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Biz groups urge gov’t to lower costs of logistics

Operational levels at the Manila International Container Terminal (MICT) have returned to normal level, according to ICTSI. COURTESY OF ICTSI

FOURTEEN of the country’s biggest business groups on Thursday urged the government to implement a moratorium on fees and charges slapped on shipments currently stuck at the country’s ports, as the Luzon-lockdown continues.

The statement, signed by groups led by the Philippine Chamber of Commerce and Industry, Management Association of the Philippines, PhilExport, and the Supply Chain Management Association of the Philippines, urged the government to improve logistics efficiency and lower costs, especially at ports.

The government should “implement a moratorium on demurrage/detention fees, port congestion surcharges, and other penalties imposed on cargoes/ shipments stuck at the port due to slow DO issuances/bank processing/customs clearance and apply this retroactively to all shipments affected,” the business groups said.

As an example, they noted that international shipping lines slapped port congestion surcharges of $1,400 per reefer container, in addition to demurrage charges of up to P2,800 per dry container and up to P3,200 a day for reefers.

The Export Development Council (EDC) has already asked for a waiver on demurrage fees, but the Transportation department told them to elevate such request to the Inter-Agency Task Force (IATF).

The business groups also asked the government to extend the free storage period at the ports to 10 days from five days. After the five-day free storage period, shippers currently pay storage fees to port terminal operators of P962-P1,443 per day for dry containers and P192.50 an hour for reefers.

They also requested for sufficient container yards for the empty containers of shipping lines.

Business groups also suggested the adoption of a “super green lane” or quicker shipments through reduced assessment requirements for the Philippine Economic Zone Authority, the Subic Bay Metropolitan Authority, and the Clark Development Corp.

A memorandum from various government agencies on April 2 gave companies up to seven days to withdraw reefers from congested Manila ports. The Philippine Ports Authority in March warned that overstaying cargo could cause the shutdown of the port terminals.

The business groups said the truck bans and number-coding should be lifted, and that automation at the Bureau of Customs (BoC) should be improved.

“Something drastic must be done to address the downtime arising from inefficient servers of the BoC. Delay or failure to process documents online is a critical factor behind port congestion,” the statement said.

Subic and Batangas should be used as extension ports, the business groups said.

They also asked the government to rescind a 1980 letter of instruction giving the Philippine Ports Authority a share of cargo handling revenues, saying that it unnecessarily increases logistics costs.

“The negative impact [damage] such a policy brings to the economy is definitely greater than whatever the government does with the revenue it generates,” they said.

The business groups said that there should be a regulatory impact assessment on national and local government issuances to reduce confusion that cause delays on the transport of goods.

“We recommend that the (technical working group), with (Anti-Red Tape Authority) taking the lead, conduct regulatory impact assessments on COVID 19-related issuances to ensure that the rules are consistent, contributes to efficiency, and lower cost.”

Businesses have expressed concern regarding the disruptions to their supply chain during the enhanced community quarantine (ECQ), mainly due to delays at ports or checkpoints.

Meanwhile, an International Container Terminal Services, Inc. (ICTSI) official said utilization at Manila International Container Terminal (MICT) has returned to normal.

“Bumaba na sa normal levels iyong utilization dito. In fact, it’s been this way now for almost a week to the point na wala nang naghihintay na barko for quite some time,” Christian R. Gonzalez, executive vice-president of ICTSI, said during the Laging Handa briefing on Wednesday.

Mr. Gonzalez said he expects the situation at the port to continue to normalize whether the ECQ is lifted or not on April 30.

“Importante din na sabihin na kailangan pa rin nating i-institute iyong mga penalties at iyong mga regulasyon dito whether PPA, port operator or other government agencies para ma-ensure na maluwag palagi ang puerto. Importanteng-importante ito, at kasama din diyan iyong constant communication (It’s important to say that we need to institute those penalties and regulations whether the PPA, port operator or other government agencies to ensure the ports are always free of congestion),” Mr. Gonzalez said. — Jenina P. Ibañez with report from Gillian M. Cortez

World Bank approves $100-M loan for PHL coronavirus fight

THE World Bank (WB) on Wednesday approved a $100-million (P5-billion) loan for the Philippine government’s efforts to combat the coronavirus disease 2019 (COVID-19) pandemic.

In a statement, the Washington-based multilateral lender said it greenlit the $100-million loan for the country’s COVID-19 Emergency Response Project, which will “strengthen the essential healthcare delivery system for critical medical services in the face of increased demand in the coming months.”

