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Justices dismiss ABS-CBN’s move to block closure order

THE SUPREME COURT dismissed for mootness the petition of broadcast network ABS-CBN Corp. to stop the order of the telecommunications regulator directing it to go off air.

In a statement, the court said the ABS-CBN’s petition against the cease-and-desist order of the National Telecommunications Commission (NTC) was dismissed for being moot as the Congress denied its franchise application last month.

“Because of this supervening event, there is no actual substantial relief which ABS-CBN Corporation would be entitled to regardless of the Court’s disposition of the merits of the Petition,” the court’s public information said in a statement.

It said that 14 justices voted to dismiss the petition except for Associate Justice Priscilla J. Baltazar-Padilla, who was on leave.

The network went off air on May 5 after the NTC issued the order after its 25-year legislative franchise expired on May 4 while its franchise renewal application was pending at the House of Representatives.

The Lower House denied its bid for franchise after several hearings.

The network filed a petition for temporary restraining order or preliminary injunction against the order of the telecommunications regulator.

In its petition, the network said that it was losing P30 million to P35 million everyday that it is off air and would risk the jobs and livelihood of its more than 11,000 employees.

The court in June also dismissed for mootness the quo warranto petition of the Office of the Solicitor General filed in February seeking to nullify the franchise of the network over alleged violations such as allowing foreign investors to take part in its ownership by issuing Philippine depositary receipts to foreigners, among others. — Vann Marlo M. Villegas

Proposal to allow 100% foreign ownership in shipping to crush small local firms — Cebu group

By Arjay L. Balinbin, Senior Reporter

CEBU-BASED shipping group Philippine Coastwise Shipping Association on Tuesday warned that allowing full foreign ownership in domestic shipping will totally wipe out small and medium-sized companies on the island-province.

“What we are really concerned about, since I’m the president of the [association], [is] this will totally wipe out the small and medium-sized companies, which are really the backbone of the island-province,” Paul Rodriguez, who is also the president of the Cebu-based Asian Marine Transport Corp., said in an online forum on Tuesday.

He was referring to the proposed law amending the Public Service Act, which would open the domestic shipping sector to 100% foreign ownership.

“I hope our lawmakers and our government would really seriously consider the position that the inter-island shipping should only be for Filipinos. I still believe that we can do the better… [and] save an essential industry,” he said.

“History will tell that Filipino shipowners are the first responders to our nation’s crises and emergencies. We should not forget that. Just like power and water, the movement of essential goods is carried out by the cheapest mode of transportation, the shipping industry. So let us not forget the sensitivities of our industry,” he added.

The House of Representatives in March approved on third and final reading House Bill No. 78, which distinguishes between a public service and a public utility and will remove the “60-40” rule.

Public utilities were defined in the amendment as electricity distribution, electricity transmission, and water pipeline distribution or sewerage pipeline system. Telecommunications and transportation were removed from the list of public utilities.

At present, public utilities are subject to a foreign equity cap of 40% as provided under the 1987 Constitution.

Maritime Industry Authority (MARINA) Administrator Robert A. Empedrad said his agency has already presented its position on the Philippine Service Act to lawmakers.

“Allowing foreign ships to ply our routes will be beneficial to the public, and it will enhance competition…. We will support the 60-40 ownership. We allow foreign competition but on a 60-40 ownership basis pa rin, ibig sabihin (still, that means) if there will be foreign competitors plying our routes, they will be owned 60% by Filipinos and 40% by foreigners,” Mr. Empedrad said of MARINA’s position on the matter.

Mr. Rodriguez noted the proposed measure is now being deliberated at the Senate.

“With the direction of 60-40 ownership suggested by MARINA, I think it will just be used to skirt around to be honest. I don’t think foreigners would want to have a local partner really…. If they are to send their ships here, they will be running their show. Perhaps this 60-40 ownership will just become really a dummy setup,” he said.

Various business groups and foreign chambers of commerce have expressed support for the bill, saying that it “will provide a concise definition of public utilities, institute a rate-setting methodology that is fair to both investors and consumers, and facilitate greater competition in the public services sector.”

