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Third of world’s people get no state aid during pandemic — Oxfam

NEW YORK — More than a third of the world’s population—some 2.7 billion people—has not received government aid during the coronavirus pandemic, Oxfam said on Tuesday, with gaping differences between rich and poor countries.

An analysis of World Bank data conducted by the Nairobi-based charity found that while $9.8 trillion of aid was spent by 36 wealthy nations, 59 low-income countries spent only $42 billion to cope with the economic fallout of the pandemic.

It also found that rich countries have spent at the rate of $695 per person, whereas low-income and emerging countries have spent at a per capita rate of between $28 to as low as $4.

Moreover, the world’s wealthiest nations have only increased aid to developing countries by $5.8 billion, the study showed.

“The coronavirus united the world in fear but has divided it in response,” said Oxfam Executive Director Gabriela Bucher.

“The pandemic sparked a laudable global effort that reached more than a billion more people with social protection support over 2020 but, as of today, more people still have been left behind entirely,” Ms. Bucher added. “That need not be so.”

Prior to the pandemic, up to four billion people lacked social protection—state-funded welfare aid—with the World Bank estimating that only 1.3 billion of them have been reached during the crisis, the researchers said.

The report noted that many developing countries have been able to mobilize non-financial help, like food aid, but that it is often “insufficient” in formal social protection schemes.

In a separate report, the United Nations found that one in 33 people will need humanitarian aid to meet basic needs like food, water, and sanitation in 2021, an increase of 40% from this year. — Matthew Lavietes/Thomson Reuters Foundation

Petron to suspend Bataan refinery operations from January

MANILA – Petron Corp, the Philippines’ only oil refiner, said on Tuesday it would suspend operations at its 180,000-barrel-per-day Bataan refinery beginning next month to minimise losses from weak refining margins.

The announcement comes four months after the Philippine unit of Royal Dutch Shell decided to transform its 110,000-bpd Tabangao facility in Batangas province into an import terminal, saying the refining business was no longer economically viable.
Several oil refiners around the world have cut output or shutter operations as demand had collapsed due to the COVID-19 pandemic.

The suspension will start by the second half of January, Petron told the Philippine Stock Exchange. It did not disclose any timetable for resuming the refinery operations.

Petron, a unit of conglomerate San Miguel Corp, said the refinery will undergo maintenance during the shutdown, which it said will not have an impact on domestic supply.

“There will be no supply disruption as a result of the shutdown given the healthy inventory of the company and the replenishment by the company of its supply through the importation of finished products,” it said.

Just last month, Petron had said it intended to keep its Philippine refinery running but expressed hopes to get government support via tax relief. – Reuters

Business lessons from COVID-19

The COVID-19 pandemic has upended the usual assumptions that we have in the way business is conducted. The resulting lockdown slowed down all of our lives to a halt. As with any other company, Etiqa Philippines has had to adjust and learn from these challenging times in order to adapt to the New Normal. Today, I wish to share with you four of the most important lessons that 2020 has taught us, as an organization:

1. In times of crisis, protect your fellow employees first so they can continue to look after your clients

Our company’s vision is to become a leading insurance provider supported by highly effective people and enabled by technology.  To maintain this high level of effectiveness, our employees must be able to remain healthy, safe, and secure to ensure that we are able to follow through with our commitments to our clients and policyholders.  From a financial point of view, I’ve realized that during a pandemic, it is not only vital for the survival of an organization to maintain adequate levels of cash reserves but most importantly, you must be able to protect the quality and resiliency of your human capital.

2. Adapt swiftly to change without compromising values and fundamentals

Like many of our peers, we implemented our business continuity plans in response to the quarantine measures. This resulted in our pivot towards more contactless transaction processing, company-wide work-from-home arrangements, and the recalibration of our policies.  All processes and procedures are necessary to adapt to the New Normal. Dire circumstances may have forced us to deviate from our business-as-usual practices, but the focus on corporate governance fundamentals and our values of Agility, Teamwork, Integrity, Growth Mindset, Excellence, and Relationship Building remained unchanged.

