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Meralco Bolts bounce back

THE MERALCO BOLTS notched their first victory in the PBA Philippine Cup, defeating the Alaska Aces, 93-81, in the league’s opening game on Wednesday at the Angeles University Foundation gym in Pampanga.

Allein Maliksi led the way for Meralco, which with the win bounced back from its Philippine Basketball Association (PBA) “bubble” debut loss on Monday while sending Alaska to its second straight defeat.

The Bolts had steady control in the opening half, helped by better shooting than the Aces (51% versus 33%) and balanced scoring.

They held a 29-23 lead at the end of the first quarter then padded it some more to a double-digit advantage, 49-35, by the break.

Sensing they lost much ground in the opening half, Alaska came out more aggressive in the third quarter.

Forward Jeron Teng spearheaded a 17-3 run in the first eight minutes of the canto to level the score at 52-all.

The Bolts, however, were able to survive the onslaught and continued to lead, 65-58, with one quarter left to play.

Rocked in the previous quarter, Meralco began the final canto with a 12-4 blast to get itself more breathing space, 77-62, by the 8:39 mark.

The Aces tried to fight their way back after but with little success.

Meralco still commanded a 91-75 lead with three minutes remaining and held for the win from there.

Mr. Maliksi finished with 17 points for the Bolts (1-1) with guard Baser Amer adding 15 points.

Veteran Reynel Hugnatan finished with 13 points to go along with eight boards while Cliff Hodge had 11 markers.

For Alaska (0-2), it was Mr. Teng who top-scored with a game-high 25 points. He also had seven rebounds.

Vic Manuel was the only other Alaska player who scored in double digits with 18 points.

Wednesday marked the fourth day of the league in the bubble in Clark City which is aimed at completing at least one conference in its pandemic-hit season.

Under the bubble, the teams and the rest of the PBA contingent are holed up in the area for the duration of the tournament.

Meanwhile, games on Thursday will have the Phoenix Super LPG Fuel Masters (1-0) taking on the Northport Batang Pier (0-1) at 4 p.m. to be followed by the Barangay Ginebra San Miguel Kings (1-0) colliding with the Blackwater Elite (1-0) at 6:45 p.m.

In another development, those who want to experience being part of the PBA virtual fan wall may do so beginning Thursday.

The virtual wall, similar to that used in the National Basketball Association during their own tournament bubble, gives the fans a chance to cheer for their favorite teams from the comforts of their homes and see themselves on the LED screens at the AUF Gym and on television.

Links for the virtual wall will be posted on the PBA’s social media platforms with slots offered on a first-come, first-served basis. – Michael Angelo S. Murillo

DTI urges struggling firms to borrow for 13th month pay

TRADE Secretary Ramon M. Lopez said there is “no need” to defer 13th month pay this year, noting that distressed companies can borrow the needed funds to make payroll.

His remarks appear to walk back a statement attributed to him by Labor Secretary Silvestre H. Bello III, who said Tuesday that Mr. Lopez supports a deferment of 13th month pay, instead of exempting companies affected by the pandemic from disbursing 13th month pay as required by law.

Mr. Lopez, in a Viber message Wednesday, said that the matter is being reviewed by the Labor department.

“No official discussion on deferment because companies needing funds can possibly source from loans,” he said, adding that there is “no need” to delay 13th month pay.

He added that he supports either loans or subsidies for 13th month pay in small- and medium-sized businesses.

The President’s Spokesman Herminio L. Roque said Monday the Labor department could study deferment, but he believes that this cannot be done until a new law allows for it.

Employers must release 13th month pay by Dec. 24, under Presidential Decree 851. Implementing rules of the decree allow exemptions for “distressed” companies.

Senate Minority Leader Franklin M. Drilon has said deferment could set a dangerous precedent. — Jenina P. Ibañez

Overhaul seen necessary to prepare education system for post-COVID era

EDUCATIONAL institutions must reconfigure their curricula to ensure their training makes students suitable for the post-pandemic job market, education and technology experts said.

“I think the major challenge now is that what we used to teach may no longer be relevant. When the students go out, they look for jobs. What they were trained for under the old paradigms may no longer be in demand. They may no longer be able to find jobs where they were trained to do while in school a few months ago,” Pamantasan ng Lungsod ng Maynila President Emmanuel A. Leyco said at the BusinessWorld Insights online forum Wednesday.

He noted that many economies and businesses around the world are already reconfiguring themselves.

Many of the transactions in the financial community are already being performed online, and if schools and students are not adept at online technology, they will be left behind, Mr. Leyco said.

The future of schools is not to go back to the old normal, he said.

“Our future is something that will make things available, secure, and safe for us to do. We need all hands on this,” he added.