Shakey’s signs deal with Singaporean firm Koufu Group for milk tea franchise

SHAKEY’s Pizza Asia Ventures, Inc. (SPAVI) is joining the bubble tea craze by bringing Singapore’s R&B milk tea brand to the Philippines.

The operator of Shakey’s and Peri-Peri Charcoal Chicken restaurants signed a franchise agreement with Singapore’s Koufu Group Ltd. to sell R&B milk tea, bubble tea and other specialty drinks in the country.

SPAVI is looking to open stand-alone R&B stores and offer R&B products through co-branding in select Shakey’s and Peri-Peri stores.

“We are pleased to bring the R&B milk tea experience to the Philippines… This co-branding initiative is likewise in line with our renewed focus on out-of-store consumption, enhancing sales thru these channels with minimal additional investment and maximizing the use of our existing assets,” SPAVI President and CEO Vicente L. Gregorio said in a statement.

SPAVI noted milk tea is a top-selling product for take-out and delivery, making it a good pairing with its pizza product, which it said is also popular for delivery.

“Though we remain in unusual times and continue to prioritize cash and liquidity as we navigate thru the crisis, we are also working on a number of strategic initiatives, including this one, rolling out a variety of new and exciting innovations for our guests,” Mr. Gregorio added.

R&B is currently present in Singapore, China, United States, Cambodia, Vietnam, Malaysia and Indonesia. Koufu Group, which signed the franchise agreement with SPAVI, also operates food courts and coffee shops in Singapore.

“We adopt stringent evaluation criterions in selecting our strategic partners… We are pleased to have found a strong strategic partner in Shakey’s to expand our footprint in the region,” Koufu Executive Chairman and CEO Pang Lim was quoted in the statement as saying.

SPAVI has allotted P300 million for capital expenditures this year, down from P500 million a year ago, as it tightens its belt to preserve cash amid the coronavirus pandemic.

The company posted a P290-million net loss in the first half, reversing its P389-million net income in the same period last year, due to store closures at the height of the pandemic-related quarantine.

Shares in SPAVI at the stock exchange picked up nine centavos or 1.62% to close at P5.66 each on Tuesday. — Denise A. Valdez

Unable to have live performances, Teatro Europa theater festival goes online

IF THE TIMES were normal, the first Teatro Europa — a festival featuring plays from all around Europe — would have been staged by theater companies in Paco Park, Manila. With the country (and much of the world) grappling with a pandemic, such performances are not possible because of limitations on gatherings and movement. But the show must go on, and go on they will, digitally.

“I think it is a beautiful initiative, especially in these times of the pandemic,” Thomas Wiersing, charge d’affaires of the European Union delegation to the Philippines, said in a digital press conference on Aug. 18.

Teatro Europa will feature seven plays to be performed by six theater groups from universities and colleges in Metro Manila every Friday and Saturday of September on the Teatro Europa Facebook page.

The plays were chosen because they were from European playwrights “who nurtured and shaped the foundations of European culture,” said Mr. Wiersing.

The plays are: The Green Room by Arnošt Goldflam (Czech Republic), to be performed by the Rizal Technological University; Tango by Sławomir Mrożek (Poland), to be performed by MINT College; Robbers by Friedrich Schiller (Germany), to be performed by MAPUA University; School for Wives by Molière (France), to be performed by the University of Makati; Servant of Two Masters by Carlo Goldoni (Italy) and The Trickster of Seville and the Stone Guest by Tirso de Molina (Spain), to be performed by the University of the East; Everyman by Hugo von Hofmannsthal (Austria), to be performed by Arellano University.

Before each performance, an introduction to the play, the cast, and the participating university will be presented.

The performances are also to be produced virtually to ensure that the students will be properly distanced, a feat that presented difficulties in itself, according to MINT College theater director Dennis Marasigan.

“In the final performance, we are also prevented from having all the students in one place… and so we are being very creative in terms of presenting the performance of the play online,” Mr. Marasigan said during the conference.

He added that he’s the “first to admit that it is not exactly theater” as the performers and audiences are not in the same place, but that he hopes “that the performance that you will finally see will, at the very least, communicate the intent and elements of the play.”