3. The importance of digital and online:

During these times, we’ve come to appreciate the benefits and advantages of having our products and services available online for our clients and even for our operations.  Platforms such as a seamless fund transfer facility in place that enables us to make and receive payments like PesoNet; the convenience of having a mobile app for our members like our Smile App, which was launched in November of last year; and the ease and convenience that our e-commerce platforms offer to our patrons, such as our online E-ZY Pneumonia Plan (https://www.etiqa.com.ph/pneumonia-plan/) and our Travel Assistance Plan (https://www.etiqa.com.ph/travelinsurance/).  

4. Humanize through gratitude and empathy

Despite what has happened throughout the year, I remain grateful for the blessings we continue to enjoy, the challenges that have strengthened our resolve, and the opportunities we have to apply the learnings of 2020 for years to come. The health, economic, and sociological crises caused by the pandemic have also shown that empathy is the most important human attribute that any company should have.

I hope these four lessons will prove as helpful to you as they are to me. I carry them with me as I continue to help Etiqa Philippines achieve its goal of Humanizing Insurance and its thrust to bring smiles to millions of Filipinos. 

All the best and stay safe.

About Etiqa Philippines:

Etiqa Philippines, formerly AsianLife& General Assurance Corporation, is a Composite Insurance Company that provides a wide range of both Group Life and General Insurance, Group Medical Benefits, Individual Life and Non-Life, and variable products that cater to various protection, savings, and investment needs for all segments in the Philippines. Our products are offered to Corporate and individual clients through both traditional and online channels via our website (https://etiqa.com.ph/), as well as via existing partnerships with local banking networks such as Maybank Philippines for Bancassurance.

A stronger startup landscape for a better normal

Latest batch from IdeaSpace’s Acceleration Program shared timely innovations in their Demo Day

By Adrian Paul B. Conoza, Special Features Writer

The past months have been tough for many businesses as they should adapt to the accelerated disruptions that have taken place. Startups, nevertheless, have shown that they can emerge better and stronger as the new normal eases in.

This is much true of the 12 startups that comprise the eighth cohort of IdeaSpace’s Acceleration Program this year. Last Dec. 11, these startups from various sectors shared their innovations to the public through the program’s virtual Demo Day.

Butch Meily, president of IdeaSpace Foundation, shared that the foundation along with its Acceleration Program creates a community that allows the county’s startup ecosystem to flourish, especially amid the current pandemic.

“Startups are the pillar of the emerging digital economy. With their advanced technology and innovative spirit, they teach us new ways of purchasing, learning, consuming, entertainment, and living,” Mr. Meily said during Demo Day. “They act as a bridge between organizations and industries and the digital economy. This [cohort] is no exception.”

Sharing some inspiration to Cohort 8, as this year’s batch is called, Automart.ph Founder Poch Ceballos told the owners that as heads of their startups they are called to lead the charge in making a better normal.

“Let’s reimagine how much better the world could look post-COVID and let’s take a short pause and recognize that we are at the forefront to making that happen,” Mr. Ceballos said.

This year’s startups, whose founders underwent the rigorous Acceleration Program virtually, offer timely solutions on food security, medicine, education, and jobhunting, among others.

Rethinking food security

Beyond being a health crisis, the pandemic has stressed other issues such as food security. Two startups from Cohort 8 have emerged with solutions that provide local produce in fresh ways.

Farmvocacy, through its inclusive business model, allows Filipino smallholder rice farmers to earn fairly and consumers to purchase rice more conveniently.

As its CEO Vincent Mendoza shared, Farmvocacy’s business model involves smallholder farmers from whom the startup will buy at a higher price compared to prevailing rates. Customers, meanwhile, can subscribe to a farmer-grower sponsorship program where one can make a P1000 cash donation in exchange for a six-month rice subscription “Imagine, your cash donation of 167 pesos per month can actually increase farmers’ income by 400%. This is just an equivalent of one frappuccino,” Mr. Mendoza explained.

Urban Greens, meanwhile, take bring sustainable farming and produce to urban citizens using innovative hydroponic vertical farming systems. “We have the vision of turning underutilized and unmonetized spaces in this concrete jungle [of] the Metro into these lush, green spaces that produce the freshest vegetables Manila has seen,” Ralph Becker, CEO of Urban Greens, explained.

