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Meralco, 2 others keen on PSALM’s Paco property

DISTRIBUTION utility Manila Electric Co. (Meralco) and two other firms have expressed their interest in participating in the latest negotiated sale of state-run Power Sector Assets and Liabilities Management Corp.’s (PSALM) property in Paco, Manila.

The asset, which is made up of eight vacant lots covering over 20,900 square meters, is located in Isla de Provisor. The minimum bid is set at P527.09 million.

In a statement on Wednesday, PSALM said that the utility giant, along with an animal feed distributor and an equipment provider, are the “interested parties” that attended the property’s virtual pre-negotiation conference on Aug. 10.

It identified the companies as Simon Agribusiness and Philman Corporate Distribution Corp.

The event sought to brief interested applicants on the sale’s provisions, and requirements in the negotiated sale.

“We are very optimistic that we can privatize this Paco-Manila property very soon. We will continue to try to sell this asset because we need to use the proceeds for payment of PSALM’s financial obligations,” said PSALM President and Chief Executive Officer Irene J. Besido-Garcia.

Those who wish to submit offers for the Paco, Manila property must do so on or before 1:00 p.m. of Aug. 31.

Interested parties can download the negotiation package from PSALM’s website. They may also request for a copy of the forms by sending an e-mail to APD1@psalm.gov.ph or pbacsecretariat@psalm.gov.ph.

According to PSALM, proceeds from all of its asset sales are used to settle maturing obligations and reduce the company’s borrowings.

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

NortonLifeLock to buy Avast for as much as $8.6 billion

NORTONLIFELOCK, Inc. agreed to buy Avast Plc in a deal valued at as much as $8.6 billion, giving the US cybersecurity company access to one of the biggest customer bases in the industry.

Avast stockholders will receive cash and shares that value the deal at $8.1 billion to $8.6 billion, the companies said on Tuesday in a statement. Once the merger is completed, NortonLifeLock Chief Executive Officer Vincent Pilette will remain CEO and the company will have dual headquarters in Tempe, Arizona, and Prague. Avast CEO Ondřej Vlček will become president and join the board, the companies said.

High-profile ransomware attacks on large companies and infrastructure providers have increased demand for software to guard against hackers. That, coupled with more people working remotely, will continue to boost growth of cloud-based security providers, Bloomberg Intelligence Analyst Mandeep Singh has said.

The deal will dramatically expand user numbers for NortonLifeLock, which was known as Symantec Corp. before it sold its enterprise-security business to Broadcom, Inc. in 2019 for $10.7 billion. Prague-based Avast has 435 million “freemium” subscribers. It attracts customers to a free, baseline product and tries to turn them into paying users with more advanced software.

“With this combination, we can strengthen our Cyber Safety platform and make it available to more than 500 million users,” Ms. Pilette said in the statement.

Both CEOs agreed that the surge in expansive and damaging cyberattacks during the pandemic created new demand for digital security tools, and an opportunity for the companies to vie for a larger slice of cybersecurity revenue.

“The bad guys have been really, really busy taking advantage of the situation created by coronavirus disease 2019 (COVID-19),” said Ms. Vlček. “The massive increase in attacks has been against everyone — enterprises, small businesses and consumers. Now is the time to join forces and accelerate the transformation of the entire cybersecurity space.”

Avast’s shares declined this year before it disclosed takeover talks.

Avast shareholders have two choices in the deal — $2.37 in cash and 0.19 in NortonLifeLock shares for each Avast share or $7.61 in cash and 0.03 NortonLifeLock shares for each Avast share. The stock exchange is based on NortonLifeLock’s closing price of $27.20 on July 13, the day before the companies disclosed they were in talks.

Avast’s shares had declined 6.2% this year before the deal talks were first reported last month. The company said at the beginning of the year that plans to transition its customer base to one-year subscriptions would hurt billings growth in the first half, while its adjusted earnings margin would be held back by higher costs to move to the cloud. Avast is due to report its financial results on Wednesday.

NortonLifeLock shares declined about 1% in extended trading after closing at $24.15 in New York. The stock has gained 16% this year. — Bloomberg

IC cracks down on unlicensed firms selling insurance

PHILSTAR

THE Insurance Commission (IC) has ordered Insuro’s Insurance Services and Miler Insurance to halt their operations after they were found to be selling insurance products online without the necessary license.

