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Tax court rejects Iloilo firm’s P282-million case

AN ILOILO-BASED microfinance company has lost an appeal to have its P282-million tax case reviewed at the Court of Tax Appeals (CTA), which lacks jurisdiction in going over the dispute.

In a decision dated June 23, the Third Division of the CTA has dismissed Lifebank Foundation, Inc.’s petition for review on its taxes amounting to P282,055,951.22 for 2009.

“The Court has no jurisdiction to review the correctness of the assessment,” the decision reads.

Lifebank is a nonstock microfinance lending company based in Iloilo City. It is engaged in “creation and support of initiatives that advance comprehensive sustainable development in rural areas.”

The petitioner appealed to the court, arguing that the formal letter of demand (FLD) or the final assessment notice (FAN) issued by the Bureau of Internal Revenue’s Regional District Office (RDO) “cannot be considered as final notice which would warrant the collection of taxes.”

“Notice is premature; and that even assuming that the FLD/FAN can be considered as the final demand, the same is void for being issued in violation of petitioner’s right to due process considering that the FLD/FAN was prepared and issued even before the PAN (preliminary assessment notice) was received by petitioner,” Lifebank claimed.

But the court said the petitioner had failed to file an appeal within 30 days from its receipt of the assessment as prescribed by the National Internal Revenue Code, rendering the assessment final and executory.

The CTA noted that Lifebank received its FLD with attached FAN on Aug. 2, 2013, but did not file its protest.

“For failure to file a protest, the assessment has attained finality by mere lapse of time,” the CTA said.

“Petitioner itself knows for a fact that it did not file any protest to the FLD/FAN to initiate the process of reinvestigation of the assessment; hence, it is illogical for it to think that the reinvestigation arose from its protest to the FLD/FAN instead of from the PAN, to which it actually filed a reply.”

“Prudence dictates that petitioner should have filed the protest on or before Sept. 2, 2013, if only to protect its interest. Petitioner simply slept on its rights,” the court further held.

“[T]he Court hereby finds it has no jurisdiction over the case as no protest was filed within the prescriptive period, thus rendering the assessment final, executory and demandable,” the decision reads.

The 17-page decision was penned by Associate Justice Lovell R. Bautista. Concurring are Associate Justices Esperanza R. Fabon-Victorino and Ma. Belen M. Ringpis-Liban. — Kristine Joy V. Patag

Eagle Cement’s move on public float rests on market strength

EAGLE CEMENT Corp.’s decision whether to raise its public float will depend on the strength of the local bourse, as it prepares to comply with the looming implementation of a 20% minimum public ownership of listed companies.

Monica L. Ang, Eagle Cement chief financial officer, said the company will decide how to go about the increase once the Securities and Exchange Commission (SEC) releases the implementing rules and regulations (IRR) of the order.

“We are expecting that with the new IRR, we’ll be required to increase our public float to 15% as the first step and then 20% in two years time. With regard to schedule whether we’ll do the 20 right away or two step 15 and 20, it is still up for discussion. It depends on market conditions,” Ms. Ang said.

The Ramon S. Ang-led cement manufacturer listed on the Philippine Stock Exchange on May 29, bidding out only 11.5% of the company’s outstanding shares to the public, or just above the SEC’s current minimum of 10%.

Based on a draft memorandum released by the SEC in June, companies applying to list on the bourse starting July will be required to have a minimum public float of 20%. Firms already listed but with a float of less than 15% will have until the end of 2018 to reach this floor, before ultimately reaching 20% by 2020.

Eagle Cement President and Chief Executive Officer John Paul L. Ang noted that the capital raised while the company complies with the SEC’s minimum requirement will be used for expansion, particularly for the acquisitions and the construction of factories.

“The plan will always be to put up something new… If we build Cebu and whatever factories we plan in the near term, we see na viable ang mga projects na ’yon (that these projects are viable),” Mr. Ang said, referring to the ongoing construction of the company’s fourth production line in Cebu, which targeted to be operational by 2020.

