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Philippines seeks ‘terrorist’ tag for 600 alleged communist guerrillas

A U.N. special rapporteur, a former Philippine lawmaker and four former Catholic priests are among more than 600 alleged communist guerrillas the Philippines wants declared “terrorists”, according to a government petition filed in court.

The justice ministry last month said it wanted a Manila court to declare the Communist Party of the Philippines (CPP) and its armed wing, the New People’s Army (NPA), “terrorist” bodies, but made no mention of individuals it would also target.

The petition, a copy of which was seen by Reuters, suggests President Rodrigo Duterte is following through on his threats to destroy a movement he now regards as duplicitous.

Since taking office in July 2016, Duterte freed some communist leaders and put leftists in his cabinet, to show his commitment to finding a permanent solution to a five-decade conflict.

But he abandoned the process in November, after what he called repeated attacks by the NPA during talks.

The petition said the rebels were “using acts of terror” to sow fear and panic to overthrow the government.

Duterte has been regularly venting his fury at the Maoists and considers them as much of a security threat as the domestic Islamist militant groups that have pledged allegiance to Islamic State.

By declaring groups and individuals terrorists, the government would be able to monitor them more closely, track finances and curb access to resources, among other measures.

But Carlos Conde, Philippines researcher with the New York-based Human Rights Watch, said the petition was “a virtual hit list”.

“There’s a long history in the Philippines of the state security forces and pro-government militias assassinating people labeled as NPA members or supporters,” he said in a statement.

‘BASELESS, MALICIOUS’

The government petition included Victoria Tauli-Corpuz, appointed in 2014 as U.N. special rapporteur on the rights of indigenous peoples, who was listed as a senior member of the Maoist rebel group.

Tauli-Corpuz denounced the government, calling the complaint “baseless, malicious and irresponsible”.

U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein defended the independence, impartiality and expertise of special rapporteurs in the face of smear and hate campaigns, some involving incitement to violence.

“Instead of attacking the messenger, states and other stakeholders should engage and address the human rights concerns raised by mandate-holders,” he said in Geneva.

Two other U.N. special rapporteurs, Michel Forst and Catalina Devandas Aguilar, expressed “grave concern” about Tauli-Corpuz being on the list, and said she was being punished by Duterte for speaking against some of his policies.

Also on the list were four former Catholic priests and former congressman Satur Ocampo, who told Reuters he would challenge any “terrorist” label.

The petition included 18 top leaders of the CPP, including founder Jose Maria Sison and peace negotiator Luis Jalandoni, both based in the Netherlands for three decades.

There was no basis for the charge of terrorism, said Sison, who was a mentor of Duterte when he was at university, although the two are now bitter rivals.

“Duterte is engaged in a wild anti-communist witchhunt under the guise of anti-terrorism,” he said. “Duterte is truly the No. 1 terrorist in the Philippines.”

Duterte’s spokesman did not respond to requests for comment.

More than 40,000 people have been killed in the Maoist rebellion. Negotiations to end the revolt have been on and off since being brokered by Norway in 1986. — Reuters

UN human rights chief says Duterte needs psychiatric evaluation

GENEVA — Philippines President Rodrigo Duterte’s slurs against U.N. human rights activists suggest he needs to see a psychiatrist, U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein told a news conference on Friday.

“These attacks cannot go unanswered, the U.N. Human Rights Council must take a position,” Zeid said, after Duterte’s government sought to get a U.N. investigator, a former Philippine lawmaker and four former Catholic priests declared as “terrorists”.

“He needs to submit himself to some sort of psychiatric examination. This kind of comment is unacceptable, unacceptable,” Zeid said. — Reuters

NBI rescues five minors from online child trafficking, nabs suspect

The National Bureau of Investigation (NBI) said in a press conference it cooperated with several local and international agencies in rescuing five minors and in arresting a man involved in child pornography, online human trafficking, and sexual abuse.

