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From war to wild weather, global crop problems point to years of high food prices

REUTERS

ERIC BROTEN had planned to sow about 5,000 acres of corn this year on his farm in North Dakota, but persistent springtime rains limited him to just 3,500 in a state where a quarter or more of the planned corn could remain unsown this year.

The difficulty planting corn, the single largest grain crop in the world, in the northern United States adds to a string of troubled crop harvests worldwide that point to multiple years of tight supply and high food costs.

Russia’s invasion of Ukraine, a major agricultural exporter, sent prices of wheat, soy and corn to near records earlier this year. Poor weather has also reduced grain harvests in China, India, South America and parts of Europe.

Fertilizer shortages meanwhile are cutting yields of many crops around the globe. The world has perhaps never seen this level of simultaneous agricultural disruption, according to agriculture executives, industry analysts, farmers and economists interviewed by Reuters, meaning it may take years to return to global food security.

“Typically, when we’re in a tight supply-demand environment you can rebuild it in a single growing season. Where we are today, and the constraints around boosting production and (war in) Ukraine … it’s two to three years before you get out of the current environment,” said Jason Newton, chief economist for fertilizer producer Nutrien Ltd.

United Nations Secretary-General Antonio Guterres said last week that the world faces an unprecedented hunger crisis, with a risk of multiple famines this year and a worse situation in 2023.

Ahead of a crucial North American harvest, grain seeding delays from Manitoba to Indiana have sparked worries about lower production. A smaller corn crop in the top-producing United States will ripple through the supply chain and leave consumers paying even more for meat than they already are, as corn is a key source of livestock feed.

Global corn supplies have been tight since the pandemic started in 2020, due to transportation problems and strong demand, and are expected to fall further. The US Department of Agriculture (USDA) expects end-of-season US corn stocks to be down 33% from pre-pandemic levels in September before this year’s harvest, and down 37% in September 2023.

In North Dakota, corn would normally be at least knee-high by mid-June, but only about two-thirds of the state’s crop had even emerged from the ground. It was late May before Mr. Broten was able to plant any corn, and he traded in his seed for shorter-season and lower-yielding varieties twice before finally deciding it was too late to plant more.

Ideally, he would have finished corn planting by the first week of the month. He could not wait any longer for fields to dry out. “We were pushing the envelope, working ground that was way too wet, just trying to get a crop in,” Mr. Broten said, noting that wheel tracks are still visible in his corn fields where his farm machinery compacted the saturated dirt.

“Our production goals for the farm are going to be way down,” he said. The slow spring planting pace already forced USDA to lower its national corn yield outlook last month by 4 bushels per acre. That cut alone slashed the US harvest potential by more than 9 million tons, or equal to almost half of China’s record US imports last year.

The Biden administration moved to encourage planting as a means to temper food price inflation, already the highest in decades. The government lifted restrictions on planting on environmentally sensitive land, increased funding for domestic fertilizer production and made more counties eligible for insurance for planting a second crop this year.

But the benefits have been minimal as conserved acreage is limited and the soil can be less productive, while farmers are hesitant to risk double-cropping when seeds and crop chemicals are priced so high. US farmers may also leave unplanted some 3.2 million acres earmarked for corn and instead file prevented planting insurance claims that can compensate them when weather prohibits planting, according to University of Illinois economists.

An abnormally large share of prevented planting corn acres will likely be in North Dakota, while crops that were planted have an “elevated risk of damage from an early-to-normal frost,” the economists said in a report.

The problems extend north across the border in Canada, where heavy snowfall through April was followed by a May rain storm that washed out Gary Momotiuk’s fields and forced him to relocate panicked cattle in the middle of the night.

“It was just wild how high the water was,” said Mr. Momotiuk, 49, who farms near Dauphin, Manitoba. “It was probably the first time we could catch fish right in the farmyard.”

In mid-June, Mr. Momotiuk still had 1,200 acres unplanted. He abandoned plans to sow profitable canola and wheat crops because they would not have time to mature, and hoped to seed barley to feed his cattle.

Manitoba, the third-biggest provincial grower of spring wheat and canola in Canada, left 880,000 acres unplanted, the most in eight years and representing 9% of the province’s insured farmland, according to its Agriculture department.

Cassandra Lepp, who farms near Rivers, Manitoba, said her family’s custom application business planted crops by airplane for other farmers for the first time in a decade after the spring rain deluge.

