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No neglect of duty on bill deposits, ERC commissioners insist

By Victor V. Saulon, Sub-Editor
FACEBOOK.COM/ERCGOVPHTHE four commissioners of the Energy Regulatory Commission (ERC) said there was no basis for the Ombdusman’s findings that resulted in the imposition of a three-month suspension as penalty for simple neglect of duty on the issue of bill deposits.
The commissioners, who said they were saddened by the order of the Office of the Ombudsman, maintained that there had never been any neglect of duty on their part.
“There are existing regulations put in place by the Commission regarding the bill deposit being enforced to protect the public. One of the regulations issued by the Commission is the Magna Carta of the Rights of Electricity Consumers (MREC) where the consumers are granted the right to demand the return of the deposit and the distribution utilities cannot ignore the said demand,” a statement sent by the commissioners’ legal counsel read.
“Notwithstanding the existence of these policies, the Commission has been evaluating them beforehand and have actually been working on the review of the policies in question,” it added.
The suspension came after consumer advocacy group National Association of Electricity Consumers of Reforms, Inc. (Nasecore), represented by its Executive Director Rafael Antonio M. Acebedo, filed a complaint of grave misconduct against the commissioners on Dec. 13, 2017.
The case stemmed from Nasecore’s allegation of “unauthorized use” by distribution utility Manila Electric Co. (Meralco) of the bill deposits of customers, unjust or discriminatory fixing of interest rates on them, as well as their non-crediting in favor of consumers.
The four ERC commissioners, Alfredo S. Non, Gloria Victoria C. Yap-Taruc, Josefina Patricia M. Asirit and Geronimo D. Sta. Ana, have filed a petition for temporary restraining order (TRO) against the suspension with the Court of Appeals. They are represented by lawyer Rolando B. Faller.
The statement read: “Hence as a result of the prior assessment and internal discussions in the Commission, the following were undertaken: On 30 May 2017, the Commission posted in its official website the initial draft ‘Rules to Govern the Monitoring and Reporting Process of Bill Deposits’, docketed as ERC Case No 2017-006 RM.”
“In the Commission’s Order dated 30 May 2017, all interested parties were requested to submit their comments on the said draft Rules on or before 15 June 2017,” it read.
“After considering all the comments submitted, the Commission issued the 2nd draft ‘Rules to Govern the Monitoring and Reporting Process of Bill Deposits.’ Said 2nd draft Rules were posted in the Commission’s website on 2 October 2017. In its “Notice” dated 2 October 2017, the Commission solicited comments from all interested parties giving them until 31 October 2017 to submit their comments,” it added.
In the intervening period, several letters and communications were exchanged between Energy Secretary Alfonso G. Cusi and Undersecretary Petronilo “Pete” L. Ilagan to update them on the progress of the public consultations, the statement read. It described Mr. Ilagan as affiliated with Nasecore.
“All interested parties were directed to submit their comments (in both hard and soft copies) on the said draft Rules on or before May 11, 2018. Please note that the public consultations in Visayas and Mindanao were originally set on April 18 and 19, 2018, respectively, but the same were cancelled and reset to May 16 and 17, 2018 thru an Order dated April 12, 2018 due to conflicts in scheduling,” the statement read.
“As may be seen from the above narration, the Commission continues to work on the concern as well as other equally important and pressing issues under the Commission’s mandate,” the statement said, adding that “we continue to work towards resolving issues and concerns as well as anticipate needed reforms within our sphere of responsibility.”

Which regions attract the most investments?

By Jochebed B. Gonzales, Senior Researcher
Filipino and foreign investors are expected to inject some P185 billion in the form of capital investments, data from the Philippine Statistics Authority showed.
Region III (Central Luzon) was the biggest recipient among regions during the first quarter with P80.3 billion in approved investment pledges by investment promotion agencies. It was followed by Region IV-A (Calabarzon) with investment commitments amounting P60.6 billion.
The National Capital Region and Region XI (Davao Region) managed to get more than P10 billion in investment pledges, at P15.7 billion and P14.5 billion, respectively.
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PH ranks second in Taiwan's most hated countries list

