Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 12339

ALI to accelerate capex spending in 2018

By Arra B. Francia, Reporter

AYALA LAND, Inc. (ALI) sees capital expenditure (capex)  accelerating up to P100 billion in 2018, as the property giant aims to keep up with the growing demand for residential projects in the country.

ALI Chief Finance Officer Augusto Cesar D. Bengzon said given the current pace of project developments, spending in 2018 should be larger than its P88-billion capex this year.“Historically we’ve not reached P100 billion. It’s possible. We’re finalizing our budgets. So we’ll see if we see that the opportunities are there,” Mr. Bengzon told reporters after the listing ceremony of its P3.1-billion short-dated notes at Philippine Dealing and Exchange Corp. on Thursday.

Of this projected capex, the bulk will still be allotted for its residential segment, which continues to be the top contributor to revenues.

As of end-September, 49% of this year’s capex was allocated for residential projects, followed by commercial leasing projects at 28%, land acquisitions, new businesses, and other investments taking up 17%, and the development of ALI’s estates accounting for 6%.

Mr. Bengzon noted capital spending increased, alongside the growth of the Philippine economy, which expanded by 6.9% year-on-year in the third quarter of 2017.

“We also have to be thankful for the general economy, 6.9% is quite strong. As you know, our business is closely tied with the economic growth of the country,” he said.

To fund this capex, Mr. Bengzon said the company may issue bonds to raise between P15 billion to P20 billion.

The ALI executive said the company is on track to launch P90 billion worth of residential projects this year. Including its office, commercial, and hospitality segments, ALI will be ending this year with P120 billion in project launches.

“Next year, we’ll see if the economy continues to be as strong as it is. And if demand is there, we will keep up,” Mr. Bengzon said. On Thursday, ALI listed P3.1 billion in short-dated notes at the fixed-income bourse, the proceeds of which will be used to finance its short term debt.

“So essentially we have 30-, 60-, 90-day promissory notes. So with this instrument we’re now extending the tenor to 15 months. The first short-dated note we issued in July was 21 months. This one is a 15-month instrument,” Mr. Bengzon explained.

Last July, ALI also issued P4.3-billion short-dated notes for debt refinancing. This year, the company had a total of P7.4 billion in capital market issues.

Asked whether the company is on track to hit an 18% year on year growth in earnings, Mr. Bengzon said they are “within striking distance.”

The ALI executive added there is usually an uptick in residential sales in the fourth quarter, due to the demand from overseas Filipino workers coming home for the holidays.

For the first nine months of 2017, ALI profits rose 18% to P17.8 billion, on the back of a 16% growth in revenues to P98.9 billion. The company attributed the increase to higher property sales for the period, which climbed to P94.2 billion, 12% higher year on year.

With this performance, Mr. Bengzon said the company remains on track to meet its 2020 vision, which aims to grow net income to as high as P40 billion by 2020.

Shares in ALI were up by 20 centavos or 0.47% to close at P42.90 each at the Philippine Stock Exchange on Thursday.

China’s $3.4-trillion corporate bond market faces rocky 2018 on deleveraging

CHINA’S deleveraging campaign is finally starting to bite in the nation’s corporate bond market, a shift that will make 2018 a clearer test of policy makers’ appetites to let struggling companies fail.

Yields on five-year top-rated local corporate notes have jumped about 33 basis points since the month began, to a three-year high of 5.3%, according to data compiled by clearing house ChinaBond. Government bonds, which have far greater liquidity, had already moved last month as the central bank warned further deleveraging was needed.

With more than $1 trillion of local bonds maturing in 2018-19, it will become increasingly expensive for Chinese companies to roll over financing — and all the tougher for those in industries like coal that the nation’s leadership wants to shrink. Two companies based in Inner Mongolia, a northern province that’s suffered from a debt-and-construction binge, missed bond payments on Tuesday, in a demonstration of the kind of pain that may come.

In the long haul, that all may be good for China. Allowing more defaults could see its bond market become more like its overseas counterparts, with a greater differentiation in price. And that could mean it channels funds more productively.

“The deleveraging campaign and the new rules on the asset management industry will further differentiate good and bad quality credits, and make the onshore credit market more efficient,” said Raymond Gui, senior portfolio manager at Income Partners Asset Management (HK) Ltd. “Weaker companies will find it harder to roll over their debts because funding costs will stay high.”

Gui predicts yields will keep climbing. The average for top-rated corporate bonds is already 2.2 percentage points higher than October last year. Weakness in the bond market has other consequences too: the drop contributed to a slide in sentiment in stocks Thursday, with the Shanghai Composite Index plunging more than 2%, the most this year.

