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Someone from the Philippines can become $274M richer

The American Mega Millions lottery currently offers the biggest jackpot prize in the world: $274 million USD. This huge amount has captured the attention of lottery fans all over the world. The winner could even be from the Philippines.

There is no need for you to travel to the United States to take a chance on winning the great Mega Millions jackpot. It is possible to play the game by purchasing official Mega Millions tickets online at theLotter.com.

TheLotter’s spokesman Adrian Cooremans said: “US Lotteries’ rules state that you do not have to be a citizen or a resident to play the game, but, in order to be able to collect any prize, the ticket must stay in the relevant state. That’s why we keep customers’ tickets inside a safe in a secure location in the States and send them a scan proving chain of custody. Our past winners from Europe, Australia, Canada, Iraq and Latin America were all checked thoroughly by federal and state agencies and each time the conclusion was that theLotter and the individual winners acted in accordance with the rules of the lottery and the law.”

Mr. Cooremans continues: “US lotteries pull in a global crowd once jackpots reach this sort of level. And, yes, amounts at stake are astonishing. If there will be a winner this week, he or she will be wealthier than the average movie star or top CEO. It really is the stuff dreams are made on.”

Here’s how you could win a $274 million jackpot from the Philippines:

  1. Sign up at theLotter.com, the world’s leading online lottery ticket purchasing service.
  2. Select the Mega Millions lottery from over 45 lotteries available on the site.
  3. Fill out your ticket with your favorite numbers, or use a computer-generated random selection.
  4. Indicate how many lines you want to play, or choose to play with a lottery syndicate to increase your chances of winning.
  5. Confirm your ticket purchase and you’re eligible to win prizes in the upcoming draw.

How theLotter works

TheLotter is a lottery ticket messenger service. TheLotter uses local agents in the United States to buy official lottery tickets on behalf of its customers from all over the world. A small surcharge is added to ticket prices in order to cover the cost of this service. The ticket is scanned and uploaded to a customer’s account before the draw. With this scanned version of the ticket and email confirmation, customers can rest assured that they have full ownership of their tickets.

At theLotter, customers can purchase tickets to the world’s biggest lotteries including Mega Millions, Powerball, EuroMillions, the Italian SuperEnalotto, EuroJackpot, and more. TheLotter provides a dedicated support team, available 24/7, to help customers with any concerns.

What happens when you win?

When you win a lottery jackpot prize at theLotter, the entire amount is yours! No commissions are deducted from winning tickets. Winnings are transferred to your secure, private account and you can withdraw them at any time. If you win a lottery jackpot, however, you many need to travel to the lottery’s offices to collect the prize money yourself. In this case, a lawyer provided to you by theLotter free of charge will assist you in the win collection process.

Over the years, theLotter has paid out more than $100 million in prizes to over 5.5 million winners from across the globe. The biggest winners at the site have included a woman from Panama who won $30 million playing the Florida Lotto, and a man from Iraq who won a $6.4 million Oregon Megabucks jackpot.

The Mega Millions jackpot could be won at any time and the next draw is coming up soon. It is totally possible for the next big lottery prize winner to be a Filipino!

For more information on how to play Mega Millions online in the Philippines, please visit theLotter.com.

 

EDITOR’S NOTE:

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Innovation’s potential in crisis: COVID-19 lessons from Israel

By Adrian Paul B. Conoza
Special Features Writer, BusinessWorld

Israeli diplomats share insights from their ‘startup’ nation’s COVID-19 response

The global fight against the coronavirus disease 2019 (COVID-19) has reaped noteworthy practices from countries that have recently been easing up their restrictions.

Aside from nearby countries who had successfully tackled the spread of the disease in their areas, the middle-eastern country of Israel is noted for its quick and exemplary response to COVID-19.

In the second leg of the Asian Institute of Management’s (AIM) International Best Practice Series, representatives from the Embassy of the State of Israel in the Philippines shared the country’s experience in dealing with the pandemic, particularly pointing out the factors that made the state prepared to deal with it and the lessons they have learned in responding to COVID-19.

Backed by a strong economy, R&D

Rafael Harpaz, ambassador of Israel to the Philippines, finds the country’s economic development, especially in terms of establishing startups and spending on research and development, as one of its strengths that made it much capable to respond to the crisis.

While the country’s economy is based mainly on export, according to Mr. Harpaz, it is very much notable for hi-tech industries rapidly developing there.

“There are no miracles in economy. It involves government involvement into the economy, giving incentives to startups, higher education, and entrepreneurship character, which is something typical for Israelis,” the ambassador said of the country’s economic development.

