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Seoul to send envoys, spy chief to Pyongyang

SEOUL — South Korean President Moon Jae-in will send a team of special envoys — including Seoul’s spy chief — to the North on Monday to push for talks between Washington and Pyongyang on nuclear weapons.

The delegation, announced by Mr. Moon’s office on Sunday, is the latest chapter in a remarkable Olympics-driven detente between the two Koreas.

An intense rapprochement saw the two foes march together at the South’s PyeongChang Winter Olympics that ended Feb. 25, with the North’s leader Kim Jong Un sending his sister as a special envoy to the event.

Kim Yo Jong’s appearance at the Games’ opening ceremony made global headlines, marking the first visit to the South by a member of the Kim family since the end of the Korean war.

Mr. Moon has sought to use the PyeongChang Games to open dialogue between the US and the North in the hopes of easing a nuclear standoff that has heightened fears over global security.

He chose five top officials — including top national security advisor Chung Eui-yong and spy chief Suh Hoon — to visit Pyongyang on Monday, Mr. Moon’s spokesman said.

“The special delegates will have extensive discussions over issues including creating conditions for North-US talks to denuclearize the Korean peninsula and improving inter-Korea ties,” Yoon Young-chan told reporters.

The 10-member group — five top delegates and five supporting officials — would fly to the North’s capital Pyongyang on Monday afternoon before returning on Tuesday, Mr. Yoon said.

The delegation will then fly to the US to explain the result of the talks to officials in Washington, he added.

Mr. Suh is a veteran in dealings with the North. He is known to have been deeply involved in negotiations to arrange two previous inter-Korea summits in 2000 and 2007.

The isolated, impoverished North staged its most powerful nuclear test and test-fired multiple missiles last year, including some capable of hitting the US mainland, in defiance of UN sanctions.

The North’s leader Mr. Kim and US President Donald J. Trump have also traded threats of war and personal insults, sending tensions soaring.

Mr. Moon, who advocates dialogue with the nuclear-armed regime, said last week that Washington needs to “lower the threshold for talks” with Pyongyang.

But the US has ruled out any possibility of talks before the North takes steps towards denuclearization, and imposed what Mr. Trump hailed as the “toughest ever” sanctions on Mr. Kim’s regime late last month.

On Saturday, a foreign ministry spokesman in Pyongyang called on the US drop any preconditions for talks.

“The US is taking preposterous action by continuing to trumpet an insistence that it will not have dialogue unless a right condition is met,” the unnamed spokesman was quoted as saying by the state-run KCNA news agency. — AFP

Trump spends night with media at annual dinner

WASHINGTON — The jokes were mostly on Donald J. Trump on Saturday as he spent the evening with a few hundred of his least favorite people — the Washington press corps — at its annual Gridiron Dinner. The president, though, as the guest of honor, got the last laugh, and even thanked the media.

No, really.

Mr. Trump wrapped up his comments by lauding the assembled reporters “for all you do to support and sustain our democracy. I mean that.”

In a more-than-30-minute speech, Mr. Trump cracked jokes about Attorney-General Jeff Sessions, Vice-President Mike Pence — “he is one of the best straight men you are going to meet” — and son-in-law Jared Kushner. He didn’t spare Stephen Bannon, the former White House strategist (“that guy leaked more than the Titanic”) and even mocked his own relentless cable TV-viewing habit.

Mr. Trump in 2017 turned down the traditional invitation extended to the commander in chief by the journalists’ group, and also skipped the White House Correspondents Dinner.

But he flew back Saturday from his club in Palm Beach, Florida, to attend the annual white-tie charity event, a kind of celebrity roast at which some of the country’s best-known print and television journalists perform musical skits that lampoon Washington’s most powerful politicians.

While still in Florida, Mr. Trump stayed true to form, saying on Twitter that the “Mainstream Media in US is being mocked all over the world. They’ve gone CRAZY.” The comment was appended to a tweet from his oldest son, Donald Trump, Jr., highlighting article from a conservative Web site. — Bloomberg

Stocks to decline ahead of local inflation data

By Arra B. Francia, Reporter

LOCAL SHARES may edge lower this week as fears on how inflation would impact the market push investors to the sidelines.

