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Peso slips ahead of US CPI data

BW FILE PHOTO

THE PESO inched lower against the dollar on Tuesday as markets awaited the release of the latest US consumer inflation data overnight, which could affect the US Federal Reserve’s policy path.

The local unit closed at P57.075 per dollar, weakening by 3.5 centavos from its P57.04 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session sharply weaker at P57.14 against the dollar. Its intraday best was at P57.04, while its worst showing was at P57.23 against the greenback.

Dollars exchanged went down to $1.83 billion on Tuesday from $2.19 billion on Monday.

The local unit was lower as the dollar gained on Tuesday amid expectations of slightly faster US July inflation, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The dollar-peso was range-bound today ahead of the release of US inflation data later tonight,” a trader said in a phone interview.

The dollar was also supported by the 90-day extension of the tariff truce between the US and China, Mr. Ricafort said.

For Wednesday, the trader sees the peso moving between P57 and P57.40 per dollar, while Mr. Ricafort expects it to range from P56.95 to P57.20.

The dollar was flat on Tuesday as market enthusiasm about Washington and Beijing extending their tariff truce to November was tempered by jitters about US inflation data later in the day, Reuters reported.

US President Donald J. Trump signed an executive order overnight pausing triple-digit levies on Chinese imports for another 90 days.

But the upcoming US consumer price index (CPI) data were more important to the direction of markets, investors said, because it comes just after a surprisingly weak jobs report on Aug. 1 and as businesses increasingly report inflationary pressures.

Ahead of the CPI data due at 1230 GMT, the dollar was up 0.1% to 148.31 yen, while the euro was flat at $1.1613.

“If we see an inflation print that is above consensus that is going to make it very difficult for the Federal Reserve to cut interest rates,” Foresight Group fund manager Mayank Markanday said.

“We are probably going to see more data validating fears that (US) stagflation is a key risk,” he added, referring to an economic scenario of slowing growth and rising inflation that has not been prevalent in the US since the 1970s.

Investors are currently pricing in at least two rate cuts in 2025, adding to pressure on the dollar, which has also been weighed down by policy uncertainty and Mr. Trump’s personal attacks on Federal Reserve Chair Jerome H. Powell for keeping monetary policy tight. — A.M.C. Sy with Reuters

Breaking the world’s addiction to US statistics is hard

STOCK PHOTO | Image by Azerbaijan_stockers from Freepik

By Daniel Moss

ONE of Jimmy Carter’s top aides was banned from talking about recessions or depressions. So the person in charge of the campaign against US inflation in the late 1970s came to describing downturns as “bananas.” Bendy food is again fashionable in economic parlance.

Banana-republic governance has been evoked to describe President Donald Trump’s firing of the government’s top labor statistician after a poor jobs report and threats against the head of the Federal Reserve for not lowering interest rates faster. The Oval Office’s disdain for anything it might consider bad news, and the instinct to dispose of those who deliver it, is not only corrosive, but sets a terrible example.

Not that long ago, the argument for countries in dire straits was to become like America. Certainly, that was the message that much of Asia received a generation ago. Now, the world ought to look in horror. If favorability is the benchmark by which numbers are considered credible, then the global economy will be flying without a pilot. Investors from Singapore to New York depend on the authority of reports that indicate the direction of prices, employment, and growth. And they trust what comes out of the US more than just about anywhere else.

I’ve reported on economic data from places that, at various stages of political and economic development, could have been equated with bananas — and some economies that, while quite sophisticated industrially, had shoddy practices. In a majority of instances, the flaws suggested something was wrong with not just policy, but the overall approach to decisions. Antipathy toward scrutiny was also present.

Malaysia was an eye-opener. Like many in the mid-1990s, I internalized the idea that there was a secret sauce to the booming economies of East Asia. So I was shocked to discover that when it came to documenting those impressive growth stories how behind the curve they were. There was no fixed date of release; figures just rolled out on the state news agency in an incomprehensible manner. I found a better way, but only just. If a reporter could call a particular person, at around a certain time each month, flatter them, and then go to the statistics bureau, they could receive the hard copy before almost anyone else. In Indonesia, to get the data you just had to be at a certain location at the right time for someone to meander out of an office and casually read a number.

