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BDO Nomura sees PSEi rising to 9,100 in 2018

By Arra B. Francia, Reporter

THE MAIN INDEX could soar to the 9,100 level by the end of 2018, as earnings growth of listed companies push share prices up amid inflationary pressures in some sectors.

A market forecast by BDO Nomura Securities, Inc. noted a bullish outlook on the Philippine economy next year. This year, the company has projected the Philippine Stock Exchange index to close at around the 8,300 mark.

“We’re looking at 9,100 yearend target for the index, yearend 2018. We’re still very bullish on the Philippine stock market. It’s just that we’ve had to adjust our stock picking strategy to take into account the rising inflation, rising interest rate in the background,” BDO Nomura Research Head Dante R. Tinga, Jr. said in a briefing in Makati on Monday.

The local stock market’s climb will come amid the projected 4.3% inflation the Philippine economy will record in 2018, which is above the Bangko Sentral ng Pilipinas’ target of 2-4%.

BDO Nomura said its higher inflation forecast, which was previously at 3.8%, was revised upward after taking into account the higher oil price assumption of $65 per barrel.

“Our view is the acceleration in earnings growth should more than offset the risks associated with rising inflation. So that’s why we’re staying positive on Philippine stocks,” Mr. Tinga said.

BDO Nomura gave a positive outlook on the property, banking, and industrial sectors, saying firms under these sectors can withstand the effects of faster inflation.

The property sector, for instance, will benefit from both the implementation of the tax reform package scheduled for the first quarter of 2018 as well as the aggressive infrastructure spending of the government.

The bicameral conference committee in Congress is currently reconciling the House and Senate versions of the tax reform bill to ensure its passage and implementation by next year.

“Tax reform and accelerated infrastructure spending should provide long-term tailwinds to the sector. Concerns on residential oversupply have eased. Real estate remains a direct proxy for the Philippine economy,” the company said in a presentation handed out during the briefing.

BDO Nomura, meanwhile, adapted a bearish stance on consumer and telecom industries, as these will be the companies directly hit by an uptick in prices.

“Companies face difficulty translating strong macro backdrop into profit growth due to intensifying competition and rising input costs,” BDO Nomura Research Analyst Angelo Antonio S. Torres said in a market comment.

With this, BDO Nomura said its top stock picks are Ayala Land, Inc., SM Prime Holdings, Inc. for property, Bank of the Philippine Islands and Metropolitan Bank & Trust Co. for banks, and Jollibee Foods Corp. and Shakey’s Pizza Asia Ventures, Inc., and Wilcon Depot, Inc. for consumer stocks. 

Other than inflation, BDO Nomura considers the slowdown of the business process outsourcing industry to be one of the risks to its bullish view on the Philippines. 

“We already account or incorporate some slowdown. Industry revenue growth slows down from 17% in the last six years to 9% in the next six years. But if the slowdown is more severe than that then we think the adverse impact on the economy could be much more significant than what we forecast,” Mr. Tinga said.

Delays in carrying out government reforms could also affect the economy, but Mr. Tinga said this has not become a significant risk yet as consumer and business sentiments are still positive.

Rediscount facility borrowings drop in November

PHILIPPINE BANKS availed of fewer loans under the central bank’s rediscount facility in November, which comes at a time of ample liquidity in the financial system.

Borrowings under the peso rediscount window of the Bangko Sentral ng Pilipinas (BSP) totalled P171 million last month, lower than the P370 million banks took out in October. The amount, however, surged from just P14 million availed in November 2016, according to central bank data.

Lenders borrow from the BSP’s rediscount facility so that they can meet their short-term funding needs, in keeping with the central bank’s duty as lender of last resort.

The credit window lets banks submit promissory notes from outstanding client debts as collateral to acquire fresh money supply. The cash can then be used to grant more loans or service withdrawals.

As of end-November, total peso rediscount borrowings hit P1.144 billion, well below the P10.755 billion availed during the comparable year-ago period.

Around 92.3% of the amount has been allotted by banks for a fresh wave of commercial lending, the central bank said. Some 5.9% was extended for services, 1.3% for housing credit, and 0.5% for production activities.

The rediscount availments have been sustained for the fourth straight month since new borrowing rates took effect. Since July 21, a uniform rate has been imposed for availing of rediscount loans after the BSP shut down the special window for thrift, rural, and cooperative banks.

Only two rates are imposed for short-term peso borrowings secured by banks: 90-day loans are priced at a 3.5625% rate, while 180-day credit lines carry a 3.625% margin. This is computed based on the BSP’s overnight lending rate at 3.5% plus term premia.

On the other hand, credit windows for foreign currencies remained untapped as of November as yields continued to climb.

