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Tax court voids BIR’s P355.48-M assessment on cement company

CTA.JUDICIARY.GOV.PH

THE COURT of Tax Appeals (CTA) has ruled in favor of Holcim Philippines Manufacturing Corp., canceling a P355.48-million deficiency capital gains tax (CGT) assessment previously levied by the Bureau of Internal Revenue (BIR), citing that the BIR’s right to assess the tax had expired. 

The tax court’s Second Division, in a decision promulgated on Feb. 14, ruled that the formal letter of demand (FLD), issued on July 1, 2019, was void because it was released beyond the three-year prescriptive period.

“It cannot be denied that respondent (BIR) became aware of the subject transactions and the alleged tax deficiencies of [the] petitioner at that time. Counting ten (10) years from the issuance of the said BIR letter, [the] respondent had until April 12, 2012, to assess [the] petitioner,” the 22-page ruling penned by Associate Justice Ma. Belen M. Ringpis-Liban read. 

“However, it was only on July 1, 2019, that the FLD was issued — more than seven years after the last day of the prescriptive period. Hence, the 10-year period to assess has also prescribed,” it added.

The tax court also noted that internal revenue taxes must be assessed within three years from the last day prescribed by law for filing the tax return or the actual filing date, whichever is later.

According to Section 203 of the National Internal Revenue Code of 1997, “internal revenue taxes shall be assessed within three (3) years after the last day prescribed by law for the filing of the return.”

In ruling in favor of the cement company, the tribunal also rejected the BIR’s argument for a ten-year assessment period, as it failed to provide convincing evidence that Holcim willfully filed a false return.

The CTA stated that to prove a misstatement was deliberate or willful, “clear and convincing evidence must be presented for the ten (10)-year prescriptive period to be invoked.”

It noted that the BIR was aware of the transactions and alleged tax deficiencies as early as April 12, 2002, when it requested an informal conference with Holcim.

Counting ten years from this date, the court determined that the “ten (10)-year period to assess has also prescribed.”

The case arose when Republic Cement Corp. (RCC) sought a Certificate Authorizing Registration (CAR) to transfer shares of Iligan Cement Corp. from Alsons Cement Corp. (ACC) — now Holcim Philippines Manufacturing Corporation — to RCC. This transfer involved shares of stock sold in December 2000 and January 2001. 

The BIR initiated an investigation into the transaction, requesting documents in July 2001 and inviting ACC to an informal conference in April 2002 to discuss potential capital gains tax implications.

Holcim paid CGT on Jan. 8, 2001, and Feb. 19, 2001, amounting to P4,457,161.29 and P141,556,632.33, respectively.

After years of inactivity, Holcim requested a status report on the CAR issuance in April 2015. The BIR responded in May 2015, stating that the docket was under review and advising Holcim to reconstruct the documents and reapply for the CAR.

Holcim then submitted documents in January 2016 for the transactions that took place in December 2000 and January 2001. 

The BIR issued a Notice of Informal Conference in March 2018, followed by a Preliminary Assessment Notice (PAN) in July 2018, alleging a deficiency in CGT. Holcim replied to the PAN in September 2018. 

In July 2019, Holcim received an FLD and an Audit Result/Assessment Notice (FAN), reiterating the alleged deficiency taxes. Holcim protested the FAN and FLD in the same month.

The BIR denied Holcim’s request for reconsideration in a Final Decision on Disputed Assessment, which Holcim received on Nov. 10, 2020.

As a result, Holcim filed a Petition for Review with the CTA on Dec. 3, 2020, seeking the cancellation of the deficiency CGT assessments totaling P355,479,878.19. — Chloe Mari A. Hufana

T-bill yields steady as market digests RRR cut

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THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as rates barely moved after the Bangko Sentral ng Pilipinas (BSP) said it will cut banks’ reserve requirement ratios (RRRs) further.

The Bureau of the Treasury (BTr) raised P22 billion as planned from the T-bills it auctioned off on Monday as total bids reached P83.711 billion, almost four times as much as the amount on offer and higher than the P56.275 billion in tenders recorded on Feb. 17.

Broken down, the Treasury borrowed P7 billion as planned via the 91-day T-bills as tenders for the tenor reached P24.475 billion. The three-month paper was quoted at an average rate of 5.329%, inching up by 1.1 basis points (bps) from the 5.318% seen at the previous week’s auction, with accepted rates ranging from 5.28% to 5.358%.

The government also made a full P7-billion award of the 182-day securities as bids stood at P25.936 billion. The average rate of the six-month T-bill stood at 5.672%, 1 bp higher than the 5.662% fetched the previous week. Tenders accepted by the BTr carried yields of 5.64% to 5.693%.

