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China Bank net income up 7%

BW FILE PHOTO

CHINA BANKING Corp. (China Bank) saw its net income rise by 7% in the first half amid higher revenues and as it set aside lower loan loss provisions, it said on Thursday.

The bank’s net profit climbed to P10.8 billion in the first semester from P10.1 billion in the same period last year, it said in a disclosure to the local bourse.

Its first-half performance translated to a return on equity of 15.9% and a return on assets of 1.6%, down from 16.4% and 1.7%, respectively.

For the second quarter alone, its net profit stood at P5.8 billion.

The bank’s financial statement was not available as of press time.

“Our customer focus and disciplined operational execution enabled us to continue to deliver strong results to all our stakeholders,” China Bank President and Chief Executive Officer Romeo D. Uyan, Jr. said.

In the first half, the bank’s net interest income stood at P25.5 billion, up by 16% from P22 billion in the same period last year. This came on the back of a 46% increase in interest earnings to P37.9 billion, which offset a 218% rise in interest expenses to P12.3 billion.

Its net interest margin was at 4.2% in the first half, down from 4.3% a year ago.

Meanwhile, China Bank’s fee income dropped by 48% year on year to P1.7 billion in the period.

The bank’s total revenues stood at P27.2 billion in the first semester, up by 8% year on year.

On the other hand, operating expenses rose by 22% to P13.6 billion amid “continued heavy investments on human resource development and digital innovation, along with higher volume and revenue-related taxes.”

The bank’s cost-to-income ratio was at 50%, higher than the 44% seen a year prior.

China Bank’s net loans rose by 11% year on year to P726 billion in the first half as consumer loans went up by 20% and business loans climbed by 8%.

Despite the growth of its loan portfolio, the bank’s nonperforming loan (NPL) ratio went down to 2.2% from 2.3% a year prior.

NPL cover was at 122%, down from 128% a year ago, as the bank set aside loan loss provisions worth P900 million in the first half, down by 47% from P1.7 billion in the same period last year.

On the funding side, total deposits grew by 19% to P1.12 trillion from P945 billion in the first half of last year.

“CASA (current account and savings account) ratio dropped to 49% due to the growth in term deposits year on year,” China Bank said.

Total assets stood at P1.39 trillion at end-June, up by 15% year on year.

The bank’s equity likewise grew by 9% to P139 billion.

Its capital adequacy ratio stood at 16.1% as of June, up from 15.7% a year prior, while its common equity Tier 1 ratio was at 15.2%, also higher than the 14.8% seen last year.

China Bank has 643 branches and 1,062 automated teller machines to date, including those of its thrift arm China Bank Savings, Inc. (CBS).

The bank’s board of directors on Wednesday approved a P2-billion capital infusion into CBS, it said in a separate disclosure on Thursday.

The funds will be used to “support CBS’s sustained loan expansion and enhance its ability to cover and serve more segments of the banking and unbanked population.”

China Bank’s shares closed unchanged at P31 each on Thursday. — A.M.C. Sy

SC rejects illegal dismissal claim versus Steam System Philippines

BW FILE PHOTO

THE Supreme Court (SC) has upheld the dismissal of a former general manager of a steam engineering company, rejecting claims of illegal dismissal put forward by a former general manager.

In a resolution dated Feb. 1 and made public on Aug. 2, the tribunal ruled that the dismissal of Ronaldo S. Mina was valid, after he established a new company and operated it within Steam System Philippines, Inc., (SSPI) without permission from the company’s board of directors.

“We have repeatedly recognized that employers cannot be compelled to retain employees who are guilty of acts inimical to its interests,” according to this ruling.

“It bears stressing that Mina was not sufficiently authorized to establish Ainam Philippines, Inc. (API).”

The High Court upheld a Court of Appeals finding that Mr. Mina’s dismissal was legal and valid.

Under the Labor Code, employee dismissals are valid in the event of fraud or deliberate breach of the employer’s trust.

Employees in managerial roles are considered to be in positions of trust and confidence.

The company imports, markets, and distributes steam engineering products. It was also the exclusive distributor of Spirax Sarco Private Limited (Spirax) products in the Philippines.

Mr. Mina assumed the role of GM after Charles Moody, one of the company’s founders, had to leave for the UK in 2002 to receive treatment for bone cancer.

Two years later, he formed API with the goal of developing and exploring a market for alternative stream products outside of Spirax.

In 2005, Mr. Moody died and left instructions that Mr. Mina was to be his successor, and left his shares to him and other employees.

Mr. Mina claimed that Mr. Moody’s ex-wife and SSPI co-founder, Lilibeth Moody, had been trying to oust him from the company ever since he took over.

That same year, the company suspended Mr. Mina over the risk posed by API to the exclusive distributorship deal with Spirax.

