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Strong LPG sales fuel Pryce profit in 2017

PRYCE Corp. posted a 29% increase in net income in 2017, driven by higher revenues from sales of liquefied petroleum gas (LPG), the company told the stock exchange on Wednesday.

The listed firm, which imports and distributes LPG under the brand name PryceGas among its businesses, said last year’s P1.25-billion profit was within its target.

Consolidated revenues rose 37% to P9.23 billion in 2017 from P6.72 billion, with sales volume growing by double-digits after the increase in LPG prices last year.

“Sales volume of LPG grew 11% to 210,000 metric tons (MT) from the previous year’s 189,000 MT. Despite this modest volume growth, revenues were up 37% because of the sharp increases in LPG contract prices during the year,” the company said.

In 2017, contract prices averaged $491 per MT, 42% or $145 higher than the previous year’s average of $346 per MT.

“Volume growth was achieved mainly in the Visayas and Mindanao (VisMin) regions, where demand is more concentrated on fuel for household cooking. Sales in the VisMin regions experienced a 22% year-on-year volume growth as compared to about 4% volume growth in Luzon,” Pryce said.

In value, sales of LPG along with cylinders and accessories stood at P8.67 billion, making up 94% of total revenues. Industrial gas sales amounted to P391.5 million, or 4% of revenues. Sales of real estate as well as pharmaceutical products accounted for the rest.

For 2018, Pryce said it would continue its expansion projects to increase the storage capacities of its marine terminals. The move, which was started about two years ago, is also aimed at bringing its products closer to the markets.

The company said all of its seven VisMin import terminals had been or would be expanded to allow each one to accommodate at least one shipload of 2,500 MT cargo.

It said the expansion of its terminals in Albuera, Leyte as well as in Sta. Cruz, Davao del Sur had been completed last year. It expects the expansion of the LPG terminals in Sogod, Cebu and Balingasag, Misamis Oriental to be completed by July and August 2018.

Pryce said the ability to discharge a shipload in a single terminal would reduce its import costs by $10 to $20 per MT.

The company will build at least 15 refilling plants in VisMin areas to make its product closer to consumer markets.

“These expansions are expected to be completed by the end of 2019 and all are funded from internally generated funds,” the company said.

For 2018, the company expects sales volume to increase by 15% and profit to rise by 20%. It attributed the target to the expansion projects and the implementation of Republic Act 10963 or Tax Reform for Acceleration and Inclusion (TRAIN) Law.

In particular, Pryce said net income is targeted to reach P1.55 billion “plus or minus 10%” for this year. — Victor V. Saulon

How PSEi member stocks performed — February 21, 2018

Here’s a quick glance at how PSEi stocks fared on Wednesday, February 21, 2018.

Infrastructure: The road ahead

US intelligence tags Duterte a threat to democracy

PHILIPPINE PRESIDENT Rodrigo R. Duterte is taking seriously the US Intelligence Community’s report tagging the firebrand leader a threat to democracy in Southeast Asia, his spokesman said on Wednesday.

The Feb. 13 report, titled “Worldwide Threat Assessment of the US Intelligence Community,” is bylined by Daniel R. Coats, who, as Director of National Intelligence, heads this community.

The report places Mr. Duterte alongside Cambodian’s Hun Sen, the Rohingya crisis in Myanmar, and Thailand’s military-backed constitution as regional threats to democracy.

It also noted that countries in Southeast Asia “will struggle to preserve foreign policy autonomy in the face of Chinese economic and diplomatic coercion.”

VIEWED WITH ‘SOME CONCERN’
Mr. Duterte’s spokesman, Herminio Harry L. Roque, Jr., rejected the US Intelligence’s assessment of the Philippine leader as “myopic and speculative at best.”

Nevertheless, “(w)e view this declaration from no less than the intelligence department of the United States with some concern…,” Mr. Roque told DZMM radio.

