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Peso declines further as US eyes vaccine distribution

THE PESO weakened further on Thursday as the US government said it was targeting to distribute vaccines against the coronavirus disease 2019 (COVID-19) by the end of October.

The local unit closed at P48.58 versus the greenback on Thursday, down five centavos from its P48.53-a-dollar finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session weaker at P48.57 against the greenback. It climbed to as high as P48.48, while its weakest showing was at P48.59 per dollar.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the peso weakened versus the dollar as the US Centers for Disease Control and Prevention (CDC) told federal governments to hasten the distribution of COVID-19 vaccines.

“Peso was weaker versus the dollar after US stock markets again mostly posted new record highs amid optimism on possible US vaccine for COVID-19 as early as Nov. 1,” Mr. Ricafort said in a text message.

The US Centers for Disease Control and Prevention (CDC) has asked state public health officials to prepare to distribute a potential coronavirus vaccine to high-risk groups as soon as late October, documents published by the agency showed on Wednesday, Reuters reported.

The New York Times had earlier reported that the CDC had contacted officials in all 50 states and five large cities with the planning information.

The documents put online by the New York Times showed the CDC is preparing for one or two vaccines for COVID-19 to be available in limited quantities as soon as late October.

The vaccines would be made available free of cost first to high-risk groups including healthcare workers, national security personnel, and nursing home residents and staff, the agency said in the documents.

Drug developers including Moderna Inc., AstraZeneca Plc and Pfizer, Inc. are leading the race to develop a safe and effective vaccine for the respiratory illness.

The CDC documents describe two vaccine candidates that must be stored at temperatures of minus 70 and minus 20 degrees Celsius. Those storage requirements match profiles of candidates from Pfizer and Moderna.

Meanwhile, a trader said the outlook for the dollar is bearish amid low interest rates in the United States.

“I feel dollar strength may be temporary as majority of players maintain a bearish outlook on the dollar given the US Federal Reserve’s policy outlook of maintaining rates near zero,” the trader said in an e-mail.

The US Federal Reserve last week rolled out a sweeping rewrite of its approach to its dual role of achieving maximum employment and stable prices, putting new weight on bolstering the US labor market and less on worries about too-high inflation, Reuters reported.

The Fed’s new monetary policy strategy, unveiled at the start of an annual central banking conference, pledges to address “shortfalls” from the “broad-based and inclusive goal” of full employment, a nod to research showing racial income disparities hold back economic growth.

For today, Mr. Ricafort expects the peso to range from P48.50 to P48.65 versus the dollar, while the trader sees it moving within P48.40 to P48.70. — K.K.T. Jose with Reuters

PSEi snaps losing streak on unemployment data

THE BENCHMARK Philippine Stock Exchange index (PSEi) snapped a five-day losing streak on Thursday on the reported improvement in local unemployment data.

The main index picked up 34.47 points or 0.60% to close at 5,772.86, while the broader all shares index added 15.51 points or 0.44% to end at 3,489.52.

The country’s unemployment rate has slowed to 10% in July from a record 17.7% in April, the Philippine Statistics Authority reported on Thursday. This means the number of jobless Filipinos were reduced to around 4.6 million in July from 7.3 million in April, but still larger than the 2.4 million unemployed Filipinos in July 2019.

“This gives positive sentiment in the market since it is quite surprising, given the strict lockdown measures imposed during the second quarter,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message. “Given the latest data, it shows that businesses have slowly been recouping as community quarantine eased in July.”

The rise in US stocks on Wednesday also helped improve market sentiment during Thursday’s trading, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices rose 1.59%, 1.54% and 0.98%, respectively.

“Stocks continued from a strong start to September… as traders took profits out of high-flying names like Apple and Tesla and snapped up shares in more beaten-down parts of the market,” Mr. Limlingan said in a mobile message.

