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SEC accepts electronic signature, unnotarized corporate filing

THE Securities and Exchange Commission (SEC) will now accept corporate filings with electronic signatures and are unnotarized sent through e-mail while Luzon is on lockdown.

In an effort to relax rules for corporations on limited operations due to the quarantine, the SEC issued Memorandum Circular No. 10 on March 20 as guide in submitting general information sheets, audited financial statements and all other forms and letters.

Documents that will be submitted must be in portable document format (PDF), preferably with text layer, and affixed with an electronic signature of appropriate representatives.

Files should be sent as attachments to an e-mail, sent using a valid company e-mail or the address of an authorized representative.

If the filing to be submitted normally requires notarization, the SEC said it will allow for now the submission of such files unnotarized. The company should expect, however, that the signatory in the filing is accountable to the document submitted.

Before submitting the files, the body of the e-mail must contain a statement from the company assuring the authenticity of the attachments to be sent. It must also commit to submit the same documents once business operations are back to normal.

Companies must request from the SEC a return receipt and a delivery status notification to confirm the successful delivery of the e-mail.

Once the state of public health emergency is lifted, the SEC will set a date for companies to submit notarized hard copies of the same documents submitted digitally.

“These guidelines are intended to facilitate compliance by all concerned corporations with laws, rules, regulations and applicable SEC memorandum circulars…during the period that the state of public health emergency is in effect,” the memorandum said.

Luzon has been put under enhanced community quarantine until April 13 due to the coronavirus disease 2019 (COVID-19) pandemic. — Denise A. Valdez

New shows to launch in April

IT’S been almost two weeks since the Luzon-wide enhanced community quarantine was imposed to stem the spread of COVID-19, and the majority of people have been staying home and practicing social distancing. Here are some new shows to look forward to in April from WarnerMedia and Netflix, to make passing the quarantine easier. One has to note that many of these shows are starting in the middle of April — hopefully, the quarantine would be lifted by then.

WarnerMedia (HBO, HBO GO, and Warner TV) will be airing urban-fantasy mystery film Pokemon Detective Pikachu (2019) by Rob Letterman and starring Ryan Reynolds as Pikachu; and action-thriller Escape Plan: The Extractors (2019) by John Herzfeld starring Sylvester Stallone and Dave Bautista starting April 4 (HBO GO) and April 11 (HBO).

Three new HBO and HBO Go Originals will be airing in April and will premiere at the same time as in the US: Run, a comedy series which will start airing on April 13 at 10:30 a.m. The show stars Merritt Wever and Domhnall Gleeson and follows a woman whose humdrum life is turned upside down when she receives a text from her college sweetheart inviting her to drop everything and meet him in New York to fulfill a pact they made 17 years earlier.

The HBO Original Film Bad Education, a high school embezzlement story inspired by true events, will premiere on April 2, 8 a.m. Hugh Jackman and Allison Janney star.

The limited HBO Original series, I Know This Much is True — starring Mark Ruffalo as identical twin brothers in a family saga that follows their parallel lives in an epic story of betrayal, sacrifice and forgiveness — premieres on April 28 at 9 a.m.

For those looking for a bit of comedy, there’s Impractical Jokers Season 9 featuring comedy troupe The Tenderloins committing public pranks. The show premieres on April 14, Tuesdays to Thursdays at 8:35 p.m. on Warner TV.

Premiering on April 10 at 9 a.m. on Cartoon Network is a follow-up to the ThunderCats series. ThunderCats Roar! follows the ThunderCats as they face off a host of villains who attempt to hinder their fresh start on Third Earth. Meanwhile, kids can follow a bunch of fun-loving, misfit monsters in Monster Beach, premiering on April 25, and airing on Saturdays and Sundays at 6:30 p.m. on Cartoon Network.

Catch Korean ladies as they take on crime in the police drama Girl Cops starring Ra Mi-Ran and Lee Sung-Kyung, airing on April 10 at 10 p.m. on HBO GO and RED BY HBO.

NETFLIX APRIL
Streaming service Netflix is also introducing a host of new shows and films this April including Extraction by Sam Hargrave, which will be released on April 24. The film follows a black market mercenary whose skills are solicited to rescue the kidnapped son of an imprisoned international crime lord.