Starting from turning an empty apartment space in Makati into a farm that grows herbs for restaurants, he continued, Urban Green shifted to a consumer-centric market in the past few months as it set up another indoor farm in Bonifacio Global City. The startup plans to scale up its farming lot to meet an observed growing demand for their produce.

Enhancing the new essentials

There are also startups among the cohort that closely meet pressing needs due to the pandemic.

MedHyve, for instance, addresses the analog and often fraud-threatened process in medical procurement. Through its digital platform, MedHyve makes searching, buying, and receiving medical supplies easier while ensuring verified suppliers and a transparent process.

Its chief technology officer, Gabriel Lopez, shared that MedHyve has more than 27,000 products and has transacted with 209 hospitals and clinics. “They really love us because we’ve turned a manual and inefficient process into one that is simple, safe, and easy to extend,” Mr. Lopez shared.

Seeing the heightened need for nonprofits to receive donations efficiently and safely, Giving Hero offers technology solutions that simplify and secure transactions between donors and benefactors. “We believe that non-profits should be recipients of affordable and effective solutions that are readily available today,” Junver Arcayna, CEO of Giving Hero, shared.

The startup innovated Givelink, a platform for receiving donations wherein donors can transfer their donations while nonprofits can receive them safely, removing the need for sending deposit slips. Upon donation through Giving Hero, Givelink also gives real-time notifications received on both ends, plus an organized report for nonprofits.

Leveraging the teaching and learning experiences, Cerebro LMS offers digital teaching resources that are designed to reduce the increased burden teachers carry nowadays as education went most online.

Its CEO, Jonald Justine Itugot, shared that Cerebro bundles a single set of instructional materials, auto-graded assessments, and interactive and gamified learning activities in one platform. “[We] enable educators to… make teaching in the new normal an enjoyable passion and not just a stressful job that could give them thoughts of leaving their careers,” Mr. Itugot added.

Reconfiguring the workplace

Also included in Cohort 8 are startups that are redefining job hunting and recruitment.

Tailored to Philippine outsourcing companies, Worky.ph is a recruitment intelligence portal powered by recommendation engines that enable faster, more personalized talent matching in the local job market. “Sifting through… job platforms can take a lot of time. But with Worky, when we present to you the best possible jobs immediately, you don’t have to do the hunt. We gave it to you,” Jake Go, CEO of Worky.ph, explained.

As the country’s first company culture platform, Workbean is built to help companies attract culturally-aligned digital talent by providing them with the tools to identify, communicate, and promote their culture. Kass Monzon, CEO of Workbean, shared that their platform helps companies use culture as a hiring advantage by identifying culture profiles of companies, communicating them through Workbean’s pages, and targeting them to potential applicants.

“To attract the next generation of digital workers, compensation comes secondary to growth opportunities, work-life integration, and mission-driven work. This is exactly what Workbean wants to amplify for the next generation of digital workers,” Ms. Monzon said.

Designing meaningful experiences

Three startups from the cohort have reimagined the experience of receiving gifts, going outdoors, and watching cartoons among kids.

TADAH solves an apparent problem of material gifts ending up to waste by providing online, indoor, and outdoor experiences as more valuable gifts. “To help alleviate and stop more life and environmental waste, Tadah was built to reach people’s lives and create a better alternative to material gifts,” Yana Nekhoroshkova, COO of TADAH, shared. Some of the experiences the platform offers as gifts include motocross training sessions, online magic show, and surfing lessons.

TakeFive Outdoors, meanwhile, offers customers a new kind of refuge from mundane routines by engaging them to take outdoor adventures. “TakeFive Outdoors is here to encourage everyone to wander off the beaten path safely by joining trips organized by outdoor experts,” Mark Jaeson Mamorbor, CEO of TakeFive Outdoors, said.

While the pandemic hindered outdoor activities, the startup adapted by setting up TakeFive Locals, a market place for locally-made outdoor products, and TakeFive Virtuals, an online course provider on outdoor topics.

