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DICT relaxes registration requirements for tower firms

THE GOVERNMENT is hoping more common towers will be built in the next few years to improve network coverage. — BW FILE PHOTO

By Arjay L. Balinbin, Reporter

THE Department of Information and Communications Technology (DICT) has eased the documentary requirements for common tower providers as the country remains in a state of public health emergency due to the coronavirus disease 2019 (COVID-19).

DICT Secretary Gregorio B. Honasan II issued Department Circular No. 011 on June 8 that relaxes the registration requirements for firms seeking to build telecommunication towers during the pandemic.

The new circular allows documentary submissions, in relation to application for registration as an “independent tower company,” that are “not notarized, authenticated, or true copy certified.”

Tower companies may also submit application documents to the DICT via e-mail.

Electronic documents must be accompanied by a cover letter “e-signed” by the company’s authorized representative.

Applications for registration and those who were registered as independent tower companies based on the provisions of this circular will be required to submit the “original, notarized, authenticated, and certified true copies” of their application documents within 30 days after the state of public health emergency is lifted.

The DICT may invalidate the certificate of registration issued to a tower company if it fails to submit such documents.

In an e-mailed statement on Monday, the DICT said it targets to reduce by 52% the permitting requirements for the construction of common towers.

Mr. Honasan signed on May 29 the policy guidelines on the co-location and sharing of telecommunication towers for cell sites.

Under the rules, tower companies engaged in the business of building or operating one or more shared towers must secure a certificate of registration from the DICT. Existing telecommunication companies with legislative franchise and certificate of public convenience and necessity (CPCN) are exempt from the requirement.

Tower companies should have relevant construction experience, registration, license, and financial capacity, equivalent to a category A contractor or higher of the Philippine Contractors Accreditation Board.

The department also said it has been “actively collaborating” with the Anti-Red Tape Authority (ARTA) and other government agencies in streamlining permitting requirements and procedures for tower companies.

“With streamlined procedures, we expect to speed up the rollout of common towers which will help us achieve our overall objective of enhancing wireless network coverage and the quality of ICT services across the entire country,” Mr. Honasan said in the statement.

To address this matter, the DICT said it expects to sign a joint memorandum circular with ARTA, Department of Public Works and Highways, Department of Interior and Local Government, Civil Aviation Authority of the Philippines and Department of Human Settlements and Urban Development “within the next months.”

Former Undersecretary Eliseo M. Rio, Jr. told BusinessWorld in a phone interview last month there were at least “27 requirements” that telecommunication companies must comply with to get permits to build cell sites.

He said only about five of those requirements are the responsibility of the National Government.

Only about 400 cell sites were built in the first quarter , Mr. Rio said, well below the government’s target of building 1,785 each quarter to meet the broader goal of 50,000 cell sites nationwide in seven years.

AMLC promises ‘thorough’ probe of Wirecard

MANILA — The Philippines’ anti-money laundering agency on Monday said it would conduct a “swift and thorough” investigation into scandal-hit German payment firm Wirecard AG and that it has drawn up an initial list of people and entities of interest.

Wirecard’s collapse last week and admission that $2.1 billion of its cash probably didn’t exist came after auditor EY refused to sign off on accounts for 2019, adding there were clear indications of an elaborate fraud involving multiple parties around the world.

The Southeast Asian country became involved after the German firm initially claimed it kept the $2.1 billion in two Philippine banks.

Mel Georgie Racela, executive director of the Philippines’ Anti-Money Laundering Council (AMLC), said entities of interest include three local firms — Centurion Online Payment International, PayEasy Solutions and ConePay International.

“As we continue to monitor developments and dig further, we may be able to identify more entities and individuals,” he told Reuters.

The Financial Times in March 2019 said the three firms were Wirecard partners.

Reuters could not determine their relationship to Wirecard. PayEasy did not immediately respond to e-mails and its telephone number was disconnected. Centurion’s number was out of service and ConePay could not be reached for comment, with no contact details on its website or its annual filing with the corporate regulator.

Wirecard Philippines did not immediately respond to a request for comment.

Philippine central bank governor, Benjamin Diokno, who heads the AMLC, declined to say who else the probe might look at.

The central bank has said no money from Wirecard had entered the Philippine financial system. The local lenders named by the German firm — Bank of the Philippine Islands and Banco de Oro Unibank — have also said it was not a client.

Wirecard Chief Executive Markus Braun was arrested in Germany last week and has been released on bail. German media have reported that German prosecutors will also seek the arrest of Jan Marsalek, its former chief operating officer.

