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Del Rosario on the rule of law

As chief of the Department of Foreign Affairs from 2011 to 2016, then Secretary Albert F. del Rosario advocated for the primacy of the rule of law. With this guiding principle, he became the initiator of the nation’s arbitration case against Beijing since it was filed in 2012. This case aimed at invalidating China’s historical ‘nine-dash line’ claims over the South China Sea, which obstructs Philippines’ right to operate inside its Exclusive Economic Zone.

The fight that the patriotic diplomat lead came to victory as the Arbitral Tribunal in The Hague, Netherlands concluded that China’s claim could not be a legal basis for claiming any portion of the South China Sea.

For this big mark he left among other valuable contributions as foreign affairs chief, Mr. del Rosario — a New York University graduate — received an Honorary Degree last Sept. 25 from the Ateneo de Manila University (ADMU). The Honorary Degree is one of the Traditional University Awards given to persons who reflect the university’s values through their respective fields.

During the awarding ceremony, Mr. del Rosario spoke a response that centered on the rule of law, which he believes to be “a timely and important subject.”

Rule of law in an ‘era of uncertainty’

While the rule of law shall regulate relations within a state, it must also govern international relations, especially that “among states and other international entities.” The former DFA Secretary explained in the response as published in ADMU’s official Web site, “after suffering two world wars, the international community had strived to establish international law as the bedrock foundation for the lawful governance of global affairs.”

However, as Mr. del Rosario observed, “this international order seems beset by challenges on all sides.” As an example, he pointed to the stand-off between Philippines and China. “In the South China Sea, despite our best efforts to find a peaceful and lasting resolution to our disputes that would account for the legitimate interests of all parties, we find China still obstinately acting in a contrary manner,” the diplomat said.

This apparent disorder he has seen led him to say that “we are now in a new era of uncertainty. There is now disarray in the ranks of governments. We are casting around for ways to respond in a meaningful fashion to preserve the established order, while answering the frustration and fury of many electorates.”

In order to manage this era if uncertainty, Mr. del Rosario proposed that we must understand two things. First, it is that “the Philippines has a fundamental and enduring stake in the international system,” since “[o]ver the past 20 years, we have also made profound decisions to become ever more engaged with the world in all dimensions.”

Moreover, he said we must realize “that the Philippines is not insignificant on the world stage,” since the country has been “active in global efforts to create rules for international order that would save us from a dog-eat-dog world of competing powers and naked interests.”

“The lodestone for all this effort, accomplished in various diplomatic forms,” Mr. del Rosario continued, “has been an abiding faith in the centrality of the rule of law.” For him, the rule of law must be upheld together “with other countries and all stakeholders who share a similar faith.”

Rule of law in the Arbitral Ruling

Through the arbitral case against China, the rule of law was advanced. He sees this as a giant step the country took in promoting rule of law. Mr. del Rosario explained: “By initiating and winning its South China Sea arbitral case against China on July 12, 2016, we have shown the world that our country sought to resolve a serious dispute state-to-state in its regional neighborhood solely through legal, peaceful and transparent means.”

And now that the ruling favors the Philippines, Mr. del Rosario urged that “[i]t is the prerogative and the responsibility of an incumbent Administration to decide on our Foreign Policy and to craft our diplomacy.” While pushing efforts to maintain and improve relations with other countries is definitely fine, these efforts must nevertheless be guided by the rule of law. Adhering to it is “the unifying principle that would help most in containing and eventually resolving international disputes.”

“The Rule of Law is the only principle that can transcend the interests of various jurisdictions in the sphere of international relations. If we do not adhere to the Rule of Law, then we consign our regional affairs to the clash of national interests without rules,” the diplomat highly emphasized.

