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‘The Rock’ will return as Luke Hobbs in new Fast & Furious film

DWAYNE “The Rock” Johnson has announced his return to the Fast & Furious film franchise via a video on Twitter.

LOS ANGELES — Dwayne “The Rock” Johnson is returning for an as yet untitled Fast & Furious movie as Luke Hobbs, the actor announced on Twitter on Thursday, after bowing out of the successful franchise in 2021 due to differences with star Vin Diesel.

“Hobbs is back in the Fast and Furious franchise,” Mr. Johnson said in a video message from Hawaii, wearing a lei.

“The next Fast & Furious film you’ll see the legendary lawman in will be the HOBBS movie that will serve as a fresh, new chapter & set up for FASTX: Part II,” he added.

The Fast & Furious franchise has collected more than $7 billion at global box offices, making it the fifth-highest-grossing franchise of all time.

The latest movie, Fast X starring Mr. Diesel and Jason Momoa, debuted last month and landed the second largest global opening weekend of the year, only surpassed by another Universal title, The Super Mario Bros. Movie. It has earned more than $500 million at global box offices.

Mr. Johnson said he and Mr. Diesel have made amends.

“Last summer Vin and I put all the past behind us. We’ll lead with brotherhood and resolve — and always take care of the franchise, characters & FANS that we love,” he said in his post.

The Moana actor went on to explain that he has an “audience first mentality” when it comes to his career and sends love to the entire Fast family.

Franchise veteran writer Chris Morgan will return to oversee the script for the upcoming project and develop Mr. Johnson’s portrayal of the daring diplomatic security service agent he has played in previous films. — Reuters

Is there a business case for Board Diversity?

PAWEL CHU-UNSPLASH

Despite the many studies from different countries on the benefits of board diversity — with at least 90 (and counting) all pointing to a correlation between more women on boards and companies’ better financial performance — there remains skepticism or hesitancy among organizations on adopting policies to make their boards more diverse, and not only in gender, age, and skills, among others. Thus, in my gender equality and women’s economic empowerment advocacy work, I am often asked: “Is there a business case to be made for board diversity?”

REGULATORY ENVIRONMENT FOR BOARD DIVERSITY
The Securities and Exchange Commission (SEC) itself recognizes the importance of board diversity. The Revised Code of Corporate Governance (RCCG) for Publicly Listed Companies (PLCs) recommendation 1.4. states that “the board should have a policy of board diversity.” It further explains: “Having a board diversity policy is a move to avoid groupthink and ensure that optimal decision making is achieved. A board diversity policy is not limited to gender diversity but also includes diversity in age, ethnicity, culture, skills, competence, and knowledge. On gender diversity policy, a good example is to increase the number of female directors, including female independent directors.”

While the SEC continues to adopt a “comply or explain” approach with respect to sustainability reporting, it has taken concrete steps to encourage companies to have more women in their boards.

In March 2022, the SEC launched the gender and development awards to recognize and acknowledge the PLCs with the greatest number of women on their boards. The awards will be continued this year, with an expanded scope to recognize private sector female sustainability champions, young female CEOs, along with female representation in the board room.

WALKING THE TALK
Allow me to share some concrete private sector initiatives that promote board diversity.

At the Institute of Corporate Directors (ICD), the Board of Trustees is diverse with almost parity in gender, with a median age of 63 (the youngest trustee being 45 and the oldest 75), and members having diverse industry skills and experience. The current Board of Governors of the Management Association of the Philippines (MAP) is comprised of four females and five males, likewise almost parity in gender.

BEING PROACTIVE AND INTENTIONAL ON DIVERSITY, EQUITY, AND INCLUSION
The ICD has organized a board diversity, equity, and inclusion (DEI) committee to champion board diversity so that different perspectives and ideas are considered in the exercise of the responsibilities of boards for oversight, decision-making, and governance. Similarly, MAP has its own DEI committee as a separate cluster together with the NextGen committee, recognizing its importance as a management concern and giving focus on programs that will promote DEI, not only in the board but also in all aspects of business.

