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Local pork industry takes hit with the African swine fever

It isn’t only Covid-19 that is sending jitters throughout the international community. The global pork industry today is feeling the strain of a health scare in the form of the African swine fever (ASF). In Indonesia, officials confirmed the first outbreak of the ASF in December, spurring fears that it could reach Australia and lead to stricter biosecurity measures. At least 30,000 pigs have died in the province of North Sumatra where the pig population is 1.2 million.

In the Philippines, the Department of Agriculture (DA) confirmed cases of the fever in Kalinga and Benguet this month, saying laboratory examinations from five areas in the Cordillera – Tanudan, Bulanao, and Tabuk towns in Kalinga, and Beckel (La Trinidad) and Camp 1 (Tuba) in Benguet – have tested positive. Davao Occidental, meanwhile, is under a state of calamity, with up to 10,000 pigs affected by ASF in some of its municipalities.

Don Marcelino, one of the towns in Davao Occidental, has already implemented a total ban on the transport and sale of hogs, all pork products, and by-products since January 31, after approximately 1,000 pigs died due to the disease. “Eight barangays within Don Marcelino ang naka-cordoned off para di kakalat ang disease (were cordoned off so that the disease will not spread),” Agriculture Secretary William Dar said in a media briefing.

Local pork industry takes a hit

The Philippines is the world’s 10th-largest pork consumer. It is also the world’s 7th-biggest pork importer. It comes as no surprise then that the local swine industry is one of the country’s most lucrative trades, worth Php 200 billion or US $5 billion and contributing 18.28% to the country’s agricultural output in 2015 – second only to rice.

This is why disease outbreaks cause serious economic and production losses. (Environmentalist and Best Alternatives Campaign founder Gregg Yan pegs the losses at Php 1 billion or US $20 million per month.) Once an animal contracts ASF, it has little chance of surviving coupled with a huge chance of spreading the virus to other animals. Affected animals are thus usually destroyed to prevent undue suffering and to contain the spread of disease.

Not a public health threat

The African swine fever is a viral disease which affects domestic and wild pigs. It can be spread through live or dead hogs, plus anything which has come in contact with tainted meat: knives, wastewater, and even an undisinfected worker’s hands. In fact, Marivic F. Hubac, Head Executive Assistant and ASF spokesperson of the Province of Davao Occidental, says that “our close contact with ASF-infected pigs are said to be the wide cause of its widespread.” Symptoms of the highly-contagious disease include high fever, vomiting, and diarrhea. There is no approved vaccine to this illness that kills about 80 percent of the pigs it infects.

Countries with confirmed cases are subject to international trade restrictions aimed at reducing the risk of introduction of the disease through trade. Because ASF only impacts pigs and not humans, it is therefore not a public health threat, according to the US Department of Agriculture. It cannot be transmitted to humans through contact with pigs or pork.

Mitigation measures

The Philippine Department of Agriculture (DA) and Bureau of Animal Industry (BAI) are attempting to stamp out the virus through improved biosecurity, quarantine, area-wide bans, and preventive culling.

In Davao Occidental – where a majority of the hog raisers are backyard and outdoor farms – the Governor has banned swill feeding, or the practice of feeding leftover food to pigs. There is also an ongoing ASF awareness campaign as well as a total lockdown on the movement of pigs and the distribution and/or sale of pork and processed pork products within the province. Hubac shares that owners whose pigs were affected by the DA’s protocol guideline (or those within a kilometer radius from the infected area) were advised to surrender their hogs to the barangay center for culling and proper disposal.

The Agriculture Department is paying Php 5,000 per head of culled pig, regardless of age, and is providing Php 30,000 worth of loans to the affected hog raisers.

Supply and demand

Isa Q. Tan, editor of Asian Pork Magazine, says the incidence of ASF has made the dynamics of supply and demand in the local pork industry pretty strange. While infected areas are limiting the movement of pigs, non-infected areas are enacting a pork and pork products ban as a preventive measure. This has resulted in an undersupply in the latter and an oversupply in the former.

Tan says the Metro Manila, Central Luzon, and Calabarzon areas, which together make up the biggest market for pork, have already been very much affected by ASF. “The losses have been staggering. While right now there seems to be enough supply of pork, from what I’ve been hearing this will not be the case a few months from now. Many farms have either lost their animals due to the disease or have been depopulating because they fear they would get hit by it and are cutting their losses short.”

