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Annan lashed out at state of global leadership before death

In this file photo taken on December 6, 2007, former United Nations Secretary-General and president of the Global Humanitarian Forum, Kofi Annan gestures during a press conference in Geneva.

Paris — Former UN chief Kofi Annan, who died on Saturday, lashed out at the state of global leadership in an exclusive interview with AFP last year, urging more cooperation to deal with terrorism, migration and climate change.
“Honestly speaking, we are in a mess,” the Nobel peace laureate said on December 12 ahead of a major climate conference in Paris.
“In the past when we went through this sort of crisis, you had leaders who had the courage and the vision to want to take action, to understand that they needed to work with others.”
Speaking two years to the day after the Paris climate deal was agreed — and following President Donald Trump’s announcement that the United States would leave the pact — Annan remembered “the enthusiasm, the excitement and the energy that was brought to bear” in 2015.
“When you walk away from a conference like this, you expect people to go away fully determined to implement, to continue and move,” he said.
“But that hasn’t happened, I think. We’ve slackened a bit… We haven’t followed through.”
“We must also remember that only promises that are kept are promises which matter.”
“Today, leaders are going in the wrong direction,” Annan said. “Leaders are withdrawing.”
He expressed particular concern over escalating tensions with North Korea, warning: “One miscalculation, one mistake and we are all victims”.
“It may not be a deliberate decision to start a nuclear war,” he added, adding that inflammatory rhetoric — without mentioning Trump or North Korean leader Kim Jong Un by name — was not helping.
Annan spoke to AFP as part of The Elders group of senior statesmen and women.
There was an outpouring of grief-stricken tributes on Saturday from leaders around the world for Annan after his foundation announced he died at the age 80 after a short illness. — AFP

Kofi Annan: the UN’s ‘rock star’ secretary-general

United Nations — Kofi Annan, who died Saturday at the age of 80, led the United Nations through the divisive years of the Iraq war and the trauma of the September 11, 2001 attacks.
The first secretary-general from sub-Saharan Africa, Ghanaian-born Annan was credited for raising the UN’s profile during his two-term tenure, from January 1997 to December 2006.
The charismatic, quiet-spoken career diplomat will be remembered as the United Nations’ star secretary-general — and arguably the world body’s most popular leader.
But, as peacekeeping chief, two of the UN’s darkest chapters — the Rwandan genocide and the Bosnian war — happened on his watch.
“I have sought to place human beings at the center of everything we do — from conflict prevention, to development, to human rights,” Annan said in his 2001 speech after accepting the Nobel Peace Prize.
At the time, as the world was reeling from the September 11 attacks, Annan and the organization were jointly given the honor “for their work for a better organized and more peaceful world.”
Promoted from within
Annan — the seventh secretary-general — devoted four decades of his working life to the United Nations and was the first chief to rise from within the organization’s ranks.
After heading up UN human resources and then its budget office, he was appointed peacekeeping chief in 1993, a post he held until he was catapulted to the top UN job four years later.
In recent years, Annan had returned to the diplomatic stage to lead an advisory commission in Myanmar on the crisis in Rakhine state.
He had encouraged the government to grant citizenship to the Muslim Rohingya. More than 700,000 Rohingya were driven out of Rakhine in an army campaign last year.
He also set up a foundation devoted to conflict resolution and joined the Elders group of statesmen, which regularly speaks out on global issues.
UN failures
In his autobiography “Interventions: A Life in War and Peace,” Annan wrote that he envisioned the United Nations as serving “not only states but also peoples” as “the forum where governments are held accountable for their behavior toward their own citizens.”
The UN’s failures to live up to that promise in Rwanda and Bosnia would shape Annan’s tenure as secretary-general, he wrote.
The blue helmets pulled out of Rwanda in 1994 during the bloody chaos and a year later, the world body failed to protect its own “safe area” of Srebrenica when Bosnian Serb forces rounded up and killed thousands of Muslim men and boys.
Those debacles “left me with what would become my greatest challenge as secretary-general: creating a new understanding of the legitimacy, and necessity, of intervention in the face of gross violations of human rights,” Annan wrote.
‘Diplomatic rock star’
While Rwanda and Srebrenica cast a pall over his tenure as peacekeeping chief, Annan transitioned into his new role as UN chief with ease.
He quickly became a familiar face on television, his name made newspaper headlines, and he was a sought-after guest at gala events and New York dinner parties.
He was often described as a “diplomatic rock star.”
Annan owed his appointment to the United States, which had vetoed a second term for Egypt’s Boutros Boutros-Ghali after relations went sour, but he often proved his independence from major powers.
He annoyed the United States when he said the 2003 invasion of Iraq was “illegal” because it was not endorsed by the UN Security Council.
Annan was later accused of corruption in the Iraq oil-for-food scandal, one of the most trying times of his tenure.
Some commentators saw the 2005 investigation of Annan and his son as payback for his invasion comments.
A commission on inquiry cleared Annan of any serious wrongdoing, but found ethical and management lapses linked to his son Kojo’s ties with a Swiss firm that won lucrative contracts under the scheme.
Annan later admitted that the scandal had sorely tested his mettle not only as secretary-general, but as a father.
From Ghana to Geneva
Born in Kumasi, the capital city of Ghana’s Ashanti region, Annan was the son of an executive of a European trading company, the United Africa company, a subsidiary of the Anglo-Dutch multinational Unilever.
In his autobiography, he describes coming of age along with the independence movement in Ghana, and experiencing a “complete change in culture and society.”
He attended a Methodist-founded boarding school at the age of 13 and went to university in Kumasi before receiving a scholarship to study in the United States.
He studied economics at Macalester College in Minnesota and management at the Massachusetts Institute of Technology.
He also attended the Graduate Institute of International and Development Studies in Geneva.
In 1965, Annan married Titi Alakija, a Nigerian woman from a well-to-do family. They had a daughter, Ama, and Kojo, but the couple separated in the late 1970s.
He was married a second time in 1984 to Nane Lagergren, a Swedish lawyer at the United Nations and the niece of Raoul Wallenberg. They have a daughter, Nina.
After ending his second term as UN chief, Annan went on to take high-profile mediation roles in Kenya and in Syria.
He enjoyed some success in ending post-election turmoil in Kenya in 2007, but he resigned from a peace mission for Syria.
Annan complained that divisions among world powers at the Security Council had turned his job as Syria envoy into a “mission impossible.” — AFP