On April 3, Netflix will release the fourth season of Casa del Papel (Money Heist) which will see the thieves fend off enemies from both inside and outside the Bank of Spain as their plan unravels. A companion film, Money Heist: The Phenomenon, is also set to launch on April 3. It takes a look at why and how the series sparked a wave of enthusiasm around the world for a lovable group of thieves and their professor.

Comedy coming-of-age series Never Have I Ever premieres on April 27 and follows the life of a first-generation Indian-American teenager. The show is inspired by actress/writer Mindy Kaling.

On April 29, Netflix premieres Extracurricular, a Korean series about high school students committing crimes and being trapped in the conflicts their choices brought them.

Two more Korean series is set to premiere in April although no specific date has been released: The King: Eternal Monarch about a king and a police officer in two parallel universes, and Time to Hunt, set in a dystopian city where a group of friends is hunted by an unknown man.

Suntrust shareholders approve lease for hotel casino

SUNTRUST Home Developers, Inc. said stockholders have approved a recently signed lease agreement for its planned hotel casino in Parañaque City.

In a disclosure to the stock exchange yesterday, the company said the stockholders of Hong Kong’s Suncity Group Holdings, Ltd. gave their written approval for the agreements relating to the project site.

Suncity owns 51% of Suntrust, which it bought last year to enter the Philippines’ gaming market. Megaworld Corp. maintains a 34% stake in the company.

Suntrust signed in February a lease agreement with Westside City Resorts World, Inc. and Travellers International Hotel Group, Inc. for the project site of the hotel casino. One of the requirements for the deal to proceed was to obtain the approval of Suncity’s stockholders.

The agreement covers a multi-year lease for three parcels of land located at the Manila Bayshore Integrated City in Parañaque City. This is where the hotel casino will be built as part of Megaworld’s 31-hectare Westside City.

The stockholders also approved a project site payment of $200 million payable by Suntrust to lessors Westside and Travellers.

“By the lease agreement, Suntrust is given the right to use the project site, where the Main Hotel Casino will be built and operated,” it said.

The lease is for an original term of until Aug. 19, 2039, and is renewable automatically for another 25 years. Annual rent is priced at $10.6 million, excluding value-added tax, payable in two installments or on a semi-annual basis.

Suntrust and Westside is co-developing the hotel casino in Megaworld’s Westside City, envisioned to be a five-star hotel with at least 400 rooms and a casino establishment.

Shares in Suntrust at the stock exchange climbed eight centavos or 7.27% to P1.18 each yesterday. — Denise A. Valdez

AC Energy begins P1-billion share repurchase

AYALA-LED AC Energy Philippines, Inc. (ACEPH) is repurchasing up to P1 billion of its shares in the open market since March 24.

This comes as the Ayala Corp. energy unit is set to boost its renewable energy portfolio upon its deal to acquire shares from Presage Corp., the international renewables unit of its parent company AC Energy, Inc.

The listed firm then would inject additional primary shares to AC Energy, which would own 85% of the former.

“This transaction will firmly establish the company as Ayala’s energy platform both in the Philippines and around the region,” AC Energy Chairman Fernando Zobel de Ayala said in a disclosure to the Philippine Stock Exchange on March 19.

Soon to be named AC Energy Corp., the company also said last week that it is increasing its authorized capital stock by P24 billion.

Recently, ACEPH completed its purchase of the controlling stakes in San Carlos Energy, Inc. and Island Solar Power, Inc., operators of two Negros Occidental solar farms owned by Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.

The energy firm eyes to reach 5 megawatts or 5 gigawatts in renewables capacity by 2025.

On Thursday, shares in AC Energy Philippines rose 16.17% to close at P1.94 each. — Adam J. Ang

Famous victims of a pandemic, exactly 100 years ago

DISEASE does not discriminate, and takes lives great or small. During this coronavirus pandemic, when you can: stay at home. Otherwise, maintain distance in public, avoid close contact with people, and take all necessary sanitary precautions.