Containment through biosecurity

The pressing concern now is the management, control, and containment of the virus. Biosecurity, or the methods that are used to stop a disease or infection from spreading from one person, animal, or place to others, is the main tool against ASF. It is not, however, universally implemented in the Philippines, even among commercial producers.

“There are rumors that ASF has spread to other parts of Mindanao. The biggest fear would be how ASF might affect GenSan, the biggest pork-producing region in Mindanao, and whose production is predominantly ‘exported’ to other provinces, particularly Cebu. Key production areas like Northern Mindanao and Davao City could also be affected,” Tan adds.

The Bureau of Animal Industry urges hog raisers to immediately report disease incidents to their respective Municipal, City or Provincial Veterinary Office or call the DA Crisis Management Task Force at 09951329339 (Globe) at 09208543119 (Smart).

Social Enterprises in the Philippines get a boost from Australia, UNDP, and PhilDev

The Innovation for Social Impact Partnership (ISIP) project held an Impact Boost Camp last January 3 to 7 across various locations in Metro Manila. ISIP is a project co-implemented by PhilDev and UNDP in the Philippines, with support from the Australian Embassy in the Philippines.

Thirty social enterprises (SEs) participated in talks and workshops on topics like impact management, business modeling, and design thinking, which were given by organizations such as Business Call to Action, Paymaya, and PricewaterhouseCoopers. The SEs were also able to pitch to investors from Manila Angel Investors Network, ICCP Ventures, xchange, and Vilgro.

“The Impact Boot Camp has shown us that there are a lot of promising social enterprises in the Philippines. Given the right support and access to funding, we believe that these enterprises can scale, grow their businesses and help eradicate poverty in the country,” said Paco Sandejas, Chairman at PhilDev.

Titon Mitra, UNDP’s country representative said they “believe that this will help create a sustainable stream of social enterprises in the country that will collectively contribute to the achievement of the Sustainable Development Goals.”

ISIP is now currently accepting applicants for the third batch of their Social Impact Accelerator, which will open in March. Participants of the boot camp are highly encouraged to apply.

Moody’s cuts PHL growth forecast

MOODY’S Investors’ Service has cut its growth forecast for the Philippines while also trimming its outlook for some Asian countries as some sectors are expected to take a hit due to the coronavirus disease 2019 (COVID-19) outbreak.

The debt watcher reduced its 2020 gross domestic product (GDP) growth forecast for the Philippines to 6.1% from the 6.2% it gave last year, which it had affirmed in a research note last month.

“The reduction in the Philippine forecast reflects our view of spillovers from slower growth in the rest of the region, primarily the large impact of the COVID-19 outbreak in China,” Moody’s Senior Vice-President Christian de Guzman said in an e-mail.

“Nevertheless, the forecast has been maintained at a relatively high level because of our baseline expectation that much of the economic impact will be limited to the first quarter and that normalization of activity will resume later in the second quarter,” Mr. De Guzman said.

The Philippine economy grew 5.9% in 2019, slower than the 6.2% print the prior year and missing the downward-revised 6%-6.5% target of the government.

The government set a target range of 6.5%-7.5% economic growth this year.

Economic managers have said they see minimal economic impact from the virus, but this will also depend on how long the outbreak will persist. Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno has said the outbreak could dent the economic growth in the first half by an average of 0.3%.

Meanwhile, the National Economic and Development Authority said the economic impact could further rise to as much as 0.7% of GDP if the virus lingers until December, based on a scenario where inbound Chinese tourists will be cut by 100% and foreign tourists coming in will be reduced by 10% from the baseline during the given period.

Moody’s said they see a disruption in economic activity in the first quarter due to the virus, but the impact to growth will depend on countries’ exposure to China.

In the report, it trimmed its 2020 GDP growth forecast for China to 5.2% from 5.8%. It likewise lowered its projections for other countries within the region, including Thailand at 2.3% (from 3.1%) and Vietnam at 6.4% (from 6.7%).

“We have flagged that the downside risks to the regional economies will be more severe should the outbreak grow to pandemic levels,” Mr. De Guzman said.

He, however, said the Philippines’ growth will be supported by base effects, with spending seen to spike after being a laggard to expansion last year.

