Napocor board names new president and CEO

October 7, 2022 | 12:01 am

National Power Corp. (Napocor) will look at ways to increase and enable the participation of the private sector in the energy industry, its new chief said on Thursday.

In a media release, Napocor announced that its board elected Fernando Martin Y. Roxas as its new president and chief executive officer after his appointment by President Ferdinand R. Marcos, Jr.

“I will move [Napocor] to look at ways at increasing and enabling private sector participation, and internally, to look at ways and means to achieve more by using less,” Mr. Roxas said.

Mr. Roxas previously served as a geologist at Napocor in 1978, and as manager of its corporate planning group in 1990. He also led an ad hoc group tasked to study and craft Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001.

“He will work on increasing access to sustainable energy in off-grid areas and promote private sector participation,” the Department of Energy said in a separate media release.

Napocor holds the electrification mandate over the small power utilities group, or SPUG, which is tasked with energizing off-grid areas.

Last week, the DoE gave clearance to Napocor to debt-finance its missionary electrification program, citing a legal opinion from the Department of Justice.

In an earlier statement, Energy Secretary Raphael P.M. Lotilla said that a legal opinion authorized Napocor to establish a credit line with banks that would allow it to manage the volatility of fuel prices that have affected its financial position.

Napocor manages the transmission systems of Palawan, Masbate, Marinduque, Catanduanes, and Oriental and Occidental Mindoro. — Ashley Erika O. Jose

BPI-Robinsons Bank deal to strengthen Ayala, Gokongwei ties

October 7, 2022 | 12:01 am

BANK of the Philippine Islands’ (BPI) planned merger with Robinsons Bank Corp. (RBC) is expected to open up collaboration opportunities between the Ayala and Gokongwei groups and boost the surviving lender’s domestic presence, S&P Global Ratings said.

“We believe the merger would strengthen ties between Ayala Corp. and the Gokongwei Group. The merger could generate lending and fee income opportunities, given Gokongwei Group’s diverse business operation across the country,” S&P said in a commentary release on Thursday.

“In our view, operational integration would be manageable, and could present cost synergies via elimination of branch overlaps, given both banks have a domestics focus,” the credit rater added.

The firm does not expect the merger to have a significant impact on BPI’s credit rating, asset quality, funding and liquidity, or capital ratios.

It said BPI will benefit from having a larger customer and deposit base.

“RBC is smaller than BPI, at about 7% of its total assets. BPI’s pro forma Tier-1 capital ratio is likely to decline marginally to about 15.8% upon merger completion, compared with 15.9% as of June 30, 2022,” S&P said.

In a separate note dated Oct. 4, CreditSights said BPI’s planned merger with RBC is a positive development as both banks are prioritizing digitalization.

“Post-transaction, BPI would be able to play in the digital bank space as well, which would further aid its push into retail,” CreditSights said. “Synergies across several products and service platforms of both banks are to be expected, as with collaboration and new business opportunities across the Gokongwei conglomerate’s extensive ecosystem of businesses.”

“As for Robinsons Bank, recognition that banking is a scale game and the capital and difficulty involved in scaling up its business likely drove the conglomerate’s decision to sell its banking unit to a larger competitor. The unit’s capital ratios have fallen meaningfully in recent times following three years of rapid growth since the last round of capital infusion in 2018,” it added.

Under the deal announced last week, BPI will be the surviving entity from the planned merger, which the companies hope to complete before end-2023. Upon its closing, RBC’s shareholders will hold approximately 6% of the resulting outstanding capital stock of BPI.

Through the merger, BPI will also be taking over RBC’s 20% stake in digital lender GoTyme Bank, a joint venture between the Gokongwei Group and Tyme. GoTyme Bank was one of the six entities granted an online banking license by the Bangko Sentral ng Pilipinas.

BPI’s shares closed at P91.30 apiece on Thursday, down by 20 centavos or 0.22%. — K.B. Ta-asan

How PSEi member stocks performed — October 6, 2022

October 7, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, October 6, 2022.

Philippine labor force situation

October 7, 2022 | 12:00 am

THE UNEMPLOYMENT RATE inched up month on month in August, while job quality continued to worsen, the Philippine Statistics Authority (PSA) said on Thursday. Read the full story.

Peso slips as OPEC cuts output

October 6, 2022 | 9:00 pm

THE PESO inched down on Thursday as the Organization of the Petroleum Exporting Countries agreed to cut output to support oil prices. — BW FILE PHOTO

THE PESO slipped versus the dollar on Thursday after oil exporting countries announced an output cut, fanning inflation concerns.

