THE Senate committee on accountability of public officers and investigations (also known as Blue Ribbon) plans to summon the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) for quarterly sessions to monitor their collection of taxes.
“I would like to call a Blue Ribbon Committee meeting every quarter as oversight for accountability of public officials together with Loren Legarda’s finance committee so we can guard carefully the collections of Customs and BIR,” Committee Chairman Senator Richard J. Gordon said Tuesday, during a Senate investigation on the alleged corruption at the BoC.
Mr. Gordon presented documents revealing the extent of uncollected duties and value-added taxes (VAT) that the agencies failed to raise from imports.
“It’s a tsunami of leakage of taxes, of smuggled goods,” he said, citing a 2017 study by the University of Asia and the Pacific which estimated that P905 billion was foregone from 2011 to 2015 due to smuggling and VAT leakage.
He added that another P423 billion was uncollected from imports from China from 2012 to 2016. This included duties and VAT uncollected by the BoC based on his computations from Chinese and Philippine official data on the Mainland’s exports to the Philippines.
Mr. Gordon also alleged that several consignees or importers appeared to pay minimal duties to the BIR relative to the volume of goods being imported.
One company allegedly paid only P15,629 to the BIR despite having imported P833 million worth of goods over years. Another company allegedly imported P684 million worth of goods over five years but only paid P62,597 worth of taxes.
Mr. Gordon said the quarterly meeting will generate progress reports from the BoC and BIR, specifically on their response to the allegations of undercollection.
“We need to monitor this every quarter and that’s what I intend to do,” he told reporters.
Customs commissioner Isidro S. Lapeña has agreed to the quarterly sessions, and added that the agency will meet with the BIR to improve the collection of taxes.
“We will meet with BIR and we will ensure that what is due to government should be given to government,” he said. — Camille A. Aguinaldo
INTEROPERABILITY of payment systems in use at expressways operated by San Miguel Corp. (SMC) and Metro Pacific Investments Corp. (MPIC) will be achieved by the end of April, a regulator said.
Toll Regulatory Board (TRB) Executive Director Abraham P. Sales said that tests are being performed in the South Luzon Expressway (SLEx) and Skyway to make the EasyTrip radio frequency identification (RFID) system, used in Metro Pacific-operated expressways, interoperable with SMC-operated expressways.
According to reports, Autosweep RFIDs can now be used for the North Luzon Expressway (NLEx), Subic-Clark-Tarlac Expressway (SCTEx), and the Manila-Cavite Expressway (Cavitex). EasyTrip RFIDs however are not yet compatible for use in SMC-operated expressways such as South Luzon Expressway (SLEx) and the Skyway.
“What I understand is towards the end of April. That is the commitment made by San Miguel (Corp.) (SMC),” Mr. Sales said during a briefing on Easter preparations by the Department of Transportation and Metro Pacific Tollways Corp.
The government and 17 companies operating 13 expressways in Luzon signed in September an agreement for toll interoperability and interconnection of payment systems.
MPTC extends assistance operations
Separately, MPTC said it will be expanding its assistance operations to motorists to other holidays. The tollways arm of MPIC is expanding the coverage of its annual motorist assistance program to include not only Easter, All Saints’ Day (Undas), and the Christmas holidays, but also long weekends such as Araw ng Kagitingan (April 7-9), National Heroes’ Day (Aug. 25-27), and Bonifacio Day (Nov. 30-Dec. 2).
The company will also render 24-hour towing services for Class 1 vehicles for the holidays indicated, instead of the usual 12 hours.
MPIC is one of three key Philippine units of Hong Kong-based FirstPacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo
JUSTICE SECRETARY Vitaliano N. Aguirre II confirmed in a press conference on Tuesday that the Department of Justice (DoJ) recommended the entry of alleged pork barrel scam mastermind Janet L. Napoles into its Witness Protection Program (WPP).
“Sabi namin file mo lang ’yan, bahala na Sandiganbayan,” Mr. Aguirre told reporters in Malacañang. (We said file it, the Sandiganbayan will decide on it.)
“Napoles’ lawyers informed us that she is now ready to tell all and execute an affidavit regarding the (2013) pork barrel scam. We accepted it and agreed to put her in WPP,” Mr. Aguirre said, explaining the DoJ’s move in her behalf.
The decision to place Ms. Napoles — the alleged mastermind of a scandal that saw the misuse of an estimated P10 billion worth of government funds — under the DoJ’s WPP was not disclosed until last Friday, March 16, despite her admission into the program as early as Feb. 27.