Innovating edutainment for kids, Mash&Co. develops content that tackles social issues as well as empowers kids’ emotional intelligence and soft skills. “At Mash & Co., we want to transform the screen time into a moment that matters for family and for kids by proving high-quality content tackling social issues in a very playful manner,” Katrin Ann Orbeta, COO of Mash&Co., said.

Mash&Co.’s interactive content is accessible via its app, and the startup is working on cartoons such as The Wacky Gadgets, centered on creativity and imagination, and Super Sofia, tackling diversity and disability awareness.

Evolving ecosystems

The last two startups to present during Demo Day offers solutions that freshen up existing processes.

Another startup that innovates in the agriculture field, Agro-DigitalPH offers virtual aggregation & end-to-end value chain solutions that are intended to raise the income of farmers.

By providing cooperatives and farmer groups with knowledge, tools, and networks necessary to leverage social organization and establish standards, Agro-Digital PH hopes to enable a “fairer ecosystem where farmer’s works are scaled up to the benefit of more communities”.

“We seek an inclusive value chain where producers, consumers, and even intermediaries have their place in the sun,” Henry James Sison, its founder, said.

Elevating circular living in the country, Humble helps declutter homes and offices by collecting items that are no longer in use, which are then either reused, recycled, or upcycled.

Customers can book Humble for a pick up of their unused items, then Humble decides whether they go to recycling partners, or to B2B and charity partners for reuse. These items can also go to designers who can upcycle these items into new form, like a pahinga bench made up of rolled-up clothing and reclaimed wood, or a home dress, tote bag, and hoodie out of secondhand fabric.

“By decluttering with Humble, you clean up a little bit of your space, your mind, and the planet at the touch of a button without even leaving your room,” Josef Werker, chief executive officer of Humble, said.

 

EDSA walkway project to start in Jan.

The government is planning to build a five-kilometer covered walkway along Epifanio de los Santos Avenue (EDSA). — ADB HANDOUT

THE Asian Development Bank (ADB) has greenlit a $123-million (P5.9-billion) loan to the Philippines to build elevated walkways along the traffic-clogged Epifanio de los Santos Avenue (EDSA).

In a statement on Monday, the ADB said the loan will partly fund the P8.5-billion EDSA Greenways Project, which involves the construction of a five-kilometer covered walkway connected to mass transit stations along EDSA.

The walkways will be linked to four mass transit stations, namely Balintawak, Cubao, Guadalupe, and Taft.

The structures will be five meters wide, and have elevators and monitoring systems to allow easy access for elderly, pregnant women, children, and people with disabilities.

“The EDSA Greenways Project is an integral part of the government’s transport strategy to make Metro Manila a better place to live, work, and visit,” said ADB’s Southeast Asia Transport and Communications Director Hiroaki Yamaguchi.

Another $15-million (P721-million) loan for the project will be granted by the Association of Southeast Asian Nations (ASEAN) Catalytic Green Finance Facility, to be administered by the ADB.

The remaining $41.3 million (P1.99 billion) will come from the government’s budget, the Department of Transportation (DoTr) said in an e-mailed statement to BusinessWorld. The amount will be used for the taxes and right-of-way payments.

The DoTr said it targets to sign the loan agreement with the ADB in the next 2-3 weeks. The project is expected to start by January, and partial operations eyed by December 2021.

“These are critical dates for the DoTr to achieve partial operations by Dec 2021 and full operations of Balintawak and Guadalupe (stations) by third quarter 2022, and Cubao and Taft (portions) by first quarter 2023,” the DoTr statement sent on Monday read.

The proposed EDSA Greenways is among the 100 flagship infrastructure projects that the government hopes to fast-track before the Duterte administration ends its six-year term in mid-2022.

The project hopes to encourage Filipinos to reduce the use of private cars and shift to mass transport instead, said ADB Senior Transport Specialist for Southeast Asia Shuji Kimura in the statement.

“The project, to be built with cutting-edge technology for cantilever overhead walkways, will provide safe, inclusive, and equitable access for commuters while lowering CO2 (carbon dioxide) emissions,” he added.

The civil works contracts for the project are likely to be awarded in the first half of next year, according to the ADB.