The labor arbiter sided with Mr. Mina in his illegal dismissal claim and ordered Steam System to pay him back wages and interest.

The National Labor Relations Commission (NLRC) overturned the ruling saying Mr. Mina’s creation of a new company was an “act of disloyalty and serious misconduct befitting loss of trust and confidence.”

The CA affirmed the NLRC’s findings since Mr. Mina failed to show the tribunal that his actions had been approved by the board or Mr. Moody, the late company founder.

“Mina failed to appreciate the significant consequences that could have arisen from SSPI’s violation of its exclusive distributorship agreement with Spirax,” the High Court said. — John Victor D. Ordoñez

Feminizing the boardroom

STOCK PHOTO | Image from Freepik

Over the past few decades, women’s participation and leadership in corporate boardrooms have been steadily gaining momentum across the globe. Gender equality and women empowerment remain central in the agenda of many organizations around the world.

These issues also remain central to the 2030 Agenda for Sustainable Development and the Community Vision 2025 of the Association for Southeast Asian Nations (ASEAN).

Many programs and initiatives have been implemented and continue to be advanced to provide women with equal access to decision-making power as women are widely recognized for their valuable contribution towards economic development, and business growth.

Current data, however, shows that there remains a need to push for more participation of women. Based on data from UN Women, women leaders in Southeast Asia, while occupying important roles in organizations, continue to struggle to break the glass ceiling.

Latest figures show that the share of women managers rose only two percentage points in 20 years (from 39% in 2000 to 41% in 2020), while the share in middle and senior management stands at a much lower 26%. In political governance, women hold 22% of parliament seats, but women ministers are often relegated to leading committees on gender equality and women’s affairs.

The report of UN Women also shows that even though women make up 67% of healthcare workers, the frontline responders to the pandemic, only 11% of chief executive officers in the region’s biggest hospitals are women, and ASEAN’s ministers of health are mostly men. The report further noted that women led only 6% of environment and related ministries in 2020.

The story of Filipina leaders are not far apart their counterparts in Southeast Asia. Historically, the Philippines has been a country with deeply ingrained patriarchal norms and gender biases. Women were often confined to traditional gender roles, limiting their access to education, employment, and leadership positions. However, with changing societal dynamics and a greater focus on gender equality, women are continuously and steadily shattering the entry barriers and emerging as influential leaders in the corporate and political world.

Despite progress, women in the Philippines continue to face several challenges and barriers in reaching leadership positions. The prevalent societal expectations of women as primary caregivers, along with cultural stereotypes, can hinder their career advancement. Additionally, gender bias, unconscious biases, and the lack of networking opportunities often impede women’s access to corporate boardrooms.

Recognizing the need for a more diverse and inclusive leadership, the Philippine government, alongside various organizations and advocacy groups, has taken significant steps to promote women’s participation in corporate boardrooms. The passage of the Magna Carta of Women in 2009 provided a legal framework for gender equality and empowered women to pursue leadership roles. The creation of organizations such as the Philippine Women’s Economic Network and the Women’s Business Council Philippines has further facilitated networking, mentorship, and leadership development opportunities for women.

Many forward-thinking companies in the Philippines have embraced diversity and inclusion as key pillars of their corporate strategies. These organizations understand that diverse leadership teams bring unique perspectives, enhance decision-making processes, and drive innovation. By implementing gender diversity policies, setting targets, and fostering inclusive work cultures, these companies are actively working towards breaking gender barriers in the boardroom.

As a result of forward-thinking inclusive initiatives, there is a steady rise of women leaders in the Philippines’ corporate boardrooms. Women such as Tessie Sy-Coson of the SM Group have broken through traditional gender roles and emerged as influential figures in the business world. Sy-Coson is head of one of the country’s largest conglomerates and has been instrumental in the growth of SM Investments Corp., which now has interests in a wide range of industries, including retail, property, and banking.

Robina Gokongwei-Pe is another top Filipina executive who is at the helm of one of the biggest conglomerates in the Philippines. She is the president and chief executive officer (CEO) of Robinsons Retail Holdings, Inc. (RRHI) which values, recognizes, and celebrates the contributions made by women in the entire Gokongwei Group.

The former President and CEO of Sunlife Financial Philippines, Riza Mantaring, is yet another example of an excellent Filipina executive. Mantaring’s dynamic leadership style and commitment to customer-centricity have propelled the company to become one of the leading insurance providers in the country. Her strategic decisions and focus on innovation have contributed significantly to Sun Life’s growth and success.

Cosette Canilao, Aboitiz InfraCapital president and CEO, also exemplifies the Filipina leader making a mark in the business world. With over 20 years of experience in commercial and investment banking, transaction advisory and infrastructure, Canilao was the former head of Standard Bank’s distressed debt business in the Philippines, a former partner of PwC, and was previously the head of the PPP Center in the Philippines where she played a key role in the country’s infrastructure development and delivery.