In what NBI Director Dante A. Gierran described as an “unprecedented” operation, a joint task force of the NBI Anti-Human Trafficking Division (NBI AHTRAD) and the Philippine National Police Women and Child Protection Center (PNP WCPC) were aided by elements of several international agencies in arresting suspected online child trafficker Ancelmo Ico, Jr. last Thursday, March 9, in an entrapment operation in Malolos, Bulacan.

Five minors aged at least seven were rescued and equipment used in Mr. Ico’s illegal activities such as laptops, cellphones, and tablets were also seized in the operation.

According to a statement released by the NBI, Mr. Ico, who also went by the alias Jaja Jhoncel, was “actively and aggressively involved in producing, manufacturing, offering, selling, advertising, promoting, communicating, and distributing explicit sexual activities of children or child pornography and offering [minors] for sexual exploitation.” — Dane Angelo M. Enerio

Imports outpaced exports in January

Trade deficit continued to widen in January with imports growing in double-digits while exports growth was flat.

Preliminary data released yesterday by the Philippine Statistics Authority (PSA) showed the January trade deficit reaching $3.317 billion, expanding from $2.469 billion posted in the same period last year.

Merchandise export receipts during the month was $5.219 billion, 0.5% more than the $5.191 billion recorded in January 2017.

Meanwhile, the country’s import bill continued to grow at double-digits at 11.4% to $8.536 billion in January from last year’s $7.660 billion.

These brought total trade to $13.754 billion, 7% higher compared to $12.851 billion on a year-on-year basis.

Stocks end week in the red

Stocks closed the week in the red, as the lack of catalysts failed to sustain the market’s early day gains.

The Philippine Stock Exchange index edged lower by 0.11% or 9.34 points to finish at 8,372.51 on Friday, while the all-shares index also dropped 0.25% or 12.69 points to 5,052.79.

“Philippine markets still finished in the red as the broader market lacked a stronger catalyst today. Other news kept the market flat to down,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

Two sectoral indices managed to post gains back home, as property climbed 0.72% or 26.84 points to 3,774.07, while industrial added 0.27% or 30.50 points to 11,473.02.

Services led the day’s losers, giving up 0.39% or 6.92 points to close at 1,755.36. Financials followed with a decrease of 0.26% or 5.65 points to 2,180.75.Holding firms lost 0.21% or 17.46 points to 8,376.84, while mining and oil was down 0.14% or 16.74 points to 11,521.45.

A total of 2.57 issues switched hands, valued at P6.58 billion, up from Thursday’s turnover of P5.83 billion. Even as the main index declined, advancers still outpaced decliners, 125 to 82, while 54 issues were unchanged.

Net foreign outflows prevailed for the day, as foreign investors sold down P573.73 million worth of funds, lower than the net sales of P715.67 million on Thursday.

Aboitiz Equity Ventures, Inc., which reported its net income fell by 4% to P21.6 billion, saw its shares advance 1.43% to P74.30 each. Metropolitan Bank and Trust Co was the most actively traded stock of the day, adding 0.05% to P96 each. — Arra B. Francia

QC government moves to streamline business registration

The local government of Quezon City has launched a program that would facilitate the registration of new businesses, in a bid to further the ease of doing business in the city.

The program includes a one-stop shop that seeks to cut the number of steps new businesses would have to go through to secure business licenses and construction permits.

New businesses currently have to undergo 16 steps for their registration which could take around 28 days. The one-stop shop aims to cut this process by half. For securing construction permits, the one-stop shop will reduce the number of steps from 11 to four. — Arra B. Francia

NLEX Corp files for P25-billion shelf registration

A tollway unit of Metro Pacific Investments Corp. (MPIC) plans to raise P25 billion through the issuance of fixed rate bonds, with P6 billion slated to be offered for its initial tranche.

In a disclosure to the stock exchange on Friday, March 9, MPIC said its indirect subsidiary NLEX Corp. has filed a registration statement with the Securities and Exchange Commission for the issuance.

