Home Blog Page 3629

SEC: Companies may now amend incorporation online

THE Securities and Exchange Commission (SEC) announced on Thursday that corporations can now use its online portal to amend their incorporation papers, aligning with its efforts for streamlining and automation.

Applications for amendments to a corporation’s articles of incorporation (AoI) and bylaws can be made through the electronic application for modification of entity data (eAMEND) portal starting Feb. 23, the SEC said in a statement.

“The eAMEND Portal is the commission’s newest innovation that will make filing documents faster, easier, and more efficient for the transacting public,” SEC Chairperson Emilio B. Aquino said.

Applications have two classifications: those that will be issued a digital certificate and those that will be given original certification.

The first classification applies to applications for amendment of the AoI and/or bylaws by domestic stock and nonstock corporations. These include changes in the principal office address, an increase or decrease in the number of directors or trustees on the board, fiscal year adjustments for one-person corporations (OPC), the deletion or addition of new provisions in their existing AoI, as well as modifications to the date of the annual meeting of stockholders or members and the fiscal year.

The applications should be filed together with supporting documents. Upon payment, the corporation will receive the digital certificate of filing of amendment via the eAMEND portal.

On the other hand, applications that will be given original certification include the amendment of partnership, dissolution of partnership, conversion of OPC to an ordinary stock corporation and vice versa, and increase of capital stock of an OPC via cash.

Also included under this classification are changes in provisions regarding purposes, capitalization, and reclassification of shares of corporations, as well as other amendments to the articles of incorporation not covered in the first classification.

“The original certificate shall be issued only upon submission of the hard copies of application documents and after payment has been made. No digital certificate shall be issued for applications under this classification,” the SEC said.

Meanwhile, the SEC will automatically purge applications for failure to provide the required details and upload the documentary requirements; failure to comply with the compliance order from the receipt of e-mail notification, in cases of incomplete or noncompliant submission; and failure to pay the amendment fees, within 60, 30, and 45 calendar days, respectively.

“Applications may likewise be cancelled by the commission upon non-submission of documentary requirements and noncompliance with any lawful order of the SEC, in instances of incomplete requirements and/or inconsistent entries in the documents provided,” the commission said. — Revin Mikhael D. Ochave

High rates to continue affecting BPI’s margins

REUTERS

BANK of the Philippine Islands (BPI) expects its margins to be affected by the lagged effect of the central bank’s cumulative benchmark interest rate hikes in the last two years, an official said.

“There are many things that are expected to affect our margins. The rate effects are one thing,” BPI Chief Finance Officer Eric Roberto M. Luchangco said at a briefing on Thursday.

The Bangko Sentral ng Pilipinas (BSP) raised borrowing costs by a cumulative 450 basis points from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

Still, the impact of the central bank’s tightening on BPI’s margins could be offset by efforts to increase the share of consumer loans in its portfolio, Mr. Luchangco added.

“We’re also looking to increase the percentage of consumer loans in our loan book. Consumer loans are higher-yielding loans, so that will kind of lift up the interest earned by the bank,” he said.

Under BPI’s base case scenario, they expect the BSP to implement its first rate cut by July, he added.

BPI’s net interest margin stood at 4.09% in 2023, while its net interest income rose by 22.7% P104.4 billion.

BPI Chief Credit Officer Joseph Anthony M. Alonso told reporters at the same event that the lender targets to increase consumer loans to comprise 50% of its loan book from the current 25-30% share.

BPI’s net income rose by 44.3% to P13.1 billion in the fourth quarter of 2023, bringing its full-year net profit to P51.7 billion, up by 30.5%.

Its shares went down by P1 or 0.83% to end at P119 apiece on Thursday. — AMCS

Aerosmith’s Steven Tyler wins dismissal of sexual assault lawsuit

STEVEN TYLER in a publicity still from American Idol where he served as a judge. —IMDB.COM

NEW YORK — A US judge on Wednesday dismissed a lawsuit accusing Aerosmith frontman Steven Tyler of sexually assaulting a former teenage model twice in one day in Manhattan nearly 50 years ago.

US District Judge Lewis Kaplan in Manhattan said Jeanne Bellino waited too long to sue the 75-year-old Mr. Tyler, who has “vehemently” denied her allegations, under a New York City law protecting victims of gender-motivated violence.