In 2021, a group of like-minded women organized the NextGen Organization of Women Corporate Directors (NOWCD) to help increase the representation of women leadership positions in public and private company boards which, in 2021, was reported at only 20% in PLCs, below the recommended ratio of at least 30%. Key priority areas of NOWCD are to provide education and training, create meaningful networking for sourcing and placement, expand local and international board opportunities, and build a pipeline of board-ready women.

ICD STUDY ON BOARD DIVERSITY IN PLCS
A key activity of the ICD DEI Committee is to undertake relevant studies, surveys, and dialogue in advancing board diversity and inclusion. In 2022, ICD conducted a study on board diversity in PLCs covering the period 2019 to 2021. Using statistical tools and analysis, the study examined the correlation between the attributes of the boards of 270 active PLCs and their respective returns on equity (ROEs), which are indicators of the companies’ profitability.

The study generated several interesting observations:

• On gender diversity: The presence of women directors in boards in 2020, the start of the pandemic lockdown, showed a significant relationship with ROE. Companies with female directors outperformed companies with an all-male board, though the same was not observed in 2019 and 2021. The percentage of female board members during the three-year period was 17.83% in 2019, 18.82% in 2020, and 19.81% in 2021.

• On the diversity dimensions of age and tenure: the study showed that during the three-year period, age and ROE were significantly and directly related. The higher the mean age of directors, the higher the company’s ROE. However, tenure was not a significant predictor of ROE.

  With respect to the directors’ field of expertise, companies that performed significantly better than their respective counterparts were those that have non-executives, and directors, with expertise in business management and finance.

What do these findings suggest?

• The presence of women in a board has a significant contribution to the improvement of the ROE of a business entity.

• Having board members with expertise in business management and finance can boost the business’ bottom line.

• The knowledge and experience of directors senior in age should be harnessed to enhance performance. Moreover, a company should adopt a succession plan to recruit young directors.

The undeniable correlation between specific dimensions of diversity and corporate financial performance, as highlighted by the ICD study, reinforces the urgent need for businesses to prioritize board diversity. Recent events have clearly shown the necessity of diverse teams and leaders in navigating the challenges of our rapidly evolving world.

By embracing DEI, companies not only drive business performance but also contribute towards economic and social progress.

The time for action is now, and companies both have the opportunity and responsibility to show commitment to meaningful change. By taking proactive steps to foster diversity, show accountability, and take tangible steps towards inclusion, companies can propel themselves forward and truly embody the values that support both business success and social progress.

This article reflects the personal opinion of the author and does not reflect the official stand of the MAP.)

 

Ma. Aurora “Boots” D. Geotina-Garcia is a member of the MAP DEI Committee. She is vice-chair and president of the ICD, chair of NOWCD and president of Mageo Consulting, Inc., a corporate finance advisory services firm.

map@map.org.ph

magg@mageo.net

Aboitiz firm gets 69% of STEAG State Power

ABOITIZ Power Corp. has completed its acquisition of more shares in STEAG State Power Inc., giving it a controlling stake in the power plant operator.

In a stock exchange disclosure, AboitizPower said it had acquired 167.65 million shares of STEAG State Power for about $36.08 million under a share purchase agreement signed in September last year.

“As of June 2, 2023, AboitizPower holds a 69.4% effective equity interest in [STEAG State Power],” AboitizPower told the stock exchange. 

The acquired shares constitute 35.4% of the outstanding capital stock of the target company, it said.

AboitizPower said the total consideration for the shares included locked box interest at a simple rate of 4% per annum on the basis of a 365-day year from Jan. 1, 2021 to March 31, 2022.

According to its website, STEAG State Power owns and operates a 210-megawatt (MW) coal-fired thermal power plant in Mindanao.

The power plant was established under a build-operate-tansfer partnership with National Power Corp. for a period of 25 years. It started commercial operations in November 2006.