Justice Secretary Menardo Guevarra told Reuters on Friday that Mr. Marsalek was in the Philippines on June 23 and immigration records showed he flew to China from Cebu the next day.

But Mr. Guevarra added that Mr. Marsalek was not captured, leaving the country on airport surveillance cameras and there is no record of a flight to China from Cebu on June 24, suggesting he may still be in the Philippines. — Reuters

ADB grants PHL loan to improve property tax valuation, collection

THE Asian Development Bank (ADB) approved a $26.5-million (P1.32-billion) loan to help local governments generate more revenues by digitizing property tax valuation and collection.

In a statement on Monday, ADB said the loan would fund the Local Governance Reform project, which seeks to improve property valuation systems of local government units, deploying digital tools for transparent reporting and updating tax maps.

“Local governments play a critical role in poverty reduction. Mobilizing local revenue in an efficient, equitable, and transparent manner is vital to local governments’ goal of delivering accessible, quality public services,” ADB Senior Public Management Specialist for Southeast Asia Robert Boothe said.

Under the project, local assessors will be trained to make them more competent through capacity development and knowledge partnerships.

“This new project will provide the digital tools, systems, and local staff training needed to help local governments raise revenue,” Mr. Boothe said.

The ADB said the project supports the government’s Comprehensive Tax Reform Program, particularly in raising the revenue-generation capacity of local governments.

The Finance department has been pushing for valuation reforms in the real property sector since last year, noting that local governments were losing P30.5 billion of revenues due to outdated real property values.

In November 2019, the lender approved a $300-million (P15-billion) loan for the first phase of the Local Governance Reform Program that aimed to improve the public service of local governments, enhance revenue collections and lower the cost of doing business.

“The new project will support the implementation of these policy reforms at the national and local levels,” ADB said.

FRANCE LOAN
Meanwhile, the Department of Finance (DoF) confirmed it has signed two loan agreements worth €250 million (P14 billion) with the Agence Française de Développement (AFD) or the French Development Agency to support programs that will expand the reach of financial services and boost private sector participation in infrastructure projects.

The government obtained loans for the Inclusive Finance Development Program worth €100 million (P5.6 billion) and the Expanding Private Participation in Infrastructure Program worth €150 million (P8.4 billion).

The loan agreements were signed on June 9 by Finance Secretary Carlos G. Dominguez III and French Ambassador to the Philippines and to Micronesia Nicolas Galey.

DoF said the two programs were co-financed with the ADB and will also strengthen the Philippine economy’s resilience post coronavirus disease 2019 (COVID-19) pandemic.

“The Philippine government is grateful to the AFD for co-financing with the ADB two programs supportive of President Duterte’s overriding goal of accelerating infrastructure development in order to spur high growth, attract investments, create jobs and achieve financial inclusion for all Filipinos,” Mr. Dominguez said.

DoF said the €100-million loan for the first sub-program of the IFDP will help finance efforts of the government to expand financial services in the country, help consolidate the institutional and regulatory environment as well as improve financial infrastructure and financial services across officials and regulatory agencies.

AFD will also extend €1.5 million in technical assistance to boost digital transformation of the country’s financial institutions especially in rural areas. The program will be implemented jointly by the central bank and the Rural Bankers Association of the Philippines.

Meanwhile, DoF said the €150-million policy-based loan for the infrastructure program would develop sustainable public-private partnership (PPP) projects, boost government’s support for PPPs, widen the pipeline of private sector-led projects and enhance legal and regulatory frameworks.

Meanwhile, the DoF said there are discussions for the Philippine government to secure more funding from the European Union’s Asian Investment Facility via a grant through the PPP Center.

“The proposed grant aims to facilitate and encourage the development of sustainable PPP projects at the local level, both in terms of promoting resilient infrastructure and in the mitigation of greenhouse gas emissions. Stimulating the development of health infrastructure will be a key component of the forthcoming European Union support,” it said.

The government borrows from local and foreign sources to plug its budget deficit, which is expected to hit 8.4% of gross domestic product this year. — Beatrice M. Laforga

ABS-CBN to be asked out of digibox

By Genshen L. Espedido, Reporter

THE National Telecommunications Commision (NTC) committed to the House of Representatives that it would order ABS-CBN Corp. to stop airing programs through digital television receivers or digiboxes.

During the joint hearing of the House Committees on Legislative Franchises, and Good Government and Public Accountability on Monday, NTC Commissioner Gamaliel A. Cordoba said that ABS-CBN’s airing through digiboxes is part of the cease-and-desist order issued by the agency on May 5.