At the same forum, IBM Philippines President and Country General Manager Aileen Judan-Jiao said that collaboration among various sectors must be pursued to address the immediate needs of the education system.

She said IBM is now in talks with some local government units for a possible partnership to offer technical skills programs under P-TECH, IBM’s global education model.

“The focus of this is to really have the right skills of the future and have the exposure to the real workplace with our industry mentors,” she said.

“Let’s not start from scratch. Let’s begin with what we have and collaborate,” Ms.  Judan-Jiao added.

Tata Consultancy Services TCS iON Sales Director Shashwat Rai advised schools to take advantage of available technology solutions that make online learning possible “without the need to connect to the internet.”

Examples of technologies needed are platforms for digital assessments and interactive learning.

“We’re currently experiencing a massive shift to online learning. The technology that we set up today will matter and will help define the future of our students,” Mr. Rai said.

He added that more innovation is expected to emerge out of the rush to embrace online education.

Both the government and the private sector should work together to ensure that no students are left behind in the online mode of education, Mr. Rai said.

PLDT Enterprise First Vice-President and Enterprise Revenue Group Head Victor Tria said cybersecurity has become a major concern because of the transition to online activities, especially by schools.

“PLDT is working not just on connectivity for online learning, but also protecting that connection,” he said.

Mr. Tria also said PLDT is also partnering with various educational institutions to provide e-learning solutions.

“We recognize that we must remain agile and active. We remain committed to enabling our education sector,” he added. — Arjay L. Balinbin

Coal, hydro plants expected to mitigate Malampaya shutdown

WWW.NAPOCOR.GOV.PH

THE possible uptick in power prices next month due to maintenance on the Malampaya field can be cushioned by dispatching more power from baseload coal and hydropower plants, the independent market operator said.

In November, the Malampaya gas-to-power facility is due for maintenance, which will restrict the supply to natural gas-fired plants and possibly driving up power prices. But the Independent Electricity Market Operator of the Philippines (IEMOP) hopes increases can be tempered by other power sources.

“In that case, we hope na ‘yung malalaking (the big) baseload coal plants na naka-under maintenance ngayon ay tapos na (can complete their maintenance works in time). Otherwise, magkakaproblema talaga tayo (we will have a problem),” said IEMOP Chief Operating Officer Robinson P. Descanzo during a virtual briefing, Wednesday.

“Also, because of La Niña, dampened ang demand and marami tayong tubig, so makakatulong ang hydro, (demand is dampened and water is abundant, so the hydropower plants can help)” he added.

The Wholesale Electricity Spot Market (WESM) charges in September rose to P3.48 per kilowatt-hour (kWh) primarily due to power plant outages. But reduced demand could bring down the October average, the market operator said.

In the first few days of October, the market’s peak demand was 12,259 megawatts (MW), down 5.4% from a year earlier and 327 MW less than the previous month. The market price currently stands at P2.38/kWh with supply at 13,411 MW.

“Ang pinaka-main reason na nakikita natin ay dahil mas malamig na ‘yung panahon, then marami na ring mga pag-ulan every day (The main reason for reduced demand is the cold weather and there are rainy days),” said John Paul S. Grayda, price validation and analysis manager at IEMOP.

Power demand remains low as quarantine protocols remain in place, he added.

With La Niña ongoing apart from the quarantines, the IEMOP projects a possible power demand downturn this year.

“We see na ‘yung demand is still ‘di pa rin niya ma-breach ang level last year or mas bumaba siya, magkaroon ng downtrend, (Demand has still not breached last year’s level and could turn lower),” Mr. Grayda said.

The climate event is expected to persist until the first quarter of 2021.

The WESM operator has observed increased power consumption when quarantine protocols are eased. — Adam J. Ang

DA seeks improved rice quality to address shifting preferences

THE Department of Agriculture (DA) said it hopes to improve the quality of domestic rice due to shifting consumer preferences, and to better align farmers’ production with market expectations.

“We need to adapt to the changes brought about by the Republic Act No. 11203 or the Rice Tariffication Law, one of which is consumers’ preference for quality rice. This is now an integral part of the overall transformation of the country’s rice industry,” Agriculture Secretary William D. Dar said in a statement after consulting with farmers, millers, and traders.

Mr. Dar said traders and millers reported that many farmers produce low-quality palay which when milled produces rice that is easily broken and with a chalky consistency.

“For the succeeding cropping seasons, we are not just after attaining production targets, but also producing quality rice for Filipino consumers that will provide higher income for farmers,” Mr. Dar said.

According to rice millers and traders, consumers want rice varieties that are long-grain and tastes and smell good when cooked. The market is demanding so-called four-M rice. The four Ms stand for maganda, mura, mabango, at malambot (attractive, cheap, fragrant, and soft).