“Boosting the country’s capacity to respond to COVID-19 will save lives. The government has taken quick and decisive action in the fight against the COVID-19 pandemic and the World Bank is proud to support its efforts. Right now, no other investment offers greater return,” World Bank Acting Country Director for Brunei, Malaysia, Philippines and Thailand Achim Fock was quoted as saying.

The bulk of the loan or $82.5 million (P4.19 billion) will go to the first phase of the project which is aimed at improving the Philippines’ emergency health care response against the pandemic.

Around $43.2 million (P2.2 billion) will go to equipping priority hospitals with needed test kits, laboratory equipment, oxygen tanks, emergency beds and medical devices such as ventilators, cardiac monitors and portable x-ray machines.

Another $23 million (P1.16 billion) will go to improving the country’s isolation and quarantine facilities by setting up more isolation rooms, establishing negative pressure isolation rooms, set up decontamination facilities in airports and seaports, and will arrange isolation tents for triaging in hospitals.

The project will also get $16.3 million (P828 million) for the purchase of critical supplies for the health work force such as personal protective equipment (PPE), medicines, medical supplies, support needed logistics, supply chains and ambulance vehicles.

For the second component of the project, $16.5 million (P838 million) will be used to expand the country’s testing capacity, particularly to retrofit Research Institute for Tropical Medicine (RITM) and the six sub-national laboratory testing centers.

The remaining $1 million (P50.8 million) will be used for project implementation, monitoring and evaluation.

“All of the project’s interventions are expected to save lives by improving the quality of care of COVID-19 patients and reducing the number of infections. A rough estimate is that taken as a whole the measures under the project will reduce overall deaths by 10%,” WB said.

Taking the lower end of the range of deaths projected by Imperial College London, this implies that the project would save 16,702 lives, which would principally otherwise have been lost in 2020,” a WB document read.

The $100-million loan was sourced from the World Bank Group’s $14-billion fast-track COVID-19 facility which extends aid to developing countries battling the pandemic.

On April 9, the World Bank also approved a $500-million (P25.4-billion) Third Risk Management Development Policy Loan to improve the Philippine government’s capacity to respond to natural disasters and implement recovery programs, including the immediate needs arising from the COVID-19 pandemic.

The Department of Finance (DoF) earlier said it will tap multilateral lenders including the World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank for financing worth $5.7 billion to partially fund the national government’s emergency responses to the health crisis. — B.M. Laforga

Value of domestic trade falls in 2019

By Carmina Angelica V. Olano, Researcher

THE Philippine economy saw a decline in domestic trade value in 2019 despite a marginal growth in trade volume, data by the Philippine Statistics Authority (PSA) showed.

According to the final results of PSA’s Domestic Trade Statistics in the Philippines released yesterday, the total value of domestic trade declined by 2.9% to P834.72 billion last year from P859.57 billion a year earlier.

By volume, domestic trade inched up by 0.4% to 25.89 million tons from 25.78 million tons previously.

Seven out of the 10 commodity categories monitored by the PSA reported a decline in trade value. Machinery and transport equipment — which accounted for the biggest share of trade in terms of value — fell 2.2% to P270.05 billion. Its trade volume merely grew by 0.5% to 2.53 million tons.

The biggest decline was seen in miscellaneous manufactured articles, whose trade value slid 23.1% to P42.39 billion. Likewise, its volume went down by 26.8% to 946,379 tons.

On the other hand, the value and quantity of trade in “commodities and transactions not classified elsewhere in the [Philippine Standard Commodity Classification]” rose by 161.5% (to P48.49 billion) and 163.1% (to 2.90 million tons), respectively.

The National Capital Region was the top source of commodities in 2019, with outflows amounting to P267.46 billion. It had a domestic trade surplus of P198.11 billion.

Meanwhile, the Central Visayas Region was the top destination of commodities with total inflows reaching P175.72 billion, posting a trade deficit of P26.47 billion.

“2019 economic growth was the slowest since [it started decelerating] in 2016. This, I believe, is a major reason for domestic trade value and volume… to have likely followed the trend,” said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion in an e-mail.

Using 2018 prices, the country’s gross domestic product (GDP) growth eased to six percent last year — the slowest since 2011’s 3.9%. Annual GDP growth has also been decelerating since 2016.

“2020 is unfolding to be the most difficult year for economic growth, not just for the Philippines, but the world. With the cratering of domestic consumption and production due to the COVID-19 (coronavirus disease 2019) pandemic, 2020 domestic trade may decline to unprecedented levels,” Mr. Asuncion said.