As he shared in an e-mail to BusinessWorld, Mr. del Rosario wants to be remembered as a patriot after he steps down as foreign affairs secretary. As reflected by his speech that night in Ateneo, his firm stand on the rule of law — which was at the core of his foreign affairs task — will surely reflect his unwavering love for our country. — Adrian Paul B. Conoza

Disqualified telco bidders lose appeal

THE SELECTION COMMITTEE for the country’s third major telecommunications service provider on Monday denied the motions for reconsideration (MRs) of groups disqualified from the auction last week for deficiencies in their submissions.
A copy of the decision distributed by the National Telecommunications Commission (NTC) to reporters on Tuesday showed the selection committee denied the request of Sear Telecommunications Consortium — formed by TierOne Communications International Inc. and LCS Group of Companies (Sear-LCS-TierOne) — and Philippine Telegraph and Telephone Corp. (PT&T) for it to reconsider their disqualification from the auction.
The two companies said in separate statements that they were notified of the rejection of their appeals on Monday night.
“The PT&T management and its legal team are currently reviewing the selection committee’s denial of the motion for reconsideration to determine the next course of action that the company will take,” the firm said in a mobile phone message to reporters.
NEXT APPEALS TO NTC
The auction’s terms of reference provide that if a bidder’s MR is denied, it may appeal to the NTC en banc for a non-refundable fee of P10 million.
Sear-LCS-TierOne said in its MR that it wanted the selection committee to review the awarding of provisional winner status to the Mislatel Consortium — formed by China Telecommunications Corp., Dennis A. Uy’s Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp. — as its franchise holder Mindanao Islamic Telephone Company, Inc. (Mislatel) has an exclusive contract with a member of its group, DigiPhil Technology, Inc.
But the selection committee denied Sear-LCS-TierOne’s petition, saying such dispute should be resolved in appropriate courts.
The committee’s ruling covered the consortium’s plea against its disqualification for lack of a P700-million “participation security” and to be allowed late submission of documents for the required bond. It argued that “non-submission of the participation security in the form required does not affect the substance and validity of the proposal submitted by the consortium.” The committee said it cannot accept changes to a participant’s bid submission after the deadline.
PT&T sought reconsideration of its disqualification for lacking certification of 10-year experience as telco operator on a national scale. It decried what it said was a change in terms of reference that would otherwise have qualified “regional operations” for the auction. This detail was later clarified as valid only for foreign participants.
The disqualified groups have until Thursday to appeal to the NTC.
Otherwise, the selection committee will submit a resolution on auction results to the NTC en banc, which will then declare the result as final.
The winner, which is eyed to break the duopoly of PLDT, Inc. and Globe Telecom, Inc., will be awarded a certificate of public convenience and necessity valid for 15 years or the length of the franchise of a bidder, whichever is shorter; and radio frequency bands of 700 megahertz (MHz), 2100 MHz, 2000 MHz, 2.5 gigahertz (GHz), 3.3 GHz and 3.5 GHz.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

WTO panel rules against Thailand on compliance

THAILAND has failed to comply with a World Trade Organization (WTO) ruling against its regulations on cigarette imports, a WTO dispute panel in Geneva said on Monday.
The issue involved the first of two legal cases brought to the Geneva-based watchdog by the Philippines.
Either side can still appeal the ruling, which concerned valuation imported by Philip Morris Thailand Limited from Philip Morris subsidiaries in the Philippines and Indonesia.
The dispute stems from Manila’s 2008 complaint against Thai fiscal and customs measures affecting cigarettes from the Philippines, including customs valuation, excise tax, health tax, value added tax, retail licensing requirements and import guarantees imposed upon cigarette importers that resulted in unfair treatment of imported cigarettes.
The WTO dispute panel ruled in favor of the Philippines in late 2010.
In February 2013, however, Manila expressed concern on a lack of progress in Thailand’s compliance with rulings and recommendations of the dispute panel concerned, while Bangkok argued in June 2014 that Thailand did not have to take any further action to implement them.
The WTO’s Dispute Settlement Body (DSB) established a compliance panel — the second after the one formed in December 2016 — last May 9.
“We… conclude that Thailand has failed to implement the recommendations and rulings of the DSB to bring its measures into conformity with its obligations under the CVA (Customs Valuation Agreement) and the GATT (General Agreement on Tariffs and Trade),” read the summary report posted on the WTO Web site.
Sought for comment, Jeremy I. Gatdula, a lecturer at the University of Asia and the Pacific for international Law, said in a mobile phone message on Tuesday: “If no agreement on possible compensation is forthcoming, then the Philippines needs to start determining an effective set of retaliatory measures… that will help our local tobacco industry.” — Reuters and Janina C. Lim

