OECD finds Philippines ‘largely compliant’ with standards vs tax fraud

July 18, 2018 | 12:31 am

THE PHILIPPINES is “largely compliant” with international frameworks against tax fraud, according to the latest review of the Organization for Economic Cooperation and Development (OECD), even as it cited areas of concern.
“This second-round report concludes that the Philippines is rated largely compliant overall,” which was the same rating in the 2013 first-round report, according to the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes: The Philippines 2018 (Second Round) report published on Tuesday.
During the April 2014-March 2017 review period, the Philippines received 78 exchange of information (EoI) requests from 14 treaty partners and sent 14 EoI requests to seven partners.
“Status updates were provided in 100% of cases not receiving a complete response in 90 days. The Philippines provided complete responses to EoI partner requests in only 53% of cases within 180 days of receipt, while 25% of cases took more than a year to receive a complete response.”
The Philippines was rated “largely compliant” in terms of availability of accounting information (from “partially compliant” in 2013), rights and safeguards in terms of access to information (from “compliant”), EoI on request (EOIR) mechanisms, as well as in quality and timeliness of responses.
It is also “compliant” in terms of availability of banking information, access to information by authorities, network of EOIR mechanisms, confidentiality, rights and safeguards in terms of exchanging information.
However, it was only “partially compliant” in the availability of ownership and identity information, down from being “largely compliant in 2013.
The multilateral framework on tax transparency and exchange of information has been adopted by over 145 jurisdictions that participate in the Global Forum through peer reviews.
Such reviews focus on availability of ownership, accounting and banking information; access to information by competent authority; and exchanging information mechanisms — whether they are in place and compliant, or otherwise.
The first-round review assessed legal and regulatory frameworks while the second round checked EOIR in practice.
The previous review in 2013 found that the Philippines had “issues” in availability of information for relevant legal persons and arrangements, ensuring all of the Philippines’ exchange of information (EoI) assessments were in line with international standards, as well as timeliness of responses to EoI requests.
“Since the last review, the Philippines has addressed several of these recommendations by requiring resident agents of foreign companies to obtain legal ownership information; extending the requirement for taxpayers to maintain accounting records to 10 years; working to renegotiate or add protocols to existing DTCs (double tax conventions) to bring them in line with the standard; and providing status updates to treaty partners on outstanding requests,” OECD said.
“Despite attempts to introduce operational efficiencies and increase resources to the EoI unit, the overall efficiency of the EoI practice during the period under review remained lagging. The time taken to provide substantive responses to requests remains slow and does not ensure effective EoI in all cases, as confirmed by peers,” it added.
The report also noted that although the scope of the attorney-client privilege of non-disclosure of tax information is “potentially broader,” the proper use of such of such privilege “remains uncertain and should be monitored.”
It also said that the Philippines should ensure that notification procedures with account holders are followed, as regulations allow a 60-day delay in notifying the depositor after the full information has been actually exchanged.
“Although the Philippines signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in 2014, the instrument still has not yet been ratified, preventing the Philippines from having EO relationships with a large number of jurisdictions party to the convention,” the report read.
The report recommended steps for the Philippines to improve compliance, including: ensuring the availability of beneficial ownership information; setting up of an effective monitoring program to ensure relevant designated non-financial businesses are adequately supervised regarding customer due diligence requirements under the anti-money laundering (AML) act; ensuring that AML-covered persons know how to properly apply identification and verification measures to obtain beneficial ownership information; monitoring suspended companies and implement supervision programs; ensuring accounting records are available for all relevant entities including suspended companies; monitoring the practical application of legal professional privilege; ensuring that there is an exception from time-specific, post-exchange notification that would allow it to not notify the account holder in cases where notification is unlikely to undermine the chance of success of the investigation on reasonable grounds; and working expeditiously to ratify the multilateral Convention on the Mutual Administrative Assistance in Tax Matters. — Elijah Joseph C. Tubayan