The bellwether Philippine Stock Exchange index dipped 0.08% or 7.20 points to 8,458.57 last Friday. The industrial and financial sectors lifted the market, rising 3.3% and 1.8% week on week respectively, but was weighed down by a 2.7% decline in the mining and oil sub-index.

On a weekly basis, this is 0.11% lower than the market’s close of 8,467.56 previously. Trading for the week was also thinner as value turnover averaged at P8.8 billion, lower by 5%.

Foreign investors, meanwhile, remained in a net selling position, with net outflows recorded at P3.92 billion.

“Investors are still worried about the constant net-foreign outflow and what the effects of higher inflation are going to be on our market,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a report.

The Bangko Sentral ng Pilipinas (BSP) last week placed February’s inflation projection between 4-4.8%, the higher end of which is way above the government’s 2-4% target for the year. Last January, inflation posted a 4% increase, mainly due to the accelerated increase in the prices of food, non-alcoholic and alcoholic beverages, and tobacco.

The Department of Finance added that the Tax Reform for Acceleration and Inclusion Law — enacted last Jan. 1 — did not accelerate inflation for the month, save for the case of sugar-sweetened beverages.

“It may continue to trade lower as it is looking for strong support which it may find at the 8,100-8,150 level before it starts to recover,” Mr. Mangun said.

Online brokerage firm 2TradeAsia.com, meanwhile, said that rising inflation is a natural course for the country’s booming economy.

“Simply put, as economic growth accelerates, expect (inflation) to rise. As long as this growth is paralleled by improved employment, there should be no cause for alarm. Our monetary officials are also there to ensure no unreasonable occurrences disrupt the system’s fund flow, that could trigger runaway inflation,” 2TradeAsia.com said in a weekly market note.

With this, the company said it would be up to investors to look for higher returns.

A number of listed firms will be releasing their full-year 2017 results this week, including Global Ferronickel Holdings, Inc., D&L Industries, Inc., International Container Terminal Services, Inc., Del Monte Pacific Limited, PLDT, Inc., and Aboitiz Equity Ventures, Inc.

Eagle Equities’ Mr. Mangun, meanwhile, also noted the BSP’s move to lower the reserve ratio requirement for big banks that will see P50-P100 billion make its way into the economy, some of which may eventually end up in the stock market.

The analyst said the main index’s support could be from 8,420 to as low as 8,330, while it may test a resistance of 8,600 to 8,700.

Tax concerns make businesses less bullish this quarter

BUSINESSES turned less optimistic about prospects as 2018 opened amid worries about the impact of the tax reform law particularly on fuel prices, according to results of a recent central bank survey.

‘CURRENT QUARTER’ READING
Business confidence slipped to 39.5% in 2018’s first three months from 43.3% logged in the fourth quarter of 2017, according to results of the latest Business Expectations Survey (BES) which the Bangko Sentral ng Pilipinas (BSP) conducted last Jan. 8-Feb. 22. The latest reading was also just slightly better than the 39.4% of 2017’s first quarter.

The confidence index is computed as percentage of respondents who answered in the affirmative less those who responded in the negative when asked on specific indicators.

BES data since at least 2013 show the slump follows a seasonal dip after the Christmas holidays that is followed by a second-quarter rebound.

The central bank said respondents — representing 1,469 companies nationwide — were less upbeat about the economy during the quarter as they expected the usual slowdown in business activity, as well as tempered consumer demand following the holidays and harvest season. They also expected stiffer competition and rising fuel prices to dampen sales in January-March.

Companies also grew cautious as they anticipated the impact of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law that took effect Jan. 1.

“Concerns cited by respondent firms over the transitory impact on consumer prices with the implementation of the Tax Reform for Acceleration and Inclusion law may have contributed to the lower outlook, although a significant number of businesses surveyed also mentioned the positive impact of the tax reform,” Rosabel B. Guerrero, senior director at the BSP’s Department of Economic Statistics, said in a press briefing on Friday.

TRAIN introduced additional taxes on fuel, cars, coal, sugar-sweetened drinks and a host of other items, while cutting personal income tax rates.

Among others, the new law imposed an additional P2.50 excise tax per liter of diesel and P3/liter for kerosene at a time of three-year highs for world crude prices.