The report said in part, “Democracy and human rights in many Southeast Asian countries will remain fragile in 2018 as autocratic tendencies deepen in some regimes and rampant corruption and cronyism undermine democratic values.”

“In the Philippines, President Duterte will continue to wage his signature campaign against drugs, corruption, and crime,” the report read further, adding that Mr. Duterte has suggested he could suspend the Constitution and declare a revolutionary government.

A leading critic of Mr. Duterte, opposition Senator Leila M. de Lima, had earlier warned that, under a revolutionary government, the military can oust its own commander-in-chief.

Mr. Roque for his part said Mr. Duterte “is no autocrat or has autocratic tendencies. He adheres to the rule of law and remains loyal to the Constitution. An autocracy is not prevalent, as they would like everyone to believe. Our media are still able to broadcast and print what they want — ‘fake news’ included. Our judiciary and the courts are functioning as usual. Our legislature remains independent and basic services are still being delivered.”

“I do not think that’s true. He is a lawyer, he knows the law, he wants to uphold the rule of law, he knows about the Bill of Rights,” the spokesman said.

This is not the first time the United States has criticized Mr. Duterte, who is notorious for his defiance of international pressure.

More than 4,000 people have been killed in what police call legitimate operations against suspected drug dealers and users under Mr. Duterte’s signature war on drugs since July 2016. International Criminal Court prosecutors have opened a preliminary examination into his anti-drugs campaign.

MANIPULATION OF SOCIAL MEDIA
The report also pointed out that “(d)omestic and foreign challenges to democracy and institutional capacity will test governance quality globally in 2018, especially as competitors manipulate social media to shape opinion.”

It added: “The number and sophistication of government efforts to shape domestic views of politics have increased dramatically in the past 10 years. In 2016, Freedom House identified 30 countries, including the Philippines, Turkey, and Venezuela, whose governments used social media to spread government views, to drive agendas, and to counter criticism of the government online.”

Mr. Roque in response said, “While it is true that the administration uses and maximizes social media to promote government messages and accomplishments, members of the political opposition and other cause-oriented groups use the same media platform to advance their agenda.”

“I don’t know of any government in the free world which does not use the Internet and social media to promote its agenda. This is very true especially in the case of the US. This latest intelligence assessment is a classic case in point.” — main report by Reuters with Arjay L. Balinbin

Sanofi slammed for French advisory on Dengvaxia in overseas regions

SENATOR Richard J. Gordon slammed a representative of Dengvaxia manufacturer Sanofi Pasteur over an earlier advisory to France’s overseas territories against the use of the dengue vaccine.

According to news reports, an agency of the French health ministry had recommended in 2016 against the use of the Dengvaxia vaccine in France’s overseas territories, the Carribean islands of La Martinique and Guadeloupe as well as French Guiana in the South American continent, due to health risks linked to the vaccine.

“If you cannot use it in Europe, why should we use it here? You guys have objected (to) my term guinea pigs. We are guinea pigs. We are laboratory rats. And people died,” Mr. Gordon said, addressing Sanofi Pasteur Asia-Pacific head Thomas Triomphe at Wednesday’s resumption of the hearing on the Dengvaxia controversy by the Senate blue ribbon committee.

Mr. Triomphe clarified that the body did not recommend the vaccine while it was under review by European health regulators.

“They don’t recommend the usage before the license because the product has been submitted for review….They’re saying, ‘Let’s wait for the license and use it with a license,’” he told senators.

For his part, Health Secretary Francisco T. Duque III said he had ordered health officials to convince families to avail themselves of common vaccines following a decline in the immunization coverage in certain regions due to the Dengvaxia controversy.

“My order to the DoH officials was to never stop and never give up, if they had to convince every family to let the DoH (Department of Health) give them vaccines for their children,” Mr. Duque said.

He cited the immunization coverage in the Zamboanga Peninsula as having dropped from 73% to 63% as parents refused to have their children avail themselves of common vaccines for measles and mumps due to fears brought about by the Dengvaxia controversy.

