PHL to submit first report to FATF in September

June 28, 2021 | 12:32 am

By Luz Wendy T. Noble, Reporter

THE PHILIPPINES is hoping it will be able to convince the Financial Action Task Force (FATF) that it is effectively implementing laws against money laundering and counter-terrorism financing in order to avoid possible countermeasures as a result of its inclusion in the latter’s “gray list.”

Anti-Money Laundering Council (AMLC) Executive Director Mel Georgie B. Racela said the Philippines will be submitting its first progress report to the FATF in September. The Philippines is being required to submit progress reports thrice a year.

“The reports will contain the Philippines’ progress in implementing the International Co-operation Review Group (ICRG) action plans, which are to be addressed within the timelines given. These progress reports will be submitted every January, May, and September,” he said in a Viber message on Saturday.

“Adopting compliant laws and regulations is not sufficient. The country would need time to implement them to demonstrate effectiveness [of anti-money laundering and counter-terrorism financing measures],” Mr. Racela added.

The FATF on Friday added the Philippines to a gray list or jurisdictions that will be subjected to increased monitoring to ensure progress is done in implementing stricter anti-money laundering and counter-terrorist financing (AML/CTF) rules.

“When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring,” the Paris-based global “dirty money” watchdog said in a statement.

Mr. Racela said the country is given a timeline to address the points included in the FATF’s action plan, which are confidential, within 12 to 18 months.

“But since we will be reporting three times a year, we can always invoke effective implementation once we are ready,” the AMLC official said.

In particular, the FATF will assess the effectivity of the supervision of new covered persons including real estate developers and operators; use of controls to mitigate risks from casino junkers or travels for prominent players; regulations for money service businesses; and ensure accuracy of beneficial ownership information and its availability to law enforcement agencies, among others.

The country’s handling of counter-terrorism financing cases in terms of identification, investigation, and prosecution will also be monitored. The Philippines will also have to monitor nonprofit sector activities to ensure they operate within framework against terrorism and proliferation financing.

While the Philippines is now under the gray list, the AMLC said it will not yet be subjected to countermeasures from the FATF. “It is only when the country fails to meet the deadlines will the FATF call on countries to impose countermeasures against the Philippines,” AMLC said on Saturday.

The Philippines was blacklisted by the FATF in 2000 due to its failure to address money laundering issues. This led to the passage of Republic Act 9160 or the Anti-Money Laundering Act (AMLA) in 2001, as well as the subsequent amendment of the same law in 2003. The Philippines was removed from the FATF’s blacklist in February 2005.

Sen. Grace S. Poe-Llamanzares, who chairs the Committee on Banks and Financial Intermediaries, said the action plans identified by the FATF do not necessitate further action from Congress.

“What remains are issues centered on implementation which are operational in nature… We trust that the AMLC and other agencies can resolve the remaining deficiencies within the FATF deadlines so that we can soon get out of the gray list,” she said via Viber.

Quirino Rep. and House Committee on Banks and Financial Intermediaries Chairperson Junie E. Cua noted they have already integrated FATF recommendations such as including tax evasion cases above P25 million as a predicate crime and adding real estate brokers and developers as covered persons under Republic Act 11521.

“The latest measure that we need to pass is allowing the BSP to look into bank accounts of bank officials, directors, executives, and employees, and related persons if there’s sufficient ground to believe that fraud is committed, subject to the approval of the Monetary Board. That will contribute to that issue [on beneficial ownership], but it’s not part of the original recommendations,” he said in a phone call.

Mr. Cua authored House Bill 8991, which is still pending at the committee level.

The Philippines’ gray-listing puts more pressure on the government to ramp up its fight against money laundering and counter-terrorist financing.

“It puts pressure on the government to take action on our laws, particularly, to relax the bank secrecy law. Unless proper measures are implemented, the country may become a haven for money launderers,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in a Viber message.

A joint assessment report by the International Monetary Fund and the World Bank in April flagged the country’s strict bank secrecy law.

Meanwhile, industry stakeholders are hopeful that the government will be able to show sufficient progress for the country to be able to exit the gray list.

The Bankers Association of the Philippines said it is optimistic that the Philippines will be taken off the gray list “in due time.”

“I am hopeful that all government agencies involved will deliver expected outputs on the action plans pertaining to them, so that countermeasures will not be imposed on the Philippines. The government should ensure that they meet the deadlines,” Chamber of Thrift Banks Executive Director Suzanne I. Felix said in an e-mail on Sunday.