Five out of six sectoral indices at the local bourse ended Thursday’s trading with gains: services grew 20.19 points or 1.38% to 1,474.89; financials increased 13.12 points or 1.17% to 1,131.68; industrials improved 59.12 points or 0.75% to 7,896.85; holding firms rose 29.61 points or 0.49% to 5,962.88; and mining and oil climbed 4.10 points or 0.06% to 6,162.73.

Property was the sole declining index, which lost 5.34 points or 0.20% to 2,590.02 at the end of session.

Value turnover stood at P5.27 billion with 961.02 million issues switching hands, down from the previous day’s P6.38 billion with 1.51 billion issues.

Advancers bested decliners, 105 against 77, while 48 names ended unchanged.

Net foreign selling was trimmed to P1.12 billion on Thursday from P1.64 billion on Wednesday.

Meanwhile, Asian equities pared early gains on Thursday amid growing worries about Sino-US relations while the euro hit a one-week low as traders wagered on central bank action to tame the single currency, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside of Japan, which was up more than 0.5% earlier in the session, slipped 0.1% with Chinese and Hong Kong shares leading the losses. The Hang Seng fell 0.7% while China’s blue-chip index was 0.5% lower. — Denise A. Valdez with Reuters

US marine’s release on hold as victim’s family appeals ruling

PHILIPPINE prison officials have put the release of convicted killer US marine Joseph Scott Pemberton on hold, pending the appeal of the victim’s family.

Mr. Pemberton, who was convicted of homicide in 2015 for killing a transgender Filipino in Olongapo City, would remain detained, Justice Undersecretary Mark L. Perete told reporters in a Viber message on Thursday, citing the Bureau of Corrections (BuCor).

An Olongapo trial court found Mr. Pemberton guilty of homicide in a case that had ignited anti-American sentiment in the former US colony. The court sentenced him to six to 10 years in jail.

Pemberton could have faced a life sentence had the judge granted prosecutors’ request for a murder conviction. The court cited mitigating circumstances, saying Mr. Pemberton was drunk and got confused after discovering that the person he had hired for sex was male.

Jeffrey Laude, a 26-year-old male sex worker who identified as a woman, was found strangled in October 2014 in a motel.

The court on Tuesday ordered Mr. Pemberton’s release for good conduct.

In a statement, the prison bureau said it “respects the court processes and will wait for the resolution of the filed motion for reconsideration.”

“The normal release process is on hold,” it said. “Pemberton remains under custody of BuCor at its extension facility in Camp Aguinaldo.”

Presidential spokesman Harry Roque, who served as the victim’s private lawyer, said the Olongapo court’s ruling was contrary to the recommendation of the Bureau of Corrections (BuCor).

He told an online news briefing the court should not have given Mr. Pemberton allowance for good credit for his educational activities while in prison

“What the judge did in deciding how he should be given credit for good conduct was an instance of judicial overreach,” Mr. Roque said in Filipino.

The court this week said the accused had paid the family of the victim P4.6 million in damages.

The victim’s family appealed his release, saying Mr. Pemberton had neither been involved in rehabilitation programs, nor had he participated in activities that would give him credits for good conduct.

It also noted that the American soldier had not been detained at the national penitentiary in Muntinlupa City. The case fueled public clamor for a review of the visiting forces agreement between the two countries in 2014.

The conviction came less than a month after former US President Barack Obama visited Manila and pledged more military aid, as the Philippines under then President Benigno S.C. Aquino III sought US support for its efforts to challenge China’s push to control disputed islets in the South China Sea.

The US had military bases in the Philippines until 1991, when the Philippine Senate ended their leases. In 1999, the Senate ratified an agreement that allowed US authorities to retain custody of soldiers accused of a crime pending trial in a Philippine court.

President Rodrigo R. Duterte in February said he was ending that military deal. His government later delayed the termination of the pact on troop deployment, which he finds to be a distraction to the world’s anti-COVID-19 efforts.