Lastly, the Treasury raised the programmed P8 billion via the 364-day debt papers as demand for the tenor totaled P33.3 billion. The average rate of the one-year debt decreased by 2.6 bps to 5.754% from 5.78% previously, with bids accepted having rates of 5.74% to 5.77%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.2933%, 5.592%, and 5.7889%, respectively, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the Treasury.

T-bill yields were mostly steady as the market is still assessing the potential impact of the RRR cuts, which will take effect next month, a trader said in a text message.

“Treasury bill average auction yields mostly corrected slightly higher for the third straight week … after the comparable short-term PHP BVAL yields were mostly slightly higher week on week,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Ricafort said yields on government securities have climbed following the BSP’s surprise decision to pause its easing cycle this month, but its announcement of further cuts in banks’ reserve ratios partially offset the rise in T-bill rates this week. 

The RRR is the portion of reserves that banks must hold onto rather than lending out.

On Friday, the BSP said it will reduce the reserve requirement ratio for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 bps to 5% from 7% effective March 28.

The RRR for digital banks will be cut by 150 bps to 2.5%, while that for thrift banks will be slashed by 100 bps to 0%.

Rural and cooperative banks’ RRR has been at 0% since October, which was the last time the BSP cut lenders’ reserve ratios.

“The BSP reiterates its long-run goal of enabling banks to channel their funds more effectively toward productive loans and investments. Reducing RRRs will lessen frictions that hinder financial intermediation,” the central bank said.

Monday’s T-bill auction was the last one for this month. The BTr raised P93.6 billion via T-bills in February, higher than the P88-billion plan, as it upsized its award at one auction.

On Tuesday, the BTr will offer P30 billion in reissued 20-year Treasury bonds with a remaining life of 19 years and three months.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — A.M.C. Sy

China’s Ne Zha 2 animated blockbuster fuels nationalist pride, Hollywood hostility

BEIJING — As Ne Zha 2 shatters box office records, the Chinese animated film about a mythical boy with magical powers has sparked national pride and now hostility towards rival Hollywood offerings such as the latest installment of Captain America.

Dazzling Chinese audiences with dramatic fight scenes, Ne Zha 2 has become the highest-grossing animated film of all time globally, with record-breaking sales at home helping the movie dethrone Disney’s Inside Out 2.

But the film’s success overseas remains to be seen, sparking intense debates on Chinese social media on the merits and failings of the movie. Criticism of Ne Zha 2 has often been met with heated rebuttals.

Anti-Hollywood rhetoric has also emerged this week, with some on Chinese social media expressing frustration over the alleged lack of Ne Zha 2 screenings in North America.

“It doesn’t matter if Ne Zha 2 can survive overseas, but Captain America 4 must die in China,” according to one social media post, referring to Captain America: Brave New World which opened in China last week.

One cinema in southwest China even told a local state-backed media that it would support Ne Zha 2 by not screening the Marvel movie.

In an editorial on Feb. 16, the nationalist Chinese tabloid Global Times wrote that Captain America: Brave New World was faltering in China because Chinese audiences were “losing patience with formulaic expressions reliant on special effects and drawn-out dialogue.”

In contrast, Ne Zha 2 connected with “contemporary youth values” and had “multi-character emotional resonance,” the newspaper wrote.

The Marvel movie has made just 87.1 million yuan ($11.99 million) during its opening week in China, according to ticketing platform Maoyan, a fraction of the $88 million opening weekend ticket sales in the US.

In comparison, Ne Zha 2, which opened in China on Jan. 29, has raked in 12.6 billion yuan including international sales. — Reuters

PH1 says One Lancaster Park’s Tower 1 nearly sold out

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PH1 WORLD Developers, Inc. (PH1WD) reported strong take-up for One Lancaster Park (OLP) in Imus, Cavite, with its first two towers reaching 96% and 60% sold, respectively.

Its third tower, launched in January, has achieved a 30% sales rate.

Meanwhile, OLP’s fourth tower is scheduled for launch in the latter part of this year, according to the property development arm of Megawide Construction Corp.

“OLP brings green living closer to Metro Imus, Cavite, and offers a perfect balance of both city and nature life. By combining the convenience of metro living and the open-air feel of suburban space, PH1WD offers the perfect commune for future residents,” PH1 President Gigi G. Alcantara said in a statement on Monday.

Megawide has said it expects to complete the Tower 1 of its OLP project with Property Company of Friends, Inc. (Pro-Friends) by 2026

OLP features one- and two-bedroom units ranging from 28.62 square meters (sq.m.) to 67.24 sq.m.

Approximately 70% of the property is dedicated to open spaces, which include a seven-ha park, pocket gardens, a play area, elevated walkways, a clubhouse, adult and kiddie swimming pools, and a basketball court.

Ms. Alcantara highlighted the growth potential of suburban areas like Cavite in the real estate sector. 

“While Metro Manila is affected by the ongoing glut in condominium units, we believe that sprawling suburban areas, such as Cavite, offer significant growth potential in the real estate space, and OLP’s value proposition will be an absolute come-on,” she said.

