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Philips, under investigation in US and Brazil, fired whistle-blower who warned of graft

SAO PAUL — Health care giant Philips was warned of suspicious sales of its medical equipment to the Brazilian government, and failed to halt them, nearly a decade before an alleged bribery racket was exposed in the company’s Brazil operations last year, Reuters has learned.

Claims of malfeasance reached the highest levels of the Dutch conglomerate as early as 2010, according to court records filed by federal prosecutors, internal company documents and Reuters interviews with a former manager at a Philips subsidiary in Brazil who says he told superiors of the suspected scheme and was later sacked.

That ex-employee, Jose Israel Masiero Filho, a former supply-chain executive with Dixtal Biomedica Industria e Comercio Ltda., spoke extensively with Reuters in his first interview with foreign media. He said in January 2010 he spotted irregularities in three deals to sell Philips and Dixtal equipment to an obscure Brazilian middleman who had landed big contracts with Brazil’s Ministry of Health. Masiero said he suspected payoffs had been used to secure that government business, allegations now at the heart of a burgeoning graft probe in Brazil, court records show.

Masiero emailed an internal Philips hotline immediately to report his suspicions, met soon after with the company’s top compliance officer, and alerted at least three other senior executives during 2010. Among them was Steve Rusckowski, former chief executive of Philips Healthcare, the company’s largest division. Masiero’s warnings were detailed in emails, internal company memos and court records viewed by Reuters.

“Philips should consider that by approving and accepting these sales, it will be involved in illegal activities if discovered,” Masiero wrote to Rusckowski in an email dated October 14, 2010.

Still, Koninklijke Philips, as the company is formally known, continued to sell to the Brazilian intermediary to fulfill the Health Ministry contracts, invoices show.

Rusckowski, who served as Philips Healthcare’s chief executive until April 2012, did not respond to requests for comment. He is now CEO of New Jersey-based Quest Diagnostics.

In an emailed statement to Reuters, Philips said it is cooperating with Brazilian authorities investigating the nation’s medical device industry. The company said it launched an internal investigation in 2010 in response to an “anonymous complaint” but “did not identify direct evidence of wrongdoing.” The company said it did, however, tighten up its internal control processes in Brazil.

Philips would not discuss ex-employee Masiero or the circumstances surrounding his dismissal.

Brazil’s Health Ministry did not respond to requests for comment.

HEALTH CARE IN THE CROSSHAIRS
Philips is now among the targets in a widening investigation into medical contracting graft in Brazil that authorities say is still in its early stages, and which has sparked additional probes by US law enforcement.

Masiero is cooperating with Brazilian prosecutors. They allege Philips and other multinationals conspired with intermediaries to pay bribes for public contracts, charging Brazil’s state health care system inflated prices to recoup the cost of the kickbacks. Twenty four people were charged last year in connection with the alleged scheme. All are currently on trial in Rio de Janeiro.

Germany’s Siemens AG and the American firms Johnson & Johnson, General Electric Co and Stryker Corp), all major manufacturers of medical devices, have been swept up in the probe.

Johnson & Johnson, Siemens and GE declined to comment. They previously denied wrongdoing and said they were cooperating with the investigation. Stryker said it was committed to working in an ethical manner and that it was unable to comment further.

In the United States, the FBI, Department of Justice and the Securities and Exchange Commission have launched their own investigations into suspected corruption in sales of medical equipment in Brazil as well as China, according to people with knowledge of the matter.

The whistle-blower Masiero said he is cooperating with all those agencies, an assertion confirmed in emails viewed by Reuters. The Justice Department, SEC and FBI all declined to comment.

Philips told Reuters it is “reviewing” inquiries from the Justice Department and SEC in connection with the Brazil probe.

MYSTERIOUS MIDDLEMAN
Now 52, Masiero was hired in 2006 to be Dixtal’s exports manager, rising to become the top logistics and supply chain executive for the Sao Paulo-based medical device firm in early 2009. Philips purchased Dixtal in 2008.

In early 2010, Masiero noticed what he considered irregularities with three large contracts awarded by Brazil’s Health Ministry. The deals, one for 750 Philips heart defibrillators, the others for a total of 3,972 Dixtal vital-signs monitors, were worth a combined 68.9 million reis (about $40 million at the time), government records show.

Masiero said he found it odd that Philips did not compete directly for such a major piece of business. Neither Philips or Dixtal submitted bids, according to government records of tender competitors viewed by Reuters.