Rates for dollar loans rose to 3.48738% for 90-day loans; 3.54988% for 91- to 180-day loans; and 3.61238% for 181- to 360-day loans. Higher returns will also be imposed for yen-denominated borrowings at 1.984% for one to 90-day loans, 2.0465% for 91- to 180-day loans, and 2.109% for 181- to 360-day loans.

The movements on foreign currency loans mirror rising global yields, as market players anticipate another rate hike from the United States which is expected to trigger higher interest rates across financial markets.

Central bank officials have said that there remains ample liquidity in the Philippine financial system, which does away with the need to avail of rediscount loans as players hold enough cash to support day-to-day transactions. — Melissa Luz T. Lopez

LRWC in talks for Boracay casino, resort

LEISURE and Resorts World Corp. (LRWC) disclosed on Monday negotiations with a gaming firm based in Macau on a possible partnership for a beach resort and casino in Boracay island.

LRWC said it is in talks with Galaxy Entertainment Group Limited (GEG) for the resort and casino, noting that representatives from the firms, led by GEG Chairman Lui Chee-woo and Vice-Chairman Francis Lui Yiu Tung, paid President Rodrigo R. Duterte a courtesy call to discuss the project last week.

“Galaxy is excited about the possibility of teaming with LRWC to develop a world class beach resort for our players in Boracay which was just rated the number one island in the world in 2017 by Conde Nast Traveller readers,” Mr. Lui Yiu Tung was quoted as saying in a statement.

GEG is listed on the Hong Kong Stock Exchange, which has three flagship destinations, namely Cotai, Galaxy Macau, Broadway Macau, and Peninsula StarWorld Macau, according to its Web site. Its international presence comes in the form of a strategic investment in Société Anonyme des Bains de Mer et du Cercle des Etrangers à Monaco, an owner of luxury hotels and resorts in Monaco.

LRWC, meanwhile, operates over a hundred bingo parlors in the country as well as a number of leisure properties held by its subsidiaries. The company dubbed the potential project with GEG as a “game changer” for the resort and tourism industry. 

We look forward to working with GEG in bringing a world class resort to the island-paradise of Boracay. If the project materializes as envisaged, it’s going to be a game changer in the Philippine resort and tourism landscape,” LRWC Vice-President for Legal and Corporate Secretary Katrina L. Nepomuceno said in a statement. 

The possible partnership comes amid improving relations between China and the Philippines, given the president’s friendlier attitude toward the former.

Mr. Lui Yiu Tung added that GEG, along with its mother company K Wah Group, looks to take part in the One Belt One Road initiative and explore the potential and attractive business opportunities in the country.

Shares in LRWC added 25 centavos or 5.68% to close at P4.65 each at the stock exchange on Monday. — Arra B. Francia

Peso up on Fitch upgrade

THE PESO strengthened against the dollar on Monday following the upgrade given by Fitch Ratings to the Philippines.

The local currency ended yesterday’s session at P50.36, 14 centavos stronger than its P50.50-per-dollar finish on Friday.

The peso opened stronger at P50.42 against the greenback, bolstered by the Fitch announcement on the credit rating upgrade. Its lowest point for the session was just at P50.45, while it reached an intraday high of P50.30 versus the dollar.

Dollars traded, however, dipped to $509 million from the $703.1 million that changed hands in the previous session.

Traders said the credit rating upgrade boosted the peso amid the dollar’s strong performance versus most currencies.

“Despite broad-based dollar gains, we’re seeing the peso to improve probably because of the Fitch upgrade. The upgrade will definitely give a slight boost to Philippine assets and the peso, I think, was one of those beneficiaries,” a trader said in a phone interview.

The Philippines bagged an upgrade from Fitch on the back of continued economic growth, supported by optimism towards infrastructure and tax reform plans.

The international debt watcher raised the country’s long-term issuer rating by one notch to “BBB” with a “stable” outlook, it said in a statement. This is one notch above minimum investment grade and matches the ratings earlier given by Moody’s Investors Service and S&P Global Ratings.

Fitch had pegged the Philippines’ ratings at “BBB-” with “positive” outlook since September 2015.

Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, said the credit rating upgrade from the debt watcher is a manifestation of the country’s stable and growing economy.

“It also illustrates that investors have been truly cancelling out the political noise coming out every day of the Philippines,” Mr. Asuncion added.

For today, a trader expects the peso to move around the P50.20 to P50.50 range, while another trader gave a slimmer range of P50.24 to P50.46.

“There are conflicting factors on the dollar-peso. It’s not a clear trend. The global scenario is that the dollar is strengthening across the board, but the peso is being buoyed by the local factors,” the first trader noted. — K.A.N. Vidal

Congress sets Dec. 13 joint session on martial law

CONGRESS HAS set Wednesday, Dec. 13, for a joint session on President Rodrigo R. Duterte’s request to extend anew martial law and the suspension of the writ of habeas corpus in Mindanao.