At the local bourse on Monday, shares in the company fell by 35 centavos or 0.94% to end at P37.00 each. — Ashley Erika O. Jose

Arthaland to develop P6-B luxury residence in Makati

Arthaland Corp. is developing a luxury condominium called Eluria in Makati City. — COMPANY HANDOUT

By Brontë H. Lacsamana, Reporter

ARTHALAND Corp. is developing a 31-storey luxury condominium in Makati City, which is expected to generate as much as P6 billion in sales.

Located along Rada Street in Legazpi Village, Eluria features 37 limited edition units designed by Sydney-based architecture and interior design firm FMB Architects.

“The main features of Eluria are, one, the hospitality directors and their personalized level of service, and two, the sustainability,” said Oliver L. Chan, Arthaland’s senior vice-president for sales, leasing, and marketing, at a media briefing on May 30.

The company expects about P6 billion in sales value from the property.

“We can really take care of the residents in a personal way. That is the main concept of Eluria — providing another level of service we have never seen before in this country,” Mr. Chan told BusinessWorld.

“Another thing is, we screen the people who want to buy. What we want to create here is a community of cohesiveness.”

Future residents will have the utmost privacy with at most two units per floor except for the Garden and Penthouse Suites that occupy one floor each. Residents will have direct access to their unit through a private lift.

The smallest condominium unit will have three bedrooms with a floor area of 287 square meters (sq.m.), while the Penthouse Suite will have five bedrooms with a floor area of 578 sq. m.

All units are priced at about P540,000 per sq.m., putting the smallest units at around P140 million to P150 million.

Sheryll P. Verano, Arthaland’s senior vice-president for strategic funding and investments, said the project is being built in partnership with real estate private equity investment company ARCH Capital.

“Arthaland has a 60% interest in the project while ARCH Capital has a 40% stake,” she said.

Eluria’s hospitality directors will train for ten weeks with the International Butler Academy in the Netherlands, famous for training butlers for royal families and high net-worth individuals.

Other amenities at Eluria will include a heated saltwater leisure and lap pool, an indoor children’s playroom, a function hall, a potager garden at the roof deck, and chauffeur shuttle services to select nearby destinations. The building will have eight parking levels, with each unit allowed three slots.

The green developer also ensured that, like its other projects, Eluria is pre-certified gold under LEED (Leadership in Energy and Environmental Design) and on track for a BERDE (Building for Ecologically Responsive Design Excellence) certification.

Eluria is a necessary undertaking for Arthaland because it “reimagines the future of sustainable homes for the sophisticated market,” according to Ms. Verano.

Mr. Chan added that the project may be the most elegant and exclusive of Arthaland’s residential portfolio, but its sustainability thrust will remain equal even to affordable projects like the midscale Una Apartments.

“We’re providing sustainability in all the features of all our properties, whether it’s for the top 1% of society or for everyone else,” he said.

Though Eluria just broke ground in November 2022, eleven of its 37 units have already been sold, including the sole Penthouse Suite. The project is expected to be completed in the second quarter of 2026.

MB orders closure of Pangasinan bank

THE POLICY-SETTING Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has closed another rural bank, bringing the number of institutions it has shut down this year to five.

The MB has ordered the closure of Bangko Pangasinan – A Rural Bank, Inc. in its Resolution No. 694.A, according to a bulletin posted on the website of the Philippine Deposit Insurance Corp. (PDIC).

The lender was prohibited from doing business in the country on June 1, pursuant to Section 30 of the amended Republic Act. No. 7653 or the New Central Bank Act.

The same resolution directed the PDIC to proceed with the takeover and liquidation in accordance with the PDIC Charter.

Its charter provides that a bank placed under liquidation is no longer permitted to resume banking business and will not be rehabilitated.

With its main branch located in Dagupan City, the rural bank has a total of four branches in Pangasinan, Alaminos City, and in the municipalities of Burgos, Aguilar, and Bolinao.

“The PDIC took over the bank and all its branches, assets, records and affairs on June 2, 2023,” the PDIC said.

Upon placement of a bank under liquidation, the powers, functions and duties of the directors, officers and stockholders of the bank are terminated.

