Auction to raise f unds for sick children in PGH

July 10, 2019 | 12:02 am

ON JULY 20, Gavel&Block, a subsidiary brand of Salcedo Auctions that features both established artists and emerging talent, will mount a benefit auction in partnership with the IWantToShare Foundation, an organization which works with the Philippine General Hospital (PGH).

The benefit auction is an annual event established by Salcedo Auctions in 2017 to raise funds and bring awareness to chosen organizations that make a civic impact.

Since 2016, the IWantToShare Foundation has worked with the Pediatric Hematology-Oncology Department of the PGH to fund the medical needs of children with cancer.

“This auction hopes to provide the means to raise both funds and awareness for a most worthy cause, and also to remind collectors of the transformative and life changing powers of the arts,” Richie Lerma, director of Salcedo Auctions, was quoted as saying in a press release.

A special preview for the auction pieces will be held on July 13 at Salcedo Auctions’s new headquarters at NEX Tower, 6786 Ayala Ave., Makati. Aside from seeing the pieces on offer, guests will be able to meet with the child beneficiaries through a specially formatted art therapy session and program.

Starting July 14 until the auction on July 20 at 2 p.m., works by contemporary and Philippine masters, as well as fine jewelry and watches, will be on display. These include pieces by National Artists Fernando Zobel, Benedicto “BenCab” Cabrera, Arturo Luz, Cesar Legaspi, and Vicente Manansala, and works by Juvenal Sanso and Eduardo Castrillo, plus contemporary works from Winner Jumalon, Jigger Cruz, Daniel dela Cruz, Ramon Orlina, Justin Nuyda, and Emmanuel Garibay, to name a few.

Australian banks win concession on capital

July 10, 2019 | 12:01 am

AUSTRALIA’S banking regulator has softened its capital buffer requirement on the nation’s largest banks after they argued that there wasn’t sufficient market capacity available to raise the necessary funds.

The so-called Big Four banks will need to lift their total capital by three percentage points of risk-weighted assets by January 2024, less than an initial target of four to five percentage points, the Australian Prudential Regulation Authority (APRA) said in a statement on Tuesday. The higher target remains the longer-term goal once APRA has considered ways to boost the pool of available capital.

APRA proposed changes to the country’s capital adequacy framework last November to better ensure lenders could be wound-up in an orderly fashion in the event of failure.

Bank regulators around the world are taking steps to boost the loss-absorbing capacity of systemically important banks in a bid to safeguard the financial system in the event of another crisis. APRA is adopting a simpler approach to other jurisdictions, allowing banks to issue Tier-2 capital that converts to ordinary shares or is written off at the point of non-viability.

The softening of the additional capital buffers comes after the banks raised concerns the market wasn’t able to absorb the extra Tier-2 capital issuance and had the potential to excessively increase funding costs as they battle declining profitability. The regulator estimates the extra A$50 billion ($35 billion) the major banks will need to raise will lift their overall funding costs by less than five basis points.

“Although APRA’s proposed response may increase funding costs for Tier 2 instruments issued by major banks, overall funding cost increases can be expected to remain small,” APRA Deputy Chairman John Lonsdale said. “Increasing total capital requirements by three percentage points by 2024, instead of the four to five originally proposed, will be easier for the market to absorb and reduce the risk of unintended market consequences.” — Bloomberg

Arts & Culture (07/10/19)

July 10, 2019 | 12:01 am

Sophia Chizuco at Globe

FOR NEW YORK-based Japanese artist Sophia Chizuco, “the circle is the most peaceful shape.” Thus her new exhibit at the Globe Art Gallery, features works that are filled with circles. Dreamscapes by Sophia Chizuco is organized by Hiraya Gallery in partnership with Globe Art Gallery. The opening reception will be on July 11, and will run until July 30, at the Globe Tower, 32^nd St. corner 7^th Ave., Bonifacio Global City, Taguig.

Jonathan Ching at Silverlens

SILVERLENS presents They Might Be Giants, an exhibition of six new large-scale paintings by Jonathan Ching. His third exhibition with the gallery, the elements seen in the streets of Manila where Ching grew up are the starting point of this suite of paintings, with the eponymous piece They Might Be Giants as one of the largest works the artist has made to date. Previous exhibitions in Silverlens were Sputnik Dreams (2013) and elsewhere (2015). The exhibit opens on July 13. Also opening that day is Saturation Imbalance, an exhibit of works by Luis Lorenzana. Both exhibits run until Aug. 10 at Silverlens, 2263 Don Chino Roces Ave. Ext., Makati City.