Instead the contracts were won by Rizzi Comercio e Representacoes Ltda., a little-known Brazilian medical supply firm. Masiero, tasked with getting the equipment to Rizzi Comercio, was surprised to find its billing address was a tiny storefront with peeling purple paint in a dilapidated Sao Paulo neighborhood.

“It was an immediate red flag for me,” Masiero told Reuters.

In addition, the Health Ministry was paying well above market prices for the equipment, Masiero said, unusual for a large customer with buying clout. On February 12, 2010, for example, Masiero allegedly received an email from a Philips’ sales executive, Frederik Knudsen, directing him to deliver the first shipment of 60 defibrillators to Rizzi Comercio, which marked up those devices an additional 67%, according to correspondence included in court records.

“The value that should be on the order is what was agreed to with the Health Ministry” — $16,700 per unit — “and not what we sold them to Rizzi for ($9,991),” according to the email allegedly from Knudsen, which was seen by Reuters.

Prosecutors say Philips and Rizzi Comercio conspired to disguise and recoup the cost of bribes through inflated prices, fleecing Brazilian taxpayers in the process.

Knudsen, whom Philips confirmed still works for them, is now among those on trial in Rio. So is Daurio Speranzini, who led Philips Healthcare’s operations in Latin America for seven years before joining GE in 2011. He left that firm last December. Both men were charged last August with racketeering and fraud.

Knudsen’s lawyers did not respond to requests for comment. In a written defense filed with the court, they said Knudsen did not set Philips’ prices and that he is innocent. In a separate court filing, they also questioned the veracity of the emails their client allegedly sent to Masiero.

Speranzini’s lawyers referred questions to their written defense, which contends he had no knowledge of the alleged bribery scheme or of Masiero’s warnings.

Also on trial for racketeering and fraud are two brothers who own Rizzi Comercio, Wlademir and Adalberto Rizzi.

Their lawyer, who did not respond to requests for comment, said in court filings that her clients engaged in no illegal activities.

SOUNDING THE ALARM
Uneasy about the deals with Rizzi Comercio, Masiero on January 20, 2010, notified Philips’ global compliance team in Amsterdam through an email hotline.

Philips sent Caroline Visser, then-chief of Philips’ global compliance, to Brazil to meet with Masiero in March 2010. She promised a swift investigation, according to emails the pair exchanged.

Two months later, Masiero was transferred from Dixtal to a logistics post within Philips in Sao Paulo, a move he considered a demotion and an effort to silence him. The shipments continued, invoices show.

Frustrated, Masiero on October 14, 2010, sent an email to Rusckowski, the head of Philips’ health care division. — Reuters

Shadow bank crackdown accelerates in India

INDIA IS stamping out shadow financiers at the fastest pace in recent years, in the latest blow to a beleaguered sector battling a prolonged funding crunch due to rising wariness toward it in the nation’s credit markets.

The central bank canceled registrations of 1,851 non-bank finance companies (NBFC) in the year ended March 31, more than 8 times those in the previous year, according to data received from the Reserve Bank of India (RBI) in response to a Right to Information request. The number of lenders dropped to about 9,700, the lowest in at least a decade, as a result. Firms may be failing to secure the minimum funds needed to operate due to the cash crunch.

“RBI canceled permits of these NBFCs as they couldn’t raise even 20 million rupees” to meet regulatory requirements, said Mahesh Thakkar, director general at Finance Industry Development Council. The lobbying body for the financiers had been demanding a liquidity window for NBFCs through banks as a lifeline.

The perils in the sector highlighted by missed repayments on dues by Dewan Housing Finance Corp. and Reliance Home Finance Ltd. in recent months have heightened risk-off sentiment and worsened the lenders’ access to domestic money markets. RBI has also tightened regulations this year by putting in place rules requiring shadow lenders to appoint a chief risk officer and proposing stringent liquidity requirements.

The government plans to bolster the central bank’s authority over shadow lenders and has transferred the regulation of housing finance companies to the RBI from National Housing Bank last month.

RBI is already working closely with shadow banks after detecting signs of fragility in some of the 50 housing finance and other non-bank lenders it’s monitoring. — Bloomberg

A tribute to Richard Williams, 1933–2019

ONCE upon a time, there was an animator named Richard Williams who built a reputation out of fashioning animated shorts.

In 1964, Williams illustrated short stories about the mythical comic figure of Nasrudin which, in 1968, he turned into a film project. When support fell apart (in 1973), he took characters and stories he worked on — particularly his favorite, a thief — and repurposed them into a new production he would end up calling The Thief and the Cobbler.