Higher yields come as authorities show greater determination to shift the economy onto a more sustainable footing, with less debt. The latest move was a plan to discipline the asset-management industry, including banning guaranteed rates of return. People’s Bank of China Governor Zhou Xiaochuan graphically depicted the risk of excess leverage, by evoking a “Minsky moment,” or sudden collapse of asset values.

Key to that endeavor will be scaling back some of the implicit credit guarantees that have backed a broad swathe of Chinese borrowers. The country only started allowing corporate defaults in 2014. Last year there was a record, coming in at at least 29. It’s unclear yet whether that total will be met in 2017.

Next year, some $593 billion of onshore corporate bonds come due. And with broad expectations of a slowdown in economic growth closer to 6% than this year’s 7%, challenges will be deepening. Borrowers’ best bet will be not to rush to market, but pace themselves, according to Chen Peng, fixed-income analyst at Fortune Securities Co. in Shenzhen.  And policy makers will want to make sure that there’s no major damage to growth from their deleveraging campaign. Getting that balance right is one of the biggest issues facing the global economy in 2018, says Andrew Tilton, chief Asia-Pacific economist for Goldman Sachs Group Inc. — Bloomberg

PHL firm seeks ODA for tidal energy project

By Victor V. Saulon, Sub-Editor

PHILIPPINE company San Bernardino Ocean Power Corp. (SBOPC) is looking to source through official development assistance (ODA) a portion of the funds needed for its $25-million tidal energy project within the San Bernardino Strait.

“We’re trying to access ODA,” said Antonio A. Ver, president of H&WB Asia Pacific (Pte. Ltd.) Corp., the joint venture partner of France’s Sabella Societe par Actions Simplifie in SBOPC.

“The rest [of the funding is through] project finance. If we get ODA for $10 million, [the remaining] $15 million, that’s project finance,” he said in a phone interview on Monday.

Of the remaining $15 million, Mr. Ver said 70% will be sourced from debt and 30% from equity. For the equity portion, Filipino funds through H&WB will contribute 60%, while 40% will be from Sabella. Philippine laws require a 40% limit for foreign funds in energy projects.

The pioneering 1.5-megawatt (MW) project will use tidal in-stream energy conversion (TISEC) technology, which Mr. Ver said is adaptable in Philippines waters. TISEC produces electricity through tidal currents.

Capul island in Northern Samar province will be the main consumer of the reliable and clean ocean power sourced from San Bernardino Strait, which separates Luzon’s southern tip from Samar.

Capul is off-grid and falls under the small power utilities group (SPUG) of the National Power Corp. (Napocor). The government company currently supplies 60% of the island’s electricity at no more than eight hours a day. It relies on costly diesel generators to produce power.

Northern Samar Electric Cooperative (Norsamelco) will be the off-taker for the initial power plant harnessing the marine current resource. SBOPC had been awarded with three Ocean Power Service Contracts by Department of Energy on Oct. 30, 2013.

“We will be operating as a qualified third party (QTP),” said Mr. Ver, referring to an entity that provides electricity in remote and unviable areas that a franchised distribution utility is unable to serve.

“A qualified third party receives a share from the universal charge for missionary electrification,” he added about the payment uniformly collected from all power users.

Mr. Ver said the power plant is expandable to 3 MW because of a 1-MWh storage capacity. He said the service area is scalable to include Calintaan and Matnog in Sorsogon.

Unlike solar and wind energy, tidal currents are predictable, Mr. Ver said, thus ocean technology does not have intermittency issues.

He said his group had signed a memorandum of understanding with PNOC Renewables Corp. should the unit of state-led Philippine National Oil Co. decide to join the project.

“They’re interested to take equity,” he said. “It would still depend on the project’s internal rate of return, and equity internal rate of return.”

Mr. Ver said towards the end of 2018, the joint venture should have raised the $25 million to fund the project. During this period, the engineering, procurement and construction (EPC) package should have been completed, he said.

“After we go the EPC stage, that’s when we will be able to determine the total final project cost. From there we will determine how much is 70% debt and 30% equity,” he said, adding that it would also be at this time when PNOC Renewables should be able to assess the project’s viability.

“Our research work in San Bernardino dates back to as far as seven years ago. When we reached year three, we were already able to determine the resource. The technology that we chose is TISEC,” he said.

Sabella, a marine energy technology and engineering company, developed TISEC and is known for its successful project using its D-10 turbine in Fromveur Passage in energizing Ushant, an off-grid island in Brittany, France.

Calata appeals PSE delisting decision

CALATA Corp. said it has appealed the Philippine Stock Exchange (PSE) decision to delist the company.

“The decision of the PSE to delist the company is under appeal,” Calata said in a letter to shareholders posted on its Web site on Wednesday.