A new report released this week found that the Philippines is among Taiwan’s most hated countries, ranking second after North Korea.
The results of the survey, conducted among 1,073 Taiwanese respondents by the non-government, non-profit Taiwan Public Opinion Foundation, were as follows.
Most hated:

  • North Korea (70.9 percent)
  • Philippines (52.9 percent)
  • China (43.9 percent)
  • South Korea (33.8 percent)
  • Russia (29.7 percent)

Formal relations between Taiwan and the Philippines, its closest geographical neighbor, have been tenuous in the past, but warmed in recent years with the signing of Taiwan’s New Southbound Policy in 2016.
The document formalized Taiwan’s commitment to strengthening socioeconomic ties with the Philippines, and was well received by the Duterte administration.
Michael Alfred Ignacio, director for commercial affairs at the Manila Economic and Cultural Office (the Philippines’ de facto embassy in Taipei), expressed last week hopes to further realize those ties.
“We want to become Taiwan’s gateway to Southeast Asia and New Southbound countries,” Ignacio said. “[We’ve] been working very closely with Taiwan’s government to make it a reality.”
The Taiwanese Ministry of Labor lists over 150,000 overseas Filipino workers (OFWs) currently employed across Taiwan’s households, construction sites, and manufacturing plants, amounting to the third largest group of immigrant workers in the country.
Taiwan was also the second largest source of foreign investments in 2017, accounting for 10.3 percent (P10.8 billion) of total applications.
These strengthening ties, however, have been slow to curb negative sentiments from the Taiwanese public.
But while the Philippines ranked second on the most hated list in 2017 as well, this year’s 52.9 percent showing was an improvement from the previous year’s 57.3 percent, marking a small, but positive shift under the Duterte administration.
Similarly, while North Korea also topped the list in 2017, the number of respondents noting an unfavorable opinion of North Korea has dropped considerably.
From 81.6 percent in 2017, that number has gone down roughly 11 percentage points to 70.9 percent. Experts attribute this positive change to the recent US-North Korea summit held in Singapore earlier this month.
Among those viewed most favorably by Taiwanese respondents were Singapore, Japan, Canada, the European Union, and the United States. — Santiago J. Arnaiz
Note: Estimates from the Philippine Statistics Authority released in May 2018 place the number of OFWs in Taiwan at roughly 88,000 (based on data collected between April and September 2017).
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Construction of 10 big-ticket infrastructure projects to start within the year — DoF

CONSTRUCTION WORKS for 10 of the 75 key large-scale infrastructure projects of the Duterte administration are set to begin in the latter half of this year.
Department of Finance (DoF) data show that projects moving into the construction stage include the P4.61 billion Binondo-Intramuros bridge and the P1. 37-billion Estrella-Pantaleon Bridge, where both of which were funded by China grants.
It also includes the China-funded P4.37-billion Chico River Pump Irrigation Project and the P35.26-billion Mindanao Railway Project, Tagum, Davao, Digos segment that is split between the government budget and China loans.
The Panguil Bay Bridge Project worth P4.86 billion financed by Korea official development assistance (ODA) will also start in the second half of the year, as well as the P1-billion repair of revetment and parapet walls and drainage improvements along Pasig River from Delpan Bridge to Napindan Channel, funded by an undetermined ODA source.
There are also four public-private partnership (PPP) projects readied for construction, namely the P3.33-billion mixed-income housing center, P1.78-billion government center, P850-million commercial center components of the Clark Green City.
It also includes the New Bohol Airport operations and maintenance PPP concession worth P2.34 billion. — Elijah Joseph C. Tubayan

GSIS warns members of penalties for overdue loans

The Government Service Insurance System (GSIS) urged its members to settle past due loan amounts until end-September to avoid further penalty charges.
“Paying off your loan will… enable you to avail of other GSIS benefits which you could not enjoy if you have defaulted on your loans,” GSIS President and General Manager Jesus Clint O. Aranas was quoted as saying in a statement Thursday.
The state pension fund said it will start collecting penalties and surcharges on past due loan accounts starting October 1.
According to Mr. Aranas, the pension fund’s “forgone” interest income from loan investments will be aggravated if GSIS continues to refrain from collecting penalties.
At present, GSIS is not collecting surcharges on past due loan accounts on members that are in active service.
GSIS said a way to settle members’ loan account is through the availment of Enhanced Conso-loan Plus program.
Clients can also avoid the predicament of having their retirement pay eaten up by loan balance by restructuring their salary loan accounts through the Enhanced Conso-loan Plus program.
The pension fund is extending the restructuring scheme to help its members ease their financial burdens to enjoy their full benefits in their retirement. — Karl Angelo N. Vidal