The DA said that in an informal survey, consumers who said they prefer rice with those attributes accounted for 40% of the market.

Rice millers and traders urged Mr. Dar to plant varieties that hold up to the milling process and possess good eating qualities.

They also offered assistance to the Philippine Rice Research Institute in promoting recommended rice varieties to be used by farmers in future planting seasons.

Mr. Dar said he will consult with seed producers, farmers, traders, and other stakeholders to define current industry trends, market demand, consumer needs and preferences, and any required policy shifts or reforms.

“Kung ano demand ng market, kung ano ang pangangailangan ng consuming public iyon ang dapat i-produce ng ating mga magsasaka. (Market demand and the needs of the consuming public should determine what farmers produce) We need to adapt to changes brought about by the new regime,” Mr. Dar said. — Revin Mikhael D. Ochave

Senate may call inquiry to discuss post-Malampaya plans

SENATORS said they want to look into the government’s plan for Malampaya, the Philippines’ sole natural gas field, which is expected to be depleted within the next few years, posing problems for energy security.

The upcoming sale of the operating shares of Shell Philippines Exploration B.V. (SPEx) in the Malampaya gas-to-power project prompted Senators Sherwin T. Gatchalian, Panfilo M. Lacson, and Vicente C. Sotto III to file Senate Resolution No. 533 to examine the post-Malampaya outlook for energy.

“We’re looking at the larger picture which is the energy security of the country,” Mr. Gatchalian said in a statement Wednesday.

The Malampaya field off northern Palawan accounts for 3,200 megawatts of electricity and 21.1% of gross power generated in 2019.

According to estimates by the Department of Energy, the field’s reserves will be depleted by 2027.

SPEx operates the natural gas field under Service Contract (SC) 38 alongside Udenna Group’s UC Malampaya Philippines Pte. Ltd. and state-led Philippine National Oil Co.-Exploration Corp. (PNOC-EC).

The Senators will look into SPEx’s decision to sell its 45% operating stake. Last month, the exploration firm said it is looking to sell its share in the project in part of its rationalization efforts to keep itself afloat during the pandemic.

“As part of an ongoing portfolio rationalization to simplify and increase the resilience of its business, Shell is exploring its options with a view to divest its interest in SC 38,” SPEx General Manager Rolando J. Paulino said.

Mr. Gatchalian hopes that the next Malampaya operator will have the technical capability to run the field.

“They should be able to demonstrate that they can operate this rig competently with technical expertise and in the future, if ever that area has potential, they should be able to demonstrate that so they can explore and develop that area,” he said.

The Udenna Group in a statement two weeks ago called on the PNOC-EC to acquire SPEx’s share as it believed they are the “most suitable party” for it.

Both Ramon S. Ang’s San Miguel Corp. and companies controlled by Manuel V. Pangilinan expressed interest in buying the Malampaya shares.

Meanwhile, the senators wanted to discuss the consortium’s plan to extending the gas field’s life beyond the end of its contract by 2024.

“This is not a plain and simple business transaction. It affects all of us because of energy security issues. We want to be assured that we will not run out of fuel supply in the immediate future,” Mr. Gatchalian said.

The proposed inquiry will also look into the compliance of the Malampaya consortium and the government with Presidential Decree No. 87, or the Oil Exploration and Development Act.

The Malampaya project has generated P261.68 billion in revenue for the government since 2002, becoming a major source of funding for various energy resource development programs and initiatives. — Adam J. Ang

On the lifespan of corporations: Terms and conditions

One of the vital considerations when setting up and maintaining a corporate entity in the Philippines is the length of its existence. Shareholders must decide how long they expect the corporation to stand on its feet and stay in operations. Previously, the answer to this inquiry has been restrictively time-bound. 

Under the previous Corporation Code of the Philippines (Batas Pambansa Bilang 68), a corporation cannot exist for a period exceeding 50 years. While this has always been subject to extension, corporations that have reached this maximum “point” cannot initiate the extension earlier than five years before the expiry date.

With various reports filed before state agencies, aggravated by day-to-day corporate documentation, corporations that have set their sights on operating longer than the statutory period run the risk of forgetting, or worse, losing their existence due to faulty filing. Moreover, long-term transactions, and those executed in the latter years of the corporate term, though brief in nature, may suffer or endure a corporate existence issue.

The Revised Corporation Code of the Philippines (RCC), which took effect on Feb. 23, 2019, has made a significant change in this aspect. Under Article 11 of the RCC, the term of a corporation is now perpetual, unless stated otherwise. Depending on their purposes and needs, companies are now conveniently given the option to exist for a prolonged period.

Under Memorandum Circular (MC) 22-2020, the Securities and Exchange Commission (SEC) has issued further guidelines on how corporations, current and prospective, may elect and modify their corporate life in the Articles of Incorporation (AoI).

