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China to crack down on gambling, POGO exploitation

CHINA signaled a crackdown on cross-border gambling after alleging that many its nationals working in the Philippine offshore gaming industry were recruited illegally.

The Chinese embassy also pushed back on the gaming regulator’s plans to confine Chinese offshore gaming workers, employed by firms known as Philippine Offshore Gaming Operators (POGOs), to designated “hubs,” saying that such plans may “infringe on the basic legal rights of Chinese citizens.”

“The Ministry of Public Security of China has taken many actions and will carry out more special operations aimed at preventing and combating cross-border gambling,” the Chinese Embassy in the Philippines said in a statement Thursday.

Gambling is illegal in China, and Chinese gamblers must travel overseas or visit special economic zones like Macau to gamble. In recent years, they have also been able to gamble online following the explosive growth of the country’s POGO sector.

It was not clear whether the Chinese also intend to restrict travel by gamblers overseas, which could hurt operators of physical casinos.

The statement from the embassy follows a proposal from Philippine Amusements and Gaming Corp. vice president Jose S. Tria, Jr. on Tuesday to confine POGO firms to designated hubs, which will be “self-contained.”

This came as the Bureau of Internal Revenue (BIR) continues efforts to increase collection of remittances, reporting on Thursday an initial P186 million in withholding taxes collected from Philippine Offshore Gaming Operators (POGOs) and some P170 million expected this month in tax payments from businesses employing foreign nationals.

The Embassy said Chinese citizens overseas must observe local laws and regulation and China prohibits them from engaging in illegal activities in foreign countries.

It said Chinese law allows the prosecution of Chinese companies or individuals overseas engaged in illegal activity.

“The casinos and offshore gaming operators (POGOs) and other forms of gambling entities in the Philippines target Chinese citizens as their primary customers,” the embassy said.

“A large number of Chinese citizens have been illegally recruited and hired in the Philippine gambling industry,” it added, noting some Chinese nationals are “cheated” in the process of being brought to work in the Philippines, entering with tourist visas.

It said the presence of overseas gambling hubs has also resulted in the illegal transfer overseas of “hundreds of millions of Chinese yuan every year” while increasing social problems in the Mainland.

It called the work conditions of some Chinese nationals “modern slavery.”

The President’s spokesperson Salvador S. Panelo said the Philippines will not allow the rights of Chinese to be violated, and encouraged China to file complaints against companies illegally employing Chinese citizens.

Senator Emmanuel Joel J. Villanueva, who chairs the committee on labor, employment and human resources development, supported the planned crackdown, which he noted is in line with his resolution to investigate POGOs.

“Earlier this week, we filed a resolution seeking an inquiry in aid of legislation on the influx of illegal foreign workers, especially in POGOs, and the impact of POGOs to the country’s economy, job generation efforts, peace and order, among other concerns,” Mr. Villanueva told reporters via mobile phone.

The Bureau of Internal Revenue (BIR) has been seeking to register POGO workers in order to effectively tax them, saying that it sent out 48 notices, directing POGOs to remit withholding taxes on the salaries of their foreign workers.

Finance Assistant Secretary Dakila Elteen M. Napao said out of the 48 notices, 22 companies replied or protested the tax assessment.

“The BIR, though, has already collected P186 million from the notices sent out and is set to collect another P170 million moving forward. This started last month and will be collected on Aug. 10,” Mr. Napao was quoted as saying in a statement Thursday.

Commissioner Caesar R. Dulay has said the BIR collected only P175 million in 2017 during the initial year of operation of POGO firms, rising to P579 million in 2018, and P789 million in the first half of 2019.

Finance Secretary Carlos G. Dominguez III said in a mobile phone message on Thursday that the BIR is “simply implementing the Tax Code, and requiring those earning Philippine-sourced income to pay income tax.”

Asked to comment, Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro and Regina Capital Development Corp. Equity Analyst Rens V. Cruz II both said the property sector is expected to suffer the most in the crackdown.

“I think we have to monitor the property sector particularly (DD, MEG, ALI and SMPH) given this might have an impact in their office space revenues,” Mr. San Pedro told BusinessWorld via text message. He was referring to DoubleDragon Properties Corp., Megaworld Corp., Ayala Land, Inc., SM Prime Holdings, Inc.

“Moving forward I still expect the POGO industry to grow and help the influx of Chinese nationals in the country and assuming this will be the start of a more strict (period of) government regulation, I think this will be beneficial for the PH gov’t (for tax collections) and the property sector revenue (office space and residential) in the medium term.”

