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DOLE beefs up campaign vs firms violating health protocols; hotline for workers’ complaint launched

The Department of Labor on Employment (DOLE) is beefing up its campaign against business establishments that do not observe health protocols against the coronavirus disease 2019 (COVID-19).

DOLE Undersecretary Benjo Santos M. Benavidez on Friday said the agency will strictly impose penalties on erring companies, citing Republic Act (RA) No. 11058 or the Occupational Safety and Health Standards Act which was implemented in 2018. 

“We will not hesitate in imposing penalties if they insist on not following health protocols,” he said in Filipino during a televised press briefing.

RA No. 11058 requires private sector employers to inform workers about all types of hazards in workplaces. The law also mandates them to provide their workers with the necessary personal protective equipment, including face masks and protective shields. 

According to the Interim Guidelines on Workplace Prevention and Control of COVID-19 which was issued by Trade Secretary Ramon M. Lopez and Labor Secretary Silvestre H. Bello III in mid-2020, workers and employers are required to follow precautionary measures for the containment of the lethal virus, including the use of face masks, physical distancing of at least one meter, recording of body temperature, disinfection and sanitation of routine practices, among others. 

Mr. Benavidez said only 77% of the 72,000 establishments inspected last year were found compliant with occupational health and safety standards, which means that about 23% are “non-compliant.”

He, however, said that the compliance rate later increased to 92% after DOLE extended “technical assistance and advice” to various enterprises, which was mostly done online. 

Meanwhile, a labor group on Friday launched a campaign which aims to monitor the employment status in the country amid the prolonged pandemic. 

Defend Job Philippines said the campaign, dubbed as “Trabahotline,” empowers local and foreign-based Filipino workers to report issues of termination, retrenchment, floating status and other work-related concerns amid the pandemic. 

“The alarming state of jobs, livelihood, security of tenure, unemployment and other labor-related issues in the country have worsened due to the absence of concrete and comprehensive employment program and massive jobs creation scheme of the government for Filipino workers here and abroad,” Christian Lloyd Magsoy, the group’s spokesperson, said in a statement. 

The group assured complainants that their identity and their issues will be kept strictly confidential in order to protect their privacy. — Kyle Aristophere T. Atienza

FDA warns vs. purchase, use of AiDeLai face masks

The Food and Drug and Administration (FDA) has warned the public not to use two face mask brands which did not go through the proper authorization process.

In an advisory released on Friday, FDA Director-General Rolando Enrique D. Domingo said a brandless product referred to as “Disposable Face Mask” and the AiDeLai Face Mask have not been certified by the agency.

Republic Act No. 9711 or the FDA Act of 2009 prohibits the manufacture, importation, exportation, sale, offering for sale, distribution, transfer, non-consumer use, promotion, advertising, or sponsorship of any health product without the agency’s evaluation.

“Since this unnotified medical device product has not gone through evaluation process of the FDA, the agency cannot assure its quality and safety,” Mr. Domingo said.

The FDA official asked business establishments to stop distributing, advertising, or selling the said “violative” face masks until they are given a Product Notification Certificate. “Otherwise regulatory sanctions shall be strictly pursued.”

The FDA called on law enforcement agencies and local government units to “ensure that the products are not sold or made available in the market or within their areas of jurisdiction.” The Bureau of Customs has also been asked to stop the entry of these face masks.

Both products are available online for less than P100 for a box of 50.

The government has required the use of facemasks in public in an effort to control the spread of coronavirus disease 2019 (COVID-19). — Kyle Aristophere T. Atienza

Meralco seeks ERC approval to refund P13.89 billion in over-recoveries

MANILA Electric Co. (Meralco) has asked the Energy Regulatory Commission (ERC) for approval to refund P13.89 billion worth of over-recoveries based on its actual weighted average tariff charges (AWAT) from July 2015 to November 2020, according to a regulatory filing.

In an order dated Jan. 11, the ERC announced the schedule of hearing, which would be held in three separate events on Zoom starting Feb. 16.

