Robredo says Marcos issue nonnegotiable

October 8, 2021 | 8:37 pm

By Kyle Aristophere T. Atienza, Reporter

Vice-President Maria Leonor “Leni” G. Robredo on Friday said Francisco “Isko” M. Domagoso’s soft stance on the Marcoses had pushed her to run against the Manila mayor in the elections next year.

“The Marcoses are a nonnegotiable [issue] for me,” she told reporters.

Ms. Robredo said communication lines with other candidates outside the ruling party remained open, but she would no longer pursue unity talks with them.

“I was really exerting a lot of effort to unify many different personalities but there’s a limit,” she added.

Mr. Domagoso earlier said the family of the late dictator Ferdinand E. Marcos should be allowed to redeem themselves, more than three decades after he was ousted by a popular street uprising.

The Manila chief, whose rags-to-riches story has captivated many Filipinos, said he had admired Mr. Marcos at some point.

“So that’s the only reason why she’s running?” Mr. Domagoso asked at a party event, a video of which was uploaded on PTV-4’s Facebook page. He added that the lives of Filipinos need not revolve on the quarrel between the Marcos and Aquino families.

Ms. Robredo said she was worried about splitting the votes with other opposition candidates, but she trusts that voters would know that her tandem with Senator Francis “Kiko” N. Pangilinan is the genuine opposition.

Mr. Pangilinan filed his certificate of candidacy for vice-president on Friday.

“I am not too concerned anymore. You can see that we are the true opposition,” said Ms. Robredo, who had opposed the Duterte administration’s war on drugs and ties with China.

“No tandem is similar to us in the sense that we have been fighting from the start,” she added. — with Bianca Angelica D. Añago

Duterte’s ex-police chief eyes presidency

October 8, 2021 | 8:35 pm

Senator Ronald M. de la Rosa on Friday said he’s running for president next year, which he said was decided by a faction of the ruling PDP-Laban.

“This was a party decision,” he told reporters during the filing of his certificate of candidacy in Pasay City. “This was not my personal decision.”

Mr. de la Rosa’s vice-president is Senator Christopher Lawrence T. Go, who filed his candidacy certificate last week.

He said it was possible to give up his slot for Davao City Mayor and presidential daughter Sara Duterte-Carpio via substitution, but she would have to join the party.

“I don’t know how we will do it if that will happen,” the senator, a former police chief who enforced President Rodrigo R Duterte’s drug war said in mixed English and Filipino.

Ms. Carpio, who filed for reelection as Davao City mayor, is not from PDP-Laban. Substitution is open until Nov. 15, but is exclusive to candidates under the same political party.

Her father last week said she would run for President in tandem with Mr. Go, the president’s former aide. — Alyssa Nicole O. Tan

Several senators seek reelection

October 8, 2021 | 8:33 pm

Several senators on Friday filed for reelection in the elections next year, including Leila M. de Lima, Sherwin T. Gatchalian and Richard J. Gordon.

Ms. de Lima, who is in jail while being tried for drug trafficking, said she would continue her fight against President Rodrigo R. Duterte whom she accused of corruption and mass murders.

“Even as I fight my own battle for my freedom, I cannot but also join the struggle of our people against injustice and oppression,” she said in a statement read by her spokesman, who filed her certificate of candidacy in Pasay City.

Mr. Gatchalian said he would push more laws that would help the country recover from a coronavirus pandemic.

Former Agriculture Secretary Emmanuel F. Piñol also filed his candidacy certificate for senator, as did former Vice-President and broadcast journalist Manuel Leuterio “Noli” de Castro, Jr. and former Senators Antonio F. Trillanes IV and Gregorio B. Honasan II.

Party-list Rep. Rodante D. Marcoleta also joined the senatorial race, as did actor Robinhood Ferdinand C. Padilla.

Chief presidential legal counsel Salvador S. Panelo, Presidential Anti-Corruption Commission Chairman Greco Antonious Beda B. Belgica, former Ifugao Rep. Teodoro B. Baguilat, Jr. and broadcaster Reynante C. Langit also filed their certificates of candidacy for senator.

Meanwhile, Basilan Rep. Mujiv S. Hataman, Manila Rep. Manuel Luis T. Lopez, Camarines Sur Rep. Luis Raymund Villafuerte, Jr. filed for reelection.