Mr. Cruz, likewise, sees the property sector, particularly “bigger developers” to be most affected, but noted that some companies have already begun preparing for a crackdown prior to the Embassy’s pronouncement.

“Obviously, the heaviest weight will fall upon the property sector, especially the bigger developers with a substantial portion of their income derived from POGO leasing. But even with an expected near-term pressure, there is still reason to believe it won’t be the worst-case scenario,” Mr. Cruz said in a separate text message.

“For starters, the existing restriction on foreign ownership applies to leasing too, leaving POGO to about 40% of the recurring income, at best. Second, local firms have pro-actively increased the share of domestic office and retailers to their portfolio, serving as a buffer against their POGO exposure. Developers have long acknowledged the volatile nature of their foreign business. There will be a substantial drag to the bottom line, for sure, if a blanket purge on POGO will happen, but most management were guarding against this specific scenario for quite some time.” — Charmaine A. Tadalan, Arra B. Francia

PAGCOR scrambles to contain damage from POGO ‘hubs’ proposal

PHILIPPINE Amusement and Gaming Corp. (PAGCOR) Chairperson Andrea Domingo walked back proposals to relocate Chinese offshore gaming workers to “self-contained hubs,” saying that such communities will have ample amenities for residents and will be “safe” with no restrictions on their movement.

A PAGCOR vice president, Jose S. Tria, Jr., had proposed to relocate the online gaming firms, which are known by their regulatory classification as Philippine Offshore Gaming Operators (POGOs), to designated hubs.

The proposal drew a sharp rebuke from the Chinese embassy, which said such hubs could violate the rights of Chinese citizens working in the Philippines.

“When we refer to POGO hubs as self-contained communities, what we mean is that these hubs will have all the basic needs of the foreign employees of POGO,” Ms. Domingo told reporters in a text message.

Ms. Domingo said the hubs will serve as a “protection” for foreign workers while still allowing them to exercise their personal rights and freedoms.

“Nonetheless, they are free to go anywhere they want to without any limitation on their personal rights or liberties. The hubs are in fact being established for the protection of the foreign workers,” she said.

“The Chinese Embassy expresses its grave concern over such potential move by PAGCOR, which may infringe on the basic legal rights of the Chinese citizens concerned,” the Chinese Embassy said on its website.

“They will no longer be exposed to crimes being committed against them on the streets, they are assured of good working conditions and decent living quarters, and will be given their proper visas as there will also be other relevant government agencies setting up offices at the hubs,” she added. — Beatrice M. Laforga

Muntinlupa City to allow owners to redeem 310 seized properties

PHILSTAR

MUNTINLUPA CITY has issued an ordinance allowing the owners of 310 forfeited real properties to redeem their land, which the city has determined cannot be used for government projects.

According to City Ordinance No. 19-004 approved on July 31, Muntinlupa authorized the city treasurer to accept payments of real property tax delinquency from owners of the forfeited property.

The 310 properties were advertised for sale in 2014, 2015, 2016, and 2017 but attracted no bids.

“Three Hundred Ten (310) real properties were forfeited in favor of the City Government of Muntinlupa which consists of lots measuring more or less one thousand (1,000) square meters, the sizes of which are not feasible for government projects and infrastructures,” the ordinance read.

“The Office of the City Mayor, through the Committee on Public Auction, recommended that the owners of the forfeited real properties be allowed to redeem their lots,” it added.

The registered owners of the property have one year from the effectivity of the ordinance to address the delinquency.

Owner are required submit a written request to the Office of the Mayor outlining their intention to redeem, and to fully pay the delinquent real property tax and penalties plus a 10% cost of sale.

The ordinance will take effect in 15 days after publication of the ordinance yesterday, Aug. 7. — Vann Marlo M. Villegas

Building permits point to strong residential, office growth

BUILDING PERMIT applications data are pointing to double-digit growth for the residential and office/commercial segments in 2019, with a slight tapering off to at least the high single digits over the next few years, Fitch Solutions Macro Research said.

“We expect the Philippines’ residential and non-residential building sector will grow by an average of 9.3% annually from 2019 to 2028,” it said in its industry trend analysis report.

Fitch noted that it expects 10.4% expansion in the residential sector in 2019, and annual growth of 8.9% until 2028. It said urbanization will fuel demand for more housing, driving people to urban centers like Metro Manila, Davao City, and Cebu City.

