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Surging debt to make central banks in Asia cautious on rates

HONG KONG/SEOUL/MUMBAI/BEIJING/TOKYO — Years of cheap money across Asia have left a legacy of surging debt that will force the region’s central bankers to be cautious when they eventually follow in the footsteps of South Korea by raising interest rates.

In South Korea, whose borrowing costs were boosted on Nov. 30, household debt has ballooned to about 150% of disposable income. It’s an even larger 194% in Australia. In China, it’s companies feeling the strain with corporate debt equating to about 160% of gross domestic product.

Years of unprecedented stimulus have swollen the Bank of Japan’s balance sheet to almost the size of the economy. Given the two percent inflation target is still in the distance, a tightening of monetary policy remains a long way off, so that debt pile is set to keep on swelling.

With the Federal Reserve set to lift its benchmark rate this week and forecast to do so three more times next year, investors’ taste for Asian assets is set to be tested. If and when Asian monetary authorities follow suit next year, the region’s mountain of debt will mean each incremental move packs an ever greater punch.

“Asia’s high debt leaves it exposed to a global repricing of credit risk, possibly triggered by inflation surprises,” economists at Nomura Holdings, Inc. led by Rob Subbaraman, head of emerging markets economics and Asia ex-Japan fixed income research, wrote in a note.

The vulnerabilities vary and not every central bank in the region will be raising interest rates. But it may not be a coincidence that one of the nations with low household debt — the Philippines — may be one of the most aggressive in raising interest rates next year. Mr. Subbaraman said he expects four increases.

At the other end of the spectrum is Australia. The central bank there left its official rate unchanged at a record low 1.50% on Dec. 5 and warned that growth in housing debt is outpacing growth in income.

South Korea’s household debt, including loans and purchases on credit, surged to 1,419.1 trillion won ($1.3 trillion) at the end of September, despite efforts from the government to cool the property market. Considering that about 70% of financial institutions’ loans to households are floating rates, a 25 basis points increase in lending rates would lead to an overall 2.3 trillion won rise in interest payments per year, according to Bank of Korea estimates.

Malaysia — which some tip may be next to tighten in Asia — also faces hurdles. Household debt of about 88% of gross domestic product (GDP) is high for a developing nation and Bank Negara Malaysia Governor Muhammad Ibrahim has said any adjustment would be a “normalization” rather than a tightening.

The People’s Bank of China is expected to refrain from raising open-market interest rates in line with the Fed, according to a Bloomberg survey. Rather than higher interest rates, it’s keeping a lid on debt with macro-prudential policies, which cut leverage without causing economic shock.

India — with total government debt at nearly 70% of GDP — must also tread lightly. The central bank has been tightening liquidity by mopping up excess funds in the banking system. That move, along with expectations that official interest rates are close to bottoming and inflation is likely to head higher, have pushed up bond yields.

Soumya Kanti Ghosh, State Bank of India chief economist, says a rise in bond yields of 40-50 basis points would translate into an additional interest cost of 32 billion rupees ($496 million). While that’s a fraction of the 21 trillion rupees budget size for India, a sustained rise in rates could choke off a nascent recovery and discourage companies from borrowing.

For Japan, one of the most indebted nations in the world, few are expecting any near-term tightening. That leaves the Bank of Japan as a major player in government bonds, exchange-traded funds, real estate investment trusts, corporate bonds and commercial paper. It owns more than 40% of Japan’s outstanding bonds and holds more than 70% of ETFs.

Collectively, Asia’s swollen debt pile will keep a lid on any tightening cycle, said David Mann, chief economist at Standard Chartered Plc.

“It will be harder to raise rates knowing the sensitivity must be higher,” Mr. Mann said.

All of that debt “doesn’t matter until it suddenly does.” — Bloomberg

Uy plans to list other companies in 2018

By Arra B. Francia, Reporter

DAVAO-BASED businessman Dennis A. Uy is aiming to list his other companies on the Philippine Stock Exchange by next year, citing the positive business climate in the country.

“We plan to do more listings next year,” Mr. Uy told reporters in Taguig City late Tuesday.