“It is inspiring to see how our partner university theater organizations enthusiastically selected from the roster of European plays to interpret and perform online. It is admirable to witness that due to the pandemic they had to become more creative in their performances utilizing online streaming and meeting platforms,” Mr. Wiersing said.

The full schedule of the plays can be found on the Teatro Europa Facebook page. — Zsarlene B. Chua

Century Properties expands commercial leasing portfolio

CENTURY PROPERTIES Group, Inc. (CPG) continues to beef up its commercial leasing portfolio with the P1.9-billion buyout of a Makati-based office building from its joint-venture partner.

In a statement on Tuesday, the property developer said it successfully bought the ownership of Mitsubishi Corp. in Century Diamond Tower, an office building they completed through a joint venture that started in 2015.

Century Diamond Tower is a 41-floor office building accredited by the Philippine Economic Zone Authority with 63,000 square meters (sq.m.) of gross floor area.

The deal would add 25,000 sq.m. of floor area to CPG’s commercial leasing portfolio, raising it to a total of 137,000 sq.m.

“This acquisition effectively builds up CPG’s recurring income assets in line with our strategy of growing the company’s high-margin businesses including office leasing. This has proven to be a resilient sector by nature of longer-term leases,” CPG President and CEO Marco R. Antonio said in the statement.

Mitsubishi was CPG’s joint-venture partner through Century City Development II Corp. The two companies eventually agreed to a buyout, which was approved by the Philippine Competition Commission on Aug. 11. The deed of sale of shares was executed on Aug. 24.

“We thank Mitsubishi for the trust, the fruitful partnership and its invaluable support to this project. The completion of Century Diamond Tower is a milestone for CPG…,” Mr. Antonio said.

“We express our sincerest gratitude to our partner, Century Properties and to all parties involved in the construction and completion of the Century Diamond Tower,” added Masahiro Nagaoka, general manager of Mitsubishi’s Asia Real Estate Development Department.

Part of CPG’s strategy to balance its revenue mix is expanding its commercial leasing and affordable housing segments. The two segments accounted for 42% of its net income in the first half of 2020, up from 29% last year.

“While the current situation has affected office demand, market analysts still see office leasing as one with higher resilience among other real estate sectors,” it said.

CPG’s net income fell 36% to P458.13 million in the six months to June, as consolidated revenues declined 25% to P4.52 billion.

Shares in CPG at the stock exchange ended flat at 35.5 centavos each on Tuesday. — Denise A. Valdez

Mural opened in newly renovated Lagusnilad Underpass

A NEW MURAL called Masigasig na Maynila by the art collective, Gerilya, was officially unveiled on Aug. 24 at the Lagusnilad Underpass which connects Manila City Hall and Intramuros. The mural is part of the city’s Ang Bagong Maynila Program.

Masigasig na Maynila presents the rich history of Manila by highlighting the development of the city and the history of the country such as the Spanish colonial period, the Philippine-American War, World War II, the First Quarter Storm and Martial Law, and the present. The mural also honors the heroes of history and the modern-day heroes — the doctors, nurses, riders, and other frontliners — who lead the fight against the ongoing COVID-19 (coronavirus disease 2019) pandemic.

The underpass links Manila City Hall, Intramuros, the Bonifacio Shrine, and the National Museum of the Philippines.

Gerilya is an artist collective formed in 2008 whose three original members — Jano, Kube, and Zap — all hail from the College of Fine Arts at the University of the Philippines Diliman. Gerilya is involved in a variety of art related activities and experimental ventures such as comics, street art, graffiti animation, fine art exhibitions, and illustration commissions. They classify their works as falling into three main categories: political, socio-cultural, and historical.

The newly renovated underpass has Spanish-themed features designed by architect Antonio Toledo. There are vertical gardens installed at the Manila City Hall and Intramuros entrances of the underpass; an interactive and informational motion sensor and touch screen wall which is accessible to the passersby. The famous Books from Underground book shop will also make a comeback at the Lagusnilad Underpass.

Phinma Education records 30% income growth

The education unit of Phinma Corp. posted a 30% improvement in net income in its fiscal year ending March 2020 as it accommodated a 7% larger volume of students in the last academic year.