In early 1999, Japan, at that time the second-largest economy in the world but beset by a series of bank collapses, also had its work cut out. I was stunned to see a quarterly assessment of gross domestic product — with all kinds of detail — appear in the Nikkei newspaper before its official release. Then I realized that’s how they do business — and to a great extent still do.

I came to realize that the US system at the departments of Labor and Commerce was superior — there were lengthy media lockups aimed at ensuring equal access to the data and a consistent release time, as well as experts available during that window who could answer technical questions. Investors knew that while there might be the odd glitch, the numbers that flashed on trading screens at 8:30 a.m. Washington time were at least grounded in reality and, more or less, reflected trends in the economy. They still do, no matter how Trump may try to create an alternative reality.

These departments aren’t perfect. Sometimes officials would break their own embargo. Nor was the whiff of politics always entirely absent. In 2012, an election year, the Labor department tried to greatly constrain the media’s access to lockups, citing a security risk that wasn’t satisfactorily explained at the time. (Trump abolished the lockups in his first term.) Questions about equitable access arose after a Bureau of Labor Statistics analyst last year corresponded with major Wall Street firms about a key inflation gauge. He sent several e-mails to a group called “my super users.” There is clearly work to be done, irrespective of the Oval Office tantrums and claims of bias.

Terms like “banana republic” can often serve a galvanizing purpose. Former Australian Prime Minister Paul Keating caused a sensation in the 1980s when, as treasurer, he warned that yawning trade deficits presaged a banana republic unless addressed. The ship was eventually righted, and the country enjoyed decades without a slump until the COVID-19 pandemic.

Things didn’t end as happily for Carter. He lost re-election in part because of a nasty recession. His adviser, Alfred Kahn, found another euphemism after complaints from a powerful fruit company about bananas and settled on “kumquat,” according to the New York Times. But bad news can only be massaged so much. DC statisticians do a decent job, no matter what Trump says. I’ve encountered plenty worse.

BLOOMBERG OPINION

Arts & Culture (08/13/25)

CCP Channel is now up

THOSE who want to access Filipino arts and culture at any time, anywhere, can now turn to the CCP Channel. It aims to be a gateway to exclusive performances, award-winning films, and original productions straight from the Cultural Center of the Philippines. Subscriptions are P99 monthly and P599 annually via cpchannel.culturalcenter.gov.ph.

Collection of essays on PHL cinema, TV published

THE Ateneo de Manila University Press recently released one of its newest titles, Are You Still Watching? Dispatches and Essays on Filipino Cinema and TV by Don Jaucian. It provides in-depth film journalism that plucks people from behind the screen and brings them closer to the reader, from fly-on-the-wall accounts of a rom-com’s premiere night to intimate reportage of an encounter with a National Artist for Film. It is available at the press’ store and website.

Love, Loss, and What I Wore in Cebu

THE play Love, Loss, and What I Wore is set to be staged from Aug. 16 to 17, 8 p.m., at the Marco Polo Plaza Hotel, Cebu City. Written by sisters Nora and Delia Ephron, based on the book of the same name by Ilene Beckerman, it is presented by 2TinCans Philippines. It is a heartwarming and hilarious collection of monologues and ensemble pieces about women, clothes, and memory, serving as a time capsule of a woman’s life told in the voices of a rotating cast of women. Directed by Charlene Virlouvet, this Cebu staging features members of the 2TinCans Theatre Company — Liana San Diego, Mikee Amagsila, Regina Binueza, Shanice Kae Suarez, Shifrah Bouchikhi-Enclona, and Vanessa Fe. Tickets are available via 2tincans-philippines.yapsody.com.

