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Joan Baez returns to peace theme in first album in decade

NEW YORK — Folk legend Joan Baez last week announced her first album in a decade, a collection of covers that returns to her longtime theme of global peace.

The 76-year-old singer and activist, who earlier this year was inducted into the Rock and Roll Hall of Fame, said Whistle Down the Wind will come out on March 2.

It will be her second straight album to take its title track from a cover of a song by Tom Waits, the somber and famously raspy-voiced songwriter, following Baez’s 2008 Day After Tomorrow.

The new album also features covers of songs by Americana singers Josh Ritter and Joe Henry, who produced Whistle Down the Wind.

In one of the lesser-known covers, Baez performs Zoe Mulford’s “The President Sang Amazing Grace,” a piano ballad about the 2015 massacre by a white supremacist of African-American churchgoers in Charleston, South Carolina, and the subsequent eulogy at which then president Barack Obama sang that well-known Christian hymn.

‘AMAZED AND HONORED’
Mulford, a little-known folk singer from Philadelphia heavily influenced by Baez, said she was “amazed and honored” and that Baez has already received standing ovations when performing “The President Sang Amazing Grace” in concert.

“If only one of my songs ever reaches a larger audience, I’m glad it’s this one,” Mulford wrote on her Web site after Baez selected the song.

Baez also covers “Another World” by Antony and the Johnsons, a mournful meditation on the world’s destruction by the mellifluous singer now known as Anohni, and ends with “I Wish All Wars Were Over,” originally by folk singer and musicologist Tim Eriksen.

The album news came after Baez said that 2018 will mark her last year of touring.

She has already announced a European tour that will open on the album’s release date in Stockholm and include a 10-night stretch in June at the Olympia in Paris.

Baez was one of the major musical figures behind social justice movements in the 1960s, becoming a confidante of Martin Luther King, Jr. and performing songs including the iconic “We Shall Overcome” at the 1963 March on Washington. — AFP

IFC eyes more tourism exposure

By Elijah Joseph C. Tubayan
Reporter

THE INTERNATIONAL Finance Corp. (IFC) is looking to expand exposure to Philippine tourism given the sector’s “huge potential” to generate jobs especially in the provinces, a ranking official of the World Bank Group unit said.

“Tourism is something that we’d like to do a lot more in the Philippines because we clearly think there’s a huge potential in tourism in the Philippines, and I don’t think the Philippines is reaching its full potential,” Vivek Pathak, IFC regional director for East Asia and the Pacific, said in a Dec. 8 interview.

“I think it’s an important area. If you look at the benefits of tourism — international tourists provide foreign exchange, you provide employment, skilled employment, you create a value chain for agriculture, and services sectors.”

IFC is a global development institution forming part of the World Bank Group that provides financial resources and technical expertise to support private businesses worldwide.

Mr. Pathak cited an IFC case study that found that higher quality hotels generated the most employment — up to three jobs per room — or twice as many as do budget hotels.

“If you look at beaches at Palawan, Boracay, the water is as good as any other… Trust me I’ve been to a lot of beaches all over the world,” he said.

IFC eyes more tourism exposure

“But I just don’t find enough tourists.”

The Department of Tourism reported last Dec. 12 that foreign visitors grew 11.54% to 5.474 million as of October from 4.908 million in 2016’s corresponding 10 months. Tourism Secretary Wanda Corazon Tulfo-Teo said that she was “optimistic” the sector could hit a 6.5 million visitor target set by the 2017-2022 National Tourism Development Plan.

Furthermore, Philippine Statistics Authority data show that tourism’s share in gross domestic product has been on a steady rise since at least 2011 to 8.6% in 2016.

Mr. Pathak, however, cited lack of roads as one of the biggest hurdles to developing tourism sites and attracting more foreign visitors. “I think what’s critical for tourism that we’ve been talking with government about is infrastructure. You need to have connectivity. That is how you’re going to attract tourists,” said Mr. Pathak.

Nomura Senior Economist Euben Paracuelles, meanwhile, said that despite the government’s efforts to develop tourism in recent years, there is still plenty of room for improvement compared to the efforts of Southeast Asian neighbors.

Apart from infrastructure development — which Mr. Paracuelles said would be vital to developing hard-to-reach spots — the government should also bolster tourism campaigns.

“Beyond infrastructure, I think the government is under-utilizing the 10 million or so overseas Filipinos who can be the best promoters of the Philippines as a holiday destination,” he said in an e-mail yesterday.