Meralco applied for the approval of its final refund scheme last month, based on the calculation of its AWAT compared to the ERC’s approved interim average rate (IAR).

“To fully resolve these issues, (Meralco) proposes to true-up its AWAT as against its approved IAR for the period from July 2015 to November 2020. The difference between the AWAT and IAR will be the amount to be refunded to the customers,” Meralco told the ERC in its application. Meralco proposed to make the refund over a two-year period or until the amount is fully refunded.

The average refund rate was placed at P0.1528 per kilowatt hour (kWh), and would be allocated among the different consumer classes.

Meralco Head of Utility Economics Lawrence S. Fernandez said AWAT was based on Meralco’s distribution charges, which increased during the pandemic.

“During the pandemic, there were reduced operations and closures of business establishments. Residential consumption went up, and non-residential consumption decreased. So the distribution rate of Meralco differed from the interim average rate,” Mr. Fernandez said in a phone interview on Friday.

He also noted that distribution charges during the second half of 2015 went up.

“So the difference, our AWAT or rate of average tariff and the (IAR)…we propose to refund that to our customers,” he said.
Mr. Fernandez added the utility firm was following the IAR, which the ERC approved during the third regulatory period covering July 1, 2011 to June 30, 2015.

“What we’re implementing right now is the interim rate which the ERC approved. They approved a lower rate than what we filed and it was equivalent to an average of P1.381 (per kWh), and it was implemented beginning July 2015,” he said.

Mr. Fernandez said the ERC was supposed to approve the rules for the performance-based regulation of privately-owned distribution utilities from July 2015 onwards but it was not able to do so.

“The reset (of rules) is supposed to approve a rate and incorporate an annual verification mechanism. Because there was no rate….our AWAT filing sort of became like our annual verification. We compared it against the approved IAR and proposed to implement the difference as a refund,” he said.

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., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

DTI looking to include SMEs in gov’t vaccination program

THE DEPARTMENT of Trade and Industry (DTI) is gathering information from small businesses to potentially include them in the government’s vaccination program.

Trade Secretary Ramon M. Lopez said in a briefing on Friday that the DTI is in talks with different groups, including small- and medium-sized enterprises (SMEs), who are looking to buy coronavirus disease 2019 (COVID-19) vaccines.

The government will then include their requirements among those ordered from manufacturers.

“’Yun po ang nililikom ng Department of Trade and Industry para din po dito sa mga SMEs na gustong magkaroon ng allocation at bumili rin po sila. (The DTI is gathering information from SMEs that want an allocation and buy vaccines),” he said.

Mr. Lopez said in a Viber message to reporters that the department is drawing up guidelines, which it will announce next week.

The Philippines is in talks with seven vaccine manufacturers for 148 million COVID-19 vaccine doses to inoculate 50-70 million Filipinos this year.

National Task Force Against COVID-19 chief implementer Carlito G. Galvez said that the government vaccine program will prioritize healthcare workers, uniformed personnel, teachers and school workers, government workers, overseas Filipino workers, and other essential workers.

The government will also prioritize indigent senior citizens, poor communities, students, and people with comorbidities.

Meanwhile, larger firms have started ordering vaccine doses in advance. Outsourcing company Alorica Philippines partnered with the government to secure access to the AstraZeneca vaccine, ordering 80,000 doses for its employees and other Filipinos.

“Alorica employees who…participate will have the vaccine administered by licensed healthcare providers, with costs covered by the Alorica,” the company said in a statement on Friday. — Jenina P. Ibañez

Central bank fully awards one-month bills

THE BANGKO SENTRAL ng Pilipinas (BSP) made a full P100-billion award of its short-term securities on Friday as demand remained strong due to ample liquidity in the market.

The BSP raised P100 billion as planned from the 28-day bills as the offer was over 1.5 times oversubscribed, with bids reaching P167.25 billion. However, this was lower than the P185.85 billion seen last week.