Senate approves proposed general tax amnesty on 2nd reading

THE SENATE on Tuesday approved on second reading a measure that would grant a general tax amnesty, a day after a similar bill hurdled the Ways and Means committee in the House of Representatives.
Congress hopes to approve as many proposed tax reforms as possible before lawmakers succumb to campaign fever ahead of the May 2019 midterm elections.
The House itself approved on third reading last Monday as Congress resumed session a bill that would give government an even bigger share in miners’ revenues and another measure that would provide a standard framework for determining real property values for taxation purposes.
Senate Minority Leader Franklin M. Drilon on Tuesday proposed revisions to the general tax amnesty bill regarding the statements of assets, liabilities, and net worth (SALN) and automatic exchange of information. Mr. Drilon proposed for the SALN as of December 31, 2017 to be presumed correct without qualifications, as prescribed in Senate Bill No. 2059. The proposed law originally disqualified the SALN if it is 30% understated. Under the bill, the SALN and a general tax amnesty return are requirements for a person to avail a tax amnesty on all unpaid taxes up to 2017.
Mr. Drilon also called for deletion of the bill’s proposed amendments to Section 6 of the National Internal Revenue Code regarding the powers of the Bureau of Internal Revenue (BIR) Commissioner to inquire and receive information on bank deposits and other data held by financial institutions for tax purposes.
He also called for the removal of provisions that will allow automatic exchange of tax information between the BIR and foreign tax authorities pursuant to a treaty or international agreement with other countries.
Senator Juan Edgardo M. Angara, sponsor of the bill and chairman of the Senate Ways and Means committee, accepted Mr. Drilon’s amendments.
The revised House version of the bill also scrapped the provisions on automatic exchange of information when it was approved by the Ways and Means committee last Monday. According to the latest draft of the still-unnumbered House bill as of Nov. 13, a general tax amnesty return and a statement of total assets as of December 31, 2017 is required to avail the amnesty.
The general tax amnesty bill forms part of a bigger tax reform program. The proposed amnesty under Senate Bill No. 2059 covers all unpaid internal revenue taxes — estate taxes, general taxes and delinquent accounts — due up to taxable year 2017.
The Finance department estimates the tax amnesty proposal to yield up to P26 billion in additional revenues, but said its value lies in growing the country’s taxpayer base. — Camille A. Aguinaldo

Auto sales drop for ninth straight month in October

SALES of motor vehicles in the country fell annually for the ninth straight month in October, even as the latest tally was an increase from September, according to data of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) released on Tuesday.
Total vehicle sales dropped 9.2% to 33,150 units in October from 36,511 a year ago, though the latest tally was 6.5% more than September’s 31,116.
Vehicle Sales in the Philippines
A press statement accompanying the data release focused on the month-on-month increase, with CAMPI president Rommel R. Gutierrez attributing the rise to “market promotions and availability of new model units in line with the recently concluded 7th Philippine International Motor Show (PIMS)”.
“We remain optimistic that sales growth will be sustained in November, as we expect more sales from PIMS will be delivered this month.”
The nine straight months of year-on-year declines, however, come in the wake of the increase in automobile excise taxes that took effect in January — a month that had otherwise seen a four-percent increase from the past year — as well as amid tighter credit conditions after the central bank started raising benchmark interest rates, totalling 150 basis points so far since May.
Weighing heavily on sales in October were passenger cars, whose sales fell by 19.2% to 9,444 units from 11,686 a year ago, though roughly flat from September.
Sales of commercial vehicles slipped by 4.5% to 23,706 units from the year-ago 24,825, though 9.4% more than September’s 21,675. Asian utility vehicle sales were halved year-on-year to 3,409 vehicles from 6,858, though 16.5% more than September’s 2,926. Light truck sales dropped 10.9% to 721 from 809 a year ago, but surged by 26.3% from September’s 571 vehicles. Light commercial vehicle sales, however, grew 14.4% to 18,896 vehicles in October from 16,521 units a year ago, and grew 7.2% from 17,626 units in September.
October brought year-to-date industry sales to 294,207, 13.3% down from 339,380 in 2017’s comparable 10 months. Broken down by major components, the same comparative 10 months saw passenger car sales drop a fifth to 90,522 — making up a third of the total — and commercial vehicle sales fall by 9.9% to 203,685, accounting for 69.23%.
Year-to-date industry data show Toyota Motors Philippines Corp. topping the list as of October with 124,329 vehicles sold — accounting for 42.26% of the total — down 16.7%. In second place was Mitsubishi Motors Philippines Corp. with 56,592 units sold — accounting for 19.24% — down 5.3%. Third came Nissan Philippines, Inc. with 28,210 vehicles sold — making up 9.59% — up 44.8%. Fourth was Ford Motor Company Philippines, Inc. with 19,741 automobiles sold — making up 6.71% — down 30.9%, while Honda Cars Philippines, Inc. took fifth place with 19,482 units sold — accounting for 6.62% of the industry total — down 17.8%.