To recall, Republic Act 11521 which tightened the country’s anti-money laundering law was legislated into law by Jan. 29, only days ahead of the Feb. 1 deadline set by the FATF for the country to show tangible progress that it has imposed tighter AML/CTF.

Meanwhile, Republic Act 11479 or the controversial Anti-Terror Act of 2020 was legislated to boost measures against terrorism and proliferation financing in July last year.

The AMLC in May reported that suspicious transaction reports could hit 1.2 million in 2021 and 1.8 million by 2022. Suspicious transaction reports submitted by covered institutions reached 1.01 million in 2020, higher by 63% from a year earlier.

SEC may require submission of corporate governance reports

June 28, 2021 | 12:31 am

PUBLIC COMPANIES and registered issuers will soon be required to submit corporate governance reports annually to the Securities and Exchange Commission (SEC).

“The SEC will soon require public companies and registered issuers to submit an Annual Corporate Governance Report (ACGR), as part of efforts to develop a strong corporate governance culture in the country,” the commission said in a statement.

Public companies are those with at least P50 million in assets and have 200 or more stockholders owning at least 100 shares each of equity securities.

Meanwhile, registered issuers are those that issue proprietary and/or nonproprietary shares or certificates, equity securities not listed but are offered to the public, and registered debt securities offered to the public, whether or not listed in an exchange.

The corporate regulator drafted an SEC form for ACGR for public companies and registered users. Reporting will be done through a “comply or explain” approach in accordance with SEC Memorandum Circular (MC) No. 24, series of 2019 or the Code of Corporate Governance and SEC MC No. 19, Series of 2020.

The Code of Corporate Governance puts forward governance responsibilities, disclosure and transparency, Corporate Go control and risk management frameworks, cultivating a synergic relationship with shareholders/members, and duties to stakeholders.

Companies are not required to adopt these principles, instead they are given the “flexibility” in creating corporate governance practices. However, they must state in their reports whether they are compliant with the Code’s provisions and identify areas where they are noncompliant and explain why.

Under the draft rules, ACGRs will cover information from January to December of a given year, regardless of registration date.

Submission of an ACGR will be required on or before May 30 for as long as these companies qualify as public companies or registered users. Newly registered firms should also submit their Manual on Corporate Governance with the commission.

Three copies must be submitted to the SEC main office or the nearest extension office, one of which should be notarized and include the original and manual signatures of the company’s officers. Firms will be fined P5,000 and a monthly penalty of P500 for incomplete or incorrect signatories.

Once the draft circular is approved, these firms may submit their reports covering the January-to-December period of 2021 on or before May 30, 2022. Late submissions and noncompliance may lead to a P20,000 penalty fee and a monthly fee worth P2,000.

Publicly listed companies and registered issuers that are already listed on the Philippine Stock Exchange are exempt from the new guidelines as they already required to submit their ACGRs under a previous circular.

Once the new rules take effect, public companies and registered users will no longer need to submit a certificate of compliance with the Manual of Corporate Governance, as well as a certificate of attendance of directors in board meetings. — K.C.G.Valmonte

Philex to extend Padcal mine’s life for two years

June 28, 2021 | 12:07 am

PHILEX MINING Corp. will extend the lifespan of its Padcal mine in Benguet province until 2024 as the listed mining company seeks to optimize the mineral resources in the area, its top official said.

“Padcal will be extending its mine life beyond 2022 for [an] additional two years. This would mean more revenues for the government, more development for our host and neighboring communities, more employment and more benefit for shareholders and all other stakeholders,” Philex President and Chief Executive Officer Eulalio B. Austin, Jr. said during the company’s annual general stockholders’ meeting on June 25.

The company will do “relentless operational and cost improvements to optimize the remaining mineral resources of the Sto. Tomas II ore body,” Mr. Austin said.

“We have completed the technical and financial studies supporting the extension of the life of Padcal for another two years. This was presented to the Philex board and was approved,” he added.

Padcal’s initial mine life was estimated up to 2014 and was originally expected to end by 2022.

According to Philex’s website, the mine has been operating since 1958 and produced copper concentrates, with gold and silver as by-products.

Meanwhile, Mr. Austin also confirmed that the mining company is still looking for financial investors for its Silangan copper and gold project in Surigao del Norte.

“If the $758-million capital investment will be a show-stopper, then a lower capital investment scenario will be recommended to expedite development of the Silangan project,” Mr. Austin said.

