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SEC revokes registration of seniors, elderly club

THE Securities and Exchange Commission (SEC) has revoked the registration of Senior Citizens and Elderly Welfare Club of the Philippines, Inc. (SCEW) for selling fraudulent identification (ID) cards similar to senior citizen cards.

The IDs it offered allegedly entitles the card holder to 20% discounts and other benefits under Republic Act (R.A.) No. 9994 or the Expanded Senior Citizens Act of 2010.

Under the law, only Philippine residents aged 60 and above are considered “senior citizens or elderly.”

With SCEW’s scheme, it encourages “junior citizens” aged 40 to 59 years old to purchase its ID cards for a “lifetime membership” fee worth P300 to P600. There were also reports that the entity sold booklets akin to those issued to senior citizens.

SCEW is registered with the SEC as a nonstock corporation, but it does not hold power to issue membership cards that would allow members to avail of privileges for senior citizens under R.A. 9994.

The SEC said it received numerous reports about SCEW and queries regarding the legitimacy of its scheme.

When the SEC held its surveillance operation on Sept. 4, 2019, it met SCEW’s president, Restituto E. Perez, Jr. who explained that “what the SCEW was doing was only to help the Filipino people recover the taxes that they paid.”

The SEC further reported that Mr. Perez said he was merely “helping the people in bridging the gap and inequality in the grant of benefits to the other age group other [than] that [of] the senior citizens.”

According to an SEC advisory issued by the end of September 2019, SCEW’s membership card scheme was already widespread with over 140 satellites across the country distributing the cards. Apparently, these IDs may also be availed of abroad.

“The holders of these IDs would be able to avail of the discounts and privileges of the senior citizens to the detriment of the establishments, which are mandated to honor the senior citizen’s card,” the SEC said in its advisory.

The SEC said it worked with different government agencies for the case, such as the Office of the Standards Bureau of the Department of Social Welfare, the Department of Trade and Industry, and the Development and the Officer of the Senior Citizens’ Affairs of the Quezon City Hall, as SCEW’s office address is within the city.

The regulator said SCEW’s scheme of selling membership cards that also works as a discount card to entitle the holder to the privileges under R.A. 9994 is “considered a serious misrepresentation.”

“The activities of SCEW in selling SCEW ID cards with a promise of entitlement to the 20% discount is considered an ultra vires act and therefore, constitutes serious misrepresentation as to what the corporation can do to the great prejudice or damage to the general public which is a ground for the revocation of a corporation’s primary franchise or certificate of registration/incorporation,” the SEC said. — Keren Concepcion G. Valmonte

Governance standards for payment system operators set

BW FILE PHOTO

THE CENTRAL BANK has set governance standards for operators of payment systems (OPS), including qualifications for officials and possible grounds for termination.

Circular 1127 signed by Sept. 17 also imposed stricter rules for OPS that engage in other businesses regulated by the Bangko Sentral ng Pilipinas (BSP).

“The guidelines set governance standards that prescribe the quality of stewardship among OPS given that these entities have critical roles in ensuring the smooth circulation of funds in the economy in a safe, efficient, affordable and convenient manner,” the central bank said in a statement.

The circular is applicable to the BSP as the operator of the real time gross settlement system of PhilPaSS Plus. It likewise covers BSP-supervised financial institutions, including banks, nonbank financial institutions, nonbank electronic-money issuers, cooperatives, and other businesses that are considered OPS under central bank regulations.

All OPS are required to comply with a risk appetite statement which details the types of risks they are willing to accept and avoid in order to keep their business objectives. This should include statements that report measures on systemic, financial, and operation risks that could build up through the course of their business.

A risk government framework that lays out the business strategy that will be adopted by a firm’s board of directors will also be required.

The circular requires an OPS to have a board of directors composed of 5-15 members. One of them or at least 20% of the board should be independent directors.

Foreigners can be part of the board of directors of an OPS except for cooperatives, to the extent provided by existing laws and regulation.