He also noted other factors to the decline, such as sickness and cultural belief against vaccines.

But Mr. Duque also said the immunization coverage in the Davao Region has slowly picked up after his orders to regional health officials.

He also stressed the importance of the Health department’s expanded immunization program, noting that about three million to five million lives were saved due to the vaccines.

The DoH has also launched several information campaigns on the safety of vaccines under the immunization program, which covers vaccine-preventable diseases such as hepatitis, rotavirus and tetanus. — Camille A. Aguinaldo

Suspected extremists held in Malaysia

TEN SUSPECTED Islamic militants who were trying to establish a Malaysian cell of a Philippine kidnap-for-ransom group have been arrested in Borneo island, police said Wednesday.

The alleged extremists, mostly Filipinos, are also accused of trying to help fighters linked to the Islamic State (IS) group travel to the Philippines to join up with militants there, they said.

Malaysian police made the arrests in January and early February in the state of Sabah on the Malaysian part of Borneo.

Seven of those detained were Filipinos, including several senior members of Philippine extremist group Abu Sayyaf which has been behind kidnappings of numerous foreigners, Malaysian national police chief Mohamad Fuzi Harun said in a statement.

The other three detained were Malaysians, police said. Officials did not disclose the suspects’ identities. — AFP

Rappler reporter barred because of ‘lost trust’ — Palace spokesman

By Arjay L. Balinbin

PRESIDENT Rodrigo R. Duterte had banned Rappler.com’s senior reporter Pia I. Ranada from covering her assigned beat Malacañang due to “loss of trust,” according to Presidential Spokesperson Herminio Harry L. Roque, Jr.

In a text message to BusinessWorld on Wednesday morning, Feb. 21, Mr. Roque confirmed his earlier statement that Mr. Duterte had “lost trust in Ms. Ranada.”

“Yes, and the decision of SEC [Securities and Exchange Commission] that Rappler is already dissolved,” the spokesman added when asked about the President’s basis for his decision.

In an official statement, Mr. Roque said: “[U]nder the Rules of Court, judgments and final orders of quasi-judicial agencies, including the Securities and Exchange Commission (SEC), are not stayed while on appeal with the Court of Appeals (CA), unless the CA directs otherwise. In Rappler’s case, no such directive from the CA has been issued.”

Mr. Roque noted that Malacañang “did not implement the SEC decision at once.”

“We could have earlier disallowed Rappler’s Palace beat reporter, Pia Ranada, from entering Malacañang when the SEC decision was handed down if our intent is to infringe press freedom. However, we allowed Ms. Ranada to continue performing her work assignments unimpeded, notwithstanding that trust with the news source had already been adversely affected, in the hope that this would be restored,” the spokesman added.

For his part, Human Rights Watch (HRW) representative Carlos H. Conde said: “It could portend a broader assault on journalists and news organizations, whose critical watchdog role has magnified the government’s poor human rights record, from extrajudicial killings of thousands of alleged drug dealers and users to conflict-related abuses in the south.”

Sought for comment, Professor Luis V. Teodoro of the University of the Philippines-College of Mass Communication said in a phone interview that “there are government officials who have certain attitudes towards reporters….I think even those they don’t like, they should tolerate because that’s part of their responsibility in making sure that the public get the information that they need.”

“The public needs information from various perspectives. There’s what we call ‘market of ideas.’ Thus, it’s important to allow reporters to cover even if you don’t like them,” Mr. Teodoro added.

Asked how the President’s treatment of Ms. Ranada may impact on other journalists, Mr. Teodoro said:” Some journalists may now be hesitant to ask tough questions….”

Mr. Teodoro argued as well that the SEC ruling on Rappler.com is still “pending” at the Court of Appeals (CA). “No final decision yet, so I don’t know if [the President] can use that as a reason.”