To recall, Philex’s Silangan project is one of the big-ticket mining projects seen to help the recovery of the Philippine economy after the issuance of Executive Order (EO) No. 130 that lifted the moratorium on new mineral deals.

The law is expected to generate P21 billion for the government’s coffers, with around 100 mining projects in the pipeline.

In the first quarter, Philex posted an attributable net income of P559.57 million, more than five times higher than the P102.3 million recorded in the same period last year, on the back of higher metal prices.

Realized gold prices for the period rose 11% to $1,781 per ounce while realized copper prices rose 68% to $3.95 per pound.

Philex is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT, Inc.

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

8990 Holdings set to launch new project in Cubao

June 28, 2021 | 12:06 am

8990 Holdings, Inc. plans to launch a 45-storey project by the second half of the year, which will be located along EDSA southbound corner Mayor Ignacio Santos Diaz St.

It cited this year’s first-quarter sales for its optimism to further build residential units. The company already broke ground for Urban Deca Tower Cubao in February last year.

“This is definitely a positive sign that many Filipino families are still looking at a better future and this inspires us to continue building communities that offer quality living at highly affordable prices,” 8990 Holdings Chairman Mariano D. Martinez, Jr. said in a statement on Sunday.

With a sales value of around P10.4 billion, the project will feature 4,961 studio units. These will be priced at about P1.9 million each, with the company offering buyers affordable payment schemes.

The development will also include a 2,859 square-meter commercial space. It will also be located near the MRT-3 Cubao station, making the central business districts of Makati, Bonifacio Global City, and Ortigas center accessible.

Urban Deca’s sales launch is an “indicator” of the company’s optimistic outlook for the year.

8990 Holdings reported an 18% net-income growth to P1.56 billion from P1.32 billion in the January-to-March period, while consolidated revenues improved by 29% to P4.48 billion from P3.47 billion.

Luzon had the biggest revenue contribution at P2.6 billion, followed by Visayas with P958.5 million, and trailed by Mindanao at P878.3 million.

The company also said it saw a three-percent hike in units sold in the first quarter. 8990 Holdings delivered 2,634 new homes during the quarter, with 1,272 units sold in Luzon, 801 units in Visayas, and 561 units sold in Mindanao.

On Friday, shares of 8990 Holdings at the local bourse declined by 2.03% or 15 centavos to close at P7.25 each. — Keren Concepcion G. Valmonte

‘It’ bags for the pandemic and post-pandemic life

June 28, 2021 | 12:06 am

Gucci--jackie-bag — JACKIE 1961 small shoulder bag — GUCCI.COM

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VOGUE did a spread on the slouchy shoulder bag a few days ago. Once called the un-PC term “hobo bag,” it had been a staple on the arms of celebrities like Paris Hilton, Britney Spears, and the Olsen twins during the big bag trend of the early 2000s. The Vogue spread praised its softness and slouchiness, as well as its double-duty utility. However, the spread ignored the basic fact of the bag’s convenience.

This reporter has used two shoulder bags of the similar shape for the pandemic’s “it” activity: grocery shopping. The bag’s shape clings close to the body, making sure that it won’t swing about, while keeping the contents usually safe, tucked as they are under the arm. One can take out hand sanitizer, a wallet, and one’s keys with a slight dip of the hand, for the bags’ openings are usually just at chest level. Finally, they give a certain chic convenience that no handbag can claim: the freedom of using both of your hands — the very same reason why Gabrielle “Coco” Chanel invented the 2.55, though for vastly different circumstances (she needed both hands at parties).

Here are a few bags that predict a post-pandemic silhouette: one that’s pared-down, utilitarian, and keeps those hardworking and hopefully, clean hands free to fix the world.

GUCCI
We’re starting with the bag that started it all: the Gucci Jackie. The Gucci Jackie was named after former American First Lady Jacqueline Kennedy Onassis who started sporting the bag during the more bohemian years of her second marriage, although the bag was invented in 1961. Earlier canvas prototypes had been seen slung on the shoulder of writer Samuel Beckett and actor Peter Sellers. The bag’s androgynous appeal continues today, seen on the shoulder of celebrity Harry Styles.

https://www.gucci.com/us/en/pr/women/handbags/shoulder-bags-for-women/bucket-bags-for-women/jackie-1961-small-shoulder-bag-p-63670910O0G1000

