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Tesla senior production executive quits

TESLA INC’S vice president of production at its Fremont factory, Peter Hochholdinger, has left after three years with the electric-car maker, a source familiar with the matter told Reuters.

Hochholdinger, a former production executive at Volkswagen AG, is the latest high-profile executive to leave Tesla in the past two years as the automaker struggles to ramp up production of Model 3, which is seen as crucial for its long-term profitability.

He was tasked with improving production for Tesla’s luxury Model S sedan and Model X sport utility vehicle as well as helping build a cost-effective manufacturing program for the Model 3 sedan, the company had said in his appointment memo.

At Volkswagen, Hochholdinger spent 22 years supervising the production of Audi A4, A5 and Q5 models. When Audi set up a new production facility in Mexico, he served as an adviser.

Both Tesla and Hochholdinger did not respond to requests for comment.

Demand for Tesla cars has been one of the major concerns of investors amid escalating US-China trade tensions. The company reported a 31% fall in first-quarter deliveries and warned that profit would be delayed until the latter half of the year.

Chief Executive Officer Elon Musk, however, said last month that the company was on course to deliver a record number of cars in the second quarter.

Musk reiterated the claim on Tuesday after automotive news website Electrek reported that the company faces delivery bottlenecks at the close of the second quarter.

Electrek was also the first to report on Hochholdinger’s exit from Tesla.

Earlier on Wednesday, Wedbush analysts lowered their current quarter delivery forecast to 84,000 units from an earlier forecast of 88,000 units, adding that Tesla hitting its quarterly delivery target is an “unlikely event.” — Reuters

Management theories in flux

My Asian Institute of Management-Master in Business Management alumni class has a very active Viber group and recently our exchange revolved around the debate on whether new management theory has been discovered. One view says that management theory hasn’t really changed in the past 50 years, except that framing of the theory has progressed in the elusive search for the winning management formula. This has given birth to an industry of best selling books written by experts claiming to have discovered the immutable laws of management and leadership.

But despite all of these professed solutions, organizational problems persist because at its core, most executives and managers find it difficult to adapt to change. We are hard-wired individuals and we rely too much on the patterns we personally experienced in our own path to success. Once managers move up in the organization, they think that whatever helped them in the process will continue to work for everyone else.

Geoffrey James, writing for Inc.com, wrote this piece entitled, “Elon Musk’s management advice is so brilliant that I threw away 37 business books.” In 11 short rules, Musk laid out what we need to know about management. Are these ideas truly worth throwing away business books? Put another way, is there a real short cut to learning about management? Here’s James’ edited version:

1. No large meetings unless they’re of value to the entire audience. Keep them short.

2. Don’t have frequent meetings unless the matter is truly urgent. Resolve it; stop meeting.

3. If you are not adding value to a meeting, walk out or drop off the call.

4. Don’t use acronyms and nonsense words for objects, software, or processes.

5. Avoid any terms that required explanation, because they inhibit communication.

6. Communicate directly with individuals rather than through a chain of command.

7. Any manager enforcing chain-of-command communication will be fired.

8. Don’t follow any “company rule” that doesn’t make common sense.

9. Ideas that increase productivity or happiness are always welcome.

10. Contractors who can’t find an employee to vouch for them will be fired.

11. Never do anything that would make a great Dilbert cartoon.

Management boils down to controlling resources and people and orchestrating both towards a desired mission-vision. Is it enough to pick up management concepts from a list like Musk’s? As one classmate noted, taking a full time MBM class the AIM case method way exposes the student to myriad management challenges. The daily cases during our AIM days allowed us to be exposed to hundreds of real life management problems. The virtual experience was definitely less costly especially by way of possible mistakes. Regular exposure to decision making in different context provides superior lessons compared to a list, even if the list is arguably correct. As our professor said, management training is about changing behavior and this takes time.