Billionaires give millions for relief

By Denise A. Valdez, Reporter

COMPANIES led by Filipino billionaires have been spending millions to help efforts in addressing the impact of the coronavirus disease 2019 (COVID-19) outbreak more than a month after a lockdown order suspended many of their business operations.

On Thursday, Alliance Global Group, Inc. (AGI) of Andrew L. Tan; San Miguel Corp. (SMC) of Eduardo M. Cojuangco, Jr. and Ramon S. Ang; and International Container Terminal Services, Inc. (ICTSI) of Enrique K. Razon, Jr. have given separate updates on their donations to the health sector, government authorities and urban poor communities to help grapple with the effects of the ongoing pandemic.

In a statement, AGI said it had given more than P603 million in total donations through various assistance packages to hard-hit communities. AGI is led by Mr. Tan, the fourth richest Filipino with a net worth of $1.9 billion (about P96.17 billion) based on Forbes World’s Billionaires List for 2020.

AGI gave some P100 million to Project Ugnayan, an initiative of religious organization Caritas Manila enjoining more than 50 private companies to feed urban poor families in Metro Manila. It also distributed P250-million worth of disinfectant alcohol to hospitals, organizations and government authorities across the country.

Integrated resort arm Resorts World Manila and its partners allocated some P125 million to buy personal protective equipment (PPEs) for medical staff and to buy grocery bags for poor communities. An additional P65 million was given to various local government units and non-government organizations to support programs that address the COVID-19 situation.

Property development arm Megaworld Corp. gave P60 million to humanitarian group Philippine Red Cross to buy four COVID-19 test laboratories to expand the country’s testing capacity. It likewise spent P3 million for food and groceries for frontliners and provided free transportation for medical staff.

AGI also teamed up with McDonald’s Philippines to distribute more than 100,000 meals to frontliners, government workers and urban poor communities. Megaworld also waived the rent for the tenants of its Megaworld Lifestyle Malls.

“Our companies are here to support all efforts, and we are continuously looking for ways on how and where we can further extend help and support,” AGI Chief Executive Officer Kevin Andrew L. Tan said in the statement.

SMC, led by Chairman and Chief Executive Officer Mr. Cojuangco and Vice-Chairman, President and Chief Operating Officer Mr. Ang, said its donations to the COVID-19 war chest had reached the billion-peso mark.

In a statement on Thursday, the company said it had given P150-million worth of poultry products to families in urban poor communities, pushing its donation tally to P1.15 billion.

“With the resources that we have, we are in a position to help and provide essential relief, especially to our neighbors, in these difficult times. To use these resources well and put them to good use is the right and responsible thing to do,” Mr. Ang said.

Mr. Ang is the eight richest Filipino in the Forbes list with a net worth of $1.4 billion (about P70.86 billion), while Mr. Cojuangco is the ninth richest with a net worth of $1 billion (about P50.61 billion).

Broken down, SMC’s donations were spent on PPEs (P500 million), food products (P390.7 million), alcohol (P83.3 million), rice (P38.4 million), powder disinfectant (P15.37 million), fuel (P5.3 million), toll fee at its expressways (P5.1 million), construction of quarantine facilities (P5 million), and various assistance from Petron Corp. (P3.8 million). Mr. Ang and his family also gave P100 million to Project Ugnayan.

Global port operator ICTSI, led by Chairman and President Mr. Razon, said its contributions to the COVID-19 fight have reached approximately P350 million.

Mr. Razon, who also leads Bloomberry Resorts Corp., is the country’s second richest man based on the Forbes list with a net worth of $3.4 billion (about P171.89 billion.

In a statement, ICTSI said its donations went to national and local government agencies, immediate communities, employees and port stakeholders.

“Through our individual and collaborative efforts, we hope to somehow reduce and limit the economic and health impact of the virus on our local communities and employees,” Mr. Razon was quoted in the statement as saying.

Specifically, ICTSI said it had given out PPEs and health and food aid to its employees that had to keep working to keep the flow of goods in its ports. It also provided wage increases and bonus programs and bought COVID-19 test kits to ensure safety in its facilities.

Externally, the company has given PPEs, ventilators, test kits and sanitizing equipment to healthcare facilities and hospital workers. It also gave out food and supplies to truckers and stakeholders, especially those in vulnerable communities.