This is the 16th straight auction where the central bank fully awarded the short-term bills since its maiden offering in September.

“The sustained strong interest for the one-month bills shows that liquidity in the financial system remains ample,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

Accepted rates for the papers ranged from 1.6349% to 1.66%, a narrower and lower range compared to the 1.64% to 1.675% margin logged a week ago.

With this, the average rate for the 28-day securities settled at 1.6473%, down by 1.34 basis points from the 1.6607% recorded in the previous auction.

The short-term bills are among the tools used by the central bank to gather excess liquidity and to better guide market interest rates.

The lower yields seen on Friday reflect sustained excess liquidity in the financial system despite the uptick in inflation last month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Headline inflation rose to 3.5% in December from 3.3% in November due to higher food and transport costs. This was fastest in 22 months or since the 3.8% print in February 2019.

Inflation in 2020 averaged at 2.6%, quicker than the 2.5% in 2019 but matching the BSP’s forecast. It also fell within the 2-4% target.

The central bank expects inflation to climb to 3.2% this year due to price increases for oil and food. — L.W.T. Noble

BSP to prioritize financial stability as pandemic continues

THE CENTRAL BANK will prioritize financial stability as the coronavirus pandemic stretches on, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Friday.

“Supervisory priority areas moving forward include monitoring of asset quality, declining profitability, liquidity and capital positions,” Mr. Diokno said in his speech at the virtual induction ceremony of the Financial Executives of the Philippines (FINEX).

The central bank chief said the banking system remains “stable, sound, resilient and inclusive” and will continue being so in the next years despite the risks caused by the pandemic.

The capital adequacy ratio of big banks is currently around the 15-16% level, above the minimum thresholds of 10% and eight percent set by the BSP and the Bank of International Settlements, respectively.

Meanwhile, the industry’s non-performing loan ratio stood at 3.81% at end-November 2020. The BSP said this could have 4.6% at end-2020, still better than the 17.6% seen in 2002 as a consequence of the Asian Financial Crisis.

“At the onset of the pandemic, the banking system had significant capital and liquidity buffers built up due to both regulatory requirements and several years of favorable banking conditions,” Mr. Diokno said.

“The result of our stress tests suggests that banks can continue to lend and prosper through a broad range of adverse scenarios,” he added.

Meanwhile, Mr. Diokno said annualized bank lending rates have been declining, particularly the lower loan limit.

In his presentation at the event, he said P143.8 billion in loans to micro-, small, and medium-sized enterprises were used by banks as alternate reserve compliance as of the reserve week ending Dec. 17. — LWTN

Banks told to submit reports on accounts covered by AMLC freeze order

THE CENTRAL BANK has ordered lenders to submit reports on accounts tied to the Communist Party of the Philippines (CPP) and the New People’s Army (NPA) as well as those linked to Islamic extremist groups following freeze orders issued by the Anti-Money Laundering Council (AMLC).

Circular Letter No. CL-2021-007 signed by Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier requires banks to submit suspicious transaction reports on all previous transactions of the designated persons, organizations, associations or groups of persons, within five days from receipt of the Sanctions Freeze Order.

Covered institutions also need to send a written return to the AMLC detailing information about the account, identities of those within the freeze order as well as the ground for identification for related accounts.

This is in line with the implementing rules and regulations of Republic Act No. 10168 or the Terrorism Financing and Prevention Act (TFPSA) of 2012.

The BSP said institutions that will continue to deal directly or indirectly with property or funds that they know or have reasonable ground to believe are owned or controlled by designated persons under the freeze order will be scrutinized.

Lenders that will make property, funds, or financial services available to designated individuals and groups will likewise face consequences.

“[They] shall be prosecuted to the fullest extent of the law pursuant to the TFPSA,” the circular said.
The AMLC last month issued a freeze order for accounts, funds, and properties that are related, owned, or controlled directly or indirectly by the CPP/NPA.

