the SBAC will then move to check the technical and financial bids.
The government originally scheduled the opening of bids in July and awarding of the contract in August, but SBAC Chairperson Joshua M. Bingcang said the timeline was changed upon the request of prospective bidders.
Mr. Bingcang also told reporters on Friday about nine to 10 companies originally bought bid documents to participate in the auction.
Among the buyers announced in May but did not participate are Metro Pacific Investments Corp. (MPIC); San Miguel Holdings Corp.; Prime Asset Ventures, Inc.; the Central Luzon Infrastructure Consultancy, Inc. consortium; GVK Airport Developers Ltd.; Groupe ADP and Megawide Construction Corp. with partner GMR Infrastructure Ltd. (Megawide-GMR).
In a disclosure to the stock exchange last week, MPIC said it decided not to pursue participation because of contentions in the terms.
“[W]hile MPIC expressed its interest to support the government’s Build Build Build initiative for Clark Airport, we find the current draft of the Concession Agreement extremely challenging, given the identified material risks that were not addressed. The schedule of the bid submission further made participation in the bid very difficult, considering that the final draft of the Concession Agreement was released only yesterday. For the foregoing reasons, MPIC is unlikely to submit a bid for the project,” the company said on Oct. 31.
Megawide-GMR, one of the prospective participants in the O&M bidding, also holds the engineering, procurement and construction (EPC) contract for the Clark airport. They are expected to finish the new terminal by 2020.
Mr. Bingcang said they want the O&M concessionaire to come in before Megawide-GMR finishes the building to avoid “interface issue” and account the insights of the would-be operator in the layout.
“We don’t want the building to be completed and then the incoming operator will say that’s not what we want. So we want them to be part of the construction stage,” he said.
The contract will allow the winner to operate and maintain both the existing passenger terminal and the new one that Megawide-GMR is currently constructing. — Denise A. Valdez

Banks required to form task force on payment systems

By Melissa Luz T. Lopez, Senior Reporter
THE Bangko Sentral ng Pilipinas (BSP) has required banks and players to set up a task force to ensure that all payment systems will be compliant to global standards on digital financial data.
Memorandum M-2018-033 signed by BSP Governor Nestor A. Espenilla, Jr. mandates all participants of the domestic payments and settlements system to set up an industry task force to organize Philippine payments.
The task force is tasked to ensure that local players are compliant with ISO 20022, which is the international standard for electronic data exchange among financial institutions. The standards are also referred to as the universal financial industry message scheme used by players worldwide.
“The TF-ISO 20022 shall be the driving force of BSP and of the Philippine financial industry in ensuring the adoption of the global ISO 20022 message standards on payments, compliant with BSP’s roadmap and timelines, and in synch with the modernization of the country’s real-time gross settlement system,” the issuance read.
Once established, the task force is expected to draft guidelines for market practice based on the ISO rulebook, including mechanisms for monitoring. The industry must also collaborate with standard-setting bodies like the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which processes payment orders from one financial firm to another.
The task force will be co-chaired by a senior BSP official and a senior representative from the Bankers Association of the Philippines (BAP).
Industry officials will also sit as members of the task force from the BAP, the Chamber of Thrift Banks, the Rural Bankers Association of the Philippines, the Investment Houses Association of the Philippines and the Philippine Finance Association.
Third-party participants of the Philippine Payments and Settlements System (PhilPaSS) are also expected to take part in the industry-led body. These are automated teller machine network BancNet, Inc.; the Bureau of the Treasury, Philippine Clearing House Corp., the Philippine Dealings System Holdings, Inc., and other future participants.
All banks and quasi-banks have been using the PhilPaSS as their clearing platform since 2002, where they transact with fellow lenders, government offices and the central bank.
Mr. Espenilla said the Nov. 7 memorandum shall take effect “immediately.”
The BSP serves as regulator of all payment systems in the Philippines to keep track of all fund transfers across individual and corporate entities.
Separately, the central bank is also pushing for increased use of digital platforms to improve efficiency and reduce transaction costs. The central bank is targeting to raise the share of electronic payments to 20% of total transactions by 2020, coming from just one percent back in 2013.