Local debt watcher Philippine Ratings Services Corp. (PhilRatings) gave the bonds a PRS Aaa rating, which is the highest issuer rating in the company’s credit rating scale. This indicates that the company has the capacity to meet its financial obligations. — Arra B. Francia

AEV’s 2017 net income falls 4%

Aboitiz Equity Ventures, Inc. (AEV) saw its earnings dip in 2017, after incurring higher losses from the operations and refinancing of costs for its power business.

In a disclosure to the stock exchange on Friday, March 9, AEV said its net income last year stood at P21.6 billion, 4% lower than the P22.5 billion it generated in 2016. The company attributed the decrease to non-recurring losses for the period, which swelled to P2.3 billion against 2016’s P347 million.

Excluding these one-off losses, AEV’s earnings would have increased by 5% to P23.9 billion.

“While we faced challenges that tested the resilience of our portfolio, these results still showed the underlying strength of our core operating businesses, prompting our optimism on the long-term fundamentals of our businesses,” AEV President and Chief Executive Officer Erramon I. Aboitiz said in a statement. — Arra B. Francia

DMCI posts 16% growth in net income

Earnings of DMCI Holdings, Inc. climbed last year buoyed by the double-digit growth of the coal energy, real estate and construction segments as well as the recovery of the nickel mining business.

In a disclosure to the stock exchange on Friday, March 9, the Consunji-led firm reported a 16% growth in net income attributable to shareholders to P14.8 billion last year from P12.7 billion in 2016 following the restatement of earnings from the housing business. — Krista Angela M. Montealegre

An old favorite gets a face-lift

By Michelle Anne P. Soliman

When children are busy with school and the parents are working all the time, quality time with the family is difficult to carve out. So it is good to know that a fun weekend getaway — Island Cove Hotel and Leisure Park — is just a 20-minute ride from Manila to Cavite via NAIAX.

UPDATES AND UPGRADES
The resort — then known for its service and facilities and tranquil environment — first opened in 1976 when it was called Puro ng Burrungoy. At some point it became known as Covelandia. In 1998, it was renamed Island Cove Hotel and Leisure Park. In November 2017, it was accredited as a four-star resort by the Department of Tourism.

“My earliest memory — it was called Covelandia. My father had opened it in 1976. I spent my sixth birthday here. But it didn’t look anything like this. It was very different,” recalled Island Cove Hotel and Leisure Park’s managing director Gilbert C. Remulla.

In celebration of its 20th anniversary as the Island Cove Hotel and Leisure Park, the resort has added and updated attractions and lined up promos for this summer vacation.

“We try to be relevant and attack the industry by finding a niche and concentrating on that niche. Ten years ago, we decided that we are going to be a family-friendly destination. We wanted to cater to families with young kids,” Mr. Remulla said of how to keep the business thriving. “Leisure is a diverse business… What is leisure to one might not be leisure to the other.”

PETS ARE WELCOME TOO.
In the 1970s, guests had to travel by boat to cross the main road and reach the island resort. Nowadays, it is accessible via a bridge which leads vehicles directly to the entrance.

To keep up with the times, the rooms have USB charging ports, Wi-Fi internet connectivity, flat screen TVs, and modern bathrooms.

And as pets are considered family members these days, they too are welcome at the resort — for P1,500 per night, per pet, said Executive Assistant Manager Malu Samaco. Rooms may be provided with sleeping baskets for the pets.

The resort has a hotel with a range of room classes, cabanas, and dormitories.

Beyond the rooms, the resort offers a multitude of activities for both children and adults including go-kart rides (P100 for every 15 minutes) and mermaid swimming lessons.

A major attraction is the Oceania Swim & Splash Park which features a 3,000-square meter lagoon-shaped pool with four giant fiberglass slides and giant inflatable slides.