Gov’t infrastructure spending declines in first five months after budget delay, despite recovery in May

July 10, 2019 | 12:00 am

How PSEi member stocks performed — July 9, 2019

July 10, 2019 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 9, 2019.

CoA finds San Juan business tax undercollection of P736-M

July 9, 2019 | 10:04 pm

THE Commission on Audit (CoA) said San Juan City failed to inspect the books of eight top taxpayers in 2017 and 2018, resulting in the undercollection of business taxes worth about P736 million.

According to CoA’s 2018 audit report, the eight taxpayers were identified as Puregold Price Club, Inc.; Ortigas & Co. LP; Motor Image Pilipinas, Inc.; Motor Image Manila, Inc., Techtron Systems Corp.; Colinas Verdes Hospital Managers Corp.; Unimart, Inc.; and Integrated Computer Systems, Inc.

“The City could have collected more business tax had the City Treasury Department (CTD) prioritized conducting examination of books of account of those large businesses,” CoA said.

CoA added that a CTD official cited difficulties in obtaining audited financial statements, “especially of those large business taxpayers, in the ‘I View’ Program of the SEC (Securities and Exchange Commission).”

It added that the city was only able to inspect accounts of “mid-range business taxpayers.”

CoA recommended that the city’s treasury department seek assistance from the SEC and Bureau of Internal Revenue in gathering financial information to determine gross sales levels being declared by business owners.

In the report, CoA noted that the city treasurer said during the exit conference that the CTD examination team has gained access to the SEC I-View facility, but “the data available therein are those covering (calendar year) 2017 and prior years only.” — Vince Angelo C. Ferreras

Monetary Board 2018 foreign loan approvals up 111% at 7.3B

July 9, 2019 | 10:03 pm

THE Bangko Sentral ng Pilipinas (BSP)’ Monetary Board approved a total of $7.355 billion worth of public sector loans to fund development projects in 2018, up 111% from a year earlier, the central bank said Tuesday.

“These public sector borrowings will fund projects on transport connectivity (roads, railways, port and airport infrastructure), irrigation and agriculture development, flood management, and the reconstruction and development of Marawi City,” the BSP said in a statement.

The public sector loans included $3.602 billion worth of bonds, $2.853 billion for 12 projects and $900 million for three programs.

According to BSP, out of the total approved public sector loans for 2018, 18% or $1.36 billion will go to five infrastructure projects under the Build, Build, Build Program — the Metro Manila Subway Project Phase 1 ($941.92 million), Chico River Pump Irrigation Project ($62.09 million), New Cebu International Container Port Project ($172.64 million), New Bohol Airport Construction and Sustainable Environment Protection Project Phase 2 ($39.43 million, and the Cavite Industrial Area Flood Risk Management Project ($143.53 million).

“While public sector loans increased year-on-year, the country’s external debt position remains at prudent levels,” the central bank said.

The BSP noted that outstanding foreign debt stood at $80.4 billion at the end of March, an increase of 1.9% from the previous quarter.

“Despite the rise in external debt, the country’s debt service ratio (DSR) has consistently remained at single-digit levels,” the BSP said, noting that DSR stood at 5.1% in the first quarter, well below the international benchmark of 20-25%.

The ratio measures the adequacy of foreign exchange earnings to meet maturing obligations.

Earlier, the BSP said that the increase in borrowing from overseas was mainly due to the national government’s raising of $1.5 billion from global bonds issues with net availments amounting to $1.8 billion to fund general financing requirements and positive audit adjustments, tempered by the increase in residents’ investments in Philippine debt paper including government bonds issued overseas.

According to the BSP, borrowing from the government amounted to $40.2 billion, up 1.26% from the previous quarter, while external debt by the private sector totaled $40.3 billion, up 2.5% from a quarter earlier.

Major creditors were Japan, which accounted for $14.4 billion; the US with $3.7 billion; the Netherlands with $3.7 billion; and the UK with $3.4 billion.

The BSP also said that the external debt ratio as a proportion of gross national income rose to 20% in the first quarter from 19.9% a quarter earlier.

“The ratio indicates the country’s sustained strong position to service foreign borrowings in the medium to long-term,” the BSP said.

Section 20, Article VII of the 1987 Constitution requires that all foreign loans to be contracted or guaranteed by the government obtain prior approval from the Monetary Board.