Central bank sees inflation closer to 6% this month

By Elijah Joseph C. Tubayan, Reporter
THE OVERALL RISE in prices of widely used goods can be expected to creep closer to six percent this month before peaking in September, the head of the Bangko Sentral ng Pilipinas (BSP) said in a forum on Friday.
In a panel discussion during the National Press Club economic forum in Manila, BSP Governor Nestor A. Espenilla, Jr. said that, based on monetary authorities’ initial assessment, “the August inflation number may actually be higher than the July number.”
He told reporters after the forum that the BSP is “not seeing six percent” but “it might be close to the last one.”
July’s headline inflation clocked in at 5.7%, the fastest pace in at least five years, pulling the seven-month average to 4.5% against the BSP’s 2-4% target range and upgraded 4.9% forecast for full-year 2018.
Mr. Espenilla said “the peak will probably be hit in August or September before it starts coming down,” hinting that anything could happen in the next rate-setting meeting on Sept. 27.
“You don’t know the peak until you see the turn. We have to watch carefully the developments. We have to gather more information,” he replied when asked about how this latest inflation expectation could impact the BSP’s policy decision next month.
“We aren’t necessarily reacting to the now. We are reacting to the future, so we need to understand how the broader public processes the information and we have to look at what’s happening outside as well.”
The central bank fired off its third consecutive interest rate hike last week — amounting to 50 basis points in one volley — following 25 bp hikes each in May and June after nearly four years of policy stability.
In its latest policy decision, the BSP’s Monetary Board cited the need for “stronger monetary action… to rein in inflation expectations and prevent sustained supply-side price pressures from driving further second-round effects” in the wider economy.
Mr. Espenilla on Friday said Turkey’s economic woes — marked by dwindling foreign exchange reserves and escalating trade tensions with the United States — “is another new element”. While that crisis is expected to directly affect European banks that have considerable exposure to Turkey’s debt, there are signs it has begun to make investors shun emerging markets as an asset class.
“What if it escalates? It can create instability of currencies and have contagion on seemingly same economies, although we strongly contend that the Philippines has very different fundamentals from that of Turkey. So it might introduce volatility in the peso,” he explained.
He said the central bank’s response may consist “not necessarily in raising interest rates, but perhaps using tactically our reserves.”
“There are so many possibilities. If you want to worry, I can assure you we have enough reasons that we can find to worry and be sleepless about it,” Mr. Espenilla said.
“But our approach is we hope for the best and we prepare for the worst. That’s why we keep the reserves, stick to our own script of running our economy well, of being able to manage our fiscal house and to be able to manage our inflation so we are not entirely dependent on what’s happening outside,” he added.
Mabuti nga na (It was good that) we raised 50 basis points. We didn’t know that Turkey was going to happen. So with 50 basis points, hindi masyadong mag-panic (we don’t really have to panic). We hope that the crisis will settle down soon enough.”