The visiting forces agreement, which allows the US to shield its servicemen from prosecution in the Philippines, has been a thorny issue for Filipino patriots who see it as a lopsided deal. The US has used the VFA at least twice to keep accused soldiers under its jurisdiction. — Vann Marlo M. Villegas

COVID-19 cases top 228,000; death toll at 3,688, DoH says

THE DEPARTMENT of Health (DoH) reported 1,987 coronavirus infections Thursday, bringing the total to 228,403.

The death toll rose to 3,688 after 65 more patients died, while recoveries increased by 880 to 159,475, it said in a bulletin.

There were 65,240 active cases, 90.8% of which were mild, 6.7% did not show symptoms, 1% were severe and 1.4% were critical, the agency said.

Metro Manila had the highest number of new cases with 818, followed by Cavite with 153, Laguna with 125, Negros Occidental with 122 and Rizal with 78.

Of the new deaths, 35 came from Metro Manila, nine from the Calabarzon region, six from Eastern Visayas and three each from Northern Mindanao and the Caraga region.

Two deaths were recorded each in Ilocos, the Zamboanga Peninsula and Soccsksargen, and one each in Central Luzon, Western and Central Visayas.

More than 2.5 million individuals have been tested for the virus, DoH said. The new cases came from 91 out of 113 licensed laboratories, it added.

The coronavirus has sickened 26.2 million and killed almost 900,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO). About 18.5 million people have recovered, it said. — Vann Marlo M. Villegas

DTI says online stores and complaints surged during virus lockdown

ONLINE business registrations and complaints surged after the government locked down Luzon starting in mid-March to contain a coronavirus pandemic, according to the Department of Trade and Industry (DTI).

Trade Secretary Ramon M. Lopez told senators at a hearing on Thursday 73,276 online businesses registered from March 16 to Aug. 31, compared with only 1,756 that registered from Jan. 1 to March 15.

This brought the total this year to 75,029 registered online businesses. Complaints related to online transactions also ballooned to 12,630 as of August from 2,457 last year, he added.

“The quadruple increase is attributed to the surge of online transactions due to the COVID-19 pandemic,” Mr. Lopez said. He said 8,000 online complaints were posted between April and May alone.

The Senate trade committee is tackling a proposed Internet Transactions Act that seeks to regulate online businesses. The measure is a priority of President Rodrigo R. Duterte’s government.

The Department of Information and Communications Technology (DICT) supported the measure, and asked to be included as an implementing agency.

Faye Condez-de Sagon, a legislative and policy officer at the Philippine Competition Commission (PCC), said incentives that will be given to online companies should be extended to brick-and-mortar stores.

Lazada Philippines Chief Executive Officer Ray Alimurung said the measure could become a landmark legislation for e-commerce, but appealed to the committee to delete a clause that makes both online platforms and sellers liable.

“It will potentially result in lessening customer trust because violators will hide behind platforms because it is easier for the regulator or enforcer to go after only the platform,” he told senators.

“It will severely risk the platform’s commercial viability to the detriment of micro, small and medium enterprises. Everyone will be impacted by the few bad apples,” Mr. Alimurung said. — Charmaine A. Tadalan

Senator bucks House special power plan to revamp Philhealth

A senator on Thursday rejected a House of Representatives proposal to give President Rodrigo. R. Duterte special powers to reorganize corruption-ridden Philippine Health Insurance Corp. (PhilHealth).

In a statement, Senate Minority Leader Franklin M. Drilon said the President could reform the state insurance system without special powers.

“There is no use for emergency powers and we will oppose it in the Senate,” he said. “The President has vast powers under the Constitution and existing laws to reorganize and solve corruption at PhilHealth.”

Mr. Drilon said Mr. Duterte can file administrative and criminal cases against erring Philhealth officials, and suspend or transfer staff.

Party-list Rep. Michael T. Defensor, who heads the House committee on public accounts that’s separately probing the state insurance company, earlier said he was considering emergency powers for the President.