The Justice chief added: “I told her lawyers to get Janet out of Taguig jail and file the appropriate motion before the divisions in Sandiganbayan. Ang gusto niya kasi… (Ms. Napoles’ lawyer, Stephen David, wanted) another opinion (that, since) you are covered by WPP, that Napoles can be taken out already of the Taguig detention cell because there’s a threat to her life, and be put in a safe house outside Taguig.”
“’Di ako pumayag sa (I did not agree with) lawyer David….We need order from Sandiganbayan. The lawyer (Mr. David) asked the Executive Secretary (Salvador C. Medialdea) kung pwedeng baliktarin ’yung akin (if what I decided could be overturned), but Medialdea’s opinion is the same as mine.”
“I have an open mind. Pwede naman ako ang mali, siya ang tama.” (I can be wrong and he could be right.)
Mr. Aguirre also explained that the appointment with Mr. Medialdea “two or three weeks ago, I can’t remember,” was sought by Mr. David, adding that “malimit iyan dito sa Palasyo (he’s in the Palace a lot).”
For his part, Mr. Medialdea in a statement denied giving legal advice to Mr. David, as the latter disclosed to the Sandiganbayan on Monday.
“Why would I give a legal advice to a lawyer for his client? If I were his client I will fire him,” Mr. Medialdea said in his statement.
Mr. Aguirre, in his press briefing, said of Mr. Medialdea’s communication with Mr. David: “It’s not a legal advice. It’s an opinion.”
Senator Grace Poe-Llamanzares in her statement said: “How can Janet Lim Napoles NOT appear as most guilty when she has been identified as the ‘pork barrel queen’? The pieces of evidence against her even led to the indictment and detention of several high-profile public officials.”
“Tinamad na naman ba ang prosekusyon sa pagkalap ng mgaebidensya?” she also said. “Bakit kailangang bigyan ng special treatment ang isang tao?” (Has the prosecution become lazy once again in gathering evidence?…Why give special treatment to this one person?).
The opposition Liberal Party in its statement said in part “the government must pursue (Ms. Napoles’) criminal prosecution, instead of using the people’s money to give her refuge and protection through the Witness Protection Program.” — Dane Angelo M. Enerio with Arjay L. Balinbin
SENATOR Grace S. Poe-Llamanzares presented to the plenary on Tuesday the consolidated bill amending the 82-year-old Commonwealth Act No. 146 or the Public Services Act.
In her sponsorship speech, the senator said the passage of the bill into law would allow the telecommunications industry’s new entrant, the so-called “third player,” to fully operate in the country.
“To all the statements of the President on the third telco player, fourth, fifth or if there is any, this is the law that would give the authority for this to become a reality,” said Ms. Llamanzares, chair of the committee on public services.
Senate Bill No. 1754 was the substitute bill for proposals filed by Senators Llamanzares, Paolo Benigno A. Aquino IV, Emmanuel Joel J. Villanueva, Richard J. Gordon, Juan Miguel F. Zubiri, Sherwin T. Gatchalian and has taken into consideration House Bill No. 5828. The proposed measure was co-sponsored by Mr. Gatchalian, chair of the Senate committee on economic affairs.
Ms. Llamanzares said the proposed measure has provided a statutory definition of public utility, which have been used interchangeably as public services over the years and have caused confusion on whether certain sectors are subjected to foreign equity restrictions.
“The proposed bill recognizes that public service is the much broader term, the umbrella term so to speak, while the term public utility is just a subset and is much smaller in scope under public service,” she said.
According to the bill, public utilities would be treated as “natural monopolies,” which would be subjected to foreign equity restrictions of the 1987 Constitution.
Section five of the bill defined public utilities as “a subset of public services, it refers to the direct transmission or distribution, and delivery through a network, of a commodity or service of public consequence.”
It listed three public utilities exclusively as the transmission of electricity, distribution of electricity as well as water works and sewerage systems.
Ms. Llamanzares said the clear definition meant the liberalization of other public services from constitutional restrictions on foreign equity, ownership and operations.
“The natural effect of the proposed definition of public utility is the freedom of all public services not listed in the three public utilities,” she said.
With the passage of the bill, the senator said she expects a “meaningful competition” in the business sector as more domestic and foreign players would come into the market “to win the satisfaction of the consuming Filipino people.”