The judge said Ms. Bellino did not qualify for a two-year window to pursue claims that would otherwise extend beyond statutes of limitations, because she did not allege that Mr. Tyler’s conduct posed a “serious risk of physical injury.”

And in a ruling that could affect other cases, Mr. Kaplan said two state laws, the Child Victims Act and Adult Survivors Act, preempted Ms. Bellino’s claim, “substantially for the reasons” given by Mr. Tyler’s lawyers.

The lawyers said those laws, whose windows to sue have expired, “occupy the field regarding the revival of claims derived from state penal sexual assault law,” and Ms. Bellino showed a “lack of diligence” by not suing under the Child Victims Act.

A lawyer for Ms. Bellino did not immediately respond to requests for comment.

David Long-Daniels, a lawyer for Mr. Tyler, said: “We agree with the judge’s reasoning, and are grateful for this result on behalf of our client.”

Ms. Bellino said she was 17 in the summer of 1975 when a friend arranged for her to meet Aerosmith after a Manhattan fashion show.

She alleged that as she walked down the street with Mr. Tyler and his entourage, Mr. Tyler, then 27, forced her into a phone booth where he groped her, engaged in simulated sex and put his tongue down her throat, as others stood by laughing.

Ms. Bellino said that because she was sharing costs with the friend to ride home to Queens, she went with the entourage to the Warwick Hotel, where Mr. Tyler allegedly pinned her against a well and again assaulted her.

Mr. Tyler has also defended against a lawsuit in Los Angeles, where another woman, Julia Misley, claimed he sexually assaulted her in 1973 when she was 16 and he was 25. Ms. Bellino’s law firm has represented Ms. Misley in that case. — Reuters

GoTyme Bank to launch more ATMs, products

GOTYME BANK is looking to roll out more automated teller machines (ATMs) throughout the country and additional products this year.

Gigi Puno, head of technology at GoTyme, said in an online event on Thursday that the bank has evolved into a phygital (physical digital) lender as it is the first neobank to introduce ATMs.

“We’re not stopping with just one ATM. We’re expanding our network to give (customers) even more access and convenience for cash outs,” she said.

“In fact, by end of this year, you can expect to see several strategically located ATMs across key areas of the country such as malls, transportation terminals, groceries, offices, and tourist spots,” she said.

She said GoTyme aims to bridge the gap between digital convenience and tangible accessibility.

“Ultimately, our goal is to provide you with unparalleled accessibility to free withdrawals, ensuring that your banking experience is as seamless and hassle-free as possible,” she said.

GoTyme Bank is rolling out ATMs in partnership with Euronet Technology Service, Inc.

“GoTyme Bank, through our partnership, is able to leverage our unique platform to accelerate physical deployment of ATMs throughout the country,” Sriram Jayakumar, managing director of Euronet, said.

“The entire ATM channel management ranging from site selection and deployment, site contracts, cash logistics to transaction reconciliation, is managed seamlessly by Euronet, thereby allowing tremendous flexibility for GoTyme Bank to scale up its network,” he added.

Meanwhile, GoTyme Bank Co-Chief Executive Officer (CEO) Albert Raymund O. Tinio said the bank is launching more products, features and services for its customers.

He said GoTyme Bank will be offering a savings interest rate of 4% per annum effective March 1.

“As we bring the banking experience to even greater heights, we’re introducing an industry-first offering: a multi-currency time deposit, starting with the US dollar,” Mr. Tinio said.

“Unlike traditional banks that often require a minimum investment of $1,000, we’re breaking down barriers by allowing you to start investing with only a dollar with an interest rate of 3% for three months, and 3.5% for six months,” he said.

Users can also generate bank statements or bank certificates through the lender’s mobile app, he said. It is also upgrading its scan-to-pay QR (quick response) payment features and expanding its deposit and withdrawal network.

Consumers can earn reward points to pay for purchases, bills, and buy load. Credit card billers will also be a part of the bank’s Pay Bill feature in the coming weeks.

GoTyme President and CEO Nathaniel D. Clarke said banks are not properly addressing Filipino customers’ demand for better banking experiences.

“At GoTyme Bank, we set out to fill that gap by delighting our customers through a banking experience that is simple, beautiful, and rewarding,” he said.

“In 2024, we plan to bring more products and features while continuing to deliver the beautiful experience that you’ve grown to love and trust from GoTyme Bank,” Mr. Clarke said.

