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Ty-led GT Capital’s profit up 51%; bank unit leads

By Justine Irish D. Tabile

TY-LED GT Capital Holdings, Inc. posted a 51.3% increase in its attributable net income to P3.94 billion in the second quarter from P2.60 billion last year, with its banking segment driving the growth.

The latest profit figure is also 0.5% better than its recorded pre-pandemic second-quarter income of P3.92 billion.

“Given the gradual return to normalcy, greater mobility, resurgent consumption, and the new administration’s pronouncements in support of sustained economic growth policies, we are confident that our Group will fare very well for the rest of the year,” GT Capital President Carmelo Maria Luza Bautista said in a media release on Tuesday.

GT Capital’s topline rose by 42.6% to P57.5 billion in the second quarter from P40.31 billion in the previous year.

In the first half, the holding firm’s attributable net income rose to P8.30 billion, 24.4% higher than the P6.67 billion registered last year. Total revenues grew to P112.79 billion, a 31.7% increase from last year’s P85.66 billion.

Banking arm Metropolitan Bank & Trust Co. (Metrobank) posted a 33% higher income at P15.6 billion in the first half. Its gross loans rose by 9% year on year to P1.3 trillion, driven by a 12% growth in corporate and commercial lending and a 16% increase in gross credit card receivables.

“The continued improvement in the bank’s performance cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from pres-tigious publications, naming us the country’s best bank,” Metrobank President Fabian S. Dee said in the press release.

Metrobank’s asset quality was said to have improved, which allowed trimming of its provisions by 46% while its non-performing loan (NPL) cover was at 196%.

AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message that GT Capital’s second-quarter earnings had outperformed expectations on the back of Metrobank’s stronger-than-expected per-formance after its robust loan growth and lower provisions.

“Significant drop in NPL ratio has allowed the company to reduce provisions to nearly half of [last year’s first semester] figure,” Mr. Temporal said.

Separately, Unicapital Securities, Inc. Equity Research Analyst Ralph Jonathan B. Fausto said in a Viber message that GT Capital “delivered very robust results in the first half of 2022 with its cyclical core segments benefitting from the general economic reopening in the second quarter due to the eased Alert Level 1 restrictions.”

“[Metrobank] registered a 9% [year-on-year] increase in its gross loans and NPL ratio improvement, both reflecting improving business and consumer confidence,” Mr. Fausto said.

Mr. Temporal said the bank was able to make up for the “muted performance of its auto segment, which endured a sharp decline in margins quarter on quarter due to a weaker peso and additional costs incurred during recent launches of new car models.

Automobile segment Toyota Motor Philippines Corp. (TMP) posted a 2.9% decrease in its consolidated net income in the first half to P3.4 billion from P3.5 billion last year.

Its topline showed a 33.4% growth in the first semester to P85 billion from the P63.7 billion recorded in the previous year.

GT Capital Auto and Mobility Holdings, Inc. Chairman Vince S. Socco said: “Despite the higher inflation and foreign exchange volatility, TMP delivered strong results in the first half and has continued to outpace the industry.”

“With the continuing economic recovery, higher mobility, and the return to normalcy, we are on track to achieve our sales volume targets for 2022,” he added.

TMP’s retail vehicle sales went up by 25.6% to 80,090 units for the January-to-June period from 63,758 units sold in the previous year.

Unicapital’s Mr. Fausto said TMP saw a huge jump in its sales of retail vehicle units “consistent that more of the population is going out.”

Metro Pacific Investments Corp. (MPIC), in which GT Capital has shareholdings, reported a 24% year-on-year increase in its consolidated core net income to P7.5 billion in the first half.

The 15% increase in the contribution of its operations was “mainly driven by a strong recovery in toll road traffic and growth in power consumption, as more industries ramped up operating capacity.”

The power segment accounted for 60% or P5.9 billion of MPIC’s net operating income; toll roads contributed 26% or P2.5 billion; and water made up 15% or P1.4 billion.

GT Capital’s property subsidiary, Federal Land, Inc., posted a 15% growth in its consolidated net income in the first half to P676 million.

First-semester revenues totaled P5.7 billion, 11% higher than last year’s, driven by a 31% growth in reservation sales amounting to P8.4 billion.