VLF XX: Hinog gets one-night-only extension

VIRGIN LABFEST: HINOG will present a special one-night-only extension on Aug. 21, 8 p.m., at the CCP Tanghalang Ignacio B. Gimenez (Blackbox Theater) after it was postponed last July due to inclement weather. Dubbed VLF XX: Extended, it will feature selected plays from its recently-concluded 20th edition: Minating ni Mariah ang Manto ng Mommy ni Mama Mary by Eljay Castro Deldoc, Mommy G by Jobert Grey Landeza, and Presidential Suite #2 by Siege Malvar. Tickets are priced at P800 (regular) and P1,000 (premium), available at Ticketworld and Ticket2Me websites, and at the CCP TIG Box Office.

Pinter’s Betrayal translated into Filipino

THE play Kaliwaan, which is an adaptation of Betrayal by Harold Pinter, freely translated into Filipino by Guelan Varela-Luarca, will be staged in August. Presented by Stages Production Specialists, Inc. and co-presented by MusicArtes, Inc., it is directed by Loy Arcenas and stars Missy Maramara, Nor Domingo, and Ron Capinding. The limited, two-weekend run will be from Aug. 22 to 31. For the full schedule and to buy tickets, visit https://bit.ly/KaliwaanMNL2025. Tickets range in price from P800 to P1,250. It will be staged at The Mirror Studio Theater, SJG Bldg., 8463 Kalayaan Ave., Makati City.

Cardboard art workshop at The M

THE Metropolitan Museum of Manila is holding a workshop for turning everyday cardboard boxes into expressive figurines. Participants will get to design, sculpt, and produce one-of-a-kind characters using recyclable materials. The workshop will be facilitated by Baste Cacho. It takes place on Aug. 30, 2:30 to 5 p.m., at the third floor art studio of The M in BGC, Taguig.

Manila International Book Fair returns in September

THE Manila International Book Fair (MIBF) will be held from Sept. 10 to 14 at the SMX Convention Center, Mall of Asia, Pasay City. This year’s theme is “Stories in Every Form,” celebrating the diverse and evolving landscape of literature and content creation.

Pingkian: Isang Musikal returns

AFTER a Best Musical win at the 2024 Aliw Awards, Pingkian: Isang Musikal will be back onstage from Sept. 12 to Oct. 12 at the Tanghalang Ignacio Gimenez in the Cultural Center of the Philippines Complex, Pasay City. The full-length musical follows the journey of Emilio Jacinto, the young revolutionary who navigates the complexities of leadership in the final years of the Philippine Revolution and the beginning of the Philippine-American War. It stars Vic Robinson as Emilio Jacinto. His co-stars include Gab Pangilinan, Tex Ordoñez-De Leon, Kakki Teodoro, Paw Castillo, Almond Bolante, Joshua Cadeliña, and Marco Viaña. It is directed by Jenny Jamora and written by Juan Ekis, with music by Ejay Yatco and choreography by Jomelle Era. Tickets are available via TicketWorld and Ticket2Me.

Dear Evan Hansen cast for Singapore announced

BASE Entertainment Asia has announced the cast for the award-winning musical Dear Evan Hansen, which will have its Singapore premiere at the Sands Theatre, Marina Bay Sands. It runs from Oct. 30 to Nov. 16. It stars Ellis Kirk as Evan Hansen, returning to the role after appearing in the West End production. He is joined by Rebecca McKinnis as Heidi Hansen, reprising the role she played in the original London cast.

Startups must strengthen governance, Kickstart says

GREATWORKGLOBAL.COM

PHILIPPINE STARTUPS need to adopt strong governance practices to build trust, attract funding, and withstand market and geopolitical headwinds, corporate venture capital (VC) firm Kickstart Ventures, Inc. said, noting that accountability and transparency are as vital in early-stage firms as in mature ones.

“Good governance is a key indicator of stability, especially in a climate where investors are more cautious,” Jecky Pelaez, partner for legal and compliance at Kickstart Ventures, said in a statement.

“Startups that embrace good governance are better positioned to build trust, attract funding, and scale sustainably.”

Kickstart cited the Philippines’ full-year 2024 gross domestic product of 5.6%, the second fastest in the ASEAN (Association of Southeast Asian Nations) region.

