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House to probe vehicle testing scam

The House transportation committee will investigate private motor vehicle inspection centers over complaints about a money-making scheme.

House Deputy Speaker Rufus B. Rodriguez has filed a resolution seeking to probe the centers for allegedly failing some cars so they can charge them for another round of inspection.

The centers “intentionally fail certain vehicles to be tested a second time after payment of another fee,” Mr. Rodriguez said in a statement on Friday. He said the probe was also in line with Speaker Lord Allan Jay Q. Velasco’s order.

The testing and retesting fees “add to the heavy burden already being experienced by everyone on account of the prevailing COVID-19 health emergency,” he said.

Mr. Rodriguez asked the Transportation department and Land Transportation Office to suspend the inspection program during the pandemic. The hearing was scheduled for Wednesday. — Charmaine A. Tadalan

Military commander hit for terror comment

A senator on Friday hit a military commander for accusing a journalist of aiding terrorists, which he said was “totally unnecessary” amid debates on the legality of the Anti-Terrorism Act.

Southern Luzon Commander Antonio G. Parlade Jr. earlier accused the journalist of aiding terrorists by spreading lies after she wrote a story about a tribal group filing a lawsuit questioning the law.

“Accusing a journalist of ‘aiding the terrorists by spreading lies,’ assuming that such comment was accurately attributed to him, surely does not help the government to convince the magistrates of the Supreme Court to rule in its favor,” Senator Panfilo M. Lacson said in a statement on Friday.

The National Union of Journalists of the Philippines accused the military officer of threatening those questioning the law and journalists covering the news.

“Coming at a time when the Solicitor General is defending the Anti-Terrorism Act of 2020 against 37 petitions, particularly on the issue involving ‘overbreadth doctrine’ among others, such remarks from a high-ranking military official is uncalled for and totally unnecessary,” Mr. Lacson said.

The Supreme Court last week held its first hearing on the lawsuits.

Mr. Lacson was among the key backers of the law that also considers attacks that cause deaths or serious injury, extensive damage to property and manufacture, possession, acquisition, transport and supply of weapons as acts of terrorism.

The law also allows the government to detain suspects in jail for 14 days without a warrant of arrest, much longer than the three days previously provided by law. — Charmaine A. Tadalan

Baguio hotels allowed to accept leisure travelers

Hotels and other such establishments in Baguio City have been allowed to accept leisure travelers, at the city’s request and in apparent recognition of the contact tracing systems put in place by the summer capital, the President’s Spokesman Herminio L. Roque, Jr. said Friday.

The Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) approved the city government’s request to allow its hotels and similar establishments to accept bookings for leisure travel, subject to the observance of health and contact-tracing protocols.

“The IATF granted the request of Baguio City for its hotels and other accommodation establishments to accommodate leisure travelers while under the General Community Quarantine (GCQ) classification,” Mr. Roque said in a statement.

The task force placed the Cordillera region under the stricter form of quarantine after it recorded a spike in coronavirus cases, with its hospital bed occupancy nearing levels deemed to be moderate risk. A more contagious coronavirus strain was detected in the region last month.

“Given Baguio City’s visitor information, registration and contract tracing system and the assurance to undertake stricter measures to make it work, we objectively endorsed the request to the IATF for guidance,” Tourism Secretary Bernadette Fatima T. Romulo-Puyat said in a statement Friday,

Ms. Rommulo-Puyat said Baguio City was authorized to accept domestic travelers “in recognition of its institutionalized protocols on registration.”

The city requires its visitors to have a Visitor Information and Travel Assistance (VISITA) account.

The Tourism department has been directed to come up with guidelines for the accommodation of guests for leisure and business in areas under various levels of community quarantine, she said. — Kyle Aristophere T. Atienza

Deployment of 25 tunnel-boring machines signals big push for subway completion

The Transportation department said Friday that 25 tunnel-boring machines from Japan will be deployed to accelerate construction of the country’s first subway.