Regulators start monitoring crypto assets, though no major risk for now

July 18, 2018 | 12:30 am

LONDON — Global regulators have published a framework for “vigilantly” monitoring risks from crypto assets like bitcoin and ether, even though they don’t pose a major risk to financial stability for now.
Wild swings in crypto asset prices have prompted central bankers worldwide to warn investors that they could lose every penny.
It is unclear at times which financial rules, if any, apply to the sector or if there is legal authority to regulate it.
Start ups have begun issuing new digital currencies via initial coin offerings (ICOs), raising concern among regulators over investor protection.
The aim of the new framework is to spot any financial stability risks early enough to take action.
The Financial Stability Board (FSB), which coordinates financial regulation for the Group of 20 Economies (G20), said the framework focuses on how risks from crypto asset markets could spread to other parts of the financial system.
“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall,” the FSB said in a statement on Monday. “The use of leverage, and financial institution exposures to crypto-asset markets are important metrics of transmission of crypto-asset risks to the broader financial system.”
The aim of the new framework is to spot any financial stability risks early enough to take action.
But the FSB cautioned that data is still patchy at times in a rapidly developing market that can be fragmented and opaque. It will assess whether the framework will need extra data at a later stage.
Moves to formally monitor the sector forms part of a compromise in March between G20 members like France, who wanted more radical action, and other countries who preferred treading lightly for now.
The FSB framework also includes trading volumes, pricing, clearing and margining for derivatives linked to crypto assets, such as the bitcoin futures launched by CME Group last December.
Crypto assets in general and crypto asset trading platforms do not pose global financial stability risks, but they raise other significant concerns, including consumer and investor protection, market integrity and money laundering/terrorism financing, the FSB said.
It said its affiliate, the Basel Committee, which writes bank capital standards, is conducting an “initial stocktake” of banks’ exposures to crypto assets. The committee is also looking at whether regulators are forcing lenders to set aside capital against holdings of crypto assets, and considering whether to rewrite its rules to explicitly require such holdings to be covered. — Reuters

Awit ng barkada

July 18, 2018 | 12:07 am

THE popularity of jukebox musicals featuring the songs of a well-known performer (think Mamma Mia! and Rock of Ages) shows no sign of waning, particularly in the Philippines. While PETA has Rak of Aegis and Resorts World Manila has Eraserhead’s Ang Huling El Bimbo, 9 Works Theatrical and Globe Live join in the musical fun with Eto na! Musikal nAPO!, which pays tribute to yet another local music icon, the APO Hiking Society.
“This is all Boboy [Garrovillo]’s fault,” said the musical’s writer and director Robbie Guevara during the media launch on June 26 when explaining why and how the idea of the musical came about.
Back in 2003, when the two worked together in the comedy Erectile Dysfunction, during breaks, Mr. Garrovillo would regale him with stories about how APO started as a band.
“And I knew that’s what I wanted the musical to be about,” said Mr. Guevara. Ten years later they met again and, as Mr. Guevara explained, “Boboy told me casually: ‘You know what, you should do a musical of our songs’.”
The rest, as they say, is history.
Going on stage at the Globe Auditorium, Maybank Performing Arts Theater in BGC from Aug. 3 to 26, Eto na! Musikal nAPO! is a romantic comedy and a coming of age story about the seven friends who originally composed the APO Hiking Society. The story is set in 1975 and details how they joined a songwriting and singing contest in college. It follows their school dilemmas, their personal problems (parents, girlfriends, heartaches), and how the political turmoil of Martial Law affects their journey.
The play has undergone many revisions — 21 versions as of this writing — through the years. The original version was 70% English while the latest version is 80% Filipino. Mr. Guevara said that he did not want to touch politics at first, but after many readings with the artistic team and consultations with the members of APO Hiking Society, he said it couldn’t be helped.
“Danny [Javier of APO] said it’s an un-ignorable circumstance at that time and suggested I include it in the story. I hope the people are reminded of what happened, and I hope they hate the Marcoses more after the show,” said Mr. Guevara.
The play features re-arrangements of iconic APO Hiking Society songs into more “theatricalized” versions done by musical director Daniel Bartolome.
“I personally wouldn’t want to touch the original arrangements. The songs are already perfect as they are,” said Mr. Bartolome in a statement. “But considering that it would be used in a musical, changes have to be made. Because it’s not going to be staged as a concert, but with a story. The music is part of the storytelling. I carefully chose which to omit, which to keep, and which to change to best serve the staging or the scene.”
Some of the hit songs included in the play are “Awit ng Barkada,” “Panalangin,” “Batang Bata Ka Pa,” “When I Met You,” “Mahirap Magmahal ng Syota ng Iba,” “Blue Jeans,” and “Bawat Bata,” among others.
The seven college friends are played by Mark Bautista, Jef Flores, Jon Philippe Go, Jobim Javier, Alfritz Blanche, Jon Abella, and Vyen Villanueva. Also in the cast are Rita Daniela, Marika Sasaki, Sab Jose, Raul Montesa, and Noemi Gonzales.
Eto na! Musikal nAPO! is written and directed by Robbie Guevara, with dramaturgy by Jonjon Martin, choreography by PJ Rebullida, lighting design by Shakira Villa Symes, set design by Joey Mendoza, costume design by Eric Pineda, technical direction by Dong Calingacion, sound design by Rards Corpus, and hair and makeup by Myrene Santos.
Apart from doing Broadway and English plays such as Disney’s Newsies and American Idiot, the executive producer of 9 Works Theatrical Santi Santamaria said it is part of the company’s advocacy to do original Filipino plays, which they started with Himala, Isang Musikal, done with its sister company Sandbox Collective, in February.
For tickets log on to Ticketworld, www.ticketworld.com.ph. — Nickky Faustine P. de Guzman