In a statement on Tuesday, Phinma Education Holdings, Inc. said it booked a net income of P532 million during the 12-month period, up from P410 million in the last financial year. Revenues from the seven schools in its network stood at P2.9 billion.

The growth was attributed to the surge in freshman enrollment, which expanded 24% year on year to push total enrollment up 7%.

“These numbers reflect the commitment in the work that we are doing and the trust that we have earned from our growing number of students and their parents,” Phinma Education President and CEO Chito B. Salazar said in the statement.

This year, Phinma Education added a new school to its network, Rizal College of Laguna, Inc., which it bought in July. It now owns eight schools in the Philippines, the others being Phinma-Araullo University, Phinma-Cagayan de Oro College, Phinma-University of Iloilo, Phinma-University of Pangasinan and Phinma Upang College of Urdaneta, Phinma-Saint Jude College, Phinma-Republican College and Southwestern University-Phinma.

Phinma Education also operates one school in Indonesia and a training institution in Myanmar.

“We want to reach as many underserved students as we can, not just in the Philippines but in Southeast Asia. To this end, we are establishing a Metro Manila network, opening a branch campus in San Jose City, Nueva Ecija, and looking at two more schools in the Philippines and another in Indonesia,” Mr. Salazar said.

Phinma Education is the largest business in the Phinma group and is being eyed for public listing in two to three years. Other businesses in Phinma’s network are construction, property, hospitality and consulting.

Phinma booked a P38.28-million attributable net loss in the first half of 2020, a turnaround of its P27.84-million attributable net income last year, as it suffered from the effects of the coronavirus pandemic and the subsequent lockdown measures.

Shares in Phinma at the stock exchange slid 10 centavos or 1.11% to close at P8.90 each on Tuesday. — Denise A. Valdez

Five rural utilities charged more on system loss in 2019

RURAL UTILITIES remain compliant with the government’s limit on passing on system loss costs in the distribution of electricity to consumers with only five charging more than the prescribed cap in 2019, according to their association.

Lawmakers on Monday raised concerns on power providers which levied on customers the cost of system loss that exceeds the prescribed limit set by the Energy Regulatory Commission (ERC).

The Philippine Rural Electric Cooperatives Association (Philreca) affirmed that there were five out of all 121 electric cooperatives that charged as much as 20% for system loss in customers’ bills, way higher than the 12% limit. 

“Five ECs (electric cooperatives), or 4.13%, were reported to have exceeded 20% system loss due to problems such as pilferages, overloaded system, long distribution lines (which increase voltage drop), and delayed implementation of capital expenditures project due to regulatory requirements, peace and order situation, and other concerns,” it said.

This was found in the 2019 compliance report on the performance of electric cooperatives by the National Electrification Administration (NEA).

The agency is already closely monitoring said “underperforming” utilities, and are subject to a series of discussions by all concerned stakeholders, the association said.

On average, electric cooperatives were able to charge system loss cost at a 10.16% level, “a figure well within the ERC cap.”

“Of the 117 ECs assessed, 99 are within the system loss cap, 59 of which have single-digit level. Only eighteen ECs or 15% exceeded the allowable system loss cap,” it added.

Power utilities are allowed by law to recover system loss from consumers at an approved rate.

A portion of electricity that dissipates in the process of distribution due to heat, pilferage and other causes is called a system loss. The cost of incurring such loss is recovered from consumers at a rate approved by the regulator.

In 2018, the ERC ordered the gradual reduction of said charges. By 2021, private electricity distributors will charge up to 5.5% for system loss recovery from a 6.5% cap, while electric cooperatives will recover the cost at an 8% limit in 2022 from 12%.

The commission has based its prescribed caps on load density, sales mix, cost of service, delivery voltage and other technical considerations.

“Overall, however, electric cooperatives have been complying [with] regulation and standards set by government regulators on system loss as well as other technical parameters,” Philreca asserted.

The House Committee on Good Government and Public Accountability continues to probe cases of the alleged spike in electricity bills and power interruptions during the lockdown period. — Adam J. Ang

Trove of 1,000-year-old gold coins unearthed in Israel

CENTRAL ISRAEL — Israeli youths have unearthed hundreds of gold coins stashed away in a clay vessel for more than a thousand years.

