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Refund the only option for Sanofi — Pimentel

SENATE PRESIDENT Aquilino L. Pimentel III on Sunday urged the Department of Health (DoH) to demand a full refund of the P3.5-billion contract with French pharmaceutical company Sanofi Pasteur over the Dengvaxia vaccines, instead of asking for reimbursements from unused vaccines.

“All the vaccines were defective from the very beginning. Therefore, under our laws, we should demand the whole P3.5 billion we paid them and not just part of it,” he said in a statement.

Mr. Pimentel ‘s remarks came two days after the DoH demanded a P1.4-billion refund from Sanofi Pasteur over the government’s unused Dengvaxia vaccines.

The DoH had also asked the vaccine manufacturer to conduct serotesting “at no cost to the government” in order to determine the pre-vaccination status of over 830,000 children who received the Dengvaxia vaccine under the anti-dengue immunization program.

Acknowledging the Health department’s request, Sanofi Pasteur in a statement mentioned that its officials had requested for a meeting with Health Secretary Francisco T. Duque III regarding the matter.

Mr. Pimentel said the Civil Code of the Philippines indicated that a defective product could be replaced or refunded.

“Since there is no possible replacement for the vaccine, refund is the only option,” he said.

Mr. Pimentel added that even if Sanofi Pasteur reimburses the full amount, it does not release them from any liabilities that could arise from putting at risk the children vaccinated with Dengvaxia.

The DoH had suspended the immunization program following Sanofi Pasteur’s analysis that the Dengvaxia vaccine may pose health risks for those vaccinated without having dengue.

The Senate blue ribbon committee is investigating the previous administration’s alleged “hasty” procurement of Dengvaxia vaccines.

Amid reports of dengue deaths among children after being vaccinated with Dengvaxia, the DoH has yet to conclude that the deaths were related to the vaccine, pending an investigation by both the Public Attorney’s Office (PAO) and the Philippine General Hospital (PGH). — Camille A. Aguinaldo

Bataan Defenders of Bai Shipping join MPBL

THE Maharlika Pilipinas Basketball League (MPBL) has welcomed the Bataan Defenders as the league’s newest member, rising the participants to eight heading to the inaugural staging opener on Jan. 25.

Jointly bankrolled by Governor Albert Garcia and Bai Shipping, the Defenders’ entry in the fledgling amateur league was sealed recently during the contract signing held recently at the Dillingers/Prohibition Resto Bar in Greenbelt 3.

Commissioner Kenneth Duremdes and operations head Zaldy Realubit and Bai Shipping team officials led by Noel Ongkiko, Randy Medina and Lisandro Favila signed the contract that would make the Defenders the newest member of the league put up by Senator and boxing eight division world champion Manny Pacquiao.

Joining the MPBL, which serves as a sanctuary for people who want to make their mark in the local basketball scene and provide a new venue for ex-pros who still want to showcase their wares, fits the direction of Bai Shipping.

“Our purpose is to give opportunity for players who want to make it to the PBA. We want to expose the natives of Bataan and at the same time, our business is also based there, so this is the direction we’re undertaking,” said Mr. Ongkiko.

Mr. Ongkiko said investing in young players will be the team’s main thrust.

“We want to form a young, competitive team,” he added. “As much as possible, we want players aged between 18 to 24 years old.”

Mr. Ongkiko added that they are in the process of selecting the composition of the coaching staff while also looking for ideal players who can make up the squad.

Bai Shipping, according to Ongkiko, is the first shipping industry that will participate in a commercial basketball league, something which the company is proud of.

“Excellence, proficiency and safety. That’s been the philosophy of the company,” added team manager Favila. “That’s been our core values.”

The Bataan Defenders will join the cast composed of Muntinlupa Cagers, Bulacan Kuyas, Valenzuela Classics, Tanduay Batangas City Athletics, Caloocan Supremos, Yakimix Parañaque Green Beret, and Navotas Clutch.