Outside ICTSI, some P600 million was donated by Bloomberry Cultural Foundation, Inc. to hospitals in Metro Manila and its outskirts. The Razon group also donated P100 million for relief operations and the marginalized sector, and worked in converting the Ninoy Aquino Stadium, Rizal Stadium and the Philippine General Hospital into COVID-19 treatment facilities.

As of Wednesday afternoon, the Department of Health tallied 6,559 cases of COVID-19 in the Philippines, where 446 have died and 693 have recovered.

Filipina rockers hold online benefit concert for live music venues

FILIPINA rock singers Aia de Leon, Barbie Almalbis, and Kitchie Nadal will come together for a Facebook Live concert on May 1, 8 p.m., to raise funds for employees and workers of live music venues in Metro Manila.

The online concert is the third installment of their concert series, Secrets, and will be streamed on their Facebook page.

“Deprived of operating to serve people with live entertainment, music venues have temporarily shut down, and are struggling to manage their overhead expenses,” Milley Habito of Gabi Na Naman Productions (the producers of the show) said in a statement.

The show will feature the three singing their greatest hits and “never-before-seen collaborations,” according to the release.

The funds that will be raised in the concert will be used “to cover some of the funds needed to support employees and workers of independent music venues and bars.”

“We cannot imagine a vibrant, bustling music scene without these people who have dedicated their lives in helping run the gigs. The waiters, cooks, kitchen helpers, cashiers, parking attendants, food servers, tech guys, security personnel and other employees deserve our help too,” he explained.

Aia de Leon was the former vocalist and rhythm guitarist of the band Imago, known for songs like “Taralets” (2004) and “Rainsong” (2001). She was with the band from its inception and left in 2013.

Barbie Almalbis was the former vocalist of Barbie’s Cradle and pursued a solo career in 2006. She is known for “Just A Smile,” the theme song of the 2006 Close-Up TV commercial, “Torpe” (1997); and Barbie’s Cradle’s version of Ryan Cayabyab’s “Limang Dipang Tao” (2003).

Kitchie Nadal is also the former lead vocalist of a band, this time of Mojofly. She pursued a solo career in 2004 when she released the songs “Huwag na Huwag Mong Sasabihin” and “Same Ground” from her self-titled debut album.

The online concert’s beneficiaries include independent music venues such as Route 196, Mow’s, Saguijo Café & Bar, Jess and Pat’s, ‘70s Bistro, 123 Block, and Social House. — ZBC

Uy says vessels free to use, but DoTr cites price haggle

By Arjay L. Balinbin, Reporter

THE Department of Transportation (DoTr) said on Thursday the two vessels of 2GO Group, Inc., currently used as quarantine facilities for returning overseas Filipino workers (OFWs), were first priced at P120 million, but the amount was lowered to P35 million after Transportation Secretary Arthur P. Tugade insisted that the ships should be offered free of charge.

However, 2GO Group Chairman Dennis A. Uy said in a statement issued late Wednesday: “To set the record straight, the actual cost to operate the two vessels as quarantine facilities is at P260 million. But this was intended to be a donation. The P35 million was an offer made by the DoTr, for which we had no plans of accepting.”

Transportation Assistant Secretary Goddes Hope O. Libiran told reporters via Viber the following day that Mr. Uy was not involved in the negotiations.

“To be clear, Mr. Uy was never a part of any of the discussion. The first rate quoted during the initial negotiation among DoTr maritime officials and 2GO was at P120 million for two vessels for two months. Secretary Tugade did not agree with the initial offer and insisted that it must be for free,” she said.

“Sec. Tugade then instructed Coast Guard Commandant Joel Garcia and DoTr Usec. Artemio Tuazon, Jr. to talk with 2GO and negotiate further to lower the amount,” Ms. Libiran added.

She said that the amount was eventually lowered to P35 million to cover the necessary costs to operate the vessels, including their fuel, electricity, water, maintenance, supplies, and actual salaries of crew and hotel staff.

“Sec. Tugade said that if it is the best offer, then go ahead, but without prejudice to him asking the principal for concession,” Ms. Libiran also said.

It was during the Laging Handa briefing on Wednesday when Mr. Tugade revealed that the government would be paying the shipping and logistics company P35 million for the use of its vessels to quarantine OFWs.

Mr. Uy, in his statement, apologized to those who were “offended” by the news.

“I agree with the comments of some of the netizens that have been brought to my attention. In fact, I do believe that now, more than ever, in the time of COVID-19 (coronavirus disease 2019), we as Filipinos, whether in private or in government, have to work together, jointly make the necessary sacrifice, stand together to safeguard the lives and safety of our countrymen,” he said.