Israel has over 6,000 startups, according to Mr. Harpaz, among them mobility-as-a-service solutions company Moovit, which was recently acquired by technology company Intel.

Mr. Harpaz also sees strength in the country’s generous expenditure on research and development.”This is the heart of the Israeli economy. We are having a high percentage; 4.25% of our GDP goes to R&D. That’s the highest in the world,” he stressed.

Mr. Harpaz highlighted practices in Israel’s response to COVID-19 such as halting flights, tapping on technologies, stocking protective equipment through Israel’s ambassadors, transitioning local industries into producing medical equipment, working on vaccine development projects, and isolating towns and villages with a high percentage of confirmed cases.

In terms of technology, the ambassador recalled a mobile application as an example. “If we have somebody who has [coronavirus] and you walk in the street, your cellphone will indicate that you’re close to somebody who has [coronavirus],” he said.

The lessons that can be learned from Israel, for Mr. Harpaz, include the potential of technology during crises, the importance of a strong health system, and bracing for the unknown.

“The countries that will be at the forefront of scientific, economic, and [technological developments] will be the ones that will move faster when we go out of this crisis,” he said. “The experiences demonstrated that crises are [catalysts] for technological innovation and developments…Because of our startup capacity and innovation mentality, I think Israel can be there.

“During this COVID-19, every day there are new things we don’t know, so we need to be aware that we might have surprises,” he further advised.

He applied this alertness to Israel’s expanded testing capacity. “We have more than half a million people tested already out of nine million, and we now have a potential to do another 300,000 serological tests to check if they already had the disease so that [do not contaminate],” he said.

According to the ambassador, Israel has recently resumed its business “at a very fast pace” and has opened its schools as well. Nonetheless, it implements an exit strategy that consists of a recovery plan funded at 21 billion US dollars, an upgrade of their health system, and preparation for the second wave of COVID-19 cases.

“The risk of the second wave is here. We are aware of this. So, social distancing is very important. Public transportation is existing but very limited,” he explained.

Innovative approach

YuliaRachinsky-Spivakov, deputy chief of mission at the country’s Israeli embassy, further highlighted Israel’s richness in technology, from which innovative solutions to COVID-19 have been discovered and utilized.

As a small country with a challenging environment, Ms. Rachinsky-Spivakov shared, Israel has served as a breeding ground for innovation.

“[Compared to] Metro Manila, we are not that very big. It’s also located in a very challenging environment, and it faces a lot of security challenges. Those are the main reasons that brought Israelis to think out of the box and find ways to overcome those challenges,” she said.

She also attributes this abundance of innovation to education, as “Israelis are educated to challenge the authority and to think about solutions to difficult situations.”

A wide array of solutions out of collaborations between scientists, entrepreneurs, and institutions have emerged in the current situation, as the deputy chief of mission showcased.

The solutions were clustered into four major sectors. The first one focuses on the prevention of further contamination of COVID-19. Startup Viziblezone, for instance, which specializes in avoiding car accidents by keeping distance between cars, has adapted its technology to find a solution for monitoring social distancing in the workplace.

Another company, Soapy, developed hand-washing micro-stations that use special plant-based ingredients that kill viruses like COVID-19.

Even the military industry, a strong one in Israel, has done its share in the fight against COVID-19. Engineers from aerospace and aviation manufacturer Israel Aerospace Industries developed ultraviolet-light technology that makes the elimination of virus safer and easier.

Other preventive technologies presented include 3D printers for producing face masks and self-sterilizing fiber for masks and personal protective equipment.

There are also innovations that aim for effective testing, Ms. Rachinsky-Spivakov continued. Out of a collaboration between Israel’s defense ministry and artificial intelligence-based platform Vocalis Health, vocal fingerprints can be used for diagnosing COVID-19.

“There is no need of direct contact [between] patient and medical staff, and of course it can be done from a distance and eliminate any further contamination,” the deputy chief stressed.

She also noted the recent development from an Israeli university of a one-minute test that reportedly uses samples from the breath or nose swabs to identify carriers.

AI has also been observed to be useful in increasing daily testing capacity without requiring additional staff. “Israelis are working intensively on different developments or uses of how AI can assist us in this battle,” she said.

Under the development of vaccine, Ms. Rachinsky-Spivakovadded, several innovations have been in progress. These include using advanced computer systems for developing antibodies designed that will fight the virus and reformulating poultry flu vaccine to an oral vaccine against COVID-19.

“Our research institutions came to the conclusion that the shortest way is to try using existing biological materials [and] existing treatments [or] vaccinations that we have to fight against other diseases,” she noted.