OLP is located in Imus City, less than an hour from Metro Manila, and is accessible via the Cavite Expressway (Cavitex), Cavite-Laguna Expressway (CALAX), and the South Luzon Expressway through the MCX-Daang Hari Exit.

Additionally, the upcoming Phase 1 of the Cavite Bus Rapid Transit (BRT) System, developed by its parent firm Megawide, is expected to enhance connectivity in the area.

The 42-kilometer bus system will serve Imus, General Trias, Tanza, Kawit, Trece Martires, and nearby areas. The first phase includes three terminals and 27 stations, with a point-to-point (P2P) service connecting to the Parañaque Integrated Terminal Exchange (PITX). 

The Cavite BRT System is expected to improve the accessibility and viability of OLP and PH1’s other projects in Cavite, the company said. 

“As a first-world property developer, we envision social and economic sustainability in our ongoing and future projects and ensure that synergies are harnessed within the bigger group,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said. 

“In OLP, for instance, our very own engineering, procurement, and construction (EPC) services, as well as precast and construction solutions (PCS) products, will be utilized to capture the end-to-end value chain.” — Beatriz Marie D. Cruz

5 Steps to mitigating SME cash flow gaps

JAKUB ZERDZICKI-UNSPLASH

Henry, the managing director of a facade maintenance company based in Manila, was having a great day — until he walked into his client’s office. Instead of collecting a promised P3 million check, he was met with a casual apology. “You’ll have it next week,” his client said. But Henry didn’t have a week. He had salaries and utilities to pay in three days. That missing P3 million wasn’t just a delay; it was a cash flow gap that could disrupt his entire business.

If you’re a business owner, you’ve probably been in Henry’s shoes. Cash flow gaps are one of the most common challenges for small- and medium-enterprises (SMEs) in the Philippines, usually caused by delayed collections, unexpected expenses, or seasonal fluctuations in revenue. The bad news? They’re stressful, especially if you have to come up with the money quickly. The good news? There are immediate steps you can take to navigate them and keep your business running smoothly.

1. Analyze your cash flow. The first step is to analyze your current cash flow situation by reviewing your financial statements, including your cash reserves, overdue invoices, and cash tied up in work in progress. This analysis will help you achieve two crucial goals. First, you’ll determine the exact amount needed to return to a positive cash flow position. Second, you’ll identify the root causes of your cash flow issues — and see if there are solutions that don’t require an immediate cash infusion.

2. Follow up on your accounts receivable. Do you have clients with overdue invoices? Follow up on them, especially the ones with the largest amounts owed. In this case, a friendly phone call to the client may work better than sending an e-mail or text reminder for payment. You can also negotiate a payment plan with them so they can pay part of the money owed immediately. Meanwhile, you can offer a small discount to clients with upcoming invoices to encourage them to pay earlier.

In the future, make it a point to improve your accounts receivable process by invoicing promptly, sending automated payment reminders, and having a clear payment policy to avoid confusion or delays.

3. Negotiate on your accounts payable. If your cash flow gap is due to accounts payable, consider negotiating longer payment terms with your suppliers. Extending your payment terms can provide temporary relief and help you manage cash outflows better in the future. Make it a practice to build a strong relationship with your suppliers — it can make them more willing to accommodate your needs during challenging times.

4. Reduce unnecessary expenses. Identify areas where you can cut costs without compromising the quality of your products or services. Review your expenses and prioritize essential spending. Consider the following cost-cutting measures:

• Eliminate Non-Essential Subscriptions: Cancel subscriptions or services that are not currently critical to your business operations.

• Optimize Inventory Management: Implement efficient inventory management practices to reduce excess stock and minimize holding costs.

• Review Utility and Overhead Costs: Evaluate your utility and overhead expenses and explore ways to reduce them — such as the use of energy-efficient equipment and appliances.

5. Explore a business credit line. If your cash flow gap persists, it may be time to explore financing options to bridge the gap. One effective solution is a credit line, a financial tool that provides flexible access to funds when needed, similar to a credit card.

In the Philippines, some financing companies, such as First Circle, offer non-collateral and free-to-open credit lines. This means you can activate a credit line before even encountering a cash flow gap, then keep it on standby as needed. New credit line applications can also be processed in as fast as two business days — a definite advantage over business loans, which can take a while to get approved.

Experiencing a cash flow gap is a common challenge for business owners — but it doesn’t have to derail your business. By being proactive in analyzing your cash flow, optimizing your accounts receivable, and reducing unnecessary expenses, you can come up with solutions that do not require coming up with money upfront. And in dire cases, exploring financing options, like a credit line, can help you right the ship quickly — just like it did for Henry, who applied for and activated a credit line in the three days before his payroll obligations were due. n

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.