As a rule, companies that were incorporated before the effective date of the RCC shall now automatically have perpetual existence. By law, the change shall not require further action on the part of corporations. For documentation purposes, however, companies may amend their respective AoIs to reflect this perpetual term. The amendment must be supported by a vote of a majority of the Board of Directors or Trustees, and a vote of the stockholders representing a majority of the outstanding capital stock, including the non-voting shares. For non-stock corporations, the vote of a majority of the members must be secured.

Understandably, some may prefer to keep their existence limited. Even if incorporated before the RCC, these companies should notify the SEC of the intention to retain their original term. The notice must be filed with a Directors’ Certificate, stating that the corporation has elected to maintain the original corporate term as approved by a majority vote of the Board of Directors or Trustees, and a vote of the stockholders representing a majority of the outstanding capital stock, including the non-voting shares, or a majority of the members, for non-stock corporations. Once validated, the SEC shall issue a Certificate of Filing Notice to Retain Specific Corporate Term.

Corporations intending to limit their term must notify the SEC on or before Feb. 23, 2021. Otherwise, their term is deemed perpetual.

Further, MC 22-2020 also grants corporations with a specific term the choice to extend or shorten their existence by amending their AoI. In case of an extension, the application should not be filed earlier than three years before the expiry date of the corporate term. In anticipation of possible changes in the business environment, corporations have the option to change their perpetual existence to specific terms and vice versa. These acts should be approved by vote or written assent of a majority of the Board of Directors or Trustees, and a vote or written assent of the stockholders representing at least two-thirds of the outstanding capital stock of the corporation.

It is instructive to mention that Article 11 of the RCC also allows the revival of corporate existence for corporations whose terms have expired.

This was clarified under MC 23-2019, where the SEC allowed the following entities to file a Petition for Revival of Corporate Existence (“Petition to Revive” for brevity):

a) Generally, a corporation whose term has expired;

b) An Expired Corporation whose Certificate of Registration has been revoked for non-filing of reports, provided that it shall file the proper Petition to Lift its Revoked Status, which may be incorporated in its Petition to Revive, and must settle the corresponding penalties thereof;

c) An Expired Corporation whose Certificate of Registration has been suspended, provided that it shall file the proper Petition to Lift its Suspended Status, which may be incorporated in its Petition to Revive, and must settle the corresponding penalties thereof; or

d) An Expired Corporation whose corporate name has already been validly re-used, and is currently being used, by another existing corporation duly registered with the SEC, provided it change its corporate name within 30 days from the issuance of its Certificate of Revival of Corporate Existence.

The act of revival must be accompanied by at least a majority vote of the Board of Directors or Trustees, and a vote of at least majority of the outstanding capital stock, or the members. Moreover, applications made by banks, banking and quasi-banking institutions, pre-need, insurance, and trust companies, non-stock savings and loan associations, pawnshops, corporations engaged in the money service business, and other financial intermediaries require a favorable recommendation from their respective regulators.

If the petition is meritorious, the SEC will issue a Certificate of Revival of Corporate Existence, restoring to the corporation all its duties, debts, and liabilities that were present before revival. As earlier discussed, the corporation will enjoy a perpetual term of existence, unless the petition specifies another period.

Equitably, stockholders who dissent to any of the changes in corporate term or the revival of the corporate existence must be allowed to exercise their right of appraisal, or the right to dissent and demand payment for fair value of their shares.

These amendments have been a welcome development enabling corporations to carry out their businesses unconstrained by a limited lifespan. With a guaranteed continuity of term, we can only expect a positive impact, and hopefully sustainable growth, on current and future corporate entities doing business in the Philippines.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Miguel Jaime C. Encarnacion  is a senior associate at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

miguel.jaime.encarnacion@pwc.com

The challenge of easing

 

I receive with cautious optimism the news that Malacañang is easing public transportation woes by approving the “one-seat apart rule” for public vehicles like buses and jeepneys. It is also increasing train capacity to 50% from 30%. Although jeepney operators are asking if the new seating rule applies even to vehicles already installed with plastic dividers between passengers.

Regulatory agencies are now drafting the guidelines on how to implement the Palace directive. Meantime, minimum health and safety standards in place include requiring face masks and face shields for PUV passengers. The Cabinet also allows provincial buses, motorcycles taxis, shuttles, and transportation network vehicle service to gradually resume operations.

These easing initiatives are intended to help move more people, particularly to and from work, as more businesses are restarted. Already, the Department of Trade and Industry has issued rules for certain industries to resume full operations. The Palace is also looking at easing age restrictions, to benefit those 15–65 years old, and shortening curfew hours to 12 m.n.–5 a.m.