He stressed that 2GO was providing the two vessels free of charge, as he had already given “explicit instructions to waive the P35 million expected payment from the government.”

The DoTr then thanked Mr. Uy and 2GO “for their generosity and upholding their social responsibility.”

“This should also clarify that at no time did Secretary Tugade meet, talk, and discuss this matter directly with 2GO Chairman Dennis Uy, as negotiations were made through the proper channels. It is therefore unfortunate and deplorable that Mr. Uy was unfairly dragged by the media and was at the receiving end of negative commentaries, when he was never part of the discussion, and was not even mentioned by Secretary Tugade in his interview,” the department said.

WFH during the ECQ: Thomson Reuters’ Tes Veloso

WORKING from home (WFH)doesn’t necessarily mean you get to finish earlier than usual.

Take it from Tes Veloso, senior director for vendor strategy and relationship management at Thomson Reuters, who still finds herself behind a desk at home until 11 p.m.

“I usually start at 8 a.m. and finish at 11 p.m. This is very much like the hours I had when going to the office except that the time I used to spend in traveling to and from the office are now spent at my desk at home,” Ms. Veloso told BusinessWorld in an e-mail interview on April 22.

Ms. Veloso, who heads Thomson Reuters’ Manila site operations, may have avoided traffic jams but says her online work meetings are occasionally interrupted by “barking dogs,” “hissing cats,” and even a wandering Mom.

The interview has been lightly edited.

WHAT IS YOUR PREFERRED ONLINE MEETING METHOD AND WHY?
Thomson Reuters (TR) uses MSTeams to meet. This is part of Office 365. It integrated our communication tools allowing us to not only meet, but share files and chat with colleagues and teammates on our computers and mobile devices. We migrated into this new platform in 2019. This move made it easier for all of us to transition to work from home because everyone had what they needed on their drives and could connect with anyone in TR around the world.

PLEASE DESCRIBE YOUR HOME OFFICE
I count myself as lucky to have a room with a door to call my office. There are a few things about my office that I wanted to highlight: My desk was once a door to our old dining room. It is propped on top of two blue huge vases that were gifted by a family friend a long time ago. What was once was the aircon is now just an airy rectangular opening (the A/C broke down a few weeks before the lockdown). I have a couch behind me that I have not had the time to use and a treadmill to my right that inexplicably stopped working on the first week of the lockdown.

DOES WORKING FROM HOME MAKE WORK HOURS MORE FLUID?
It absolutely does! Somehow when we are working from home, we end up working longer hours and blurring the once natural lines between work and home. We need to be mindful about this because we can’t be available all day, every day. Equally important, we can’t expect others to be available all day, every day either.

DO YOU TAKE BREAKS AT HOME?
It’s the breaks that help keep my mind fresh throughout the day. I don’t have a specific thing I do during my breaks — it really varies depending on how much time I have. In between some meetings, you will find me in the kitchen preparing snacks or meals. We’ve learned to be more creative in the kitchen using available ingredients to prepare new dishes that we did not have the time for before. I also try to take yoga breaks every day. I’ve been able to get my nephew to join me. He puffs and grunts his way through the practice but comes back every day for more. I also check in with teammates, family and friends throughout the day — keeping connected with them and knowing how they are doing helps when you can’t see them in person.

DO YOU DRESS FOR WORK?
I go to “work” in a nice top, shorts, and barefoot. I don’t think that my feet will be able to adjust to heels when we are back in the office. I also put on a “work from home face” — which means fixing my hair and putting on light makeup but with the heat, that’s gone by lunch.

ANY INTERESTING STORIES BASED ON YOUR WFH EXPERIENCE?
Barking dogs and hissing cats are daily fare in my house. I was on a video conference once. The door was closed (a sign to everyone not to enter) when my mom walked in, walked behind me to take a pen and paper from my desk to write a note. My colleague was sweet enough to actually stop our meeting and wave “Hi!” to her.

WHAT IS THE MOST IMPORTANT LESSON YOU HAVE LEARNED FROM WORKING FROM HOME?
Ultimately, making this arrangement work rests with having a strong culture that is lived by the people. So that, regardless of disruptions or changes to the way we have to work, we’re still able to bring out the best of ourselves and our teams. The shift to working from home emphasized one of TR’s values: Trust — The ability to trust team members in a WFH set-up is crucial for our managers. We went from 0% to 100% working from home in the space of a few days.

