The homegrown smartphone

September 20, 2017 | 12:30 am

The Entrepreneur Of The Year Philippines 2017 has concluded its search for the country’s most inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each finalist for the Entrepreneur Of The Year Philippines 2017.

Maynard Ngu
Chief Executive Officer
Cosmic Technologies Incorporated
(Cherry Mobile)

AT A TIME when the mobile phone industry was dominated by international brands, Maynard Ngu, 38, wanted to prove that a local mobile brand could be just as competitive.

With this goal of developing mobile phones specifically for Filipino users, he launched Cherry Mobile in 2009. Since its establishment, Cherry Mobile has become the leading local mobile phone brand in the Philippines.

Mr. Ngu has always had a knack for business. After graduating from De La Salle University he ventured into marketing and selling international brands. Experiencing the challenges that came with trying to build up less-known foreign brands, he decided to develop his own line of Filipino-centric mobile handsets. “It was a passion. When I graduated from college mobile phones were just starting to grow big,” he recalls.

Mr. Ngu acknowledges it was a big risk.

“At the time we started, I don’t think anyone thought we would be number one in the Philippines,” he recounts.

“We just wanted a small pie of the market and challenge the big brands. It was difficult, because they’ve been here for more than 10 years.”

He set out to make Cherry Mobile an affordable phone for Filipinos, yet one that would be comparable to international brands.

“Everything was conceptualized in-house. We had to develop all the local content,” Mr. Ngu said. “Everything is done here except for the manufacturing. We are very particular, from the design all the way to when it’s manufactured.”

He said the software is customized for first-time smartphone users. “The heart and soul of the phone is more localized,” he said. “It’s not like an international phone where you need to set everything up. With our phones, you can turn it on and use it immediately.”

Cosmic Technologies based the design and software on local lifestyle needs, creating apps attuned to Filipino needs. It also applied local-centric thinking to hardware, like designing a charger that would be able to handle unstable electrical currents in the provinces without damage.

Cherry Mobile’s strengths are its availability in the market — whether in malls or street stalls — at competitive prices.

This approach deepens the firm’s insights into local needs and wants, enabling it to determine the next stage of product development.

Mr. Ngu recalled that, in 2012, his company was the first to introduce the Android Operating System, helping its models become the most popular in the market.

The company introduced innovations such as the first 3G Dual-Sim smartphone, the first Android tablet and the first LTE local brand smartphone.

One of the significant challenges that Mr. Ngu has had to address is after-sales service. “People think since we were a local brand, we wouldn’t have service centers or warranties,” he relates. “We made sure our service centers have a strong presence in every major city, as well as the secondary cities.”

All service centers are managed by Cherry Mobile. All software upgrades are done over the Internet, and so as long as users have connection, they can easily get updates.

Mr. Ngu’s vision is for every Filipino to own a smartphone. “The market in the Philippines is 50% smartphone and 50% basic phone,” he noted. “Probably everyone in Metro Manila is using a smartphone but people in the provinces may not even have basic phones.”

This untapped market is what drives Cherry Mobile forward to give people access to data.

Mr. Ngu realizes that people now consume data on their phones more than ever before.

He said Cherry Mobile has stayed on top by never being complacent and consistently monitoring market needs.

It now sees the Internet of things as the next phase, where devices will have the ability to share data among themselves through the network.

For now Cherry Mobile is investing in more applications. It now has its own movie streaming application to complement its handsets.

It is also looking at markets elsewhere in Southeast Asia.

Cherry Mobile was named “IT Company of the Year” by the CyberPress Awards in 2010. It won as “Top Selling Mobile Phone Brand” from Yugatech in 2013.

Consistent with his philosophy in running Cherry Mobile, Mr. Ngu advises aspiring entrepreneurs to be ready for anything.

“Never underestimate and don’t be complacent about anything. You’re not always on top. Especially in a fast changing industry, you never know what’s going to happen,” he advised.

The official airline of the Entrepreneur of the Year Philippines 2017 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. Banquet Sponsors are Bench, Bounty Fresh Food, Inc.; CDO Foodsphere; Fiori Di Marghi; Hyundai Asia Resources, Inc.; Jollibee Foods Corp., LBC, SteelAsia and Universal Harvester, Inc.

Winners of the Entrepreneur Of The Year Philippines 2017 will be announced on Oct. 18 in an awards banquet at the Makati Shangri-La hotel. The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2018 in Monte Carlo, Monaco in June 2018. The program is produced globally by Ernst & Young.

Gov’t fully awards 10-year T-bonds as rates drop

September 20, 2017 | 12:15 am

By Melissa Luz T. Lopez,
Senior Reporter

THE GOVERNMENT raised P15 billion worth of reissued 10-year Treasury bonds (T-bonds) yesterday on the back of strong market demand, which drove yields down despite some cautiousness ahead of a rate-setting meeting in the United States.

The Bureau of the Treasury yesterday made a full award of the reissued debt papers with a remaining life of nine years and seven months.