Earlier this week, the heir to the British throne, Charles, Prince of Wales, tested positive for COVID-19. He has placed himself in isolation in Scotland, according to a report from CNN. Another royal, Prince Albert II of Monaco, has also tested positive for the virus. A statement from the Prince’s Palace of Monaco, dated March 19 (translated from the French) said, “His Serene Highness urges the people of Monaco to respect the measures of confinement and to limit contact with others to a minimum.”

In the Philippines, meanwhile, Senator Aquilino Martin “Koko” Pimentel III, also tested positive for the same virus. However, Mr. Pimentel, according to a statement from the Makati Medical Center, “violated his Home Quarantine Protocol, entered the premises of the MMC-DR, thus, unduly exposed healthcare workers to possible infection.”

We’’re here to present a list of famous people who were infected in one of the most devastating pandemics in history, the 1918-1920 Flu Pandemic, otherwise known as the Spanish flu. The pandemic taught us that without necessary precautions, no matter who you are, or what you do: no one is safe. The World Health Organization presents the following guidelines:

• Wash your hands frequently.

• Maintain social distancing.

• Avoid touching your eyes, nose, and mouth.

• Cover your coughing and sneezing with your elbow (covering your cough with your hands can cause one to spread the infection).

• Seek medical help when presenting symptoms of fever, cough, and difficulty breathing.

The Spanish flu pandemic is thought to have infected 500 million people, about 25% of the world’s population then. The virus is thought to have killed anywhere between 17 million to 100 million people. The discrepancy in the numbers comes from the fact of the limited medical records of the time, but more importantly, due to the self-interest of states to underreport cases: to conceal troop movements and to boost morale, at the cost of human lives, in the middle of the First World War.

The following are among the most famous people who caught the Spanish flu.

Alfonso XIII — The King of Spain from the moment of his birth, Alfonso XIII is the great-grandfather of the incumbent king, Felipe VI. His infection made the news: he was the monarch of the country that gave the 1918 pandemic its name, for a very unfair reason. Spain remained neutral in WWI, and thus had no motivation to underreport their flu cases. It thus seemed to the world that Spain had the most victims of the flu. The king survived the pandemic, but was deposed and exiled in 1931.

Greta Garbo — The glamorous movie star wasn’t always at the height of chic. Of humble origins from Sweden, Garbo lost her beloved father during the tail end of the pandemic, catching the disease herself at 14. She rallied, survived, and worked in a barbershop before being discovered as a model. Believed to be one of the most beautiful faces ever to grace the silver screen, the reclusive Garbo died in 1990.

Woodrow Wilson — The American president who ushered the United States into WWI, Wilson was also one of the leading architects of the League of Nations, a precursor to the United Nations. Wilson was believed to have caught the virus during the process of negotiating the Treaty of Versailles in 1919, which ended the war between Germany and the Allies. While he did survive the flu, it left him weakened and may have contributed to a stroke that left him partially disabled in the same year. It was rumored that during his illness, First Lady Edith Wilson served as a “shadow president” and took over some of his duties — she would claim in her memoirs that all she ever did was determine which state matters would be presented to her husband. Either way, women in America would gain the right of suffrage during Wilson’s second term.

David Lloyd George — Considered one of the most successful British prime ministers, David Lloyd George is famous for sweeping reforms in the government, taking the first step towards Britain’s welfare state, reforming British taxation, not to mention leading the state during WWI. Lloyd George’s illness during the flu pandemic, while in the middle of the war, was so severe that his breathing had to be aided by a respirator. However, his condition was kept concealed by the government and underplayed by the press, again to aid in the war effort. While he survived the pandemic, his career as Prime Minister did not, ending in 1922. He continued to be active in politics, and died in 1945.

Walt Disney — Far from being a household name in the 1910s, Disney was a young man who forged his papers to reflect an older age to be able to join the war. However, he caught the flu before being shipped off to France, delaying his service, and arriving only after the Armistice. Had he not survived the flu, or else been shipped to the war, Disney would not have created the character of Mickey Mouse 10 years later, paving the way for the worldwide Disney entertainment empire.

