POLICE have released the identities of four men they believe pulled off last week’s armed robbery at the Mabuhay Manor Hotel in Pasay City. The suspects were identified through footage captured by the hotel’s closed-circuit television cameras during the Jan. 2 holdup and photos picked out by witnesses from the rogue’s gallery of the Pasay City police. — News5/interaksyon.com
PETRON Corp. has offered to buy nearly half of its $750 million in undated subordinated debts as part of the company’s active management of its capital structure.
In a disclosure to the stock exchange on Monday, Petron said the executive committee of its board of directors authorized a tender offer to holders of its outstanding $750 million, 7.5% undated subordinated capital securities.
Subordinated capital securities rank below other debts in case of liquidation.
At the same time, Petron’s executive committee also gave the go-signal for the issuance of US-dollar denominated subordinated capital securities, which will fund the tender offer of up $350 million.
“The Tender Offer is being made in connection with a concurrent offering of senior perpetual capital securities,” said Petron, which refines crude oil and markets and distributes refined petroleum products in the Philippines and Malaysia.
The company said it might amend, extend, re-open, waive any condition or terminate the tender offer any time subject to the applicable law and provided in the offering’s memorandum.
At its sole discretion, Petron may also increase or reduce at its discretion the maximum amount it will accept.
Petron said if the aggregate amount of the securities validly tendered exceeds the final maximum acceptance amount, it would accept the debts on a pro rata basis such that the total principal amount does not exceed the maximum.
The payable price per $1,000 in principal amount of the securities will be $1,030, plus any accrued but unpaid distributions and any arrears of distributions.
When it considers the potential allocation of the new securities, Petron said it would look favorably on investors who are security-holders that have informed the company or the joint dealer managers that they have validly tendered, or expressed a firm intention to tender their securities.
But the company said it is not obligated to do so and may take into account “other relevant considerations” in the allocation of the new securities. Those interested in the tender offer have been given a deadline of Jan. 16, 2018.
The Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch is the sole global coordinator for the tender offer and the joint dealer managers along with Australia and New Zealand Banking Group Ltd.; DBS Bank Ltd.; Deutsche Bank AG, Singapore branch; Standard Chartered Bank; and UBS AG, Singapore branch.
On Monday, shares in Petron rose 0.11% to P9.35 each. — Victor V. Saulon
BEIJING — China’s Tiangong-1 space station is not out of control and does not pose a safety threat, a top Chinese spaceflight engineer said on Monday, after reports that the station was falling towards earth.
The Tiangong-1, or “Heavenly Palace 1,” China’s first space lab, was launched into orbit in 2011 to carry out docking and orbit experiments as part of China’s ambitious space program, which aims to place a permanent station in orbit by 2023.
Tiangong-1 was originally planned to be decommissioned in 2013 but China has repeatedly extended the length of its mission. The delay of re-entry into the earth’s atmosphere, which China said would happen in late 2017, had led some experts to suggest the space laboratory may be out of control.
Zhu Congpeng, a top engineer at the China Aerospace Science and Technology Corporation, told the state-backed Science and Technology Daily newspaper that the space station was not crashing and did not pose a safety or environmental threat.
“We have been continuously monitoring Tiangong-1 and expect to allow it to fall within the first half of this year,” Mr. Zhu told the newspaper.
“It will burn up on entering the atmosphere and the remaining wreckage will fall into a designated area of the sea, without endangering the surface,” he said.
Re-entry was delayed in September 2017 in order to ensure that the wreckage would fall into an area of the South Pacific ocean where debris from Russian and US space stations had previously landed, the paper said.
The California-based Aerospace Corp., a nonprofit group that works with the US government, said the Tiangong-1’s re-entry was unlikely to be controlled but was highly unlikely to hit people or damage property, according to a post on its Web site last updated on Jan 3.
“Although not declared officially, it is suspected that control of Tiangong-1 was lost and will not be regained before re-entry,” it said. There may be hazardous material on board that could survive re-entry, it said.