Innovations have also been applied in the field of treatment. Telemedicine is observed to provide a contamination-free solution to patients, as exemplified by Israel’s Sheba Hospital which has developed a home apparatus based on telemedicine to monitor COVID-19 patients.

Placenta cells have been employed as well in Israel for treatment. Referred to as ‘compassion treatment’, placenta cells are given to patients on which “no [other] medical treatment can help them anymore based on the professional [findings] of the medical staff”.

For the deputy chief, the key lessons from Israel’s fight are the government’s unified approach, the strong cooperation between private and public sector, and the large participation of research institutions and universities.

“There is a lot of opportunities for cooperation,” Ms. Rachinsky-Spivakov said. “The fact that we are facing global challenges, that we share the same threats, is making us closer. Nevertheless, we have to take into account that every country has its own unique characteristic, so there is no tailor-made solution for everybody.”

Virus 2nd wave to deepen contraction

THE Philippine economy may face a deeper contraction if a second or third wave of coronavirus infections emerges, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Monday.

“In case there is a second wave that could mean ‘W-shaped’ recovery, it’s going to be much worse than the revised forecast,” Mr. Diokno said in an interview with ABS-CBN News Channel.

With a “W-shape,” the economy faces a bumpy ride where it would bounce back and sharply drop before a full recovery is seen.

In an effort to reopen the economy, lockdown restrictions were relaxed in Metro Manila and other parts of the country over the weekend. Many Filipinos went back to work, raising fears of a potential second wave of coronavirus disease 2019 (COVID-19) infections.

As of Monday, COVID-19 infections in the country rose by 205 to 12,718 while the death toll has reached 831 and recoveries totaled 2,729.

The Development Budget Coordination Committee (DBCC) last week said it projects gross domestic product (GDP) to contract by 2% to 3.4%, worse than the flat growth to -1% outlook it gave in April. The DBCC’s latest estimates assume a loss of about P2 trillion in gross value added or equivalent to 9.4% of nominal GDP, the central bank chief said.

Mr. Diokno said the latest DBCC estimates take into account the fiscal and monetary measures done by the national government and the central bank so far.

He said easing some lockdown restrictions bodes well for the economy’s eventual recovery.

“You have to consider that a big chunk of the country is now under modified to general quarantine and so that is a positive for the country, unless there is a deterioration in those hotspots,” Mr. Diokno said.

The first-quarter GDP already fell by 0.2%, the first contraction since the three percent drop seen in the fourth quarter of 1998. The economy is expected to slip into a recession with lockdown’s impact to be bigger in the second quarter.

DELAYED RECOVERY
“A W-shaped recovery may mean a higher level of annual economic contraction compared to a single resurgence that initially merited an economic lockdown in March,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

“This would mean relegating economic activities again in the background to prevent the further spread of the virus, especially the non-essential business that have been reeling in the doldrums of non-activity,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said more fiscal and stimulus measures will be needed in the case of a slower, W-shaped recovery.

“[T]his would require more stimulus measures such as financial aid for the most vulnerable sectors. This would also require greater monetary easing from the central bank,” he said.

Mr. Ricafort said hardest-hit industries could lose about 2% of their total income for every month of shutdown. Restrictions on business activities may have to be put in place again in the case of a second wave.

A second wave of infection could put more strain on the economy until 2023, according to Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr.

The DBCC projects economic recovery by 2021, with a growth outlook of 7.1% to 8.1% given the base effects from 2020.

“If we see a second wave of infections, we would see the recovery happen as late as 2023. Or maybe even later than that…because we saw from the first-quarter numbers, that just two weeks of lockdowns led to the slowest performance in consumption since the 1980s,” Mr. Neri said in an interview with ANC.

Mr. Neri said that government response should be proportionate to the gravity of the restrictions imposed in relation to the virus outbreak. He cited data from the IMF which showed that the country’s fiscal response is equivalent to about 3.4% of GDP.

“Stricter lockdown disrupts economy more. Vietnam lockdown was not too strict but early ban helped limit burden on government for support, same with China,” Mr. Neri said in a text message.

Mr. Diokno said a supplemental budget is needed to boost the economy and help people during the crisis.

“I think there is a need for supplemental budget, you cannot just rearrange the budget. There’s not enough room there (budget) for higher spending for this pandemic,” Mr. Diokno said.

To avoid the risks of a second wave of infections, analysts said spending should be ramped up for the healthcare sector.

“The healthcare aspect should be intensely stepped up. Implementation of health standards and restrictions should be amplified to its containment potential on all possible levels,” Mr. Asuncion said.