More jeepney routes have also been reopened, with regulators reminding jeepney operators and drivers to limit the number of passengers to 50% capacity meantime; to ensure physical distancing; and to strictly implement the “no mask, no shield, no ride” policy. These rules apply to all types of PUVs on roads now.

Easing transportation restrictions can go a long way in helping particularly daily wage earners get back on their feet. A friend, for example, is already seven months behind on rent and is being threatened with ejection. The landlord cannot be blamed. He is also in dire need of cash for chemotherapy, being a cancer victim himself. The situation is difficult, but compassion still prevails.

My friend works at a salon, and works on commission. With most salons shuttered for several months, there was no work, and thus no income. Salon work resumed only last month for my friend, but few customers have been coming in. Service is also by appointment only, and so work depends on customers’ time options.

There is also difficulty in getting to work, with few options available. The most affordable option to a wage earner, jeepneys, operate in their place only from 5 a.m. to 10 a.m., and then again in the late afternoons. No trips in between. So, even if client appointments are in the afternoon, my friend needs to leave the house before 10 a.m. to catch the “last” trip in the morning.

Their employer also does not allow them to “stand by” at the shop, and perhaps rightly so. So, even if at the vicinity of work by 11 a.m., my friend needs to “hang” somewhere else until the 2 p.m. client comes in. Then, after rendering service, my friend must leave the premises unless the next client appointment follows soon after.

And then, there is the difficulty again in catching a jeepney ride back home. There are instances that my friend spends more on transportation in a day than what can be earned in commission. Of course, beggars cannot be choosers. There are good days, and not so good days. Costs are simply borne in the hope of making a profit another day.

This is the reality many of our workers, mostly daily wage earners, face nowadays in Metro Manila. Not many companies can afford to provide workers’ dormitories or shuttle services. And very few can be expected to maintain such arrangements or services long-term. Most, if not all, of those companies who provide such services now will most likely have to end them by the end of this year.

Some businesses have closed, and revenues are down for most others. Business costs are also higher for a number of firms as the cost of “self-transportation” and maintaining health protocols continue to outweigh savings from building management and utilities as employees work from home. A big cost, real estate, remains. Even as more people work from home, many employers still have not opted to cut down on real estate or office space.

The availability of transportation, or improved access to affordable and safe public transportation, can go a long way in helping particularly daily wage earners fend for themselves. It can also help salaried employees who have had to shell out a little more for transportation daily as their share in the subsidized cost of going to work using private shuttles, or taking taxis or TNVS. Moreover, more public transportation can help troubled businesses save on cost by cutting down on their spending for private shuttles.

More important, more public transportation means more public transport workers going back to work, earning daily, and getting off streets as beggars. It helps restore their dignity and sense of purpose. And it allows them to again earn a decent living for their families. For sure, with drivers and operators back in business, fewer families will continue to go hungry.

The reality is that while businesses are allowed to resume 100% operations, they will not run without a sufficient number of workers. And workers, while fit and ready to go to work and earn, cannot make it to work unless transportation is available. So, easing transportation restrictions will be a major boost. One can only hope regulators can draft guidelines for this fast enough.

The challenge, however, is how to ensure public health and safety as soon as more public utility vehicles are put in operation. For sure, there will be a tradeoff. At some point, particularly at the start, we may see an increase in the number of COVID-19 cases, particularly in urban areas. And once provincial buses also start running their routes, even the virus will also begin to enjoy more “travel” options.

I am not privy to data whether people are more likely to get sick at home, at work, or while commuting to and from work. But, from experience, it seems fewer people got sick when most everybody was made to stay home. And that the number of cases started to go up as soon as we started easing restrictions. And, most of those getting sick appear to be of working age.

Indeed, we are stuck between a rock and a hard place. Easing transportation restrictions is timely, if not necessary. But there will be consequences. Are we prepared to deal with these consequences? We have had a hard time containing the spread of COVID-19 to date. But the virus, on its own, does not travel. It spreads mainly as people carrying it move around. And that is precisely what will happen once transportation is made more available. We just have to be ready for this.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

Zooming in on the SPEAKER: Alan vs Allan

 

For the last few weeks, we have been witnesses to a highly contentious, if not bitter, speakership race between former Speaker Alan Peter Cayetano and newly elected Speaker Marinduque Rep. Lord Allan Velasco. This bitter fight stems from the highly publicized “term-sharing agreement” between the two gentlemen which was arrived at, if not even brokered by no less than the President, at the beginning of the 18th Congress in July 2019.

