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Coronavirus cases nearing 484,000

The Department of Health (DoH) reported 1,776 coronavirus infections on Friday, bringing the total to 483,852.

The death toll rose by eight to 9,364, while recoveries increased by 285 to 449,330, it said in a bulletin.

There were 25,158 active cases, 82.6% of which were mild, 8.6% did not show symptoms, 5.4% were critical, 2.9% were severe and 0.48 were moderate.

Bulacan reported the highest number of new cases at 99, followed by Davao City at 96, Quezon City at 83, Rizal at 80 and Laguna at 64.

DoH said seven duplicates had been removed from the tally, while one recovered case was reclassified as death. Five laboratories failed to submit their data on Jan. 7.

More than 6.5 million people have been tested for the coronavirus in the Philippines as of Jan. 6, according to DoH’s tracker website.

The coronavirus has sickened about 88.5 million and killed 1.9 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.
About 63.6 million people have recovered, it said. — Vann Marlo M. Villegas

House to start cha-cha debates next week

The House of Representatives will start debates on a resolution proposing changes to the 1987 Constitution on Jan. 13, a congressman said on Friday.

Party-list Rep. Alfredo A. Garbin, Jr., who heads the House committee on constitutional amendments, said the panel would tackle the resolution filed by Speaker Lord Allan Q. Velasco last year.

The lawmaker said the resolution only proposes changes to economic provisions of the charter.

“Permission is being sought from the Filipino people to entrust to Congress the enactment of exceptions to the general rules stated in particular economic provisions of the 1987 Constitution,” Mr. Garbin said in a statement.

The 33-year old Constitution bars foreign investors from owning more than 40% of certain industries.

He said the coronavirus pandemic had made the matter of easing economic provisions of the Constitution urgent, as domestic markets struggled to boost the economy during the lockdown.

The committee seeks to finish deliberations before year-end, in time for a plebiscite coinciding with the 2022 national elections, Mr. Garbin said. — Kyle Aristophere T. Atienza

Senator seeks dismissal of illegal drug case

Detained Senator Leila M. de Lima has asked a Muntinlupa City court to dismiss her second drug-related charge for insufficiency of evidence.

In an 82-page filing, Ms. de Lima said the prosecution had failed to present evidence that would show that the case involved illegal drugs.

The lawmaker also said the prosecution had failed to prove that she conspired with her co-accused to commit illegal drug trading.

Ms. de Lima said the prosecution in the past three years had failed to specify the type of drugs and quantity involved in the alleged illegal drug trade.

The senator, who is a staunch critic of President Rodrigo R. Duterte, filed a similar pleading this week for one of her three drug trafficking cases.

Ms. de Lima is on trial for allegedly abetting the illegal drug trade in the country’s jails when she was still Justice secretary. She was accused of extorting millions of pesos from a drug lord that she allegedly used to finance her senatorial campaign in 2016.

She has been jailed at the Philippine National Police Custodial Center in Camp Crame since February 2017. — Vann Marlo M. Villegas

Senate to probe sex for gadgets

A senator has filed a resolution seeking to investigate the rising cases of sexual exploitation of children by online predators amid a coronavirus pandemic.

“The delay in face-to-face classes will continue to expose grade school and high school children to these local and foreign sexual predators lurking on the internet,” Senator Imee R. Marcos said in a statement on Friday.

She cited reports that some students have been selling sensual photos and videos of themselves to finance their distance learning.

“The problem may have already grown to involve not only individual perverts but organized crime syndicates,” Ms. Marcos said in the resolution. — Charmaine A. Tadalan

Cash aid for employees to resume

The Employees Compensation Commission (ECC) will resume giving cash aid to employees who got the coronavirus after suspending the program in September over budget constraints.

“We are ready to open again for cash assistance,” ECC Executive Director Stella Z. Banawis told an online news briefing on Friday.

Ms. Banawis said the ECC expanded its cash assistance to cover COVID-related sickness, but had not anticipated the number of applicants that will avail the program.

She said only the cash aid for COVID-19 was suspended, while sickness, medical and funeral benefits and death pension had not been affected.

This comes after reports from labor group Federation of Free Workers that the ECC had denied applications of its members who got infected with the coronavirus.

More than 8,000 people applied for the cash aid, and the commission had processed at least 4,000 beneficiaries, Ms. Banawis said. — Charmaine A. Tadalan

Jollibee to open 28 stores in North America in 2021

Jollibee Food Corp. (JFC) plans to open 28 stores in North America in 2021 as part of its expansion efforts in the continent.

In a statement on Friday, the company said it targets to open 19 stores in the United States and nine in Canada to increase its North American store network.