House bill filed seeking to assign more school nurses in public schools

A house bill (HB) seeking to establish a school health and safety office in public schools has been filed to address inadequacy in the nurse to student ratio.
Aangat Tayo Representative Harlin Neil J. Abayon III introduced on June 19, House Bill 7874, “School Health and Safety Act of 2018.”
“At the DepEd (Department of Education), the school nurse to student ratio they are following is 1:5000 and the allocation of school nurse items is not by school, but by school division which means by province or by city,” Mr. Abayon stated in the explanatory note of the bill.
“With this kind of policy, many schools have no school nurses on duty to take charge of the many school health and nutrition activities,” he added. — Charmaine A. Tadalan

Peso strengthens on BSP policy rates decision

The peso strengthened a tad against the dollar on Thursday, June 21, following the local central bank’s decision to raise its interest rates.
The peso closed Thursday’s session at P53.46 against the greenback, two centavos stronger than the P53.48-per-dollar finish on Wednesday.
The peso immediately traded stronger, opening the session at P53.39 per dollar. Its intraday high stood at P53.35 versus the US unit, while its worst showing was at P53.50.
Dollars traded soared to $860.95 million from the $650 million that switched hands the previous day.
A trader said that the peso traded the same as Wednesday as investors “bought heavily given the very strong dollar against most currencies.”
“However, we also saw heavy selling near P53.50, so the level of resistance was put on hold,” the trader said.
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said: “[The peso] was pretty strong throughout the day and this may be because of the rate hike.”
The Bangko Sentral ng Pilipinas raised its policy settings by another 25 basis points during their fourth review for the year. Rates now stand at a 3%-4% range.
The rate-setting Monetary Board decided to hike its benchmark rates as “inflation expectations remained elevated for 2018 and that the risk of possible second-round effects from ongoing price pressures argued for follow-through monetary policy action.”
“We’re also seeing more volatility in the exchange rate, which potentially adds to the dynamics on inflation that we need to be careful about,” BSP Governor Nestor A. Espenilla, Jr. said following the policy meeting.
“But trade spat uncertainties remain and Asian markets are bearing the brunt including the currencies,” Mr. Asuncion noted.
Since last week, the United States and China has been exchanging threats on slapping tariffs in its imports, sparking concerns of a looming trade war.
On the other hand, Michael L. Ricafort, head of the Economics and Industry Research Division of Rizal Commercial Banking Corp., said the peso hit its intraday high after the Philippine Stock Exchange index (PSEi) entered the bear market territory or at least a 20% slump from its peak.
The PSEi was down 2.2% on Thursday to close at 7,098.15, the lowest closing rate in nearly one-and-a-half years or since Jan. 5, 2017.
For Friday, the trader expects the peso to move between P53.30 and P53.50 against the dollar, while Mr. Asuncion gave a slightly wider range of P53.30-P53.60.
“The local currency might further strengthen [on Friday] on likely softer US initial jobless claims data, which is the leading indicator of U unemployment,” another trader said, expecting the peso to play between P53.35 and P53.50 against the US currency. — Karl Angelo N. Vidal

PLDT offers networking solutions to improve connectivity of enterprise customers

PLDT Enterprise of PLDT, Inc. announced on Thursday, June 21, it will start offering software-defined wide-area network (SD-WAN) technology to its enterprise customers, aiming to help businesses in digitization efforts.
In a statement, the listed company said the technology is intended to help businesses become “more agile” in its workflow by providing better connection.
“SD-WAN interconnects enterprise networks, data centers, and the cloud with each other—enabling customers to be agile despite geographical distances via a powerful and secure platform,” it said.
PLDT Vice President and Head of Enterprise Core Business Solutions Jojo Gendrano said they are partnering with Cisco for its SD-WAN offer. — Denise A. Valdez