“These are cities that have experienced an influx of rural population over the past decade, and have suffered from various episodes of housing crisis, largely as a consequence of a low supply of affordable housing. Such a scenario resulted in the creation of numerous slums and shanty towns, often ill-equipped in terms of water and sanitation facilities, posing a hazard to both health and the environment,” Fitch said.

It said growth in residential building can be gleaned from building permits data for residential projects, which increased by 9%, year-on-year in the first quarter.

In 2018, the government approved 114,000 residential building permits, up 12,000 from a year earlier.

It said that it expects 12.5% growth in the non-residential building sector in 2019, with an annual average growth of 10.5% over the next 10 years, driven by the commercial sector.

In the first quarter of 2019, 6,400 such permits were awarded, up 15% year-on-year. More than half involved the construction of commercial buildings.

Fitch also said that the creation of the Department of Human Settlements and Urban Development (DHSUD) will help address issues related to housing, particularly in the affordable segment.

“Although the DHSUD has since encountered budgetary issues, we are positive that such issues will be ironed out in the long run and aid in the provision of affordable housing for the population,” Fitch said. — Vincent Mariel P. Galang

Gov’t researchers call for country-specific OFW health briefings

THE National Research Council of the Philippines (NRCP) said Overseas Filipino Workers (OFWs) must be given country-specific health awareness programs in their pre-departure briefings.

NRCP, an agency of the Department of Science and Technology (DoST), reported in a recent study that health problems experienced by OFWs are correlated to the country and industry they work in.

Science and Technology Secretary Fortunato de la Peña said on Tuesday: “Pre-departure orientation seminars (PDOS) must include country-specific health awareness programs so since magkakaiba ang problema sa iba’t-ibang countries” (there are specific health problems to watch out for in each country) and called for orientations that include “health awareness programs for each country.”

The PDOS is mandatory for all OFWs who are about to leave for work overseas. The seminar discusses cultural differences, immigration policy, and employment concerns of a host country that OFWs need to take note of.

According to the study by the NCRP, a majority of OFWs deployed to the Americas (92%), Asia (80%), Europe (71%), and the Middle East (56%) said they never experienced health problems before they left the Philippines.

NRCP member and the study’s author Veronica E. Ramirez said that common illnesses experienced by OFWs also mirror the culture of the host country .

“Hypertension is due to excessive intake of salty food; stress; lack of sleep; and fatigue. Digestive problems are due to irregular meal intake especially for domestic workers, (who) wait for their employers to eat first, and only then can they eat… urinary problems (could be due to) limited water supply in the Middle East and inaccessible toilets,” she said.

Her study also looked into medical claims of OFWs from the Overseas Workers Welfare Administration (OWWA). The study showed that household domestic workers were the top occupation making OWWA medical claims, while 68% of medical claims were generated by OFWs in the Middle East.

Top health problems experienced by OFWs also vary by occupation. Some 26% of household domestic workers reported experiencing reproductive diseases; while 35% of service workers reported cardiovascular disease. About 31% of technicians and electricians, experienced urinary/excretory diseases, while 36% of plant/machine operators experienced diseases of the endocrine system. — Gillian M. Cortez

Peso rises on market optimism

THE PESO strengthened on Thursday despite weaker-than-expected gross domestic product (GDP) growth in the second quarter and ahead of the central bank’s policy decision.

The local currency gained 28 centavos as it closed at P52.04 against the greenback on Thursday, up from its P52.32-per-dollar close on Wednesday.

The peso opened the session slightly stronger at P52.28 against the greenback. Its lowest point for the day was at P52.395, while its strongest showing was at P52.12 per dollar.

Dollars traded dropped to $1.45 billion on Thursday from the $1.72 billion posted the previous day.

“A lot has happened on the home front. The 5.5% Q2 GDP growth release and the 25 bps (basis points) cut by the BSP (Bangko Sentral ng Pilipinas) were the major drivers for today…. The market may have noted the still positive growth despite the lower-than-expected result,” UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said in an email on Thursday.

The economy grew by 5.5% in the April to June period, the slowest in four years. This is also below the 6-7% GDP growth target of the government for 2019 and the 5.9% median estimate in a BusinessWorld poll of 15 economists last week.

Meanwhile, after the market’s close, the BSP announced that its policy-setting Monetary Board decided to cut the interest rate on the central bank’s overnight reverse repurchase facility by 25 bps to 4.25% as inflation pressures continue to ease. Accordingly, the rates on the overnight deposit and lending facilities were reduced to 3.75% and 4.75%, respectively.