Gaby Deslys — The name of this French actress might not ring a bell today, but the effects she left behind after her death in the flu pandemic survived. The boat-shaped bed seen in the 1925 film Phantom of the Opera and the 1950 film Sunset Boulevard, which would inspire many future props in films and plays, belonged to her. Courted by kings, Deslys would become a victim of her own vanity. Contracting secondary complications of the throat from the flu, Deslys demanded that surgeons operating on her in December 1919 not scar her throat, a condition that impeded their efforts to save her. She died in February 1920. — JLG

Keep supply chains open during pandemic, says IATA

THE International Air Transportation Association (IATA), a trade association for the global airline industry, is asking governments to remove supply chain obstacles amid the pandemic as the continuing airfreight delays caused by bureaucratic processes are “endangering lives.”

Meanwhile, Manila’s international airport authority said all airlines with remaining flights will have to operate in just one terminal beginning March 28.

IATA said on Wednesday that its members were asking governments “to take urgent measures to ensure that vital air cargo supply lines remain open, efficient and effective.”

Alexandre de Juniac, IATA’s director-general and chief executive officer, was quoted as saying: “Air cargo is a vital partner in the global fight against COVID-19 (coronavirus disease 2019). But we are still seeing examples of cargo flights filled with life-saving medical supplies and equipment grounded due to cumbersome and bureaucratic processes to secure slots and operating permits.”

“These delays are endangering lives. All governments need to step up to keep global supply chains open,” he added.

IATA said governments should remove key barriers by fast-tracking procedures for overflight and landing permits for cargo operations, exempting flight crew members who do not interact with the public from the 14-day quarantine requirement, and promoting “temporary traffic rights for cargo operations where restrictions may apply.”

The association also said governments should remove “economic impediments” such as overflight charges, parking fees, slot restrictions, and operating hour curfews for cargo flights.

The Philippine government placed the entire Luzon island under an enhanced community quarantine, where most are in home quarantine and only essential workers in approved industries are allowed to go to work and transport goods.

While the Trade department had said that all cargo must pass unhampered through checkpoints, business groups said there are inconsistencies in implementing the guidelines.

Several air carriers, both local and foreign, have suspended operations due to the COVID-19.

The Manila International Airport Authority (MIAA) announced on Thursday that all airlines with remaining flights will be operating at the Terminal 1 of the Ninoy Aquino International Airport.

Such airlines include Etihad Airways, Gulf Air, Oman Air, Korean Airlines, Asiana Airlines, China Airlines, Hong Kong Air, Eva Air, Japan Airlines, Jeju Air, All Nippon Airways, Cathay Pacific, Qatar Airways, and Singapore Airlines.

However, Singapore Airlines said it will start suspending flights to and from Manila beginning March 29, 2020.

“Flag carrier Philippine Airlines has also announced suspension of international flight operations starting March 26. PAL made their last flight out yesterday (March 25) of their MNL-SFO (PR104) and MNL-LAX (PR102). Return flights of these two will be on Friday, March 27, 2020 in NAIA Terminal 1. After these arrivals, PAL will cease to operate for the meantime,” MIAA said.

It said local and foreign airlines that have already suspended international flight operations are Cebu Pacific, Philippine Airlines, Air Asia, Delta Airlines, United Airlines, Qantas Airways, Turkish Airlines, Emirates Airlines, KLM, Air China, Air New Guinea, China Eastern, China Southern, Ethiopian Airlines, Jet Star Asia, Kuwait Airlines, Malaysian Airlines, Saudia Airlines, Royal Brunei Airlines, Thai Airways, Tiger Airways, and Xiamen Airlines. — Arjay L. Balinbin

Hotels to house OFWs stranded by lockdown

THE Department of Labor and Employment (DoLE) will provide accommodation to stranded Overseas Filipino Workers (OFWs) during the enhanced community quarantine in Luzon.

DoLE signed Department Order No. 21 on March 21, which was released to the public Wednesday, setting guidelines for the Overseas Workers Welfare Administration (OWWA) Project CARE, which provides hotel accommodations for OFWs during the Luzon lockdown.

“This DO shall cover distressed arriving and departing land based and sea-based OFW-repatriates during the period of implementation of the Enhanced Community Quarantine over Luzon from 17 March 2020 until 12 April 2020 or until the lifting of the Social Distancing Measures on Luzon,” according to the order said.

Project CARE also provides transportation assistance and temporary shelter in the nearest OWWA partner hotel.

The lockdown was imposed to contain the COVID-19 outbreak.