 

Benedict S. Carandang is a member of the MAP Technology Committee and is the VP for External Relations of First Circle. This article was co-written with Jess Jacutan, an SEO and content marketing consultant for First Circle, an SEC-registered financial technology company that has been empowering SMEs through funding and free growth tools since 2016.

map@map.org.ph

benedict@firstcircle.ph

DMCI Homes eyes P6.55-B investment in Quezon City project The Erin Heights

DMCIHOMES.COM

DMCI HOMES, Inc. plans to invest P6.55 billion in developing The Erin Heights, a 55-storey high-rise condominium in Quezon City, slated for turnover by October 2027.

The project is expected to generate P12.3 billion in revenues, Dennis O. Yap, vice-president for project development at DMCI Homes, said in an e-mail.

Located on the corner of Commonwealth Avenue and Tandang Sora Avenue in Quezon City, The Erin Heights will comprise 1,606 units, with approximately 54% already sold.

“Beyond its prime location and luxurious amenities, The Erin Heights is designed to provide a seamless balance between work and leisure, making it an ideal sanctuary in the heart of a bustling city,” DMCI Homes said in a statement on Feb. 11.

The property offers studio-type units ranging from 28.50 to 32.50 square meters (sq.m.), two-bedroom units from 48.50 to 117 sq.m., and three-bedroom units from 76.50 to 183 sq.m.

Units feature balconies or extended living areas, designed to maximize natural light and ventilation through DMCI Homes’ Lumiventt technology. The modern tropical design aims to provide a sense of tranquility amid the urban landscape.

Approximately 53% of the total area is allocated for open spaces, including gardens, pools, and leisure facilities.

Other key amenities include a Sky Lounge with a snack bar and kitchenette and a Sky Deck Pool overlooking the city skyline.

Residents will also have access to landscaped atriums, an open lounge, a fitness gym, a shooting court, a lap pool, a leisure pool, a kiddie pool, a game area, and a coworking space.

The development will offer subscription-free, commercial-grade fiber internet.

For transportation, DMCI Homes’ carpool program, RideShare, will provide residents with convenient access to key locations.

A property management office within The Erin Heights will ensure a well-maintained, worry-free, resort-like living experience.

Strategically located near business hubs, universities, major transport networks, healthcare facilities, leisure destinations, and nature parks, the project offers prime accessibility.

To ensure construction quality, DMCI Homes said it employs a 102-point inspection system, conducting detailed checks and testing at every phase to meet DMCI specifications, industry standards, and government regulations.

The structure features an outrigger system strategically designed to provide lateral load resistance against strong winds and earthquakes. This advanced engineering method is also used in landmarks such as Burj Khalifa in Dubai and Taipei 101 in Taiwan.

As of January, the project is 36.57% complete, remaining on schedule for its 2027 target completion. — Beatriz Marie D. Cruz

Banks’ deposits rise to P20.37 trillion

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THE PHILIPPINE banking system’s total deposits rose by 7% year on year to P20.37 trillion in 2024 from P19.03 trillion in 2023 on the back of increases in total accounts and depositors.

Latest Bangko Sentral ng Pilipinas (BSP) data showed that the number of deposit accounts jumped by 17.9% to 143.35 million as of end-December 2024 from 121.6 million a year prior.

The number of depositors likewise climbed by higher by 14.7% year on year to 128.73 million from 112.27 million.

The Philippine banking system’s deposit liabilities were mostly made up of savings (P8.84 trillion), time (P5.88 trillion) and demand (P5.62 trillion) deposits, the data showed.

Broken down, deposits held by universal and commercial banks went up by 6.8% year on year to P19.1 trillion at end-December from P17.88 trillion.

Big banks had a total of 92.99 million accounts and 86.01 million depositors in the period.

Meanwhile, thrift banks recorded deposits of P826.205 billion as of December, up by 4.7% from P789.31 billion a year prior. The number of deposit accounts at these lenders stood at 7.42 million, with 7.27 million depositors.

Deposits of rural and cooperative banks also climbed by 19.8% to P350.178 billion at end-2024 from P292.24 billion the previous year. These banks had a total of 23.55 million deposit accounts and 23.05 million depositors.

Lastly, digital banks’ total deposits surged by 39.5% to P96.27 billion at end-December from P69 billion a year prior.

The number of deposit accounts at digital banks hit 19.39 million with 12.4 million depositors.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the growth in Philippine banks’ deposits was partly due to faster lending.

Separate BSP data showed that outstanding loans of universal and commercial banks jumped by 12.2% year on year to P13.1 trillion in December. This was the fastest pace of bank lending growth in two years.

“Furthermore, deposits growth also partly sustained by local employment data among the best in nearly 20 years or since revised records started in 2005, thereby also partly supporting consumer spending, which accounts for more than 70% of the economy,” he added.