The directors, officers, and stockholders will also be prohibited from interfering in any way with the assets, records and affairs of the bank.

“Therefore, anyone in possession of any asset and/or records of the closed Bangko Pangasinan – A Rural Bank, Inc. is advised not to allow or honor any transaction affecting the same without the consent of the Receiver and to immediately turnover the said assets and/or records to the designated Deputy Receiver,” the PDIC said.

Bangko Pangasinan is the fifth rural bank closed by the BSP this year. The regulator shut down Rural Bank of San Juan in May, Binangonan Rural Bank, Inc. in April, Rural Bank of San Marcelino, Inc. in March and Rural Bank of San Agustin (Isabela), Inc. in January.

Last year, the BSP closed down nine banks, namely the Rural Bank of Galimuyod (Ilocos Sur) Inc., Rural Bank of Polomolok (South Cotabato), Banco Rural De General Tinio (Nueva Ecija), Farmers Savings and Loan Bank (Bulacan), Metro-Cebu Public Savings Bank, Rural Bank of Mahaplag (Leyte), Rural Bank of Salcedo (Ilocos Sur), Rural Bank of San Lorenzo Ruiz (Siniloan), and Rural Bank of San Nicolas (Pangasinan).

In 2021, the number of banks closed by the BSP climbed to 13 from just five in 2020.

Despite the rising number of closed rural banks, central bank data showed that total assets of small lenders rose by 19.8% to P343.84 billion as of end-December 2022 from P287.03 billion a year prior. — K.B. Ta-asan

Shang Properties, Inc. to hold 2023 Annual Meeting of Stockholders on June 28

 


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Spider-Man: Across the Spider-Verse spins new spider worlds

Spider-Man: Across the Spider-Verse (2023) — IMDB.COM

LOS ANGELES — American film-producing and writing duo Christopher Miller and Phil Lord were determined to weave a combination of art and heart into Sony Picture’s Spider-Man: Across the Spider-Verse, and that meant broadening the stories of the Spider people.

For their sequel to 2018’s Spider-Man: Into the Spider-Verse, they have sought to build new worlds to immerse audiences in a web of animated adventure.

“We wanted each one to look very distinctive and have their own aesthetic,” Mr. Miller told Reuters ahead of the film’s opening on Friday. “So that was a really fun opportunity to tell a story where you get to go to all these places and see these worlds you’ve never seen before and give the audience something they’ve never experienced.”

The movie traces the journey of teenager Miles Morales, voiced by Shameik Moore, embarking on a mission with love interest Gwen Stacy, voiced by Hailee Steinfeld, to save the Spider-People in every universe from catastrophe.

The animation styles were influenced by the Miles Morales Marvel comic books created by Brian Michael Bendis and Sara Pichelli, and also incorporate a watercolor look often seen in cover art for comic book series Spider-Gwen.

The voice cast includes Issa Rae as Spider-Woman, Oscar Isaac as Spider-Man 2099, Daniel Kaluuya as Spider-Punk and Brian Tyree Henry as Miles’ father, Jefferson Davis.

The theme? For people from all walks of life to unapologetically accept themselves.

“With this story in particular, there are just so many grounded themes of just coming into your own, trusting yourself, learning yourself,” Ms. Rae said.

At the world premiere in Los Angeles on Tuesday last week, Mr. Henry told Reuters that there is a Spider-Man for anyone because heroes look like every sort of person from every background.

The pre-pandemic Spider-Man: Into the Spider-Verse raked in over $35 million during its first three days of release and went on to win the 2019 Oscar for best animated feature film.

Despite some concerns that those box-office-busting days are far from returning, the film debuted with $120.5 million in the domestic box office, the second-biggest opening weekend of the year behind The Super Mario Bros. film that garnered $146 million. The movie’s box office performance surpassed Sony Pictures Animation’s and the BoxOffice Pro’s estimates of $75 million to $115.5 million over its first three days of release in the US and Canada.