Mr. Uy’s holding firm, Udenna Corp., has a diverse range of businesses under its control, including oil retailing firm Phoenix Petroleum Holdings, Inc., Chelsea Logistics Holding Corp. (CLC), property company Udenna Development Corp., and Udenna Management and Resources Corp.

Of these firms, Phoenix Petroleum conducted an initial public offering (IPO) in 2007, followed by Chelsea Logistics in June this year. 2GO Group, Inc., where Mr. Uy acquired a 28.15% direct economic interest earlier this year, is also listed at the PSE.

Asked which company would do an IPO in 2018, Mr. Uy said it depends on a number of factors that would determine if the company is “ripe” for public trading. 

“Fundamentals should be good. There should be growth potential, you have meet the expectations of the public as your members. And timing. If it’s bear market, how can you list,” Mr. Uy said. 

The businessman has currently been on an acquisition spree that would expand his shipping company by 10%, as well as contribute to the company’s earnings in the fourth quarter of this year.

Among these include a cargo vessel named MV Orient Spirit with a gross registered tonnage (GRT) of 6,348 traversing the Cebu-Cagayan and Cebu-Butuan routes. The vessel with a capacity of 400 20-foot equivalent units (TEUs) that will ply the Manila-Cebu-Manila route starting the first quarter of 2018.

CLC’s unit Fortis Tugs Corp. purchased a 125 GRT Japanese-built tugboat, MT Fortis VI, set to be operational by this month, increasing its tugboat fleet to nine. 

CLC also earlier added three vessels to support the cargo transport requirements of 2GO Group with a combined GRT of 15,811.

“The newly acquired vessels will bring us another step closer to fulfilling our commitment to growth in order to realize more value for our stakeholders, from investors to the consumers,” Mr. Uy, who also sits as CLC’s chairman, said in a statement.

Mr. Uy also recently completed the buyout of management school Enderun Colleges, Inc. as well as purchased the chain of convenience stores under the FamilyMart brand.

In terms of growing the FamilyMart business, Mr. Uy said it would complement Phoenix Petroleum’s 518 stations in the country. 

“It’s expanding in our stations and outside the stations,” Mr. Uy said. 

Central bank cuts TDF offerings as demand continues to weaken

By Melissa Luz T. Lopez,
Senior Reporter

THE CENTRAL BANK will not offer month-long term deposits next week amid feeble demand for these instruments, with market players preferring the shorter tenor as they expect higher global yields and bigger cash requirements for the holidays.

The decision came as bids received during yesterday’s offering declined further to P71.925 billion yesterday from the P74.109 billion recorded the previous week. This settled below the P80 billion the Bangko Sentral ng Pilipinas (BSP) wanted to sell.

Banks offered to place P38.92 billion under a seven-day term, slipping from P41.269 billion in tenders received a week ago and below the P40-billion offering. Despite the narrower demand, the average yield sought by the firms climbed to 3.4542% from last week’s 3.4171%.

The 28-day tenor likewise saw tepid demand at just P33.005 billion, failing to maximize the P40 billion placed on the auction block even as it inched up from P32.84 billion during the Dec. 6 offering. Rates steadied at 3.4954%, compared to 3.494% previously.

The term deposit facility (TDF) is currently the central bank’s main tool to capture excess money supply in the financial system by allowing banks to place extra cash they hold, in exchange for a small return.

BSP Deputy Governor Diwa C. Guinigundo said recent liquidity forecasts done by the monetary authority showed that lenders had smaller amounts to place under the TDF, which inspired the drastic cut in the auction volume.

For Dec. 20, the central bank slashed the auction volume to P40 billion in seven-day papers, and will offer none under the 28-day tenor. This offering is the smallest since the P30 billion offered back in June last year when the weekly TDF auctions started.

“Our numbers suggest that banks continue to lend more, buy FX (foreign exchange) for imports, debt servicing and foreign investments. Hence, they have sustained demand for funds that would translate into lower excess demand in the system,” Mr. Guinigundo said in a text message to reporters.