However, as the supposed end of the first portion of the deal approaches, it has degenerated into a virtual barroom brawl and has unfortunately brought deep instability in the institution they both seek to lead. Over the past few weeks, we have seen Rep. Cayetano offering to resign as Speaker of the House — an offer that the plenary house rejected; congressmen like Rep. Arnolfo Teves, Jr. and Lito Atienza claiming that they were literally and figuratively muted during videoconference sessions; and a steady barrage of surrogates from both camps doing the rounds in media.

The controversy turned for the worse when then-Speaker Cayetano suspended the House sessions until November 16, effectively preventing the turnover of the speakership to Velasco on Oct. 14. Three days later, President Duterte invoked his constitutional authority and called Congress to a special session from Oct. 13 to Oct. 16 “in order to resume the congressional deliberations on the proposed 2021 national budget and to avoid any further delays on the prompt passage thereof…”

A day before the special session, the camp of Velasco convened at the Celebrity Sports Plaza in Quezon City where they declared the speakership open with 186 votes. The camp of Cayetano immediately called for a press conference characterizing it a rump session which he would not recognize.

In the end, when the numbers were clear, Cayetano admitted defeat and offered his irrevocable resignation as Speaker of the House by going live on Facebook while the majority of the House ratified Velasco’s speakership election held a day earlier.

The intense desire of both camps for the position of Speaker gives us pause to think and trace back why there is such a fierce battle to hold the position. Indeed, the Speaker of the House of Representatives is the administrative head of the lower house. The lower house, as we know, is composed of 305 representatives from congressional districts all over the country and party lists representing the marginalized sectors.

Our Constitution requires a majority vote of all Members of the House to elect its Speaker. The Internal Rules of the 18th Congress supplied that the election should take place at the commencement of each Congress and whenever there is a vacancy. A plenary session is, therefore, required before Cayetano’s resignation and Velasco’s takeover under the term-sharing agreement are acted upon.

This day and age, we are all witnesses to how Zoom meetings dominate most of the deliberative processes. The same is true even for the House and Senate sessions which are now done via a hybrid of onsite and online attendance.

Interestingly, we see how the host of a Zoom meeting can maintain order or control discussions by “muting” its participants. Applied to a legislative session, this power to mute would be an interesting modern application of the widely known Robert’s Rules of Order, where the following rules of procedure are prescribed: there can only be one subject that may be before a group at one time; only one person may speak at any given time; that all members have equal rights; and that the rights of the minority must be protected, but the will of the majority must prevail.

We, therefore, have a glimpse of what is at stake behind the speakership race between Cayetano and Velasco. The stake is further emphasized by the fact that under the Constitution, the House, led by the Speaker, possesses the exclusive power to initiate all cases of impeachment against the President, Vice-President, Members of the Supreme Court, Members of the Constitutional Commissions, and the Ombudsman. The House also holds the power of the purse as all appropriation (national budget), revenue or tariff bills, bills authorizing increase of the public debt, bills of local application, and private bills originate exclusively in the House of Representatives (Constitution, Article VI, Section 24). Some may even say that the powers granted to the Senate pale in comparison with that provided to the House.

Particularly under the internal rules of the 18th Congress, the Speaker is the one who prepares the legislative agenda for every regular session. The Speaker also exercises general supervision over all House committees which empowers him to ensure that the priority legislative measures of committees are attuned to the legislative agenda of the House. Of particular note are the committees on Ways and Means, Justice, Public Works and Highways, Local Government, and Good Government and Public Accountability, in charge of deliberating some of the country’s most important issues.

The legislative agenda, its order of discussion, and its importance to the House are determined and dictated by the seating Speaker as the political and administrative head of the House. The extent of this discretion was displayed in the swift and immediate passage of the Bayanihan Law II. In contrast, the renewal of ABS-CBN’s legislative franchise, according to some, was not afforded the urgency it deserves given the implications of the non-renewal of its franchise.

With this much power and influence wielded by the Speaker, it becomes clear why the post is much coveted. On the one hand, there is a view that this term-sharing agreement between Cayetano and Velasco is too transactional and disregards the discretion of the members to select their leader. On the other hand, some say disregarding the agreement is a violation of a gentleman’s agreement between two individuals who essentially belong to the same political bloc.

In the end, however, the most important consideration is whether the public officials involved remain faithful to their constitutional duty of serving the people with utmost responsibility and integrity. This is all too clear today when the House is called upon to act on how to fund the government during the time of an unprecedented pandemic. Both camps claim they are focused on this higher cause. How the budget is discussed and eventually passed will be the final judge of this.

This article is for informational and educational purposes only. It is not offered and does not constitute legal advice or legal opinion.

 

Christine P. Monderin is an Associate of the Litigation and Dispute Resolution Department (LDRD) of the Angara Abello Concepcion Regala & Cruz Law Offices or ACCRALAW.