“The Philippines will benefit from ‘base effects’ from a ramp-up in government spending this year as compared to last year, which was negatively affected by the four-month delay in the passing of the budget,” he said.

In its report, Moody’s said a prolonged duration of the COVID-19 outbreak will result in “significant second-round effects,” which may include severe supply chain disruptions.

It added that tourism hubs relying mainly on Chinese visitors, which are predominantly in the Asia-Pacific, will be heavily hit by the outbreak’s impact. — Luz Wendy T. Noble

‘Duterte Harry’ renews attacks on critical media

By Norman P. Aquino Special Reports Editor
and
Charmaine A. Tadalan Reporter

PRESIDENT Rodrigo R. Duterte dislikes the press and he’s not afraid to show his disdain for it.

The tough-talking Philippine leader had on numerous occasions unleashed a stream of profanity against dissenting journalists whom he accused of bias and unfair reporting.

Journalists have also been targeted by Mr. Duterte’s Facebook supporters — known bloggers with huge followings and who have fiercely defended him and his policies.

The fight for press freedom goes beyond the Philippines — one of Southeast Asia’s few remaining corners of relatively free and open press — as the world comes to terms with a new breed of populist leaders who wallow in positive coverage and dismiss their critics as “fake news.”

Mr. Duterte has slammed media outlets such as the Philippine Daily Inquirer, ABS-CBN and Rappler for criticizing his government, particularly his war on drugs that has killed thousands of suspected pushers.

The Justice department in February last year indicted Rappler founder Maria Ressa for cyber-libel based on a complaint by a businessman over an article published in 2012, months before the cyber-crime law was passed. The journalist has said the allegations were unfounded.

A month later, she was arrested again for allegedly violating the ban on foreign ownership in media.

Local and international media watchdogs and human rights groups have condemned the arrest of the former CNN investigative reporter. New York-based Committee to Protect Journalists has called on Mr. Duterte’s government “to cease and desist this campaign of intimidation aimed at silencing Rappler.”

Rappler, which Mr. Duterte has called a “fake news outlet,” is also appealing a 2018 order by the Securities and Exchange Commission to close its operations for violating foreign-equity restrictions in mass media.

The news website, which the presidential palace has banned from covering Mr. Duterte’s events, also faces tax evasion cases together with its founder.

Just recently, Mr. Duterte’s government has renewed his attacks on ABS-CBN Corp., with his chief government lawyer asking the Supreme Court to revoke the media network’s franchise, which is expiring in March.

Solicitor General Jose Calida accused ABS-CBN of using an “elaborately crafted corporate veil” to allow foreign investors to take part in its ownership.

Like Rappler, ABS-CBN allegedly violated the ownership restriction when it issued Philippine depositary receipts to foreigners.

GRUDGE
The media network has called the lawsuit “an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service.”

Presidential spokesman Salvador S. Panelo has said that while Mr. Duterte’s displeasure at ABS-CBN might have a basis, he had nothing to do with the lawsuit. The President also did not have a hand in the Rappler suits, he said.

Critics have said the issue of ABS-CBN’s franchise has become both personal and political. Mr. Duterte had openly harbored a grudge against the broadcaster.

In 2017, he accused ABS-CBN of swindling after it refused to run political ads he had paid for during the 2016 presidential campaign.

Mr. Duterte had also criticized the broadcaster for airing news stories about his alleged secret bank accounts. He said he would block the renewal of the company’s franchise if he had his way.

“I will not let it pass,” he said in 2018. “Your franchise will end. You know why? Because you are thieves.”

The Center for Media Freedom and Responsibility on Feb. 11 called the case against the network a “dangerous attempt to control and silence free press.”

“After the questionable ouster of Ma. Lourdes Sereno as chief justice of the Supreme Court, Calida appears to believe he has found a magic formula,” the local media watchdog said in a statement.

“Barely two years after that sorry scandal, the quo warranto rears its ugly head a second time during this administration,” it added, referring to the Solicitor General’s lawsuit. It also said the lawsuit “clearly serves the interests of a sulking President.”

Michael Henry Ll. Yusingco, a lawyer and research fellow at the Ateneo de Manila University Policy Center, said the case against ABS-CBN should have been filed before a trial court.

“The proper move is to file this original action in the regional trial court and not the Supreme Court,” he said in an e-mailed reply to questions.