FEMSA exits PHL, sells back stake in Coca-Cola bottling operations

MEXICO’s Coca-Cola FEMSA is selling its controlling stake in its Philippine operations to the Coca-Cola Co., which will take over operations here via its Bottling Investments Group (BIG), the Coca-Cola Co. said.
Atlanta-based Coca-Cola Co. said in a statement Friday that the entry of BIG is still subject to regulatory approval.
The board of Coca-Cola FEMSA Philippines Inc.’s Mexican parent, Coca-Cola FEMSA, S.A.B. de C.V. approved the sale of its 51% stake in the Philippine unit to the Coca-Cola Co.
Mexican parent FEMSA is the world’s biggest franchise bottler of Coca-Cola trademark drinks.
It acquired 51% of Coca-Cola FEMSA Philippines, previously named Coca-Cola Bottlers Philippines, Inc. (CCBPI), in 2013 from the Coca-Cola Co. for $688.5 million in an all-cash transaction.
When it announced the deal back in December 2012, Coca-Cola FEMSA described the move as its “first acquisition beyond Latin America” and “a vote of confidence in the strength of the Philippine economy and the opportunities it provides… reinforcing its exposure to fast-growing economies”.
Mexico’s FEMSA had the option to buy the remaining 49% within seven years or sell back the 51% to the Coca-Cola Co. after six years.
“We respect Coca-Cola FEMSA’s decision, and we appreciate the progress made during their five-year tenure in the Philippines,” John Murphy, President of the Coca-Cola Co.’s Asia Pacific Group , said in the statement.
“The market is better positioned than ever before for future success, and we are confident about the potential ahead. The Coca-Cola Co. will work to ensure a smooth transition of the Philippines bottling operations to BIG, for all customers, business partners, consumers and, importantly, for all those who work in the bottling operations,” he added.
While Friday’s statement did not disclose the reason behind the development, Coca-Cola FEMSA Philippines has been struggling since last year after the government regulated imports of high fructose corn syrup (HFCS), a sweetener used by the food industry as an alternative to cane sugar.
The Sugar Regulatory Board has expressed fears that imported HFCS ingredient has been taking up a major share of the sweetener market to the detriment of cane sugar farmers.
The government, under the first package of its tax policy overhaul, also levied a P12 tax on HFCS-sweetened drinks at the start of the year, double that of beverages using sugar.
Since the new tax regime was put in place, Coca-Cola FEMSA Philippines has laid off an undisclosed number of workers and has reduced volumes of of some products
Winn Everhart, President and General Manager of the Philippines for the Coca-Cola Co., said “long-term, sustainable success is built on strong fundamentals.”
“In every market’s evolution, there will be ups and downs. We are confident both in the opportunities that we have ahead and in the plans we have in place for thePhilippines,” Mr. Everhart said.
“With BIG’s depth of experience and solid track record in Southeast Asia, we believe they will bring significant value to our business,” he added.
The Coca-Cola Co. formed BIG in 2004. With 45,000 employees around the world, BIG’s Asian operations include Nepal, Bangladesh, Vietnam, Cambodia, Brunei, Malaysia, Singapore, Myanmar, Sri Lanka and India.
“Southeast Asia is an important market for us, and we look forward to the Philippines joining our portfolio,” said Calin Dragan, President of BIG.
“We want all customers and consumers to know that we are fully committed to ensure a seamless transition with Coca-Cola FEMSA. Most importantly, we want all employees to know that we appreciate the progress they have made in moving the Philippines business forward, and we believe that this will continue to improve as part of BIG,” Mr. Dragan added. — Janina C. Lim

