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SMC, DA tie up for food security

San Miguel Corp. (SMC) will partner with the Department of Agriculture (DA) in two initiatives that will help secure food supply as farmers struggle from the impact of the coronavirus disease 2019 (COVID-19) pandemic.

SMC will mass purchase agricultural produce, starting with four million kilograms of surplus corn. The move aims to help farmers in their livelihood and increase food supply during the enhanced community quarantine.

The surplus corn is enough to manufacture feeds for over seven million live broilers that can further augment poultry supply in the country and is enough to feed four million families in a day.

“Through this program with the Agricultural department, we will be able to keep our farmers afloat as we navigate these uncertain times,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement.

SMC will buy most of the four million kilograms of surplus corn from corn farms in Cagayan Valley, which span about 25,000 hectares.

The purchase of surplus corn is under pre-agreed prices and volume.

Mr. Ang also thanked the DA for offering its network of corn and cassava farmers where San Miguel Foods, Inc. can source the raw materials it needs for food production.

Meanwhile, SMC is also planning to use its Petron gas stations nationwide as outlets for the DA’s Kadiwa ni Ani at Kita rolling store program.

Under the partnership, farm produce and basic food commodities under the Kadiwa program will be stationed at Petron stations.

“We can also help people stay safe, healthy, and nourished by providing them a convenient way to buy fresh fruits and vegetables from our local farmers,” Mr. Ang said.

Initial venues for the program include Petron stations in Filinvest, EDSA, and Katipunan, with additional gas stations set to participate in the coming days.

SMC also guaranteed ample food supply for at least six months, lasting beyond the enhanced community quarantine.

Its facilities produce a daily output of 1.96 million kilograms of fresh meats such as poultry, beef, and pork, 524,000 kilograms of processed meats such as canned meat, and 2.11 million kilograms of flour and baked goods such as biscuits and nutribuns. — Revin Mikhael D. Ochave

Lawsuit claims 10 big banks rigged market for ‘odd-lot’ corporate bonds

NEW YORK — Ten of the world’s largest banks, including JPMorgan Chase and Bank of America, have been sued for allegedly conspiring over nearly 14 years to rig prices in the $9.6-trillion US corporate bond market, costing ordinary investors billions of dollars.

The proposed class action filed on Tuesday in federal court in Manhattan said the banks have since August 2006 violated antitrust law by overcharging investors on “odd-lot” trades, which are worth less than $1 million and comprise 90% of all corporate bond trading.

Other defendants include Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and Wells Fargo & Co, or their respective affiliates.

According to the 81-page complaint, the banks leveraged their power from handling more than two-thirds of US corporate bond underwriting to quietly inflate spreads between the prices where they would buy and sell odd-lot bonds.

This allegedly resulted in spreads 25% to 300% higher than on “round-lot” trades over $1 million, which are normally conducted by institutional investors, enabling the banks to reap higher compensation while boosting retail investors’ trading costs.

“No reasonable economic justification explains the magnitude of the pricing disparity,” the complaint said. It added that odd-lot spreads are narrower even in foreign bond markets with lower volumes and liquidity.

Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and Wells Fargo declined to comment. Representatives of the other banks did not immediately respond to requests for comment.

The investors are led by Isabel Litovich, a San Juan, Puerto Rico, resident who said the collusion resulted in overcharges on odd-lot bond trades through her Morgan Stanley account.

Lawyers for the plaintiff did not immediately respond to requests for comment.

The Manhattan court has been home to dozens of private lawsuits accusing banks of conspiring to move various bond, commodity and currency markets. Earlier settlements in some of those cases have resulted in billions of dollars in recoveries.

The case is Litovich v Bank of America Corp et al, US District Court, Southern District of New York, No. 20-03154. — Reuters

US videogame sales surge in March as lockdown keeps people indoor

VIDEOGAME sales in March hit their highest in over a decade, as Americans turned to games like Animal Crossing: New Horizons and Call of Duty: Modern Warfare because of lockdowns to stem the spread of the coronavirus.