For 2020, Jollibee said it had opened 16 stores in North America despite the coronavirus disease 2019 (COVID-19) pandemic. The new branches brought Jollibee’s total store network in North America to 62, with US stores accounting for 48, while those in Canada amounted to 14.

Maribeth Dela Cruz, the Jollibee group’s president for North America, said the company recorded double-digit sales growth across North America despite the challenges caused by the pandemic.

“We would not be weathering these hard times without the support of our customers. They’ve shown up for us, and now we want to show up for them,” Ms. Dela Cruz said.

“We’re incredibly grateful for the continued support we’ve received from across these regions and are thrilled to deliver a small spark of joy for them and their families,” she added.

According to Jollibee, some recent openings include its first branch in San Antonio, Texas in late December 2020, which marked the company’s first store in the south-central part of the US. The company also opened its 21st store in California, situated along Mira Mesa Boulevard in San Diego.

“The new store is situated in the area’s biggest retail hub, near Mira Mesa Mall and in close proximity to the University of California San Diego, the Marine Corps Air Station Miramar and Scripps Memorial Hospital,” it said.

Further, Jollibee recently opened another branch at Yonge Street in Toronto, Canada, which the company said is a major retail hub with heavy pedestrian traffic.

The company said it plans to have 300 stores in North America by 2024.

Back home, JFC shares at the stock exchange fell 0.05% or 10 centavos to close at P192.50 apiece on Friday. — Revin Mikhael D. Ochave

SEC offers relief for pandemic-hit financing, lending firms

The Securities and Exchange Commission (SEC) has offered regulatory relief to financial and lending companies to help them cope with the effects of the coronavirus disease 2019 (COVID-19) pandemic.

In a Dec. 22 memorandum circular, SEC Chairman Emilio B. Aquino said one of the regulatory relief measures for companies is the relaxation of the required maintaining net worth of financial companies under Republic Act No. 8556 or the Financing Company Act (FCA).

Under the implementing rules and regulations (IRR) of FCA, financing companies are required to have a minimum paid-up capital of P10 million for those in Metro Manila and other first class cities; P5 million for those in other classes of cities; and P2.5 million for those in municipalities.

The law also requires a financing company to put up a minimum additional capital for each branch or extension office. An additional capital of P1 million should be allotted for those in Metro Manila and other first class cities; P500,000 for other classes of cities; and P250,000 for municipalities.

“The commission hereby provides the following regulatory reliefs to financing companies and lending companies to help the covered entities manage the effects of the COVID-19 pandemic,” Mr. Aquino said in the circular.

Another relief that companies can opt to avail is the lower required investment in financing and lending activities, the SEC said.

Based on the rules, more than 50% of a financing company’s fund must be allocated or invested in its financing activities, while under the IRR of Republic Act No. 9474 or the Lending Company Regulation Act (LCRA), lending companies must use at least 51% of their funds for direct lending purposes.

The other relief that companies may avail is the relaxed period in the commencement of financing and lending operations under the IRRs of LCRA and FCA.

Under the said laws, a financing and lending company must start its operations within 120 days from the release of its certificate of authority to operate.

Mr. Aquino cited Republic Act No. 11494 or the Bayanihan to Recover As One Act (Bayanihan 2) as the reason for the regulatory relief measures. The law gave the SEC the authority to assist the industry in managing risks and potential losses amid the pandemic.

Meanwhile, the SEC said companies that avail of the measures are required to send documents such as a letter showing the intention to avail of the relief, the specific relief chosen and the reason behind choosing it, and a resolution from the company’s board of directors that approves the use of a regulatory relief.

“The company’s application to avail of the regulatory reliefs shall be subject to the commission’s evaluation, which shall be on a case-to-case basis,” Mr. Aquino said.

Recently, the SEC allowed the staggered booking of credit losses to help licensed financing companies, lending companies, and accredited microfinance non-government organizations during the pandemic.

It allowed the staggered booking of credit losses on or after Dec. 31, for a maximum of five years using the straight-line amortization method as seen in the profit or loss statement. — Revin Mikhael D. Ochave

AC Energy sets earlier date for stock rights offering

Ayala-led AC Energy Philippines, Inc. has moved the rights offer period for its stocks to this month, saying it deemed the earlier date to be “prudent” since its existing regulatory approval requires a January 2021 completion.

In a regulatory filing on Friday, the listed energy company said it would open its stock rights offering (SRO) on Jan. 18 until 22, from the first work week of February previously.

The move comes as the company announced that it had obtained approval from the Securities and Exchange Commission (SEC) on Jan. 5 to change its name to AC Energy Corp.

AC Energy is offering 2.27 billion common shares at an offer price of P2.37 apiece. The offering would consist of two rounds to be followed by a domestic institutional offer.