“In this way, they would be competing to give quality services and goods at the lowest price for Filipinos. We are expecting to erase of “take it or leave it” attitude of the monopolies who took advantage in the past decades and century,” she said.
The senator assured that the bill would not affect existing regulations on public services and would not diminish constitutional restrictions on foreign equity, allaying fears of some critics claiming that regulations and restrictions would be relaxed.
The bill also suggested a formula on the reasonable rate of return, which would consider real-time fluctuations, inflations and other factors rather than the fixed rate of return set by the Supreme Court at 12%.
It has also provided stiffer penalties for violators with a fine of P5 million per day of violation as well as “disgorgement of profits” and additional “treble damages,” a far cry from the original penalty of P200 per day of violation.
It also sought to update and upgrade the deregulation powers of the Public Service Commission.
“SBN 1754 is a wonderful example of the exercise of legislative power in relation to the ever-changing needs of the Filipino people and the country as well as changes brought about by investments and economic trends worldwide,” she said.
PRESIDENT Rodrigo R. Duterte has ordered the Department of Environment and Natural Resources (DENR) to revoke the licenses and permits of mining companies that supply explosives to the Communist Party of the Philippines-New People’s Army (CPP-NPA).
Presidential Spokesperson Herminio Harry L. Roque, Jr. said Mr. Duterte gave his directive to the DENR at the executive committee meeting of the National Security Council (NSC) held at the Malacañan Palace on Monday, March 19.
“The President directed the Department of Environment and Natural Resources to revoke the licenses and permits of mining companies violating explosive handling rules or reported to be supplying explosives to communist terrorist groups,” the spokesman told reporters in a press briefing at the Palace on Tuesday, March 20.
Mr. Roque likewise announced that the military and police who are also found violating laws on explosives will face automatic expulsion.
Another directive that Mr. Duterte issued was the creation of a task force for Mindanao IP convergence, which is intended “to address the plight of indigenous peoples (IPs) in Mindanao.”
“Also at yesterday’s meeting, security measures against threats of violence by terrorists particularly at ports and terminals and efforts to secure and develop the Philippine Rise were discussed,” the spokesman added.
The meeting, according to Mr. Roque, ended at around 3 a.m.
The President was joined by Executive Secretary Salvador C. Medialdea, Budget Secretary Benjamin E. Diokno, Communications Secretary Martin M. Andanar, Foreign Affairs Secretary Alan Peter S. Cayetano, and National Security Adviser Hermogenes C. Esperon, Jr.
Also on Tuesday, at the 121st founding anniversary of the Philippine Army (PA) held at the Fort Bonifacio in Taguig City, Mr. Duterte lauded the military for their contribution in maintaining peace and order, especially in the rehabilitation of Marawi City in Mindanao.
He announced too the release of P500 million in medical assistance and P50 million for the V. Luna General Hospital. Vice-President Maria Leonor “Leni” G. Robredo, Department of National Defense (DND) Secretary Delfin N. Lorenzana, and Armed Forces of the Philippines (AFP) Chief of Staff General Rey Leonardo B. Guerrero joined the Commander-in-Chief on the stage.
The President, before reading his prepared speech, apologized for being late.
“Natapos po kami, Ma’am (Ms. Robredo), ng 3, ang pinag usapan namin ikaw,” the President told the Vice President in jest. (We ended at 3 a.m., ma’am. We talked about you.)
I’m one of the few who have never been to Boracay, so I won’t know what I will be missing if President Rodrigo R. Duterte makes good his threat to close down for one year one of the crown jewels of Philippine tourism. But I think I have a good idea of what could happen to this island resort, which Conde Nast has ranked among the most idyllic in the world, if nothing is done to arrest its degradation.
You see, I built my very first house in Parañaque City back when the creek adjoining my property was clean enough for swimming and washing clothes, salt beds basked in the sun alongside cogon-lined Sucat Road, and one could wade in the clean waters of Laguna de Bay. I can also recall how the beach resorts in Parañaque City were favorite destinations for school and company excursions, and how my brothers and I used to swim in Manila Bay, when one could still access it from what then was known as Dewey Boulevard.
Now the creek beside my house stinks, is dangerously toxic, and routinely delivers flood waters into the subdivision. Sucat Road is a traffic hell-hole. And Laguna de Bay and Manila Bay have become environmental disasters.
As sure as night follows day, that same dire fate will befall Boracay, as well as other treasured tourist spots in our country, unless we, as a people, take responsibility for protecting our environment and demand action from our local governments, while performing our civic duties.