Iyong pag-ere ng ABS-CBN ng digital TV sa Channel 43 ay kasama sa cease-and-desist order dahil ang franchise na ginamit nila for digital broadcasting ay ‘yung ABS-CBN,” he said, referring to the media network’s franchise that expired on May 4.

(ABS-CBN’s airing of digital TV on Channel 43 is part of the cease-and-desist order because the franchise used for digital broadcasting is that of ABS-CBN.)

To clarify, Anakalusugan Party-List Rep. Michael T. Defensor asked, “Kaya ang ibig mong sabihin, nu’ng ‘nag cease-and-desist ka, ‘yung frequency na ‘yan, kahit anong program na nandiyan, dapat huminto. At ang commitment mo ngayong hapon, ihihinto mo lahat ng programa?”

(What you’re saying is when you issued the cease-and-desist order, whatever program is in that frequency should stop. And your commitment this afternoon is to stop all programs?)

In response, Mr. Cordoba replied, “Yes, your honor.”

The digibox transmits channels exclusively airing cartoons, music videos, movies, Asian dramas and reruns of ABS-CBN programs, as well as a pay-per-view service called Kapamilya Box Office (KBO).

Mr. Cordoba said the NTC had received guidance from the Office of the Solicitor General that the agency must issue an alias cease-and-desist order against the continued broadcast of ABS-CBN programs through the digibox.

Ang advice po ng SolGen (Solicitor General) is for us to issue an alias cease-and-desist order reiterating po ‘yung aming naunang cease-and-desist,” he said.

(The SolGen’s advice is for us to issue an alias cease-and-desist order reiterating our previous cease-and-desist [order].)

ABS-CBN Chief Executive Officer and President Carlo Joaquin Tadeo L. Katigbak said that the network is willing to submit to the judgment of the NTC.

“Of course, we are willing to submit our judgment to the regulatory agency. ‘Yung hinihingi lang po namin (What we’re just asking for) is to make sure we are given due process so we have the right venue to express our position on this matter. And then whatever decision the NTC comes up with, we will respect the regulatory agency po,” he said.

Meanwhile, Cavite Representative Jesus Crispin C. Remulla said there is a “ripe” Ombudsman case against Mr. Cordoba for allowing ABS-CBN to operate through digibox eight weeks after its franchise expired.

“Mr. Chairman, I believe that we found a ground for this committee to file a case with the Ombudsman against Commissioner Cordoba because he has willfully disobeyed the power of Congress to issue franchises and allowing an entity to operate without a franchise and earn money at the same time,” he said.

Bulacan Rep. and Chairman of the House Committee on Good Government and Public Accountability Jose Antonio R. Sy-Alvarado said that the committee had taken note of Mr. Remulla’s remark, adding that the panels will take up the matter in the succeeding hearings.

To aid their decision in granting a new franchise to ABS-CBN, the two panels were discussing whether the media network committed a violation when it continued to air programs through digibox. The committees will convene again on Tuesday.

Ayala joint venture enters bidding war for Infigen

By Adam J. Ang

AN AFFILIATE of Ayala-led AC Energy, Inc. and Spanish distribution utility Iberdrola, S.A. are now in a bidding war to take over an Australian energy company after both firms have raised their offer prices.

Infigen Energy Ltd. apprised the Australian Securities Exchange on Monday of separate disclosures on the offer revisions made by both companies.

In its second supplementary bidder’s statement, UAC Energy Holdings, which holds a 13.4% stake in Infigen, said it increased its bid by A$0.06 to A$0.86 per security and removed all its conditions, making it wholly unconditional.

It gave security holders an option to accept the offer for all or some of their securities. It also said that security holders accepting its bid will be paid immediately within 10 business days.

Moreover, it said it intends to obtain an unsecured loan from AC Energy Australia Pte. Ltd. on arm’s length terms to help Infigen refinance its corporate facility should it be needed.

Later on, Iberdrola came up with a revised offer of A$0.89 per security, topping UAC Energy’s offer anew by A$0.03. It has yet to provide full details on this in a supplementary statement.

Presented with the improved bids, security holders were told by Infigen’s board to abstain from accepting any of the two offers.

“The board advises that, at this stage, Infigen Security Holders should take no action,” the company said in another disclosure.

Infigen’s board said it is “currently considering developments” and will provide a detailed response in an additional target statement soon.

Previously, it told company security holders to accept Iberdrola’s A$841-million offer, which was then 7.5% higher compared with UAC Energy’s A$777-million bid.

So far, between the two companies, the indirect Ayala firm has secured the Foreign Investment Review Board’s approval, which is one of the conditions of the takeover bids.