Williams and his people continued developing the film on and off for some 20 years, using money earned from commercials, television specials, and film credit assignments. He would describe Thief as a “100 minute Panavision animated epic feature with a hand-drawn cast of thousands” that is “not following the Disney route… It has no sentiment and the two main characters (the thief and cobbler) don’t speak. It’s like a silent movie with a lot of sound.” He adds “the idea is to make the best animated film that has ever been made.” It was his child, his dream project that he hoped — somehow, someday — to complete. The film’s legend grew accordingly.

Steven Spielberg saw footage of Thief and hired Williams as animation director for Who Framed Roger Rabbit?, which turned out to be an award-winning monster hit — and Williams’ golden opportunity. When Warner Brothers offered $25 million to help finish Thief, Williams accepted but the film had to be finished by 1991.

Williams and his crew labored mightily, sometimes up to 60 hours a week. The filmmaker often fired animators when they didn’t meet his standards. When the deadline came and went, Williams was forced to present what he had: a workprint with 85 minutes of footage, with pencil tests and storyboards to cover over gaps in the story. He needed six more months to draw the remaining 15 minutes, and the film would be complete.

Warner backed out of their deal. Disney was about to open Aladdin — which, viewed closely, included characters and animated sequences that resembled those in Thief (some of its animators were people Williams had fired) and the idea of competing directly against the mighty Mouse seemed like a losing proposition (it would have been a different scenario if Williams had finished on time, and Warner was able to preemptively release the film). In 1992, Williams’s dream project of some twenty-four years was taken from him by a completion bond company, which cut footage out and put (cheap-looking) footage involving musical numbers (because, y’know, Disney) in; the result was released as The Princess and the Cobbler, and promptly failed at the box-office ($669,276 in receipts against a $28 million budget).

Miramax Films — a company notorious for buying up and mutilating independent pictures before releasing them in the American market — buys Thief from the bond company, mutilates it some more, adds celebrity voices to the silent thief and cobbler, releases the film as Arabian Knight… which does poorly with the critics and not much better at the box office.

(Side note in the “poetic justice” department: the bond company has since reportedly gone out of business; as for Miramax’s Harvey Weinstein — well — he’s been charged with rape, among other things.)

THE TRANSITORY BEAUTY OF ANIMATION
And so matters remained.

Until one Garrett Gilchrist, in 2006, created a nonprofit fan cut of Williams’s fabled workprint, painstakingly piecing it together from what material was out there: 35-mm workprints of The Princess and the Cobbler; a Japanese DVD of Arabian Knight; and different elements donated by different animators who worked on the film. With a tenacity not unlike Williams’s and a period of some seven years, Gilchrist has managed to assemble a 100-minute version that may represent the closest thing we have to date of Williams’s original vision.

What’s the film like? It opens on a black screen and out of the black emerges a crystal orb clutched by a pair of wizened hands; a voice (Felix Aylmer) intones: “it is written… that the world which we see is an outward and visible dream of an inward and invisible reality.”

Truism of the Saint-Exupery variety. But the solemnity is impressive, and the knobby fingers look like spider’s appendages holding their prey captive. Inside the orb whirl purple clouds that give way to a galactic spiral, an ocean whirlpool, a dust devil, a fabulous city — the rendering lovingly detailed, like from a Renaissance era map, the whole opening striking the tone of ancient mysteries about to be revealed.

We first see the cobbler (single line of dialogue credited to Sean Connery, but was probably spoken by Williams’s wife’s friend — which wife I’m not sure; he went through four marriages, and the production spanned decades) lying on a mat; he rolls over and, in his sleep, picks up a thread, passes it through a needle’s eye.

A few things to note: how graceful the flow of motion (Williams animates on ones, meaning he had 24 in-between drawings done per second, the rate at which the eye appreciates a full second of film; most studios animate on twos — or 12 in-between drawings per second — sometimes more) even in as simple an act as rolling in sleep; how humble the cobbler’s circumstances are (he can’t even afford a bed); and how ingrained his skills are in muscle memory as he threads a needle in his sleep.

Early reviews of the film — particularly those of Arabian Knight, with Matthew Broderick muttering commentary as the cobbler, and Jonathan Winters improvising witticisms as the thief — note the pancake-flat characterization, but critics probably focused on the added monologues as opposed to the delicate pantomime of the original characters. If as F. Scott Fitzgerald once said “action is character| then the film is full of moments illuminating each character; dialogue would distract from the delicacy of their performance as effectively as if they had been yelling.