Bargain hunt fuels recovery

LOCAL EQUITIES rebounded on Friday, as traders hunted for bargains and as optimism returned amid eased US-China trade tensions.
The Philippine Stock Exchange index (PSEi) gained 66.16 points or 0.88% to end 7,583.52 — though down for the second straight week by 2.837% from Aug. 10 — while the broader all-share index rose by 21.29 points or 0.46% to close at 4,606.69.
FACTORS
“I think this is just bargain hunting after six days of continued profit taking…” Joylin F. Telagen, research head at the I.B. Gimenez Securities Inc., said in a mobile phone message as the PSEi recessed at noon at 7,602.83, up 85.47 points or 1.14%.
RCBC Securities, Inc. said in its Stock Market Weekend Recap that was attributed to research analyst John Paolo D. Ayson that “[t]he PSEi, along with the majority of Asian markets, rose today after US and Chinese officials agreed to talk next week in order to resolve the ongoing trade dispute.”
“Week-to-date, we saw how the global market was dragged in the ongoing Turkey financial crisis. Investor’s feared a contagion effect and rushed to safety havens,” it added in explaining the second straight weekly drop.
“This news did not help ease local investor’s sentiment with the market still digesting last week’s disappointing 2Q GDP results.”
The Philippine Statistics Authority reported on Thursday last week that gross domestic product growth eased to six percent last quarter — the slowest in three years — from 6.6% in the preceding three months and a year ago, missing market estimates and taking last semester’s pace to 6.3%, compared to the first-half 2017’s 6.6% and the government’s 7-8% target for full-year 2018.
Summit Securities, Inc. President Harry G. Liu cited the central bank’s decision to aggressively raise policy rates last week to hem in rising price pressures and efforts by the Executive and the House of Representatives to resolve their disagreement over next year’s national budget as local drivers. “All of these are being digested…” Mr. Liu said in a telephone interview, pegging initial support early next week at 7,200-7,400 and resistance at 7,600-8,000.
OVERSEAS MARKETS
Reuters reported on Friday that, overseas, Wall Street rallied on generally positive earnings and waning trade jitters, with the S&P 500 Index rising 0.79% to 2,840.69, the Dow Jones Industrial Average increasing by 1.58% to 25,558.73 and the Nasdaq Composite Index edging up 0.42% to 7,806.52.
Asia was mixed, with Japan’s Nikkei 225 and TOPIX Index rising by 0.35% to 22,270.38 and 0.62% to 1,697.53, respectively; Hong Kong’s Hang Seng Index gaining 0.42 to 27,213.41 and South Korea’s KOSPI increasing by 0.28% to 2,247.05.
On the other hand, the Jakarta Composite Index shed 0.56% to 5,783.80, the Shanghai Composite Index gave up 1.33% to 2,669.10 and the blue-chip Shanghai-Shenzhen CSI 300 dropped 1.44% to 3,229.62.
LOCAL STOCKS
Four of the six sectoral indices gained: property by 69.06 points or 1.86% to close 3,772.13, holding firms by 96.86 points or 1.31% to 7,469.33, services by 13.55 points or 0.9% to 1,512.18 and industrials by 70.68 points or 0.64% to 10,976.55.
The other two fell: financials by 26.19 points or 1.43% to 1,796.6 as well as mining & oil by 14.5 points or 0.14% to 9,886.99.
Stocks that lost narrowly edged out those that gained 98 to 91, while 58 others ended flat.
Eleven of Friday’s 20 most active stocks gained, seven lost and two others ended flat.
Those that gained included Ayala Corp., Ayala Land, Inc. and SM Prime Holdings, Inc. that gained 6.73% to P999 apiece, 2.66% to P42.50 and 1.69% to P36 each, respectively. “The three raised the PSEi by a combined 63.35 points,” RCBC Securities said in its Friday report.
Manila Electric Co., Jollibee Foods Corp. and Metropolitan Bank & Trust Co. increased by 3.36% to P363 apiece, 1.65% to P271.20 and by 1.29% to 74.75% each, respectively.
Those that lost included Bank of the Philippine Islands and BDO Unibank, Inc. that gave up 3.56% to P89.50 apiece and 2.36% to P128.10 each, respectively.
Semirara Mining and Power Corp. and Megaworld Corp. ended flat at P30 and P4.94, respectively.
Some 1.158 billion shares worth P5.542 billion changed hands on Friday, compared to Thursday’s 1.058 billion shares worth P5.399 billion.
Overseas investors remained predominantly bearish for the sixth straight day, causing net foreign sales to grow 1.88% to P900.633 million on Friday from Thursday’s P884.018 million, as total sales increased by 36.27% to P3.046 billion from P2.735 billion and total purchases rose by 16.515% to P2.145 billion from P1.841 billion. — Reicelene Joy N. Ignacio