OFWs will need to show the following requirements in order to avail of the assistance from the OWWA: a copy of their passport or travel document; and a certification as OFW repatriates from the OWWA Repatriation and Assistance Division. — Gillian M. Cortez

Stuff to do at home (03/27/20)

Free books on modern art

ENJOY PDF and ePubs on modern art from the Guggenheim Museum’s archive. The collection includes books by Francis Bacon, Max Ernst, and Mark Rothko. Visit https://archive.org/details/guggenheimmuseum.

Free vet consultations online

DR. CYRON SARMIENTO opened his Facebook (https://www.facebook.com/mcejsarmiento) and Twitter (@Cyrooon) accounts for free online consultations. Consultations will run for the entire duration of the enhanced community quarantine.

Free Japanese courses

THE Japan Foundation Manila launched an e-learning program for free Japanese courses. It includes six-month beginner and intermediate lessons on calligraphy, vocabulary, grammar, and conversation. Sign-up for your chosen course at https://minato-jf.jp/?fbclid=IwAR2SrhYV-9nH4Hbc9TbTspxg0t39DH6xtLQ-jz1n1uOkeGMK3bCdL022O8I.

Italian lessons online

THE Philippine-Italian Association is offering beginner to intermediate Italian Language classes online from March 27 to April 23, (Monday to Friday from 9 to 11 a.m.). The tuition is P5,000 inclusive of the delivery of all classes online, on meet.jit.si, the final exam, and the learning materials in PDF. For enrollment and inquiries e-mail: filital2@yahoo.com, contact 8815-1310, or visit https://philippineitalianassociation.org/events/2020/3/27/intensive-italian-beginners-a1-online?fbclid=IwAR2Z4TODUeX34Xxt2wkqp_28ZtMECX9BOtSBSQ5W3r_wFzIZh8JYmXoPNho.

Arts and Culture

LEARN something new every day with Google Arts and Culture, from virtual tours of sites and museums, to videos on food, fashion, and design. Visit https://artsandculture.google.com/.

Global central banks turn to Bank of Japan for yield curve control lessons

AS CENTRAL BANKS around the world reignite quantitative easing (QE) programs or adopt them for the first time, Japan’s key focus of controlling bond yields rather than a quota of purchases is being explored.

When the Reserve Bank of Australia (RBA) broke the emergency glass on March 19, it set a target for the yield on three-year Australian government bonds of around 0.25%, in line with its benchmark policy rate that was lowered to this level.

The advantage of targeting a yield rather than promising to buy a specific amount of bonds is the greater flexibility it allows monetary authorities. If bond markets behave and yields fall into line with the targets, the program can be easier to manage with fewer purchases needed.

The Bank of Japan (BoJ) adopted that approach in late 2016 — it targets a 10-year yield around zero — after its earlier QE program appeared on an unsustainable path given the huge volume of bond buying and resulting market distortions that were involved. Federal Reserve Governor Lael Brainard has floated the prospect for yield curve control in the US recently too.

“The surprise in the RBA package was that it leapt past the Fed and other central banks to take a leaf out of the Bank of Japan’s book,” said Paul Sheard, a senior fellow at Harvard University’s Kennedy School who had a front row seat during Japan’s multi-decade struggle to battle stagnation and deflation as an economist in Tokyo.

The key lesson for Australia is that fiscal policy needs to be a big part of the picture, if not taking the lead, he said.

FISCAL MONETARY COORDINATION
That’s where lower yields come in, by making it easier for governments to fund their shortfalls — a factor that has helped Japanese Prime Minister Shinzo Abe cheaply fund years of deficits even while carrying the world’s largest debt-to-GDP ratio.

Australia’s government delivered two stimulus packages within 10 days totaling more than A$80 billion ($48 billion). Such fiscal monetary coordination is designed to cushion the economic blow from the coronavirus.

To complement his version of yield curve control (YCC), RBA Governor Philip Lowe adopted forward guidance, saying he expects to keep the cash rate at its current level for some years. He also announced a funding facility for the banking system to support lending to small- and medium-sized businesses.

The Fed’s Ms. Brainard, in a Feb. 21 speech, noted the advantages of yield curve control when complemented by forward guidance.