Seeding by air enables farmers to produce a crop in challenging times, but the practice is costly and can lack the precision of traditional planting on dry fields, resulting in seeds that fail to germinate and lower harvest yields. “It definitely seems like the weather is getting more extreme,” Ms. Lepp said. “We just have to pivot really fast.”

Farmers may struggle to rebound from this season’s challenges as costs for inputs, from fertilizers to fuel that runs farm machinery, remain elevated. Grain output may suffer if margin-squeezed farmers cut back.

Scott Kay, vice-president of US crops for BASF SE, warned a shortage of herbicide that protects crops from weeds would likely persist. Ukraine’s grain output could take years to rebuild after fighting wrecked crop handling, storage and shipping infrastructure in a country that accounted for as much as 17% of global corn exports and 11% of wheat exports before the war.

Even once the war ends, global grain supplies are likely to remain structurally tight, said Nutrien economist Mr. Newton. Efforts to slow climate change are driving up demand for crops to produce biofuels instead of food and China is importing dramatically more grain as it runs out of new land for agriculture, he said.

Juan Luciano, CEO of grain trader Archer-Daniels-Midland Co., expects global crop staples to remain in low supply for at least two years. The war will create a global wheat shortage for at least three seasons, according to Ukraine’s agriculture minister.

But North Dakota’s Mr. Broten is more concerned about next year. “We had opportunities to buy inputs at a decent price so those costs are not going to reflect this year’s production nearly as much as next year’s,” he said. “I’m looking to see substantial increases in my cost of production for an acre of corn.” — Reuters

Tradition and transformation in single family offices

(First of two parts)

Family-run businesses require structures that are necessary to ensure a smooth transition. In the Philippines, the wealth of ultra-high net worth families is often managed by holding companies or a trust, and not by a family office.

So, what is a family office and why is it important for ultra-high net worth families? A family office provides services specifically to meet the needs of high net-worth families. It is basically private wealth management for family assets and so much more. Apart from being a financial advisor, single family offices (SFOs) are usually involved in activities in furtherance of the family’s philanthropical objectives, succession planning, family governance, tax reporting and other compliance matters. It is often used as a structure to manage family wealth in developed countries such as Singapore.

In today’s high-pressure and fast-changing environment, the strategic role of the SFO continues to evolve, amplify and expand. EY teams recently engaged with more than 250 SFOs around the world with the goal of gathering and sharing deeper insights into their priorities in times of accelerating economic, social, and geopolitical disruption.

The EY SFO study was commissioned to determine how SFOs perceive their capabilities, how they can learn from best practices, and where they can see growth opportunities or market challenges.

The EY study aims to help SFOs innovate around purpose, priorities and legacy, creating and protecting long-term value while also optimizing family office strategy and operations. The key findings from the SFO study are based on focus areas shared by the respondents regardless of their location and function. They reflect the insights shared by the respondents to the survey as well as the actions that leading SFOs are taking to respond to the rapidly changing business environment to deliver long-term value and support to family office stakeholders.

The key findings of the survey are set out across four focus areas: (a) wealth and regulation; (b) digital transformation; (c) risk and reputation; and (d) strategy and governance. In the first part of this article, we cover wealth and regulation, and digital transformation.

WEALTH AND REGULATION
Policy changes have always had far-reaching implications to the strategy, structure and operations of SFOs. Changes in the wealth and regulatory landscape are impacting every aspect of family office planning, strategy, and execution with the pace of developments requiring the need for agility. Recently, external forces brought about by the pandemic, geopolitical uncertainties, economic trends and social considerations have further intensified a keen focus on family wealth profiles.

As an example, an increasing number of global jurisdictions are using tax policy and transparency initiatives as a platform to address broader economic and social policy issues. Moreover, many jurisdictions are reviewing how their tax policies and enforcement will evolve to secure higher revenue while remaining fair and competitive.

SFOs also shared concerns about how new virtual ways of working will raise new tax considerations for family members, family office employees and their broader business ecosystem. Family office principals and beneficiaries often lead an international lifestyle, so when that is combined with the new normal of virtual work, it comes as no surprise that as much as 72% of the respondents in the SFO survey cited the tax consequences of remote working as a concern.

One survey respondent shared how companies now need to be more transparent about their taxes to both tax authorities and shareholders, and how family offices and family businesses worry about long-term sustainability. If SFOs want to be sustainable for the next 50 to 100 years, they should consider avoiding any entanglement with cross-border tax issues.