NEDA body endorsing MRT-3 rehab deal to Duterte for approval

MRT
BW FILE PHOTO

USERS of the Metro Rail Transit Line 3 (MRT-3) can expect relatively trouble-free commuting along this railway by 2021, under the timetable of a rehabilitation project that edged closer to final approval late this week.
The National Economic and Development Authority (NEDA) said in a press statement on Friday that its Investment Coordination Committee-Cabinet Committee approved on Thursday the P22.061-billion project — financed by a loan from Japan and to be implemented by the Department of Transportation — that will restore, upgrade and assure regular maintenance of the 18-year-old railway that connects the north and south ends of Metro Manila.
TIMETABLE
“It is set to start implementation in the third quarter of 2018 and be completed in the first quarter of 2021,” the statement read.
Transportation Secretary Arthur P. Tugade said in an interview in The Chiefs aired Thursday on Cignal TV’s One News channel that he expects the deal to be signed with Sumitomo Corp. “by the end of August; if not… mid-September.”
Dokumento na lang po ang ginagawa (The contract is being finalized),” Mr. Tugade said, adding that MRT 3’s rehabilitation can be completed in “32-34 months.”
“The whole of MRT will be repaired — from coaches to the rails,” he said in a mix of Filipino and English, while NEDA’s statement said the project will increase number of train sets in operation to 18 from 15 per hour and enable them to reach a maximum speed to 60 kilometers per hour, among other performance criteria.
The project will now be taken up for approval by the NEDA Board, which is chaired by President Rodrigo R. Duterte.
The same statement quoted Socioeconomic Planning Secretary Ernesto M. Pernia, who heads NEDA as director general, as describing the project as a key solution to Metro Manila’s worsening traffic. “With the upcoming rehabilitation of the MRT 3, we expect improvements in service efficiency and security of the existing train line,” Mr. Pernia said. “Over the long term, we envision the MRT to be a very convenient and efficient mode of transportation that will encourage car owners to shift to public transportation, thereby reducing traffic congestion in Metro Manila.”
In Thursday’s meeting, the ICC Cabinet Committee also approved the request of the Department of Agriculture-Bureau of Fisheries and Aquatic Resources to cancel the €28.52-million loan from France in favor of using local funds for the Integrated Marine Environment Monitoring System-Phase 2 (PHILO II). PHILO II aims to integrate databases including fishing vessel registry, ocean and weather data, stock assessment data, as well as records on illegal, unreported and unregulated fishing. — Elijah Joseph C. Tubayan and Charmaine A. Tadalan