Ayala invests in renewable energy firm

By Victor V. Saulon, Sub-editor
AC ENERGY, Inc. through its international unit has invested in Singapore-based renewable energy company The Blue Circle Pte. Ltd. through a 25% ownership acquisition as well as co-investment rights in the latter’s projects.
“It’s a platform partnership. The Blue Circle, TBC, is a regional development and operations company focused on wind.”
AC Energy Chief Executive Officer Eric T. Francia told reporters on Tuesday.
AC Energy, the energy arm of diversified conglomerate Ayala Corp., and TBC are to jointly develop, construct, own and operate the latter’s pipeline of around 1,500 megawatts (MW) of wind projects across Southeast Asia, including about 700 MW in Vietnam. TBC developed and constructed one of the first wind farms in Vietnam.
Next year, the partnership plans to develop around 100 to 200 MW of wind energy projects in Vietnam out of TBC’s project pipeline in that country, he said.
AC Energy subsidiary AC Energy International Holdings Pte. Ltd. signed the deal with TBC.
“What we like about this platform and partnership is that number one, they have the capabilities and the track record for wind, and number two, they have a very good pipeline of development projects across the region,” Mr. Francia said.
He said TBC’s principal markets are Thailand and Indonesia, although it has some developmental assets in Indonesia and Cambodia, and at a lesser magnitude, in the Philippines.
“We’re gonna begin this relationship by focusing first on Vietnam because that’s where most of the action is,” Mr. Francia said, adding that the regional neighbor has an installation deadline for renewable energy projects aiming for a feed-in tariff.
He said AC Energy has set aside $100 million of equity for these projects.
Mr. Francia said funding for the projects would come from corporate debt and the funds raised from the sell down of AC Energy’s thermal assets. He also said that the company was working with several lenders to put together the loan component to fund the projects.
He placed the cost of putting up each megawatt of wind project at $1.5-$1.6 million dollars.
AC Energy previously said it had more than $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region. It aims to develop five gigawatts of attributable capacity and generate at least half of energy from renewables by 2025.