Failed 3rd telco bidders file motion for reconsideration

bidding NTC
PHOTO BY DENISE A. VALDEZ

By Denise A. Valdez, Reporter
THE two participants who were disqualified from bidding for the new major telco player have asked the National Telecommunications Commission (NTC) to reconsider its decisions.
Sear Telecommunications Consortium, led by TierOne Communications International Inc. and LCS Group of Companies (Sear-LCS-TierOne), and Philippine Telegraph and Telephone Corp. (PT&T) filed separate motions for reconsideration on Friday after the bidding’s selection committee disqualified over the lack of required documents.
The bid of Sear-LCS-TierOne wasn’t allowed to undergo further evaluation by the selection committee for the lack of a “participation security” worth P700 million. PT&T faced the same dilemma, but for not submitting the NTC certification proving its 10-year experience as a telco provider in a national scale.
“It will avail of the remedy available under the Selection Rules, by filing a Motion for Reconsideration (MR) within the prescribed period. In its MR, Sear will demonstrate its compliance with the requirements, which it hopes will qualify it to participate in the Opening of the Second Submission Documents,” Sear-LCS-TierOne said in a statement late Thursday.
The group also accused the franchise holder of the provisional winner, Mindanao Islamic Telephone Company, Inc. (Mislatel), of breaching a contract with one of its partners, DigiPhil Technology.
“Mislatel is guilty of fraudulent and obstructive practice. For this reason, the selection committee can declare a failure of such selection process…,” it said.
The group composed of China Telecommunications Corp., Dennis A. Uy’s Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp. had used Mislatel’s franchise as vehicle for its participation in the bidding.
“[T]here is a Damocles’ sword hanging over the NTC, and the new major player selection process would have been for naught… The best option for NTC would be to declare a failure of this process and commence another selection process,” Sear-LCS-TierOne said.
PT&T, on the other hand, argued the bidding terms of reference which required a participant to have operated for 10 years on a “national scale” as including “or particular regions thereof.”
The NTC did not issue a certification to PT&T indicating that it meets this requirement, as it said in an Oct. 11 clarificatory bulletin that the qualifier only applies to foreign companies.
“The interpretation is erroneous because there is no distinction between foreign and local company in the terms of reference insofar as the applicability of the term ‘regional operations’ is concerned. This is clearly discriminatory against Filipino telco companies,” PT&T said in a statement on Friday.
It added that a “mere clarificatory bulletin” should not change what’s written in the final terms of reference, which was published as a memorandum circular and it said thus has “force and effect of a law.”
The selection committee now has three days to review the motions for reconsideration submitted by the participants. Once any of the two are granted, the win of Mislatel Consortium may be tested.
Mislatel Consortium won Wednesday’s third telco bidding after earning 456.80 points out of the maximum 500 points. It committed for its five years of operations a cumulative coverage of 84.01% of the population, total capital expenditure and operating expenditure of P257 billion, and minimum average broadband speed of 27 Megabits per second (Mbps) in its first year and 55 Mbps in succeeding years.