The offering was met by demand worth P26.287 billion, nearly twice the amount which the Treasury wanted to sell. The bonds were quoted at an average yield of 4.647%, down by 7.1 basis points from the 4.718% rate fetched when the notes were last offered on Aug. 22.

The average yield seen on Tuesday was likewise below the original 4.75% coupon rate attached to the papers which were first issued on May 4.

However, the rate was higher than the 4.585% quoted for the 10-year papers at the secondary market as of yesterday noon.

At the close of trading, the bonds fetched a yield of 4.6199%.

“It’s quite a good turnout for us. We’re getting support from our GSEDs (government securities eligible dealers),” Deputy Treasurer Erwin D. Sta. Ana told reporters after the auction yesterday, pointing out that there was improving bid efficiency with a narrower spread of interest rates sought by the players.

For the 10-year papers, GSEDs asked for yields ranging from 4.528-4.674%, roughly within expectations.

Mr. Sta. Ana attributed the tighter range to the Treasury’s enhanced GSED program, which is seen as a prelude to the government’s two-way quoting mechanism that would assign certain banks as market makers for future auctions.

According to a presentation uploaded on the Treasury’s Web site, market makers are expected to stand as liquidity providers and actively give bid and offer quotes to the regulator, which in turn is expected to “improve the performance” of the primary debt market while enhancing liquidity in the secondary market.

Sought for comment, a bond trader said bids for this week’s auctions came within “expected” levels, with the yields moving higher than market rates reflecting a wait-and-see stance taken by the investors ahead of key economic events that could direct the trajectory of yields.

“It’s more on the Fed this week that’s why market players are cautious. Surprisingly, the bonds were issued maybe because it’s still a comfortable level for the Bureau of the Treasury,” the trader said in a phone interview, although noting that bids received were good enough but not “impressive.”

For his part, Mr. Sta. Ana said the tighter range of tenders bodes well for the government’s reform plans for the local debt market.

“The ultimate objective of the Treasury is to introduce two-way quoting in the market. We wanted to promote market making, so we will be selecting select GSEDs that would be our market makers,” the Deputy Treasurer said. “This program is set to be rolled out in next months. We’re just finalizing the rules of the enhance GSED program.”

Q4 BORROWINGS
Meanwhile, Mr. Sta. Ana said the Treasury is yet to finalize the borrowing plan for the fourth quarter, but that the amount would not depart from current levels.

“We have consulted with the market already but we’re still on the drawing board. We’re not looking to veer away from the previous quarters. But of course, were factoring in where we are in terms of our receipts and disbursements in general,” Mr. Sta. Ana said, noting that the final figure will be revealed next week.

The government is looking to borrow as much as P195 billion from domestic sources this quarter by offering P105 billion worth of T-bills and P90 billion in Treasury bonds, higher than the P180 billion it wanted to raise during the second quarter.

For the entire year, the Treasury is looking to borrow up to P727.64 billion, higher than the P631.294-billion previously programmed to reflect the planned surge in public spending. A fifth of these loans will be sourced abroad, and will finance additional spending plans for infrastructure under the “Build, Build, Build” program of the Duterte administration.

Borrowings fund the country’s budget deficit, which in July stood at P50.5 billion, almost flat from the prior year’s P50.5 billion, as both revenue collections and expenditures increased.

For the first seven months of the year, the government’s fiscal position settled at a P205-billion deficit, higher than the previous year’s gap of P171 billion.

AGI sets P5B stock repurchase program

September 20, 2017 | 12:15 am

By Arra B. Francia, Reporter

ALLIANCE GLOBAL Group, Inc. (AGI) will be buying back its shares for up to P5 billion in the next two years in a bid to enhance shareholder value amid the company’s aggressive expansion program.

The holding firm of billionaire Andrew L. Tan said in a disclosure on Tuesday that its board of directors has approved the share buyback program, given the positive prospects for AGI.

“Our shares are hugely undervalued. We believe that the share buyback in the long term will create more value for the company,” AGI President Kingson U. Sian during the company’s annual shareholders’ meeting in Eastwood, Quezon City on Tuesday.

The company’s shares were valued at P15.04 apiece on Tuesday, up 28 centavos or 1.9% from the previous trading day. Its market capitalization, meanwhile, stood at around P151 billion.

This year, the company has allocated around P80 billion in capital spending, mainly for the expansion of Megaworld Corp.’s residential, office, and commercial establishments, the development of Resort World Manila’s third phase of expansion, the maintenance capex for Emperador, Inc., and the store rollout of Golden Arches Development Corp.

Megaworld is aiming to hit 2 million square meters in gross leasable space by 2020, from the current 1.1 million sq.m. This will double the property developer’s rental income to P20 billion by 2020, from the P16 billion recorded in 2016. The company is banking on the expansion of Philippine offshore gaming operators (POGO) in the country, which Mr. Sian said is seen as a subset of business process outsourcing (BPO) firms.