While management theory hasn’t changed much for traditional companies, for technology companies the theory and practice have drastically changed. The key word is agile. They do not believe in long term planning. They do not believe in very detailed feasibility studies. They want to launch products even before its fully ready. They do not want organizational charts. They mostly depend on learning and adapting to the environment and competition. They operate in a way they can make changes very quickly in hours, days or weeks instead of months and years.

The concept came from software developers and adopted by the technology companies. It appears to be the “flavor of the month” in management circles and is compatible with the working style of millennials. In an agile manifesto, software companies value individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation and responding to change over following a plan. Clearly, it runs counter to many of the things we learned decades ago in management school.

Even in management structure and organization design, there is the chicken versus lobster concept. Chicken or other animals with bones are very structured. The lobster on the other hand has its shell but no bone structure.

Management theories and specific concepts favored in the business community may change from time to time. During our earlier years, it was management by objectives, total quality management, management by walking around, management for results, situational leadership and so on. One thing remains certain though. In any management approach, employee engagement is key. Because at the end of the day, managers work with people and it will require team effort, not just individual talent, to deliver on the organization’s potential.

I am indebted to Prof. Junbo Borromeo and AIM classmates Greg Domingo, Art Falco, Eddie Yap, Minda Garcia, Ramon Lim, Philip Huang, Vic Bocaling and others whose ideas and thoughts I simply put together for this column.

 

Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs. The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.)

This new CEO thinks he doesn’t need HR

We have a new company president who was pirated by the owner from a competitor. He is a supply chain expert who doesn’t believe in the importance of human resources (HR) as a support function in the organization. In a recent town hall meeting with managers, he told us that everyone can do the work of HR and it need not become a specialist function. Since I am the HR department head, it has become uncomfortable for me to work with him given his critical position against my job. I’ve been in this company for close to 20 years now. And I don’t have any plans of moving to another organization. Please give me your advice. — Bumpy Ride.

There was a young officer in the navy, after completing his training on an overseas cruise, was given an opportunity to display his capabilities at getting a ship under way. With a stream of commands, he had the decks buzzing with men, and soon the ship was steaming out of the channel en route to the Pacific Ocean.

His efficiency established a new record for getting a destroyer under way, and he was not surprised when a seaman approached him with a mobile phone call from the captain: “My personal congratulations on completing your last preparation exercise according to the book and with amazing speed at that! In your haste, however, you have overlooked one of our unwritten rules: “Make sure the captain is aboard before leaving the dock.”

As HR head, you too, must discover the unwritten rules of managing the expectations of your boss. And it appears there is an urgent need for you to level up with him and clarify his thoughts. But let me ask you. Other than small and micro enterprises with two to 20 employees managed by all-around entrepreneurs, can you name an organization in this planet that does not have a full-service, full-time HR department?

Every company needs at least one professional HR clerk or specialist as soon as its manpower complement breaches more than 20 warm bodies.

I’m not doubting your story here. But, would it be possible that you may have misinterpreted the CEO’s statement that “everyone can do the work of HR and it need not become a specialist function?” Better double check this with him. Of course, there are many management functions that should be done exclusively by line supervisors, managers, and other people managers without the intervention HR, up to a certain extent.

There is a basic, kilometric difference between a line function performed by people managers while a staff function is performed by HR managers who act as the internal expert or consultant on people management issues.

One important example is employee discipline. If certain employees become habitually absent or tardy, who will personally handle the issue? The correct answer is the concerned supervisor or manager who must advise, coach, and guide the erring workers up to a certain extent, depending on the gravity of the offense and its applicable penalty. The manager closest to the problem must promptly solve it, if not take remedial measures.

If the offense merits only a verbal admonition, this is best done by the concerned line supervisors or managers. Unfortunately, it is easier said than done. Many supervisors or managers think that a verbal reprimand done in a private room with a worker-offender will suffice. But that’s not all. The concerned manager must document the oral reprimand and require the employee to acknowledge it. Unfortunately, even HR managers don’t know this basic approach. So what can you expect from non-HR managers?

Such an “oral reprimand” complete with all details about the date, time, place, and other pertinent circumstances must be documented and filed in the 201 folder of the employee. This is imperative to give management a concrete basis for what to do with the second and subsequent offenses.