Two more cities have also expressed interest in participating – Quezon City and Imus. — Rey Joble

LTFRB: ‘Tanggal Bulok, Tanggal Usok’ program to continue

THE LAND Transportation Franchising and Regulatory Board (LTFRB) said it will continue the implementation of the “Tanggal Bulok, Tanggal Usok” program despite an impending strike by transport group PISTON. The group’s leader George San Mateo yesterday announced they will hold on Jan. 24 protests in front of LTFRB offices nationwide to oppose the campaign conducted by various government agencies including the LTFRB, of apprehending public utility vehicles (PUVs) with violations such as smoke belching, defective parts, and others, as part of the government’s PUV Modernization Program. Board Member Aileen Lourdes A. Lizada said: “We will continue the Tanggal Usok Tanggal Bulok program of the government. This is long overdue, we need to do this unless, during the transition period, we will only put the proper PUVs on the road. We are slowly paving the way toward modernization.” PISTON and other affiliated transport groups last year held transport strikes against the PUV Modernization Program, leading to suspension of classes. Last month, Mr. San Mateo was arrested for violating the Public Service Act. — Patrizia Paola C. Marcelo

DoE nuclear policy expected to uphold ‘technology-neutral’ stance

AN office at the Energy department is set to submit this week the “national position” on nuclear energy, which generally supports previous pronouncements from the agency that it is technology-neutral when it comes to power generation.

“The nuclear energy program should continue,” said Energy Undersecretary Donato D. Marcos in an interview when asked about what the country’s stand will be.

Mr. Marcos is the designated chairman of the Department of Energy’s (DoE) Nuclear Energy Program Implementing Office (Nepio), which was set up specifically to come up with the country’s policy on nuclear energy.

He said the policy will be submitted this week to DoE Secretary Alfonso G. Cusi who will then come up with his recommendation to the President. He expects the recommendation to be ready by the next two to three weeks.

“It’s an objective recommendation,” Mr. Marcos said, but declining to disclose more about the proposed national position.

Separately, Mr. Cusi told reporters the country’s policy is “for nuclear, but not necessarily BNPP (Bataan Nuclear Power Plant),” referring to the mothballed project that started under the Marcos administration but discontinued by subsequent leaders over security and safety concerns.

“We are looking at a floating nuclear or a maritime nuclear,” Mr. Cusi said.

He said his recent trip to Russia involved looking at Russia’s capability in building a floating nuclear facility, which he said should be ready by 2018 or early 2019.

“Russia is already doing that, which we can bring in the country at around 60 megawatts,” he said.

He said the floating facility is targeted for deployment in island provinces.

“But I have to find a closure to this BNPP,” Mr. Cusi said, citing possible uses for the aging plant including as data center or as a tourist attraction.

He said the biggest hurdle to implementing a nuclear policy for the country remains “social acceptability.”

“Under the EPIRA law (Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001), it’s the private sector (that needs to take the lead). We’re just paving the way to make it happen,” Mr. Cusi said.

Mr. Marcos has said the national position is a product of consultations with experts, including those from Russia and Slovenia who made a preliminary assessment of the possibility and viability of rehabilitating the Bataan nuclear power plant.

Together with the Philippine Nuclear Research Institute and the National Power Corp., Mr. Marcos had brought representatives from Russia’s Rosatom State Atomic Energy Corp. and Slovenia’s Gen Enerjia to the “nuclear village” in Bagac, Bataan. Australia’s WorleyParsons Ltd. also joined the inspection of the facility.

He has said that the activity will define the scope of work for the pre-feasibilty study of the possible rehabilitation of the nuclear plant.

The DoE said the feasibility study to be conducted by Rosatom is free of charge as part of cooperation between the Philippines and Russia. — Victor V. Saulon

Biomass, river hydroelectric developers may get two years to qualify for FiT, Energy dep’t says

DEVELOPERS of stalled biomass and run-of-river power generation plants have around two years to finish their projects to qualify for the feed-in-tariff (FiT) that guarantees payment for their capacity output for 20 years.

Energy Secretary Alfonso G. Cusi said he was “positively looking” at extending the FiT for the two renewable energy technologies but only for those that were not able to finish their projects by end-2017.

“Definitely not three years,” he told reporters when asked whether the Department of Energy (DoE) was inclined to grant the recommendation of advisory body National Renewable Energy Board (NREB) to extend the deadline by three to five years.

“Around two years,” he added, without giving a definite number.

He said the yet-to-be signed directive from the DoE would clearly state the capacity in megawatts (MW) that still needs to be subscribed to qualify for the FiT.

“I want to make it very clear to everybody that this is the only number that we’re talking about,” he said.

Under the past administration, the DoE had set an installation target of 250 MW for both biomass and run-of-river hydroelectric plants to qualify for the FiT.

Based on DoE data as of November 2017, only five run-of-river hydro projects with a total capacity of 34.60 MW were awarded by the department “certificates of endorsement,” moving the projects forward to the Energy Regulatory Commission (ERC) for granting of FiT eligibility.

