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Nationwide round-up

Malacañang honors late JICA president

MALACAÑANG ON Tuesday expressed condolences for the death of Sadako Ogata, who served as Japanese International Cooperation Agency (JICA) president from 2003 to 2012, recognizing her contribution to strengthening relations between the Philippines and Japan. “The remarkable and extraordinary service of Ms. Ogata, together with the time and effort she has devoted to strengthen the diplomatic relations of Philippines and Japan, will always be remembered given the beneficial and enduring consequences of her endeavors for our country,” Presidential Spokesperson Salvador S. Panelo said in a statement. Ms. Ogata passed away at age 92 on Tuesday, Japanese news site NHK World reported. She was the first woman minister at the Permanent Mission of Japan in the United Nations (UN), and was a UN high commissioner for refugees. According to JICA’s website, Ms. Ogata’s contributions to the Philippines under her term include accelerating the peace process between the government and the Moro Islamic Liberation Front, and providing livelihood assistance programs for people in Mindanao’s poverty-stricken areas. In 2013, she was awarded the Order of Sikatuna by the Philippine government, a recognition given to diplomats and foreign heads of state for doing exceptional deeds and services to the Philippines. — Gillian M. Cortez

DoJ confirms President’s order for NBI probe on mayor’s killing


THE DEPARTMENT of Justice (DoJ) will issue a department order formalizing the directive of President Rodrigo R. Duterte to the National Bureau of Investigation (NBI) to probe the death of a mayor in Misamis Occidental, who was shot and killed while in police custody in Cebu City. “The President has control over the entire Executive department including the PNP (Philippine National Police) and the NBI. His directive should therefore be sufficient for the NBI to commence its probe,” Undersecretary Markk L. Perete told reporters in a mobile phone message. “Nevertheless, and purely for record-keeping purposes, the DoJ shall issue a Department Order reiterating the President’s directive to the NBI,” he added. The president wants the state agents to handle the probe in the killing of Clarin, Misamis Occidental Mayor David Navarro has ordered the PNP to terminate their investigation and hand all documents and other evidence to the NBI.

The President also confirmed that he earlier met with Mr. Navarro, who was included in the list of local government officials allegedly involved in the illegal drug trade, and was told that somebody “is out to get him.” Mr. Navarro was being escorted by the police in Cebu City to a prosecutor’s office when he was ambushed last Oct. 25. — Vann Marlo M. Villegas

Nation at a Glance — (10/30/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (10/30/19)

UP out to stop Ateneo sweep of eliminations

By Michael Angelo S. Murillo
Senior Reporter

THE ELIMINATION round of University Athletic Association of the Philippines Season 82 hits its final play date today with the University of the Philippines Fighting Maroons looking to prevent a sweep of the games by the defending champions Ateneo Blue Eagles.

Set for 4 p.m. at the Mall of Asia Arena, the Maroons (9-4), who secured second spot in the race in their victory in their previous game, are out to avert a shutout of the eliminations by the Eagles (13-0) and exact some payback on the latter for the first-round defeat they were dealt with.

A win by UP over Ateneo today sends the semifinals to a traditional Final Four format with the top two teams earning a twice-to-beat advantage. An Ateneo victory, however, renders the semifinal round a step-ladder with the Eagles earning a direct entry into the finals.

In their first game in the opening round on Sept. 29, the Eagles gave the Maroons a solid reality check, winning by 26 points, 89-63.

Ateneo found themselves in a bind early in the said contest but collectively made the necessary adjustments on both ends of the court from the second quarter onwards to outsprint UP on its way to the big win.

Making matters worse for the Maroons was that they saw head coach Bo Perasol tossed out from the game midway because of excessive complaining, which also led to his two-game suspension by the UAAP after.

Heading into today’s game UP is on a three-game winning streak, including a gutsy 71-68 triumph over the De La Salle Green Archers on Oct. 27 which sealed for them the second spot.

Key plays by Bright Akhuetie, Kobe Paras and Jun Manzo gave the Maroons the push they needed down the stretch to survive and earn the victory.