Federal Land is expected to launch two more new projects within the year.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that “the conglomerate’s performance during the period was relatively in line with our expectations.”

He said that for the rest of the year, “assuming that the current mobility curbs remain lenient,” TMP, Metrobank, and the potential rebound in Federal Land could buoy GT Capital’s 2022 financial year profitability by dou-ble-digits.

Meanwhile, AP Securities’ Mr. Temporal said that TMP’s margins are likely to remain dampened as the local currency is expected to remain weaker in the second half.

“However, with auto sales on track to achieve management’s guidance of double-digit growth towards the yearend, we expect this to partially offset the impact of margin pressures,” he added.

Mr. Temporal also said that with TMP’s resilience coupled with Metrobank’s sustained earnings growth, GT Capital “is poised to have a much better bottom line.”

On Tuesday, shares in GT Capital went up by 3.22% or P16.50 to P529.50 apiece.

New SRP list reflects price increases of 3.29%-10%, DTI says

PHILIPPINE STAR/ MICHAEL VARCAS

THE latest suggested retail price (SRP) bulletin for basic necessities and prime commodities (BNPCs) reflects price increases of between 3.29% and 10%, the Department of Trade and Industry (DTI) said.

It said in a statement on Tuesday that price increases were approved for 67 stock keeping units (SKUs) in the wake of higher raw material and packaging costs. The SRPs for the remainder of the 218 SKUs the DTI tracks remain unchanged.

The new SRP bulletin was issued on Aug. 12.

“Those that increased by 10% were SKUs that have not raised their prices since last year,” the DTI said.

According to the DTI, the price of canned sardines in tomato sauce increased by 6% while the price of processed milk rose between 3% and 10%.

The price of coffee refills rose between 5.81% and 9% while the price of coffee 3-in-1 mixes rose between 8% and 10%.

The DTI said the price of noodles was adjusted upwards by 3.70% while the price of detergent soap rose by 6%.

Bottled water prices rose between 3.53% and 10% while candle prices rose by 6%. Condiment prices increased between 5% and 6%.

“Amid these adjustments, the DTI remains steadfast in its commitment in ensuring that consumers have access to reasonably priced goods in the market, hence increases were kept to a minimum,” Trade Undersecretary Ruth B. Castelo said.

“The DTI is regularly monitoring the price movements of raw materials of these BNPCs, and continuously monitors retailers to make sure that prices of BNPCs are reasonable,” she added.

The Philippine Baking Industry Group has said that it will propose a P4 price increase for bread product categories known as “Pinoy Tasty” (white sandwich bread) and pan de sal products amid rising production costs.

Currently, pan de sal carries an SRP of P23.50 while Pinoy Tasty sells for P38.50.

No price increases were approved for these breads in the latest SRP bulletin. — Revin Mikhael D. Ochave

ABS-CBN second-quarter losses down to P39 million

PHILIPPINE STAR/ MICHAEL VARCAS

ABS-CBN Corp. significantly reduced its attributable net loss for the second quarter to P39.11 million from P1.42 billion previously.

Total revenues for the quarter reached P4.83 billion, up 13.9% from P4.24 billion in the same period a year ago, ABS-CBN’s second-quarter financial performance results showed.

Expenses declined 1% to P5.68 billion from P5.73 billion in the previous year, while non-operating income surged 152.2% to P1.04 billion from P413.6 million previously.

For the first six months, ABS-CBN saw its attributable net loss narrow to P1.42 billion from P3.37 billion.

The company generated revenues of P9.48 billion for the first half, up 16.2% from P8.16 billion previously.

Expenses declined 0.5% to P11.44 billion from P11.50 billion, while non-operating income surged to P1.1 billion from P608.08 million in the same period in 2021.

The company saw advertising revenues increase by P1.1 billion, or 47.3% higher, attributable to “both political placements and growth in regular advertising” as it continues to expand its coverage through partnerships.

ABS-CBN President and Chief Executive Officer Carlo L. Katigbak said during the company’s annual stockholders’ meeting in July that the “improvements and the continuing upward trajectory in our financial performance are indicators that a return to profitability is possible.”

“We… continue to find ways to reduce debt. We started 2020 with P26 billion in interest-bearing loans, and we have reduced that to P21.5 billion in 2021,” he said.