Mr. Drilon said Mr. Duterte could reorganize or abolish government-owned and controlled corporations through the Governance Council for GOCCs.

“The GCG as the governing body for government corporations must actively and decisively perform its mandate as a central advisory, monitoring and oversight body of PhilHealth,” he said.

The Senate committee has finished its probe of PhilHealth and has recommended that Health Health Secretary Francisco T. Duque III, who is chairman of the state insurance company, be replaced.

The committee also pushed the filing of criminal charges against Mr. Duque and former PhilHealth chief Ricardo C. Morales for corruption.

Presidential Spokesperson Harry L. Roque. Jr. welcomed the special power proposal but said it should be studied first.

“It’s most welcome if it’s really needed,” he said at an online briefing in Filipino.

The Senate committee had found gross overpricing of equipment bought by PhilHealth and favoritism in the release of so-called interim reimbursement mechanism funds.

The mechanism allowed the agency to grant advance payments to health institutions by up to three months during the pandemic, even if only P1 billion had been liquidated.

Former PhilHealth anti-fraud legal officer Thorsson Keith earlier told senators at a hearing the agency’s top officials had pocketed P15 billion through fraudulent programs.

He said the sum came from overpriced equipment the agency had bought, as well as from a program that gave financial aid to health facilities amid a coronavirus pandemic. Mr. Keith called PhilHealth executive committee officers in-house mafia members.

Mr. Duterte earlier vowed to “finish off” PhilHealth officials involved in irregularities at the agency.

He created a task force headed by the Department of Justice to investigate PhilHealth, including doing lifestyle checks and audits of its officials and employees.

The President also ordered the Office of the Special Assistant to the President Undersecretary Jesus Melchor Quitain to conduct a separate probe.

The PACC has said it had recommended the filing of charges against three dozen PhilHealth officials, which the Senate may adopt in its committee report. — Charmaine A. Tadalan

Regional Updates (09/03/20)

Baguio City, Region 1 provinces to pioneer local travel bubble

BAGUIO CITY and the four provinces in Region 1 have launched a partnership for creating a travel bubble to help revive the tourism industry. Dubbed as the Ridge to Reef Corridor Plan, it involves  allowing the easy movement of domestic tourists within Baguio, a popular mountain destination, and the provinces of Pangasinan, La Union, Ilocos Sur, and Ilocos Norte along the western coast of Luzon. The corridor will be referred to as BLUPISIN. “This corridor plan of the BLUPISIN  is truly admirable, not only because of the variety of tourism products involved but because of how advanced inter-provincial protocols are in terms of border control, as well as in assuring the health and safety of tourists and communities. It is a clear manifestation of the strong support of the local and provincial leaders to jumpstart tourism,” said Tourism Secretary Bernadette Romulo-Puyat during the ceremonial signing of the cooperation agreement earlier this week. “This can serve as a pilot project, and when successful, can be replicated where applicable,” she added. The BLUPISIN local governments will form a technical working group to draft the strategies for facilitating tourism activities alongside health safety measures to prevent coronavirus outbreaks. Limited inter-province travel is already allowed within Region 1 while Baguio, an independent city within the Cordillera Administrative Region (CAR), has eased quarantine rules for residents. Baguio is currently finalizing a digital platform for the registration and monitoring of visitors as it plans to reopen its borders by October.

SMC commits to revive Pasig River

SAN MIGUEL Corp. (SMC) on Thursday said it will “revive” the Pasig River as part of its multi-billion peso Pasig River Expressway (PAREX) project. “Not only will we be building a much-needed direct link between eastern and western Metro Manila, but we will also be leading a historic effort to bring the Pasig River back to health,” SMC President and Chief Operating Officer Ramon S. Ang said in an e-mailed statement. The river rehabilitation will involve dredging and clearing of debris and garbage “to attain its optimum depth and ensure the constant flow of water.” The P95.40-billion PAREX project is a six-lane expressway that will connect Manila to Rizal province. It will start from Radial Road 10 (R10) in Manila and connect to the South East Metro Manila Expressway at Circumferential Road 6 (C6), SMC said. There will be three segments, namely: R10 to Plaza Azul, Plaza Azul to San Juan River, San Juan River to C5 Intersection, and C5 Intersection to C6 Intersection. Project construction is estimated to take 36 months. — Arjay L. Balinbin

Airlines owe P940 million in ticket refunds, travel agents say

By Jenina P. Ibañez, Reporter

CASH-STRAPPED airlines owe nearly P1 billion in ticket refunds for canceled flights during the pandemic, travel agencies said.