Akhuetie led the Maroons in the win with 17 points and 10 rebounds with Manzo and Ricci Rivero adding 12 points apiece. Manzo also had eight assists. Paras, meanwhile, finished with 10 points.

For his steady effort against La Salle, Manzo sealed player of the week honors from the UAAP press corps, beating the likes of Ateneo’s Angelo Kouame, Rhenz Abando of University of Santo Tomas and Wendell Comboy of Far Eastern University.

Zeroing in on their game against Ateneo today, Mr. Perasol admitted that they have their work cut out for them but vowed to go all out and give their best to notch the victory. “What can I say about Ateneo? We just have to come out really strong. We have two days to prepare against them, we’ll give it our best shot. They’re not the champion for nothing. But we will give it our best shot,” said the UP coach after their win on Sunday.

On the part of Ateneo, which is angling for a third UAAP title this season, it said it knows that it is in a good position to give its title defense a huge boost with a win today but is more concerned on playing its best on the court whether it leads to a sweep or not.

“Nothing changes. Next game is the last game. I understand that is a sweep or not a sweep but again, those are just minor issues for us. The major issue for us is how we play against UP,” said Ateneo coach Tab Baldwin following their 13th win of the season on Oct. 26 at the expense of the National University Bulldogs, 88-51.

The Eagles have been impressive and unforgiving in their last two matches, winning by an average margin of 35.5 points.

Also playing today and wrapping up their campaign this season are already eliminated University of the East (3-10) and NU (2-11) at 10:30 a.m. and La Salle (6-7) and Adamson University (4-9) at 12:30 p.m.

Ceres tests Azkals U22 in Group A Copa match

THREE-TIME Philippines Football League champion Ceres-Negros FC tests the mettle of the national under-22 team in Copa Paulino Alcantara action today at the Biñan Football Stadium in Laguna.

Perched at second spot in Group A entering the match with a point, the “Busmen” try to seize to the top spot from the Azkals U22 (three points) in their 4 p.m. engagement.

Ceres was held to a 2-2 draw in its Cup opener by Mendiola FC 1991 on Oct. 26 and is looking to have a favorable result this time around.

Against Mendiola, Robert Lopez Mendy got the Busmen to a solid start, connecting on two goals in the fourth and 31st minute to hand his team a 2-0 lead early.

But they would not be able to hold on to the lead as Mendiola fashioned out a fight back.

Mendiola was able to trim its deficit into half, 2-1, just before the break (45+1’) with Hamed Hajimahdo providing the goal.

Papuh Corsame then levelled the count at 2-2 in the 64th minute.

With the outcome of the match still open, the teams tried to go for the go-ahead but their attempts fell short, forcing them to settle for the draw and a point each from the match.

The U22 had it auspicious in its first game in the Copa, carving a 1-0 victory over Green Archers United FC on Oct. 27.

Chima Uzoka provided what turned out to be the winning goal in the 51st minute off a header from a corner kick.

The Philippine team is using its Cup participation as part of its preparation for the 30th Southeast Asian Games which the country is hosting beginning late next month.

Also playing today are Mendiola and GAU in a Group action at the Aboitiz Pitch in Lipa City, Batangas, at 4 p.m. and Stallion Laguna FC and Philippine Air Force FC in Group B at 7 p.m. — Michael Angelo S. Murillo

Ginebra Kings, NLEX Road Warriors resume attack to the top of standings

THE Barangay Ginebra San Miguel Kings and NLEX Road Warriors, currently the hottest teams in the Philippine Basketball Association Governors’ Cup, try to extend their assault to the top of the standings when they take on separate opponents in league action today at the Cuneta Astrodome in Pasay City.

Both riding a three-game winning streak, the Kings (4-2) and Road Warriors (6-1) look to fortify their spots in the top half as the elimination round of the tournament hits the homestretch.

Barangay Ginebra plays the Blackwater Elite (2-6) in the scheduled 7 p.m. game while NLEX faces off with the Rain or Shine Elasto Painters (2-6) in the opener at 4:30 p.m.