All foreign borrowing proposals by the national government, government agencies, and government financial institutions should also be submitted for approval-in-principle by the Monetary Board before actual negotiations start, according to Letter of Instruction No. 158 dated Jan. 21, 1974. — Reicelene Joy N. Ignacio

Health dep’t to require FDA licensing for e-cigarette industry

July 9, 2019 | 10:03 pm

The Department of Health’s Administrative Order 2019-0007 will require a license from the Food and Drug Administration (FDA) to participate in the business. — *BW FILE PHOTO*

THE Department of Health (DoH) said it will require licensing for all makers, sellers and distributors of e-cigarettes and vaporizers (vapes) under the new guidelines covering the sector.

Published Tuesday, DoH Administrative Order (AO) 2019-0007 will require a license from the Food and Drug Administration (FDA) to participate in the business.

The AO calls the sector the Electronic Nicotine and Non-nicotine Delivery Systems (ENDS/ENNDS) industry.

“All establishments engaged in the manufacture, distribution, importation, exportation, sale including online sale, offering for sale, and transfer of ENDS/ENNDS products shall first secure a License to Operate (LTO),” according to the AO.

The AO, signed by Health Secretary Francisco T. Duque III on June 14, also gave the FDA the authority to inspect establishments before and after the issuance of the license.

DoH also added that licensed establishments can subsequently apply for “a product marketing authorization, such as Certificate of Product Registration (CPR) or FDA Electronic Regulation Number (FERN).”

Securing marketing authorizations is also needed before an establishment can manufacture, distribute, import, and export ENDS/ENNDS products.

The FDA said it hopes to ban refills formulated to appeal to young users and will require tamper-resistant packaging and health warnings for refills and devices.

Users are also prohibited from vaping in public, which is allowed only in designated vaping areas.

Trade and Industry Secretary Ramon M. Lopez meanwhile called for more consultation with the industry, which he said has the potential to generate jobs.

“It’s a potential industry that we can consider,” he said, adding that the Department of Trade and Industry (DTI) is interested to hear out the concerns of the sector.

“We are asking (the DoH and FDA to) conduct consultations para ma-address nila (so they can address) the needs of stakeholders,” he said, adding that he has received position papers from tobacco and e-cigarette groups regarding this matter.

“But we are pro health,” Mr. Lopez added, adding: “The industry is a job generator but we are considering (whether or not) if it is a healthy industry.” — Gillian M. Cortez

ERC halves caseload of power co-ops late in paying fees

July 9, 2019 | 10:02 pm

THE Energy Regulatory Commission (ERC) has closed more than two dozen pending cases against electric cooperatives for late or non-payment of supervision and regulation fees.

The commission’s caseload of such violations has thereby been reduced by half.

The ERC’s Item IV of Resolution No. 21, Series of 2007, calls for the payment of supervision and regulation fees by cooperatives.

The fees represent the annual reimbursement of the expenses incurred by the ERC in the supervision of electric utilities, transmission companies and/or in the regulation or fixing of their rates.

“The said fees shall be paid on or before September 30^th of each year with a penalty of fifty per centum in cases of delinquency. Provided, further, that if the fees or any balance thereof are not paid within sixty days from the said date, the penalty shall be increased one per centum for each month of delinquency thereafter,” Item IV states.

The issue for resolution by the commission involve whether or not the electric utilities should be held administratively liable under the guidelines to govern the imposition of administrative sanctions in the form of fines and penalties pursuant to Section 46 of Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), as amended.

Also at issue is whether criminal action should be instituted against the utilities’ directors and officers for the non-payment of penalties.

In many of the cases, ERC records showed the utilities paid their remaining penalties before the issuance of their show-cause orders.

In some, the ERC noted that while strict application of its rule holds an electric cooperative administratively liable, the commission, employing its full discretion, found it just and fair to exercise leniency in its judgment.

For instance, compliance within a month from receipt of the show-cause order or merely two days from the lapse of the 15-day period to explain, was taken to mean that the electric utility did not intend to defy the rules and regulations of the ERC.

In some cases, the regulator warned that similar acts in the future “shall be dealt with more severely.”

The termination of the cases was signed by Agnes VST Devanadera, ERC chairperson and chief executive officer. — Victor V. Saulon

Philippines wins seat in UN marine science commission

July 9, 2019 | 10:02 pm

THE PHILIPPINES has been re-appointed to the executive council of a United Nations organization for marine science, the Department of Foreign Affairs (DFA) said.

The Philippines secured by acclamation a seat for a third year in the 40-member International Oceanographic Commission (IOC) Executive Council, which is under the UN Education, Scientific and Cultural Organization (UNESCO).