For many film critics, this new superhero movie has all the makings of a box office success.

Early feedback from review aggregator Rotten Tomatoes gave the film a 95% on the Tomatometer.

“This feels like it could have been the first movie designed to earn a thumbs up from Andy Warhol and Stephen Hawking,” Owen Gleiberman of Variety wrote. — Reuters

A Brown Company, Inc. to hold annual meeting of stockholders via remote communication on June 30

 


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CTA denies OceanaGold’s refund claim

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has denied the refund claim of OceanaGold Philippines, Inc. worth P142.24 million allegedly representing its wrongfully collected excise taxes from July to December 2017.

In a 31-page ruling dated June 1 and made public on June 2, the CTA Special First Division said the firm failed to prove its entitlement to a refund of the subject excise taxes.

“Petitioner (OceanaGold), however, failed to prove that the payments of the subject excise taxes, during the five-year period were detrimental to its recovery of the said pre-operating and property expenses,” Associate Justice Catherine T. Manahan said in the ruling.

Citing the 1994 Financial or Technical Assistance Agreement between the government and Arimco Mining Corp. to which the OceanaGold is a contractor, the court said the firm failed to prove the taxes resulted in a loss in its operating expenses.

OceanaGold, a multinational gold producer, argued that it complied with Tax Code requirements and that it is exempt from excise tax until the end of the recovery period under the Philippine Mining Act and a circular of the Department of Environment and Natural Resources.

The tribunal acknowledged the entitlement to tax incentives under the law, but it said the law mandates a contractor to prove that the taxes were detrimental to its operating expenses during the subject period.

“Petitioner must show that the collection of excise tax during the recovery period resulted in loss or harm in its person or property,” it said.

“There is no specific evidence which shows such fact, and in sum, we see no valid ground to grant the present claim for refund.” — John Victor D. Ordoñez

Century Pacific Food, Inc. sets 2023 Annual Stockholders’ Meeting on July 6

Notice of Annual Stockholders’ Meeting

Notice is hereby given that the Annual Stockholders’ Meeting will be held on Thursday, July 6, 2023 at 8:30 in the morning.

The agenda for the said meeting shall be as follows:

  1. Call to Order
  2. Secretary’s Proof of Due Notice of the Meeting and Determination of Quorum
  3. Approval of the Minutes of the Stockholders’ Meeting held on June 30, 2022
  4. Management’s Report
  5. Ratification of Acts of the Board of Directors and Management During the Previous Year
  6. Election of Directors (including Independent Directors)
  7. Appointment of External Auditor
  8. Approval of the Amendment of the Company’s Articles of Incorporation
  9. Other Matters
  10. Adjournment

A brief explanation of the agenda item which requires stockholders’ approval is provided in the Definitive Information Statement. The Definitive Information Statement, Management Report, and Annual Report for 2022 will be uploaded to the Company’s Website at https://www.centurypacific.com.ph/ and at PSE EDGE under Century Pacific Food, Inc. Company Disclosures.

The record date for the determination of the shareholders entitled to vote at said meeting is on May 16, 2023.

ln light of current conditions and in support of the efforts to contain the spread of COVID-19 virus, stockholders may attend the meeting and vote via remote communication only.

Stockholders should pre-register at this link: https://centurypacific.com.ph/investor-relations/ASM2023 from June 7, 2023 to June 11, 2023.

Upon registration, Stockholders shall be asked to provide the information and upload the documents listed below (the file size should be no larger than 5MB):

A. For individual Stockholders:

  1. Email address
  2. First and Last Name
  3. Address
  4. Mobile Number
  5. Current photograph of the Stockholder, with the face fully visible
  6. Stock Certificate Number and number of stocks held
  7. Valid government-issued ID
  8. For Stockholders with joint accounts: A scanned copy of an authorization letter signed by all Stockholders, identifying who among them is authorized to cast the vote for the account, as well as valid government-issued ID of the authorizing stockholders

B. For corporate/organizational Stockholders:

  1. Email address
  2. Name of stockholder
  3. Address
  4. Mobile Number
  5. Phone Number
  6. Stock Certificate Number and number of stocks held by the stockholder
  7. Current photograph of the individual authorized to cast the vote for the account (the “Authorized Voter”)
  8. Valid government-issued ID of the Authorized Voter
  9. A scanned copy of the Secretary’s Certificate or other valid authorization in favor of the Authorized Voter

Stockholders who will join by proxy shall download, fill out and sign the proxy form found in https://centurypacific.com.ph/investor-relations/ASM2023. Deadline to submit proxy forms is on June 16, 2023.

