The U.S. Centers for Disease Control and Prevention (CDC) said on Tuesday that a total of 21 Oropouche virus disease cases among US travelers returning from Cuba have been reported as of Aug. 16.
The Oropouche virus is spread primarily through bites from midges as well as from some mosquitoes. Symptoms of the disease include headache, fever and muscle aches and joint pains, but the virus is rarely fatal.
Most patients returning from Cuba reported their symptoms between May and July.
Overall, three patients were hospitalized, and no deaths were reported, the agency said in its Morbidity and Mortality Weekly Report.
A dire economic crisis in Cuba has made it difficult to control the spread of Oropouche. Frequent power outages mean many sleep with windows open during the hot Caribbean summer. Few Cubans have access to insect repellent, and fumigation efforts have been stymied by fuel shortages.
Health officials in Cuba first began to report cases of the virus in May, and say it has spread quickly from rural areas to urban centers, including the capital Havana, a top tourist destination.
Cuba’s health ministry said last week it had registered more than 400 cases of Oropouche on the island this year, though reports around Havana suggest a marked increase in recent weeks.
Earlier this month, the CDC issued a health alert to notify clinicians and public health authorities of an increase in the disease in the Americas region that has caused two deaths so far this year.
Authorities in Bolivia, Brazil, Colombia, Cuba and Peru have reported at least 8,000 locally acquired cases since late last year.
Currently, there are no specific treatments or vaccines available for the disease. – Reuters
TOKYO – Japan on Wednesday braced for Typhoon Shanshan, with heavy rain and strong winds forecast, forcing airlines and railways to cancel some services over the coming days.
Shanshan is expected to strike Japan’s southwestern Kyushu island over the next few days, and the Japan Meteorological Agency (JMA) said it may issue a special warning to Kagoshima prefecture.
“Maximum caution is required given that forecasts are for strong winds, high waves and high tides that have not been seen thus far,” the JMA warned.
The typhoon is expected to approach Japan’s central and eastern regions, which includes the capital Tokyo, around the weekend, according to JMA.
ANA Holdings plans to cancel 110 domestic flights on Wednesday slated to leave or arrive in southwestern Japan, affecting around 4,200 passengers, public broadcaster NHK said. Rival Japan Airlines plans to cancel 80 domestic flights from Wednesday to Friday, according to the report.
Some Shinkansen bullet train services in the area are expected to be cancelled on Wednesday and Thursday, NHK said. – Reuters
A bill that would mandate front-of-package warning labels (FOPWL) on food products with unsafe levels of “nutrients of concern” is being pushed by a public law group to curb rising rates of obesity and non-communicable diseases (NCDs) in the Philippines.
“The bill seeks to reduce the risk of developing obesity, overweightness and NCDs, as well as establishing a food environment that is conducive for healthier diets,” Mikhael Laurence C. Millan, project manager of Imagine Law said in an interview.
The FOPWL bill will make it easier for Filipino consumers to identify food products that are high in “nutrients of concern,” including sugars, sodium, saturated fats, trans fats, and cholesterol, Mr. Millan said.
Excessive intake of these nutrients poses various health risks, according to the World Health Organization (WHO).
It can lead to overweight/obesity and contribute to the development of NCDs such as diabetes, high blood pressure, and vascular, heart, brain, and kidney diseases.
NCDs account for 68% of the total deaths in the Philippines, WHO said.
Imagine Law advocates for the use of octagonal “stop sign” warnings, which are found to be the most intuitive way to warn consumers when they purchase unhealthy food products.
“When we place information sa harap (in front) in a much simpler manner, yung consumers po natin (our consumers), they become more mindful of what they eat,” Mr. Millan said.
Currently, five bills supporting FOPWL are in progress, with one Senate bill being referred to the Committee on Health.
Meanwhile, four bills in the House of Representatives are pending scheduling for a joint committee hearing with the Committees on Health and Trade.
By supporting these bills, Mr. Millan believes that all Filipinos can now have more informed healthier food choices.
“Lahat po ng Pilipino ay magbe-benefit sa bill dahil lahat po tayo ay bumibili ng pre-package food products (All Filipinos will benefit from the bill because all of us do purchase pre-packaged food products),” Mr. Millan said.
“This bill will establish a healthy food environment… lahat po tayo kaya ng gumawa ng (all of us can create a) healthier (and) informed food choices.’