Another woman leader that cannot be easily ignored in shattering the glass ceiling is the current Shell Philippines President and CEO Lorelie Quiambao-Osial — the first woman CEO of Shell in the Philippines. Osial has brought a keen focus on value and has established high performing, diverse teams who have built a strong sense of community and motivation even in times of transition and change.

THE DISTINCT ROLE OF WOMEN IN MANAGEMENT
Women leaders in top Philippine companies bring a distinct set of skills and qualities to the table, contributing to the overall success of their organizations. Some key aspects that set them apart include:

• Empathy and Collaboration: Women leaders often exhibit strong empathetic skills, enabling them to understand and connect with diverse stakeholders. This empathy fosters collaboration, teamwork, and inclusive decision-making, creating a harmonious work environment where all voices are heard.

• Relationship Building: Women leaders excel in building strong relationships, both within and outside their organizations. Their ability to establish trust and rapport is crucial for nurturing a positive workplace culture and fostering fruitful partnerships.

• Transformational Leadership: Women leaders often adopt a transformational leadership style, inspiring and motivating their teams to achieve excellence. They empower their employees, encourage creativity, and promote personal and professional growth.

• Diversity and Inclusion Advocacy: Women leaders serve as role models, advocating for diversity and inclusion in the workplace. They recognize the value of diverse perspectives and actively promote equal opportunities for all, driving positive change within their organizations and society.

The presence of women leaders in top Philippine companies has proven to be instrumental in driving business performance. Research consistently indicates that companies with diverse leadership teams outperform those with less diversity. Women leaders bring fresh insights, alternative problem-solving approaches, and a focus on long-term sustainability. Their inclusive leadership styles foster employee engagement, innovation, and customer satisfaction, ultimately leading to enhanced business outcomes.

The rise of women leaders in top Philippine companies is a testament to the progress being made towards achieving gender equality and empowering women in the workplace. These trailblazers are breaking barriers, challenging traditional norms, and paving the way for future generations of women leaders. Their distinct roles in management, characterized by empathy, collaboration, and transformational leadership, have positively impacted business performance and workplace culture.

As more companies embrace the value of gender diversity, the contributions of women leaders will continue to shape a more inclusive and prosperous corporate landscape in the Philippines.

 

Ron F. Jabal, APR, is the chairman and CEO of PAGEONE Group (www.pageonegroup.ph) and founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph

rfjabal@gmail.com

LFM Properties posts nearly P7-million second-quarter net loss

LISTED firm LFM Properties Corp. on Thursday reported a net loss of P6.94 million in the second quarter, reversing its P4.66-million gains in the same period last year.

In its financial statement, the company registered a top line of P45.98 million, down 19.9% from the P57.41 million reported the previous year.

During the three-month period, the company recorded a 13.1% increase in operating expenses to P6.37 million from P5.63 million the prior year.

The company’s direct cost also rose by 16.7% to P22.07 million from P18.91 million in the same period last year.

In the first semester, the company reported a wider net loss of P24.05 million from the P14.48 million reported the prior year.

Its top line during the first semester fell by 22.7% to P87.48 million from P113.15 million the previous year due to the pretermination of the rental lease contract of one of the major tenants of the company.

The company’s cost of rental services went up by 12.6% to P42.79 million from the P38 million the prior year driven by the increase in electricity charges and outside services.

Operating expenses, likewise, increased to P11.93 million, up 9% from P10.95 million, due to the professional fee for the fairness opinion issued for the acquisition of Liberty Building.

Its parent company Liberty Flour Mills, Inc. announced earlier that it had sold the eight-story building to its property subsidiary for 27% of the asset value of Liberty Flour Mills.

The company said it expects to spend about P200 million in the next six months for land and building as an investment property.

“There are no known trends, events or uncertainties that have had or that are reasonably expected to have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations,” the company said.

LFM Properties is primarily engaged in the real estate business in all its aspects, including development, acquisition, construction, consultation, and management. — Adrian H. Halili

Kurt Cobain mementos, Elvis Presley web domain hit the auction block

Kurt Cobain’s signed and played Teisco Del Ray EV-2T Electric Guitar — BID.GWSAUCTIONS.COM

AN ELECTRIC guitar once owned by Nirvana frontman Kurt Cobain is among the top lots to be sold at Kruse GWS Auction later this month, and could fetch upward of $200,000.

Doodles, still photographs, and even swimming goggles from the American rocker are also included in the sale.

“I think we are going to see some great activity on that guitar,” said lead auctioneer, Brigitte Kruse.

“I would expect this one to probably fall in the couple of hundred thousand range conservatively,” Kruse said.

The “Artifacts of Hollywood & Music” online sale, on Aug. 26, will feature over 350 lots from singers, actors, and movie costumes.