A document obtained by BusinessWorld showed the IC issued a cease-and-desist order against Insuro’s Insurance Services on Wednesday after it failed to show proof it has an insurance agent’s license, which is required so they can sell insurance products.

Insurance Commissioner Dennis B. Funa said in a Viber message that the regulator is also scheduled to issue a cease-and-desist order for Miler Insurance on Wednesday.

Insuro’s Insurance Services claimed to be a consulting agency and insurance agent on Facebook offering products covering motor car, property, marine, liability, engineering, and personal accidents. 

According to the document, Insuro’s Insurance Services explained in a July 31 letter that it has yet to take the qualifying insurance agents’ examination while its application, through Standard Insurance Co., Inc., has yet to be submitted to the IC.

“The foregoing provision [under the Insurance Code] clearly require the existence of a valid license prior to engaging in the business of and operating as an insurance agent. Without the said license, a person or entity cannot operate and carry out as an insurance agent,” the letter read.

The IC also told the company to stop offering and advertising its business online and remove all its promotional activities posted on its Facebook page.

Meanwhile, Miler Insurance’s Facebook page showed the company is claiming to be an “emerging nonlife insurance company” even though it does not have a license from the IC to operate as a nonlife insurer or as an insurance agent.

The company was found selling insurance products through the social media platform and its own website and online reviews showed there were already individuals transacting with them.

The IC issued notices to these two entities to explain their operations and gave them five days to respond.

Mr. Funa, in a statement, warned consumers to only transact with licensed insurance, pre-need and health maintenance organization (HMO) companies for their protection and peace of mind.

“The public can likewise be assured that your IC will be relentless in taking down unlicensed entities for the security and safety of the insurance, pre-need, and HMO markets,” Mr. Funa said. — B.M. Laforga

Dining In/Out (08/11/21)

The Peninsula Manila offers Hong Kong mooncakes

CELEBRATE the mid-autumn festival by giving and sharing The Peninsula Hotels’ seasonal delicacy, mooncakes, which the hotel is flying in from Hong Kong. A selection of assorted mini mooncakes or mini egg custard mooncakes in a box of eight are available for P4,888 while a petite box of four mini egg custard mooncakes goes for P3,388. Early bird savings of 10% is available until Sept. 14. Orders can be picked up starting Sept. 17. Place an order online at https://bit.ly/PenChatFacebook or call 8887-2888.

The Maya Kitchen offers free Korean cooking class

IT’S ECQ again for Metro Manila (and for most of the Philippines), and as a gift to help everyone, cooking school The Maya Kitchen is inviting everyone to its upcoming Korean Cooking Class for free on Facebook Live (facebook.com/mayakitchen). On Aug. 14, Saturday, from 10 a.m. to noon, learn how to cook authentic Korean dishes: bibimbap, the popular Korean dish of mixed rice topped with meat and vegetables, as well as banchan or Korean side dishes. Viewers can sit back and watch or follow and cook along (ingredients will be posted on Facebook before the class starts) with the chefs from The Maya Kitchen who will interact with viewers via Facebook to answer questions. The Maya Kitchen also has a slew of classes for August and September. On Aug. 28, 10 a.m. to noon, the class is Easy Cooking Ideas for Menu Planning. Get menu-planning guidance and cook along with the chef in this fully interactive Zoom class. All enrollees will also get one of The Maya Kitchen’s best-selling menu-planning cookbooks for free: Mix & Match Meals Book 6: Your 4-Week Menu Guide to Easy Gourmet Cooking. This class is P2,500. On Sept. 4, 10 a.m. to noon, learn how to cook bento box favorites in the Tempura and Karaage Online Cooking Class, via Zoom. This class is also P2,500. For more information on these and other course offerings, log on to www.themayakitchen.com, e-mail contactus@themayakitchen.com, or call 892-1185 or 892-5011 local 108 or +63929 679 6102.