If the same offense continues to be committed by the same person, and this time, it merits suspension or dismissal from employment, what would you do? This needs the specific guidance of HR that can advise the line executives on how to observe the substantive and procedural due process to protect the company against claims of illegal dismissal.

Even in the case of employee performance appraisal, the best persons to handle the task are line executives who are privy to the specific target, job standards, resources to be used and timelines. The role of HR is to provide the policy guidelines, procedures, and the forms needed in evaluating employees. HR must also act as the mediator in case of any conflict in the interpretation of appraisal policies.

Expect the worst, but prepare for all the good things that could happen, including what you can offer to the CEO. Be familiar with the latest developments in HR strategy. For one, take heed of the advice of Forbes contributor Zoe Harte, who says there are three major trends that HR must be aware of and prepare their respective organizations for this year and beyond:

One, HR must partner with marketing to define the company’s “brand.” In the war for talent, this is necessary for every organization so that it can attract, select, develop, and retain the best and the brightest.

Two, HR must create a diversity program to define a balanced workforce. In relation to number One above, the organization must be ready to accept and nurture people from all walks of life regardless of their race, religion, creed, and even sexual preference.

Last, HR must harness the advantages of a “flexible work culture.” Because of technology and the requirements of customers, organizations must promote a work environment where employees are allowed to work according to schedules that fit their lifestyles and their customers.

These are more than enough reasons for everyone to understand the significance of HR in any industry, regardless of color, culture and size. There’s wisdom in having a full-service HR department that can act as a specialist in people management matters and as a generalist when it comes to formulating a business strategy and not as someone who is limited to the safekeeping of the employees’ 201 folders.

ELBONOMICS: An excellent conversation starts with active listening.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Your Weekend Guide (June 28, 2019)

Metro Manila Pride

THE LGBTQ+ community, in this year’s Metro Manila Pride themed #ResistTogether, will march in the streets of Marikina to celebrate life and protest against the injustices suffered by the community on June 29 at the Marikina Sports Center. Admission is free. For more information, visit https://www.facebook.com/mmprideorg/.

Disco Glam at RWM

ALL the glitz and glam of the disco era of the 1970s returns with Resorts World Manila’s new variety show, Disco Glam, every Tuesday, Thursday, and Sunday, 9 p.m., the Grand Bar stage. RWM’s house performers, headlined by award-winning theater actress Sheila Valderrama-Martinez, and soul belter and The Voice Philippines finalist Radha Cuadrado will perform alongside crossover all-male trio PRIMO, pop-jazz favorites the Singing Sensations, and European performers Acro Salsa, Moon Duo, and Dance Royalty. Disco Glam is open to patrons 21 years old and above. The Grand Bar is located at the ground floor of the RWM Grand Wing. Visit www.rwmanila.com or download the RWM Mobile App for details.

SM Home Fair

SM HOME presents the SM Home Turnover Fair at the SMX Center beside the Mall of Asia on June 28. This year’s SM Home Fair will feature discounts from 10% to 50% on selected new items (as opposed to old stocks) from over 50 premium brands carried by SM Home. The fair will also feature expert-led talks by some of the country’s up and coming designers who will offer practical advice and design hacks to guests at the fair. There will also be product and cooking demos featuring some of the latest cooking appliances available in SM Home stores. In keeping with SM Home tradition, there will be design vignettes positioned all over fair from which guests can derive inspiration. The SM Home fair is open to the public, entrance is free.

Virgin Labfest 15

VIRGIN LABFEST 15 — the 15th iteration of the annual theater festival which focuses on unpublished, untried, and unstaged one-act plays — is ongoing until July 7 at various venues in the Cultural Center of the Philippines (CCP) complex. The lineup includes 12 one-act plays and four sets of staged readings. Tickets are available at the CCP Box Office and TicketWorld (www.ticketworld.com.ph, 891-9999).

