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Hiding in plain sight: artefacts seized from display in Italian bank

A HANDOUT photo shows part of an archaeological collection seized by Italian authorities after being illegally showcased inside a meeting hall of an Italian bank’s headquarters in Bari, Italy, on Nov. 25. — CARABINIERI/HANDOUT VIA REUTERS
A HANDOUT photo shows part of an archaeological collection seized by Italian authorities after being illegally showcased inside a meeting hall of an Italian bank’s headquarters in Bari, Italy, on Nov. 25. — CARABINIERI/HANDOUT VIA REUTERS

MILAN — Italian authorities have seized a valuable archaeological collection that had been on display in a meeting hall in the headquarters of an Italian regional bank, police said in a statement on Friday.

The Carabinieri police confiscated pottery artefacts that were kept inside the main branch of Banca Popolare di Bari, in the south-eastern region of Puglia, with the current management blissfully unaware of the items’ illicit origins.

The 103 ceramic artefacts, including vases, plates, and jugs, date back to between the 5th century B.C. and the first century A.D., and are of “inestimable cultural-historical worth and an extremely important economic value,” police said.

The collection came into the bank’s possession in 2009 after a transaction worth €100,000 ($103,640) was sponsored by the then chief executive and backed by the board.

However, the previous owners had never obtained an official property certificate for the collection in spite of declaring part of it to the relevant authorities.

Four unnamed people are under preliminary investigation for allegedly receiving stolen goods and concealing cultural heritage items, police said. Popolare di Bari, the biggest bank in Italy’s disadvantaged south, was bailed out by peers in a government-backed rescue in 2019. — Reuters

Pneumonia myths and facts

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A panel of experts underscored the facts and dispelled common myths about pneumonia in an event titled “Championing the Fight to Stop Pneumonia — Together” led by the Philippine Foundation for Vaccination (PFV) in line with World Pneumonia Day on Nov. 12.

Fact: Children and the elderly need to get vaccinated against pneumonia.

“The immune system of children, particularly newborns and infants, is still weak. This is the reason why they need to be immunized against vaccine-preventable diseases such as pneumonia. On the other hand, the immune system of the elderly is weak due to senescence [natural process of growing old],” said PFV secretary Dr. Tina Santos.

She added that children often are unable to practice proper hygiene and therefore are vulnerable to respiratory infections like pneumonia which are transmitted through airborne droplets.

Infectious disease expert Dr. Rontgene Solante, a PFV board member, noted that individuals aged 60 years and older should routinely get the pneumococcal vaccine and flu vaccine because they are at higher risk of developing severe pneumonia.

“We saw this during the COVID-19 pandemic wherein 80% of the fatalities were patients 60 years and older,” he said.

Myth: Pneumonia should not be taken seriously. It’s just a cough.

“Not taking pneumonia seriously is a big mistake because pneumonia can kill,” said Iloilo Rep. Janette L. Garin, who is the Vice-Chair of the House Committee on Health.

Pneumonia is the single largest infectious cause of death in children worldwide, according to the World Health Organization. In the Philippines, pneumonia is the third leading cause of death across all ages and is the most common cause of death among children under five years of age.

“Eating a nutritious diet, avoiding crowded places, and getting vaccinated are among the effective ways of preventing pneumonia,” Ms. Garin added.

Myth: Getting the coronavirus disease 2019 (COVID-19) vaccine is enough to protect you against pneumonia.

“COVID-19 vaccines protect against SARS-CoV-2, the virus that causes COVID-19, but not against bacterial pneumonia, especially streptococcal pneumonia,” said Dr. Solante.

He cited data showing that some people who have recovered from COVID-19 experience long-term effects from their infection, known as long COVID.

“One of these long-term effects is recurrent respiratory infections. This is why some countries have recommended that people with long COVID get the pneumococcal and flu vaccine,” he said.

Myth: Only the elderly are at risk for pneumonia.

While the elderly and children two years old and younger are the most at risk, pneumonia can affect anyone.

As mentioned earlier, pneumonia is the third leading cause of death across all ages in the Philippines.

Myth: You will get pneumonia if your hair gets wet in the rain or if your sweat dries on your back.