Custom-made jewelry owned by Elvis Presley is expected to also sell for hundreds of thousands of dollars, while the sale of an internet domain with the King of Rock ‘n’ Roll’s name will make for a unique lot at the auction.

“ElvisPresley.com … owned by a client of ours” who would love to see this go to someone who could utilize it, said Kruse.

The domain cannot be used for e-commerce and is conservatively estimated at $100,000.

Movie props such as sunglasses worn by Jamie Fox in the blockbuster hit in 2006 Dreamgirls, along with the ring and wristwatch he wore in the film will also be up for sale.

Cars from various films are also among the lots. Vehicles from The Fast and the Furious franchise and one of the five jump cars from Thelma and Louise (1991) are up for sale. — Reuters

European companies cut jobs as economy sputters

REUTERS

DECADES-HIGH inflation and the impact of war in Ukraine have forced companies across Europe into lay-offs or hiring freezes. Here are some of the companies that have announced cuts since April:

AUTOS

• AUTOLIV: the Swedish airbag and seatbelt maker said on June 8 it plans to cut around 8,000 jobs.

• CONTINENTAL: the automotive parts supplier plans to phase out business activities at its Gifhorn, Germany plant by the end of 2027, initially affecting 450 out of 900 jobs at the site, it said in May.

• STELLANTIS: the carmaker said on June 28 it plans to close its mechanical gearbox plant in Austria, impacting 300 jobs.

• VOLVO CAR: the automaker on May 4 announced 1,300 additional layoffs in Sweden, 6% of its workforce in the country.

FOOD, RETAIL AND CONSUMER GOODS

• ANHEUSER-BUSCH INBEV: the Dutch brewer will lay off hundreds of corporate staff in the US, CNN reported on July 27.

• CARREFOUR: the French retailer said on June 26 it could cut up to 979 jobs in France on voluntary basis.

• HALEON: the Sensodyne toothpaste-maker is looking to cut hundreds of jobs in Britain and worldwide, The Guardian reported on July 13.

INDUSTRIALS AND ENGINEERING

• MARSHALLS: the British building and roofing products supplier said on July 31 it plans to cut 250 jobs.

• SSAB: the Swedish steel maker said on June 16 it has started furlough talks concerning 850 of its 4,700 employees in Finland.

• VARTA: the German battery maker said on June 30 it would cut 88 jobs through a volunteer programme.

TECH

• BT: Britain’s biggest broadband provider said in May it would reduce its total workforce by up to 55,000 jobs by 2030.

• DORMAKABA: the Swiss security group said on July 3 it expects to reduce its full-time equivalent positions by around 800.

• NOKIA: the Finnish telecom equipment maker said on May 3 it plans to cut up to 208 jobs in Finland.

• VIRGIN MEDIA: the British mobile operator is planning to lay off 2,000 employees, The Telegraph reported on July 24.

• VODAFONE: the British telecoms group on June 15 reached an agreement with unions over 1,003 job cuts in Italy and 11,000 jobs globally over three years.

OTHER

• AIR LIQUIDE: the industrial gases firm on July 5 said it might reduce its French workforce by 430 net positions.

• DEUTSCHE BANK: the German bank is drawing up plans to cut 10% of its 17,000 German retail jobs in the next few years, a person with knowledge of the matter said on June 23. The bank had in April said it would cut 800 jobs over the next few years.

• EVONIK: the specialty chemicals producer said on April 3 it would cut 200 jobs.

• PROSIEBENSAT: The German media group said on July 18 it would cut 400 full-time jobs.

• STANDARD CHARTERED: the British bank is laying off employees in its London, Singapore and Hong Kong offices and the total reduction could be more than 100 positions, Bloomberg News reported on June 7.

• STORA ENSO: the Finnish forestry firm said on June 15 it will cut 1,150 jobs.

• UBS: the Swiss bank unveiled a raft of management changes in its global wealth management business on July 6, affecting roughly 180 former Credit Suisse executives. Credit Suisse is also set to cut more than 40 jobs in one of its China units, two people with direct knowledge of the matter said on July 19.

• UPM-KYMMENE: the Finnish forestry firm said on July 25 it planned to close its Plattling mill in Germany, putting 401 jobs at risk.

• VIAPLAY: the Swedish media group on July 20 announced job cuts affecting more than a fourth of its staff. — Reuters

DBP raises P3.9B from bond offer

BW FILE PHOTO

DEVELOPMENT Bank of the Philippines (DBP) raised P3.875 billion from its issuance of 1.5-year bonds, it said on Thursday.

Proceeds from the issuance of fixed-rate Series 4 bonds will be used for various developmental projects and initiatives for its key priority sectors, the state-run lender said in a statement.

The fresh funds will also be used to boost loan growth, expand the bank’s balance sheet, and diversify its funding sources amid rising demand.

The issue was upsized from the initial offer of P2 billion, DBP said.