(632) 8830-8000

cpmonderin@accralaw.com

Exits and entrances

LEAVING a high-profile and powerful position without much ado is quite a feat. Lack of ado, or fuss, is often unavoidable. Some public statement, preferably unremarkable, on the reason for the exit, is called for. (I just couldn’t bring the team to the finals. I need to give some other coach a chance to do this.)

The presumption on sudden exits is usually correct. It was a push. Unless the subject gets a clearly superior job offer.

An “official line” is still needed, even if not necessarily believed. There is this ostensible explanation that friends and relatives can openly discuss when the person concerned is within hearing distance. What is surmised behind the back as to “what really happened” is something else.

Statements should be moderately plausible. The usual exit explanations have to do with health. Expressed is a need to be free of stress and attend to one’s “wellness.” This new term for health includes both physical and mental well-being, not just the absence of illness.

There are jobs that have set terms. There are rules governing their end, as provided for in a constitution, or a gentlemen’s agreement. That there are rumblings for a change in the rules in the middle of the game can only be viewed with suspicion. Still, these laws and handshakes do not deter attempts to extend terms and upset a scheduled transition — I thought you were talking about “germ-sharing” and the need for social distancing.

Unavoidable exits (like being replaced) are publicly explained as: a) needing more hours with the family, who have been neglected in the mad dash for providing for their yearly trips — even when working from home; b) rekindling a neglected hobby like writing a novel or attending to the family farm of organic mushrooms; and c) getting into a new business venture (I am looking into fintech right now).

Exits, anyway, are quickly followed by entrances. Even in a pandemic, there are still people getting hired, even poached. These replacements are introduced in a Zoom meeting even as the exit door has barely closed on the other fleeting figure. As a rule, there are more exits than entrances, even in buildings. After all, the exits for fire need to be provided.

Graceful exits are not always possible.

In case of firing for cause, it is the company that issues the statement which allows no other spin — He is no longer an executive of the company due to his questionable transactions resulting in corporate losses, and the sudden rise in his personal fortune.

Some companies even go to the extent of taking out an ad (in the classified section) with a photo of the departing executive and the unsavory circumstances of his departure. With social media, the digital exit is in real time: this executive no longer represents the company and any transactions entered by him for the company will not be honored. There is a warrant out for his arrest. (Do not even have coffee with him.)

This total repudiation of the exiting employee’s good name leaves little to the imagination. The only hope is that the newspaper used has a low circulation, and the social media posts have no following. But word of mouth takes care of those shortcomings.

There’s not much grace needed when leaving one job for another that is clearly superior. Here, explanations are optional and a public statement is not even required. When asked why one left the old job, there is no call for details on the new compensation package — they gave me a better car. Some generous remarks on the old employer make for a classy exit — that company taught me a lot and I hope I was able to contribute to its sterling reputation. This ensures a few going-away lunches (take me with you) and some crocodile tears.

There are those who do not bother with public statements. When asked why they left such an attractive job with a very hefty pay and fantastic benefits, they merely smile and say quite bluntly — I did not want to go. I was unceremoniously pushed out kicking and screaming. My copious tears did not invite mercy in any form. But I had a good sit package.

The best exits are quiet… just like entrances — is this seat taken? 

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

No to free electricity from Meralco, genco

The International Monetary Fund (IMF) has released the October 2020 update of its World Economic Outlook (WEO) with more macro data like GDP (gross domestic product) size and growth in 2019 onwards which were not available in the April 2020 WEO.

Listed below the top five biggest economies in the world, then the major economies of East Asia. The IMF projects a -8.3% GDP contraction of the Philippines this year, second deepest in Asia after India.

I added electricity generation, data from the BP Statistical Review of World Energy (SRWE) 2020. For the Philippines and many developing or emerging economies, there is indeed a close relationship between GDP growth and power demand. For the Philippines, GDP growth average from 2014 to 2019 ranged from 6% to 6.6% while electricity generation over the same period ranged from 5.8% to 6.1% (see table 1).


As this column has consistently argued, the country’s deep contraction is not caused by the pandemic per se but by public hysteria and government lockdowns. The Concerned Doctors and Citizens of the Philippines (CDC PH) continues its campaign to “Flatten the Fear” not the economy by calling for lifting the lockdown — only the elderly and those with underlying conditions and sickness would be asked to isolate and quarantine.

Last week, a group of NGOs called for “a moratorium on bills incurred during the ECQ period, and online petition called #TigilBayad” and particularly targeted Meralco in their press release which they also presented to Congress and the Energy Regulatory Commission (ERC).

Tigil Bayad or Stop Payment, or simply free electricity? This is socialistic thinking based on emotion and not reason. When people go to a public market, they have to pay for even half a kilo of tomatoes or potatoes; nothing is free because farmers, traders, and city vendors have to earn and feed their families too.