“The project will support Metro Manila’s recovery from the coronavirus disease (COVID-19) pandemic. It is expected to create much-needed jobs during the construction period, with P3 billion ($61 million) to be spent on local raw materials,” it added.

Construction of new and improvement on existing walkways will only cause “minimal traffic disruptions,” the ADB said.

Feasibility study on the project is currently ongoing with an unnamed international consulting firm and DoTr.

A 2019 report by the ADB showed Metro Manila is the most congested city in Asia in terms of population, land area and length of road networks.

In EDSA, the average daily traffic rose by six percent to 405,882 vehicles last year compared with the 2018 levels, the ADB said citing data from the government’s Metro Manila Development Authority.

The ADB’s lending program to the Philippines is expected to hit an all-time high of $4.2 billion this year as it helps the government boost its war chest against the coronavirus pandemic, while proceeding with the infrastructure-heavy lending pipeline set last year.

In 2019, the ADB extended $2.6 billion in loans to the Philippines.

For the government’s pandemic response alone, the multilateral bank has granted $3.925 billion in budget support and project loans to the Philippines as of Nov. 23, data from the Finance department showed. — Beatrice M. Laforga with Arjay L. Balinbin

Gov’t hopeful it can hit infrastructure spending target this year

THE government set a P1.17-trillion infrastructure spending target for 2021. — PHILIPPINE STAR / MICHAEL VARCAS

By Beatrice M. Laforga, Reporter

THE National Government is optimistic it will be able to meet its infrastructure spending target this year, as part of the catch-up plan to lift fourth-quarter gross domestic product (GDP), a Department of Budget and Management (DBM) official said.

“We are optimistic that we can hit the full-year target in the remaining two months of 2020. We are expecting infrastructure spending to catch up by yearend to P824.9 billion or 4.5% of GDP compared to the 4.3% forecast in July,” DBM Assistant Secretary and Spokesperson Rolando U. Toledo told BusinessWorld in a Viber message on Friday.

He said the spending boost will come from the Public Works and Transportation departments in the last two months of 2020.

“The DBM is currently actively coordinating with both agencies and other line agencies and prompting them to catch up their spending targets,” Mr. Toledo added.

Infrastructure spending reached P508.5 billion in the 10 months to October, down 18.4% year on year, the latest DBM data showed. In October alone, infrastructure and other capital outlays fell by 30.6% to P57.1 billion.

Mr. Toledo said the 10-month tally only accounted for the National Government’s total spending and does not include the disbursements made by the local government units and subsidy to state-owned firms, “which are also substantial.”

The 10-month capital outlays, which includes the equity given to state-owned firms, and transfers to local governments for their infrastructure projects, were still down 11.8% year on year to P663.2 billion. The tally accounts for 80% of the P825-billion target for the year.

The government raised its infrastructure spending goal by 5% to P825 billion from the reduced target set in July. Despite the increase, this is still 16.6% lower than the original P989-billion pre-pandemic spending goal.

Higher infrastructure spending is part of the government’s program to help the economy recover faster from the recession.

Economic managers expect the economy to contract by up to 9.5% this year, before posting 6.5-7.5% growth next year and 8-10% growth in 2022.

For next year, the target spending for the infrastructure program was increased by four percent to P1.17 trillion.

House OK’s extending validity of 2020 budget

THE HOUSE of Representatives on Monday approved on third and final reading the bill extending the validity of the 2020 national budget until end-2021, in a bid to continue providing much-needed financial aid for sectors hammered by the coronavirus pandemic. 

With 221 affirmative votes, six negatives, and zero abstention, lawmakers passed House Bill No. 6656, which aims to extend the availability of this year’s budget until Dec. 31, 2021 by amending Republic Act No. 11465 or the General Appropriations Act of Fiscal Year 2020.

The measure aims to continue the financing of infrastructure projects under the current fiscal year that have been subjected for procurement to spur the recovery of the Philippine economy next year.

A counterpart measure has also been filed at the Senate.

President Rodrigo R. Duterte certified the approval of the bill as urgent, along with a measure extending the validity of Republic Act. No. 11494 or Bayanihan to Recover as One Act (Bayanihan II) which expires on Dec. 19.