“These numbers signal growth opportunities that, if further supported by sound governance, can enhance local and regional investor confidence,” Kickstart said.

“Thus, Kickstart renews its calls for stronger good governance practices to startups and VCs alike; they must make it a shared responsibility and strategic imperative to maintain trust and secure long-term growth,” it said.

However, the VC firm noted that ongoing geopolitical instabilities are aggravating funding gaps in Southeast Asia’s startup ecosystem.

Likewise, several startups in the region face cases of mismanagement and financial misconduct, making investors “increasingly cautious,” it added.

Practicing good governance would help startups build a strong foundation to thrive amid challenging market conditions, Mr. Pelaez said.

“Good governance isn’t just about compliance; it’s about being proactive participants, building trust, staying transparent, and growing the right way,” he added.

Kickstart conducts due diligence checklists on its portfolio of startups before investing to ensure that they are well-equipped and committed to sustaining growth, it said.

Likewise, the VC firm’s post-investment support ensures that startups maintain their growth by providing strategic oversight.

“Coupled with the protocols and checklists are the efforts to foster and nurture trust between VCs and the people they work with. Altogether, this balanced approach helps ensure operational efficiency and continued profitability,” it said.

Kickstart Ventures is a wholly owned subsidiary of Globe Telecom, Inc. — Beatriz Marie D. Cruz

D&L profit edges up to P714 million in Q2

DNL.COM.PH

D&L INDUSTRIES, INC. reported a 2% increase in second-quarter (Q2) net income to P714 million, supported by strong results from its Batangas plant and export business amid elevated coconut oil prices.

Sales for the period rose 22% to P12.34 billion from P10.14 billion a year earlier, it said in a statement on Tuesday.

For the first half, D&L saw a 6% increase in its net income to P1.4 billion as sales climbed by 40% to P26.61 billion.

The Batangas plant booked P597 million in net income for the first half, up by more than threefold from the same period last year, and ahead of expectations of achieving breakeven within the first two years of operations.

Export revenue climbed by 18% to P7.4 billion and accounted for 28% of total revenue. D&L aims to increase this share to 50% over the medium term.

The food ingredients division saw a 52% drop in net income due to the surge in coconut oil prices.

Chemrez Technologies, Inc. saw a 28% volume growth, which led to the doubling of net income for the first half after coming off a low base last year, driven by increasing global demand for coconut oil-derived products and the higher biodiesel blend.

Earnings of the specialty plastics division were flat after a high base and strong performance last year.

Consumer products ODM (original design manufacturing) saw a 45% earnings growth with the continued ramp-up of the Batangas plant.

“If we just did the same net income in the second half versus the first half, we’ll be well above the 10% growth in net income. It will be 19% (growth). We’ll see. There’s a higher chance of exceeding rather than going below our income (growth) target,” D&L Chief Executive Officer and President Alvin D. Lao said during a virtual briefing.

Mr. Lao said D&L is set to benefit from easing inflation and expectations of further interest rate cuts, which could stimulate economic activity and consumer spending.

“With coconut oil prices appearing overstretched, the second half is expected to benefit from more stable and potentially lower prices, supporting a stronger earnings performance compared to the first half. We maintain our outlook for double-digit net income growth for the year,” he said.

He also said D&L does not anticipate a material impact from the higher US tariffs, as the US market accounts for only approximately 3% of total revenue. On Aug. 7, the US started charging a 19% tariff on goods from the Philippines.

He said the majority of products sold to the US are valued for their distinct technical and functional attributes, adding that exports will remain a key growth driver for the company.

D&L is also exploring new markets and applications, particularly those where coconut oil’s natural and sustainable profile serves as a key competitive advantage, to grow its exports business and mitigate risks.

“Our focus remains on executing our growth strategy, expanding into new markets, and strengthening our competitive position to capture the significant opportunities we see both locally and globally. We are committed to delivering sustainable value for shareholders and remain confident in the company’s long-term prospects,” Mr. Lao said.

