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PAO asks Duterte to veto removal of its forensics lab budget

THE PUBLIC Attorney’s Office (PAO) has asked President Rodrigo R. Duterte to veto a provision in the 2020 budget that does not provide funding and limits other allocations from being used for its forensics laboratory.

In a letter dated Dec. 11, PAO cited that the P19.5 million allotted for the purchase of forensic laboratory equipment was deleted from the 2020 National Expenditure Program (NEP).

It added that there is a provision inserted in the General Appropriations bill that restricts PAO from using its maintenance and other operating expenses budget “to the effect that no funds may be used for the meetings and other maintenance and operating expenses of the PAO Forensic Laboratory.”

“These modifications in the President’s budget or the NEP have only one objective — to paralyze the PAO Forensic Laboratory and jeopardize its operations, depriving them the opportunity to assist the clients of the PAO,” the letter read.

It noted that it “cannot help but wonder” if the said modifications was “an act averse to the PAO’s and Administration’s efforts” in handling cases related to deaths allegedly due to Dengvaxia.

PAO said the deletion of certain allocations is unconstitutional because the Philippines Constitution mandates free access to courts and adequate free legal assistance.

“The changes in the budget would lead to its clients’ failure to present forensic evidence in their case,” it said.

“Securing the services of private practitioners to challenge the NBI’s/PNP’s/CHR’s (National Bureau of Investigation/Philippine National Police/Commission on Human Rights) forensic findings would be to practically deny PAO clients of such opportunity — because they are, in the first place, indigents,” PAO said.

“The inevitable consequence thereof is the denial of adequate legal assistance to PAO clients by reason of their poverty,” it added.

It would also violate the proprietary rights of the office’s eight complement plantilla personnel.

PAO said the Forensic Laboratory Division was created by the Department of Budget and Management (DBM) and is a “small unit” under the Office of the Chief Public Attorney.

“We humbly reiterate that the 2018 GAA (General Appropriations Act) gave the DBM the power to approve minor changes in the organizational structure and staffing pattern of agencies, and create positions up to a division chief and equivalent level under the Executive branch — the legal basis for the change in the structure of the Office of the Chief Public Attorney,” it said.

The letter was signed by PAO Chief Persida V. Rueda-Acosta and seven other officers. — Vann Marlo M. Villegas

PHL gov’t to engage UN in drug war through documentary

THE GOVERNMENT will engage the international community, particularly the United Nations (UN), on the Duterte administration’s anti-illegal drug campaign by showcasing a “balanced” documentary entitled Gramo, according to Presidential Communications Operations Office (PCOO) Secretary Jose Ruperto Martin M. Andanar.

The government-produced 50-minute film, which will have a version dubbed in English, presents measures being taken against illegal drugs and how those behind the trade are being made accountable.

“Ito’y isusumite natin sa ating Permanent Mission sa United Nations sa Geneva at sa New York at sila na ang bahala magbigay sa UN (We will submit this to our Permanent Mission to the United Nations in Geneva and New York, and it’s up to them to give it to the UN),” Mr. Andanar said on Thursday.

A screening is also planned for the diplomatic community in the country and other international audience.

The PCOO will also be partnering with other government agencies and private institutions in the transport and media sector to broadcast the film.

“It is very important to inform the public where we are taking this (drug war) for the next three years” Mr. Andanar said.

The UN has been critical of the Duterte administration’s anti-drug campaign, particularly on the issue of extrajudicial killings allegedly carried out by the police.

Last July, the UN Human Rights Council announced that it will conduct an investigation on the alleged crimes linked to the drug war.

President Rodrigo R. Duterte has repeatedly lashed at what he considers the meddling of international agencies in his drug war policy. — Genshen L. Espedido

Andanar denounces US Senate committee’s ‘impudent’ resolution

PRESIDENTIAL COMMUNICATIONS Secretary Jose Ruperto Martin M. Andanar denounced a US Senate committee resolution urging the Philippine governmentto release Sen. Leila M. de Lima and drop the charges against Rappler Executive Editor Maria A. Ressa, calling such a move as “impudent.”

“We find the passage of U.S. Senate Resolution 142 by the U.S. Senate's Foreign Relations Committee highly impudent,” Mr. Andanar said on Friday.