While I fully appreciate the alarm bells rung by Duterte to get the so-called secretary of Environment, the so-called secretary of Tourism, and the so-called governor of Aklan off their fat asses, I think it is a shame that it needs the president to get these so-called responsible officials to do their jobs — duties and responsibilities that they and the local governments should automatically and routinely be attending to.
Now that I’ve gotten that off my chest, let me concede that cleaning up, protecting, and nurturing the environment is much easier said than done — and the best that Duterte and national and local officials can do is to slow down the degradation. Unless drastic corrective measures are taken.
The harsh fact is that environmental degradation and outright destruction is a worldwide plague. Some of the most popular tourist destinations and most advanced countries in the world are among the worst polluters.
Venice, whose canals evoke visions of romance and beauty, suffers from the kind of pollution that would make Laguna de Bay and Manila Bay seem pristine. Decades of trash, along with human waste dumped into the waters via an open-air sewage system, caused one travel writer to run the headline: “The stuff in the canals is not the stuff of romance.”
Last year, a major clean-up project was planned by Venetian authorities, to dredge sludge accumulated for over half a century and fix the sewage disposal system to minimize the foul smell.
The stink is worse during low tide. But the situation becomes more hazardous when the canals overflow and one has to negotiate the flooded streets. In times like those, it is not unusual to see makeshift gangplanks and stepping stones being set up on the sidewalks for pedestrians to walk on. Hawkers also sell makeshift “boots” to tourists (actually large pieces of plastic wrapped and tied around the legs to prevent getting wet).
It truly reminds you of Manila during the rainy season.
If you think the Philippine environmental situation is bad, consider one study that lists the most polluted cities in the world as Jodhpur, India; Tangshan, China; Kampala, Uganda; Agra, India; Bushehr, Iran; Narayangong, Bangladesh; and Hengshui, China.
Another study ranks the five most polluted cities as New Delhi, India; Dhaka, Bangladesh; Beijing; Mexico City; and, Ahvaz, Iran.
CRECENCIO I. CRUZ
Note that Metro Manila is not (not yet?) in either list.
The second study lists the following cities as the least polluted: Oslo, Norway; Bern, Switzerland; Calgary, Canada; Honolulu; and Whitehorse, Canada.
Interestingly, one reason why Oslo is so clean is because of a technology that processes human waste and converts it into transportation fuel.
In Japan, it’s called Poop Power. Toyota has begun to process excrement to extract hydrogen that, in turn, is used for its hydrogen-fueled cars. Cow dung is also processed for the same purpose, causing one pundit to quip that the Philippine Congress could be a rich source of renewable energy material due to all the BS being routinely spewed.
But, levity aside, there could be a solution to the seemingly insurmountable problem of garbage that make Smokey Mountains out of our country’s cities and major municipalities.
Several European countries have been actively converting garbage into energy. Sweden is said to be leading the way, followed by the Czech Republic, Denmark, Norway, and Finland. According to one report, “Every day, some 300 trucks arrive at a plant outside the city of Goteborg on the west coast of Sweden. They carry garbage but they are not there to dump the cargo. Instead, they deliver it to the plant’s special ovens, which burn it, providing heat to thousands of local homes.”
According to a spokesman for Renova, the energy company operating the plant, the only fuel used by the plant is trash and it provides one-third of the heat for households in the region.
Continued the report: “Across Sweden, 950,000 homes are heated by trash; this lowly resource also provides electricity for 260,000 homes across the country according to statistics from Avfall Sverige, Sweden’s national waste-management association.”
This could open up an opportunity for the Philippines (as well as for Canada, which reportedly exported tons of trash to our country and was asked to take the garbage back).
The Swedes are said to recycle 47% of their waste and use 52% to generate heat, leaving less than 1% for the garbage dump. The “problem” is that there has actually been a shortage of garbage to meet Sweden’s heating needs. The German, Danes, Dutch, and Belgians are facing the same shortfall. Sweden is said to be importing trash from other countries — up to 800,000 tons in 2014 alone.
Maybe some entrepreneurial taipans or the Pangilinan or the Ayala conglomerates can look into this opportunity.
In sum, Duterte’s foray into environmental protection should be viewed as simply the tip of the garbage dump. Hopefully, what he and his officials threaten to do will not simply be for press release purposes.
So much more can be done, not just to solve a stinking problem but to literally convert trash into cash.
Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.