The bank recorded a total of 2.5 million customers just 15 months after its launch. It is also the seventh bank in terms of InstaPay transactions as of January 2024.

The digital lender is also the fourth bank in terms of monthly active users as of January, based on data from App Annie, a mobile data and analytics platform.

GoTyme is one of the six licensed digital banks in the country, with the others being Tonik Digital Bank, Inc., Maya Bank, Overseas Filipino Bank, UNObank, and UnionDigital. — Keisha B. Ta-asan

ERC says Meralco’s LNG cost refund likely in April

BW FILE PHOTO

THE Energy Regulatory Commission (ERC) on Thursday said the costs passed on to consumers by Manila Electric Co. (Meralco) due to the increased use of imported liquefied natural gas (LNG) will likely be refunded in April once deemed unjustified.

Meralco submitted a motion of confirmation on Feb. 19 for the validated imported LNG costs, which manifested in February’s billing, ERC Chairperson Monalisa C. Dimalanta told reporters.

“It may not reach March billing because [Meralco] just filed on Monday, so it will not be included in our Commission meeting this week… I don’t know if it will reach the billing because Meralco ends its billing [period] early… maybe in April,” she said.

In February, Meralco announced a power rate increase by P0.5738 per kilowatt-hour (kWh), citing higher generation charges from power supply agreements and independent power producers (IPPs).

The rise in IPP charges was primarily due to increased fuel costs at the Sta. Rita and San Lorenzo power plants operated by First Gas Power Corp., mainly stemming from the heightened usage of imported LNG.

“They [Meralco] will also refund it if we rule that there is no basis for it. In that sense, any refund will wait for our ruling which we hope to determine and issue soon,” Ms. Dimalanta said in a Viber message.

Ms. Dimalanta noted that refunds due to the Malampaya gas price increase will commence in March as “that’s what Meralco said they have not validated.”

The price of Malampaya gas to Sta. Rita surged by nearly 12%, following the signing of a new gas supply and purchase agreement between First Gas Corp. and Malampaya consortium. The Malampaya gas price to San Lorenzo rose by less than 2%, according to Meralco.

Meralco approximated that the refund will range between four to five centavos per kWh.

The power distributor expressed readiness to issue refunds to consumers after seeking ERC guidance on addressing the fuel cost increase from one of its suppliers.

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

Indian fintech is fast, furious — and fraudulent?

PRESSFOTO-FREEPIK

FIRST, Paytm was asked to freeze its banking business, a crackdown so severe that India’s pioneering digital payments firm bled out nearly 60% of its market value in two weeks. Then came the regulatory diktat to Visa, Inc. The network was told to halt the use of its business cards for commercial payments where a fintech is in the middle. And now, media reports suggest that more nonbank intermediaries may expect a rap on the knuckles. Just what has made the Reserve Bank of India (RBI) so cranky all of a sudden?

The answer to that question may lie in the cloud. Or, to be more precise, in cloud computing.

The growth of neo-banking is courtesy of Amazon Web Services, which has allowed the world’s most-populous nation to move very large numbers of small payments instantaneously. However, fast and furious has also created more room for fraud in a country where documentation has always been patchy. Even “Aadhaar,” the biometrics-based unique number and card through which Indians are supposed to establish who they are, is not to be relied upon as proof of date of birth, the manager of the world’s largest identity project said recently.

Know-your-customer, or KYC, regulations aren’t easy anywhere. But fintech adoption in India has done more than just open the floodgates to financial inclusion. The cloud has added complexity — and risk — to the landscape. Three years ago, Sunny Leone, a Bollywood actress, was scammed by someone using only her name and her tax identity number to take out a $27 ghost loan that ended up spoiling her credit score. All other data, including her address, phone number, e-mail, date of birth, and bank account, were fake, according to a report by The Ken, a news website.

If individual KYC is this sketchy, the process of onboarding businesses isn’t ironclad, either. It used to be that only large retailers accepted online payments, as cards were too expensive for small players. But now more than 50 million merchants accept QR code-based settlements over a ubiquitous smartphone-based protocol known as Unified Payments Interface (UPI). UPI logged more than 100 billion transactions last year, among the fastest-growing account-to-account systems alongside Brazil’s PIX, a later entrant.