“The ‘bring a friend’ program is a step in the right direction, but in my view the government needs to be more aggressive in running a campaign with similar initiatives, alongside more progress in infrastructure implementation,” the Nomura analyst added, noting that the country gets some of the lowest numbers of international visitors in Southeast Asia.

Moreover, Mr. Pathak said that tourism impact from the five-month battle in Marawi City, central Mindanao, between government forces and Islamic State-inspired militants should be minimal. “We haven’t seen adverse impact from that in the economy as a whole,” he said.

Last month, Discovery World Corp. signed a subscription agreement with IFC for the latter to infuse up to P650 million into the property firm “to meet the growing demand for hospitality infrastructure in the Philippines.” The leisure property developer will use the funds to finance construction of two hotels: one in El Nido, Palawan and another in La Trinidad, Benguet.

Apart from tourism, the IFC official said his group has been working with private firms here that are involved in infrastructure, manufacturing and financial services.

IFC’S overall committed portfolio in the Philippines totaled some $550.53 million as of July, according to its Web site.

DoF to strengthen local gov’t finances through tax reform

THE DEPARTMENT of Finance (DoF) is moving to further strengthen local government finances — this time including through tax reform — to reduce these units’ dependence on annual national government doleouts.

“There is a much needed balance here: LGUs must build their revenue base to fund their projects, and the effect on the national government’s fiscal space as a result of continued dependence of LGUs on national transfers,” Finance Undersecretary Antonette C. Tionko said of local government units (LGUs) in a press release on Wednesday.

She said that LGUs rely on Internal Revenue Allotment (IRA) — their annual share in national taxes — to fund up to 99% of their operations and programs.

According to Ms. Tionko, locally generated revenues account for less than one percent of the country’s gross domestic product (GDP).

IRAs are automatically earmarked funds for LGUs equivalent to 40% of national taxes collected three years prior to the planned fiscal year, as mandated by Republic Act (RA) No. 7160, or the Local Government Code of 1991.

About 34% of the IRA are given to municipalities, while provinces and cities receive 23% share each, while barangays get the 20% balance.

Local Budget Memorandum No. 74 set the IRA level this year at P486.885 billion, 13.59% more than P428.62 billion in 2016.

For 2018, IRA set by Local Budget Memorandum No. 75 is at P522.75 billion, up 7.37% from 2017.

RA 7160 also authorizes LGUs — provinces, cities, municipalities and barangays — to levy taxes, fees or charges on any base not covered by the National Internal Revenue Code.

In this regard, Ms. Tionko noted that the Finance department is also preparing property valuation and taxation reforms under the third package of the comprehensive tax reform program.

The first tranche of up to five planned tax reform packages — estimated initially to yield more than P90 billion in additional revenues in the first year of implementation in 2018, from P130 billion initially — was signed into law last Dec. 19. That package consists of reduced personal income, estate and donors’ tax rates. Foregone revenue will be offset by the removal of some exemptions from value-added tax; increased tax rates for fuel, automobiles, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for unlisted stock, and stock transactions; as well as new taxes for sugar-sweetened drinks and cosmetic enhancements.

“The DoF is one with the LGUs in promoting fiscal decentralization and advancing their interests by way of strengthening foundations,” Ms. Tionko said. — Elijah Joseph C. Tubayan

World’s richest gain $1 trillion in 2017 on market exuberance

NEW YORK/PRINCETON — The richest people on earth became $1 trillion richer in 2017, more than four times last year’s gain, as stock markets shrugged off economic, social and political divisions to reach record highs.

The 23% increase on the Bloomberg Billionaires Index, a daily ranking of the world’s 500 richest people, compares with an almost 20% increase for both the MSCI World Index and Standard & Poor’s 500 Index.

Amazon.com, Inc. founder Jeff Bezos added the most in 2017, a $34.2 billion gain that knocked Microsoft Corp. co-founder Bill Gates out of his spot as the world’s richest person in October.

Mr. Gates, 62, had held the spot since May 2013, and has been donating much of his fortune to charity, including a $4.6-billion pledge he made to the Bill & Melinda Gates Foundation in August.

Mr. Bezos, whose net worth topped $100 billion at the end of November, currently has a net worth of $99.6 billion compared with $91.3 billion for Mr. Gates.

George Soros also gave away a substantial part of his fortune, revealing in October that his family office had given $18 billion to his Open Society Foundations over the past several years, dropping the billionaire investor to No. 195 on the Bloomberg ranking, with a net worth of $8 billion.