“As far as existing BPO (business process outsourcing) companies are concerned, they continue to expand, and we’re beneficiary of that expansion. Sixty percent is from expansion, 40% is from new players coming in… POGO came into the picture, that took up the vacuum that was left behind by new players coming in to the Philippines,” Megaworld Senior Vice-President for Business Development and Leasing Jericho P. Go told reporters in a press briefing after the shareholders’ meeting.

Travellers International Hotel Group, Inc., the operator of the country’s first integrated resort and casino Resorts World Manila (RWM), will also be completing the third phase of its expansion program in the first quarter of 2018. International hotel brands Hilton, Sheraton, and Maxims will be added to the new complex in the Bay Area by next year.

Mr. Sian noted the company is fast-tracking the completion of Phase 3 since the company is looking to augment the losses it incurred following the arson attack which left 37 people dead last June. Thirteen RWM employees and 24 guests died due to suffocation after a gunman stormed the casino and set gaming tables on fire before killing himself.

“Syempre may hit dun because of the clientele. That’s why we’re rushing the phase three. That should augment at least what we’ve lost on the second floor,” Mr. Sian said, adding that there’s a chance that Phase 3 may have its soft opening by late December.

The executive said the company lost 100 gaming tables and over 120 electronic gaming machines after the incident. Three months after, Mr. Sian said the company is starting to gain back its foot traffic, with 25,000 to 26,000 visiting the Resorts World Manila complex daily so far this month. Prior to the attack, RWM had an average of 28,000 daily foot traffic.

Meanwhile, Emperador does not expect to exceed its P7.69-billion profit in 2016.

Emperador Investor Relations head Kenneth V. Nerecina said recording higher earnings this year would be a challenge given the higher base in 2016. However, he noted the company expects a rebound in earnings in the second half.

“The challenge is beating the second half last year because that’s a high base. Historically the performance of Emperador is always better in the second half. 2016 net income was P7.7 billion, so you can do your own math or analysis… but against the second half of 2016 that might be a different story… Second half last year was P4.4 billion, and first half this year was down. So as I said earlier second half this year will be better than the first half, but beating the second half last year, I guess is the challenge,” he said.

In the first six months of 2017, Emperador saw a 21% drop in net income to P2.4 billion from the same period last year.

For the quick service restaurant segment, AGI said Golden Arches is targeting to open around 40 to 50 new McDonald’s stores this year.

“Definitely 40 to 50, depending on the availability of good location, the other one is the availability of a good partner in the case of a franchise situation. Those are two key ingredients for them, especially when they go outside Metro Manila,” Mr. Sian said.

Mr. Sian noted the long-term goal of reaching 1,000 McDonald’s stores would take “a few more years,” considering the plan is 40 to 50 stores annually.

“But if we can find the right location and a good partner, we can do it faster,” he added.

Golden Arches ended June with a total of 533 stores, against the 494 from the same period a year ago.

For the first half of 2017, AGI reported its net profit attributable to parent fell 8% to P6.7 billion, as revenues were flat at P66.8 billion.

PNOC asks Petron to address environmental issues before lease ends

September 20, 2017 | 12:14 am

By Victor V. Saulon, Sub-Editor

PHILIPPINE National Oil Co. (PNOC) renewed its call for Petron Corp. to submit plans on how it will address environmental issues ahead of the expiration of its lease contract for the state-owned firm’s properties around the country.

Reuben S. Lista, PNOC president and chief executive officer, told reporters on Tuesday that he sent a letter to Petron Corp. President and CEO Ramon S. Ang on Aug. 31, pointing out a previous request for the listed company to conduct environmental impact studies should it decide not to renew its lease.

“As you may very well be aware, the lease agreements will expire one year from the date of this writing,” Mr. Lista said in his letter to Mr. Ang. “For PNOC’s part, the decision to renew or not will have to be arrived at sooner considering the implications.”

Petron is leasing 24 PNOC properties as sites for bulk fuel plants, and 67 other lots for gasoline stations. The properties have an area ranging from 321 square meters (sq.m.) to almost 377,000 sq.m., interested lessees previously said. In all, the leased assets cover about 32.2 hectares.

The contract started about 24 years ago when Petron was still owned by PNOC. Petron has the right of first refusal over the properties, Mr. Lista said.

“I’m worried that they [Petron] may not be interested in renewing their contract,” Mr. Lista told reporters.

“They haven’t answered my two letters,” he said, referring to an earlier letter dated Feb. 6 addressed to Petron General Manager Lubin B. Nepomuceno. That letter requested Petron to submit remediation plans.

Mr. Lista also referred to a letter sent to Petron on Aug. 1, requesting the company to nullify certain provisions of the existing lease agreements that he said “pose a stumbling block before we can proceed to negotiate the renewal.”

He said provisions covering the service station and bulk plant properties state, among others, that: “In case the parties fail to come to an agreement, the same terms and conditions shall apply except the initial rental rate for the renewal period shall be the rental rate at the time of expiration plus two percent (2%) thereof and subsequent rental rate shall be escalating by two percent (2%) per annum.”

Mr. Lista said if the lessee decides to reduce the area of the leased property, the rentals would be reduced on a per sq.m. or per location basis.