Following Mr. Duterte’s transmittal on Monday of his letter to that purpose, Senate President Aquilino Martin L. Pimentel III and House Majority Leader Rodolfo C. Fariñas both confirmed to the media the scheduled joint session on Wednesday.

Mr. Pimentel also disclosed that the Senate will be briefed on Tuesday by the martial law administrator, Defense Secretary Delfin N. Lorenzana, as well as by other agencies, including the National Economic and Development Authority, “para may economic angle naman kami and human rights angle,” he said. (So we can have an economic angle and a human rights angle.)

Congressional sessions are set to end this Friday, Dec. 15, but Mr. Pimentel said Congress will be at work “hanggang Wednesday lang (only until Wednesday).”

“Ang mga bicam kasi ano na lang yan, yes or no. Ang bicam reports (The bicam reports are just a matter of yes or no),” the Senate leader said, referring to the stage where the national budget next year and the crucial tax reform program of the Duterte administration remain pending.

Mr. Duterte, in his letter on Monday to Mr. Pimentel and House Speaker Pantaleon D. Alvarez, said in part: “I ask the Congress of the Philippines to further extend the proclamation of Martial Law and the suspension of the privilege of writ of habeas corpus in the whole of Mindanao for a period of one (1) year, from 01 January 2018 to 31 December 2018, or for such period of time as the Congress may determine, in accordance with Section 18, Article VII of the 1987 Philippine Constitution.”

The letter seeking martial law’s second extension was sent 20 days before the current extension expires on Dec. 31.

On May 23, Mr. Duterte declared martial law in the entire Mindanao for a period of 60 days, as the Maute group started its siege of Marawi City. After the 60-day limit of martial law, Congress extended it upon Mr. Duterte’s request until Dec. 31.

Under Article VII, Section 18 of the Constitution, the President, as Commander-in-chief of the Armed Forces of the Philippines, can either revoke or extend the declaration of martial law and the suspension of the privilege of writ of habeas corpus, as can be determined by Congress through a joint session.

On Dec. 4, Mr. Lorenzana formally wrote Mr. Duterte asking him to extend martial law in the whole southernmost region of Mindanao, “primarily to ensure total eradication of DAESH-Inspired Da’awatul Islamiyah Waiyatul Masriq (DIWM), other like-minded Local/Foreign Terrorist Groups (L/FTGs) and Armed Lawless Groups (ALGs), and the communist terrorists (CTs) and their coddlers, supporters, and financiers.”

Mr. Duterte also cited concerns following attacks by remnant forces of terrorist leaders Isnilon Hapilon and the Maute brothers, and of the DIWM, Turaifie Group, Bangsamoro Islamic Freedom Fighters, Abu Sayyaf Group, and New People’s Army.

“A further extension of the implementation of Martial Law and suspension of the privilege of the writ of habeas corpus in Mindanao will help the AFP, the Philippine National Police (PNP), and all other law enforcement agencies to quell completely and put an end to the on-going rebellion in Mindanao and prevent the same from escalating to other parts of the country,” the President said in his letter, adding:

“Public safety indubitably requires such further extension, not only for the sake of security and public order, but more importantly to enable the government and the people of Mindanao to pursue the bigger task of rehabilitation and the promotion of a stable socio-economic growth and development.”

In his press briefing on Monday, Presidential Spokesperson Harry L. Roque said: “We are hopeful that Congress would see the need for further extension of martial law as explained in PRRD’s official communication to finally put an end to the ongoing rebellion in Mindanao. Public safety after all is our primordial concern. We must unite against these evil forces.”

“We need to ensure that they no longer present a threat that all acts of rebellion emanating from them had ceased. And that they are not in a position to endanger public security,” he added.

In Davao City, business leaders expressed support for the extension of martial law in Mindanao.

Davao City Chamber of Commerce and Industry, Inc. President Ronald C. Go said: “Our President is unlike those in the past who perceived the threats in Mindanao as just a petty disturbance that could be taken care of with a little money. They tried to use band and fixes for wounds which were long infected.”

“Other Asian nations became progressive once the elements which sought to sow divisions among them were dealt with decisively. We need to band together to quell any movement that seeks to divide us as a nation,” he added.

For his part, Mr. Antonio Peralta, chairman of the Southern Mindanao Business Council and a member of the European Chamber of Commerce, said: “We should always think if we are part of the solution or part of the problem?” — with Rosemarie A. Zamora and Minde Nyl R. dela Cruz and a report by Maya M. Padillo

Construction materials prices rise in November amid infrastructure drive

THE retail price of construction materials rose in November amid the rollout of several big-ticket infrastructure in the National Capital Region, according to data from the Philippine Statistics Authority (PSA).