All registrations shall be validated by the Corporate Secretary in coordination with the Stock Agent. Successful registrants will receive an electronic invitation via email with a complete guide on how to join the meeting and how to cast votes.

Only stockholders of record as of the close of business on May 16, 2023 are entitled to notice and to vote at the meeting.

(SGD.)
MANUEL GONZALEZ
Corporate Secretary

 


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‘The lady doth protest too much, methinks.’

PHILSTAR FILE PHOTO

That is a line from William Shakespeare’s play Hamlet that has become a common expression that implies that someone who denies something very strongly and repeatedly only puts into others’ minds that the opposite is true.

After her demotion from senior deputy speaker to deputy speaker on May 17, Pampanga Representative Gloria Macapagal Arroyo released a long-winded statement denying that she plotted to oust Leyte Representative Martin Romualdez from the Speakership. She explained that while she aspired to be Speaker of the House of Representatives after Ferdinand Marcos, Jr. was elected president, she gave up the goal when she realized that Mr. Marcos was more comfortable with his first cousin, Mr. Romualdez, as Speaker.

She said she would never take any action that would destroy the UniTeam that she helped form. She also clarified that she did not have any conversation with any politician or lawmaker to plot, support, encourage, or participate in any way in any alleged House coup.

The other Sunday, May 28, Ms. Arroyo once again denied rumors that she was “duped” by a congresswoman into planning to oust Speaker Romualdez after being told the plan had the blessings of First Lady Liza Marcos. She said, “no House coup can ever succeed without the consent of the President,” stressing that she did not talk with any House member to “plot, support, encourage, or participate in any way” in such overthrow efforts. “I made a humble contribution to the joining of forces that became the UniTeam, and the resulting supermajority in the House is a major force for delivering our President’s agenda. Thus, I would never take any action to destroy it,” she added.

Ms. Arroyo doth protest too much, methinks.

She has put into my mind the opposite of what she vehemently denies. Also, she must have done something hateful to the powers that be in the House of Representatives for her to be demoted in rank unceremoniously. To a person with a superiority complex like her (the position of “senior deputy speaker” was created just for her because she was once president), the demotion to the level of nine other deputy speakers is a painful punishment.

She herself thinks the cause of her being suspected of plotting a coup was her special meeting with a delegation of congressmen outside the country. Yet, she does not explain what the meeting was about to allay suspicion of a sinister scheme on her part. Maybe she has difficulty weaving a plausible story other than the true one.

She says she no longer aspires to be Speaker of the House. I take that pronouncement with a grain of salt. So have veteran politicians and prominent civil society personalities it seems. That is because she has a reputation for going against her own avowals.

When she was installed as the new president on Jan. 20, 2001, the day after President Joseph Estrada was chased out of Malacañang, she said: “We must change the character of our politics in order to create fertile ground for true reforms. Our politics of personality and patronage must give way to a new politics of party programs and process of dialogue with the people.” Shortly after, she nominated her son, Mikey, who had no preparation nor inclination for public office (he wanted to be a movie actor), for vice-governor of Pampanga, and Ralph Recto and Francis Pangilinan for senators simply because they are the husbands respectively of showbiz celebrities Vilma Santos and Sharon Cuneta.