The watchdog also served a similar order for assets and bank accounts of 16 Islamic extremist groups it had identified as terrorists. These include organizations such as Maute Group, the Islamic State East Asia, Maute ISIS, Grupong ISIS, Grupo ISIS, Khilafah Islamiyah, Khilafah Islamiyah Mindanao, and Ansharul Khilafah.

The freeze order also covers international groups such as the Islamic State in Iraq, Syria, and Southeast Asia, Dawlatul Islamiyah Waliyatul Masrik, Dawlatul Islamiyyah Waliyatul Mashriq, and IS East Asia Division.

The AMLC’s move follows the signing of Republic Act No. 11479 or the Anti-Terrorism Act of 2020 in July, which granted the agency powers to freeze the assets of people and groups designated as terrorists. — L.W.T. Noble

Peso inches higher on record GIR level

THE PESO inched up against the greenback on Friday as the country’s dollar reserves reached a record high last year.

The local unit closed at P48.065 per dollar on Friday, crawling higher from its P48.07 finish on Thursday, data from the Bankers Association of the Philippines showed.

It also gained 2.3 centavos from its P48.088 close on Jan. 8.

The peso opened Friday’s session at P48.05 per dollar. Its weakest showing was at P48.08 while its intraday best was at P48.041 against the greenback.

Dollars traded increased to $512.1 million on Friday from $449.05 million on Thursday.

Data showing record-high gross international reserves (GIR) at end-2020 pushed the peso higher, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

GIR reached a record $109.8 billion at end-December, increasing by 4.8% from the $104.8 billion seen as of November and by 20% from $87.839 billion a year ago, data from the Bangko Sentral ng Pilipinas (BSP) released Friday showed. This exceeded the BSP’s $105-billion projection.

Meanwhile, a trader said in an email that the peso appreciated following a spike in US weekly jobless claims.

Reuters reported that initial claims for state unemployment benefits rose 181,000 to a seasonally adjusted 965,000 for the week ended Jan. 9, making it the highest since late August, based on data released by the US Labor Department. This is also beyond the 795,000 applications projected by a Reuters poll last week. — LWTN with Reuters

MPIC gets $130M loan from Japan bank

Metro Pacific Investments Corporation (MPIC) signed a $130 million (P6.2 billion) loan from a Japanese bank to partially finance its investments this year.

The company said in a disclosure to the stock exchange on Friday that it signed a five-year term loan from Mizuho Bank, Ltd. on Jan. 14.

In May, the company said that it was planning to halve capital expenditures to P80 billion, including spending for discretionary projects in hospitality, logistics and some water projects to conserve cash after profits plummeted during the stricter lockdown.

The Manuel V. Pangilinan-led company reported that it expects its full-year 2020 net income to end at over P10 billion, down from the P15.6 billion in 2019.

MPIC reported core net earnings of P2.4 billion in the third quarter last year, or around 37% lower from 2019, but higher than the second quarter’s P1.9 billion. The firm expects recovery in 2022.

MPIC’s attributable earnings in the first nine months declined 58% to P5.01 billion as economic activity was stifled during the strict lockdown implemented in the second quarter. Nine-month core net income fell 38% to P7.7 billion.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Shares in MPIC closed at P4.45 apiece on Friday, up 2.30% or 10 centavos. — Jenina P. Ibañez

Megawide ready to move on from NAIA rehabilitation project

Megawide Construction Corp. is willing to move on to other projects if the Manila International Airport Authority (MIAA) board chooses not to reconsider its decision to revoke the firm’s original proponent status for the Ninoy Aquino International Airport (NAIA) rehabilitation.

“We are awaiting formal communication from the government so that we know what our next steps will be,” the company said in a statement on Friday.

“We already submitted our Motion for Reconsideration but if it is still not enough to meet government requirements, we will respect their decision and move on to other projects that have equal significance.”

Megawide Chairman and Chief Executive Officer Edgar B. Saavedra in November said that the company has been approached by potential investors and financial institutions for the P109 billion airport rehabilitation project.