According to a posting Monday on the PSA website, the Construction Materials Price Index rose 1.7% year on year in November, up from 1.4% in October. On a month-on-month basis, November prices rose 0.4%.

Miscellaneous construction materials rose 8.3% year on year, while tinsmithry and electrical materials both rose 1.1%. Masonry materials rose 2.9%. Carpentry materials rose 0.8%, painting materials and related compounds rose 1.2% and plumbing materials were up 0.5%.

The wholesale price index rose 2.1% year on year and 1.0% month on month.

Leading the wholesale price rises were fuels and lubricants, which rose 18.3% year on year.

Reinforcing steel prices rose 4.2% year on year on a wholesale basis, while doors, jambs and steel casements rose 3.8%. Concrete products and lumber rose 3.5% and 3.1%, respectively. Painting works and galvanized iron sheets rose 1.3% and 0.2%, respectively.

Tileworks rose 2.2%, followed by sand and gravel at 1.7%. Hardware and plumbing fixtures and other waterworks accessories grew by 1.1% and 0.8%, respectively.

The price indices for cement, plywood and PVC pipes declined. Cement fell 4.1%, while plywood and PVC pipes fell 0.8% and 0.2%, respectively.

UP professor emeritus and economist Raul V. Fabella told BusinessWorld that the price index increase is “obvious” given the rollouts of major infrastructure projects which raised demand for construction materials.

“There will be always that reflection of higher demand in the price but that is not going to [affect the construction projects in the country],” he added.

“Most of the time when the demand for the construction materials is higher… (the construction industry will) just pass it on to the buyers.”

Trade Undersecretary Ruth B. Castelo said on Nov. 28 that she is confident that the domestic construction materials industry can keep up with the demand from the big-ticket infrastructure projects.

The construction sector grew by 3.8% in the third quarter of the year, against 17.2% a year earlier, which the PSA said was due to a slowdown in private-sector projects. — Anna Gabriela A. Mogato

PHL defied experts’ advice in pursuing dengue program

AS SHE announced in January 2016 that the Philippines would immunize one million children with a new dengue vaccine, the nation’s then Health secretary Janette L. Garin boasted it was a world-first and a tribute to her country’s “expertise” in research.

At the time, it seemed the Philippines could be on the cusp of a breakthrough to combat a potentially lethal tropical virus that had been endemic in large parts of the Southeast Asian nation for decades.

Almost two years later, the program lies in tatters and has been suspended after Sanofi Pasteur, a division of French drug firm Sanofi, said at the end of last month the vaccine itself may in some cases increase the risk of severe dengue in recipients not previously infected by the virus.

A criminal probe is under way into how a danger to public health came about and two congressional inquiries have been convened in the Philippines including Monday’s hearing.

CAUTION
Documents reviewed by Reuters that have not been disclosed until now, as well as interviews with local experts, show that key recommendations made by a Philippines Department of Health (DoH) advisory body of doctors and pharmacologists were not heeded before the program was rolled out to 830,000 children.

After Ms. Garin’s announcement, the Formulary Executive Council (FEC) of advisers urged caution over the vaccine because it said its safety and cost-effectiveness had not been established.

After twice meeting in January, the panel approved the state’s purchase of the vaccine on Feb. 1, 2016, but recommended stringent conditions, minutes of all three meetings show.

“Based on the available scientific evidence presented to the Council, there is still a need to establish long-term safety, effectiveness and cost-effectiveness,” the FEC told Ms. Garin in a letter on that day. The letter was reviewed by Reuters.

The FEC said Dengvaxia should be introduced through small-scale pilot tests and phased implementation rather than across three regions in the country at the same time, and only after a detailed “baseline” study of the prevalence and strains of dengue in the targeted area, the FEC letter and minutes of the meetings said.

The experts also recommended that Dengvaxia be bought in small batches so the price could be negotiated down. An economic evaluation report commissioned by Ms. Garin’s own department had found the proposed cost of P1,000 ($21.29) per dose was “not cost-effective” from a public payer perspective, the minutes from the meetings reveal.

For reasons that Reuters was unable to determine, these recommendations were ignored.

‘VERY ANGRY’
The DoH purchased 3 million doses of Dengvaxia in one lot, enough for the required three vaccinations for each child in the proposed immunization program and paid P1,000 per dose, a copy of the purchase order reviewed by Reuters showed.

It did conduct a “limited baseline study” in late February and March 2016, but the survey looked at “common illnesses” rather than the prevalence of dengue, according to guidelines issued by Ms. Garin’s office at the time and reviewed by Reuters.

Ms. Garin, who was part of the government of former president Benigno S.C. Aquino and replaced when President Rodrigo R. Duterte took power in June, 2016, did not respond to requests for comment on why she ignored the local experts’ recommendations.