Tam-Awan: Celebrating the Cordillera arts for 20 years

July 18, 2018 | 12:06 am

*CORDILLERA IN MY MIND* by Jojo Emelda, acrylic on canvas, 24 x 24, in 2018 — *NICKKY FAUSTINE P. DE GUZMAN*

BAGUIO’s Tam-Awan Village is celebrating its 20^th anniversary with a travelling art exhibition featuring artists it has worked with through the years. Naturally, some of the subjects are about nature, the culture of the Cordillera, and the indigenous peoples and their artefacts like a native bag or bracelet.
The ongoing exhibition is called Tam-Awan @ 20: Celebrating Two Decades of Unwavering Passion for Culture and the Arts, and its last stop is at The Bellevue Manila in Alabang. It is on view at the hotel until Aug. 3.
Before settling at the hotel, the traveling exhibition made stops at the Ayala Museum’s AristSpace, SM City Baguio, and its home base, the Tam-Awan Village, a sanctuary in Baguio City that is made to resemble a traditional Cordillera village in order to preserve the Ifugao houses where art exhibits, workshops, and live cultural showcases happen.
The participating artists come from all over the country — what holds them together is that they have worked with Tam-Awan Village. Some of the artists are indigenous peoples from the north like the Kankanaey, Ibaloi, Bontoc, Ibalan, Ifugao, and Balangaw.
The Chanum Foundation Inc. came up with the idea of the Tam-Awan Village in 1998. Chanum — an Ibaloi word that means “water” — aims to promote and preserve the environment and cultural heritage of the Cordillera.
Now a popular tourist destination, Tam-Awan Village is also a hub for art enthusiasts where they can exchange skills and ideas, and understand indigenous customs. It also has a café and original Cordillera huts for lodging, which cater to tourists and workshop participants.
Currently, the Tam-Awan Village has 15 to 20 member artists with the youngest being 19 years old.
“The legacy of Tam-Awan Village really is the art wokshops, particularly those for the youth,” said Jordan Mang-osan, president of Tam-awan Artist Group and Chanum Foundation, in the vernacular. “We want to show and highlight the unique culture of the Cordillera through arts and to help the young generation of artists. At Tam-Awan, the arts converge and converse,” the artist told BusinessWorld at the exhibition’s launch on July 6.
Last year, Baguio became the first Philippine city to join the United Nations Educational, Scientific, and Cultural Organization (UNESCO) Creative Cities Network under the crafts and folk art category.
Besides Tam-Awan Village, Baguio has many art spots, museums, and galleries like the BenCab Museum, Pasa-Kalye Artists, and the Ili-likha Artists Village, among others.
Ten years before there was Tam-Awan Village, artists Kidlat Tahimik, Luisa Igloria, Tommy Hafalla, Santiago Bose, Roberto Villanueva, National Artist Benedicto “BenCab” Cabrera, David Baradas, and Willie Magtibay founded the Baguio Arts Guild, which made Baguio City an art hotspot. Mr. Cabrera pioneered the artists’ village in Tam-Awan and mentored the artists there.
Mr. Mang-osan said among the biggest setbacks the village has had in the past two decades were weather disturbances and landslides. “We felt like the Village will never be rebuilt, but we did it. It is not a hindrance for the Village,” he said. — Nickky Faustine P. de Guzman