“For this year, we are currently already (down to) P18.4 billion, and we hope to reduce debt further to P14 billion or less,” he added.

GMA NETWORK

Meanwhile, broadcast company GMA Network, Inc. saw its attributable net income for the second quarter rise 14.6% to P1.88 billion from P1.64 billion in the same period in 2021.

Total revenues for the period rose 19% to P6.08 billion from P5.11 billion previously.

Attributable net income for the first half reached P4 billion, up 10.2% from P3.63 billion in the same period a year earlier, as revenues increased 13% to P11.94 billion from P10.57 billion previously.

“The influx of political advocacies and advertisements for this year’s national and local elections during most part of the first semester propelled GMA’s topline to reach yet another milestone,” the company said.

ABS-CBN shares closed 5.41% lower at P12.60 apiece on Tuesday, while GMA Network shares closed 0.91% higher at P11.12 apiece. — Arjay L. Balinbin

Why has polio been found in London, New York and Jerusalem, and how dangerous is it?

FREEPIK

LONDON — Polio, a deadly disease that used to paralyze tens of thousands of children every year, is spreading in London, New York and Jerusalem for the first time in decades, spurring catch-up vaccination campaigns.

DREADED DISEASE

Polio terrified parents around the world for the first half of the 20th century. Affecting mainly children under five, it is often asymptomatic but can also cause symptoms including fever and vomiting. Around one in 200 infections leads to irreversible paralysis, and among those patients, up to 10% die.

There is no cure, but since a vaccine was found in the 1950s, polio is entirely preventable. Globally, the wild form of the disease has almost disappeared.

Afghanistan and Pakistan are now the only countries where the highly infectious disease, spread mainly through contact with fecal matter, remains endemic. But this year, imported cases were also found in Malawi and Mozambique, the first in those countries since the 1990s.

DIFFERENT STRAINS

There are two main forms of poliovirus. Alongside the wild-type outlined above, there are also rare cases of what is known as vaccine-derived polio.

It is this second form detected in wastewater in the British capital, London, and in New York in the United States, with one case of paralysis reported in New York state. Genetically similar virus has also been found in Jerusalem, Israel, and scientists are working to understand the link, the Global Polio Eradication Initiative said.

While vaccine-derived polio is almost unheard of in the above locations, it is a known — albeit rare — threat in other countries, causing outbreaks every year, including 415 cases in Nigeria in 2021.

It stems from the use of an oral polio vaccine containing weakened live virus. After children are vaccinated, they shed virus in their feces for a few weeks. In under-vaccinated communities, this can then spread and mutate back to a harmful version of the virus.

While countries including Britain and the United States no longer use this live vaccine, others do — particularly to stop outbreaks — which allows for global spread, particularly as people began to travel again after coronavirus disease 2019 (COVID-19), experts said.

WHY NOW

But experts agree that the major driver behind both vaccine-derived and wild polio outbreaks remains under-vaccinated populations, said Derek Ehrhardt, global polio lead at the United States Centers for Disease Control and Prevention.

Vaccine hesitancy was a growing problem before the pandemic, then COVID-19 caused the worst disruption to routine immunization in a generation, according to the United Nations.

In 2020, there were 1,081 vaccine-derived polio cases, around three times as many as the previous year. In 2022 so far, there have been 177 cases, after major efforts to get polio vaccination campaigns back on track.

But the wastewater findings are still a wake-up call for parents with one key message, according to scientists around the world, including David Heymann, epidemiologist at London School of Hygiene and Tropical Medicine: Protect children by getting them vaccinated. — Reuters

DITO CME net loss balloons to P4.6 billion

FACEBOOK.COM/DITOPHOFFICIAL

DITO CME Holdings Corp. saw its attributable net loss for the second quarter of the year balloon to P4.63 billion from a loss of P1.18 billion previously, mainly due to higher expenses.

Total revenues for the period surged to P1.70 billion from P278.58 million in the same period a year ago, the company’s second-quarter financial performance results showed.

Total expenses for the second quarter climbed 98.4% to P5.10 billion from P2.57 billion in the same period in 2021.

Attributable net loss for the first half widened to P8.30 billion, from a loss of P2.05 billion previously.

