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PhilHealth says hospitals deny threat on non-accreditation

“A CHEAP stunt.”

This is how the Philippine Health Insurance Corp. (PhilHealth) has dubbed the supposed threat of 600 private hospitals’ not to renew their accreditation due to unpaid claims.

PhilHealth Chief Executive Officer Ricardo C. Morales, in a press briefing Friday, said, “There is no truth to that threat that there will be 600 hospitals that will pull out.”

“All the hospitals we have talked to denied that they will do that.”

The Private Hospitals Association of the Philippines (PHAPi) wrote an open letter addressed to the PhilHealth CEO saying that 600 hospitals have yet to receive their reimbursements and are planning not to renew their accreditation with the state health insurer.

Mr. Morales said such threat “will not work because it is putting the public in a predicament which they don’t deserve.”

He said PhilHealth will work directly with the hospitals to address the issue and resolve their unpaid claims.

He added that PhilHealth will be adopting a health information system that will improve the payment process for hospital claims.

The government is set to implement the Universal Health Care (UHC) Law next year, which automatically places all Filipinos as members of PhilHealth.

“We will be rolling out the Universal Health Care Law. We already have a date which is January 1, 2020 so until that date, we will be very busy because we will be communicating with stakeholders,” he said. — Gillian M. Cortez

Palace asserts medical bulletin on Duterte not needed with no ‘serious illness’

THE PALACE on Friday asserted that there is no need to issue a medical bulletin on President Rodrigo R. Duterte’s health status because he has no “serious illness.”

“The medical bulletin comes into play only when the President is in serious illness. That is the constitutional requirement,” Presidential Spokesperson Salvador S. Panelo said in a briefing.

Section 12 under Article 7 of the 1987 Constitution states: “In case of serious illness of the President, the public shall be informed of the state of his health.”

Mr. Panelo further said the Palace has been transparent enough by reporting that the President has been experiencing muscle spasms, which is not considered serious as it only requires him to take painkillers and rest.

The spasms are supposedly the cause of the reported “unbearable pain” that Mr. Duterte experienced on Tuesday, prompting him to cut short his working visit to Japan. Prior to the trip, the President was reported to have sustained minor injuries after falling off a motorcycle at the end of a joy ride within the Presidential Security Group Compound

Mr. Panelo said the President is currently in his hometown Davao to rest and will fly back to Manila on Monday.

Despite the medical advice to limit physical activity, Mr. Duterte was shown sitting on a motorcycle Thursday night through a post by Senator Christopher Lawrence T. Go, his former special assistant. — Gillian M. Cortez

Manila Water reports 100% adherence to schedule on day 1 of rotational supply

MANILA WATER Company, Inc. reported 100% adherence to its rotational service schedule in the eastern part of Metro Manila and Rizal on Oct. 24, the first day of the renewed supply interruptions.

In a statement on Friday, the company said the supply problem, caused by a decline in the water levels at its main source Angat Dam, may continue until next year.

“With its current inflow, Metro Manila’s main water source may not reach its ideal 212-meter level by the end of 2019,” the statement said.

The company started asking customers to store enough water on Oct. 17 as it announced a schedule of interruptions.

“The company has since sought the understanding of its customers as this effort is necessary to ensure the still-limited raw water supply will last even beyond the summer of 2020,” Manila Water said.

According to the Metropolitan Waterworks and Sewerage System (MWSS), Angat Dam’s elevation was at 185.85 meters on Oct. 24, with the spilling level at 217 meters.

Manila Water manages 5,000 kilometres of pipes, around 320 major valves, 28 reservoirs, and over 100 pumping stations. — Jenina P. Ibañez

SC dismisses case on Calida inquiry

THE SUPREME Court (SC) has dismissed for being “moot” the case involving a Senate inquiry on Solicitor General Jose C. Calida and the alleged conflict of interest over government contracts awarded to his family-owned security agency.

In the decision dated Oct. 24, the SC cited that the proposed Senate resolution calling for the inquiry was filed during the previous Congress, which closed on June 4, 2019.

With the 18th Congress already in place, the proposed resolution “automatically ceased, rendering this case moot as ‘the conflicting issue that may be resolved by the court cease[d] to exist’,” reads part of the decision.

The decision also cited that former senator Antonio F. Trillanes IV, who filed the resolution, is no longer in the current Congress.

Mr. Trillanes sought a probe to look into government contracts awarded to Vigilant Investigative and Security Agency, Inc, which is owned by Mr. Calida and his family.

Mr. Calida questioned the resolution before the high court, citing that Mr. Trillanes gave out invitations to resource persons, including Mr. Calida, without an approval from the Senate.

