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MacroAsia sees income hitting at least P1 billion

MACROASIA Corp. is expecting to post at least P1 billion in net income for the year, a top official said, with the company’s performance for the year thus far already exceeding 2016’s earnings.

MacroAsia Chief Financial Officer and Vice-President for Administration and Business Development Amador T. Sendin told BusinessWorld it has already exceeded the double-digit profit growth the company earlier said it targeted. MacroAsia reported a net income of P670 million last semester, bigger than the P440.16 million it booked in 2016.

“Last year our net income was P440 million, first half this year is already P670 [million]… At the end of the year we’re expecting to hit at least a billion,” Mr. Sendin said on the sidelines of the signing of a joint venture agreement between MacroAsia and PTC Holdings Corp.

The official said MacroAsia is keeping a double-digit income growth target for 2018.

The company will also continue to focus on its core business of aviation services, the official said. It signed on Monday a joint venture agreement with PTC Holdings to set up an aviation school that will supply personnel to airlines.

The company is also studying acquisitions of logistics firms to complement its current businesses. The study is set to be completed in a year.

“We were into a logistics venture eight years ago but the joint venture didn’t do well. We had to close it. But now, we’re looking at some acquisitions… It has synergy with our businesses,” Mr. Sendin told reporters.

MacroAsia also plans to eventually spin off assets in its water concession business.

“We’re going to expand it, we’ll have it scaled, but by that time we will probably spin it off, separate it, because the focus will be on aviation services,” Mr. Sendin told BusinessWorld. — Patrizia Paola C. Marcelo

Dashboard (10/18/17)

Ford rolls out pre-tax hike promoFord rolls out pre-tax hike promo

FORD Philippines has announced a new sales promo ahead of an expected hike in vehicle taxes.

To run until Dec. 31, the promo includes all-in, low down payment fees, low monthly payments, or cash discount for the Ford Fiesta, Focus, EcoSport, Everest and Ranger. The Fiesta 1.5L Trend M/T can be purchased through a P88,000 down payment or a P50,000 cash discount. It can also be bought through monthly installments as low as P7,408.

Offered with the same deals are the Focus 1.5L Sport A/T (P98,000 down payment, or P70,000 cash discount, or P10,498 monthly installment); EcoSport 1.5L Ambiente M/T (P48,000 down payment, or P35,000 cash discount, or P7,698 monthly installment); Everest 2.2L 4×2 Trend A/T (P88,000 low down payment, or P50,000 cash discount, or P16,018 monthly installment); and Ranger 4X2 XLT M/T (P68,000 down payment, or P30,000 cash discount, or P11,748 monthly installment).

Included in the deals are free LTO registration fees for three years, one-year comprehensive insurance coverage and chattel mortgage payments.

“Now is definitely the perfect time to get a Ford vehicle… especially with the impending excise auto tax changes slated for implementation next year,” said Rodel Gallega, vice-president for sales and marketing at Ford Philippines.


Shell, Subaru announce marketing tie-up

PILIPINAS Shell said a new partnership with Subaru distributor Motor Image Pilipinas will see both companies “working together” in “future marketing collaborations.”

The partnership was formalized on Sept. 8 by Pilipinas Shell vice-president for retail Anthony Lawrence Yam and Motor Image Pilipinas general manager Gerry Hernandez.

Mr. Yam said Shell is proud to be “Subaru’s preferred fuels brand in the Philippines.”

In a news release, Shell added Subaru vehicles are complemented by its lineup of quality fuels like V-Power, and that all new Subaru cars will now include Shell fuel vouchers, a car charger and an SM Advantage Card.

Finance dep’t dismisses five revenue employees after SALN irregularities

THE Department of Finance (DoF) has sacked five internal revenue and customs officials as of September, and has suspended 15 more, due to inconsistencies in their wealth statements.

The DoF has ordered the dismissal from public service of three Bureau of Customs (BoC) officials and two from the Bureau of Internal Revenue (BIR), after the Office of the Ombudsman found them guilty of “Grave Misconduct and Serious Dishonesty and finding anomalies regarding the accomplishment and filing of their Statement of Assets, Liabilities and Net Worth (SALN) reports.”