Advancing China’s space program is a priority for President Xi Jinping, who has called for China to become a global space power with both advanced civilian space flight and capabilities that strengthen national security.
Beijing insists that its space program is for peaceful purposes, but the US Defense Department has said China’s program could be aimed at blocking adversaries from using space-based assets during a crisis. — Reuters
THE Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) have met the standards set out for them to remain largely safe from the Attrition law, the Department of Finance (DoF) said.
“I’m happy to report the collections of both the BIR and the BoC… have exceeded the threshold for applicability for the Attrition law,” Finance Undersecretary Antonette C. Tionko said during a briefing in Malacañang yesterday.
“As of the latest numbers that came in, the BoC collected 97.86% of the collection target and the BIR collected 97.19%,” she said.
According to Republic Act No. 9335, or the Attrition Act of 2005, officials and employees whose revenue collections fall short of the target by at least 7.5% face removal from service.
“So on an overall basis, they have already exceeded that target. Then will see how it works as they may break it down per district, whether those lower offices have met their targets. But as a general rule they have exceeded,” she said.
Latest data available show that the BIR generated P1.621 trillion in the first 11 months of 2017, 12% more from the P1.45 trillion that it generated a year earlier.
The BoC on the other hand collected 14% more in the same period at P413.1 billion.
However, since the agencies did not exceed their collection targets for the year, they do not qualify for additional incentives.
The law provides for cash rewards and other incentives equivalent to 10% of the amount over the target.
The BIR’s collection target was P1.829 trillion in 2017, while the BoC was set a goal of P467.9 billion.
In September, the BIR issued a memorandum to include other key indicators other than collection efficiency, as evaluation basis in rewarding or penalizing its personnel. — Elijah Joseph C. Tubayan
HONG KONG — Here’s a scary statistic: Hong Kong home prices are more than double their 1997 levels, when the city’s biggest housing bubble burst.
What’s more, affordability has deteriorated too, according to cautionary remarks made on Monday to legislators by Financial Secretary Paul Chan, who noted the ratio of mortgage payments to median household income hit 68% in the third quarter, compared with a 45% average between 1997 and 2016.
Mr. Chan’s warning seems to be falling on deaf ears. The Hang Seng Property Index is up 6.5% so far this year, and more than 40% in the past year, outperforming the broader index’s 37% increase. Wharf Holdings Ltd. has soared nearly 16% since the beginning of 2018, and China Overseas Land & Development, one of the most aggressive Chinese developers in Hong Kong, is up more than 15%.
As the Hang Seng Index continues to set new record highs, it’s worth remembering that just after Hong Kong’s handover to China, the gauge soared to an all-time high before plunging nearly 50% in the wake of the Asian financial crisis. Home prices also cratered, losing 69% of their value from a 1997 peak through their trough in 2003.
Even as the equity market has shrugged off the impact of rising interest rates, Mr. Chan said that “changing fundamental factors may put pressures on the residential property market in the future.”