Foreign Direct Investments (FDI) recorded an all-time high in President Rodrigo R. Duterte’s first full year in office, reaching $10 billion in 2017 and surpassing the government’s $8 billion target. The 2017 figures came on the heels of the widely circulated US News & World Report, which cited the Philippines as one of the top countries to invest in, even outranking our neighbors such as Indonesia, Malaysia, and Singapore. This is a turnaround seeing as only a few months ago, a lawmaker expressed his alarm at the 90.3% drop in new FDI inflows in the first half of 2017.
The strong FDI performance is a welcome respite from the controversies that have clouded our country’s political landscape. More importantly, this has cemented the Philippines’ status as an emerging investment destination.
DISAGGREGATING THE FDI INFLOWS
The Philippines registered inflows of $10 billion for 2017, growing by 21.4% year on year. The central bank attributes this to the country’s sound macroeconomic fundamentals and growth prospects. Top industries receiving FDI include manufacturing, gas, steam and air-conditioning supply, real estate, construction, wholesale and retail trade. However, over a third of the equity capital placements, or new FDI inflows, were directed into the manufacturing sector.
Foreign investments in manufacturing grew by 244% in 2017, coming from a low base in 2016. In addition to strong domestic and external demand for locally manufactured products, the surge in manufacturing investments can be partly attributed to Japan Tobacco Inc.’s acquisition of Mighty Corp. in September 2017. This year, FDI in manufacturing is expected to grow by 10% to 15%. The increased manufacturing investments is a promising development, amid the government’s efforts to pursue reforms to revive the sector. After all, manufacturing is expected to provide more stable jobs, especially for the less skilled members of the labor force.
In terms of source country, the Netherlands topped the list, followed by Singapore, the US, and Hong Kong. So far, Duterte’s overtures towards China have yet to translate into a significant surge in FDI inflows. In 2017, equity placements from China only amounted to $28.8 million, or less than 1% of the total, a paltry figure compared to $1,573 million from the Netherlands or even the $683 million from Singapore.
HOW DO WE FARE AGAINST OUR NEIGHBORS?
The Philippines has come a long way from being a laggard in FDI inflows, slowly overtaking some of our neighbors in the region such as Malaysia and Thailand. Despite this progress, the country can still take advantage of some opportunities. For example, rising labor costs and an aging population in China have encouraged several firms to relocate their operations in other Southeast Asian countries. Vietnam has benefited greatly from manufacturers looking for a low-cost alternative to China. Although the full-year FDI data for Vietnam is still unavailable, the country has already raked in over $10.1 billion for the first three quarters of 2017.
Meanwhile, Indonesia, which UNCTAD (United Nations Conference on Trade and Development) tagged as the most promising Southeast Asian host country in the next two years, registered FDI inflows of $22 billion in 2017, rebounding from its unusually dismal record of $4.5 billion in 2016. Interestingly, China became Indonesia’s second largest source of FDI in 2017, overtaking Japan. Chinese funds, mostly invested in the construction of power plants and ports, is expected to pick up in the years to come as Indonesia, like the Philippines, is gearing up for its infrastructure drive.
INSTITUTING REFORMS
While the Philippines is undoubtedly enjoying increasing international interest, there is still a lot of space to institute much-needed reforms, especially as other Southeast Asian countries are also pursuing their own policy and infrastructure developments to entice investors. The 2017-2018 Global Competitiveness Report cited the inefficient government bureaucracy, inadequate infrastructure supply, corruption, and tax regulations and tax rates, as among the most problematic factors for doing business in the Philippines. In line with President Duterte’s directive to provide a more conducive environment for investors, government bureaucrats have initiated a host of reforms, from aggressive infrastructure buildup plans to reducing red tape.
With regard to economic liberalization, President Duterte issued Memorandum Order 16 in November 2017, directing the National Economic and Development Authority to ease foreign investment restrictions. The 11th Foreign Investment Negative List, which the government committed to release some time last year, is still pending the president’s approval. On the legislative side, the Ease of Doing Business bill, which seeks to cut red tape, is already in the advanced stages in Congress. The Senate is also deliberating on the proposed amendments to the Public Service Act to define “public utility” and open the sector to foreign participation.
A CLOUD OF UNCERTAINTY?
One of the more immediate risks for the business community is the upcoming tax package 2. The second package proposes to lower corporate income tax conditional on rationalizing fiscal incentives. Based on its assessment of the finance department’s proposal, BMI Research cautioned that the second package will dampen the country’s competitiveness and create uncertainties for investors. The House of Representatives has yet to file its own version of the bill, which could deviate from the original proposal. The final form must ensure that we don’t sacrifice our competitiveness.