Resorts World Manila operator swings to profit

THE owner and operator of Resorts World Manila (RWM) swung to profitability in the third quarter of 2018, as revenues from both the gaming and non-gaming segments improved.
In a regulatory filing, Travellers International Hotel Group, Inc. (TIHGI) generated an attributable profit of P134.25 million, versus an attributable loss of P408.9 million in the same period a year ago.
Gross revenues improved to P5.93 billion, 32% higher year-on-year.
The profit loss last year was due to the casino shooting in June 2017 within the RWM complex that left 38 people dead, including the gunman. This incident prompted the closure of the property’s casino area for 27 days.
For the nine months ending September, TIHGI’s net income attributable to the parent reached P1.82 billion, versus an attributable loss of P34.13 million, while gross revenues gained 8% to P16.99 billion.
Gross gaming revenues from January to September this year climbed 7.5% to P13.8 billion. Revenues from the non-gaming segment also added 11.3% to P3.2 billion.
TIHGI said that visitors to the RWM complex averaged at 27,500 a day in the third quarter, while the average occupancy rate inside its three hotels, namely Marriott Hotel Manila, Maxims Hotel, and Holiday Inn Express Manila Newport City, was at 79%.
The company opened the fourth hotel, the Hilton Manila, inside the complex last October, which it expects would further attract customers into the area.
“We will continue to invest in the property to be able to provide thrilling and unique experiences for our customers. We are in full swing working to complete our Phase 3 development called the Grand Wing,” TIHGI President and Chief Executive Officer Kingson Sian said in a statement.
Hilton Manila is one of three international luxury hotels included in the development of the Grand Wing, the others being Sheraton Manila Hotel and Hotel Okura Manila. This will add around 940 rooms into the RWM complex, as well as new gaming, entertainment, retail spaces, and six basement parking decks.
Shares in TIHGI closed flat at P5.14 each at the stock exchange on Tuesday. — Arra B. Francia

Semirara drags DMCI Holdings’ net income lower in Q3


By Arra B. Francia, Reporter
CONSUNJI-LED DMCI Holdings, Inc. reported a 44% drop in earnings for the third quarter of 2018, weighed down by the weakness of its coal energy business that makes up around half of its portfolio.
The diversified engineering conglomerate posted a consolidated net income of P2.3 billion from July to September, versus the P4.1 billion it realized in the same period a year ago.
This brought the listed company’s nine-month consolidated profit to P11.5 billion, 2% lower than the P11.7 billion booked last year. Without one-time gains worth P715 million from the sale of an undeveloped lot by its housing unit and other one-time costs, DMCI Holdings’ core profit was down by 8% to P10.8 billion.
Revenues meanwhile rose by 3% to P60 billion during the nine-month period.
“Semirara (Mining and Power Corp.) is down, it’s about 50% of the portfolio that’s why it spilled over to the whole group. But the other drivers are positive… all drivers are double-digit growth,” DMCI Holdings Vice-President and Senior Finance Officer Brian T. Lim told reporters in a press briefing in Taguig City late Monday.
Nine-month income contributions from SMPC fell 22% year-on-year to P5.1 billion due to heavy rains in July and August, as well as the seven-month shutdown of Southwest Luzon Power Generation Corporation (SLPGC) Unit 1, way beyond its programmed outage of around 45 days.
DMCI Holdings Chief Finance Officer Herbert M. Consunji noted that the power plant has business interruption insurance, which covers the loss of business income due to damage to the insured asset, amounting to P1 billion.
“We have collected around P300 million from that P1 billion, but what Semirara wants is to recognize the insurance when the whole of it has been paid within the year,” Mr. Consunji said during the briefing.
Mr. Consunji expects Semirara to recover from business interruptions in the fourth quarter.
Meanwhile, DMCI Homes delivered a 29% increase in income contribution to the parent to P3.4 billion. The property developer recognized a one-time gain on the sale of an undeveloped lot in Quezon City during the period. It also benefited from the 7% increase in reservation sales.
The company booked P1.5 billion from net income contributions form affiliate Maynilad Water Services, Inc., 11% higher year-on-year, due to a 2.8% uptick in bulled volume, 2.8% tariff adjustment due to inflation, and an improved consumer mix.
The construction arm through DM Consunji, Inc. saw its net income share grow by 12% to P952 million. The unit recorded higher accomplishment in building projects and further realized variation orders from projects close to completion.
DMCI Power Corp. provided P337 million, higher than 4% from last year’s P324 million. The off-grid energy business logged a 25% increase in electricity sales volume, but was dragged by lower-than-expected provisional tariff for its Aborlan bunker plant in Palawan.
For DMCI Mining Corp., net income contribution rose by 14% to P133 million, after shipping 482,762 wet metric tons of higher grade nickel ore from its old stockpile.
Sought for comment, Regina Capital Development Corp. Equities Analyst Rens V. Cruz II called DMCI Holdings’ third quarter figures “underwhelming,” but noted that full-year performance remains on track.
“(W)eakness emanated mostly from cyclical considerations. Heavy downpour in 3Q led to weaker SCC (Semirara’s ticker symbol), nickel mining earnings, while (DMCI) Homes registered a one-off in 9M17. These are mostly factors that are not expected to spill over significantly in the coming periods,” Mr. Cruz said in a mobile message.