Still, Iberdrola had gained an upper hand in taking over Infigen as it entered into a pre-bid agreement with Infigen’s biggest security holder, London-based The Children’s Investment Fund Management (TCI), which agreed to sell 20% of its shares to the Spanish company if no higher bid emerges.

UAC Energy’s offer will close on July 24, while Iberdrola will receive acceptance to its bid until July 30.

Both companies swooped in to buy the renewable energy firm after its share price fell due to declining power prices in Australia and the challenges faced by renewables companies in connecting to a “shaky” grid, according to a Reuters report.

Iberdrola is one of the biggest global energy players having over 55 gigawatts (GW) of installed capacity in Spain, the United Kingdom, South America, and the United States. It powers around 34 million power consumers worldwide.

Meanwhile, UAC Energy is 75% owned by AC Energy. The remaining 25% is held by UPC\AC Renewables Australia, a joint venture of the Ayala unit and Hong Kong-based UPC Renewables Group.

The joint venture is currently developing four renewables projects in Australia.

Philippine-listed Ayala Corp. earlier in the month said that the Infigen investment is a “crucial move” for AC Energy’s regional expansion as it commits to reaching over 5 GW of attributable capacity, half of which will come from clean energy, in the next five years.

On Monday, shares in Ayala Corp. went down 2.93% to close at P762 apiece.

Departing POGOs told to settle taxes

THE BUREAU of Internal Revenue (BIR) will still go after Philippine offshore gaming operation (POGO) companies that are leaving the country to make them pay their tax obligations, the Finance chief said.

Citing a report from the BIR, Finance Secretary Carlos G. Dominguez III said the bureau would look into the POGO companies that were reportedly leaving to check if they have settled their tax dues.

He said one of the companies that expressed its intention to leave, Don Tences Asian Services Solutions Inc., is a licensed operator based in the country and have already paid its 5% franchise tax to the bureau.

However, the BIR will have to check the company’s account first for other possible tax dues before allowing it to shut down.

Mr. Dominguez told reporters via Viber that one of the POGOs — Don Tences Asian Services Solutions Inc. — is a local licensee and had paid its franchise tax, “and will be subjected to investigation before it will be given clearance to close by the BIR.”

He said the other POGO that has reportedly exited the country — SC World Development Group Ltd., which is based overseas — is not registered with the bureau.

“We still intend to go after its tax dues,” he said.

Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and Chief Executive Andrea D. Domingo over the weekend confirmed that the POGO business of “Suncity (Group) has left” the country.

However, Suncity Group Ltd. clarified that it would continue its junket business in Manila as it has no intention of stopping its local casino operations.

“Suncity Group spares no effort to develop itself as a global integrated VIP entertainment conglomerate. Junket business in Manila are definitely important to us and we can’t find any reason to leave Manila at this particular moment,” Suncity Group said Monday in an e-mailed response to BusinessWorld’s questions.

The Macau-based gaming giant said it would also continue developing a “VIP entertainment business in licensed gaming concessionaires in Manila.”

“In regards to the comment provided by Miss Andrea Domingo, we think she is referring to telebetting service, which has nothing to deal with the junket business that Suncity Group operates in Manila,” it added.

PAGCOR Assistant Vice-President for Offshore Gaming and Licensing Department Jose S. Tria, Jr. said over the weekend that POGO companies were leaving the Philippines due to many factors, including the BIR’s stringent tax rules and huge overhead costs as they could not resume operations. He said the industry also felt unwelcome in the country with the barrage of criticisms from the public.

Both officials of the regulator have warned that more POGO companies were expressing interest to leave as well.

Senator Emmanuel Joel J. Villanueva, chairman of the Senate committee on labor, employment, and human resources development, said Monday that exiting POGO companies “won’t be a loss” for the economy as some were known to violate Philippine laws.

“The failure of POGOs to adhere to our laws resulted in their exit. This is what happened, plain and simple,” he said.

The BIR has been struggling to collect the 5% franchise tax, which is on top of the 2% franchise fee of PAGCOR, from overseas-based POGO companies that questions its applicability.

BIR requires POGO licensees to pay the franchise tax and other tax dues before they can get clearance from the bureau, one of the requirements of the government to allow them to resume operations.

Around 10 of 60 licensed POGO companies have offices in the Philippines and the rest are based offshore. There are currently more than 200 POGO service providers.