Ms. Garin has defended her conduct and a program that she said was “implemented in accordance with WHO (World Health Organization) guidance and recommendations.”

“I understand the concern,” she told TV station ABS-CBN on Friday. “Even us, we’re also very angry when we learned about Sanofi’s announcement about severe dengue. I’m also a mother. My child was also vaccinated. I was also vaccinated.”

DoH spokesman Lyndon Lee Suy also did not respond to text messages or questions e-mailed to him.

Sanofi Philippines declined comment on the Philippine government decision. However, Dr. Su-Peing Ng, Global Medical Head of Sanofi Pasteur, told Reuters: “We communicated all known benefits and risks of the vaccine to the Philippines government.”

Rontgene Solante, former president of the Philippines Society for Microbiology and Infectious Diseases, said health officials were motivated to end the debilitating impact of dengue on the Philippines, where there are about 200,000 reported cases each year and many more unreported.

Over 1,000 people died of the disease in the country last year.

Two months after the FEC wrote to the health secretary, the DoH began immunizing one million students around the age of 10 in all three target areas in April 2016, in accordance with its original plan but at odds with the FEC’s recommendations to conduct a slow rollout of the vaccine.

“The usual process for the DoH that has protected our children for so many decades was not followed. That’s a fact,” said Susan Mercado, a former Philippines health department undersecretary and former senior official at the WHO.

WHO said in April 2016 that the Philippines’ campaign appeared to meet its criteria for using Dengvaxia because the targeted regions had high levels of dengue exposure; the vaccine would be provided to children 9 years and older; and they would each receive three doses.

WHO was not involved in the deliberations of the FEC, according to the minutes. It said in a statement last week that a position paper on the dengue vaccine it published in July 2016 did not include a recommendation for countries to introduce it.

Now, after Sanofi’s warnings, WHO has said it agrees with the government’s decision to suspend the immunization program.

‘THOROUGH ANALYSIS’
The current secretary of health in the Duterte administration, Francisco T. Duque III, said he would carry out a “thorough analysis” of the FEC’s recommendations and the program before passing judgment. He said the Council’s recommendations were not legally enforceable.

“At the end of the day, the final decision is made by (the)secretary of health,” he told Reuters. “But because of the expertise that the members of the FEC have, it is something that you don’t want to ignore.”

Underpinning the concerns in 2016 about Dengvaxia, since confirmed by Sanofi, were fears that the vaccine would act like a primary infection for those who had never had dengue.

If they were bitten by a mosquito carrying the virus after the vaccination, it could be akin to getting dengue a second time, which often leads to far more severe symptoms and potentially death if bad cases are not treated quickly.

The concerns were first raised by noted US-based tropical disease expert, Scott Halstead, who urged both Sanofi and the WHO to proceed with caution.

In the Philippines, Antonio Dans, an epidemiologist from the University of the Philippines, led a delegation of physicians to the DoH in March 2016 where, citing Mr. Halstead’s research, they pressed for the campaign to be aborted.

“The data was not definitive but it was clear there were uncertainties and risks. Why not wait for the complete studies to be finished before endangering so many children?” Mr. Dans told Reuters.

In a Senate hearing late last year, Ms. Garin said she was aware of Mr. Halstead’s assessment but dismissed it. “This is a theory … it has not been proven,” she said at the time.

Two sources involved in the program said no antibody testing was undertaken, as recommended by the FEC.

Antibody testing, while not 100% accurate, indicates whether an individual has had dengue before.

Mr. Duque told Reuters he was concerned that the program was paid from an “off-budget” allocation, meaning it bypassed congressional scrutiny. Reuters was unable to confirm this.

Until now, one child out of the 830,000 vaccinated, a girl who was hospitalized with severe dengue, has been linked definitively by the DoH to the campaign. But the DoH says it still does not have complete data on those who fell ill after taking Dengvaxia. — Reuters

Senate OK’s service charge bill on 3rd and final reading

THE SENATE approved today on third and final reading a bill which would allow restaurant and hotel employees 100% access to service charges collected from customers.

In a statement by the chamber on Monday, Dec. 11, Senator Joel Villanueva, principal author and sponsor of Senate Bill No. 1299, said restaurant and hotel workers were given only 85% of the total tips collected from customers while management retained the remaining 15%. He said the sharing distribution had not changed since it became law in 1975.

“On December 1975, then President (Ferdinand) Marcos institutionalized service charge into law under Section 14 or Presidential Degree 850. The collection of service charge was optional but any amount collected shall be distributed 85% and 15% in favor of employees,” Mr. Villanueva, chairman of the Senate committee on labor, employment and human resources development, said.

Once the proposed measure is enacted into law, restaurant and hotel workers, whether regular, contractual, or agency-hired, would be entitled to a 100% service charge as long as they would directly deliver the service to their customers, Mr. Villanueva said.