An OPS is also expected to have an audit, risk oversight, and corporate governance committees that will oversee their operational and financial reporting processes and look into concerns of malpractice and resulting investigations, if needed.

Under the circular, directors and officers could be subject to either permanent or temporary disqualification. Persons will be permanently disqualified from assuming officership in an OPS if they were convicted by final judgment for violating the payment systems law, and those found to be blamed behind the closure of an OPS based on findings by the Monetary Board.

Meanwhile, grounds for temporary disqualification include unwillingness to pay financial obligations, being involved in a previous OPS closure whose case is still pending before the Monetary Board, failure to discharge duties that in turn threaten the reliability of a payment system, as well as those already engaged in businesses similar to the OPS.

Persons that were involved in violations that could result in dismissal or termination under the Labor Code of the Philippines and those with pending cases related to financial crimes could also be subject to temporary disqualification.

OPS are given six months to comply with the circular, except for the provisions on temporary disqualification of directors and officers of OPS, which shall take effect immediately.

The issuance will complement the adoption of international standards under the Principles for Financial Market Infrastructures, the BSP said.

The circular is also in line with the phased-in implementation of Republic Act 11127 or the National Payment Systems Act which was enacted in 2018.

There are 160 BSP-registered OPS as of Sept. 10. — Luz Wendy T. Noble

You can look but not buy…yet

Leading to the Q4 opening of Ikea, the store is holding pop-ups and an online  festival

YOU may have missed the Ikea Festival held online on Sept. 17, and the SM Mall of Asia (MOA) pop-up event (ending on Sept. 19) but don’t fret. The highlights are still posted online at ikea.com/festival, while the pop-up will travel for weeks to come, beginning in SM Megamall.

The festival opens the doors of 100 homes across 50 Ikea markets. It features house tours, healthy, planet-friendly, and zero-waste cooking demos, and live performances (at home). It also featured views of the factory floor in Zbąszynek, Poland, to the prototype shop in Älmhult, Sweden. One can also view the history of Ikea in the website.

Ikea also put up a billboard featuring more than 1,000 Filipino families along EDSA. The billboard, seen at the Magallanes section of the major metro Manila highway, is a collage of the many life-at-home stories of Filipinos shared with Ikea last June. “This is a celebration of life at home in the Philippines, in a time when our home has never been so important,” said Deputy Ikea Pasay City store manager Aileen Prodigalidad during a media event last week.

The Ikea store in Pasay is slated to open in the fourth quarter (Q4) of this year, although an exact date had not been disclosed during the media event. Ikea Pasay City store manager Georg Platzer said, “It’s so good that we can finally kick off a fantastic festival today, and also announcing the opening of our first-ever pop-up store in Mall of Asia.”

Unfortunately, the pop-up store is meant only to be seen — no buying is involved. As Ms. Prodigalidad clarified, “The pop-up is an inspiration. This is a showcase of life at home. At the moment, we are not selling our products. We’re not going to be selling products at the pop-up.”

The pop-up will go on to other locations, beginning in SM Megamall in the coming weeks, said Ms. Prodigalidad. The locations and dates for the next pop-ups were not discussed.

To access the Ikea Festival and get the full program, visit the festival page ikea.com/festival, with no sign-ups or payments required. — JLG

Shorter quarantine period for all passengers from abroad sought

PHILIPPINE STAR/EDD GUMBAN
JOEY Concepcion says airlines ‘have to be viable’ to protect them from bankruptcy. — PHILIPPINE STAR/EDD GUMBAN

PRESIDENTIAL Adviser for Entrepreneurship Jose Ma. “Joey” A. Concepcion III said on Saturday that embattled Philippine Airlines, Inc. (PAL) has sought to shorten the quarantine period for all arriving passengers from abroad.

Mr. Concepcion said he recently met with representatives from Philippine Airlines, Cebu Pacific, and Philippines AirAsia to discuss their concerns and some ways to help the struggling sector survive the pandemic crisis.