“This was mainly due to higher operating expenses and other charges offset by gross revenue generated from the start of DITO Telecommunity Corp.’s commercial operations on March 8, 2021,” the company said.

The company’s total revenues for the first six months increased to P3.03 billion from P286.39 million in the same period a year earlier.

This was “mainly due to revenues generated by DITO Telecommunity,” DITO CME said.

Expenses for the period surged 135.5% to P9.82 billion from P4.17 billion in the previous year.

“The group derives its revenue mainly from the transfer of goods and services over time and at a point in time by providing mobile services to subscribers such as data and internet, voice and SMS,” the company said.

“As of June 30, 2022, DITO Telecommunity has 9.64 million gross mobile subscribers, a 614% year-on-year increase. Average revenue per unit for the first six months of the year was at P81,” DITO CME noted.

DITO CME shares closed 0.53% lower at P3.76 apiece on Tuesday. — Arjay L. Balinbin

Philex expects ‘another good year’ on positive metal price outlook

PHILEX Mining Corp. is optimistic about its performance for the rest of the year amid the start of the development of its Silangan copper-gold project, according to its top officials.

“The net income year 2022 will be another good year for Philex as we start the development of the Silangan project,” Chief Finance Officer Romeo B. Bachoco said during a virtual press conference on Tuesday.

“We are optimistic that 2022 will be another good year for Philex and the mining industry in general. The global outlook for metal prices continues to be positive,” he added.

The Silangan copper-gold project in Surigao del Norte is expected to commence commercial operations by 2025. It will require an initial $244 million to develop.

“The company’s main focus right now is Silangan. Philex has started the execution plan of the project to be funded by proceeds from the stock rights offering, debt syndication and additional cash infusion from internal funds,” President and Chief Executive Eulalio B. Austin, Jr. said.

The project comprises the Boyongan and Bayugo ore deposits. Phase 1 or the Boyongan deposit has a 28-year projected mine life.

“We are currently completing front-end engineering work. As of today, we have started the earth-moving works necessary for the commencement of underground tunneling work,” Mr. Bachoco said.

Meanwhile, Phase 2 or the Bayugo deposit has undergone a definitive feasibility study. It will launch in a later year after the commercial operations of the first phase.

“At the right economic conditions, the potential to increase the reserve of Bayugo is there. Our Padcal mine was able to grow from a starter mine to one of the biggest mines,” Mr. Bachoco said.

Mr. Austin said that the Philippines is one of the most endowed countries when it comes to mineral resources.

“We are the fifth most mineral-rich country in the world when it comes to gold, copper, nickel, and chromite. We have an estimated $840 billion in untapped mineral wealth,” he said.

“The new government also regarded the mining industry as one of the major contributors to accelerate economic recovery. With government policies supported by the mining industry, we are confident investor interest for the Silangan project will be given a boost,” Mr. Bachoco added.

In the second quarter, Philex’s net income increased by 18.2% to P708.85 million from P599.53 million in 2021. Revenues climbed by 4.6% to P2.49 billion from P2.38 billion the year before.

Philex is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and 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.

Philex shares on Tuesday rose by 0.63% or P0.02 to close at P3.20 per share. — Luisa Maria Jacinta C. Jocson

Aliw Theater rises from the ashes

Main Theater 1 photo from Aliw Theater website

Resident company Ballet Manila starts performing again

It has been three years of challenges for the dancers of Ballet Manila. After the company’s home base, the Aliw Theater, burned down along with much of the Star City Complex in October 2019, they had to close the company’s 24th performance season the following year at an unfamiliar venue — the Samsung Hall in SM Aura in Taguig City. Another challenge arrived soon after when all live events were canceled due to lockdowns imposed during the coronavirus pandemic.

But now the theater has been rebuilt and the dancers are again on pointe.

The Aliw Theater reopened on Aug. 10 and Ballet Manila is returning for special performances in 2022. Its 25th performance season will be held in 2023.

NOT JUST A THEATER ANYMORE 

The newly rebuilt Aliw Theater Complex now has three areas: the Elizalde Hall, the Custom Space, and the Aliw Theater.

Ballet Manila CEO and Artistic Director Lisa Macuja-Elizalde said that the newly renovated theater is aimed to be a “harder working complex.”