The treasure was discovered on Aug. 18, the Israel Antiquities Authority said on Monday, by teenagers volunteering at an excavation in central Israel where a new neighborhood is planned to be built.

“The person who buried this treasure 1,100 years ago must have expected to retrieve it and even secured the vessel with a nail so that it would not move. We can only guess what prevented him from returning to collect this treasure,” said excavation director Liat Nadav-Ziv.

The area it was found in housed workshops at the time the treasure was hidden and the identity of the owner is still a mystery.

“It was amazing,” said Oz Cohen, one of the volunteers who found the treasure.

“I dug in the ground and when I excavated the soil, saw what looked like very thin leaves. When I looked again I saw these were gold coins. It was really exciting to find such a special and ancient treasure.”

Dating back to the ninth century Abbasid Caliphate period, the 425 24-carat pure gold coins would have been a significant amount of money at the time, said Robert Kool, a coin expert at the Antiquities Authority.

“For example, with such a sum, a person could buy a luxurious house in one of the best neighborhoods in Fustat, the enormous wealthy capital of Egypt in those days,” Kool said. — Reuters

BTr rejects bids for 20-year bonds

THE GOVERNMENT did not award the 20-year Treasury bonds (T-bonds) it offered on Tuesday as investors wanted higher returns, pushing up rates.

The Bureau of the Treasury (BTr) rejected tenders worth P46.921 billion for the reissued 20-year T-bonds yesterday even as this exceeded the government’s plan to raise P30 billion from the offering.

The bonds have a remaining life of 12 years and seven months and carry a coupon rate of 3.635%.

Had the BTr made a full P30-billion award, the average rate of the notes would have been quoted at 3.501%, lower than the 5.341% fetched in the Nov. 25 auction, which was when the 20-year tenor was last offered.

Yesterday’s auction marked the first time in five months of weekly auctions that the BTr did not accept any tenders.

The last time it rejected all bids was in late March when rates shot up because investors opted to hold on to cash as the country was placed under one of the world’s strictest lockdowns to curb the spread of the coronavirus.

Yields on government securities have been on a downtrend since then as investors flocked to safe-haven assets amid uncertainties due to the pandemic.

National Treasurer Rosalia V. de Leon said they did not award any 20-year bonds yesterday after market participants asked for higher rates following the Bangko Sentral ng Pilipinas’ (BSP) move to pause its monetary easing cycle.

“Bids [were] way too high versus valuation for the tenor. [Investors were] asking for higher return for additional duration as [the] BSP takes [a] pause in [its] accommodative stance,” Ms. De Leon told reporters via Viber following the auction.

She said the Treasury expected the bonds to be quoted a yield below three percent.

A bond trader said the average yield that would have been fetched by the reissued papers had the Treasury made a full award was higher compared to “the nearest liquid benchmark, FXTN-20-17, which is trading only at 2.7-2.75%.”

A second bond trader also attributed the uptick in rates to the BSP’s decision to stand pat on its current policy settings.

The BSP’s Monetary Board last week kept benchmark interest rates steady amid a benign inflation outlook and signs of economic recovery. Rates on the BSP’s overnight reverse repurchase, lending and deposit facilities are currently at record lows of 2.25%, 2.75% and 1.75%, respectively.

Despite yesterday’s auction result, Ms. De Leon said the Treasury expects rates to remain steady on the back of ample liquidity in the market and investors’ preference for safe-haven assets.

The second bond trader meanwhile said the rates will continue to move sideways as headline inflation is expected to remain within the 2-4% target this year.

“Moving forward, inflation was up last time at 2.7% (July) but then again, it is still within the target so there’s no reason for yields to go up so in the meantime. [We see] sideways [movement for now],” the trader said.

The BTr raised P143.033 billion from the local market through its weekly auctions of government securities this month, lower than its original plan to borrow P170 billion.

Broken down, it borrowed P113.033 billion via Treasury bills (T-bills) and P30 billion from T-bonds versus the programmed P110 billion and P60 billion, respectively.