After losing back-to-back games previously, the Kings have racked up three straight victories, the most recent against Rain or Shine, 98-89, on Oct. 26.

The Kings did not have it easy in said game but an explosive effort in the payoff quarter allowed them to get the leverage they were angling for to outlast and defeat the Elasto Painters.

Import Justin Brownlee was once again stellar, posting all-around numbers of 39 points, 17 rebounds, eight assists, three steals and a block in 45 minutes on the floor.

Providing support to him were LA Tenorio and Scottie Thompson, who each scored 11 points, and Stanley Pringle who had nine points and seven assists.

While they had it tough against Rain or Shine, Barangay Ginebra coach Tim Cone said it was something that should help them in the tournament moving forward.

“It was really a tough game to manage. We had a big lead and we’re trying to hold them off, but then we fell behind. It’s really a tough game from start to finish. But I think we need this kind of game,” said Mr. Cone.

Adding, “The fact that we had grind-out games is good for us as a team. It would help us to be mentally strong and tough down the stretch as we try to find ways to win.”

Out to stop the Kings are the Elite, losers of their last three assignments.

Meanwhile, NLEX seeks to sustain its fine form in the ongoing PBA tournament where it is actually already assured of a spot in the next round.

The Road Warriors notched a quarterfinal spot in their last game, a 126-113 victory over erstwhile undefeated TNT KaTropa on Oct. 25.

Replacement import Manny Harris continued to impress in his second game in the PBA, finishing with 40 points, nine assists and seven steals.

He had ample support from Kiefer Ravena, who had 16 points and 13 assists, as well as Jericho Cruz (15 points), JP Erram (14) and JR Quñahan (10).

The Road Warriors were particularly steady in the second half, where the KaTropa just could not keep in step with them.

“Great effort by the guys. TNT is such a strong team and there’s a reason they were unbeaten up to this point. So we made sure we were ready for them,” said NLEX coach Yeng Guiao as he paid tribute to his players after the contest.

NLEX shoots for a share of the tournament lead with TNT (7-1) against Rain or Shine, which is coming off a loss. — Michael Angelo S. Murillo

Waiting game

And so the waiting game continues.

A week into the 2019–20 season of the National Basketball Association, Filipino fans are still awaiting word when they get to see the games on mainstream TV.

Since the partnership between the NBA and Solar Entertainment lapsed on Sept. 30, local fans have been settling for the broadcast of games over social media — Facebook and Twitter in particular — provided by the office of the league here, and for those who can afford by way of NBA League Pass, the premium subscription service of the NBA.

Solar used to operate the Basketball TV and NBA Premium TV channels, which were widely acknowledged as the go-to sources on TV for comprehensive NBA coverage in the country.

This writer had the chance to sit down, along with other members of media, with NBA Philippines managing director Carlo Singson last week where he discussed their plans this season, particularly on the broadcast of games.

The NBA Philippines head said they are in continuous talks with multiple groups, both local and international, as broadcasting partners even as they reaffirmed their commitment to the Philippines as a “priority market” for the league.

Mr. Singson went on to say that they are bent on making things happen, looking to complete a deal “way before the end of the season.”

While as a fan such is a welcome news, knowing that something is being done on the matter, still with nothing concrete on sight at the moment, one cannot be blamed for being concerned.

It has been reported that among those bidding for the broadcasting rights here is the group composed of Cignal, TV5 and ABS-CBN (Sky Cable), a joint bid that would see them broadcast NBA games on various avenues, including free TV (TV5 and ABS-CBN S+A) and cable (Cignal TV and Sky Cable).

But hearing the side of Jane Basas, Cignal TV and TV5 president, during Smart’s launch of its Get Gold! Campaign for the Southeast Asian Games on Monday, any optimism of them getting the rights should be guarded.

Ms. Basas admitted that the bidding process has been a challenging one, especially since they think the price of the broadcasting rights is “expensive” despite it being lowered already.

She did not provide the actual figure though.