The subscribed capacity left a balance of 215.4 MW out of the 250-MW target. The DoE has no update on the five potential projects with a capacity of 82.7 MW that were expected to meet the December 2017 deadline.

The ERC had set a FiT rate of P5.90 per kilowatt-hour (kWh) for run-of-river hydro. All five projects qualified for that rate. The rate has been degressed in 2017 to P5.8705 per kWh as called for by the FiT rules.

For biomass development, 19 projects with a total capacity of 138.61 MW were awarded certificates of eligibility as of November, or a balance of 111.39 MW out of the 250-MW target. Only one more project with a capacity of 2.6 MW was expected to receive the endorsement certificate by end-2017.

Of the 19 projects endorsed to the ERC, 15 qualified for the P6.63 per kWh rate for the first round, while four qualified for the degressed rate of P6.5969 degressed rate for 2017.

“We want to be fair to all,” Mr. Cusi said, adding that the DoE would not want any project to remain hanging.

The FiT system offers a fixed rate for the electricity produced by developers of solar, wind, biomass, ocean energy and run-of-river hydro power plants to encourage investments in emerging renewable energy technologies.

The first projects to be completed under the prescribed power installation target were awarded the guaranteed FiT for 20 years.

Consumers who are supplied with power through the distribution or transmission network share in the cost of the FiT scheme in part through a uniform charge per kilowatt-hour that appears in their monthly electricity bill as “FiT-allowance.”

NREB, which advises the DoE about the direction for renewables, earlier recommended a FiT extension for biomass and run-of-river hydro. Both solar and wind have been fully subscribed. Ocean energy remains a nascent technology.

Mr. Cusi said that should the last project that would make it by the extended deadline exceed the installation target, the excess capacity has to be traded at the wholesale electricity spot market.

“I just want to make sure that there is no misunderstanding,” he said, adding that the DoE direction on the extension was ready for signing. — Victor V. Saulon

NATIONAL Renewable Energy Board, which advises the Department of Energy about the direction for renewables, earlier recommended a FiT extension for biomass and run-of-river hydro.

Treasury bills to fetch flat rates

YIELDS on Treasury bills (T-bills) on offer today are likely to move sideways as market players are expected to park their funds in the shorter end of the curve.

The Bureau of the Treasury (BTr) plans to raise as much as P20 billion from the short-tenored securities today, broken down into a P9-billion offering for three-month debt papers, a P6-billion offering for six-month bills, and P5 billion for the one-year papers.

A trader said over the phone on Friday that demand for the T-bills on offer is expected to be strong amid appetite for short tenors.

“Definitely there would be a demand. I’m seeing aggressive buying, especially on the shorter end, because where would you park your funds?” the trader said, adding that bids for the longer tenors have a tendency of being rejected.

Last week, the government rejected all bids for the fresh 10-year Treasury bonds it wanted to auction off as banks placed bids too high for the state.

The auction last week was the fifth consecutive time that the government rejected all bids after the success of the 20th issuance of retail Treasury bonds, which was offered in late November last year.

“If you noticed, the ones being rejected are on the bonds side. Kasi medyo mataas yung demand sa yields (Because the yields demanded by banks are high) given the tenor,” the trader added.

Meanwhile, another trader said yields will be flat or even go down by five basis points amid the expected rate hikes from the US Federal Reserve later this year.

The Bangko Sentral ng Pilipinas is also expected to hike interest rates twice in 2018.

The Treasury plans to auction off P120 billion worth of Treasury bills and another P120 billion worth of Treasury bonds in the January to March period. This is higher than the P200 billion it offered in the last quarter of 2017.

The government borrows from local and foreign sources to fund its budget deficit, which for this year is capped at 3% of the country’s gross domestic product.

The government targets a P888.23-billion gross borrowing plan this year, 22.05% higher than last year.

Of this amount, P176.27 billion will be from external financing while P711.96 billion will be sourced locally.