By the end of trading Tuesday, Dec. 26, the 500 billionaires controlled $5.3 trillion, up from $4.4 trillion on Dec. 27, 2016.

“It’s part of the second-most robust and second-longest bull market in history,” said Mike Ryan, chief investment officer for the Americas at UBS Wealth Management, on Dec. 18.

“Of all the guidance we gave people over the course of this year, the most important advice was staying invested.”

The 38 Chinese billionaires on the Bloomberg index added $177 billion in 2017, a 65% gain that was the biggest of the 49 countries represented.

Hui Ka Yan, founder of developer China Evergrande Group, added $25.9 billion, a 350% jump from last year, and the second-biggest US dollar gain on the index, after Mr. Bezos.

Technology billionaire Ma Huateng, co-founder of messaging service Tencent Holdings, became Asia’s second-richest person when his fortune nearly doubled to $41 billion.

The number of Asian billionaires surpassed the US for the first time, according to a UBS Group AG and PricewaterhouseCoopers report.

The US has the largest presence on the index, with 159 billionaires who added $315 billion, an 18% gain that gives them a collective net worth of $2 trillion.

Russia’s 27 richest people put behind them the economic pain that followed President Vladimir Putin’s 2014 annexation of Crimea, adding $29 billion to $275 billion, surpassing the collective net worth they had before western economic sanctions began.

It was also a banner year for tech moguls, with the 57 technology billionaires on the index adding $262 billion, a 35% increase that was the most of any sector on the ranking.

Facebook, Inc. co-founder Mark Zuckerberg had the fourth-largest US dollar increase on the index, adding $22.6 billion, or 45%, and filed plans to sell 18% of his stake in the social media giant as part of his plan to give away the majority of his $72.6 billion fortune.

In all, the 440 billionaires on the index who added to their fortunes in 2017, gained a combined $1.05 trillion.

The fortune of French telecommunications billionaire Patrick Drahi fell $4.1 billion to $6.3 billion, a 39% drop.

Prince Alwaleed Bin Talal, the richest person in Saudi Arabia, dropped $1.9 billion to $17.8 billion after he was detained in a crackdown against corruption led by Crown Prince Mohammed bin Salman that targeted royals, government officials and business leaders.

There were 60 billionaires who fell from the ranking, including South African retailer Christo Wiese, whose fortune dropped to $1.8 billion from a peak of $7.7 billion, in August 2016, after news of an accounting scandal at his Steinhoff International Holdings NV broke on Dec. 5.

Sumner Redstone, 94, also fell off the list as CBS owner Viacom, Inc. continued to grapple with a bitter battle for control between his daughter and other executives, while Rupert Murdoch, 86, sidestepped succession concerns with a December deal to sell much of 21st Century Fox, Inc.’s entertainment assets to Walt Disney Co. Redstone shed $90 million. Mr. Murdoch added $2.7 billion.

In all, the 58 of the 500 billionaires who saw their fortunes shrink in 2017, lost a combined $46 billion.

The Bloomberg index discovered 67 hidden billionaires in 2017.

Renaissance Technologies’s Henry Laufer was identified with a net worth of $4 billion in April.

Robert Mercer, 71, who plans to step down as co-CEO of the world’s most profitable trading fund on Jan. 1, couldn’t be confirmed as a billionaire.

Two fish billionaires were caught: Russia’s Vitaly Orlov and Chuck Bundrant of Trident Seafood.

A Brazilian tycoon who built a $1.3-billion fortune with Latin America’s biggest wind developer was interviewed in April.

Two New York real estate moguls were identified, Ben Ashkenazy and Joel Wiener.

Several technology start-up billionaires were identified, including the chief executive officer of Roku Inc. and the two co-founders of Wayfair, Inc.

Investor euphoria created a number of bitcoin billionaires, including Tyler and Cameron Winkelvoss, with the value of the cryptocurrency soaring to more than $16,000 Tuesday, up from $1,140 on Jan. 4. The leap came with a chorus of warnings, including from Janet Yellen, who called the emerging tender a “ highly speculative asset” at her last news conference as chair of the Federal Reserve, on Dec. 13.

With wealth surging to new highs, billionaires may quickly learn that a billion dollars doesn’t buy what it used to. The price of housing has topped $300 million, the cost of divorce has hit $1 billion and a rediscovered painting by Leonardo da Vinci sold for $450.3 million at a Christie’s auction in November, the most expensive work ever sold.