Camarines Sur Governor Miguel Luis R. Villafuerte will run for congressman, while lawyer Bel Zamora will seek to replace her father Ronaldo B. Zamora as San Juan’s representative.

More than 200 party-lists have also signed up for next year’s elections as of Friday, the last day of filing.

Substitutions for candidates in the 2022 elections are allowed until Nov. 15. — Alyssa Nicole O. Tan and Russell Louis C. Ku

Central bank sees prices easing in Q4

October 8, 2021 | 8:17 pm

By Luz Wendy T. Noble, Reporter

The Philippine central bank expects consumer price increases to slow in the coming months as meat prices go down.

Meat prices, which contributed to faster inflation in the past months, have eased, Bangko Sentral ng Pilipinas ng Pilipinas (BSP) Governor Benjamin E. Diokno told a televised news briefing on Friday. Meat inflation slowed to 15.6% in September from 22.1% in May.

“It could still slow down because of our programs that allow higher pork imports and lowering the tariff for these products,” he said in Filipino.

Mr. Diokno said food inflation had remained elevated in the past months because of low fish, vegetables, and meat supply caused by typhoons and an African swine fever outbreak.

Inflation eased to 4.8% in September from 4.9% a month earlier, though still above the central bank’s 2-4% target this year.

BSP expects inflation to hit 4.4% this year before easing to 3.3% and 3.2% in 2022 and 2023. Mr. Diokno said they expect improving supply conditions next year to help them hit their inflation target.

Inflation in 2022 may benefit from favorable base effects this year, Nicholas Antonio T. Mapa, a senior economist at ING Bank-NV Manila said in a note.

“Should cost-side remedies to the supply side shocks finally work their way through, we can expect at least some price pressures to fade in the quarters ahead,” he said. “Nonmonetary measures are most effective against cost side inflation as they directly address the issue of supply.”

BSP eyes more gold from small miners

October 8, 2021 | 8:14 pm

Monetary authorities are trying to encourage small-scale miners to sell more gold to the Philippine central bank after through tax exemptions.

“We’re looking at making our rates more attractive to small scale miners,” Joseph Norbert S. David, director of the central bank’s Mint and Refinery Operations Department told an online lecture on Friday. “We’re also looking at minimizing the processing costs.”

Mr. David said gold sellers get 99% in advanced payment. The remaining 1% “retention money” is settled once they complete the assaying of the gold.

The Bangko Sentral ng Pilipinas is considering increasing the advanced payment further, he added. It might also fast-track processing of payments to attract more small miners.

“We’re trying to fast-track the turnaround time,” Mr. David said “We’re looking at possibilities on how to minimize the turnaround time of the payments and final assaying of golds sold to us.”

Much of the gold output comes from Baguio and Davao, he said.

The initiatives are expected to spur small-scale miners to sell gold to the central bank instead of the black market.

“Unfortunately, we have unverified reports and some studies that there are sellers who still go to the black market” Mr. David said. “Improving our rates, our prices and our operations by reducing our cost is one way of addressing this.”

The central bank’s gold holdings stood at $9.148 billion as of end-August, 0.7% higher than in July but 24% lower year on year.

A 2019 law exempted small-scale miners and traders from paying tax for gold sold to the BSP to strengthen the country’s foreign exchange buffers.

The gross international reserves rose by 0.7% to $107.96 billion as of end-August from a month earlier, according to the latest BSP data.

Last year, the central bank said it would shift to active gold trading amid rising prices of gold, which is considered a safe-haven asset during crises. — Luz Wendy T. Noble

Meralco rates to go up this month

October 8, 2021 | 8:10 pm

Manila Electric Co. (Meralco) on Friday said power rates would increase this month on higher transmission charge.

In a statement, the company said the charge for a typical household would go up by P0.0283 to P9.1374 a kilowatt-hour (kWh) from September. Residential customers consuming 200 kWh will experience a P6 increase in their power bills for October.

The transmission charge for residential customers rose by P0.0282 to P0.7085/kWh because of higher ancillary service charges. These charges accounted for 33% of the National Grid Corp. of the Philippines’ total transmission costs.

The so-called distribution rate true-up refund partly tempered the increase in rates, Meralco said.

“The refund rate for residential customers is at P0.2761/kWh and appears in customer bills as a line item called ‘Dist True-Up’,” it said.