Mr. Yusingco also said the Duterte administration should have waited instead for the franchise to expire instead of seeking to revoke it in court.

“If Mr. Duterte does not want the franchise renewed, then he should present a convincing case to Congress,” he said. “He can also make a good case to the public. Then the latter can pressure their representatives in Congress to deny ABS-CBN a franchise to operate.”

Antonio A. Ligon, a business professor at De La Salle University in Manila, said the attacks on the broadcaster are not healthy for a democratic nation such as the Philippines.

“While the issue is not directly about press freedom, government refusal to extend the media network’s franchise could stifle press freedom,” Mr. Ligon, a lawyer, said by telephone.

GAG ORDER
“Mr. Duterte’s attacks on ABS-CBN are consistent with the Executive branch’s earlier attempts to harass critics, both media groups and opposition politicians, with legal cases,” Maria Ela L. Atienza, a political science professor at the University of the Philippines, said in an e-mailed reply to questions.

She added that the broadcaster’s only hope is in the Senate, which could cross party lines and assert its independence by pushing ABS-CBN’s franchise renewal.

Some lawmakers have argued that ABS-CBN may continue operating pending congressional debates on its franchise renewal.

Senator Grace Poe, who heads the Committee on Public Services, has said the government lawsuit only covers the network’s current franchise that is expiring in March.

A bill seeking to extend the network’s franchise for another 25 years had been filed as early as the 16th Congress under then President Benigno Simeon C. Aquino.

Several bills were refiled in the 17th Congress but did not progress at the House committee on legislative franchises until it adjourned in June 2019. At least 10 House bills seeking to extend the network’s franchise are pending at the same committee, led by the same chairman — Palawan Rep. Franz E. Alvarez.

Speaker Alan Peter S. Cayetano on Friday said the franchise renewal would not be tackled ahead of the March 2020 expiration as the chamber focuses on more important matters.

He said congressmen could look at the franchise extension by May or after the President’s annual state of the nation address in July.

The Senate, on the other hand, wants to exercise its oversight function over the ABS-CBN franchise by calling for an inquiry into the allegations against the media company.

Opposition Senator Franklin M. Drilon on Tuesday said the high court could not prevent the Senate from summoning the network’s officials as a committee inquires into the franchise “in aid of legislation.”

This comes after Mr. Calida asked the tribunal to issue a gag order on ABS-CBN pending the government’s lawsuit. (Read related article: “State lawyer asks SC to issue gag order vs ABS-CBN”).

“Such gag order, if ordered, cannot serve as a prohibition for ABS-CBN to appear and testify before the Senate panel,” said Mr. Drilon, who has filed a resolution seeking to extend the franchise.

“The Constitution and various jurisprudence have many times upheld the power of the Senate to conduct inquiries in aid of legislation and to exercise its oversight power,” he added.

Electronics exports growth in 2019 exceeded SEIPI target

ELECTRONICS exports jumped by 4% in 2019, exceeding the industry’s full-year growth target of 0-3% and reaching a new record, according to the Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI).

In a report, SEIPI said electronics exports stood at $43.32 billion in 2019, making up 61.6% of the country’s total commodity exports.

SEIPI President Danilo C. Lachica said in a mobile phone message on Tuesday this is the industry’s third straight year of record growth.

“The hardware demand for emerging and new technologies drove up the (overall) demand,” he said.

Emerging technologies that have boosted demand include 5G, wearables, Internet of Things, collaborative robots, augmented reality, and virtual reality.

Mr. Lachica said the semiconductor market is also recovering, after flat to negative growth last year due to a decline in smartphone parts.

SEIPI had set a conservative 0-3% growth target for 2019, citing the decline in smartphone demand and a possible escalation of the trade war.

But Mr. Lachica on Tuesday said the trade war had minimal impact on the industry.

The US and China in October 2019 announced the first phase of a trade deal, which was signed in January. The deal cut US tariffs on Chinese exports in exchange for China’s pledges to buy more American farm, energy, and manufacturing products.

SEIPI set a 5% growth target for 2020, which Mr. Lachica said could be downwardly revised due to supply issues after the COVID-19 outbreak caused preventative factory shutdowns in China. — Jenina P. Ibañez

BoC sees ‘huge’ drop in cargo volume in Feb.

THE Bureau of Customs (BoC) is seeing 50% year-on-year drop in trade volume in the first half of February, as the coronavirus disease 2019 (COVID-19) outbreak disrupted global supply chains.