“Would you believe it?” Eli Broad, who has a $7.4 billion fortune and his own museum in Los Angeles, said after the sale.

“It’s wild.” — Bloomberg

Seven-day term deposits attract higher demand

By Melissa Luz T. Lopez,
Senior Reporter

LENDERS opted to place more funds under the central bank’s term deposit facility (TDF) this week, driving yields lower for week-long instruments.

Demand for the seven-day tenor rose to P59.808 billion on Wednesday, up from the P46.212 billion in tenders received the previous week. This also shot beyond the P40 billion which the Bangko Sentral ng Pilipinas (BSP) placed on the auction block.

The term deposits fetched an average interest rate of 3.3995%, lower than the 3.4004% posted during last week’s offering.

The central bank has kept the weekly term deposit auctions limited to the week-long instruments in light of a smaller surplus of cash held by financial players over the holiday season.

The 28-day tenor was last offered on Dec. 13, during which the P40-billion auction volume was met by just P33.005 billion in total demand.

The weekly term deposit auctions are currently the central bank’s primary tool to capture excess funds in the financial system by allowing banks to park the extra cash they hold under the window, in exchange for a small margin.

Through this, the BSP expects to usher market rates closer to the benchmark borrowing rate at 3%, coming from below the 2.5% floor of the interest rate corridor when the TDF auctions started in June 2016.

For next week, the central bank decided to keep the TDF offerings at P40 billion with a seven-day term, given indications that banks are choosing to hold on to more cash than usual given greater demand among depositors.

“This is the holiday season, so the banks have reserved some liquidity for any contingency,” BSP Deputy Governor Diwa C. Guinigundo said in a text message.

“Naturally, they would prefer to go very short term as the banks continue to service their clients’ needs for loans, investment and even FX (foreign exchange) for imports, debt payments and outward investments.”

The central bank official has said that the shorter tenor provides more “flexibility” for banks to manage their funds and service client demands over the Christmas season, when families withdraw more cash to spend for celebrations and gift-giving activities.

This is a more viable option for banks rather than lock in money under the facility for a month.

Developers to ramp up projects outside Manila

By Arra B. Francia, Reporter

PROPERTY DEVELOPERS will be ramping up developments outside Metro Manila next year, keeping pace with the government’s aggressive infrastructure program that aims to improve connectivity from the metro to the provinces.

This is according to the local arm of real estate consultancy firm Colliers International, which noted the government’s infrastructure projects will  dictate the strategy of property developers in 2018.

“The ushering in of the golden age of infrastructure lends support to the government’s decentralization push which should unlock land values in areas outside of Metro Manila and stimulate business activities in the countryside,” Colliers said in a report.

More townships or satellite communities, which include a mix of residential, office, and commercial developments, will soon pop up in areas outside of Metro Manila. Colliers noted townships offer a better value proposition for buyers, since residents can adopt the “live-work-play-shop lifestyle” without leaving the area.

“We see developers pursuing more township projects in areas outside of Metro Manila such as Cavite, Laguna, Bulacan, Pampanga, Cebu, and Davao over the near to medium term as land values are being unlocked by an aggressive expansion of road networks,” according to Colliers.

Cavite, for instance will benefit from the expansion of road networks by Cavitex Infrastructure Corp., which is behind the 7.7-kilometer Cavite Expressway C-5 South Link Project. This highway links the central business districts in Makati and Taguig to southern cities, including Parañaque, Las Piñas, and Cavite.

The government’s push to develop Pampanga as the location of the next central business district is expected to bring more companies in North Luzon.

Earlier this year, Megaworld Corp. unveiled its P30-billion mixed-use development in San Fernando, Pampanga called Capital Town. The property giant said this is the first township in the north, located just 30 minutes away from Clark International Airport and accessible through the North Luzon Expressway.

“Given the increasingly competitive environment, we believe that developers need to distinguish their projects from others,” Colliers said.

In terms of stand-alone residential projects, the real estate consultant said developers may tap second-tier and third-tier cities, noting that demand from these locations primarily come from end-user buyers, making it more stable in terms of end-user housing demand.

“Completions in the fringe locations have also been rising, exerting upward pressure on overall vacancy,” Collier said.

Meanwhile, in Metro Manila, the residential condominium leasing market will face challenges in 2018. Colliers noted vacancy rates in condominiums are expected to rise to about 14-16% in the next 12 months, as over 21,400 units come online.