“To accelerate the construction of the Metro Manila Subway Project and to minimize road interference during construction, we will be using not just one but a fleet of 25 Japanese-made tunnel boring machines or TBMs,” Transportation Undersecretary for Railways Timothy John R. Batan said in a statement.

The department unveiled on Friday the 74-ton cutter head of the project’s first tunnel boring machine.

“On the following days of February 2021, the remaining parts of the machine will arrive and will be transported at the site for assembly,” the department said. “This will be followed by the conduct of a mandatory operational test prior to the lowering and main drive underground that is expected to be done in the third quarter of this year.”

The cutter head is positioned in the forward section of the TBM and rotates to break, cut and grind rocks and soil.

Six TBMs will be fielded in the first three sections of the subway, which are targeted for partial operations by the end of the year.

Transportation Secretary Arthur P. Tugade said he will continue to press the government’s private partners to finish the portion of the subway due to open for partial operations by December.

“I know that I have pressured you, and I have pressured you so hard in order to have this project. But as I thank you, I assure you, I will pressure and push you harder so that we will achieve the partial operability of the project at least in my target, December of this year; at worst, in the target of the contractors, February of next year,” he said.

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

“It will further stretch across North and South zones of the Greater Capital Region,” the department said.

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

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

Regions authorized to realign funds for hog transport to Metro Manila

AGRICULTURE Secretary William D. Dar said his regional officers have been authorized to realign budgets to facilitate the transport of hogs to Metro Manila, in order to augment the capital’s pork supply and head off a potential food-inflation crisis.

In a statement Friday, Mr. Dar said Agriculture regional directors have been directed “to mobilize available resources in transporting hogs, and other meat products. He said spending clearance also covers the hiring of “reefer vans, trucks, vessels, (and) cold storage.”

The regional directors have also been tasked to negotiate with hog producers and logistics partners to transport surplus stocks of pork from parts of the Visayas and Mindanao whih are free of African Swine Fever (ASF), the hog disease that has decimated the Luzon animal population.

“We have to map out sources of hogs, lead the negotiations between farmers and traders, and facilitate documentary requirements such as certifications and local transport permits so we can bring in cheaper hogs and pork products immediately to Metro Manila,” Mr. Dar said.

President Rodrigo R. Duterte recently signed Executive Order (EO) No. 124 which implemented a price cap on pork and chicken products sold in Metro Manila public markets, in force for 60 days.

The Departent of Agriculture (DA) recommended the price caps be implemented starting Feb. 8, Monday, to provide the industry a “grace period” to ispose of stocks acquired before the EO was signed.

Under EO 124, the retail price of pork shoulder (kasim) is capped at P270 per kilogram, while the price of pork belly (liempo) is at P300 per kilogram. The price celing for whole chicken is P160 per kilogram.

The EO was signed after pork prices topped P400 per kilogram in Metro Manila. — Revin Mikhael D. Ochave

BoI says Italian investors planning ASEAN expansion via PHL

Italian businesses are hoping to make the Philippines a jumping-off point for regional trade, the Board of Investments (BoI) said Friday

“Italy intends to expand its businesses in the ASEAN region with the Philippines as its top priority,” the BoI said in a statement.

Enrico Letta, president of Associazione Italia-ASEAN, announed Italy’s plans in the region at a Jan. 26 webinar, “Italy-Philippines: Discovering the Opportunities,” according to the BoI.

BoI Officer-in-Charge Director Lanie O. Dormiendo said the interest from Italy represents a “vote of confidence” in the Philippines as an investment destination.

She expressed the hope Italian firms will participate in the infrastructure and garments industries.

Ms. Dormiendo at the webinar touted the Philippines’ strengths as a source of natural fibers like abaca and pineapple.

“For garments, opportunities are in sustainable clothing, cutting-edge design high-performance garments, using smart materials out of natural fibers such as abaca and pineapple,” she said.

Philippine Ambassador to Italy Domingo P. Nolasco also noted available opportunities for the Italian investors in aerospace, renewable energy, and machinery.

“In 2020, investment promotion agencies-approved Italian investment totaled P114.7 million,” the BoI said. “Total investments from Italy since 2015 amounted to P1.32 billion as of last year.”