“I just got the figures, the first 15 days of February, as compared to the first 15 days of February last year, is a little over a half only of the TEUs (twenty-foot equivalent units), containers coming in. We’re concerned but we believe that the slack will be taken up in other markets,” Finance Secretary Carlos G. Dominguez III told reporters on the sidelines of an event in Pasay City on Tuesday.

Sought for comment, BoC Assistant Commissioner and Spokesperson Vincent Philip C. Maronilla told BusinessWorld that the 50% decrease in volume is considered “huge” for the agency’s collections, as it saw declines in cargo from China, the center of the COVID-19 outbreak.

Marami rin nanggaling from other countries (other countries also reported declines) but because China is our biggest trading partner, a big chunk of the volume decline was goods coming from China,” Mr. Maronilla said via mobile phone on Tuesday.

He said the decline was first observed in February, as the outbreak continued to spread from mainland China to other countries.

“We’ll have to see with how global economy would react and bounce back because we need to recognize this thing (outbreak) has affected the entire global economy already,” Mr. Maronilla said, who declined to disclose specific figures.

However, the Finance chief remained confident the government will hit its revenue collection target this year, despite worries over how the COVID-19 outbreak may impact the economy.

“We’re going to make our target. The Bureau of Internal Revenue (BIR) has all the tools, manpower and systems to collect that amount,” Mr. Dominguez said.

The BIR is tasked to collect P2.576 trillion this year, accounting for 78% of the P3.3-trillion goal for the country’s two biggest tax collection agencies. The Customs bureau is tasked to collect the remaining P731.235 billion.

BIR Deputy Commissioner for Operations Arnel S.D. Guballa earlier said that some businesses already reported a decline in sales due to the Taal Volcano eruption and the outbreak, which may yield lower tax collections in the first quarter.

Mr. Dominguez said he expects the drop in business revenues, which may lead to lower tax collections, will be “temporary until this coronavirus contagion is [contained].”

Collections of the BIR and Customs make up the bulk of the country’s revenues, with other collections coming from the Bureau of the Treasury and nontax revenue from other offices, such as privatization proceeds and fees.

These revenues are meant to fund the government’s P4.1-trillion spending program this year, with other funding to come from local or foreign borrowings, as the country still operates on a budget deficit. — Beatrice M. Laforga

UK trade envoy sees ‘strong’ potential for FTA with Philippines

THE POTENTIAL for a free trade agreement (FTA) with the United Kingdom (UK) is “quite strong” after its exit from the European Union (EU), the UK trade envoy to the Philippines said.

UK Prime Minister’s Trade Envoy to the Philippines Richard Graham told reporters on Tuesday that the country is prioritizing Singapore and Malaysia among Southeast Asian countries prior to possible negotiations with the Philippines.

“I think the potential for a free trade agreement is quite strong in the future,” he said.

The UK officially exited the EU on Jan. 31, and its transition period will continue until Dec. 31, 2020.

Mr. Graham said trade between the Philippines and the UK is complementary, as the Philippines exports agricultural products and imports aerospace, consumer goods, and high-tech products from the UK.

While FTA talks have not yet begun, Mr. Graham said the UK is looking to open up the UK market further to the Philippines by tailoring its existing preferential trade agreements.

The Philippines currently has preferential market access to the EU through the Generalized Scheme of Preferences (GSP+) for the duty-free entry of up to 6,274 products into countries in the union.

“Because we have trading arrangements under what’s called GSP+… we will roll that over on the 31st of December. It’s rebranded as a UK GSP, but it will be exactly the same,” Mr. Graham said.

“Over time, the ambassador and his team will be able to review this with (Trade Secretary) Ramon Lopez and his team, and see if there are opportunities to improve this and to tailor the existing arrangements for the UK-Philippines.”

The UK trade envoy said some other countries in Europe are protective of their agriculture industries as they locally produce similar products with Philippine exports.

“But we don’t. So it may be easier for us to be more open to the Philippines on that side, and we might want a bit more access on the services side and in other sectors,” Mr. Graham added.

Beyond what he calls the medium-term GSP plan, there is an opportunity for an FTA and further investments.

“I think there is some very good opportunities to build on existing investment, particularly in the BPO (business process outsourcing) sector, but also some manufacturing,” he said, noting that tax rules should be clear and favorable.