MASS MEDIA
In its 68-page petition for review, Rappler argued that the company “is not engaged in the business of ‘Mass Media’ as contemplated by Section 11 (1) of Article XVI of the Constitution, which states: ‘The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.’”

“As such, neither Rappler nor RHC [Rappler Holdings Corporation] is obligated to comply with this provision or be held liable under it,” the petition noted.

Rappler identified itself in its petition as the “Philippines’ first all-digital news organization.”

According to Mr. Teodoro, a digital media organization is “still a mass media organization because when we speak of mass media, we are referring to the kind of people that the media reach. If you are online, you reach a mass audience.”

“The definition of mass media is very clear. It says any medium that reaches a large number of people. The audience of online news sites is even bigger than the audience of print media. The old definition of mass media applies,” he explained further.

‘CONDUCT UNBECOMING’
Meanwhile, Presidential Security Group (PSG) Commander Brigadier-General Louie Dagoy criticized Ms. Ranada for her encounter with PSG Corporal Marc Anthony Cempron when he barred Ms. Ranada from entering the Palace last Tuesday.

“I didn’t like what Pia and ABS-CBN did. Why did they have to force my soldier to speak when he already told them that he had nothing to say?” Mr. Dagoy said in an interview with Presidential Communications Operations Office (PCOO) Assistant Secretary Esther Margaux ‘Mocha’ J. Uson which she shared on her Facebook page.

“Pasalamat kayo at hindi kayo sinaktan sa pambabastos na ginawa niyo (Be thankful you were not hurt for your rudeness). It’s very rude on their part, you should have done it (by) calling the proper person,” Mr. Dagoy added.

In an official statement, Rappler said: “We denounce the threat made by the commander of the Presidential Security Group against Rappler and its Malacañang reporter Pia Ranada. Dagoy’s statement is conduct unbecoming of an officer and a gentleman….We ask General Dagoy to apologize for his outburst…”

For its part, the Malacañang Press Corps (MPC) in a statement on Wednesday afternoon said: “Rappler will remain a member of the Malacañang Press Corps (MPC) unless the Court of Appeals upholds the decision of the Securities and Exchange Commission (SEC) revoking its registration.”

“MPC, an independent organization of journalists regularly covering the President and Malacañang activities, asserts its prerogative to accept, suspend or revoke membership to the body,” the group also said, adding:

“While we respect the discretion of Malacañang to set accreditation rules for presidential events, we deplore any arbitrary attempt to bar access and harass reporters performing their duty as an independent monitor of power and guardian of public interest.”

“We also urge Malacañang to communicate properly the grounds for such restrictions.”

DTI to build P11-M FabLab at USEP

DAVAO CITY — The Department of Trade and Industry Davao Region office (DTI-11) is funding the construction of an P11-million Fabrication Laboratory (FabLab) at the University of Southeastern Philippines (USEP) by the third quarter this year.

The FabLab, with several modern equipment including 3D laser printers, will help manufacturers in the region create prototypes of their products at a lower cost.

“We already have the funds and are just finalizing what equipment to procure,” DTI-11 Assistant Regional Director Edwin O. Banquerigo said in an interview during the Civil Society Organizations and Stakeholders Consultation held in the city Tuesday.

Nonfood industries such as wood, gift items, and metalworks are among those that would benefit from the laboratory.

DTI previously turned over a mini FabLab to the Mindanao Trade Expo Foundation with P1.7 million worth of equipment, including a 3D printer, milling/cutting machine and a set of information technology equipment for teleconferencing.

The FabLab concept was started at the Massachusetts Institute of Technology to help grassroots communities by allowing small and medium-scale enterprises make prototypes and scale models of their products with the help of technology.

The P11M FabLab is part of the P34 million shared service facility (SSF) projects of the DTI regional office for 2018.

As of 2016, Davao Region had 164 SSFs. — Carmencita A. Carillo

Senators ask: Why did Kuwait ban take this long?