Hilton Manila Celebrates Mid-Autumn Festival with Oriental Treasures

HILTON Manila ushers in the coming Mid-Autumn Festival with an array of mooncakes from Hua Yuan Brasserie Chinoise. To top it off as a festive centerpiece, this year’s mooncake box design pays homage to the symbols of Chinese heritage. Embellished in imperial red, the box features a pair of red-crowned cranes amongst sacred clouds, the golden full moon illuminating the scene. The ornate die-cut window pane, inspired by the moon windows of Oriental architecture, offers a peek to the matte-finishing gold and red receptacles housing the individual mooncakes. Hua Yuan’s signature mooncakes come in three varieties: Red Bean Paste with Single Egg Yolk, White Lotus with Single Egg Yolk, and Mixed Nuts. A box of four moon cakes is priced at P2,488 net while a box of two is P1,488 net. Enjoy a 15% early bird discount with pre-orders from now until Aug. 31. Box customization and company logo inclusion is available upon request with minimum orders applicable. For more information, call 7239-7788 or 0917-826-6442, or send a message on Facebook through m.me/hiltonmanila.

A pandemic coffee business with an advocacy for strays

TAEKWONDO coach Kim Abejero and business consultant and digital marketing strategist Cham Sales started talking about establishing a pandemic business while on dates, during which feeding strays became one of their routines. Thus was born Coffee X Konvos: a business built to support stray animals through every cup. They partnered with PAWSsion Project, a non-profit organization that helps rehome, rehabilitate, and support stray animals. Inspired by the slow coffee bar vibes in Thailand and Japan, they support the local scene by sourcing Sagada and Benguet coffee beans, which are prepared through pour-over drip process. Last May, Alabang Town Center gave them a big break by including them in their homegrown circle. They have been a part of Mckinley’s Venice Grand Plaza and Binondo’s Lucky Chinatown Bazaar to date. Southies since then followed them on every bazaar because of the unique coffee experience and the chance to make a difference through every cup of coffee. They also do home brewing in their residence at Imus, Cavite. Check out their Facebook (Facebook.com/coffeexkonvos) and Instagram (Instagram.com/coffeexkonvos) account for shop details and furry friend encounters.

EDSA Shangri-La’s Summer Palace mooncakes

USHER the auspicious Mid-Autumn Festival with EDSA Shangri-La, Manila’s Over the Moon Mooncake Collection 2021 by the Summer Palace. A variety of signature baked mooncakes are now available until Sept. 21, for pick-up at the hotel and for delivery. Choose from six flavors: white lotus mooncake featuring the deluxe lotus paste filling with salted egg wrapped in a thin golden-brown crust, imprinted with Chinese characters for harmony and longevity; red bean; mixed nuts; durian; green tea; and black sesame. The mooncakes come in a premium gift box, with price starting at P1,688+ per box. They are also available per piece at P388+ for mini mooncakes and P588+ for a single traditional mooncake. Enjoy savings of up to 25% on bulk orders. For orders of 50 boxes and more, get complimentary delivery to one location within Ortigas, Mandaluyong, Greenhills, The Fort, and Makati area. For inquiries and orders, call 8633-8888 or e-mail summerpalace.esl@shangri-la.com. Orders can also be placed directly through https://edsashangrilafoodhub.beepit.com.

Chowking Chunky Asado for merienda

CHINESE fast-food chain Chowking now offers the new and improved Chowking Chunky Asado Siopao to satisfy 3:30 p.m. merienda time cravings. Chowking’s bestselling siopao now has a meatier, chunkier, and saucier filling — no need for extra sauce. The Chowking Chunky Asado Siopao cost P39 each, and is also available in three-piece takeout boxes for P115. Available for delivery via Chowking’s hotline #9-88-88, ChowkingDelivery.com, or Grab or foodpanda; or pass by a Chowking store for drive-through or take out.

Baker J is open for takeout and delivery

CRIMSON Hotel Filinvest City’s Baker J is open for takeout and delivery. Enjoy the French patisserie experience wherever you are via the bakery’s sourdough bread and croissants, classic pancakes and waffles, savory tartines and eggs benedict, to its signature hot and cold coffee blends and summer coolers. Among its best-sellers are: the Viennoiserie Box with customers able to mix and match pastries including croissant, pain au chocolat, and pain au raisin; the bakery’s signature coffee blend, Rosé Latte; and, Complet, a hearty breakfast that can be enjoyed any time of the day. Baker J is open for takeout and delivery from 6 am. to 9 p.m. It is located at the Ground Lobby of Crimson Hotel Filinvest City, Manila.