Likewise for the thief — Tack may be the story’s ostensible hero but much of the film’s screen time, and I suspect, the film’s very heart, is given over to the eponymous if nameless thief. Jonathan Winters’s on-the-spot improvs were amusing but violate the character’s concept: Williams’s thief never speaks, has no room in his head for speech; his mind is dominated by a raging kleptomania, a desire — no, lust — to acquire anything and everything shiny and beautiful.

The rest of the film is one breathtaking setpiece after another interrupted by crude pencil sketches or still photographs — but the story flows, if the images don’t always. In the case of some sequences — the Escher-like chase through the palace, the assault of the War Machine — the result is a series of grand follies, much like Shah Jahan’s gorgeous mausoleum taking 11 years, 20,000 artisans, and $827 million to build, a monumental memorial to love (in Shah Jahan’s case to his late wife; in Williams’s case to the transitory beauty of animation).

In the case of the palace chase Williams takes the Arabic fondness for geometric patterns and — literally — runs with it: perspectives are treacherous, and one crosses a marbled floor at one’s peril. At one point, Tack skids to a stop against an intricately spiraled and whorled wall, and as he revs in place trying to accumulate the necessary momentum the wall designs seem to spin in the opposite direction, impeding his progress — a simple sequence of only a few seconds but you can imagine the time and effort that was spent on realizing the gag.

As for the War Machine: one thinks of Griffith’s Intolerance, and of the months and money (not to mention manpower) poured on a single shot, of a gargantuan victory celebration in Babylon, while the camera swoops down past carved elephants and half-naked dancing girls and distant crowds waving from dizzying precipices. In Williams’s film, it’s as if the city of Babylon were crammed into a compact case squatting in front of a million-man army, and began unfolding in all its terrible manifold-spiked splendor.

In the face of such power, one may be tempted to just lie down and die. Tack does the opposite: he thinks about it (nail turning slowly in his mouth), and realizing the pun inside a prophecy told about him, attacks.

What more can I say? Mutilation scars and all, The Thief and the Cobbler is one of the greatest animated films I’ve ever seen.

Black River acquires stake in AgriNurture

A SINGAPORE-BASED fund bought P682.1 million worth of shares in AgriNurture, Inc. (ANI), following the exit of another investor in the company.

In a disclosure to the stock exchange, the listed agribusiness firm said Vikings Asia Agri Ventures BV has sold 50 million ANI shares at a price of P13.642 apiece through a block sale on Thursday.

The shares were then acquired by Singapore-based fund Black River, a wholly-owned unit of Black River Capital Partners Fund (Food) LP.

“It’s a boost of confidence,” ANI Chairman, President and Chief Executive Officer Antonio L. Tiu said in a statement.

Black River Capital is a unit of US-based asset management firm Black River Asset Management LLC, which is a food-focused fund. The same company acquired a 28.11% stake in ANI in 2012 for $30.45 million, but later on divested from the firm.

ANI remains optimistic for its prospects in the second half of the year, banking on the approval of the Rice Liberalization Law to allow it to import rice. It also looks to increase its sales volume of banana, mango, and beverage products.

The company’s net income attributable to the parent grew 255% to P32.28 million in the first half of 2019, as revenues also climbed 184% to P2.4 billion.

Shares in ANI rose 3.76% or 54 centavos to close at P14.90 each at the stock exchange on Thursday. — Arra B. Francia

Indonesia slashes interest rates to support growth

CENTRAL BANK OF INDONESIA in Jakarta — WIKIPEDIA

INDONESIA cut interest rates for a second straight month to spur an economy facing increasing risks from a global slowdown and intensifying trade war.

Bank Indonesia (BI) lowered its seven-day reverse repurchase rate by 25 basis points to 5.5% on Thursday, a move predicted by only 13 of the 34 economists surveyed by Bloomberg. The majority expected the bank to keep policy unchanged after it lowered rates for the first time in almost two years in July.

Governor Perry Warjiyo said the rate cut was consistent with the bank’s low inflation forecast and serves as a “preemptive measure to push economic growth momentum in the future.” The move also retains the attractive yield on domestic assets, he said.

Indonesia is using a mix of monetary and fiscal policy to stimulate Southeast Asia’s biggest economy after growth slowed to a two-year low in the second quarter. Low inflation and the Federal Reserve’s dovish policy outlook is giving Bank Indonesia room to reverse some of last year’s rate hikes.

“Indonesia is lucky with its continuing economic growth momentum, but we must take anticipative, preemptive steps in facing the risks of a slowing global economy,” Warjiyo said.

Central banks in emerging markets like India, Brazil and Russia — and, closer to home, Thailand, Malaysia and the Philippines — have all cut rates this year to reignite growth.