Ms. Ang said for an acquisition to qualify, “the area must be close to a strategic market.”

“It should also have the proper permits. It should have good standing at the compliance stage, and also the valuation — how much the owners right now are selling to us,” she said.

Eagle Cement is constructing its third production line in San Ildefonso, Bulacan, which will add 2 million metric tons (MT) to its capacity by 2018. It targets to end 2020 with a total capacity of 9.1 million MT, after finishing the construction of the fourth line in Cebu.

The company’s expansion comes amid the Duterte administration’s push for a massive P8-trillion infrastructure program.

In the first quarter of 2017, Eagle Cement booked a 30% year-on-year increase in its net income to P1.03 billion, driven by a 19% uptick in net sales to P3.17 billion. — Arra B. Francia

Snipers, bombs, mortars: Government troops adjust to urban warfare

SPRAWLED on the boarded-up balcony of a two-storey house, the barrel of his rifle poked into a hole cut in the wood, a Philippine army sniper calls for quiet before taking his shot.

“Firing,” he says evenly, before the .50 calibre shot rings out, sending tremors through the house.

He was firing at a home less than a kilometer (a half mile) away, believed to be a stronghold of Islamist militants who have been holed up in Marawi City for over five weeks.

A spotter sat next to him, with his scope set into another hole. The two spoke quietly to each other as the sniper took three more shots across the Agus river into the militant-held commercial district of Marawi, now a battleground strewn with debris from ruined buildings.

Scores of bodies are rotting in the area, and the stench mixes with the smell of gunpowder.

Thousands of soldiers are battling to retake the southern Philippine city, where militants loyal to Islamic State launched a lightning strike on May 23.

The southern Philippines has been marred for decades by insurgency and banditry. But the intensity of the battle in Marawi and the presence of foreign fighters from Indonesia, Malaysia, Yemen and Chechnya fighting alongside local militants has raised concerns that the region may be becoming a Southeast Asian hub for Islamic State as it loses ground in Iraq and Syria.

As troops poured in to contain the siege, few were expecting a slow, difficult and unfamiliar urban war.

“We are used to insurgencies…but a deployment of this magnitude, this kind of conflict is a challenge for our troops,” said Lt. Col. Christopher Tampus, one of the officers commanding ground operations in Marawi.

He said progress in clearing the city has been hindered by militant fire and booby traps like gas tanks rigged with grenades.

AS YOUNG AS 16
After weeks of military air strikes and shelling, Marawi, a lakeside city of around 200,000, is now a ghost town, its center reduced to charred rubble and hollow structures.

Buildings in the military-controlled areas of the city are still standing but deserted after residents have fled.

Authorities estimate around 100 to 120 fighters, some of them as young as 16 years, remain holed up in the commercial district of the city, down from around 500 at the beginning of the siege.

The fighters are holding around 100 hostages, according to the military, who have been forced to act as human shields, take up arms, or become sex slaves.

Military aircraft drop bombs on the militant zone almost every day. From the outskirts of the city, mortar teams take aim at what they call “ground zero,” the heart of the conflict.

“Mortars are designed to target people and smaller areas than the air strikes.” said mortar specialist Sgt. Jeffery Baybayan, as he jotted down coordinates that come crackling over a radio from an observer closer to the conflict area.

“Hitting targets accurately can be difficult and we’re expending rounds without hitting targets. We are concerned about our own troops that are very close to the enemy area,” he added, as the mortars exploded in the city, sending up plumes of thick black smoke.

‘ATROCITIES’
During the day’s battle, Mr. Tampus received reports that three civilians, trapped for weeks near the fighting, were trying to escape. Several soldiers responded to help rescue them — moving to the area in two lines along the sides of streets to avoid sniper fire.

Three civilians — two men and a woman using a walking stick — came out and sat by the side of the street once they were in the military zone.

“The bombs were so frequent coming from both sides,” said Jose Locanas, a 53-year-old Christian man trapped with his wife and friend in his house. “We were caught in the middle.”

Troops said they received word from their relatives that the three were trapped and managed to escort them out.