The strong FDI performance is a vote of confidence in the country’s economic prospects. However, the government should continue to implement measures that would make the business environment more investor-friendly, otherwise, we’ll lose out to our more competitive neighbors.
Weslene Uy is Senior Economic Research Associate at Stratbase ADR Institute.
THE RETIREMENT of Hong Kong billionaire Li Ka-shing marks another milestone in a vast wealth transfer now underway from a scrappy generation of Chinese empire builders to their heirs.
Li, Hong Kong’s richest man, announced on March 16 that he’ll step down as chairman of CK Hutchison Holdings Ltd. and CK Asset Holdings Ltd., making way for his eldest son, Victor Li.
While Li Ka-shing was dubbed “Superman” in the local media for his magic touch and has been lionized over the decades, his son may be judged harshly if he doesn’t live up to public expectations.
“The second generation always has a lot of pressure,” said Kevin Au, director of the Center for Family Business at the Chinese University of Hong Kong. “Compared to their fathers, they’re always being looked down upon by public and by business partners,” he said. “Their fathers are heroes.”
Here’s a snapshot of five of Hong Kong’s most important business families that have passed the baton, or will soon, to the next generation.
THE LI FAMILY Founder: Li Ka-shing, 89, was born in 1928 and moved from Guangdong to Hong Kong during World War II. Starting from a company making plastic flowers, Li built a global empire in ports, property, telecoms, energy, retail, and other businesses. Li said in 2012 that his eldest son Victor Li would be his successor, yet it took about six years for the tycoon to relinquish managerial control of flagship CK Hutchison and other Li-controlled companies.
Heir: Victor Li, a 53-year-old Stanford-trained engineer, has been groomed for decades to take over the family business. In 1996, after Victor was kidnapped, Li Ka-shing paid a ransom of HK$1 billion to a gang led by “Big Spender” Cheung Tze-keung, according to reports in the South China Morning Post and other media. “A father would never give a son a perfect score,” the elder Li told reporters in January 2018 when asked about his son’s performance, “but Victor has 90 points out of 100.”
THE LEE FAMILY Founder: Lee Shau Kee, 90, was born in Guangdong and immigrated to Hong Kong in 1948 during the civil war between China’s Communists and Nationalists. A cofounder of Sun Hung Kai Properties Ltd., he left in 1973 and founded Henderson Land Development Co. In 2014, he told the South China Morning Post he would “ gradually” retire but did not have a specific date in mind.
Heir: The elder Lee has yet to designate one. His son Peter Lee is co-vice chairman of Henderson Land. As chairman and president of Henderson China Holdings Ltd., Peter is the family point person for developing its mainland business. He shares the co-vice chairman role with his brother, Martin Lee, who’s also chairman and managing director of Henderson Investment Ltd. and chairman and CEO of Miramar Hotel & Investment Co.
THE CHENG FAMILY Founder: Cheng Yu-tung was born in 1925 in Guangdong. He fled war-torn China for Macau, finding a job in a gold shop and later marrying the boss’s daughter. After the war, he moved to Hong Kong, where he founded New World Development Co. in 1970. Under his leadership, New World built Hong Kong landmarks such as the convention center that was the site of the city’s 1997 handover to Chinese rule. He took Chow Tai Fook Jewellery Group Ltd. public in 2011 and announced his retirement the next year. When he died in 2016, he was Hong Kong’s third-richest tycoon.
Heir 1: Henry Cheng, son of Cheng Yu-tung, was born in Hong Kong in 1946. After taking over in the late 1980s, he led the acquisition of the Ramada hotel chain. After a partnership with Donald Trump soured, Trump unsuccessfully sued him in 2005 over the proposed $1.8-billion sale of riverfront property in Manhattan. Cheng went on leave last year for several months because of an unspecified illness.
Heir 2: Next in line is Henry’s son Adrian Cheng, who became New World’s vice-chairman last year. He received his bachelor’s degree from Harvard in 2002 and is founder of an art-themed property developer and a foundation to support emerging artists. His sister Sonia Cheng, also a Harvard graduate, is chairman of New World Hotel Management Ltd. and runs the Cheng-controlled company that manages properties including the Carlyle in New York and Hotel de Crillon in Paris.