The Jakarta Composite Index rallied immediately after the rate cut, but was down 0.1% as of 2:53 p.m. local time.

Warjiyo said the central bank will “continue its accommodative policy mix.” It sees growth for this year below the government’s projection of 5.2%, while inflation will probably come in below the midpoint of the 2.5% to 4.5% target band.

“It seems that growth worries have taken on a greater urgency,” said Eugene Leow, a fixed income strategist at DBS Group Holdings Ltd. “And with many central banks across the world easing, BI probably felt comfortable enough to follow suit.”

Indonesia’s rate cut complements President Joko Widodo’s plans — outlined in his budget last week — to boost growth to 5.3% next year through record spending of $178 billion and tax incentives to businesses. The economy grew 5.05% in the second quarter, a far cry from the 7% growth the president targeted in his first term.

Most economists predicted the central bank would keep rates on hold this month given heightened market turmoil and a widening in the current account deficit. The rupiah has slumped almost 2% against the dollar in the past month, though it’s still among a handful of gainers in Asia this year.

Inflation at 3.32% in July was well within the central bank’s target band. — Bloomberg

Ryanair fails to stop UK pilots’ strike but wins case in Ireland

LISBON — An Irish court granted an injunction on Wednesday to prevent Ryanair’s Dublin-based pilots from going on strike, but the airline suffered a setback hours later when a London court rejected a similar application for its British pilots.

Ryanair is battling to prevent employees from taking industrial action. Last year strikes over pay and conditions forced the Irish airline to cancel hundreds of flights.

Ryanair welcomed the Irish High Court ruling, saying all flights scheduled to depart on Aug. 22 and 23 from Irish airports would operate as normal.

But the airline said it regretted the decision by under 30% of its UK pilots to strike on Thursday and Friday in “support of unreasonable pay demands.”

After the High Court decided against granting Ryanair an injunction to prevent the strike, the British pilots’ union BALPA offered to call off the action if the airline agreed to a new framework of talks.

However, Ryanair turned down the offer and the British union said the strike will go ahead.

“Ryanair foolishly tried to stop our strike in the High Court today and failed. Despite that, we extended an olive branch to Ryanair as a way of getting back around the table and calling off strikes over the next two days,” Strutton said in a statement.

Separately, a five-day strike by Ryanair’s cabin crew in Portugal is underway but disruption to passengers appeared minimal, with no canceled flights or major delays.

In a statement released on Wednesday afternoon, Ryanair said more staff than needed showed up to work at Portuguese airports on Wednesday morning and there would be no significant disruption to flights to and from the country during the rest of the day.

Portugal’s SNPVAC cabin crew trade union met with the Portuguese Minister of Infrastructure and Housing on Wednesday to discuss the labor situation, including the impact of the possible closure of Ryanair’s base in Faro.

SNPVAC president Luciana Passos said 70%-80% of crew members were currently on strike, though there were no major delays or cancellations at Lisbon, Porto and Faro airports.

“This (strike) is an attempt to once again draw attention to the problems faced by Ryanair crew members, to the way Ryanair operates in Portugal and the total impunity with which Ryanair operates,” Passos said.

Ryanair’s management says significant progress has been made since last year’s strikes, with collective labor agreements concluded with a number of pilot unions throughout Europe.

But SNPVAC said Ryanair had refused to comply with a protocol signed last November, which it said included holiday pay, 22 days of annual leave per year and full compliance with Portuguese parental law.

At the height of the summer season, Portugal’s government set out a minimum service for Ryanair and its staff to deliver, including a daily round trip between Lisbon and London.

SNPVAC said the minimum service order was “abusive” and undermined the right to strike.

Belgium’s CNE and ACV PULS unions told members on Tuesday not to comply with a Ryanair request to staff flights affected by the Portuguese action.

Spain’s STICPLA union also sent a letter to members, advising they were not obliged to “answer company calls” if they were in their rest time, on days off or on holiday.