The government’s economic managers earlier said they are looking at proposals to extend the validity of the 2020 spending bill and Bayanihan II to serve as an added stimulus for the economy.

While the Bayanihan II and the 2021 General Appropriations Bill have increased the government’s capacity to respond to the demands of the ongoing crisis, they are “not sufficient for the genuine economic recovery of the country,” House Stimulus Committee Chair Stella Luz A. Quimbo earlier told BusinessWorld in a phone interview.

The Development Budget Coordination Committee in its Dec. 3 meeting lowered its gross domestic product (GDP) estimate to an 8.5 to 9.5 contraction this year, “following the prolonged imposition of community quarantines in various regions in the country.” This is lower than the 4.5-6.6% slump estimated in its July 28 meeting.

The economy remained in a recession after GDP shrank by 11.5% year on year in the third quarter. — KATA

Suspicious transactions related to pandemic on the rise, says AMLC

MORE PEOPLE are falling prey to online fraudsters amid the coronavirus pandemic. — PHILIPPINE STAR / MICHAEL VARCAS

CONTINUOUS cash transactions of businesses that were shuttered during the lockdown and large donations to pandemic relief efforts without supporting documents are just some red-flagged transactions seen during the pandemic, the Anti-Money Laundering Council (AMLC) said.

The AMLC released the COVID-19 (coronavirus disease 2019) Financial Crime Trend Analysis Typologies Brief, which discussed findings from suspicious transaction reports with an estimated value of P2.7 billion in the eight months to August.

“As more suspicious reports covering the periods of the pandemic, however, were analyzed, typologies related to the pandemic have emerged. Case narratives are explicitly citing COVID-19-related schemes and red flags, such as sending/receiving large funds allegedly for pandemic relief efforts, and continuous receipt of cash transactions, despite business closures due to the lockdown,” the AMLC said.

“As (covered persons) become more cognizant of these red flags and unusual transaction behaviors coupled with the adjustments in their transaction monitoring tools, the AMLC expects that suspicious filings related to the pandemic will further increase,” it added. 

The AMLC cited schemes that involved large transactions allegedly from government units as payment for pandemic-related services and products.

One case involved an individual who received at least P2 million in cash deposits, claiming he was a hotel coordinator for the Overseas Workers Welfare Administration but was unable to provide acceptable supporting documents. The AMLC also noted the amount of transactions appeared to be “structured.”

Another case involved a woman who opened a savings account in Iligan City in November 2019. The AMLC said a “blacklisted individual” attempted to deposit P4.5 million into the woman’s account as COVID-19-related donations for Marawi residents. However, the individual was unable to provide supporting documents. Later, the woman’s account was also found to have received a total of P1.4 million, with more than half having been withdrawn via ATM or used to make purchases.

The AMLC also cited suspicious transactions involving businesses that were supposed to have been affected by the lockdown but continued to record financial transactions such as cash deposits and withdrawals.

It noted the case of a businessman involved in the food court and restaurant business, whose bank account received P140 million in cash deposits from January to June 2020 when most restaurants were not allowed to operate due to the lockdown.

The AMLC also noted schemes where fraudsters pretended to be affiliated with government units or use the name of government officials in order to solicit donations from the public.

In one case, an alleged fraudster used the name of a provincial governor to solicit P622,000 for COVID-19 relief efforts. Another case involved individuals who posed as employees of the Department of Public Works and Highways (DPWH) and solicited P150,000 for pandemic relief efforts from a DPWH contractor.

Another scheme employed during the pandemic is the transfer of large deposits allegedly due to business or employment changes that are not consistent with client account information.

In some cases, suspicious transaction reports were also filed for small-value, fast-moving funds sent to multiple accounts that were immediately cashed out with no justification.

The central bank waived convenience fees for online fund transfers earlier this year to encourage cashless transactions and as a relief measure during the pandemic. This appeared to have been exploited by money launderers and perpetrators that found more ease in carrying out their transactions digitally.

“Aside from the breach of internal company policies, there are also clients who use their personal accounts to cater to the needs of their immediate community as payment gateways and retail lending services, which are normally accorded by money service businesses, the AMLC said.