THE KWOK FAMILY Founder: Kwok Tak-seng, a grocery wholesaler from Guangdong, immigrated to Hong Kong after the war and cofounded Sun Hung Kai Properties Ltd. in 1963. Another cofounder was Lee Shau Kee, who later left to start rival Henderson Land. Kwok died in 1990.
Heir 1: The patriarch’s son Walter Kwok, who was kidnapped in 1996 by the same gang leader who abducted Victor Li, ran Sun Hung Kai until 2008, when a family squabble led to his ouster. Current chairman Raymond Kwok, 64, was acquitted in a 2014 corruption trial that led to the conviction of his brother, former co-chairman Thomas Kwok, who was sentenced to five years in prison.
Heir 2: Adam Kwok, an alumnus of Stanford University and Harvard Business School and son of Thomas, is a board member. So, too, is Raymond’s son Christopher Kwok, who graduated from Harvard College and Stanford Graduate School of Business.
THE PAO/WOO FAMILY Founder: Y.K. Pao was born in the eastern Chinese city of Ningbo in 1918. After fleeing to Hong Kong around the time of the Communist victory in China’s civil war, he built a successful shipping company, gained control of two British trading houses and expanded into property. He retired in 1986 and died in 1991.
Heir 1: Peter Woo, Pao’s son-in-law, was born in Shanghai in 1946. He took over management of Wheelock & Co. and Wharf Holdings Ltd. after Pao’s retirement and expanded into cable TV, telecommunications and broadband internet. He made a foray into politics with an unsuccessful campaign to become Hong Kong’s first chief executive after the 1997 resumption of Chinese rule. He retired as Wheelock chairman in 2013 and is now officially the company’s owner/senior counsel.
Heir 2: Wheelock chairman Douglas Woo, Peter’s son, studied architecture at Princeton University and worked as an analyst at UBS Group AG before joining Wheelock in 2005. On March 9, Wheelock announced plans to buy a 7,318-square-meter site around Hong Kong’s old airport from troubled Chinese conglomerate HNA Group Co.
ConCom adds educational qualification for lawmakers in recommendations
FORMER CHIEF Justice Reynato S. Puno, who leads the Consultative Committee (ConCom) created by President Rodrigo R. Duterte to review the 1987 Constitution, today, March 20, said that imposing educational qualification upon those running for legislative positions would help “improve the quality of laws that will come from Congress.”
In a press briefing on Tuesday at the Philippine International Convention Center, Mr. Puno said: “We also considered the fact that right now, if you look at the members of the Congress, the House and the Senate, you will find out that there are very few who lack a college degree. In effect, the committee recommendation is just an affirmation of the votes of the people in the past.”
Senior technical assistant to the chairman Ding I. Generoso noted earlier in the briefing that a college degree per se is not required as there is an existing Executive Order (EO) 330 issued by former President Fidel V. Ramos. The EO, which recognizes tertiary education equivalency “derived from relevant work experiences and high-level, nonformal training,” has been adopted into the committee recommendation, Mr. Generoso said. — Minde Nyl R. dela Cruz
GSIS pensioners required to make personal appearance
THE GOVERNMENT Service Insurance System (GSIS) is requiring its pensioners to make a personal appearance and confirm their data for the continuous receipt of their pension.
Exempted from the GSIS Annual Pensioners Information Revalidation (APIR) program are those 80 years old and above, disabled, abroad, or residing in Autonomous Region in Muslim Mindanao.
“For those who are unable to do it, we visit them,” GSIS President and General Manager Jesus Clint O. Aranas said, adding that pensioners abroad can be reached through online channels.
The APIR program is intended to prevent payments to unqualified recipients.
“The key here is we must be able to verify that the recipient of these benefits are genuine and eligible. That’s the only way to protect the fund,” Mr. Aranas said.
GSIS was revalidating its pensioners under the Annual Renewal of Active Status (ARAS) program, but this was halted in 2011. Since then, Mr. Aranas said, the pension fund had lost P1.6 billion in payments to unqualified recipients. Data presented showed there were 4,843 pensioners who were overpaid.
Nora Malubay-Saludares, senior vice-president in the National Capital Region, added, “For those who will not be able to appear, we will conduct home visitation before we will suspend [paying their benefits] come end-July or beginning of August.”
Ms. Malubay-Saludares explained that GSIS has discovered that some pensions are not being received by the eligible pensioners but by their relatives.
GSIS expects 363,000 pensioners to update their status from March 23 to June 30 at “almost 1,000 kiosks available in malls, major government offices as well as city and town halls.”