“One important benefit is that this approach would smoothly move to capping interest rates on the short-to-medium segment of the yield curve once the policy rate moves to the lower bound and avoid the risk of delays or uncertainty that could be associated with asset purchases regarding the scale and timeframe,” she said.

FED BAZOOKA
The Fed on Monday unveiled a sweeping series of measures — but no YCC. It will buy unlimited amounts of Treasury bonds and mortgage-backed securities to keep borrowing costs at rock-bottom levels and to help ensure markets function properly. It also set up programs to ensure credit flows to firms and state and local governments.

Adam Posen, who heads the Peterson Institute for International Economics in Washington and was a crisis-era UK policy maker, reckons that while a Fed move to yield curve control isn’t imminent, it is likely to come at some point. He argues the policy enables easy fiscal policy, but the central bank preserves independence because it isn’t judging or responding to a government’s programs.

“Monetary policy is going to shift from keeping credit markets open to keeping rates low but positive,” Mr. Posen says. “They can all learn from the Bank of Japan’s yield curve control. When governments are doing repeated fiscal expansion, this is the least politically fraught and most transparent way to accommodate fiscal policy.”

Australia escaped the financial crisis of 2008 without a recession or the RBA needing to adopt what was then known as “unorthodox” monetary policies. That meant it was able to observe the experience of other central banks including the Fed, BoJ, Bank of England and European Central Bank. Mr. Lowe, for instance, has ruled out negative interest rates, all too aware of their adverse side effects on banks and asset managers.

Policy makers Down Under expect that they will need to buy bonds to help achieve the target yield level and keep markets functioning smoothly but, the announcement effect and market credibility will assist the bank. Another plus: Australia’s stock of outstanding government debt isn’t nearly as large as some global peers because its budget deficits haven’t been as deep, meaning they can probably manipulate yields with fewer purchases.

Such factors may also make it easier for Mr. Lowe and his team to eventually exit unconventional policy, once the economy perks up.

Mr. Lowe’s view that Australia would be able to stick to conventional rates policy this year was shattered by the spread of coronavirus, which has some economists predicting unemployment will soar to 11% and the economy slump into recession for the first time since 1991.

There are some key differences between Australia and Japan’s policies too. The latter came to yield curve control in 2016 after many years of quantitative easing and an entrenched deflationary mindset that Governor Haruhiko Kuroda continues to wrestle with today.

Japan also has a short-term policy balance rate of minus 10 basis points, so targeting the 10-year yield of around zero is meant to give a slightly positive slope to the curve. Mr. Lowe wants a flat curve over three years.

David Plank, head of Australian economics at Australia & New Zealand Banking Group Ltd., says the key similarity is likely to be the “Hotel California” experience that has confronted most central banks that embark on non-conventional monetary policy.

“Namely, that once you’ve started you can never leave,” he said. — Bloomberg

At least 20 vaccines being developed vs COVID-19

THE Pharmaceutical and Healthcare Association of the Philippines (PHAP) said more than 20 vaccines and a number of antiviral medicines are being developed against the coronavirus disease 2019 (COVID-19).

PHAP, a member of the Geneva-based International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), in a statement said that experts are hoping it will only take 12 to 18 months before the availability of vaccine.

Citing IFPMA, the association said there are at least 14 companies with medicine for COVID-19 in early phase of research, four companies in Phase I of development, three in Phase II and one company has a medicine in Phase III trials.

There are nearly 80 clinical trials for new treatments and vaccines being developed for coronaviruses, it said.

Several pharmaceutical companies that have operations in the Philippines are engaged in research in developing treatments for COVID-19 which are AstraZeneca Pharmaceutical, Inc., Eli Lilly (Philippines), Inc., Johnson & Johnson (Philippines), Inc., Novartis Healthcare Philippines, Inc., Pfizer, Inc., Roche, and Takeda.

GlaxoSmithKline, Johnson & Johnson, Pfizer and Sanofi Pasteur, Inc., which are all operating in the country, are conducting research and are developing vaccines for the disease.

PHPA, meanwhile, also said the industry is reinforcing capacity of diagnostics for testing COVID-19 patients and commits to speed up its efforts.