Flights canceled, rerouted, delayed after aircraft stalls at NAIA runway

A CHINESE passenger plane went off a runway at the Ninoy Aquino International Airport, the Philippines’ main gateway, on Thursday night amid heavy rains, causing the cancellation or delay of many flights and the airport’s overcrowding as of Friday evening, Aug. 17.
The Civil Aviation Authority of the Philippines (CAAP) announced that said runway 06/24 was closed until 4:00 p.m. of Friday “due to the disabled aircraft.” This was later extended to 7:00 p.m., then extended anew, as of this reporting, to 12 noon of Saturday, Aug. 18.
According to an update by CAAP on Friday, the plane, a Xiamen Airlines Boeing B737 type aircraft with flight MF8667, landed at the runway at 11:55 p.m. on Aug. 16 and “encountered runway excursion after landing.”
All 157 passengers and 8 crew were safe and was attended to by airport staff at NAIA’s Terminal 1, CAAP also said, adding that the aircraft is now at a grassy area near the perimeter road in front of the Communications, Navigations, Surveillance-Air Traffic Management (CNS-ATM) antenna.
Agence France-Presse reported on Friday that the “aircraft is still resting on its belly near the end of the airport’s main runway where it came to a stop after the accident,” adding that it has “forced a partial shutdown of the Philippines’ main airport Friday.”
CAAP in its update on Friday evening said a total of 69 flights were cancelled, 10 flights diverted, and two Cathay Pacific flights reinstated. It identified the following affected and cancelled flights:
Terminal 1 affected flights:
Etihad Airways flight EY 421 (MNL-ABU DHABI)
Saudi Airlines flight SV 871 (MNL-JEDDAH)
Hongkong Airlines flight HX 781 (HONG KONG-MNL)
China Airlines flight CI 711 (KHH — MNL)
China Airlines flight CI 712 (MNL — KHH)
Terminal 2 affected flights:
PAL flight PR 453 (MNL-GES)
PAL flight PR 454 (GES-MNL)
PAL flight PR 1845 (MNL-CEB)
PAL flight PR 1846 (CEB-MNL)
PAL flight PR 432 (MNL-TOKYO)
PAL flight PR 408 (MNL-OSAKA)
PAL flight PR 438 (MNL-NAGOYA)
PAL Express flight 2P 2959 (MNL-CDO)
Terminal 3 affected flights:
Cathay Pacific flight CX 908 (MNL-HONGKONG)
Cathay Pacific flight CX 912 (MNL-HONGKONG)
Cathay Pacific flight CX 907 (HONGKONG-MNL)
Cathay Pacific flight CX 906 (MNL-HONGKONG)
Cathay Pacific flight CX 901 (HONGKONG-MNL)
Cathay Pacific flight CX 900 (MNL-HONGKONG)
Cancelled flights of Cebu Pacific:
Cebu Pacific flight 5J 272 (MNL-HONGKONG)
Cebu Pacific flight 5J 273 (HONGKONG-MNL)
Cebu Pacific flight 5J 5054 (MNL-HONGKONG)
Cebu Pacific flight 5J 5055 (NARITA-MNL)
Cebu Pacific flight 5J 929 (MNL-BANGKOK)
Cebu Pacific flight 5J 930 (BANGKOK-MNL)
Cebu Pacific flight 5J 110 (MNL-HONGKONG)
Cebu Pacific flight 5J 111 (HONGKONG-MNL)
Cebu Pacific flight 5J 805 (MNL-SIN)
Cebu Pacific flight 5J 806 (SIN-MNL)
Cebu Pacific flight 5J 112 (MNL-HONGKONG)
Cebu Pacific flight 5J 113 (HONGKONG-MNL)
Cebu Pacific flight 5J 014 (MNL-DUBAI)
Cebu Pacific flight 5J 015 (DUBAI-MNL)
Cebu Pacific flight 5J 188 (MNL-INCHEON)
Cebu Pacific flight 5J 187 (INCHEON-MNL)
Cebu Pacific flight 5J 487 (MNL-BACOLOD)
Cebu Pacific flight 5J 488 (BACOLOD-MNL)
Diverted Flights:
Philippine Airlines flight PR 105 (SAN FRANCISCO — MNL — DIVERTED TO CEBU)
Philippine Airlines flight PR 103 (LOS ANGELES — MNL — DIVERTED TO CLARK)
Philippine Airlines flight PR 117 (VANCOUVER — MNL — DIVERTED TO CEBU)
Philippine Airlines flight PR 115 (SAN FRANCISCO — MNL — DIVERTED TO CLARK)
Philippine Airlines flight PR 119 (TORONTO — MNL — DIVERTED TO CLARK)
Cebu Pacific flight 5J 187 (INCHEON — MNL — DIVERTED TO CLARK)
Cebu Pacific flight 5J 804 (SIN — MNL — DIVERTED TO CLARK)