“To try to strong-arm the government into freeing Senator De Lima and dropping charges against Maria Ressa is infringing on our country's legal process and system, to which they have no say whatsoever,” he said.

The secretary pointed out that the cases against the two are undergoing the country’s independent judicial process.

Mr. Andanar said they see a “pattern” wherein Ms. De Lima and Ms. Ressa appear to be lobbying their case before the media and the US legislature “because they know that here, there is no merit to their claims.”

“We continue our good relations with the United States and our independent foreign policy. But, the government sees no point to give attention to an ostensible move by people who have little knowledge of the real matter at hand,” Mr. Andanar said.

In the resolution, the foreign relations committee said Ms. De Lima, a staunch critic of the administration’s war on drugs and has been detained since February 2017 over drug charges, was detained “solely on account of her political views and the legitimate excercise of her freedom of expression.”

The committee also said that the cases against Ms. Ressa, who is also critical of the administration, for cyber-libel and tax evasion charges is part of a pattern of “weaponizing rule of law to repress independent media.”

The Senate committee also asked President Donald Trump to sanction enforcers and Philippine officials liable for killings on the war on drugs and the arrest of Ms. De Lima, including revoking their US visas and freezing their assets in the US.– Vann Marlo M. Villegas

DBCC creates sub-committee on SDGs

THE DEVELOPMENT Budget Coordination Committee (DBCC) has approved the creation of a sub-committee on Sustainable Development Goals (SDGs) which is expected to help authorities align plans and projects for these targets.

National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon said the establishment of an SDG sub-committee under the DBCC serves as a “strong move” for the government in aligning its development programs for resource allocation.

“The budgetary process presents a good mechanism to support integration of the SDGs. Strong policy integration and alignment of resource allocation with the country priorities on the SDGs will help create an enabling environment for sustainable development,” Socioeconomic Planning Secretary Ernesto M. Pernia was quoted as saying in a statement on Friday.

The sub-committee will be co-chaired by two undersecretaries from the NEDA and the Department of Budget and Management (DBM), along with members from other concerned government agencies.

The sub-committee will give their advice on policy integration and resource allocation, SDG-related reports such as the Voluntary National Review, the monitoring of programs for the SDGs and other stakeholder engagements.

“We are committed to the SDGs because it is the key to ensure that current and future generations of Filipinos achieve their AmBisyon (ambition),” Mr. Pernia said.

The SDGs serve as a blueprint for countries around the world to achieve 17 goals set to address poverty, inequality, climate change, environmental degradation, peace and justice, among others. — B.M. Laforga

Fitch Solutions trims 2020 PHL sugar production forecast

SUGAR PRODUCTION in the Philippines for crop year 2019/2020 is projected to reach 2.1 million tons amid higher domestic consumption and as local prices remain higher than global levels, Fitch Solutions Macro Research said in its industry trend analysis.

“While unfavorable weather in recent months will lower yields and overall production in the short term, gradually decreasing sugar area due to prolonged labor shortages and rising competition from cheaper imported sugar will weigh on the industry in the longer term,” it said in the report published Dec. 12.

This projection is 4% lower than its previous production forecast of 2.2 million tons.

Target raw sugar production for this crop year is at 2.096 million metric tons (MT), down 5% year-on-year, due to factors such as weather conditions, and changes in hectarage of sugarcane planted, as well as if farmers were to shift planting other crops.

Fitch Solutions also projects that consumption will continue to increase as the domestic industrial market, or food manufacturers, continue to drive demand as they switch to sugar from high-fructose corn syrup (HFCS) due to tax imposed to drink sweeteners, which is higher for sugar-alternatives.

“The Philippines is still close to self-sufficient in sugar, with almost all of domestic output being consumed locally. According to the country’s Sugar Regulatory Administration (SRA), around 95% of total production is consumed by domestic industries, in particular industrial users such as beverage manufacturers,” the think tank noted.

The increase in tax is part of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which took effect January 2018. This imposed a P12 per liter tax in beverages that use HFCS, while a P6 per liter tax was imposed to beverages that use local sugar.