When we did this, there was no question in our mind that our people would deliver — we just needed to make sure that we set them up in the best way possible to do this. We trusted that every member of the team would act with positive intent and knew that we could trust them to get the job done even without the personal interactions with their managers and teammates that characterized how we used to working.

IS THERE ANYTHING YOU WILL CONTINUE EVEN AFTER THIS?
Yes, exercise. While I’ve known this for I while, it took the ECQ (enhanced community quarantine) to make me fully appreciate that exercising does not require access to gyms, yoga studios, or the UP Academic Oval. All you really need is a space and a little discipline until you build a routine making exercise a part of your day. I’d like to believe that while we are staying home and staying safe, we are also getting healthier. — Cathy Rose A. Garcia

Lotte plans Pepsi tender offer in May after new deadline

LOTTE Chilsung Beverage Co. Ltd. plans to continue its tender offer of shares in Pepsi-Cola Products Philippines, Inc. (PCPPI) by mid-May after getting approval from the Securities and Exchange Commission (SEC) to submit its pending documents over the next three weeks.

In a letter to PCPPI disclosed to the stock exchange on Thursday, Lotte Chilsung said the SEC had approved its request to extend the deadline for submitting its amended tender offer report until May 13.

“Lotte Chilsung will file the amended tender offer report with updated valuation and fairness opinion… until May 13, 2020. Upon filing…, Lotte Chilsung will immediately re-open and resume the mandatory tender offer and conduct the same for the next 10 business days,” it said.

Lotte Chilsung was buying shares in PCPPI through a tender offer that started in December. However, the SEC ordered the offer’s suspension because of supposed issues in the conduct of valuation and fairness opinion of the shares.

Last week, Lotte Chilsung said it had asked the SEC to allow the late submission of its amended tender offer report before continuing with the acquisition of PCPPI shares. The SEC approved the request, according to Lotte Chilsung’s newest letter to PCPPI.

Lotte Chilsung is planning to buy up to 2.13 billion shares in PCPPI, equivalent to 57.78% of its outstanding capital stock as of end-September. The company, which currently holds a controlling stake in PCPPI, said the move is part of a strategy to raise its economic interest in the Philippines-based company.

Lotte Chilsung is a Korean conglomerate that manufactures soft drinks, food and other beverages. PCPPI is the licensed bottler of PepsiCo, Inc. and Pepsi Lipton International Ltd. in the Philippines which handles brands such as Pepsi, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, Premier, Milkis and Aquafina.

Shares in PCPPI at the stock exchange stood at P1.91 each on Thursday, up 10 centavos or 5.52% from the previous session. — Denise A. Valdez

Doing Good: stepping up during a lockdown

AS the quarantine continues, people and organizations likewise continue their efforts to help those affected by the lockdown and those manning the frontlines of the pandemic. Here’s another list of people doing good.

CRIMSON HOTEL FILINVEST
Crimson Hotel Filinvest City in Alabang continues to sent food to frontliners and community shelters. They are asking for donations to help them continue their food drives until the quarantine is lifted. A P500 donation can either make 10 meals or a whole Firehouse Pizza which will be delivered to the SOS Children’s Villages Philippines, frontliners at Research Institute for Tropical Medicine (RITM), Asian Hospital, and others.

Those who want to help the cause can do so via gogetfunding.com/crimsonfooddrive. For inquiries, contact Jona David at alabang.gmsec@crimsonhotel.com.

LBC FOUNDATION
The LBC Foundation, together with the women of Taguig Livelihood Shoppe, has made and distributed an estimated P50 million worth of face masks to vulnerable communities. The efforts also allowed the women of the Shoppe to continue earning money for their families.

“LBC is starting this mask program with hopes of being one with all Filipinos — to flatten the curve. This initiative is also set to assist in educating the public more, on the vital function of masks to protect not just themselves, but also others around them. We believe that masks can and will save lives,” LBC Foundation Executive Director Nena Wuthrich said in a statement.

HAYDEN TEE
Singer and theater performer Hayden Tee will be doing an online talk show with PalabasTayo this Friday to raise funds for the unemployed members of the performing arts community. Mr. Tee is known for playing Javert in various productions of Le Miserables including Broadway and Australia.

“Everyone involved in the performing arts all over the world was robbed of their source of income because of the canceled shows. We are all in this together so when PalabasTayo reached out to me, I easily said ‘sure.’ I am just happy to do what I can, to help out,” he said in a statement.

The show is scheduled on April 24, 7 p.m., on PalabasTayo’s YouTube and Facebook page. Those who want to donate can do so via bit.ly/DonateOpenHouse

CONRAD MANILA
Conrad Manila has donated food packs to the frontliners of the Philippine General Hospital and will continue to do so weekly with its sister hotel, Hilton Manila, through their Bayanihan program.