This included Customs Administrative Aide Ester Grafil Sese, after she was found to own various motor vehicles, firearms, and a townhouse property in her SALNs covering 2000 to 2013, despite only earning about P78,264 a month as of 2012.

BoC Special Agent Ramir Saunders Gomez, meanwhile  failed to declare six real properties located in Old Cabalan, Olongapo City in his SALN, while the Transfer Certificates of Title for the said properties were under his name.

Customs Operations Officer V Visitacion B. Difuntorum likewise failed to declare her properties in Quezon City and in Catarman, Samar.

From the BIR, the DoF sacked Chief Revenue Officer IV Judith G. Pacan of the Iligan City district office, as she failed to declare a parcel of land located in Misamis Oriental; an ancestral house located in Cagayan De Oro City; land in Molugan, El Salvador City; land in Cagayan De Oro City and a housing loan.

On top of that, she also failed to secure a travel authority for a trip to Hong Kong and Singapore.

Meanwhile, Ma. Herminia A. Pabito, Revenue Officer IV of the BIR, also failed to declare properties in her 2009 to 2011 SALNs, and also failed to secure travel authorization for trips to Bangkok, Shanghai, and Hong Kong.

The administrative cases were filed by the Finance department’s anti-corruption arm, the Revenue Integrity Protection Service.

Aside from those dismissed from service, the DoF also ordered the suspension of nine Customs employees, two BIR staff, and one city Treasurer spanning from one month to two years.

The DoF said that the suspensions were also due to their non-declaration of real property, misdeclaration of acquisition costs, the failure to submit, late filing and error in judgment in their respective SALNs.

Some were also charged due to the non-declaration of business interests, and failure to secure travel authorities.

The DoF also noted that some who were suspended will be charged with criminal cases.

“The Ombudsman found that eight BoC employees and one BIR employee committed Perjury and Falsification by Public Officer under the Revised Penal Code; and for their SALN violations, Section 7 of the Anti-Graft and Corrupt Practices Act and Section 8, in relation to Section 11, of the Code of Conduct and Ethical Standards for Public Officials and Employees which may be punished by imprisonment not exceeding five (5) years, or a fine not exceeding five thousand pesos (P5,000), or both, and, in the discretion of the court of competent jurisdiction, disqualification to hold public office.”

“For failure to secure authority to travel to Singapore, a Supervising Tax Specialist of the BoC was found guilty of Simple Dishonesty aggravated by committing it twice: from January 1993 to February 1993 and September 1995 to October 1995 and was ordered suspended for three months without pay. A City Treasurer likewise suffered the same fate,” the Finance department added.

Finance Undersecretary Bayani H. Agabin of the DoF’s legal department said earlier that they are currently conducting lifestyle checks on all employees under its umbrella, which includes the BIR, BoC, Bureau of the Treasury, Bureau of Local Government Finance, and the Securities and Exchange Commission, among others.

Last year, the DoF took similar punitive action against 14 officials and employees. — Elijah Joseph C. Tubayan

DoST hybrid train too long for Cebu’s narrow streets

THE HYBRID electric road train (e-train) developed by the Department of Science and Technology (DoST) needs modifications if it were to be used in Cebu City. Trials runs of the P45-million e-train unit deployed in the city showed that it is too long for the old city’s narrow streets. “They (DoST) designed something and they tried to see if we can use it. What they should do is look at what we need and then design something that will fit,” Mayor Tomas R. Osmeña told reporters. The e-train has five coaches that an accommodate up to 240 passengers. Mr. Osmeña suggested a two-coach unit that would be easier to maneuver. City Transportation Office Operations Chief Francisco Ouano also said that he thinks a two-coach unit would be able to navigate Cebu’s streets. Mr. Ouano said he has yet to discuss the alternatives to DoST officials assigned to the project. — The Freeman

US not ruling out eventual direct talks with NoKor

TOKYO/UNITED NATIONS — The United States is not ruling out the eventual possibility of direct talks with North Korea, Deputy Secretary of State John J. Sullivan said on Tuesday, hours after Pyongyang warned nuclear war might break out at any moment.