Mr. Millan also believes that the push for the FOPWL bill will shift Filipino consumer behavior, eventually prompting the food and beverage industry to reformulate their products to a safer nutrient level. – Edg Adrian A. Eva
The Department of Justice (DOJ) plans to intensify its campaign against human trafficking to protect “children, women, elderly and other vulnerable persons forced to be victimized because of poverty.”
“Human trafficking cannot be solved by the whole-of-government approach only, it must be a whole-of-nation approach,” Justice Undersecretary in-charge for the IACAT Nicholas Felix L. Ty said in Filipino on July 17 in a news release.
For nine consecutive years, the Philippines has maintained a Tier 1 ranking in the US State Department’s 2024 Trafficking in Persons (TIP) Report. This top-tier status reflects the country’s compliance with the minimum standards set by the US Trafficking Victims Protection Act of 2000 for combating human trafficking.
“We will further intensify our campaign to stop trafficking in persons by bringing the perpetrators to justice and identifying and assisting victims,” Jose Manuel G. Romualdez, Ambassador to the US said.
In line with the ongoing work to combat trafficking and online sexual abuse or exploitation of children (OSAEC), the three-day initiative program headed by the Department of Justice (DOJ), the Special Action and Intelligence Committee for Transportation (SAICT) actively participated in the Barangay Inter-Agency Council Against Trafficking (IACAT) 2.0 activities from August 22 to 24.
Video presentations, lectures, roundtable discussions, fellowship gatherings, motorcades, and information campaigns would be utilized as a multi-faceted approach to equip local officials and citizens with knowledge and tools to prevent Trafficking-in-Persons (TIP) within their communities.
Public areas such as transport terminals, ports, bus stations, and airports are often targeted by human traffickers, according to the SAICT.
The SAICT encourages the public “to remain vigilant report suspicious activities, and protect children from traffickers.” – Almira Louise S. Martinez
Metro Manila and nearby provinces have announced the suspension of classes on Wednesday due to continuous heavy rains brought by the Southwest Monsoon (Habagat).
The National Disaster Risk Reduction and Management Council (NDRRMC) has announced the suspension of classes and government work in Metro Manila due to heavy rains and the potential risk of flash floods.
Meanwhile, classes at all levels in both public and private schools were also suspended in nearby provinces, including Taytay, Rizal, as well as in towns in Cavite such as Noveleta, Kawit, and Imus City.
The weather bureau has issued a “yellow rainfall” warning in areas of Zambales, Bataan and Metro Manila, indicating heavy rainfall with a potential risk of flooding in low-lying areas in the next two hours. – Edg Adrian A. Eva
Workers go about with the on-going construction at the Clark Depot of the North-South Commuter Railway Extension Project at the Clark FreePort Zone in Mabalacat, Pampanga Province, Aug. 12, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN
By Beatriz Marie D. Cruz, Reporter
THE NATIONAL Government’s (NG) budget deficit widened in the first seven months of the year as spending growth outpaced revenues, the Department of Finance (DoF) said.
Finance Secretary Ralph G. Recto told the Senate Finance Committee that the budget gap ballooned by 7.2% to P642.8 billion as of end-July from P599.5 billion in the same period a year ago.
This accounts for less than half (43.32%) of the NG’s P1.48-trillion deficit ceiling for this year.
“We are on track to meet our fiscal program for the year with the robust performances of the Bureau of Internal Revenue (BIR), the Bureau of Customs (BoC), the Bureau of the Treasury, and our GOCCs (government-owned and -controlled corporations),” Mr. Recto told the hearing.
In the first seven months, government spending jumped by 13.2% to P3.25 trillion from P2.87 trillion a year ago. This accounted for 21.9% of gross domestic product (GDP).
Meanwhile, revenues climbed by 14.8% to P2.61 trillion during the January-to-July period from P2.27 trillion last year. This was equivalent to 17.1% of GDP.
Broken down, tax revenues rose by 11% to P2.24 trillion during the seven-month period from P2.02 trillion a year ago. This accounted for 14.6% of GDP.
“This strong revenue performance placed us among Asia’s top revenue-to-GDP ratios of 17.1% for the first half of the year, and this is above our full-year target of 16.1%,” Mr. Recto said.