Children can have a bit of wet fun in The King Crawler, a Dutch-designed vertical urban play structure, installed with colorful rubber flooring (EPDM) to minimize the possibility of accidents.

Another major attraction is the 3,200-square meter Island Aviary where guests can interact with more than just birds. Visitors are free to feed bananas to rabbits — the ostriches also enjoy a banana or two. Braver guests can hold the 16-foot-long, 200-lb Burmese python which, according to Mr. Remulla, was donated to the resort by its previous owner when it was 10-foot long. Checked-in guests can enter the aviary free of charge. Walk-ins pay P50 per person.

A vacation is not a vacation without sumptuous meals. The Fishing Village — a group of huts built on stilts overlooking Manila Bay — has expanded its menu with three Kamayan sets that include seafood, pork, and beef dishes good for six to eight persons. Meanwhile, Sangley Point’s Western cuisine menu has been spiced up with new dishes as well, with a selection of burgers, sandwiches, and pasta. The resort’s two other restaurants are iCafé and Bayside KTV.

Despite its various improvements, Island Cove has maintained its tranquil feel.

“When it’s yours, [you] really have to put the value in taking care of it,” Mr. Remulla said.

For more information, visit www.islandcovephil.com or call (02) 810-7878, (046) 434-0210. On social media, follow @IslandCoveHotelandLeisurePark on Facebook, and @islandcovephil on Instagram and Twitter.

Growth of banks’ real estate loans cools

By Melissa Luz T. Lopez
Senior Reporter

BANKS handed out more loans for real estate in 2017, although growth eased from the preceding year as the Bangko Sentral ng Pilipinas (BSP) tightened its watch on the sector.

Philippine banks had P2.078 trillion in total real estate exposure as of end-December, 14.7% more than the P1.812 trillion in 2016, according to latest data the central bank released on Thursday. Growth eased from the 19.5% pace recorded in 2016.

Last year’s increase was driven by a 16.3% hike in property loans handed out by universal, commercial and thrift banks that reached P1.801 trillion, from P1.549 trillion a year prior.

Lending for commercial property accounted for two-thirds of the total at P1.193 trillion, up by 17% from P1.019 trillion extended in 2016.

On the other hand, home loans grew 14.8% to reach P608.142 billion, versus P529.904 billion in 2016.

Loans accounted for 20.6% of the banks’ total real estate portfolio, lower than the 20.77% share posted in 2016.

Despite the pickup in lending, bad debts grew by a modest 2.2% to P29.46 billion, accounting for just 1.64% of total loans.

The BSP requires banks to keep their real estate exposure to a maximum of 20% of their loan books, as part of risk management.

The central bank has been closely monitoring the property market since the 1997 and the 2008 global economic crises.

In 2017, the BSP issued tighter rules for real estate exposures as it sought to clip the double-digit credit growth in this sector. Circular 976, issued in October last year, required the reporting of more specific data on real estate loans covering mid- and high-end housing units, as well as socialized and low-cost housing. Data on commercial real estate loans in terms of specific structures being financed such as residential units, office buildings, malls and factories are also to be included in regular reports required by the central bank.

Meanwhile, investments in property-related securities and other assets rose 5.3% to P276.968 billion from 2016’s P263.107 billion.

Economists and property developers have sought to allay concerns about an asset bubble in the Philippines, noting that actual demand for residential and commercial space has been driving prices up rather than speculation.

A bubble forms due to perceived rising demand in housing units that drive developers to build more units, and is said to “burst” as demand suddenly stagnates and leads to an abrupt drop in property prices that, in turn, could jolt the health of exposed banks.

Housing prices dropped by 4.6% between April and June, according to results of the central bank’s latest residential real estate price index.

Inflation still within bounds despite recent spike — DoF

INFLATION has so far settled close to the price impact expected by the Department of Finance (DoF) for tax reform, noting the pace of overall price increases remains manageable and should not raise concerns for now.