He also noted the reduction of rental for each affected property would take effect on the succeeding month, after PNOC receives a written notice from the lessor.

“In the alternative scenario that Petron cannot waive the same, we would like to request that Petron already submit the remediation plans so that the abandonment and cleanup of the sites may already be discussed and the timeline for the implementation of the same be firmed up with the view of completing the same on or before the expiration of the lease agreement,” he said.

Mr. Lista said he recognizes Petron’s importance as the partner of the government in moving the nation forward.

“Whether we like it or not, Petron is contributing to the economy,” he said.

However, Mr. Lista is wary of the consequences in case of the renewal of the lease contract, which he described as “onerous, burdensome and disadvantageous to the government.”

He cited a legal opinion of the Office of the Solicitor General, saying PNOC would be in violation of Republic Act No. 3019 or Anti-Graft and Corrupt Practices Act should it comply with the terms in the present lease contract.

Peso climbs to one-week high ahead of Federal Reserve, BSP

September 20, 2017 | 12:14 am

THE PESO picked up versus the dollar for the second straight session yesterday to its best showing in over a week, benefiting from risk-on sentiment ahead of market-moving developments in the United States.

The local unit closed at P50.915 against the greenback on Tuesday, shaving 18.5 centavos from a P51.10 finish on Monday as it recovered late in the session.

The peso opened weaker at P51.15 against the greenback and hit P51.16 as its intraday low. However, it pared its losses and even touched P50.91 as its best showing before settling at the closing rate.

Two traders said the peso defied a general downtrend seen in other currencies versus the dollar, with the local unit gaining strength for the second straight session.

“The dollar-peso drove lower yesterday. This might be due to the risk-on environment ahead of the FOMC (Federal Open Market Committee) meeting, although it’s actually strange because dollar-Asia is not moving lower. This is just a peso move,” one trader said in a phone interview.

“This might be because the PSEi is reaching new highs. It went down from the highs [yesterday], but still stood above 8,000.”

The Fed was set to start its two-day monetary policy review later on Tuesday, which will soon be followed by the rate-setting meeting of the Bangko Sentral ng Pilipinas (BSP) on Thursday.

Ahead of these key decisions, market players are also closely watching US President Donald J. Trump’s speech before the United Nations (UN) late Tuesday, as any statement from the Republican leader could shake up tensions between his country and North Korea after a recent spate of missile launches from Pyongyang.

Back home, the bellwether Philippine Stock Exchange index snapped its three-day rally, closing at 8,162.70 after closing at 8,294.14 on Monday.

On the other hand, a second trader said some fund inflows may have also supported a stronger peso, as this bolstered demand for the local currency.

“There were inflows that came in. Also, I think market players took long positions before Trump’s speech. There’s a wait and see,” the trader added, noting that the BSP may have also intervened during the session to manage the currency’s movement later that day.

Dollars traded yesterday hit $740.2 million, rising from the $502.9 million that exchanged hands the previous day.

For Wednesday, the first trader said the peso may trade within P50.75-P51.10, noting that the peso could strengthen further with continued risk appetite towards emerging markets.

Meanwhile, the second trader expects a P50.90-P51.15 range for today, with trading to be influenced by Mr. Trump’s speech before the 193-member global body of the UN. — Melissa Luz T. Lopez

Toys ‘R’ Us stores in Asia unaffected by US retailer’s bankruptcy filing

September 20, 2017 | 12:13 am

THE Asian operations of Toys “R” Us will not be affected by the American toy retailer’s bankruptcy filing on Tuesday, according to the company.

In a statement issued on Tuesday, Toys “R” Us (Asia) Ltd. clarified it is a separate legal entity from Toys “R” Us, Inc., making it financially independent from all other Toys “R” Us operating firms globally.

Toys “R” Us (Asia) is a 85-15 joint venture of Toys “R” Us, Inc. and Fung Retailing Ltd. under the Fung Group, a privately held firm based in Hong Kong.

“Toys “R” Us (Asia) is open for business and continuing to serve our customers as we always do. We are a financially robust and self-funding retail operation, which continues to significantly grow and invest in this region,” the company’s President Andre Javes was quoted as saying in a statement.

“As the leading toy, baby and educational products retailer for children in Asia, we are very focused on delivering our full year results. Our teams are committed to excite our customers with unique and differentiated ranges, both online and a thrilling hands-on experience in store,” Mr. Javes added.

There are currently 226 Toys “R” Us stores spread out across Greater China and Southeast Asia, particularly in Brunei, Hong Kong, Malaysia, Singapore, Taiwan, and Thailand.

The toy retailer licenses a combined number of 35 stores in the Philippines and Macau. Gokongwei-led Robinsons Retail Holdings, Inc. is the operator of the brand locally.

“Every year we are opening new stores in all our markets and particularly in China where we now operate over 135 stores and will be opening another 22 in the coming weeks,” Mr. Javes said.

AFP reported Toys “R” Us filed for Chapter 11 bankruptcy protection in a US court, amid heavy debt and a tough environment for bricks and mortar stores.