Delishvery delivers dishes to doorsteps

AS THE country goes under another round of restrictive Enhanced Community Quarantine (ECQ) lockdowns in major towns and cities including the NCR, Resorts World Manila (RWM) steps up with Delishvery, RWM’s in-house food delivery service which serves some of RWM’s bestselling dishes to customers’ homes, even in areas under ECQ. Operating daily from 9 a.m. to 6 p.m., RWM Signature restaurants, Casa Buenas, Happy 9, Victoria Harbour Cafe, Kimchi Mojou, Silk Road, and Garden Wing Cafe, are serving selected signature a la carte dishes and food bundles via Delishvery. Self-heating and portable Hotbox packages are also available, with a starting rate of P1,300. Selected RWM outlets also offer a special Rice Toppings menu for bulk orders. You can place orders by calling 7908-8885 or texting 0917-878-8856. To ensure cleanliness, safety, and efficiency in its delivery system, signature RWM food items are only available via Delishvery. All rates are inclusive of VAT and subject to a delivery charge. Orders may be settled via MasterCard and VISA debit cards, major credit cards, GCash, and COD. Likewise, dining outlets of RWM-based hotels like Marriott Hotel Manila, Sheraton Manila Hotel, Hilton Manila, Hotel Okura Manila, Belmont Hotel Manila, and Savoy Hotel Manila also offer pick-up and delivery services. To order, contact the individual hotels directly. To check all the menus, visit www.rwmanila.com.

Pandamart, foodpanda offer promos

With more community quarantine restrictions back in place, going out to purchase groceries and other essentials can be a hassle. Skip the lines and shop at home with deals and free delivery promos from Pandamart and foodpanda shops. Tap on the app, and choose from more than 3,000 items that can be delivered to your doorstep safely and conveniently. Pandamart promos add up to big savings, with daily deals of up to 70% off. August Deals include 10% off on Heat and Nom items, up to 30% off on breakfast foods, and up to 30% off on fresh produce. There is no shopper fee and the promo code PMARTFREEDEL gets free delivery until Aug. 31 for a minimum order of P499. Pandamart is available until midnight at Alabang, Angeles City, Antipolo, Baguio, Caloocan, Cebu City, Davao City, Las Pinas, Lipa, Mandaue City, Makati, Manila, Marikina, Paranaque, Pasay, Pasig, Quezon City, San Juan, and Taguig City. The foodpanda shops section offers food and home essentials in as fast as 20 minutes, 24/7, nationwide. There is no shopper fee, and customers can use special foodpanda Shops promo codes for discounts and deals. The SHOPSCASHLESS code gets P50 off on online payments at all shops. SHOPSGROCERIES gets 10% off on groceries, while FPSHOPSFINDS gets 10% off from selected shops. For non-grocery items, tap in MORESHOPS to get 10% off from purchases. For more information about the foodpanda shops and Pandamart services, visit foodpanda Facebook and Instagram pages.

New Eden variant: Melt Sarap

EDEN Melt Sarap is a variant of Eden Cheese that’s highly meltable and can add more melt-in-your-mouth goodness to dishes like baked macaroni, cheesy lasagna, and grilled cheese sandwich. The best way to enjoy it is by baking the cheesy dishes at 220-230 °C or 430-450°F in a conventional oven. To promote the new variant, Eden has launched the Melt Sarap Namnamin Challenge, with a chance to win an Eden Melt Sarap meal kit and P5,000 worth of Sodexco GCs. The challenge is for cooks to show how they prepare, cook, and enjoy cheesy dishes with the help of a Melt Sarap Namnamin filter. The best dishes will win an Eden Melt Sarap Meal Kits and a feature on the Eden FB page. Eden will also be tracking the number of people visiting its FB page and provide guests with freebies and discounts on Eden Melt Sarap. The more likes, shares, and comments guests leave on the Eden FB page, the bigger the prizes and discounts that are unlocked. Eden Melt Sarap is now available at leading stores nationwide and in all major e-commerce platforms (i.e GoRobinsons, Shopee, Lazada, Metromart, etc.).

GrabFood delivers for as low as P8 in Davao

Davaoeños can now enjoying more affordable deliveries of their favorite dishes on GrabFood with a delivery fee of as low as P8. Enjoy crowd favorites like Jollibee, Starbucks, and S&R Pizza or make new food discoveries like Penong’s, We Got Cha, or Ruby’s. Plus, users get reward points for every food delivery which can be collected and exchanged for discounts through GrabRewards. To learn more about GrabFood, visit www.grab.com/ph.