Talks between the adversaries have long been urged by China in particular, but Washington and its ally Japan have been reluctant to sit down at the table while Pyongyang continues to pursue a goal of developing a nuclear-tipped missile capable of hitting the United States.

“Eventually, we don’t rule out the possibility of course of direct talks,” Mr. Sullivan said in Tokyo after talks with his Japanese counterpart.

“Our focus is on diplomacy to solve this problem that is presented by the DPRK. We must, however, with our allies, Japan and South Korea and elsewhere, be prepared for the worst should diplomacy fail,” he said.

Tensions have soared following a series of weapons tests by North Korea and a string of increasingly bellicose exchanges between US President Donald J. Trump and North Korean leader Kim Jong Un.

Leaflets apparently from North Korea calling Mr. Trump a “mad dog” and depicting gruesome images of him have turned up across central Seoul in recent days, adding an unusually personal element to North Korean propaganda.

Experts say North Korea has been scrambling to find alternative sources of hard currency to keep its economy afloat and to advance its weapons program further.

North Korea’s Lazarus hacking group was likely responsible for a recent cyber heist in Taiwan, cyber-security firm BAE Systems Plc said on Monday.

Taiwan’s Central News Agency reported last week that while hackers sought to steal some $60 million from the Far Eastern Bank, all but $500,000 had been recovered by the bank.

BAE Systems and other cyber firms have previously linked Lazarus to last year’s $81 million cyber heist at Bangladesh’s central bank.

North Korea had also recently allowed citizens as young as 12 to bet on local horse races for the first time, state news agency KCNA reported.

Punters had previously risked three years of hard labor for gambling in the reclusive and tightly controlled state, but the growing importance of private markets meant more people had money to spend on leisure, experts said.

“You may have ridiculed Kim Jong Un for constructing lavish facilities while struggling to feed the people, but those things are to make foreign currency, not from foreigners but from the well-offs inside North Korea because you have to pay in US dollars or Chinese renminbi there,” said Lee Sang-keun, a researcher at the Institute of Unification Studies of Ewha Womans University in Seoul.

“Many North Koreans make lots of money from the market, dine at hamburger restaurants and go shopping, all of which help fatten regime coffers. That’s part of the reason why the regime still has some financial latitude despite international sanctions.” — Reuters

NBA Fantasy League time

The new season of the National Basketball Association (NBA) officially rolls out today and for fans engaging in fantasy leagues it takes further significance.

Not only do we get to see anew our favorite NBA stars on the court in official league games doing what they do best, but also we get to work on our “managerial skills” for 23 weeks against rival teams.

Just like in the previous years, this writer is maintaining three fantasy league teams for this season.

One is with colleagues in the office — Roadblock — and the two — Nacho’s BW Posse and BW Skychurch — are with brothers in sportswriting.

For this season, I made a conscious effort to have my top picks be top wingmen in the NBA, which I am glad to say I was able to do.

My team top picks for this year were Cleveland’s LeBron James (Roadblock), San Antonio’s Kawhi Leonard (Nacho’s BW Posse) and Golden State’s Kevin Durant (BW Skychurch).

Joining James in our 12-team, head-to-head and nine-category office league are Houston’s Chris Paul, Philadelphia’s Joel Embiid, Washington’s Otto Porter, Orlando’s Elfrid Payton and Terrence Ross, Los Angeles Lakers’ Kentavious Caldwell-Pope and Julius Randle, Portland’s Jusuf Nurkic and Maurice Harkless, New York’s Willy Hernangomez, Charlotte’s Marvin Williams and Dallas’ Wesley Matthews.

For this league I really hope I do well as sort of a bounce back after what happened last season when I led it for nearly the duration of the tournament only to falter in the end, no thanks to injuries and player shutdowns, that saw me edged out in the playoffs.