SENATORS ON Wednesday grilled officials of the Department of Foreign Affairs (DFA) and the Department of Labor and Employment (DoLE) over why the government did not issue a deployment ban on Kuwait earlier despite the red flags on the Arab country’s labor policies.

At the hearing on overseas Filipino worker (OFW) deaths and the deployment ban to Kuwait, Senator Emmanual Joel J. Villanueva noted that Kuwait is not a signatory to several international agreements regarding the protection of migrant workers.

Mr. Villanueva, chair of the committee on labor, employment and human resources development, added that Kuwait’s laws are silent on penalties imposed to cases of OFW physical and sexual abuses.

“This is really baffling. Why the POEA (Philippine Overseas Employment Administration) did not impose the ban sooner? Considering the increasing number of deaths, 2016: 82 deaths, 2017: 103 deaths. Not to mention the thousands of reported cases of abuse,” he said.

DoLE Secretary Sivestre H. Bello III, who chairs the POEA governing board, said they have lowered the number of OFW deployment to Kuwait prior to President Rodrigo R. Duterte’s orders on the deployment ban in response to the increasing incidents of deaths and abuse.

Mr. Bello also attributed the dire situation of OFWs abroad to illegal recruiters.

“That is why we imposed stricter rules (on illegal recruitment),” he said.

POEA Administrator Bernard P. Olalia said there must be a certification issued by the DFA indicating that a country is labor-compliant before POEA allows the deployment of workers.

DFA Undersecretary for Strategic Communications Ernesto C. Abella, for his part, said Kuwait is “partially compliant” since the country has acted on cases the Philippine government has raised. This despite the increasing number of reported deaths as well as cases of physical and sexual abuse.

Mr. Olalia said the “partially compliant” tag on the country allows the POEA to deploy workers.

The legislative inquiry was prompted by the death of OFW domestic helper Joanna Demafelis, whose body was found in a freezer in Kuwait.

Mr. Bello reiterated that the President would lift the total deployment ban to Kuwait once a memorandum of agreement on migrant workers’ protection has been signed between the two countries.

KUWAIT VISIT
Meanwhile, Philippine officials are headed to Kuwait on Thursday to seek greater protection for migrant workers after a diplomatic row over the alleged mistreatment of Filipinos in the Gulf state.

Mr. Bello III told reporters Wednesday one of his deputies would lead the delegation, which is also due to stop in Saudi Arabia and Qatar to urge reforms.

Topping the list are demands that Filipino workers be allowed to keep their cellphones and passports, which can be confiscated by employers.

The trip comes after Mr. Duterte last week announced a departure ban for Filipinos planning to work in Kuwait. The ban sparked a diplomatic flap between the Philippines and the Gulf state as he alleged that Arab employers routinely raped their Filipina workers, forced them to work 21 hours a day and fed them scraps.

Kuwait has invited Mr. Duterte for a visit but he has yet to respond.

“We are going to Kuwait tomorrow, Saudi Arabia and then on to Qatar to ensure that our overseas Filipino workers have sufficient protection,” said Labor Undersecretary Ciriaco A. Lagunzad III, who will helm the delegation.

Mr. Lagunzad also said Mr. Duterte had ordered the team to ensure that passports of Filipino workers are deposited with the Philippine embassy.

Another team of labor officials said on Wednesday they would conduct negotiations with Kuwait next week on a deal to protect Filipino workers.

“Hopefully we can finalize the memorandum of agreement and by first or second week of March, we will have the signing by the Kuwaiti and Philippine governments,” said Claro Arellano, another labor undersecretary. — Camille A. Aguinaldo and AFP

Sereno’s appointment as CJ questioned at OSG

By Minde Nyl R. Dela Cruz

SUSPENDED lawyer Eligio P. Mallari of the Volunteers Against Crime and Corruption (VACC) submitted to the Office of the Solicitor-General (OSG) a letter requesting to initiate a “quo warranto proceeding in the name of the Republic of the Philippines” to challenge the validity of the appointment of Chief Justice Maria Lourdes P.A. Sereno.