“We are seeing an unprecedented response on the part of the pharmaceutical industry to help put an end to this pandemic. As a science driven sector, we are in the unique position to partner with the government and the healthcare community to support efforts in this time of health crisis,” said PHAP President and MSD Philippines President Dr. Beaver R. Tamesis.

PHPA also said it is monitoring that the delivery of medicines in the country remains unhampered and called on the government to come out with a policy that will help them.

“We support government efforts to contain the COVID-19 outbreak. We continue our operations despite the challenges brought about by the enhanced community quarantine,” PHAP Executive Director Teodoro B. Padilla said.

“PHAP Members are employing supply chain strategies so that medicines, vaccines and diagnostics needed by healthcare professionals and patients are available at the time they need them,” he added.

Pfizer and BioNTech SE, a German company working on new kinds of immunotheraphy treatments, previously said that they are working on a potential vaccine against COVID-19 that will be distributed outside of China.

There are 414,179 confirmed cases and 18,440 deaths worldwide from COVID-19. — Vann Marlo Villegas

BSP remits P20 billion in dividends to Treasury

THE CENTRAL BANK has remitted P20 billion in dividends to the government to support its programs amid the disruptions caused by the coronavirus disease 2019 (COVID-19) outbreak.

In a statement, the Bangko Sentral ng Pilipinas said it remitted on Thursday the P20 billion as advanced dividends to the national government, despite no longer being mandated to do so.

The New Central Bank Act allows the BSP to release all declared dividends for the payment of its increase in capitalization instead of remitting them to the national government.

BSP Governor Benjamin E. Diokno said the central bank will continue to support the government’s efforts to battle the “once-in-a-lifetime pandemic” and to keep the economy afloat.

“The BSP has and is ready to employ the necessary tools in its arsenal to address the impact of COVID-19 while staying true to its mandate,” Mr. Diokno was quoted as saying.

The amount constitutes 87% of the total estimated dividends of the central bank in its unaudited 2020 financial statement.

This was remitted through direct credit to the account of National Treasurer Rosalia V. de Leon which is maintained with the BSP.

On Monday, the BSP also committed to buy $300 billion worth of short-term government securities from the Bureau of the Treasury through a repurchase agreement with a maximum repayment period of six months.

The Monetary Board has also announced a 200 basis point (bp) cut in the reserve requirement ratio (RRR) for big lenders to bring it down to 12% by March 30.

Moreover, they said a reduction in the reserve requirements of other BSP-supervised financial institutions are also being evaluated, with Mr. Diokno authorized to cut RRR up to 400 bps this year.

Last week, the central bank cut policy rates by 50 bps, reducing the overnight reverse repurchase, lending, and deposit rates to 3.25%, 3.75%, and 2.75%, respectively, in a move to boost activity amid an expected economic slowdown.

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the central bnak’s move is a step in the right direction to encourage other government units to do their part in responding to the pandemic.

“BSP’s remittance of P20 billion in advance dividends to the national government sends a positive signal as this is a step in the right direction for all units of government to cooperate and unite, in terms of further increasing the national government’s cash position, which will be used to to better combat COVID-19 and prevent it from spreading…,” he said in an emailed response.

Mr. Ricafort cited other government units that have pledged assistance in the midst of the outbreak, including the Department of Transportation as well as the Philippine Amusement and Gaming Corp.

“This [BSP move] will also help reduce the national government’s borrowing costs with more money remitted from other government units, reducing the government’s borrowing and less crowding out effects in the market,” he added.

For his part, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the central bank chief’s assurance bodes well for the economy and the market.

“Anything positive towards the struggle to make the economy fight will definitely help market sentiment,” Mr. Asuncion said in an emailed response.

In 2019, BSP remitted P4 billion in dividends to the Treasury.

Government-owned and controlled corporations are required by law to remit half of their profits to the Treasury. — Luz Wendy T. Noble

Is monitoring work-from-home schemes a good idea?

We are a medium-sized private enterprise. After more than one week of the COVID-19 lockdown, we’ve finally realized that work-from-home is an option for some of our employees. Now, my boss is asking me to prepare a policy and a system to help us monitor the performance of our workers. Please give me your advice. — Jurassic Park.