Sales of gaming hardware, software and accessories in the United States jumped 35% to $1.6 billion last month from a year earlier, according to data from research firm NPD.

The sales and growth are the highest for the month since March 2008, when sales grew over 52% to $1.8 billion, NPD analyst Mat Piscatella said.

Nintendo’s life-simulation title Animal Crossing: New Horizons, launched last month, topped NPD’s best-selling list, followed by Activision Blizzard, Inc.’s battle blockbuster Call of Duty: Modern Warfare.

As the coronavirus shut down the country and forced millions inside their homes, certain businesses including gaming, online streaming and video conferencing have witnessed a boost in user engagement.

Analysts have expected gaming sales to benefit in the near-term from the stay-at-home orders.

NBA 2K20 from Take-Two Interactive Software, Inc. and Sony’s baseball simulation game MLB: The Show 20 were also among the most sold games, the data showed.

Sales of gaming consoles Xbox One, PlayStation 4 and Nintendo Switch rose 63% to $461 million in March from a year earlier. Nintendo Switch hardware sales more than doubled.

New-generation consoles, Microsoft Corp.’s Xbox Series X and Sony’s PlayStation 5, are expected to come out at the end of the year. — Reuters

Manila, Batangas ports at ‘optimal’ operations

Manila South Harbor and Batangas Port are operating at “optimal level” amid the government-imposed enhanced community quarantine, listed port operator Asian Terminals, Inc. (ATI) said.

ATI said government actions such as the issuance of guidelines to address possible logistics issues during the lockdown period have helped the ports it manages to “remain optimal.”

In March, the Philippine Ports Authority (PPA) had appealed to businesses to immediately remove their ready-for-delivery and overstaying cargoes, warning them that the shutdown of Manila port terminals was possible if they would not heed the request.

“A week after the Lenten break, berth and yard operations at Manila South Harbor have remained steady, with yard utilization at an optimum level of around 70%. Over in Batangas, yard utilization at the Batangas Container Terminal has remained its usual 50%, with manufacturers and industrial locators, mostly based in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), pulling out cargoes in a regular and timely manner,” ATI said.

ATI Executive Vice President William Khoury said: “Government’s early intervention was critical to ensure that terminal operations remain unimpeded, so that the flow of food, raw materials, medicines, health equipment and other essentials remain unhampered, especially during this time of national emergency.”

ATI also reminded its consignees to withdraw their containers at the soonest possible time.

On Monday, International Container Terminal Services, Inc. (ICTSI) also reported that operations at the Manila International Container Terminal had returned to normal levels after stakeholders responded to calls to withdraw their overstaying cargoes. — Arjay L. Balinbin

E-payments pushed amid lockdown

THE CENTRAL BANK is urging consumers to shift to e-payments amid the current enhanced community quarantine (ECQ) to prevent further spread of the coronavirus disease 2019 (COVID-19).

In a statement, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno encourage the “use of e-payment services through electronic fund transfer schemes PESONet and InstaPay.”

“Fees for these services have been waived by authorized financial institutions during the ECQ period,” Mr. Diokno said.

According to the BSP, InstaPay and PESONet may be used for person-to-government transactions such as tax payments.

Likewise, government-to-person transactions such as the distribution of monetary benefits under the Social Amelioration Program of the Bayanihan We Heal as One Act can also be coursed through these payment channels.

InstaPay allows for real-time fund transfers of amounts up to P50,000 and is already offered by 45 financial institutions.

Meanwhile, PESONet is meant for high value transactions which can be credited by the end of the banking day, provided that the money was transferred within the cut-off time of financial institutions. The service is authorized to be carried out by 56 institutions.

Mr. Diokno said consumers should exercise due diligence and utmost vigilance when making e-payments and entering into other online transactions in view of potential risks, such as phishing, spoofing, fraud and scams.