For the warehousing and logistics market, Colliers reported warehouses operate at a 98% occupancy rate in the metro, pushing companies to locate in North or Central Luzon.

“We see logistics and warehousing to be a major driver of Northern or Central Luzon economy over the medium term, especially in light of the planned expansion of Clark airport and construction of Subic-Clark cargo railway,” the property consultancy firm said, adding the SM Group and Udenna Corp. of Davao-based businessman Dennis A. Uy are the most bullish in this sector.

Industrial parks, such as the one being built by DoubleDragon Properties Corp. in Luisita Industrial Park in Tarlac, are also moving out of Metro Manila. Other companies that have launched projects in Pampanga are Ayala Land, Inc. with its 31-hectare industrial park within its Alviera estate in Porac, and Filinvest Land, Inc.’s 100-hectare industrial estate in Clark Green City. 

Nonperforming loans of thrift banks climb at end-Oct.

BAD DEBTS held by thrift banks picked up by nearly a tenth as of October, although slower than the growth in total loans extended during the period, latest central bank data showed.

Nonperforming loans (NPLs) incurred by thrift banks reached P41.159 billion as of the month, 9.3% higher than the P37.67 billion tallied during the comparable period in 2016, according to the Bangko Sentral ng Pilipinas (BSP).

This amount inched higher from the P40.32 billion in soured loans tallied at end-September.

NPLs refer to debts left unpaid at least 30 days past due date, which are considered as risky assets as these have high risk of default.

The higher NPL stash came on the back of an 11% increase in total loans granted by the lenders, which brought the running tally to P848.746 billion from P764.452 billion a year ago.

Thrift banks are focused on lending to consumers and small-scale firms, which sets them apart from the operations of the bigger universal and commercial banks who cater mostly to corporate clients. This explains the higher NPL ratio compared to the 1.46% held by big banks, as the retail segment is deemed more prone to defaults.

Meanwhile, the value of non-performing assets declined to P21.578 billion compared to P22.537 billion worth of idle properties a year ago. These refer to items of value seized by thrift units from non-paying borrowers which have been posted as collateral, allowing lenders to recover losses from credit defaults.

With the bigger NPL stash, banks chose to raise the buffers they set aside for possible credit losses to P28.287 billion, 5.3% higher than the P26.873 billion as of October 2016. However, the amount is still not enough to cover the entire P41.159 billion in soured debts, as it only accounts for 68.7% of the total.

Despite this, thrift banks saw strong growth in its asset base and bottom line during the period. Deposits grew by 11.6% to hit P941.451 billion, slightly faster than the expansion in loan books. Of the amount, over 90% have been deployed to lending.

Thrift banks also saw bigger profits this year with P12.271 billion in cumulative net income from January to September, jumping by 17.2% from P10.47 billion booked during the same nine-month period last year.

As of June, there are 57 thrift lenders operating in the Philippines.

The BSP monitors loan and asset quality of banks and financial firms in order to maintain the soundness of the local financial system.

International credit raters have cited the banking system as a pillar of strength for the Philippine economy, even as some raised concerns over rapid credit growth seen in recent months. — Melissa Luz T. Lopez

Golden Haven buys Bria Homes

THE VILLAR GROUP is reorganizing its property business, disclosing on Wednesday that Golden Haven, Inc. will take over the operations of Bria Homes, Inc.

In a disclosure to the stock exchange on Wednesday, Golden Haven said its board of directors approved the acquisition of Bria Homes from Cambridge Group, Inc., a Villar company.

The transaction was priced at P3.01 billion, comprising 9.99 million shares of Bria Homes at P301.42 apiece. This was based on the adjusted book value of Bria Homes as of end November.

Golden Haven and Cambridge Group signed the deed of absolute sale of shares for the transaction on Wednesday.

At the same time, the company’s board authorized the issuance of 150 million common shares to Cambridge group out of the unissued capital stock of Golden Haven by way of private placement. The shares were priced at P20.09 apiece for an aggregate subscription price of P3.01 billion. 

Golden Haven targets to submit the listing application to the Philippine Stock Exchange by Jan. 10, 2018, with listing of the common shares on the bourse by March 30, 2018.

The company will then increase its public float to 14.83% from the current 11.38%.

The funds raised from the private placement will be used to finance Golden Haven’s acquisition of Bria Homes.

Bria Homes’ core business is in the development of mass housing projects across the country. According to its website, it currently has a total of 27 developments in areas such as Bataan, Pampanga, Bulacan, Cavite, Laguna, Camarines Sur, Negros Oriental, Cagayan de Oro, and Misamis Oriental.