DoTr recommends to MIAA award of OPS to NAIA rehab consortium

July 18, 2018 | 12:06 am

THE DoTr has recommended the approval of the NAIA consortium’s NAIA plan. — *BW FILE PHOTO*

By Denise A. Valdez
THE MANILA International Airport Authority (MIAA) has received a recommendation from the Department of Transportation (DoTr) to accept the unsolicited proposal of the consortium of seven conglomerates to rehabilitate the Ninoy Aquino International Airport (NAIA).
“Natanggap ho namin ang letter from DoTr giving us notice to adopt the proposal. Yan po ay dadaan sa Board. Ang Board ay magcoconvene sa Huwebes at yan ay tatalakayin namin sa Board (We have received a letter from the DoTr to adopt the proposal (of the NAIA consortium). That will have to go through the (MIAA) Board. The Board will convene on Thursday to discuss the letter),” MIAA General Manager Ed V. Monreal said in a briefing in Clark on Tuesday.
Transportation Secretary Arthur P. Tugade said in the same briefing they forwarded the decision drafted by the DoTr Planning Division to MIAA as the primary agency in charge of NAIA.
“Binigay namin sa MIAA yung recommendation to give an original proponent status on the project. Final na ba yun? Hindi po. Kasi kailangan aprubahan ng Board of Directors ng MIAA (We gave to MIAA the recommendation to give the original proponent status on the project. Is it final? No. Because the MIAA Board of Directors still has to approve it),” he said.
Mr. Monreal said if the board approves the proposal, it will again be forwarded to the DoTr which will then refer it to the National Economic and Development Authority’s Investment Coordination Committee.
The unsolicited proposal of the consortium is to rehabilitate the congested Manila gateway within a 15-year period for the cost of P105 billion to P106 billion.
The original version of its proposal was for a 35-year, P350-billion concession that covers the construction of a third runway. DoTr Undersecretary for Aviation Manuel Antonio L. Tamayo told reporters in May it was adjusted in accordance with government requests.
The NAIA consortium consists of seven of the country’s top conglomerates: Aboitiz InfraCapital, Inc.; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc. and Metro Pacific Investments Corp.
Its technical partner for the project is Singapore’s Changi Airports International Private Ltd.
Also vying to be the government’s concessionaire for the NAIA rehabilitation is the tandem of Megawide Construction Corp. and Indian company GMR Infrastructure Ltd., which submitted a $3-billion, 18-year unsolicited proposal after the consortium.
But DoTr Undersecretary for Planning Ruben S. Reinoso, Jr. told reporters the Megawide proposal would have to remain on hold “until the proposal of the consortium is rejected, because that is what the law says.”
If the NAIA consortium is granted the original proponent status (OPS) for the rehabilitation project, its proposal will be subjected to a Swiss challenge, under which third party companies may try to match it. However, it will have the privilege to counter contending proposals as it holds the OPS.
The Manila airport recorded a total of 42 million passengers handled in 2017, which is way more than its capacity of handling only 30.5 million people a year.