“If you need to warm up in a studio upstairs and then bring your cast to the stage while the technicals are being set, that is possible. If you need to have a conference and then a presentation afterwards, and then lunch or dinner afterwards. That is all possible. Everything is possible within this harder working complex. It’s not just a theater anymore,” Ms. Macuja-Elizalde said during the launch of the complex.

The 370-square meter Elizalde Hall has a lobby and two meeting rooms which can be used for events, business meetings, and conferences. Meanwhile, the 500-square meter high-ceilinged Custom Space can be divided into four separate event halls.

The seating capacity of the renovated Aliw Theater has been reduced to 1,275 from its previous 2,300 seats. Seat rows A to E are collapsible to accommodate space for an orchestra pit.  It is also equipped with new lights, a top-of-the-line sound system, and a Negative Air System to deal with the new health needs. The theater’s stage floor will soon be renovated and replaced.

“Our standard when we were designing everything was that we wanted people who would book here to not have to bring in additional equipment. We wanted people to be able to slide in and do their rehearsals and performances,” Ballet Manila chief of staff Terry Abad said.

BALLET MANILA DANCES AGAIN

With the reopening of the theater, Ballet Manila is set to mount special shows in 2022 and launch its 25th performance season in 2023. The official reopening of the theater will be marked by RISE!, a double bill featuring the opera La Traviata and the concert Ballets & Ballads on Oct. 7, 8 p.m., and Oct. 9, 5 p.m.

RISE! will feature classical ballet, opera singers, pop singers, and a full orchestra. Gerard Salonga is the show’s musical director and conductor, and internationally
renowned baritone Andrew Fernando will be featured in La Traviata.

It will be followed by the “Holiday Cheer” series with Lisa Macuja-Elizalde’s Cinderella on Dec. 25 to 30. All shows will be at 4 p.m.

Meanwhile, in 2023, the 25th performance season, “Of Hope and Homecoming,” will feature Martin Lawrance’s Romeo & Juliet (Feb. 18 and 19), Don Quixote (May 27 and 28), and Gerardo Francisco’s Ibong Adarna (Aug. 19 and 20).

“It is much more difficult now, because we lost so many dancers [over the past three years],” Ms. Macuja-Elizalde said. “We used to be 50 to 60 strong in the company, able to do full length classical ballets.” Ballet Manila currently has 20 dancers.

“We are combining our efforts with the Lisa Macuja School of Ballet to enter into the stage as well, and work with our more advanced students and our children in the school to put up the classical ballet productions,” she said.

Despite the changes and challenges, Ms. Macuja-Elizalde is optimistic that “the phoenix is rising” and is “leaner, meaner, better and ready to adapt to any kind of change that the wind shall bring.”

“I think, in other words, if we survived the last three years from October 2019 with that fire, [and] all throughout the pandemic, we survived. We’re here. I think it can only get better from here. The best is still to come,” she said.

For more information on the theater and its facilities, visit https://aliwtheater.com.ph/. For Ballet Manila show details, visit https://balletmanila.com.ph/25thseason/. Michelle Anne P. Soliman

Max’s Group profit rises more than four times to P239.5M

MAX’S Group, Inc. (MGI) reported a net income of P239.5 million in the second quarter, more than four times last year’s P55.4 million, proving the company’s “pandemic-proof” business model.

Revenues grew by 58% to P2.82 billion in the second quarter, from P1.78 billion a year ago, its financial report showed.

MGI recorded P1.05 billion in gross profit for the quarter, double last year’s P555 million and at par with its pre-pandemic figure of P1.05 billion. Its gross profit margin was at 37.2%, higher than the pre-pandemic 28.4%

“We committed to our stakeholders throughout the ongoing global health crisis that we would deliver a business model tuned to be as pandemic-proof as possible,” MGI Chief Executive Officer Robert Ramon F. Trota said in a press release on Tuesday.

“Our second quarter results prove yet again that our architecture works, even in sub-optimal operating conditions,” Mr. Trota added.

In the first half, MGI’s net income rose to P281.1 million, or 18 times higher compared with the level in the same period last year.

Its consolidated revenues amounted to P4.98 billion in the first semester, a 38% growth from P3.62 billion in the same period last year, as local market sales rose by 45%.