Increases in overseas Filipino workers’ remittances, business process outsourcing revenues and tourism receipts also supported the continued growth of bank deposits as well as consumer spending, Mr. Ricafort said. — Luisa Maria Jacinta C. Jocson

Robert De Niro makes TV debut in Zero Day, but hesitant on future TV roles

Robert De Niro and Angela Bassett in a scene from Zero Day.

NEW YORK — After a six-decade-long career, Taxi Driver actor Robert De Niro is starring in his first television series — but he is not convinced he would do it again.

“I don’t know. It’s a lot of work. It’s like doing three features back to back,” said the veteran American actor.

Mr. De Niro portrays a former US president in Netflix’s limited series Zero Day, which explores themes of truth and disinformation.

Mr. De Niro’s character leads the Zero Day Commission in the wake of a cyberattack that has inflicted chaos and claimed thousands of lives in the United States.

Matthew Modine, who plays a politician, said the show’s plot reflected how trust was being lost in institutions.

“It’s not the question of if a cyberattack will happen on the United States or in some other country around the world. It’s when,” he said.

Preparation for the role was intense, according to Mr. De Niro.

“It was a lot of work to learn all that and a lot of it was exposition, especially in certain parts,” he said. “There wasn’t much room for paraphrasing and stuff like that, or adlibbing… But it was worth doing, you know?”

The show was filmed during the last US presidential election campaign and creators Noah Oppenheim and Eric Newman said they were surprised how much art seemed to imitate life.

“Every day we’d be on set, and whether it was election-related news or just some other event in the world, we would see things happening that when we had written about them in the show, we had thought were fictional, you know, fancies and pieces of speculation,” said Mr. Oppenheim.

“And then we watched as these things unfolded in the real world.”

Zero Day, which among others also stars Angela Bassett and Jesse Plemons, is now streaming on Netflix. — Reuters

Toll operators to DoTr: Cashless system key to interoperability

PHILIPPINE STAR/ MICHAEL VARCAS

TOLLWAY OPERATORS on Monday said they welcome the decision to reassess the implementation of cashless toll collection but emphasized that its full adoption is necessary to enable interoperability among toll wallet systems.

“SMC Infrastructure acknowledges Transportation Secretary Vince Dizon’s initiative to review the implementation of cashless toll collection across all expressways, recognizing that the new leadership may want to reassess the policy before moving forward,” SMC Infrastructure said in a statement.

Last week, newly appointed Department of Transportation (DoTr) Secretary Vivencio B. Dizon ordered the Toll Regulatory Board (TRB) to suspend the full cashless toll collection system, which was scheduled for implementation on March 15. 

“I gave the instruction already to TRB to suspend that (cashless transaction). We have to make sure that the current system in place is as efficient as possible,” Mr. Dizon said in a separate statement on Monday.

This marks the third postponement of the policy’s rollout. Under Joint Memorandum Circular No. 2024-001, fines for motorists using expressways without RFID (radio-frequency identification) tags were initially set to take effect on Oct. 1 last year. However, the Transportation department deferred the implementation to 2025 to allow tollway operators and relevant agencies more time to refine their systems. 

SMC Infrastructure, which operates San Miguel Corp.’s (SMC) toll road network, said it has been working closely with the government for the past five years to enhance the tolling experience for motorists. 

“A key part of this effort has been ensuring full interoperability among electronic toll collection (ETC) systems across expressways,” SMC Infrastructure said.

It added that a crucial prerequisite for achieving interoperability is the full adoption of cashless and contactless toll collection.

The TRB previously said that implementing a cashless toll collection system is essential for the planned electronic toll collection interoperability. It also plans to introduce a unified RFID wallet system that can be used across various tollways. 

“Without a uniform cashless system, seamless integration between different toll operators cannot be fully realized. We understand the need to ensure that any transition to cashless tolling is seamless and truly beneficial to the public,” SMC Infrastructure said.

For his part, Metro Pacific Tollways Corp. (MPTC) Chairman Manuel V. Pangilinan said the company is set to meet with Mr. Dizon this week to discuss the suspension of cashless toll collection.

Additionally, Mr. Pangilinan said the company remains optimistic about the potential implementation of a barrierless toll system despite the suspension of the cashless toll collection policy.

“I think it will take time. We want to test it further, but it is within our sight. Other countries have done it, and it decongests the system,” Mr. Pangilinan told reporters on Monday. 

MPTC is the tollway subsidiary of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Re-igniting the EDSA Spirit today

PHILIPPINE STAR/RYAN BALDEMOR

Today I join the students of Catholic schools in the Philippines in the celebration of the 39th anniversary of the EDSA People Power Revolution. I remember distinctly that day in February 1986. It was also a Tuesday like today. My wife Cecile and I were getting ready to pass by my parents’ house in Bel-Air, Makati to greet my mother “Happy Birthday” before proceeding to EDSA, when someone called and told me to switch on the TV. Upon seeing Cory Aquino being sworn in as president by Justice Claudio Teehankee. I exclaimed with a bit of disappointment, “What, the fight is over, no more excitement and fun?”