“Getting your hair wet in the rain or your sweat drying on your back will not cause pneumonia. Pneumonia is caused by bacteria, viruses, or fungi, and the infection can be transmitted from person to person. This is why getting the pneumococcal vaccine is recommended particularly for at-risk populations such as young children and the elderly. Good nutrition, preferably breastfeeding, and proper hygiene can also help prevent pneumonia in children,” Dr. Santos said.

Fact: The country has laws and policies that support disease awareness and prevention, as well as programs for vulnerable populations such as senior citizens.

“We have more than enough laws that aim to protect our vulnerable populations including senior citizens. But it is important that laws are implemented in a timely manner,” said Ms. Garin.

She cited the Senior Citizens Act which mandates the protection of elderly Filipinos through vaccination against pneumonia and other vaccine-preventable infectious diseases.

“However, there is always a problem with implementation. Laws are useless without proper implementation. Laws are only effective when their health impact is felt by our people,” she said.

Myth: The pneumococcal vaccine provides lifetime protection against pneumonia.

“The pneumococcal vaccine does not provide lifetime protection against pneumonia. It is given as a series of vaccine doses in both children and the elderly according to the recommended immunization schedule,” Dr. Solante said.

Fact: Pneumococcal vaccination is available through multiple channels.

“Pneumococcal vaccination is available in both government facilities such as health centers and private hospitals and clinics. The government provides pneumococcal vaccination through the National Immunization Program,” said Ms. Garin.

In the same forum, Dr. Kim Patrick Tejano, National Immunization Program manager at the Department of Health, stressed the importance of vaccination.

He said that vaccination protects the people against pneumonia and reduces its severity when they do get sick. When children are able to attend their classes, and when adults can be more productive because they have protection against pneumonia, it can really be said that vaccination is both empowering and liberating.

 

Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Thai bank to buy stake in Philippine financing firm

THAILAND-BASED Bank of Ayudhya Public Co. Ltd. is set to acquire a 75% stake in consumer financing firm HC Consumer Finance Philippines, Inc. (HCCFP) as part of its expansion efforts in Southeast Asia.

“The proposal is in line with the Thailand-based bank’s strategy to increase its geographic diversification in regional markets that present growth opportunities,” S&P Global Ratings said in a bulletin on Tuesday.

S&P said the acquisition is also in line with Bank of Ayudhya’s strategy to “seek opportunities in the retail space, where it has some expertise.”

“We believe Bank of Ayudhya has built capital and provisioning buffers that will help it mitigate the risks associated with the proposed acquisitions,” it added.

The Thai bank plans to fund the acquisitions internally, according to the bulletin.

“The deal size is about ฿17 billion, about 6% of the bank’s total adjusted capital as of Dec. 31, 2021. The impact of the acquisition on the bank’s capital should be manageable,” it added.

As of Sept. 30, the bank’s capital adequacy ratio was 17.62% and its provision coverage ratio of 177.5% was higher than the Thai industry average.

The bank has also maintained a lower nonperforming loans (NPL) ratio of 2.38% versus the industry average of 2.77% as of end-September.

“We also expect the Bank of Ayudhya to align underwriting standards of these companies with its own practices,” S&P added.

Bank of Ayudhya also announced that it was acquiring a majority stake in Home Credit Indonesia PT (HCI).

“The Indonesian and Philippine markets present a good growth opportunity for BAY, given their large numbers of young people, who are often unbanked. This is in stark contrast to Thailand’s aging demographics and high household indebtedness,” S&P said.

“Interest margins in Indonesia and the Philippines are also significantly higher than in Thailand. However, BAY would have to contend with greater inherent volatility and risks associated with point-of-sale lending in emerging markets, as reflected in the high non performing loan ratios of HCI and HCCFP,” it added.

HCCFP offers loans for buying mobiles, electronics, appliances, and furniture, as well as payment processing, loan insurance, and financial advisory services. — Luisa Maria Jacinta C. Jocson

Use of unregistered devices increases cybersecurity risks

THE use of unregistered devices by employees in a hybrid work arrangement increases the likelihood of cybersecurity incidents, a technology firm said in a report.