The former senator argued that he had the authority being the chair then of the committee on civil service. — Gillian M. Cortez

One-stop shops, electronic courts to boost PHL’s ‘Doing Business’ ranking

THE PHILIPPINES can make doing business easier for entrepreneurs through one-stop shops as well as by establishing electronic courts to streamline dispute resolution among entrepreneurs, World Bank analysts said on Friday.

In a video press conference televised from Malaysia and aired in Taguig City, World Bank analyst Maksym Lavorsky said enforcement of contracts can be improved more, as it takes 962 days to resolve a commercial dispute in the Philippines, significantly longer than the 580-day average in the East Asia and the Pacific region.

“As you can see, the enforcement of contracts is at the bottom of this table. So you can see, there is room for improvement on that. It takes the Philippines 962 days to resolve a commercial dispute while the average in East Asia and the Pacific region is around 580 days to settle a dispute. So this is an area where the Philippines can improve on,” Mr. Lavorskyi told reporters.

He said the Philippipnes can adopt an electronic court system and streamline its processing of complaints to improve its performance in the court automation index indicator where it scored zero in the World Bank’s Doing Business 2020 report published last Thursday.

“The implementation of electronic courts, as we sometimes call them, makes it possible to file complaints electronically to courts. This is an area where the Philippines can move into because in the court automation index indicator, the Philippines has a score of zero,” he said.

In the report published on Thursday, the Philippines’ ranking rose to 95th place this year from 124th last year as it saw its points inch up to 62.8 from the previous 57.7.

The multilateral bank said the country’s score went up this year as it made it easier to start a business and to deal with construction permits. It also strengthened minority investor protection by requiring greater disclosure of and enhancing director liability for transactions with interested parties, it said.

Another area the Philippines can improve on is in terms of getting credit, World Bank economist Victoria Kwakwa said.

“There is indeed much room for improvement there especially on the rights of lenders with respect to security of transactions and quality of credit information,” Ms. Kwakwa said.

For Arvind Jain, senior economist and statistician at World Bank, the Philippines could enhance its one-stop shops to make it easier for entrepreneurs to start businesses. This includes simplifying procedures, limiting the number of authorities processing requirements to one, as well as lessens costs.

“In terms of why businesses find it difficult to start businesses, across counties, there must be several procedures that businesses need to undertake to start business. they may have to go to one authority, register with main authority, then to tax authority then another procedure. Sometimes, cost in registering a business can be cumbersome,” Mr. Jain said.

Sought for comment, Socioeconomic Planning Secretary Ernesto M. Pernia told reporters on Friday that the government “should adopt single-window policy that will really facilitate the processing of permits and other requirements,” to improve its ranking. — Beatrice M. Laforga

SC ruling on business inspections to boost PCC

THE PHILIPPINE Competition Commission (PCC) said the recent Supreme Court (SC) ruling that authorizes commercial courts to conduct inspection orders on business premises for anti-competitive behavior will bolster its investigation tools.

This implementation of the Rule on Administrative Search and Inspection under the Philippine Competition Act on Nov. 16 will give PCC power to conduct dawn raids, it said in a statement.

This means that deputized agents can “enter, search, and inspect business premises, offices, land and vehicles to examine, copy, photograph, record or print information in order to prevent their removal, concealment, tampering with or destruction.”

PCC said this bolsters their investigations of anti-competitive behavior such as cartels and abuse of dominance.

“Cartels operate on clandestine arrangements or so-called gentleman’s agreements that ultimately affect prices and hurt consumer welfare.” PCC Chair Arsenio M. Balisacan said.

“With the rules on dawn raids now in place, this will intensify PCC’s case-building, uncover anticompetitive behavior, and pin down such white-collar crimes covered by the Philippine Competition Act.”

The SC decision allows inspection orders to be issued if the commercial court finds reasonable grounds to suspect that information sought is stored or accessible at the premises indicated in the application.

Applications for an inspection order are to be acted upon within 24 hours from filing.

Information that can be inspected during dawn raids include books, tax records, documents, papers, accounts, letters, photographs, databases, means of accessing information contained in such databases, and electronically stored information.

Commercial courts in Quezon City, Manila, Makati, Pasig, Cebu City, Iloilo City, Davao City, and Cagayan de Oro City can issue inspection orders that are enforceable nationwide.

PCC said that special commercial courts will have concurrent jurisdiction within their respective territorial jurisdictions.

Persons or entities that refuse to comply with an inspection order may be fined, imprisoned, or both under a contempt of court charge.

“The PCC extends its profound thanks to the Supreme Court for strengthening our armory of investigative tools to detect, investigate and prosecute anti-competitive agreements and conduct. The rules strike a balance between due process and public interest in enforcing the competition law,” Mr. Balisacan said. — Jenina P. Ibañez

Bill on loan program for MSMEs filed

HOUSE SPEAKER Alan Peter S. Cayetano has filed a bill which aims to institutionalize a simplified loan program with low interest for micro, small, and medium enterprises (MSMEs) in the country.