“Margins for the first half and second quarter reflect historic highs as compared to pre-pandemic 2019,” the company said in a report.

MGI President Ariel P. Fermin said the group is “cautiously pleased” with the results so far this year.

“It is clear to us that even as we continue to make headway in fully recovering our former sales and revenue levels, our optimized profit flow through makes us an attractive, reliable choice for our shareholders, our business partners, and our employees,” he said.

As of end-June, the company’s store network totaled 660 — 597 in the Philippines and 63 across North America, the Middle East, and Asia.

On the stock market on Tuesday, MGI shares climbed by 2.15% or 12 centavos to P5.70 apiece. — Justine Irish D. Tabile

Study finds that gargling solution eases sore throat in COVID-19 patients

UNSPLASH

SORE THROAT, the most common symptom of coronavirus disease 2019 (COVID-19), can be alleviated with antiseptic gargle containing both benzydamine hydrochloride (HCl) and chlorhexidine gluconate, according to a new study by the University of the East Ramon Magsaysay Memorial Medical Center.

The results of the research conducted from November 2021 to February 2022 showed that 70% of 219 adult Filipino patients with COVID-19 were relieved of sore throat symptoms after using Difflam-C, a locally available gargle, at least once a day.

“Sore throat normally lasts seven to ten days untreated, but the intervention shortened the duration of sore throat to five days. Some even felt better within 30 minutes of gargling,” said Dr. Jennifer M. Nailes, lead investigator of the study, at an Aug. 10 media briefing.

Because of the anti-inflammatory, analgesic, anesthetic, and antiseptic properties in benzydamine HCl and chlorhexidine gluconate, Difflam-C can relieve the throat discomfort of those who are suspected or confirmed to have COVID-19.

However, this doesn’t mean that the gargle can reduce one’s viral load, since the study focused only on the resolution of sore throat, clarified Dr. Roberto Salvino, medical director of iNova Pharma Philippines, Inc., manufacturer of Difflam-C.

“There’s no specific regimen or guideline in terms of the treatment of sore throat in COVID-19,” he said. “It depends on the doctor prescribing it and at the same time on the patient, because majority might have self-medicated.”

He added that gargling solution alone can’t treat a patient, as they are usually also prescribed paracetamol for fever and multivitamins to strengthen the immune system.

Participants of the study were instructed to gargle 15 milliliters of Difflam-C for 30 seconds at three-hour intervals for the first day, and at least once a day for the next six days.

“We asked everybody to still gargle until the end of the seven days, because there are occasions where throat pain can recur,” said Dr. Nailes.

Getting vaccinated, observing health protocols, and maintaining a healthy lifestyle should be standard procedure, to avoid getting COVID-19 in the first place, she added.

“You should take good care of yourself, and not just your throat,” she said. — Brontë H. Lacsamana

House officials see budget bill approval before Sept. 30 recess

HOUSE officials said on Tuesday that the 2023 budget bill is on track to be approved before the Sept. 30 Congressional recess.

Majority Leader Manuel Jose M. Dalipe told the Ugnayan sa Batasan Majority News Forum that legislators will approve the budget bill on time as it did last year.

“We were able to beat the September deadline last Congress, giving all members of the House of Representatives time to deliberate… with all the departments,” according to Mr. Dalipe, who represents Zamboanga City’s second district.

Marikina Rep. Stella Luz A. Quimbo said the House expects the National Expenditure Program (NEP) to be submitted on Aug. 22. The NEP is the National Government’s spending plan, which will form the basis for budget legisla-tion. Once passed into law, the bill will be known as the General Appropriations Act.

“After that, we will now have the budget briefings,” Ms. Quimbo, also senior vice-chairman of the House Committee on Appropriations, said.

“So the sequential budget briefings with every agency will start on Aug. 26, with a briefing by the Development and Budget Coordination Committee.”

She said that the committee plans to complete hearings for each agency by Sept. 16. — Matthew Carl L. Montecillo

How Salman Rushdie became a scapegoat for complex historical differences

THE CHAUTAUQUA Institution, southwest of Buffalo in New York State, is known for its summer lectures — and as a place where people come seeking peace and serenity. Salman Rushdie, the great writer and influential public intellectual, had spoken at the center before.