The government collected P6.42 billion in taxes from the POGO industry last year, up 170% from the P2.38 billion generated in 2018. — Beatrice M. Laforga

The Future is now past

Pandemic closes down storied queer safe space

By Joseph L. Garcia, Reporter

TODAYXFUTURE, a bar in Cubao, was the one place in the world where heiresses in Chanel could dance to songs by the Sexbomb Dancers. It was one of the few places in the city where 20-somethings danced to “The Ghost In You” by The Psychedelic Furs, and other New Wave and disco hits. Within a few minutes, the same crowd would also be dancing to Robyn’s “Dancing on My Own,” a perennial crowd favorite that always brought shrieks of elation. More importantly, as a safe space for queer individuals, it was one of the few places in the world where I felt secure holding another man’s hand. And now it’s gone.

The bar, whose name is sometimes shortened to just “Future” (As in, “You wanna Future later?”) is just one of the casualties of the lockdowns imposed by the government to combat the COVID-19 pandemic. The bar announced its closure on social media on June 18.

“After long days and nights of deliberation, wrestling options and way too much alcohol to cushion the emotion, we are left with the decision to say farewell. We would have turned 12 years old but alas, the uncertainty has made it incredibly difficult. However, this isn’t a statement about sorrow and regrets and wishing things would have been different. This is a love letter — a love letter to all of you who have kept our Future shining bright for over a decade,” the statement said.

“It closed because we couldn’t keep it operational. The pandemic really affected us in so many ways and with the lack of government support for ‘non-essential’ businesses like ours, we were left to try our best. We also had to let go of our staff already because they needed to find other sources of livelihood, as we couldn’t keep paying them without us earning,” Future co-founder Leah Castañeda told BusinessWorld in an interview.

Ms. Castañeda reminisced about Future’s origins and its move from boho enclave Cubao X to just a street away, Gen. Malvar St. in the Araneta Center.

“Future was established in Aug. 8, 2008 when I collaborated with the I Love You girls, Sharon and Mimi. When ILY closed down, it was Sharon and I who continued what would eventually be called Today x Future,” she said. “When I Love You Store moved to Cubao X from Makati, Mimi asked me if I wanted to put up a cafe on the first floor.” The I Love You Store back then sold vintage curios, one-of-a-kind pieces, and artwork. “I didn’t know anything about running a cafe, but I’m well-versed in throwing events and hosting people. At the time I was heartbroken, and instead of losing all my savings partying, I thought of investing it all by putting up a space. It grew organically from there. From a few cases of beer and an oven to prep some pizza and sausages with, it took on a life of its own.”

As for the name, she said, “During construction, we called it our ‘future spot’ and it didn’t have a name yet. Since we got so used to it when Mimi and Sharon asked me what I wanted to call it, we just called it, Future.”

“Cubao X eventually imposed a 1 a.m. curfew, which affected our late-night crowd, and the contract wasn’t renewed. So we had to find another spot,” she said. In 2013, the bar moved from its space in Cubao X (its sidewalk was equipped with commodes, a baroque throne, and several odd chairs that didn’t fit with each other) to its Gen. Malvar location, sandwiched between two pawnshops (and within walking distance of a Jollibee; arguably the city’s best-dressed branch come 4 a.m.).

A rainbow flag on its red front door, as well as the gaggle of people spilling out from the dimly lit bar to the Cubao street announced Future as a safe space. Asked if Future had always meant to be one, Ms. Castañeda said, “The crowd was always a mix ever since, whether they were straight or queer. Coming from the fashion and arts industry, I have a lot of queer friends whom I’ve known since the ‘90s who also ended up spending a lot of time at ILY x Future. I guess it naturally became a space where gay people, closeted or not, got drawn to and felt safe in because of the welcoming atmosphere.”

A generation of young creatives — from the fashion to the publishing industry — made Future a home through all these years. In the confusion of the small, disco-ball lit dance floor, one could sometimes see a friend, but on some nights, maybe even a celebrity. Future became what it was because of the people behind it, and also the people in front of it (the bar patrons who would step outside for a cigarette, oxygen, or because they couldn’t hear each other inside). “It became what it is because of how the TxF team ran the space and the community it attracted. There’s always been a sense of family in how we kept it going and that rubbed off on our patrons. We were hands on, we sat down with our customers because there was every chance that we can all be friends. Judgment was out the door once you came in, and we really did take care of one another.” The time and place it was built also had a hand in its power: “Cubao, where I grew up and where Future happens to be, is a raw and gritty place that reeks of authenticity. I believe that also helped Future a lot. We saw all these generations of customers grow, which we would lovingly call, ‘seasons,’ but Future was always there constant.”