The central bank bared the results a day after the release of the latest Nikkei Philippines Manufacturing Purchasing Managers’ index, whose survey was conducted Feb. 12-21, baring a 50.8 reading that — while signalling “marginal” improvement in factories’ businesses from January — was the lowest in five months and the second-lowest since IHS Markit began the Philippine survey in January 2016. Respondents “mainly blamed new excise taxes, higher commodity prices… supply shortages and a weak peso for increased input costs,” IHS Markit said in its report last Thursday.

BSP Deputy Governor Diwa C. Guinigundo said in the same briefing that respondents were the ones who cited TRAIN as a key factor in first-quarter BES results.

BETTER ‘NEXT QUARTER’
Business sentiment improved for the next quarter, with that reading rising to 47.8% compared to the 39.7% recorded in 2017’s fourth quarter and the 47.2% of last year’s first three months.

“This suggests that economic growth could accelerate for the next quarter,” read the report, which noted that respondents cited as factors, among others, the:

• expected increase in household disposable income due to lower personal income tax withheld under TRAIN;

• seasonal increase in demand during the dry months that see more tourism activity, enrolment and harvest periods;

• an expected increase in state infrastructure spending especially with higher tax revenues due to TRAIN.

SECTORAL BREAKDOWN
Among major business sectors, wholesale and retail trade weighed on overall sentiment, with its optimism sinking to 31.0% in 2018’s first quarter from 50.1% in 2017’s fourth quarter and 36.6% in last year’s first three months.

Services — consisting of financial intervention, hotels and restaurants, business activities, real estate, transportation, as well as community and social services — were the most optimistic with a 50.6% reading that was sustained from 2017’s fourth quarter and better than the 40.6% logged a year ago.

Industry was next, with its reading improving to 39.0% from 33.2% in 2017’s fourth quarter but still below the 41.9% of last year’s first quarter.

Construction was the least optimistic, although its reading improved to 29.8% from 22.3% in 2017’s fourth quarter but eased from 35.7% a year ago.

Asked on their expectations for next quarter:

• services were also the most optimistic, with the reading improving to 50.8% from 42.3% in 2017’s fourth quarter and 50.4% a year ago;

• construction came next with 49.1%, down from 59.7% but up from 39.2% in the corresponding past comparative quarters;

• industry improved to 47.1% from 31.2% though still down from the year-ago 47.8%;

• while wholesale and retail trade improved to 45.3% last quarter from 41.0% in 2017’s fourth quarter and matched the reading of last year’s first three months.

About 19.9% of mining and quarrying respondents said they had expansion plans for the “next quarter”, compared to 25.5% in 2017’s fourth quarter and 21.6 a year ago, while:

• some 41.4% of those in agriculture, fishery and forestry said so, from 33.1% and 38.0% in the past comparative periods;

• electricity, gas and water rose to 36.8% from 33.3% and 30.9%; and

• respondents saying so in manufacturing increased to 35.2% in the first quarter from 31.0% in 2017’s fourth quarter but slipped from 35.5% a year ago.

Asked on business constraints for this quarter, 52.7% of respondents cited competition; 24.3% indicated insufficient demand; 13.5%, unclear economic laws; 12.9%, labor problems; 10.0%, high interest rate; 8.0%, financial problems; 6.8%, lack of materials input; 6.1%, lack of equipment; while 4.9% cited access to credit.

The financial conditions index remained in negative territory at -4.6% this quarter from -0.9% in the previous quarter. “This means that firms that expected tighter financial conditions increased and continued to outnumber those that said otherwise,” the report explained.

The employment outlook index for next quarter increased to 29.9% from 24.7% in the last quarter’s survey, the report noted further, explaining: “This indicates that the number of firms with hiring intentions increased relative to a quarter ago.” — Melissa Luz T. Lopez

Central bank keeps inflation target despite rebasing

THE BANGKO SENTRAL ng Pilipinas (BSP) will not adjust its inflation target despite rebasing of the consumer price index (CPI) that takes effect this year, a senior official said.

Deputy Governor Diwa C. Guinigundo said the Bangko Sentral ng Pilipinas (BSP) does not have to move its 2-4% target range for annual inflation in response to the adjustment in the CPI, which is the theoretical basket of widely used goods and services that is the basis for computing year-on-year price changes.