City Savings Bank gets BSP approval to acquire PR Savings

The Bangko Sentral ng Pilipinas has approved the plan of UnionBank of the Philippines’ savings lending arm to acquire Philippines Resources Savings Bank Corp. (PR Savings) of the Ropali Group.
The Abotiz-led lender said in a regulatory filing Thursday that the acquisition of 100% common shares in PR Savings by UnionBank’s subsidiary City Savings Bank was approved by the BSP.
In a letter sent on June 20, the central bank has also authorized in principle the merger between PR Savings and City Savings, with the latter as the surviving entity.
“The acquisition is in line with the company’s goal to expand its mass market reach consistent with its vision to promote inclusive growth in the country,” UnionBank said in the disclosure.
In January, City Savings said it has signed a share purchase agreement with the Ropali Group to fully acquire PR Savings. — Karl Angelo N. Vidal

BSP relaxes rule on rediscount loans

Banks will soon have more leeway in acquiring short-term funding from the Bangko Sentral ng Pilipinas (BSP) as the regulator is accepting syndicated loans as collateral for rediscounting.
BSP Circular 1008 has relaxed the central bank’s rules on rediscount loans by the “removal of the P3 billion cap per bank on rediscountable National Food Authority papers and the acceptability of syndicated loans and loans with underlying real estate collaterals under Mortgage Trust Indentures for rediscounting and emergency loans.” — Melissa Luz T. Lopez

PSEi slides 2.25% after BSP rate hike

By Arra B. Francia, Reporter
Local equities plummeted on Thursday as bearish sentiments hounded the country, following the Bangko Sentral ng Pilipinas (BSP)’s second rate hike and the continued exit of foreign funds from the Philippine market.
The bloodbath continued for the sixth straight day at the Philippine Stock Exchange index, spiraling down 2.25% or 163.47 points to 7,098.15. The local market is now officially in bear territory, as it has declined by more than 20% from its peak of 9,078.37 intraday of Jan. 29.
The broader all shares index also gave up 2.04% or 91.01 points to close at 4,369.21.
“It seems to me that the decline was caused by a combination of factors: there’s pressure on local rates to rise all the way up to 2019, no let up in foreign selling (to date they’ve let go of P60 billion worth and they still have about P120 billion to sell),” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.
Net foreign outflows swelled to P2.27 billion, significantly higher than the P772.56 million recorded on Wednesday.
The BSP during its June 20 policy meeting decided to hike rates by 25 basis points, marking the second increase for the year in a bid to temper rising inflation and to keep local yields competitive.
“We were expecting the BSP to wait to hike in August, but policymakers may have opted to act sooner given upside risks to already-above-target inflation in coming months and the further depreciation in the Peso (one of the worst-performing currencies in Asia) since early June,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
All sectoral indices ended in negative territory, led by the property sub-index which lost 3.54% or 125.62 points to 3,421.98. Services followed with a decline of 3.46% or 49.67 points to 1,386.68.
Industrials slumped 1.98% or 208.08 points to 10,301.43, followed by mining and oil that shed 1.83% or 177.17 points to 9,529.67. Holding firms dropped 1.68% or 120.88 points to 7,058.28, while financials lost 1.09% or 19.67 points to 1,788.73.
A total of 1.91 billion issues switched hands valued t P7.89 billion, higher than the previous session’s P5.33 billion. Decliners outpaced advancers, 166 to 36, while 41 issues remained unchanged.

IRC to implement structural changes ahead of Makati subway construction

IRC Properties, Inc. is making key structural changes to its company in preparation for the construction of its proposed subway system in Makati.
In a disclosure to the stock exchange on Thursday, June 21, IRC said its board of directors has approved to change the company name to Philippine Infradev Holdings, Inc. (PIHI). It will then act as a holding firm for investments in real estate development and infrastructure project.
“The amendment shall enable the company to expand its business operations to include infrastructure and real estate development projects,” the company said. — Arra B. Francia