Should the PSE reject this appeal, Calata said it will study how to conduct a “gradual” buyback of shares held by the public, even if a tender offer is not mandatory.

Calata had a free float level of 61.53% at the time of its delisting.

“However, please understand that this can only be done gradually so as not to adversely affect the day-to-day operations of CAL. We are currently attempting to formulate a plan on how to go about this, but we intend to start from the smallest shareholders up to the largest,” Calata said.

Earlier, Calata said conducting a tender offer would effectively kill the company, as its retained earnings of P400 million would not be enough to buy back the shares of minority stockholders — estimated to reach P1 billion based on a stock price of P3 apiece.

The agribusiness firm said it will also study how it can allocate a portion of its annual earnings as cash dividends for investors who would choose to stay on board.

The PSE initiated involuntary delisting procedures against Calata last July after counting a total of 55 violations of disclosure rules in the period from November 2016 to June 2017. The PSE also found the company to have violated the blackout rule, where officers of a company are not allowed to trade their company’s shares within a prescribed period.

In response to the delisting measures, Calata announced that it will instead list it shares in the cryptocurrency exchange, where they will be called CalCoins, traded with the likes of other virtual currencies such as bitcoin and ethereum.

Prior to the violations cited for the delisting, Calata was also the subject of an investigation by the Securities and Exchange Commission for alleged market manipulation after its initial public offering in 2012. — Arra B. Francia

Transportation undersecretary Chavez resigns

By Patrizia Paola C. Marcelo

TRANSPORTATION Undersecretary for Railways Cesar B. Chavez resigned on Thursday, in the wake of issues and several mishaps involving the controversial Metro Rail Transit Line 3 (MRT-3)

In his resignation letter dated Nov. 23 and addressed to President Rodrigo R. Duterte, Mr. Chavez said his “irrevocable resignation” was “effective immediately.”

“I hope the President understands that in the light of recent events involving the MRT3 System, simple sense of delicadeza which I have adhered to throughout my professional life gives me no choice but to resign from my said position,” Mr. Chavez wrote in his letter.

“It is also may (sic) intent and hope that my resignation provides opportunity for the appointment of person better qualified to perform the duties and responsibilities of the subject office.”

FREQUENT MALFUNCTIONING
Mr. Chavez was appointed last March, replacing Noel Eli B. Kintanar who resigned in November last year.

During his brief time as undersecretary, Mr. Chavez recommended the termination of the government’s contract with MRT-3 maintenance provider Busan Universal Rail, Inc. (BURI), saying the Filipino-South Korean joint venture was to blame for the train system’s frequent malfunctioning. The DoTr terminated the said contract earlier this month.

As of Thursday, Presidential Spokesperson Harry L. Roque, Jr., said regarding a meeting reportedly sought by BURI: “We find no reason to have the requested meeting. We have already canceled the contract with BURI and the government decided to meanwhile take over the maintenance of MRT.”

Just last week, a passenger at Ayala Station fell between two cars of a passing train, her arm severed in that accident, although it was since reattached after surgery.

Days after that incident, the third car of a northbound train that had just left Ayala Station was detached, forcing its passengers to get off the vehicle and walk the tracks leading to Buendia Station.

Mr. Chavez’s resignation also follows on the heels of calls for the resignation of his superior, Transportation Secretary Arthur P. Tugade.

Mr. Tugade’s defenders in Malacañang have cited the problems he has assumed from the previous administration of Benigno S.C. Aquino III, although Mr. Tugade has already served more than a year in the Department of Transportation (DoTr).

Mr. Tugade denied asking Mr. Chavez to resign, saying he was “surprised by the sudden turn of events.”

“For the record, and contrary to the insinuations of others, I did not cause or ask Usec. Cesar Chavez to resign. He has my full trust and confidence. We have been doing plans and strategies together, up and until yesterday. Even by texts as I was on sickbay. That is why I am surprised by the sudden turn of events,” Mr. Tugade told reporters in a text message.

REPLACEMENT
Senator Grace Poe, chair of the Senate committee on public services, said she “admired” Mr. Chavez’s sense of delicadeza and called for the Senate’s evaluation of the actions and leadership of the DoTr.

“I admire his sense of delicadeza although I doubt that is the only reason that prompted him to resign. He seemed to be one of the DoTr officials who was determined to fully address all the issues plaguing the MRT…However, it is time to evaluate the actions and leadership of the DoTr as a whole in connection with how issues hounding the MRT have been addressed. These issues should be properly and expeditiously resolved despite the Usec. Chavez’s resignation and especially considering the commuting horrors our people have to go through everyday,” Ms. Poe said in a statement.