The company will “restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents,” Toys “R” Us said in a statement late Monday.

It noted that operations outside the US and Canada, “including its approximately 255 licensed stores and joint venture partnership in Asia,” are not part of the bankruptcy proceedings. — Arra B. Francia with AFP

A winning bearish dollar bet: local currency emerging market bonds

September 20, 2017 | 12:13 am

NEW YORK — One of the best strategies to cash in on the dollar’s slide since Donald Trump’s election victory is a rather exotic one: buying local emerging market currency bonds.

Investors who doubted Trump could quickly deliver promised tax cuts, big spending and better trade deals — and by doing so boost the dollar — are now reaping handsome returns from their emerging markets (EM) investments while the dollar wades near 2-1/2-year lows.

Those investors also viewed as overdone fears that economies like Mexico would suffer from Trump’s protectionism and were buying during the post-election emerging markets sell-off.

“It was what he had to say to get elected, given his space and the people he was talking to,” said Federico Garcia Zamora, who manages the Dreyfus Emerging Markets Debt Local Currency Fund. “But it made no economic sense,” he said of Trump’s pledges to scrap the North American Free Trade Agreement, build a border wall with Mexico and slap tariffs on Mexican or Chinese products.

Between the Nov. 8 presidential election and its low point on Dec. 2, JP Morgan’s Emerging Market Global Bond Index fell 6%, Reuters data shows. Mexican bonds suffered the most, and the peso hit a record low.

“Our view was that (Trump‘s) economic threats were not credible,” Garcia said. Acting accordingly, he increased his holdings of peso-denominated Mexican bonds and the fund he manages has outperformed 90% of its peers so far this year, according to Morningstar Direct.

Investors generally favor emerging countries’ government debt issued in dollars because it eliminates the risk that their returns might get wiped out by swings in the local currency. Consequently, almost $332 billion were invested in those in mid-2017 compared to $137 billion in local currency bonds, according to research firm eVestment.

But those who stuck with the latter ended up with superior returns. So far this year, emerging market local currency bonds on the Bloomberg Barclays index have provided a total return of 13.48% compared to 7.77% for hard currency bonds. The US aggregate bond index has returned 3.40%.

WEAK DOLLAR BETS
All 20 of Morningstar’s top 20 highest performing emerging market funds this year have been local currency exclusive or overweight in local currency. Some of the best returns for multi-sector funds have been boosted by local currency bonds.

Reuters interviewed half of the 20 top performing funds’ managers and they are sticking with those bets, convinced that the dollar will remain weak. The dollar index is expected to end the year down more than 7%, its worst annual performance since the financial crisis, according to a recent Reuters poll of economists.

The dollar’s slide reflects both investors’ disappointment with the lack of progress on US economic policy and other central banks’ steps to end to their ultra-loose monetary policy, which made currencies like the euro become more attractive.

David Aniloff, portfolio manager for global fixed income strategies at asset manager SEI, said doubts about Trump’s agenda prompted him to gradually increase emerging markets allocations.

Aniloff said he had typically split his emerging market bond exposure 50/50 between hard and local currency bonds, but that split was most recently 65-35 in local currency bonds’ favor.

“We are about as large an overweight to EM local currency bonds and currencies as we have been in several years,” Aniloff said. SEI is among the best performing emerging market debt funds this year with data showing one fund beating 98% of its peers and another outperforming 97%.

Fund managers also say many emerging economies have bolstered their financial markets, making them more resilient during cyclical downturns and thus less risky than in the past.

“It’s a great opportunity to buy into emerging markets,” said Ricardo Adrogue, head of emerging markets debt at Barings.

Adrogue’s Emerging Markets Local Currency Debt Fund is up around 20% so far this year, beating 99% of its peers.

Kathleen Gaffney, co-manager of the Eaton Vance Multisector Income Fund, said the fund last held roughly a quarter of its assets in foreign securities. Non-US currency investments — including those in Mexican, Brazilian, Indian and Indonesian local currency bonds — accounted for half of the fund’s outperformance. The fund is beating 97% of funds in its peer group year-to-date, Morningstar’s data show.

“It’s the currencies that offer the most total return potential,” Gaffney said. — Reuters

Senate report on shabu to zero in on BoC

September 20, 2017 | 12:09 am

A PRELIMINARY report by the Senate blue ribbon committee is expected to be released today and would focus on charges to be filed against officials of the Bureau of Customs (BoC), the committee chairperson said on Tuesday, Sept. 19.

Senator Richard J. Gordon, committee chair, also threatened to subpoena a city judge for delaying the court proceedings on 890 kilos of shabu confiscated in San Juan in December 2016, which was reportedly one of the biggest haul by the National Bureau of Investigation.

This is apart from the 604 kilos worth P6.4 billion intercepted last May and which amount has been the main subject of the Senate inquiry.

