TransCo studies remitting full income to gov’t

July 14, 2021 | 12:02 am

THE National Transmission Corp. (TransCo) said it is looking at remitting all of its net earnings last year to support the government’s coronavirus disease 2019 (COVID-19) response programs, the Department of Finance (DoF) said in a statement, citing a letter from the state-run entity’s top official.

“TransCo supports the DoF in its revenue generation efforts for the government’s programs to alleviate the impact of the COVID-19 pandemic, and in fact, it is exploring the possibility of remitting 100 percent from the 2020 net earnings,” TransCo President and Chief Executive Officer Melvin A. Matibag told Finance Secretary Carlos G. Dominguez III in the letter.

The DoF official earlier directed TransCo to scale up its 2020 dividend remittances to 75%.

TransCo needs to first secure clearance from its board for an additional budget of P817.11 million this year to cover the increase in the dividend remittance before complying with the DoF’s order, the entity said.

“Once the board approval is secured, TransCo will request for the approval of the additional budget from the Department of Budget and Management to support the dividend remittance to the National Government (NG),” Mr. Matibag was quoted as saying in the letter.

Under the Dividends Law or Republic Act No. 7656, all government-owned and controlled corporations (GOCCs) are required to declare and remit a minimum of 50% of their annual net earnings in the form of cash, stock or property dividends to the NG.

In the first half of this year, GOCCs remitted a total of P31.38 billion, with TransCo topping the list with a P8.32-billion contribution, according to DoF estimates.

Other top contributors include the Philippine Deposit Insurance Corp. at P7.1 billion; Philippine Amusement and Gaming Corp. at P4 billion; and Philippine Ports Authority at P3.76 billion.

Last year, TransCo registered P1.63 billion in dividend remittances or 50% of its net earnings.

The government has collected an average of P57 billion in remittances from the GOCCs annually. The Finance department described the amount as “more than double the average annual collection of the past administration.” — Angelica Y. Yang

Property-related transactions worth P321B reported by banks as suspicious

July 14, 2021 | 12:01 am

BANKS REPORTED suspicious property-related transactions worth P321.4 billion from 2019 to 2020, based on an assessment by the Anti-Money Laundering Council (AMLC), reflecting the sector’s tendency to be a recipient of illicit funds.

The “dirty money” watchdog said covered persons submitted 5,416 suspicious transaction reports (STRs) from 2019 to 2020 on accounts involving real estate players.

Among these reports, 76% showed suspicious indicators. Meanwhile, 24% were reported on the basis of their involvement in predicate crimes covered by the country’s anti-money laundering and counter-terrorism (AML/CTF) laws.

The property sector could become a vehicle for parking illicit funds in the economy as these can be disguised as safe investments, the AMLC said in its assessment.

It said criminals can take advantage of how properties can serve as safe houses and can also be income generating as these can be rented out.

“Real estate is as attractive to criminals as it is to any investor since its prices are generally stable and are likely to appreciate over time,” the AMLC’s study said.

The biggest chunk or P274.619 billion in transactions reported based on suspicious indicators were because they had no underlying legal or trade obligation, purpose, or economic justification. This was followed by transactions where the amounts involved were not commensurate to the financial capacities of clients (P2.5 billion), and other identical property deals exhibiting the same suspicious trends (P1.277 billion).

Meanwhile, for STRs filed due to their involvement in predicate crimes, transactions related to fraud or swindling (P42.074 billion) were the highest in terms of value, followed by scams and other violations of the Securities and Regulation Code (P640.4 million) and drug trafficking (P158.62 million). There were also STRs related to plunder (P34.59 million) and graft and corruption (P5.01 million).

On the other hand, three STRs filed in the period covering transactions worth P86.3 million were found to be possibly related to terrorism financing. There were no cases that were linked to proliferation of weapons of mass destruction and proliferation financing.

“While the understanding of targeted financial sanction on terrorism financing and proliferation financing of the real estate sector is arguably in its developing stage, this does not mean that threats do not exist,” the AMLC said.