“Usage of e-payments reduces people’s need for mobility, helps prevent health risks of physical contact during over-the-counter transactions, partially addresses difficulties of providing cash supply to ATMs (automated teller machines) and bank branches, and supports the general objectives of the ongoing ECQ,” the BSP said.

During the lockdown, banks have seen a surge in online transactions including opening of accounts as well as fund transfers.

The volume of online payment transactions in the country grew to 10% of total transactions in 2018 from a mere 1% in 2013, according to a study by Better-than-Cash Alliance. Meanwhile, the value of e-payments rose to comprise 20% of the total in 2018 from the 8% seen in 2013.

The central bank wants 20% of transaction volumes and 30% of transaction value done digitally by this year’s close. — LWTN

Why we should not ban liquor during ECQ

UNLIKE countries like South Africa and even Greenland, the Philippines is not technically under a total liquor ban during this COVID-19 crisis. However, it feels like it is. When President Duterte imposed the Enhanced Community Quarantine (ECQ, or a nicer way of saying “lockdown”) for Luzon on March 16 amid the threat of the pandemic, the actual guidelines do not include a call for a total liquor ban.

But many Local Government Units (LGUs) have enacted local ordinances to carry out liquor bans. And like dominoes, provinces and Metro Manila cities follow.

While Visayas and Mindanao were not included in the quarantine, Cabinet Secretary Karlo Nograles, the designated spokesperson of the Inter-Agency Task Force for the Management for the Emerging Infectious Diseases (IATF-EID), said these regions outside of Luzon can also impose ECQ as necessary. And, sure enough, almost every province implemented their own ECQ following the same guidelines as announced for Luzon. Almost immediately after the ECQ announcement, the Cebu City government imposed a liquor ban on March 16.

In Metro Manila, liquor bans were not immediately imposed. But it took just a week or after the ECQ was implemented for some of the capital region’s 17 cities to tighten things up. Mandaluyong and Parañaque were among the earliest cities to enforce liquor bans, making their announcements on March 23. They were followed soon by Quezon City, Pasig, and Valenzuela. By the end of March, almost every city — except Makati, Taguig, Malabon, Marikina, Navotas, and Pasay — were implementing liquor bans. But Marikina, Navotas, and Pasay caved in eventually by April. By mid-April, cities nationwide — from Baguio, Legazpi, and Cebu, to Bacolod, Davao, and Cagayan de Oro — were all under liquor bans, easily covering 95% of our population in my humble estimate. This is a bit weird given that even our Muslim neighboring countries like Indonesia and Malaysia, both also in the midst of combating COVID-19, have not imposed liquor bans.

LIQUOR BAN JUSTIFICATION
When a country like South Africa, which is among the top 10 wine producing countries in the world, imposed a liquor ban on its populace during this COVID-19 crisis, something must be really crucial to make this tough decision. Even South African Breweries (SAB), owned by the multinational Anheuser-Busch InBev group (of Budweiser and Michelob), which enjoyed a San Miguel-like beer monopoly in South Africa, ceased operations during this liquor ban. Beer is the overwhelming preferred liquor in the country, followed by wine. Thousands of jobs, and of course the drinking lifestyles, were affected by the ban considering that South Africa is also among the world’s highest per capita consumer of liquor. South African research showed that a significant percentage of these liquor consumers are known to be binge drinkers and severe alcoholics.

President Cyril Ramaphosa declared the outbreak of COVID-19 in South Africa as a State of National Disaster by early March and then a lockdown, which included a liquor ban, by March 27. Many of the reasons cited were health- and social distancing-related, like consumption of liquor affects one’s immune system, and that alcohol reduces a person’s ability to exercise social distancing and follow the personal hygiene measures necessary to limit the spread of person to person virus transmission.