In addition, SFOs have to manage a delicate interplay between increasing demands for transparency and obligations for additional reporting and the ongoing desire to maintain family and personal privacy. This is reflected in the study, where 67% of the survey respondents shared significant concern about three or more regulatory issues.

Their worries are not very different from corporate entities, especially in the Philippines. As much as 64% also shared that they were not very confident that their tax operations are high performing, which indicates that more work must be done to remain compliant.

With the many external forces at play as well as the likely inevitable regulatory policy changes for prominent families, most SFOs will benefit from a careful review of how best to adapt to the shifting landscape. Fresh perspectives are needed now more than ever to satisfy critical obligations while sustaining strategic focus in support of family, business and regulatory stakeholders.

SFOs that can engage and proactively adapt are better positioned to meet these obligations.

However, getting hold of the required technology and skills in-house can prove difficult given the rapid pace and sophistication of changes in technology. This is why many SFOs are instead considering co-sourcing family office operations that involve the fastest changing technology and operating model or the most unique skillsets.

Emerging areas of focus also include tax, accounting, risk management and technology. SFOs need to adapt easily with the changing times, and they need tools in order to do so.

Disruptive technology is here to stay, and the technological landscape provides significant opportunities as well as challenges for SFOs as they prioritize technology and digital transformation trends more and more. Responses to the survey share a clear urgency for digital transformation across a broad spectrum, with 81% of respondents indicating plans to make significant investments in three or more digital tools and technologies in the next two years.

Whether it is regarding cybersecurity or using intelligent automation to improve efficiency and manage risk, SFOs are showing a clear drive towards employing a “digital first” mindset in the entire ecosystem — including connected businesses and the families involved.

As much as 74% of the respondents indicated experience in some form of data or cybersecurity breach. This is not surprising, as SFOs share concerns about a wide range of associated risks such as theft, loss of privacy, stolen identities, reputational threats, and even physical risks to family security.

However, the survey also shows that a diligent approach to cybersecurity does not seem to be the norm despite acute concerns. Most SFOs do not have robust practices in place to respond to cyber issues, with as many as 72% of respondents lacking a cyber incident response plan and less than a third with actual cyber training for their employees or family members.

With the increased use of remote working and collaboration amidst evolving technology requirements, there is a greater risk from a data security perspective. Leading families cannot simply acknowledge these inevitable changes — they must seize the opportunities arising from harnessing new technologies while becoming more sophisticated in managing related risks. Data-driven decision-making makes sense now more than ever given the insights that we can draw from it.

SFOs need reliable and ‘fresh’ data in order for such information to be useful in coming up with critical decisions. Before creating or choosing technology solutions, however, SFOs must first define evolving family stakeholder needs, strategic priorities, multi and generational expectations, and the core business functions of the SFO. These will determine the nature of the technology required, whether it would be a product off the shelf or an ecosystem of integrated solutions.

SFOs are also considering how to leverage external service providers in new ways by having them operate or support specific functions given the need for specialized resources. Some SFOs take a proactive route and formally engage the next generation of family leaders in designing and defining the necessary technology solutions for the future. By taking the lead, next generations can use their level of comfort with digital trends to spur innovation and align with objectives and expectations for tomorrow.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Kristopher S. Catalan is the Philippines EY private leader and Jules E. Riego is the Philippines and ASEAN Business Tax Services (BTS) leader of SGV & Co.

Good governance key to Marcos’ unity call, economic program

THOUSANDS of supporters of President Ferdinand “Bongbong” R. Marcos, Jr. are unfazed by the rain during a free concert held in Manila on the evening of June 30 after his inauguration in the morning. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. will have to pursue reforms for good governance to substantiate his campaign slogan of unity and pull off support towards economic recovery, according to political analysts and economists.

It would allow Mr. Marcos to tackle long-term challenges with the help of a broad array of sectors, they said.

“The pursuit of good governance reforms in his first 100 days would be a good way for President Marcos to give flesh to his campaign platform of unity,” said Francisco A. Magno, who teaches political science and development studies at the De La Salle University.

“This would entail measures that would improve citizen participation, public accountability, control of corruption, government effectiveness, regulatory quality, and rule of law,” he said in a Messenger chat.