Based on its assessment, the AMLC said the overall threat in the property industry is medium, which means there is “moderate volume of criminal activities and associated factors.”

This vulnerability assessment took into account the size of the sector; its client base profile; level of cash activity; use of agents and intermediaries and level of anonymity and non-face-to-face transactions; difficulty in tracing records; existence of dirty money schemes; and cross border international transactions.

Following the recommendation of the Financial Action Task Force (FATF), Republic Act 11521 passed in January included real estate developers and brokers as covered persons of the country’s anti-money laundering laws. This, as the FATF said that properties made up 30% of criminal assets confiscated globally between 2011 and 2013.

Around 3,288 brokers and developers have registered as covered persons with the AMLC as of May. The AMLC said they are faced with hundreds of pending registrations due to their limited manpower.

The AMLC this month released new guidelines which further tightened rules on monitoring real estate transactions. It provided a list of red flags that brokers and developers should monitor in their dealings with clients.

The Philippines is currently in the FATF’s gray list of jurisdictions that are under increased monitoring to prove their progress in implementing stricter AML and CTF laws.

The country will submit its first progress report to the FATF in September. Government officials expect the country will be able to exit the gray list by January 2023. — L.W.T. Noble

Vaccination for economic frontliners

July 14, 2021 | 12:01 am

vaccine-health-worker — PHILIPPINE STAR/ MICHAEL VARCAS

The National Government, local government units (LGUs), and private sector are joining forces to ensure that all 35.5 million individuals belonging to the A4 priority group or economic frontliners receive their first dose of the coronavirus disease 2019 (COVID-19) vaccine by September 2021.

This month, AstraZeneca will deliver 1,170,000 doses purchased by local companies while the government expects the delivery of 4.5 million Sinovac doses, 1 million Moderna doses, and another 1 million doses of Sputnik V of Gamaleya. Starting August 2021, the government expects 15 to 25 million doses from various vaccine manufacturers to arrive monthly.

These doses include both the government- and private sector-procured doses as well as those coming from the COVAX facility, according to chief implementer of the National Task Force (NTF) against COVID-19 Secretary Carlito G. Galvez, Jr.

PHAPCares Foundation, the corporate social responsibility arm of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), recently co-organized a forum to highlight the importance of vaccination to individual health and the country’s economy.

“It is our hope that more people will be vaccinated because vaccination is one of the ways by which we could protect ourselves and restart our economy,” said Yee Kok Cheong, PHAPCares Foundation president.

A day before the official June 7 launch of vaccination for frontliners, the total number of COVID-19 vaccine doses administered in the country was 16,818. By June 20, more than half a million (534,982) doses had been administered, which translates to 38,213 jabs per day for the two-week period.

“The substantial increase in vaccine doses administered per day is an indication that more Filipino workers are now willing to be inoculated in order to help our country’s economic recovery,” Mr. Galvez noted.

One of the key strategies that the NTF asked from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) was the simplification and expansion of the A4 priority group to include all workers in the government, private, and informal sectors, including those employed in private households.

“We believe that it is both logical and practical to inoculate all individuals who go out of their homes to work. Our economic frontliners are our modern-day heroes who play a key role during this pandemic. They risk their lives daily so that they can continue to provide essential services to their countrymen. They are the people who drive our economy, regardless of the industry they belong to. All of them are vulnerable to COVID-19, and they all need to be inoculated,” Mr. Galvez said.

With the government and the private sector pooling resources in the procurement of COVID-19 vaccines and decentralizing the implementation of vaccine administration, the government expressed confidence in achieving the goal of administering the first dose of the COVID-19 vaccine to all 35.5 million economic frontliners in the country by September.

“All private sector-procured vaccine doses will be turned over to the companies and organizations that purchased these. We are giving them the flexibility to administer the vaccines not just for their employees but for their dependents as well,” Mr. Galvez said.