But a more convincing argument being emphasized, especially by healthcare workers, is that hospitals normally have to attend to liquor-related abuses, including car accidents, domestic violence, stabbings, gunshots, and alcohol poisoning. With an alcohol ban, the emergency rooms freed up at least 25% of their capacity that were otherwise given to liquor-related victims. While I do not see this as being the case in the Philippines, if we at all have statics similar to the South African finding, one thing is for sure, our health care is also very vulnerable as that of South Africa is, and every hospital bed and every health care personnel should be attending to COVID-19 and other health emergencies, and not those induced by liquor.

REQUEST TO LIFT LIQUOR RESTRICTIONS
There are liquor bans and there is liquor restriction. The latter is more serious as manufacturing plants of non-essential products, among which liquor products have been classified, have to shut down too. The tiny window of liquor commerce in Taguig, Makati, and Malabon, can dry up soon if no new liquor production nor new liquor importation come through from the strict restrictions during this ECQ.

The problem with this window is it allows those with liquor businesses based in Makati, Taguig and perhaps in Malabon to continue to thrive, almost unfairly against all the other companies based in cities outside of these three outliers. Actually many of these traders are selling off their oldest inventory at good margins given the lack of competition from other cities and other traders.

I am also not surprised that many people attempt to cross city borders to buy liquor, or use Lalamove or Grab to do this maneuver. Finally, I am even tempted to say it appeared elitist that Makati and Taguig, arguably the two most expensive local cities to live in, have no liquor bans. I strongly believe that if any of these three cities can discipline themselves when it comes to liquor abuse during ECQ, then all cities could do so too.

But now, the liquor manufacturers are also crying for help. It took a month after the ECQ was imposed before the Center for Alcohol Research and Development (CARD) Foundation Inc., whose members are composed of the largest liquor companies in the country, from Ginebra San Miguel and Emperador Distillers to the Lucio Tan Group, sent a letter, dated April 16 to Secretary Ramon Lopez of the Department of Trade Industry requesting for the lifting of liquor restrictions, including liquor bans. As CARD Chairman Gerard Tee eloquently explained in his two-page letter and I quote here from his second to the last paragraph: “As already said, the Alcohol Beverage Industry bears already the agony of declining market demand due to the imposition of high excise taxes on alcohol. We are pleading to let us thrive as a business, by allowing our products to exist in the market, with the same freedom of trade given to other goods and products. We plead that you take into consideration the plight of our workers and the benefit that our industry provides to our nation’s economy. It bears stressing, even with pain of being called redundant, that the sale of our alcoholic beverages is not an illegal undertaking, not deserving of the prohibition and total ban imposed by the Government. Allow us a means to survive amidst the already difficult situation we are in.”

Just last January, Republic Act 11467 was signed by President Rodrigo Duterte, raising excise taxes on liquor products. While the business argument will always be a very strong case, as a regular responsible drinker, I feel that alcohol consumption can really calm the nerves, especially when we are dealing with so much stress (social and financial) and a lot of uncertainty. In the US, liquor sales were up in high double-digits during the last week of March.

Unfortunately, like in the case of South Africa’s liquor ban concerns, there will be Filipinos who will abuse alcohol and break ECQ protocols, and thus the worry is really warranted.

MODEST SUGGESTION ON HOW WE LIFT THE LIQUOR BAN
When I read the news that the Philippine National Police declared that the crime rate in the country has gone down over 50% since the ECQ, the statistics included cities with and without liquor bans. I do not think crime reduction was any different in Makati than in Quezon City, which means the ECQ works to deter crime, and may have nothing to do with alcohol. The key is for responsible alcohol consumption. As mentioned also in the CARD Foundation letter to the DTI, and I quote another portion which summed up my belief: “… alcohol consumption can be taken in moderation by responsible individuals of the society who are accustomed to drinking alcohol.”

In the same letter, CARD actually suggested a Partial Ban on Sale and Purchase of Alcoholic Beverages, which CARD equated to a ‘restriction of time that alcohol can be sold.’ I agree with this, but I want to add another equally important provision, a limit to alcohol purchases. It can be likened to airline duty free restrictions of ONLY two bottles of liquor, or only 1.5 liters of alcohol. The time restriction, say from noon to 4 p.m., plus a 1.5L total purchase ceiling per ECQ pass holder, would probably make more sense initially. But this one, if approved, should be implemented in all cities, including Makati, Taguig and Malabon. Again, for fairness and equality, all cities should follow the same rules and guidelines.