JG Summit profit falls in Q3

JG Summit Holdings, Inc. saw its attributable profit drop by a fourth in the third quarter of 2018, as the weak peso weighed on its petrochemicals, food, and airline businesses.
In a regulatory filing, the Gokongwei-led conglomerate reported a net income attributable to the parent of P4.96 billion, lower than the same quarter a year ago’s figure of P6.60 billion. This came amid a six percent increase in revenues to P72.23 billion for the period.
On a nine-month basis, the listed holding firm said attributable profit went down by 30% to P14.80 billion, after revenues inched up by seven percent to P217.52 billion.
“JG Summit has a diversified portfolio with a combination of defensive and cyclical businesses. Our airline and petrochemical divisions are more susceptible to the volatility in oil prices and the weaker peso but the effect on earnings has been partly cushioned by our other core businesses in food, real estate and banking,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said in a statement.
JG Summit’s food and beverage business through Universal Robina Corp. (URC) was hit by the inflationary environment, which resulted to lower demand for ready-to-drink (RTD) beverages. This offset the improved sales in the branded consumer foods segment (BCFG) and coffee.
URC’s international BCFG also posted flat results, as sales in Thailand and New Zealand weakened despite the recovery in Vietnam.
With this, URC’s attributable profit fell by 17.2% to P6.8 billion in the nine-month period, after a 3.4% uptick in sales to P95.53 billion.
Earnings of Cebu Air, Inc. dropped by 36.5% to P2.78 billion during the January to September period, even as it booked a 7.4% increase in revenues to P54.4 billion.
The operator of budget carrier Cebu Pacific saw its expenses go up by 15.8% to P49.9 billion, primarily due to higher fuel prices. It noted that average prices based on the Mean of Platts Singapore (MOPS) stood at $85.37 per barrel from January to September, versus $62.89 per barrel in 2017. The weaker peso further pushed up the company’s expenses.
Meanwhile, the group’s property unit through Robinsons Land Corp. (RLC) improved its nine-month attributable profit by 43% to P6.55 billion, following higher sales of residential properties and better rental income. Revenues grew by 31% to P21.89 billion during the period.
RLC attributed its growth to its mall division, as it opened its 50th mall and recorded higher cinema box office receipts for the period. Its office leasing business also sustained its momentum thanks to the business process outsourcing sector, while residential revenues also went up due to higher demand from overseas buyers coupled with new product launches.
The petrochemicals group delivered earnings of P1.9 billion from January to June, 61% lower year-on-year due to unexpected plant shutdowns, generally weak demand across the region in the third quarter, higher financing costs, and foreign exchange losses. Average selling prices however increased, resulting to a 6% increase in revenues to P32.4 billion.
For Robinsons Bank Corp., net income jumped by 23% to P293 million, following a 32% increase in revenues to P4.3 billion due to higher interest income from its loan portfolio.
“Given our long-term view, we plan to continue investing wisely for growth as well as transform/strengthen our organizational capabilities so we reap the benefits when the cycle turns more favorable,” Mr. Gokongwei said.
Shares in JG Summit slumped 3.83% or P1.85 to close at P46.45 each. — Arra B. Francia

PAL operator trims losses in Q3

THE operator of Philippine Airlines (PAL) trimmed its attributable net loss by 15% to P2.54 billion in the third quarter.
In a regulatory filing, PAL Holdings, Inc. said its revenues grew 22% to P36.94 billion during the July to September period, on the back of an “increase in number of passengers as a result of additional flight frequencies and introduction of new routes.”
However, third quarter expenses still rose 21% to P39.73 billion, due to rising jet fuel prices.
“(The growth in expenses is) mainly due to the increase in jet fuel prices, aircraft lease charges, and number of flights operated. This was offset in part by the decrease in maintenance and repairs and general and administrative expenses,” the listed firm said.
PAL’s spending for jet fuel surged 54% as the average price grew by 34% to $96.38 per barrel from only $71.7 per barrel last year. Fuel consumption also rose as it added more flights during the period. “Lease charges likewise increased by 28.0% or P1.00 billion due to additional aircraft deliveries in 2018,” it added.
For the nine-month period, PAL cut its attributable net loss by 8% to P3.921 billion from P4.263 billion in the same period last year.
PAL said its total revenue in the first three quarters of the year is 16% higher at P112.07 billion, due to increased passenger and cargo revenues.
“The increase was brought about mainly by higher passenger and cargo revenues generated during the current period as a result of the increase in number of passengers and flights operated,” it said.
Total expenses jumped by 17% to P115.30 billion during the first nine months of the year, fueled by a 27% rise in flying operations expenses to P63.26 billion.
In September, PAL was allowed by the Civil Aeronautics Board (CAB) to implement a fuel surcharge for international and domestic flights to help it recover losses from the rising price of jet fuel.
PAL filed an application with the regulator earlier this year, saying it has been taking a hit from the global trend of costlier aviation fuel.
The International Air Transport Association (IATA) said the price of jet fuel is $89.90 per barrel as of Nov. 2, 22.8% higher from in the same period last year. — Denise A. Valdez