“As a maritime and archipelagic state located at the center of the world’s marine biodiversity, the Philippines shall continue to contribute to the Commission’s unique role in fostering international cooperation in ocean science and in achieving the 2030 Sustainable Development Agenda, particularly Goal 14 on Life Below Water,” the DFA said in a statement Tuesday.

Goal 14 of the SDG is geared towards the conservation and sustainable use of the oceans, seas and other marine resources.

The term runs to 2021. The election of the Council’s new officers was held on July 3 at the 30^th session of the IOC Assembly at UNESCO Headquarters in Paris.

“Its purpose is to promote international cooperation and to coordinate programmes in research, services and capacity-building, in order to learn more about the nature and resources of the ocean and coastal areas and to apply that knowledge for the improvement of management, sustainable development, the protection of the marine environment, and the decision-making processes of its Member States,” the DFA also said.

The IOC elected as its chair Argentina’s Ariel Hernán Troisi and as its Vice Chairpersons Monika Breuch-Moritz (Germany), Alexander Frolov (Russian Federation), Frederico Antonio Saraiva Nogueira (Brazil), Satheesh Chandra Shenoi (India), and Karim Hilmi (Morocco).

UNESCO, in a statement on July 3 said the Council meets every year to review issues and items from on-going work plans as well as prepare for the IOC Assembly.

Countries that also won a seat in the Council include Canada, France, Greece, Italy, Portugal, Spain, Sweden, Turkey, and the UK. — Charmaine A. Tadalan

BoI sees P414M worth of investment from Cotabato chicken contract-growing deals

July 9, 2019 | 10:01 pm

THE Board of Investments (BoI) said it expects nine procurement tie-ups to generate P414 million in investment after San Miguel Foods, Inc. (SMFI) participated in a business matching exercise in Cotabato Province.

In a statement Tuesday, the BoI said the Procurement Matching Activity and Financing Forum organized in Kidapawan City, Cotabato in May generated opportunities for micro, small and medium enterprise (MSME) poultry raisers to collaborate with SMFI on technology upgrades, marketing and financing.

“During the matching session, nine participants agreed to partner with SMFI. Among the nine, four individuals who are already into poultry growing have expressed their intention to upgrade their poultry facilities. Five other individuals intend to venture into new poultry projects,” it said.

The BoI said SMFI is looking for more partners for its poultry business by tapping cooperatives and overseas Filipino workers, aside from MSMEs, for its “growership program.”

The growership program requires partners to provide SMFI with land, buildings, equipment, water and electricity, security, labor, and farm management while the company provides day-old chicks, feed, vaccines, medicine, technical assistance, laboratory services and payment schemes.

“By partnering with BoI and tapping the MSMEs, the procurement process could ramp up the SMFI dressing plant requirements and improve its efficiency utilization. Meanwhile, the Development Bank of the Philippines (DBP) has also committed to back the financing needs of the MSMEs,” it said.

SMFI is hoping to tap contract growers for its P2.2-billion integrated feed mill plant in Sta. Cruz, Davao del Sur and P1.3-billion dressing plant, which is projected to require around 40,000 chickens per day. — Denise A. Valdez

TESDA, DepEd to harmonize policy for Senior High School technical-vocational program

July 9, 2019 | 10:00 pm

THE Technical Education and Skills Development Authority (TESDA) said it has signed an agreement with the Department of Education (DepEd) to harmonize programs and standards for the technical-vocational education and training program of K-to-12 basic education system.

TESDA and DepEd signed a Memorandum of Understanding (MoU) which will establish a Joint Working Group to ensure that TVET policy is harmonized.

“TESDA and DepEd have assembled a Joint Working Group on Technical-Vocational Education and Training (TVET), comprising five members each from both parties, who will be primarily in charge of the harmonization and complementarity of strategies, policies and programs, consistency and quality assurance of Training Regulations (TRs) and standards, and discussion and resolution of concerns as may be raised by either party concerning TVET,” TESDA said in a statement Tuesday.

TESDA Director-General Isidro S. Lapeña said in a statement that the partnership with the DepEd to strengthen TVET will empower Senior High School (SHS) students in the Technical-Vocational-Livelihood (TVL) track.

“We look forward to working with the Department of Education in building up the TVL track in senior high school from this year onward. We hope that this continuing partnership will result in positive outcomes and will benefit also the future generations of SHS students,” he said.

The group will also be tasked to produce research and data relevant to TVET. — Gillian M. Cortez