Last week, the Philippine Statistics Authority (PSA) announced that it will shift the base year for monthly CPI to 2012 starting this month from the 2006 previously. The agency said that rebasing is necessary in order to reflect “economic, social and technological changes” that likely influenced changes in consumption patterns.

The 2006-based CPI assigned the following weights to commodity groups: 38.98% for food and non-alcoholic beverages; 22.46% for housing, water, electricity, gas and other fuels; 12.03% for restaurant and other miscellaneous goods and services; 7.81% for transport; 3.37% for education; 2.99% for health; 2.96% for clothing and footwear; 2.26% for communication; 1.99% for alcoholic beverages and tobacco as well as 1.93% for recreation and culture.

“I don’t think we need to change our targets because no matter how you measure inflation, no matter what base year you use, 2-4% inflation target makes sense given our stage of development as well as the inflation dynamics,” Mr. Guinigundo told reporters on the sidelines of a press briefing on Friday.

The central bank has maintained this target range for annual inflation since 2015.

For 2018, the BSP has acknowledged that the full-year pace will likely overshoot the range and average at 4.3% due to price pressures from the tax reform law.

January inflation clocked four percent under the 2006-based consumer basket, the fastest rate seen in over three years. The rate is expected to have picked up further last month, with the BSP giving a 4-4.8% estimate. — Melissa Luz T. Lopez

Global gloom infects local stocks

PHILIPPINE EQUITIES finished the week with their third straight day of decline, keeping pace with weakening by Wall Street and others in Asia in the face of more protectionist moves by US President Donald A. Trump.

The Philippine Stock Exchange index (PSEi) edged down by 7.2 points or by a nearly flat 0.08% to close 8,458.57 on Friday, while the all-shares index fell by 12.29 points or 0.24% to end 5,065.34. PSEi was 0.11% down week-on-week.

Both Reuters and Agence France Presse noted that Mr. Trump’s decision to impose tariffs on steel and aluminium imports as part of his “America-First” policy has again raised the specter of a brewing trade war that weighed on investor sentiment.

Thursday saw Wall Street retreat across the board, with the Dow Jones Industrial Average dropping 1.68% to 24,608.98, the S&P 500 giving up 1.33% to 2,677.67 and the Nasdaq Composite Index falling by 1.27% to 7,180.56.

Much of Asia followed suit with Japan’s Nikkei 225 and Topix Index, Hong Kong’s Hang Seng, South Korea’s KOSPI, the Shanghai Composite Index, the Straits Times Index and the Jakarta Composite falling by 2.50, 1.83, 1.48%, 1.04%, 0.59%, 0.99% and 0.36%, respectively.

Back home, only two of the six sectoral indices ended Friday with gains, namely: industrials which increased by 74.42 or 0.65% to close 11,511.9 and financials which ended up by 13.03 points or 0.59% at 2,215.43.

The rest declined: mining and oil by 124.87 points or 1.03% to 11,905.19, holding firms by 62.24 points or 0.72% to 8,484.16, property by 19.07 points or 0.5% to 3,760.28 and services by 2.43 points or 0.13% to 1,745.14.

Friday’s list of the 20 most active stocks saw nine that declined, led by JG Summit Holdings, Inc.; Macroasia Corp. and Now Corp. (which has recently been riding a wave of optimism over stocks of smaller telecommunication firms that could step into the shoes of the country’s third major telecom service provider) that dropped 4.99% to P64.70 apiece, 3.11% to P28 and by 2.39% to P13.08 each, respectively.

The same list saw 10 stocks rise, led by Crown Equities, Inc.; ATN Holdings, Inc. “A” and MRC Allied, Inc. that climbed by 8.2% to close P0.33 apiece, 7.94% to P0.68 and 5.48% to P0.77 each.

Some 4.867 billion shares worth P7.246 billion changed hands on Friday, compared to Thursday’s 6.9 billion issues worth P7.56 billion.

Foreigners remained predominantly bearish for the ninth straight trading day, with net selling growing 11.262% to P619.929 million from Thursday’s P557.178 million.

FINTQ to offer 1 million free microinsurance policies

FINTQnologies Corp. (FINTQ), the financial technology arm of Voyager Innovations, Inc., is offering one million free microinsurance policies to unbanked and underserved Filipinos.

FINTQ said in a statement on Friday that it will provide one million microinsurance policies for free across 42,000 barangays under the KasamaKA Microinsurance Program.