The local unit closed at P58.653 against the greenback on Thursday, inching down from its P58.65 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s trading session at P58.70 per dollar. Its weakest showing for the day was at P58.73, while its intraday best was at P58.54 against the greenback.

Dollars traded declined to $756.05 million on Thursday from the $861.15 recorded on Wednesday.

“The peso weakened due to inflationary concerns after OPEC (Organization of the Petroleum Exporting Countries) announced cuts in oil production quotas,” a trader said in an e-mail.

The OPEC agreed to slash production by about 2 million barrels per day, the largest reduction since 2020.

The peso also depreciated after the marginal pick up in the Philippines’ unemployment rate, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The ranks of jobless Filipinos went up 79,000 month on month in August, bringing the total unemployed that month to 2.681 million, preliminary data from the Philippine Statistics Authority showed.

This translated to an unemployment rate of 5.3%, rising from 5.2% in July but lower than 8.1% in August last year.

However, the peso’s depreciation was offset by data showing that soured loans held by banks eased in August, Mr. Ricafort added.

The Philippine banking industry’s bad loans fell for a sixth straight month in August, bringing the nonperforming loan (NPL) ratio to a 23-month low amid the economy’s continued reopening.

Latest data from the central bank showed the banking sector’s gross NPL ratio inched down to 3.53% as of end-August from 3.57% as of end-July and 4.51% in the same month last year.

For Friday, the trader said the peso may weaken further on expectations of strong US jobs data.

The trader expects the peso to move within P58.55 to P58.75 on Friday, while Mr. Ricafort gave a forecast range of P58.50 and P58.70 per dollar. — K.B. Ta-asan

PHL shares drop on profit taking, oil output cut

October 6, 2022 | 9:00 pm

PHILIPPINE STOCKS declined on Thursday after a three-day climb on profit taking and after the world’s major oil-producing countries agreed to cut output, which may affect inflation.

The Philippine Stock Exchange index (PSEi) went down by 54.32 points or 0.9% to close at 5,934.27 on Thursday, while the broader all shares lost 20.19 points or 0.62% to end at 3,199.79.

“The PSEi ended in the red … on profit taking after the index failed to break 6,000 level [on Wednesday] and as OPEC (Organization of the Petroleum Exporting Countries) announced a supply cut of 2 million barrels per day, the largest since the pandemic started,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar in a Viber message said the higher unemployment rate in August also weighed on sentiment.

“In August, the unemployment rate was at 5.3%, higher than July’s 5.2%, on the upside, the labor force participation rate improved. Meanwhile, the decision of OPEC+ to cut oil production brought negative sentiment to the market as this may lead to higher domestic oil prices, which could upwardly pressure the inflation rate,” Ms. Alviar said.

Most investors also remained cautious ahead of the release of US inflation data next week, Mercantile Securities Corp. Head Trader Jeff Radley C. See said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said shares were sold down as investors anticipate the release of US inflation data, which would provide clues on the US Federal Reserve’s next policy move.

September US consumer price index (CPI) data will be released on Oct. 13.

In August, the consumer price index gained 0.1% last month after being unchanged in July.

In the 12 months through August, the CPI increased 8.3%, easing from July’s 8.5% rise. The annual CPI peaked at 9.1% in June, which was the biggest gain since November 1981.

The majority of sectoral indices ended lower on Thursday except for services, which rose by 11.32 points or 0.73% to 1,553.96.

Meanwhile, industrials lost 188.29 points or 2.11% to end at 8,729.11; holdings firms declined by 92.94 points or 1.6% to 5,692.28; financials dropped by 5.41 points or 0.35% to 1,505.48; property went down by 7.40 points or 0.29% to 2,545.11; and mining and oil slipped by 9.96 points or 0.09% to 10,768.11.

Value turnover declined to P4.20 billion on Thursday with 387.30 million shares changing hands from the P4.82 billion with 644.59 million issues traded on Wednesday.

Decliners outnumbered advancers, 103 versus 84, while 41 names closed unchanged.

Still, net foreign buying rose to P346.01 million on Thursday from P188.31 million on Wednesday.

AP Securities’ Mr. Temporal placed the PSEi’s support at 5,700 and resistance at 6,050, while Mercantile Securities’ Mr. See put resistance at 6,000-6,200 level and support at 5,700-5,880. — AEOJ

Philippines eyes release of 5,000 inmates by 2023

October 6, 2022 | 8:42 pm

Jail-prisoners — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINE government aims to release about 5,000 inmates by next year, as it tries to decongest the world’s most crowded jails, its Justice chief told the United Nations Human Rights Council on Wednesday.