In December 2002, she announced in dramatic fashion that she would not run for president in the elections of 2004. On Rizal Day, Dec. 30, 2002, she declared:

“Today, we are honoring Jose Rizal. A century ago, he made the ultimate sacrifice for the Filipino people, giving up his life at Luneta. As we honor him today, it is fitting that I ask each Filipino to also make a sacrifice for our country. My reading of the political winds tells me that the 2004 elections may well go down in history as among the most bitterly contested elections ever. Consequently, we may end up stalling national growth for a few years more. In view of this, I have decided not to run for President during the elections of 2004.

“On the other hand, relieved of the burden of politics, I can devote the last year and a half of my administration to the following: first, strengthening the economy: to create more jobs and to encourage business activities that is (sic) unhampered by corruption and red tape in government; second, healing the deep division within our society; third, working for clean and honest elections in 2004.”

Various sectors of Philippine society sang praises to her for abandoning her quest for a mandate by the electorate in the presidential race in 2004. The usually critical press hailed her for her decision not to run in the presidential derby in 2004 to heal a deeply divided country. The Catholic hierarchy also applauded her for her “example of self-sacrifice.”

But she changed her mind.

On Oct. 4, 2003 she declared:

“I longed together with our people to savor the gains of unity by taking myself out of the political landscape. For a while our enemies halted and we moved forward. We proved to ourselves how much we can achieve when we defeat divisiveness. I have gained the experience necessary to understand what we need to do in order to change society in a way that leads to economic development and the elimination of poverty.

“Thus, I have deferred my retirement. I will sacrifice my yearnings for personal quiet and release from presidential strain and anxiety. And I will offer myself to the electorate in 2004. I will offer myself as the leader with the experience and vision necessary to change society, to achieve economic development, and eliminate poverty. Tatakbo ako sa pagka-pangulo sa eleksyon ng Mayo 2004 (I will run for president in the elections of May 2004).

“I am not motivated to run because I was thrust, shoved, urged or pressed. I see the need for a greater sacrifice and I will make it.”

To her, not running for president is a sacrifice. So is running for president. Either way she is a martyr.

I expect her to maneuver to be speaker again. She did it on July 23, 2018. While members of Congress were waiting for President Rodrigo Duterte to deliver his third State of the Nation Address, Representative Arroyo was directing a power play to get her elected speaker in place of Pantaleon Alvarez. She succeeded in spite of the fact that Mr. Alvarez was a fellow Davaeno and long-time friend of President Duterte.

But she has to settle scores first. She has been crossed not once but twice. It should be noted that on the two occasions she denied plotting to overthrow Speaker Romualdez, she made reference to her having contributed to the joining of the forces that became the UniTeam, and the resulting election of Bongbong Marcos and Sara Duterte as president and vice-president, respectively. I take her reference to her being the broker of the alliance of the two political forces as her way of saying she should be part of the triumvirate that lords over the present supermajority. But she was edged out by the first cousin of the President. That is offense No. 1.

As a consolation, she was given the ceremonial position of senior deputy speaker. But even that was taken away from her, unceremoniously at that. That is offense No. 2.

I wrote in my last column that Ms. Macapagal Arroyo will not take lightly the wrongs done to her. Woe unto those who had hurt her prodigious pride for they shall suffer considerably. Hell has no fury like Gloria Macapagal Arroyo wronged.

Let me close with another line from one of Shakespeare’s plays in The Merchant of Venice, Shylock asks rhetorically: “If you prick us do we not bleed? If you tickle us do we not laugh? If you poison us do we not die? And if you wrong us shall we not revenge?”

 

Oscar P. Lagman, Jr. has been a keen observer of Philippine politics since the 1950s.

Financing sustained growth: MUP pension reform

(First of four parts)

This is the first of a four-part series on the subject of financing sustained growth. We start by looking at the cash operations report as of April this year which the Bureau of the Treasury (BTr) released last week.

HIGHER REVENUES, ANOTHER BUDGET SURPLUS
The good news is that tax revenues have reached P400 billion for the first time, while expenditures have not increased by a proportional amount — so we experienced a big fiscal surplus of P67 billion in April, compared with a deficit of P274 billion in 2020.