The net proceeds of the offering will be used by the company “to partially fund the development of its various power projects, inorganic growth opportunities as and when they arise, and its other general corporate requirements.”

AC Energy said it had amended its offer period for the offering following the approval of its executive committee. The listing of the stocks is set on Jan. 29.

“The Ex-Rights Date of 8 January 2021, and Record Date of 13 January 2021 remain the same,” the firm said.

The firm said that initially it scheduled the offer period from Feb. 1 to Feb. 5 to “ensure widest dissemination and participation.”

“Given the imminent Ex-Rights Date and Record Date, ACEN deemed it prudent to finalize the dates based on the existing regulatory approval that requires a January 2021 completion,” it said.

The revised dates are subject to the approval of the SEC and the Philippine Stock Exchange (PSE), as well as other conditions. The company said the dates may be adjusted at its discretion and the joint lead underwriters.

The company reiterated that its rights offering is exempted from the registration requirement of the securities code. Because of this, the offer shares are not registered with the SEC.

“Any further offer or sale of such offer shares is subject to registration requirements under the SRC (Securities Regulation Code) unless such offer or sale qualifies as an exempt transaction,” AC Energy said.

In a separate disclosure, the company said the change in its corporate name is meant to align with the expanded scope of business resulting from the consolidation of the international operations of parent firm AC Energy, Inc. via a tax-free exchange through an assets-for-share swap.

The assets-for-share swap will be reviewed by the SEC, and is subject to fair market valuation.

Last year, AC Energy’s top official Eric T. Francia said that the company would undergo corporate restructuring in the coming years. The restructuring would begin with a stock rights offering in the first quarter this year.

He added that the firm aimed to raise $2 billion in equity to exceed its 2025 target to reach 5- gigawatts of installed energy capacity. Part of the plan is to generate around 50% of energy from renewables in four years’ time.

On Friday, shares in AC Energy at the stock exchange shed 2.37% to close at P7.82 apiece. — Angelica Y. Yang

GCash operator raises over $175M in fresh capital; valuation nears $1B

Globe Fintech Innovations, Inc. (Mynt), operator of mobile wallet GCash, has raised more than $175 million in fresh capital from investment firm Bow Wave Capital Management, Ayala-led Globe Telecom, Inc. said.

“Mynt raised over $175 million in fresh capital from Bow Wave and its existing shareholders in multiple tranches, with post-money valuation of the final tranches at close to $1 billion,” Globe said in an e-mailed statement.

Globe said the fresh funding for its fintech arm will “further spur the growth of financial inclusion and the digitization of payments and financial services in the Philippines.”

The investment by Bow Wave, a close-ended private equity fund with a mandate to invest globally in online and mobile payment ecosystem companies, “will translate to a minority equity interest in Mynt,” Globe said.

The telco said its fintech arm had recorded a total transaction value of over P1 trillion last year.

“So far, GCash has empowered over 33 million Filipinos with digital financial tools and services through its innovative mobile wallet,” it noted.

Mynt President and Chief Executive Officer Martha Sazon was quoted as saying: “This investment from Bow Wave is a validation of both what we have accomplished as well as the potential of GCash in unlocking digital services in the Philippines.”

“The pandemic has acted as a catalyst in highlighting the importance of digital finance in society today and with this investment from Bow Wave, we look forward to further living out our vision of finance for all, enabling democratized access to payment and financial services to every Filipino,” she added. — Arjay L. Balinbin

Jobs recovery plan highights safe workplaces, confidence, small-business loans

The labor department said its recovery blueprint for employment will enlist multiple government agencies to bring about safer workplaces, improved business and consumer confidence, and the extension of credit to small businesses.

The three-year “whole-of-government” plan is launching this year to address unemployment in the wake of the coronavirus pandemic, Labor Assistant Secretary Dominique R. Tutay said Friday.

The blueprint is known as the National Employment Recovery Strategy (NERS), which the government hopes will support legitimate employment and entrepreneurship in the “new normal,” she said at a televised briefing.

Ms. Tutay said the Department of Labor and Employment (DoE) is preparing the recovery plan with the Department of Trade and Industry (DTI) and the Technical Education and Skills Development Authority (TESDA). Various other agencies were also consulted in the course of drafting the plan.

The top piority is the “safe re-opening” of business establishments as well as the safety of workers and consumers, Ms. Tutay said. “Second on the list is the restoration of business confidence, consumer protection,” she said. The program will also offer “reboot packages” or extend low interest-rate business loans to micro, small, and medium enterprises to help them recover from the pandemic.

The program also aims to upskill the workforce, particularly in digital skills, she said.

Ms. Tutay said the government is hoping that the Build, Build, Build infrastructure program and the Balik Probinsya program help restore economic activity in the countryside.