“Ang papasok dito ngayon na kakasuhan sa report namin ‘yung mga Customs. Ang kinasuhan so far ‘yung mga nagpapasok. Ngayon, bukas lalabas, papaano nakapasok sa green lane,” Mr. Gordon said in an interview with the media after the hearing, the ninth inquiry into the P6.4-billion shabu shipment. (What will be included in the report are the charges that will be filed against Customs [officials]. The ones charged so far were those who facilitated the shipment. Tomorrow, it will be shown how the shipment got past the green lane.)

As for the now-resigned Bureau of Customs (BoC) chief Nicanor E. Faeldon, who is currently detained at the Senate for contempt, Mr. Gordon said his case will be tackled in the Senate inquiry next Monday, Sept. 25.

“Wala naman akong kailangan sa kanya. Wala namang nagtuturo na siya ‘yung gumawa. Si Ping lang. Susunod na kabanata na ‘yun,” Mr. Gordon said, referring to Senator Panfilo M. Lacson. (I don’t need anything from him. Nobody implicated him. Only Ping. That’s the next chapter.)

To recall, Mr. Lacson delivered a privileged speech on Aug. 23 linking Mr. Faeldon to the network of corruption at the BoC

The preliminary report will not also cover presidential son and Davao Vice-Mayor Paolo Z. Duterte who had been also linked, together with brother-in-law Manases R. Carpio, to a so-called Davao Group benefiting from the drug trade.

“He was not able to say anything when the people were here,” Mr. Gordon said, referring to the main accuser of the Dutertes, opposition Senator Antonio F. Trillanes IV.

“The minority was there and they said they can go home so we were not able to get anything that will be in the report,” Mr. Gordon added.

Messrs. Duterte and Carpio, husband of incumbent Davao Mayor Sara Duterte-Carpio, appeared before the committee on Sept. 7 where Mr. Trillanes boldly accused Mr. Duterte of being a member of an international triad.

Since certain personalities vaguely referred to but not properly identified at the hearing have yet to be located, Mr. Gordon said the committee would continue its investigation after the preliminary report.

“Pinapahuli ko yung Tong Yen Pin, babae yun. ‘Yun ang connect dun sa China. Siya yung nag-asikaso,” Mr. Gordon said. (I’m having Tong Yen Pin, a woman, apprehended. She’s the connection in China. She’s the one who worked on the shipment.)

“Tita Nani,” as referred to by broker Mark Ruben G. Taguba II, has also yet to be identified. Mr. Taguba claims she was the person who facilitated a meeting between himself and Davao Councilor Nilo “Small” Abellera, Jr. and Gen. Allen A. Capuyan, who are both alleged to be part of the Davao Group.

Mr. Gordon also threatened to subpoena San Juan City Judge Jovencio Gascon for delaying the court proceedings on the 890 kilograms of shabu seized in San Juan.

“He is violating the law. The SC should file charges against him,” the senator said.

Mr. Lacson, for his part, said: “Maliwanag kasi ang batas. May specific timelines na susundin kung saan patungo sa pag-destroy by burning. So kung December pa na-seize sa San Juan at hanggang ngayon di pa destroyed at matagal nang filed sa court, may problema talaga sa judge kung papakinggan natin sinabi ng DoJ na sumulat pa sila sa huwes at hanggang ngayon hindi pa sila nag-utos. Kasi 72 hours ang ocular inspection, then within 24 hours kailangan sunugin na ng PDEA yun.” (The law is clear. There are specific timelines to follow in the course of destroying illegal drugs by burning them. So if the drugs were seized in December yet, in San Juan, and this has not yet been destroyed and a case has long been filed in court, there is really a problem with the judge, if we go by what the DoJ said, that it even wrote the court about the matter and there has been no court order, in response. Because the ocular inspection takes 72 hours, then within 24 hours the drugs should be destroyed by PDEA [Philippine Drug Enforcement Agency].)

Taking his turn to address the committee, Justice Secretary Vitaliano N. Aguirre II said he even raised that matter to Chief Justice Maria Lourdes P.A. Sereno.

Mr. Aguirre also pointed out that if Mr. Gordon pursues his intention to subpoena Mr. Gascon, this may lead to a “mini-constitutional crisis.”

Mr. Aguirre also noted that a hearing on the 890 kilos of shabu should have resumed on July 18 but this has been delayed until now because Mr. Gascon had been ill. — Mario M. Banzon

Lawyer groups flag House of Representatives’ use of ‘terrible powers’

September 20, 2017 | 12:08 am

TWO LAWYER GROUPS — the Philippine Bar Association, Inc. (PBA) and the Integrated Bar of the Philippines (IBP) — yesterday raised concern on the apparent frequent use of what it called “terrible powers” of the House of Representatives, such as impeachment and slashing the budget of government agencies.

“There has never been a time where, in a matter of a few days, the House of Representatives has chosen to exercise not one, but two (2) of its most terrible powers: Impeachment and Defunding,” the PBA said in a statement.

The IBP, meanwhile, said: “While impeachment is by and large a political exercise, it should be used sparingly and only in the gravest of instances. The frequency and rate of these impeachment initiatives dilutes its power, strains the limited resources of Congress and, presents troubling questions whether like any other device, impeachment is being wielded wisely or carelessly.”