“The bill does not make the collection of service charge mandatory to avoid interference with the right (of) management to exercise discretion in the operation of their business. The proposed 100% service charge for our workers would benefit both the workers and the employers,” the senator said in his sponsorship speech.

At present, he explained, management gets 15% of the service charge proceeds to answer for losses or breakages. However, he said, if there were no losses or breakages, the 15% was the management’s prerogative for disposition or distribution among managerial employees.

In most cases, he said establishment owners thought the distribution of the service charge proceeds was a management prerogative. He cited a SparkUp survey, a multimedia platform of BusinessWorld, which showed that most of the staff did not receive their 85% tip.

Mr. Villanueva said the proposed measure seeks to “address the injustice brought upon our hardworking workers in the service industry who provide the actual service, but rarely get their proper share in collection.”

TransCo seeking partnership with ‘3rd player’ China Telecom

By Victor V. Saulon,
Sub-Editor

NATIONAL Transmission Corp. (TransCo) wants to be the partner of the Chinese company that was named by the Communications secretary as Beijing’s choice as the proposed third player in the local telecommunications industry.

“We can be the 60%,” Melvin A. Matibag, TransCo president and chief executive officer, told reporters during a media gathering at the Department of Energy head office on Monday.

TransCo, the owner of the country’s power transmission assets, has previously signified its intention to be part of the project.

“We want to push that TransCo be part of whatever project considering that the owner of the [transmission] facility is TransCo,” he said.

He added his move was also in support of President Rodrigo R. Duterte’s pronouncement to encourage a third telecommunications player in the industry, which is dominated by Smart Communications, Inc. and Globe Telecom, Inc.

During the weekend, Martin M. Andanar, who heads the Presidential Communications Operations Office, identified China Telecom Corp. Ltd. as the Chinese government’s choice to be the third player in the industry. Mr. Duterte has said that he would offer that slot to a Chinese company.

Mr. Matibag said the 40% could be taken on by China Telecoms, which he said has the expertise and the financial capability.

“They have the technical expertise in operating telecommunications and TransCo has the facilities to offer,” he said. “What I did is to make the available recommendations.”

But he said the talks were “beyond my pay grade,” thus China Telecoms might be talking to either the secretaries of the Energy or Finance departments, or the Office of the President itself.

He said TransCo may not hold the entire 60%. Philippine laws require a maximum of 40% stake for foreign entities in public utilities.

“Maybe not the entire 60%. We can still partner with a private entity that has a franchise already but what we can offer is the facilities, which will shorten the process,” he said.

He said based on TransCo’s projection, the company and its partner could become a telecommunications player “for Luzon in six months, for the entire country we can do it in one year.”

In October, TransCo said it had received expressions of interest from 10 mostly foreign entities that wish to partner with the state agency in its plan to become the third player in the country’s telecommunications sector.

In June, privately owned National Grid Corp. of the Philippines (NGCP) said it had been preparing to formalize an agreement with the government on the use of the power grid operator’s fiber optic network for the national broadband program.

NGCP said it had been chosen as a partner by the Department of Information and Communications Technology for the program, which it described as bringing the country’s average internet speed closer to those of “first-world countries.”

The company said its fiber optic cables, which cover 6,154 kilometers or 160,779 fiber kilometers, will be the primary network of the program that aims to bring wi-fi connection all over the country.

TransCo is also looking at transmission assets to which the fiber optic cables are attached as its contribution to the partnership with the Chinese telecommunications company.

Petron vs F2 Logistics

By Michael Angelo S. Murillo
Senior Reporter

THE Philippine Superliga (PSL) Grand Prix hits the championship round beginning today with the best-of-three finals series between Petron Blaze Spikers and F2 Logistics Cargo Movers kicking off.

After topping the elimination round with identical 7-1 records, both Petron and F2 Logistics held their own in the quarterfinals and semifinals to set up the finals pairing which begins battle at the Filoil Flying V Centre at 7 p.m.

The Blaze Spikers are making their fourth consecutive finals appearance in the season-ending conference while the Cargo Movers are looking for their first Grand Prix crown since joining the league last year.

Last held the Grand Prix title in 2014, Petron coach Shaq delos Santos said they are “hungry” to regain the championship.

“We know that for the past two years, we’re always being beaten by Foton for the title. That’s why winning the title this time means a lot to us. We are very hungry and we will do everything to win it. It’s no longer a question of roster, imports or any other factors; it’s now a question of heart and desire,” said Mr. Delos Santos, who is counting on the core of Mika Reyes, Rhea Dimaculangan, Ces Molina, Aiza Maizo-Pontillas and imports Hillary Hurley and Lindsay Stalzer.

On the part of F2 Logistics, it hopes to make its Grand Prix run one to remember with the team on top in the end.