Some 420,000 workers were permanently displaced by the coronavirus pandemic, she said, arising from the adoption of more flexible work arrangements or alternative work scheme, or have closed temporarily.

She said jobs in health care, construction and business process outsourcing are the most in demand. — Kyle Aristophere T. Atienza

CREATE needs to pass in Jan. for firms to realize tax benefits by April filing – DoF

FINANCE Secretary Carlos G. Dominguez III said the bill lowering corporate income taxes needs to get past the bicameral conference committee by the end of January to allow enough time for companies to file their returns in April with the new rates, some of which apply retroactively to the second half of 2020.

“We hope that the Congress can pass CREATE before the end of January 2021 as this measure is crucial for businesses to continue operating, retain their employees, and create more jobs,” Mr. Dominguez said in a statement on Friday.

Both chambers of Congress took a month-long break on Dec. 19 for the holidays, and will resume regular session on Jan. 18.

The Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) bill forms part of the government’s economic recovery package, featuring a scheme to reduce the corporate income tax rate to 25% effective July 2020, from 30% currently, while streamlining tax incentives to make them more time-bound and performance-based.

“This also provides taxpayers ample time to comply with adjustments to their returns due to the lowering of income taxes effective July 2020 before the tax filing season ends in April 2021,” Mr. Dominguez added.

The measure is expected to cost the government P251 billion in foregone revenue over two years – P133.2 billion this year and P117.6 billion in 2022, if the Senate version prevails in bicam session.

Senate Bill 1357 also provides an outright reduction of corporate income tax for small businesses to 20% starting July 2020 from 30% currently, while all other companies will have their tax rates gradually trimmed by one percentage point each year from 2023 to 2027 until the rate hits 20%.

The House of Representatives approved its version, House Bill 4157, in September 2019, when the measure was still known as the Corporate Income Tax and Incentives Rationalization Act (CITIRA). It was since repositioned as an economic recovery measure during the pandemic.

“CREATE is really about trusting the private sector. Instead of passing funds through what tend to be less efficient government programs, this will leave the money in the private sector’s hands to revitalize their businesses,” Mr. Dominguez said.

Mr. Dominguez said the economic team also hopes lawmakers can pass within the year two more tax reform measures covering the property valuation system and the taxation of passive income and financial intermediaries. — Beatrice M. Laforga

Meralco to increase power rates in January

Residential customers in Metro Manila will be charged more for power in January, with the typical household expected to pay an additional P55, Manila Electric Co. (Meralco) said Friday, citing higher generation charges.

In a statement, Meralco said that the January electricity rate is up P0.2744 per kiloWatt-hour (kWh) compared to its December level.

“Despite the increase, this month’s overall rate is still more than P0.70 per kWh lower than January 2020’s rate of P9.4523 per kWh,” Meralco said.

The utility said the typical household is one consuming 200 kWh. Households consuming 300 kWh, 400 kWh, and 500 kWh will see bill increases of P82, P110 and P137, respectively.

The generation charge rose P0.2058 to P4.4574 per kWh in January. Meralco attributed the rise to power supply agreement (PSA) and independent power producer (IPP) rates which increased by P0.2723 per kWh and P0.2428 per kWh, respectively.

PSA-sourced power accounts for 56.4% of Meralco’s energy requirements while IPPs are responsible for 37.3 %.

Meralco said PSA and IPP rates rose because Luzon’s peak demand fell by 252 megawatts (MW) in December due to reduced consumption as a result of colder temeperatures and the holidays.

“Similarly, the demand for power in Meralco’s franchise area in December fell to its lowest level since lifting of the ECQ (enhanced community quarantine) in May. Lower demand led to fixed costs from power suppliers being spread over lower energy volume, resulting in higher effective generation rates to consumers,” Meralco said.

Meanwhile, rates at the wholesale electricity spot market (WESM) – which accounted for 6.3% of Meralco’s energy requirement – decreased by P0.6135 per kWh.

Transmission charges for residential customers decreased by P0.0236 per kWh due to Meralco’s mandatory refund of transmission over-recoveries as directed by the Energy Regulatory Commission. Taxes and other charges were also reduced by P0.0078 per kWh.

On Dec. 29, the regulator approved the collection of a feed-in tariff allowance (FIT-All) of P0.0983 per kWh which would take effect in the next billing cycle. This led to an increase of P0.0488 per kWh in Meralco’s FIT-All this month.

Meralco said that the collection of the universal charge-environmental charge of P0.0025 per kWh remained suspended, as directed by the ERC.

Meralco’s distribution, supply and metering charges remained unchanged for 66 months, after implementing the registered reduction in July 2015.

Meralco reiterated that it did not earn from pass-through charges, such as the generation and transmission charges.

“Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP (National Grid Corp. of the Philippines). Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government,” Meralco said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

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