Household spending on non-essentials grows in the second quarter

Household spending on non-essentials grows in the second quarter

How PSEi member stocks performed — August 11, 2021

Here’s a quick glance at how PSEi stocks fared on Wednesday, August 11, 2021.

Peso inches up on stock market’s gains, BSP bets

BW FILE PHOTO

THE PESO inched up versus the dollar on Wednesday on gains at the stock market and as investors expect the central bank to keep its supportive monetary policy stance.

The local unit closed at P50.38 per dollar yesterday, gaining 1.5 centavos from its P50.395 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session at P50.40 against the dollar. Its weakest showing was at P50.49, while its intraday best was at P50.37 versus the greenback.

Dollars traded slipped to $896.6 million on Wednesday from $898.6 million on Tuesday.

The peso appreciated to track gains at the Philippine Stock Exchange (PSE), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The PSE index increased by 43.63% or 0.66% to close at 6,666.86 on Wednesday. The broader all shares index also gained 15.63 points or 0.38% to end at 4,111.61.

Meanwhile, a trader said the peso inched higher on expectations that the Bangko Sentral ng Pilipinas (BSP) will keep interest rates unchanged at its meeting on Thursday.

A BusinessWorld poll last week showed 18 analysts expect the central bank to keep borrowing costs at record lows as the economic outlook remains uncertain due to the Delta variant of the coronavirus.

BSP Governor Benjamin E. Diokno on Monday said the central bank is unlikely to hike rates anytime soon and will keep its policy settings accommodative for “as long as necessary” to ensure the sustainability of the economy’s recovery.

For today, Mr. Ricafort expects the local unit to move within the P50.35 to P50.45 band versus the dollar, while the trader gave a forecast range of P50.30 to P50.50. — LWTN

Shares climb on Q2 GDP data, earnings reports

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

PHILIPPINE shares closed higher on Wednesday as investors priced in the country’s faster-than-expected gross domestic product (GDP) growth in the second quarter.

The Philippine Stock Exchange index (PSEi) gained 43.63 points or 0.65% to close at 6,666.86 on Wednesday, while the all shares index improved by 15.63 points or 0.38% to end at 4,111.61.

“GDP growth of 12% is a sentiment lifter apparently,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message. “That plus the upbeat first half corporate earnings show the Philippine economy is capable of bouncing back, helped by vaccination and policy stimulus.”

“Even foreign sentiment has improved with the return of intermittent foreign buying,” she added.

“Many are also assessing whether the country [can] sustain this level of expansion in the coming quarters once base effects fade,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message.

The economy grew by 11.8% year on year in the second quarter, marking the end of a 15-month recession caused by the pandemic, based on data released by the Philippine Statistics Authority on Tuesday. It beat the 10.6% median GDP growth estimate of 20 analysts in a BusinessWorld poll last week.

The double-digit GDP growth was mainly due to base effects from the record 17% contraction in the April to June period last year when the country was under its strictest and longest lockdown.

However, the economy shrank by a seasonally adjusted 1.3% from the first quarter, reflecting the impact of the reimposed lockdown in March to April when cases surged. The economy expanded by 3.7% in the first half of the year, still below the government’s 6-7% target for 2021.

Metro Manila is under a two-week lockdown until Aug. 20 to curb a fresh surge in infections.

“Philippine [shares] were traded up as investor bought up in anticipation of names that may be affected by the release of the quarterly MSCI rebalancing results later,” Mr. Limlingan added.

Majority of sectoral indices posted gains on Wednesday except for services, which declined by 17.57 points or 1.07% to 1,617.03, and mining and oil, which dropped by 102.48 points or 1.05% to finish at 9,639.87.

Meanwhile, property climbed 83.08 points or 2.7% to 3,153.93; holding firms rose by 30.76 points or 0.46% to 6,671.91; financials went up by 6.63 points or 0.46% to close at 1,437.91; and industrials gained 16.11 points or 0.17% to 9,381.25.

Value turnover increased to P6.83 billion with 1.82 billion issues traded on Wednesday, from the P6.31 billion with 1.56 billion issues logged the previous day.

Decliners narrowly beat advancers, 84 against 81, while 56 names closed unchanged.