It also sees that exportation of Philippine sugar to the United States — which makes up about 5% of sugar production or about 140,000 tons — will continue despite local prices being well above the cost in the global market.

Fitch Solutions said local sugar prices will “remain uncompetitive by global standards” despite its projection of slightly higher global prices in 2020 at $13.5 per pound.

“The rise in global sugar prices is therefore not going to make the Philippines any more or less price-competitive. With sugar imports from Thailand rising, however, it is likely that cheaper imports will cap domestic prices to an extent,” it said.

SRA reported that as of the third week of November, the millgate price of sugar increased 1.83% to P1,516 per 50-kilo bag.

In the same period, sugar production was 216,996 MT, down from 305,850 MT the previous year. This is equivalent to 4.339 million 50-kilo bags, compared to 6.117 million 50-kilo bags a year earlier. This is due to factors such as prolonged El Nino, and farmers pushing back their milling activities. — Vincent Mariel P. Galang

PCC approves Mikuni Toyo’s acquisition of Hitachi Terminals

THE PHILIPPINE Competition Commission (PCC) has approved the full acquisition of Hitachi Terminals Mechatronics Philippines Corp. by Japanese firm Mikuni Toyo Co., Ltd. as the transaction is not seen to lessen competition in the domestic market.

“In a Commission Decision issued December 10, the competition authority affirmed the Mergers and Acquisitions Office’s findings that the acquisition is unlikely to result in substantial lessening of competition,” PCC said in a statement on Friday.

It was confirmed that the two firms produce different products for different purposes. Moreover, both are only manufacturing and assembling their products in their local manufacturing sites and are then exported to other countries.

“Parties operate merely as manufacturers and assemblers of Printed Circuit Boards for automotive remote engine starters (Mikuni Toyo), and ATM modules (Hitachi Terminals), which are all exported to their foreign parent entities and third parties outside of the Philippines,” PCC said in the decision.

Mikuni Toyo was established in 1989 in Japan and has a production facility in Light Industry and Science Park III in Sto. Tomas, Batangas through its affiliate Mikuni Electronics Corp., which was established in 2002. The company produces and assembles electronic boards used for air-conditioners, elevators, remote engine starters, and security systems.

Meanwhile, Hitachi Terminals is one of the businesses of Japan-based Hitachi Group in the Philippines through Hitachi Asia Ltd.- Philippine Branch, which was incorporated in 1996. It has a manufacturing plant in Subic Bay Freeport Zone, where it manufactures and assembles products for finance related machines such as card readers and banknote or coin cassettes used for Automated Teller Machines. All products are being exported to Japan.

The acquisition is in line with Mikuni Toyo’s diversification of its portfolio and expansion of its market in the manufacturing and assembly sector, specifically in Subic, which could also modernize the facilities and enhance production of Hitachi Terminals.

The PCC has already approved 188 mergers and acquisitions, while 201 are still subject for review. All in all, these have total value of P3.28 trillion. — Vincent Mariel P. Galang

Makati subway to link up with Megaworld’s Skytrain

INFRACORP

THE proposed Makati City subway will soon be connected to the planned monorail being built from the Guadalupe Metro Rail Transit (MRT Line 3) station to Megaworld Corp.’s township in Taguig City.

The subsidiary of Philippine Infradev Holdings, Inc. that is building the Makati subway on Friday said it is forming a joint venture with Megaworld for a common station with the Skytrain being developed by another Andrew L. Tan-led company.

In a disclosure to the stock exchange, Tiu-led Philippine Infradev said its wholly-owned subsidiary, Makati City Subway Inc. (MCSI), has received the term sheet for the joint venture from Megaworld.

The common station that the joint venture will build will link the $3.5-billion (approximately P177.14-billion) Makati City subway and the P3.5-billion Skytrain project of Tan-led Infracorp Development, Inc.

Infracorp is the infrastructure arm of Mr. Tan’s Alliance Global Group, Inc., the parent company of Megaworld.

Aside from linking the two rail projects to be built by the private sector, the common station will also have connections to the Guadalupe MRT station and the Pasig River ferry system.