Mr. Cayetano filed House Bill No. 5 or the “Puhunan, Tulungan, Kaunlaran Act of 2019.” It provides a loan program with much lower and affordable interest rates to prohibit enterprises from resorting to “5-6” lenders.

Under the proposed loan program, first time borrowers can loan P10,000; P30,000 for second time borrowers; and P250,000 for third time borrowers. Loan proceeds shall be exclusively used for capital.

Those applying for loans must be at least 18 years old, a member of registered cooperative or association, must bring a comprehensive feasibility study of the business proposal, and has attended a seminar organized by the Department of Trade and Industry.

The proposed measure also creates a comprehensive development and assistance program for MSMEs which will be tailored fit for each administrative region. It seeks to transform MSMEs into five-star businesses.

The measure also mandates free technical and administrative support such as training on development skills, packaging and design, quality control, market promotion, and financial literacy.

Also, the five top-performing enterprises per size and category yearly in each region shall receive grants not less than 10% of their current capital.

Every medium-sized enterprise that evolves into a large enterprise through the help of the program shall also be eligible for a one-time grant of P25,000 for further business capitalization.

The current law that provides help to MSME is the Republic Act No. 10693 or “Microfinance NGOs Act” which encourages non-government organizations to provide microfinance services to MSMEs. — Vince Angelo C. Ferreras

4 firms eyeing Malaya plant — PSALM

FOUR companies expressed interest in participating in the auction for the 650-megawatt Malaya Thermal Power Plant (MTPP) and its underlying land in Pililia, Rizal, according to the Power Sector Asset and Liabilities Management Corporation (PSALM).

In a statement on Friday, PSALM said Panasia Energy, Inc., Phinma Energy Corp., Hill Trench Power, Inc. and Therma Central Visayas Inc. sent representatives to the pre-bid conference held on Thursday.

“The pre-bid conference enabled interested bidders to ask questions and request for clarifications relative to the bidding requirements. This is integral to ensuring that the bidders can eventually submit bids and documents that are responsive to technical requirements of PSALM,” PSALM President and CEO Irene Besido-Garcia said.

The MTPP was declared a Must Run Unit (MRU) in 2014 by the Department of Energy. It is not allowed to compete with the private sector unless the private firms’ reserves are below their minimum level.

The National Grid Corporation of the Philippines currently operates the MTTP.

After privatization, the Department of Energy stated that the MTTP will no longer be required to run as an MRU.

PSALM declared a failed auction for the MTPP last Sept. 18, after only one bid, from the Ayala-owned AC Energy Inc., was received.

For the new auction, the last day for submission of documentary deliverables is on Nov. 7, which PSALM would check for qualification. Qualified bidders would be informed of the reserve price.

The deadline for submission of bids is 12 noon on Nov. 22. The bids will be opened and evaluated on the same day.

In the event that only one bid is received, the PSALM Bids and Awards Committee will declare a second failure of bidding, and will immediately hold a negotiation with the lone bidder. — Jenina P. Ibañez

Now Corp, Korean telco to develop 5G network in PHL

NOW Corp. and its affiliate Now Telecom Co., Inc. is teaming up with South Korea’s SK Telecom Co., Ltd. to launch a commercial fifth generation (5G) network in the Philippines.

In a disclosure to the stock exchange Friday, the Velarde-led company said it signed a memorandum of understanding (MoU) with the South Korean telco to establish a 5G stand-alone network and form a 5G roadmap for the country.

“SK Telecom and Now expect to draw up a Phased 5G Commercialization Plan as part of the agreement,” it said.

SK Telecom is the largest telco in South Korea with a market share of almost 50%. Now said it wants to take advantage of the Korean company’s 5G knowledge to develop in-building solutions, business-to-business services and 5G-enabled enterprise applications.

“This partnership with SK Telecom will help produce a more defined business strategy for Now and its execution programs for the next five to ten years as the country begins to embrace 5G and its various applications,” it said.

Now Telecom said in June it wants to battle Globe Telecom, Inc. and Smart Communications, Inc. in the 5G arena, with plans to adopt 5G technology for enterprises and homes with speeds of up to 20 gigabits per second (Gbps).

Globe is the only telco in the Philippines that currently offers 5G services. It started the commercial availability of its 5G network to home subscribers in July.

Smart, the wireless unit of PLDT, Inc., is scheduled to make its 5G service available commercially by early next year, as it had already fired up two 5G cell sites last year.