HERMES
On that note, which bag did Jackie actually carry? Prior to the revival of the Jackie, zooming in on Jackie’s photos seem to reveal that her preferred summer bag was the Hermes Trim, which had a similar shape to the Gucci model, but one made with canvas and tan leather, with a similar piston lock. This one was invented in 1958 (a few years before the invention of the Gucci Jackie, then named the G1244 (according to the New York Times).

https://www.hermes.com/us/en/product/trim-31-bag-H080151CK41/

LOUIS VUITTON
Louis Vuitton’s contender for the hobo bag game could be the Neverfull, but we’re a little more inclined to the Graceful PM for its sleeker square appearance. It comes with a magnetic closure and a zipped inside pocket, and ordering from the website allows one to customize the lining to either chic beige or fun pink.

https://eu.louisvuitton.com/eng-e1/products/graceful-pm-monogram-nvprod620350v#M43700

SALVATORE FERRAGAMO
The Ferragamo Gancini bag is the best for discreet chic: the only marker that it’s worth almost $2,000 dollars is the Gancini buckle near the top, but then, part of the pleasure of owning one is knowing that only you can feel and know the value of fondling soft calfskin.

https://www.ferragamo.com/shop/us/en/women/handbags/hobos-shoulder-bags/margot-741200

LONGCHAMP
We’ll always have a soft spot in our heart for this perennial classic, the Longchamp Le Pliage. Made out of easily cleanable nylon, a long-handled model can be tucked under the arm for convenience. — J.L. Garcia

https://www.longchamp.com/us/en/products/shoulder-bag-l-L1899089001.html

Globe says delayed projects reduced due to automation

June 28, 2021 | 12:05 am

AUTOMATION through cloud-based software company Salesforce has helped Globe Telecom, Inc. reduce delayed projects to just over 1% from more than half, a company official said.

“With Salesforce, our teams are working on thousands of opportunities at a time. With the visibility and automation, we have reduced neglected initiatives from 57% to 1.8% and reduced delayed projects from 53% to 1.1%,” Peter Maquera, senior vice-president at Globe’s Enterprise Group, told BusinessWorld in a recent e-mail interview.

Salesforce works with Globe to automate the telco’s business-to-business (B2B) sales. Salesforce said Sales Cloud, Service Cloud, and Marketing Cloud are among the tools that help Globe address its challenges, especially during the pandemic crisis.

Customer complaints, according to Globe, have become easier to handle as a result of automation.

“In B2B for example, we use Salesforce Service Cloud to provide after-sales assurance on our wireline circuits. Customers can reach out to us through multiple channels such as voice, e-mail, or chat. And since the assurance managers and account managers are on the same system, they can work together to be more responsive and insightful to customers and their concerns regardless of where they are working,” Mr. Maquera said.

He noted that Globe’s enterprise customers are most concerned about a prolonged pandemic scenario and how to reinvent their business models.

“We saw and continue to experience a surge in demand for higher speeds in connectivity, home broadband, cloud, cybersecurity, and applications development, particularly for e-commerce,” he said.

“The pandemic accelerated the realization of the importance of being digital to be resilient, to be able to work from anywhere, and to continue to stay in touch and serve your customers,” he added.

With the ongoing public health crisis, business leaders now recognize the level of risk that their companies will be exposed to if they do not have a digital strategy in place, Mr. Maquera.

“Whether B2B or B2C, customers need to accelerate their efforts to become digital and build direct, trusted relationships with their customers. For so many companies in the digital economy, it is a matter of survival,” he said. — Arjay L. Balinbin

Colosseum’s visitors finally stand among the ghosts of lions and gladiators

June 28, 2021 | 12:05 am

ROME — “The beating heart of Rome is not the marble of the Senate, it’s the sand of the Colosseum,” the Roman senator Gracchus said in the 2000 Oscar-winning movie Gladiator. The towering 2,000-year-old stone amphitheater, the biggest in the Roman empire, is Italy’s most popular tourist attraction, drawing 7.6 million visitors in 2019.

But its own beating heart, the underground passages, cages and rooms where prisoners, animals and gladiators waited to pass through trapdoors to enter the arena above their heads — itself long gone — only opened to the paying public on Friday after lengthy renovations.

More than 80 archaeologists, architects and engineers worked on the 15,000 sq meter hypogeum for two years to “bring back to the center of the attention a monument that the whole world loves,” according to Diego della Valle, chairman of Tod’s, the Italian fashion group that funded the work.