“Under the Term Sheet, MCSI and Megaworld have 60 days to finalize definitive agreements covering the proposed joint venture, including, but not limited to, the Joint Venture Agreement and Articles of Incorporation. During the same period, MCSI will not enter into any agreement or any transaction pertaining to the land that will be used as the common station,” Philippine Infradev said in the statement.

MCSI’s subway project is a 10-kilometer underground railway system that will traverse Makati City’s central business district.

Infracorp’s Skytrain project, on the other hand, is a two-kilometer monorail that will link MRT-3’s Guadalupe station to Megaworld’s Uptown Bonifacio.

In the same disclosure, Philippine Infradev said it has signed a construction agreement with China Construction First Group Corp. Ltd. (CCFG) for the Makati City Subway Project.

The cost of construction is still to be determined, but duration is set at 42 months with six months grace period.

“Under the Construction Agreement, CCFG shall be responsible for the construction including materials, manpower, equipment and other requirements to complete the project,” the disclosure said.

Philippine Infradev also said it entered a memorandum of agreement with the University of Makati to offer a P20-million annual scholarship program to students that wish to study in China.

The program offers students the chance to enter Tongji University’s College of Civil Engineering and return to the Philippines with a guaranteed employment in MCSI for management or technical positions.

The company said Tongji University is known for its engineering, business and architecture programs.

Shares in Philippine Infradev on Friday posted a 0.01 point or 0.79% uptick to P1.27 apiece, while shares in Megaworld increased 0.05 points or 1.18% to P4.30 each. — Denise A. Valdez

ICTSI takes over container terminal in Brazil

Razon-led International Container Terminal Services, Inc. (ICTSI) has taken over the operations of a container terminal in Brazil.

The listed firm told the stock exchange Friday it has completed all regulatory approvals for its acquisition of Libra Terminal Rio S.A. (Libra Rio), the concessionaire for Terminal de Conteineres 1 (T1Rio) at the Port of Rio de Janeiro, Brazil.

“All conditions precedent and required regulatory approvals have been obtained and the transfer of the facilities to ICTSI management has been set on the 12th of December 2019,” it said in a disclosure on Friday.

The company’s wholly-owned subsidiary ICTSI Americas B.V. signed in July the share purchase agreement with Boreal Empreendimentos e Participacoes S.A. to buy 86,126,660 shares in Libra Rio amounting to 740 million Brazilian Reais (approximately P10.1 billion).

“The transaction will expand ICTSI’s footprint in the Brazilian container terminal market and is expected to generate value-accretive returns for ICTSI’s shareholders,” the company said.

ICTSI currently operates Suape Container Terminal at the Port of Suape in Brazil.

It is also present in other areas in Latin America through terminals at the Port of Guayaquil in Ecuador; Port of La Plata in Buenos Aires, Argentina; Port of Manzanillo and Port of Tuxpan in Mexico; Port of Buenaventura in Colombia and Puerto Cortes in Honduras.

Meanwhile, the company said on Friday it has received its second partial repayment from the Sudanese Ministry of Finance & Economic Planning in relation to its aborted takeover of the South Port Container Terminal at the Port of Sudan.

“ICTSI would like to inform the Exchange that it had earlier received from the Sudanese Government a second partial repayment of the Upfront Fee in the amount of AED110,190,000,” it said. The repayment is equivalent to approximately P1.52 billion.

The Sudanese government was supposed to turn over the South Port Container Terminal to ICTSI in April but was delayed due to the country’s ongoing political instability.

The company was paid 195.2 million euros (approximately P11.04 billion) in August for the first partial repayment.

“We continue productive discussions with the Ministry of Finance and Economic Planning of the Republic of the Sudan for the refund of the remaining balance of the Upfront Fee under the terms of the Refund Bond,” the company said Friday.

ICTSI reported an attributable net income of $184.9 million in the first nine months of the year, up 29% from last year, on the back of higher volumes and tempered expenses.

Shares in the firm at the stock exchange gained 4.60 points or 3.79% to P126 each on Friday. — Denise A. Valdez

SEC approves CPG’s preferred share offering

CENTURY Properties Group, Inc. (CPG) has secured clearance from the country’s corporate regulator to issue preferred shares that could raise up to P3 billion.