Mr. Magno said promoting transparency and accountability in government and participatory leadership will boost business confidence. “These will pave the path to economic recovery from the COVID-19 crisis.”

John Paolo R. Rivera, an economist at the Asian Institute of Management, said a good governance agenda that values human rights is “good for the economy because everyone is given the opportunity to contribute to national productivity.”

“A good governance agenda that promotes participatory governance is important because this is what unity is about,” he said in a Viber message. “While government can do it by asking much from people, the participation of the citizenry is vital in ensuring success, sustainability of policies, and checks and balances.”

Good governance and human rights are mutually reinforcing, according to the United Nations’ Commission on Human Rights.

“Human rights standards and principles provide a set of values to guide the work of governments and other political and social actors,” it said in a website post. “Human rights principles inform the content of good governance efforts: they may inform the development of legislative frameworks, policies, programmes, budgetary allocations and other measures.”

It said that the rule of law and public service delivery are among the links between good governance and human rights.

Leonardo A. Lanzona, who teaches economics at the Ateneo De Manila University, said Mr. Marcos should ensure that he follows through the commitments he made during the campaign “in a way that does not violate the rule of law.”

“I think the priorities right now are short term in nature, getting through this hump and how to do it in a way that will be not damaging in the long term should be prioritized,” he said in a Messenger chat.

“In other words, he has to show he is qualified for the position and not just some member of a dynasty who may have won the elections illegitimately.”

Mr. Lanzona, meanwhile, said Mr. Marcos should immediately bare his pandemic recovery plan and inform the public about his economic priorities in his first 100 days in office.

Mr. Marcos has been hounded by a number of controversies during the campaign, including his family’s ill-gotten wealth and his failure to file income tax returns in the 1980s.

He and his family are also being urged to settle their unpaid estate tax that lawyers say has ballooned to more than P200 billion due to interests.

Maria Ela L. Atienza, a political science professor at the University of the Philippines, said it is important for both supporters and critics to continue pressing him “to address urgent issues” through specific programs, not motherhood statements.

“He tends to speak in general terms,” she said in a Viber message.

TRANSPARENCY
On Sunday, the presidential communications office said it will only be releasing statements on issues “where public interest is involved.”

This, after Malacañang reporters pressed the new administration to release a statement on the birthday celebration of Mr. Marcos’ mother at the presidential palace on July 2.

Former first lady Imelda R. Marcos, 93, was convicted for seven counts of graft in 2018. She appealed the ruling before the Philippine Supreme Court and was released on bail.

In a statement, a group of Martial Law detainees renewed its call for the matriarch and her children to be held accountable for the wealth they illegally acquired during the two-decade rule of their patriarch, the late dictator Ferdinand E. Marcos.

Samahan ng Ex-Detainees Laban sa Detensyon at Aresto (Selda) said Filipinos should not forget the “sins” committed by the former first family.

“They exploited the blood and sweat of Filipinos for their lavish lifestyle for many decades — from 1965 up until today,” it said in Filipino.

China not seen to budge from maritime activities after NATO branding

PRESIDENT Ferdinand “Bongbong” R. Marcos, Jr. receives Chinese Ambassador to the Philippines Huang Xilian at his campaign headquarters in Mandaluyong City on May 12, a day after his camp declared victory in the May 9 election. — BONGBONGMARCOS TWITTER PAGE

BEIJING is unlikely to restrain actions in the disputed South China Sea after a military alliance of 30 western states labeled China a “systemic challenge,” Philippine-based political experts said at the weekend.

Herman Joseph S. Kraft, who heads the University of the Philippines (UP) Department of Political Science, said China does not allow itself “to be swayed by public scrutiny.”

“It has its own way of dealing with the situation in the SCS,” he told BusinessWorld in a Viber message.

During a summit recently convened in Madrid, the North Atlantic Treaty Organization (NATO) said China’s “attempts to undercut the rules-based international order run counter to our values and interests.”

Top leaders of Japan, South Korea, Australia, and New Zealand also attended the NATO summit for the first time.

The South China Sea, a key global shipping route, is subject to overlapping territorial claims involving China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam. Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas.

“China’s policies and practices in the South China Sea have been under increased public scrutiny particularly after the 2012 Scarborough incident and the landmark decision by the Permanent Court of Arbitration. Even with the pandemic, China has not moderated its audacity in the South China Sea,” Jaime B. Naval, a UP political science professor, told BusinessWorld in a Facebook message.