The bonds are the last to be issued out of the bank’s four-year P55-billion sustainable bond program.

The papers, which will mature by January 2025, were offered at par value with an interest rate of 6.4126% per annum.

The bonds were enrolled and can be traded through the  Philippine Dealing & Exchange Corp.

“Notwithstanding the volatile market backdrop, we are buoyed by the strong support from institutional investors, which allowed us to price at our tightest ever spread of 10 basis points over the relevant benchmark. The overwhelming reception of DBP’s issuance resulted in closing the offering period earlier than expected,” DBP President and Chief Executive Officer Michael O. de Jesus said.

Standard Chartered Bank and China Bank Capital were the joint lead arrangers and bookrunners for the issue, with Standard Chartered also being the issue manager.

The bond offer was done via private placement, with participation limited to qualified institutional buyers, Mr. De Jesus said.

“DBP’s latest bond is a tangible manifestation of the bank’s proactive stance to offer investors with an opportunity to be part of the noble goal of supporting efforts to stimulate the economy and actively contribute to the country’s steady recovery,” Mr. De Jesus said.

In 2021, DBP raised $300 million from bonds that were rated “BBB” by Fitch Ratings. In 2022, it borrowed P12 billion via private placement in an onshore bond offer.

DBP was the eighth-largest bank in the country in terms of assets at end-March with P975.84 billion, central bank data showed.

The lender saw its net income rise by 17% year on year to P1.23 billion in the first quarter, exceeding its P820-million target. — AMCS

Thoughts on learning

AVERIE WOODARD-UNSPLASH
AVERIE WOODARD-UNSPLASH

It may take a long time to process and to reach the point of awakening — when we discover what is important in life, which is the value of creating, giving, contributing.

Happiness and abundance come from sharing.

As one reflect on thoughts written more than a decade ago, we realize that they are so true.

We realize that it is time to stop hoping and waiting for someone or something to change. Happiness, safety, and security may not come galloping over the next horizon.

“You come to terms with the fact that there aren’t fairy-tale endings (or beginnings) and that any guarantee of ‘happily ever after’ must begin with you,” wrote Sonny Carroll. “So, you begin making your way through the ‘reality of today’ rather than holding out for the ‘promise of tomorrow.’”

All of us have been subjected to a lifetime of social conditioning — on appearances and behavior. We have the wrong notion that we must live up to a certain standard to be acceptable. The social pressure is there — the look, style and fashion, weight, job, car, home, partner, children. Media (traditional and social) reinforces it.

We are sometimes trapped by consumerism. It’s all about accumulating, obtaining, and having the “in” thing, or the “it” person. The consumer fix from buying the latest gadget, that newest status symbol, is just a passing “high.” The novelty wears off after a while.

Then one seeks another object to get a new “high.”

It takes maturity to realize that one is not perfect and cannot have everything.

People will not always love, appreciate, or approve of whatever we do. One must take a long, close look in the harsh mirror of reality.

When one learns to accept certain things and be content with whatever one has, it is possible to achieve a sense of serenity.

It is necessary to reassess and redefine the self and what one believes in. We should not be influenced too much by what others say we should believe in. They are entitled to their opinion.

A sense of confidence is born of self-approval.

A process of sifting through the doctrines is necessary. There are old habits, notions, and ways of thinking and doing that we have to unlearn. We must discard those things (and people) that are toxic or no longer relevant. Only the essential values should be kept.

There is joy in giving rather than accumulating and obtaining. Contentment comes from creating and contributing.

The lesson here is gratitude for all the blessings, big and small, that millions on earth do not have but wish they could have. Among them: a safe home, food, clean running water, access to medicines and education. Above all, we have peace, freedom of choice, and the opportunity to pursue our dreams.

Loving and caring of the self means avoiding self-destructive behavior and dysfunctional relationships. A balanced lifestyle and diet with plenty of water and regular exercise.

It has been said that fatigue drains the spirit, and the body needs rest. Laughter is very good for both mental, emotional and physical health.

One needs to play and relax.

We learn, over the years, about love and relationships.

How to love and how much to give. When to walk away. When to control grieving. (Grief never really vanishes. It strikes when there is an occasion or a trigger.)

We are exposed to insincere and fake “friends.” We get hurt by unreliable, toxic people and situations. Avoidance is necessary. It is a self-protection and care.

Then, we must control the Ego — to acknowledge and diffuse destructive emotions such as anger, jealousy, envy, and resentment.

Humility is a quality we should cultivate. We must be able to say, “I was wrong.” In the same manner, we must forgive people and build bridges, and remove walls. Good communication is important for enhancing relationships.

We must distinguish between guilt and responsibility.

We set boundaries and know how to say “NO.”

We should see people as they are and not project qualities that are not there. They grow and change. Real love is one that is given freely without conditions and limitations.