“So nag-usap kami (We talked). We invited Dr. Edsel T. Salvaña, the IATF (Inter-Agency Task Force) medical adviser,” he said at a virtual Palace briefing on Saturday.

“With the idea of PAL which was presented, maybe we can reduce the quarantine of incoming passengers… to the Philippines down from ten days plus four days at home to maybe seven days,” he added, noting that the shortened quarantine period should help tourists with their expenses.

The official said airlines “have to be viable” to protect them from bankruptcy.

“If the airlines do not become viable and they close, masisira iyong ibang sektor natin, ang tourism (other sectors will be affected, including tourism),” Mr. Concepcion said.

PAL has filed for Chapter 11 creditor protection in the United States. Its listed holding company, PAL Holdings, Inc. (not included in the Chapter 11 filing), had been incurring losses even before the global health crisis. Its attributable net loss widened to P71.91 billion in 2020 from P10.31 billion in 2019.

In a summary of the meeting sent by PAL to BusinessWorld on Sunday, the airline said it was represented by its president and chief operating officer, Gilbert F. Santa Maria, and its senior vice-president and chief strategy and planning officer, Dexter C. Lee.

Philippines AirAsia Chief Executive Officer Ricardo P. Isla and Cebu Pacific Vice-President for Cargo Alex B. Reyes were also present at the meeting.

In the meeting summary, Messrs. Santa Maria and Lee were quoted as saying that international travelers find requirements such as testing and quarantine periods to be “very burdensome,” forcing them to put off their travel plans.

They proposed that passengers be tested 72 hours prior to departure, quarantined upon arrival, and required take an RT-PCR (reverse transcription polymerase chain reaction) test on the third day.

Passengers with a negative result should be allowed to leave the quarantine facility on the fifth day so that they can continue their quarantine at home.

PAL said the proposal would enable passengers to save up to P25,000.

It also wants the IATF to include North America on the list of green countries.

Fully vaccinated passengers from green or low-risk countries are allowed to enter the Philippines. They are required to undergo a seven-day facility-based quarantine.

PAL said it earned $1 billion from the North American market prior to the pandemic crisis.

Other groups that attended the meeting with Messrs. Concepcion and Salvaña were Philippine Hotel Owners Association, LT Group, Air Carriers Association of the Philippines, MacroAsia Corp., Victory Liner, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigang Bus sa Pilipinas, Inc., ASEAN Business Advisory Council, and Go Negosyo. — Arjay L. Balinbin

Princess of speed

PHOTO FROM BIANCA BUSTAMANTE

This 16-year-old Pinay racer is quickly amassing achievements, while trailblazing the way for young girls who aspire to motorsports greatness

IT’S BEEN a while since the world started to long for some female representation in Formula 1 racing (and in all other motorsports, for that matter). And for that reason — promoting gender diversity and changing the current paradigm — the FIA (Federation Internationale de l’Automobile), back in 2009, formed the Women in Motorsport Commission (WMC).

Among the goals of the FIA’s WMC is to develop social and educational programs open to women around the globe, in order to highlight and demonstrate that motorsports and all of its aspects are definitely open to women. In 2020 began one of its major projects: the FIA Girls on Track-Rising Stars Scholarship Shoot-out.

Enter our sweet 16-year-old Bianca Bustamante — one of the 14 up-and-coming young talents who were selected by the FIA WMC from a pool of over 70 applicants from around the world to participate in the shoot-out. The young Filipina also happens to be the only Asian driver who was selected this 2021.

Basically, the selected participants compete in a series of elimination challenges, with the first one being a shoot-out to be held at the Paul Ricard Race Circuit in France. The event will be held this coming Oct. 21 to 23, during which time the 14 hopefuls will undergo several race tests in order for the FIA WMC to determine the eight best-performing drivers. Those eight drivers who make the cut shall be sent to attend FIA training camps, and then from there, onto Fiorano, Italy for their final tests in Formula 4 cars. The winner in this final elimination phase shall be the one recruited and awarded full race scholarships — courtesy of Scuderia Ferrari’s world-famous Ferrari Driver Academy.