Nonetheless, “continuing public scrutiny, international pressure and sagacious backchanneling efforts are vital in pressing on China to temper its ways,” Mr. Naval said.

China has refused to recognize the 2016 arbitral ruling that voided its claims to more than 80% of the disputed seas.

The Philippines has since filed several diplomatic protests against China due to its continued presence within the country’s exclusive economic zone (EEZ).

Former President Rodrigo R. Duterte, who pursued friendly relations with China, terminated oil and gas explorations between the two countries before his six-year term ended on June 30.

Mr. Kraft said this means negotiations under the new administration of President Ferdinand “Bongbong” R. Marcos, Jr. will have to start from scratch, “But from what the President has been saying, it seems there is an interest in building relations with China.”

He said he expects Mr. Marcos to enact policies similar to that of his predecessor.

“He should try 60-40 since this is what our Constitution mandates,” Mr. Kraft said, referring to the sharing agreement in joint exploration deals. “If the area being negotiated is in our EEZ, he should do no less.”

Mr. Naval said the new leader might also go for a strategy that makes a “distinction between partners as in the economic sense, and allies as in the traditional security sense.”

“It is very likely that economic ties with China would be sustained, and be given a boost,” he said. “However, on the alliance side, if the new president is indeed sending a nuanced signal, trying to distinguish between partners and allies, then our concerned MDT (mutual defense treaty) ally would be advised to heed the message and act accordingly,” he added.

Under the treaty, the United States, one of the 12 founding members of NATO, and the Philippines must help each other in case of any external aggression.

NATO has called out China’s “stated ambitions and coercive policies” and warned of the deepening strategic partnership between China and Russia, citing the latter as a threat with its continued aggression against Ukraine.

They criticized Beijing’s defense-building and economic policies, among other aspects, but at the same time remain open to “constructive engagement” with China.

Chinese Foreign Ministry spokesman Zhao Lijian last week asserted that the NATO 2022 Strategic Concept has “misrepresented facts and distorted the truth,” saying that the document sought to “stoke confrontation and antagonism and smacks heavily of Cold War mentality and ideological bias.”

“China is gravely concerned over this and firmly opposes it,” according to a transcript of his press conference posted on their website Thursday,

Mr. Zhao stressed that China is committed to a path of peaceful development, aiming to build a shared future for all mankind. — Alyssa Nicole O. Tan

Health department strained to get by without new head, directives

PRESIDENT Ferdinand R. Marcos, Jr. has yet to name his health chief despite the continuing increase in coronavirus infections and the waning immunity among the vaccinated population.

The Department of Health (DoH) said in the absence of a secretary, “our current pandemic response protocols continue to be implemented.”

“Everything is status quo until new directives from our new president come in,” it said in a Viber message to reporters over the weekend.

The Philippines is still confronting threats from emerging coronavirus variants and struggling to enhance the immunity of its citizens with the low take up of booster shots.

In his first memorandum circular, Mr. Marcos said government agencies where he has yet to designate a head shall be led by an officer-in-charge, who should be “the next in rank and most senior office.”

The DoH has yet to name its temporary head.

Health Undersecretary Maria Rosario S. Vergeire, a career executive officer and had stood as spokesperson for the agency, is now heading the National Vaccination Operations Center.

The administration of former President Rodrigo R. Duterte placed Metro Manila, which has recently logged a significant increase in coronavirus cases, under the first level of a five-scale alert system until July 15. — Kyle Aristophere T. Atienza

Iloilo City suspends transport scheme limiting jeepney services 

BW FILE PHOTO

ILOILO City Mayor Jerry P. Treñas has suspended the new transport scheme that restricts provincial jeepneys from the city, providing a 45-day period for further consultations and policy review. 

In an executive order dated July 1, his first under his fresh three-year mandate, the mayor said the 45-day suspension will start after a week that will be used for preparation activities on the expected traffic congestion with the return of jeepneys coming from the towns of Oton, Pavia, and Leganes.   

Mr. Treñas said the order is in consideration of the “still existing COVID-19 pandemic which requires observance of health and safety protocoals, the increasing prices of commodities, the inflation experienced by both national and local economies, public clamor of the community, and the impending increase of commuters due to the upcoming opening of classes.”  

The nationwide base fare for traditional jeepneys increased to P11 from P9 effective July 1 amid fuel price hikes.  