D&L shares rose by 2.89%, or 14 centavos, to P4.99 per share on Tuesday. — Revin Mikhael D. Ochave

Security Bank appoints new wealth business head

SECURITY BANK Corp. has appointed its executive vice-president, Price Edward “Jim” C. Yap, as wealth business segment head effective Aug. 29.

Mr. Yap take over leadership of the Wealth Business segment from Jefferson T. Ko — who the bank said is leaving for personal reasons — while continuing to head the Financial Markets segment, it said in a statement on Tuesday.

Mr. Ko previously led the bank’s Investment Solutions Group. He was appointed as Wealth Business head at the start of this month when the segment was established.

Meanwhile, Mr. Yap joined Security Bank in 2016 as senior vice-president and head of Treasury Sales. He was also a director and Credit Sales head for Mitsubishi UFJ Securities from 2011 to 2015.

“Jim is a proven leader with a track record of driving results in highly competitive markets. With his deep market expertise and relentless focus on clients, he is well-positioned to accelerate the growth of our Wealth Segment and take our customer value proposition to new heights,” Security Bank President and Chief Executive Officer Sanjiv Vohra said. — A.M.C. Sy

Proof or it didn’t happen! New ruling on proof of payment

STOCK PHOTO | Image from Freepik

It is now standard for employers to automatically credit the salaries of their employees to their respective bank accounts. In this digital world, gone are the days when employers handed out cash or checks and required employees to sign physical pay slips. While direct deposit offers convenience, this arrangement may also present certain challenges, particularly in proving the actual payment of employees’ monetary benefits.

In a recent case involving an airline company, the Supreme Court has shed light on how employers with bank crediting arrangements can effectively prove payment of salaries and benefits.

This case stemmed from the money claims of 49 employees who were dismissed following their participation in an illegal strike. These employees filed a complaint for illegal dismissal and claimed non-payment of monetary benefits, including their salaries and 13th month pay. The company argued that the Payroll Listing and the 13th Month Pay Payroll Register it submitted were sufficient and constituted substantial evidence of payment of the purported unpaid salaries and 13th month pay.

The Supreme Court, however, disagreed. It stressed that the burden of proving money claims rests on the employer, citing the fact that pertinent personnel records, such as payrolls, are not in the possession of the worker but in the custody and absolute control of the employer. Moreover, the Supreme Court noted that the employer must meet the quantum of proof required in labor cases, which is substantial evidence — that is, such amount of evidence which a reasonable mind might accept as adequate to justify a conclusion.

While the Court has generally treated payroll sheets or vouchers as substantial evidence of payment of the employee’s money claims, it clarified that these are considered substantial evidence only if they establish both: 1.) the employee’s receipt of payment; and, 2.) the specific date or period covering the alleged payment.

In arriving at this conclusion, the Supreme Court examined existing jurisprudence. For example, in Salvaloza v. National Labor Relations Commission (G.R. No. 182086, Nov. 24, 2010), the payroll sheets provided by the employer were properly signed by the employee, thus clearly indicating receipt of payment. In Iran v. National Labor Relations Commission (G.R. No. 121927, April 22, 1998), while vouchers were presented, they failed to cover the full period claimed — resulting in the employer being held liable for the uncovered years.

However, in today’s digital age, employees rarely sign their pay slips. Most employers now use automatic bank crediting to disburse salaries and benefits. This arrangement generally involves three stages: 1.) preparation of the payroll by the employer; 2.) submission of the payroll or advisory and its corresponding receipt by the bank; and, 3.) crediting of the amounts to the bank accounts of the employees. At stage one, only the employer is involved; at stage two, both the employer and bank are involved; and at stage three, only the bank acts on the instructions received.

Thus, the Supreme Court held that, at a minimum, an employer relying on an automatic crediting arrangement must present evidence of the second stage, i.e., proof that the payroll or the crediting advisory was submitted to and received by the bank. This proof, according to the Supreme Court, would allow a reasonable mind to conclude that the bank duly carried out the crediting process. Once the employer provides valid proof of the bank’s receipt, the burden of evidence then shifts to the employee to show that the payment was not actually credited to their account.