If you will recall, the Ferrari Driver Academy has produced successful Formula 1 drivers such as this season’s Sergio Perez of Red Bull, Mick Schumacher of Haas, and of course, Charles Leclerc of Ferrari.

With such a priceless opportunity at stake — plus potentially, a huge financial relief, considering the blatantly high cost of starting a career in professional racing — Bianca Bustamante is totally determined and simply thrilled.

She shares: “I fell in love with racing ever since I was a kid, and I haven’t stopped training in preparation for this moment. Now that it’s becoming a reality, I will continue to work hard towards being selected for the Ferrari Driving Academy race scholarship. I am so proud to represent the Philippines in this competition and to be the only Asian driver selected is an added bonus, but (it) also adds a bit of pressure to represent the Asia region against the global field! I will continue to train hard leading up to the event and do my best in France!”

Bianca was first introduced to karting by her dad — who was a former karter — and she immediately felt a connection with the sport as early as age three. By the time she was five, she was already racing, and has since excelled in the field of motorsport, bagging several karting championships across Asia.

Her achievements include the following:

• Four-time winner of the China Grand Prix Kart Scholarship (2018-2019)

• Three-time Macau International Kart GP Champion (2014, 2018, 2019)

• Two-time Junior Asian Karting Open Championship — Overall Champion (2018, 2019)

• Three-time Philippines Driver of the Year-Karting (2018, 2019, 2020)

• Philippines National Junior Karter of the Year (2018)

And when asked what she’d like to share to other young Filipina hopefuls who wish to pursue a career in racing someday, she says: “Racing is very difficult. You need passion, dedication, discipline. It’s like learning a new language — you need to put in the hours to get better! And you find ways to make things work. Gender should never hinder us from achieving our dreams. You need to be brave! It’s only one life.”

Good luck in your shoot-out this October, Bianca! The Philippines is rooting for you and what you represent for female empowerment!

Mobility in the time of COVID-19

JP Tuason of Tuason Racing School — PHOTO FROM FORD PHILIPPINES

Ford Philippines wants us to focus on safe driving in the new normal

THE NEW NORMAL (actually not so new anymore) has taught us a myriad of hard truths. It made us relearn new habits while dispensing of old ones which have suddenly been made irrelevant and risky in this age of the pandemic.

One of the more obvious reboots of sorts happened in the mobility sector. Capacity has been drastically reduced in fear of spreading the virus, and a lot less public utility vehicles are plying the metro roads. Meanwhile, private vehicles are logging far fewer kilometers (if at all), with both lockdowns and work-from-home arrangements conspiring to reduce the need for leaving the house.

The question remains though: What does COVID-19 mean for our vehicles? Do less miles mean less trips to the casa for preventive maintenance services? What kind of things do we need to bear in mind so that our cars don’t become vectors for the virus?

These are just some of the questions that Ford Philippines aims to answer with the launch of its globally recognized Driving Skills for Life (DSFL) program. A corporate social responsibility thrust that is part of the Blue Oval’s Global Caring Month celebrated every September, DSFL was postponed last year because of the pandemic.

In 2021, it makes a safe return via the digital medium, and is themed “Safe Driving in the New Normal.” Ford said that this year’s DSFL “will cover timely topics including pandemic car care and maintenance tips, car sanitation and disinfection, and driving techniques during the rainy weather.” These newer concerns are given attention “in addition to the existing DSFL training module which covers basic vehicle dynamics and handling, driving in various conditions, anti-distracted driving, and fuel-efficient driving.”

Said Ford Philippines Assistant Vice-President for Communications Edward Joseph Francisco, “We are excited to bring the DSFL back this year as part of our Global Caring Month, bringing to life our long-standing advocacy on road safety on the digital platform. This year, we are making the DSFL a more relevant training program for our participants by sharing the necessary driving habits and skills as they navigate the roads in the ‘new normal.’”