Labor advisory out on workers’ pay on Aug. 21

By Camille A. Aguinaldo, Reporter
THE Department of Labor and Employment (DoLE) issued Labor Advisory No. 12 on Thursday, advising employers to pay their employees accordingly on August 21, a regular holiday falling on a special non-working holiday in observance of the Muslim Feast of Sacrifice or Eid al-Adha and Ninoy Aquino Day.
Employees who work on Aug. 21 get double holiday pay wherein he or she shall be paid an additional 30% of 200% of his or her regular salary for the first eight hours of the day, the Labor department said.
For overtime work, the employee shall be paid an additional 30% of his or her hourly rate on the holiday.
If the employee did not work, he or she shall be paid a full salary for that day.
If the employee worked during a regular holiday that falls on his or her rest day, he or she shall be paid an additional 50% of his or her daily rate of 200%. For overtime work rendered in this case, he or she shall be paid an additional 30% of his or her hourly rate on the said day.

1.125M kilos of smuggled sugar recommended for auction

By Janina C. Lim and Camille A. Aguinaldo, Reporters
THE Sugar Regulatory Administration (SRA) has recommended to the Bureau of Customs (BoC) that it auction the 1.125 million kilos of smuggled refined sugar in the bureau’s custody.
The sugar, misdeclared as packaging materials, kitchen utensils and kraft paper, were seized early this month from 45 twenty-foot container vans, according to communications by the BoC disclosed by the SRA on Friday.
The SRA said the seized volume consists of 2,914 bags of 50 kilos each from Thailand, valued at P9.47 million, and 2,167 bags of 30 kilos each from Korea worth P4.23 million.
“Upon the letter requests from the Bureau of Customs, the Sugar Board recommended the floor price and reclassification of the smuggled sugar seized by the Bureau of Customs from the ports of Manila and Cagayan De Oro City,” lawyer Roland B. Beltran, a member of the SRA board, said in a mobile message on Friday.
“We recommended the floor price at P1,900.00, that it be classified as B or Domestic Sugar, and that those who will be allowed to participate in the auction should be the SRA-accredited local and international traders.”
SRA pegged the total volume’s value at P42.75 million.
The BoC also filed criminal charges in violation of the Customs Modernization and Tarrification Act and the Anti-Agricultural Smuggling Act against officers of Red Star Rising Corporation for smuggling sugar. The corporation’s officers charged were Dante P. Lunar, Leonardo C. Mallari, Richel Paranete Llanes, August Presillas Templado, and Bernie Abrina Rubia.
Apart from the misdeclaration, Red Star Rising Corporation had no import permits from the Sugar Regulatory Administration (SRA).
BoC Commissioner Isidro S. Lapeña has prioritized expediting the disposal of abandoned containers, which might lead to the eventual discovery of prohibited or regulated goods. He added that the agency will file more criminal charges in the succeeding weeks.
“The continuous filing of these cases is in line with my standing order to deter all forms of smuggling for the protection of the legitimate traders and the general public,” he said in a statement.
According to the BoC, a total of 17 criminal cases were filed against importers and brokers involved in agricultural smuggling since Mr. Lapeña assumed office last year.

UCPB first-half profit little changed on increased provisions

UNITED Coconut Planters Bank (UCPB) said net profit was flat in the first half with operating income growth tempered by higher provisioning for loan losses.
In a statement Friday, the state-run lender posted a net profit of P2 billion in the six months to June, as the bank took a “conservative” approach to provisioning while income from subsidiaries fell.
Revenue rose 8% year-on-year to P8.67 billion, after a 9% rise in interest income to P7.45 billion, supported by higher loan volume.
The loan book grew 10% year-on-year to P174.09 billion on the back of robust growth in consumer lending, primarily from the real estate segment.
Income from fixed-income securities fell, while non-interest income expanded 3% year-on-year to P1.22 billion, driven by the bancassurance business as well as higher foreign exchange gains.
Higinio O. Macadaeg, UCPB president and chief executive officer, said the bank expects margins to improve this semester as it aligns loan rates with rising deposit rates, which should boost revenue from the bank’s lending business.
“Consumer banking and bancassurance will be our main revenue drivers for the rest of the year,” Mr. Macadaeg was quoted as saying in the statement.
Earlier this year, the bank signed a 10-year exclusive partnership to cross-sell products from United Coconut Planters Life Assurance Corp. (COCOLIFE) and UCPB General Insurance Co., Inc.
UCPB was the 11th-biggest commercial bank in asset terms at the end of March. — Karl Angelo N. Vidal