James and Paul should provide the numbers from their end albeit I am expecting they are “tempered” in a way (I hope I am wrong on this) with the composition of their respective teams.

I hope Embiid gets to play more this year as I believe he is capable of being a top 20 player in the NBA when healthy. Also I hope to stay healthy are Nurkic, Matthews and Caldwell-Pope.

Porter, Payton, Williams and Randle were steady last year which I hope they continue doing this year.

While Hernangomez, Harkless and Ross I am banking on to have brilliant plays here and there.

Over at Nacho’s BW Posse, playing in a 20-team, H-to-H and nine-cat league, I am off to a rough start as the status of Leonard is still iffy, due to the injury he suffered in the playoff last year, as the season opens.

That said, I am hoping that other guys in my team like Philadelphia’s Ben Simmons. Memphis Marc Gasol and rookies Jayson Tatum of Boston and De’Aaron Fox of Sacramento get to hold the fort until Leonard returns to the court.

Evan Fournier of Orlando, Clint Capela of Houston and Milos Teodosic of the LA Clippers are also players I am counting on to deliver.

The verdict is still out for Denver’s Kenneth Faried (What happened Manimal?) and Atlanta’s DeAndre Bembry in my team but I am hoping they can contribute so as to help me in my mission to return to the finals and redeem myself.

For Durant-led BW Skychurch, under a 20-team, four-division, H-to-H and nine-category league, I am looking to do better than the previous years where I middled at best.

With Durant are DeAndre Jordan (LA Clippers), Goran Dragic (Miami), Eric Gordon (Houston), Fox, Dirk Nowitzki (Dallas) Andre Roberson (Oklahoma City), Enes Kanter (New York), DeMarre Carroll (Brooklyn), Kelly Oubre, Jr. and Tim Frazier (Washington), J.R. Smith (Cleveland) and Al Jefferson (Indiana).

Main men as well for this team apart from Durant are Jordan and Dragic and hopefully they get to live up to that standing.

Gordon, Fox, Kanter and Nowitzki I also wish to have a solid season while Roberson and Carroll I see providing the hustle stats.

Oubre and Smith I believe can be explosive if given the minutes.

As for Jefferson and Frazier, I am wait-and-see on how they will perform this season.

The new season of the NBA is upon and fresh start in fantasy league. Hope your teams are all set to go and wishing you good luck. Enjoy, fantasy freaks!

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@www.bworldonline.com

Learn to dance with the music

Paying a visit to relatives in a small provincial town is always an interesting experience if you are a columnist desperate to find a new topic to write about. The topics I chanced upon, over bottles of beer and pulutan were not really new, but the insights I got provided additional dimensions to an earlier thesis that I had written about, namely, that there is no way corruption can be stopped in the Philippines.

The first harsh reality is that remaining squeaky clean and beyond reproach in the Philippines is a near impossibility or, at best, something for martyrs to aspire for.

Over three decades ago, I was CEO of a major advertising and public relations agency with a roster of clients to die for.

Invariably, some of the clients had PR issues that threatened their pristine corporate image. On a few occasions, the press relations specialists gave me the disturbing news that a business reporter was planning to write an unflattering piece about one of our prime clients.

Like a good CEO, my question was, “What can we do about it?

And like good press relations specialists, the response was, “We can talk to the reporter. But we will need a budget.”

I don’t recall ever having given the press relations specialists a scathing lecture on PR ethics.

In fact, like a businessman anxious to get an uncomfortable issue over with, I would tell them to “do what needs to be done and don’t bother to give me the details.”

In every case, the threat against the client vanished. I never bothered to ask the press relations specialists what they did. It sufficed that the client was happy.

Lest it be assumed that all media and journalists are on the take, allow me to relate an incident involving the late Letty Martillo-Locsin at the time that she was managing editor of Business Day (the forerunner of BusinessWorld).

Letty sent me a note, in my capacity as CEO of Advertising & Marketing Associates, that said tersely and bluntly, “Tell your client not to bribe my people.”