On Friday, Aug. 12, he was invited to speak on a subject very close to his heart: the plight of writers in Ukraine and the ethical responsibility of liberal nation-states towards them. Rushdie has been an outspoken defender of writers’ freedom of expression throughout his career.

In the audience of around 2,500 at Chautauqua was Hadi Matar, 24, of New Jersey, who jumped on stage and stabbed Rushdie in the neck and the abdomen.

It was more than 30 years ago — February 14, 1989 (Valentine’s Day) — when Ayatollah Ruhollah Khomeini, 88, the then spiritual ruler of Iran, condemned Rushdie to death via a fatwa, a legal ruling under Sharia Law. His crime was blasphemy against Prophet Muhammad in his novel The Satanic Verses, on a number of levels.

Since the fatwa, the specter of death has followed Rushdie — and he knew it, even when the Iranian government ostensibly withdrew its support for the fatwa. (But without the important step of conceding that a fatwa by a qualified scholar of Islam — which Khomeini was — could be revoked.) Rushdie himself had not taken the occasional threats to his life seriously. He had lived more freely in recent years, often dispensing with security guards for protection.

Although Rushdie is now off a ventilator, his wounds remain serious. As his agent Andrew Wylie has said, he may lose an eye and perhaps even the use of an arm. He will recover, but it seems unlikely he’ll return as the raconteur of old (as I knew him during my visits to Emory University, Georgia, where for five years during 2006-2011 he was a short-term writer-in-residence, and where his archive had been installed).

We do not know what motivated Hadi Matar to act in the manner in which he did, but his action cannot be de-linked from the 1989 fatwa, reported by Time magazine in a lead essay titled “Hunted by An Angry Faith: Salman Rushdie’s novel cracks open a fault line between East and West.”

Rushdie made it to the cover of Time on Sept. 15, 2017, when the magazine profiled him, and praised his new novel, The Golden House. In the profile, Rushdie reflected on the effect of the fatwa and the controversy around The Satanic Verses on people’s perceptions of his writing. The humor in his books was overlooked, he said, and his later works began to acquire the “shadow of the attack” on The Satanic Verses.

The Satanic Verses was published more than 30 years ago — some years before Rushdie’s attacker, Hadi Matar, was born. But the insult to Islam felt by Rushdie’s detractors seems to have endured regardless of the decades that have passed.

The ongoing debate over Rushdie (as the 1989 Time essay on the fatwa implied) has exposed fault lines between the West and Islam that had once remained hidden. These fault lines insinuated, the argument went, a radical difference between what constitutes artistic responsibility in the West and in the East (the latter narrowly defined as the Islamic Orient and what V.S. Naipaul called the nations of Islamic “converts”).

This discourse of radical difference had already entered European humanist scholarship, as Edward Said recorded in his magisterial 1979 book, Orientalism. Many have argued Salman Rushdie’s Satanic Verses gave the debate a focus — and a tangible object that could be pointed to as a definitive example of the West’s antagonism towards Islam.

To most readers who value the relative autonomy of the novel as a work of art, this is a false, even misleading reading of the mediated nature of the relationship between art and history. But as Rushdie’s recent stabbing shows, the reading is still potent.

Sadly, Rushdie is overwhelmingly identified (by some) with anti-Islamic sentiments. This has distracted from his achievement as a writer of some of the finest novels written in the long 20th century — a great writer whose name is regularly put forward as a likely recipient of the Nobel Prize for Literature.

Salman Rushdie, an Indian Muslim, was born into a secular Muslim household, and grew up with books and cinema. The long-held wish of his father, Ahmed Rushdie, was to reorganize the Qur’an chronologically.

Rushdie was born a few months before India gained its independence. The India he experienced before he left for prestigious English boarding school, Rugby, in 1961 was the unquestionably secular India of Nehru. That Nehruvian liberal vision, which India seems to have now lost, guided his writing and was the inspiration behind the spectacular success of his Booker prize-winning second novel, Midnight’s Children (1981) — and the critical acclaim that followed his more creative novels, namely, Shame (1983), The Moor’s Last Sigh (1995), The Ground Beneath Her Feet (1999), and The Enchantress of Florence (2008).