The Cignal official went on to say that their offered bid still stands, and given the chance she expressed their readiness to bring the games to the Filipino fans the best way they can.

They are hopeful to get word back from the NBA this week.

Also in the picture as possible broadcaster, according to reports, is CNN Philippines, although nothing concrete has come out of it as well.

At this point, I guess we, Filipino NBA fans, just have to wait and see how things will pan out. But hopefully it is not too long a wait.

Filipino fans have been supportive of the league, there is no denying that.

While they will flock Facebook and Twitter to watch the games and shell out money for their subscriptions for League Pass because they are that big of an NBA fan, still they deserve a steady and sustainable platform for their NBA fix which television can provide.

So to the NBA, please make it happen.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@bworldonline.com

Eagles ground game

The Eagles were in turmoil, and something — anything — had to be done, fast. It wasn’t simply that they lost their second straight game. It was that they lost in a blowout anew, shining the spotlight on internal disagreements that would have otherwise been deemed typical through the course of a long season. And so, as recounted by ESPN, the players held an unprecedented closed-door meeting prior to their Week Eight set-to against the dangerous Bills. “We had a lot of internal conversations, a lot of tough conversations,” veteran safety Malcolm Jenkins, an acknowledged leader, was quoted as saying.

Considering how the Eagles buckled down to work the other day, the meeting obviously produced the desired effect. They came out with the kind of effort on the road that even their notoriously critical fan base couldn’t have helped but appreciate. For all the scrutiny they faced, they took to heart the message that they were masters of their fate; only they had the capacity to frame their future as they saw fit. And the result highlighted their potential moving forward; they dominated the 5-1 Bills in front of a hostile crowd of 69,435 en route to a 31-13 victory.

To argue that the Eagles displayed sharpness on both ends of the field would be an understatement. They were down early, but once they got in a groove, there was no stopping their balanced attack. Certainly, they proved that they had a ground attack to turn to, with running backs Miles Sanders and Jordan Howard combining for 214 yards and two touchdowns. Meanwhile, quarterback Carson Wentz, whose playcalling was being questioned in the midst of their twin setbacks, turned in a rock-solid showing to complete 17 of 24 passes for 172 yards and a score, not to mention net an additional 38 yards off eight carries.

True, the Eagles will be in for a tough homestand. Up next are the Bears and, after a bye, the Patriots and the Seahawks, powerhouses both. If there’s anything their experience resulting in their triumph the other day underscored, however, it’s that the process is just as important as the outcome. Success is a journey, not a destination, and for as long as they’re able to continue canceling any outside noise, they’ll learn to live with any outcome they craft together.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Central bank eyes interest rate cap for lending firms

By Denise A. Valdez
Reporter

THE BANGKO SENTRAL ng Pilipinas is considering the imposition of a cap on interest rates and other fees that lending and financing companies charge on consumer and payday loans, in response to a request by the Securities and Exchange Commission (SEC).

In a statement Monday, the country’s corporate regulator said it wrote to BSP Governor Benjamin E. Diokno on Oct. 8, asking for a limit on interest rates, fees and other charges that lending and financing companies impose on borrowers. In that letter, SEC Chairman Emilio B. Aquino cited high interest rates that reach 2.5% per day, on top of other fees and charges, as among complaints that the SEC receives.

“Thus, the Commission respectfully requests the BSP to consider putting a ceiling on the interest rates, charges, and other fees… The proposed ceiling rates shall not apply to the whole financial sector, but solely to consumer loans and payday loans…,” Mr. Aquino was quoted as saying in the letter.

In a mobile phone message, Mr. Diokno said he has “already instructed our senior staff to study the matter.”

Asked when the BSP could give a definite response to the SEC, Mr. Diokno replied: “… [I] think end of November is a reasonable deadline, then I can bring it up with the MB (Monetary Board).”

Section 4 of Republic Act No. 9474, or the Lending Company Regulation Act of 2007, provides, among others, that “no lending company shall conduct business unless granted an authority to operate by the SEC.”