Beautiful: The Carole King Musical

BASED on the true story of Carole King’s remarkable journey from teenage songwriter to rock ‘n’ roll legend, Beautiful features classic songs such as “You’ve Got a Friend,” “One Fine Day,” “So Far Away,” “Will You Still Love Me Tomorrow,” and “Natural Woman.” Beautiful: The Carole King Musical, a production of Atlantis Twenty, runs until July 7 at the Meralco Theater, Pasig City. It stars Kayla Rivera and Nick Varricchio, and is directed by Bobby Garcia. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Duty Free Fiestamall Sale

DUTY FREE Philippines will hold a clearance sale with discounts of up to 50% from June 29 to 30 at the Fiestamall in Parañaque City. Discounts will be given on all the major categories of women’s fashion and featured fragrance (up to 50%); home furnishing (up to 50%); and special discount prices on chocolates; watches (up to 50%); eyewear (up to 50%); sporting goods (up to 50%); Keleo jewelry (up to 30%); toys (up to 20%); snacks (up to 20%); Lacoste (up to 20%); liquor (up to 15%); groceries (up to 10%); electronics and appliances (up to 10%). Overseas Filipino Workers (OFWs) and balikbayans can purchase a Karcher auto cleaning/detailing package at up to 5% off.

Twice World Tour 2019

PULP Live World presents Twice World Tour 2019 “Twicelights” in Manila on June 29 at the Mall of Asia Arena. Twice, which bagged the 2018 MNet Asian Music Awards for Best Female Girl Group and Song of the Year, is made up of Jihyo, Dahyun, Chaeyoung, Momo, Sana, Tzuyu, Jeongyeon, Nayeon, and Mina. They started as trainees and contestants in the 2015 survival reality show, Sixteen. The show starts promptly at 5 p.m. Tickets are available at SM Ticket outlets nationwide and online through www.smtickets.com.

The BOYZ Asia Fan-Con

UP-AND-COMING K-pop group The BOYZ is coming to Manila this weekend as part of its Asia fan-con tour this year. Cre.ker Entertainment in partnership with Three Angles Production are bringing in the popular rookie group for a performance at the New Frontier Theater on Sunday, June 30, at 5 p.m. The group has 12 members, namely Sangyeon, Jacob, Younghoon, Hyunjae, Juyeon, Kevin, New, Q, Ju Haknyeon, Hwall, Sunwoo, and Eric. The Boyz has won several rookie awards in various awards shows, including Korea Brand Awards, Soribada Best K-Music Awards, and Best New Male Artist a the 2018 Melon Music Awards. Tickets to The Boyz Asia Fan-Con Tour (The Castle) 2019 in Manila are still available. Prices are at 2,500 (bronze), 4,500 (silver 1 and 2), 6,500 (gold) and 8,000 (VIP) with fan perks depending on the ticket tier.

GERI aims to double rental revenues this year

GLOBAL-ESTATE Resorts, Inc. (GERI) projects to book P1.4 billion in rental and hotel income this year, as it opens 10,000 square meters (sq.m.) of new leasable spaces.

In a statement issued Thursday, the listed tourism estate and integrated lifestyle communities developer said this will be double the P651 million it generated from rental and hotel income in 2018.

The growth is expected to come mainly from Southwoods Office Towers in Laguna, which it completed in 2018. The company is also scheduled to open Alabang West Parade in Las Piñas City, Holland Park Retail in Laguna, Savoy Hotel Boracay’s retail area in Boracay Newcoast, and a land lease in Antipolo, Rizal this year.

“We expect another banner year for GERI as we see both leasing and hotel income to be the major drivers of our growth. Our residential sales remain strong, as we also expect new launches of residential properties in Twin Lakes and Boracay Newcoast this year,” GERI President Monica T. Salomon said in a statement.

Aside from the retail areas, GERI also expects its newly opened hotels to quadruple hotel income. It started operations of Savoy Hotel Boracay in Boracay Newcoast in 2017, offering 559 rooms and suites.

GERI also unveiled in 2018 the 126-room Twin Lakes Hotel in Laurel, Batangas.