The affordability ratio would spike up to 88% if interest rates rose by three percentage points to a “more normal level,” Mr. Chan said. — Bloomberg
LOS ANGELES — The production company behind AMC zombie series The Walking Dead has been hit with the maximum possible fine over the death of a stuntman, the US government said on Friday. The Department of Labor’s Occupational Safety and Health Administration (OSHA) said it had cited Stalwart Films for “failing to protect employees from fall hazards while filming the television show The Walking Dead.” “OSHA issued a serious citation and proposed penalties totaling the maximum allowable fine of $12,675,” it said in a statement. John Bernecker died in hospital in July after falling 22 feet from a balcony headfirst onto concrete during filming in Senoia, Georgia. An assistant director told police Bernecker missed a safety cushion “by inches” and tried to break his fall by grabbing a railing after he slipped, celebrity news Web site TMZ reported at the time. Film and TV shows released last year were among the worst in recent history for serious accidents on set — most of which happened during filming in the previous two years. Stunt pilot Alan Purwin and Venezuelan co-pilot Carlos Berl were killed in 2015 when their plane crashed in Colombia during filming for Tom Cruise’s American Made. Cruise himself broke an ankle during a stunt last year, although that was for a 2018 movie, Mission Impossible 6. Olivia Jackson, a stunt double for Resident Evil: The Final Chapter, was severely injured in a motorcycle accident on set in South Africa in 2015. Days later, crew member Ricardo Cornelius was crushed to death by a utility vehicle that slid off a platform he was operating. In 2016, a construction worker was killed while dismantling one of the sets for Blade Runner 2049 in Budapest, Hungary. OSHA Atlanta regional administrator Kurt Petermeyer said the death on the set of The Walking Dead should serve as a “wake-up call” for Hollywood. — AFP
Geopolitical threats often cause the business sector enormous uncertainty. The North Korean nuclear threat, the West Philippine Sea dispute, and the Marawi crisis are just examples of issues that have worried business people, who seem to have forgotten the fact that they can play an outsized but quiet role in quelling these tensions, through the most powerful of tools: partnerships and trade.
By intensifying economic interdependence across markets, the business sector can actually force the hand of aggressive states to soften their political and security policies. When there are strong economic ties that can be jeopardized by geopolitical tensions, leaders will think hard before undertaking measures that can put their economy on the line. This is why partnerships, more than ever, need to be solidified not only between the public and private sectors, but among and between economies within and outside Asia.
Let’s look at the South China Sea issue, which strained Philippine-China relations, especially when former Philippine president Aquino brought China to the International Arbitration Court, which ruled in favor of the Philippines. As a result, Chinese tourists were banned from traveling to the Philippines and trade relations declined, causing great losses to the business sector. But these all changed when President Duterte, apparently recognizing the economic impact of icy Philippine-China relations, showed his eagerness to forego the issue and establish warm relations with China. Not surprisingly, when he went on a state visit to China last year, he was given a grandiose welcome. From then on, Chinese tourists began to pour back to the Philippines, the ban on the importation of Philippine bananas was lifted, and Chinese infrastructure projects stopped by the previous administration are now back on track. Chinese financing is also pouring in.
The warming of relations and strengthening of economic ties eventually led China to start talks with ASEAN on a Code of Conduct on the West Philippine Sea/South China Sea. This would, in the long run, help ensure peace and stability and minimize geopolitical tension in the region.
Indeed, there is much that the business sector can do, not only in dispelling geopolitical tensions, but in fighting terrorism as well. Often, the seeds of terrorism are sowed in communities where poverty is rife, and where people are uneducated. This is exactly what happened in Marawi City in the southern Philippines, where ISIS has tried to establish a foothold. Even though the fighting had ended, Indonesia, Malaysia, and the southern Philippine island of Mindanao are particularly vulnerable. We have porous borders and people are historically and culturally linked, having been trading with each other for centuries. Even today, that link thrives. In fact, for those in Maguindanao, it is easier to get radio and TV channels from Malaysia and Indonesia rather than Manila.
To prevent the resurrection of terrorism and prevent further radicalization, different stakeholders must work together to understand the real reasons behind it, and invest resources to do so. Only the business sector’s increased presence and investments can push development in the area, which is sustainable and gives people dignity.
The government’s investment in the rehabilitation of Marawi, as well as assistance from Japan, US, ASEAN, Australia, Russia, and China, are all steps in the right direction. ASEAN’s declaration to counter the rise of radicalization and violent extremism, signed in Manila, calls for a sustained, proactive, and comprehensive regional approach with the implementation of “deradicalization in rehabilitation and reintegration programs,” education of the people, information-sharing, mutual legal assistance, and more proactive approaches to counter the ideology to promote peaceful conflict resolution, apart from “applying force or punitive measures” when necessary.
A third example is the North Korean Nuclear Threat.