“We are decentralizing our congested prison system,” Justice Secretary Jesus Crispin C. Remulla said in his UN statement, a copy of which was given to reporters on Wednesday evening.

“I am personally committed to continuing regular releases and aim to have 5,000 released by June next year,” said the Justice chief, who represented the Philippines at the 51^st regular session of the UN council in Geneva, Switzerland.

The government released more than 350 inmates last month including the sick and elderly, many of whom had already served their sentences.

The Department of Justice (DoJ) plans to build next year a P2.5-billion “world-class” maximum security facility in the town of Sablayan in Occidental Mindoro, Mr. Remulla told a virtual forum on Aug. 24.

He earlier said the national penitentiary, which was designed to house 6,000 prisoners, had 17,000 inmates.

The DoJ also plans to relocate the national penitentiary’s minimum security facility to Nueva Ecija in the country’s north.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making them the most overcrowded prison system in the world, according to the World Prison Brief.

Many of the country’s jails fail to meet the minimum United Nations standards given inadequate food, poor nutrition and unsanitary conditions, according to Human Rights Watch (HRW).

The Philippine Human Rights Commission has repeatedly flagged the worsening congestion in the country’s jails, more recently spurred by the arrests of suspects in ex-President Rodrigo R. Duterte’s war on drugs that has killed thousands.

Mr. Remulla said DoJ plans to increase the prosecution success rate by streamlining processes between government prosecutors and law enforcement agencies.

He added that the measures are part of the agency’s goal to “change the culture” of the local justice system, which he said was prone to delays.

“We are reforming our system to deliver what our people deserve — real justice in real time,” the Justice chief said.

Human Rights Watch on Wednesday said the United Nations Human Rights Council dealt victims of human rights violations in the Philippines a serious blow by failing to pass a resolution that would ensure continued scrutiny of the country’s rights situation.

The 2020 Human Rights Council resolution on the Philippines required the UN Office of the High Commissioner for Human Rights to monitor and report on the Philippine rights situation through 2022.

A September report by the high commissioner’s office highlighted prevailing rights violations and recommended continued monitoring and reporting to the council.

But council member states and donor countries that supported the 2020 resolution and the ensuing Philippine-UN Joint Program did not press for a 2022 resolution, Human Rights Watch said.

“The UN Human Rights Council’s failure to act on the Philippines is devastating for both the victims of human rights abuses and civil society groups that seek to uphold basic rights,” Lucy McKernan, Geneva director at Human Rights Watch, said in a statement.

“The end to council scrutiny of the Philippines reflects especially poorly on the European and other concerned governments, led by Iceland, that had banded together in 2020 to support a resolution and the UN Joint Program that sought real improvements on the ground,” she added.

The program was designed to institutionalize human rights reforms in the Philippines in the face of “catastrophic rights abuses” during the war on drugs started by then President Rodrigo R. Duterte in 2016.

Instead of creating a commission of inquiry to investigate the thousands of extrajudicial killings, the Human Rights Council in 2020 settled on providing the Philippines ‘technical cooperation’ and ‘capacity building’ that, while valuable, did not advance accountability for grave crimes, Human Rights Watch said.

Since President Ferdinand R. Marcos, Jr. took office on June 30, there has been no letup in drug war killings, the watchdog said. The Third World Studies Center of the University of the Philippines has reported 90 drug-related deaths under the new government.

During a meeting with UN Acting High Commissioner for Human Rights Nada Al-Nashif on Wednesday, Mr. Remulla said the Philippines was exerting efforts to improve its human rights situation.

He said the government would continue to engage constructively with the UN and international community, according to a Department of Foreign Affairs statement posted on its website. — John Victor D. Ordoñez

Senate asked to investigate lotto results for fraud

October 6, 2022 | 8:41 pm

A SENATOR has filed a resolution seeking to probe the trustworthiness of the Philippine Charity Sweepstakes Office’s (PCSO) lotto games after 433 people won a P236-million jackpot.

“There is a need to make sure that the processes involved in the conduct of the lotto games by the PCSO are honest and free from any kind of fraud,” Senator Aquilino Martin “Koko” L. Pimentel III said in Senate Resolution 253 filed on Wednesday evening.

He noted that lotto games are state-sanctioned forms of gambling whose proceeds are used for health programs, medical assistance and other charities.

The senator said the common criticism against lotto is its “lack of transparency,” noting that the identity of the winner is not revealed. “The people are suspicious whether the conduct of the lottery is above board.”