In a survey conducted by Cisco, 87% of Philippine respondents said that their employees use unregistered devices to log into work platforms.

Meanwhile, 75% of them said that employees spend more than 10% of the day working from these unregistered devices.

“This risk associated with such a practice is recognized by security leaders with 89% of respondents in the Philippines saying logging in remotely for hybrid work has increased the likelihood of occurrence of cybersecurity incidents,” Cisco said.

About 91% of respondents also said that their employees use at least two networks, while 47% said that their employees use more than five networks.

Meanwhile, 77% of local security professionals said that they have experienced a cybersecurity incident in the past 12 months. The incidents include malware, phishing, and data leaks.

In the study, 69% of those who suffered a cybersecurity incident said that it cost them at least $100,000, while 38% placed the cost at $500,000, at least.

Security leaders from the Philippines recognize the challenges brought by the hybrid work setup, and 85% of them expect cybersecurity incidents as likely to disrupt their businesses in the next one to two years.

“The bright side is that they are gearing up to protect themselves from internal and external threats,” Cisco said.

Around 87% of the Philippine respondents said that they expect to increase their cybersecurity budget by more than 10% next year, while 95% expect upgrades to Information Technology  infrastructure in the next one to two years.

According to Cisco ASEAN Director for Cybersecurity Juan Huat Koo, “to make hybrid work truly successful in the long run, organizations need to protect their business with security resilience.”

Cisco Philippines Managing Director Zaza Nicart said, “People are a cornerstone of fostering this resilience. Organizations need to educate their people on the challenges that unregistered devices and unsecured connections pose to compromised credentials and cyber threats.”

The Cisco report entitled “My Location, My Device: Hybrid work’s new cybersecurity challenge” surveyed 6,700 security professionals from 27 countries, with 150 professionals from the Philippines.

The study aims to highlight the concerns of security professionals around the use of unregistered devices and unsecured networks to access work platforms. — Justine Irish D. Tabile

Philippines improves in RE attractiveness list

The Philippines inched up a notch to 27th out of 40 markets in the 60th edition of the biannual Renewable Energy Country Attractiveness Index (RECAI) by Ernst & Young (EY). With a score of 57.9 (out of a possible 100), the Philippines was only behind three other peers in the East and Southeast Asia region. The index ranks the attractivess of a country in renewable energy investment and deployment opportunities.

Philippines improves in RE attractiveness list

How PSEi member stocks performed — November 29, 2022

Here’s a quick glance at how PSEi stocks fared on Wednesday, November 29, 2022.


Peso strengthens vs dollar on oil, higher remittances

THE PESO strengthened against the dollar on Tuesday amid easing global oil prices and ahead of an expected increase in remittances due to the holidays.

The local unit closed at P56.56 per dollar on Tuesday, up by eight centavos from its P56.64 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s session at P56.70 against the dollar. Its weakest showing was at P56.72, while its intraday best was at P56.50 versus the greenback.

Dollars exchanged rose to $1.03 billion on Tuesday from $806.9 million on the previous trading day.

“The peso appreciated, tracking the decline in global crude oil prices and in anticipation of expected local remittances next month,” a trader said in an e-mail.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said that the local unit strengthened amid improving oil prices.

“Another important catalyst for the peso is the seasonal surge in OFW (overseas Filipino worker) remittances in preparation for the holidays in December,” Mr. Ricafort said in a Viber message.

Oil prices rebounded on Tuesday after falling to more than 11-month lows in the previous session, Reuters reported.

Brent crude futures advanced $1.81 or 2.2% and traded at $85 a barrel, while US West Texas Intermediate (WTI) crude futures rose $1.37 or 1.8% to $78.61 a barrel.

Brent settled down 0.5% the previous day, having slumped more than 3% to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3% on Monday after touching its lowest since December 2021.

“The peso also became stronger after the Treasury bond (T-bond) average auction, which could lower long-term borrowing costs and financing costs,” Mr. Ricafort added.

The government partially awarded the reissued 20-year T-bonds it offered on Tuesday, raising just P22.969 billion versus the P35-billion plan, even as total bids reached P65.514 billion.