Like another writer of the global Indian diaspora, V.S. Naipaul, Rushdie had come to the West with the express purpose of becoming a novelist. The fatwa dramatically turned him into something more than a writer: in fact, into a cultural icon representing the importance of a writer’s freedom of expression.

This claim to freedom is different from the general freedom of speech enjoyed by all in liberal democracies. A writer’s freedom is of a different order. It is a freedom earned through labor and artistic excellence. This freedom is conditional: it is not available to any writer. It has to be earned, by entering the canon of world literature — though not necessarily in terms of a European definition of literariness. Rushdie’s body of work indicates that he has earned it.

But we cannot leave it at that. The Rushdie experience also presents the challenge of how to negotiate that freedom across cultures — especially with cultures governed by carefully defined moral and religious absolutes.

The violent hysteria engendered by Rushdie’s magical treatment of Muhammad in The Satanic Verses was ultimately limited to a small minority. But it is often this small minority that fails to read absolutes allegorically, as intended.

The Chautauqua incident should not have happened, but it did. It is a price that art periodically pays, especially when it is taken as an easy scapegoat for more complex historical differences.

The most serious was the suggestion that Muhammad didn’t solely edit the message of Angel Gibreel (Gabriel) — that Satan himself had a hand in occasionally distorting that message. These, of course, are presented as hallucinatory recollections by the novel’s seemingly deranged character, Gibreel Farishta. But because of a common belief in the shared identity of author and narrator, the author is deemed to be responsible for a character’s words and actions. And so, the author stood condemned.

Blasphemy against Muhammad is an unpardonable crime in Islam: a kind of divine sanctity surrounds the Prophet of Islam. The latter is captured in the well-known Farsi saying, Ba khuda diwana basho; ba Muhammad hoshiyar (Take liberties with Allah as you wish; but be careful with Muhammad). — The Conversation via Reuters Connect

 

Vijay Mishra is Emeritus Professor of English and Comparative Literature at Murdoch University. Mr. Mishra received funding from the Australia Research Council for his books written on Salman Rushdie: Annotating Salman Rushdie (London: Routledge, 2018) and Salman Rushdie and the Genesis of Secrecy (London: Bloombsbury, 2019). For a month each year from 2010 to 2012, he worked on the Salman Rushdie Archive at Emory University.

SC affirms CoA rulings disallowing additional perks for DBP officers

PHOTO BY MIKE GONZALEZ

THE SUPREME COURT (SC) has affirmed with modification two rulings of the Commission on Audit (CoA) that disallowed additional allowances and fringe benefits of Development Bank of the Philippines officers worth P1.63 million and P106.60 million, respectively.

In a 24-page decision on March 22 and made public on Aug. 15, the court’s en banc upheld the disallowances for being unconstitutional but cleared the DBP officers who approved the additional compensation.

“Nonetheless, while the Court affirms the CoA decision, which sustained the disallowance of additional allowances and benefits to DBP officers, we disagree that the officials who approved or certified the grant of disallowed benefits should also be held liable,” according to the ruling penned by Associate Justice Rodil V. Zalameda.

The High Court ordered the officials who received the additional allowances to return the money.

In separate resolutions, the CoA affirmed Supervising Auditor Hilconeda P. Abril’s findings that disallowed P1.63 million and P106.60 million in additional allowances, fringe benefits, and economic assistance for DBP officers.

“CoA found unacceptable DBP’s claim that the amounts disallowed were not in the concept of a fixed salary but were in the form of reimbursement of expenses for attendance of meetings and performance of duties,” the court noted.

The agency also cited the General Appropriations Act of 2005, which prohibits expenditures for allowances and other forms of compensation unless authorized by law.

DBP argued that former President Gloria Macapagal-Arroyo had previously approved its compensation plan, which rendered the CoA’s disallowances moot and academic.

The CoA pointed out that Ms. Arroyo’s approval of the grant of additional compensation was illegal, as it was made 17 days before the May 2010 polls.

The Omnibus Election Code prohibits any government official or employee from giving salary increases 45 days before a regular election.

The tribunal agreed with the CoA as it noted the Constitution also prohibits public officers or employees from receiving additional or double compensation under existing laws. — John Victor D. Ordoñez