Future survives through its younger sibling, Futur:st, a bar in upmarket-meets-grunge Poblacion, Makati. Comparing how the experience will change, she said, “In terms of the market, the customers we get there are older, and mostly from Makati and nearby areas. The spending behavior is also different because prices and rental fees tend to be higher and it’s more a come and go kind since Poblacion is a hub of various nightlife spots. People like to go around and check out different places in one night so it could just be one or two rounds and off to the next bar. We’re pretty lucky to be steadily gathering our own regulars.”

Late last week, a group of protesters staging a Pride march and protest were arrested in Manila, with the police allegedly not being able to cite a specific law as a reason for their arrest. With the closure of Future, another safe space for the LGBTQ+ community has disappeared. “We’re very disheartened, and we do feel helpless that we couldn’t maintain the space despite doing everything we could,” said Ms. Castañeda. “This I feel is the same problem that other micro to small business owners who run creative spaces are facing.”

The generation that grew up in Future, born between the mid-’80s to the ’90s, have witnessed at least two financial crises. The consequences of the pandemic predict, if not already manifest, another. It’s getting harder to believe that the future was once promised, and it’s funny that a bar named after the future, a word that carries so much meaning, would eventually have to meet an end. Ms. Castañeda said, “We never think of it as ending. Future always takes on another shape or form. The outpouring of love we received all these years, highlighted even more since we announced our closure, has shown us that we will always have the Future.”

As Future enters the past, it will eventually be a story that one tells to remember how you were, and who you were then. A line from the 1956 film Anastasia, a movie about reclaiming a past that could not be repeated, seems to resonate in this case. “I am the past. I like it. It’s sweet and familiar. The present is cold and foreign. And the future? Unfortunately I don’t need to concern myself with that. But you do.”

“It’s yours.”

KKR unit completes First Gen share purchase

A SINGAPORE-BASED holding company of New York-listed KKR & Co., Inc. has completed its share purchase at Lopez-led First Gen Corp., receiving acceptances higher than targeted.

On Monday, the global investment firm said Valorous Asia Holdings Pte. Ltd., a unit of KKR Asia Pacific Infrastructure Holdings Pte. Ltd., has accepted tendered shares of 427,041,291, representing 11.9% of the Philippine energy firm’s outstanding common shares for its P9.6-billion tender offer.

The acceptances were higher compared to its target 6%-9% of First Gen common shares.

Federico R. Lopez, First Gen’s chairman and chief executive officer, said the company felt “quite honored” of KKR’s confidence in the company.

“It’s especially exciting given the accelerating transition we all need to make toward a decarbonized future and we look forward to engaging with a world-class global investor, such as KKR, as we navigate the journey ahead as partners,” he added.

KKR’s Asia Pacific Infrastructure Partner and Head David Luboff shared the same excitement, saying his group was “pleased to have this opportunity to be an investor in First Gen able to positively engage with the company’s management team and the Lopez family as helpful in the future.”

Valorous’s voluntary tender offer of P22.50 per share, which ended on June 24, was first publicized on May 26. The holding firm will pay the shareholders on July 1.

It has said the all-cash bid can bring immediate return on shareholders’ investments at an “attractive” premium.

KKR Asia Pacific Infrastructure is owned by KKR Asia Pacific Infrastructure Investors SCSp based in Luxembourg. The latter is managed and advised by Kohlberg Kravis Roberts & Co. L.P., a unit of New York-listed investment firm KKR & Co., Inc.

First Gen is the third Philippine company in which KKR is actively investing. It has provided capital for Metro Pacific Hospitals, the hospital arm of listed Metro Pacific Investment Corp., as well as Voyager Innovations, Inc., a unit of PLDT, Inc.

“We continue to look for new opportunities to support the country’s growth trajectory, its leading companies, and its families through our infrastructure, private equity, real estate and credit investing businesses,” KKR’s Asia Pacific Infrastructure Team Managing Director Michael M. de Guzman said.

KKR’s investment in the Philippines now stood at over $1 billion, it noted.

First Gen runs a portfolio of renewables and indigenous fuel energy generation facilities with a total of 3,492 megawatts in installed capacity. It is set to build one of the country’s first liquified natural gas import terminals in Batangas.

Shares in First Gen increased by 1.78% to close at P22.90 each on Monday. — Adam J. Ang

Instituto Cervantes to show classic Spanish films

THE Instituto Cervantes de Manila and the Embassy of Spain will be showing Spanish film classics in a film cycle called Clásicos contigo/Classics with You, during the weekends of July, for free, through the Instituto Cervantes Vimeo channel.