For Thursday, the trader said the local currency might weaken ahead of the release of updated third-quarter US gross domestic product data on Nov. 30.

Philippine financial markets will be closed on Nov. 30, Wednesday, to commemorate Bonifacio Day.

Mr. Ricafort gave a forecast range of P56.45 to 56.65 per dollar, while the trader gave a slightly weaker estimate of P56.45 to P56.70. — Luisa Maria Jacinta C. Jocson

Last-minute bargain-hunting lifts PHL shares

PHILIPPINE STOCKS extended their climb on Tuesday on last-minute bargain-hunting and ahead of the rebalancing of the MSCI.

The bellwether Philippine Stock Exchange index (PSEi) gained 99.31 points or 1.48% to end at 6,780.78 on Tuesday, while the broader all shares index rose by 32.81 points or 0.94% to 3,513.98.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar said that the PSEi went up on last-minute bargain-hunting. 

“The effectivity on Dec. 1 of the semi-annual index rebalancing of MSCI also affected the trading session,” Ms. Alviar said.

She said improving investor sentiment also continued to lift the market.

“The market saw an upswing as MSCI rebalancing period comes to a conclusion. Also, China’s reopening bets as health officials try to expedite vaccination efforts have stirred optimism in the Chinese equity market and this reverberated across the Asian region, including the Philippines,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said.

Asian markets climbed on Tuesday after China’s pushed its vaccination efforts amid reopening pressures.

MSCI’s broadest index of Asia-Pacific shares outside Japan posted gains of 1.8%, while Hong Kong’s Hang Seng went up 3.9%.

China will speed up coronavirus disease 2019 (COVID-19) vaccinations for elderly people, health officials said on Tuesday, aiming to overcome a key stumbling block in efforts to ease unpopular “zero-COVID” curbs, Reuters reported.

“The PSEi ended the month strong with the MSCI rebalancing taking effect today. However, the market is trading at overbought conditions and it’s best to lighten up on positions,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message on Tuesday.

Almost all sectoral indices closed higher on Tuesday. Property surged by 103.77 points or 3.57% to 3,007.70; holding firms went up by 107.32 points or 1.67% to 6,497.40; services gained 26.03 points or 1.49% to end at 1,766.97; and financials climbed by 11.24 points or 0.66% to 1,698.66. 

Meanwhile, industrials lost 73.37 points or 0.76% to close at 9,487.17 and mining and oil declined by 41.60 points or 0.4% to 10,223.02.

Value turnover rose to P23.47 billion on Tuesday with 2.23 million shares changing hands from the P8.68 billion with 729.87 million issues traded on Monday. 

Decliners outnumbered advancers, 103 versus 88, while 42 names closed unchanged.

Philstocks Financial’s Ms. Alviar placed the PSEi’s support at 6,600 and resistance at 6,800, while AP Securities’ Mr. Temporal put immediate support and resistance at 6,380 and 6,880, respectively. Mercantile Securities’ Mr. See pegged support at 6,364-6,525 and resistance at 6,877-7,000. — A.E.O. Jose with Reuters

GSIS to provide P125 billion to sovereign wealth fund

The Government Service Insurance System headquarters in Pasay, Philippines. May 28, 2012. — BW FILE PHOTO

THE government financial institutions (GFIs) that will be tapped to provide capital and help manage a P250-billion sovereign wealth fund have disclosed their proposed contributions, with the pension fund for civil servants providing half the required initial funding.

At an online hearing of the House banking committee, which is evaluating the banking-related provisions of House Bill 6398 creating the Maharlika Investment Fund (MIF), the Government Service Insurance System (GSIS) committed P125 billion, the Social Security System P50 billion, the Land Bank of the Philippines P50 billion, and the Development Bank of the Philippines (DBP) P25 billion.

Further annual contributions are expected from the Bangko Sentral ng Pilipinas and the Philippine Amusement and Gaming Corp.

The sovereign wealth fund will also be supported out of the national budget, or the General Appropriations Act.

Sovereign wealth funds are typically supported by proceeds from commodity exports such as oil, as is the practice in energy-rich countries, or other foreign exchange surpluses.