The dirty money watchdog urged financial institutions to ensure proper Know-Your-Customer or Customer Due Diligence policies remain in place and to assess clients’ risk rating periodically amid the rise in suspicious financial transactions.

SEC wins case vs investment agents

THE CORPORATE regulator won a lawsuit against three operators who illegally solicited investments from the public, the Securities Exchange and Commission (SEC) said on Monday.

The SEC cited a Nov. 27 decision by the Quezon City Regional Trial Court (RTC) Branch 90, which found the RJF Construction and Development Corp. officers guilty beyond reasonable doubt for violating the Securities Regulation Code (SRC).

RJF claimed to be a land developer accredited with the Home Development Mutual Fund, popularly known as the Pag-IBIG Fund.

“Winning cases against perpetrators of fraudulent investment schemes affirm the Commission’s commitment to holding them accountable for their actions against our fellow Filipinos,” SEC Chairperson Emilio B. Aquino said in a statement on Monday.

He said that the regulatory body will “remain steadfast” in protecting investors and educating the public about investment scams.

The RTC branch’s recent decision stemmed from a case filed in 2009 by 22 complainants who accused the RJF officers for enticing them to make an investment at a guaranteed interest rate of 5% per month or 60% per year.

The complainants were allegedly given post-dated checks as proof of their investments, and original copies of land titles that served as loan securities.

RJF issued 16 promissory notes, supported by post-dated checks to the 22 complainants.

“The company claimed that the money raised will be used to finance its PAG-IBIG housing project worth about P2.5 billion, or 1,016 housing units for about P200,000 each,” the SEC said in a statement.

The SEC said that, while the company was able to give promised returns to investors, RJF “eventually failed to pay the guaranteed interest and principal,” which prompted investors to seek help from the commission.

The court ruled that the post-dated checks issued by the company assumed the character of “evidences of indebtedness,” which are considered as forms of securities. The court also noted that RJF did not have prior license to sell or deal in securities in SEC records, and is not licensed to offer or issue such to the public.

“It is one thing for a corporation to issue checks to satisfy isolated individual obligations, and another for a corporation to execute an elaborate scheme where it would comport itself to the public as a pseudo-investment house and issue postdated checks instead of stocks or securities to evidence the investments of its clients,” the decision read.

Based on the ruling, the three investment scam operators were fined P2 million.

This year, the SEC has issued over a hundred advisories against 100 groups and individuals for soliciting investments without licenses. — Angelica Y. Yang

ICTSI raises nearly P5B from sale of treasury shares

INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.

LISTED port operator International Container Terminal Services, Inc. (ICTSI) announced on Monday that it had successfully raised P4.7 billion from the sale of its 40 million treasury shares.

In an e-mailed statement, ICTSI said the offering was “oversubscribed” by “high-quality” foreign and local investors.

The company sold 40 million treasury shares at P117 per share representing a 3.9% discount to the closing share price on Nov. 25, ICTSI said.

The offering was the company’s first equity follow-on offering since 2013, according to ICTSI, adding that proceeds would be used to fund “general corporate purposes, including committed capital expenditures and acquisitions.”

Rafael D. Consing Jr., ICTSI senior vice-president and chief financial officer, said: “With $800 million raised in senior debt, hybrid equity, and common shares from both existing and new stakeholders, ICTSI enters 2021 focused on a five-year horizon through the same lens of achieving growth organically and through value-accretive acquisitions.”

ICTSI’s offering comes after the company reduced its capital expenditure plan for 2020 to around $160 million due to the pandemic crisis.

The company reported recently that it had spent $128.6 million as of September this year, mainly for its expansion projects at Manila International Container Terminal in Manila; Contecon Manzanillo S.A. in Manzanillo, Mexico; Contecon Guayaquil S.A. in Guayaquil, Ecuador; Basra Gateway Terminal in Umm Qsar, Iraq; and ICTSI DR Congo in Matadi, Democratic Republic of Congo.

ICTSI saw its third-quarter net income attributable to equity holders grow by 23% to $69.2 million, after it benefitted from cost preservation measures to mitigate the effects of the global health crisis.