Mr. Recto said BIR collections went up by 12.7% to P1.68 trillion as of end-July, while Customs collections rose by 5.8% to P535.9 billion.
Tax revenues from other offices increased by 14.9% to P20.4 billion in the first seven months from P17.8 billion last year.
On the other hand, nontax revenue collections jumped by 44.5% to P368.8 billion as of end-July from P255.3 billion in the same period last year.
This was driven by higher GOCC dividends in the first seven months of the year, Mr. Recto said.
As of end-July, BTr collections jumped by 27.8% to P183.8 billion, while nontax revenue collections from other offices surged by 66% to P185 billion.
The Finance chief attributed the government’s strong revenue performance to intensified digitalization and enhanced collection strategies.
Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said the wider deficit can be attributed to higher debt servicing costs and increased spending to address the impact of natural disasters.
“The likely reasons for the widening budget deficit in July include increased government spending, higher debt servicing costs, and the impact of natural disasters. These disasters led to unexpected expenses for disaster response and recovery,” he said in a Viber message.
In a Viber message, Union Bank of the Philippines, Inc., Chief Economist Ruben Carlo O. Asuncion said the government is continuing its major push for infrastructure in the third quarter as seen with the faster spending.
In the first half of the year, state spending on infrastructure increased by 20.6% to P611.8 billion from P507.2 billion a year ago, according to the Budget department. This exceeded the P545.3-billion program for the period by 12.2%.
The NG aims to spend 5-6% of GDP yearly for infrastructure through 2028.
To address the widening deficit, the government must increase revenue collections, reduce spending, and promote economic growth, Security Bank Corp. Chief Economist Robert Dan J. Roces said.
Meanwhile, the DoF expects a 10.3% average annual revenue growth in the medium term as it ramps up its digitalization strategies, Mr. Recto said.
These strategies include border security enhancement, revenue collection and revenue-base protection, adaptive regulations and compliance monitoring, vigilant enforcement operations and vigorous intelligence gathering activities, and effective engagement with stakeholders as well as interagency cooperation.
Revenues as a percentage of GDP are expected to increase to 16.15% in 2025, 16.21% in 2026, 16.59% in 2027, and 16.96% in 2028.
For this year, the government’s budget deficit ceiling is equivalent to 5.6% of GDP. The government wants to reduce the deficit-to-GDP ratio to 3.7% by 2028.
Budget deficit data for July will be released on Wednesday, the Treasury bureau said.
THE ANTI-MONEY Laundering Council (AMLC) is eyeing to address by October the remaining action items set by the Financial Action Task Force (FATF) in order to exit the “gray list” of jurisdictions under increased monitoring for money laundering risks.
“We are hopeful that we will comply with all these action items by October of this year,” AMLC Executive Director Matthew M. David told a Senate budget hearing on Tuesday.
“If we comply with the action items by October this year, by early next year, which is January, there is a big probability of an on-site visit,” he added.
The on-site visit is one of the steps in the FATF’s mutual evaluations, where it assesses the implementation of a country’s measures against anti-money laundering and counter financing of terrorism (AML/CFT).
After the on-site visit, the assessors will draft a report that will then be presented at the FATF’s next plenary.
The remaining action items that the Philippines must address include “demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets.”
It must also address deficiencies that concern “applying cross-border measures to all main sea/airports including detection of false declarations of currency and confiscation action in line with risk; and demonstrating an increase in the prosecution of terrorism financing cases in line with risk.”
“Those are the only remaining action items. If you remember, in June 2021, there were 18 recommended action items imposed by FATF through the joint group. But now, it’s only three,” Mr. David said.
The action item on terrorism financing prosecution will require more filing of cases, he said.
“We need to file more terrorism financing cases until the end of this cycle, which is this month,” he said.
As of the first half of the year, the AMLC has secured 19 freeze orders, 17 bank inquiry orders and four petitions for civil forfeiture. In addition, 64 complaints have been filed with the Justice department while 12 cases were filed in court.
Mr. David said that the action item on casino junkets will depend mainly on Philippine Amusement and Gaming Corp. as the AMLC has already turned over the supervision of casinos and junket operators to the gaming regulator.
He said there are around 12 land-based casinos and approximately 40 junket operators.
Meanwhile, the item on cross-border measures will require the cooperation of the Bureau of Customs.