The free microinsurance policy will be distributed from Feb. 26 to March 13. Insurance coverage periods arethree months, to be provided by FINTQ’s partner-insurers such as Pioneer Insurance, Malayan Insurance, Sunlife Financial, Country Bankers Insurance and Gotuaco del Rosario Insurance Brokers among others.

The beneficiaries are entitled to claims in case of death, disability, hospitalization and fire.

In the statement, FINTQ managing director Angelito M. Villanueva said the free microinsurance policies are part of the firm’s campaign to make known the importance of insurance among unbanked FIlipinos.

“The KasamaKA Microinsurance Program… will kick start a massive nationwide financial literacy campaign to educate millions of unbanked and underserved Filipinos on the importance of being financially secured and insured,” Mr. Villanueva said.

He added that having an insurance policy will provide Filipinos an additional source of financial assistance in case of a setback.

To avail of the free microinsurance, an individual has to register as a KasamaKA member. Once registered, Mr. Villanueva said, the policyholder will receive a code which will serve as insurance policy number.

To make an insurance claim, policyholders can call and provide the code number.

“We welcome KasamaKA as a national digital enabler towards achieving our goals to exponentially grow the country’s insurance penetration rate to 4% by year 2020 from 1.7% in 2017. This is the first of its kind initiative,” Insurance Commissioner Dennis B. Funa was also quoted as saying.

The national insurance penetration rate, measured as the share of premiums in gross domestic product, grew to 1.64% in 2017 from 1.61% in 2016.

The rollout is part of the company’s KasamaKA Ka-Barangay sa Kaunlaran initiative in partnership with Liga ng mga Barangay sa Pilipinas.

Voyager Innovations is PLDT, Inc.’s digital innovations unit. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Karl Angelo N. Vidal

Peso little changed on bank profit-taking as Fed moderates view on overheating

THE peso strengthened slightly against the dollar on Friday on the back of profit-taking by banks.

The currency ended the week at P51.90, two centavos stronger than the P51.92 finish on Thursday.

The peso opened at P51.84 against the dollar, hitting an intraday high of P51.785, while the low was P51.92.

Trading volume was $733.3 million on Friday, down from $863.5 million booked the previous session.

A trader said in a phone interview that the peso moved sideways.

“We saw a lot of banks buying close to the P51.80 and P51.85 levels,” the trader said, adding that he didn’t see the central bank intervening during the session.

The Bangko Sentral ng Pilipinas sometimes conducts “tactical intervention” to temper sharp swings that may cause the peso to appreciate or depreciate.

Meanwhile, another trader said: “The peso strengthened [Friday, March 2] amid a softer US economic outlook from the Fed Chairman Powell in his testimony to the US Senate.”

Federal Reserve Chair Jerome H. Powell’s remarks were taken to mean a softening in his hawkish position on the second day of his testimony before the US Congress, after he said the economy is not overheating, though the market continues to expect four interest rate hikes this year.

Meanwhile, the Finance Department said the movement of the peso was in line with the other Asian currencies and that it should not be taken as a sign of economic weakness.

“The exchange rate of the Philippine peso is just moving in line with Asian currencies, maintaining the competitiveness of the economy and sustaining its rapid growth,” the Department of Finance (DoF) said in an economic bulletin sent on Friday, adding that its weakening in the first two months of the year was a correction from the previous appreciations.

According to an analysis presented by the DoF, the peso strengthened 7.3% from the end of 2004 to P52.16 at the end of February 2018.

The peso’s appreciation was the fifth-strongest of 12 Asian currencies during the period, lagging the yuan, the Singapore dollar, the baht and the Taiwan dollar. During the period, the 12 currencies as a group depreciated 5.65%.

The peso appreciated 25.38% against the dollar in the period from December 2007 to February 2018. During the period, the 12 currencies weakened 13.51% as a group.

The DoF added that the exchange rate movement should not be taken as a sign of the structural weakness in the economy.

“In an environment where macroeconomic fundamentals are sound… it is best that the exchange rate should move flexibly so that economic players are able to adjust promptly to market dynamics, thus sustaining economic growth,” the department said.