Unions representing cabin crew in Spain said their plans for 10 days of strikes next month still stood after more than seven hours of mediated talks with the airline ended on Tuesday without agreement. — Reuters

Your Weekend Guide (August 23, 2019)

Koryolab at the CCP

ON August 24 and 25, five new choreographic pieces will be premiered in Koryolab at the CCP Studio Theater at 2 p.m. and 6 p.m. The five new works were created by five dynamic young choreographers mentored by Gawad CCP awardee Denisa Reyes, and internationally renowned choreographer and teacher Myra Beltran. These contemporary pieces tackle memories of forgotten childhood in Sarah Samaniego’s Alala, and the unique world within the world of the malls in which we now live as shown in Mano: Fracture by Buboy Ruatico Jr. Christopher Chan’s Men-Ta-Li-Tic opens the mind to how norms hinder us from accessing truth while Buhay Pag Asa by Dingdong Selga is a painful tale of children in cramped cells. Finally, Michael Barry Que’s Suggested for you deals with the contemporary phenomenon of Instagram. Tickets are available at all TicketWorld outlets. For more information, call 832-1125 local 1409.

Dancing Lessons

TWIN Bill Theater presents Mark St. Germain’s Dancing Lessons until Aug. 24 at Power Mac Center Spotlight in Circuit Makati. Directed by Francis G. Matheu, the play follows Ever Montgomery, a young science professor with special needs who decides to take dancing lessons to get through an upcoming awards dinner he will host. However, his instructor, Senga, is recovering from an injury that may prevent her from dancing permanently. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Mabining Mandirigma, A Steampunk Musical

Monique Wilson plays the “sublime paralytic” in Mabining Mandirigma. — PHILSTAR/ GIAN CARLO VIZCARRA

TANGHALANG Pilipino restages Mabining Mandirigma, A Steampunk Musical about the life of hero and “sublime paralytic” Apolinario Mabini at the Main Theater of the Cultural Center of the Philippines until Sept. 1. The 2019 run stars Monique Wilson as Mabini. Arman Ferrer will be reprising his role as Emilio Aguinaldo, alternating with David Ezra. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Dani Girl

THE Sandbox Collective restages Michael Kooman and Christopher Dimond’s Dani Girl at the Carlos P. Romulo Auditorium, RCBC Plaza in Makati City until Sept. 1. Directed by Toff de Venecia, the musical centers on nine-year-old Dani who sets off on a quest to find her hair and figure out the answer to the question, “Why is cancer?” She journeys with fellow warrior and best friend Marty, through lightsaber duels, game shows, and blasting off to outer space. The play stars Rebecca Coates as Dani alternating with Kyle Napuli. Luigi Quesada returns as Marty, alternating with Daniel Drilon. For inquiries, call 0956-200-4909, 586-7105 or sab@thesandboxco.com.

Rak of Aegis

THE hit Pinoy jukebox musical Rak of Aegis returns to the PETA Theater Center, with ongoing performances until Sept. 29. The show features Aegis hits such as “Halik,” “Sinta,” and “Basang-Basa sa Ulan,” to tell the tale of a perennially flooded barangay. This latest production features a mix of original cast members including Aicelle Santos and Kim Molina, Isay Alvarez-Seña and Sweet Plantado-Tiongson, Robert Seña and Renz Verano, and Kakai Bautista and Neomi Gonzales. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

AirAsia’s online retail platform partners with Regent Asia

OURSHOP, the online retail platform of AirAsia group, said it has partnered with travel retail brand Regent Asia Group to allow travelers to pre-purchase and collect the items at the Ninoy Aquino International Airport (NAIA) Terminal 3.

International passengers who fly to and from the Philippines will benefit from the online travel retail partnership, enabling them to purchase a wide array of global and local brands.

The Regent Asia online store will be available on OurShop.com by early September.

“The Philippines is a hugely important market in terms of the strategic growth of OurShop, and we are thrilled that such a globally respected travel retailer such as Regent Asia have agreed to partner with us. Manila’s (NAIA 3) alone serves some 22 million guests per year, presenting what is a huge opportunity for us to expand our offering beyond just the 2 million international passengers who fly with AirAsia each year,” OurShop head of acquisition Hassan Choudhury was quoted as saying.

Regent Asia Group Chairman and Managing Director Jose Maria Esteban said the company is looking forward to providing travelers at NAIA 3 a more efficient online shopping experience.

Walking the talk

Dr. Jesus Estanislao of the Institute of Corporate Directors once graced a governance forum at the Development Bank of the Philippines (DBP) where he extolled the values of integrity, fairness and accountability in all that we do. Being a development bank, he asked DBP to remember they work not just for the themselves and the institution but for a larger community, not just for today but for the future.

The DBP Credo proclaims: “I believe the mission of DBP is to make the Filipino productive and competitive.” Dr. Estanislao, who presided over the institutional strengthening of DBP as its Chairman in the late 1980s, reminds the staff to go beyond words. What we say we must do.