“During these challenging times, our role in the hospitality industry is not only to provide inspiring service to our guests. Most importantly, we are equally committed to making them feel safe and taken cared of while they concentrate on looking after their addressing their concerns over family, business, and other priorities in their lives. This is truly what hospitality means to us at Conrad Manila,” Emile Otte, Conrad Manila’s director of operations said in a release. — ZBC

BPI income slips in 1st quarter

BANK OF THE Philippine Islands booked a lower net income in the first quarter. — BW FILE PHOTO

BANK OF THE Philippine Islands (BPI) saw a decline in its net income in the first three months on the back of higher provisions for loan losses amid the coronavirus disease 2019 (COVID-19) pandemic.

In an online briefing on Thursday, the lender said its net income went down five percent to P6.39 billion in the first quarter from the P6.72 billion booked in the same period in 2019.

The decrease in its profit came on the back of its higher provisions for loan losses worth P4.23 billion during the quarter, surging 135% compared to the P1.80 billion set aside in the same period last year.

“This is in expectation of potential NPLs (nonperforming loans) in the future. This is not something that we see today but with the kind of activity or lack of business activity that we see out there — whether it be corporates or consumers — there is no question that loan losses [will begin] in the future,” BPI President Cezar P. Consing said in the briefing.

Meanwhile, the bank’s revenues jumped by 10.9% to P25.26 billion.

During the period, net interest income went up 13% year on year to P18.14 billion. Net interest margin was at 3.63%, up 24 basis points from the 3.39% seen in January to March 2019 as lower asset yields were offset by lower cost of funds.

The bank’s non-interest income also rose 5.8% to P7.12 billion, supported by higher gains from securities trading.

BPI’s total loans in the first quarter rose 7.3% to P1.45 trillion, with growth seen in areas of microfinance (66.6%), SME (small and medium-sized enterprises) (14.2%), consumer (9.5%), and corporate loan segments (6.7%).

BPI recorded a current account, savings account (CASA) ratio of 73.5%, while its loan-to-deposit ratio was seen at 86.3% during the period.

The bank’s indicative NPL coverage ratio went up to 109.02% in March from the 92.55% seen in the same period a year ago. Its NPL ratio settled at 1.82% at the end of the first quarter.

Operating expenses during the period totaled P12.53 billion, rising by 3.8% compared to the year-ago level. Cost-to-income ratio settled at 49.6%, down from the 53% seen in the comparable 2019 period.

At end-March, BPI’s total assets grew by 5.1% to P2.19 trillion. Total equity was seen at P272.7 billion, with an indicative common equity Tier 1 ratio of 15.19% and a capital adequacy ratio of P16.08%, both beyond the regulatory minimum.

The bank’s return on equity was seen at 9.38%, while return on assets settled at 1.21%.

Maria Theresa Marcial-Javier, chief finance officer at BPI, said the bank is positive they can hold up “reasonably well” in the second quarter despite the current situation and amid an expected economic slowdown.

“We have very good reason to believe that the second quarter earnings will hold up reasonably well even if there is a slowdown in economic activity and loan releases,” Ms. Marcial-Javier said during the briefing.

She said BPI will benefit from declining finance costs on the back of the “strength of their deposit franchise” as well as the “approximately P50 billion” raised through bonds in the first quarter.

During the quarter, BPI raised P15.3 billion in two-year peso bonds and another P33.9 billion via a 1.5-year bonds.

Shares in the Ayala-led lender closed unchanged at P60 apiece on Thursday. — Luz Wendy T. Noble

How a security officer and a mafia member played McDonald’s Monopoly

By Zsarlene B. Chua
Reporter

Television Review
McMillion$
HBO Go

(TRAILER: https://www.youtube.com/watch?v=n8zHfScOWO8)

WHAT was supposed to be a clean, honest game — a promo to bring the sales up in McDonald’s in the US and Canada, and possibly grant some people a million dollars, a Dodge Viper, or a house — turned out to be anything but as some managed to game the McDonalds’ Monopoly system and run a years-long fraud. That is the crux of HBO Go’s McMillion$.

The six-episode miniseries, directed by James Lee Hernandez and Brian Lazarte, charts the decades-long fraud of Jerry Jacobson, who was in charge of security of the agency that ran the chain’s Monopoly promotion, and another Jerry, this one a member of the Colombo mafia, to steal and distribute the big ticket prizes to friends and colleagues while pocketing a sizeable fee.