The author is a member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, please e-mail him at protegeinc@yahoo.com.

Philippines slips in press freedom ranking

Philippines slips in press freedom ranking

How PSEi member stocks performed — April 22, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 22, 2020.

PSEi sinks for third straight day on profit taking

THE MAIN INDEX marked its third straight day of decline on Wednesday as the market was taken over by profit taking.

The benchmark Philippine Stock Exchange index (PSEi) shed 18.50 points or 0.33% to close at 5,573.75 yesterday, while the broader all shares index slid 1.57 point or 0.04% to 3,388.17.

“We saw heavy selling again at the open today which caused the PSEi to open much lower,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Wednesday.

The main index opened at 5,517.67 before trimming its losses throughout the trading session, reaching a high of 5,577.91 before settling at 5,573.75 at the close.

“After two days of consecutive losses, investors took a chance at current prices. It ended the day above the 5,500 support level and may start moving higher toward the end of the week,” Mr. Mangun said.

For Philstocks Financial, Inc. Research Associate Claire T. Alviar, the activity of investors yesterday was also driven by uncertainties on the extension of the enhanced community quarantine (ECQ) over Luzon.

“The local bourse…(ended) at the red territory as investors awaited the government’s decision whether to lift or to extend the enhanced community quarantine. It was evident on lower value flows today at P5.07 billion, compared with year-to-date average of P6.5 billion,” she said in a text message.

President Rodrigo R. Duterte is expected to make an announcement this week if the ECQ will be lifted or extended after its April 30 deadline. State leaders and experts have met on Monday to discuss options on how to balance containing the virus and kickstarting the recovery of the economy.

“Some investors were undecided on whether to pick up already or sell their position by now since this lockdown is still uncertain when to be lifted,” Ms. Alviar said.

Yesterday’s trading volume stood at 600.52 million issues valued at P5.07 million, down from Tuesday’s 764.34 issues worth P5.66 billion.

Sectoral indices were led by decliners: mining and oil dropped 88.48 points or 1.90% to 4,554.32; property lost 47.26 points or 1.65% to 2,813.66; holding firms trimmed 40.93 points or 0.73% to 5,510.91; and financials slipped 5.74 points or 0.48% to 1,189.60.

The only gainers were services, which added 28.36 points or 2.23% to 1,295.33; and industrials, which picked up 22.22 points or 0.30% to 7,277.63.

“[W]orries on oil prices were still on the table, despite the government’s comment that we are one of the net beneficiaries of it, because of dismal oil demand outlook. While BSP’s (Bangko Sentral ng Pilipinas’) tentative Philippine growth forecast between -1% and 0% dragged investors’ sentiment further,” Ms. Alviar said.

Decliners beat advancers, 101 against 67, while 54 names ended unchanged. Net foreign selling stood at P236.22 million, lower than Tuesday’s P763.35 million. — Denise A. Valdez

Peso inches lower as oil’s drop affects sentiment

THE PESO inched down as the decline in oil prices earlier this week continued to affect investor sentiment. — BW FILE PHOTO

THE PESO closed sideways on Wednesday due to weak investor sentiment because of worries over lockdowns amid the coronavirus disease 2019 (COVID-19) outbreak and after a drop in oil prices.

The local unit finished trading at P50.80 per dollar yesterday, depreciating by a centavo from its P50.79 close on Tuesday, according to data from the Bankers Association of the Philippines.

The peso opened the session at P50.85 per dollar. Its weakest showing was at P50.88 while its strongest was at P50.79 against the greenback.

Volume of dollars traded declined to $212.77 million from the $381.9 million logged on Tuesday.

A trader said the peso’s slight weakness came on the back of market jitters on the economic impact of lockdowns due to the pandemic.