I was looking forward to Wednesday, Feb. 26, the day of the massive boycott of establishments that flourished due to their connection to the Conjugal Dictatorship, especially to the First Lady. On Feb. 22, I and comrades in Manindigan!, one of the many so-called cause-oriented groups that were organized after the Ninoy Aquino assassination, assembled in the Parish Hall of Santuario de San Antonio in Forbes Park, Makati to plan the boycott of Makati restaurants, retail stores, and service centers on Wednesday, Feb. 26. The Catholic schools had previously announced Wednesday as a holiday.

The main targets were the big high-end department store and two popular sit-down or table service restaurants — all located in what was then known as the Makati Commercial Center. Both restaurants had dance troupes performing folk dances to entertain tourist-customers.

Our meeting ended just before dusk. As Mass at the Santuario was about to start, I decided to hear Mass there. Halfway through Mass, the church was abuzz. Word had filtered in that Defense Secretary Juan Ponce Enrile and AFP Vice-Chief of Staff and Chief of the Philippine Constabulary Lt. Gen. Fidel Ramos had broken away from President Ferdinand Marcos, Sr.

The banter after Mass and in the patio of Santuario de San Antonio was that Marcos was up to his wily tricks. “The breakaway of Enrile and Ramos is feigned, it is to lure the anti-Marcos forces into a state of calmness and quietude,” some people cautioned. But when I got home, my wife greeted me with the breaking news that Manindigan! Chairman Jimmy Ongpin, Vice-Chairman Fr. Joaquin Bernas and leaders of other cause-oriented groups had joined Enrile and Ramos in Camp Aguinaldo. So, the breakaway was real. The Fall of the Evil Dictatorship had begun.

The next day, Sunday, was spent contacting comrades for a better assessment of the situation and for directives as to what course of action and security measures to take. On Monday, we (my wife, her sister, and her sister’s husband) drove to EDSA. We got out of the car at the south end of Guadalupe Bridge as we could see that we could not drive any farther. There was no vehicular traffic on EDSA as the thoroughfare was teeming with rallyists.

We crossed the bridge on foot and walked towards Camp Aguinaldo. When we passed a large restaurant (part of a chain known for Filipino food) on the southbound lane of EDSA, the personnel bade us to come in, not to dine but to use their rest rooms as there were no other rest rooms along EDSA that were as clean and open to the public. Ah, solidarity in times of crisis, we said to each other. It was a long walk from Guadalupe Bridge to Camp Aguinaldo. But it didn’t seem so because our spirits were buoyed by the comradeship and kindness displayed all along the way.

We were on White Plains Avenue when a tank roared towards us. Suddenly, a platoon of young men in white robes (seminarians obviously) materialized. Right behind them were nuns who placed rosary beads around the tank’s gun and flowers in the muzzles of the soldiers’ rifles. The soldiers looked bewildered. Is this a revolution we are supposed to quell, they seemed to ask.

It may have looked like a celebration of a town fiesta, but the millions of Filipinos gathered on that long stretch of highway were there ready to overthrow the dictatorship and regain their freedom. They were in a festive mood because they drew strength and courage from their numbers. In no revolution in the history of the world had so many gathered in one place to fight for a common cause.

That was what defeated Marcos’ forces. They were overwhelmed by the sight of a sea of people even if they had only their bare hands — and charm — to fight with. The soldiers realized they would run out of ammunition before they could mow down so many. They were afraid that when they ran out of bullets, the hundreds of thousands of Filipinos still alive would swarm them and beat them to death with their fists.

So, I call on the students of today to find inspiration from the students of 1986, who were ready to put their lives on the line that you may enjoy the freedom they fought valiantly for. I call on you to safeguard that freedom as the son of the dictator ousted by the collective power of millions of Filipinos gathered on EDSA is now the president and he is manifesting an authoritarian tendency.

THE SITUATION TODAY
Ferdinand Marcos, Jr. said that filing an impeachment complaint against Vice-President Sara Duterte would just take up all our time for nothing. Article XI, Section 2 of the 1987 Constitution bestows upon the members of the House of Representatives the power to impeach the highest officials of the land. To dismiss the provision as useless is sheer arrogance.