I computed the comparable January-April totals from 2019 to 2023 — the good news is that the deficit this year is the lowest since 2020, and while borrowings are still at P1 trillion, this is lower than in 2020. National Government (NG) spending and interest payments for public debt are the highest this year (see Table 1).

So, revenues have acquired a momentum of their own as the economy expands its recovery and this is good. The immediate and medium-term goals are to significantly reduce the deficit and annual borrowings, and reduce interest payments and amortization. There must also be a significant reduction in some items of the expenditure side.

During non-crisis years (whether caused by economic issues, a virus, etc.), the government should aim to have a fiscal surplus and retire some public debt so that the debt/GDP ratio can go down to 30%, even 20%, and we can save on interest payments and get higher credit ratings. Then, when a crisis hits, the debt/GDP ratio can go up again to 40% or higher. Once a crisis is over, it is time to again retire more public debt and aim to get the debt/GDP ratio back to 30% or less. We should target more fiscal responsibility, with a government living within its means, and welfare dependents learning how to let go of subsidies and contributing to the economy someday.

MUP PENSION REFORM
The annual pension for military and uniformed personnel (MUP) remains a big and major deficit generator yearly. The full amount is taken from taxpayers because MUPs themselves make no contributions to their retirement — they keep all their salaries and bonuses monthly.

I computed government revenues, expenditures, and public debt per employed person in the Philippines, then the MUP pension burden. The bad news is that public debt per employed person has jumped from P193,000 in 2019 to P294,000 in April 2023.

Expenditures for active personnel include their a.) basic pay, b.) other compensations (combat duty pay, combat initiative pay, hazard duty pay, etc.), and, c.) other benefits (terminal leave, retirement gratuity, PhilHealth and Pag-IBIG contributions by government, etc.).

Active-duty personnel like soldiers are not just put in harm’s way, they are well protected by taxpayers with high spending on capital outlay (CO) like tanks and trucks, fighter jets and choppers, boats and battle ships, and with high maintenance and other operating expenses (MOOE) like ammunition, bombs and gasoline.

The numbers show the following.

One, for active personnel, CO + MOOE rose from P106 billion in 2019 to P145 billion this year. Their basic pay also rose consistently.

Two, the MUP pension burden per employed person has increased from P2,400 in 2019 to P3,300 in 2022, and is projected to reach P4,400 this year.

Three, the MUP pension alone over the basic pay of active-duty personnel has increased, from 63% in 2019 to 94% last year, and is projected to reach 115% this year. And pension over total expenditures for active personnel has increased from 24% in 2019 to 41% this year (see Table 2).

The economic team led by the Department of Finance (DoF) and Department of Budget and Management (DBM) recently conducted consultations with the Armed Forces of the Philippines, the Philippine Air Force, and the Presidential Security Group.

The MUPs’ optional retirement beneficiaries can choose from any of these three options: 1.) Receive all their pension benefits in one lump sum upon retirement, 2.) Get 60 months pension in advance then a monthly pension after five years, and, 3.) receive pension benefits at the age of 57.

These proposals are fine. What I am proposing to the economic team — and I hope the MUP pensioners will consider this — is that their pensions should be taxed. Currently their generous pension is tax-free. The pensioners contributed zero to the fund when they were still on active duty, and as pensioners contribute zero to it in the form of tax. Since they benefit from tax money, they should contribute to such a fund.

PDEAA HOMECOMING
On June 22, the Program in Development Economics Alumni Association (PDEAA) of the UP School of Economics (UPSE) will hold a homecoming, with two prominent alumni of the program as guest speakers. They are Finance Secretary Benjamin Diokno (the 7th PDE batch) and DBM Secretary Amenah Pangandaman (the 33rd PDE batch). The two speakers will talk about sustaining economic growth and how to finance it, and how to better allocate spending given limited fiscal space.

After the lectures, there will be some programs for the alumni. So, graduates of PDE from the late 1960s to recent batches are all invited to attend this very important event.

(To be continued.)

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers

minimalgovernment@gmail.com

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