In the said airline company case, the payroll records submitted by the employer only reflected the first stage of the process — payroll preparation — and failed to prove the second stage, i.e., transmittal of the payroll to the bank. Accordingly, the Supreme Court ruled that these payroll records cannot be treated as substantial evidence of payment.

In light of this ruling, employers must now reassess and recalibrate their payroll documentation protocols, particularly with regard to their internal arrangements with banking partners. It is no longer enough to show that payrolls were prepared, as employers must be able to prove that a copy of the payroll or a crediting advisory was actually transmitted to the bank.

After all, as the Supreme Court has declared: proof — or payment didn’t happen!

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

Klarissa B. Santos is an associate of the Labor and Employment department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

kbsantos@accralaw.com

8830-8000

Rare ceremonial heads discovered in Peru shed light on ‘Warriors of the Clouds’

CHACHAPOYAS, Peru — Archeologists in Peru’s Amazon region have uncovered two rare, 1,000-year-old ceremonial stone club heads along with roughly 200 ancient structures and a unique zigzag frieze.

The discoveries were made at the Ollape site in the Amazonian district of La Jalca in an area where the Chachapoyas civilization, or “Warriors of the Clouds,” developed between 900 and 1,450 AD.

According to lead archeologist Pablo Solis, these findings offer a new understanding of the less-studied society that inhabited the area.

The intricately crafted club heads are believed to have held ceremonial significance, hinting at ritual practices of a society whose cultural footprint remains largely unexplored.

The intricate zigzag pattern is the first of its kind to be found in the region, and the number of structures suggests Ollape was an important ceremonial and residential hub.

Peru is rich in archeological discoveries, with researchers frequently uncovering ancient remains. The country is home to numerous historical sites, including the famous Machu Picchu in the Andean highlands of Cusco and the mysterious Nazca lines etched into the desert along the coast.

TEMPLE CLUES TO HUMAN SACRIFICES
Meanwhile, there had been a stark discovery on Peru’s northern coast, where archeologists have unearthed the 3,000-year-old remains of 14 people believed to be victims of a ritual human sacrifice, offering a glimpse into the country’s ancient past.

A research team found the skeletal remains near what is thought to be a ritual temple of the Cupisnique culture, a civilization that thrived more than a millennium before the Incas. Some of the dead were buried face down with their hands tied behind their backs.

“The way in which these individuals were buried is atypical, as are the traumas and injuries they suffered during life and the violence they endured,” said Henri Tantalean, the archeologist who led the excavation.

The position of the bodies, he explained, “is a typical form of human sacrifice.”

Unlike many elaborate burials found elsewhere in Peru, these victims were placed in simple pits in sand mounds, without any accompanying offerings or treasures.

The discovery was made near a beach in the La Libertad region, about 675 kilometers north of Lima, adding to the list of the country’s important archeological sites like Machu Picchu and the Nazca lines. — Reuters

How PSEi member stocks performed — August 12, 2025

Here’s a quick glance at how PSEi stocks fared on Tuesday, August 12, 2025.

Philippines lags in average net pay rankings

The Philippines placed 126th out of 197 countries in average monthly take-home pay, with workers earning just $393 (₱22,400) in 2025, according to a CEOWORLD Magazine report. This puts the country among the bottom five in the East and Southeast Asia. The report compares post-tax earning worldwide, spotlighting where workers pocket the most — and least — after deductions.

Philippines lags in average net pay rankings

PLDT plans court challenge if Konektadong Pinoy is signed

BW FILE PHOTO

PLDT Inc. said it will mount a court challenge to the Konektadong Pinoy bill if it is signed into law. 

“We are hoping that it will not be signed into law by the President but if it is, then we may have to go to the courts and raise the issue of its constitutionality,” according to Marilyn A. Victorio-Aquino, PLDT senior legal advisor to the Chairman, told reporters on the sidelines of the company’s financial briefing on Tuesday.