The Antonio-led property developer told the stock exchange Friday it received the permit to do the offering from the Securities and Exchange Commission (SEC) on Dec. 12.

The company applied to register a primary offer of 20 million preferred shares with an oversubscription option of up to 10 million preferred shares.

It will have an initial dividend rate of 6.7177% per annum and an offer price of P100 per preferred share, which would generate P3 billion for the company if oversubscribed.

The shares will be listed and traded on the main board of the Philippine Stock Exchange, Inc.

CPG initially planned to offer 10 million preferred A shares with an oversubscription option of up to 10 million preferred shares. It was tentatively priced at P100 per share, which would have raised P2 billion if oversubscribed.

The company is allocating P30 billion in capital expenditures in the next three years to fund its expansion and complete ongoing projects.

In the nine months to September, its earnings soared 81% to P1.2 billion on the back of new projects completed over the period.

Shares in CPG at the stock exchange dipped 0.01 points or 1.82% to P0.54 each on Friday. — Denise A. Valdez

Pag-IBIG launches online portal

THE Home Development Mutual Fund (Pag-IBIG Fund) on Friday launched an online portal that makes its services available to members 24/7.

“The Virtual Pag-IBIG has been a long-term project of the Fund. Before launching, we made sure that support systems have been prepared and that the security of our database has been put in place. We are happy that our long-term plans to provide our members with a more efficient and accessible service have aligned with President Rodrigo Roa Duterte’s call to make government service responsive to the needs of the public by harnessing technology,” Secretary Eduardo D. del Rosario, who heads both the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees, said in a statement.

Mr. del Rosario and Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti led the launch of the Virtual Pag-IBIG at the Philippine International Convention Center in Pasay City.

Virtual Pag-IBIG is accessible through the agency’s website (https://www.pagibigfund.gov.ph). A beta version was introduced in October.

“Pag-IBIG Fund is celebrating its 39th anniversary this month with the theme ‘Serving the Nation with Excellence and Innovation.’ And what better way to mark our 39th year than with the unveiling of one of the most innovative services in our history, the Virtual Pag-IBIG,” Mr. Moti said.

“With this new service, it’s like having your own personal Pag-IBIG Fund branch at your fingertips. With just a smartphone and an internet connection, our members can now do their transactions with Pag-IBIG Fund online, anytime, wherever they are,” he added.

Members can log in on Virtual Pag-IBIG to access services such as securing a Pag-IBIG Fund Membership ID (MID) number, taking the initial step to enroll for an MP2 Savings account, and monitoring their loan application status.

By creating a Virtual Pag-IBIG account, members can check their savings records, view their loan balances and get the latest news about Pag-IBIG Fund. They can also monitor and view the last ten transactions made with their Pag-IBIG Fund Loyalty Card Plus.

Virtual Pag-IBIG also offers an online payment facility that allows members to pay for their loans and remit monthly savings through PayMaya or with Visa, Mastercard, or JCB credit cards. A real-time chat facility also aallows members to talk to a Pag-IBIG Fund service personnel to address any concern.

Pag-IBIG Fund Loyalty Card Plus holders can activate their account using their card number, while those who do not have the loyalty card can open an account online which can be activated by visiting any Pag-IBIG Fund Branch.

For overseas Filipino workers, the Pag-IBIG Fund International Operations has also set up an activation process.

“We know that our members have been clamoring for this kind of service, so we’re glad that we can finally unveil the Virtual Pag-IBIG today. We have been working on this for quite some time. We first had to upgrade our systems, migrate records, rework our website, and do a lot of work in between. A few years ago, we launched the Lingkod Pag-IBIG campaign to establish our standards for public service. And with the Virtual Pag-IBIG, we are taking our brand of public service to the next level. Virtual Pag-IBIG is Lingkod Pag-IBIG 24/7,” Mr. Moti said.

PHA ends MoA with Qatar firm

PREMIERE Horizon Alliance Corp. (PHA) is backing out of its planned partnership with a Qatar-based firm for a 250 million euro (approximately P15 billion) funding facility for several projects.

The listed countryside developer told the stock exchange Friday its board of directors has decided to cancel the memorandum of agreement (MoA) it signed with Sama Global Investment (SAMA) earlier this year.