Mixed results for Entertainment City’s casino operators

OPERATORS of integrated resorts and casinos along Entertainment City reported mixed results for the third quarter of 2018.
Bloomberry Resorts Corp. — the operator of Solaire Resort and Casino — saw a 39% drop in attributable profit to P1.13 billion in the third quarter of 2018, due to lower VIP hold rates alongside higher interest expenses.
Third quarter revenues were flat at P9.81 billion, up by two percent year-on-year. The gaming segment accounted for bulk of revenues at P9.05 billion, while the food and beverage unit generated P494.24 million.
Gross gaming revenues (GGR) rose by 1.9% to P11.71 billion, as VIP hold rate stood at 1.91%, lower than the 2.83% seen in the same period a year ago. With this, revenues from the VIP segment slipped by 26% to P3.98 billion. The mass table tempered this decrease, after booking a 37.8% revenue uptick to P4.14 billion.
Its operations in Korea through Jeju Sun and Hotel Casino meanwhile grew its GGR by 28.1% to P193.5 million due to “an increased level of play in the VIP segment as a result of the highly competitive marketing programs of Jeju Sun.
On a nine-month basis, Bloomberry’s attributable profit went up by 8.45% to P6.47 billion, after revenues improved by 14% to P31.91 billion.
Meanwhile, Melco Resorts and Entertainment (Philippines) Corp. (MRP) said net revenues went down by four percent to $141.7 million in the July to September period, versus $148.2 million recorded in the same period a year ago.
The operator of City of Dreams Manila said the decline was mostly due to a shift in accounting standards.
“The decrease in net revenue was primarily attributable to higher commissions reported as a reduction in revenue upon adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board, partially offset by improved gross gaming revenues,” the company said.
Without the change in accounting standards, MRP said net revenues would have been at $167 million, around 13% higher from the same period a year ago.
Rolling chip volume reached $3 billion-unchanged from year-ago figures- with a win rate of 2.7%. Mass market table games generated $204.9 million, with a hold percentage of 32.4%. Meanwhile, gaming machine handle rose to $935 million, with a win rate of 5.3%, lower than 5.6% in the third quarter of 2017. — Arra B. Francia

Cebu Air swings to P518M loss in Q3

CEBU AIR, Inc. swung to a P518.4-million net loss in the third quarter from a P42-million profit a year ago, amid the continued rise in fuel prices and weakness of the Philippine peso against the US dollar.
In a regulatory filing, the operator of budget carrier Cebu Pacific said third quarter expenses grew by 19% to P16.8 billion, outpacing the 10% growth in revenues to P16.2 billion.
The bulk of expenses came from flying operations, which surged 35% in the July-September period to P7.4 billion due to higher jet fuel prices and a weaker peso.
For the first nine months of 2018, Cebu Air said its net income dropped 36% to P2.781 billion. Revenues grew by 7% to P54 billion, but expenses swelled by 16% to P49.9 billion.
Flying operations expenses rose 24% to P22 billion for the nine months ending September, driven by a 28% increase in aviation fuel expenses to P18.721 billion.
Cebu Air said this was due to “the increase in jet fuel prices as referenced by the increase in the average published fuel MOPS price of $85.37 per barrel in the nine months ended September 30, 2018 from $62.89 per barrel in 2017.”
“The increase in fuel cost was further augmented by the weakening of the Philippine peso against the U.S. dollar as referenced by the depreciation of the Philippine peso to an average of P52.51 per US dollar for the nine months ended September 30, 2018 from an average of P50.24 per US dollar last year based on the Philippine Dealing and Exchange Corporation (PDEx) weighted average rates,” the Gokongwei-led company said.
It was only in September when the Civil Aeronautics Board (CAB) approved the implementation of fuel surcharge for airlines to help them recoup losses from the rising world prices of jet fuel.
Cebu Air posted 28% higher net foreign exchange losses of P421.47 million in the third quarter, bringing the nine-month loss to P2.006 billion due to the depreciation of the peso against the dollar.
Rising interest rates also weighed on the company. Cebu Air recorded a 49% increase in interest expenses to a P591 million in the July to September period. This pushed the nine-month interest expense 47% higher to P1.55 billion.
Cebu Air said its average air fares went up by 5% to P2,617 for the January to September period, from P2,483 average fare during the same period a year ago.
Passenger volume inched up 1.6% to 15.106 million in the first nine months of 2018, versus 14.87 million a year ago. — D.A.Valdez