Still, the central bank official expects players to continue placing what’s left of their excess funds under the week-long tenor, especially ahead of cash requirements during the holidays.

“Banks continue to demand very short-term instruments like the 7-day TDF to allow them greater flexibility in servicing the needs of their clients and deploying the rest of their funds,” Mr. Guinigundo added.

Central bank officials have pointed out that banks are sitting on a smaller stash of idle funds, especially after the overwhelming P255.4-billion amount raised by the Treasury during its retail bond sale last month. Lenders may also be choosing to hold on to cash to address an increase in withdrawals in time for Christmas.

Market players are likewise anticipating a fresh rate hike from the United States Federal Reserve this week, which is expected to bring global yields up.

RLC says 3 Go Hotels to open within next 3 years

By Arra B. Francia, Reporter

THE GOKONGWEI GROUP looks to expand its chain of budget hotels with openings in three new locations until 2019, banking on the surge of local and foreign tourists in the country.

Robinsons Land Corp. (RLC) General Manager of Hotels and Resorts Elizabeth Kristine D. Gregorio said they will be developing Go Hotels located in Iligan, Naga, and Tuguegarao in the next three years, with the Iligan branch set to open by the first quarter of 2018. 

“Iligan is a hundred rooms, Naga is a combination of a Go Hotel and a Summit Hotel, so it will have a total of over 100 rooms combined, and Tuguegarao is another 100 rooms also,” Ms. Gregorio told BusinessWorld during the last week’s opening of Go Hotel Timog in Quezon City.

This will be added to the company’s current chain of 15 Go Hotels across the country. RLC is expanding the chain by partnering with other property companies who would then carry the homegrown hotel brand.

“We continue to look for other sites, other properties. Our goal is to populate Go Hotels throughout the Philippines. So we continue to look for areas where we could partner and sites that we could purchase,” Ms. Gregorio explained. 

Asked on how much the company is investing for the construction of the hotels, the RLC executive explained that the investment cost is discussed directly with the franchisee of the brand. 

For Go Hotels Timog, RLC partnered with Roxaco-Vanguard Hotels Corp., the hotel development group of Roxaco Land Corp. This is the fifth time Roxaco-Vanguard has franchised the Go Hotel brand, as it also operates Go Hotels Ermita-Manila, Go Hotels North EDSA-Quezon City, Manila Airport Road Parañaque, and Cubao-Quezon City.

Roxaco Land President and Chief Executive Officer Santiago R. Elizalde noted they chose to open their fifth Go Hotel branch in Timog Avenue, Quezon City because of its prime location.

“The property was made available to us by our friends who were the previous owners. We were looking for a location within the vicinity because we feel the Quezon City market is a very strong one and Timog just seemed like a very central location with a lot of activity going on,” Mr. Elizalde told reporters in a briefing during the hotel’s opening last week.

Go Hotels Timog has a total of 219 rooms, that comes with free Wi-Fi, spa, parking spaces, and 24-hour CCTV security.

Ms. Gregorio noted the government’s efforts to bring in more tourists in the country is driving the company’s expansion.

“The strong tourism industry, particularly domestic tourism. Then we also have a lot of increase in foreign travel to the Philippines. So it’s actually the efforts of the government to improve tourism,” she said.

The Department of Tourism reported a 10.61% year-on-year growth in international tourist arrivals in the January to August period to 4.47 million.

By the end of September 2017, the hotel segment contributed 8% or P1.37 billion to RLC’s total revenues, up 5% against from year-ago levels. This was primarily driven by a system-wide occupancy rate of 66% during the period.

RLC, meanwhile, booked an attributable profit of P4.57 billion for the nine months ending September, a 1% increase from the same period in 2016.

BSP studying applications from players eyeing to set up virtual currency exchanges

THE Bangko Sentral ng Pilipinas (BSP) is evaluating 12 applications from new players looking to set up virtual currency exchanges in the country amid rapidly growing interest in bitcoin and similar platforms.

BSP Deputy Director Melchor T. Plabasan said applications from 12 financial technology (fintech) firms are being evaluated by the central bank, which would add to two players already approved by the regulator this year.