Some political pundits believe President Marcos does not want to alienate VP Sara as she can take revenge on him if she becomes president in 2028. The Dutertes are known to be vengeful. She has been considered the frontrunner in the 2028 presidential race since she got elected vice-president. Because she is the frontrunner, her life is in danger. That is why her conditional threat of “If something happens to me…”

The House of Representatives is part of the legislative branch of government. It is separate from and co-equal with the executive branch. The President must stand aside as the House carries out its mandate. It has impeached VP Sara for corruption, plotting to assassinate the President, involvement in extrajudicial killings, and incitement to insurrection and public disorder. As the resolution of impeachment had been filed by 215 members of the House, including the President’s son Sandro (he had to go with the tide), trial of VP Sara by the Senate should have proceeded immediately as mandated by the Constitution. It has not been held because Congress is in recess. The session will resume on June 2, and it will adjourn on June 13.

Conviction of the accused requires the concurrence of two-thirds of all the members of the Senate. The Senate now has 23 members, Senator Juan Edgardo Angara having resigned to assume the position of Secretary of Education, which position VP Duterte resigned from. So, 16 “Guilty” votes are required to convict VP Duterte. If convicted, she would be removed from the Office of the Vice-President and would be disqualified from holding any public office.

Constitutional lawyers submit that it is within the power of the President to call a special session of Congress so that the trial can proceed. However, the President does not seem predisposed to call a special session. Many political observers as well as the President think that the required two-thirds of the current members of the Senate, or 16 senators, voting Guilty” will not be met. Looking at it another way, only eight senators of the current members voting “Not guilty” will acquit VP Sara.

I think as many as 11 senators will vote “Not guilty” if the trial is held during the period June 2 to 13. The 11 senators and the reasons why I think they will vote “Not guilty” are:

Robin Padilla – he has already said he will vote “Not guilty”;

Bong Go – he is the faithful aide/special assistant/caregiver of former president Rodrigo Roa Duterte;

Ronald dela Rosa – he has said he will live and die with the Dutertes;

Francis Tolentino – he is in the Senate due to strong backing of former president Duterte, was at the INC rally in support of Sara;

Imee Marcos – is a close political ally of the Dutertes;

Alan Peter Cayetano – was the VP running mate of Rodrigo Duterte in 2016 and is a staunch defender of his policies;

Pia Cayetano – is the sister of Alan Peter, and is a political supporter of the Dutertes;

Cynthia Villar – is a close friend of the pastor of former president Duterte; her daughter Camille, a member of the House, did not sign the impeachment resolution against VP Sara; that could only be on bidding of mother;

Mark Villar – is the son of a close friend of the pastor of former president Duterte;

Joel Villanueva – is the son of Eddie, a member of House who did not sign the impeachment resolution;

Bong Revilla – is the husband of Lani Mercado and father of Bryan and Jolo, all members of the House who did not sign the impeachment resolution.

If the VP is acquitted, her political stock will be boosted markedly, and the DDS will have a good chance to get back into power. Woe unto Bongbong if they do get back into power.

That is probably the reason why Senate President Francis Escudero has set the opening of the impeachment trial of VP Sara sometime in July, after President Marcos’ third State of the Nation Address. By that time, the composition of the Senate would have changed, and the number of senators who would vote “Guilty” would have increased to meet the required two-thirds of the members of the Senate to convict VP Sara. With her out of contention for the presidency, anything can happen in 2028.

There was supposed to be a presidential election in 1973 with President Ferdinand Marcos, Sr. barred by the Constitution from running as he had termed out. No election was held for any position, but Marcos remained president until 1986. Ferdinand Marcos, Jr. is now president. He is barred from running for president in 2028. Will there be an election in 2028?

 

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

New Avida Land mid-rise condo in Vermosa set for 2028 completion

AVIDA LAND Corp. recently commenced construction on its 15-storey mid-rise condominium development in Vermosa, Cavite, scheduled for completion by August 2028.

The project, called Sentria Storeys Vermosa, responds to market demand for homes that balance urban conveniences with open spaces, Avida Land President Raquel S. Cruz said in a statement over the weekend.

Sentria Storeys Vermosa is located within the 700-hectare master-planned Vermosa estate. It offers studio and one-bedroom units measuring 26.5 square meters (sq.m.) and 35.8 sq.m., respectively.

Both unit types come with balconies and are priced between approximately P5.7 million and P8.5 million, according to Avida Land, the mid-income residential brand of Ayala Corp.

Amenities include an indoor gym, adult and kiddie pools, a multi-purpose area, a half basketball court, and pet-friendly spaces.

The project integrates sustainability features, such as LED lighting, water-efficient fixtures, and a rainwater harvesting system.

Sentria Storeys is strategically located within Campus Town, a commercial zone inside Vermosa, providing access to key establishments such as Ayala Malls Vermosa, Landers Superstore, De La Salle Santiago Zobel Vermosa Campus, and sports facilities at the state-of-the-art Ayala Vermosa Sports Hub.

Connectivity in the area will also be enhanced by major highways such as the Cavite-Laguna Expressway and the Bataan-Cavite Interlink Bridge.

The project is expected to attract young professionals and families seeking homes outside Metro Manila. It also reflects the growing demand for suburban living, driven by remote work trends and a preference for healthier environments.