The BoI said notable Italian investors in the Philippines include the leather-goods brand Fendi, the luxury goods group Stefano Ricci SpA, and Novabala JV Corp., which is the design and construction contractor for the P486 million Novaliches-Balara Aqueduct 4 via the La Mesa Reservation in Quezon City. Italpinas Development Corp. is also developing low-cost housing in Mindanao.

Citing preliminary data from the Philippine Statistics Authority, the BoI said the Philippines imported $584.4 million worth of goods from Italy, against exports of about $200 million in 2020. —Beatrice M. Laforga

PSE warns public on unauthorized use of logo, name

THE Philippine Stock Exchange, Inc. (PSE) warned investors about a fraudulent scheme using its name and logo that targets foreigners residing in the country.

In a memorandum posted on its website, the stock market operator said it had received information that the PSE’s name and logo were used in falsified documents that certify stock ownership of several listed shares.

The PSE added that its name and logo were also used in documents that display the fees or charges to facilitate the liquidation of stock investments.

“The PSE does not certify shareholdings in listed companies because the records of legal and/or beneficial owners are in the possession of the stock transfer agent appointed by the listed firms,” the memorandum said.

“Fees and taxes incurred in a sale transaction, on the other hand, are deducted from the proceeds of the selling transaction,” it added.

According to the memorandum, the documents are included in an illegal scheme that targets foreign residents.

It added that there is no existing agreement between the PSE and the Philippine Deposit Insurance Corp., which allows the former to assign an officer of the insurer to confirm an individual’s shareholdings.

The PSE refutes any obligation or liability for any action that may have been taken as a result of the fraudulent scheme, it said.

The memorandum warned the public to be vigilant and cautious regarding any documents that have supposedly come from the PSE, adding that verification should be done.

“If names of individuals are indicated on documents, it would be prudent to get in touch with PSE or the company they are supposedly connected with to ascertain their affiliation,” the PSE said.

“Check the contact details used such as the office address, e-mail address, telephone number to determine whether these information are accurate and official,” it added. — Revin Mikhael D. Ochave

AC Energy, Citicore unit to develop 50-MW Pampanga solar farm

Ayala-led AC Energy Corp. and its unit ACE Endevor, Inc. inked a shareholders agreement with a subsidiary of Citicore Power, Inc. to build a 50-megawatt photovoltaic solar power in Arayat and Mexico, Pampanga.

In a regulatory filing on Friday, AC Energy said that the solar facility is scheduled to go online in November 2021.

Under the agreement, Citicore Solar Energy Corp. will have 50% of the shares in the solar project’s special purpose vehicle Greencore Power Solutions 3, Inc. AC Energy and ACE Endevor will hold 45% and 5%, respectively.

The joint venture supports AC Energy’s goal to be the growth platform of the Ayalas’ energy group, the firm said. With the solar facility, AC Energy would have the chance to earn “stable dividend income” from the project.

The greenfield stand-alone solar farm, it said, is seen to “provide daytime power to the Luzon grid.”

Based on the agreement, the Citicore unit will provide engineering, procurement and construction services through its affiliate entities, including Megawide Construction Corp. or any of its subsidiaries.

Its parent firm Citicore or its units will be responsible for project development, and operations and maintenance.

In a separate disclosure Friday, AC Energy said that it would be extending a loan of up to P2.675 billion to Greencore to finance the design, engineering, construction, procurement and supply, operation and maintenance of the 50-MW solar facility.

“The loan will be secured by a real estate mortgage over the Borrower’s (Greencore’s) real assets in favor of the Company (AC Energy); a mortgage and pledge over the shareholding of the shareholders of the borrower, and the cash flows of the project,” AC Energy said.

In another filing on Friday, it said that it had subscribed to the common shares of Greencore for P2.25 million. The shares, at 2.25 million, will be issued out of Greencore’s unissued capital stock.

“The subscription will be used by Greencore to partially fund the development and construction of (the) solar plant,” AC Energy said.