The Iloilo provincial board, which has administrative authority over the three towns, had earlier appealed to the independent Iloilo City government to reassess its new transport scheme, citing the “spiraling increase in the prices of crude oil, gasoline and other petroleum products”.   

“(T)he transport groups and the passengers coming from the municipalities will be burdened by taking multiple rides and exorbitant transportation fares,” the Iloilo provincial board said in a resolution.   

During the 45-day suspension of the transport scheme, which was first implemented on June 12, Mr. Treñas said all stakeholders in the public transport system — including operators, cooperatives, drivers, riding public, and the Land Transportation Franchising and Regulatory Board — can “address their respective concerns” to Iloilo City council.  

Iloilo City, located on the western side of central Philippines, is one of the fastest growing urban areas in the country.   

Mr. Treñas, who has been pursuing green urbanization policies and programs, won his reelection bid in May by a landslide. — MSJ

Davao City maps out plan for 2 industrial parks 

BW FILE PHOTO

THE DAVAO City government is pursuing plans to develop industrial parks with two potential sites, one each in the northern and southern parts, already identified, a local official said.   

Christian D. Cambaya, a unit head of the Davao City Investment Promotion Center, said the property being considered in the north is privately owned while the southern spot is under the state-owned National Development Company (NDC).   

Establishing industrial parks in Davao City has long been on the drawing board but hampered by budgetary constraints. There are two accredited agro-industrial parks, one light manufacturing, and more than a dozen information technology special economic zones.    

“We have identified in the north largely industrial areas in Tibungco, Bunawan and these areas are feasible because it is very close to the Sasa Port,” Mr. Cambaya said during the Habi at Kape media forum at Abreeza Mall last week.  

He noted that proximity to a seaport is one of the requirements for developing a special economic zone.  

The 80-hectare private property is currently planted with coconuts. 

For the 25-hectare NDC property in the south, Mr. Cambaya said negotiations are underway.  

A pre-feasibility study will be conducted starting this month to determine the specific type of ecozone that would be ideal for the city.  

“Pre-FS first then a full-blown FS will be undertaken, which is more expensive. But during the pre-FS, at least we can identify already the bird’s eye view of what type of park is good for Davao City,” he said.  

“By 2023 we can already have the full-blown FS,” he added. — Maya M. Padillo 

VP Sara opens satellite offices  

INDAY SARA DUTERTE FACEBOOK PAGE

VICE President Sara Duterte-Carpio’s office has opened satellite offices in six areas across the Philippines to make its services closer to the people.  

“We opened satellite offices in different parts of the country to give Filipinos easier access to the Office of the Vice President’s services,” she said in Filipino in a Facebook post, but did not specify the programs that are offered.  

Ms. Duterte-Carpio has said she would continue to live in her hometown in the country’s south, although she would spend most of her days working as a public servant in Metro Manila — an arrangement that her father, former President Rodrigo R. Duterte, was used to.   

The former Davao City mayor is also the secretary of the Department of Education, an agency previously led by economist and academic Leonor “Liling” Mirasol Magtolis-Briones.  

As education chief, Ms. Duterte-Carpio is faced with a lingering learning crisis that had worsened due to the long lockdown and restrictions in the past two years.   

The Alliance of Concerned Teachers (ACT) Philippines has also urged the new Education chief to fulfill her father’s promise of increasing the salaries of teachers.   

“She should push for significantly increasing teacher’s salaries to correct the distortion in the government salary scheme where teacher’s pay lag behind those of uniformed personnel and nurses,” it said in a statement. — Kyle Aristophere T. Atienza

P3.8-B cash aid for inflation released — LANDBANK 

PHILIPPINE STAR/EDD GUMBAN

THE LAND Bank of the Philippines (LANDBANK) has disbursed as of Friday P3.8 billion of the cash aid in response to rising prices of fuel and other goods, the state-run financial institution reported.  

This covers 3.8 million households consisting of three payout tranches under the Targeted Cash Transfer (TCT) program, it said in a press release on Sunday.  

The TCT will provide P500 per month for six months to about 12.4 million households.  

LANDBANK is responsible for distributing the cash subsidy through various mediums, including cash cards, other banks, electronic money issuers, and remittance centers. 

Beneficiaries are identified by the Department of Social Welfare and Development using data from existing and past cash transfer programs.   