“A moderate increase in the inflation rate is expected and not alarming in a fast-growing economy,” the DoF said in an analysis prepared by Undersecretary Karl Kendrick T. Chua and e-mailed to reporters yesterday.

February inflation picked up to 3.9% from 3.4% in January under the rebased index using 2012 prices, according to the Philippine Statistics Authority. It was the fastest pace in over three years.

Month-on-month increments of annual inflation have so far stayed within bounds since Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law, kicked in last January: by 0.5 of a percentage point in January and in February, against an expected 0.7-of-a-point impact. While it slashed personal income tax rates in order to give households more money to spend, TRAIN introduced additional levies on fuel, cars, coal, sugar-sweetened drinks and a host of other items.

While respondents in a monthly survey IHS Markit conducts for Nikkei, Inc. had blamed TRAIN’s inflationary impact on production inputs for a marked February slowdown in improvement of Philippine factory activity, Mr. Chua said it may still be premature to put all the inflation blame on the first of up to five planned tax reform packages. “The higher month-on-month inflation might suggest some profiteering, which we have already observed in January 2018,” he said.

The Bangko Sentral ng Pilipinas (BSP) has said that February’s higher inflation rate reflected the “full pass-through” cost of the additional taxes under the new law.

Broken down, the DoF expects prices of non-alcoholic drinks to rise by 15% given the new excise taxes on sugar-sweetened beverages.

Higher duties on petroleum products is also expected to drive up the cost of electricity, gas and other fuels by around 9.2%.

Other commodity groups affected by the TRAIN law are tobacco (eight percent increase), private transport (seven percent), and alcoholic drinks (four percent).

OTHER FACTORS TO BLAME
“TRAIN has begun to impact inflation as expected, though other factors are the bigger contributors to higher inflation,” the DoF added, as it pointed out that rising global crude prices and a weaker peso aggravated price movements.

“Private vehicle owners paid 14.5% more in fuel and other operating cost, of which around half is attributable to higher excise tax while the other half is attributable to higher crude oil price, as the Dubai crude price grew by 15.8% while the peso depreciated by 3.6%.”

Mr. Chua also noted that February inflation went up due to higher prices of food, particularly corn and fish which posted double-digit increases.

BSP Governor Nestor A. Espenilla, Jr. has said that monetary authorities expect prices to keep climbing this year, but will unlikely go beyond five percent using the 2006 base year.

The central bank sees inflation averaging 4.3% for 2018 which will overshoot the 2-4% target band.

Still, the BSP maintains that the TRAIN’s impact will be “temporary” as it expects inflation to return to 3.5% in 2019.

PREPARED
“The MB (Monetary Board) stands ready to take appropriate measures as necessary to ensure that the monetary policy stance continues to support price and financial stability,” according to minutes of the central bank’s Feb. 8 meeting during which policy was kept steady.

The policy-setting body opted to keep borrowing rates unchanged at 2.5-3.5% last month, even as inflation rose to a three-year-high at four percent in January. A week later, it announced an operational cut in bank reserves which took effect March 2.

“[T]he MB saw that inflation expectations continue to be anchored within the inflation target band over the policy horizon,” the central bank said.

“The BSP is watchful against any sign of second-round effects and inflation becoming broader based.”

BSP Governor Nestor A. Espenilla, Jr. has said these second-round effects include higher transport fares and minimum wages.

On the flipside, lower rice prices after the planned replacement of import quotas with tariffs is expected to offset higher prices of other goods, the central bank said.

While prices are trending higher, the central bank said latest forecasts showed that inflation will eventually “moderate” and settle within the 2-4% target range in 2019.

“Whatever monetary policy action we do now, will more likely be felt in 2019 and beyond rather than 2018. That’s why we don’t necessarily react to February 2018 but must look much further ahead and rely on forecasts,” the central bank chief had said on Tuesday of last month’s inflation spike.

Using 2012 as base year, inflation clocked 3.9% in February, faster than January’s 3.4%. — Melissa Luz T. Lopez

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