Mr. Pimentel also said the delay between the announcement of results and the number of winners was suspicious.

He also noted that there were four winners of the P42.9-million jackpot in January, three winners of the P43.9-million jackpot in May and two winners of the P73.8-million jackpot in June.

“The frequency of hitting the jackpot and the presence of multiple winners despite the low probability of winning heightens the suspicion even more,” he said.

The probability of winning in the 6/42 lotto is one in 5.2 million chances, while it is one in 40.5 million in the case of the 6/58 ultra lotto, said the lawmaker, who graduated with a Bachelor of Science degree in Mathematics.

PCSO Chairman Junie E. Cua did not immediately reply to a Viber message seeking comment.

Senator Ana Theresia “Risa” N. Hontiveros-Baraquel agreed about the need to probe the lotto results.

“I support my minority leader in his call to investigate the extraordinary results of last night’s lotto draw,” she said in a statement. “We just want to rule out any doubts in the public mind that the results have been manipulated.”

“While we recognize that people tend to bet in patterns, we also want to make sure the system is secure, free from glitches and trustworthy,” she added. — Alyssa Nicole O. Tan

Philippines ready to take lead in regional peace

October 6, 2022 | 8:41 pm

Chinese-ship-PCG — SCREENGRAB FROM PHILIPPINE COAST GUARD

PHILIPPINE President Ferdinand R. Marcos, Jr. on Wednesday night said his government would take a major role in keeping peace in the region amid disputes between the United States and China and nuclear threats from North Korea.

“I do not think we have a choice,” he told a media forum, based on a transcript sent by his office on Thursday. “We must play a leadership role because it is in our interest.”

“We are not doing our jobs as the protectors of our country, of our state, of our territory, of our people, if we do not take that leadership role.”

Mr. Marcos cited as a regional problem the intensifying conflict between the US and China over Taiwan. He also said North Korea remained a threat to regional peace.

The Philippine leader also cited the political situation in Myanmar, which is still in chaos after the military overthrew its democratically elected government.

Mr. Marcos cited the need to strengthen the Association of Southeast Asian Nations (ASEAN) to make it more responsive to future challenges and enable the regional bloc to do more. “In the upcoming ASEAN conferences in November, I intend to propose several actions that ASEAN can take,” he added.

He said ASEAN should push its members to present a united front and ensure that the regional bloc “has a function to do in the normal scheme of geopolitics.”

The Philippine leader has vowed to pursue an independent foreign policy, while also recognizing the country’s long-standing alliance with the US. Rodrigo R. Duterte, his predecessor, led a foreign policy pivot to China away from western countries.

Mr. Marcos, 65, took office in June amid tensions in the South China Sea and naval competition among Southeast Asian countries.

In his first address to Congress, he promised to protect Philippine territories, although he did not name China as an aggressor. He neither sided with Beijing nor Washington, saying the Philippines “shall continue to be a friend to all and an enemy to none.” — Kyle Aristophere T. Atienza

Law professor named Election commissioner

October 6, 2022 | 8:40 pm

PRESIDENT Ferdinand R. Marcos, Jr. has appointed a law professor and constitutionalist to the Commission on Elections (Comelec), the agency said in a statement on Thursday.

Appointed commissioner was Ernesto Ferdinand P. Maceda, Jr., who taught election, administrative and constitutional law at De La Salle University, Far Eastern University and the Ateneo de Manila University School of Law, it said.

He used to head the Philippine Association of Law Schools.

“I am humbled to be entrusted with the crucial duties and responsibilities of the office of the commissioner,” Mr. Maceda said in the statement.

Meanwhile, Comelec said Election Commissioner Nelson J. Celis had been reappointed after the Commission on Appointments bypassed his nomination last week.

Under the Constitution, Election commissioners have a seven-year term and cannot be reappointed. — John Victor D. Ordoñez

Zubiri says gov’t will be ‘thrifty’ next year as Senate wraps up budget deliberations

October 6, 2022 | 8:39 pm

SENATE President Juan Miguel F. Zubiri on Thursday said the upper chamber of Congress is on schedule as it directs budget deliberations towards the country’s recovery, with proposed funds focused on revenue generation and programs to tame inflation.

“The direction of the national government as you can see in the budget is, first of all, (is to remain) frivolous (sic) or thrifty, save where they can save, and number two, continue our revenue collection, plugging the leakages so that the avenues of corruption will disappear and the funds will go to the government,” Mr. Zubiri told reporters via Facebook.

“Third, belt-tightening, at this point in time, and fighting inflation,” he added.