But who exactly are the merchants that are accepting money online? What fintech intermediaries have done is something innovative. They have established virtual addresses — such as “amazon@pockets” — as legitimate payees. However, the regulator will have a problem if the bank account linked to that ID has been opened by Ckjxh Fiddbh, which doesn’t appear to be a genuine name. (The example, though, is real. I have borrowed it from security researcher Karan Saini’s investigative work last year.)

Fintech firms that give apps to consumers and QR codes to merchants ensure speed by putting their computing operations in the cloud, where activity can be scaled up quickly without having to invest in on-premise servers. However, at the two bookends of any transaction, there are deposit-taking institutions, one for the payer to send money and the other for the payee to receive the funds. They’re trying to cope with the surge in volumes with core banking software running on IBM mainframe computers.

This two-speed system doesn’t work when traditional players have to handle a huge number of small debits quickly. Which is why, for merchant payments, the likes of Paytm maintain so-called nodal accounts with depository institutions. Banks manage the pressure on their infrastructure by recording debits only when customers load their wallets, and not every time they use their apps at a shop.

Think of the nodal accounts as shock absorbers, says Bengaluru-based fintech consultant Anand Venkatanarayanan. They process payments in real time in the cloud, and hand them to the merchants’ bank accounts — over the core banking system — in a day or two. But in this system, authorities are bound to have niggling doubts about who is passing money to whom behind a node. The merchant’s KYC approval means very little. It is this discomfort that’s visible in the RBI’s recent action.  While freezing fresh credits into Paytm Payments Bank accounts for “persistent non-compliances and continued material supervisory concerns,” the regulator mandated that the bank terminate the nodal accounts of One 97 Communications Ltd., the publicly traded entity, and Paytm Payments Services Ltd., a subsidiary, “at the earliest.”

As a senior payments-industry professional in Mumbai explained to me, the RBI’s concerns with corporate credit cards may be similar. Why would any merchant pay a 1% fee to a fintech to move its card balance to its bank account, unless they are unauthorized lenders, flipping the money over to a borrower who has agreed to pay 2%? Mind you, the actual activity that’s being financed may not be illegal: In a rapidly digitizing economy, a lot of e-commerce inventory needs storage. Walmart, Inc.-owned Flipkart and Amazon.com, Inc. aren’t allowed by Indian law to carry their own stock. But someone has to.

Yet, even innocuous supply-chain financing is risky when it hides in the dark. With the formal banking system facing a liquidity shortage, the monetary authority may not be comfortable with loans in the economy rising faster than deposits.

The RBI has tried to license nodal-account operators as payment aggregators, so it can have oversight on these fintech firms. Still, no matter what it does, the regulator may always find itself a little out of touch.

Three fundamental sources of infirmity need fixing. First, the know-your-customer process needs a more solid underpinning: If Aadhaar is here to stay, it must be made credible and secure. Second, 40% of payments are digital, but they have their origin and destination in a banking system that earns very little from it. Since most UPI transactions are free, traditional lenders have little incentive to shorten their technology-upgrade cycle. Third, the National Payments Corp. of India, which runs the UPI, is a monopoly. What is fast and furious will inevitably be more than a little fraudulent as long as the country’s preferred system for moving money online is devoid of fair charges — and free from competition.

BLOOMBERG OPINION

Berlinale honoree Scorsese ponders switch from gangsters to Jesus

WILLEM DAFOE in a scene from Martin Scorsese’s 1988 film, The Last Temptation of Christ. Mr. Scorsese said he is mulling ways of making another film on Jesus after having had some meetings with Pope Francis. —IMDB.COM

BERLIN — Martin Scorsese, in Berlin to receive a lifetime achievement award from the city’s film festival weeks before his latest movie, Killers of the Flower Moon, will be competing at the Oscars with 10 nominations, is already planning his next project.

The director, who as a young man considered a priestly vocation before becoming cinema’s most famous maker of gangster movies, said that after some meetings with Pope Francis he was mulling ways of making a film on Jesus, although the project’s contours were not yet clear.

“(The Pope) called at one point at a meeting for fresher ways of thinking about the essentials of Christianity,” the 81-year-old filmmaker told a news conference. “I want to make something unique and different that could be thought-provoking.”

Such a project would be his second look at the foundations of Christianity after 1988’s The Last Temptation of Christ, which emphasized the human frailty of Jesus and was banned in some countries and brought Mr. Scorsese death threats.