Coinciding with this cycle, Instituto Cervantes and the Spanish embassy are also launching the Cineclub Pelikula, an online cinema club that will offer webinars revolving around the programmed films.

The program presents five movies that today are considered reference works of Spanish cinema. The chosen titles, presented by Spanish actors, directors or screenwriters, belong to the AECID Film Library catalog and will be screened with English subtitles. The five movies will be shown over five weekends — one film per weekend, with each title available only for 48 hours.

The film cycle, whose first leg started last May with four classic titles from legendary filmmakers such as Buñuel, Bardem, and García Berlanga, will continue this July with the second leg of the series, featuring five films from the 1970s until the end of the 20th century. The films are: The Spirit of the Beehive (1973) and The South (1983), directed by Víctor Erice; The Holy Innocents (1984) by Mario Camus; La vaquilla (1985) by Luis García Berlanga; and The good star (1997) by Ricardo Franco.

The first film to be streamed is The Spirit of the Beehive, directed in 1973 by Víctor Erice. The premiere of The Spirit of the Beehive, Erice’s debut feature film, was greeted with critical acclaim and awarded with the Golden Shell for Best Film at the San Sebastian Film Festival, soon establishing itself as the consummate masterpiece of Spanish cinema.

The film will be available on the Instituto Cervantes Vimeo channel on July 4 and 5. To access the link to the movie and password, log on to Instituto Cervantes de Manila’s website: http://manila.cervantes.es.

CINECLUB PELÍCULA
The films will be accompanied by discussions that are part of the Cineclub Pelikula, an online cinema club. The webinars, conducted by writer and cultural activist Jessica Zafra, will take place every Sunday on Zoom. The first webinar, which will be devoted to the film El espíritu de la colmena (The Spirit of the Beehive), will be held on July 5 at 5 p.m.

The films are in Spanish with English subtitles. Admission is free. For further information and updates on the film series, check out http://manila.cervantes.es or Instituto Cervantes’ Facebook page: www.facebook.com/InstitutoCervantesManila.

Meralco considers extending ban on disconnection, puts notices on hold

MANILA Electric Co. (Meralco) is discussing if it will extend the moratorium in serving disconnection notices to customers who still cannot settle any portion of their unpaid bills, especially before the quarantine period.

In a press briefing on Monday, the Philippines’ biggest distribution utility said it would not issue any disconnection order until end-August.

“We will not issue any order or disconnection [notice] until the end of August. Walang galawan munayan, (There will be no disconnection activities yet)” said Lawrence S. Fernandez, Meralco head of utility economics.

But Joe R. Zaldarriaga, the company’s spokesperson, said: “Maaari pang magbagoyan.” (It still might change.)

The distribution utility has refrained itself from conducting disconnection activities as consumers are still grappling with the impact of the coronavirus disease 2019 (COVID-19) pandemic on their livelihoods.

It was further stated that Meralco has yet to determine who among customers are slated for disconnection.

Agnes R. Macob, Meralco head of commercial operations, said the company was deliberating the parameters which will be the basis for disconnecting a customer from the distribution line.

“But we are assuring you that Meralco will be very, very considerate during this pandemic period,” she added.

“Disconnection is farthest from the mission that we have right now which is to provide 24/7 electricity service,” Mr. Zaldarriaga said.

Ms. Macob appealed to customers who have not yet paid their bills prior to the strict lockdown period in mid-March to settle those accounts around this time that disconnection activities are still suspended.

Meralco is still finishing its actual meter readings, complying with the order of the Energy Regulatory Commission (ERC) after its previous estimated computation of customers’ bills during the quarantine months has elicited complaints.

It reiterated that the present June bills reflect the accrued consumption of customers from March to June based on actual readings.

Customers who have yet to pay their bills in the past three months from June were advised that they can settle those in portions in the next four or six months, as per the ERC directive.

They will then receive two bills each month: one for the installment payment and the other for the monthly bill.

Still pressed with complaints, Mr. Zaldarriaga said: “Sa sitwasyon ngayon, ang ginagawa namin ay hina-handle namin isa-isa lahat ng mga customers’ concerns sa kanilang individual electricity bills.” (Right now, we are resolving customers’ concerns on their individual electricity bills one-by-one.)

“We vow to continue engaging our customers one-on-one,” he added.

As of present, the listed utility collected below half of all full payments of its 6.9 million customers. Despite the low collection efficiency, Meralco is paying its suppliers in full, according to Mr. Fernandez.

Meanwhile, Meralco said it has yet to submit its response to the ERC ‘s show-cause order after it was found to have allegedly violated some of regulator’s advisories during the lockdown period.