Foreigners turned buyers anew with P513.87 million in net purchases on Wednesday, a reversal of the P26.7 million in net outflows logged on Tuesday. — K.C.G. Valmonte

Trade dep’t says 2 pharma firms in final talks to make vaccines

PHILIPPINE STAR/ MICHAEL VARCAS

PHARMACEUTICAL FIRM Lloyd Laboratories, Inc. is in advanced talks to commence vaccine production in the Philippines, Trade Secretary Ramon M. Lopez said.

Lloyd Laboratories is one of two companies seeking to set up fill-and-finish operations, in which active ingredients are imported for local packaging, as it already has facilities that can handle such an operation.

“Bringing in equipment is their next step,” Mr. Lopez said at a Kapihan sa Manila Bay virtual event Wednesday.

Lloyd Laboratories is one of eight groups that showed interest in vaccine manufacturing. Several are in the process of signing partnerships, which pharmaceutical companies here need to strike with technology providers overseas.

Three or four groups are keen to start operations immediately, Mr. Lopez added.

The companies are planning to work on coronavirus disease 2019 (COVID-19) vaccines or other shots that would help prevent pneumococcal disease and the flu.

Licenses for local vaccine manufacturing will be processed within 20 days under guidelines issued by various government agencies. Under a “green lane” created to speed up processing, the drug regulator is required to identify staff that will assist firms looking to import active ingredients for local packaging through the entire licensing process.

Meanwhile, Mr. Lopez at the same event said the government needs base its coronavirus responses on the number of critical or severe cases instead of the total number of new cases.

“As we increase the vaccination rate, what we suggested even to the (interagency taskforce on the coronavirus) is to look at more on the data… not the cases but the severe and critical,” he said.

He said the trend of severe and critical cases, which make up around 2.6% of all active cases, should be added to the parameters considered when deciding on lockdown restrictions, which he said could lead to “granular lockdowns” or stricter restrictions only in riskier areas.

COVID-19 cases in the Philippines have again surged, reaching 12,021 new recorded infections on Wednesday.

The Health department said Monday that the country is classified as high risk from the coronavirus as the average daily infections from Aug. 1 to 7 hit 8,695, higher than the 6,498 a week earlier. — Jenina P. Ibañez

DA expecting P72-B budget for next year

PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Agriculture (DA) said it expects to be allocated a P72-billion budget for 2022, well below its proposal for P250 billion.

“The National Expenditure Program (NEP)… is now being printed, to be submitted soon to Congress. The indication is that the level of budget projected for the DA is almost P72 billion. It just went up by almost P1 billion if we consider our budget this year,” Agriculture Secretary William D. Dar told reporters during a virtual briefing Wednesday. 

“There are other special projects on top of the regular budget and we will continue to drum up support from various stakeholders so that during discussions in Congress, it might still be increased in a big way,” he added.

Mr. Dar cited improvements in production of palay, or unmilled rice as an outcome of increased budget support. Palay production during the first half rose 4.9% to 8.8 million metric tons.

“We have seen why we need more budget. Take rice for example. If you bring all the budgetary support, production really increases,” Mr. Dar said.

Meanwhile, Mr. Dar confirmed that the process is underway regarding the government’s plan to issue certificates of necessity to import (CNI) to augment the fish supply with the closing of the fishing season. 

He said the National Fisheries and Resources Management Group is being consulted regarding import plans, adding that the Bureau of Fisheries and Aquatic Resources (BFAR) has been directed to submit its recommendation on CNI volumes by Aug. 20.

“Let’s wait on what the recommendation of BFAR will be. We also received recommendation from the National Economic and Development Authority (NEDA) but I will not disclose it in the meantime,” Mr. Dar said.

Socioeconomic Planning Secretary Karl Kendrick T. Chua announced Tuesday that the government is planning to issue CNIs to address the upcoming closed fishing season starting October, billing it as an inflation-containment measure.  

The PSA (Philippine Statistics Authority) reported Monday that the value of Philippine agricultural production contracted 1.5% in the second quarter.

Livestock and fisheries production declined 19.3% and 1.1%, respectively. Crop production rose 3.1% while poultry output increased 2.5%. — Revin Mikhael D. Ochave

House bill seeks tax exemption for medical oxygen

THE FREEMAN/ROMEO MARANTAL AND DECEMAY PADILLA

A BILL filed in the House of Representatives hopes to provide a tax exemption for the procurement of emergency medical supplies, including oxygen.