“Actually, the issue there is about our submission of the Customs declaration and it’s because of our e-travel system. Now, that’s up and running,” Customs Commissioner Bienvenido Y. Rubio said.
In its June update, the FATF kept the Philippines on its gray list for a third straight year.
BSP Governor Eli M. Remolona, Jr. earlier said the country could exit the gray list by next year.
ARTIFICIAL INTELLIGENCE Meanwhile, AMLC said it is also planning to integrate artificial intelligence (AI) in its operations as soon as next year.
“In the AMLC, the AI project is already under development. We’re about to complete it within this year. We already procured suppliers more than a year ago,” Mr. David said.
“It will be completed this year, but it will be operational early next year, provided that we will procure the subscription,” he added.
Under the AMLC’s proposed P346-million budget for 2025, more than P50 million will go to the procurement of the subscription of the AI system.
“Because if you develop an AI, you need subscription also annually. That’s the biggest chunk of our information and communication technologies (ICT) products that we are procuring for next year,” he said.
AMLC plans to use AI tools to process covered transaction reports (CTRs) and suspicious transaction reports (STRs).
“We have big data from the CTRs and STRs. Last year, we received 15 million CTRs and STRs. CTRs are transaction reports from banks and among other covered persons. We have 14,000 covered persons, that’s why there are many transaction reports submitted. How will you manage big data like that without the assistance of the AI?”
Mr. David said AMLC has only around 30 analysts that process the data. “We need the assistance of technology and machine learning,” he added.
Motorists pass through the toll booths at the South Luzon Expressway. — PHILIPPINE STAR/RUSSELL A. PALMA
By Ashley Erika O. Jose, Reporter
THE Department of Transportation (DoTr) postponed the implementation of new tollway guidelines, which impose fines on motorists with no radio frequency identification (RFID) tags or insufficient funds on their accounts, to Oct. 1.
“We hope the concerned agencies and tollway operators would use the 30-day deferment to fine-tune expressway operations and further intensify the public information campaign to enable tollway users to comply with the new guidelines,” Transportation Secretary Jaime J. Bautista said in a statement on Tuesday.
The new rules, under Joint Memorandum Circular No. 2024-001, were supposed to be enforced starting Aug. 31.
Under the rules, all motorists passing through expressways without RFID tags or having insufficient balance on their accounts will face penalties starting Aug. 31.
“These revised guidelines should significantly improve traffic along expressways through cashless or contactless toll plazas,” Mr. Bautista said.
The Toll Regulatory Board (TRB) said motorists entering an access highway without RFID tags or electronic toll collection (ETC) device will incur a fine of P1,000 for the first offense, P2,000 for the second offense, and P5,000 for subsequent offenses.
Motorists exiting toll expressways with insufficient account balance will be fined P500 for the first offense, P1,000 for the second offense, and P2,500 for subsequent offenses.
Nigel Paul C. Villarete, senior adviser on public-private partnership at Libra Konsult, Inc. supports the decision of the Transportation department to postpone the implementation of the new rules.
“I agree and support the extension. The intent is wider compliance, not monetary consideration. So, sufficient public advice should be issued through all media means,” Mr. Villarete said in a Viber message to BusinessWorld on Tuesday.
The government’s move to impose fines on users with insufficient balance is just as this causes congestion at toll booths, Mr. Villarete said.
However, he noted that penalties for those without RFID tags is “unjustified.”
Mr. Villarete said tollway operators should retain cash lanes for infrequent users of expressways.
Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said the DoTr should completely abandon its plan to impose penalties on users with insufficient account balances.
“TRB or DoTr should scrap the penalties for insufficient balance, not simply defer the date. What it should penalize are the glitches in the tollway system. Impose deadlines plus penalties on system interoperability,” Mr . Santiago said in a message on Tuesday.
Mr. Santiago said fines for those with insufficient balance is unnecessary as toll operators can always regain funds once motorists reload their RFID wallets.
Metro Pacific Tollways Corp. (MPTC) President and Chief Executive Officer Rogelio L. Singson has said earlier that imposition of fines would ensure the full implementation of a cashless collection system.
He said the implementation of a cashless toll collection is a prerequisite for the eventual shift to electronic toll collection interoperability by October.
The TRB is aiming to introduce a unified RFID wallet system or interoperability between Easytrip and Autosweep by October.