D&L on track to meet P3.4B income target

By Arra B. Francia, Reporter
D&L Industries, Inc. (DNL) said it remains on track to book a P3.2-billion profit for 2018, after net income by end-September rose by 13% year-on-year.
In a statement issued Friday, the listed plastics and oleochemicals manufacturer said net income reached P2.4 billion during the January to September period. For the third quarter alone, net income climbed 13% to P874 million.
“We really had a good third quarter this year,” DNL President and Chief Executive Officer Alvin D. Lao said in a press briefing in Makati on Friday.
Revenues however slipped by four percent in the third quarter to P6.91 billion, bringing the nine-month figure to P20.17 billion, higher by one percent year-on-year. The 26% increase in revenues from aerosols products tempered the seven percent decline seen in food ingredients. Revenues from specialty plastics and oleochemicals meanwhile grew by 19% and six percent, respectively.
Mr. Lao said the sales performance was dampened by lower prices of raw materials.
“Many of the raw materials we worked with like coconut oil, palm oil, prices are down significantly. Prices of coconut oil were down over 40%, palm oil prices are down 16% compared to last year, that had a negative effect on selling prices for products that use raw materials,” Mr. Lao explained.
Despite the flat revenues, the company grew volumes of high margin specialty products (HMSP) by eight percent, driving net income margin by 11.9%.
HMSPs account for 63% of the company’s revenues, while the remaining 37% came from the commodity business.
“The growth in the high margin side of the business is a reflection of our investments in R&D which allow us to increase our market penetration and to develop more complex and customized products for our customers,” the company explained.
DNL noted that 23% of its revenues for the nine months ending September were from exports, bulk of which are food ingredients.
The company delivered a free cash flow of P4.3 billion during the period, which it will be used to pay up debt.
“We’ve paid down our debt by a lot, and that’s timely because interest rates have been going up… Our interest expense for the first nine months of the year has actually gone up from last year, so despite the lower level of debt, our interest expense level has still gone up. It’s really a reflection of higher interest rates,” Mr. Lao said.
Shares in DNL were unchanged at P10.96 each at the stock exchange on Friday.

Phoenix Petroleum 9-month core profit jumps 27%

PHOENIX Petroleum Philippines, Inc. grew its core profit by 27% in the first nine months of the year, driven by higher volumes of petroleum products sold.
The listed company led by businessman Dennis A. Uy said core net income reached P1.32 billion from January to September, as revenues doubled to P64.96 billion. The volume of petroleum products sold jumped by 51% to 2.02 billion liters, with market share steady at 7.1% based on the Department of Energy’s report in the first half of the year.
Phoenix Petroleum’s domestic business increased its volumes by 21%, boosted by an 11% uptick in fuels and 23% for LPG. Its trading operations overseas through PNX Petroleum Singapore Pte. Ltd. accounted for more than a fourth of consolidated volume sales after selling more than 500 million liters during the nine-month period.
Its recently acquired convenience store chain, Philippine FamilyMart CVS, Inc. delivered average daily sales of 21% post-acquisition. The firm attributed the growth to the launch of its Generation 2 stores, which features more food selections and larger dining areas to attract more consumers.
The company currently operates 71 FamilyMart stores, with five more stores to be opened before the end of the year. Four of the operating stores are located on board Starlite Ferries vessels, with a full store on Starlite’s MV Salve Regina plying the Batangas to Caticlan route.
“In this highly dynamic operating environment, we continue to recognize opportunities. We are broadening our products and services — fuels, LPG, convenience stores, payments, and soon, asphalt — developing credible and compelling offers that create value for our consumers, partners, and shareholders,” Phoenix Petroleum Chief Operating Officer Henry Albert R. Fadullon said in a statement.
The company plans to issue up to P10 billion worth of commercial papers this year to finance the importation of fuels and lubricants, and to repay short-term loans with BDO Unibank, Inc., Asia United Bank Corp., Robinsons Bank Corp., United Coconut Planters Bank, and Development Bank of the Philippines due in December.
Shares in Phoenix Petroleum went up by 0.73% or eight centavos to close at P10.98 each at the stock exchange on Friday. — Arra B. Francia