Ms. Victorio-Aquino, who also serves as the telco’s corporate secretary, said the measure, which aims to increase internet access by relaxing regulations and allowing more entrants into the data transmission industry, is subject to challenge on a number of fronts, with PLDT ready to go it alone if other telcos decide not to join its legal challenge.

“The three telecommunications companies may have different positions on certain issues. We will have our own challenge,” she said, the other two being Globe Telecom, Inc. and DITO Telecommunity Corp.

The Senate and House of Representatives ratified on June 9 the bicameral conference committee report on Konektadong Pinoy.

The measure has been transmitted to the Palace for President Ferdinand R. Marcos, Jr.’s signature. It is expected to lapse into law if the Palace takes no action by Aug. 24.

The Philippine Chamber of Telecommunications Operators (PCTO) has cautioned Mr. Marcos against signing the Konektadong Pinoy bill, warning that it could cause the Philippines to breach its treaty obligations.

It added that the proposed law could cause the government to violate the terms of franchises held by incumbent telecommunications operators.

The PCTO has said that while it supports the measure’s objective of expanding internet access, it warned that the version passed by the bicameral conference committee could result in vulnerabilities while weakening regulatory oversight.

Separately, Globe Telecom urged Mr. Marcos on Tuesday to veto the bill and return the measure to Congress for further refinement. 

“We advocate universal access to affordable and reliable internet. But we believe this bill needs further study and reform. We hope the President understands the concerns raised by many in the industry, including respected voices and notable personalities,” Globe General Counsel Froilan M. Castelo said in a statement. — Ashley Erika O. Jose

SSS joins Maharlika fund in ruling out investments in online gambling firms

BW FILE PHOTO

THE Social Security System (SSS) said it holds no shares of online gambling firms and has no plans to add such shares going forward.

“SSS has no investments in the online gaming industry and has no plan of investing in it,” the pension fund said in a statement on Tuesday, adding it is on board with the Department of Finance’s proposal to ban government investment in the industry.

Finance Secretary Ralph G. Recto said the government is considering a formal ban on such investments. Mr. Recto is the ex-officio chairman of the SSS.

The SSS said the online gambling industry “is not part of its investment plans.”

The SSS joins Maharlika Investment Corp. (MIC) in ruling out investing in the online gambling industry.

MIC President and Chief Executive Officer Rafael D. Consing, Jr. reiterated the sovereign wealth fund’s stance against investing in online gambling-related businesses.

“The Maharlika Investment Fund has a firm policy of not investing in businesses related to online gambling. This is not an arbitrary decision but is clearly defined in our board-approved Investment Policy and Risk Management Framework,” Mr. Consing told BusinessWorld on Tuesday.

The other major government pension fund, the Government Service Insurance System (GSIS), has faced questions about its investment in DigiPlus Interactive Corp.

A preventive suspension was imposed on GSIS President and General Manager Jose Arnulfo A. Veloso following questions about whether the DigiPlus investment bypassed the fund’s internal approval process.

Maharlika’s major investments so far include a binding term sheet to provide a $76.4-million bridge loan facility to Makilala Mining Co., Inc., which will fund the early-stage development of the company’s copper-gold project.

Other MIC investments include a 20% stake in listed Synergy Grid & Development Phils., Inc.

“I maintain that each GOCC (government-owned and -controlled corporations) must operate based on the investment guidelines and risk parameters set by its own distinct mandate,” Mr. Consing said, when asked if he’s on board with the investment ban.

“GOCCs are created for different purposes, and their investment strategies should naturally reflect their unique objectives.”

Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes urged the formal imposition of an investment ban for government firms.

“It would be hypocritical for the government to promote financial literacy and inclusion while having a stake in the gambling business,” Mr. Peña-Reyes told BusinessWorld.

Foundation for Economic Freedom President Calixto V. Chikiamco said the proposed measure is “a reasonable policy but a bit belated.”

The government has so far chosen to seek ways to tax and regulate the industry rather than ban its operations, with Mr. Recto floating a new levy and a requirement that companies list in the Philippine Stock Exchange, Inc. — Aubrey Rose A. Inosante

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