“Any lawyer worth his salt would tell you that Sereno’s title to the office could be tried in a quo warranto proceeding,” Mr. Mallari said in his letter addressed to Solicitor-General Jose C. Calida on Wednesday, Feb. 21.

“Right now, Sereno’s competence and integrity are under intense public scrutiny. Having scored very low or flunked the psychological test and in view of non-submission of all her SALNs (statement of assets, liabilities, and net worth) prior to appointment, Sereno’s claim to the position is tenuous, and must be challenged in a quo warranto proceeding by the Solicitor General,” Mr. Mallari added.

The Supreme Court early this month suspended Mr. Mallari as lawyer for two years following his failure to pay P34,000 worth of loans from the Government Service and Insurance System.

At the recent impeachment proceedings by the House committee on justice, Associate Justices Diosdado M. Peralta and Teresita J. Leonardo-De Castro questioned Ms. Sereno’s appointment in 2012.

For her part, Judicial and Bar Council Executive Director Annaliza S. Ty-Capacite testified before the House panel, chaired by Oriental Mindoro Rep. Reynaldo V. Umali, that Ms. Sereno submitted only three SALNs, which fall short of the 10 required when she applied for the top position in the high court.

Likewise, committee senior vice-chair Rep. Vicente S. Veloso said Ms. Sereno’s appointment was “void from the beginning.”

Lawyer Lorenzo G. Gadon in his impeachment complaint accused Ms. Sereno of culpable violation of the Constitution, corruption, betrayal of public trust, and other high crimes.

The Umali committee is nearing the conclusion of its proceedings as it plans to draft the articles of impeachment by March.

DoJ files petition to formally tag CPP-NPA as terrorists

THE DEPARTMENT of Justice (DoJ) on Wednesday, Feb. 21, filed a petition to formally declare the Communist Party of the Philippines (CPP) and its armed wing, the New People’s Army (NPA), as terrorists. The petition was filed before the Manila Regional Trial Court by Senior Assistant State Prosecutor Peter L. Ong in behalf of the DoJ following President Rodrigo R. Duterte’s order in December to tag the rebel groups as terrorists. In January, Mr. Ong said his office is focusing on incidents that transpired “after (Mr. Duterte) assumed (the) presidency on July 1, 2016,” noting that the President at that point showed “good faith and sincerity for a just and lasting peace”, but the NPA carried on with “tactical offensives.” Prior to the terrorist declaration, the President also terminated the peace talks with the Reds through Proclamation No. 360 signed Nov. 23, 2017, which cited that the National Democratic Front and CPP-NPA “engaged in acts of violence and hostilities, endangering the lives and properties of innocent people” amid the efforts of the administration to reach a peace deal. — Minde Nyl R. dela Cruz

Three cities make it as finalists to WWF’s One Planet City Challenge

THE CITIES of Makati and Pasig in the National Capital Region, and San Carlos in Negros Occidental have been selected as national finalists of the 2017-2018 One Planet City Challenge (OPCC) of the World Wide Fund for Nature (WWF). The OPCC is a biennial global challenge that recognizes cities for developing infrastructure, housing, transport, and mobility solutions to power the global transition to a low-carbon, climate-resilient future. Launched in 2011 as the Earth Hour City Challenge, the OPCC highlights the crucial role that cities play in the transition toward a more environment-friendly future. WWF, in a statement, said this edition of the OPCC is anchored on sustainable transport and mobility, which is a major environmental challenge for cities around the globe. “Cities must cultivate their potential to directly improve the quality of life of their citizens while simultaneously reducing environmental impact. Offering smarter alternatives for energy, transportation, and building standards that affect a significant number of people is key in ensuring that we all thrive without pushing the limits of our shared home,” WWF-Philippines President and CEO Joel Palma said. The national and global winners will be announced in June or July.