The new applications come from “locally incorporated” fintech players which are majority owned by foreigners, Mr. Plabasan said, most of which are using bitcoin as their currency. Eight are completing documentary requirements, while four have finished presenting their business models to the regulator.

“We first have to ensure that the activity or service being offered by this particular company should be regulated by the BSP,” Mr. Plabasan, who also heads the BSP’s core information technology specialist group, said during a media briefing yesterday.

“As long as the applicants can substantially complete all the requirements, we can [approve] probably within the first or second quarter of next year.”

Bitcoin is a form of easily transferable electronic currency used for paying goods sold through the Internet, which sometimes stands as an investment for its holders given its fluctuating valuation. It is a form of digital money that is not issued or guaranteed by a central bank, and can be sent or received by anonymous users internationally.

Under the law, the BSP is the sole authority that can issue money in the Philippines through bank notes and coins used as legal tender for day-to-day transactions.

Any person can buy and sell bitcoins, which may be traded by tapping the services of bitcoin dealers or brokers who look for good deals for a bitcoin investor; going to bitcoin exchanges — an establishment that allows bitcoin holders to directly buy and sell the virtual currency; participate in a “mining pool” — a group of individuals with top-of-the-line computers that can solve complex math problems to unlock codes in exchange for a bitcoin; or look for someone to trade cash or goods for bitcoins.

Currently, two virtual currency exchanges are registered with the BSP: Rebittance, Inc. and Betur, Inc. more popularly known as Coins.ph.

Transactions using virtual currency have increased fourfold, with monthly volumes averaging at $8.8 million between January-June of this year, Mr. Plabasan said.

ADVISORY
In the same vein, the central bank is also preparing a new advisory to warn the public against fraudsters who pass off pyramid scams as bitcoin investments with the promise staggering returns, leveraging on the strong appeal of virtual currencies.

“We also recognize that there are a lot of pyramid schemes right now disguised as ICOs (initial coin offerings) or investment channels. We will also advise the general public to be wary of these types of institutions,” Mr. Plabasan added.

“If they are enticing, some of them… are really too good to be true, [but] no one can ever guarantee that the price of bitcoin will always be rising.”

Albeit unregulated, bitcoin values have been soaring in recent days to a steady ascent towards the $20,000 mark, Reuters reported.

The central bank official added that they are asking the public to deal with exchanges registered with the BSP, noting that they are waiting for Monetary Board approval for the public notice.

The regulator issued its first public warning on the use of digital currencies in March 2014, when foreign regulators banned banks and brokers from handling the new currency following the collapse of Mr. Gox, a Tokyo-based bitcoin exchange.

The BSP will also be starting discussions with the Securities and Exchange Commission for “cooperative oversight” on coin offerings, especially for those with investment features.

Mr. Plabasan said the Philippines is an “ideal market” for virtual currencies given a young and tech-savvy population, widespread use of smartphones and social media and a big portion of unbanked citizens. Bitcoin transfers are likewise attractive due to cheaper remittance fees, with the country being the third-biggest receiver market in the world.

However, risks attached to bitcoin and similar platforms include volatile valuations, irrevocable transfers, consumer protection and security concerns, and its possible use for illegal activities, the official said. — Melissa Luz T. Lopez

Robinsons buys into BeautyMNL operator

ROBINSONS Retail Holdings, Inc. (RRHI) is joining the roster of firms taking a slice in the e-commerce industry by acquiring a stake in the operator of online cosmetics marketplace BeautyMNL.

In a disclosure to the stock exchange on Wednesday, the Gokongwei-led firm said it has purchased a 20% stake in Taste Central Curators, Inc. The transaction involves one million shares in Taste Central.

RRHI said the acquisition is expected “to further expand and strengthen (the company’s) presence in the beauty format and e-commerce space.”

The company did not disclose the acquisition cost, but noted that the amount was less than 10% of RRHI’s stockholders’ equity by the end of September. RRHI’s stockholders’ equity stood at P53.9 billion by the end of this period.