The circular balconies, long accessible to tourists, used to accommodate up to 70,000 spectators to watch gladiator fights, executions and animal hunts. The arena could also — before the hypogeum was built — be filled with water to re-enact sea battles. Now a new 160 meter (525 ft) walkway reveals a part of the monument that has not been accessible to visitors. It is the second part of a three-stage process that started eight years ago, with Tod’s pledging 25 million euros ($30 million) to pay for the project — one of a number of restorations of Italian landmarks funded by luxury goods firms.

“It is … important for relevant companies to make themselves available to the country, understanding what they can do for the country,” Mr. Della Valle said. “This is about important pieces for Italy, monuments that are well-known all over the world, and tourism, which is not only entertainment but an important business in Italy which, if cared for properly, has no rival anywhere in the world.”

The first phase of the makeover, including a cleanup of the facade, was unveiled in 2016. The final phase involves renewing the galleries and the lighting system and creating a new visitor center. The project is set to be completed in about three years.

Separately, the government has decided to provide the ancient Roman landmark with new hi-tech flooring, which is expected to be in place by 2023.

Mr. Della Valle, who also helps fund Milan’s La Scala opera house, called on fellow entrepreneurs to “take a monument each, restore it, let’s be quick!” — Reuters

Bringing in Breen

June 28, 2021 | 12:05 am

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New Ford PHL chief looks to build on brand strengths

NOT YET a month in his new role, Ford Philippines Managing Director Michael “Mike” Breen is understandably eager to get to Manila. There’s lots of work to be done, but the pandemic is keeping him away for now. But that’s not stopping him from hitting the ground running.

Twenty-eight years already with the Blue Oval, the executive’s latest stop takes him (eventually, that is) to Manila after five years in the Asia-Pacific region — first China, then Thailand.

Mr. Breen was formally introduced recently to the Philippine motoring media through a Zoom call that had him dialing in from Bangkok. “I’m thrilled. I can’t wait to come to the Philippines,” he said with a smile. “I hear it’s more fun in the Philippines.”

You have to hand it to the guy; Mike did his homework.

Mr. Breen aspires to “take Ford to the next level” while acknowledging the groundwork laid down by his predecessors. It’s not all lip service, either. He actually lists this as among his three top priorities.

Primarily, it’s about leveraging continuity. “I don’t want to mess up the progress already made by the people before me,” he averred — insisting that Ford is already set upon a “great course” evidenced in category strength in small SUVs and 4x4s, and even inroads in corporate social responsibility.

Mr. Breen wants to build upon these, and “take the opportunity in our global footprint to leverage global initiatives to set up Ford’s future in the market” in areas such as vehicle connectivity and electric vehicle (EV) integration into the portfolio. “All markets are moving in this direction,” he said. “We need to continue to ensure that the Philippines is in the consideration set.”

Secondly, although Mr. Breen doesn’t want to telegraph upcoming new products, Ford Philippines will continue to take a serious look at expanding its portfolio of commercial vehicles, which the company said remains a great growth opportunity.

Third on the list is looking after the consumer experience — particularly in the realm of after-sales. “In partnership with dealers, we want to keep customers in the forefront,” he said. “Treat them like family — a foundational core. (This) also relates to the customer shopping experience even before they set foot in a Ford dealership.” Ford Philippines will work toward greater parts availability, while doing more to assure customer safety in its facilities.

Mike Breen is also providing insight into the kind of leadership style he intends to bring to the table. Empowerment and trust are two words that hold special meaning for the executive. “It’s so important to leverage the knowledge and expertise of people around you,” he declared. This entails not only the buy-in of dealer partners and the Ford Philippines team itself but even external partners, media, and, of course, customers past and present.

“We’re not in this alone,” Mr. Breen stressed.

The executive shared that he has substantial experience in the “coordination and execution of brand content and alliance… one of the coolest jobs out there.” More specifically, while he was stationed in Shanghai, Mr. Breen was directly involved in the marketing campaign for the 2018 regional launch of the Ranger Raptor. Among other things, he brought units to New Zealand to shoot promotional video. Of course, he pleasantly acknowledged the warm reception the model has enjoyed in the Philippines.

FORD RANGER RAPTOR X
Speaking of the Raptor, Ford Philippines will continue to bet on the proven affection of truck buyers for the alpha variant of the Ranger. Next month, it will bring in the so-called Ford Ranger Raptor X to “leverage on the immense success of the Ranger Raptor in the market as we continue to boost our 4×4 truck lineup and reach a new group of performance pickup enthusiasts who are into aesthetic modifications,” Mr. Breen said in a release. There’s no time for dilly-dallying either, as the Raptor X will be limited to 200 units in the local market.

It is distinguished from the non-X Raptor in a number of ways. There’s an “over-the-top” body stripes on the bonnet, roof, and tailgate — with a carbon twill texture in matte black “framed with a searing red keyline graphic and side body stripe decal covering side doors and rear quarter panel.” The matte-black finish extends to the grille, door handles, bumper cover, tailgate handle, fender vent, and fog light bezel.

The Raptor X also gets an extended leg sports bar, red front tow hooks, and matte-black wheels fitted with 33-inch BF Goodrich All-Terrain tires.

Inside are Ford Performance touches: body-contoured sport seats with red stitching (which extends throughout the interior), chrome accents on the air-conditioning vents, and hydrographic and “black alley” accents across the dashboard.

Under the hood is the familiar 2.0-liter bi-turbo diesel engine capable of serving up 213ps and 500Nm of output, mated to a 10-speed transmission. Six driving modes are available through Ford’s Terrain Management System (TMS). The Raptor X also receives 2.5-inch Fox Racing shocks “capable of delivering 30% more wheel travel compared to the standard Ranger.”

The Raptor X comes in Arctic White, Conquer Gray, and Performance Blue, and will be priced at P2.038 million.

WILDTRAK 4X4 WITH POWER ROLLER SHUTTER
Meanwhile, the Ranger Wildtrak 4×4 now gets a power roller shutter, “a segment-first original equipment manufactured product from Ford that offers greater security and functionality when transporting cargo.” Mr. Breen added, “With the power roller shutter, our customers can enjoy added protection, convenience and safety with a feature bearing the Ford quality DNA.”

Ford said the product, which boasts an anti-pinch feature to prevent injury or damage, sports a “sleeker and cleaner profile than most after-market offerings.” For enhanced convenience, the power roller shutter can be activated from inside the cabin through a switch on the dashboard, via a button in the tray, or by using the key fob. The Ranger Wildtrak 4×4 with power roller shutter will be initially priced at P1.728 million, and is now available at Ford dealerships nationwide.

At the end of the day, Mike Breen considers it among his more crucial responsibilities to give Filipino consumers a seat at Ford’s global table. “I want to help bring what’s happening in the Philippines into the Ford internal system to ensure that the (country) is top of mind. What’s most important to customers in the Philippines?”

That kind enablement and recognition surely augurs well not only for discriminating Pinoy auto buyers but, more importantly, the future of the Blue Oval here.

Agreement signed to rehabilitate Maguindanao banana plantation

June 28, 2021 | 12:04 am

THE MINDANAO Development Authority (MiNDA) said it has brokered an agreement that will revive part of a closed banana plantation in Maguindanao, with the Development Bank of the Philippines (DBP) and multinational exporter Unifrutti committing to assist local growers.

Secretary Emmanuel F. Piñol, MinDA chairman, announced last week that DBP Director Rogelio V. Garcia and Unifrutti Philippines, Inc. President Alberto F. Bacani met with members of the Paglas family, which owns 500 hectares of the 1,500-hectare farm that used to be operated by La Frutera, Inc.

“After a series of consultations and negotiations with the bank, the owners of the land and the corporation which used to operate the 1,500-hectare farm in Datu Paglas, an agreement was finally reached last week which could lead to the start of the rehabilitation and an expected reopening of the former La Fruttera Banana Plantation,” Mr. Piñol said in a statement on his Facebook page.

Under the agreement, the DBP will finance the rehabilitation and operations of the farm, with the size of the loan to be determined pending a review of Paglas Corp.’s assets.

Unifrutti will extend technical and management assistance as well as a marketing contract for the farm’s produce.

Mr. Bacani said in early 2020 that Unifrutti Philippines continues to explore areas within the Bangsamoro autonomous region, including Maguindanao and Basilan, for partnerships.

With only a third of the original farm to be immediately revived, Mr. Piñol said MinDA has recommended the provision of at least part-time employment for 2,000 displaced workers, “many of whom are former rebel combatants.”

The next focus for MinDA will be working out a similar arrangement for the reopening of another closed farm in Talayan, Maguindanao, he said. — Marifi S. Jara

Rates of T-bills, bonds to move sideways on steady BSP policy

June 28, 2021 | 12:04 am

TREASURY bills and bonds on offer this week could see their rates inch sideways. — BW FILE PHOTO

RATES OF government securities to be auctioned off this week will likely move sideways after the central bank kept borrowing costs at record lows at its latest policy meeting.