Inflation averaged 4.1% in the first five months of the year, exceeding the Philippine central bank’s 2%-4% target after quickening to a three-and-a-half-year high of 5.4% in May. 

The Bangko Sentral ng Pilipinas (BSP) projects June inflation to further increase, settling between 5.7% to 6.5%, former BSP Governor and now Finance Secretary Benjamin E. Diokno said earlier on Twitter.  

Meanwhile, pump prices of diesel, gasoline, and kerosene had gone up by P41.15, P28.70, and P37.95, respectively, from the start of the year to June 14. — Diego Gabriel C. Robles

High court rules in favor of Bacolod private school vs registrar  

PHOTO BY MIKE GONZALEZ

THE SUPREME Court (SC) has granted the appeal of a private school in Bacolod City on a case involving the dismissal of a school registrar for gross misconduct.  

The High Court’s ruling reversed the decision of the Court of Appeals, which overturned a resolution by the National Labor Relations Commission (NLRC).  

In a 17-page decision dated March 28 and made public on July 1, the SC’s second division ruled the employee had been validly dismissed by the Colegio San Agustin-Bacolod (CSA-Bacolod) for “an act that constitutes a breach of trust and confidence.” 

The court said the former chemistry instructor and school registrar was validly dismissed for allowing ineligible students to march on graduation day.  

“Respondent’s conscious decision allowing the ineligible students to march shows her willfulness to transgress the established rule,” according to the ruling penned by SC Associate Justice Estela M. Perlas-Bernabe.  

“This willful transgression of a rule indeed results in the loss of the trust and confidence CSA-Bacolod has reposed on her.” 

CSA-Bacolod argued in its appeal to the country’s Highest Court that Ms. Montaño had shown wrongful intent in allowing some students to attend their graduation ceremony despite lacking requirements.  

The school had issued a memo that prohibited students that did not comply with all academic requirements to march during graduation rites. 

In the same decision the tribunal ruled that the employee was not entitled to back wages, separation pay, moral and exemplary damages, and attorney’s fees, but ordered the school to pay a total salary differential of P54,218.16 with 6% interest due to a diminution of benefits.  

Under the country’s labor code, an employer may terminate employment for serious misconduct or willful disobedience of orders. Employers may also fire an employee for an act of fraud or “willful breach of the trust reposed in him by his employer.”  

On the other hand, Ms. Montaño said that during her reappointment as school registrar, the school decreased her basic monthly salary from P33,319 to P26,658.  

The SC agreed that there was a reduction in her monthly pay, which went against the country’s labor code. — John Victor D. Ordonez 

Cornet stuns top seed Świątek

LONDON — The Iga Świątek winning machine broke down on a lush Wimbledon lawn on Saturday as the world number one and red-hot favorite for the title was comprehensively beaten 6-4, 6-2 by France’s Alizé Cornet.

There was a sense of disbelief on Court One as Poland’s Świątek, who had won her last 37 matches over four months, was outplayed by the unseeded 32-year-old.

Even when she fought back from losing the first three games of the match and then also led 2-0 at the start of the second set, top seed Świątek’s usual confidence was missing.

Cornet will face unseeded Australian Ajla Tomljanović in a bid to reach her second Grand Slam quarterfinal this year, having never achieved that before.

She completed her shock victory in one hour and 32 minutes, reeling off the last six games as Świątek disintegrated.

“I feel like maybe I’m like a good wine; in France, a good wine always ages well, that’s what’s happened to me,” Cornet said of her return to form this year.

“It’s unreal — I’m playing one of the best seasons of my career, I feel great on the court. I’m still so motivated and I still have the fire in me.” — Reuters

Ronaldo expresses desire to leave Manchester United

MANCHESTER United forward Cristiano Ronaldo has told the Premier League club that he wants to leave in the close season because of his desire to play in the Champions League, The Times newspaper reported on Saturday.

Speculation has been rife about Ronaldo’s future at United following a trophy-less campaign and their failure to qualify for the Champions League last season, although incoming manager Erik ten Hag has said the Portuguese international is part of his plans.

The report added that the 37-year-old believes that he can play at the elite level for another “three of four years.”

Ronaldo re-signed for United from Juventus in August 2021 and was one of the few bright sparks for Ralf Rangnick’s team last season, netting 24 times in all competitions.

The former Real Madrid attacker, who still has a year left on his contract at Old Trafford, has been linked in recent days with a move to Chelsea and Bayern Munich. — Reuters

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