The more people get vaccinated, the greater chance of protecting our communities from the emergence of variants. As PHAPCares Foundation Executive Director Dr. Rosarita Siasoco concluded during the forum, vaccination also helps reduce COVID-related hospitalizations and deaths, eases the burden on our health systems, and “allows individuals, families, communities and businesses to get back to normal.”

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

PTFC posts nearly P23-million income

July 14, 2021 | 12:01 am

PTFC Redevelopment Corp. recorded a P22.74-million net income for its March-to-May period, the company disclosed to the exchange on Tuesday.

The figure is 8.13% higher than its P21.03-million income from the same period last year. The company’s fiscal year ends in August.

Meanwhile, its third-quarter topline inched up to P48.63 million from P48.29 million year on year.

For the nine-month period ending on May 31, the company’s net income declined by 17.95% to P57.85 million from P70.50 million “due to lower occupancy rate and share in equity in net loss of associates.”

PTFC is engaged in warehousing and office rental services, and according to its website, it also offers self-storage facilities.

The decline in occupancy rate also affected the company’s revenues for the period, which went down by 3.46% to P145.40 million from P150.62 million.

Shares of PTFC were last traded on the stock exchange on July 7 at P43.10 apiece. — Keren Concepcion G. Valmonte

Arts & Culture (07/14/21)

July 14, 2021 | 12:01 am

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Art Inspires series at the Met

THE METROPOLITAN Museum of Manila presents the second series of Art Inspires titled “Heritage, Identity, and Nationhood” on July 17 (10-11 a.m.) via Zoom. It will feature a series of interviews with artists, curators, scholars, and writers, with a focus on the artistic process and experience in reference to an artist’s work or body of works featured in ongoing exhibitions at the museum. The second installment begins with an online screening of the experimental collaborative video Mother Load by Josephine Turalba and Angel Velasco Shaw, followed by a conversation with the artists and Mercedes Tolentino, the curator of the exhibition, “In Full View: The Metropolitan Museum of Manila Collection.” To register, visit https://us02web.zoom.us/meeting/register/tZEkfuCpqTspHdKPsTMAcFMAlaYqQC7x09Xw. For more information, visit https://metmuseum.ph/.

‘Dispersion’ at Art for Space Gallery

ARTISTS Ian Inoy and Pat Frades are showing their works in the exhibit “Dispersion” at the Art for Space Gallery. Having their own voices and own art processes, the artists created artworks that explore their own expressions of individuality and identity. Mr. Inoy merges found objects and junk as his unique way of expressing his identity in his abstract and heavily textured works. Ms. Frades uses clay as her medium. Her style elaborates a combination of colorful mushrooms and coral-like elements. The Art for Space Gallery is at the ground floor of the Alabang Town Center, Muntinlupa City. For more information, visit www.facebook.com/artforspaceph/.

Several exhibits at West Gallery

WEST gallery has several exhibitions currently on view until July 31. One of these is Anton Mallari’s “Sibol,” his new collection of oil portraits that imagine a springing forth of change or new tidings. Mr. Mallari’s traditional portrait style shows a different, almost nostalgic side in this series, with his feminine subjects and botanical motifs awash with bolder floral patterns in different states of bloom and opacity. “Sibol” retains the artist’s noir theme, while also adding softer colors and bolder gold linework, as if to signify a change of air or seasons. Rocelie V. Delfin’s “Kapaligiran” is composed of a series of nine pen and ink images of houses made during quarantine which reflect the isolation she experienced throughout those weeks. Six larger drawings depict idyllic forests occupied by tropical houses remote from one another. Also on view are Lynyrd Paras’ exhibit “Love is Greater than Fear of Death,” and Johanna Helmuth’s “Hereafter.” The gallery is at 48 West Ave., Quezon City. Visits by appointment only, on Mondays to Saturday. To make an appointment, contact the gallery at 3411-0336.