In September, Now Telecom was given a cellular mobile telephone system (CMTS) license by the National Telecommunications Commission. This allows the company to operate as a wireless telco in the country, joining other CMTS license holders Globe, Smart and Dito Telecommunity Corp. — Denise A. Valdez

Globe to acquire majority stake in ECPay

GLOBE Telecom, Inc. is spending P1.54 billion to acquire a majority stake in Electronic Commerce Payments, Inc. (ECPay).

The Ayala-led telecommunications firm on Friday told the stock exchange its acquisition of a 77% equity interest in ECPay from Payment One, Inc. and The Andresons Group, Inc. It bought 49.28 million shares in the firm priced at P31.25 apiece.

The deeds of assignment and other definitive documents were also signed Friday to close the transaction. Globe said the transaction was done in cash.

“Integrating ECPay into Globe’s network of retailers will add value to our distribution channels, enabling them to offer a suite of products and services via a single platform,” Globe President and Chief Executive Officer Ernest L. Cu was quoted as saying in a statement.

ECPay is in the business of providing information technology and electronic commerce related solutions. Adding it to Globe’s list of subsidiaries is expected to help small business owners that are with the company to “offer more products and services which in turn will stimulate the e-commerce industry and the digital economy.”

“It will also future-proof Globe’s distribution network, bringing the company a step closer to its vision of a digitally-enabled Philippines,” it said.

BPI Capital Corp. was the exclusive financial advisor to Globe Telecom for the transaction.

Last month, Globe also bought back its shares in tech company Yondu, Inc. from Xurpas, Inc. to become the sole owner of the firm. It said then the move is intended to boost the company’s enterprise business.

In the first six months of the year, Globe posted an attributable net income of P12.05 billion to grow 21% from last year due to the robust growth of its data business. It is allocating P63 billion for capital expenditures this year. — Denise A. Valdez

Rockwell to avail of 2 loans worth P15B

ROCKWELL Land Corp. will avail of two long-term loan facilities worth P15 billion to fund its capital expenditures and repay debt.

The Lopez-led property developer told the stock exchange Friday its board of directors has approved the availment of P5 billion loan from Philippine National Bank and a P10 billion loan from BDO Unibank, Inc.

Rockwell Land said the proceeds will be used to fund its capital spending requirements and to refinance its maturing debts.

The company allocating P12-14 billion for capital expenditures this year, including expanding its land bank.

It is expecting to end the year with more than P10 billion in sales from residential developments, as it announced in May a pipeline of projects such as its first horizontal development in Laguna.

In terms of reservation sales, Rockwell Land is looking at reaching P16 billion by the end of the year, higher than the P15 billion in reservation sales last year.

The company posted an attributable net income of P1.28 billion in the first semester, up 25.5% from the P1.02 billion it reported last year, on the back of a 21% reduction in gross expenses to P5.21 billion. — Denise A. Valdez

Cement manufacturers post higher Q3 earnings

LISTED cement manufacturers saw higher earnings in the third quarter, as they focused on cost and operational efficiency amid a slowdown in construction activity.

Holcim Philippines, Inc. reported a 159% growth in attributable net income to P457.2 million in the July to September period, while Cemex Holdings Philippines, Inc. swung to a net income of P150.49 million from a net loss of P5.78 million last year.

Holcim posted a 3% decline in net sales to P8.28 billion due to lower volumes of cement sold during the period, but “cost improvements across all our operations coupled with better prices of cement and aggregates” pulled up the bottomline.

For Cemex, net sales also went down 3% to P5.87 billion due to lower cement volumes from a slowdown in construction activity. But gross profit climbed 7% to P2.42 billion because of an 8% reduction in cost of sales to P3.44 billion.

In the nine months to September, Holcim’s attributable net income increased 8% to P1.88 billion, while Cemex’s net income soared 1,066% to P1.18 billion.

“Our intensified focus on cost and operational efficiency across all our operations has allowed us to sustain high performance levels amidst a still muted market environment,” Holcim Philippines President and Chief Executive Officer John Stull said in a statement Friday.

The company’s profit from operations stood at P2.94 billion at the end of September, climbing 17% from the same period a year ago.

“We have seen better pricing and a favourable product mix. With our new and improved cement production and dispatch facilities commissioned this year, we are ready to capture opportunities as the market grows and deliver innovative products and solutions to our customers,” Mr. Stull said.

Cemex, on the other hand, noted that “net income for (the nine months) benefited mainly from higher operating earnings, foreign exchange gains and lower income tax expenses.”

Cemex was able to record a 46% growth in operating earnings to P2.12 billion during the nine-month period, as foreign exchange gains stood at P128 million from a foreign exchange loss of P546 million last year, and income tax expenses trimmed 60% to P303 million. — Denise A. Valdez

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