The Berlinale’s Honorary Golden Bear was intended partly to honor Mr. Scorsese’s work preserving old films for posterity, said Rainer Rother of the German Cinemathek. The preservation project has been driven by him and fellow directors/screenwriters Steven Spielberg, Paul Schrader, and Jay Cocks since the 1970s.

“It was a great difficulty finding good copies of films,” Mr. Scorsese recalled, describing how pre-war films were often too damaged to be played in the 1970s, and that only British and a small subset of French and Italian films were easily available to his group of enthusiastic New Yorkers in that era.

“But now you have 100 years of cinema,” he said. “You have films from the 1930s… You have everything from the 1950s. You have it from all the other countries in the world.”

Current favorites for him include some Japanese cinema, Celine Song’s Past Lives, and Wim Wenders’ Perfect Days, he said.

Looking forward after six decades in the business, Mr. Scorsese said cinema was resilient enough to cope with technological change.

“I don’t think it’s dying… It’s transforming,” he said. “The individual voice can express itself on TikTok or in a four-hour film or a two-hour miniseries… I don’t think we should let the technology scare us.”

For Mr. Scorsese personally, it was important to make good use of the time he has left, he added wistfully.

“I became very sad to realize, of course, the impermanence of life, as we all know, but does it have to be that impermanent so soon?” he asked. “In the meantime, we’re all here. We’re all here. So let’s communicate. Let’s communicate through art.” — Reuters

Real-time customer experience

According to a Gartner study, feedback obtained during a consumer touchpoint yields results that are 40% more accurate than input obtained 24 hours later. Because of this, in today’s digital environment, real-time customer experience has become an essential component of business operations. It speaks to businesses’ capacity to interact with clients instantly and customize experiences using data and insights obtained in real time. This strategy tries to provide individualized, pertinent, and seamless experiences across all touchpoints while acknowledging the changing nature of consumer preferences, habits, and demands.

In the age of hyperconnectivity and instant gratification, people expect businesses to anticipate their requirements and deliver prompt solutions. Meeting these expectations through the use of technology and data to provide timely and relevant interactions is known as real-time customer experience (CX). Whether it is answering questions on social media, making product recommendations based on past browsing activity, or using live chat to address problems, real-time engagement helps businesses build closer bonds with their clients and increase customer loyalty.

Achieving real-time CX requires a strategic approach that covers technology, data analytics, and organizational alignment. First, companies require a strong data infrastructure in order to gather, process, and evaluate client data instantly. To gather information about consumer preferences and behavior patterns, this entails utilizing a variety of sources, including transactional data, social media interactions, and website behavior.

Next, in order to process massive volumes of data fast and provide insights that can be put to use, businesses must therefore invest in machine learning algorithms and advanced analytics technologies. Businesses can proactively provide customized advice or solutions in real-time by anticipating client needs and utilizing predictive analytics.

Moreover, providing flawless real-time CX requires organizational alignment. To guarantee a consistent customer experience across all touchpoints, departments from several divisions within the company, such as marketing, sales, customer service, and IT, must collaborate effectively. To facilitate real-time data sharing and communication, this entails dismantling departmental silos, encouraging cross-departmental collaboration, and coordinating procedures and systems.

Furthermore, technology is essential to providing real-time CX. It is imperative for businesses to allocate resources towards adaptable and expandable technological solutions, like marketing automation platforms, omnichannel communication tools, and customer relationship management (CRM) systems. These tools let businesses to interact with clients instantly through a variety of channels, such as chatbots, social media, email, and mobile apps.

In the banking sector, real-time CX has grown significantly as banks look to stand out in a very competitive market. Banks are using technology and real-time data to improve customer experiences and expedite procedures along the customer journey.

For instance, several banks now provide real-time transaction alerts to clients so they can be informed immediately of account activity. Customers benefit from increased control and transparency over their finances in addition to real-time fraud detection and prevention.

In addition, real-time CX has changed how banks respond to assistance and consumer inquiry requests. The introduction of chatbots and virtual assistants driven by AI has allowed banks to provide 24/7 customer service and quickly address problems regardless of the time or place. This lowers operating expenses for banks while also increasing client happiness.

Furthermore, banks can tailor product recommendations and offers depending on the unique tastes and behaviors of each consumer thanks to real-time CX. Banks can boost revenue growth and client lifetime value by identifying chances to upsell or cross-sell related products and services by real-time analysis of transactional data and online interactions.