Want an Amorsolo but don’t have P46 million lying around? Then go to Rustan’s

July 18, 2018 | 12:05 am

WANT an Amorsolo for your home but don’t have the millions to spare for an original? How about an Amorsolo on a plate instead? Rustan’s in partnership with the Amorsolo family has launched a limited-edition home collection inspired by National Artist for Painting Fernardo Amorsolo’s works.
“Papa made thousands of paintings so we chose paintings that show the customs and traditions of the Philippines — something he’s well-known for — and those with his trademark lighting. There were so many so we chose the best,” Sylvia Amorsolo Lazo, Mr. Amorsolo’s daughter, told BusinessWorld during the launch of the home line on June 26 at Rustan’s Makati.
The home collection comes a year after Rustan’s re-launched Amorsolo: Love and Passion, a coffee table book in celebration of the artist’s 125^th birthday, co-authored by Ms. Amorsolo Lazo.
“[P]eople still want to have his work. This is good because while most people can’t get an Amorsolo because of its value, some of his works are now in a form of merchandise everyone can get,” she said.
Fernardo Amorsolo was named the country’s first National Artist for Painting in 1972. Known for his illuminated landscapes and depictions of rural life, Mr. Amorsolo was also called the “Grand Old Man of Philippine Art.”
Some of his famous works include Rice Planting (1922) which became one of the most popular images in the Philippines. Most recently, his The Peracampos Amorsolo (Under the Mango Tree), created in 1939, fetched P46,720,000 (including buyer’s premium) at Leon Gallery’s Spectacular Midyear Auction 2018, a world record for the artist.
“It’s good for the young ones to see what Papa had done before and why he was called a National Artist,” Ms. Amorsolo Lazo said.
For this collaboration with Rustan’s, three of Amorsolo’s works are featured in the line which includes T-shirts, coasters, and limited edition 13-inch plates. These works are Harvesting (1951), Planting Rice (1954), and Under the Mango Tree (1939).
The plates come in limited editions of 300 pieces of each painting. The plates cost P8,950.
Aside from paintings, Mr. Amorsolo’s signature is emblazoned on merchandise such as canvas tote bags, cushions, and pouches.
“It’s a tribute to the legacy and culture of the Filipinos,” Dina Arroyo-Tantoco, marketing communications manager for Rustan’s Commercial Corp., told BusinessWorld shortly before the event.
This isn’t the first time Rustan’s has collaborated with an artist (or their family). Last year, the company partnered with Benedicto “BenCab” Cabrera, another National Artist for Painting, to introduce a line of home goods bearing his signature and works. — Zsarlene B. Chua

STI Holdings’ attributable profit drops 10% on interest expenses

July 18, 2018 | 12:05 am

STI Education Systems Holdings, Inc. (STI Holdings) saw its attributable profit drop by 10% in its fiscal year ending March 2018, weighed down by interest expenses due to its bond issuance.
In a regulatory filing, the listed firm reported a net income attributable to equity holders of the parent of P496 million for the year ending March, lower than the P550.2 million it booked in the same period a year ago.
STI Holdings’ fiscal year from April to March follows that of the academic cycle in the Philippines, since it derives majority of its income from education services.
The owner of among the country’s largest networks of private schools attributed the decline to the increase in interest expenses.
“Interest expenses on loans increased by 177% or P140.2 million year-on-year mainly due to interest incurred on the STI Education Services Group, Inc.’s (STI ESG) bond issue charged to expense,” the company said.
STI ESG raised P3 billion last March 2017 from the issuance of fixed rate bonds, consisting of seven-year bonds due 2024 with a coupon rate of 5.8085% per annum, and 10-year bonds due 2027 at 6.3756% annually. The bonds are listed at the Philippine Dealing and Exchange Corp.
The funds raised from the bond issuance were used to finance the expansion of STI ESG’s campuses, refinance short-term loans, and for other general corporate requirements.
STI ESG can issue up to P2 billion worth of bonds until 2019, as per its three-year shelf registration program with the Securities and Exchange Commission worth up to P5 billion.
In terms of revenues, the company was able to breach the P3-billion mark for the first time this year, inching up 5% to P3.08 billion, versus the P2.93 billion it generated in the same period last year.
The revenue growth was thanks to the continued increase in the number of enrollees in STI schools, both owned and franchised, alongside the performance of its subsidiary Information and Communications Technology, Inc. (iAcademy).
STI Holdings said a total of 105,031 students enrolled into its network of schools for school year 2017 to 2018, marking a 1.3% increase from the 103,727 enrollees last year. Senior high school students comprised 55% of the student population, while around 42% are college students under programs by the Commission on Higher Education.
The company continues to expand its school network with the construction of new sites for STI Lipa, STI Sta. Mesa, STI Pasay-EDSA, and a green field school in San Jose del Monte. The Lipa school is expected to be completed in November, in time for the second semester.
Shares in STI Holdings added a centavo or 0.89% to close at P1.13 apiece at the stock exchange on Tuesday. — Arra B. Francia