“The Monetary Board noted that prospects for global economic activity are likely to remain weak amid sustained trade tensions among major economies. Domestically, the outlook for growth continues to be firm on the back of a projected recovery in household spending and the accelerated implementation of the government’s infrastructure spending program…,” the BSP said in its policy statement.

“The peso strengthened today as market participants took profits from the recent depreciation of the local currency earlier this week,” a trader said in an email on Thursday.

The peso returned to P52-per-dollar level on Wednesday amid heightened US-China trade tensions.

For today, the first trader sees the peso moving between P51.90 and P52.20 against the greenback, while a second trader expects it to range from P52 to P52.25. Mr. Asuncion, for his part, gave a forecast range of P51.80-P52.10. — BML

PSE index inches down on slower Q2 GDP growth

By Arra B. Francia, Senior Reporter

THE MAIN INDEX ended slightly lower on Thursday following slower gross domestic product (GDP) expansion in the second quarter.

The benchmark Philippine Stock Exchange index (PSEi) went down 0.04% or 3.23 points to close at 7,914.16, failing to hold gains seen for most of the session. The broader all-shares index likewise dropped 0.18% or 9.09 points to 4,818.32.

“Philippine 2nd quarter GDP comes in at 5.5% which is the low end of the consensus. However, we did not see a much of a fallout on local equities…the main index ends almost unchanged, giving investors a breather after heavy volatility in the last two weeks,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The Philippine economy grew by 5.5% in the April to June period, the slowest in four years. This is also lower than the 6-7% GDP growth target of the government for 2019.

The second-quarter print was likewise below the 5.9% median estimate in a BusinessWorld poll of 15 economists last week.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez noted that investors were mostly on the sidelines as they waited for the Bangko Sentral ng Pilipinas’ policy meeting in the afternoon.

The central bank decided to cut rates by 25 basis points yesterday, as expected, while also reducing its inflation forecasts for 2019 to 2021.

Four sectoral indices moved to negative territory: holding firms shed 0.46% or 35.91 points to 7,676.14; property slipped 0.44% or 18.62 points to 4,161.55; financials sank 0.42% or 7.81 points to 1,847.47, while industrials declined 0.27% or 30.27 points to 10,931.37.

Meanwhile, services jumped 3.06% or 47.90 points to 1,611.83 and mining and oil surged 1.49% or 119.69 points to 8,122.61.

Turnover stood at P6.25 billion after some 834.29 million issues switched hands, slightly lower than Wednesday’s P6.64 billion.

Advancers outpaced decliners, 103 to 91, while 45 names were unchanged.

Net foreign selling persisted for the fourth straight session at P66.13 million, lower than the previous session’s P342.50 million.

“The main index is currently down 2.6% for the week. If we see a rally tomorrow, wherein it closes above 8,000. There might be hope for this market just yet,” AAA Equities’ Mr. Mangun said on Thursday.

Meanwhile, Wall Street indices ended mixed overnight. The Dow Jones Industrial Average slipped 0.09% or 22.45 points to 26,007.07. The S&P 500 index added 0.08% or 2.21 points to 2,883.98, while the Nasdaq Composite index rose 0.38% or 29.56 points to 7,862.82.

Asian indices finished mostly higher, with Japan’s Nikkei 225 up by 0.37% or 76.79 points to 20,593.35. The Shanghai Composite jumped 0.93% or 25.87 points to 2,794.55, while the Hang Seng index rose 0.48% or 123.74 points to 26,120.77.

State auditor flags DepEd expenses worth P13.9B

THE COMMISSION on Audit (CoA) has flagged about P13.9 billion of expenses at the Department of Education that were either illegal or lacked adequate documentation.

The expenses were used for training and seminars, travel, office supplies, repair and rehabilitation of schools, telephone and mobile expenses, and team building activities, according to a report.

State auditors also cited P15.4 billion of unused allotments — caused by unenforced projects — at several department offices in the National Capital Region, Cordillera Administrative Region and Region 10.

Books and instructional materials were not distributed, while allotments for student vouchers, personal services, retirement and life insurance premiums of teachers were never used, it said.

CoA also noted that about 115 senior high school voucher program beneficiaries for the school years 2016 to 2017 and 2017 to 2018 did not really exist.