“Cavite’s appeal lies not only in its accessibility but in the lifestyle that it now offers,” said Ms. Cruz.

“With Sentria Storeys Vermosa, we are responding to the market’s call for homes that balance urban conveniences with open spaces and environmental sustainability.” — Beatriz Marie D. Cruz

BDO books net profit of P82 billion in 2024

BW FILE PHOTO

BDO UNIBANK, Inc.’s net profit climbed by 11.73% in 2024 on the back of the solid performance of its core businesses.

The Sy-led bank’s attributable net income rose to P82.02 billion last year from P73.41 billion in 2023, according to its financial statement disclosed to the stock exchange on Monday.

This translated to a return on common equity of 15.1%, a return on average equity of 15%, and a return on average resources of 1.8%.

“BDO’s established business franchise, robust financial performance, and wide distribution network make it well-equipped to pursue new opportunities and maintain long-term sustainable growth and profitability,” the bank said.

BDO’s net interest income increased by 8.24% to P186.596 billion in 2024 from P172.39 billion a year prior. Interest earnings rose by 17.4% to P272.04 billion, while interest expense increased by 44.04% to P85.44 billion.

The bank’s net interest margin stood at 4.4%.

Other operating income rose by 8.54% to P70.89 billion last year from P65.32 billion in 2023.

“Net interest income and non-interest income both grew by 8% with the expansion in earning assets and growth in the bank’s service businesses,” BDO said.

Its gross customer loans expanded by 13% year on year to P3.2 trillion in 2024. The bank said it saw double-digit growth across all loan segments.

“Asset quality remained steady, with nonperforming loan (NPL) ratio at 1.83%, lower than the industry ratio of 3.27%. NPL coverage was stable at 145% versus 144% in the previous quarter, using the revised BSP (Bangko Sentral ng Pilipinas) guidelines which exclude provisions appropriated in retained earnings,” BDO said.

“Using the old reporting regime, NPL coverage was at 179% in the fourth quarter of 2024, compared to 178% in the third quarter of 2024.”

Total deposits went up by 6% to P3.8 trillion, with low-cost current account, savings account or CASA deposits making up 71% of the total.

Meanwhile, net income attributable to BDO’s insurance business also increased by 7.42% year on year to P6.85 billion in 2024 from P6.37 billion in 2023.

On the other hand, the bank’s operating expenses went up by 12.34% year on year to P146.61 billion in 2024 from P130.51 billion.

BDO’s total assets expanded by 8.9% year on year to P4.88 trillion at end-2024 from P4.48 trillion.

Total equity stood at P577.4 billion.

The bank’s total capital ratio was at 15.2% in 2024, up from 14.9% in 2023. Its common equity Tier 1 ratio also improved to 14.1% from 13.8%.

Liquidity coverage ratio was at 132.1%, up from 123.2% a year prior.

The BDO Group had 1,791 local branches at end-2024 as well as two foreign branches.

“The bank opened a total of 71 branches nationwide, majority of which are located in rural and provincial areas,” BDO said. “Sustained branch expansion is aligned with the bank’s strategic focus of broadening its reach, particularly in underserved areas, and enhancing customer convenience and accessibility.”

“To complement its physical network and future-proof the bank, BDO continues to invest in digital capabilities to offer enhanced products, improve customer experience and generate operational productivity.”

The bank has launched the new BDO Online website, www.onlinebanking.bdo.com.ph, it said separately on Monday. Customers can log in using their existing online banking credentials.

“We recognize that customers have diverse banking needs that arise at different times of the day,” BDO Digital Banking Head Roy Villareal said. “With this in mind, our goal is to provide a suite of complementary banking channels that allow customers to transact conveniently and securely, whether through our online platform or our extensive branch network. The new BDO Online website is designed to enhance security, accessibility, and overall user experience.”

The new website features key enhancements, including login protection via SMS one-time password or push confirmation via the BDO Online app, increased fund transfer limits via PESONet and a reduced InstaPay fee of P10, free BDO-to-BDO transfers, and card management tools, including the option to lock cards and set transaction limits.

BDO said the website complements its existing digital banking ecosystem, which includes the BDO Online and BDO Pay mobile apps.

The bank’s shares went down by P1 or 0.7% to close at P141 each on Monday.

DOMINION HOLDINGS
Meanwhile, BDO’s subsidiary Dominion Holdings, Inc. (DHI) saw its net profit decrease by 27.11% to P202.12 million kast year.

“The lower income is attributed to reduced funds available for investment, following the declaration of P3.2 billion in cash dividends in May 2024,” it said.

Its income dropped by 21.72% to P269.06 million. Operating costs and expenses also went down by 5.86% to P17.05 million.

DHI’s shares rose by eight centavos or 5.48% to P1.54 apiece on Monday. — Aaron Michael C. Sy

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