For those who are unfamiliar with McDonald’s Monopoly game, it’s one of the chain’s most successful promotions where people could get Monopoly tickets — either by buying select food items or scouring magazines for free tickets — and win something small like free drinks or fries, or the grand prize: a car, a house, a million dollars.

The promotion started in 1987, with the fraud running from 1989 to 2001 during which the perpetrators pocketed an estimated $24 million.

In the series, viewers are first introduced to Federal Bureau of Investigation (FBI) Special Agent Doug Matthews, a man with a ready smile, hearty laugh, and a golden retriever-like personality who is so game recounting what happened from when they started to get the inklings of a scam in the McDonald’s Monopoly game.

Mr. Matthews is disarming because he is not what you’d think an FBI agent would be like — he is not taciturn or a man of a few words — in fact, many on the Rotten Tomatoes website noted that he missed an opportunity to go on TV.

The series is set up with Mr. Matthews as a junior agent in Florida, bored out of his skull doing healthcare fraud when he saw one of his colleagues’ sticky note about a possible fraud in the Monopoly game. He jumped on the chance to investigate it just to get out of healthcare fraud.

The first clue that something was wrong? Six winners were related to each other, but distant enough that they had different surnames. And a man called “Uncle Jerry.”

The beauty of the series is Mr. Matthews and his ideas on how to get to the bottom of the crime — that usually involved getting “winners” in front of the camera recounting how they won or promising them a reunion trip to Las Vegas. His bosses never thought it’d work, but it did.

In the six episodes, we get the set up: how the fraud was discovered and then how they found the man running all this; then we get how the crime was started; and, finally, what happened to the fraudsters. It would be a very straightforward crime series if not for its characters: Mr. Matthews and his long-suffering bosses. This is probably the first crime series I have watched where the FBI is more entertaining than the criminals themselves.

It was almost straight out of Brooklyn 99 with Mr. Matthews being the overly-excited Jake Peralta (played by Andy Samberg) eager to prove his chops.

The problem with the story is how limited it was in scope, so the directors decided to pad it with a focus on Jerry Colombo’s family and how he was involved in the Colombo crime family. It was unnecessary and yet they dedicated two episodes to it.

The entire story was crazy enough that prior to the documentary’s release in March, there was talk of turning it into a movie starring Matt Damon. The film hasn’t come into fruition yet, but McMillion$ is here to stay.

One would think that after the fraud, McDonald’s would stop doing Monopoly games but it didn’t. Until now several iterations of the game have continued to run in the United Kingdom, Singapore, Canada, and the US.

McMillion$ is viewable for free on HBO Go until the end of the month.

PSALM hands over P46M to LGUs to lower power rates

GOVERNMENT-LED Power Sector Assets and Liabilities Management Corp. (PSALM) on Thursday said it remitted its quarterly share in the national wealth to local government units (LGU) hosting renewable power plants to bring down electricity costs.

The agency tasked to privatize the government’s power assets handed over P46 million to host LGUs in Luzon and Mindanao, 80% of which must be used to lower costs of electricity, as called for by Republic Act No. 9136 or the Electric Power Industry Reform Act.

“We did our best to process the releases immediately and we even coursed them through bank transfers in order for the LGUs to access the funds and perhaps utilize them for their Covid-19 (coronavirus disease 2019) response activities,” PSALM President and Chief Executive Officer Irene B. Garcia said in a statement.

LGUs in Benguet, Laguna, Pangasinan, Bukidnon, Lanao del Norte and Lanao del Sur are beneficiaries of the PSALM shares.

According to the Local Government Code, LGUs are entitled to a 40% share of proceeds from energy assets, such as petroleum, coal, geothermal, hydrothermal, and wind resources, collected in the past fiscal year.

These proceeds are directly routed to treasurers of concerned provincial, city, municipal, or barangay.

The agency’s shares in national wealth are released quarterly, with the next remittance to be done in July.

Recently, PSALM extended its order putting on hold the payments of fees on power billings and ancillary services which due dates fall during the enhanced community quarantine (ECQ), following the recent advisories of the Department of Energy and the Energy Regulatory Commission on bills settlements within the energy sector.

It has provided distribution utilities, industries, ecozones, and government entities with a grace period for paying said fees. It likewise allowed them to pay the deferred bills in installments in the next four billing months starting mid-May.

The ECQ, initially to end April 14, was extended until the end of the month. — Adam J. Ang

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