Nat’l dance qualifiers highlight SEA hip-hop

SOUTHEAST Asian hip-hop culture is spotlighted in the national qualifiers of Redefining Elements: A Hip-Hop Pageant, a competition that aims to reformulate the approach to the popular genre in terms of talent, knowledge, technique and engagement in the society. A collaborative platform built by the academic and hip-hop communities, the friendly showdown investigates the diverse effects of the discipline on the youth, both locally and in neighboring Southeast Asian countries. Hosted by Benilde Experimental Dance and the Dance Program of De La Salle-College of Saint Benilde School of Design and Arts, the champion will represent the country in the international competition. Redefining Elements: A Hip-Hop Pageant will go live via Zoom and Facebook on July 24, 5 to 7 p.m. Audience may secure their tickets for P100, which allows them to vote for their favorite dancers and help them win a special prize. Register at https://tinyurl.com/bk3h7bu5. For more information, visit https://www.facebook.com/pg/BenildeExDance.

2-year archaeological project in Northern Cebu

AN ARCHAEOLOGICAL survey and excavation have started in San Remigio and other parts of Northern Cebu as part of the efforts to preserve the Cebuano heritage. The two-year Northern Cebu Archeological Project, a joint initiative of the National Museum of the Philippines (NMP) and Aboitiz Foundation, in collaboration with the University of San Carlos in Cebu aims to establish a protocol and methodology for systematic archaeological studies in Cebu. Aboitiz Foundation, Inc. granted the NMP a P2-million donation in support of its archeological heritage preservation initiatives. Through the project, a template for continuing studies and resources to archive and preserve data of archaeological sites and landscapes will be developed. The primary objective is to develop a geospatial database to record all archeological sites and resources in Cebu through the use of state-of-the-art archeological methods and applications. It also aims to produce a comprehensive catalogue of archeological findings in Cebu especially those belonging to the Metal Age. This catalogue shall be a useful reference for further studies, for the development of a comprehensive preservation program, and for crafting sustainable information dissemination program through local and international publications. The two-year project is scheduled in four phases. Towards the last phase of the project, collected cultural resources will be shown publicly through an exhibition that will piece the stories of those sites in the forthcoming National Museum Central Visayas Regional Museum in Cebu.

Mo_Space holds 2 exhibits

MO_SPACE is opening two exhibits on July 17, which will run until Aug. 15. To be shown at the Main Gallery is Elaine Roberto-Navas’ “Something Of Everything In Everything,” and at Gallery 2, Katrina Bello’s exhibit “Drawing The Farthest Land.” For “Something Of Everything In Everything,” Ms. Roberto-Navas’ start from traces of photographs to paintings on canvas, each image a paean of philosophical musing that reveals the interconnectedness of things. In her latest exhibition, Katrina Bello uses soft graphite gestures on paper, tracing a journey in nature, as well as a trail through a migrant life, with works either gargantuan in scale, vast like a redwood forest or a wide-open sea, or a microcosm that fits in the palm. The two exhibits will be open for public viewing at MO_Space from July 17 to Aug. 15. The gallery is open daily from 10 a.m. to 6 p.m. For inquiries, contact the gallery by telephone at 8403-6620, by mobile at 0917-572-7970.

Spanish LGBTQIA+ short film series

THROUGHOUT July, the Instituto Cervantes Vimeo channel has been hosting a short-film series Te estoy amando locamente (Falling in love with you madly), featuring eight LGBTQIA+ stories by various Spanish filmmakers. Su (2019), a complex story about love and life, directed by Laia Foguet will be streamed on July 14 and 15 (link to the movie: https://vimeo.com/557679177). Meanwhile, the award-winning short film Víctor XX (Ian de la Rosa, 2015), will stream on July 17 and 18. The movie will be accessible through https://vimeo.com/557683845.

Philippines slips 7 spots in global ranking of fintech ecosystems

July 14, 2021 | 12:00 am

Auto Sales

July 14, 2021 | 12:00 am

VEHICLE SALES in June jumped 45% compared with the same month last year as the auto industry continues to grapple with the impact of the pandemic. Read the full story.

How PSEi member stocks performed — July 13, 2021

July 14, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 13, 2021.

Peso climbs vs dollar as remittances grow in May

July 13, 2021 | 9:00 pm

THE PESO rebounded versus the greenback on Tuesday on positive remittances data and expectations for slower inflation in the United States.