Section 7 of the same law provides that the central bank’s Monetary Board, in consultation with the SEC and the industry, may prescribe interest rates on lending company loans “as may be warranted by prevailing economic and social conditions.”

Section 5 of another law — RA 8556, or the Financing Company Act of 1998 — provides that “the Monetary Board of the Bangko Sentral ng Pilipinas is… empowered to prescribe, in consultation with financing companies and the Securities and Exchange Commission, the maximum rate or rates of purchase discounts, lease rentals, fees, service and other charges of financing companies, and to change, eliminate or grant exemptions from or suspend the effectivity of such rules whenever warranted by prevailing economic and social conditions.”

At present, lending or financing businesses freely agree with borrowers on terms and conditions of their loan contracts, including interest rate and other charges such as transaction fees and penalties for late payment. It will be recalled that Central Bank of the Philippines Circular No. 902-82 in 1982 suspended the country’s usury law under Act No. 2655.

The SEC said other countries regulate interest rates imposed by lending and financing companies, including Japan, Thailand, Myanmar and United States, to protect borrowers from exorbitant charges on loans.

The SEC said in a separate statement on Monday that it issued last week a cease-and-desist order on six more illegal online lenders: Batis Loan, Happy Credit, Easy Cash, Wahana Credit & Loan Corp., Pesomama and Light Kredit, for not being registered as corporations and not having licenses to operate as lenders.

“[T]he abusive collection practices engaged in by unlicensed online lending companies constitute unfair debt collection practices which are expressly prohibited under SEC Memorandum Circular No. 18, Series of 2019 (Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies),” the statement read, quoting the cease and desist order.

This is the fourth cease and desist order the SEC issued against illegal online lending companies. A total of 48 lenders have now been covered by the regulator’s crackdown that started last month.

BSP plans to allow banks to set up Islamic banking units

THE BANGKO SENTRAL ng Pilipinas (BSP) is leaning toward allowing local lenders to set up Islamic banking subsidiaries, as it steps up efforts to promote Shariah-compliant finance in the country.

“The BSP is pushing for an open approach where conventional banks can operate Islamic banking windows or to establish subsidiary Islamic banks,” the central bank’s Deputy Governor Chuchi G. Fonacier told Bloomberg News via e-mail.

The government passed a law in August to promote Islamic finance, which represents a small proportion of the banking industry even though about 10% of the population is Muslim.

The country has 45 universal and commercial bank groups, only one of which — the Al-Amanah Islamic Investment Bank of the Philippines — operates under Shariah principles.

The August law said local banks may be allowed to “engage in Islamic banking arrangements” but left it up to the central bank to work out the details.

Operating fully fledged subsidiaries would allow lenders to offer a wider range of Shariah-compliant services than through a window, which remains part of the parent bank.

The BSP wants to issue the implementing rules for the new law before the end of the year, Fonacier said. Foreign Shariah-compliant banks will also be allowed to operate locally, she added.

“Islamic banking in the Philippines is promising,” she said. — Bloomberg

Wanted: better focus in luring investments

INVESTMENT promotion agencies (IPA) are working on a unified country branding to promote the Philippines as an investment destination.

In a statement on Monday, the Board of Investments (BoI) — an agency attached to the Department of Trade and Industry — said it is spearheading a collaboration among the country’s 19 IPAs to create a unified country brand that they will use in promoting the Philippines to foreign investors.

Trade and Industry Secretary Ramon M. Lopez said that this effort will help these agencies work in unity, instead of independently and in silos.

“We basically want a clear and focused messaging of the Philippines’ value proposition to investors — the country as an investment destination especially during this administration, given the meaningful reforms and solid macro fundamentals with respect to specific sectors,” Mr. Lopez told reporters in a mobile phone message.

“This is for effectiveness and efficient use of government’s limited resources.”

For American Chamber of Commerce of the Philippines, Inc. Senior Advisor John D. Forbes, “It is always important to have a single, unified country message for marketing the Philippines and there are many positive things to be said to attract FDI.”