Record system for city patients pushed

THE CITY government is looking at managing records of patients in its health centers and other health units through a program developed by the Department of Health (DoH). Under the proposal, as yet to be approved by the city council, the city government will link up with the DoH in the implementation of said program, iClinicsys, which will allow the city government to manage the patients coming from its 182 villages. Health Assistant Secretary Abdullah B. Dumama, Jr. said the idea behind the program is to provide a centralized record system for patients, so “national government agencies that provide funding for health like Philhealth (Philippine Health Insurance Corp.) will have a record to refer to when they release funds to their beneficiaries.” He added that this will also help beneficiaries seek medical help as they will have access to those that provide funds. Another agency that will eventually use the data is the Department of Social Welfare and Development in fulfillment of its mandate, Mr. Dumama also said. “We will be training them (personnel of the local government units) to use the program,” he said. — Carmelito Q. Francisco

Galaxy Battles II: Red Bull OG, TNC Pro competing

EVEN sans the “Major” label for the upcoming Galaxy Battles II: Emerging Worlds DotA 2 (Defense of the Ancients) tournament here in the country, two top and popular teams have expressed their excitement and commitment to compete in it.

In successive announcements last week, globally renowned DotA 2 team Red Bull OG and top Philippine team TNC Pro Team said they are ready to compete in Galaxy Battles II happening at the Philippine Arena in Bocaue, Bulacan, from Jan. 19 to 21.

This is despite the decision by Valve Corp., the parent company and developer of DotA 2, to rescind the “Major” label on the tournament over what it considers as “unreasonable infringements on the privacy of the players.”

Along with the withdrawal of Valve also went the Pro Circuit points that would have been available, prompting some teams to withdraw from the tournament.

“There’s been a lot of development recently regarding Galaxy Battles. I am happy to say that we will be attending Galaxy Battles. We as a team felt like we owe it to the fans to go there, including those who have purchased tickets. We love the Philippines, we love the fans. We want to play and we want show you good DotA. We’re coming and we hope to see you guys there!” said Tal “Fly” Aizik, co-founder and captain of Red Bull OG, in a video post on Red Bull’s Esports’ Facebook page.

The team came together in 2015 and has collected four official DotA 2 Major Championships, including the Manila Majors at the Mall of Asia Arena in 2016. In 2017 alone, Red Bull OG garnered a combined prize pool of $1.84 million.

On the part of TNC, that the event is happening here in the Philippines, it was important for them to go out and compete in it.

“For us, it’s an honor to play for the Filipinos. Despite not being a Major, it’s always been a wish to play in front of a Filipino crowd. It’s the best crowd ever!” said Jim Paulo Sy, team manager of TNC Pro.

He went on to share that he is happy with how far TNC Pro Team has come since being created in 2015 by TNC Cyber Café.

Driven by hard work and motivated by success, the TNC Pro Team grew to become one of the most popular teams in the world of competitive DoTA.

Over the course of 2017 alone, the team generated an estimated $1.52 million in prize pool money.

Galaxy Battles II: Emerging Worlds is organized by Fallout Gaming and Purpose Win Entertainment Limited. Tickets for it are available at all SM Ticketworld outlets nationwide. — Michael Angelo S. Murillo

Bulusan Volcano update

ALERT LEVEL 1 (abnormal) status remained in effect as of Sunday’s update by Phivolcs, saying this meant it was in “a state of unrest probably driven by hydrothermal processes that could generate steam-driven or phreatic eruptions.” The update also read: “Local government units and the public are reminded that entry into the 4-kilometer radius Permanent Danger Zone (PDZ) is strictly prohibited and that vigilance in the Extended Danger Zone (EDZ) must be exercised due to the increased possibilities of sudden and hazardous phreatic eruptions.”

SSS plans to increase PSE stake, eyes board seat

By Arra B. Francia, Reporter

STATE-RUN Social Security System (SSS) is keen on getting a seat on the Philippine Stock Exchange’s (PSE) board of directors, expressing interest in the stock rights offering to be issued by the local bourse in order to increase its stake.

“We also want to get a seat in the PSE, since we’re such a big investor in stock and equities…It would be our listening post also in the market,” SSS Commissioner Jose Gabriel M. La Viña told reporters on the sidelines of a press conference with Megawide Construction Corp. last Friday.

The SSS executive answered in the affirmative when asked if they would participate in the PSE’s stock rights offering targeted to be issued from Feb. 5 to 9, with listing set on Feb. 23. The bourse looks to raise up to P3.16 billion from the offering of a maximum of 11.5 million common shares to eligible shareholders valued at P275 each.

SSS currently holds 197,140 shares in the bourse operator, according to a PSE report, which is less than 1% of total shares in the company.

Section 26 of Republic Act No. 8282, otherwise known as the Social Security Law, mandates the SSS to invest funds into private securities, infrastructure projects, real estate related investments, short and medium-term loans, foreign-currency denominated investments, and other industries.