Central bank Governor Benjamin E. Diokno last week said dollar remittances, outsourcing and tourism receipts would probably shield the Philippine economy from the short-term effects of Brexit.

“Uncertainty that may arise from the post-Brexit transition may contribute to a short-term spike in market volatility and risk aversion, which could lead to a temporary flight to safe-haven assets,” Mr. Diokno has said.

Mr. Diokno said gross placements from the UK accounted for 0.7% of the country’s foreign direct investments from January to August last year, while foreign portfolio investments from the UK accounted for 29.7% of the total. — Jenina P. Ibañez

Ortigas Land allots P15-billion capex for three residential projects this year

By Denise A. Valdez, Reporter

ORTIGAS Land (formerly Ortigas & Co.) is setting capital expenditures for 2020 at P15 billion, as it scheduled to launch three new residential projects by year’s end.

In a briefing in Pasig City yesterday, Ortigas Land President and Chief Executive Officer said the company is mapping out an aggressive expansion plan in the coming years, which would drive up its net income by double digits in the near term.

“We expect to grow double-digit in the next five to six years in terms of net income. Maraming opportunities (There are plenty of opportunities),” he told reporters.

He added that the capital expenditure this year is close to P15 billion, and the plan is to allocate P15-20 billion for annual spending in the medium term.

“Hopefully we can sustain two to three projects, hopefully more, (every year),” Mr. Ysmael said.

Ortigas Land launched yesterday a 51-storey residential project along ADB Ave. at the Ortigas central business district called Residences at The Galleon, which is expected to rake in P16 billion in total sales.

The project involves 43 residential floors, one amenity floor, five floors of podium parking and two floors of podium retail — overall seen to help increase the residential capital value in Ortigas in the future.

A one-bedroom and two-bedroom unit at the tower would cost P24-46 million, while a penthouse unit would cost P102-162 million, making the building the highest priced product in Ortigas Center. “It sets a new pricing standard for a product of this kind in the Ortigas business district,” Mr. Ysmael said.

The other projects that Ortigas Land will be launching this year are a second Maven tower at Capitol Commons, which will be launched within the second quarter, and another residential project in Circulo Verde, scheduled for the third quarter.

“This year is the most prolific year so far in our history as we are set to launch three projects.. The launch of our newest residential tower empowers us to set sail for new horizons as Ortigas Land, and anchor our position as a premier property developer…,” Mr. Ysmael said.

Also within the year, Ortigas Land will be demolishing its headquarters along Ortigas Avenue to move near Estancia Offices in Capitol Commons. The one-hectare site of the current headquarters will then be redeveloped into a property with office, hotel and retail segments.

Meanwhile, Mr. Ysmael said the company was looking at the possibility of launching a real estate investment trust (REIT) or conducting an initial public offering (IPO) to fund its expansion plans.

“REIT and IPO are two tools that are available to us to help us fund the aggressive expansion that we are undertaking right now. I cannot give you any timing, but we are studying the possibilities,” he said, noting Ortigas Land had started discussions with its shareholders regarding the plan.

Ortigas Land booked a net income of P2.3 billion in 2019, surging from P100 million when it started in 2014, Mr. Ysmael said.

State lawyer asks SC to issue gag order vs ABS-CBN

By Vann Marlo M. Villegas, Reporter

THE Office of the Solicitor General (OSG) asked the Supreme Court (SC) to issue a gag order to prohibit parties in the quo warranto petition against ABS-CBN Corp. and ABS-CBN Convergence, Inc. to release statements on the merits of the case.

In a statement, the OSG said that while the release of statements by ABS-CBN did not violate the sub judice rule as they are similar to press briefers done by the court, the corporation later “engaged in propaganda.” The sub judice rule restricts parties, witnesses, the public, litigants and judges from commenting on pending cases.

“However, not content with issuing its official statement on the petition, ABS-CBN thereafter engaged in propaganda in a clear attempt to elicit public sympathy, sway public opinion, and, ultimately, to influence the resolution of the case,” Solicitor General Jose C. Calida said in the statement.

The OSG filed the very urgent motion for the issuance of a gag order on Tuesday. It cited instances where ABS-CBN violated the rule such as the release of its video “Quo warranto petition laban sa ABS-CBN, ano ang ibig sabihin? (Quo warranto petition against ABS-CBN, what does it mean?),” which “tend to influence public opinion and unfairly encourage the pre-judgment of the instant case.”