The agency also cited the Philippines’ above-6% real gross domestic product growth, inflation staying within the projected levels, an eight-month buffer of international reserves, financeable balance of payments and fiscal deficits as well as declining debt ratios as indicators of a sound economy. — Karl Angelo N. Vidal

PTT announces board shake-up

By Patrizia Paola C. Marcelo

PHILIPPINE Telegraph & Telephone Corp. (PT&T) has announced a shake-up of its board, with two of its directors quitting amid the company’s bid to become the country’s third biggest telco player.

The company said in a disclosure to the stock exchange on Friday that Benjamin M. Bitanga and Mr. Gerardo R. De Leon have resigned. James R. Velasquez and Renato B. Garcia were elected as their replacements.

Mr. Bitanga along with current chairman Salvador B. Zamora II took control of the telco when investment company Menlo Capital Corp. acquired 70% from Republic Telecommunications Holdings Inc.

In a phone interview on Friday, company Chief Operations Officer (COO) and Treasurer Miguel Marco A. Bitanga said that Benjamin M. Bitanga will also step down as company president and chief executive officer.

“James Velasquez will replace Benjamin Bitanga as President and CEO,” COO Mr. Bitanga told BusinessWorld.

Mr. Velasquez, he said, is “very important for us as a telco” given “his experience with IBM, with IT.”

“This is strategic on the part of PT&T, and will add depth to our board,” Mr. Bitanga said.

“With our focus for the third player selection, propping the team is important. For Renato Garcia, he has 44 years of experience in the industry with him,” he added.

The company is among those vying to be the third major telco player. It currently operates a broadband network in Metro Manila and Regions III and IV.

The company was a major player in the 1990s but was affected by the Asian financial crisis.

Mr. Zamora earlier said PT&T was in talks with companies for the former’s plan to become the Philippines’ third major player after PLDT Inc. and Globe Telecom Inc.

The government expects to choose a third player by June, as it currently revises selection criteria.

The Department of Information and Communications Technology is gearing toward requiring wide coverage and fast Internet connection, rather than its previous draft that requires having the highest committed financial investment and having a net worth of P10 billion.

Customs collections beat target in Feb.

THE Bureau of Customs (BoC) said collections exceeded the agency’s target in February after a majority of its ports exceeded their revenue goals.

In a statement sent to reporters, the BoC said it collected P43.674 billion, beating the February collection target of P41.709 billion.

The February total was up 41.5% from the same period last year.

“Majority or 14 out of the 17 ports of the Bureau of Customs exceeded their collection target for the month,” Customs Commissioner Isidro S. Lapeña was quoted as saying in the statement.

Among the major ports that beat their targets were the Manila International Container Port (MICP), Port of Manila as well as the Port of Batangas.

MICP, the country’s biggest port, collected P13.438 billion, exceeding its target by 4.49%.

The Port of Manila collected P6.529, exceeding its goal by 4.1%.

The Port of Batangas, meanwhile, posted P9.982 billion in revenue, beating its target by 3.4%.

Eleven other ports exceeded their February collection targets by the percentage indicated as follows:

• Port of Limay (collections P2.544 billion, 0.2% over target)

• Port of Cebu (P2.084 billion, 10.9%)

• Port of Davao (P2.067 billion, 54.4%)

• Port of Cagayan de Oro (P1.668 billion, 41.6%)

• Port of Subic (P1.509 billion, 0.5%)

• Port of Iloilo (P373 million, 65%)

• Port of San Fernando (P293 million, 28%)

• Port of Clark (P142 million, 29.1%)

• Port of Tacloban (P81 million, 346.6%)

• Port of Legaspi (P53 million, 166.9%)

• Port of Aparri (P27 million, 579%)

Mr. Lapeña said that the collection performance was “mainly because of the intensive campaign against corruption and smuggling,” and directed bureau officials to ensure that duties and taxes go straight to the Treasury.

Asked about the target performance of three other customs stations — the Port of Surigao, Port of Zamboanga and Ninoy Aquino International Airport — the bureau said only: “The figures provided are based on the preliminary report submitted by the Financial Service.”

Mr. Lapeña did not respond to a BusinessWorld query about the continued employment of officials that issued their collection targets.

In February, Mr. Lapeña said he will relieve district officers that fail to hit the monthly revenue targets.