“Through our hotel developments, we hope to contribute to the growth of the country’s booming tourism sector especially in key tourism destinations like Boracay and Tagaytay. Aside from just hotel rooms, we are also providing facilities for MICE (Meetings, Incentives, Conventions and Exhibitions) in these areas,” Ms. Salomon said.

GERI, which is a subsidiary of tycoon Andrew L. Tan’s property firm Megaworld Corp., grew its net income attributable to the parent by 41% to P477.47 million in the first quarter of 2019, following a 33% uptick in gross revenues to P1.87 billion.

Shares in GERI jumped 5.34% or seven centavos to close at P1.38 each at the stock exchange on Thursday. — Arra B. Francia

How PSEi member stocks performed — June 27, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, June 27, 2019.

 

How does the Philippines’ online gig economy compare to those in other countries?

How does the Philippines’ online gig economy compare to those in other countries?

Duterte cites need to preserve China relations after collision

AMID calls to keep Chinese from fishing in the Philippines’ exclusive economic zone (EEZ), Malacañang said on Thursday that President Rodrigo R. Duterte will protect the country’s relationship with China, which is helping fund the “Build, Build, Build” infrastructure program.

“He is protecting the interest of the Filipino people. The ‘Build, Build, Build’ Program is precisely designed to uplift our economy, and necessarily to uplift the lives of the Filipinos,” the President’s Spokesman Salvador S. Panelo said in a briefing at the Palace on Thursday when asked if the President is trying to protect his infrastructure program.

Mr. Duterte, in his speech at the Palace Wednesday, noted that China has brought in a number of key projects, and rejected calls to ask Chinese nationals to stay away.

Ang mga projects ngayon. Kita mo naman. You from Luzon. Kita mo ’yung highway ngayon? Kita mo ’yung mga… Tapos gusto mo lang na pilitin na umalis sila doon?” (You can see where the projects are — you are from Luzon. Are you aware of the highway projects? How can you force the Chinese to leave?) the President said.

Mr. Panelo said during the briefing that the economic relationship between the two governments is one of the major reasons why the President is being “very careful” in dealing with issues related to the West Philippine Sea.

Siyempre, dahil magkakaibigan nga tayo eh,” (he is cautious because of the friendship between the two countries), Mr. Panelo said.

Asked to what extent the President will protect Philippine-China relations, he said: “Depende. Di ba sinasabi ni Presidente, ‘Kapag mayroong assault – assault haat mayroong nasaktan sa mga Pilipino, aba’y hindi ako papayag.’ Hindi ba sinabi niya? (It will depend if there’s assault. I will not stand for Filipinos getting hurt) ‘Makikipaggiyera ako sa inyo kahit na talo ninyo ako.’ (I will wage war even if we lose) ‘Di ba, klaro naman iyon eh. (Wasn’t he clear?) But I don’t think that it will come to that precisely because… he’s very smart.”

Mr. Panelo also said that it is “wrong” to assume that the Chinese government had anything to do with the June 9 collision at Recto Bank involving two “private” vessels.

“I was telling the Senate President, I think what started the whole confusion and fracas is because iyong mga kritiko or pati rin kayo siguro assumed na iyong Chinese vessel is owned by the Chinese government (The critics or maybe even you journalists maybe assumed that the Chinese vessel is owned by the Chinese government) and kaya tayo nag rereact, ang dating ay itong Chinese government na ito ang bumangga rito eh (which is why people reacted that way, because it seemed the Chinese government was behind the collision). Private eh. Bakit sinasama kasi natin ang Chinese government, isasama lang natin ang Chinese government kung wala silang ginagawa na gawing accountable iyong Chinese vessel (It was a private boat. Why are people dragging in the Chinese government? The Chinese government should only be brought up if it does nothing to hold the Chinese vessel accountable),” he said.

MUTUAL AGREEMENT
Mr. Panelo said there is a mutual agreement between Chinese President Xi Jinping and Mr. Duterte that China will not interfere with Filipino fishermen in disputed waters.