“Countries with weaker healthcare system should actually be more aggressive in their fiscal response, because this is necessary to offset the massive impact of the lockdowns,” Mr. Neri said.

Nomura Global Markets Research has said last week that they estimate an additional 1% of GDP should be allocated for healthcare spending, based on the estimated required resources of the World Health Organization and in the case when the country’s COVID-19 cases peaks at 30,000. — Luz Wendy T. Noble

IMF reviews forecasts for PHL economy

By Luz Wendy T. Noble
Reporter

THE bigger-than-expected impact of lockdown measures on the economy is prompting the International Monetary Fund (IMF) to revisit its growth outlook for the Philippines.

“In light of the newly released Q1 growth outturn, we are reviewing our forecasts for 2020 and 2021. The impact of community quarantine on economic activity seemed to be larger than we had expected,” IMF Resident Representative to the Philippines Yongzheng Yang told BusinessWorld in an e-mail on Friday.

The Philippine economy contracted by 0.2% in the first quarter, which saw the implementation of the first two weeks of the enhanced community quarantine (ECQ) in Luzon. The economy is expected to be hardest hit in the second quarter, as the lockdown continued through May.

In April, the IMF projected the Philippines’ gross domestic product (GDP) to grow by 0.6% this year, and by 7.6% in 2021. In November, this year’s GDP growth was projected at 6.3%.

The IMF in April forecast the global economy would contract by 3% this year, which is said to be the steepest downturn since the Great Depression. A longer crisis may even push the global economy into a deeper contraction of 6% this year, and zero growth in 2021.

“With no medical solutions yet, this Great Lockdown is not going away anytime soon, and the outlook is beginning to worsen relative to our already dire forecast for 2020,” IMF Chief Economist Gita Gopinath said in a recent tweet.

Mr. Yang said the updated growth forecast for the Philippines will be released in late June, which would take into account the extension of the ECQ, albeit modified, for Metro Manila. Other areas in the country were placed under general community quarantine.

Last week, the Development Budget Coordination Committee said GDP this year could contract by 2-3.4%, lower than the -1% to zero growth it assumed in late March. This is also a stark difference from the 6.5% to 7.5% target growth this year after the six percent growth in 2019.

Moving forward, Mr. Yang said that the most critical constraint on growth is still the outbreak as it leaves governments to go for community quarantines and other measures to contain further spread, resulting in hampered economic activities.

“The more quickly the spread of the virus is brought under control, the more quickly the economy can recover,” Mr. Yang said.

The virus has already sickened over 4.7 million worldwide and has killed over 312,000.

As of Monday, the number of local infections reached 12,718, while deaths stood at 831.

PESSIMISTIC OUTLOOK
“The current global recession is adding pressures on the Philippines’ recovery as export demand, especially for tourism, and remittances will remain weak for some time to come,” Mr. Yang said.

Despite these challenges, he believes the country’s macroeconomic fundamentals remain strong.

“The strong macroeconomic fundamentals that the Philippines has built in recent years have enabled the country to deliver strong policy support to the affected citizens and businesses in this difficult time,” Mr. Yang said.

“The Philippines has considerable room to provide more fiscal and monetary stimulus to the economy, given the country’s relatively low public debt compared with peer countries and well-anchored inflation expectations.”

Amid the lockdown, the government has implemented a P200-billion cash grant program for poor families and the P51-billion wage subsidy program for smaller businesses.

The central bank has slashed policy rates to record lows and lowered reserve requirement for banks in a bid to cushion the impact of the pandemic and to boost liquidity during the lockdown. It has likewise rolled out regulatory measures to help small- and medium-sized enterprises (SMEs), such as allowing banks to use SME lending as an alternative for reserve compliance.

“These and future policy measures will help support consumer and business confidence, offsetting some of the negative impact of declines in export demand and remittances,” Mr. Yang said.

The government should also continue to “focus on strengthening the capacity of the healthcare system, protecting vulnerable low-income households, and supporting small- and medium-sized firms,” he said.

“Robust implementation of policy measures will also be critical for policy effectiveness. Accelerating the planned introduction of the national ID system will be especially important in this regard,” he added.

Registration for the national ID has been pushed to October, from its original June target. Lawmakers urged the government to fast-track the national ID system in order to address some problems related to the distribution of cash grants and wage subsidies.

Big-ticket projects safe from budget cut

BIG-TICKET projects of the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr) will not be affected by budget cuts, officials said on Monday.