In the retail sector, real-time CX is completely changing how companies interact with their clientele. Real-time data and technology are being used by retail giants like Amazon and Walmart to provide dynamic pricing, efficiently manage inventory, and personalize suggestions.

Also, chatbots and virtual assistants driven by artificial intelligence (AI) are being used to give targeted promotions in physical locations, while beacon technology is being used to deliver immediate customer help online. Instant checkout and real-time order tracking improve the shopping experience even more, which boosts client happiness and loyalty. The importance of real-time CX in boosting engagement and competitiveness in the retail industry is demonstrated by these tactics.

In conclusion, in today’s hyperconnected world, real-time customer experience is a crucial distinction for organizations. Businesses may offer seamless, tailored experiences that satisfy customers’ changing requirements and expectations by utilizing data, technology, and organizational alignment. This has increased customer pleasure, loyalty, and profitability. To stay ahead in a market that is becoming increasingly competitive, companies will need to keep prioritizing real-time CX as a critical strategic requirement.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He teaches strategic management and digital transformation in the MBA Program of De La Salle University.

The author may be e-mailed at rey.lugtu@hungryworkhorse.com

SSI names Bienvenido Tantoco as chairman, Huang as CEO

LISTED specialty retailer SSI Group, Inc. announced the appointment of its new top officials on Thursday, following the passing of Zenaida R. Tantoco in early February.

Bienvenido V. Tantoco III assumed the role of chairman from director, while Anthony T. Huang stepped in as chief executive officer (CEO) effective Feb. 21, according to the company’s stock exchange disclosure.

The new appointments came after the passing of Ms. Tantoco on Feb. 8, who served as CEO and chair of the company, as well as chair of Rustan Commercial Corp. and Rustan Marketing Corp.

Ms. Tantoco was the eldest daughter of Rustan’s Group founders, Bienvenido Tantoco, Sr. and Gliceria Rustia-Tantoco.

In the first nine months of 2023, SSI Group reported a 66% surge in net income to P1.5 billion, with revenue climbing by 21% to P19 billion.

SSI Group’s brand portfolio encompassed various specialty and lifestyle concepts spanning luxury, casual and fast fashion, beauty, footwear, home, and restaurant categories.

SSI Group’s brand portfolio encompassed various specialty and lifestyle concepts spanning luxury, casual and fast fashion, beauty, footwear, home, and restaurant categories. — Revin Mikhael D. Ochave

Death of Putin’s most prominent opponent spells end of Russian politics

ALEXEI NAVALNY meeting with voters during the election campaign for mayor of Moscow in 2013. — ALEKSEY RUBAN-FLICKR

Reports of the death of Russia’s most famous opposition leader, Alexei Navalny, in an Arctic prison camp are shocking, but not entirely unexpected. It draws a line under Russia’s political development over the past two decades by highlighting that a challenge from within is no longer possible.

Navalny was the last public politician to pose a real challenge to the Kremlin, but his attempt to overthrow the regime failed long before what appears to be his untimely death in prison.

His unrealistic calculations about the impact of his return to Russia in 2021 led to the dismantling of the remnants of any organized opposition that was not sanctioned — and controlled — by the Russian state.

Navalny ended up in prison, his supporters arrested or fled abroad. As a result, when the invasion of Ukraine came, there were very few street protests against it.

Active in Russian politics for more than 20 years, Navalny’s main focus was identifying and rooting out state corruption, an issue with almost limitless material in modern Russia. He embraced new methods of bringing his investigations to as wide an audience as he could, notably the internet, particularly via his YouTube channel. Some of his most popular clips have tens of millions of views.

But corruption investigations and blogging were not enough to really challenge Putin’s status quo in Russian politics. That’s why Navalny increasingly turned to the direct action of mass street protests.

His big break came in 2011, when allegations of widespread fraud in the December 2011 Duma elections, coupled with the announcement of Putin’s return to the presidency the previous September, brought tens of thousands of protesters on to the streets of Moscow.

Although the protests were not organized by Navalny, his charisma and more radical rhetoric made him the most prominent face of the protests, overshadowing more established opposition leaders such as Boris Nemtsov. However, the mass protests of 2011-12 failed to prevent Putin’s re-election in March 2012, and eventually fizzled out.

But the protests prompted the Kremlin to change tack and experiment with allowing the opposition to stand in elections. Navalny was the main beneficiary, being registered for the Moscow mayoral elections in the summer of 2013. This was Navalny’s only real chance of winning power in Russia’s tightly controlled electoral system.