“The peso slightly weakened as investors remained broadly cautious over the economic impact of the coronavirus-related lockdowns locally and abroad,” the trader said in an e-mail.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted the peso’s slight depreciation came after a decline in global stock markets.

“Peso was slightly weaker after healthy downward correction in the US and local stock markets, as the collapse in global oil prices could adversely affect valuation of listed oil companies,” he said in a text message.

Reuters reported that Asian stock markets dropped to two-week lows on Wednesday due to lower crude prices caused by falling demand on the back of COVID-19.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped by 0.8% while Japan’s Nikkei slumped by 1.2%.

At home, the Philippine Stock Exchange index shed 18.50 points or 0.33% to close at 5,573.75 on Wednesday.

Oil prices found some respite on Wednesday as US oil futures rose more than 20% and Brent prices steadied after a two-day price plunge, as markets struggle with a massive crude glut amid the coronavirus outbreak.

After falling into negative territory for the first time in history amid record trading volumes, US crude futures rose 20% as contracts for May delivery expired and the June contract became the front month.

West Texas Intermediate was up $2.05 or 18% at $13.62 a barrel by 0034 GMT.

Brent crude, which settled down 24% in the previous session, was up 4 cents at $19.37 a barrel after rising more than $1 earlier.

Oil prices have slumped over 70% this year as the coronavirus has slashed demand for everything from jet fuel to gasoline, while storage tanks around the globe are filling rapidly.

For today, the trader gave a forecast range of P50.80 to P51 per dollar, while Mr. Ricafort sees the local unit moving around the 50.70 to P50.90 levels. — LWTN with Reuters

Gov’t recovery strategy takes shape in House

A MAJOR government bank told Congress that its economic stimulus lending programs will be issued under less stringent risk-assessment conditions to facilitate the release of liquidity into the economy during the coronavirus disease 2019 (COVID-19) crisis.

“I got assurances from LBP (Land Bank of the Philippines, or LANDBANK) that their stimulus loans will be off-balance sheet, so they can be administered without the usual rigorous risk-based assessments that banks do. In terms of bank processes, that’s as good as it gets, so our committee is quite encouraged by the assurance,” Albay Representative Jose Maria Clemente S. Salceda, who is also the House Economic Stimulus Cluster Co-Chairman, said in a statement Tuesday.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno also told legislators during the virtual hearing of the House Defeat COVID-19 committee on Tuesday that the central bank has effectively eased liquidity conditions by allowing banks to count their loans to small firms as reserves.

“We have freed up from P180 billion to P200 billion and we asked banks to lend the money to MSMEs (micro, small and medium enterprises),” he said.

Finance Secretary Carlos G. Dominguez III said the Philippine Export and Foreign Loan Guarantee Corp., will guarantee part of the loans banks extended to MSMEs to boost lending to small borrowers.

The House economic stimulus sub-committee on Tuesday released a draft bill, the Philippines Recovery Act, which calls for a P613-billion stimulus package to help workers and businesses deal with the effects of COVID-19.

The draft bill classifies economic measures to address COVID-19 as transitional, sectoral and structural interventions.

Transitional interventions are economic relief measures to be implemented immediately after the lockdown to avert permanent damage to the economy. These include wage subsidies worth P110 billion for critical businesses, the self-employed, freelancers and Overseas Filipino Workers.

Compensation for COVID-19 victims will be provided by the Social Security System and the Government Social Insurance System with a total funding of P1 billion. Regulatory relief for all business entities through the suspension or waiving of fees for licensing and payment deadlines is also included.

Sectoral interventions are relief measures intended for MSMEs, tourism establishments, farms and fishing communities, and other critical businesses.

These include the P10 billion in MSME assistance by the Department of Trade and Industry, a separate P25-billion loan program for MSMEs, a P10-billion loan program for the agri-fishery sector, a P43-billion program for tourism assistance by the Department of Tourism and P66 billion worth of trade assistance from the Board of Investments.