“I’m handling big-ticket projects. They’re not affected by the budget cut,” DPWH Build, Build, Build Chairman Anna Mae Y. Lamentillo told BusinessWorld in a phone message, adding that the department is still preparing the “final list” of the affected projects.

She said among the unaffected big-ticket projects are Metro Manila Skyway Stage 3 and the Tarlac-Pangasinan-La Union Expressway (TPLEx) Extension.

The DPWH said in a statement on May 14 that it resumed work on several flagship projects in Metro Manila, including the Bonifacio Global City-Ortigas Center Link Road Project, the Estrella-Pantaleon Bridge Project connecting Makati City and Mandaluyong City, and the Binondo-Intramuros Bridge.

Public and private construction projects have been allowed to resume under the modified enhanced community quarantine (MECQ) but workers must be housed and fed onsite and observe distancing rules, among other requirements for construction work during the pandemic.

DoTr Assistant Secretary Goddes Hope O. Libiran said in a separate phone message: “According to our Undersecretary for Finance Garry V. de Guzman, DoTr big-ticket projects are not affected. They will still push through until partial operability and completion.”

On whether the government’s reduced and redirected budgets will affect smaller projects, she said: “No. We only offered the peso portion of certain projects, and those budgets that we can no longer disburse within the year.”

Asked to elaborate, she said: “For instance, the MRT-3 rehabilitation project. While the peso portion of this project has been offered, the project is still in full swing. In fact, total rail replacement is scheduled to be completed by the end of September 2020.”

In April, Ms. Libiran said her department identified 35 transport projects where around P15 billion could be freed up for the government’s coronavirus relief efforts.

She declined to provide the list, but said the cut is across all transport sectors such as rails, airports, ports and roads.

The projects are not being canceled and will still proceed since only a portion of their budgets will be realigned, Ms. Libiran said.

According to the Department of Budget and Management (DBM), allotments for line departments were adjusted in April in order to augment the budget of agencies responding to the pandemic.

Under Republic Act No. 11469 or the Bayanihan to Heal As One Act, President Rodrigo R. Duterte has the authority to realign funds to the COVID-19 containment effort.

The DPWH suffered the biggest budget cut at P121.94 billion, bringing its allocation this year to P458.95 billion from more than P580 billion originally.

The DoTr’s budget was trimmed by P8.82 billion to P90.58 billion.

Budget Undersecretary Tina Rose Marie L. Canda said in a phone message on Sunday that the DPWH “had the biggest unreleased budget amount kaya sila ’yung malaki ang na-offer (which is why the DPWH had the most funds on offer).” — Arjay L. Balinbin

Recovery could drag through 2021 — Powell

THE US economy will recover from the coronavirus pandemic, but the process could stretch through until the end of next year and depend on the delivery of a vaccine, said Federal Reserve Chairman Jerome Powell.

“Assuming there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of this year,” the US central bank chief said in a television interview conducted Wednesday, parts of which were aired on CBS’s Face the Nation and 60 Minutes shows on Sunday.

“For the economy to fully recover people will have to be fully confident, and that may have to await the arrival of a vaccine,” said Mr. Powell, seated in the Fed’s stately boardroom at the long table used to deliberate monetary policy. His interviewer was seated at a socially safe distance at the end of the table.

More than 36 million Americans have lost their jobs since February as the economy shuttered to limit virus spread. Countless companies, especially small businesses, are hurtling toward bankruptcy, while states and cities are confronting gaping budget shortfalls that could provoke a massive second wave of layoffs from the public sector.

To limit the harm, Mr. Powell and his colleagues have slashed interest rates to zero, flooded financial markets with trillions of dollars in liquidity, and unveiled nine emergency lending facilities to keep credit flowing in the economy.

Some investors have bet the Fed may be pushed to follow other central banks in adopting negative interest rates, which President Donald Trump has repeatedly called for in the US.

Fed officials including Mr. Powell have consistently batted this idea away, and he did so again on Sunday.

“I continue to think, and my colleagues on the Federal Open Market Committee continue to think, that negative interest rates is probably not an appropriate or useful policy for us here in the United States,” he said, according to a transcript of the full interview. “There’s no clear finding that it actually does support economic activity on net. And it introduces distortions into the financial system, which I think offset that.”

The Fed chief said people should never “bet” against the American economy and firmly played down suggestions that if faced a second Great Depression. But he took care not to promise a swift, so-called V-shaped rebound.

“This economy will recover. It may take a while,” he said. “It could stretch through the end of next year. We really don’t know.”

Mr. Powell also stressed that the central bank hadn’t exhausted its options for aiding the economy.