“The company believes the Bria acquisition will diversify its real estate business by entering into the mass housing market, accelerate growth and enhance profitability through the creation of additional revenue streams independent of its current business, allow the company to maximize the value of its land bank by providing other avenues for its utilization,” Golden Haven said.

The company added this acquisition will also build shareholder value.

Golden Haven last September changed its corporate name, dropping the words “memorial park” in order to allow the company to expand its business outside the death care industry. The company then said it will build efforts to enter other areas of the property sector in the future.

Golden Haven booked a net income attributable to the parent of P164 million in the first nine months of 2017, 21% higher year on year, as it recorded a 19% increase in revenues to P724 million during the period.

Shares in Golden Haven jumped 9.53% or P1.74 to P20 each at the stock exchange on Wednesday. — Arra B. Francia

Peso climbs to six-month high on positioning before yearend

THE PESO soared against the dollar on Wednesday, hitting its strongest level in six months as it briefly breached the P49 level intraday, as it strengthened in the offshore market.

The local currency finished at P50.04 against the greenback yesterday, gaining 10 centavos from its P50.14-per-dollar close seen on Friday.

Wednesday’s finish was also the peso’s best level since it ended at P49.91-to-the-dollar last June 19.

The peso traded stronger the whole day after it opened the session at P50.03 versus the dollar, while its intraday high was seen at P49.96. Its worst showing for the day, meanwhile, was at P50.05 to the greenback.

Dollars traded declined to $523.1 million on Wednesday from the $740.8 million that changed hands in the previous session last week.

“The peso appreciated as the offshore dollar-peso market has been trading stronger,” a trader said over the phone.

Another trader shared the same sentiment, adding that the peso’s ascent is in line with the movement of other Asian currencies.

“The Asian currencies are moving higher as the peso is leading gains, where the offshore market has been aggressive in selling dollar-peso lately,” another trader said.

Asked for the main driver of the boost in offshore trading, the second trader noted reductions in long dollar positions following the weakness of the local unit this year.

“I think it’s an adjustment. For this year, we’ve seen the weakness of the peso was really significant. And towards the yearend, we’re seeing positions taken out. [I guess, they’re winding up their] position as the year ends,” the second trader said.

Meanwhile, another trader attributed the stronger peso to the lack of fresh leads in the US.

For today, two traders said the peso might play within P49.90 to P50.15 against the dollar, while the third trader gave a slightly wider range of P49.90 to P50.20.

“The local currency is likely to follow its appreciating trend as traders lock in profits before the year ends,” the third trader noted, adding that the December US consumer confidence data released early today will be monitored.

Most Asian currencies edged higher against the US dollar on Wednesday, with the Philippines leading the gains after posting a narrower budget deficit in November — the latest addition to a run of good economic news.

The US dollar was flat, with the dollar index which measure the greenback against six major rivals, down 0.07% at 0523 GMT.

Globally, sentiment was buoyed by oil prices rising to 2-1/2 year highs.

The South Korean won was up 0.08%, hitting its highest since April 2015.

The Taiwan dollar was unchanged by remarks from central bank Vice-Governor Yang Chin-long who said on Wednesday that the Taiwan dollar’s strengthening this year mostly reflects the weakening trend of the US dollar.

The Singapore dollar was up 0.2%, its highest since Sept. 20.

But China’s yuan extended its losses for a second session on a softer fixing and rising corporate dollar demand, traders said. — Karl Angelo N. Vidal with Reuters

Faeldon appointed to OCD

CONTROVERSIAL former customs chief Nicanor E. Faeldon has been appointed by President Rodrigo R. Duterte as deputy administrator III of the Office of Civil Defense (OCD), as shown by his appointment letter dated Dec. 22.

Mr. Faeldon has been accused, particularly by Senator Panfilo M. Lacson, of raking in bribes, among these a P100-million “welcome gift” the commissioner allegedly received upon assuming office at the Bureau of Customs in 2016.

Mr. Lacson when sought for comment said in a text message to the Senate media: “It…says a lot about a person’s judgment of character and the character of the person giving his full trust on another.”

He added: “To say that Faeldon has the goods on the President or any of his relatives in regard to the payola system involving the Davao group may be speculative at this point.”

Mr. Lacson also said: “However, rightly or wrongly, one cannot help but think that the President’s open display of his unequivocal support and trust on Faeldon has something to do with that ugly issue.”