In December, AC Energy approved nearly P10.81 billion in funding for a solar project and a wind farm. In a previous disclosure, the company said that its board of directors had approved the financing of a solar project in Arayat and Mexico, Pampanga through a secured loan. The funding, which amounted to P3.33 billion, was said to cover the full project cost.

On Friday, shares in AC Energy in the local bourse inched up 0.14% or 0.01 centavos to finish at P7.22 apiece. — Angelica Y. Yang

Roxas Holdings records P239-M first-quarter net loss

Due to limited transactions, listed sugar and ethanol producer Roxas Holdings, Inc. (RHI) posted an attributable net loss of P239.1 million for the first quarter of its fiscal year that ended on Dec. 31 last year.

In a regulatory filing on Friday, the company said its net loss for the first quarter expanded from the P33.89-million losses a year earlier after taking into consideration P247 million in non-recurring gain from an investment sale.

In the first quarter, its consolidated revenues amounted to P352 million, 83.9% lower than the P2.18 billion posted in 2019 due to the sale of its sugar mill and ethanol plant in Negros Occidental.

RHI Chairman Pedro E. Roxas said the company’s remaining business units during the quarter incurred operating losses because there were few transactions for the period, adding that the business is seasonal in nature.

“We started the distillery operations of our San Carlos Bioenergy, Inc. in October 2020, while milling in Central Azucarera Don Pedro, Inc. began in mid-December 2020, after completing the off-season repairs and maintenance activities of these plants. This is the inherent seasonality in the Group’s operations which coincides with the availability of sugarcanes,” Mr. Roxas was quoted as saying.

For RHI President and Chief Executive Officer Celso T. Dimarucut, the company remains positive that the operations of its remaining businesses will fare better amid the challenges faced by the industry.

He said one of these challenges is the higher-than-usual precipitation projected for 2021 due to the La Niña phenomenon.

“Total ethanol production for the first quarter ended Dec. 31, 2020 of 5.656 million liters was 75% higher than the 3.256 million liters produced during the same period last year,” Mr. Dimarucut was quoted as saying.

“The group expects to complete next quarter the arrangements with major creditor banks to term out existing short-term loans,” he added.

On Friday, RHI shares at the stock exchange rose 0.63% or one centavo to end at P1.61 apiece. — Revin Mikhael D. Ochave

SM Prime Holdings lists P10-B bonds

LISTED PROPERTY developer SM Prime Holdings, Inc. has listed its retail bonds on Friday, marking the country’s first bond listing for 2021 at the Philippine Dealing & Exchange Corp. (PDEx).

In a regulatory filing, the company said it held a virtual listing ceremony of its latest fixed rate bonds, series M and N, which offered P10 billion – or an aggregate principal amount of P5 billion, and an oversubscription option of P5 billion.

The interest rate of SM Prime’s peso-denominated series M bond is at 2.4565% due in 2023, while series N is at 3.8547% due in 2026.

“This issuance is the second drawdown from the company’s P100 billion debt securities program under shelf registration registered with the Securities and Exchange Commission,” the disclosure said.

The joint issue managers for the offering are BDO Capital & Investment Corp. and China Bank Capital Corp. The two companies also join BPI Capital, First Metro Investment Corp., and SB Capital Investment Corp. as joint lead underwriters for the issuance.

In a previous disclosure, SM Prime Chief Finance Officer John Nai Peng C. Ong said the proceeds of the retail bonds would fund the company’s expansion plans. The company’s series M and N retail bonds received a rating from the Philippine Rating Services Corp. of “PRS Aaa,” which is the highest rating assigned by the local debt watcher.

As of September 2020, SM Prime posted a 48% decline in its consolidated net income to P14.4 billion. The company’s consolidated revenues fell 29% to P60.7 billion.

On Friday, shares in SM Prime at the stock exchange rose 2.95% or P1.10 to close at P38.35 apiece. — Revin Mikhael D. Ochave

LANDBANK hiring contract workers to help national ID holders open bank accounts

Land Bank of the Philippines (LANDBANK) has set aside P153 million to hire at least 1,000 contract workers, who will help newly-registered national ID holders open their first bank accounts.