The Philippine Travel Agencies Association (PTAA), which has 439 members, issued the estimate of receivables due to agents as well as consumers.

“The usual refund time — without the pandemic — is about one to two months for airlines to refund the actual money. Since March, all the refunds that we have requested to airlines have not been processed,” PTAA Executive Vice-President Jhaytee Wong said in a television interview Thursday.

The agencies in a previous statement said the refunds were due from 27 airlines, including domestic carriers Philippine Airlines, Cebu Pacific, and Philippines AirAsia.

“The problem is, we as travel agents, are having a hard time explaining to our clients because it’s already almost six months and we haven’t been refunding them. And it’s hard for us to shell out money for refunds… the funds are with the airlines, not the agents,” Mr. Wong said.

In a statement sent on Viber, Philippines AirAsia said that the airline has been receiving more than the usual volume of refund requests during the pandemic.

“We continue to do all we can to best assist any guest affected by a disrupted service during this period and thank them for their patience,” the company said.

“AirAsia understands the urgency of customer queries relating to the current health situation and any changes to their travel plans. The company has made it a priority to persistently work with various partner organizations, including banks and travel agencies, to immediately address guests’ concerns.”

With aviation among the hardest hit businesses during the pandemic, Cebu Pacific said it is still behind its capacity forecast despite restarting commercial flights in June. The company said it is operating 10% of its pre-pandemic network.

“Given the high number of flight cancellations, refund requests continue to rise and pile up day by day. This unprecedented volume has caused a backlog in the system, resulting in processes taking longer than expected. As of now, refunds take about five (5) months from the date it was filed,” Candice A. Iyog, Cebu Pacific vice-president for marketing and customer service, said in a mobile message.

“We assure our partners and customers that we are still here, listening, and doing all we can to expedite the refund process.”

Philipine Airlines has not responded to requests for comment.

Only 20 of the PTAA’s members continue to operate, catering to overseas Filipino workers and seafarers.

“Currently, all the members are hanging on. They’re waiting until the end of the year to make a decision if they’re going to close permanently or they will continue to be temporarily closed,” Mr. Wong said.

The Tourism Congress of the Philippines last month said that the tourism industry had lost P190 billion in revenue during the five-month lockdown so far.

Subway tunnel boring to start in 2H 2021

THE Transportation department said Thursday that tunneling work on the first phase of the Metro Manila subway project is expected to begin in the second half of 2021.

“It is safe to say second half of 2021,” Transportation Assistant Secretary Goddes Hope O. Libiran told BusinessWorld by phone when asked for an update.

She said the first tunnel boring machine is expected to arrive from Japan in January.

The department received early this year parts of the boring machine that will be used to build Metro Manila’s first subway line.

The second tunnel boring machine will arrive in February, “then third to sixth will come in the succeeding months,” Ms. Libiran added.

The department will virtually present to the media on Friday the 6.99-meter tunnel boring machine, which is currently in Tokyo.

The department is still reviewing the bid of the joint venture of Sumitomo Corp. and Japan Transport Engineering Co. for the rolling stock contract of the first phase of the subway project.

The contractor is to design, execute and complete 30 train sets consisting of eight electric multiple units or a total of 240 train cars, according to the department’s bid bulletin.

The department invited Japanese firms in December to bid to supply train sets, as well as electrical and mechanical (E&M) systems and rail track works for the first phase of the subway, a flagship project funded by Japan official development assistance.