“There’s a lot more we can do. We’ve done what we can as we go. But I will say that we’re not out of ammunition by a long shot,” he said. Mr. Powell noted the Fed can increase its emergency lending programs and make monetary policy more supportive through forward guidance and by adjusting the Fed’s asset-purchase strategy.

That could be a veiled reference to yield curve control, where the Fed undertakes to hold yields out to a certain maturity at a certain level, as the Bank of Japan already does. Some analysts expect the Fed to move in that direction later this year.

FISCAL POLICY
Mr. Powell’s remarks follow his grave warning Wednesday that the US economy faces lasting harm from the pandemic if the government doesn’t step up. The comments add support to calls for more congressional spending as Democrats push for a fresh $3 trillion in virus aid on top of a record $2.2-trillion package agreed in March. On Friday, the House passed the measure, though it has no future in the Republican-led Senate.

Mr. Powell can expect questions on the scale and timing of additional fiscal relief when he appears before the Senate Banking Committee on Tuesday.

Pressed on the question during the CBS interview, Mr. Powell said providing more congressional support to state and local governments was “something that deserves a careful look,” and also cited the need for policies to limit business insolvencies and keep workers in their jobs and homes.

He also declined to be drawn into the debate on when the US economy should reopen, beyond saying it should happen carefully to minimize the risk of sparking more infections.

But he opened up when it came to the next time he’d feel safe sitting in a crowd to watch his hometown’s Stanley Cup-winning hockey team, the Washington Capitals.

“Certainly no sooner than next season,” he said. “Public sporting events, public concerts and things like that — those will be among the last things that can be resumed.” The National Hockey League’s 2020-2021 season is scheduled to start in October, 2020. — Bloomberg

ERC to Meralco: explain high power bills

SWAMPED with complaints, the Energy Regulatory Commission (ERC) on Monday ordered Manila Electric Co. (Meralco) to explain its calculation for its past customers’ monthly billings from March to May.

“We have been bombarded with complaints on Meralco’s alleged high billings covering the past three months, including this May, and we need to look into these consumers’ allegations that we required Meralco to submit to us data or information for us to validate the accuracy of their billing calculations,” ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said in a statement.

In a letter dated May 15, the commission asked the country’s biggest distribution utility about the basis of its determination of the kilowatt-hour (kWh) consumption of its customers during the period of enhanced community quarantine (ECQ) from March to May.

The ERC is also seeking the listed utility’s power bills from suppliers, which were reflected in its computation of generation rate, as well as its invoices from the National Grid Corporation of the Philippines (NGCP) for the computation of its transmission rate and its uniform reportorial requirement for the billing periods.

In a statement last week, Meralco addressed customers’ bill shock, saying that the May bill is the result of the actual electricity consumption in kWh from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

“This total, which is already based on the true and actual readings, is what customers actually see in the May bill. That is why you may notice a rise in the total amount due,” it said.

According to Meralco Spokesperson Joe R. Zaldarriaga, some March and all April bills were estimated based on the average daily consumption of customers from the past three months, following the distribution services and open access rules (DSOAR) issued by the ERC.

The apparent spike in electricity rates was due to various factors, the utility said. These include the uptick in power consumption during the ECQ and the high May temperature, which led to higher use of cooling appliances at home.

Meralco rates for this month is set to go down with a typical household consuming 200 kWh to likely see a P50 cut in its monthly bill. This is due to a reduction in its overall electricity rates by P0.2483 per kWh to P8.7468/kWh from April’s P8.9951/kWh.

Its generation charge for this month went down by P0.2537/kWh to P4.3848/kWh from last month’s P4.6385/kWh, while its transmission cost slightly went up by P0.0175/kWh as ancillary charges were increased, along with taxes and other charges posted a net decrease of P0.0121/kWh.

The ERC has yet to determine whether or not Meralco complied with the DSOAR and its advisories on the implementation of pass-thru charges, which were ordered deferred.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

ABS-CBN interim permit recalled

THE House of Representatives reconsidered the second reading approval of House Bill (HB) 6732, which seeks to grant provisional franchise to ABS-CBN Corp. until October 31, 2020.

During the session on Monday, House Deputy Majority Leader Wilter Wee Palma II said lawmakers recalled the second reading approval to give way to members who wish to make interpellations and amendments to HB 6732.

The bill was approved on second reading on Wednesday last week, the same day it was filed by House Speaker Alan Peter S. Cayetano.

Albay Rep. Edcel C. Lagman raised constitutional concerns on the passage of the bill in first and second readings on the same day.