Art Basel owner chases Asia’s rich with new Singapore fair

July 18, 2018 | 12:04 am

MCH Group AG, the owner of Art Basel, is launching a new art fair in Singapore starting next year to take advantage of the growing wealth in Asia, which is minting millionaires faster than any other region in the world.
The new expo, called ART SG, will hold its inaugural event in November 2019 with about 80 galleries from Singapore, Southeast Asia, and globally at the Sands Expo and Convention Centre at Marina Bay Sands, the company said in a statement Friday.
The decision to set up shop in Singapore is part of a broader initiative by the Basel, Switzerland-based group to expand its position in the art market by building a portfolio of regional art fairs. The city-state already hosts an annual show in January called Art Stage Singapore, which targets the same group of buyers as ART SG.
“Singapore is an important and very dynamic art location and requires a fair serving the Southeast Asian region at an international standard,” Frank Lasry, Managing Director of MCH Design and Regional Art Fairs said in the statement.
MCH bought a majority stake in India Art Fair in 2016, and last year took a 25.1% holding in art.fair International GmbH, the Cologne-based organizer of Art Dusseldorf, according to the company’s website. It currently runs Art Basel, Art Basel Miami Beach, and Art Basel Hong Kong, which are major stops on the global art fair circuit.
Global sales of art reached $63.7 billion last year, up 12% from 2016, according to a report by Art Basel and UBS Group AG. Dealers said they made 46% of their sales at art fairs.
“There is a huge potential market in Asia that is rapidly developing and there is also demand for stronger representation from art from the region,” said Magnus Renfrew, co-founder and fair director of Taipei Dangdai, which is launching Taiwan’s own regional fair in January.
MCH is partnering with Tim Etchells and Angus Montgomery Arts, with each party holding an equal share in the venture. Etchells and Angus founded ART HK in 2008, which MCH later purchased and renamed Art Basel Hong Kong. — Bloomberg

Gov’t rejects all bids for 7-year bonds

July 18, 2018 | 12:04 am

By Karl Angelo N. Vidal, Reporter
THE GOVERNMENT rejected all bids for the reissued seven-year Treasury bonds (T-bonds) it offered on Tuesday as investors demanded higher rates ahead of the August policy meeting of the central bank.
The Bureau of the Treasury (BTr) opted to reject all tenders for its P15-billion offer of reissued seven-year bonds yesterday as bids put forward by banks reached just P13.97 billion, falling short of the amount the Treasury intended to borrow.
Had the BTr decided to accept all bids, the papers, which carry a 5.75% coupon rate, would have fetched an average rate of 6.621%, 64.5 basis points higher than the 5.976% tallied in the previous auction.
At the secondary market prior to the auction, the debt notes were quoted at 6.6921%.
At the close of the trading, the seven-year bonds fetched a lower yield of 6.2936%.
Following the auction, National Treasurer Rosalia V. De Leon said the rates offered by banks and other financial institutions were too high for the government.
“We opted to reject all bids because they are offering us outrageous pricing,” Ms. De Leon told reporters on Tuesday, noting that the auction was undersubscribed.
“And it’s undersubscribed [since investors only placed] P13 billion so most of those [were] really throwaway bids.”
She added that the market is waiting for the monetary policy meeting of the Bangko Sentral ng Pilipinas (BSP) before locking their funds in debt instruments.
BSP Governor Nestor A. Espenilla, Jr. said the central bank will review its forecast inflation path as this will shape the strength and timing of its next monetary policy response to temper inflation expectations.
Last month, the headline inflation picked up to a fresh five-year high of 5.2%.
The June inflation print accelerated from the 4.6% figure logged in May and exceeded estimates from the BSP and the Department of Finance.
The central bank has already raised the borrowing costs twice this year. Interest rates now stand at a 3-4% range.
“The market is waiting for the Aug. 9 policy meeting. And of course, everybody is also waiting for Federal Reserve (Fed) Chairman Jerome Powell’s testimony [on Tuesday night] on what would be the move of the Fed,” Ms. De Leon added.
Mr. Powell will testify before the US Congress where he is expected to discuss the monetary policy of the Fed, with the market anticipating two more rate hikes amid a growing American economy.
Meanwhile, a bond trader said the rejection should help improve results at succeeding auctions.
“This should result in better auction next time as BTr seems to be ‘reasonable’ and not too aggressive in awarding bids,” the trader said in a text message.
The Treasury is set to raise P300 billion from the domestic market this quarter through auctions of securities, offering P195 billion in T-bills and another P105 billion in Treasury bonds.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product.