Easytrip is used on MPTC’s North Luzon Expressway, Subic–Clark–Tarlac Expressway, Manila-Cavite Expressway, and Cavite-Laguna Expressway.
Meanwhile, Autosweep is used on the San Miguel group’s Skyway, South Luzon Expressway, NAIA Expressway, Southern Tagalog Arterial Road Tollway, and Tarlac-Pangasinan-La Union Expressway. Autosweep is also used on the Villar group’s Muntinlupa Cavite Expressway.
BusinessWorld sought comments from toll road operators MPTC and San Miguel Corp. but had not received a response as of the deadline.
MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
THE CONTINUED GROWTH in overseas Filipino worker (OFW) remittances will likely be sustained, although a potential slowdown in developed economies could weigh on this outlook, GlobalSource Partners said.
“The prospects for OFW remittances appear promising given the recovery of many advanced economies,” GlobalSource analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac said in a report.
“A reversal of fortune in the advanced economies, however, could be ominous for overseas employment and corresponding remittances, as well as their mitigating impact on both the real sector and the external payments position of the Philippines, and for that matter, other labor-exporting economies.”
The latest data from the Bangko Sentral ng Pilipinas (BSP) showed that cash remittances jumped by 2.9% to $16.25 billion in the first half from $15.8 billion in the same period a year ago.
The central bank expects cash remittances to grow by 3% this year.
GlobalSource said that growth prospects for remittances “remain positive” as multilateral institutions like the International Monetary Fund expect a “slight acceleration” in the growth of advanced economies.
“In the last decade, the number of Filipinos leaving for abroad has continued to rise, resulting in… sustained growth in their remittances,” it said.
From 2014 to 2023, remittances stood at $323.7 billion, equivalent to an annual average of $32.4 billion or a growth rate of 3.9%, GlobalSource said.
“OFW remittances trended upward for this period, except in 2020, when remittances declined by 0.8% as a result of the COVID-19 (coronavirus disease 2019) pandemic. Funds sent through the formal banking channels made up the bulk of total remittances, comprising about 90% of the total,” it said.
GlobalSource said remittances contribute “substantially” to the Philippines’ foreign exchange coffers.
“The Philippines now relies heavily on OFW remittances as a major source of foreign exchange earnings,” it said.
The country’s gross international reserves (GIR) jumped to $105.65 billion as of end-July, its highest level in over two years or since the $107.3-billion level recorded in March 2022.
“In many ways, OFW remittances help stabilize volatile capital flows and the peso-dollar exchange rate,” it added.
“Diversified across the globe, OFW remittances have provided a natural hedge against specific regional recessions until today, as weak remittance flows from affected areas have been mitigated by remittances from less affected parts of the world,” GlobalSource said.
Remittances also help mitigate the current account deficit and fuels personal consumption expenditures, it added.
The latest data from the central bank showed that the current account deficit stood at $1.7 billion in the first quarter, equivalent to -1.6% of GDP.
“The consistency of remittance flows also derives from the altruistic nature of these transfers, with Filipinos sending home money to finance their families’ daily expenditures, housing payments, tuition fees and even expenses for milestone celebrations,” it said.
“All these reasons combine to cause remittance flows to steadily rise over the years, even against the backdrop of severe economic downturns such as the global financial crisis in 2008-2009.”
GlobalSource said there is “relative stability” in OFW employment as most are employed in industries such as services, sales, crafts and other related sectors.
“Many of them are also professional engineers and architects, accountants and IT experts. A handful of them are in management,” it added.
The United States accounted for nearly half of overall remittances in the first half of the year. This was followed by Singapore (6.9%), Saudi Arabia (6%), Japan (5%), the United Kingdom (5%) the United Arab Emirates (4.1%), Canada (3.4%), Qatar (2.9%), Korea (2.8%) and Taiwan (2.7%).
The World Bank earlier said remittances to the Philippines, which was the third-largest recipient of remittances in 2023, are projected to grow by about 3% this year and in 2025. — Luisa Maria Jacinta C. Jocson
The Rural Bankers Association of the Philippines celebrates Rural Banking Consciousness Week
By KATHERINE L. MAGSANOC
MANILA, Philippines — In the age of AI, it may be hard to understand that there are still many Filipinos who do not know how to go to a bank, open a bank account, maintain it, and make it grow. This is true when it comes to Filipinos living in the rural areas, who comprise 51.71% of our total population, according to a World Bank report that came out this year.