RRHI described BeautyMNL as an industry leader in the local beauty e-commerce space. It operates as both an online magazine that offers beauty advice and as a marketplace.

This is the second time the Gokongwei group has invested in e-commerce, after RRHI’s parent JG Summit Holdings, Inc. participated in the $550-million funding program for Singapore-based Internet platform company Sea Ltd. in May this year.

Sea, which is present in countries across Southeast Asia, is behind Garena Interactive Holding, Ltd., Shopee, and digital financial services firm Airpay.

RRHI joins other companies that have strengthened their presence online.

The Ayala Group in February this year acquired a 49% stake in BF Jade E-Service Philippines, the owner and operator of Zalora Philippines. Zalora Philippines is the country’s largest online fashion marketplace where customers can choose over 120,000 products across more than 1,000 brands.

The SM group meanwhile is adopting a “clicks-to-bricks” strategy that would drive online shoppers to its physical stores.

RRHI ended September with a total of 1,658 stores, comprising 146 supermarkets, 46 department stores, 185 do-it-yourself (DIY) stores, 489 convenience stores, 467 drugstores, and 325 specialty stores.

The company generated a net income attributable to the parent of P3.49 billion in the nine months ending September, higher by 5.8% year on year. This comes on the back of a 10% increase in net sales to P81.18 billion for the period.

Shares in RRHI lost P2.30 or 2.45% to close at P91.70 apiece at the stock exchange on Wednesday. — Arra B. Francia

Peso sideways ahead of Fed decision, BSP meet

THE PESO moved sideways against the dollar on Wednesday as the market was cautious ahead of the result of the US Federal Reserve meeting.

The local currency closed the session at P50.48 yesterday, three centavos stronger than the P50.51-per-dollar finish on Tuesday.

The peso opened slightly stronger at P50.50, while its intraday high stood at P50.43. Its worst showing, meanwhile, was at P50.525 against the greenback.

Trading volume dropped to $576.95 million yesterday from the $665.6 million that changed hands the previous session.

A trader said there was not much movement in yesterday’s session as the market consolidated while waiting for clues ahead of the close of the Fed’s policy meeting.

“We’re still are in a quandary as to where the next direction will be,” a trader said over the phone, noting that the buying from oil companies was countered by inflows and remittances from overseas Filipinos ahead of the holidays.

“In terms of direction, there’s also a lot of factors to consider. Globally, we’re seeing the dollar to be supported, but domestic factors are also pointing at stronger peso as the [tax reform] will probably push the local currency higher,” the trader added.

“The peso slightly appreciated today due to lack of fresh leads with the US Federal Reserve already being perceived by the market to likely raise policy rates this December,” another trader said in an e-mail on Wednesday.

The Federal Reserve is widely expected to raise interest rates on Wednesday, but, more significantly, it may give its strongest hint yet on how the Trump administration’s tax overhaul could affect the US economy.

Investors will pay close attention to how the central bank aims to balance a stimulus-fueled economic boost with the ongoing weak inflation and tepid wage growth that has curbed some policy makers’ appetite for higher rates.

The Fed has increased rates twice in 2017 and is currently expected to push through three more hikes next year.

For today, traders are expecting the peso to move sideways, as one trader gave a forecast range of P50.35 to P50.65.

“The local currency is expected to move sideways amid uncertainties on policy rate decisions of various other major central banks [today] including the BSP (Bangko Sentral ng Pilipinas) and the European Central Bank,” the second trader said.

Meanwhile, the first trader gave a slimmer range of P50.45 and P50.65. “The next level of support should be around P50.24, which is the recent [high], while the next level of resistance might be at P50.65.”

Other Asian currencies were little changed as traders were wary of taking fresh positions ahead of a Fed rate decision later in the day. With the Fed widely expected to hike rates, the focus is turning to any clues on its 2018 tightening plans.

The dollar index, which tracks the greenback against a basket of six major rival currencies, fell as Democrat Doug Jones beat Republican Roy Moore in a bitter US Senate race in Alabama. The dollar index was down 0.2% at 93.948. — K.A.N. Vidal with Reuters

Congress approves 2nd martial law extension

WITH 240 votes in the affirmative and 27 in the negative, the two chambers of Congress approved a second extension of martial law in Mindanao, this time for a full year.