“But at the same time, FDI is lower this year than the last two, so the group should also study the reasons for this,” Mr. Forbes said in a text message, referring to a 39.1% year-on-year drop in foreign direct investment (FDI) net inflows in the seven months to July.

British Chamber of Commerce of the Philippines Executive Director and Trustee Chris Nelson said in a telephone interview that creating a consistent message would help the chamber in its efforts to attract British investment in the Philippines.

“We are making inroads in making people aware of the Philippines. If the [message] is consistently reinforced, it would keep the Philippines highlighted among British companies,” he said.

Mr. Nelson said the unified branding should highlight a main message that the Philippines is making progress and is “even more open for business,” and emphasize the improvement in ease of doing business in the country.

He added that the IPAs’ communication strategy should also emphasize the growing young, English-speaking workforce in the Philippines.

But Mr. Nelson said that communications should be just one part of the overall promotions strategy. “Communications is… part of the overall plan to show that the Philippines has a lot of potential. We need to communicate the opportunities and the steps the government is taking, but we also need to work together in improving those opportunities,” he explained.

He emphasized the chamber’s call to further improve ease of doing business, and again pushed for amendments to the Retail Trade Liberalization Act that will reduce the required minimum paid-up capital for foreign entrants to the country’s retail sector.

The unified country branding project is part of the Overseas Investment Communication Campaign Strategy being developed with the assistance of the UK Government Communication Service International through its Investment Promotion Programme. — Jenina P. Ibañez

Watchdog gears for dawn raids in fight vs cartels

By Jenina P. Ibañez

A CARTEL, by nature, is clandestine. It’s a secret agreement between companies to cut competition by fixing prices.

Because of this covert nature, a cartel is also hard to catch.

Starting Nov. 12, however, deputized agents in the Philippines can now inspect business premises uninvited, after the Supreme Court upheld the inspection powers of the Philippine Competition Commission (PCC) through a court order.

Global regulators such as the European Commission use dawn raids — so called because surprise visits are usually done in the early morning — to check cartels’ anti-competitive behavior.

Inspections and searches are needed given the clandestine nature of cartels, which are expected to conceal, tamper with or destroy evidence of their anti-competitive conduct, Orlando P. Polinar, PCC Competition Enforcement Office director, said in an e-mail. “Inspections are resorted to when the element of surprise is determined to be an important factor in obtaining evidence.”

The high court on Sept. 10 said the PCC may apply for inspection orders, which may be issued by special commercial courts in the cities of Quezon, Manila, Makati, Pasig, Cebu, Iloilo, Davao and Cagayan De Oro.

The orders may be enforced nationwide.

Under the rules on administrative search and inspection of the Philippine Competition Act, a court must act on the commission’s application within 24 hours.

“That period of 24 hours is reasonable and will not cause undue delay,” Supreme Court spokesman Brian Keith F. Hosaka said in an e-mailed response to questions.

The court order will be effective for up to 14 days and may be extended for another 14 days.

PCC agents can search business premises and land vehicles for books, tax records, documents, papers, accounts, letters, photographs, databases and other electronic information.

Business chambers support the PCC’s inspection powers.

The European Chamber of Commerce of the Philippines (ECCP) trusts the judgment of the high court to take the steps needed to ensure competition measures are faithfully implemented, ECCP President Nabil Francis said in a mobile-phone message. “If properly enforced, this is expected to promote consumer welfare and ensure a level playing field among enterprises,” he said.

The agriculture sector also does not see anything wrong with the commission’s search powers especially after recent concerns about rice middlemen operating cartels to boost retail prices. “We will give the PCC the authority to investigate especially traders, millers and importers who might have benefited from the lifting of the quantitative restriction on rice imports at the expense of farmers,” Philippine Chamber of Agriculture and Food, Inc. President Danilo V. Fausto said.

PCC Chairman Arsenio Balisacan told reporters on Wednesday last week that companies in the food, manufacturing, agriculture and pharmaceutical industries were being investigated.

But some companies are concerned about privacy. While the law allows the PCC to gather evidence, the scope of the probe must be adequately defined, Philippine Chamber of Commerce and Industry (PCCI) President Alegria Sibal Limjoco said.