Disturbed, I called up Letty to ask for clarification. She told me that a member of the Marcos Cabinet, who was in the media spotlight for reportedly using government materials to build a house for his wife, had tried to bribe the Business Day reporter writing about the case. The reporter had informed management of the bribery attempt.

I told Letty that the public official involved was no longer a client of our agency but I was willing to pass on her warning to him. I added that perhaps the official was not personally aware of the attempted bribery and that a subaltern, eager to gain brownie points, could have done it on his own. I offered to get Letty through to a senior official of the department who could shed some light on the case.

I did exactly that and Letty was mollified.

But only temporarily.

A couple of weeks later, I received another note from Letty that declared, “He did it!”

Apparently, through a go-between, the official distributed envelopes to members of the press, including the Business Day reporter. The reporter promptly turned over the money to Business Day management which, in turn, donated the funds to a charity on behalf of the official. Letty’s note to me had the receipt for the donation attached.

The reason I have recounted this incident is to stress that not everyone in media can be bribed.

At any rate, over bottles of beer and pulutan, I related these incidents to my provincial relatives. But they did not even lift an eyebrow at my disclosure. For them, it was kalakaran or the way things are done in our country.

One of my relatives is a contractor with a number of small public works projects. The last time we discussed his means of livelihood, which was during the tenure of President Benigno S. C. Aquino III, he revealed that he had to part with 60% of his winning bid to land a contract.

According to him, a public works project was either the baby of the governor or the local congressman. Each had his or her own racket. The 60% was distributed from the top, which took most of the kickback, and was shared all the way down to the last signatory, aside from the folks in accounting who released the payment.

I asked him how things were in the administration of President Rodrigo Duterte, the one with the promise of “change.” He beamed and agreed that there had been a change, “The kickback is now just 50%.”

I suppose a 10% reduction of the kalakaran is better than no reduction at all.

From the remaining 50%, funds have to be allocated to the public works project, after the contractor has set aside his earnings. But what about the quality of the project? According to my relative, the overprice already allowed for reasonably good quality materials being purchased.

“It’s the country that is being milked,” he admitted quite casually.

He finally conceded that inferior materials were also purchased with whatever was left of the contract price.

And then he added, “But what choice do we have? If we don’t agree to the arrangement, we don’t get a project. On the other hand, if we cooperate, everything is facilitated, including collection. They handle all the paper work.”

His final remark was, “We have to learn to dance with the music to survive.”

Now comes the build, build, build mantra of the Duterte administration. And before that, there were the many questionable public works projects during the tenure of Aquino.

And before Aquino, Gloria Macapagal-Arroyo. And before Arroyo, Joseph Erap Estrada. And before Estrada, Fidel V. Ramos. And before Ramos, the Kamaganak, Inc. of Cory Aquino.

And we have all heard about Ferdinand and Imelda Marcos.

Are we to believe that the overseers of the multimillion-peso projects of Duterte are not making a fortune from kickbacks and overpricing?

Is it any wonder why such petty undertakings as providing plastic licenses to drivers and car registration plates to car owners take forever? Those thieves in the Land Transportation Franchising and Regulatory Board are fighting over the spoils from contracts and kickbacks from suppliers and the Department of Transportation’s various offices are in cahoots with the thieves. And if Secretary Tugade is not aware of this, he must be deaf and blind and dumb.

Over beer and pulutan, my relatives and I heaved a deep sigh, offered a toast to survival in our hapless country and conceded that they had no choice but to dance to the music the way almost everybody does.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Art in nature and the nature of art

NATURE HAS always been a major inspiration for visual artists. Here, three international artists set foot in the Philippines to showcase the art of nature according to their lenses.

EXHIBIT
Between the Sky
and Earth in Siquijor
On view until Oct. 28
Galleria Duemila

THE VOICES OF SIQUIJOR

Italian artist Viviana Riccelli finds home in the Philippines, particularly in Siquijor, the land of mystique. Between the Sky and Earth in Siquijor, on view until Oct. 28 at Galleria Duemila, explores the mystery, and, at the same time, openness of the island province.