To ensure order in one’s life, we have to be men and women well grounded in basic principles and with clear direction. We cannot be without a framework. Progress is not achieved by people who ask and demand from others without first asking of themselves on how they can contribute positively to the general welfare. Basic in this framework is integrity which serves as one’s passport and competence which represents one’s tool.

In short, we must walk the talk. A person’s own talk represents what one believes in, and this should translate to what one actually does in life and in work. It means backing up or proving what’s said with action and practicing what’s preached.

In my book, walking the talk is leading with integrity. Integrity involves character, honesty, transparency and accountable leadership. Individuals with integrity in the workplace not only understand what is right from what is wrong, but they practice it in day-to-day and strategic decision making. In a business environment characterized by integrity, an atmosphere of trust develops which sets the foundation for teamwork and professionalism in business relations.

It is unfortunate that the workplace is littered with people who simply talk the talk. They are good at picking the right words, even delivering sermons about certain desirable behavior. They talk like they are saints, but their actions reveal their worth. They make all kinds of demands from others, but they themselves are lacking in many ways as they get entangled in conflict of interest positions. At the end of the day, these people are only good at being phony and appearing in a way that impress people. But they actually behave otherwise. Talking the talk is about being good at the art of pretext. I once read a comment in Quora which quotes from a Hollywood cliché: “Sincerity is the key to success in Hollywood. Once you can fake that, you can get anything.”

Integrity is critical to fostering a positive workplace culture. It leads to good decision making and correct actions and implementations. The alternative is irresponsible behavior and distrust which makes the work environment uncomfortable and tense. A leader with integrity will gain the trust and respect of the organization. An organization headed by trusted leaders, whether in the board level, in management or in the various units in the structure, will ultimately perform better.

Recently, Manila Mayor Isko Moreno launched an “anti-epal” policy that explicitly prevents politicians’ names and faces from adorning government initiatives. However when Eastern Communications launched the free wi-fi kiosks in Manila, they named it “ISKOnek.” The move drew a lot of flak in social media, and true to form, Mayor Isko ordered the change to “MNLkonek.” By his immediate response, the new mayor showed he could walk the talk.

In a previous column I entitled “Integrity is Forever,” I quoted from Amy Rees Anderson who wrote: “integrity means doing the right things at all times and in all circumstances, whether or not anyone is watching. It takes having the courage to do the right thing, no matter what the consequences will be.” She advised that if you want to build a reputation of a person of integrity, then surround yourself with people of integrity.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

 

Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

What to see this week

5 films to see on the week of August 23 — August 29, 2019

Buckout Road

A SCENE from Buckout Road.

THREE college students travel to the famed and haunted Buckout Road to debunk urban legends and myths. However, they come to realize that the old stories may be real. Directed by Matthew Currie Holmes, it stars Evan Ross, Dominique Provost-Chalkley, and Danny Glover.

MTRCB Rating: R-16

Stuber

UBER driver Stu picks up his policeman passenger who is on the lookout for a brutal killer. Stu is then thrust into an ordeal of unexpected events as he holds onto his life and five-star rating. Directed by Michael Dowse, it stars Dave Bautista, Kumail Nanjiani, and Mira Sorvino. The Atlantic’s David Sims writes, “For years, this kind of film was practically a monthly offering from major studios. Now, though, the small and low-stakes Stuber feels like a welcome departure from the mega-budgeted epics that crowd theaters every summer. That’s not to say it’s good, exactly, but it’s short (a breathtaking 93 minutes!), packed with salty one-liners, grounded by two lovable leads, and comfortingly predictable — the kind of routine project that at one time would have dominated Blockbuster shelves for months.”

MTRCB Rating: R-13

The Angry Birds Movie 2

THE flightless angry birds and scheming green pigs forge a truce on their feud and become allies for once as they save their endangered homes from outsiders. Directed by Thurop Van Orman, it features the voices of Jason Sudeikis, Josh Gad, and Bill Hader. www.rogerebert.com ‘s Matt Zoller Seitz writes, “This sequel is more shenanigans-based. The plot eventually leads to a combination heist movie/band of heroes on a military mission storyline, which is more conducive to kid-oriented slapstick and lets the project feel less ungainly and lighter on its feet (although there’s still a fair amount of sexual humor that might be considered inappropriate, were there a chance small children would get it).”

MTRCB Rating: PG

Angel Has Fallen

AFTER an assassination attempt on the U.S. president, Secret Service Agent Mike Banning is falsely accused and taken into custody. After escaping from capture, he evades his agency and outsmarts the FBI to find the real threat to the president. Directed by Ric Roman Waugh, it stars Gerard Butler, Morgan Freeman, and Jada Smith.