The local unit closed at P50 per dollar, gaining 12 centavos from its P50.12 finish on Monday, based on data from the Bankers Association of the Philippines.

The peso opened the session at P50.30 versus dollar, which was already its weakest showing for the day. Meanwhile, its intraday best was at P49.95 versus the greenback.

Dollars exchanged rose to $801.5 million on Tuesday from $664.2 million on Monday.

The peso’s appreciation on Tuesday was backed by data showing continued growth in cash remittances, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Cash remittances rose by 13.1% to $2.382 billion in May from $2.106 billion in the same month last year, the Bangko Sentral ng Pilipinas reported on Tuesday. Inflows for the first five months rose by 6.3% to $12.28 billion from $11.554 billion in the same period of 2020.

The central bank attributed the growth in cash remittances in the five-month period to higher inflows from the US, Malaysia, South Korea, Singapore, and Canada.

Meanwhile, a trader said the peso strengthened amid risk-on sentiment due to expectations of slower US inflation data.

The US consumer price index for June will be reported by the Labor department on Tuesday. It rose by 0.5% in May.

For Wednesday, Mr. Ricafort gave a forecast range of P49.85 to P50.10 per dollar, while the trader expects the local unit to move within the P49.90 to P50.10 band against the greenback. — L.W.T. Noble

PHL stocks drop as Fitch Ratings lowers outlook

July 13, 2021 | 9:00 pm

PSE-stocks — COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

STOCKS closed in the red on Tuesday after global debt watcher Fitch Ratings downgraded its outlook for the country.

The Philippine Stock Exchange index (PSEi) declined by 118.74 points or 1.71% to close at 6,795.13 on Tuesday, while the all shares index went down by 54.26 points or 1.27% to end at 4,215.76.

“The market gave up all its gains from the previous session which is proof that investors are anxious at current price levels,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

“This could have been a ripple effect of Fitch lowering the credit rating of the Philippines, and of fears that other credit rating agencies may do something similar,” COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said in a Viber message.

“A lower credit rating is expected to adversely affect our borrowing cost which is not welcome amid challenging times and a struggling economy,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a Viber message.

Fitch on Monday maintained its investment grade “BBB” credit rating for the Philippines but revised its outlook to “negative” from “stable,” citing the impact of the prolonged coronavirus pandemic.

The “negative” outlook means Fitch may downgrade the Philippines’ credit rating if it reverses reforms or departs from the prudent macroeconomic policy framework that leads to continued higher fiscal deficits. A weaker macroeconomic outlook over the medium term and “diminishing policy credibility” may also lead to a downgrade.

All sectoral indices closed in the red on Tuesday. Property shed 75.11 points or 2.25% to 3,250.84; holding firms lost 139.75 points or 2.01% to 6,811.72; financials went down by 23.15 points or 1.55% to close at 1,464.36; mining and oil shaved off 126.05 points or 1.28% to 9,704.85; industrials declined by 88.61 points or 0.91% to 9,580.39; and services inched down by 0.65 point or 0.04% to finish at 1,615.78.

Value turnover went up to P5.78 billion with 1.89 billion issues traded on Tuesday, from the P4.84 billion with 2.09 billion shares that switched hands the previous day.

Decliners beat advancers, 125 versus 66, while 51 names closed unchanged.

Net foreign selling surged to P1.03 billion on Tuesday from P205.18 million on Monday.

“Sideways movement with a downward bias is expected [on Wednesday] as many investors remain on the sidelines waiting for the market to establish a strong support area,” Philstocks Financial’s Ms. Alviar said. “Traders are also on the lookout for the next quarantine guidelines after July 15.”

COL Financial Group’s Mr. Barredo added that the market could consolidate.