“When I first arrived in Siquijor, and I was approaching its coast, its colors touched my heart: green, blue, turquoise, red, and yellow like the hot sun. I felt immediately that this was my place,” said Ms. Riccelli, who has studied art in Rome, Berlin, Venice, and Cairo.

She said there is something in Siquijor that captured her heart and made her stay. “I arrived in Siquijor after an attentive search, after many years of traveling and after asking myself where is the place I would like to spend the rest of my life.”

The kaleidoscopic colors of Siquijor and her journeys in her newfound home are captured on canvas. She said: “The visions and diary of this journey treads through into my art work.”

EXHIBIT
Finding Freedom
Between the Lines
On view until Nov. 10
Makati Shangri-La

CONTEMPORARY CRACKED 7

A visual pleasure that captures the meeting of west and east, Finding Freedom Between the Lines highlights the Chinese calligraphic techniques, colors, and wisdom found in art.

Taiwanese artist Yang Ding-Xian works with Western painting tools to express the ancient wisdoms of the East through a palette that simulates a garden: tranquil, green, balanced, and pleasing.

On view until Nov. 10 at Makati Shangri-La’s mezzanine, her artworks speak of life and vitality as seen in her hard stones cutting through the soft moss or mountains with pink flowers.

EXHIBIT
Limaciform
On view until Nov. 25
Silverlens Gallery

Limaciform, a collaboration between Silverlens Gallery and Jakarta’s ROH Projects, is a solo exhibition by Bandung-based artist Syaiful Garibaldi. He is not new to the local art scene as Mr. Garibaldi has been featured at Silverlens in the 2016 and 2017 editions of Art Fair Philippines.

Comprising videos, miniature sculptures, drawings, and installations, the show delves into the cycle of life and death, and the survival of organisms in an ecosystem. While we see death as terrifying, Mr. Garibaldi challenges this notion to re-contextualize how the decomposition of the flesh can also be a form of metamorphosis and reincarnation.

His works are participatory; inviting and allowing the curious audience to recreate his works, which renders them open-ended, multi-interpretational, and infinite in form and meanings. – NFPDG

Anti-terror coup helps propel PSEi for third day

GAINS in the fight against terrorism helped propel the Philippine Stock Exchange index (PSEi) yesterday past the 8,500 mark for the first time amid trading before retreating to still close at a fresh peak, adding to impetus from investor optimism over looming third-quarter corporate earnings.

The PSEi yesterday hit a high of 8,586.73 and a low of 8,484.94, surging 49.80 points or 0.59% to close at 8,497.74 and mark its third straight trading day of gains, while the broader all-shares index advanced by 20.42 points or 0.41% to end at 4,958.53. Signs of weakness emerged, however, as the six sectoral indices were equally divided between those that gained and those that lost.

“The market’s move was a reflection of increased optimism, especially as the leaders of the insurgency in Marawi were finally eliminated,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a mobile phone message on Tuesday.

“The liberation of Marawi also gives credibility to the President’s strategy and action during the conflict and should enhance investor confidence even further.”

In remarks in the battle-scarred Marawi City yesterday after the government announced on Monday the deaths of two leaders of Islamic State (IS)-inspired militants who had tried to take over the city last May 23, President Rodrigo R. Duterte said: “I hereby declare Marawi liberated from the terrorists.” The military brass, however, clarified that government forces were still mopping up 20-30 militants, including Malaysian Mahmud Ahmad, who has been tipped to take over IS’ Southeast Asian leadership after the death of Isnilon Hapilon.

Regina Capital Development Corp. Managing Director Luis A. Limlingan said via text that investors also expected generally favorable third-quarter results of listed companies that could “set the tone for trading and determine whether the lofty levels of the equity market are justified.”

Holding firms jumped 142.77 points or 1.65% to finish at 8,777.40, financials added 6.94 points to 2,071.36, while services rose by 5.78 points or 0.34% to end at 1,707.38.