One should stop looking for guarantees. Change happens slowly or suddenly. One must conquer fear and deal with the unexpected.

Solitude does not mean being lonely. It is a joyful discovery — to spend time with oneself. It leads to a deepening spirituality, healing and growth.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Congress can and should legislate foreign policy

Some are wont to say: it’s well known, the President is the “chief architect of foreign policy” and thus foreign affairs is “not a subject for legislation.” They may even add: “that’s basic first year law school stuff.” The problem with that misguided thinking is that we’re not in first year law.

Congress not only can set foreign policy, it is mandated to do so. What is law but the enactment of policy? And by our Constitution, it is the Congress that makes laws. The President, by his oath alone, is duty bound to execute them. If Congress makes a law, a.) setting foreign policy (e.g., to implement the Arbitral ruling against China); or, b.) enacting a foreign relations-oriented budget (e.g., emphasizing the protection of our territory), then the President is constitutionally required to implement such laws.

The simple fact is: our Constitution never said it’s the president that should exclusively formulate foreign policy.

Or, put another way, the formulation of foreign policy is a responsibility delegated by the People to the government.

And when we say government, it means the three equal branches: the Executive, the Legislative, and the Judicial.

While, yes, the power to negotiate treaties lies with the Executive and, yes, our Supreme Court indicated (in PMPF vs. Manglapus, Bayan vs. Executive Secretary, and Akbayan vs. Aquino) that the president is our top diplomat (even admirably going so far as to quote Alexander Hamilton via “Federalist 75”) for which in “the field of negotiation the Senate cannot intrude, and Congress itself is powerless to invade,” nevertheless, it is a stretch — in fact, with all due respect, actually ill-advised — for the Supreme Court to label the president as the “chief architect of the nation’s foreign policy.”

Nowhere in the Constitution does it say that.

“Architect of foreign policy” is one of those tropes the Supreme Court is oft found to repeat. Another is the common claim that the final defender of the Constitution is the Supreme Court. Both are grand statements that find no basis in the text of the Constitution.

In fact, despite constant reference to “Federalist 75,” the Supreme Court inadvertently failed to mention one hugely important caveat by Hamilton therein: that “it would be utterly unsafe and improper to intrust [sic] that power” of foreign policy-making solely with the president.

The Constitution’s prudence actually dictates that the formulation of foreign policy be done by the three branches of government.

As expressly written in the Constitution, the president indeed has exclusive authority in negotiating and entering into international agreements. But those agreements must be pursuant to a policy.

And such a policy is not made by him alone but also with the authority of the other two branches (albeit, to a much lesser extent as far as the Supreme Court is concerned, which is merely to ensure the constitutionality of any treaty or executive agreement).

So, Congress in fact has no excuse to abdicate its mandate to formulate foreign policy.

Again, how can Congress formulate policy? To expand on that stated above — First, as written in the Constitution: the Senate has the power to concur (or not) as far as treaties are concerned. And via the Commission on Appointments, the Congress is able to have a say as to who our country’s ambassadors and other such representatives are.

Regarding executive agreements (which require no Senate concurrence), it is a pity that Congress has so far been complacent or downright apathetic in this matter.

Executive Order No. 459/s.1997 (revising Memorandum Circular No. 89/s. 1988), granting the Foreign Affairs Secretary sole authority — without any practical criterion — to determine which are treaties and executive agreements, is an anomaly. Congress should promptly correct this by making a law laying down the concrete, clear, and definitive standards delineating what is what.

It should be made clear by Congress that the president cannot enter into an executive agreement unless it is pursuant to an existing law or treaty that the Senate has given concurrence to.

And the authority to determine whether such is indeed a treaty or executive agreement should not be left to the Executive (which negotiated it) but rather with Congress (although allowing advice from the Department of Foreign Affairs). Doing so would avoid complications in the past, like that of the JPEPA (the Japan-Philippines Economic Partnership Agreement) which almost did not go through the process of Senate concurrence, or EDCA (the Enhanced Defense Cooperation Agreement).

Congress also has the power to determine foreign policy simply by making laws declaring such policy. It must be remembered that the top policy making body of the land is Congress, whose members are the directly elected law-making representatives of the people. The president’s expressed job is to implement laws.

The president can be said to have taken the lead in foreign policymaking only because Congress allowed him to do so. But, as stated here, foreign policymaking should be the job of the government’s three equal branches.

Thus, Congress, perhaps with input from other government agencies, is empowered to legislate a foreign policy framework or even a detailed one, which the Executive is duty bound to carry out.

There is also, of course, Congress’ “power of the purse,” with which to influence (even control) foreign policymaking.

And — most importantly — there is Congress’ function of conducting public hearings (in aid of legislation) that enable our people to get more information and even participate directly in the making of laws that affect foreign policy.