The deadline for submission of bids for E&M and track works was initially set on March 24, with a bid security of 800 million yen. This was postponed to Sept. 30, according to a bid bulletin.

The Metro Manila Subway will have 17 stations: East Valenzuela, Quirino Highway, Tandang Sora, North Avenue, Quezon Avenue, East Avenue, Anonas, Katipunan, Ortigas, Shaw, Kalayaan Avenue, Bonifacio Global City, Lawton, Senate, FTI, NAIA Terminal 3, and Bicutan.

The first phase covers the first three underground stations, tunnels and depot construction, depot equipment and buildings.

The government broke ground on the first three stations in February 2019 after the Transportation department signed a P51-billion deal with the Shimizu joint venture, which consists of Shimizu Corp., Fujita Corp., Takenaka Civil Engineering Co. Ltd., and EEI Corp.

The Philippines and Japan signed in March 2018 the first tranche of the P355.6-billion loan for the project.

While the public will have to wait until 2025 for full operations of the 17-station subway, the government is planning to launch partial operations, covering the first three stations by 2022. — Arjay L. Balinbin

Cargo firms sign up for air delivery of Mindanao produce

THREE CARGO FIRMS have agreed to transport by air various high-value crops from Mindanao to Luzon and the Visayas, the Department of Agriculture (DA) said.

The DA signed a memorandum of agreement for the delivery of 15 tons of fruits daily at a cargo rate of P35 per kilogram, to be flown out of Davao to Manila until Oct. 1.

Under the memorandum, the DA also said there will be no off-loading, as long as the products will reach the airport before the cut-off time.

The DA said it hopes to aid farmers in finding new markets after setbacks to the region’s economy, including tourism, due to the coronavirus disease 2019 (COVID-19) pandemic.

The first batch of high-value crops cargo from Davao arrived at the Ninoy Aquino International Airport on Sept. 1, as arranged by the Durian Industry Association of Davao City and John Gold Cargo Forwarder.

DA Undersecretary for Regulations Zamzamin L. Ampatuan said the arrangement is for cargo-only flights, unlike previous deals where the goods were carried in passenger flights.

“That’s why we are excited about this because it is an opportunity that will benefit the farmers, producers, and traders. We can serve the market and widen the opportunity for farmers to sell their produce at lower cargo cost,” Mr. Ampatuan said.

Undersecretary for High Value Crops and Rural Credit Evelyn G. Laviña hopes the delivery of the first shipment encourages more producers, consolidators, and shippers to use air cargo.

“There will be more like this not only on domestic flights, but eventually international as well,” Ms. Laviña said.

In June, the Department of Transportation ordered domestic shipping companies to allocate at least 12% of their vessel’s cargo space to agricultural products, and extend at least 40% discounts on shipping fees, to ease food logistics during the pandemic. — Revin Mikhael D. Ochave

Think tank says Bayanihan II legislation unlikely to keep laid-off workers afloat

THE P165-billion Bayanihan to Recover as One legislation is not expected to be sufficient for sustaining workers and companies through the pandemic, according to think tank IBON Foundation, Inc.

“The Philippine economy will lose as much as P1.9 trillion in 2020 because of the pandemic-driven economic crisis… But the Duterte administration’s Bayanihan to Recover as One Act, or Bayanihan II, is worth just P165.5 billion,” independent development institution IBON said in a statement Thursday.

It noted that the cash subsidies of P5,000 to P8,000 per month would put recipients below the poverty threshold.

“Only P19.2 billion is budgeted for cash subsidies and other assistance which is just 3.8 million beneficiaries at most. The aid will also just be a mere P37-60 per person per day for a month or even less than the official poverty threshold,” IBON Foundation said.

It estimates that up to 27 million Filipinos are currently either jobless or suffered from reduced income due to the lockdown, which accounts for 60% of the labor force.