Meralco reported a slight cut of P0.0004/kWh to P5.0435 for this month’s generation charge from P5.0439/kWh a month earlier.

“Lower average capacity on outage and average demand in the Luzon grid during September supply month pulled down charges from the wholesale electricity spot market (WESM) by P1.2061/kWh,” it said. The share of WESM to Meralco’s total requirements was higher at 13.4%, it added.

A P0.0527/kWh cut in charges from independent power producers also helped reduce the generation charge.

“The cost of using alternative liquid fuel during the Malampaya gas supply restriction in September was not yet included in the charges and will be billed in subsequent months,” the company said.

Charges from power supply agreements rose by P0.3156 to P4.9417/kWh, mainly because of higher fuel prices and a weaker peso.

Meralco said independent power producers and power supply agreements accounted for 37.1% and 49.5% of its energy requirements. Taxes and other charges increased by P0.0005/kWh.

Meralco’s controlling stakeholder Beacon Electric Asset Holdings, Inc. is partly owned by 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. — Arjay L. Balinbin

SEC gives go-signal to four offerings

October 8, 2021 | 7:02 pm

By Revin Mikhael D. Ochave, Reporter

THE Securities and Exchange Commission (SEC) cleared the offerings of Ayala Land, Inc., Synergy Grid & Development Phils, Inc., Megawide Construction Corp., and The Keepers Holdings, Inc.

The SEC said in a statement on Friday that the offering of listed property developer Ayala Land covers P50 billion worth of fixed-rate, peso-denominated bonds under shelf registration in one or more tranches within three years.

The first tranche will offer up to P2.75 billion fixed-rate bonds due 2031, with an oversubscription option of up to P2.75 billion.

According to the SEC, Ayala Land is expected to earn up to P5.43 billion from the offer if the oversubscription option is fully subscribed. The proceeds will be used to partly refinance the property developer’s short-term loans and for capital expenditures for projects in Batangas, Laguna, and Bulacan.

“The bonds comprising the first tranche will be offered at face value from Oct. 12 to 18, in time for their listing on the Philippine Dealing & Exchange Corp. on Oct. 26, based on the latest timetable submitted to the SEC,” it said.

BDO Capital & Investment Corp. and BPI Capital Corp. are the joint lead underwriters and bookrunners for the offer, while RCBC Capital Corp. is the co-lead underwriter.

Synergy Grid will offer up to 1.05 billion common shares at P15 to P25 apiece, with an overallotment option of up to 101 million common shares that will be offered by shareholders Henry Sy, Jr. and Robert Coyiuto, Jr.

The firm’s shares will be listed and traded on the main board of the Philippine Stock Exchange, Inc. (PSE). Some P25.69 billion is expected to be earned from the offer. It will not receive proceeds from the sale of shares by the selling shareholders.

“Proceeds from the offer will be used for subscription to the non-voting preferred

shares to be issued by the National Grid Corp. of the Philippines, which the latter will use to finance its capital expenditure requirements and related costs and expenses,” the SEC said.

“The follow-on offering is scheduled to run from Oct. 26 to Nov. 2, with the shares to be listed on the PSE on Nov. 10, based on the latest timetable submitted to the SEC,” it added.

The joint global coordinators and joint bookrunners for the transaction are BofA Securities, J.P. Morgan Securities plc, and UBS AG Singapore Branch. BDO Capital will be the lone domestic coordinator, and will be the joint domestic lead underwriter and joint bookrunner together with BPI Capital and PNB Capital and Investment Corp.

The SEC also approved Megawide’s offer consisting of 30 million cumulative, redeemable, non-voting, non-participating, and non-convertible perpetual Series 4 preferred shares at up to P100 apiece, with an oversubscription option of up to 10 million preferred shares.

The offer is expected to earn P3.97 billion assuming that the oversubscription option is fully exercised. It will be used to redeem Megawide’s Series 1 preferred shares.

“Megawide will offer the shares to the public from Oct. 5 to 12, in time for their listing on the PSE on Oct. 22,” the SEC said.

“RCBC Capital will serve as the sole issue manager, lead underwriter, and bookrunner for the offer, while PNB Capital will act as co-lead underwriter,” it added.

Meanwhile, the SEC also approved the offering of The Keepers Holdings, formerly Da Vinci Capital Holdings, Inc., which consists of 3 billion common shares priced at P2 to P2.50 apiece.