She added: “We hope that in finding a replacement, Secretary Tugade will carefully look into the qualifications, capability, competence and commitment of the person because the task at hand is complex and has critical impact on the lives of our commuting public. We need to have somebody who will hit the ground running as we cannot afford a mere politically connected OJT.”

For his part, Akbayan Representative Tom Villarin said Mr. Chavez’s resignation was expected, given the “blame game” done by the current government regarding the MRT.

Also on Thursday, Bayan Muna Representatives Neri J. Colmenares and Carlos Isagani T. Zarate, together with two other petitioners, asked the Supreme Court (SC) to annul a directive from two years ago to raise train fares.

The motion noted in part that the MRT-3, in particular, “continues to experience technical problems that endanger the safety of the riding public. News about its malfunctions has now become so common, and complaints from the public have been increasing.”

“The worsening condition of our rail system in spite of the implementation of the fare hikes only proves the correctness and validity of Petitioners grounds for their opposition to the 2015 LRT/MRT fare hikes, as embodied in the Department Order No. 2014-014 of then DoTC,” the petitioners said. — with Andrea Louise E. San Juan

Peso weakens on dovish Fed

THE PESO failed to sustain its rally against the dollar on Thursday amid the dovish tone of the minutes of the latest US Federal Reserve meeting.

The local unit moved sideways at P50.68 versus the greenback on Thursday, losing six centavos from Wednesday’s close of P50.62.

The peso opened stronger at P50.55. Its intraday low was registered at P50.68, while its high was at P50.54 versus the dollar.

Dollars traded surged to $604.7 million from Wednesday’s $533 million.

“The peso depreciated today, as the market corrected after the dollar declined in the first three days of the week,” Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines (Landbank) said in an e-mail on Thursday.

Traders interviewed said the peso picked up in morning trading as the market viewed the minutes of the latest Fed monetary policy meeting as “dovish”, noting the uncertainties of US inflation lingering below the 2% “for longer than expected.”

Many Federal Reserve policy makers expect that interest rates will have to be raised in the “near term,” according to the minutes of the US central bank’s last policy meeting released on Wednesday.

The readout from the Oct. 31-Nov. 1 meeting, at which the Fed kept rates unchanged, also showed policy makers generally agreed the economy was poised for strong growth. Several Fed officials also saw improved chances that the US Congress would pass significant tax cuts that would boost business investment.

While some policymakers said they still needed to see more data before deciding the timing of a rate hike, many of the officials said the jobless rate appeared to be too low for inflation to remain at its current weak level. “Many participants thought that another increase in the target range for the federal funds rate was likely to be warranted in the near term.”

The central bank has increased rates four times in a tightening cycle that began in late 2015. The Fed currently predicts one more rate rise this year and three more hikes in 2018.

Meanwhile, another trader noted that news regarding the Brexit talks tempered the descent of the greenback.

“I think the signals globally are somewhat mixed. I saw some problems in the Brexit talks so it generally supported the dollar,” the trader said, noting that the US markets were in a break in time for Thanksgiving.

Traders said the peso will likely move between P50.40 and P50.90 versus the dollar today, as Landbank’s Mr. Dumalagan noted that “the peso might continue to depreciate as the dollar might continue to recover amid US rate hike concerns.” — Karl Angelo N. Vidal with Reuters

Drug war may be reverted to PNP amid fallout over cleared Customs officials

MALACAÑANG ON Thursday, Nov. 23, affirmed earlier remarks by President Rodrigo R. Duterte that he may return his government’s drug war to the Philippine National Police (PNP) from the current supervision of the campaign by the Philippine Drug Enforcement Agency (PDEA).

Meanwhile, senators, particularly of the opposition, slammed the Department of Justice’s (DoJ) dismissal of drug smuggling charges against former Bureau of Customs (BoC) Commissioner Nicanor E. Faeldon and 11 other BoC officials, saying this was indicative of a “fake” drug war on Mr. Duterte’s watch.

‘EFFECTIVELY’
Regarding the possible return of the antidrug campaign to the PNP, Mr. Roque said in a press briefing on Thursday: “Well, I think a decision will soon be made but like you said, he did make the statement that “I may have to return it to the police to avoid the problem from worsening.”

“So, I guess that’s the latest — that is the latest pronouncement of the President. There is now a very strong likelihood that it could be returned to the PNP,” he added.

Mr. Duterte, in a memorandum order on Oct. 10, ordered the PDEA to take the lead in the administration’s war on drugs.

But he has also expressed disagreement with this very move and on several occasions warned that he would return the assignment to the PNP.

“Effectively, effectively, he has manifested already a decision to return it to the PNP,” Mr. Roque said on Thursday.