Amidst the saber-rattling rhetoric coming from the rogue nation, the business sector must work with their respective governments in taking advantage of North Korea’s dependence on imports and push it to embrace peace. ASEAN’s strongly worded statement expressing “grave concerns” over the missile tests is quite significant and holds great weight as some ASEAN members have trade relations with North Korea.
Ultimately, business communities across the globe need to work on people-to-people connections on the economic, social, and cultural fronts to not only sway political actors, but also to promote peace in a world where countries are adopting increasingly insular views. Business chambers across countries should build stronger linkages to further deepen economic interdependence.
Within the country, businesses need to work toward a stronger collective voice to influence national policy.
Peace always begins with prosperity. At the end of the day, the business sector has the responsibility to temper uncertainty, geopolitical or otherwise, by wielding its mighty hand.
Junie del Mundo is the Chair of the M.A.P. CEO Conference Committee and the CEO of the EON Group, a fully integrated communications agency. EON Group also spearheads thought leadership initiatives including the Philippine Trust Index (PTI), a multi-awarded proprietary research that looks into Filipinos’ trust in society’s institutions.
GOOD WEATHER condition will prevail in the morning with passing showers in the afternoon or evening over the city of Manila and the rest of National Capital Region (NCR). The forecast range of temperature will be from 23-31°C. Light winds coming from the northeast is expected and waters in Manila Bay will be slight. — Pagasa
JUST like any other star players, Kiefer Ravena will have his off nights and it hit him during the NLEX Road Warriors’ third game of the PBA Philippine Cup Sunday night, leading to the team’s first loss made possible by the Phoenix Fuel Masters.
Mr. Ravena, the second overall pick in this season’s Draft, owned up to his bad game.
“Phoenix had a good game plan on me. It was my fault. I should have prepared even more like certain situations in today’s game. I have no excuses about the game. I shot so bad from the field. I felt I didn’t help my team enough, especially down the stretch when I missed two free throws,” Mr. Ravena told sportswriters.
It was uncharacteristic on the part of the Gilas standout guard to miss two consecutive free throws at a time when NLEX was putting up a rally.
For Mr. Ravena, those missed free throws were more mental.
“I have mental mistakes (missing two free throws). I thought I was in college,” added Mr. Ravena.
But for head coach Yeng Guiao, things like this one is normal, especially for a rookie. As good as Mr. Ravena is, the six-time PBA champion doesn’t want to put more pressure on his prized recruit, but instead wants the entire team to do a better job next time out.
“I’m not concerned about Kiefer’s off night. He will have off nights. It’s natural, it’s normal for a basketball player, especially as a rookie. I don’t want to put any more pressure on him, by putting those kind of expectations,” said Mr. Guiao.
For Mr. Guiao, NLEX’s first loss was a product of the team’s lack of effort in rebounding and not Mr. Ravena’s alone.
“He missed two free throws, but I guess those things can happen. But what cannot happen is for you to lose second chance points and offensive rebounding by that big gap,” added Mr. Guiao.
“We lost it as a team. Offensive rebounding, that’s not just Kiefer’s responsibility. Almost 50% difference, 19 to 10. Offensive rebounding numbers was not the fault of Kiefer alone. It’s a team thing and we have to take responsibility of that as a team.”
By getting nine more offensive rebounds, Phoenix was able to capitalizes and score 13 points from extra chances. — Rey Joble
THE Bases Conversion and Development Authority (BCDA) and its partner Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN) are teaming up with Singapore-based consultancy firm Surbana Jurong for the New Clark City project.
In statement released on Monday, the BCDA said Surbana Jurong will be developing the design standards and guidelines for the 9,450-hectare project, which was previously known as Clark Green City.
Surbana Jurong, which specializes on urban, industrial and infrastructure projects, is one of the many international firms and agencies BCDA has tapped for the project.
While the main master planners for the New Clark City will be AECOM and Nippon Koei, Surbana Jurong will be advising BCDA and JOIN on financial and business concerns while fine-tuning the urban and infrastructure design of what is expected to be the country’s first “smart city.”