LANDBANK President and CEO Cecilia C. Borromeo said representatives from the bank will help man the registration centers for the national ID, known formally as the Philippine Identification System (PhilSys). The contract workers will assist registrants without bank accounts in opening one, the Department of Finance (DoF) said in a statement Friday.

The bank will offer its Mastercard prepaid card to unbanked PhilSys registrants for free. The cards can be used to withdraw or transfer funds, and can receive government cash assistance should the ID holders be eligible. They will eventually be usable in contactless fare systems the government is planning to implement.

LANDBANK’s agent banking partners, including cooperatives, associations, small and medium-sized enterprises and other private entities will also help process bank account applications and conduct the mandatory Know-Your-Customer (KYC) data gathering.

Ms. Borromeo said the bank has also teamed up with 136 local government units (LGUs) so far.

The Philippine Statistics Authority (PSA) has said the 82% of the 10.5 million Filipinos that were pre-registered for the national ID last year did not have bank accounts.

Helping the unbanked open accounts is one of the goals of the national ID, aiding potential depositors in meeting stringent bank ID requirements. Joining the banking system is expected to promote inclusiveness, by putting new account holders on the path to developing a credit history.

Bank accounts tied to the national ID are also expected to facilitate government cash aid distribution.

Ms. Borromeo said physical distancing and health protocols will continue to be observed in the registration centers during the pandemic.

“Our participation in the PhilSys registration is in line with the Duterte administration’s financial inclusion agenda of bringing unbanked Filipinos to the financial mainstream, and is in response to (Finance Secretary Carlos G. Dominguez III’s) directive for us to accelerate our shift to digital-based transactions to prepare us for the new economy,” she was quoted as saying in a report to the DoF. — Beatrice M. Laforga

Peso rises after Dec. inflation spikes to 4.2%

The peso closed stronger Friday after inflation hit 4.2% in January, raising the prospect of possible monetary action that would jolt interest rates out of their recent lows.

The peso strengthened by one centavo to P48.07 against the dollar Friday, its high for the day, according to the Bankers Association of the Philippines.

The peso opened at P48.10 and hit a low of P48.11.

The currency was stronger by one centavo from its P48.08 close a week earlier.

Dollar volume dropped to $606 million Friday, from $1.162 billion Thursday.

The peso was at its strongest level since the P47.99 close on Sept. 23, 2016, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

He attributed the stronger peso to the market’s reaction to the higher-than-expected inflation reading released Friday morning.

“Inflation data at the two-year high of 4.2% could increase the odds of any upward adjustment in the policy rate from the current record low of 2%,” he said via Viber.

“However, the recent spike in inflation has been largely due to higher food and transportation prices, or mostly supply-side factors or reduced supply, amid signals that any change in monetary policy could only happen if there are second-round inflation effects in terms of higher prices of other affected products and services,” he added.

The Philippine Statistics Authority (PSA) reported Friday that headline inflation rose to 4.2% last month, against the 3.5% in December and 2.9% in January 2020.

January was the fourth consecutive month of rising inflation, coming off a level of 2.5% as recently as October. It was also the highest reading since the 4.4% posted in January 2019.

The January inflation reading exceeded the 3.6% median estimate of a BusinessWorld poll of 16 economists last week, beating even the high forecast of 4.1%. The official target range for the year is 2-4% as set by the Bangko Sentral ng Pilipinas (BSP).

The PSA said prices of the most heavily-weighted element of the consumer basket – food and non-alcoholic beverages – rose 6.2% in January from 4.8% the month prior.

The category has a 38.98% weighting in the Philippine consumer price index basket, the lagest by far.

Mr. Ricafort added that the peso appreciated after manufacturing data showed a smaller year-on-year contraction towards the end of 2020. It also received a boost from the gains in the stock market, where the benchmark Philippine Stock Exchange Composite index (PSEi) rose 1.7% to 7,109.18.

The peso also strengthened ahead of US payrolls data for January on Friday evening Philippine time, a trader said via e-mail. — Beatrice M.Laforga

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