The Cargo Movers got the better of the Blaze Spikers in their lone encounter so far in the Grand Prix, winning in four sets, 25-21, 20-25, 25-23 and 25-19.

In said game held at the University of St. La Salle Gym in Bacolod City, F2 Logistics was powered by imports Maria Jose Perez and Kennedy Bryan.

Cargo Movers coach Ramil de Jesus said the Grand Prix is one tournament they want to win after claiming the All-Filipino tournament in 2016.

“We want to experience how it feels winning the Grand Prix,” said Mr. De Jesus, who will also rely on the play of local players Kim Fajardo, Majoy Baron, Aby Maraño and Dawn Macandili to see their championship quest through.

Prior to the Game One of the finals, tangling for third place are the Foton Tornadoes and the Cocolife Asset Managers.

PSL matches are shown live over ESPN5.

Tijam questions Sereno’s dilly-dallying on transfer request for Maute cases

ASSOCIATE JUSTICE Noel G. Tijam yesterday denied that he was the Supreme Court member-in-charge of the petition involving the transfer of the Maute cases outside Mindanao, but he did say that Chief Justice Maria Lourdes P.A. Sereno failed to act promptly on the request.

Reading from his sworn affidavit, Mr. Tijam laid out the timeline of the events concerning Administrative Matter (AM) No. 17-06-02-SC, or the letter of Justice secretary Vitaliano N. Aguirre II, dated May 29, which sought the creation of a special court outside Mindanao to hear and decide on the cases related to the Maute Group, which led the siege on Marawi City on May 23.

Mr. Tijam, testifying during the resumption of the House committee on justice’s hearings on the impeachment complaint against Ms. Sereno, pointed out that the request was not acted upon until two months later, in Aug. 8, after the Office of the Court Administration issued two memoranda recommending the designation of Branches 70 and 266 of the Taguig City Regional Trial Court and Branches 74 and 116 of the Metropolitan Trial Court of Taguig City as special courts.

Mr. Tijam said he acted more promptly than the chief justice by circulating a memorandum, dated June 24, which expresses his vote to grant the May 29 request of Mr. Aguirre.

“The Court en banc met on the same day for an executive session and for the continuation of oral arguments, in connection with the petitions assailing the proclamation of martial law in Mindanao following the Marawi siege. The venue of criminal cases arising from the siege was not discussed,” Mr. Tijam said.

Similarly, he added, the benefits for the spouses of late judges and justices could have been acted upon faster if the issue was brought to the Supreme Court en banc.

“The en banc can immediately make a decision provided [an issue] is immediately brought to [the members’] attention. We cherish the importance of urgency of important matters,” Mr. Tijam said.

He noted that the Supreme Court penalizes members of the legal profession for inordinate delay so the “members of the court should hold ourselves on a higher standard of efficiency and integrity.”

Mr. Tijam also reiterated his call for the chief justice to attend the House proceedings in order to answer why she “dilly-dallied” on the request of the justice secretary and the survivorship benefits.

“I am of the thought that probably, the reason why the chief justice did not act on it was because she was not satisfied that the danger, the risk and the harm that may befall the non-transfer of the Maute prisoners to Metro Manila would be that large, would be that extensive.”

“But the point is, regardless of the sentiments, feelings of the chief justice, she should have taken the initiative of bringing it to the attention of the en banc because after all, it is the en banc that will decide for the court,” he said.

In his impeachment complaint, lawyer Lorenzo G. Gadon accused Ms. Sereno of intentionally delaying the release of a resolution granting the Department of Justice’s May 29 letter-request.

“Sereno has been delaying the issuance and release of the resolution because she failed to get a majority vote on her desire to keep the Maute and similar cases in Cagayan de Oro City, to the detriment of the service,” the complaint stated.

“Were the conditions existing on May 29, when Secretary Aguirre made the request for the transfer of the venue the same as Aug. 8, when the en banc finally relented to the request? That’s the question the Chief Justice should answer,” Mr. Tijam said.

UP TENURE
Meanwhile, the University of the Philippines and the Office of the Ombudsman have responded to the directive of the House committee on justice to shed light on why some of the Statements of Assets and Liabilities and Net Worth (SALN) of Ms. Sereno were missing.

The missing SALNs were supposedly filed by Ms. Sereno when she was UP professor in the years before she was appointed in 2010 as top magistrate by then President Benigno S.C. Aquino III.

During yesterday’s committee hearing, a letter from the UP Human Resources Development Office (HRDO) was read, stating that the office did not find the chief magistrate’s records in its file for the years 2000 to 2001 and 2003 to 2006.

According to the UP HRDO, Ms. Sereno was on official leave during these years until she resigned in 2006 as evidenced by her letter to then university chancellor Emerlinda R. Roman.