ICTSI shares closed 1.21% higher at P125 apiece on Monday. — Arjay L. Balinbin

UPS expects surge in delivery volume despite pandemic crisis

By Arjay L. Balinbin, Senior Reporter

LOGISTICS firm United Parcel Service, Inc. (UPS) anticipates a spike in the delivery of goods in the Philippines in the first two weeks of December amid a pandemic crisis, a company official said.

“In the Philippines, it’s interesting that the holiday season here is kind of top and down. In the last two weeks of December, there are a lot of companies that shut down, so we do see a lot of volumes spike in the early part of the December period, especially that people are trying to get deals from their online marketplaces,” UPS Philippines Managing Director Chris Buono told BusinessWorld in a recent online interview.

He added, “I fully expect that the same is going to happen in the Philippines this year.”

As for the impact of the ongoing pandemic crisis on the logistics industry, Mr. Buono said: “This new normal means operating in a peak-like environment for almost the entire year.”

“We’ve gotten more than 600 flights in the second quarter of 2020 and more than 260 in the third quarter to cater the demand coming out of Asia,” he noted.

He also said the global health crisis has put the spotlight on the importance of logistics and ensuring business continuity.

UPS has noticed that companies have become “more mature,” as they try to continue to grow amid a public health crisis, according to Mr. Buono.

“They’ve learned a lot over the last eight months, and they’ve become much more mature,” he noted.

He also said digital tools being made available to businesses help them identify growth opportunities during the pandemic crisis “by allowing them to look at data, which tell them where the customers are and what sort of behaviors they may have online.”

To stay afloat during the pandemic, shippers should be “flexible” with options to keep the goods moving, “either through transportation modes and transit time, cost, or the size and quantity of shipments,” Mr. Buono explained.

Companies also need to look at solutions that provide cost-effective alternatives in order to maintain a sense of normalcy, he said.

Companies that face supply chain challenges “may also move available inventory away from affected areas, so that their products can be easily accessed for shipping.”

San Miguel infuses more funds in MRT-7 project

SAN MIGUEL Corp. (SMC) has infused P147.81 million more in its infrastructure unit to fund the 23-kilometer Metro Rail Transit Line 7 (MRT-7) project, the firm told the local bourse on Friday.

In a regulatory filing, Ramon S. Ang-led SMC said that the disbursement to San Miguel Holdings Corp. came from the earnings of its Subseries J offer of its Series “2” preferred shares.

As of Nov. 30, the outstanding common and preferred shares of the company’s subseries J offer were logged at 266 million.

MRT-7, a flagship project of the government, will run between North Avenue in Quezon City and San Jose del Monte City, Bulacan. SMC unit SMC Mass Rail Transit 7, Inc. is undertaking the project along with the Department of Transportation.

The Transportation agency earlier said that MRT-7 was on track for partial operations next year as the project hit a 51.84% completion rate in June.

Last month, SMC reported a third-quarter net income of P15 billion, up from its P13.54 billion posting year-on-year as business units started bouncing back. The firm earlier said that it returned to profit after posting a net loss of P4 billion during the first six months of 2020 as the government had relaxed quarantine measures in Metro Manila and key cities.

Separately, the listed conglomerate said in a statement on Monday that it had extended cash assistance of P20 million for the lone fatality and eight injured during the recent accident at the Skyway extension project site in Cupang, Muntinlupa.

It said the amount is on top of the medical and other expenses shouldered by its Skyway project contractor EEI Corp.

“I’ve been deeply affected by the pain this has caused them and have been assessing different ways to assist the victims of this unfortunate accident, apart from what our contractor EEI has been providing them. I hope this amount would be a step towards helping them rebuild their lives. With the right support, we can all overcome adversity and lead full lives,” Mr. Ang said.

EEI is the entity handling the project’s construction. The mishap involved its subcontractor’s crane, which lost its balance and hit a steel girder, causing it to fall on vehicles.

Mr. Ang earlier issued a public apology and promised to provide for the needs of the victims.

On Monday, shares in SMC inched up by 0.87% to finish at P139.20 apiece. — Angelica Y. Yang

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