The Bureau of the Treasury (BTr) is looking to borrow P15 billion via the Treasury bills (T-bills) on Monday, broken down into P5 billion each from the 91-, 182- and 364-day papers.

On Tuesday, the Treasury will auction off P35 billion in reissued 20-year Treasury bonds (T-bonds), which have a remaining life of 11 years and eight months.

Traders said they expect the rates of the T-bills to move sideways or inch lower by 5 basis points (bps) on Monday from the yields quoted at last week’s auction.

“T-bill yields will just move sideways from the previous auction. Strong demand will persist as the market is still very much awash with liquidity and some players opt to park their funds on the short end of the curve while waiting for firm developments,” the first trader said.

Meanwhile, the first trader expects the reissued 20-year notes’ average rate to fall within 4% to 4.25%, while a second trader gave a narrower forecast range of 4.1%-4.25%.

“The 11-year reissuance is also expected to be met with strong demand as yield hunters are in this segment of the curve at the moment as inflation fears ebb,” the first trader noted.

The second trader said the market will also price in the Bangko Sentral ng Pilipinas’ (BSP) decision to keep benchmark rates steady to support the economy’s recovery.

The BSP kept its key interest rate at a record low for a fifth straight meeting on Thursday, as it vowed to maintain an accommodative stance to boost the economy.

The central bank left the rate on the overnight reverse repurchase facility at 2%, as expected by 14 of 16 analysts in a BusinessWorld poll. Interest rates on the overnight deposit and lending facilities were also kept at 1.5% and 2.5%, respectively.

At that meeting, the central bank raised its inflation outlook for this year to 4% from the previous forecast of 3.9%. This matches the upper end of the BSP’s 2-4% target.

If realized, this would be faster than the 2.6% logged in 2020.

On the other hand, inflation is expected to average 3% for 2022 and 2023.

Headline inflation stood at 4.5% for the third straight month in May. Inflation for the first five months of the year averaged 4.4%.

The second trader added that rates of government securities will also track US Treasury yields ahead of the release of June inflation data on July 6.

The rate of the benchmark 10-year US Treasuries inched up to 1.54% on Friday from 1.5% a week ago.

The BTr last week upsized the volume of T-bills it awarded to P17 billion from the original P15-billion program as total bids reached P59.064 billion or nearly four times the offered amount.

Broken down, it borrowed P5 billion as planned from the 91-day paper at an average rate of 1.078%, lower by 4 bps than the 1.118% logged in the June 14 auction.

The Treasury also made a full P5-billion award of the 182-day papers. The average rate for the tenor stood at 1.348%, down by 2.4 bps from 1.372% previously.

Lastly, the government raised P7 billion via the 364-day securities, higher than the P5-billion plan. The one-year T-bills were quoted at an average rate of 1.563%, declining by 1.4 bps from 1.577% in the previous week’s offering.

Meanwhile, the 20-year T-bonds on offer on Tuesday have not been reissued since its maiden issuance on March 21, 2013. At that auction, the BTr raised P25 billion as bids reached P118.33 billion and the notes fetched a coupon rate of 3.635%.

At the secondary market on Friday, the 91-, 182- and 364-day T-bills were quoted at 1.822%, 1.4173%, and 1.6286%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. Meanwhile, the 20-year paper fetched 4.9578%, while the 10-year T-bond — the closest benchmark tenor to the remaining life of the bond series on offer on Tuesday — was quoted at 3.8962%.

This week’s auctions of government debt are the last ones for June. The BTr wants to borrow P215 billion from the local debt market this month: P75 billion via weekly offers of T-bills and P140 billion from weekly auctions of T-bonds.

Next month, the Treasury is programmed to raise P235 billion from the local market.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — L.W.T. Noble

PayMaya sees more gov’t agencies adopting digital payment technologies

June 28, 2021 | 12:04 am

MORE government agencies are now using digital payment technologies, PayMaya Philippines, Inc. said, citing as examples the Social Security System (SSS), Bureau of Internal Revenue (BIR), Bureau of Customs (BoC), and Home Development Mutual Fund (Pag-IBIG Fund).

“With PayMaya as enabler, more national government agencies and government-owned corporations are heeding the call of providing ease of doing business and efficient delivery of services by adopting digital payment technologies,” PayMaya Philippines Chief Executive Officer and Founder Orlando B. Vea said in a statement issued on June 26.

The company said it was tapped by SSS to allow its members to pay their contributions through a mobile app using credit, debit, prepaid cards as well as e-wallets.