Helping a new set of motorists learn (or relearn) the ropes is longtime Ford partner and training facilitator Tuason Racing School. DSFL will be a series of interactive training sessions replete with instructional videos, games, and contests. Also along for the ride are celebrity Sam YG and beauty queen Michelle Dee, who have been tapped as this year’s Ford “road safety ambassadors” and should “help expand the visibility of the program in the digital space.”

Ford reported that DSFL “has successfully trained over 26,000 drivers since it launched in the country. Over the years, the program has made itself relevant with the changing road conditions, policies, and government regulations. In 2019, over 3,300 public and private drivers participated in the DSFL.”

So, what are some of the things we need to keep in mind during this pandemic normal?

Tuason Racing’s JP Tuason said that defensive driving is just as important during lockdown. Well, come to think of it, quite a bit of the traffic volume is back, and accidents have been again happening — mostly due to driver error. In fact, citing the Metro Manila Accident Reporting and Analysis System, Mr. Tuason shared that there were 65,032 road accidents in the metro in 2020 — translating to a daily average of 178 road-crash incidents. More than 50,000 of these resulted to damage to property, and 14,465 caused non-fatal injury.

PANDEMIC DO’S
How do you avoid getting or spreading the virus through your vehicle? First is, of course, to clean and sanitize your ride frequently — paying special attention to common touchpoints such as the steering wheel, shift knob, exterior and interior door handles, lock/unlock buttons, seat belt and seat belt buckle and button. Don’t forget the push-start button and all other things you touch every time you drive your car. Make sure that you use appropriate cleaning implements and liquids, lest you risk damaging the various surfaces in the cabin. Mr. Tuason also suggested to keep extra face masks and shields in the car for obvious reasons.

Next, depending on the lockdown level, it’s best to limit the number of passengers — even if you belong to one household. Another thing of particular importance — and I personally experienced this care of, surprise, a dead battery — is that using our vehicles less means more drain on the battery because of the limited opportunities for it to recharge during normal operation. Mr. Tuason recommends to drive or at least start your car daily. Lastly, do park your car in a cool spot — for obvious reasons.

With regard to preventive maintenance service, the main idea is to look after the vehicle so that it is good to go when you need it. While we’re logging less kilometers, the weeks and months fly by. Mr. Tuason advised to change the oil of your vehicle at least once a year — whether you reach the recommended distance or not — because the oil loses its effectivity after a while.

PANDEMIC DON’TS
If you have to park your car for a long time, disengage the handbrake so that no adhesion will take place. Also, as bottles of alcohol/sanitizer are part of our musts when going out, do not leave these items inside the car — particularly if parked under direct sunlight. These may ignite or even explode.

In attendance during the online media event was new Ford Philippines Managing Director Mike Breen, who shared that he arrived in Manila just a few weeks back with his wife. This marks the first time he’s been in the country since his appointment to the post back in June 1.

He asserted that the DSFL program indeed reflects Ford’s “long-standing advocacy on road safety,” and is a “key to (Ford’s) business.”

The Ford Motor Company Fund, along with US Governors Highway Safety Association and a panel of safety experts, first started the DSFL in the US in 2003 “to teach newly licensed drivers the necessary skills for safe driving beyond what is learned in standard driver education programs.”

Ford Philippines shared that “a number DSFL sessions will be open to the public to register and participate.” For more information, visit the Ford Philippines Facebook page.

LANDBANK lends Sorsogon LGU P94.5M to build oxygen plant 

LAND BANK of the Philippines (LANDBANK) lent the local government of Sorsogon P94.5 million to construct the first state-owned oxygen-producing plant in the province. 

LANDBANK said in a press release on Sunday that the loan will be used to buy and install an oxygen-generating facility at the Sorsogon Provincial Hospital to boost the supply of medical oxygen of all nine public hospitals in the province. 