It also noted two reports aired on TV Patrol, the network’s news program, in which the company justified its KBO Channel operation.

The state lawyers also noted the commentaries on the network’s online arm and statements issued by its artists, other personalities and various media outfits on the petition.

Mr. Calida said all issues should be raised properly to the courts.

“The Supreme Court has ruled that justices and judges are not immune from the pervasive effects of media. Respondents belong to the biggest media conglomerate in the country whose artists and talents, impervious to the law, freely publish their comments,” Mr. Calida said.

“We want a gag order to be issued in this case so that facts can be decided upon evidence produced in court, and that the determination of such facts should be uninfluenced by bias, prejudice, or sympathies,” he added.

SC Public Information Chief Brian Keith F. Hosaka said the en banc ordered ABS-CBN to comment on the motion in five days upon its receipt.

The OSG on Feb. 10 filed the quo warranto petition seeking to cancel the franchises of ABS-CBN and its unit, saying it allowed foreign investors by issuing Philippine depositary receipts, which it said violated the Constitution.

It also said that the company went beyond the mandate of its franchise by “broadcasting for a fee” in its KBO Channel without approval of the National Telecommunications Commission, and that ABS-CBN Convergence had committed “ingenious corporate layering scheme.”

ABS-CBN belied the claims of the OSG, saying it complied with the law and secured all requirements and approval for its operations.

Business groups ‘fervently’ ask lawmakers: address franchise issue

BUSINESS groups on Tuesday urged Congress to give pending bills seeking to renew ABS-CBN Corp.’s franchise “balanced, fair and timely consideration.”

The joint statement was issued by Makati Business Club, Management Association of the Philippines, Institute of Solidarity in Asia, and Institute of Corporate Directors.

They said they were “fervently” urging both houses of Congress “to judiciously address any issues raised against the company while taking serious account of the bedrock issues of media freedom and free enterprise, which allow businesses to flourish for the overall welfare of our economy and our people.”

They issued the statement after the Senate Committee on Public Services said on Monday that it would no longer wait for the transmittal of the bill on the franchise of ABS-CBN from the House of Representatives as it plans to begin deliberation of the application for renewal.

The committee will hear the ABS-CBN franchise on Feb. 27. Congress will go on a nearly two-month break starting March 14.

Senator Grace S. Poe-Llamanzares, who chairs the committee, initially sought an inquiry on the allegations that Solicitor General Jose C. Calida cited in his quo warranto petition against ABS-CBN and its unit ABS-CBN Convergence, Inc.

The senator’s decision comes even as legislative rules provide that franchise bills should emanate from the House of Representatives.

She said that in practice, the Senate may begin tackling a bill simultaneously with the House, citing as examples the annual general appropriation bill and tax measures.

Separately, Finance Secretary Carlos G. Dominguez III said on Tuesday that the state was “upholding the rule of law” when the OSG moved to have the network’s franchise cancelled. He said the case might even be taken positively by investors.

“A lawsuit has been filed, there’s a claim by the OSG that there’s a violation of the regulation, in fact it might be a constitutional violation. I think if that’s proven, the investors will say, ‘oh these guys are upholding the rule of law’,” he told reporters on the sidelines of an event in Pasay City when asked about the possible impact of the issue to investor sentiment.

Mr. Dominguez said he would not give further comment as the issue does not involve the Department of Finance.

“That’s not under my department,” he said. — Arjay L. Balinbin and Beatrice M. Laforga

Jollibee reports 14% fall in earnings to P6B last year

JOLLIBEE Foods Corp. (JFC) reported a 14.4% drop in earnings in 2019, dragged by a 25.1% decline in operating income.

In a regulatory filing yesterday, the listed restaurant operator said its attributable net income in the full-year 2019 was at P6.33 billion, lower year-on-year despite a 37.1% growth to P1.8 billion in the fourth quarter.

This came amid a 25.1% drop in year-to-date operating income to P5.87 billion, contrasting the 14.9% increase in system-wide retail sales to P243.79 billion, and the 11.4% rise in revenues to P179.64 billion.

For JFC’s fourth-quarter performance, operating income grew 11.6% to P1.81 billion, driven by a 23.2% improvement in system-wide retail sales to P72.72 billion, and a 17.7% increase in revenues to P52.43 billion.