He campaigned enthusiastically and won a respectable 27% of the vote. But it also showed the limits of his appeal. Moscow was at the time one of the most opposition-leaning cities in Russia, one of the few regions where Putin got less than 50% in the 2012 presidential election.

If the opposition could really challenge the Kremlin, it was in Moscow. But turnout was extremely low at 32%, and the incumbent mayor, Sergey Sobyanin, won the 51% he needed to avoid a run-off with Navalny.

This was indicative of the opposition’s problem: reliance on restriction to a committed core of supporters whose passion for change didn’t spill over into the general population.

LAST ROLL OF THE DICE
Elections in today’s Russia are a foregone conclusion, but they are also a potential vulnerability for the Kremlin. There is a fine balance that the Kremlin has to strike between control of elections and their legitimacy. Too much control, or outright fraud, and the legitimizing value of the elections is reduced.

This can lead to potentially destabilizing results, as the mass protests in Moscow in 2011 or the protests in Belarus in 2021 showed, and as happened in the 2004 Ukrainian elections, which led to the first Orange Revolution.

Navalny understood this well, and made participation in the 2018 presidential election his main goal. His strategy was to cause enough trouble for the authorities in the run-up to the vote, particularly through various street demonstrations, to force the authorities to allow him to stand as an official candidate in these elections.

To this end, he set up a regional network of Navalny HQs that ran in parallel with his main anti-corruption organization, FBK (the Anti-Corruption Foundation). This gave Navalny a potential nationwide reach, in contrast to the old Moscow-centered opposition.

This strategy didn’t produce the desired result of getting Navalny on to the ballot. But it seemed to rattle the authorities enough to want to take care of the “Navalny problem.”

POISON AND IMPRISONMENT
In August 2020, Navalny fell ill on a flight and, according to the German doctors who treated him, escaped near-certain death from a Novichok weapons-grade chemical agent.

He returned from Germany in January 2021 and was immediately arrested on landing in Moscow. The mass protests that followed were unusual for their regional scale, but not enough to really challenge the Kremlin. Instead, the authorities banned Navalny’s organizations in Russia and either arrested or forced those who worked for them to flee Russia.

Navalny’s fate became the main point of contention for Moscow in its dealings with western governments and media. Navalny was the obligatory subject of high-level contacts with the Russian authorities, with Joe Biden’s national security adviser Jake Sullivan warning that Russia would suffer consequences if Navalny died in prison.

But all this paled into insignificance after the full-scale invasion of Ukraine at the end of February 2022. Overnight, Navalny’s fate seemed diminished against the backdrop of Europe’s biggest war since 1945.

Navalny’s own agenda of generating enough domestic protest to topple the regime became obsolete as the new anti-opposition laws were enforced and most of his most ardent supporters fled the country. Navalny tried to stay relevant by promoting his views from prison, including a call to end the war by handing over all Ukrainian territory, including Crimea, and paying reparations to Ukraine. It’s not clear that he gained any supporters in Russia, but he certainly appealed to those in exile and to western governments.

With the West and its allies imposing an unprecedented level of sanctions on Russia and providing Ukraine with the military support to defeat Putin on the battlefield, there’s literally nothing else the west can do to punish Russia over Navalny’s fate.

THE REST IS DICTATORSHIP
Alexei Navalny was clearly a very brave and charismatic politician who posed the most significant domestic challenge to Putin’s regime in more than a decade. He never really came close to toppling Putin, and perhaps often overestimated his level of support within Russia.

With the news of his untimely death in prison, the question remains whether he could have done more from exile in the west. He would have joined a long list of Russian opposition leaders, from former oligarch Mikhail Khodorkovsky to chess champion Garry Kasparov, who have virtually no influence on what happens in Russia. But Navalny’s refusal to go down that road, and his belief in his own importance, is precisely what has made him stand out in Russian politics.

Ultimately, Navalny’s death draws a line under the era when politics was politics in Russia. Today there is only Putin’s own personal authoritarianism.

 

Alexander Titov is a lecturer in Modern European History at Queen’s University Belfast.

Legislated wage hike of P100 not seen pushing rates higher

PHILIPPINE STAR/MICHAEL VARCAS

By John Victor D. Ordoñez, Reporter

A P100 legislated wage increase could stoke inflation, though not by enough to prompt the central bank to raise interest rates, economists said.