MTRCB Rating: PG

Just a Stranger

MAE is a woman in her mid-30s who is married to a wealthy businessman. She goes on a vacation to Lisbon, Portugal, and meets 19-year-old Jericho, a son of a Philippine ambassador. The two enter an affair and it continues when they both meet in the Philippines after Mae’s vacation. Directed by Jason Paul Laxamana, it stars Anne Curtis, Marco Gumabao, Isay Alvarez, Robert Seña, Edu Manzano, and Jas Rodriguez.

MTRCB Rating: R-16

What’s the best employee feedback mechanism?

We work for a medium-sized corporation. You have said that exit interviews are futile and reactive. If that’s the case, then what would you recommend us given the fact that there are so many communication programs that could give the best employee feedback? — White Rose.

A chubby fourth-grade schoolboy was experiencing his first summer at a rural camp. After two days, he sent his mother a brief text message to express his dissatisfaction with the organizer: “Dear Mom, please send me lots of food here. All we get here is breakfast, lunch, and dinner.”

When you’re searching and trying to put up the best employee communication program from many choices around us, sometimes, the process can leave you paralyzed by over-analysis. After all, it’s getting harder to choose from many options.

But you don’t have to copy from others without knowing their context and applicability to your particular situation. You need to be more discerning as you did when you read about my post that exit interviews are ineffective, futile, and reactive and one bad example of securing employee feedback.

Really, exit interviews cannot be relied upon by management as a feedback mechanism because many resigned employees would not want to rock the boat, if not burn the bridge. They will not tell you the real reason or reasons why they’re leaving the organization as they’re more interested to secure their clearance, certificate of employment and terminal pay at the soonest possible time.

Also, resigned employees would want to play it safe because they don’t want their past employer to badmouth them to their prospective bosses. Another clear reason against exit interviews is the likelihood that resigned employees may soon change their minds should their new employment elsewhere proved to be less desirable.

Sure, you can still conduct exit interviews, but be prepared to hear nothing but motherhood statements from resigned employees. If ever, you can only hear from a few disgruntled people who may spill the beans against a certain management policy or the style of their boss as compared to the majority opinion.

That brings us to your question — what’s the best employee communication feedback mechanism? In general, I can tell you only of two schemes:

One, the annual anonymous employee morale survey. Also known as “satisfaction” survey but with the same clear objective. Management would want to hear from the great majority of people who are required to give their honest opinion on many categories that include working conditions, line supervision, compensation package, career opportunities, and many more.

To be more specific about those categories, I am recommending here the Gallup Q12 Employee Engagement Questionnaire: Do you know what is expected of you at work? Do you have the materials and equipment to do your work right? At work, do you have the opportunity to do what you do best every day? In the last seven days, have you received recognition or praise for doing good work?

Does your supervisor, or someone at work, seem to care about you as a person? Is there someone at work who encourages your development? At work, do your opinions seem to count? Does the mission/purpose of your company make you feel your job is important? Are your associates committed to doing quality work? Do you have a best friend at work? In the last six months, has someone at work talked to you about your progress? In the last year, have you had opportunities to learn and grow?

To secure accurate and truthful opinions from respondents, it is indispensable that your management ensure the confidentiality of the result, by allowing anonymous answers, except for one’s department or unit. This allows top management to focus their attention on where the problem lies.

Last, the one-on-one, face-to-face “stay” interviews. This is the remedy to the reactive and futile “exit” interview. I’m using the term “stay” not necessarily to convince people about lifetime employment but for you to feel the pulse of individual employees as opposed to the morale survey where majority of employees are expected to participate.

There’s no such thing as a solution that fits all situations. People managers must carefully assess the individual aspirations of their workers that may be different from the majority. People differ in terms of their career goals, educational orientation, marital status and pet peeves.

In conducting “stay” interviews with employees within your department, you may have to consider some of the following generic conversation starters: What is your plan for the future? How can I make your job meaningful for you? How can I help you succeed with your career plans? How would you like the idea of being given autonomy in doing your job? How would you like to be treated fairly in this organization? What do you like best about my management style? What do you like the least?

You might hear many possible likes and dislikes, even if you think you’ve done your best for them under the circumstances and given the limitations of the organization. Some people have peculiar quirks about certain aspects of their work. Therefore, recognizing these likes and dislikes can go a long way toward making the job of proactively communicating with people easier to do.

ELBONOMICS: The best employee feedback is often left unsaid.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

How PSEi member stocks performed — August 22, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, August 22, 2019.

 

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