Specifically, the regulator pointed out the alleged breach on its order on estimated billing, the implementation of the former staggered payment scheme, and the start of bills payments on May 30 for customers in areas under strict lockdown.

“We believe that we have complied with the existing regulations and directives set by the regulator and we will explain in full to the Commission the basis for our actions and compliance,” Jose Ronald V. Valles, Meralco’s first vice-president and head of regulatory management, earlier 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., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

TV show The Simpsons ditches using white voices for characters of color

LOS ANGELES — Animated TV comedy The Simpsons is ending the use of white actors to voice characters of color, producers said on Friday.

“Moving forward, The Simpsons will no longer have white actors voice non-white characters,” they said in a brief statement.

The statement did not elaborate but the move follows years of public pressure about the Fox television show’s Indian convenience store character Apu, who is voiced by Hank Azaria.

Azaria said earlier this year that he would no longer play the character, which has been criticized as a negative portrayal of Indian-Americans.

Azaria has also voiced the Simpsons characters of Black police officer Lou and the Mexican-American Bumblebee Man. Harry Shearer played Dr. Hibbert, who is Black.

Friday’s statement did not say whether Apu or the other characters would remain on the series.

Bumbling Homer Simpson, housewife Marge, troublemaker Bart, prodigy Lisa, and baby Maggie, have captured the changing face of America for more than 30 years in the longest-running scripted show on US television.

The Simpsons is syndicated in more than 100 countries.

Friday’s announcement comes amidst a widespread reckoning for US pop culture about racism following mass protests this month over the killings of Black Americans by police.

Other white actors, including Mike Henry of animated series Family Guy and Kristen Bell of Central Park, have also said they will no longer voice characters of color.

“It’s been an honor to play Cleveland on Family Guy for 20 years. I love this character, but persons of color should play characters of color. Therefore, I will be stepping down from the role,” Henry said on Twitter on Friday. — Reuters

Megaworld trims capital spending to P36 billion, reports 9% drop in earnings

MEGAWORLD Corp. is cutting its capital expenditures (capex) this year to P36 billion as it reported a 9% profit decline due to the coronavirus disease 2019 (COVID-19) pandemic.

The Andrew L. Tan-led property developer said in a statement Monday it was originally planning a capex of P60 billion for 2020, but is now reducing it by 40% because of the outbreak.

The pandemic has pushed Megaworld’s attributable net income lower by 9% to P3.5 billion in the first quarter. Its net income fell 8% to P3.8 billion, and its core profit was down 3% due to a non-recurring gain of around P189 million.

Consolidated revenues stood flat with a 1% improvement to P15.1 billion. Revenues from the residential business comprised 64% of the total, the rentals business accounted for 28%, the hotels business made up 4% and the remainder are from non-core businesses.

Residential sales were steady at P9.6 billion as growth was stunted by the Taal Volcano eruption in January, resulting in lower sales for projects in the Calabarzon region. Supply chain disruption due to the COVID-19 pandemic also delayed project construction and affected the business.

Megaworld’s rental segment was another business that cushioned it during the quarter, posting a revenue growth of 8% to P4.2 billion. The company attributed it to office leases as mall rentals were lower due to the pandemic.

Much of the decline came from hotel operations, which posted a 4% revenue drop to P551 million. The impact of the pandemic to global tourism resulted in lower check-ins during the period, particularly from international guests.

“Our real estate sales still helped mitigate the impact of the challenges we faced during the quarter. Our office portfolio, which remains very attractive to locators because they are mostly PEZA- accredited, provided a buffer against the expected weakness of our mall and hotel operations,” Megaworld Chief Strategy Officer Kevin L. Tan said in the statement.

“We keep an eye on effective strategies that will cushion the impact of these challenges for the rest of the year,” he added.

One of the company’s coping mechanisms is strengthening its e-commerce platforms to adapt to new behaviors emerging from pandemic-related restrictions. Megaworld will be rolling out digital platforms in the coming weeks to facilitate customer activity.

An example is its mobile application “E-Concierge”, which is made for Megaworld’s hotel business to allow guests to communicate with hotel staff without contact.

“Our e-commerce platforms will give our customers the convenience and comfort that they need as we take their safety and well-being to a whole new level. We will also do the same for our mall customers, which will also greatly help our retail tenants,” Mr. Tan said.

Megaworld currently has 26 integrated urban townships, integrated lifestyle communities and lifestyle estates in its portfolio.

Shares in the company at the stock exchange fell 12 centavos or 3.99% to P2.89 each on Monday. — Denise A. Valdez