“The Senate cannot dictate on the President who to appoint or not. Faeldon has not been convicted of any crime yet and certainly he is not barred from assuming an appointive or even an elective position. Certainly, the President has the authority to exercise his prerogative to appoint him. However, the Senate cannot also be dictated upon to release Faeldon from custody. So, while he can assume his new post at the OCD, he may have to function from the Senate detention facility via remote control, unless his contempt citation is lifted by the Senate acting as a collegial body.”

For his part, opposition Senator Antonio F. Trillanes IV said “(Mr.) Faeldon knows the dark secrets of the Duterte family, that’s why, even if he is grossly incompetent, he remains a sacred cow.”

Senator Sherwin T. Gatchalian when sought for comment said Mr. Faeldon’s appointment is Mr. Duterte’s “prerogative. However, the President should understand that this person is absolutely ineffective in the Bureau of Customs and was primarily responsible for the lack of systems in deterring illegal drugs from coming through the ports of our own customs.” — Arjay L. Balinbin

MRC Allied to partner with cooperatives

LISTED energy company MRC Allied, Inc. is planning to partner with electric cooperatives in off-grid areas to build power generation plants using a hybrid of solar energy and other technologies, its top official said.

“We want to do at least one next year,” said Gladys N. Nalda, MRC Allied president and chief executive officer.

She said the venture would be of “lesser scale” than the other projects the company is looking into, including a liquefied natural gas facility and big solar farms. The company has recently signed a number of memorandum of understanding with Chinese companies for these bigger ventures.

Ms. Nalda said there are areas under the National Power Corp.’s small power utility group which are planning “embedded” generation projects or those that directly supply the franchise area on which they are located.

“We are exploring that. So we’re looking at going into those business models,” she said.

She said the initial off-grid power development project would be small — at a capacity of less than 1-megawatt (MW), and the mode of ownership could either be a joint venture or partnership with the electric cooperatives.

Ms. Nalda said the cooperatives’ participation could be limited to the land on which the power plant would be built.

“I just want to know how it will work,” she said, adding that if the venture turns out to be successful it may be replicated in other areas.

MRC Allied, a company incorporated in the 1990s, was known previously as a property firm that diversified into mining. It announced its diversification into energy development early this year, eventually making this as its main business purpose.

Ms. Nalda previously said for this year, MRC Allied has 160 MW of solar capacity in the pipeline — 100 MW in Clark Green City, Pampanga and 60 MW in Naga City, Cebu.

In October, MRC Allied bought a 15% stake in a company that partly owns a 50-MW solar project in Brgy. Castilla in Palo, Leyte province.   

The move is part of MRC Allied’s “aggressive effort” to develop at least 1,000 MW of clean and renewable power in the next five years. — Victor V. Saulon

Alvarez, Pimentel move up, Sereno dips in SWS survey

THE two leaders of Congress saw an increase in their ratings, while that of the Chief Justice dipped, according to the Social Weather Stations’ fourth quarter survey on the country’s top officials.

The Fourth Quarter 2017 Social Weather Survey, fielded on December 8-16, found 63% satisfied and 21% dissatisfied with the performance of Vice-President Ma. Leonor G. Robredo, 62% satisfied and 13% dissatisfied with Senate President Aquilino Martin L. Pimentel III, 38% satisfied and 23% dissatisfied with Speaker Pantaleon D. Alvarez, and 34% satisfied and 28% dissatisfied with Chief Justice Ma. Lourdes P.A. Sereno.

Those figures led to net satisfaction ratings (% satisfied minus % dissatisfied) of a good +42 for Ms. Robredo, a good +49 for Mr. Pimentel, a moderate +14 for Mr. Alvarez, and a neutral +6 for Ms. Sereno.

(SWS terminology for Net Satisfaction Ratings: +70 and above, “excellent”; +50 to +69, “very good”; +30 to +49, “good”; +10 to +29, “moderate”, +9 to -9, “neutral”; -10 to -29, “poor”; -30 to -49, “bad”; -50 to -69, “very bad”; -70 and below, “execrable.”)

Ms. Robredo’s latest net satisfaction rating was one point up from +41 (62% satisfied, 21% dissatisfied) in September, which SWS said was due to a 16-point increase to +47 in Mindanao, offset by a steady score of +42 in Balance Luzon, and decreases of 8 points to +15 in Metro Manila and 5 points to +55 in the Visayas .