This prompted New York-based advocacy group Human Rights Watch to issue a statement also on Thursday saying in part: “The Duterte government’s apparent desire to resume the murderous drug war underscores the need for a United Nations-led international investigation into the killings. Until that happens, the number of victims denied justice and accountability will likely only continue to grow.”

REAPPOINTED OFFICIALS
Also on Thursday, Malacañang defended the reappointment of two Customs officials who had been linked to the shipment of P6.4-billion drugs that passed through Customs last May.

“It must be because there has been (a) thorough investigation conducted by the House, the Senate, the DoJ, and even from within the Palace. And it must be because these two officials were found not to be in anyway involved in the P6.4-billion scandal,” Mr. Roque said.

Last Wednesday, copies of the appointment letters of Deputy Commissioner for Enforcement Ariel F. Nepomuceno and Deputy Commissioner for Intelligence group Teddy Sandy S. Raval were released to the media.

Messrs. Nepomuceno and Raval were among the Customs officials named by Senator Panfilo M. Lacson as among the bribe takers in the processing of illegal shipments at the bureau.

Mr. Nepomuceno tendered his resignation last August, following that of Mr. Faeldon and intelligence chief Neil Anthony L. Estrella.

Mr. Estrella on Thursday issued this statement, following the DoJ’s dismissal of the drug charges against Customs officials: “My team who recovered those drugs were finally vindicated….We thank the Lord Almighty for hearing our prayers,…as we also forgive those who have falsely accused us….(This) is partly a hazard of our profession….May we all find peace with this development as we send our prayers for the continuing challenge to others.”

Apart from Messrs. Nepomuceno and Raval, Mr. Duterte on Nov. 6, appointed former BoC Import Assessment Services Director Milo D. Maestrecampo and former Deputy Customs Commissioner Gerardo O. Gambala to the Department of Transportation.

Mr. Maestrecampo is now Assistant Director-General II of the Civil Aviation Authority of the Philippines, while Mr. Gambala is Director IV of the Office for Transportation Security.

‘FAKE DRUG WAR’
In response to the DoJ ruling on Wednesday, Senator Richard J. Gordon, whose blue ribbon committee had been investigating the P6.4-billion drug shipment, said on Thursday: “The dismissal by the Department of Justice (DoJ) of the case against Nicanor Faeldon, Gerardo Gambala, Milo Maestrecampo, among others, is not the complete story. Faeldon and Gambala may have been absolved in the importation of dangerous drugs; however, Maestrecampo must be further investigated.”

“Based on the hearings conducted by the Senate, the evidence shows that Maestrecampo provided aid in allowing the shipment of drugs to enter in the country’s front doors smoothly through the green lane. There is also evidence showing Maestrecampo’s involvement with Mark Taguba.”

“What about Neil Estrella? He was the one who botched the seizure operations — facts pointed to the failure to have been done deliberately.”

For his part, opposition Senator Francis N. Pangilinan said on social media, “Peke ang drug war ng administrasyon na ito (This administration’s drug war is fake).”

“Akala ko ba galit sila sa droga? Kapag maliliit at mahihirap at ilang gramo lang ng shabu, pinapatay. Kapag tone-toneladang shabu ang pinupuslit ng malalapit sa mga nakaupo, pinapalusot (They hate drugs? The small fry with grams of meth are rubbed out, but when it’s tons of shabu by those close to the powers that be, they go scot-free),” the senator also said.

For his part, Justice Secretary Vitaliano N. Aguirre II said on Thursday night:

“Our department is resolving cases only on the basis of evidence submitted to us. They could have found evidence of culpability of any BoC officers during the Senate Investigation but if they were not presented to us, then they will not be considered.”

“As of this stage, the case is still in the preliminary stage and the Office of the Secretary (OSEC) has still nothing to do with the proceedings there. As a matter of fact, I have not yet read the Resolution of the National Prosecution Service. But the OSEC has the power of automatic review of drug cases.”

“I suggest that before any person makes any comment, they should read the complaint and the subject resolution. We are ready and willing to face anybody to justify the DoJ Resolution.” — with reports by Rosemarie A. Zamora, Andrea Louise E. San Juan, Arjay L. Balinbin and interaksyon.com

With canceled talks with Reds, Duterte to look into ‘fronts’

By Rosemarie A. Zamora

FOLLOWING THE announcement by the government of the cancellation of talks with communist rebels, President Rodrigo R. Duterte will order the arrest of members of the communist rebellion, including their “legal fronts,” his spokesman said on Thursday, Nov. 23.

Mr. Duterte, being a former prosecutor, has legal basis to order the arrest of left-leaning organizations and sympathizers if they are proven to have conspired with the rebels in committing acts of rebellion under the Human Security Act.