“There was that agreement, mutual agreement… na…okay na mag-fish ang Pilipino doon sa disputed areas (that it was all right for Filipinos to fish in disputed areas),” he said.

He added, “The agreement from what I gather is, hindi nila papakialaman iyong mga fishermen natin doon (they will not interfere with our fishermen).”

He said the government will still enforce the law on Chinese nationals that illegally enter Philippine waters.

“Then we will enforce the law. If it’s unlawful for them to enter, then we will enforce the law,” he said. — Arjay L. Balinbin

Election results point to policy continuity for Philippines — S&P

THE Philippines is expected to enjoy a degree of policy continuity after administration allies confirmed broad support for the government, which is expected to help the country weather external risks, S&P Global Ratings said.

“Elections in Indonesia and India returned incumbents to power while the Philippines ballot appeared to have cemented support for the current administration,” S&P said in its Credit Conditions Asia-Pacific: Return of Uncertainty report released Thursday.

“We expect these results to lead to continuity in the policy environments in these countries,” S&P added.

S&P revised its growth forecast for the Philippines this year to 6.1% from 6.3% in the face of subdued state spending after a four-month delay in passing the P3.662-trillion national budget and the stronger-than-expected impact of the China-US trade dispute on the electronics sector, the country’s biggest exporter.

GDP was 6.2% in 2018, the slowest in four years and missing the 6.5-6.9% government target band. It fell to 5.6% pace in the first quarter, also the slowest in four years and below the 6-7% target range for 2019.

“US-China friction has intensified and signs are emerging that resulting policy uncertainty is weighing on capital expenditure (capex) and growth in China and across Asia-Pacific. As expectations build that major central banks may ease, some policymakers in the region have loosened policies,” S&P said.

The Bangko Sentral ng Pilipinas (BSP) reduced its policy rates on May 9 by 25 basis points (bp), and cut the bank reserve requirement ratio (RRR) by 200 bps to 16% from 18%.

“Policy responses and external support will continue to support international investor confidence by those sovereigns more sensitive to global capital flows,” S&P said.

“In some cases, we expect IMF (International Monetary Fund) programs to underpin the policy settings where sovereigns have agreed to receive support from the institution,” S&P added.

Separately, the Department of Finance (DoF) said in a statement Thursday that economic managers must step up their talks with the legislature to head off the possibility of a veto for key economic bills.

“These vetoes do not mean that we do not support you. The President’s vetoes invite us to take another approach,” Finance Secretary Carlos G. Dominguez III was quoted as saying in the statement.

“I propose that the economic team and Congress engage more frequently so that we can mutually move forward with legislation that truly contributes to the common good. In this direction, the DoF is already reorganizing to assign more full-time directors and staff to engage with Congress on a weekly basis,” Mr. Dominguez added. — Reicelene Joy N. Ignacio

DTI issues order limiting store signage to English, Filipino

THE Department of Trade and Industry (DTI) said it issued an order to all businesses to restrict the language used in their signage and marketing materials to English or Filipino only.

Secretary Ramon M. Lopez signed the order, citing the need for consumers to be guided properly in their buying decisions, the DTI said in a statement Thursday.

Department Administrative Order (DAO) No. 19-09, Series of 2019 was issued on June 21 to “(enhance) the protection of consumers’ right to accessible information that can help them in making wise purchase decisions.” It also called use of other languages “unfair and discriminatory.”

The DAO covers signage, billboards, advertisements, brochures, flyers, notices, advisories, labels, price tags/lists, menus, receipts, and other such material.

To ensure accurate translation, establishments are now required to secure a certification from an embassy, or from accredited translators or interpreters, or any individual or institution duly recognized by the DTI.

It said the use of Filipino applies to all regional languages.

The DAO outlined fines ranging from P1,000 to P300,000 depending on the seriousness and frequency of the offense, plus the potential cancellation of business licenses.

Compliance period was set at one month.