The firm expects to net P5.82 billion to P7.29 billion from the offering, which will be allocated for “strategic acquisition opportunities, expansion of product portfolio and distribution channels, investments in distribution and logistics

network, working capital, and for general corporate purposes.”

The SEC said the offering will run from Nov. 8 to 12, adding that the shares will be listed on the PSE on Nov. 22, according to the latest timetable passed to the SEC.

“The company engaged China Bank Capital Corp., PNB Capital, and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners for the offer,” the SEC said.

Manila Water bags new deal in Saudi Arabia

October 8, 2021 | 6:59 pm

THE CONSORTIUM of Manila Water Co., Inc., French water distributor Saur Group, and Saudi Arabian Miahona Co. sealed another seven-year water contract in the Kingdom of Saudi Arabia.

Manila Water said in a stock exchange disclosure on Friday that Saudi Arabia’s state-operated water agency, National Water Co., awarded the management, operations, and maintenance contract to the consortium for the water and environmental treatment services in the eastern cluster of Saudi Arabia.

The cluster covers the cities of Dammam, Al Hofuf, Al Jubail, Al Khobar, Al Qatif and Hafar Al Bati. It has a population of 5.27 million and a supply demand of about 1,800 million liters of water daily.

J.V. Emmanuel A. de Dios, Manila Water president and chief executive officer, said winning the northwest and east clusters places the water firm and its partners in a strong competitive position once the same contracts are converted into long-term concessions.

In December 2020, Manila Water signed a seven-year water contract to manage and implement improvement initiatives for water and wastewater systems in the northwest cluster covering the provinces of Madinah and Tabuk.

“Manila Water will bring 24 years of experience and knowhow in the water space to provide innovative solutions to the water and wastewater requirements in a region whose population and demand are almost comparable to our existing concession area in eastern Metro Manila and Rizal Province,” Mr. de Dios said.

“Our operations beyond the East Zone as well as our international operations in the Asia Pacific region also provide us the leverage to better understand and address the needs of foreign markets in providing solutions through an appropriate public private partnership framework,” he added.

Manila Water holds a 30% interest in the consortium. The awarding of the water contract is included in Saudi Arabia’s target to drive its water infrastructure sector towards privatization.

Locally, the water firm provides water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, and portions of Quezon City and Manila, and Rizal province.

It also has international ventures in countries such as Indonesia, Thailand, and Vietnam.

On Friday, shares of Manila Water at the stock exchange rose 3.48% or 80 centavos to close at P23.80 apiece. — Revin Mikhael D. Ochave

Forticare placed under conservatorship

October 8, 2021 | 6:54 pm

Forticare Health Systems International, Inc. has been placed by the Insurance Commission (IC) under conservatorship as it failed to meet solvency requirement for health management organizations (HMO), the regulator said in a statement on Friday.

These solvency requirements are provided under Circular Letter No. 2016-41 dated July 29, 2016, as later amended by Circular Letter No. 2017-50 dated Oct. 30, 2017.

The commission said Forticare itself had sought to be placed under conservatorship in a letter addressed to the IC on Sept. 9. The HMO cited its inability to cover its net worth deficiency, submit a secretary’s certificate that its stockholders are willing to cover the deficiency, and to submit its 2020 audited financial statements.

In response, the IC issued a cease-and-desist order (CDO) against Forticare on Sept. 10, which immediately prohibited the firm and its agents from transacting HMO business.

“However, Forticare has already ceased marketing operations since May 2021; and its ongoing operations are only limited to processing claims and servicing its existing members’ benefits,” the IC said.

HMOs are regulated and supervised by the IC in accordance with Executive Order No. 192, series of 2015, which transferred that mandate originally performed by the Department of Health. — Luz Wendy T. Noble

Two POGOs flagged as ‘uncooperative’ by AMLC

October 8, 2021 | 6:52 pm

The Anti-Money Laundering Council (AMLC) has identified Philippine offshore gaming operators (POGOs) that have been unresponsive to compliance check procedures of the dirty money watchdog, it said in an advisory.

These are MG Universal Link Ltd. and Inner Strong Ltd.

AMLC Executive Director Mel Georgie B. Racela said the council had cancelled the certificate of registrations of the said POGOs for failure to meet compliance requirements.