Sectoral interventions also include industrial policies such as the imposition of zero tariffs on imported raw materials, the suspension of export percentage requirements, and grants for technological innovation for COVID-19 related products.

Structural interventions include P48 billion worth of credit mediation and refinancing; P300 billion in zero-interest loans to businesses by LANDBANK and the Development Bank of the Philippines; and P650 billion for enhancing the “Build, Build, Build” program.

The bill also proposes the creation of the National Emergency Investment Corp. with P350-billion capitalization which is tasked to “rescue firms that fail due to an unforeseen economic crisis” through convertible loans, debt-to-equity swaps, or outright government purchases.

The draft authorizes the President to reallocate and realign the General Appropriations Acts of 2019 and 2020, and allocate cash, funds and investments held by any government-owned or controlled corporations or any national government agency to provide funding support for the measure.

It also orders the Department of Budget and Management to identify programs, projects, and activities which cannot be implemented effectively as a result of the COVID 19 outbreak. — Genshen L. Espedido

No use allowing POGOs to resume if regulatory issues remain, legislator says

A SENIOR legislator said Wednesday that proposals to allow online gaming firms to resume operations “makes little sense” if it cannot properly document their foreign workers and account for their taxable earnings.

“In hearings in the House and the Senate, we have been told that one, we cannot even properly keep track of and document POGO workers; and two, that we have not been able to collect taxes from them,” House Minority Leader and Manila Representative Bienvenido M. Abante, Jr. said in a statement, referring to the part of the online gaming industry licensed under the Philippine Offshore Gaming Operator (POGO) program.

“If that is the case, then allowing them to resume operations ostensibly so the government can earn revenue to help battle the COVID-19 (coronavirus disease 2019) outbreak makes little sense,” he added.

Aside from unresolved issues in regulating the POGO industry, Mr. Abante said the government will be sending “conflicting signals” to the public regarding the enhanced community quarantine (ECQ) should it allow POGO employees to return to work.

“The government has suspended work in Luzon to keep people from going outside to prevent the spread of COVID-19, but has allowed essential industries like food production, manufacturing, and sales to continue.”

He said that “many of our countrymen want to go back to work because the ECQ has deprived them of their livelihoods, and we tell them that we cannot allow them to work for now for the good of the public’s health.”

“Kung hayaan natin makabalik ang POGO sa gitna ng krisis na ito, tatanungin nila, bakit ang mga foreigner na ito pwede magtrabaho, kami hindi? (If we let POGOs return during the crisis, the people will ask why we allow foreigners to work while many of us cannot) That is a conflicting message government cannot send, not while it adopts more measures to strictly enforce the ECQ,” Mr. Abante said.

ACT-CIS Party-list Rep and vice chair of the House games and amusements committee Eric G. Yap earlier called for POGOs to return to work to boost government funds as it addresses the COVID-19 outbreak.

Philippine Amusement and Gaming Corp. (PAGCOR) Chair and Chief Executive Officer Andrea D. Domingo said she “fully supports” Mr. Yap’s petition. Finance Secretary Carlos G. Domiguez III, meanwhile, told reporters Monday that the department is still evaluating whether the POGO suspension should be lifted.

Meanwhile, Ang Probinsyano Party-list Rep. Ronnie L. Ong, who is also vice chairman of the House games and amusements committee, urged the Philippine Charity Sweepstakes Office (PCSO) to continue its operations by launching “secure and fraud-free” interactive mobile lottery games to help the government generate funds to address the COVID-19 crisis.

“Interactive and mobile lottery games can actually be very timely because of the ECQ. Many people are in their homes doing nothing. Instead of wasting money on some online games to fight boredom, they can actually support PCSO lotteries as their way of contributing in the war effort against this unseen enemy,” he said in a statement Wednesday.

Mr. Ong said that the government is losing at least P3.75 billion per month since PCSO decided to stop operations in March. — Genshen L. Espedido

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