MIAA in December revoked the original proponent status of the company and its Indian partner GMR Infrastructure Limited, after which the consortium submitted an appeal for reconsideration.

The company had said that it has complied with all requirements with the government, adding that it has submitted additional documents to prove its financial capability for the project.

San Miguel Corporation has since expressed interest in operating the airport, submitting an unsolicited operations and maintenance proposal denying interest in acquiring a share of revenues. Philippine Airport Ground Support Solutions also expressed interest.

“We truly wish the government and other interested parties success in the transformation of NAIA,” Megawide said. — Jenina P. Ibañez

MerryMart wholesale operations to begin by April

MerryMart Consumer Corp. on Friday said it expects to begin its wholesale operations in April, after it completes a new logistics distribution center in Tarlac.

In a disclosure to the stock exchange, MerryMart said it has started accepting membership applications for the MM Wholesale Club program, which is free for now.

“The MM wholesale operations are slated to commence and fully service its members by April 2021, in time for the full completion of the new modern 11,000-square meter (sq.m.) MM Logistics Distribution Center in CentralHub-Tarlac in North Luzon,” the company said.

At present, MerryMart operates a distribution center in Laguna.

Starting April, MerryMart said the coverage area for bulk deliveries will include Metro Manila, Pangasinan, Tarlac, Zambales, Nueva Ecija, Pampanga, Bataan, Bulacan, Rizal, Cavite, Laguna, Batangas and Quezon.

Members in the covered areas can avail of free delivery for a minimum of P15,000 worth of wholesale purchases.

The distribution hub will serve both MM Wholesale Club members and the retail branches of the MerryMart Group
“The addition of this new 11,000 sq.m. modern MM Logistics Distribution Center will be an important step in supporting and increasing the expansion velocity of MerryMart’s various retail formats,” MerryMart Chairman and Edgar J. Injap Sia II said in a statement.

Membership is open to businesses and individuals. Those who sign up for membership until April 15 will receive a gift.

MerryMart is a wholly-owned subsidiary of Injap Investments Inc., which also owns 35% of DoubleDragon Properties Corp.

Shares in MerryMart closed 5% up to P7.60 each on Friday.

PhilRatings gives A plus rating to Alsons’ commercial papers

Alcantara-led Alsons Consolidated Resources, Inc. (ACR) said it has received a “PRS A+” issuer credit rating with a stable outlook from the Philippine Rating Services Corporation (PhilRatings) for the planned first tranche of its commercial papers program this year.

In a statement, the Alcantara-led listed firm said it is aiming to list and issue the first tranche or P2 billion of the commercial papers program of up to P3 billion within the year, once it secures the approval of the Securities and Exchange Commission.

A PRS A+ credit rating, according to PhilRatings, is an assessment that shows the company’s above-average capacity to meet its financial commitments relative to other firms. A “stable outlook” is assigned when a rating is likely to be maintained or to remain unchanged in the next twelve months.

PhilRatings said ACR received an A+ rating on the back of a positive growth outlook for the Mindanao region, which is expected to increase demand for power. It also cited the company’s “ability to establish joint ventures with strong partners for particular projects.”

“We have once more deemed it favorable to tap the short-term capital markets for our working capital needs as we continue to pursue power projects that we hope will contribute to the economic recovery of our country, by helping create new jobs and stimulate the local economies in our project locations and in the areas where we operate,” ACR Deputy Chief Financial Officer Philip Edward B. Sagun said in a statement.

ACR, a private sector power generator based in Mindanao, has four power facilities with an aggregate capacity of 468 megawatts (MW).

The company’s net profit in the nine months ending September climbed nearly seven times to P360.6 million.

ACR said that its previous CP issuance of up to P2.5 billion in 2018 was also given a similar A+ rating by PhilRatings.

Shares of ACR jumped 3.84 % to finish at P1.35 apiece on Friday. — Angelica Y. Yang

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