“[They will also] review the development of the Public-Private Partnership framework for provision of utility services such as water and power, and make the framework for the long-term operation of New Clark City,” the BCDA said.
The New Clark City it expected to host 1.12 million residents and about 800,000 workers. Offices of select government agencies such as the Departments of Justice, Environment and Natural Resources, and Science and Technology will also be transferred to the new city, a move aimed at easing congestion in Metro Manila.
One of its facilities — the Philippine Sports City is expected to be functional by August next year for the Southeast Asian Games. — Anna Gabriela A. Mogato
OSLO — The #MeToo movement claimed its biggest political scalp in Norway as the deputy leader of Norway’s biggest opposition party resigned after allegations of misconduct. Trond Giske, 51, said late on Sunday that he will step down as deputy leader of the Labor Party and as its economic policy spokesman. Mr. Giske has been an influential figure in Norwegian politics for more than 20 years, and has held several ministerial posts, serving most recently as trade and industry minister in 2013. His resignation comes after a wave of allegations against Mr. Giske of inappropriate behavior toward women from mostly anonymous whistle-blowers. Mr. Giske has apologized for his actions, which span several years, but has also said that some of the allegations aren’t true. Jonas Gahr Store, the Labor Party’s leader, said Mr. Giske has made the right decision to step down and hopes it will create calm within the party, according to news agency NTB. The scandal has shaken the party, which is still reeling from a loss in September’s general election. — Bloomberg
The Armed Forces of the Philippines’ (AFP) effort to reform, post-1986, was largely fueled by fear of political adventurism of the military akin to the Marcos era. The Davide Commission (1989) and Feliciano Commission (2003) were convened as reactions to serious attempts by some AFP officers to wrestle back political power. A number of the recommendations of both Commissions, particularly in areas of procurement and finance, awards and promotions, and grievance mechanisms have already been institutionalized by the military.
The crescendo of the reform process, arguably, happened when it launched its Internal Peace and Security Plan (IPSP) in 2010. This claim is based on the following: First, the process by which the IPSP document was formulated was a stark deviation from past efforts — instead of being done in secret, the formulation process was opened to civil society organizations (CSO), the academe, business, and key government agencies. Second, the core principles of the document include human rights (HR) and international humanitarian law (IHL), rule of law (i.e., constitutionality and legality), and stakeholders’ engagement. Third, which surprised even the critics of the military, the document was made open to everyone.
The current AFP-Development Support and Security Plan (DSSP) launched in 2016 continues from the IPSP tradition, the main difference is the added focus that nuanced the role of the military vis-a-vis the development thrust of the current administration.
To date, the military has established its Human Rights Office (HRO) in all levels — in the General Headquarters, the Area Commands, Divisions, the Brigades, down to the Battalion level. The HRO promotes HR-IHL and rule of law in the AFP, as well as look into human rights complaints against soldiers or CAFGU (Civilian Armed Forces Geographical Unit) members. While arguably there are still human rights violations committed by soldiers or CAFGU, it is important to highlight that institutionally, violations are taken seriously and are not tolerated by the organization.
The stakeholder engagement principle has also taken root. Shunned and mistrusted at first, civil society organizations are now common sights in consultations convened by the AFP. More in particular, the Bantay Bayanihan (BB) network of civil society groups which started with a handful of seven organizations in 2010 has now ballooned to, give or take, 250 member organizations, the primary focus of which is to have a “critical but constructive” engagement with the AFP especially in the areas of HR, IHL, and rule of law. The BB network has institutionalized the quarterly meeting-dialogue with the AFP in 16 provinces that are affected by the violence of armed rebel groups.
The AFP has likewise established a Multi-Sectoral Governance Council composed of respected members from the business, academe and civil society, the purpose of which is to guide the institution in its professionalization and modernization agenda.