Unemployment eased to 10% in July from the peak of 17.7% in April, according to official data.

It said the P77-billion budget allocation for production and enterprise support will cover “a small fraction of workers” employed by micro, small and medium-sized enterprises, including some farmers and fisherfolk.

Bayanihan II allots P140 billion in funding and P25 in standby appropriations in which funding will be authorized once revenue is available. The bill has been passed and ratified by Congress and is now awaiting President Rodrigo R. Duterte’s signature.

Economic managers have been stressing the need to keep funds in reserve in case of a prolonged pandemic.

“While we know that economic recovery is not going to be a sprint, we do have the fiscal stamina for running this marathon. It is to our own advantage to keep our deficit within manageable limits so we can continue to access financing at terms that are favorable to the Filipino people. We therefore thank the House and Senate bicameral committee for approving a fiscally responsible Bayanihan II,” Finance Secretary Carlos G. Dominguez III said in a speech last week.

The proposed measure is the government’s main form of stimulus for an economy that contracted 16.5% in the second quarter. Officials now estimate a contraction of up to 6.6% in 2020.

The University of Asia and the Pacific (UA&P) and the First Metro Investment Corp. (FMIC) in the August issue of their joint “Market Call” report has called the bottom on the economy, saying it sees government spending propping up growth in the second half.

They said government spending for infrastructure and health “should (maintain) its fast pace” in the second half to mitigate the economic downturn.

UA&P and FMIC expect the slump in the third-quarter GDP (gross domestic product) to ease into a single-digit decline, with that of the fourth quarter expected to improve further as quarantine rules are eased.

“With the relaxation of strict quarantine measures in mid-August, the economic recovery may gain traction by Q4 although some headwinds still swirl — COVID-19 cases remain elevated, although death rates remain low, public transportation still mostly absent in Metro Manila, more US-China friction and among others,” according to the report, issued Thursday.

Metro Manila is now under general community quarantine.

“We begin to see month-on-month gains in the real economy, such as in manufacturing, capital goods imports, exports, and probably construction and expect to see more in the coming months, albeit at non-spectacular rates,” UA&P and FMIC said. — Beatrice M. Laforga

AMLC looking into foreigners’ use of Filipino dummies in retail

THE Anti-Money Laundering Council (AMLC) said it has detected the use by foreign nationals of Filipino dummies in the retail industry to get around foreign-ownership restrictions.

“The receiving and/or transacting of proceeds of illegal activities using the scheme and accounts set up by the Filipinos and foreign nationals for that purpose, is a violation of the Anti-Money Laundering Act, as amended,” the AMLC said in a report issued Thursday.

The regulator said it has taken note of Fiipinos registering retail businesses with the Department of Trade and Industry on behalf of the beneficial owners, who are foreign nationals.

The dummies then use the business registration permit to open bank accounts which will then be managed by the foreign nationals.

The AMLC said such bank accounts have been used by drug traffickers to store proceeds from the illegal trade, but laundered as retailing proceeds, which are often much higher than what a typical new retail business would generate.

The AMLC said it considered such large transactions to be possible red flags for drug activity, as was the use of several accounts by a single transactor and the use of different money service businesses to remit funds.

Separately, the AMLC said it renewed an agreement to share data with the Department of Finance (DoF) in the event the latter’s internal investigation service needs to look into the activities of the department’s employees and their families.

The two agencies updated a memorandum of agreement (MoA) granting the DoF Revenue Integrity Protection Service access to AMLC financial data in the event of possible money-laundering violations by DoF officials and their family members.

The AMLC is authorized to investigate and prosecuting persons suspected of money laundering, terrorism financing, and other violations of the Anti-Money Laundering Act of 2001, as amended.

“As the country’s situation evolves, so does the fight against money laundering and terrorism financing. This MoA represents another chapter of collaboration and information-sharing between the DoF and the AMLC,” AMLC Executive Director Mel Georgie B. Racela said in a statement. — Luz Wendy T. Noble

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