All of us need only four people in our lifetime: A banker, an actor or actress, a minister or priest, and a mortician. One for the money. Two for the show. Three to get ready. And four to go!

Nothing more than that. In the workplace we don’t need micro-managers, also known as “helicopter managers.” If you add to that, there will be confusion, delays, and unnecessary waste all over. That’s why you don’t need the police or the military to monitor people, unless in case of emergency or if you live in a communist state.

Take journalism, for example. We don’t need to be monitored every second, every minute or every hour of the day and yet we come out with the paper first thing in the morning, every day. You know people in the editorial department have done their jobs when you see their output first thing in the morning.

Do the management and owners of broadsheets and magazines do hourly monitoring of all activities inside the editorial room prior to publication? The answer is, no. They don’t do that. That’s because they trust the editors, columnists, writers and other editorial workers to do their job.

All the editors need to do is to come up with general guidelines to ensure objectivity in reporting — which is to present both sides of the story. Otherwise, you’ll be accused of bias. Of course, as you can imagine, we live in an imperfect world. There are many crooks in this planet that are making journalism a bad occupation.

And so my short answer to your question is this: You don’t need to micro-manage people. You don’t need to constantly look over the shoulders of your workers.

Instead, agree on mutually-acceptable performance standards. Then, create a simple, daily key performance target that your workers submit to you via email at the end of their “work shift,” even if they’re at home. Of course, there are online performance monitoring tools that you can buy from the market except that it may not be tailored to your requirements, but they could be too expensive.

You may consider it later, depending on the complexity of the tasks and after you’ve trained your managers and workers to be independently responsible. Otherwise, you may well use the remaining weeks of the lockdown to experiment giving your people the chance to work without their bosses constantly micro-managing them.

EMPOWERMENT AND ENGAGEMENT
Gone are the days of command-and-control management. It’s an old strategy useful only in case of war and other national emergencies, like what we have now. Micro-managing people is useful only when you are working for certain government agencies including the health department, interior department, labor department, among others, but not to point of choking the bureaucracy.

Command-and-control style management is not appropriate in the private sector. The best approach is to empower and engage people up to certain limitations, depending on the nature of the task, timeline, standards, and budget. I know part of the problem is that some management people refuse to let go.

Old habits never die. Fortunately, the COVID-19 lockdown allows us the opportunity to let go of command-and-control. It’s the best time to change. Do all things in a crisis that you can’t do during normal times. Given the current lockdown, which could possibly be extended, I would like you to consider the following measures that you can adjust depending on your particular situation:

One, use email to bring all workers in on decision-making. It’s the best way to have a record of the pros and cons in solving issues of major importance. Undoubtedly, soliciting the opinion of people is a key factor in coming out with the best possible solution. If you’re the boss, avoid the temptation of rejecting the views of the majority without good reason.

Two, let all team members take care of themselves. This includes reminding goof-offs and other dead wood to do their jobs well. If there’s a strong sense of collaboration within the team, it is always the best way to handle problem workers. Generally, peer pressure is always a good approach rather than the boss disciplining the problem employee.

Last, reward and recognize the work of the team. Show appreciation for the team effort rather than the work of one person. If necessary, you can do that later during the annual performance appraisal when you get the opportunity to discuss those milestones or challenges with the individual fast-tracker or freeloader.

TWO SIDES OF EMPOWERMENT
There’s no doubt that people managers who devolve a certain amount of authority and responsibility to their people get the best results. “Empowering leaders had more creative and helpful employees” and “employees were more likely to trust leaders who they perceived as more empowering.” That’s according to a group of researchers who published their findings in a 2018 article in the Harvard Business Review.

Researchers Allan Lee, Sara Willis and Amy Wei Tian also discovered that “feeling empowered doesn’t always boost routine task performance.” At times, it can does “more harm than good” such as when “empowering leaders burden their employees and increased their level of job stress.”

Therefore, just like other approaches, you can do well if you will apply the right balance under the right context. Beyond anything else, any attempt to monitor work performance during the lockdown goes a long way, but only if you’re paying attention to their best interests.

Remembering birthdays or discussing worker hobbies can go a long way. After all, they’re not clock-watching robots.

ELBONOMICS: Do all things in a crisis that you can’t do during normal times.

 

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