The Treasury also raised a record P516.3 billion from its offer of five-year retail Treasury bonds earlier this month. The bonds fetched a coupon of 2.625% amid strong liquidity in the market.

The government is looking to borrow around P3 trillion this year from local and foreign lenders to plug its budget deficit seen to hit 9.6% of gross domestic product. — B.M. Laforga

Closure of mall-based National Book Store ‘not true’

NATIONAL BOOK STORE (NBS) maintains that the majority of its stores will remain open, denying social media posts that the company is closing down branches in high-end malls.

In response to a social media post claiming that the company is closing down mall-based stores in favor of stand-alone branches and e-commerce selling, NBS, in a statement on Monday, said that “the story is not true” and that the company is adapting to challenges created by the pandemic. 

“In fact, the support given to us by our mall partners, especially Ayala, Robinsons and SM, in whose malls most of our stores are located, has given us a chance to focus our energies in trying to overcome this crisis and continue to serve our customers and communities,” NBS said.

But the company said that there will still be a “small number” of nonperforming branches that could be evaluated for closure or downsizing. NBS did not respond to questions about the number of stores that may be evaluated and the reasons behind possible downsizing.

Many retailers have been shutting down operations throughout the lockdown as customer foot traffic declined.

After the Metro Manila lockdown was once again eased, the Philippine Retailers Association (PRA) said that it expects some improvement in consumer spending — although this would still be well below pre-pandemic levels.

PRA Vice-Chair Roberto S. Claudio said that lower demand is caused by limitations in public transportation and some apprehension from the public to go to malls.

National Book Store also said that it is developing new ways for customers to shop from home, including via SMS, Viber and Facebook Messenger. The store’s products can already be bought on its website, along with e-commerce platforms Shopee and Lazada.

Online shopping increased during the lockdown, with Lazada Philippines in July saying that its daily online seller onboarding tripled during the lockdown compared to preceding months. — Jenina P. Ibañez

Nominations for new National Artists now being accepted

THE National Commission for Culture and the Arts (NCCA) and the Cultural Center of the Philippines (CCP) are now accepting nominations for the Order of the National Artists.

Jointly administered by the NCCA and CCP and conferred by the President of the Philippines, the Order of National Artists is the highest national recognition given to Filipino individuals who have made significant contributions to the development of Philippine Arts.

The nominees should only be nominated under one category where the artist has made his/her most substantial contribution but his/her other merits will be added to the citations as well. The categories are: Architecture and Allied Arts, Dance, Design, Film and Broadcast Arts, Literature, Music, Theater, and Visual Arts.

The Order of National Artist is given to artists who have met the following criteria:

• living artists who are Filipino citizens at the time of nomination and at the awarding, as well as those who died after the establishment of the award in 1972 but were Filipino citizens at the time of their death;

• artists who through the content and form of their works have contributed in building a Filipino sense of nationhood;

• artists who have pioneered in a mode of creative expression or style, thus earning distinction and making an impact on succeeding generations of artists;

• artists who have created a substantial and significant body of works and/or consistently displayed excellence in the practice of their art form, thus enriching artistic expression or style; and,

• artists who enjoy broad acceptance through prestigious national and/or international recognition, such as the Gawad CCP para sa Sining, CCP Thirteen Artists Award, and NCCA Haraya Awards (Alab and Dangal).

Nominations should be submitted on or before Dec. 15, 2020, to either the Order of the National Artists Secretariat, Office of the Executive Director, National Commission for Culture and the Arts, NCCA Building, 633 General Luna Street, Intramuros, 1002 Manila, or to the Order of the National Artists Secretariat, Office of the Artistic Director, Cultural Center of the Philippines, Roxas Boulevard, 1300 Pasay City.

The Order of National Artist was established under Proclamation No. 1001, on April 27, 1972. The first award was conferred posthumously later that year to painter Fernando Amorsolo.

For more details, contact Elijah Joshua Benjamin D.F. Aban, Project Officer, Awards and Recognition Unit, through via e-mail (onaa@ncca.gov.ph) or visit the NCCA website (www.ncca.gov.ph).

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