“These POGOs never responded to the emails and calls of our Compliance Supervisors. In fact, even after the AMLC has approved the Offsite Compliance Checking Report, for which they were furnished and given a certain period to comment, they never did,” Mr. Racela said in a Viber message.

Mr. Racela said the council is also recommending to the Philippine Amusement and Gaming Corp. the revocation of the license of the two POGOs.

“We afforded them the necessary due process, which is giving them all the opportunity to present their anti-money laundering and counter terrorism financing measures. Failure to cooperate with the AMLC means that they lost their opportunity to present these measures,” Mr. Racela said.

He said their failure to submit to compliance checks means that the “only conclusion is that they do not have these measures in place.”

“If they want to demonstrate cooperation, they will have to wait for the next round of our off-site compliance checking,” he added.

The AMLC warned the public to be cautious in dealing with both businesses.

Republic Act No. 11521 legislated earlier this year included POGOs and their service providers as well as real estate brokers and developers as covered persons.

In June, the Philippines was included in the gray list of the Financial Action Task

Force, which means it will be under increased monitoring for implementing anti-money laundering and counter-terrorism measures.

Government officials expect to address the gaps pointed out by the global dirty money watchdog and exit the gray list by January 2023. — Luz Wendy T. Noble

PAL unveils long-haul flights for peak season

October 8, 2021 | 6:50 pm

Flag carrier Philippine Airlines, Inc. (PAL) on Friday announced its long-haul routes and flight offerings for the peak season.

“These flights will serve the U.S. and Canadian East and West Coast as well as Europe and Hawaii,” PAL said in a statement.

The offerings are for the “upcoming ‘winter’ schedule that begins in late October and encompasses the usual holiday peak season,” it noted.

There will be 10 to 12 weekly flights between Manila and Los Angeles.

PAL will also operate daily flights between Manila and San Francisco, two to three weekly flights between Manila and New York, twice monthly special flights between Manila and London, two to three weekly flights between Manila and Honolulu, three to four weekly flights between Manila and Vancouver, and once weekly flights between Manila and Toronto.

The airline said its special flights between Manila and London are set for Oct. 5 and 26, Nov. 9 and 23, and Dec. 7 and 14.

Two more flights between Manila and London are set for Jan. 4 and 11 next year.

“We are heeding the call for more flights to and from the US Mainland, Canada, and the UK to serve many of our fellow Filipinos who want to rejoin their families in time for the Christmas holidays. As travel restrictions ease in coming months, our nonstop global links can help the Philippines stage a comeback in tourism,” PAL Senior Vice-President and Chief Strategy and Planning Officer Dexter C. Lee said.

The flag carrier has launched services between Manila and Seattle (Washington) as well as Las Vegas (Nevada) and Portland (Oregon) via Honolulu with its interline partner Hawaiian Airlines.

“We are broadening airline partnerships in order to provide our customers a convenient way to fly to these major cities in the Pacific Northwest and Sunbelt regions of the United States, or from these areas to the Philippines. We urge

travelers to enjoy a free overnight stay in Honolulu on the westbound flight to Manila, a package which includes land transfers and free baggage allowance,” PAL Senior Vice-President for Sales and Marketing Oscar A. Reyes said. — Arjay L. Balinbin

JFC’s Smashburger opens Chicago, NY stores

October 8, 2021 | 6:46 pm

Smashburger, a company owned by listed Jollibee Foods Corp. (JFC) via its wholly owned subsidiary Bee Good!, Inc., has opened two new stores in the United States.

The US-based fast-casual hamburger restaurant “recently opened two new stores in Chicago and New York, respectively,” JFC said in an e-mailed statement on Friday.

Smashburger plans to open at least 20 new stores this year, it added.

The Jollibee group aims to become among the top five restaurant companies in the world, according to JFC.

“We are hoping to make Smashburger a part of the Chicago North Mayfair and New York Queens communities and be able to serve not only mouthwatering burgers, but also delicious breakfast for families of all ages,” Smashburger President Carl Bachman said.

“Residents should not have to leave their neighborhood for a quality burger which is why we are so thrilled to be bringing our Smashburger menu variety to North Mayfair and Queens,” he added.

JFC shares closed 2.38% lower at P205 apiece on Friday. — Arjay L. Balinbin