The oxygen plant is targeted for completion in early 2022 as part of the local government’s response to the country’s worsening coronavirus outbreak and the rising demand for oxygen as infections continue to spike. 

The lender said costs for oxygen tank refilling will also be cheaper at P157 per tank from P490 each currently once the facility is finished as it will provide additional oxygen supply for the province that has been relying on just one supplier in Camarines Sur. 

More than 800,000 residents of Sorsogon, as well as those residing in its neighboring provinces, are expected to benefit from the project, the bank said. 

The arrangement of the loan agreement was led by Sorsogon Governor Francis Joseph G. Escudero. 

“LANDBANK remains committed to serving the nation at the frontlines of our battle against the pandemic. Alongside our LGU partners, we stand ready to service growth and recovery requirements, which include boosting local healthcare services and providing support to medical frontliners and their constituents,” LANDBANK President and CEO Cecilia C. Borromeo was quoted as saying. 

Last year, the state-run bank put up a P20-billion lending facility for local government units (LGUs) to help finance their pandemic response programs and projects. 

It also provides a P1-billion interest subsidy for new and existing loans of LGUs as authorized by Republic Act No. 11494 or the Bayanihan to Recover as One Act or Bayanihan II. 

LANDBANK’s net income went up by 1.67% to P5.48 billion in the first quarter, keeping it on track to hit its P19.68-billion target for the year. — BML 

Colorful catwalk shows return at hybrid London Fashion Week

MODELS on the catwalk during the Labrum London fashion show, held at the TikTok show space as part of London Fashion Week, Sept. 18. — MATT CROSSICK/EMPICS/REUTERS

LONDON — A hybrid London Fashion Week kicked off on Friday, with a mix of digital presentations and the event’s first in-person shows in a year. International press and buyers were back watching the catwalk presentations, including displays from menswear designer and choreographer Saul Nash and Turkish-born Bora Aksu.

“It feels really great to be back,” Caroline Rush, chief executive of the British Fashion Council (BFC), told Reuters. “We’re excited to see those key media and retailers that help drive British business.”

The line-up features 79 physical events — including shows, appointments, and presentations — and 82 digital productions.  Only a handful of designers held in-person catwalk shows last September.

At in-person events “we will be asking for proof of vaccination, we will be encouraging everybody to test every morning,” Ms. Rush said. “And if people haven’t been vaccinated, then testing every morning will be absolutely mandatory as well. Backstage is much stricter … and we will be encouraging people to wear masks.”

This season, the BFC has teamed up with short-video platform TikTok to host its NEWGEN program aimed at up-and-coming designers.

Saul Nash dressed models in relaxed loungewear including shiny or printed tracksuits and matching polo tops and shorts.

Known for her feminine designs, Alice Temperley took inspiration from Agatha Christie mystery Death on the Nile for her spring/summer 2022 collection. In a pre-recorded video, models wore floral, leaf, and zebra-print dresses, checked trouser suits and safari-inspired denim jumpsuits. For evening wear, there were green silky and black sparkly gowns.

Bora Aksu turned to late Amsterdam socialite Mathilde Willink, known for her bold style, for his spring line of colorful ruffled dresses, flared trousers, and knit ensembles. In an outdoor garden show, models wore silk tulle and taffeta dresses in hot pink, green, yellow, red, and coral — some adorned in floral embellishments. There were also pussy bow collars, cropped jackets, and trench coats, accessorized with knotted headscarves.

“As we’re stepping into this new world after a lockdown… I tried to inject this kind of humor and encouragement, and just saying that we don’t actually need to limit ourselves with fitting in a box, we can be free,” Mr. Aksu told Reuters.

The luxury goods industry has been hit hard by the pandemic, with demand dwindling due to store closures and travel restrictions. The UK womenswear market was worth 26.5 billion pounds ($36.49 billion) in 2020, down from 30.6 billion pounds the previous year, according to market research firm Mintel. London Fashion Week runs until Tuesday. — Reuters

Jollibee to invest €10M for more stores in Spain 

JOLLIBEE Foods Corp. (JFC) will be spending €10 million to fund its expansion in Spain, with the first store opening in the European country on Sept. 23.