Albay Rep. Jose Ma. Clemente S. Salceda, chairman of the House Ways and Means Committee and the bill’s author, was responding to President Rodrigo R. Duterte’s address on Monday in which he stated his intent to ask Congress to exempt manufacturers of medical-grade oxygen from tax.

House Bill 9958 or the COVID-19 (coronavirus disease 2019) Emergency Tax Exemption Act requires the Secretary of Finance and the Secretary of Health to compile a list of supplies needed for the prevention, control, and treatment of COVID-19, which will enjoy exemptions on taxes related to their sale, manufacture, or import.

“The provision intends to be general, so that we don’t have to legislate for each and every specific supply. The Secretary of Finance can simply invoke the rule as needed,” Mr. Salceda said in a statement.  

Should the bill pass, its effectivity will run until Dec. 30, 2022, which Mr. Salceda said is sufficient time for the Philippines to achieve herd immunity.

He said that the bill will be tackled next week given the urgent nature of the measure, along with it being a presidential request.

Mr. Salceda said in a separate statement that there are several options that the government can resort to while the bill is being deliberated in the House.

“The Department of Finance could invoke Section 109 (BB) (ii) of the National Internal Revenue Code, as we enacted in [the] CREATE (law), which exempts from VAT the sale and importation of medical devices necessary for COVID-19. Oxygen supplies definitely fall under that category. That provision is valid until December 2023,” he said.  

He added that the government could also extend the provision in a previous Bayanihan law on exemption from customs duties on medical oxygen in the Bayanihan to Arise as One Act or Bayanihan III which is pending in the Senate. — Russell Louis C. Ku

CoA finds DoH non-compliant on over P67B worth of COVID-19 funds 

PHILSTAR

THE COMMISSION on Audit (CoA) said the Department of Health (DoH) failed to follow government standards on the handling of over P67 billion in funding to address the pandemic.   

The finding of “deficiencies” was contained in the commission’s 2020 audit report, made public on Wednesday.

“These deficiencies contributed to the challenges encountered and missed opportunities by the DoH during the time of state of calamity (or) national emergency, and cast doubt on the regularity of related transactions,” said state auditors. 

CoA described the DoH’s lapses as “non-compliance (with) pertinent laws, rules, and regulations,” which surfaced after an initial audit of COVID-19 funds, the conclusions of which were contained in a Consolidated Management Letter that was transmitted to Health Secretary Francisco T. Duque III on May 4.  

State auditors found that P42.41 billion was transferred to implementing partner agencies without a memorandum of agreement and other supporting documents, which led to delays in the delivery of essential medical equipment.

Deficiencies were also found in the DoH’s procurement process, including lack of documentation in contracts on P5.04 billion worth of spending items. The commission said the deals as struck “deprived the government of the most (advantageous) prices and cast doubt on the regularity in the payment of transactions.” 

Auditors also found allotments unobligated by the DoH worth P11.89 billion that could have been used in “strengthening the Department’s capacity to address the COVID-19 pandemic and further buttress the healthcare system.”
Some P69.94 million worth of medical equipment and supplies procured for the COVID-19 containment effort were found to have not been immediately utilized by the department.

CoA said funds that went unused were “counter-beneficial to the Department’s continuing efforts towards controlling the spread of COVID-19.”

“These funds that remained idle as at year-end were not translated to much-needed health supplies, equipment, and services that could have benefitted both the health workers and the general public during the critical times of the pandemic,” it reported.

RESPONSE
In response to the audit report, the Health department said in an initial statement that the deficiencies reported in the report are “currently being addressed by management of DoH.”

“DoH stands firm in its commitment to observe utmost transparency and accountability in the utilization of government funds more specifically for those allotted for COVID-19 response,” it added.

Mr. Duque also said in a Viber message that a “more detailed” response will be released once the department completes its own report on the matter.

In the Senate, Senator Francis Pancratius N. Pangilinan said that the CoA report confirms that “incompetence and corruption” resulted in the Philippines’ laggard performance in containing the outbreak relative to what neighbors have achieved.

Senator Emmanuel Joel J. Villanueva highlighted the need for “critical personnel hires in the field of procurement and supply chain management.”

“When procurement is choked by inefficiencies, a COVID patient struggling to breathe dies down the line. Hopefully, we have a catch-up plan in 2021 and manage to deliver ventilators and X-ray machines,” he said. — Russell Louis C. Ku with Alyssa Nicole O. Tan

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