The proposal to effectively fund the MIF with pension money and bank deposits is an unusual feature of the Philippine set-up. MIF supporters have said that the wealth fund will “optimize” the investment strategies of GFIs and direct funding to government priority projects.

At the hearing, the four GFIs said that in supplying the capital to startup the MIF, they will require accommodations in how they are supervised by their regulator.

By law, government-owned and -controlled corporations (GOCCs) must remit 50% of their profits to the Treasury as dividends.

GOCCs answer to the Governance Commission for GOCCs (GCG), which ensures that GOCCs are self-sufficient and not a drain on public funds. The GCG also rules on what measures to take if a GOCC is not capable of remitting dividends.

“If we want a responsive wealth fund, fewer restrictions will be better,” DBP President and Chief Executive Officer Emmanuel G. Herbosa said at the hearing.

Manila Rep. Irwin C. Tieng, the banking committee chairman, approved the creation of a technical working group to refine the bill, and proposed to solicit further comment from finance industry professionals.

The next committee hearing is scheduled for Thursday.

Parts of the bill are also being evaluated by the House committees on appropriations and ways and means. — Beatriz Marie D. Cruz

European Chamber calls for EV tariff exemptions covering all countries of origin

REUTERS

THE European Chamber of Commerce of the Philippines (ECCP) urged the Philippines to eliminate tariffs on imports of all electric vehicles (EVs) regardless of country of origin.

In a statement, the ECCP sought tariff exemptions “for EVs imported from all countries — not only those coming from select economies.”

It is unclear whether the actual tariff reductions will be limited to certain supplier countries, as the proposed executive order (EO) on the tariff exemptions has not yet been released.

The National Economic and Development Authority (NEDA) Board has said only that it endorsed an EO cutting tariffs on EV imports.

In a letter to the Department of Energy (DoE), the ECCP said broad adoption of EVs will help the Philippines reduce its dependence on imported fuel.

“Import duties on all EVs should be lifted to accelerate the Philippines’ shift to EVs, and to spur demand for these vehicles amid high fuel costs,” the ECCP said.

The ECCP also declared its support for an EV tariff exemption on vehicles for household use until 2035.

The ECCP Automotive Committee called for the complete removal of tariffs on EV imports.

“Any types of EVs used for testing, research, marketing, and training must not be subjected to duties coming from any country,” the ECCP said in its letter to DoE.

Last week, the NEDA Board endorsed tariff reductions on EVs, including passenger cars, buses, minibuses, vans, trucks, motorcycles, tricycles, scooters, and bicycles. Tariff rates for EV parts will also be cut to 1% from 5%.

Separately, Trade Secretary Alfredo E. Pascual said during the 2022 Philippine-German Business Forum on Tuesday that the department will help promote EV adoption in the transition away from internal combustion engines.

“The Electric Vehicle Industry Development Act or EVIDA…. can offer targeted incentives to EV model and parts manufacturers in the country,” Mr. Pascual said.

“I opened a potential engagement between our two countries in the sunrise industry of EVs. The German government and the German private sector can tap the Philippines’ significant green metal reserves of nickel and copper,” Mr. Pascual said.

Separately, Mr. Pascual also solicited more partnerships with German companies in the information technology-business process management industry.

He said the initial targets are German firms that are already in the Philippines which are seeking to expand.

“Our government has made significant strides in creating an enabling environment for foreign businesses in support of our country’s recovery and growth,” Mr. Pascual added. — Ashley Erika O. Jose and Revin Mikhael D. Ochave

Marcos to sign EO fast-tracking strategic investment approvals

President Ferdinand Marcos Jr. answers questions from the media after his first Cabinet meeting in Malacañan Palace, July 5, 2022. — PHILIPPINE STAR/KRIZ JOHN ROSALES

PRESIDENT Ferdinand R. Marcos, Jr. is expected to sign an executive order (EO) that will fast-track applications for investments deemed strategic to the economy, the Palace said on Tuesday.

The order will establish a green lane in government agencies and local government units (LGUs) to streamline the issuance of permits and licenses, Acting Press Secretary Cheloy Velicaria-Garafil said in a statement.