He assured that a reenacted budget would “absolutely not” happen, noting that only a few government offices remain in line for budget hearings.

The Senate plans to finish budget hearings next week, so that when plenary sessions resume on November 7, budget debates can immediately begin, he said.

They plan to finish plenary deliberations within two weeks. “Maximum fourth week approval on second or third reading. Best effort, first week of December, bicameral approval, the latest in the second week,” he said.

Mr. Zubiri also said there are no major roadblocks expected in the passage of the proposed P5.268-trillion budget as it is almost identical to this year’s budget.

“The difference is small, so the important thing here is that we fund the agencies that we think deserve to be given funds to improve the provision of assistance to our countrymen,” he said.

INTELLIGENCE FUNDS
Meanwhile, the allocation of so-called “intelligence funds” under the 2023 proposed budgets of the Office of the Vice President (OVP) and the Department of Education (DepEd) was supported by members of the Cabinet, Budget Secretary Amenah F. Pangandaman said on Thursday.

Opposition lawmakers in both the House of Representatives and the Senate have questioned the proposed funds, set at P500 million for the OVP and P150 million for DepEd.

The two agencies are headed by Vice President Sara Duterte-Carpio.

“When we prepared the budget, one of the things that we considered is whether they can use the money and if they have plans for the money… They have indicated the programs [and] where they will use the intel funds,” Ms. Pangandaman said during an interview on the ABS-CBN News Channel.

“I’m not sure if I can divulge but during the Cabinet [meeting], it was also discussed. The vice president detailed where the intel and confidential funds will be used,” she added. “So, during that time, everyone from the Cabinet agreed on it, so we approved the request of the vice president.”

Early this week, Albay Rep. Edcel C. Lagman said that P9.29 billion worth of confidential funds spread throughout the P5.268 trillion proposed budget should be scrapped, including those from the OVP and DepEd.

“This total amount is much bigger than the appropriations of many government offices and departments, including the constitutional commissions and offices,” Mr. Lagman said in a statement.

“The OVP is not a surveillance agency and has no jurisdiction over matters of national security… and the mandate of DepEd does not include detective activities,” he added, saying such budget items with no detailed purpose are open to corruption.

Ms. Pangandaman took exception when asked to comment on observations that the 2023 budget seems to have been politicized.

She added that the Budget department and the Commission on Audit already provided reporting guidelines on the “nature” of the project or program that the fund will be used for prior to utilization.

When further pressed on the issue, Ms. Pangandaman said Ms. Duterte-Carpio would be in a better position to explain. — Alyssa Nicole O. Tan and Diego Gabriel C. Robles

Senators question P10-B fund of anti-communist task force for community dev’t

October 6, 2022 | 8:39 pm

SENATORS on Thursday questioned a P10-billion fund under the anti-communist task force’s proposed 2023 budget, citing the ad hoc body’s failure to use more than half of a similar allocation last year.

Senator Maria Lourdes Nancy S. Binay pointed out during a Senate Finance Committee hearing that only P3.2 billion worth of projects have been completed while another P2.9 billion are ongoing out of a P16.4-billion budget for barangay development.

“So, it’s not even 50% of the P16 billion,” Ms. Binay said in Filipino. “It’s like the projects are still in limbo,” she said.

The body under the Office of the President, formally called the National Task Force to End Local Communist Armed Conflict’s (NTF-ELCAC), had a total budget of P19.2 billion in 2021 from P1.8 billion the previous year.

The increase was supposedly intended for development projects in barangays, the smallest political unit under the Philippine government system, which are considered free from communist influence.

NTF-ELCAC has a P17.97-billion budget this year and P28.88 billion proposed for 2023.

“How would you justify the additional P10 billion for next year when we don’t even know what’s going on with this project?” Ms. Binay asked.

Budget Undersecretary Tina Rose Marie L. Canda said the additional amounts are supposed to cover barangays cleared of communist groups.

However, she said these are not detailed under the proposed 2023 budget.

“Unfortunately, the projects are identified only during implementation phase,” Ms. Canda said.

Senator Juan Edgardo “Sonny” E. Angara, who chairs the Senate Finance Committee, said this could be considered a form of pork barrel, which has been declared as unconstitutional by the Supreme Court.

Ms. Canda explained that they gave the task force “some leeway in the identification of the projects, especially because of the intent of the fund.”

Mr. Angara responded: “We also want to support the program, but let’s apply the same standards across the board, and so if you could give us as detailed a report as possible on the implementation of the program, we would appreciate it,” Mr. Angara said. — Alyssa Nicole O. Tan