Around 23% of SSS’s portfolio is now invested in equities, or P111 billion. Fixed-income securities account for bulk of its portfolio at 40%; 10% is in real estate properties, 6% in corporate bonds, and around 5% in bank deposits.

Aside from the PSE, SSS is also looking to get a seat in the board of Cirtek Holdings Philippines Corp. This is in line with the institution’s goal to invest in companies in high-growth sectors.

“We’re looking at companies that have strategic advantages, competitive advantages, they’re in industries that grow fast. With Cirtek, we’re still negotiating the price. (It would take) a few months. Mukha namang they’re really interested also,” Mr. La Viña said.

To date, SSS has P400 million worth of common shares in Cirtek.

SSS has recently been given a board seat in Megawide as part of a special accommodation, after it has increased its stake in the company to 5.17%. This comprises less than half of the required stake to get a board seat, or 12.5%. The state pension fund noted however that it is willing to hike its shares to double its current ownership.

Alongside its increased ownership in Megawide, SSS will also be taking part in an unsolicited proposal to rehabilitate the Ninoy Aquino International Airport with the engineering conglomerate. The Megawide-led consortium looks to submit the proposal by the first quarter of 2018.

Dolce & Gabbana’s royal flush wows Milan Fashion Week

MILAN — Italian fashion house Dolce & Gabbana put on a show fit for a king Saturday with its regal-inspired men’s range modelled by some of the scions of the social media age in Milan.

The show, King’s Angels, featuring sharp tailored suits embellished with patterned lapels and gold embroidery, took place under an enormous crown with regular appearances of the celestial beings on sleeves, sweatsuits, and suede moccasin slippers.

The Italian label has made millennials (those born between 1980 and 2000) its target market and used several of the generation’s more prominent members to show off its latest creations at Milan Men’s Fashion Week.

Internet celebrities such as Kevin Chaplin, grandson of Charlie; Dylan Jagger Lee, son of actress Pamela Anderson and drummer Tommy Lee; Paris Brosnan, son of actor Pierce, and Christian Combs; son of rapper Puff Daddy, all took to the catwalk.

They were joined by the likes of Neels Visser — he of 2.7 million Instagram followers — video microblogging app Vine star Cameron Dallas, and musician and actor Austin Mahone.

Earlier Saturday, the doyen of Italian fashion Giorgio Armani, 83, showed off new creations for his Emporio Armani streetwear brand with a unisex show full of dark block colors and sharp tailoring.

Donatella Versace introduced riffs on Scottish tartan, also displaying women’s outfits at Men’s Fashion Week. — AFP

Tax reform outcome hints at package 2 unpredictability

CONGRESS is free to modify tax reform package 2 beyond the Department of Finance’s (DoF) own recommendations, adding an element of unpredictability to the revenue potential of the bill, Secretary of Finance Carlos G. Dominguez III said.

“We have no choice. I mean just like (package 1) we will make a case for it, then they will decide how we will move forward,” he added.

When Republic Act No. 10963, the first package of the tax reform program, was still in legislation, the House of Representatives inserted the excise tax for sugar-sweetened beverages — which was not in the Finance department’s original proposal — along with other insertions modifying the list of value-added tax exempt sectors.

The Senate meanwhile included a new tax on cosmetic procedures, while raising rates for coal, minerals, tobacco and on some passive income taxes.

Along with the tempering of rates in other revenue-raising measures such as the fuel and automobile tax hikes, legislation brought the tax reform’s incremental revenue to P82.3 billion in the first year of its implementation, from P206.8 billion estimate in the DoF’s proposal when it submitted the bill in September 2016.

The DoF intends the second package to be revenue-neutral, meaning that it would not generate additional revenue for the government.

It aims to lower corporate income tax rate to 25% from 30% currently to attract investment, and at the same time plug losses and leakage by rationalizing tax holidays granted to firms, making them performance-based and time-bound.

Mr. Dominguez said that the department intends to submit package 2 to the Congress today as the regular session resumes.

“We should be ready by then. Because that’s when they open,” he said, noting that the department is “just putting the final touches on it.”

According to the constitution, all tax bills should originate from the House of Representatives.

The DoF said that foregone revenue from tax perks given to large enterprises totaled P301 billion in 2015, accounting for 2% of the economy. — Elijah Joseph C. Tubayan

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