“He knows that there can be a conspiracy to commit a crime of both rebellion and the violation of the Human Security Act because you can now be prosecuted, for acts, overt acts constituting rebellion, also for violation of the Human Security Act, where the taking up of arms is intended for the purpose of inflicting fear or terror in the minds of the general public,” Presidential Spokesperson Harry L. Roque, Jr., said in his press briefing.

“The President as public prosecutor has said that conspiracy is sufficient basis to accuse them of both rebellion and acts of terrorism because in a conspiracy the act of one is the act of all,” he added.

“Even if they did not physically take up arms, if they are part of a conspiracy to commit acts of terror or rebellion, then they can be held liable under the theory of conspiracy,” he added.

On Wednesday, Presidential Peace Adviser Jesus G. Dureza announced the government has canceled all planned meetings with the rebels.

Later that day, Mr. Duterte singled out as well even their legal fronts.

“At ’yung mga legal fronts ninyo, alam ko… ’Wag na lang tayo magbolahan, galing ako diyan eh. You are helping each other conspiring to topple or whatever, to sow terror,” he said. (And your legal fronts, I know….Do not fool me. I’ve been there. You are helping each other conspiring to topple or whatever, to sow terror.)

“We will treat you as a criminal, period. And we will arrest everybody connected with ’yung mga (your) legal fronts nila,” he added.

Asked who the legal fronts are, Mr. Roque said, “I’m sure he (Mr. Duterte) will be guided by security and intelligence agencies of the government.”

“Well, the lawyers, of course, will take care of this. In conspiracy, there must be an agreement for a common purpose and a common design and for overt acts also to reach that common purpose,” he added.

Youths call for gov’t action on child abuse

By Roberto A. Vergara, Jr.
Digital Reporter, SparkUp

FILIPINO YOUTHS from different special needs groups on Thursday, Nov. 23, called on the government to take action on child abuse in the country.

In an assembly organized by the United Nations Children’s Fund (UNICEF) and Child Rights Network in celebration of “World Children’s Day,” four children representing those with disabilities, indigenous peoples (IPs), as well as those affected by disasters and conflicts, voiced out their concerns about issues faced by young Filipinos such as corporal punishment, teenage pregnancy, sexual abuse, and lack of services for IPs.

On the issue of corporal punishment, Jophet Cam from Roxas City, Capiz, stressed the need for parenting education and the enactment of House Bill 4907 or the “Positive and Non-violent Discipline Act” to ensure a proper way of disciplining children.

Citing the results of the National Baseline Study on Violence Against Children conducted by the Council for the Welfare of Children (CWC) and UNICEF, Mr. Cam said three of every five respondents in the five-year study experienced some form of physical violence during their childhood. The study, which tapped 3,866 respondents with age ranging from 13 to 24, found out that more than 60% of these cases happen at home.

“We can also strengthen the implementation of the Barangay Council for the Protection of Children and provide proper response to functionality and have a mechanism for monitoring,” Mr. Cam said during the assembly held at the Museo Pambata in Manila.

He added that the government should also create programs that will tackle the negative effects of physical abuse on young people.

To prevent unwanted pregnancy among teenagers, Unice Cataguiz from Quezon province said local communities should have a “teenage facility” to protect the needs and welfare of teenagers and a Violence Against Women and Children desk to provide a channel where they can share their experience.

The need for legislative action to protect children against sexual abuse was also highlighted during the assembly.

Jicarl Golpeo from Sorsogon urged lawmakers to pass the proposed policies aimed at protecting children from sexual exploitation, including the proposed R.A. 8353 or “Anti-Child Rape Law,” and the proposed R.A. 9775 or “Anti-Child Pornography Law.”

“I hope the age required by the (proposed) Age of Sexual Consent Law will be adjusted to 18 instead of 12 years old,” Ms. Golpeo also said.

With 15% of the Philippine population composed of IPs, Rodeliza Ricablanca from Zamboanga said the government should implement projects to protect and provide the youth among this sector with their needs.

“Indigenous children are deprived of basic rights like education and health care services, and they are aware of it. They can be found in places that are not reached by government services,” Ms. Ricablanca said.

The National Youth Commission (NYC), for its part, said it will implement programs that will help address these concerns.

Patricia Mae Lopez, chief of staff of NYC’s chairperson and CEO, said the commission is collaborating with different government institutions like Department of Education to enhance sex education, with the Department of Health to promote awareness on HIV, and with the Social Welfare Department to conduct awareness training.

“We are currently finding ways to implement small programs and to address the issues presented. We are currently participating [in] discussions with CWC to implement [programs] to prevent [abuse] both in public and private institutions,” Ms. Lopez said.