The “ghost students” were billed more than once in the same school year, resulting in an overpayment of P1.25 million by the Education department, it said.

State auditors said participating schools in the voucher program should refund the excessive payments.

In the report, Education officials promised to submit the missing documents. — Vince Angelo C. Ferreras

Robredo seeks evidence in DoJ sedition complaint

VICE-PRESIDENT MARIA Leonor G. Robredo has asked government prosecutors to order the police to give her copies all the evidence in the sedition complaint against her and 35 other people.

In a motion filed by her lawyer Marlon J. Manuel, the opposition leader accused the police, which initiated the case, of violating her rights by withholding evidence.

“It is reckless to conceal evidence under the guise of later on presenting the same during trial on the merits, assuming such evidence even exists,” she said in her filing at the Department of Justice.

“It is flagrant violation of a basic right to proceed with a prosecution on the convenient excuse of later on presenting evidence during ‘trial on merits’ in the vain hope that some credible evidence might later turn up,” she added.

Ms. Robredo also asked the Justice department to defer the filing of her counter-affidavit pending receipt of the police’s so-called evidence.

Police last month filed a complaint of inciting to sedition, cyberlibel, libel, estafa, harboring a criminal and obstruction of justice against Ms. Robredo and other people whom it accused of circulating a video linking President Rodrigo R. Duterte and his family to illegal drugs.

Also sued was Peter Joemel Advincula, the self-confessed drug dealer who was featured in the videos.

Mr. Advincula had sought legal assistance in filing charges against members of the drug syndicate he formerly belonged to. Later that month, he surrendered to police over estafa charges, and tagged the Liberal Party as behind the propaganda.

The Liberal Party has accused the government of political harassment and persecution, saying the complaint is based on lies.

In her motion, Ms. Robredo noted that the police complaint only included the sworn statement of Mr. Advincula, and that other statements would be presented later.

“The presentation of evidence can’t be done in installments,” Mr. Manuel told reporters yesterday.

Human Rights Watch earlier said authorities should drop the “preposterous complaint” against opposition politicians, religious leaders and human rights advocates. It said the case was a “transparent attempt to harass and silence critics of President Rodrigo R. Duterte’s bloody drug war.”

“Threatening criminal charges against the vice-president, outspoken bishops and rights lawyers suggests that Duterte’s egregious human rights record is catching up with him,” said Brad Adams, Asia director at Human Rights Watch.

A conviction for incitement to sedition carries a maximum penalty of six years in jail.

Justice Secretary Menardo I. Guevarra said the case would be resolved with “utmost fairness.” The preliminary investigation has been set for Aug. 9.

Ms. Robredo’s camp earlier said the complaint was likely started to form a basis for her eventual impeachment.

Her spokesman Barry Gutierrez said the case had a political motivation and “impeachment is really the endgame here.” — Vann Marlo M. Villegas

Aug. 12 a regular holiday for Eid’l Adha

PRESIDENT Rodrigo R. Duterte has declared Aug. 12, Monday, as a regular holiday nationwide in observance of Eid’l Adha or the Feast of Sacrifice for Muslims.

The president issued Proclamation 789 pursuant to Republic Act 9849 and upon the recommendation of the National Commission on Muslim Filipinos.

The law, which former President Gloria Macapagal Arroyo signed on Dec. 11, 1999, declares the 10th day of Zhul Hijja, the 12th month of the Islamic calendar, as a national holiday in observance of Eid’l Adha.

The sacred festival is one of the two most important holidays on the Muslim calendar, the other being Eid’l Fitr.

The feast commemorates the willingness of Ibrahim (aka Abraham) to follow God’s command to sacrifice his son.

“The Office of the President hopes that with such declaration, our Muslim brothers and sisters can properly observe and enjoy the Feast of Sacrifice with their loved ones,” presidential spokesman Salvador S. Panelo said in a statement. — Arjay L. Balinbin

DoE asks Napocor to defer off-grid rate hike

THE DEPARTMENT of Energy (DoE) yesterday asked the National Power Corp. (Napocor) to defer its application to increase electricity rates in off-grid areas until it has improved its operating efficiency as well as reduced power generation costs and missionary subsidies.

In a statement, the agency said Energy Secretary Alfonso G. Cusi had sent a memorandum to Napocor President Pio J. Benavidez expressing “serious concern” over the power generation charge of P8.5544 per kilowatt-hour (kWh) compared with P5.25/kWh in Manila.