“It swung into a corrective phase six days ago after seeing a high of 7,064 and now moves to test its first support at around 6,770 to 6,750,” he said. “This support would then be followed by a more important demand zone at 6,670.” — Keren Concepcion G. Valmonte

Yellow alerts declared twice on Luzon grid at midday Tuesday

July 13, 2021 | 8:59 pm

THE NATIONAL Grid Corp. of the Philippines (NGCP) placed the Luzon grid on yellow alert Tuesday, citing the unavailability of over 1,500 megawatts (MW) due to four unplanned outages and reduced output at three plants.

When reserves fall below minimum levels, the system operator issues a yellow alert. The grid was under this status between 10 a.m. and 11 a.m., and 12 p.m. and 1:10 p.m.

In a Viber message to reporters early Tuesday, the NGCP said four-fired coal plants with a total capacity of 1,458 MW went on forced outage. These include the 460-MW plant run by Quezon Power Philippines Ltd.; Unit 1 of a plant operated by GNPower Mariveles Energy Center Ltd. Co. which took 316 MW off the grid; Unit 2 of the Sem-Calaca Power Corp. plant which removed 300 MW; and a unit of a coal-fired plant in Pagbilao, Quezon which took out 383 MW.

Meanwhile, it added that three plants were operating on de-rated or reduced capacity during this period, removing 64 MW from the Luzon grid. TeaM Energy Corp.’s Sual Unit 2 accounted for 57 MW, while units 1 and 3 of Southwest Luzon Power Generation Corp. plant were de-rated by 7 MW.

Early in the afternoon, NGCP lifted the grid’s yellow alert status due to “low actual system demand.”

When the grid’s reserves dipped below ideal levels Tuesday, distribution utility Manila Electric Co. (Meralco) said participants in the interruptible load program (ILP) expressed their willingness to voluntarily de-load from the grid.

“As of 1:00 p.m., 83 establishments or 52% from the total participants, with a load of 165.94 MW had committed to participate, if needed,” Meralco Vice-President and Head of Utility Economics Lawrence S. Fernandez told BusinessWorld.

The ILP was not activated, however, he said. “No participant was asked to de-load since the grid was not placed on red alert,” Mr. Fernandez added.

The ILP allows large power users with their own generating facilities to voluntarily not draw power from the grid when supply is tight. The Department of Energy works with distribution utilities and electric cooperatives to implement the program.

Asked to comment whether the yellow alert status could lead to higher power rates next month, Mr. Fernandez said it is still “too early to say.”

“This is the first yellow alert for the July supply month. In comparison, the preceding supply month was affected by three days of red alerts and one day of yellow alert,” he said.

Between May 31 and June 2, the Luzon grid was placed under a series of yellow and red alerts due to forced plant outages, thinning reserves and high temperatures.

Yellow alerts become red alerts if the supply-demand balance worsens, triggering rotating outages or brownouts. — Angelica Y. Yang

DTI’s Lopez calls for reduction of cost to shut down businesses

July 13, 2021 | 8:58 pm

TRADE SECRETARY Ramon M. Lopez said that expenses related to the closure of businesses should be reduced following complaints from companies.

The process for closing businesses should also be overhauled, he told One News Tuesday.

The current process for companies officially closing shop include seeking clearances from local government units and the Bureau of Internal Revenue (BIR), and making payments if they are found to owe them.

“There should be a review. We have to revisit the procedure ng closure. Wala na nga, nagko-close ‘yung business, bankrupt na (It’s hard to impose these measures on businesses that have gone bust),” Mr. Lopez said.

The fees add to the expenses of closing businesses, he added, including payments to employees.

“We’ll have to discuss this with the BIR kasi alam ko doon maraming kailangang i-settle (that is the area that requires many things to be settled).”

Around 10% of surveyed businesses were not operating last month, according to the Department of Trade and Industry (DTI), based on a survey with 33,145 respondents.

The percentage of closed businesses fluctuates as restrictions are loosened or tightened. Around 16% of 24,087 businesses had closed operations in May.

Mr. Lopez had said that owners of companies that have stopped operating during the pandemic often switch to more profitable ventures.

Business name registrations at the DTI increased during the lockdowns. — Jenina P. Ibañez