Earnings of Gotianun-led FDC surge in 3rd quarter

FILINVEST Development Corp. (FDC) reported a 68% growth in attributable profit for the third quarter of 2018, as its banking, property, power generation, sugar, and hotel operations all posted higher revenues for the period.
In a regulatory filing, the Gotianun-led holding firm said net income climbed to P2.49 billion, against P1.48 billion generated in the same period a year ago. This followed an 11% uptick in revenues to P17.79 billion.
On a nine-month basis, FDC’s attributable profit expanded by 67% to P7.92 billion. Revenues meanwhile rose 12% to P54.24 billion.
“Our investments in power, property, and in the bank infrastructure is now being reflected in the healthy increase of FDC’s net income,” FDC President and Chief Executive Officer Josephine Gotianun-Yap.
“While we are always managing risk in our subsidiaries, adding investments in power and infrastructure further allow us a more balanced portfolio with the defensive industries recompensing the business segments that are more exposed to the ups and downs of the economic cycle.”
FDC’s property units drove its growth for the period, as Filinvest Land, Inc. (FLI) grew its net income by 14% to P4.22 billion. Revenues went up by 10% to P15.98 billion.
FLI benefited from the strength of rental revenues, which jumped 28% to P4.04 billion. This offset the flat real estate sales at P10.34 billion. The listed property developer said it remains on track to reach it 1.5-million square meter target in terms of gross leasable area by 2022.
Power unit FDC Utilities, Inc. generated P6.3 billion in revenues in the nine-month period, boosted by the 25% increase in sales from its power plant in Misamis Oriental coupled with retail electricity operations.
Listed banking subsidiary East West Banking Corp. delivered a net income of P3.2 billion, 13% lower year-on-year due to the lower contribution of wholly-owned subsidiary EastWest Rural Bank (EWRB). The rural lender suspended lending activities to teachers as it waited for new guidelines from the Department of Education.
Without EWRB, EastWest’s net income would have gone up 6% on a yearly basis.
FDC is banking on the continued growth of its property and hospitality units moving forward, with several projects in the pipeline. For instance, Filinvest Hospitality Corp. is currently constructing 1,700 rooms across eight new hotels, in addition to its existing networked of 1,591 hotel rooms.
The conglomerate is also redeveloping the former Clark Mimosa Estate into Filinvest Mimosa+Leisure estate, which strengthens its foray into leisure development.
Shares in FDC gained 0.27% or two centavos to close at P7.39 each at the stock exchange on Tuesday. — Arra B. Francia