The IBP described impeachment as “a scalpel, not a broadsword and, even if it were the latter, no sword retains its sharpness if swung too far, and too often.”

Recently, 16 lawmakers endorsed the impeachment complaint filed by lawyer Lorenzo “Larry” G. Gadon against Chief Justice Ma. Lourdes P.A. Sereno, and the case can now be referred to the House justice committee.

Mr. Gadon filed the impeachment complaint against Ms. Sereno in August on the grounds of betrayal of public trust, citing her “lavish” lifestyle after approving the Supreme Court’s purchase of a luxurious Toyota Land Cruiser worth more than P5 million for her use, and culpable violation of the Constitution for failing to disclose in her Statement of Assets, Liabilities, and Net Worth P37 million in lawyer’s fee.

The impeachment complaint against Commission on Elections (Comelec) chief Juan Andres D. Bautista has also been endorsed, while those against Vice-President Maria Leonor G. Robredo and Ombudsman Conchita Carpio-Morales have no endorsers so far. The case against President Rodrigo R. Duterte has been junked.

Last Thursday, the Makati Business Club also flagged “the unprecedented number of impeachment complaints lodged against high-ranking officials, from the President, the Supreme Court Chief Justice, the Ombudsman and the COMELEC.”

The PBA, the oldest voluntary national organization of lawyers in the country, viewed impeachment as something that “scorches the earth.”

“By design it is meant to be disruptive and burdensome. The Constitution envisions that it is only to be used for the gravest of sins, and the most urgent of instances,” the group said.

The IBP, the official organization of all Philippine lawyers, also said: “May we express the hope that impeachment as a process is not being brandished as a weapon of submission, thereby defeating Constitutional design that the judicial branch be insulated from considerations other than the facts and the law in discharging its function of adjudication.”

“It is an assault upon the Constitution and the very ideal of limited government that is enshrined in it, when impeachment is misused as the very tool to undermine judicial independence,” IBP said.

BUDGET SLASH
On the ludicrous P1,000 budget granted to several agencies, including the Commission on Human Rights (CHR), the PBA said: “Defunding a Commission, department or agency is not by any means subtler. It is accountability by paralysis — holding hostage entire bureaucracies, and more importantly, depriving the public of the services they have paid for.”

“Thus, we urge Congress to take pause and consider whether the successive and frequent use of its terrible powers is a means to strengthen or weaken institutions. The former upholds the Constitution, the latter threatens its existence,” PBA said.

BusinessWorld sought several congressmen for comment, but had yet to receive a response as of early Tuesday night. — Rosemarie A. Zamora

Police chief asks Davao cops to ‘volunteer’ for Caloocan posting

September 20, 2017 | 12:07 am

POLICE DIRECTOR General Ronald M. dela Rosa is eyeing members of the Davao Region police for reassignment in Metro Manila, particularly in Caloocan City, where the entire police force was sacked last week except for the newly appointed head and his deputy. In a visit to Camp Catitipan in Davao City last Monday, Mr. Dela Rosa said he does not intend to force the transfers and wants “volunteers” so that “it will be in their goodwill to do the jobs.” The entire Caloocan police force of about 1,000 was relieved following controversies on the murders of teenagers Kian delos Santos and Carl Angelo Arnaiz as well as break-ins and robberies involving cops. Mr. Dela Rosa, who served as Davao City police chief when President Rodrigo R. Duterte was mayor, said he is confident that “if a Davao police (officer) will be assigned (in Caloocan), he or she will not do any mess.” — Carmelito Q. Francisco

Knights conquer Chiefs

September 20, 2017 | 12:07 am

By Michael Angelo S. Murillo
Reporter

THE Letran Knights returned to winning yesterday while boosting its spot in the top four of Season 93 of the National Collegiate Athletic Association (NCAA) by beating the Arellano Chiefs, 84-73, in league action at the FilOil Flying V Centre in San Juan City.

Dropped their three previous games, the Knights stopped the bleeding with a convincing victory over the Chiefs which saw them holding sway for much of the contest.

Earlier in the day, the Emilio Aguinaldo College (EAC) Generals used a late-game charge to upend the Jose Rizal University (JRU) Heavy Bombers, 88-84, to improve to 6-6, good for fourth spot.

Letran built a 26-20 lead at the end of the first quarter before adding on it in the second quarter behind veteran Bong Quinto and Rey Nambatac to take a 45-36 advantage halfway into the game.

The Knights showed no letup as the third frame began, outscoring the Chiefs, 13-6, in the first five minutes to build their biggest lead of 16 points, 58-42.

Arellano tried to narrow the gap but Letran would maintain some safe distance, 68-59 at the end of the period.

The fourth quarter started slow for both protagonists, fighting to a 72-62 affair with five minutes remaining.

The Chiefs, however, would go on an 11-7 run to cut their deficit to just six points, 79-73, with 40 seconds to go.

A three-pointer from Letran guard JP Calvo with 17 ticks on the clock would prove to be the end for Arellano in the game as the Knights sealed the win.