“The agency also uses PayMaya’s platform for disbursement of member benefits and loan proceeds,” it noted.

Top tax-collecting agencies BIR and BoC are using PayMaya’s plug-and-play solutions: PayMaya Checkout, One by PayMaya, and PayMaya QR.

PayMaya has also partnered with Pag-IBIG and other top revenue-generating government agencies such as Land Transportation Office, Department of Foreign Affairs, National Bureau of Investigation, Department of Trade and Industry, Securities and Exchange Commission, Professional Regulation Commission, Philippine Statistics Authority, and Land Registration Authority.

PayMaya is also used by SSS, Department of Agriculture, Department of Social Welfare and Development, Land Transportation Franchising and Regulatory Board, and SB Corp. for their social assistance programs.

Local government units Quezon City, Manila City, Taguig City, Pasig City, Caloocan City, Mandaluyong City, Marikina City, Parañaque City, Valenzuela City, and Antipolo City utilize the company’s payment acceptance and disbursement platforms for their services and programs.

“It is important to enable government agencies and local government units with the ability to accept all kinds of digital payments — whether it’s via credit, debit, or prepaid cards, e-Wallets, and even payments from the unbanked through on-ground agents,” Mr. Vea said. — Arjay L. Balinbin

How to wash your hair like a royal (well, maybe)

June 28, 2021 | 12:04 am

UNCONFIRMED reports from British tabloids say that The Duchess of Cambridge is partial to Bain Oleo Relax Shampoo. Strangely enough, Kerastase Philippines Brand Ambassador and Basement Salon Shangri-La Creative Director Stefan Wilczynski says that the Oleo Relax line (consisting of a mask, oil, and shampoo) is the line perfect for Filipino hair. “Filipino hair is often wavy,” he said during a press conference on June 16. The combination of this hair texture and the humid tropical climate creates frizz. The line, which professes to “smoothen and discipline hair,” according to the Kerastase website, makes it possible to fix this issue (and maybe make you look like a royal).

A super brand day in Lazada for Kerastase brings this beauty secret within reach. (Normally, the cost of the Oleo range is from P1,750 to P3,200, the Genesis range is from P1,750 to P2,750, and the Specifique range is from P1,500 to P2,200.) On June 30, the brand is giving discounts and free gifts on its Lazada store. These include all-day gifts such as free fluffy slides for buying the best-sellers (Genesis Anti hair-fall serum, Night hair vitamin serum, and Oléo relax oil), two free travel-size hair masks and samples for every check-out, and free shipping nationwide. As for timed gifts, one can get a free eco yoga mat if one checks out between midnight to 2 a.m., a free reed diffuser if one checks out between 8 and 10 a.m., a free paddle brush set if one checks out between noon to 2 p.m., and a free tote bag with pins and two travel-size shampoos if one checks out between 6 to 10 p.m.

Back to hair: Mr. Wilczynski gave tips and tricks during the press conference to navigate a pandemic-ridden world. Apparently, the top three hair concerns at the salon right now include dryness, an itchy scalp, and hair fall.

What do these have to do with the pandemic? According to him, they are all stress-related issues. “Everybody is stressed right now,” he said.

For hair fall, he recommends the Genesis Ritual, a line consisting of a serum, a mask, a treatment, a conditioner, shampoos, and a spray, all powered by Aminexil, Edelweiss native cells, and Ginger roots. Dry hair is solved by the Bain Oleo Relax line, while the sensitive scalp can be remedied with products from the Spécifique line, namely the Dermo-calm range. Other products exist within the Spécifique line which seek to address a multitude of issues, from dandruff to oiliness and hair loss.

Mr. Wilczynski offered that when it comes to scalp problems, it’s wise to use different products for different parts of the hair. “If you have a serious scalp problem, you should use the shampoo for the scalp,” he says, and use a different product for the ends. “You can use two different shampoos,” he said. For this concern, one must go from tip to root.

On the subject of shampooing, we’ve been told conflicting stories: do we shampoo every day, or skip a day or two? Mr. Wilczynski gave an answer: “You can shampoo every day.” He follows this up with a warning. “But: first, when you shampoo every day, don’t scrub it like you haven’t washed it for three weeks,” he said. “You can over-wash it, especially when your hair is colored.” He says to just wash the scalp, then work your way gently down, showing a light pulling and squeezing motion during the press conference. “That’s already enough.”

For details and deals on the June 30 sale, visit Kerastase.LazadaPH. — J.L. Garcia