Imelda Marcos found guilty of graft

THE Sandiganbayan on Friday found former first lady and Ilocos Rep. Imelda R. Marcos guilty on seven counts of graft during the Marcos regime.
In a statement, Ms. Marcos, who is 89 years old, said she plans to file a motion for reconsideration.
“(Retired Court of Appeals Justice Manuel “Lolong” M. Lazaro), who has previously appeared as counsel in this case, will act as my counsel in the interim. He is presently studying the decision and has advised us that he intends to file a Motion for Reconsideration,” she said.
In its decision released on Friday, the Sandiganbayan 5th Division said Ms. Marcos is “guilty beyond reasonable doubt” for seven charges of graft over the bank transfer of $200 million in public funds to Swiss foundations that the family created.
“She is sentenced, in each of these cases, to suffer the indeterminate penalty of imprisonment from six (6) years and one (1) month as minimum to eleven (11) years as maximum, with the perpetual disqualification to hold public office,” the anti-corruption court said.
Ms. Marcos was not present during the hearing on Friday.
The Sandiganbayan also ordered the issuance of an arrest warrant against Ms. Marcos. As of press time, the arrest warrant has not been issued.
Assistant Special Prosecutor Ryan Quilala said the Sandiganbayan decision isn’t final and executory yet as the former first lady can still file an appeal.
“Di pa po final. May mga remedies si congressswoman under the law (It’s not yet final. There are still remedies for the congresswoman under the law),” he said.
Under the Sandiganbayan’s rules, Ms. Marcos has 15 days from promulgation of the ruling to file an appeal. The court has 30 days to decide on the appeal. She may also elevate the case before the Supreme Court.
The graft charges were filed against Ms. Marcos in 1991. She was not charged with plunder because the Anti-Plunder law did not exist then and the offenses were committed in the 1970s and 80s while she was still Minister of Human Settlements and member of Interim Batasang Pambansa.
Under the law, graft is a bailable crime.
Philippine National Police (PNP) Chief Oscar D. Albayalde said the PNP will not arrest the former first lady not until they are given instructions by the court to do so.
Presidential Spokesperson Salvador L. Panelo said the decision is “a good reminder to all public servants that public office is a public trust and that we are all accountable to the people we serve.”
“This latest development underscores that our country currently has a working and impartial justice system that favors no one,” Mr. Panelo said in a message to reporters on Friday. — Gillian M. Cortez

Honasan accepts DICT post

SENATOR Gregorio B. Honasan II on Friday said he is accepting President Rodrigo R. Duterte’s offer to become the next chief of the Department of Information and Communications Technology (DICT).
“For a better Philippines, a better government, for the Filipino People, and for a better future for our most precious children, I have decided to accept the offer of the President to help lead the DICT,” Mr. Honasan said in a phone message to reporters.
Mr. Honasan’s second term at the Senate ends in 2019. He is the second senator of the 17th Congress to leave the Senate to join Mr. Duterte’s Cabinet, after Senator Alan Peter Cayetano who was tapped to head the Department of Foreign Affairs.
For its part, Malacañang expressed confidence that Mr. Honasan will be able to provide a ”good direction” for the DICT.
“With the entry of a provisional new major player in the telecommunications industry, we are confident that the senator would provide good direction and sound management to the DICT, consistent with the President’s priority programs beneficial to Filipino consumers in the areas of information, communications and technology,” Presidential Spokesperson Salvador S. Panelo said in a statement.
He added that the Office of the President has yet to provide the formal appointment paper of Mr. Honasan. “For now, we congratulate Senator Honasan and wish him all the best as he undertakes genuine reforms in the DICT,” he said.
In a phone message to reporters, DICT Acting Secretary Eliseo M. Rio, Jr. said he hopes that the President will give him “a few more weeks to finalize the entry of a third telco player.”
“I would not understand why I have to be changed in midstream of a very important activity that would finally bring a significant improvement in the telecommunication industry. I see no urgency in Senator Honasan taking over, at least until I fully finish this job on the third telco, which I promised the President it would be done before Christmas,” Mr. Rio also said.
The government earlier this week declared the Mislatel Consortium, composed of China Telecommunications Corp., Dennis A. Uy’s Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp., as the provisional winner of the auction for the Philippines’ third major telco. — Arjay L. Balinbin

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