“Practically all brands in the Philippines improved their same store sales growth from (third quarter) to (fourth quarter) led by Jollibee, Red Ribbon, Greenwich and Burger King,” JFC said.

“Same store sales growth in the Philippines was driven by the continued growth in volume of customer visits in the stores compared to a year ago and strong growth in delivery business for all brands,” it added.

It also noted The Coffee Bean and Tea Leaf (CBTL), which JFC bought last year, contributed 9.4% to the group’s revenue growth for the fourth quarter after adding 1,173 stores to its global network.

“2019 was a very tough year for JFC, but the resilience and determination of our people have kept driving the business forward,” JFC President and Chief Executive Officer Ernesto Tanmantiong was quoted as saying in the statement.

He added the rise in customer visits in its stores, the healthy return on investment from its network, and the strong performance of its delivery business are among the factors JFC is holding on to pull up its earnings moving forward.

It is also looking to keep the recovery pace of its Red Ribbon product supply in the Philippines and its Smashburger business in the United States, which are two of the biggest heavyweights of the company’s earnings in the past quarters.

“We look forward to a much stronger sales and profit performance in 2020 and the years ahead even as we consolidate the financial performance of CBTL into our financial results,” Mr. Tanmantiong said.

JFC was able to open 497 new stores last year, where 273 are located in the Philippines and 224 are abroad. This resulted in an increase of 32.1% in its total store network from in 2018.

Total capital spending last year reached P10.1 billion, which went to the opening of new stores and renovation of existing stores and supply chain facilities.

This year, JFC is targeting to open 600 new stores, where 250-300 will be in the Philippines and 300-350 will be abroad. It is hoping 2020 will also mark the start for its international business segments to generate greater organic store expansion than its Philippine business.

Among the brands JFC controls are Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Highlands Coffee, Hard Rock Cafe, Smashburger and CBTL.

Shares in JFC at the stock exchange lost P3.60 or 1.91% to P185.20 each on Tuesday. — Denise A. Valdez

AllHome says 2019 income to hit P1B income

ALLHOME Corp. is projecting its net income to hit the billion mark in 2019 as it targets to reach 450,000 square meters of selling space by end-2020.

In a statement Tuesday, the Villar-led home development retailer said it expects its 2019 earnings to rise on the back of robust sales during the Christmas season.

“We are confident of ending 2019 with at least P1 billion in net income given that historically our fourth quarter performance is typically our strongest…” AllHome Vice-Chairman Camille A. Villar was quoted in the statement as saying.

“[O]ur stores would benefit from the holiday season as they are strategically located and are part of our innovative ecosystem of world class retail concepts surrounding it,” she added.

The listed firm also said it would increase its selling space by 137,000 square meters this year as part of its nationwide expansion program.

“We are set to bring AllHome to more locations in 2020,” AllHome Chairman Manuel B. Villar, Jr. said in the statement.

“Our expansion program is both sustainable and strategic by taking advantage of the synergies between our real estate companies such as Vista Land as well as the opportunities in the home improvement industry in the Philippines,” he added.

The company ended 2019 with 313,000 square meters of selling space in its nationwide network. When it conducted an initial public offering (IPO) last year, it said it was planning to expand to Metro Manila and its neighboring towns for the near-term, which would help double its market share of 7.1% as early as 2020.

“When it comes to inventory sourcing for our stores, it was fortunate that we were able to get funding for our working capital in October last year through our (IPO). We already secured the needed inventories for our planned store expansions as well as for our existing stores which can last between 6 to 8 months,” AllHome President Benjamarie Therese N. Serrano said in Tuesday’s statement.

With regard to the coronavirus disease 2019 (COVID-19), she said the company may feel its effect as China is a major inventory source for home development companies like AllHome. But should the epidemic last longer, the company is open to tap other countries for its sources.

“In case of a prolonged effect of the recent COVID-19 to China…, we can easily shift to our other existing sources like Vietnam, Indonesia, Malaysia, Thailand, India and even the United States. Our fresh funds indeed came in at the right time when it comes to our inventory management,” Ms. Serrano said.

Shares in AllHome at the stock exchange closed P10.78 apiece on Tuesday, up 82 centavos or 8.23% from the other day. — Denise A. Valdez