Convening in a joint session on Dec. 13, the Senate voted 14-4, and the House of Representatives, 226-23, to adopt a letter early this week by President Rodrigo R. Duterte to extend martial law and suspend the privilege of the writ of habeas corpus in Mindanao from Jan. 1 to Dec. 31, 2018.

“The motion to further extend the proclamation of martial law and the suspension of the privilege of the writ of habeas corpus is hereby approved,” House Speaker Pantaleon D. Alvarez said after the vote.

Senator Sherwin T. Gatchalian, who voted in favor of the extension, said “martial law in Mindanao is nothing like the martial law that was imposed across the entire country decades ago.” He said the Commission on Human Rights had reported no confirmed cases of human rights violation in connection with martial law in Mindanao and also cited the National Economic and Development Authority which said martial rule did not affect the regional or national economy.

“All in all, it is clear that the Duterte government has administered martial law judiciously, with great care to protect the rights of our citizens. I trust that this administration will continue to implement martial law with prudence, in pursuit of the best interests of our country,” Mr. Gatchalian said.

Senator Panfilo M. Lacson also voted for martial law’s extension, despite an earlier warning of its scope expanding nationwide.

Mr. Lacson said the extension will be a psychological boost to the soldiers, but clarified that this will not give extra powers to the military and even the President.

Senator Ana Theresia Hontiveros-Baraquel, explaining her opposition, said martial law “is not a silver bullet or a quick fix for all of our social ills. It will not bring us nearer to peace.”

Senate Minority Leader Franklin M. Drilon, for his part, said: “Is this now a prelude to declaring martial law nationwide?”

In the House, Iligan City Representative Frederick W. Siao, voting to support martial law, said, “Recovery and rehabilitation efforts for Marawi will not prosper if people’s safety is not assured and remaining pockets of terrorism are not quashed.”

For his part, House Assistant Majority Leader Michael L. Romero said: “We need a strong economic war on the root causes of the rebellion and terrorism, particularly in Mindanao.”

Dinagat Island Representative Kaka Bag-ao said of her opposition to martial law: “We need better military intelligence. We need quicker military response. We need active citizenship in our communities. We need to institute structural reforms. We need a strategic response, and not just be comfortable with the shortcuts offered by martial law and the shrinking of democratic and political rights of citizens — of Filipinos — in Mindanao.”

For his part, Senate President Aquilino Martin L. Pimentel III said it is possible that martial law will be lifted even before its extension period ends. “No one will know if [time frame] is enough. What’s important is if it’s reasonable,” Mr. Pimentel said.

Mr. Duterte, in a speech Wednesday afternoon, said, “I would like to thank the Congress for understanding the plight. Talagang mahirapan ako kung walang martial law sa Mindanao (It would be difficult for me [to maintain peace] without martial law).”

Mr. Duterte also said martial law nationwide was still possible, depending on the threat of the communist rebellion. — Minde Nyl R. dela Cruz with AFP

PNP chief’s term extended — Duterte

PRESIDENT Rodrigo R. Duterte on Wednesday, Dec. 13, said he will extend to three months the term of Philippine National Police (PNP) Chief Director-General Ronald M. Dela Rosa, who is due to retire on Jan. 21 next year when he reaches the retirement age of 56.

Mr. Duterte bared his decision to extend Mr. Dela Rosa’s term in an interview with reporters Wednesday afternoon.

“I said I will extend his tour of duty to something like two to three months. Once the projects are in place or operational or functional, then he goes to the BuCor,” Mr. Duterte said, referring to the Bureau of Corrections that he said on Wednesday was Mr. Dela Rosa’s next assignment.

Mr. Dela Rosa said of his term extension that he is somehow “pressured” because he might not be able to do what Mr. Duterte had asked him to do: “Pressured ako dahil I may not meet the expectation of the President baka mag-fail ako.”