Mining and oil dropped 126.50 points or 0.92% to close at 13,547.72, industrial fell by 84.43 points or 0.76% to 10,977.37, while property inched 0.41 point or 0.01% down to 3,954.33.

Stocks that declined outnumbered those that gained 121 to 88 while 42 issues were unchanged.

Trading volume doubled to 1.80 billion stocks worth P11.76 billion from Friday’s 826.16 million worth P9.56 billion. Markets were closed on Monday due to a nationwide transport strike.

Foreigners remained buyers for a third straight trading day, even as net purchase dropped by a fourth to P498.43 million from Friday’s P651.18 million.

Among Tuesday’s most active stocks, MacroAsia Corp.; SM Investments Corp.; Security Bank Corp.; GT Capital Holdings, Inc. and SM Prime Holdings, Inc. led those that gained, rising 4.77%, 2.94%, 2.69%, 2.46%, and 2.19% respectively. — Janina C. Lim with AFP

Legislation, oversight needed to address EPIRA gaps

THE LAW that restructured the energy sector and gave way to a competitive private sector driven market has yet to deliver its all-encompassing effect — reliable, secure and affordable electricity, the chairman of the Senate Committee on Energy said.

Senator Sherwin T. Gatchalian said on Tuesday his committee had identified the “gaps and limitations” in Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), noting these could be addressed through legislation and oversight.

“The metric used to determine the market share limitation should be reviewed. The law specifies installed generating capacity as the measure in computing market shares,” he told participants of a seminar on fostering competition in the power industry at the University of the Philippines’ campus in Taguig City.

However, he said this metric does not reflect the “true market power” of a company since the installed capacity is different from the power generated and injected into the grid.

Under EPIRA, market share limitations prohibit generation companies from owning more than 30% of the installed capacity of a grid and more than 25% of the installed capacity of the national grid.

“To illustrate, the share of coal in the country’s total installed capacity is approximately 35% but its share in actual generation is 48%. For natural gas, its installed capacity is only 16% but its actual generation is 22%. As a consequence, the use of installed generating capacity underestimates the true market share of a company especially if its plants have comparatively higher capacity factors,” he said.

He also cited the cross-ownership provision as another “imperfect restriction in the EPIRA.” He said there is a need to expand this to three groups of players, namely: generation companies and distribution utilities; upstream producers and the transmission concessionaire; and upstream producers and distribution utilities.

“Senate Bill No. 156 expands the EPIRA cross-ownership provision to include generation companies and distribution utilities to avoid sweetheart deals especially in light of the lack of an institutionalized competitive selection process, and lenient implementation of the associated party contracting limitation,” he said about the bill filed by Senator Joseph Victor G. Ejercito.

“New measure will also be filed to tackle cross-ownership between upstream producers and the transmission concessionaire, and upstream producers and distribution utilities. This is to prevent a situation where the transmission concessionaire or distribution utility favors a generation company that buys its energy resources such as steam, coal or oil,” Mr. Gatchalian said.

Measures will also be introduced to improve competition by allowing the entry of new generators whether it be companies, households, or communities, he said.

“Senate Bill 1439 or the Energy Virtual One Stop Act of 2017, currently on second reading facilitates the entry of new players by removing red tape in the permitting process of generation plants,” he said.

“Senate Bill No. 1308 or the Electricity Procurement Act, presently undergoing committee hearings, levels the playing field both for new and old generators by furnishing a neutral platform to bid for the uncontracted demand of distribution utilities,” he added.

Mr. Gatchalian said for nontraditional generators such as households and communities, three bills will be filed.

He said a bill on the right to own-use or self-generation will give individuals, both in the captive and contestable market, the right to generate and consume electricity using energy systems they own or lease.

Another bill that seeks to promote micro-grids will give areas not being served by a distribution utility but under its franchise the right to put up a system solely for electrification and not as a business operation, he said.