This accounts for a whopping 5.9 million Filipinos — almost six million people who need help with financial literacy and banking, especially if they want to start their own business.
The Rural Bankers Association of the Philippines (RBAP) understands this, which is why their theme for their Rural Banking Consciousness Week celebration this August 26 to September 1 is themed, “Rural Banks: Empowering Rural Communities through Inclusive Banking.”
Rural banks and community building
“Rural banks play an important role in countryside development,” begins RBAP Executive Director Rafael Francisco Amparo in an interview with The STAR. Rural banks are present mostly in the lower income municipalities of the country (rural banks account for almost 70% of banking offices located in the third to fifth class municipalities), they serve as the countryside’s first — and oftentimes — only access point to financial services.
“By providing a regulated vehicle for channeling community savings to fund local micro and small entrepreneurs, rural banks are the primary catalysts for local economic development,” Amparo continues.
RBAP addresses the evolving needs of consumers and applies the principles of inclusive banking in their communities by constantly engaging with regulators (BSP, CIC, SEC, etc.) and enablers (technology providers, multilateral development organizations, NGOs, interest groups). They do this to stay abreast of the rapidly changing regulatory and business environments.
“The typical rural bank is often the only banking presence in its community,” says Amparo. “By its very nature, rural banking is an exercise in financial inclusion.”
Full support of MSMEs
RBAP’S member banks continue to be a key source of credit for MSMEs. In an article last January 2024, Businessworld noted that the sector showed the highest level of compliance with lending to MSMEs:
“Meanwhile, rural and cooperative banks extended loans worth P32.346 billion to micro and small enterprises. This is equivalent to 16.39% of their P197.401-billion credit book, and well above the minimum amount required by law. Their loans to medium enterprises hit P18.3 billion or 9.27% of their loan portfolio.”
According to Amparo, this is in sharp contrast to the 1.44% and 3.81% of total loan portfolios lent respectively by Universal/Commercial Banks (U/KBs) and Thrift Banks (TBs) to MSMEs.
Strategic partnerships for the greater good
RBAP Board of Directors
“RBAP — being an association of rural and cooperative banks — is open to all entities, individuals, and organizations that share its vision of enabling rural and cooperative banks to play a key role in the local economies,” says Amparo.
They have an existing partnership with the Economic and Financial Learning Office of the Bangko Sentral ng Pilipinas (BSP) to conduct capacity-building exercises for rural bank front line staff this November, with the objective of making every rural bank frontliner a competent financial inclusion and education advocate and evangelist.
They also have a partnership with Water.Org with whom they share a vision of enabling access to finance for clean water, sanitation, and hygiene for the disadvantaged sectors of society.
Digitalization and other trends to prepare for
According to Amparo, their member banks are aware that digitalization will continue to be the general trend in the near future. Some of them already offer electronic payment and financial services (EPFS) authorities from BSP.
“Specialized developments such as the use of generative AI and large language models, to automate processes while reducing human error and improving the quality of output, will play key roles in banks of the future,” he says.
Another trend that is cause for concern within the industry is the continuing evolution of fintechs targeting markets traditionally underserved by banks, and providing financial services at the literal tap of a finger on a touch screen.
“How banks will evolve their own user and customer experiences to match those of fintechs, may very well determine the continuing relevance of banks in the financial space in the future,” Amparo posits.
Digital channels could work to the advantage of RBAP members when they are utilized for financial education. “We foresee rapid progress in the war against financial ignorance,” says Amparo.
“The task to educate all Filipinos in the relevance of finance to their daily lives becomes an achievable reality.”
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A Meralco worker examines a transformer in Navotas City. — PHILIPPINE STAR/RYAN BALDEMOR
TWO power generation companies under San Miguel Corp. (SMC) and Aboitiz Power Corp. (AboitizPower) will undergo post-qualification evaluation for Manila Electric Co.’s (Meralco) 600-megawatt (MW) baseload supply requirement, the power distributor announced on Tuesday.
“Masinloc Power Co. Ltd. was declared the best bid after it offered P5.6015 per kilowatt-hour (kWh) total levelized cost of electricity rate (LCOE), inclusive of line rental cost and value-added tax, for 500-MW capacity,” Meralco said in a statement.