Upgrades in Ms. Robredo’s net satisfaction rating occurred among class ABCs (up by one grade from moderate +24 to good +32), among those 55 years old and above (up by one grade from good +40 to very good +52), and among college graduates (up by one grade from moderate +17 to very good +30).

On the other hand, downgrades in her net satisfaction happened among class Es (down by one grade from very good +50 to good +45), among 18-24 year olds (down by one grade from good +36 to moderate +29), and among elementary school graduates (down by one grade from very good +55 to good +45).

Mr. Pimentel’s net satisfaction stayed good, at a new personal record-high of +49, up 3 points from his previous +46 (60% satisfied, 14% dissatisfied) in September, SWS said.

This 3-point rise in net satisfaction for Mr. Pimentel was due to increases of 16 points in Mindanao, 5 points in Metro Manila, and 5 points in the Visayas, combined with a 6-point decrease in Balance Luzon.

His net satisfaction rating rose by one grade from good to very good in Mindanao at +61 (correctly rounded), up by 16 points; and stayed very good in the Visayas at +56 (up by 5 points), in Metro Manila at +49 (up by 5 points), and in Balance Luzon at +39 (correctly rounded) although down by 6 points.

Upgrades in Mr. Pimentel’s net satisfaction rating happened in urban areas (up by one grade from good +48 to very good +52), among class Es (up by one grade from good +44 to very good +56), among men (up by one grade from good +49 to very good +50), and among those 55 years old and above (up by one grade from good +47 to very good +52). It stayed good but had a double-digit gain among non-elementary school graduates, at +46 in December, up by 11 points from +36 in September.

Mr. Alvarez’s net satisfaction rose by one grade from neutral to moderate at +14, up by 6 points from his personal record low of +8 (34% satisfied, 26% dissatisfied) in September , after an 8-point decline from the moderate +16 in June.

The 6-point rise in Mr. Alvarez’s overall net satisfaction rating was due to increases of 16 points in Mindanao (one grade from moderate to good at +26), 9 points in the Visayas (from +10, correctly rounded, in September), 6 points in Metro Manila (from -1, correctly rounded, in September), and 1 point in Balance Luzon (hardly moving from +8 in September).

Upgrades in Mr. Alvarez’s net satisfaction happened among class Ds (up by one grade from neutral +7 to moderate +16), among women (up by one grade from neutral +6 to moderate +15), among 18-24 year olds (up by one grade from neutral +9 to moderate +16), among 45-54 year olds (up by one grade from neutral +4 to moderate +17), among those 55 years old and above (up by one grade from neutral +9 to moderate +11), among elementary school graduates (up by one grade from neutral +7 to moderate +14), and among high school graduates (up by one grade from neutral +4 to moderate +16).

Downgrades in his net satisfaction occurred among class ABCs (down by one grade from moderate +24 to neutral -1) and among non-elementary school graduates (down by one grade from moderate +14 to neutral +9).

Ms. Sereno’s net satisfaction rating stayed neutral at +6 in December, although down by 3 points from +9 (35% satisfied, 26% dissatisfied) in September.

“This is her lowest net satisfaction rating score since the neutral -1 in December 2015,” SWS said, adding:

“The 3-point fall in Chief Justice Sereno’s overall net satisfaction rating was a result of the declines of 7 points in Metro Manila, 4 points in Mindanao, and 2 points in the Visayas, combined with a steady score in Balance Luzon.”

Ms. Sereno’s net satisfaction stayed moderate in the Visayas at +12 in December, although down by 2 points from +14 in September.

It stayed neutral in Balance Luzon, unchanged at +9; in Mindanao at +5 in December (although down by 4 points from +9 in September), and in Metro Manila at -7 in December, down by 7 points from net zero in September.

Upgrades in Ms. Sereno’s net satisfaction can be found among 18-24 year olds (up by one grade from moderate +10 to good +30).

Downgrades happened in rural areas (down by one grade from moderate +12 to neutral +9), among class Ds (down by one grade from moderate +10 to neutral +7), among women (down by one grade from moderate +13 to neutral +6), among 35-44 year olds (down by one grade from moderate +10 to neutral -2), among non-elementary school graduates (down by one grade from moderate +11 to neutral +7), and among elementary school graduates (down by one grade from moderate +12 to neutral +4).

The noncommissioned survey was conducted using face-to-face interviews of 1,200 adults (18 years old and above) nationwide: 300 each in Metro Manila, Balance Luzon, Visayas, and Mindanao (sampling error margins of ±3% for national percentages, and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao).

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