And the ERC was pressured in a Congress hearing, a report in BusinessWorld said (“Regulator may extend freeze order vs. power cuts to end of the year,” Oct. 14).

In a monthly media briefing for October by the Independent Electricity Market Operator of the Philippines (IEMOP), officials reiterated that with significant decline in power demand, electricity prices remain low, nearly half of their levels in 2019 both in the customer effective spot settlement price (ESSP) and load-weighted average price (LWAP, see table 2).


So if electricity spot prices remain low, and the generation charge becomes cheaper, why should the ERC impose an extended no disconnection order for people who do not pay?

ERC Chair Agnes VST Devanadera mentioned Republic Act No. 11494, or the Bayanihan to Recover as One Act, or simply Bayanihan II. I checked the law, Section 4. “COVID-19 Response and Recovery Interventions,” sub-section (vv) has a horrible last sentence,

“… the minimum 30-day-grace period and staggered payment … shall apply to all payments due within the period of the CQ in the entire electric power value chain to include generation companies, the transmission utility, and distribution utilities.”

There are three important things to respond to this provision.

One, it should apply only under ECQ or MECQ periods, so that under a more relaxed GCQ, people should pay, or be disconnected if they do not pay.

Two, if the gencos (power plants), transmission (NGCP) and distribution (DUs, ECs, RES) are not to be paid, then other sectors and charges should also not be paid — universal charge by NPC and PSALM, feed in tariff (FIT) by Transco, local taxes by LGUs, VAT and excise tax by BIR.

Three, prolonged payment waiver creates a “moral hazard” problem. If people cannot be disconnected if they do not pay,  why should they? And time comes that their accumulated bill has become bigger because they did not pay for four or eight months, they can lobby for a mandatory big discount, and all the populist NGOs and legislators driven by the politics of envy will be on their side.

I hope that the ERC and DoE will consider these points. The freeze order on power disconnection until end-December is wrong.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

Folayang set for ONE Championship return fight later this month in SG

FILIPINO EDUARD FOLAYANG battles Australian Antonio Caruso at ONE: Inside the Matrix on Oct. 30. — ALVIN S. GO

By Michael Angelo S. Murillo, Senior Reporter

FILIPINO mixed martial arts veteran Eduard “Landslide” Folayang is set to make his return in the ONE Championship circle later this month in a fight against Australian Antonio “The Spartan” Caruso.

Last fought in ONE in January where he absorbed a split decision loss, Mr. Folayang (22-9) of Team Lakay ends his nine-month hiatus brought about by the coronavirus pandemic and looks to get back on the winning track at “ONE: Inside the Matrix” in Singapore on Oct. 30.

“I’m so excited to be back in action again, especially since having to wait so long in lockdown. We’ve been eagerly anticipating when we will be able to return to competition, and I am glad that moment has finally arrived. We’re absolutely pumped and training very hard right now to put on a good show,” said Mr. Folayang, who has been training by himself and with his team in Baguio City all this time.

“The past few months have been very difficult for all of us. Everyone in the world has been affected by COVID-19, especially here in the Philippines. It posed a few challenges for our training early on as we had to stay at home and practice social distancing. Even in isolation, the work never stopped and we used our time to sharpen our tools and skills,” he added.

In his last fight, Mr. Folayang, 35, failed to make it back-to-back wins in ONE, losing to Dutch Peter “The Archangel” Buist by split decision.

A short-notice replacement opponent, Mr. Buist’s length proved problematic for Mr. Folayang.

He tried to find ways to better fight his opponent, but in the end, two of three judges saw the bout in favor of Mr. Buist.

Against Mr. Caruso, the Filipino is bracing for a tough challenge, but confident that they are prepared heading into it.

“Antonio Caruso is a strong fighter. I’ve seen his previous fights. I don’t think he’s a guy you can really take lightly. Of course, I am doing everything I can to prepare for his style. As usual, it’s going to be about dictating the pace and making him fight my fight. You can’t underestimate anyone in this game, so I’m not about to start with him,” he said.

Adding, “We’ve come up with a strong game plan, I believe. And we have all the bases covered. Whether this fight is spent on the feet or ends up on the ground, I’ll be ready.”

ONE: Inside the Matrix is highlighted by four world title fights, headlined by the middleweight world championship clash between champion Aung La Nsang of Myanmar against challenger Reinier De Rigger of the Netherlands.

Co-headlining is lightweight champion Christian Lee of Singapore versus Moldova’s Iuri Lapicus.

Featherweight champ Martin Nguyen of Vietnam/Australia, meanwhile, clashes with Thanh Lee of Vietnam/United States while women’s strawweight champion Xiong Jing Nan of China tries to defend her belt against Tiffany Yeo of Singapore (SG).

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