More than 400 people, including over 300 militants, 82 security forces and 44 civilians are known to have died in Marawi.

Some of the bodies of civilians were found decapitated and the military has warned the number of residents killed by rebel “atrocities” could rise sharply as troops retake more ground.

Every day, troops make announcements through loudspeakers for the militants to “surrender now or die.” To the trapped civilians, they offer help to get out of the conflict area.

Authorities say they believe the militants are running out of supplies and ammunition, but they say there is no deadline to retake the city.

Mr. Tampus said when troops reinforcements come into Marawi, they are initially apprehensive because of the high death toll. “But once they are here, the discipline kicks in and they are focused,” he said. — Reuters

How PSEi member stocks performed — June 30, 2017

Here’s a quick glance at how PSEi stocks fared on Friday, June 30, 2017.

 

Del Monte Pacific earnings fall 57% on impact of one-offs

DEL Monte Pacific Ltd. said earnings fell 57% in the year to April, after one-time gains in the year earlier set a high comparative base.

In a disclosure to the stock exchange on Friday, the company reported a net profit of $24.4 million, well off the year-earlier result of $57 million.

It said it incurred non-recurring writeoffs of $21.1 million after the closure of its North Carolina plant and a deferred tax write-off.

Del Monte also posted a net one-time gain of $31.7 million in the year to April 2016 from the amendment of the retirement plan of its US subsidiary Del Monte Foods, Inc. and the adjustment of working capital during the period for the North Carolina plant.

Excluding these one-off items, Del Monte said recurring profit was $45.5 million, which would have represented an 80% rise year-on-year.

Sales amounted to $2.3 billion, down 0.9% due to lower sales volumes recorded in the United States. The weak US performance was offset by robust sales in Asia, including the Philippines.

“Our business in Asia sustaines its strong momentum in the fourth quarter driven by S&W’s significant growth in North Asia and higher food service sales in the Philippines,” DMPL Managing Director and Chief Executive Officer Joselito D. Campos, Jr. was quoted as saying in a statement.

The executive noted that this was also driven by the implementation of an e-commerce channel in China through JD.com. DMPL also opened a branch in Tokyo, while eyeing the opening of stores in Shanghai and Seoul.

“Investments in new products and brand-building will continue in response to consumer demand and to secure a long term growing and profitable business. As a result, profitability in the US is likely to be impacted,” Mr. Campos said.

The company said it looks to book a profit in the current fiscal year but it did not provide a detailed estimate.

In April, the company raised around $200 million through the sale of dollar-denominated preferred shares — the first of their kind in the Philippines. Net proceeds were used to refinance the firm’s $350 million loan from BDO Unibank, Inc.

DMPL’s Philippine shares rose 10 centavos or 0.83% to P11.98 on Friday. — Arra B. Francia

GBPC’s Panay Power signs 22-month supply contract with Negros co-op

ILOILO CITY — Negros Occidental Electric Cooperative Inc. (NOCECO) yesterday signed a 22-month power purchase agreement with Panay Power Corp. (PPC), a subsidiary of Global Business Power Corp. (GBPC), for a 12-megawatt (MW) peak load supply.

Jonas F. Discaya, NOCECO general manager, said the additional supply will mostly run during peak hours from 6-8 p.m.

“But our contract is flexible so we can get from them earlier or after if the need arises,” said Mr. Discaya after yesterday’s signing ceremony.

PPC won the bid with a price of P6.37 per kilowatt-hour (kWh), lower than its competitor’s P6.55/kWh offer.

NOCECO and PPC will soon file their purchase agreement before the Energy Regulatory Commission (ERC) for approval. It will immediately take effect upon ERC’s issuance of a provisional authority.

NOCECO has about 150,000 customers in its franchise area covering the 4th, 5th and 6th districts of Negros Occidental, including the cities of Kabankalan, La Carlota and Sipalay, which are tourist destinations. Negros Occidental is also a major sugar-producing region.

Mr. Discaya said the additional power will address the growing demand in fast-developing Kabankalan, as well as ensure stable rates for consumers.

“The rate from the (power) market is very volatile, so getting power from GBPC would provide us reasonable rates,” he said.

Petronilo R. Madrid, GBPC first vice president for Panay, said the agreement marks an entry into the Negros electricity market.

“GBP has established its name in the Visayas, particularly in Central and Western Visayas. We have dreamt of reaching out to the people of Negros. And now we have gained access to another region in the country, which is the Negros Island Region,” Mr. Madrid said.

GBPC President Jaime T. Azurin, for his part, said: “We are guided as the province gears up for more infrastructure development. Infrastructure development spurs business growth, which would increase demand for electricity,” he said.

PPC operates a 72-MW diesel plant in Iloilo City, part of GBPC’s aggregate capacity of 854 MW from generation facilities in Aklan, Cebu, Iloilo, and Oriental Mindoro.

GBPC is majority-owned by Beacon PowerGen Holdings, Inc. with a 56% share, with JG Summit Holdings, Inc. holding 30%, and Meralco PowerGen Corp., 14%. — Louine Hope U. Conserva

Indonesia, Philippines jointly patrol Celebes Sea in effort to cut off militants

THE PHILIPPINES and Indonesia will jointly patrol the Celebes Sea this week to stop Islamist militants reaching the Philippines’ restive southern island of Mindanao, where rebels have seized a city, an army spokesman said on Sunday.

The joint patrol is aimed at strengthening border security and improving interoperability, military spokesman Major Ezra Balagtey said in a statement. The two countries’ warships will sail from the Philippines’ Davao City on Thursday.

“The coordinated patrol … is intended to strengthen the security of the Davao Gulf and the common boundary of the two countries in the southern archipelago, particularly along the Celebes Sea,” said Balagtey.

Regional governments fear fighters sympathetic to the Islamic State group will cross maritime borders from Malaysia and Indonesia to join rebels who seized Marawi City five weeks ago.

About 300 militants, 82 members of the Philippines’ security force and 44 civilians have been killed in fighting.

The coordinated patrol is the third in the region in a month as pirates and militants step up attacks on commercial shipping.

The Philippines was joined by the United States on Saturday to patrol southern Philippine waters. Two weeks ago, Indonesia, Malaysia and the Philippines jointly patrolled their common maritime borders in the Celebes Sea and Sulu Sea.

The latest patrol will end next week in the Indonesian city of Manado on Sulawesi island. — Reuters

Built for trail

SALOMON, the world’s leading trail running brand, has unveiled in the country its latest groundbreaking collections — SLAB and Sense — which are designed to elevate and enhance the experience of wearers of its products.

Built for maximum endurance, the new collections further enhance Salomon’s standing as a brand truly “built for trail,” catering to the needs of runners of every shape and size.

Recommended for hardcore runners and athletes, the SLAB collection features three remarkable trail running shoes made to withstand the harshest conditions.

Under the SLAB collection are S/LAB Speed, S/LAB Sense 6 and S/LAB Sense 6 SG.

The S/LAB Speed delivers a low stance, aggressive grip, and fast draining to help make the hazards of Fell Running a lot more manageable.

S/LAB Sense 6, for its part, is developed to offer extreme racing performance with zero compromise, while the S/LAB Sense 6 SG is an ideal choice for those who encounter wet and muddy trails on a regular basis.

The Sense collection, meanwhile, also boasts of a solid range of technologies meshed with lightweight design sensibilities.

Described as for city runners embarking on trail runs, the Sense collection has two designs.

Sense Pro 2 features a perfect balance on and off the trails with its light, sensitive touch and well-rounded cushioning and protection, while the Sense Marin has Sensifit technology, shock absorbing properties, and reinforced toe cap and higher lugs for long-lasting protection.

“What makes Salomon different from other brands is that it is made by people who are truly dedicated to trail running and aware of what the runners need. Athletes and designers at Salomon work together to come up with the best products,” said Jessa Runes, Salomon brand associate, during the product unveiling last week at the R.O.X. store in Bonifacio Global City in Taguig City which also served as Salomon’s launch of the 7th edition of its X-Trail Run Pilipinas in Subic later this month.

“Personally I like the SLAB collection because it’s very light and suited for dry and compact trails. It truly is top-of-the-line and I recommend it for runners and athlete for higher performance,” Miguel Lopez, noted trail runner and Salomon Philippines ambassador, for his part, said during the launch.

Salomon, exclusively distributed in the Philippines by the Primer Group of Companies, is available at SM Megamall, SM North EDSA Annex, SM Aura Premier, Glorietta 3, SM City Bacolod, SM Seaside City Cebu, Abreeza Mall, R.O.X. stores nationwide, Toby’s Mall of Asia, Olympic Village ATC, Duty Free Philippines, Duty Free Philippines, and NAIA Terminal 3. — Michael Angelo S. Murillo

The Salomon S/LAB Sense 6

CTA upholds voiding of Derek Ramsay’s tax case

By Kristine Joy V. Patag, Reporter
THE COURT of Tax Appeals (CTA) has upheld its earlier decision to withdraw the Bureau of Internal Revenue’s (BIR) P18-million tax case against actor Derek Arthur P. Ramsay.
Acting on a Petition for Review filed by the BIR, the CTA sitting as a full court has affirmed its Third Division’s decision dated Sept. 17, 2015 ordering the cancelation of the P18,230,498.46 tax case against Mr. Ramsay covering the years 2006-2009.
The BIR argued that the CTA’s Third Division “did not acquire jurisdiction over the case since the [Formal Letter of Demand (FLD)] with assessment notices became final, executory and demandable when respondent failed to file a timely protest.”
But the court held that the Petition for Review “must fail,” adding the BIR’s argument “deserves scant consideration.”
The CTA rejected BIR’s argument that it had no jurisdiction, saying the Court is authorized to review the bureau’s decisions in cases involving disputed assessment.
It also upheld Mr. Ramsay’s timely protest, noting that he received the FLD dated Feb. 27, 2012, on March 14 that year, and filed his appeal on Apr. 11.
The tax court noted further that the FLD failed to specify a demand for payment for the supposed deficiency tax within a prescribed period.
“In this case, it is evident that petitioner (BIR), having failed to demand payment within a specified period of time and to serve upon respondent the subject assessment notices, unjustifiably denied respondent of (his) right to due process,” the Court held.
“[I]n light of the foregoing considerations, the instant Petition for Review is denied for lack of merit. Accordingly, the Decision dated Sept. 17, 2015, and the Resolution dated Dec. 16, 2015, both rendered by the Court in Division, are affirmed,” the decision further reads.
The decision was penned by Associate Justice Erlinda P. Uy.

ERC extends 3 firms’ certificates of compliance

TWO power generation companies and an electric cooperative have secured an extension of their respective certificates of compliance (CoC) from the Energy Regulatory Commission (ERC), allowing them to operate for a few more years.

In a statement on Friday, the ERC identified the companies as generators Mindoro Grid Corp. and AP Renewables, Inc., and the electric cooperative as Oriental Mindoro Electric Cooperative, Inc.

The ERC said the renewal is subject to “strict compliance with financial, environmental, and technical standards.”

It said the certificates are issued in favor of a person or entity to operate a power plant or other facilities used in generation of electricity under Section 6 of Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) and Section 4 of the Implementing Rules and Regulations of EPIRA.

Mindoro Grid, which is in Igacos, Davao del Norte, operates diesel generating units with a total capacity of 7.56 megawatts (MW). The extention of its CoC allows the company to operate until May 22, 2022.

AP Renewables runs the Makban Binary geothermal power plant in Sto. Tomas, Batangas and has a capacity of 7 MW. Its certificate is extended until Nov. 6, 2021.

The Oriental Mindoro utility operates a diesel generating units with a capacity of 2.175 MW in San Teodoro, Oriental Mindoro. Its certificate is valid until until May 23, 2022.

Commissioner Alfredo J. Non, the commission’s officer-in-charge, said the renewal of the certificates “will aid in ensuring a stable and reliable power supply in the country.”

ERC said the renewal and issuance of the certificates for the three entities had been previously deferred because of the preventive suspension of ERC Chairman and Chief Executive Officer Jose Vicente B. Salazar. — Victor V. Saulon

Dasmariñas group calls Globe a ‘corporate bully’ for suing resident

AN ASSOCIATION of residents from Dasmarinas Village has hit Globe Telecom, Inc. over the suit it filed against one resident for allegedly “spreading rumors” about health hazards brought by radiation emitted by telecommunication antennas, which supposedly prevented the company from putting up cell sites within the private subdivision.

“Globe filed a P5-million lawsuit against Betty Aw for allegedly obstructing its plan to erect Globe cell sites or towers known as ODAs (Outdoor Distribution Antennae System). But the cell towers have already long been erected,” Dasma Coalition Advocating Radiation Emission Safety (DASMA CARES) and Dasma for Accountability, Transparency and Service (DASMA ACTS) said in a statement over the weekend.

The group cited that on Oct. 8, 2008, Ma. Victoria Celdran, representing the Dasmariñas Village Association, Inc. (DVAI), entered into a 10-year lease with Globe for “cellsite construction and broadband facilities” for P2 million annually and a one-time right-of-way fee of P600,000. This is renewable for another 10 years and the areas under lease are the mini park, clubhouse and pumping stations 1 and 2.

On May 15, 2012, Atty. Carlos “Charlie” P. Gatmaitan for DVAI also entered into a five-year lease with Globe for P100,000 per month, covering the sidewalks where Globe could erect ODAS. The lease, they said, which ends on May 14, 2017 but is extendible at the option of Globe, “absolutely bars other telcos” from erecting similar facilities in Dasmariñas Village.

“On May 2, 2013, Ma. Victoria P. Celdran entered into an addendum to the 2012 Contract of Lease. For an additional P100,000 per month, DVAI allowed the installation on its sidewalks of additional 31 poles, BTS antenna, equipment and cables, etc. These Contracts of Lease resulted in the present 55 Globe cell sites or towers known as ODAS spread all over Dasmariñas Village,” the group said.

DASMA CARES and DASMA ACTS also noted that Globe’s suit comes after Department of Information and Communications Technology (DICT) Secretary Rodolfo A. Salalima threatened to penalize residents and associations that “obstruct” the erection of cell towers in villages. They added that the pronouncement of Mr. Salalima, a former chief legal counsel and senior advisor of Globe as indicated in DICT’s Web site, is “in clear conflict of interest.”

NO CONSENT
The groups went on to say that the DVAI-Globe lease contracts violate section 10 of Republic Act No. 9904 or the Magna Carta For Homeowners and Homeowners Associations which, they said, bars the lease of sidewalks.

The “HLURB Locational Guidelines for Base Stations of Cellular Mobile Telephone Services and Other Wireless Communications Services” require the written consent of the homeowners whose properties are adjoining the proposed site of the base station.

“Despite repeated demands from homeowners, DVAI and Globe cannot and/or refuses to produce the required consent of the homeowner whose property adjoins the Globe ODAs within a 200 meter radius… Betty Aw is not at all intimidated by the complaint filed by a corporate bully and designed to intimidate not only the residents of Dasmariñas Village but all the people in this country who only seek to protect themselves and their families from the installation of cell sites inside residential areas that emit potentially life-threatening radiation 24/7,” the statement read.

Sought for comment, Globe Senior Vice-President for Corporate Communications Ma. Yolanda C. Crisanto said: “There is a pending case already.”

Globe Telecom filed a civil case last June 13 at the Regional Trial Court of Makati Branch 59 against Betty Aw, which also included a P500,000 claim for exemplary damages plus attorneys’ fee, for preventing construction of cell sites that kept the operator from improving mobile services within the exclusive subdivision. The P5 million covers moral damages.

The telco said it piloted the use of the ODAS technology in Dasmarinas as part of efforts to improve the mobile experience of its customers residing in the upscale subdivision.

The ODAS technology is a network of small cell sites, instead of typical macro cell sites, with shared equipment connected through fiber optic links. The solution makes use of a specialized lamp posts with radio signal transmission capability deployed along sidewalks.

The Ayala-led firm has earlier cited research from the World Health Organization and International Commission on Non-Ionizing Radiation Protection debunking claims that cell sites have adverse effects on human health. It added that the Department of Health has also ensured the Philippine Standard of thermal heat emissions from local cell sites “are at least four times lower than what has been approved globally.”

The DICT has submitted a draft executive order (EO) to President Rodrigo R. Duterte that aims to expedite the processing of permits and licenses for putting up telecom and broadcast facilities. If approved, the EO would speed up the process to seven days from the current average of eight months. — Imee Charlee C. Delavin

Charitable fashion

PEOPLE WHO work in fashion aren’t quite expected to sweat; they are to remain as pristine and polished as the clothes they make, style, or wear.

Fashion designer Dennis Lustico has worked since the 1990s, yet really shot to fame in the early 2000s when his clothes were thrown on by socialites and celebrities hopping off from one gala to another. This year, he takes on a completely new challenge by joining The Cobra Ironman 70.3, a half-triathlon race in Cebu to raise funds for Smile Train Philippines, the Philippine arm of global charity Smile Train, which helps children smile with free cleft lip and cleft palate surgeries.

According to a brochure from the charity, it has provided more than 45,000 cleft surgeries since 2001 in the country, and 16 surgeries are performed each day on the charity’s behalf in the Philippines.

Mr. Lustico was introduced to Smile Train by a friend from Cebu, but he is no stranger to medical charities, having trained as a nurse himself. In 2015, in a partnership with the National Kidney and Transplant Institute, Mr. Lustico helped design pants specifically for use by patients with catheters. In an interview with BusinessWorld, he said that he did it as a favor to a friend, whose father had kidney disease. After studies and multiple prototypes, he came up with pants that anchored the catheter to the patient’s body, for convenience and perhaps to add to the patient’s quality of life.

Points for Mr. Lustico for adding a new dimension to fashion: fashion might be liberating, and we live our lives in it, and while it speaks to the needs of the soul, far too often it ignores the simple conveniences that the body craves.

“I come from a poor province. I’m from northern Samar, one of the poorest areas in the Philippines. I think I’m no stranger to a disadvantaged way of life. Whenever I have a chance to be able to help, as long as I can do it… then I go for it,” he said.

While this might shape his outlook for charity, his choice of beneficiaries (health and medicine-related charities) is interesting (other fashion personalities devote their charitable time to concerns about heritage, poverty, or gender-related causes). “I think what I’m doing right now is a reflection of my being a nurse. Somehow, I got acquainted or [I] familiarized myself with patients, with different causes, in my time [in] the hospital.” He admits though, that he had never been able to practice professionally, his time in hospitals being limited to his internship.

Asked if he plans to possibly release a line solely devoted to raising funds for his causes, he said: “Maybe later on, no? That’s actually a good idea.” In the meantime, Mr. Lustico will donate a portion of his profits from his bags and gowns towards funding more surgeries for Smile Train.

Right now, he’s concerned about the race (to be held in August), training for more than 3-1/2 hours a day, subsisting on five, small, healthy meals a day.

As for the rest of his life in fashion, Mr. Lustico is designing his Paris Fashion Week Spring/Summer 2018 collection, in gold: think lamé and lace, inspired by Frida Kahlo. Asked if his goal for gold is related to his upcoming race, he said: “No! Far from it. My only wish is to be able to finish it.”

To support Mr. Lustico’s campaign for Smile Train and the charity itself, e-mail philippines@smiletrain.org or 0917-52TRAIN (87246). — Joseph L. Garcia

Designer Dennis Lustico wears his The Cobra Ironman 70.3 race singlet as he stands next to one of his couture creations.

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