“After exhausting all efforts to make the agreement work and give SAMA enough time to deliver, SAMA still failed to comply with the provisions of the MoA,” it said.

It added it is has been told to consider “any possible legal action which the Company may take against SAMA.”

PHA said in January it entered the MoA with SAMA to generate cash that it will use to fund “real estate, tourism hospitality, tourism and infrastructure construction, power generation, financial services and other allied and related undertakings.”

The funding facility has a nine-year term and a fixed interest rate of 1.25% per annum.

After two years, or by 2021, SAMA was supposed to have the “right to convert, in whole or in part, the 250 million-euro funding into an ownership of up to 60% in PHA in accordance with foreign ownership laws and regulations.”

Aside from the Philippines, SAMA also has presence in Spain through a partnership with Ibermark Asesores Jurídicos, S.L., a firm that specializes in industrial and intellectual property management.

PHA is developing a master-planned tourism estate in Puerto Princesa City.

Shares in PHA at the PSE climbed 2.33% to P0.44 each on Friday. — Denise A. Valdez

BoP position reverts to surplus in Q3

THE BALANCE of payments (BoP) position of the Philippines — which shows its economic transactions with the world for a particular period — reverted to a surplus in the third quarter, on the back of increased net inflows in the financial account paired with a lower deficit in its current account.

Moreover, the central bank also expects a wider trade gap as the BoP surplus is seen to widen for 2019 and 2020.

A report released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed the country’s BoP position in the third quarter stood at a surplus of $778 million, a reversal of the $1.9-billion deficit logged in the same period a year ago.

“This developed as a result mainly of the increased net inflows (i.e., net borrowing by residents from the rest of the world) in the financial account and the decreased deficit in the current account,” the central bank said.

According to the report, the country’s current account reversed to a surplus of $654 million in the third quarter from the $2.081-billion deficit a year ago.

The BSP said this was backed by the lower deficit in the trade in goods account.

The same period saw capital account’s net receipts increasing by 11.6% to $17 million from $15 million in the third quarter of 2018.

“Higher net receipts of trade in services and primary and secondary income also contributed to the rebound of the current account in the third quarter of the year,” the central bank said.

Meanwhile, in the financial account, net borrowings of residents with the rest of the world were more than halved (down 52.89%) to $848 million from $1.8 billion a year ago. Portfolio investments turned around to a net inflow of $895 million from $224 million worth of outflows in the third quarter of 2018.

“The decline in net inflows during the period was due primarily to the significant drop in net inflows in the direct investment account and the reversal to net outflows in the portfolio investment account, which tempered the expansion in net inflows in the other investments account,” the BSP said.

For the first nine months of 2019, the country’s BoP position stood at a surplus of $5.567 billion, reversing from the $5.136-billion deficit in the January to September period of 2018.

The current account stood at a deficit of $992 million, narrowing by 83% from the $5.837-billion gap in the comparable year-ago period.

Meanwhile, the capital account’s net receipts in the January to September period jumped 19% year-on-year to $49 million from $44 million.

On the other hand, the financial account slightly widened to a net inflow of $4.456 billion from $4.4328 billion in the first nine months of 2018.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the latest BoP developments are “good, but not necessarily reflective of what government initially planned for this year”.

“The narrower trade in goods and services was a result of the delayed budget and continuing weak external trade conditions,” he said in a text message.

The economist noted there are “controllable” and “uncontrollable aspects” that could impact the BoP data for the last quarter of the year.

Among the controllable aspects, according to Mr. Asuncion, is the passage of the budget on time, while those that are uncontrollable would be uncertainties rooted from the lingering US-China trade wars.

“Overall, the BoP surplus may not be entirely seen as complete positive by looking into the details and see a missed chance to do better. However, the succeeding quarters may offer better prospects as government execution improves,” he added.

The BSP revised its BoP target for 2019 to a surplus of $4.8 billion from the $3.7-billion surplus it projected in May. If realized, it would be a turnaround from the $2.306-billion deficit seen in 2018.

For 2020, the BSP expects the country’s BoP position to hit a surplus of $3 billion. — Luz Wendy T. Noble

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