“Companies should have an effective judicial remedy to seek the removal of privileged documents or intellectual properties that are out of the scope of the investigation order from the seized documents,” she said.

But PCC’s Mr. Polinar said the rules balance due process and strong public interest. “Safeguards have been placed in the rules to ensure that the PCC will only examine, copy, photograph, record or print out information that relate to any matters relevant to an investigation,” he said.

Companies also have a remedy when an inspection order has been improperly implemented, he added.

The agency said a nationwide training program would ensure that inspection orders are properly carried out. It will also coordinate with the Philippine Judiciary Academy in training judges. Seminars for companies and stakeholders will also be held, PCC said.

“The inspections will greatly assist in the conduct of PCC’s investigations, particularly during the covert stage, or when there is a risk that the information being sought will be destroyed or altered,” Mr. Polinar said.

The 1987 Constitution provides that a search or arrest warrant may be issued only once a judge finds probable cause.

Under the PCC’s rules, a search application must describe the subject of the investigation and the premises or offices that it seeks to examine. The commission must also explain to the court how an information being sought is relevant to the investigation of a company for anti-competitive behavior.

“Conducting inspections will send a strong message to the erring entities that the PCC is serious in enforcing its mandate and that entities are better off cooperating,” Mr. Polinar said.

Meralco on track to hit P23-billion core income target for this year

MANILA Electric Co. (Meralco) reported its core net income hit P18.45 billion in the first nine months of 2019. — FILE PHOTO

MANILA Electric Co. (Meralco) expects to post a core net income of at least P23 billion for 2019 as the country’s largest distribution utility has managed to sustain its performance so far this year, company officials said.

“Quite likely the full-year profitability on a core basis of Meralco will be north of P23 billion,” said Manuel V. Pangilinan, the company’s chairman, during a media briefing on Monday to present the third-quarter operating and financial results.

“For the first nine months, the actual core was about P18.5 billion, so it is likely we will achieve the P23-billion-plus core net income for the full-year 2019,” he added.

During the third quarter, Meralco posted a core net income excluding one-off items of P6.14 billion, higher by 5% compared with the level in the same quarter last year. Including one-time gains, its reported net income reached P6.31 billion, up 1% from a year ago.

“The momentum gained in the first half of 2019 was sustained in the third quarter as shown by the 8% increase in sales volume resulting in consolidated growth over 6% for the nine-month period,” said Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, during the briefing.

As of September, Meralco’s core net income hit P18.45 billion, up 11%, while its reported net income was at P18.32 billion, higher by 1% compared with a year ago.

Revenues during the nine-month period rose by 6% to P241.13 billion. Electricity sales accounted for the bulk of revenues at P235.38 billion, or higher by 6% compared with the same period last year.

“Energy sales grew 6.3%, from the previous period last year, at 35,004 gigawatt-hours. Growth was driven by residential [customers], which grew at 8%, followed by commercial at 6% and growth by industrial at 5.1%,” said Ray C. Espinosa, Meralco president and chief executive officer, during the briefing.

He said the nine-month period’s sales performance came at a time of benign inflation, a more favorable interest rate environment, stable foreign remittances and a growing services sector.

Meralco’s customer count as of September grew by 4.2% to 6.82 million. Demand within its franchise area peaked at 7,740 megawatts, which was hit on June 4, and compares with Luzon’s overall peak demand of 11,344 MW on June 21.

In a press release issued during the briefing, Mr. Pangilinan was quoted as saying: “We anticipate sustained growth for Meralco resulting from the country’s continued overall economic expansion as well as growth that will follow the Government’s ongoing infrastructure development programs.”

He also said that the manageable inflation along with increased liquidity in the financial system provides opportunities for growth across all customer segments. He said there is no doubt of a “significant” domestic economic expansion with the foreseen improvement in government public investments in the coming months, and the inflow from remittance of overseas Filipino workers.

On Monday, shares in Meralco slipped by 0.11% to P355.80 each. — Victor V. Saulon