The DoE said the generation charge is a heavy burden on Filipino consumers in the poorer, off-grid islands, and is contrary to the government’s mandate to keep power rates affordable under the law.

The agency said it came out with the order after looking at Napocor’s application with the Energy Regulatory Commission (ERC) to increase the missionary generation charge in off-grid islands in Luzon by a total of P2.9140/kWh. The application will raise the charge to P8.5544/kWh from P5.6404/kWh.

Mr. Cusi also ordered Napocor “to reduce missionary subsidies instead of passing on to these poorer areas the costs of excess taxes and fuel and other costs that will cause this 51% increase in their P5.6404 SAGR (subsidized approved generation rate).”

In its application, Napocor also wanted to pass on the added excise taxes on fuel being used to generate power in off-grid islands at P1.9648/kWh to consumers. This is on top of its previous application for an increase of P0.9492/kWh, bringing the total increase to P2.9140/kWh.

Napocor is the administrator of the missionary subsidies provided by the government to consumers through local electric cooperatives.

Under the law, it can cover its missionary subsidies by charging consumers in those areas a missionary generation rate called the subsidized approved generation rate. The remainder is also passed on as a universal charge for missionary electrification

Mr. Cusi in his memorandum to Napocor said the DoE “will review the power supply contracts of existing private power generators to identify and possibly eliminate onerous provisions.”

He asked Napocor to submit existing contracts “at the soonest possible time, and 30 days to submit its action plan on the matter.” — Victor V. Saulon

Tackling peace, plastics, PWDs: Mindanao’s social entrepreneurs band together

DAVAO CITY — Mindanao’s social entrepreneurs have banded together to create a bigger impact in the communities and draw more attention to the country’s southern islands.

“It’s always been Manila wherein a lot of entrepreneurs were recognized. We are on the same page helping people, saving the environment, and I think it is time for Mindanao to be recognized as a hub for social entrepreneurship,” said Joseph “Joe” Castillo, founder of the Joe Green Project, which teaches mothers, particularly those in calamity-hit areas, convert plastic trash into backpacks and wallets.

Joe Green Project is one of the members of the newly-formed Social Entrepreneurs of Mindanao, a network intended to foster collaboration among both members and other groups.

Coffee for Peace founder Joji Felicitas Pantoja, another member, said this would allow them to draw from each other’s specialization and avoid duplication of projects.

“Why not talk and discuss where can we collaborate,” she said.

Ms. Pantoja cited as an example Paquibato, a remote part of Davao City that is one of the local government’s focus areas for development under its anti-insurgency program.

“Nag-usap-usap na kami kung ano ang magandang dalhin sa (We are already discussing what would be good to introduce in) Paquibato as a social enterprise,” she said.

The group is also open to assisting other organizations that want to work there, “We could guide them,” said Ms. Pantoja, who has more than a decade of experience working on peace efforts alongside coffee production in conflict-affected areas.

TAX BREAKS
Banding together would also mean having a bigger voice for lobbying government on policies, particularly in terms of program support and possible tax breaks for the social enterprise sector.

Ryan D. Gersava, founder of Virtualahan, which focuses on providing job and livelihood opportunities to persons with disabilities (PWDs) and other disadvantaged persons, said social enterprises should not simply be lumped together with the micro, small, and medium enterprises (MSMEs) sector.

Social enterprise, he described, is the “child” when you marry business and non-government work.

“This is a new generation of an organization that has a business model of making profit but has an intention to generate (social) impact,” he said.

Mr. Gersava said social enterprises “break barriers” and fill in gaps in existing public and private structures.

He cited his own Virtualahan, which offers digital skills training as well as an entrepreneurship program, then links their members to potential employers or investors.

The training is not 100% free, but Virtualahan helps trainees who cannot afford the fees to find sponsors, usually from among the potential employers.

“A lot of employers want to become socially conscious and want to hire PWDs and other disadvantaged groups, but don’t know how. They don’t have the confidence or the capacity to be able to do that,” he said.

Virtualahan currently has a community of 300 members in over 60 cities nationwide. Graduates of their skills program have gone on to become data analysts, website developers, graphic designers, or virtual assistants; while the entrepreneurs have ventured into internet cafe and food businesses.

Ms. Pantoja said, “We see to it that we have balance. If there is no money, how can we continue on our mission? We have to take care of our clients, products that are marketable, and we have to make sure that our suppliers are paid well and are also improving their livelihoods.” — Maya M. Padillo

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