Security Bank may go branch-lite for underserved areas

SECURITY Bank Corp. is considering establishing more branch-lite units to expand its network to untapped and unbanked areas.
On Tuesday, Security Bank Branch Banking Group Head Leslie Y. Cham said the listed lender will consider opening branch-lite offices to expand its presence to areas which still do not have enough Security Bank branches.
“With the more flexible provisions set by the BSP (Bangko Sentral ng Pilipinas) for branch-lite offices… we have the option to augment the presence of our branches in specific areas where we see further growth and an untapped potential market,” Mr. Cham told BusinessWorld in an e-mail.
By opening branch-lite units, he added that Security Bank will be able to lower cost of operations and be present in busy and commercial areas with limited spaces.
In December, the central bank allowed banks to set up branch-lite units. This kind of branch is compact and less formal compared with the typical brick-and-mortar bank branch, and can be opened in towns which are unbanked or underserved.
“Branch-lite offices allow us to further grow our network of 171 branches in Metro Manila and 130 branches in the provinces,” Mr. Cham added.
The bank said establishing branch-lite offices will complement its full-service branches, allowing Security Bank to have wider market reach and greater accessibility.
Security Bank currently has one branch-lite office in The Medical City in Pasig City, which complements its full branch located at the same hospital.
“A similar set-up is currently being considered and the line-up needs to be reviewed in line with our overall branch expansion framework,” Mr. Cham said. “We are looking to adopt the hub and spoke model, and we will be able to identify the final list in the next few months.”
Mr. Cham added that the lender will be “selective” in establishing full-service branches in strategic areas.
Late last month, Security Bank President and Chief Executive Officer Alfonso L. Salcedo, Jr. said the bank will grow its digital presence this year which will take precedence over branches.
“[We’re putting up] maybe fewer than five [branches] because we’re focused on growing our digital platform,” Mr. Salcedo told reporters in an event in Makati City.
Security Bank’s net profit was P2.35 billion in the first quarter, down 16.6%, due to lower trading gains.
Security Bank shares rose 30 centavos or 0.15% to P199 on Friday. — Karl Angelo N. Vidal

Peso firms in thin trading as US, China resume trade talks

THE peso firmed against the dollar on Friday as the announcement of trade talks between China and the United States next week encouraged some risk-on sentiment on the market, though trading came in a narrow range and volume declined.
The peso closed at P53.425 against the dollar on Friday, compared with its Thursday finish of P53.44.
The peso opened at P53.41 and hit an intraday high of P53.37. The low was P53.455 against the dollar.
Trading volume declined sharply to $581.88 million from $884.1 million on Thursday.
In a phone interview, a foreign exchange trader said the peso traded within a very tight range once more.
“The greenback traded higher across the major currencies near 4 in the afternoon, but after that, it quickly reversed,” the trader said on Friday.
Another trader said the peso strengthened today “following the news of possible resumption of trade talks between the two largest economies, the US and China.”
Reuters reported that Beijing and Washington will hold lower-level talks this month, offering hope of a possible resolution to the escalating trade war.
The talks in Washington will take place on Aug. 21-22, just before new tariffs on Chinese goods, as well as retaliatory levies on US products, take effect.
“Although we did not see any catalyst for the peso, for the dollar it’s more of the US-China talks. It might somehow shift the risk-on sentiment from risk-off,” the first trader added.
UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion said the peso moved sideways as the market anticipated a rather more silent trading day.
“After the turbulent week, market sentiment was more positive on the lira and the trade war,” he said in a text message, referring to the Turkish currency, which was under pressure recently amid threats of US sanctions. — Karl Angelo N. Vidal