The budget is a fifth of the €50-million investment it set for its Europe expansion. JFC wants to have 50 stores across the continent in the next five years.

In Spain, the restaurant group will be launching its first store at Puerta Del Sol in Madrid. The store will open at Calle Arenal, said to be one of Madrid’s “busiest thoroughfares.”

“Jollibee’s first Spain restaurant has a dining capacity for 180 guests, and features the brand’s store design reimagined for European customers,” JFC said in an e-mailed statement on Saturday.

The store was also designed to ensure safety with outdoor seating made available, a designated take-out collection area, and hand-washing stations. It will also have digital kiosks for transactions.

Jollibee Madrid will have a double-height dining hall to accommodate a full-sized palm tree at the center of the store.

The listed restaurant operator is banking on its international businesses to drive growth this year. It has 5,815 branches under its 17 brands in 44 countries.

The company aims to open 450 stores this year, majority of which will be launched abroad.

JFC shares on Friday declined by 3.43% or seven pesos, closing at P197 apiece. — Keren Concepcion G. Valmonte

DoF says no privatization for crop insurance firm

NDRRMC.GOV.PH

By Beatrice M. Laforga, Reporter

THE DEPARTMENT of Finance (DoF) said there are no current plans to privatize the Philippine Crop Insurance Corp. (PCIC), following fears expressed by farmers that premiums will rise if the government exits the industry.

“Privatization of PCIC is not being considered at this time. However, involving the private sector through tools such as reinsurance of agriculture risks will be explored,” Finance Secretary Carlos G. Dominguez III said Sunday, in response to a BusinessWorld query.

“Re-insurance will most likely allow the expansion of coverage to more farmers, more crops and livestock,” he added.

Federation of Free Farmers National Manager Raul Q. Montemayor said the government may be thinking of privatizing the PCIC after Executive Order (EO) No. 148, signed on Sept. 14, transferred the state-run crop insurance firm to the DoF from the Department of Agriculture (DA).

He cited DoF Undersecretary Gil S. Beltran’s remarks in May 2019, in which he first brought up the idea of privatizing the PCIC and convert it into a reinsurer.

The PCIC provides subsidized insurance protection to farmers against losses from natural disasters and plant and animal diseases, particularly for corn and rice.

“Without the subsidy, crop insurance will be prohibitively expensive, specially for small farmers… If the risk premium plus overhead costs are fully charged to clients, the premium will go up to 15% of the sum insured,” Mr. Montemayor said via Viber Friday.

The farmers group has maintained that EO 148 could make the insurer less responsive to the needs of farmers. It reconfigured the PCIC Board to make the Finance secretary chairman, relegating the Agriculture secretary to vice-chairman and reducing the number of farmer representatives on the board from three to one.

“The transfer of PCIC was done without any consultation with stakeholders. The DoF clearly has an anti-farmer bias, it does not want to consult the sector, and as with the Coco Levy, it does not want farmers meddling in its affairs. By reorganizing the PCIC Board, it has effectively changed the mandate and thrust of the PCIC as originally defined in its charter,” he said.

He maintains that the PCIC should still be mainly overseen by the DA for it to focus on its specific mandate to serve small farmers, rather than be run primarily as a financial institution.

“The DoF can be placed on the board to look after the financial health of the PCIC, but to place the PCIC under the DoF and to fill the Board with institutions that are under the supervision of the DoF smacks of overkill and is clearly a ploy to take full control of the agency,” Mr. Montemayor said.

Members of the board include the PCIC president, the Land Bank of the Philippines president, the Government Service Insurance System president and general manager, a private insurance industry representative, and a farmer representative.