Xurpas chair steps down to lead blockchain unit

July 18, 2018 | 12:04 am

By Arra B. Francia, Reporter

XURPAS INC. Chairman Nico Jose S. Nolledo will be stepping down as the technology firm’s chief executive officer (CEO) to lead one of the company’s subsidiaries that will focus on blockchain projects.
The listed firm said in a statement Tuesday that Mr. Nolledo will be focusing on developing Xurpas’ wholly-owned unit, ODX Pte. Ltd., which has already taken in several bigwigs in the technology, telecommunications, and crypto industries as investors.
ODX, which stands for Open Data Exchange, aims to employ blockchain technology to provide free Internet access to mobile consumer in emerging markets through sponsored data packages. The Xurpas unit incorporated in Singapore is currently planning to raise $100 million from the sale of utility tokens.
“ODX is a massive long-term opportunity for us, and the commitment to the project shown by the partners who have already signed on, is very strong validation of this… We need all hands on deck to fully realize our plans, and this is why I need to dedicate 100% of my time to ODX,” Mr. Nolledo said in a statement.
Xurpas noted that ODX’s supporters include Bitcoin Foundation Chairman Brock Pierce, Bharti Airtel International former Chairman Christian De Faria, Akamai co-founder Randy Kaplan, and other industry players such as Pantera Capital, DNA, Wavemaker Genesis, Right Click Capital, and Strong Ventures.
“We believe that the blockchain is a revolutionary technology, with far reaching benefits to companies, governments and end-consumers alike, and ODX will be a prime example of this,” Mr. Nolledo said.
Aside from ODX, the company is also planning to launch other blockchain projects that will complement its existing businesses such as Alto, which connects games to the blockchain; Xonio, a program that offers financial inclusion solutions for digital goods in emerging markets; and AllCare, an HR benefits platform that allows freelancers to avail of insurance, health, and other benefits.
Former Xurpas President and Chief Operating Officer Raymond Gerard S. Racaza will now take over as CEO, while Mr. Nolledo will remain as company chairman.
Xurpas swung to a net loss of P77.93 million in the first three months of 2018, versus a profit of P103.24 million in the same period a year ago. This came amid a 56% drop in revenues to P327.03 million during the period.
The company attributed the weaker performance to challenger market conditions in the mobile consumer segment, including new policies on Value-Added Services from one of its telco partners, leading to a slower performance.
Weakness in the 2017 performance of its advertising business, Art of Click (AOC), also spilled over to this quarter. Xurpas said it has already implemented measures to improve AOC’s client mix, but this has yet to be felt in the January to March period.
Shares in Xurpas ended flat at P3.15 each at the stock exchange on Tuesday.