Sereno camp says congressmen aiding Gadon in impeachment ‘fishing expedition’

By Andrea Louise E. San Juan

THE CAMP of Chief Justice Maria Lourdes P.A. Sereno yesterday, Nov. 23, slammed complainant lawyer Lorenzo G. Gadon and most members of the House committee on justice for going in a “fishing expedition” in the impeachment case against the country’s top judge.

“It has always been our position that the people’s money should never fund a fishing expedition and unfortunately, this was what exactly happened in Wednesday’s hearing,” said lawyer Josalee S. Deinla, one of the spokespersons of Ms. Sereno.

Ms. Deinla noted that the hearing, which was the start of the committee’s determination of probable cause, was marked by several requests from Mr. Gadon to subpoena witnesses and documents.

“It was not right for the justice committee, chaired by Oriental Mindoro Representative Reynaldo V. Umali to allow Gadon ‘to put the cart before the horse and get away with it,’” she pointed out.

“Mr. Gadon’s resorting to fishing expedition, with the aid of some members of the committee, served to highlight one crucial fact — there is no solid evidence and sufficient grounds for impeachment against the Chief Justice,” she said.

In Wednesday’s hearing, Ako Bicol Representative Rodel M. Batocabe noticed Mr. Gadon’s failure to state specifically the years covered by his allegation pertaining to the Statement of Assets, Liabilities and Net Worth (SALN) of Ms. Sereno.

“At first glance, with due respect to this committee, it seems that we are now on a fishing expedition because we do not have a definite year of SALN,” Mr. Batocabe said during the hearing.

On the other hand, Mr. Gadon, in the impeachment complaint that he filed, claimed that Ms. Sereno did not declare in her SALN her earnings from the time she was a lawyer for the government in its arbitration case against the Philippine International Air Terminals Co., Inc. (PIATCO).

He said that Ms. Sereno earned P37 million from the job, but her lawyers contested that it amounted to only P30.3 million.

Further, Ms. Sereno’s lawyers asserted that there could be no misdeclaration in the SALN since the legal fees she earned from the PIATCO case for the period 2003-2008 were received prior to her appointment to the Supreme Court in 2010.

Towards the end of the hearing, Quezon City Representative Jose Christopher Y. Belmonte hinted that Mr. Gadon seemed to be using the justice committee and the hearing to obtain the evidence necessary to back up his allegations.

“I’d really like to stress to my good friend (Gadon) and his counsel na ang trabaho po natin sa (that our work here in the) committee is to determine probable cause. Di ba ho? Ang nangyayari ho ay parang tayo po ang nagtatrabaho para sa kanya, para i-build ’yung ebidensyang kailangan niya (What seems to be happening here is we are working for him to build up the evidence that he needs),” Mr. Belmonte told the committee.

Ms. Sereno’s camp also said, “By insisting on the Chief Justice’s personal appearance at the hearings, complainant is not only calling for the violation of her constitutional right to counsel, he is moreover forgetting that she is not responsible for proving her innocence.”

The House committee voted 30-3 in favor of preventing non-members of committee, which includes Ms. Sereno’s lawyers, from speaking or participating in the hearings.

“The onus to prove the allegations still lies on complainant. On this we trust that he’ll miserably fail, judging by yesterday’s events — where he has started to get caught in his own web of lies and even perjured himself.”

Ateneo bracing for tough battle vs La Salle in finals

By Michael Angelo S. Murillo
Senior Reporter

HAD it tough in the Final Four of Season 80 of the University Athletic Association of the Philippines (UAAP) men’s basketball tournament, the Ateneo Blue Eagles are bracing for yet another difficult battle at hand as they take on the defending champions and rivals De La Salle Green Archers in a best-of-three finals series.

Narrowly escaped being upset by the lower-seeded Far Eastern University (FEU) Tamaraws with an 88-84 overtime win in their do-or-die game last Wednesday, the Eagles, the number one team heading into the playoffs, said that while they are happy with being back in the finals, they know a tougher challenge lies ahead for them as they seek to get back at the Archers for the finals loss they were dealt last year.

“It’s going to be tough [in the finals]. La Salle is the defending champion. They got the MVP [in Ben Mbala] and have very good players. If you look at it man for man it’s a tough task for us but we are not going to look at it as such. Instead we will look at ways at how we can match up well as a team. That is how we should approach it to get an upset over La Salle,” said Ateneo deputy coach Sandy Arespacochaga after their win over FEU.

“Mbala. That is the first thing we have to deal with [against La Salle]. We have to find ways to stay out of foul trouble against Mbala. But at the same time La Salle is not a one-man team. There is a reason why they are in the finals, waiting in the finals. It’s not going to be easy against them. You have to dig deep and give your all and find a way to overcome things,” he added.