PCC: Draft common tower policy is anti-competitive

THE Philippine Competition Commission (PCC) on Tuesday said the draft policy on common towers, crafted by the Department of Information and Communications Technology (DICT) and National Telecommunications Commission (NTC), may be anti-competitive as it allows only two tower companies to operate in the first four years of its implementation.
“Approving the draft Common Tower Policy in its current form… may raise competition concerns and be in direct contravention to the open access regime that the government is advocating for,” the PCC said in its comments on the draft memorandum circular (MC) on common towers.
“The PCC recommends that the relevant agencies review the objective of the Policy to ensure that it squarely addresses issues pertaining to the lack of necessary ICT (information and communications technology) infrastructure to improve telecommunication services in the country, as well as the lack of effective competition in the industry,” it added.
The DICT and NTC in September released the draft MC prepared by Presidential Adviser for Economic Affairs and Information Technology Communications Ramon P. Jacinto. Under the draft, the government will register at most two tower companies to handle the deployment of telecommunications infrastructure that telcos such as PLDT, Inc. and Globe Telecom, Inc. may share.
The policy is aimed at addressing the slow and inefficient rollout of towers, by allowing tower companies to focus solely on building infrastructure and ease the burden on the telcos.
But the PCC said the draft MC needs refining, as the limit it set on the number of TowerCos “would have adverse effects on market competition.”
“The PCC emphasizes that entry or potential entry to the market ensures the existence of competitive pressure, which drives the business to be more efficient, aggressive and innovative for the benefit of consumers,” it said.
It noted that the purpose of the MC was to allow telco operators to share infrastructure, and restricting registered tower companies would not solve the “wasteful duplication of network resources and multiplicity of permits, which have resulted in the slow roll-out of infrastructure and poor quality of services.”
“The PCC calls the relevant agencies to reassess the objective of (the proposed restriction),” it said.
Globe and PLDT have raised concerns over the draft MC, noting that aside from the restriction on tower companies which is anti-competitive, the policy’s intention to keep them from rolling out their own towers contradicts their congressional franchise.
DICT Acting Secretary Eliseo M. Rio, Jr. had recognized this flaw earlier, and said further reviews will be done on the draft MC to acknowledge comments from stakeholders.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

SMC’s 9-month recurring profit up 20%

DIVERSIFIED conglomerate San Miguel Corp.’s recurring profit jumped by a fifth in the nine months ending September, driven by strong sales volumes complemented by favorable selling prices.
In an investors’ presentation posted on its website, the listed company reported a recurring net income of P52.41 billion, 20% higher than the P43.78 billion it logged in the same period a year ago. This excludes the impact of foreign exchange losses.
Consolidated revenues climbed by 28% to P761.2 billion, against P597 billion in the same period a year ago.
SMC’s newly consolidated food and beverage unit, San Miguel Food and Beverage, Inc. (SMFB), grew its net income by 17% to P22.93 billion, after net sales rose 15% to P206.62 billion during the January to September period.
San Miguel Brewery, Inc. recorded P17.76 billion in earnings, 23% higher year-on-year due to a 16% uptick in net sales to P93.36 billion. Meanwhile, Ginebra San Miguel, Inc.’s profit surged by 81% to P789 million, on the back of a 17% rise in net sales to P17.92 billion.
The performance of the liquor and brewery units offset the weakness of the food group, which saw its net income fall by seven percent to P4.37 billion. Net sales however increased by 13% to P95.35 billion.
Meanwhile, Petron Corp. generated P419.86 billion at the topline, 34% higher year-on-year. This resulted to a minimal increase in earnings at 3% to P12.06 billion. The company attributed the slower bottomline growth to an “industry-wide decline in demand due to high pump prices.”
For SMC Global Power Holding Corp., net sales gained 43% to P89.11 billion. Operating income accordingly went up by 31% to P25.75 billion.
The power unit saw its consolidated off-take volume surge by 38% to 17,670 GWH, lifted by additional generation from its plants in Limay, Malita, and Masinloc, as well as higher contributions from the Sual and San Roque plants.
Net sales of SMC Infrastructure advanced by 10% to P18.13 billion, resulting in a 10% uptick in operating income to P8.91 billion. This was on the back of higher traffic volume on its operating toll roads.
The firm operates the South Luzon Expressway, Skyway Stage 1 and 2, NAIA Expressway, and the Tarlac-Pangasinan-La Union Expressway. It is currently developing big-ticket infrastructure projects such as the Skyway Stage 3, Metro Rail Transit 7, and the Bulacan Bulk Water project.
Shares in SMC shed 1.2% or P2.10 to close at P172.50 each at the stock exchange on Tuesday. — Arra B. Francia

BenCab goes punk


IN BETWEEN Benedicto “BenCab” Cabrera’s iconic Sabel and Larawan series, the National Artist had a phase when he focused on drawing punks as a form of diversion from his signature paintings in the early 1980s.
The artist told BusinessWorld that he was drawn to London’s punk subculture — their dyed hair, cool haircuts, and their unconventional fashion — “because they were colorful.”
“That was the era when they felt like they belong to a tribe — you’d have the skinheads, the rockers, the London punk, kanya kanya (different sorts). I think the punks are more approachable. The skinheads are racialists and violent,” he said, laughing, at the sidelines of the opening of his exhibition called London Punk Drawings 1981-1984 on Nov. 6.
BenCab’s 39 punk portraits will be on view until Feb. 8 at the Conrad Manila’s Gallery C.
DRAWING FROM LIFE
The artist, who was dressed in a punkish all-black outfit which include a skull T-shirt for his exhibit opening, said he met the punks in London where he lived for 13 years.
“The punks lived in squats. They’d go and sign their UB40, [an unemployment benefit form card] where they get a weekly allowance and they used the money to buy paraphernalia and dyes. I found it interesting. I asked them to pose for me and I paid them £2 per hour. They agreed because they were hard up, too. They brought their own casettes to listen to their punk music [while I drew them].”
During the years that he was in London to start his family, he did many on-the-spot portraits of the punks.
He explained that back in the 1980s, minimalism and abstract painting were “uso” (trendy), “but there was a revival for figuration. Me, I love to draw from life. In a way, it’s good to revive that because you can never remove the skill from drawing from live, the hand-to-eye coordination.”
He added that he has always loved drawing. Back in London he was inspired by other London-based artists like David Hockney, R.B. Kitaj, and Lucien Freud when it came to drawing.
Drawing from life is more challenging than painting from imagination, said the artist.
“[When you do it] from memories, you can invent, you dream, but from live, you draw the subject in front but it’s not really copying photographically, because the model usually moves, you capture the personality of the model.”
RETROSPECTIVE?
The 39 portraits in the exhibition are all from BenCab’s own collection. In his exhibition are portraits of men and women in blue or hot pink hair or mohawks, decked out in studded belts, boots, and bracelets. Some women were nude while some were braless.
“I was invited to exhibit any work here [in Conrad]. I realized that I have some drawings. I went to my studio to check and I have found I have a stock of drawings, of punk drawings. I thought ‘marami pa pala ito ah (I still had many of them), good enough for a show.’ So I proposed to them and [waited if] they would agree to show an early work. They liked it. Timely, with the Bohemian Rhapsody [referring to the Queen movie currently in theaters].”
So, after nearly 40 years, BenCab is resurrecting his collection of punk drawings. He said: “Somehow it’s good to have a retrospective. Uso na ’yun no? (Its trendy now) It’s also to show the era of that period.”
The 76-year-old National Artist said of his more than three-decade-career: “work every day.”
“Number one is to be healthy and continue your creative process. Have discipline, work every day. Sometimes I do bonsai and assemblage of things. You get a lot of pressure, lalo na (especially) when a lot of people are demanding some works from you. But you have to be happy first. I take my time, that’s why there are few works [of mine] in the current market, except in auctions which I don’t own, they are cashing in [money],” he said.
NOT THE FIRST TIME
But this isn’t the first time that the artist is doing a punk-themed exhibition. By the end of 1981, he had amassed such a large collection of punk portraits that he was able to put up a show called Punks at the Tricycle Theater Gallery in London. The following year, during one of his periodic homecomings from London to Manila, he also held a punk-themed exhibit at the Cultural Center of the Philippines’ Little Gallery. He arrived at that show decked out in a studded leather vest, a black shirt, and a studded bracelet. But the show wasn’t a success. In the words of writer Eric S. Caruncho who wrote an essay that accompanies the current exhibition: “Perhaps the art crowd didn’t know what to make of it at the time,” and the local art aficionados, he said, had a hard time reconciling BenCab’s Larawan series with European punks.
The artist said of the experience: “They were not as saleable as now. That time maybe they found it very different from what I used to do.”
But now that the punk culture has gained more local resonance and popularity, his current exhibition at Conrad might tell a different story. — Nickky Faustine P. de Guzman