A bill will also be filed to encourage the use of embedded generation for distribution utilities as an exception to the limitation on related-party contracting, he added. — Victor V. Saulon

Made in Japan

Back in 2008, my then-65-year-old and US-based father was about to buy his very first car. He wanted a Ford Mustang, which I thought was a little impractical for his age and motoring requirements. I tried to persuade him to get a Japanese sedan (like the Toyota Camry) or SUV (like the Honda CR-V) instead. His reaction was one of disgust. He looked at me as if he would rather walk than drive a Japanese vehicle.

I told my father that Japanese cars had long overtaken their Western counterparts in terms of quality and reliability. He wasn’t convinced. In his mind, the Japanese cars of his youth were the same Japanese cars today. In the 1950s, of course, Japan-made cars were like Chinese vehicles now: inferior imitations of American and European models. You’d be crazy to pick one over a Ford or a Volkswagen.

My father refused to believe that the Japanese had improved their manufacturing processes and leapfrogged the competition in technical innovation. So he bought an American car.

Unlike my old man, I grew up in a world that already had a charitable view of Japanese product quality. As a kid, I remember receiving battery-operated toys from relatives in the US, proudly stamped “Made in Japan.” Add to this the super robot (Voltes V, Mazinger Z and company) craze in the late 1970s, and I went on to regard the Japanese as the very best engineers and inventors on the planet. That they were also particularly good at pornography was just a bonus during my adolescence.

Predictably, when I became an adult, I was biased toward Japanese products. If it says “Made in Japan,” I’m sold. I got myself a Japanese car. I didn’t mind that this hatchback had been assembled in Thailand. I also collect Seiko watches (after Casio G-Shocks), even if most of them are really made in Malaysia. As far as I’m concerned, as long as the blueprint is Japanese, the production methods are Japanese, and the factory supervisors are Japanese, they can take my money.

But something’s happening to the Japanese manufacturing industry of late. In recent years, automotive firms have been caught tampering with safety audits. They have also lied about fuel-economy figures. And a leading air bag maker has churned out faulty products with potentially fatal consequences.

And then last week, Kobe Steel, which supplies metal (steel, copper and aluminum) to Honda, Nissan and Toyota, officially admitted falsifying quality certification on materials sold to clients. In a nutshell, this means that the sheet metal ordered by a car maker doesn’t conform to R&D-stipulated standards and specifications. Which then means that certain vehicles rolling out of the production facility do not possess the structural integrity and build quality intended for them. And this has serious repercussions on the cars’ capacity to withstand crashes. Metal specs play a major part in such safety features as crumple zones. Mess with them and you mess with people’s lives.

What’s happening in Japan? Why are Japanese manufacturers suddenly becoming cheaters? How long has this been going on?

As I collect my thoughts on this topic, I realize now that I’ve had complete faith in “Made in Japan” not because of technological advancement, but because of the knowledge that the Japanese are honest, honorable people. The knowledge that they’d rather take their own lives than lie to their customers. The knowledge that you could trust them with the smallest nut and bolt on your car — even when no one’s watching.

I still believe that. I still want to believe that. I’ve had no unpleasant experiences whatsoever when it comes to Japan and its products. Okay, there was that one Seiko 5 watch whose day-date complication was broken when I received it. But like a dyed-in-the-wool Japan fan, I simply put it down to the drowsy Malaysian worker who had put it together.

I hope Japanese manufacturers get their act together sooner than later. With all the bad press they’ve been getting, I don’t know how much longer before my bubble bursts. A trip to Yoshinoya next week during my Tokyo Motor Show visit may no longer suffice to keep me mesmerized.

 

You may e-mail the author at vbsarne@visor.ph.

NPA burns mall delivery truck

GUNMEN SET on fire a 10-wheeler truck owned by a mall operator, destroying around P2 million worth of merchandise, in Malapatan town in Sarangani province on Monday. The truck is owned by the management of KCC Malls, which has several branches in central Mindanao. Chief Inspector Aldrin Gonzales, spokesman of the Regional Police Office-12, said the arsonists, armed with handguns and M16 rifles, introduced themselves as guerrillas of the New People’s Army (NPA). — philstar

See full story on https://goo.gl/QTwyUQ

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