Asked about the mission he is tasked to accomplish as PNP chief on extension, Mr. Dela Rosa broadly referred to the government campaign against drugs, terrorism, and criminality, particularly in Mindanao.

“Hindi ako pwedeng mag-ayaw. Given the choice, ang sarap na retired ka nang ginagawa, but I’m not running away from that responsibility,” Mr. Dela Rosa said. (I cannot refuse. Given the choice, it’s great to retire, but I’m not running away from that responsibility.)

“I have to deliver. Hindi ako tatakbo sa responsibilidad (I will not shirk responsibility),” he added. — Rosemarie A. Zamora

House grills Sanofi; Aquino to face Senate

A PARTY-LIST congressman, in the House of Representatives’ first inquiry into the Dengvaxia controversy, has demanded an apology from Sanofi Pasteur, not for injecting Filipino children with the dengue vaccine, but for issuing a “reckless” and “tactless” advisory that has caused alarm.

But even as the congressional inquiries have turned up the heat on the French manufacturer and past Philippine officials amid the controversy over Sanofi’s Dengvaxia vaccine, President Rodrigo R. Duterte, for his part, expressed openness, giving the benefit of the doubt to officials of the previous Aquino administration that approved the administration of the vaccine on more than 830,000 children nationwide.

Mr. Duterte’s predecessor, Benigno S.C. Aquino III, is scheduled to appear today before the Senate’s continuing inquiry into this controversy.

On Wednesday, during the joint hearing on Dengvaxia conducted by the House committee on good government and public accountability and the committee on health, SAGIP Party-list Representative Rodante D. Marcoleta asked Sanofi Pasteur Asia-Pacific head Thomas Triomphe: “Did it occur to you that such kind of a statement or advisory ha(s) caused sleepless nights, emotional distress and other similar emotional insecurities to our people? Did you realize that it could publicly alarm people?”

Mr. Marcoleta was referring to Sanofi’s statement to the effect that inoculated patients who have not had dengue were prone to the disease after vaccination.

Mr. Triomphe said he understood, which was why he was in the hearing to clarify it.

“But the damage is already done,” Mr. Marcoleta said. “You are so reckless in your statement. You’re very indifferent. You’re so inconsiderate as if you can casually play on the lives of our people.”

Mr. Triomphe eventually apologized for the confusion, and again said that he was there to clarify the matter. “I do apologize indeed if there was misunderstanding in this communication,” he said.

For his part, Senator Richard J. Gordon, who leads the Senate inquiry, said in a statement on Wednesday, affirming an earlier view by observers in this controversy, that he sees a “conspiracy” in the government’s procurement of P3.5-billion Dengvaxia vaccines because the budget for the procurement was not even part of the General Appropriations Act (GAA).

But Mr. Duterte, for his part, in an interview with reporters on Wednesday afternoon, said:

“Look, if I were the President and there’s a… vaccine that was already paid for, and the studies show that (the) company,…I, as President, would al — ako rin, sabihin ko (me too, I would say), ‘You implement it if it would save lives.’”

“But ignorante man sila (they were ignorant). There was also another follow-up study based on clinical studies that found the flaws, the errors maybe.”

“I cannot blame anybody. I am not prepared to condemn anybody there simply because binili nga natin ’yun (we bought it)….”

“Not as yet, so I am not prepared to pass judgment. I can only inquire and hope that everything will give us the truth because anything here in this planet requires truth.”

“Even (Janette L.) Garin, (Mr. Aquino’s health secretary), I am not…eh sinabi kaya natin binili ’yun (they said they bought that) because they believe… Alam mo ang ano diyan (You know what that is), it’s good faith.”

“If you really think in good faith that you are doing the right thing, nobody but nobody can question you except your conscience,” Mr. Duterte said. — report by interaksyon.com with Rosemarie A. Zamora and Arjay L. Balinbin

Alleged IS recruiter faces cybercrime, rebellion charges

PROSECUTORS yesterday, Dec. 13, recommended the filing of charges of inciting to rebellion against Karen Aizha A. Hamidon, an alleged online recruiter for Islamic State (IS).