Masinloc Power is a subsidiary of San Miguel Global Power, the power arm of SMC.
“GNPower Dinginin Ltd. Co., meanwhile, offered to supply the remaining 100-MW baseload requirement at an LCOE rate of P5.7392 per kWh,” the company also said.
GNPD operates under the private limited partnership of AboitizPower’s Therma Power, Inc., AC Energy Infrastructure Corp., and Power Partners Ltd. Co.
Meralco said that both offers were “significantly lower than the P7.2609 per kWh price set for the bidding.”
A total of six companies submitted their qualification documents, technical proposals, and bid prices.
The next best bids came from Mariveles Power Generation Corp., which offered P6.4017 per kWh for 200 MW of supply, and Quezon Power (Philippines) Limited Co., which submitted a bid of P6.5487 per kWh for 400 MW of the requirement.
“The submissions passed the criteria contained in bidding documents and pre-qualification evaluation, according to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA),” the company said.
Two bidders were deemed noncompliant as their offers were higher than the reserve price. Southwest Luzon Power Generation Corp. and Therma Luzon, Inc. offered rates of P7.7303 per kWh and P8.3388 per kWh, respectively.
The government requires distribution utilities to choose the cheapest electricity supply through a competitive selection process (CSP).
“The robust turnout of this CSP is a welcome development for Meralco’s continuing efforts to source sufficient power supply for its customers at the least cost possible,” Meralco BAC-PSA Chairman Lawrence S. Fernandez said.
“We will now proceed with the post-qualification evaluation prior to the issuance of notices of award and execution of PSAs,” he added.
The 15-year PSA resulting from the CSP will cover Meralco’s 600-MW baseload supply, effective on Aug. 26, 2025.
Meralco said that it conducted the CSP “in full compliance with the rules and regulations issued by the Energy Regulatory Commission and the Department of Energy.”
“The CSP ensures an open and transparent process that ensures fairness and integrity,” Mr. Fernandez said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
THE SECURITIES and Exchange Commission (SEC) has revoked the corporate registrations of Procap International, Inc. and Ray International Philippines Corp. following allegations of unauthorized solicitation of investments from the public.
The SEC’s Enforcement and Investor Protection Department issued separate orders canceling the corporate registrations of both companies, the commission said in a statement on Tuesday.
According to the SEC, Procap’s corporate registration was canceled for violating Section 44 of Republic Act (RA) No. 11232, or the Revised Corporation Code of the Philippines (RCC), in relation to Section 6(i), paragraph 2 of Presidential Decree (PD) No. 902-A.
The revocation order against Ray International was also issued for violating Section 6(i), paragraph 2, and Section 3 of PD 902-A.
“The RCC prohibits corporations from possessing or exercising corporate powers other than those conferred by the law or by its articles of incorporation (AOI),” the SEC said.
“PD 902-A authorizes the commission to suspend or revoke the franchise or certificate of registration of corporations for serious misrepresentation as to what it can do to the prejudice of or damage to the public,” it added.
As a result, Procap, its president, and nominees were instructed to pay a P1 million fine under RA 8799 or the Securities Regulation Code.
The company was found to be selling securities in the form of investment contracts through policy plans, promising investors guaranteed daily income of 0.2% to 1.4%, depending on their chosen plan.
Under its AOI, Procap is prohibited from soliciting investments from the public and issuing investment contracts. The SEC issued a cease and desist order (CDO) against the company in February.
Meanwhile, the SEC said that Ray International, which conducts business under the names and styles of Ray Education Directions Consultancy Services, Be Unrivaled Productions, and Sine Cordillera, was also found to be soliciting investments without government approval.
The company was deemed to be offering programs for becoming a real estate agent as well as a property saver or buyer-investor with a guaranteed income of up to P61,000 for 24 months, depending on the investment.
It also promotes becoming a passive investor as a partner-financier for an investment from P300,000 to P10 million, with a total income of P108,000 to P3.6 million in 12 months.
In June 2023, the SEC issued a CDO against Ray International, along with other companies such as Casa Infini Builders and Realty Co. Ltd., Casa Infini Realty Management Co., Ltd., and Casa Infini Properties and Development Corp., where its incorporator also holds controlling positions.
BusinessWorld reached out to the two companies but did not receive a response by the deadline. — Revin Mikhael D. Ochave