In barging into the finals for the second straight time, the Eagles needed to consume their twice-to-beat advantage against the Tamaraws and get clutch plays from their players down the stretch of their sudden death, particularly guard Matt Nieto and big man Isaac Go.

Nieto and Go provided the needed plays on both ends of the court as regulation expired and in the extra period to tow their team to the victory.

It is a showing Ateneo is hoping to build on as they head into the finals against La Salle.

“It was a learning experience for us. It was an opportunity for us to grow as a team and hopefully it serves us well in the finals,” said Mr. Arespacochaga.

He went on to say that they welcome the opportunity to play for the championship again and bent on taking it as far as possible.

“We have matured a lot from last year but at the same time this is a good opportunity for us to write our own history. It’s not going to be easy but it’s a good test of character for us. We are thankful for the opportunity to compete for the championship,” Mr. Arespacochaga said.

The latest championship encounter between Ateneo and La Salle is the sixth time that the two rivals will go at it in the finals in the UAAP.

The Eagles hold the lead in their head-to-head finals encounter, 3-2, but the Archers won the last in 2016 by sweeping Ateneo in their best-of-three finals.

Ateneo and La Salle split their previous two games this season with the former taking the game in the first round of the eliminations, 76-75, while the latter coming back in the second round, 79-76, to thwart the Eagles’ sweep bid in the classification phase.

La Salle booked its spot in the finals last Saturday after making short work of the Adamson Soaring Falcons in their Final Four pairing.

Game One of the UAAP finals is set for tomorrow, Nov. 25, at 4 p.m. at the Mall of Asia Arena.

Daewoo E&C wins appeal on VAT case

THE COURT of Tax Appeals (CTA) has granted the petition of Daewoo Engineering & Construction Company Ltd. (Daewoo E&C) seeking the cancellation and withdrawal of its supposed P21.5-million value-added tax (VAT) deficiency for taxable year 2007 as imposed by the Bureau of Internal Revenue (BIR).

In a 22-page decision, the CTA upheld Daewoo E&C’s assertion that it did not get due process because the BIR, particularly the chief of the Collection Division of Revenue Region No. 7, failed to deliver to the company the Preliminary Assessment Notice (PAN) and Final Assessment Notice (FAN), which should deem the assessment void.

The CTA pointed out that Section 228 of the 1997 National Internal Revenue Code (NIRC), which guarantees taxpayers’ right to be informed of the law and the facts upon which an assessment is made, as implemented by Revenue Regulations (RR) 12-99, requires the issuance of a PAN and a FAN as part of the due process.

“(T)he testimonial and documentary evidence have established that the PAN and the FAN were not received by petitioner because of the wrong address indicated therein which was uncontroverted by respondent,” reads the ruling penned by Associate Justice Catherine T. Manahan and concurred by Associate Justices Juanito C. Castañeda, Jr. and Caesar A. Casanova.

“The Supreme Court has already ruled that failure to prove receipt of the assessment raises no other conclusion that no assessment was issued Wherefore, the instant Petition for Review is hereby granted,” it added.

The case stems from the Preliminary Collection Letter (PCL) issued on April 24, 2013 by the Chief of the Collection Division of Revenue Region No. 7, Ruth Vivian G. Gadia, asking Daewoo E&C to pay its VAT deficiencies for 2007 amounting to P21,531,983.39, inclusive of increments.

The PCL was received by the petitioner on May 30, 2013.

However, the PAN and the FAN, dated Oct. 8, 2010 and April 15,2011, respectively, were never delivered to the company’s office due to an apparent “miscommunication” among BIR officers.

“We cannot help but conclude that there must have been some miscommunication among the revenue officers as to the correct address of petitioner, particularly in the years 2010 and 2011 when the PAN and the FAN were respectively issued and supposedly served upon petitioner,” the tax court pointed out.

“It is a well-entrenched rule that if a taxpayer denies ever having received an assessment from the BIR, it becomes incumbent upon the latter to prove by competent evidence that such notice was indeed received by the addressee.”

Daewoo E&C transferred its address to the 15th Floor, the Taipan Place, Ortigas Center, Pasig City effective 2009, which it properly filed before Revenue District Office No. 47 as supported by documentary evidence.

“The failure to validly serve the PAN and the FAN to petitioner, the latter’s non-receipt thereof and the issuance of the FAN beyond the three-year period constitute the bases of the petitioner’s claim that such assessments are void and should be canceled by this Court,” the CTA ruled. — Andrea Louise E. San Juan

1...12,33812,33912,340...13,202Page 12,339 of 13,202
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube