Home Blog Page 3516

PHL stocks slump as Fitch downgrades US rating

REUTERS

PHILIPPINE SHARES fell on Wednesday on negative market sentiment after Fitch Ratings unexpectedly downgraded the United States’ credit rating.

The Philippine Stock Exchange index (PSEi) declined by 110.52 points or 1.67% to close at 6,483.28 on Wednesday, while the broader all shares index went down by 52.09 point or 1.48% to 3,463.86.

“Philippine shares along with the whole region plummeted as independent rating agency Fitch cut the rating from the top level of AAA to a notch lower at AA+,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The announcement comes after US lawmakers waited until the last moment to agree on a debt ceiling deal just this May. While the company Fitch noted steady deterioration in governance over the last 20 years,” Mr. Limlingan added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message that the local market tracked the decline of other markets following Fitch’s rating action.

Rating agency Fitch on Tuesday downgraded the US government’s top credit rating, a move that drew an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago, Reuters reported.

The rating agency first warned the US of the possible downgrade in May and maintained its position last June after the country’s debt ceiling crisis was resolved saying it intended to finalize the review in the third quarter of this year.

Asian stocks and US Treasury yields declined on Wednesday after Fitch’s move.

MSCI’s broadest index of Asia-Pacific shares slid 1.9%. Japan’s Nikkei by 1.8%, while Australian shares tumbled 2.3%.

In early European trades, the pan-region Euro Stoxx 50 futures were down 0.7%. German DAX futures and FTSE futures fell 0.8% and 0.5%, respectively.

Investors counterintuitively fled to the relative safety of sovereign debt from riskier equity markets. Treasuries, whose yields fall when prices rise, were also bought when Standard & Poor’s cut the US’ top “AAA” rating by one notch to “AA-plus” in 2011.

Back home, all sectoral indices fell on Tuesday. Mining and oil plummeted by 208.35 points or 1.98% to 10,272.38; services declined by 30.83 points or 1.94% to 1,553.84; industrials dropped by 164.84 points or 1.78% to 9,070.30; property shed 47.59 points or 1.75% to end at 2,670.95; holding firms decreased by 92.48 points or 1.45% to 6,251.39; and financials went down by 26.01 points or 1.34% to 1,910.87.

Value turnover rose to P4.23 billion on Wednesday with 787.44 million shares changing hands from the P3.96 billion with 804.27 million issues seen on Tuesday.

Decliners widely outnumbered advancers, 154 versus 27, while 47 names closed unchanged.

Net foreign selling went up to P553.02 million on Wednesday from P131.91 million on Tuesday. — A.H. Halili with Reuters

US flags blacklisted Chinese firm in Manila Bay reclamation projects

By Kyle Aristophere T. Atienza, Reporter

THE US EMBASSY in Manila has expressed concern about the environmental impacts of reclamation projects in Manila Bay and the involvement of a Chinese company that had been blacklisted by Washington.

“We have expressed concerns about the potential negative long-term and irreversible impacts on the environment, the resilience to natural hazards of Manila and nearby areas and on commerce,” embassy spokesman Kanishka Gangopadhyay said in a statement on Wednesday.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

Philippine environmentalists and scientists as well as fisherfolk have been opposing the reclamation projects, citing threats to marine ecosystems such as mangroves and wetlands and the displacement of coastal communities.

There are 22 reclamation projects in the bay, which are bounded by Metro Manila and the provinces of Bataan, Pampanga, Bulacan in central Luzon and Cavite in Southern Tagalog.

Permits for the projects were completed from 2019 to 2021 under the administration of former President Rodrigo R. Duterte, who led a foreign policy pivot to China in exchange for investment pledges, few of which had materialized.

The US Embassy also raised concerns about the projects’ ties to China Communications Construction Co., “which has been added to the US Department of Commerce’s entity list for its role in helping the Chinese military construct and militarize artificial islands in the South China Sea.”

It said the company, which is controlled by the Chinese government, has also been cited by the World Bank and Asian Development Bank for engaging in fraudulent business practices.

“We continue to support high-quality, sustainable and transparent investments to benefit the Filipino people and will continue to engage with the appropriate authorities on this matter.”

The embassy said it is in regular discussions with the Philippine government regarding the reclamation projects.

Earlier in the day, Environment Secretary Maria Antonia Yulo-Loyzaga said geological hazards should be considered in assessing the reclamation projects in Manila Bay.

She said the project proponents had failed to include the possible impacts of the movement of the Manila Trench, an oceanic trench in the Pacific Ocean located west of the islands of Luzon and Mindoro.

“It is in Manila Bay,” Ms. Loyzaga told a news briefing. “That is the geological event we are looking at in terms of generation of a potential tsunami. I haven’t seen this in the studies submitted by the proponents.”

The Environment chief said the reclamation projects might also hinder relief and rescue efforts should a 7.2-magnitude earthquake dubbed as the “Big One” hit Metro Manila.

“The Big One actually has a situation wherein Metro Manila will be separated into four segments — the coastal areas facing Manila Bay will be among those that will be affected,” she said. “Rescue and relief operations were meant to come by air and by sea. So reclamation projects could possibly have an impact on that plan.”

Ms. Loyzaga said the rising sea level should likewise be considered in assessing the projects.

“All of these need to be taken into consideration in terms of scenarios for reclamation, as well as the subsidence that is ongoing because of the extraction of groundwater from the coastal areas of Manila Bay.”

Citing its study on the rising sea level, Greenpeace Philippines in 2022 said as much as 80% of Manila, the Philippine capital, could be submerged by 2030.

Ms. Loyzaga said her agency has yet to conduct a cumulative impact assessment of the reclamation projects.

The Environment department is tapping various scientists and engineers, including physical and chemical oceanographers, fishery experts and marine biologists.

“We need certain types of engineers in terms of the evaluation of the potential infrastructure that will be introduced,” she said. “The composition of the cumulative impact assessment team would not be easy.”

She said reclamation has economic value. “However, we need to do the cost-benefit analysis in terms of impacts on geology and the longer-term impacts in terms of what could result from climate change.”

Police raid POGO in Pasay allegedly involved in scams

AUTHORITIES on Tuesday raided the office of a Philippine offshore gaming operator (POGO) service provider near the capital that was allegedly involved in scams, according to the Department of Justice (DoJ).

Most of the 650 workers found in the office were Filipino, Justice Undersecretary Nicholas Ty, who leads the Inter-Agency Council Against Trafficking, told a Senate hearing on Wednesday.

The company, SA Rivendell Global Support, is located at Zamora corner Gaitos Street in Pasay City and was said to be conducting scam activities. The Philippine Amusement and Gaming Corp. (Pagcor) recognizes SA Rivendell as a POGO customer relations service provider.

Mr. Ty said about 180 workers were foreigners, mostly Chinese.

Senator Ana Theresia “Risa” Hontiveros-Baraquel told the hearing the POGO facility in Pasay had a layout similar to the POGO in Las Piñas City that police raided on June 27.

Police rescued more than 2,000 Filipino and foreign workers from the POGO facility than ran an online casino. Ms. Hontiveros-Baraquel said the Pasay hub focused on scams instead of gambling.

Workers at the Pasay hub were caught engaging in illegal online activities such as love scams, online game manipulations and other forms of investment fraud, the lawmaker said, citing the inter-agency task force.

The task force in a separate statement said the only difference between the Pasay and Las Piñas hubs was the absence of a detention and punishment facility since the scammers were allowed to go home.

Investigators also discovered a corporate setup at the Pasay hub, it added.

Pagcor Assistant Vice President Jessa Fernandez told senators they inspect POGO companies twice a week. They last inspected SA Rivendell, which was registered as a customer relations service provider, on July 26.

She cited paraphernalia that indicated signs of illegal activities.

Senator Sherwin T. Gatchalian in March urged local governments to ban Philippine offshore gaming operators to protect them from crimes.

“Once crime happens in your jurisdiction, it’s the mayor’s responsibility and the local chief of police’s responsibility,” he said in a statement. “So, it becomes a local issue, and it becomes the problem of the community.”

He said some local governments that are POGO hubs have begun to doubt the benefits of these mostly Chinese online gambling operators on their economy. These include the cities of Manila, Pasay and Parañaque, he added.

Mr. Gatchalian said Pasig City was the first to approve an ordinance banning POGOs after seeing that the social costs outweigh the benefits.

The senator, whose ways and means committee probed POGO operations in the country, said he would urge the Executive department to ban them.

Lawmakers have sought to ban mostly Chinese gaming companies that operate online casinos, which proliferated during the term of ex-President Rodrigo R. Duterte, saying these have become breeding grounds for illegal activities including kidnapping and money laundering. — Norman P. Aquino and Jan Jiminel Cacdac

Philippines to prioritize solid waste in EU’s €60-million green program

REUTERS

THE PHILIPPINE Environment department would prioritize solid waste management under a €60-million (P3.6 billion) green economy program of the European Union (EU).

The agency seeks to harness the potential of a 2022 law that requires big companies to recover their plastic waste, Environment Secretary Maria Yulo-Loyzaga told a news briefing on Wednesday.

“The mitigation aspect in terms of the green economy program in the Philippines really comes from the management of our solid waste,” she said. The government would revisit “solid waste ecological laws” and the Extended Producers’ Responsibility law “to see how we can make [them] relevant to our climate change mitigation purposes.”

The agency signed a joint declaration for the green economy program during the visit of European Commission President Ursula von der Leyen earlier this week.

The Philippines generates about 61,000 metric tons of solid waste daily, 24% of which are plastic wastes, Ms. Loyzaga said. “We consume and utilize over 160 million plastic sachet packets daily and, of course, over 40 million shopping bags and thin film bags.”

The Environment chief the solid waste management campaign would require a “whole-of-society approach.” “That means the private sector needs to be involved. Local government units will be on the frontline.”

Ms. Loyzaga said they have identified 10 local government units that will be considered for the European grant that will cover the circular economy, solid waste management and climate change mitigation measures.

She said details of the proposed projects still have to be worked out and defended at the National Economic Development Authority (NEDA) – Investment Coordinating Committee.

“We’re in the process of actually putting the necessary documentation together,” she said.  “We are targeting to have all our submissions ready hopefully for assessment by the NEDA board by November.”

Highly urbanized local governments being considered include the cities of Baguio, Pasig, Quezon, Caloocan, Davao, Ormoc, Samal, Metro Iloilo and the islands of Palawan and Siargao.

Ms. Loyzaga said local governments are the frontliners in solid waste management efforts in the country, particularly in controlling methane releases from solid waste landfills. — K.A.T. Atienza

Missing Philippine Cessna 152 found in Luna, Apayao province

PHOTO shows search and retrieval operations for the Cessna plane that crashed in Apayao province in northern Philippines. — PTV/JC MARQUEZ

PHILIPPINE authorities on Wednesday said the crash site of a missing Cessna plane that went missing on Tuesday had been found in Luna, Apayao north of the country.

Search and retrieval operations had started, the Civil Aviation Authority of the Philippines (CAAP) said in a statement.

The Cessna plane 152, registered as RP-C8958, went missing after leaving Laoag International Airport in Ilocos Norte on Tuesday afternoon.

The aircraft, operated by Echo Air, was carrying a pilot instructor and a student pilot. Its planned route included a touch-and-go activity at the Cauayan Airport before its final destination at Tuguegarao Airport, CAAP said.

The aircraft’s last known position was 32 nautical miles northwest of Alcala, Cagayan province, it added.

The Cessna 152, a popular American two-seater general aviation airplane, is popular in flight training and personal flights.

Another aircraft with registration number RP-C9062 that left Laoag International Airport minutes before the missing aircraft successfully landed at Tuguegarao Airport at 1:09 p.m. on the same day.

This prompted CAAP to issue an uncertainty message at 2:49 p.m. on Aug. 1.  The message was upgraded to alert phase an hour later and to distress phase at 4:23 p.m.

The National Disaster Risk Reduction and Management Council, Philippine Air Force and Philippine Army later launched ground search operations.

A missionary chopper flight also attempted a search and rescue operation but was forced to abort due to bad weather.

The Philippine Coast Guard on Wednesday conducted an aerial search from Tuguegarao Airport, but bad weather also forced its helicopter to abort the mission. — NPA

Doksuri deaths climb to 27

THE DEATH toll from Typhoon Doksuri, locally named Egay, has climbed to 27 after authorities reported two more deaths. 

More than 50 people were hurt, while 20 were still missing, the National Disaster Risk Reduction Management Council (NDRRMC) said in a report on Wednesday. 

About 2.89 million people from 766,789 families in 13 regions were affected by the super typhoon. 

The agency said 154 cities and municipalities have been placed under a state of calamity. 

Meanwhile, the Agriculture department in a separate report said farm damage had reached P3.17 billion. — SJT

Irrigation projects flagged 

SENATOR Rafael “Raffy” T. Tulfo on Wednesday listed what he said were hundreds of millions of pesos worth of anomalous irrigation projects that continue to get government funding despite years of having been delayed. 

During a hearing, the senator said the National Irrigation Administration (NIA) had a 1% accomplishment rate even if it has been receiving enough budget. 

Mr. Tulfo cited the decades-old Balog-Balog multipurpose project in Tarlac province that started during the presidency of the Corazon C. Aquino. The project received P12 billion in appropriations from 2013 to 2022, he said. 

The Bulo small reservoir irrigation project in Bulacan, which has yet to be completed, received a P990-million funding in 2015, the senator said. 

The Marimay small irrigation project in Apayao, which got P650 million in 2015, also has yet to be finished, Mr. Tulfo said. — J.J. Cacdac

More buses during holidays 

THE LAND Transportation Franchising and Regulatory Board (LTFRB) on Wednesday said it would increase public utility buses (PUB) that will be issued special permits on special holidays starting Aug. 14.  

The agency has issued a memo that also extends the year model of buses that will be allowed to operate to 14 from 10 years, it said in a statement. 

It will also increase the buses with special permits to 30% from 25% of the total number of units of an applicant under the same route. 

LTFRB Chairman Teofilo E. Guadiz III said the new rules would make it more convenient for commuters. 

The special permits for the Christmas holidays will be effective from Dec. 23 to Jan. 3 and from Palm Sunday to the day after Easter Sunday for the Holy Week. — Justine Irish D. Tabile

Defective ceramic tiles seized 

THE DEPARTMENT of Trade and Industry (DTI) has seized more than P1.7 million worth of noncompliant ceramic tiles and vape products after enforcement operations in Marikina City.  

In a statement on Wednesday, the agency said it had confiscated 15,073 units of uncertified ceramic tiles worth P1.69 million after inspecting 20 companies. Three of the 20 companies were issued notices of violation.  

DTI also confiscated 41 units of vape products worth P14,250 after inspecting seven vape shops selling vaporized nicotine, nonnicotine and novel tobacco products. — Revin Mikhael D. Ochave

Typhoon funds ordered released 

BAGUIO CITY — The Department of Human Settlements and Urban Development has ordered the release of cash assistance to families who lost their homes to Super Typhoon Doksuri, locally named Egay. 

Almost 2,000 houses had been damaged by the typhoon, mostly from the Ilocos region, Cagayan Valley and Cordillera Administrative Region, it said in a statement on Wednesday. 

Human Settlements Secretary Jose Rizalino Acuzar has ordered his subordinates to start releasing the funds to regional offices affected by the typhoon. — Artemio A. Dumlao

Gov’t told to jail onion riggers

BUREAU OF CUSTOMS

THE PHILIPPINE government should ensure the prosecution and punishment of people who colluded to rig the prices of onions at the start of the year, In Defense of Human Rights and Dignity Movement said on Wednesday.  

“We support the imposition of the full weight of the law on the officials being investigated, criminal prosecution of those involved and a lifetime ban on their employment in government,” it said in a Twitter message.  

Ombudsman Samuel R. Martires has ordered the suspension of Agriculture and Food Terminal, Inc. officials for violating the Procurement law in the delivery of 8,845 bags of onions to Kadiwa food outlets, which sells farm products to the poor.  

“Kadiwa has provided an opportunity for corruption and irregularities so It should be fully investigated as well,” the group said. — John Victor D. Ordoñez 

CHED officials appointed

PRESIDENT Ferdinand R. Marcos, Jr. has appointed three new officials of the Commission on Higher Education (CHED), the agency said in a statement on Wednesday. 

Named directors IV were Iloilo Science and Technology University President Raul Muyong, Corinna Frances Cabanilla and Christine Ferrer. 

Ms. Cabanilla served as director-in-charge of the local graduate scholarship programs of CHED for faculty members, while Ms. Ferrer is a faculty of the College of Education of the Tarlac Agricultural University.