Philippine foreign policy is a team effort. It cannot stand on the intuitions or “genius” of one man. In our Republic, no one official can claim l’etat c’est moi (I am the state) and definitely never ever apres moi, le deluge (after me, the deluge).

 

Jemy Gatdula is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Meralco calls on ‘lifeline’ consumers to register

MANILA ELECTRIC Co. (Meralco) urged qualified consumers to register under the lifeline rate program, warning that discounts will not be provided to unregistered beneficiaries starting next month.

“Starting September 2023, only customers with approved applications will continue to enjoy the discount in accordance with the implementing rules and regulations of Republic Act No. 11552 or the law extending and enhancing the implementation of the lifeline rate,” Meralco said in a statement on Thursday.

Joe R. Zaldarriaga, Meralco vice-president and head of corporate communications, said the company continues to seek ways to encourage more customers to apply for the lifeline rate program.

“While we have already engaged all local social welfare development offices or SWDOs in our franchise area, we will continue to reach out to more customers and we hope that the on-site applications will lead to the increase in the number of program beneficiaries,” Mr. Zaldarriaga said.

Meralco has set on-site applications and caravans in several areas like Caloocan, Las Piñas, Manila, Parañaque, Quezon City, and Valenzuela to help consumers enroll in the program.

It said qualified customers can also apply through the Meralco Business Center by bringing a completed application form, their latest electricity bill, and Pantawid Pamilyang Pilipino Program (4Ps) identification.

For non-4Ps beneficiaries, a local SWDO certification and government ID will be required, Meralco said.

In an earlier release, the Department of Energy (DoE) said only consumers who registered will continue to enjoy a reduction in their electricity bills starting this month.

Luningning G. Baltazar, director of the Electric Power Industry Management Bureau, said that based on revised guidelines, only those under the poverty threshold will be given subsidies in the lifeline rate program.

“Lifeline rate is not new, based on our historical data almost 6 million avail life rate, which includes 4Ps and those that are not marginalized that are able to pay,” Ms. Baltazar said in a Laging Handa briefing.

She added that based on the revised guidelines, targeted beneficiaries are also those in the poverty threshold, which is estimated at 4.2 million consumers.

“Estimated beneficiaries based on the 4Ps are about 4.2 million. As of July 31 registration data only 12,900 registered nationwide,” Ms. Baltazar said.

The lifeline rate is a subsidy provided to customers with a monthly power consumption of 100 kilowatt-hours or less.

In June, the Energy Regulatory Commission (ERC) together with the DoE and the Department of Social Welfare and Development issued an advisory mandating all distribution utilities to implement the revised rules on the lifeline rate.

According to the revised rules, customers living in condominiums, subdivisions, and those with net-metering services are no longer qualified for the lifeline rate despite having lower consumption.

Customers who are considered qualified to avail the lifeline rate will be provided a percentage discount ranging from 20% to 100%, depending on their power consumption.

Further, Ms. Baltazar said the DoE will not set a deadline for registration but advised that only those who avail will be entitled to a discount, which will reflect in their September electricity bills.

“The availment is subject to registration. If still by August qualified consumers failed to register, their September or October bills will not reflect the discount. But since the program is until 2051, registration is ongoing,” Ms. Baltazar said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Japan opening of Barbie marred by controversy ahead of nuclear memorials

RYAN GOSLING and Margot Robbie in a scene from Barbie. — IMDB

TOKYO — The Japan opening of the hit film Barbie was dealt additional setbacks as an online petition gained steam calling on Hollywood studios to disavow a grassroots marketing movement that made light of nuclear holocaust.

A Change.org petition collected more than 16,000 signatures over two days as of Thursday, demanding that Warner Bros. and Universal Pictures, the studio behind the Oppenheimer biopic, call a halt to the “Barbenheimer” hashtag that has helped make the film a global blockbuster.

Barbie, which stars Margot Robbie in the title role, has grossed more than $800 million in worldwide box office, while the film about nuclear scientist J. Robert Oppenheimer that opened around the same time last month has taken in more than $400 million.

Warner Bros. initially latched on to fan-produced memes that depicted Robbie’s Barbie with actor Cillian Murphy’s Oppenheimer alongside images of nuclear blasts.

But fans were not amused in Japan, which in coming days will mark the memorials of the atomic bombings of Hiroshima and Nagasaki 78 years ago.

“If one were to create an illustration or derivative art of Barbenheimer, it should not be of Barbie delighting in a mushroom cloud,” said Koji Maruyama on the Change.org website. “Barbie should never be a character who rejoices in misfortune or tragedy.”

A #NoBarbenheimer hashtag trended online, re-posted more than 100,000 times by one measure, prompting Warner’s Japan division to issue a rare public criticism of its parent company, which then followed with an apology this week.