Quinto had 20 points and 10 rebounds for the Knights with Calvo also adding 20 markers. Nambatac had 14.

Kent Salado, meanwhile, led the Chiefs with 23 markers. With the loss, Arellano fell to 4-8.

GENERALS WIN
In the first game, meanwhile, the Ermita-based Generals outsteadied the Bombers to claim a big win to give their NCAA Season 93 campaign further wind.

EAC struggled in the middle quarters but mustered enough poise and confidence in the end to get the better of JRU.

The Generals seized control of the contest in the first period, taking a slim 24-22 advantage.

In the second quarter, however, the Bombers would make their move to create some distance, establishing a 10-point cushion, 37-27, with less than three minutes remaining.

EAC though would make a mini-run thereafter to cut JRU’s lead to a manageable level, 39-36, by the halftime break.

The Bombers continued to dominate to start the third quarter, stretching their lead to as much as 12 points more than halfway into the frame.

But like in the second quarter, the Generals would make a late run behind Sidney Onwubere, to stay within reach of the Bombers, 61-57.

The teams went back-and-forth to begin the final quarter.

JRU had a five-point separation, 74-69, at the five-minute mark of the game before EAC went on a 6-3 run in the next two minutes to cut it to two points, 77-75.

Guard Jed Mendoza gave JRU some breathing space with a three-point play only to be answered by EAC with six straight points to overtake the Bombers, 81-80, with 1:24 remaining.

Onwubere then drained a three-pointer with 57.4 seconds to go to add to their lead, 84-80.

The Generals extended it to five, 86-81, and just staved off the attempts of JRU to turn things around the rest of the way to claim the victory.

Onwubere led EAC with 28 points, 16 coming in the second half, to go along with eight rebounds.

Jerome Garcia had 16 while Philip Tampoc and Jeric Diego each had 11 markers.

For JRU, which dropped to 7-5, still at third place, it was Jed Mendoza who top-scored with 22 points with TeyTey Teodoro adding 18 and Ervin Grospe 15 points.

Nissan enhances the X-Trail

September 20, 2017 | 12:06 am

Text and photos by Aries B. Espinosa

FOR a compact crossover that has employed the latest in automotive technologies to spot things a driver cannot while behind the wheel, only unforeseen forces would have effectively thwarted its grand coming-out party. On Sept. 12, an “act of God” (in the form of a “surprise” tropical depression) almost did.

But Nissan Motor Philippines’ (NPI) resolve was stronger. Coupled with the improving weather conditions as the day wore on, the launch of the enhanced version of the Nissan X-Trail pushed through as planned.

Nissan enhances the X-Trail — The top-spec X-Trail 4×4 comes in the Premium Corona Orange paint job.

And for guests who braved the flooded streets of Metro Manila, the reveal was well worth it, as NPI greeted them with the hot-looking upgraded X-Trail that greatly improves upon the design DNA of the third-generation SUV launched locally three years ago (and face-lifted just this June), and now infused with the Nissan Intelligent Mobility technology for an even safer drive.

NPI displayed four variants of the new X-Trail, which come in 4×4 and 4×2 versions. But the one that literally took the center stage was the 2.5-liter 4×4 CVT variant painted in Premium Corona Orange, which boasts of a new front fascia with integrated fog lamps, bumper, the signature Nissan “V-Motion” grille, revised head lights with LED daytime running lamps, new 19-inch wheels, fin-type antenna, and a newly integrated sun roof to round off this compact crossover’s dynamic look.

In the spacious interior, more enhancements could be found, such as new door and instrument panel finishers, a redesigned shift knob, and a revised center console. Noticeable as well is the new D-shaped steering wheel with a modernized interface.

Guests also had a kick — quite literally — out of the motion-activated tailgate, which allows drivers who have their hands full to open the rear compartment by swinging a leg under the rear bumper to activate the hatch sensor.

What NPI intended to highlight in equal measure, however, was the Nissan Intelligent Mobility technologies that have now been introduced in the country via this X-Trail launch. In the new X-Trail, the trademarks of the Nissan Intelligent Mobility include an around-view monitor that provides drivers with a 360-degree perspective; moving object detection that sends a visual and audible alert when there are movements around the vehicle; blind spot warning that detects objects in the driver’s blind spot; forward collision warning and intelligent emergency braking that send a visual and auditory warning and apply the emergency brake to avoid collisions; rear cross traffic alert that alerts the driver of unseen vehicles while reversing; and the 4×4-I System that automatically adjusts power distribution to give drivers full control of the vehicle as they take on challenging road conditions.

NPI President and Managing Director Ramesh Narasimhan remarked of the X-Trail: “With Nissan Intelligent Mobility, our customers can enjoy each adventure as they drive safe and sound. We want them to treat the new X-Trail as a partner that looks out for them so they can have a fun and hassle-free time on the road.”

Prices of the upgraded X-Trail start at P1.399 million, with the top-spec 2.5-liter 4×4 CVT costing P1.728 million.

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