In previous hearings, the office’s Angela Escoto said her office had only retrieved the 2002 SALN of Ms. Sereno.

The UP official also said there were also no records in Ms. Sereno’s personal files in her office of “permission to engage in the limited practice of profession.”

“Based on the 201 file of Chief Justice Sereno, no record appears of the permission to engage in limited practice of profession,” she said.

UP faculty members were required to submit a form asking for permission to engage in private practice.

Mr. Gadon is accusing Ms. Sereno of failing to declare her earnings worth $745,000 or P37 million in her SALN when she served as a government counsel in the case with the Philippine International Air Terminals Co., Inc. before an international court in 2003 when she was a university professor.

Meanwhile, the Ombudsman’s office, through a letter, on Monday also submitted to the House panel certified true copies of Ms. Sereno’s 1998 SALN.

The Judicial and Bar Council (JBC), which was also subpoenaed by the House panel to submit copies of Ms. Sereno’s SALNs, has yet to comply.

JBC executive officer Annaliza Ty-Capacite said a resolution by the council in relation to the House directive was still being processed and finalized.

Applicants for the chief justice and justice positions are required to submit their SALNs to the JBC. — Minde Nyl R. dela Cruz with interaksyon.com

Boston turns tables on Detroit, Oladipo shines

LOS ANGELES — The Boston Celtics notched a satisfying win in Detroit on Sunday, handing the slumping Pistons their sixth straight NBA defeat just two weeks after losing to them in Boston.

Al Horford led the way with 18 points, nine rebounds and six assists. Kyrie Irving added 16 points and Marcus Smart and Jaylen Brown scored 12 apiece for the Celtics, who held the Pistons to season lows in points scored and field goal percentage in the 91-81 triumph.

“I wouldn’t call it payback,” star point guard Irving said. “It’s just always good when you can respond the way you want to, especially on their home floor, just like they did on our home floor.”

It was also good to get a win, Irving said, after a tough three-point loss to the San Antonio Spurs on Friday night.

“We were locked in,” said Aron Baynes, who pulled down 13 rebounds for Boston and was primarily responsible for holding Detroit center Andre Drummond to a season-low six points.

The Eastern Conference-leading Celtics did have some offensive struggles of their own. They were up by 16 in the fourth quarter when they hit a dry spell and the Pistons closed to within four.

But Boston scored on four of their next six possessions to rebuild their lead.

“Our offense wasn’t as crisp tonight as we wanted it to be but defensively we had a game plan and we stuck with it,” Baynes said.

OLADIPO ON FIRE
In Indianapolis, Victor Oladipo poured in a career-high 47 points to lead the Pacers to a 126-116 overtime triumph over the Denver Nuggets.

His electrifying performance had chants of “M-V-P” ringing around Bankers Life Fieldhouse, but Oladipo isn’t the kind of player to let the admiration go to his head.

“I’ve got a lot of work to do,” he said. “I’m trying to be great. There’s no in between, and I can’t settle for anything less.”

The Pacers scored the last eight points in regulation to tie it. Oladipo’s driving layup sliced the deficit to 114-112 with 55 seconds remaining.

After an Oladipo miss, Thaddeus made the put-back basket to tie it at 114-114 with 5.5 seconds left. Denver’s Will Barton had a chance to win it but missed at the buzzer.

The Pacers dominated overtime 12-2 — Oladipo delivering six points in the extra period.

“The biggest thing in the overtime is we got stops,” Oladipo said after the Pacers won their fourth straight. “That’s what won the game.”

RAPTORS ROLLING
The Toronto Raptors posted their sixth straight win with a 102-87 victory over the Kings in Sacramento.

The Raptors now boast the third-best record in the East, but coach Dwane Casey saw plenty of room for improvement after his team squandered an early 15-point lead before taking control for good in the third period.

“Consistency is something we’re fighting for,” Casey said. “We’re trying to scratch at it.”

Maybe so, but the Raptors are averaging 117 points per game during their winning streak, and have scored more than 100 in 12 straight.

“I don’t think our coach is ever happy,” guard Kyle Lowry quipped. “But the thing about our coach is that he’s always hard on us. He wants us to be a championship-caliber team.”

In New Orleans, the Pelicans used an 18-4 fourth-quarter scoring run to rally past the Philadelphia 76ers, 131-124.

The Pelicans had led by 11 at halftime, but the 76ers roared back with a 40-point third quarter and the visitors were up 103-96 with less than 10 minutes to play.

Jrue Holiday made three three-pointers in the Pelicans’ decisive run, finishing with 34 points.

The Minnesota Timberwolves beat the Dallas Mavericks for the third time this season, hanging on for a 97-92 win in Minneapolis.

Center Karl-Anthony Towns scored 28 points and pulled down 12 rebounds for the Timberwolves, who consolidated their fourth place in the West. — AFP