Mitsuki Takahata, who voices Barbie in the dubbed Japanese version, posted on Instagram on Wednesday that she was dismayed upon learning of the memes and considered dropping out of a promotional event in Tokyo hyping its opening on Aug. 11.

“This incident is really, really disappointing,” she posted.

The same day, the media-savvy US Ambassador to Japan Rahm Emanuel posted a picture of his meeting in Tokyo with director Greta Gerwig, but the response online was chilly.

“Your post at this time will get on the nerves of many Japanese, and will further solidify their resolve to never go to see that movie,” replied a poster known as tsuredzure on the X platform formerly known as Twitter.

A spokesperson for the embassy said Emanuel took his wife, daughter and her friends to see Barbie and that he embraces the film’s message about women’s empowerment.

No Japan release date has been announced for Oppenheimer, which chronicles the creation of the atomic bomb. The film has been criticized for largely ignoring the weapon’s destruction in Japan towards the end of World War II, obliterating two major cities and accounting for more than 200,000 deaths. — Reuters

Questions to ask when rehiring a former worker

Aformer employee sent me a text message exploring the possibility of rejoining the company 10 months after his resignation. Our human resource (HR) manager rejected the idea right away in the absence of a firm policy. He claims it could be a bad precedent. I found his reason overly simplistic — a more important factor might be that accepting resigned employees could encourage other employees to resign in the hope of regaining their posts if they didn’t like their new employer. What’s your view? — Ten Knots.

Here’s another situation when people get mad at HR for coming up with unimpressive answers. We paint HR people as policy enforcers except that in your situation, there’s no policy on rehiring “boomerang” employees.

Critical thinking is difficult for most HR people. That’s why they chose the easy route of using the “bad precedent” argument. But what if you challenge HR to come up with the best solution? It would be like Russian roulette, except that you will be presenting HR a gun with six empty chambers.

Imagine showing him a live bullet going into an unloaded revolver. Close the cylinder and spin it. Then put the gun to your head. A pull of the trigger results in only a click. You don’t feel anything. You’re still alive. You’re lucky. The truth of the matter is — it was all done for show. It was an imaginary gun designed to challenge HR out of its unthinking policy enforcer mindset.

To my mind, playing Russian roulette gets you one disastrous result out of six chances, except that you’re playing with an imaginary gun. This scenario could generate multiple but creative questions and answers. You’re right when you reject HR’s reasoning about setting precedents. Like Russian roulette, it is possible rehiring someone will produce five good outcomes to one disastrous outcome.

I will not give you an outright recommendation. It’s up to you to make the best decision by answering six questions, as in Russian roulette.

SIX QUESTIONS
Asking the right questions is much better than listening to stupid answers given by an HR person who might be an incurable yes-man. After all, we all want our HR people to be rational critical thinkers for the greater good of the organization. That means providing logical answers after evaluating the situation from a variety of perspectives, a result which these questions can elicit:

One, what kind of new experience is a “boomerang” employee offering? What makes this person unique compared to your current crop of workers? Could you develop similar talent using the company’s current resources? If yes, how long can you do it? Or, how easy or difficult it can be?

Two, how did this “boomerang” worker perform during his time with the company? Was he consistent and above-average? Did he exceed management expectations? If a “boomerang” person is average, what’s the assurance that he’ll do much better than before?

Three, what is attracting the “boomerang” person back into the fold? Why is he willing to swallow his pride by accepting the same old pay package? What’s the real reason behind his desire to return? Did he have a difficult experience with his current employer? If yes, what kind of difficult experience?

Four, is the “boomerang” person willing to accept a contract from Day One? Will he accept working as a probationary employee? If he performed above average in at least the last three years of his stay with you, then you can opt to make him a regular worker on Day One.

Five, aside from pay, what other issues could affect the “boomerang” person? Better review the result of his exit interview and discover insights from it. If there are no serious issues accompanying his exit, think of what might happen to the morale of other workers who may feel aggrieved should you decide to rehire.

Last, has the company changed in a way that may not be acceptable to the “boomerang” worker? If major changes took place in the company’s culture and management style, would they be acceptable to the “boomerang” worker? Why or why not? Discover all this in the interview and onboarding process.

LIVE BULLET
Which of these questions is likely to represent the live bullet that could prove disastrous to your organization? It’s question number one: What kind of new experience is a “boomerang” employee offering?

Chances are, he could be offering nothing. What new perspective have gained after a 10-month absence? Could he be bringing confidential information that he stole from the other company? If that’s the case, it’s a good reason not to rehire that person.

You can never predict the consequences that could get your organization in big trouble later on. Therefore, if you’re in doubt, then don’t. Better be safe than sorry.

 

Bring Rey Elbo’s unique leadership program on Superior Subordinate Supervision to rejuvenate your management team. Chat with him on Facebook, LinkedIn, Twitter or e-mail elbonomics@gmail.com or via https://reyelbo.com

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