The Department of Trade and Industry (DTI) had proposed the EO to ensure the smooth entry of foreign direct investment (FDI) and improve the Philippines’ regional competitiveness.

“That will address immediately what we call the ease of doing business, which is always complained about,” Mr. Marcos was quoted as telling DTI officials at the Cabinet meeting on Tuesday. He urged agencies to “cut down” on delays as much as possible.

The EO formally tasks government agencies and LGUs to act on applications within three business days for simple transactions, and seven business days for complex transactions.

The EO timetable is in line with the provisions of the Ease of Doing Business Act (Republic Act 11032). RA 11032 also allows 20 days for highly technical transactions.

All applications where approval is not given within the specified time are deemed approved, according to the law.

A technical working group led by the DTI’s Board of Investments will oversee the rollout of green lane services.

Ms. Garafil noted that public officers or employees that do not comply with the order’s provisions will face administrative and disciplinary sanction.

In 2020, The Philippines ranked 95th out of 190 countries in the World Bank’s Doing Business Report.

FDI net inflows fell by 12% in the first seven months of 2022, the central bank data said.

Foreign investment pledges declined 22.4% in the third quarter due to rising inflation and the ongoing Russia-Ukraine war, according to the Philippine Statistics Authority.

Approved foreign investment pledges during the first nine months of 2022 rose 15.6% to P68.28 billion. — John Victor D. Ordoñez

Technology investor briefs senators on potential foreign investment deal-breakers in legal system

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AN Israeli tech investor said a country’s legal system is a major consideration in attracting foreign investment, and urged legislators to reform the tax system and investment regulations.

Or Haviv, an Arieli Capital partner and the firm’s head of Global Innovation, said at a forum organized by the Israeli embassy that “the devil is in the details” when it comes to evaluating the legal system of a target company’s home country.

“If I see a legal system that’s going to be problematic for me, I’m not going to go there, that would kill the deal,” he told reporters on the sidelines of the roundtable discussion.

“How do we create a business infrastructure that is attractive to investors, that takes care of their interests, that tells them: be relaxed, if you have problems, these are your rights, this is what you do, this is how we can help you protect your rights, your position in the companies; and that’s how you attract outside forces,” he added.

Mr. Haviv and representatives from the Israeli embassy met with Senators on Monday in connection with the opening of an exhibit showcasing Israel’s innovation projects in the Philippines.

Mr. Haviv did not provide specific details of their “initial discussions” on the proposed reforms, but added that Senators must think more internationally and less so in terms of local issues and concerns.

“Get out of the mindset of local and start thinking global,” he said. “You need to think about how the Philippines can create value for the world, not just for the Philippines, because if you create value for the world, the world will come to you and the Philippines will benefit.”

Arieli Capital invests in emerging technology, deploying capital provided by high-net-worth individuals, family funds, private banks, and financial institutions.

He said the Philippines as an investment destination has a number of things going for it, including fluency in English, its potential as a gateway to other Asian markets, and a desire within the country’s leadership to improve its technological capacity.

“I heard a lot of desire to do things coming from the Philippine Senate. I think it’s great, but I think the question is, follow-up. Is there going to be follow-up?,” Mr. Haviv said. “I believe there will be. I sensed good vibes in the room, from the people.”

“If we get some partnership with the Senate and the people, then it would be a good start,” he added.

Mr. Haviv described the concentration of call centers in the Philippines as emblematic of its “low-tech” niche, which he said can be leveraged when it upgrades its technology.

“You can take this experience in low-tech in call centers and turn it around,” he said, noting that in Israel, military and security experts were turned into cyber and information technology specialists.

“So, if you take people that manage thousands of people in call centers and manage millions of customer support systems, and turn them into high-tech solutions, that can create a lot of demand for big companies like Amazon that are hiring them today as call centers,” he added.

Upgrading technology will also require government involvement, Mr. Haviv said, such as incentives and simplified dealings with companies.

Ambassador Ilan Fluss, who was speaking at the event, said the Israeli delegation will also be meeting with other government agencies to discuss more government-to-government collaboration. — Alyssa Nicole O. Tan

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