“Since I have just assigned some new collectors this January, we will base the relief on their February collection performance,” he said earlier. — Karl Angelo N. Vidal

IBP appeals for ‘due process’ in impeachment bid vs Sereno

THE Integrated Bar of the Philippines in a statement on Friday appealed for “due process” amid the mounting impeachment campaign against Chief Justice-on-leave Maria Lourdes P.A. Sereno.

Earlier, lawyer Oliver O. Lozano in a petition dated Thursday asked the Supreme Court (SC) to void Ms. Sereno’s appointment in 2012 “for non-compliance with mandatory legal requirements.”

‘SECURITY OF TENURE’
In its statement, the IBP said it welcomed Senior Associate Justice Antonio T. Carpio’s “assumption as Acting Chief Justice of the Republic of the Philippines,” adding that Mr. Carpio “has distinguished himself as a highly capable and fiercely independent jurist.”

“There are no better hands to take the baton of leadership in the meantime that we wait for evidence to be presented or controverted in the impending trial of Chief Justice Maria Lourdes P.A. Sereno,” said the country’s mandatory bar organization.

But the IBP also noted: “Security of tenure is the bedrock of judicial independence. It is intended to shield judges from the political elements that may have played a role in their appointment to the bench. The Supreme Court itself has repeatedly emphasized our Constitution’s built-in bias towards a fearless and an incorruptible judiciary that is prepared to follow the law and to administer it regardless of consequences.”

“We breathe life into this prized democratic value by according the Chief Justice due process of law in accordance with the rules governing the difficult process of impeachment,” the IBP also said. “This will also afford our people the opportunity to decide for themselves whether the causes against her are contrived or artificial, or are impressed with merit as to necessitate the extreme measure of removal from office.”

The group added: “We express firm belief that conviction after an impeachment trial is the only Constitutionally-recognized mode by which to remove a sitting Chief Justice. The Constitution reigns supreme over all other rules. Any artifice or device intended to solely target the Chief Justice and short-circuit the process would be repugnant to the Constitution, and must be slain on sight if our democratic processes are to be observed.”

SERENO DARES HOUSE
In his petition, Mr. Lozano cited as bases the pending impeachment complaint against Ms. Sereno as well as Article 5 of the Civil Code that “Any act against a mandatory or prohibitory provision of law is void.”

He added that “the protracted and scandalous controversy” surrounding her appointment and the impeachment complaint has caused “deep division and dissension in the Bench and Bar.”

Lastly, he called on the SC, “under its inherent and plenary powers, (to) promptly rule, motu proprio, upon the validity of Chief Justice Sereno’s appointment. The verdict will also preserve the independence of the Judiciary from Congress.”

Meanwhile, Ms. Sereno, for her part, dared the House of Representatives to bring her impeachment case to the Senate.

“If they were so sure of their evidence…why not bring it to the Senate?” she said in a speech to law students at the University of Baguio on Friday morning, the second day of her indefinite leave.

“Give me my day in the Senate impeachment court or admit that there is no probable cause,” she also said.

Ms. Sereno also chided “proponents of impeachment (who) have bared their uncertainties” by claiming solid evidence against her “but at the same time calling for my resignation.” — Dane Angelo M. Enerio, with a report by interaksyon.com

Holcim posts weaker profit amid ‘challenging 2017’

HOLCIM Philippines, Inc. reported a 61% drop in profit last year after a sluggish construction sector and tight competition hurt the company’s performance, it told the stock exchange on Friday.

Holcim netted P2.688 billion last year, down from 2016’s P6.845 billion.

“The construction growth slowdown, tighter competition and increased input costs affected our financial performance in 2017. But we reacted swiftly to mitigate these challenges,” Sapna Sood, Holcim Philippines president and chief executive officer, said in a statement.

The company said prices had been hit as competition further tightened with the influx of imported cement, causing revenues to decline by 13.9% to P34.7 billion in 2017.

“Despite a challenging 2017, we pursued initiatives and continued investments that prepare us for the opportunities ahead in one of the best-performing economies in the region,” Ms. Sood said.

Holcim said with the lower revenues and higher production expenses largely caused by increased fuel prices, consolidated operating earnings before interest, taxes, depreciation and amortization fell by 49.6% to P5.4 billion.

On Friday, shares in Holcim Philippines fell 1.39% to P9.90 each. — V. V. Saulon

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