In a Viber message last week, Finance Assistant Secretary Paola Sherina A. Alvarez said the transfer to the DoF was intended to ensure that the PCIC is “managed effectively for the benefit of the farming community.”

She said the PCIC will receive P4 billion in subsidies next year, but added that the government must ensure that taxpayer money is used “efficiently for the agriculture sector’s benefit.”

Peso to rise ahead of BSP meet

BW FILE PHOTO

THE PESO may appreciate versus the greenback this week as the market widely expects the central bank to keep rates low to support the economy.

The local unit finished trading at P49.95 per dollar on Friday, gaining two centavos from its P49.97 close on Thursday, data from the Bankers Association of the Philippines showed.

However, it weakened by 8.5 centavos from its close of P49.865 versus the dollar on Sept. 10.

The peso strengthened against its Thursday close amid the arrival of more vaccine doses in the Philippines, which boosted prospects for herd immunity and economic recovery, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Additional 661,200 doses made by AstraZeneca Plc were delivered to the Philippines on Friday morning. They were procured by the private sector through the National Government.

The country has already received over 58.2 million doses of coronavirus vaccines since February.

Despite this, the country’s fully vaccinated rate of 16.63% remains relatively low compared with its regional neighbors, only faring better than Indonesia (16.3%) and Vietnam (6.21%), based on latest data from the vaccine tracker of the Johns Hopkins University. The government is targeting to vaccinate 70% of the population by end-2021.

Peso-dollar trading last week was also affected by upbeat remittance data.

Cash remittances increased by 2.5% to $2.853 billion in July from $2.783 billion a year earlier, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday. July’s inflows were the biggest since the $2.89 billion in December.

This brought cash remittances for the first seven months of 2021 to $17.771 billion, up 5.8% from the $16.802 billion in the same period of 2020.

This week, Mr. Asuncion said the market will take its cue from the Bangko Sentral ng Pilipinas’ (BSP) monetary policy review on Sept. 23.

A BusinessWorld poll last week showed 17 out of 18 economists see the BSP keeping its key policy rate at an all-time low of 2%.

Analysts said policy support from the BSP remains crucial as the country has become the region’s “laggard” in terms of economic recovery from the pandemic. They said the Monetary Board will likely look past the beyond-target inflation as it is mainly caused by low supply.

Meanwhile, Mr. Ricafort said more vaccine arrivals and the increase in infections could also provide leads for investors.

Infections rose by 23,153 on Saturday, which was the second-highest daily tally after the 26,603 logged on Sept. 11. This brought active cases to 184,088, the Department of Health reported.

For this week, Mr. Ricafort gave a forecast range of P49.70 to P50.15, while Mr. Asuncion expects a slightly wider band of P49.70 to P50.20 per dollar. — L.W.T. Noble

Maynilad offers free desludging services to COVID-19 facilities

MAYNILAD Water Services, Inc. has been extending free desludging services to 56 quarantine centers, hospitals, government checkpoints, and other coronavirus disease 2019 (COVID-19) facilities since March last year.

The west zone water concessionaire said the COVID-19 facilities that benefited include Sta. Ana Hospital, Tondo Hospital, Quezon Institute, and Cavite City Hospital, as well as several government checkpoints and major quarantine facilities in Parañaque, Manila, Pasay, Quezon City, and Cavite province.

“The company has been regularly cleaning the septic tanks and portable toilets of these facilities for free, to help maintain good sanitary condition — through proper wastewater management — for the medical personnel and patients who use these COVID-19 centers,” Maynilad said in a statement.

Aside from the free desludging service, Maynilad said it distributed food donations, hygiene materials, and drink-wash stations for several government centers.

“In 2020, Maynilad also donated tents and other supplies to the quarantine facility in the University of the Philippines-Diliman and built a P15-million COVID-19 testing and laboratory center inside the Delos Santos Medical Center compound in Quezon City to help boost the country’s testing capacity,” it said. 

Maynilad provides water to Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati, and Quezon City, as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta, and Rosario.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

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