“This concurrent passage on first and second reading on the same day on 13 May 2020 violates Sec. 26 (6) of Art. VI of the Constitution which unequivocally requires three readings on separate days for a bill to become a law, unless certified urgent by the President,” he said in a statement on Monday.

Mr. Lagman, however, lauded the House leadership “for seeing the light on the need to reconsider the approval on second reading” of the bill.

He further encouraged the House leaders to expedite the consideration of the bills proposing for a 25-year renewal of the network’s franchise.

“The hearings on the franchise renewal bills should be calendared soonest to enable ABS-CBN to explain or traverse its alleged franchise violations and ventilate all other related issues once and for all,” he said.

ABS-CBN DEFENDS ASSIGNED FREQUENCIES
Separately on Monday, ABS-CBN said it had submitted on May 15 its written explanation to the National Telecommunications Commission (NTC) Legal Branch why the frequencies assigned to it should not be recalled.

The submission is required by the cease-and-desist order issued on May 5 by the commission against the media giant whose franchise had expired on May 4.

In its 19-page explanation, the network denied the conclusion made by the NTC that its “frequencies should be recalled on the ground that its legislative franchise had expired.”

“Recent events indicate that the grant of a legislative franchise to ABS-CBN is forthcoming. The recall of the assigned franchise would thus be a useless and costly exercise, in contravention of the intent and desire of Congress,” it said.

The media company added being allowed to retain its frequencies is “consistent with legislative policy.”

It argued that instant proceedings on the matter must be suspended as the Supreme Court has yet to decide on its petition to block the cease-and-desist order issued by the commission.

The network said the recall of the assigned frequencies “may only be done after hearing and compliance with the requisites of due process of law.” — Genshen L. Espedido and Arjay L. Balinbin

SEC orders shutdown of outsourcing firm CROWD1

THE Securities and Exchange Commission (SEC) has ordered the shutdown of CROWD1 Asia Pacific, Inc. for operating a “fraudulent investment scheme.”

The commission said on Monday that it had issued on May 12 a cease-and-desist order to the business process outsourcing firm that has been peddling and publicly promoting securities in the form of investment contracts without permits.

The company was found to be selling investments through educational packages for P6,000 and as much as P240,000.

It entices investors with different bonuses, such as a streamline bonus, a binary pairing bonus, a fear of loss bonus, a matching bonus, and a residual bonus from games and gambling apps.

“CROWD1 likewise touts a pairing incentive payable in euros to encourage member-investors to recruit new members,” SEC noted.

The corporate regulator said CROWD1 did not register for a secondary license to sell investment contracts nor registered with the agency to sell these anywhere in the Philippines, pursuant to the Securities Regulation Code.

“[I]t is clear that CROWD1 is not authorized to sell or offer its educational packages to the public because they are securities in the form of investment contracts, and CROWD1 does not have the requisite license from this Commission,” the order read.

The fraudulent scheme will “likely cause grave or irreparable injury or prejudice to the investing public,” it added.

The company claimed it generates income from online games and ushers in generating residual income for its member-investors from affiliate gaming companies, such as AFFIGLO and MIGGSTER.

The SEC has since warned the public of engaging with CROWD1. — Adam J. Ang

Ty-led GT Capital’s earnings slump 26% on COVID-19 impact

GT Capital Holdings, Inc. (GT Capital) booked a 26% drop in net income for the first quarter as the coronavirus disease 2019 (COVID-19) pandemic took a heavy toll on the profits of nearly all its business units.

The Ty-led holding firm reported earnings of P2.5 billion in the January-to-March period, down from the P3.4 billion it recorded the same period last year. Core net income declined 16% to 2.8 billion as consolidated revenues fell 13% to P39 billion.

By business segment, banking arm Metropolitan Bank & Trust Co. (Metrobank) contributed a net income of P6.1 billion, lower by 9% year-on-year and making up 59.3% of the pie. This decline is due to Metrobank’s reaction to the COVID-19 pandemic, doubling provisions to P5 billion which weighed on its bottomline.

Automotive arm Toyota Motor Philippines (TMP) added P1.5 billion in net income, down 20% from last year and comprising 19.2% of the group’s total. Retail vehicle sales dropped 23% to 25,686 units, as most of TMP’s dealers were closed in end-March due to the quarantine.

Real estate unit Federal Land, Inc. was the only business segment that posted an income growth during the first quarter, surging 98% to P375 million. This was due to the 86% jump in reservation sales and 40% increase in lease revenues, resulting in a 33% growth in consolidated revenues to P3.3 billion.