“It could take a combination of other factors to make Bangko Sentral ng Pilipinas to resort to a hike,” Jonathan L. Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., said in a Viber message.

The Bangko Sentral ng Pilipinas (BSP) kept rates unchanged at 6.5% at its third straight meeting last week. It last raised borrowing costs by 25 basis points (bps) in October. It has hiked rates by a cumulative 450 bps between May 2022 and October 2023.

The BSP’s baseline inflation projections have not taken most recent wage hike proposals into account, BSP Assistant Governor Iluminada T. Sicat has said.

The Senate on Monday approved a bill seeking an across-the-board P100 minimum wage increase for private-sector workers, the first legislated wage hike since the Wage Rationalization Act of 1989.

The Employers Confederation of the Philippines (ECoP) called the legislated wage hike “catastrophic (and) inflationary,” adding that microenterprises would find it difficult to pay their workers and be forced to lay off staff.

Emilio S. Neri, Jr., lead economist at the Bank of the Philippine Islands, said an interest rate hike later in the year should not be ruled out, but a minimum wage hike would not necessarily trigger policy tightening.

“Government should focus on improving the business and entrepreneurial environment to expand job creation so workers can seek higher pay based on their skills, experience and efficiency,” Bienvenido S. Oplas, Jr., founder of the think tank Minimal Government Thinkers, said in a Viber message.

“(Approving a legislated wage hike) is bad because wages and employment should be a contract between employers and employees, not the government and employees.”

Sentro ng mga Nagkakaisa at Progresibong Manggagawa Secretary-General Josua T. Mata said the push for a legislated wage hike properly addresses income inequality.

“Business has been cornering the wealth generated in our economy,” he said in a Viber message.

ECoP President Sergio R. Ortiz-Luis, Jr. has said 84% of the workforce, many of them in the informal sector, would not benefit from a legislated wage hike, adding that only about 10% of private-sector workers stand to benefit, with the impact of the hike transitory.

Labor groups have backed legislated wage hikes, calling them a means of reforming the regional wage-setting system.

The House of Representatives is set to tackle its own minimum wage hike proposals next week.

“It is high time for business to give to workers what they deserve, a fair share in the fruits of their labor,” Mr. Mata said.

Adam Sandler gets deep with space spider at Berlinale

SPACEMAN — IMDB.COM

BERLIN — On the edge of the universe, Adam Sandler confronts the pain of loneliness — and stunt wires — through a therapist-cum-guru giant space spider in the Netflix-backed science-fiction drama Spaceman that premiered Tuesday at the Berlin Film Festival.

Based on the novel Spaceman of Bohemia by Czech author Jaroslav Kalfar, the film follows Jakub (Mr. Sandler) as a year-long solo journey to a purple interstellar cloud takes its toll on his mental health and his marriage to Carey Mulligan’s Lenka until Hanus, a big spider voiced by Paul Dano, suddenly appears.

“We got deep together, I felt pain, he (Hanus) helped me try to get out of that pain,” Mr. Sandler, who is at the festival for the first time, told journalists at a news conference punctuated by laughter as he gave a ribbing to them and the other actors.

“This is a true story: When I got out of my car (in Berlin) and everyone was screaming hellos to us and taking pictures, I noticed when Paul got out, there was a group of like 400 spiders that were going ‘Paulie! You’re the man!’” said Mr. Sandler, who made a name for himself with comedies in the late 1990s.

The 57-year-old actor and comedian said that the wire work required to look weightless was particularly difficult.

“My body’s not the most flexible body,” he explained, adding: “The stunt men who would wire me up every day, I would say, ‘Oh that hurts,’ and they didn’t believe me.”

Hanus, named after the Czech clockmaker who in legend was behind Prague’s Astronomical Clock, is an ancient spider who has traveled through galaxies when he encounters the relatively young cosmonaut, said Dano, known for Little Miss Sunshine.

“If you’ve accrued that much wisdom, it felt something sort of Zen-like and gentle,” he said in explaining his approach.

For the Oscar-nominated Ms. Mulligan, the interactions with Hanus helped Jakub to focus on the important things in life, like love and connection, in a similar way to being on one’s deathbed. “If we could all have a little friendly spider tell us that, wouldn’t that be wonderful, you know?” she said. — Reuters