Still, the reform process remains wanting in certain areas. Among the most important areas to look into are the revolving-door policy in appointing the Chief-of-staff; the politicization in the promotion process largely due to the powers exercised by to the Commission of Appointment; the need to balance the focus on internal security (especially on matters related to terrorism) and external security (particularly protecting the territories in the West Philippine Sea); the harmonization of the bidding requirement of the procurement law with the specificity of the needs of military hardware; improving gender balance in military assignments; and making the soldiers imbibe human rights not just as compliance but as a personal value-system. It is important, therefore, that apart from continuing the positive strides it has done, the military looks into possible interventions to address these areas.
The Philippine National Police (PNP) Patrol Plan 2030 aims to “transform the PNP into a more capable, effective and credible police agency.”
To this end, a “score-card” mechanism was instituted to ensure compliance to the plan. Likewise, a Multi-Sectoral Board composed of respected civilian leaders was convened to assist and guide the PNP with its professionalization agenda. The PNP has also adopted the “Rights-based Policing” approach to guide its members in the exercise of their law-enforcement function.
But unlike the AFP where a singular chain of command and organization exists, the PNP’s organizational setup affects its reform agenda. While it is “one PNP” in principle, operationally, the police actually get its directives from two sets of “leaders” — one, from the PNP-National Headquarters; and two, from the local mayors. This is because under Republic Act 6975 or the PNP law, city and municipal mayors exercise “operational supervision and control over PNP units in their respective jurisdiction…” (Sec. 51, RA 6975). The provision is meant to strengthen the power of local mayors on issues of peace and order; however, it unfortunately makes the local police politicized and compromised to the interest of the local mayor. The transactional character in local politics also provide unscrupulous police leverage from getting punished, with some local mayors acting as “padrino” to these crooked members of the police force.
Hence, despite the efforts to transform the organization, the overlay of local politics makes the reform process with the PNP significantly difficult.
Against this back-drop, the new administration employs the PNP in its “war on drugs.” It is no surprise, then, that the organization grapples hard in achieving its goals. Worst, the intersection of local politics with the drug problem creates a big space for abuse, victimizing thousands of people in the process.
The PNP needs to speed up its professionalization and modernization process, as well as strengthen its control and punitive mechanisms if it is really serious with its reform agenda. The accusation of impunity becomes very real if the organization will not lean hard on its erring members.
Institutionally, it may be useful to consider separating the Department of Interior and Local Government (DILG) into two separate departments — the Department of Interior and the Department of Local Government. Separating the two can improve focus and hopefully, performance. The Dept. of Interior will handle all matters related to internal peace, order and security, and will manage the agencies Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), and Bureau of Fire (BoF). The Department of Local Government on the other hand will focus on mainstreaming and monitoring good governance measures to the 81 provinces, 1500 municipalities, 120 cities, and 42,000 barangays; if the federalism law gets passed, it will assist the local government units in the shift to federalism.
It is also important to amend the PNP law to insulate the PNP from the parochial and transactional character of local politics, strengthen the institution’s merit system in promotions, and strengthen the democratic control mechanisms versus erring members of the organization.
On a broader note, it is necessary that a National Security Policy and National Security Strategy (NSP-NSS) are adopted by the administration. If fact, there has to be a legislation where it is mandated, at the beginning of the term, for Congress to pass a NSP-NSS law. The NSP-NSS can guide the defense posturing of the country relative to other countries especially where the Philippines has overlapping interests; it can guide the AFP and PNP, the local government units, government agencies, the private sector and the civil society as regards their role in promoting peace and order in localities; and it can guide the table of organization and equipage/hardware of both the PNP and AFP vis-a-vis their roles in internal and external security.
Security, after all, is a condition where individuals and communities are free from fear of violence, criminality, and aggression; and where people have access to the means and platforms that allow them to pursue their desired quality of life. The NSP-NSS can provide the framework by which the state can achieve its security goals.
Jennifer Santiago Oreta is a faculty member of the Ateneo de Manila University Department of Political Science, and a member of the think tank Security Reform Initiative (SRI).