Ms. Malubay-Saludares added the APIR is a one-time program, and GSIS will subsequently require its pensioners to annually renew their active status during their birth month. — Karl Angelo N. Vidal
THE PESO strengthened slightly against the dollar on Tuesday as investors were still on the sidelines ahead of the monetary policy meetings of the US Federal Reserve and Bangko Sentral ng Pilipinas (BSP).
The local currency finished at P52.08 against the dollar yesterday, gaining two centavos from its P52.10 close on Monday.
The peso traded within the range the whole day, opening flat at P52.10 versus the dollar. Its intraday low stood at P52.15, while its best showing was at yesterday’s close.
Dollars traded slightly decreased to $456.2 million yesterday from the $480.3 million that changed hands in the previous session.
“[Yesterday] was super quiet. We traded within the range so nothing new,” a trader said in a phone interview.
“We’re only maintaining the range trade and we’re still waiting for the [Bangko Sentral ng Pilipinas (BSP)] Monetary Board that’s why expect the few days to be quiet for the dollar-peso.”
Economists expect the Fed to hike its interest rates by 25 basis points during its two-day meeting, which started last night. Market player are also waiting for some clues as to how many tweaks the US central bank will make thereafter.
Locally, seven out of 12 economists polled by BusinessWorld said the BSP’s policy-setting Monetary Board will keep rates steady on Thursday.
Meanwhile, another trader said the peso strengthened slightly as the dollar weakened following the upbeat euro.
“Peso closed stronger [yesterday] after positive developments on the Brexit trade agreement with the European Union (EU) and on news of hawkish cues from the European Central Bank (ECB) which temporarily made the euro and the sterling more attractive over the greenback,” the trader said. ECB policymakers are shifting their debate to the expected path of interest rates, sources told Reuters.
For today, the first trader sees the peso moving between P52 and P52.15, while the other trader gave a slightly wider range of P52 to P52.20.
“The local currency might weaken [today] ahead of the release of likely stronger US home sales data in view of the US Federal Reserve meeting on Thursday,” the second trader said. — Karl Angelo N. Vidal with Reuters
PRESIDENTIAL SPOKESPERSON Herminio Harry L. Roque, Jr. clarified that Malacañang’s suspension of classes in Metro Manila on Tuesday, March 20, was not due to a serious security threat, but rather an “actual and/or imminent threats posed by some groups.”
When asked what he meant by the imminent threat, Mr. Roque, in his briefing at the Palace, pointed to the warning made Monday by a transport group of a possible continued strike over the government’s jeepney modernization program.
“Yung threats na ’yan ay nanggagaling sa walang masakyan ang ating mga kabataan. ’Di natin sinusugal ang kapakanan ng ating mga kabataan (The threats are coming from the possibility that there would be no public transport for our youth. We do not gamble on the welfare of our youth),” he said.
Mr. Roque also explained that the suspension of classes was not linked to the government’s classification of the New People’s Army (NPA) as terrorists.
“The President has said that he will not sacrifice the safety of our students, and that is why he decided late last night to in fact suspend classes today,” Mr. Roque said.
“We reiterate that the government remains steadfast to modernize our public utility vehicles and will not be bullied or held hostage by some transport groups,” he added.
Senate committee on public services Chair Senator Mary Grace Natividad S. Poe-Llamanzares, meanwhile, said the complaints raised by drivers and operators about the modernization program are valid concerns that should not be swept under the rug.
“There should be a meeting of the minds that can only be achieved through continuous dialogue,” the Senator said in a statement. — Arjay L. Balinbin
PORTIONS of Epifanio Delos Santos Avenue (EDSA) will undergo reblocking and repair works for 12 weekends starting March 23, the Metropolitan Manila Development Authority (MMDA) announced today, March 20.
“Areas covered by the repairs are the stretch of Aurora Boulevard to P. Tuazon on the southbound side and Nepa Q-Mart to Kamuning area on the northbound side,” MMDA officer-in-charge General ManagerJose Arturo S. Garcia, Jr. said in a statement.
Contractors will be working from Friday, 11 p.m., to Monday, 5 a.m., until the weekend of June 1, just before the opening of classes for the new school year. Mr. Garcia said work will cover one lane per segment, keeping EDSA passable, although traffic slowdown is expected. “We always tell the public that any kind of obstruction will cause traffic on EDSA. This early we want the public to know about this road repair and maintenance work so they can plan their trips ahead,” said Mr. Garcia.