Guadalupe: The Musical — Bringing hope to the world

July 18, 2018 | 12:03 am

EVENTS WHICH happened in Mexico over 400 years ago still resonate today, and these events will be told through a musical.
In 1531 at the Hill of Tepeyac in Mexico, the Blessed Virgin Mary was said to have appeared to Juan Diego, a newly converted Aztec and mat weaver, whom she instructed to build a church in her name. With no experience in carpentry, Juan Diego visited Archbishop Juan De Zumárraga and Governor Nuño Beltran De Guzman to tell them about the apparition and ask for their help. Despite not believing the native, Archibishop Zumárraga saw the miracle as a way of uniting the Spaniards and the Aztecs, while Governor Guzman rejected Juan Diego’s testimony. A series of supernatural occurrences — an old man was healed, sacred images appeared on fabrics, and flowers bloomed in arid soil — slowly convinced people that this was not superstition or coincidence.
Today, the basilica of Our Lady of Guadalupe in Mexico is the world’s most visited Catholic pilgrimage site.
It is that story that is told in the new English theatrical production by the Julie Borromeo Performing Arts Foundation called Guadalupe: The Musical. The musical features music by Ejay Yatco and is directed by theater stalwart Baby Barredo.
“As a lifelong devotee of Our lady [of Guadalupe], I have long dreamed of creating a musical based on this wonderous story,” said the founder of the performing arts school and choreographer (along with Rose Borromeo) of the musical, Julie Borromeo, at the launch on June 26 in Makati city.
Ms. Borromeo said that the idea for the production began years ago when she was approached by a theater backer from Singapore who requested a way to introduce the story of Our Lady of Guadalupe (patroness of the unborn) in the city state. It was aimed “to be able to get the youth to listen” in a place where abortions are legal and there is a strict family planning program. However, it did not push through due to financial constraints.
After years of conceptualization and raising the needed funds (with the help of her relatives) for the show, Ms. Borromeo is glad to launch the production in the Philippines this year.
Ms. Borromeo also hopes to educate those who are not familiar with the the Lady of Guadalupe, who is the second patroness of the Philippines. “You will be so surprised that most millennials don’t even know who she is. Our own students also have to be educated to have a devotion to Our Lady. That’s a big gap we want to fill.”
The musical, starring Cocoy Laurel as Juan Diego, is based on accounts of the miracles. “This is not a historical retelling of the facts. However, just like when you adapt any historical piece, [you] have to add creative elements,” scriptwriter and lyricist Joel Trinidad said.
“It will educate people and those who want to learn about the miracle[s], but we designed it as a piece of entertainment. You don’t have to be a devotee to enjoy the show,” Mr. Trinidad added.
He believes that the events in the story will resonate with the audience. “Many of the things that happenned in that time are still happening now,” Mr. Trinidad told BusinessWorld, citing oppression, the brutality of people in power, and hunger.
“Times are very hard now, and people trust each other less now. There’s a lot of strife and a lot of violence. I think now, more than ever, we need a story to remind us that there is good in the world and that people can make a change,” he said.
“We want [the audience] to be inspired, entertained, and uplifted,” he said. “If it happens to make them reassess their faith, then great. We want them to leave the theater feeling hopeful for the future, [and] that the world is not such a bad place. Maybe [there] can be paradise on earth. We just have to make it happen.”
Guadalupe: The Musical will go onstage from Sept. 28 to Oct. 14 at the Meralco Theater. E-mail Ria Pangilinan at riapangprojects@gmail.com for fundraising opportunities. For tickets and schedules, visit TicketWorld (www.ticketworld.com.ph, 891-9999). — Michelle Anne P. Soliman

PSBank gets BSP nod for LTNCDs

July 18, 2018 | 12:03 am

PHILIPPINE SAVINGS Bank (PSBank) has received regulatory approval to raise up to P15 billion in long-term negotiable certificates of deposit (LTNCD) to expand its consumer banking segment.
In a regulatory filing on Tuesday, the listed savings banking arm of Metropolitan Bank & Trust Co. said it recently got approval from the Bangko Sentral ng Pilipinas (BSP) for its LTNCD program amounting to P15 billion.
In May, the bank’s board of directors approved of the issuance, which will be done in two or more tranches and will be conducted over a year.
The program will carry a tenor of five-and-a-half years.
LTNCDs are similar to regular time deposits which offer higher interest rates. However, these cannot be pre-terminated. Being “negotiable” means these can be sold at the secondary market prior to maturity date.
The final terms of the LTNCD program including the offer period and interest rates are subject to market conditions, the bank said.
In a previous chance interview, PSBank President Jose Vicente L. Alde said the bank will offer LTNCDs in preparation for its customer business expansion brought about by its “robust” growth.
Mr. Alde said the bank will expand its retail arm by growing its traditional and digital channels.
This month, China Banking Corp. and Robinsons Bank Corp. have conducted LTNCD offerings, raising P10.25 billion and P1.78 billion, respectively, to support loan growth and stabilize cost of funding.
In the first quarter, PSBank saw its net profit at P641.1 million, up 25% from the P511.1 million in the same period last year supporter by the bank’s retail loan business. — Karl Angelo N. Vidal

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