“This resolves the complaint filed by the National Bureau of Investigation Counter-Terrorism Division (NBI-CTD) against respondent Karen Aizha Hamidon y Abuan, for Rebellion under Articles 134 and 135 of the Revised Penal Code in relation to Section 6 of Republic Act (RA) No. 10175 (otherwise known as the Cybercrime Prevention Act of 2012), or two hundred ninety-six (296) counts of Inciting to Rebellion under Article 138 of the Revised Penal Code in relation to Section 6 of RA No. 10175,” the 16-page resolution read in part.

Ms. Hamidon was arrested by operatives of the NBI-CTD on Oct. 11 at her home in Taguig City, where they also seized her cellphones, laptops, tablets and other electronic devices allegedly being used for her illegal online activities.

Ms. Hamidon was allegedly recruiting for membership to IS and joining local terrorists who took seige of Marawi City.

In her counter-affidavit, Ms. Hamidon defended that she was “instigated” by NBI agents to commit the illegal acts and that these were done against her will.

However, a portion of the resolution reads: “The presumption prevails that complainants regularly performed their official duties and ordinary course of business has been followed.”

The prosecutors sought for the Department of Justice’s approval of the resolution and the filing of the case before the Regional Trial Court in Taguig City. — Andrea Louise E. San Juan

Blaze Spikers go for PSL Grand Prix crown

By Michael Angelo S. Murillo
Senior Reporter

A WIN away from clinching the title for the season-ending Philippine SuperLiga (PSL) Grand Prix, the Petron Blaze Spikers go for the clincher when they collide with the F2 Logistics Cargo Movers in Game Two today of their best-of-three finals series at the FilOil Flying V Center in San Juan City.

In their element from start to finish, the Blaze Spikers proved themselves to be a handful for the Cargo Movers in Game One last Tuesday en route to the series-leading 25-14, 25-21 and 25-16 victory.

Imports Lindsay Stalzer and Hillary Hurley towed Petron to the win in a game which coach Shaq delos Santos described as the way they envisioned it.

Ms. Stalzer, a one-time PSL most valuable player, struck for 15 kills and three blocks for 20 points while her co-import Hurley also tallied 20 points in the one-hour, 23-minute game.

“Everything went according to plan. We executed our game plan to perfection and everybody worked hard for this victory. We managed to hit our service targets and had defensive good reaction to their set plays. It was a good game,” said Mr. Delos Santos after the game in assessing their Game One performance.

“Our game plan was very effective. We were able to take them out of their comfort zone,” added the Petron coach.

While they rued not being able to execute their game as much as they wanted to in the series-opener, F2 Logistics coach Ramil de Jesus said they are not losing hope yet and will try to come out better for today’s game.

The multi-titled collegiate coach said key for them is getting back to their game, including getting in more passes.

“There was nothing left to say. We just need to bounce back in Game Two and play better,” said Mr. De Jesus after.

Leading the Cargo Movers in Game One was Venezuelan import Maria Jose Perez, who had 15 kills.

FOTON SETTLES FOR THIRD
Meanwhile, erstwhile PSL Grand Prix defending champions Foton Tornadoes wrapped up the bronze in the tournament following a 25-17, 25-16, 25-17 victory over the Cocolife Asset Managers in their knockout battle for third also last Tuesday.

Jaja Santiago led the Foton assault with 10 kills, four blocks and three aces for 17 points while import Sara Klisura and Dragana Perunicnic had 13 and 11 points, respectively, in their farewell performance this conference.

Despite not being able to defend their title in the finals, Foton coach Moro Branislav still viewed their third-place finish as a positive for the team and something to build on in the next conferences.

“It’s okay. That’s volleyball; sometimes you win, sometimes you lose,” said Mr. Branislav.

“In my opinion, there are three good teams in this league; F2 Logistics, Petron and Foton. I am proud of what we’ve accomplished and coming up with a podium finish is good than having nothing at all,” he added.

Game Two of the PSL Grand Prix finals is to be shown live over ESPN5 starting at 7 p.m.

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