The government is receiving complaints about businesses catering only to Chinese clients, including a food park in Las Piñas with all-Chinese signage. — Janina C. Lim

Common tower provider ALT Global Solutions signs up Now Telecom

ALT Global Solutions, Inc. has signed an agreement with Now Telecom Co., Inc. for the provision of shareable telecommunications infrastructure.

In a text message to BusinessWorld Thursday, ALT Global Director Sherwin Hing said the company is moving forward with its goal of becoming one of the tower providers to sign a memorandum of agreement (MoA) with the Department of Information and Communications Technology (DICT), which will provide assistance in securing permits to build cell sites.

“We are taking to all the three major MNOs (mobile network operators) but so far we’ve signed with Now Telecom,” he said.

“We are in discussions with major telcos to utilize our shared tower infrastructure to enable rapid deployment of cellular equipment, and in some areas increase cellular density in preparation for 5G (fifth-generation mobile),” he added.

Aside from ALT Global, edotco Group Sdn Bhd and ISOC Infrastructure, Inc. also signed MoAs with the DICT Thursday.

The signing of MoAs with the tower providers is a preliminary step to secure the DICT’s assistance in securing permits.

The DICT requires that the tower companies sign an agreement with at least one telco before it signs an MoA.

edotco and ISOC signed a tripartite agreement with Globe Telecom, Inc. earlier this month to roll out 150 shareable towers in Cavite, Laguna, Batangas, Rizal and Quezon (Calabarzon).

Mr. Hing said ALT Global hopes to establish 1,000 sites across the country in the next three years. These towers will be leasable not only to Now Telecom, but also to major telecommunications firms Globe Telecom, Inc., PLDT, Inc. and the incoming Mislatel consortium. “[O]ur first site is in BGC (Bonifacio Global City),” he said.

The government is targeting 50,000 common towers in the next seven to 10 years to improve tower density, which is expected to ease subscriber congestion estimated at 4,000 subscribers per tower. — Denise A. Valdez

NGO claims Oceanagold mine halts operations

AUSTRALIAN MINER Oceanagold Corp. has suspended work at its Didipio mine, an environmental organization claimed, saying that the province of Nueva Vizcaya ordered a halt to operations.

The Mines and Geosciences Bureau (MGB), which regulates the mining industry, said the company, whose Financial or Technical Assistance Agreement (FTAA) expired on June 20, can still validly operate since its renewal application was submitted on time and is being processed.

The company had not responded to requests for comment at deadline time. Attempts to contact the Nueva Vizcaya government were hindered by a non-functioning telephone line.

Oceanagold, which is listed on the Australian Stock Exchange, had made no disclosure to the ASX at deadline time.

In a statement, environment group Kalikasan People’s Network for the Environment (Kalikasan PNE) claimed that Nueva Vizacaya Governor Carlos M. Padilla sought the suspension of the company’s operations in Barangay Didipio, Kasibu, Nueva Vizcaya.

Kalikasan PNE claimed mining operations were halted at 6:48 AM on Wednesday. It did not explain how it got the information.

Didipio is a high-grade underground gold and copper mine, which started commercial production as an open pit operation in 2013. It transitioned to underground operation in 2016, with production commencing early 2017.

The group claims that the mine degrades the forests and rivers around Kasibu.

Oceanagold has said previously that it has been working with the government to renew its FTAA, and was permitted to continue operations during the process.

MGB Director Wilfredo G. Moncano said the company can operate since it was able to file for renewal before expiration of its FTAA, which is now with the Office of the President (OP).

“Our position is Oceana is not suspended because it was able to file a renewal application prior to the expiry. Section 18, Chapter 3, Book 7 of the Administrative Code of 1987 provides that the license of Oceana does not expire until there is a determination of the agency concerned which is the OP,” he said in a text message to BusinessWorld.

He said that he has not been informed of any suspension.

“The renewal application was filed in 2018 prior to its expiry last June 20 this year. Environment Secretary (Roy A.) Cimatu has favorably endorsed the renewal application,” he added. — Vincent Mariel P. Galang