GT Capital’s stake in Metro Pacific Investments Corp. (MPIC) resulted in a net income of P300 million, declining 47% from a year ago due to the slowdown in MPIC’s toll roads, water and rail segments.

Insurance unit Philippine AXA Life Insurance Corp. added a P367 million to the net income, slumping 55% from last year due to the 30% market value decline in its equities portfolio as a result of the quarantine.

Despite this, GT Capital President Carmelo Maria Luza Bautista said he is confident the company will recover as it adapts to the changing environment triggered by the COVID-19 pandemic.

“We are confident that we can bounce back from the current worldwide disruptions and adapt our strategies to the ‘new normal’ conditions of the marketplace,” he was quoted as saying in a statement.

“Given the diversity of our investment portfolio, the strong position we hold in the sectors we are in, our solid financial position, and our strategic partnerships, we believe that our group will be more resilient in coping with today’s difficult environment,” Mr. Bautista added.

Shares in GT Capital at the stock exchange lost P12 or 3% to close at P388.40 apiece on Monday. — Denise A. Valdez

Del Monte raises $1.3B to boost balance sheet

THE American unit of Del Monte Pacific Ltd. has raised $1.3 billion from bond issuances to trim loan facilities and recapitalize its balance sheet.

In a disclosure to the stock exchange Monday, Del Monte said its subsidiary Del Monte Foods, Inc. (DMFI) was able to generate new financing to reduce its total loan facilities to $950 million from $1.4 billion.

The new financing is composed of $500 million from a five-year bond issuance, $450 million from a new three-year asset-based loan (ABL), and $378 million from selling equity to parent firm Del Monte.

As DMFI issued the five-year senior secured notes and signed a three-year ABL, it took a $150-million investment in new equity from its parent firm Del Monte, and converted $228 million of its second lien repurchase loans into common equity in DMFI.

The completion of these transactions resulted in a recapitalization of the company’s balance sheet, allowing it to lay out new plans for Del Monte’s future growth.

“This transaction is an important milestone for DMFI and the (Del Monte Group),” Del Monte Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said in the statement.

“In this new market environment, Del Monte has seen significantly increased demand for its healthy, shelf-stable products across all product lines. Today’s recapitalization and de-levering position the company to take full advantage of these new market opportunities,” he added.

DMFI claims to be the leading producer, distributor and marketer of plant-based food products in the United States, owning brands such as Fruit Naturals, Orchard Select, SunFresh and Fruit Refreshers.

“We are tremendously gratified to see such enthusiasm for the Del Monte story among investors. We appreciate this recognition of the company’s recent performance, the success of our asset-light cost management initiatives, and our plans for growth and profitability going forward,” DMFI President and Chief Executive Officer Greg Longstreet said in the statement.

Shares in Del Monte at the local bourse closed flat on Monday at P3.96 apiece. — Denise A. Valdez

Biogas project of MPIC unit, Dole receives Japanese gov’t subsidy

A waste-to-energy project by a unit of Metro Pacific Investment Corp. (MPIC) with Dole Philippines, Inc. received the first tranche of subsidy, which is up to 50% of its qualified capital cost, from the Japanese government.

In a statement on Monday, the conglomerate said the biogas project of METPower Venture Partners Holdings, Inc. in South Cotabato was recognized as a joint crediting mechanism (JCM) model project by Japan’s Ministry of the Environment, a first of its kind in the country, which is expected to meet both countries’ greenhouse gas (GHG) emission reduction targets.

In November 2018, the two companies entered into a deal to put up two biogas facilities for Dole Philippines’ canneries which would process organic fruit waste and harness biogas to produce 5.7 megawatt-equivalent of clean renewable energy.

The facilities are said to reduce GHG emissions by approximately 50,000 tons of carbon dioxide equivalent per year from fossil fuel substitutes.

“With this JCM Model Project recognition, we have further validation of the considerable environmental benefit our biogas plants bring in curbing the greenhouse effect and capturing methane emissions for alternative fuel use,” METPower Chief Executive Officer Karim C. Garcia said.

Japan through the project is promoting advanced low-carbon technologies, systems, and infrastructures meant to reduce GHG emissions. It implements the program under bilateral cooperation with partner countries.

METPower expects further cash distributions from Japan’s Environment Ministry to arrive in 2021.

The MPIC unit’s construction of the biogas facilities was affected by delays caused by the coronavirus disease 2019 (COVID-19) pandemic. It expects the facilities to start running in the first half of 2021.

Further, the company is also developing new projects, such as a carbon dioxide recovery and organic fertilizer distribution facility.

MPIC is one of the three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang