BusinessMirror May 19, 2020

SAP, part 2, to cover 17M poor families–DSWD

A

BOUT 17 million poor families are expected to benefit from the second tranche of the Social Amelioration Program (SAP) of the Department of Social Welfare and Development (DSWD).

This is lower compared to 18,046,093 poor families who benefited from the first round of SAP implementation, which started in April and ended earlier this month.

In his online press briefing on Monday, Presidential Spokesperson Harry Roque quoted the DSWD as saying the bulk or 12 million of the SAP beneficiaries will come from the areas still under enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ).

Currently, only Cebu City and Mandaue City remain under ECQ, while those declared under MECQ include the National Capital Region; municipality of Pateros;

WEARING a face mask that reflects her current disposition, a factory worker at CCE All About Shoes in Marikina City says she’s happy to be back at work, two months after the factory temporarily closed due to the coronavirus pandemic. The company provides shuttle service for its workers, and advises them to wear a face mask and observe physical distancing. NONIE REYES

ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year

SAP is a P200-billion government program that provides a cash aid ranging between P5,000 and P8,000, for poor families nationwide. as well as the provinces of Bulacan; Nueva Ecija; Pampanga; Zambales and Laguna; and Angeles City.

The remaining 4.9 million beneficiaries in the second tranche of SAP implementation are the so-called left-out beneficiaries who were not included in the first tranche of the SAP distribution but were

qualified for aid.

The DSWD is still waiting for Malacañang’s approval before it could implement the second tranche of SAP. SAP is a P200-billion government program that provides a cash aid ranging between P5,000 and P8,000, for poor families nationwide.

Last week Roque said President Duterte is considering requesting an additional budget from the Department of Budget and Management (DBM) for the second tranche of SAP, which at that time was expected to cover 23 million beneficiaries.

Aside from SAP, Roque also reported that 1.3 million people affected by Covid-19 lockdowns benefited from the programs of the Department of Labor and Employment and the Department of Agriculture.

Samuel P. Medenilla

BusinessMirror A broader look at today’s business

EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR (2017, 2018)

DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS

PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

DOLE ADVICE TO TWEAK WAGES ‘DOUBLE-EDGED’ www.businessmirror.com.ph

n

Tuesday, May 19, 2020 Vol. 15 No. 222

P25.00 nationwide | 2 sections 16 pages | 7 DAYS A WEEK

I.C. DEFERS IFRS 17 IMPLEMENTATION ON VIRUS’S IMPACT

G

A TRAM service ferries employees at the Mall of Asia in Pasay City on Monday. Under the modified quarantine rules, to allow the public to access essential goods and other items, nonleisure malls may reopen with 50 percent of their workforce. NONIE REYES

T

By Samuel P. Medenilla

HE Department of Labor and Employment (DOLE) on Monday urged companies to consider a temporary adjustment of wages and employment benefits as a job preservation option during the novel coronavirus disease (Covid-19) pandemic.

The recommendation, however, drew mixed reactions from labor groups, some of whom worried it could lead to rampant abuse of labor rights.

On Monday, the DOLE re-

leased Labor Advisory (LA) No. 17 containing its guidelines on employment preservation during the Covid-19 crisis.

Among its salient provisions was advising employers and work-

ers to adjust “wage and wage-related benefits” stipulated by their other collective bargaining agreement (CBA), employment contract and company policy.

The adjustment must be voluntary for both parties and should not exceed six months or the period agreed upon in the CBA. “After such period, employers and employees shall review their agreement and may renew the same,” Labor and Employment Secretary Silvestre H. Bello III said in the two-paged LA 17.

Available option

PARTIDO Manggagawa chairman Renato Magtubo welcomed the additional option to help companies and workers cope with the business

disruptions caused by the Covidrelated community quarantines.

He, however, noted that workers would unlikely agree to any pay cut now, especially since they have also been badly hit by the Covid-19 crisis lockdowns that paralyzed most business operations.

Meanwhile, the Trade Union Congress of the Philippines (TUCP) said it will defer commenting on the matter until it gets feedback from its members.

“We have submitted this advisory to our regional offices for feedback. Maybe tomorrow [May 19] we will already have their reactions,” TUCP Spokesperson Alan Tanjusay told the BusinessMirror in an SMS.

By Bernadette D. Nicolas

IVEN the impact of the Covid-19 pandemic, the Insurance Commission (IC) further deferred the implementation of the International Financial Reporting Standards (IFRS) 17, two years after its effective date as decided by the International Accounting Standards Board (IASB).

With the IASB deferring the effective date of IFRS 17 to 2023, IC Deputy Commissioner Ferdinand George Florendo told the BusinessMirror that they are now looking to implement the new accounting standards “as early as 2025” unless the IASB defers the effective date of implementation once more.

Despite the IASB mandate, “insurance companies may opt to and are not prohibited” from implementing the IFRS 17 on the schedule set by the IASB i.e.

2023, Florendo said.

Moreover, Florendo said those who will implement the new accounting standards following the IC schedule—which could be as early as 2025—will have to provide the Securities and Exchange Commission Notes to their Financial Statements showing the impact of IFRS 17 had they implemented on the original schedule and other disclosures as required in the earlier IC circulars on IFRS 17.

The IFRS is a set of accounting standards recognized by at least 166 countries, including the Philippines, and provides a guide on how particular types of transactions and other events should be reported in the financial statements.

The new system supersedes IFRS 4 Insurance Contracts, which sets principles for the recognition, measurement, presentation and disclosure of insurance contracts issued.

The IFRS 17 is expected to help the insurance industry comply with global standards, although compliance would require substantial investments in accounting systems, among others.

In a circular letter to all insurance and professional reinsurance companies authorized to do business in the country, IC said it “recognizes that the insurance industry will realign its priority programs and focus on modifying its business operations under a ‘new normal.’”

The commission said it saw the need to support the insurance industry and further defer IFRS implementation, “and delaying its full implementation for the industry two years after the IASB implemented it,” read the Circular Letter No. 2020-62 dated May 18 signed by IC Commissioner Dennis B. Funa.

In March the IASB decided to further defer the effective date of IFRS 17 standard to annual reporting periods beginning on or after 1 January 2023.

In the same circular letter, the IC said the financial performance of insurance companies was affected by the economic impact of the health crisis as well as the restricted business operations from the extended quarantine.

“With the challenges brought by the pandemic, the insurance sector will likewise have to deal with the implementation of IFRS 17, which requires substantial investments in accounting systems, IT-related infrastructure and capacity building

See “IC,” A2

See “DOLE,” A2

PHL, 7th-largest ADB borrower, has loans of $10.2B ADB President Masatsugu ASAKAWA: “We will build on these achievements to ensure we remain relevant and responsive to our members’ needs as they take action to combat and recover from the Covid-19 pandemic.” ADB

By Cai U. Ordinario

T

HE Philippines is still one of the largest borrowers of the Asian Development Bank (ADB), according to the Manilabased multilateral development bank’s 2019 annual report.

The country’s total loans as

PESO EXCHANGE RATES n US 50.5880

of 2019 reached $10.2 billion, a 23.32-percent increase from the $8.27 billion posted in 2018, the report said. This has placed the country as the 7th largest borrower of the ADB and the third largest borrower in Southeast Asia.

The top borrower for 2019 was India with $27.624 billion, followed

by China with $27.179 billion. In Southeast Asia, Indonesia emerged as the top ADB borrower in the region with $13.82 billion, followed by Vietnam with $12.246 billion.

In the past decade, the growth of the country’s loans from ADB has been significant. In 2010, Continued on A4

TRAFFIC is backed up at the South Luzon Expressway approaching Filinvest in Alabang, Muntinlupa City, as the country resumes economic activity with the easing of quarantine restrictions in the National Capital Region. ROY DOMINGO

n JAPAN 0.4722 n UK 61.1356 n HK 6.5269 n CHINA 7.1239 n SINGAPORE 35.4580 n AUSTRALIA 32.4370 n EU 54.7210 n SAUDI ARABIA 13.4704

Source: BSP (May 18, 2020)

News BusinessMirror

A2 Tuesday, May 19, 2020

www.businessmirror.com.ph

Cusi prods oil firms on refined petroleum stockpile; prices rise E

By Lenie Lectura

NERGY Secretary Alfonso Cusi wants to finalize at the earliest possible date a plan for the country to stockpile refined petroleum products.

“I want it soonest, kung pwede matapos na iyan [if possible, to complete it] before the year ends. Let’s see,” said Cusi. “Stockpile is still a priority project.”

He said the Department of Energy (DOE) and the Philippine National Oil Company (PNOC)

ABS-CBN pushes TRO bid, says PA may take long Continued from A8

“If you look at the profits of our giant networks, the 10 percent will not affect their bottom line, will not affect their stock market prices, will not affect severely their income but it will give a great advantage to the government to be able to communicate with our people directly,” he added.

The same “public-service time” provision was also included in the franchise laws of GMA Network Inc. and TV 5 Network Inc.

For his part, House Committee on Constitutional Amendments Chairman Rufus Rodriguez said the concept of the equal protection of the law has to be equally applied to those similarly situated.

“There will be an issue of unequal protection of the laws; many of the franchises are not required to give 10-percent public-service time,” he said.

“I’d rather that we amend the existing franchises and put it in rather than take this out because this is favorable to the government,” he said.

are finalizing the plan, which was hatched four years ago. “We just had a board meeting with PNOC and this was the subject of our discussions, together with the OIMB [Oil Industry Management Bureau]. They are finalizing it already.

We will make an announcement in

due time,” said the energy chief.

He declined to provide details, saying “a lot of variables” are involved in crafting the policy.

“There’s a lot of issues that’s why it takes time. It’s not as simple as putting oil in the container and keeping it. There’s a lot of variables.”

Cusi stressed the need for the country to have petroleum reserves in case of a supply problem in the future.

The proposed oil stockpile of the country was raised after last year’s drone attack on oil installations inside Saudi Arabia. The incident triggered market jitters on supply as production was suspended.

Following the attacks, the

DOE ordered the PNOC in December last year to conduct a feasibility study on the planned oil-stockpile program.

“We want what is best for our country’s energy security. Tuloy-tuloy iyang plano dahil kailangan natin iyan [The plan continues because we need that] for energy security,” stressed Cusi.

Laban Konsyumer Inc. president Victor Dimagiba stressed the importance for oil firms to comply with the minimum inventory requirement, which is 30 days for crude oil, 15 days for finished products and seven days for LPG (liquefied petroleum gas).

“The inventory should cushion

the country against supply distortion that may impact on the ability of the country to replenish import volume,” Dimagiba said when sought for comment.

Oil price hike

OIL companies, meanwhile, announced on Monday another oilprice hike for the week.

In separate advisories, they said gasoline prices will go up by P1.25 per liter, diesel by P0.55 per liter and kerosene by P2.35 per liter.

The upward adjustment, which takes effect 6 am of May 19, is the third this month for gasoline and second for diesel.

ANTI-COVID SUPPLIES OVERPRICED? PROBE SET S ENATORS set the stage for an upcoming Senate inquiry into the government’s multimillionpeso purchase of anti-Covid medical supplies amid reports some may be overpriced.

“Is it ‘steal as one’ in the procurement of anti-Covid supplies?” asked Sen. Francis Pangilinan on Monday, in a play on the “Heal As One” slogan of the government’s Bayanihan Act that vested spending authority in the Executive to respond to the Covid-19 pandemic.

Pangilinan said the allegation of possible overpricing is a serious matter that “should be investigated” by

lawmakers in aid of crafting remedial legislation.

Earlier, President Duterte had warned officials he would brook no corruption in the implementation of Covid-related measures, amid complaints that emergency cash aid was not being properly distributed to beneficiaries.

Pangilinan recalled Sen. Panfilo Lacson lamenting on Sunday that multibillion pesos in taxpayers’ money “may have lined the pockets of corrupt public officials” behind the procurement of allegedly overpriced personal protective equipment (PPE) for health workers caring for Covid-19 patients and swabbing supplies used in the

polymerase chain reaction (PCR) tests for suspected new coronavirus carriers.

The chief implementer of the country’s Covid response, Carlito Galvez, had cautioned critics in a press briefing, however, against quickly concluding that the cheaper PPEs indicate there is an “overprice” in the more pricey ones. He said PPEs are very important means for ensuring the safety of health workers, and cheap PPEs—such as those supposedly priced only at P400 each—could jeopardize the workers’ health.

For his part, Pangilinan indicated senators are keen to ascertain how the anomaly was perpetrated in order

to craft remedial legislation and plug loopholes in the acquisition process.

“Gusto rin nating malaman ang katotohanan tungkol dito. ‘Steal as one’ ba ang nangyayari sa pagbili ng mga [We want to know the truth here. Was there ‘Steal as one’ in the purchase of] antiCovid medical supplies?” the senator wanted to know.

Pangilinan noted, for instance, that “by jacking up prices of supplies such as swab kits and personal protective equipment, we get less units than what is needed, depriving the people and medical frontliners of the defenses they need to fight Covid-19.”

Butch Fernandez

ARTISTS paint an image of Darna, a fictional Filipino comics superhero, wearing a protective mask and scrub suit to honor health workers in their fight against the new coronavirus, on a building in Manila, May 18, 2020. AP/AARON FAVILA

Continued from A1

Employers Confederation of the Philippines (Ecop) chairman Sergio Ortiz-Luis Jr. told the BusinessMirror in a phone interview they are not against the new DOLE issuance as long as it is voluntary.

“I think if the intention would be for the employer to rehire more workers, then it is okay,” Ortiz-Luiz said.

The business leader, however, said only a few of its members that comprise small, medium and large companies would bother exercising the renegotiation since they could afford the benefits being enjoyed by their employees even during the Covid crisis.

Objectionable proposal

THE Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) rejected the option outright, saying it could be abused by unscrupulous employers to needlessly cut down labor benefits.

Sentro Secretary General Joshua Mata said employers could merely threaten their workers with possible establishment closure or retrenchment to coerce them to agree to lower benefits.

“In effect, it is a blank check for employers, especially those that are unorganized, to pay their workers below the minimum wage,” Mata said.

“There is nothing in the labor advisory which says that the agreed wage adjustment must not fall below the minimum wage,” he noted.

Nagkaisa labor coalition chairman and Federation of Free Workers (FFW) President Sonny Matula raised the same concern, saying it could even lead to more labor disputes.

“If the adjustment is favorable to the workers, we have no problem. But if it would be a diminution of benefits, that would be legally problematic,” Matula told the BusinessMirror in an SMS.

Nagkaisa called on Bello to rescind the order, which it claimed could shortchange workers of their hard-earned benefits.

“We already sent a letter to Secretary Bello this morning [May 18]. We will bring the matter to his attention,” Matula said.

IC…

Continued from A1

Livelihood in peril

IN its petition to the NTC, the broadcast company reiterated that the NTC order endangers the livelihood of its 11,000 employees and their families and the CDO has significantly reduced the company’s income as well as its affiliates.

The shutdown, according to ABSCBN, also resulted in reduced tax revenues for the government, noting that it paid up to P70.5 billion between 2003 and 2020.

ABS-CBN also said the order deprives the public of leading source of news and entertainment, impairing their right to information.

In a petition for certiorari and prohibition with urgent application for the issuance of a TRO and/or a writ of preliminary injunction, the network said the CDO should be set aside as it violates the right of the public to information.

It cited a survey conducted by Kantar which said that from January to March 14, 2020, the network reached 99 percent of households in the Philippines while a survey by Pulse Asia showed that more than 70 percent of all Filipinos tuned in to the network in 2019.

The shutdown, according to the petitioner, has also affected its capacity to ask for donations for relief nationwide, noting that it raised more than P237 million as response against coronavirus disease 2019.

It also argued that the CDO is tantamount to curtailment of freedom of speech guaranteed under the Constitution.

ABS-CBN said the NTC should have allowed the company to continue its operation pending Congress’s resolution on its application to renew its franchise.

It noted that the NTC had previously allowed other companies to continue to operate pending renewal of their franchise, thus, violated the company’s right to equal protection of the law.

Likewise, ABS-CBN accused NTC of violating its right to due process when it issued the CDO without notice and hearing.

ABS-CBN also argued that the NTC is bound to heed the legal opinion issued by the DOJ that it is entitled to a PA pending Congress’s action on its application for the renewal of its franchise.

DOLE…

of human resources in order to meet the technical requirements needed to implement the said standard,” it said.

Thanks to regulators

Tech-driven sanitation key part of the ‘new normal’ in hotels Continued from A8

If we can do this, guests will be much safer, for example, [we have to implement] social distancing, wearing of masks, and frequent washing, before and after touching the face, sanitizing the hotel and public areas.”

He said his properties are now using “hospital-grade cleaning” with the adoption of UVC light equipment. “Anything in the public area, with human touch should always be cleaned. Door knobs, which are now handles, tables are sanitized before and after guests sit to dine. Arrangement of furniture will be different, with restaurants to operate at half or 60-percent capacity with table space at 2 meters apart.”

Famous for its extensive breakfast buffet service, Henann waitstaff will now be handing out a “checklist” of buf-

fet food choices to guests, and the staff will retrieve the food from the kitchen.

“We will minimize people in the swimming pool, at 50 percent of capacity for guests to keep a safe distance. We will also check chlorine levels regularly, and ensure it is enough to kill the virus,” said Chusuey. Its vans which pick up guests from the airport to bring to the resort will now just seat about 6 instead of 10 persons. Guests will also be given the option to bring their own luggage to their room.

“With these [measures], guests will feel safe. If not, guests will not go to your resort.… There will be no contact as much as possible [between staff and guests],” he stressed. The Henann Group has six resorts in Boracay, and one resort in Panglao Island, Bohol, totaling over 1,500 rooms.

Manila Marriott Hotel, which has remained open as it services frontliners, employees from the business-process outsourcing industry, and other essential staff, will continue to implement touchless services to attract new visitors as Metro Manila and other parts of the country move into the less stringent quarantine regulations.

Bruce Winton, cluster general manager of Marriott International, said in a recent Asia CEO Forum titled PostCovid 19: Is Normal Realistic?, “We’re definitely accelerating the use of technology from mobile, you know, guests can make digital payments. He’s using [his] cellphone to enter his room.”

He added, “We’re just preparing our facilities to restart and open to the general public and you know, you can expect the highest levels of atten-

tion to detail—on safety, sanitation, and personalization—with perhaps a few less touch points along the way.”

He noted that compared to other countries which rely heavily on international tourists, the Philippine hotel industry has domestic travelers who can help lift their establishments.

“We are blessed with a robust domestic tourism market so you know…despite the double-digit growth over the last 10 years, almost 85 percent of the tourists and the economy is domestically driven. So the sooner we can start domestic travel and give people that sense of confidence…I think we’ll see the traction start to take place.”

In 2018 Filipinos took 110 million domestic trips, contributing P3.2 trillion in expenditures to the local economy.

SOUGHT for comment, Philippine Insurers and Reinsurers Association (PIRA) Executive Director Michael Rellosa thanked the IC for the further deferment.

“We were going to ask for a deferment and the IC read our minds. We thank the regulators for this,” Rellosa said in a text message to the BusinessMirror.

“This is very important as it will give us time to recover from the effects of Covid. Too many pressures may kill the goose that lays the egg,” he added.

Philippine Life Insurance Association (PLIA) President Benedict C. Sison also hailed the development.

“The shift to IFRS17 demands significant adjustments in the organizational structure, operational processes and technical capacity of insurance companies. The greater breadth of data collection requirements and complexity in calculations alone would generally require substantial investments either in system modifications or acquisition of new systems altogether,” Sison told the BusinessMirror.

With this extension, he added, insurance companies can use financial resources, “that would have otherwise been allotted for the implementation of the transition to IFRS, to implement other client servicing or income-generating programs instead. It also frees up a lot of human effort, which would allow companies to focus more time on the current and evolving requirements of the business.”

In 2018 the IC first deferred the implementation of IFRS 17 to January 1, 2023, an additional one-year period from the date of effectivity set by IASB. This was a pushback from the original January 2021 timeline proposed by the IASB.

The IC said back then IFRS 17’s implementation was fraught with challenges—a tight timeline, determination of model, lack of clarity, resources and expertise, tight budget, report and disclosure, and lack of IT infrastructure.

The Nation BusinessMirror

www.businessmirror.com.ph

‘Ambo’ delays test for OFWs on ships moored at Manila Bay

By Recto Mercene @rectomercene

T

YPHOON Ambo drove away 22 cruise ships out of their mooring spots near the Philippine Navy Shipyard in Cavite to deeper anchorage in Mariveles, Bataan, delaying further the Covid-19 tests that had been ongoing since their arrival in April.

Although the Philippine Coast Guard (PCG) has reported that majority of the 8,000 overseas Filipino workers (OFWs) quarantined onboard these ships have tested negative of the deadly virus, “they were unable to go ashore last weekend because the big waves from Typhoon Ambo forced the ships to leave Manila Bay to prevent any mishaps among the ships.”

“The PCG was in the process of taking the seafarers to South Harbor aboard tenders last Friday but the Signal No. 2 in Metro Manila from Typhoon Ambo stopped their evacuation efforts,” according to local manning agencies.

Fearing that the shallow harbor wouldposedangertoshipswhenstrong gust from the typhoon whip up the bay, “the ship captains ordered the 20 cruise ships to lift anchors and headed out to the deeper waters off the coasts of Mariveles, Bataan, near Corregidor.”

Typhoon Ambo occurred just when the seafarers were undergoing mass testing by the Bureau of Quarantine (BOQ) and the PCG for the Covid-19 reverse transcription–polymerase chain reaction (RT-PCR) test. It is administered by boarding the ships and testing each Filipino crew member.

The manning agents said the cruise ships will return to the bay once the typhoon passes “and hopefully, the repatriation effort will be able to proceed without any interruptions.”

According to the PCG more than 7,100 seafarers have been tested negative and all were set to go home to their cities and provinces. The Department of Transportation (DOTr) will provide the sea transportation for those going to the Visayas or Mindanao.

All seafarers who tested negative are to receive an “all clear” certificate from the Philippine Red Cross so that they need not undergo another 14day quarantine in their hometowns.

Meanwhile, the manning agencies and the recruitment sectors are urging the PCG and BOQ to speed up the transmittal of Covid-19 tests results to seafarers who are quarantined in hotels.

“This is to avoid any more OFWs from leaving quarantine facilities who tried to escape due to their lengthy stay of more than two weeks at their facilities,” said recruitment consultant Manny Geslani.

The PCG on Sunday said some OFWs who escaped from their quarantine facilities without waiting for the test results were later found to be positive for the coronavirus.

PCG spokesman Commodore Armand Balilo said on television that the OFWs “escaped from hotels and could be with their families already.”

“This could have been avoided if the Coast Guard and Bureau of

Quarantine monitor the quarantine facilities and speed up tests results,” Geslani said.

“The OFWs who arrived in April had to endure the 14-day quarantine and the swab test recently ordered by the Inter-Agency Task Force [IATF] that further delayed their departure from the facilities to return home.”

He added that the OFWs who arrived in April “continued to stay in quarantine facilities and this has prevented the earlier arrival of 30,000 seafarers from all parts of the world aboard chartered flights.”

This was exacerbated by the limitation imposed by the Civil Aviation Authority of the Philippines, limiting the number of repatriates to 400 per day, or 2,800 OFWs each week.

The matter was forwarded to Foreign Affairs Secretary Teodoro Locsin Jr., who said the IATF should reconsider its cap on returning OFW at the premier airport.

‘Retrieved’

MEANWHILE, an OFW tested positive for the novel coronavirus but who has left a quarantine facility has been located and turned over to a treatment facility, the Philippine Coast Guard said on Monday.

The patient, a 49-year-old male, who is from Quezon City, were among the eight OFWs who were reported to have left their designated quarantine facilities while waiting for the results of their Covid-19 tests.

“Immediately, the Sub-Task Group for the Repatriation of OFWs conducted a search operation and yesterday, 17 May 2020, he was immediately brought to a Covid-19 treatment facility,” the Coast Guard said in a news statement.

“His family members and other persons he had personal contact with, on the other hand, were put in isolation and are now undergoing Covid-19 RT-PCR testing,” it added.

The Coast Guard said that the eight OFWs have left their quarantine facilities prior to their receipt of their swab test results.

“The search operations for the seven other OFWs are ongoing.

They shall be arrested and shall face charges for violating quarantine protocols and for compromising the health and safety of their families and communities,” Commodore Armando Balilo said.

“The PCG appeals for public cooperation and understanding, especially from OFWs and their families, as the stringent protocols for repatriated OFWs are intended to promote public health and safely amid Covid-19 pandemic,” he added.

Meanwhile, the Joint Task Force Covid Shield has urged the public to exercise self-restraint amid temptation to go out of their houses with the partial reopening of some malls and other business establishments.

JTF Covid Shield commander Lt. Gen. Guillermo Eleazar made the appeal following reports that some people are taking advantage of the government’s decision to ease some restrictions on quarantine rules that include opening of business establishments like malls. With Rene Acosta

DFA asks: Who contacted who?

T

HE Department of Foreign Affairs (DFA) has dismissed the claim of a netizen identified as a certain Josef Leroi Garcia, reportedly a Quezon City resident and a consultant at the office of detained Sen. Leila de Lima, that her niece, Carmela Buan-Laxina, has been contacted by the Sydney Consulate in Australia.

News reports earlier said BuanLaxina allegedly sought in her Facebook post the help of Abu Sayyaf Group (ASG) bandits to “kill” President Duterte.

Garcia, in his Facebook account, said his niece, Buan-Laxina, reportedly a previous resident of Macabebe, Pampanga, who migrated to Australia, has been “attacked by

DDS [diehard Duterte supporters] trolls for her post against Duterte.”

“Any call that may have been received by his niece was not made by anyone connected with the Philippine Foreign Service Posts in Australia.”

The statement added: “It bears stressing that the allegations against the department remain unsubstantiated, as no name, date and time, or phone number relating to the purported communication have been provided or corroborated.”

“The department appeals for sobriety and verity in this time of global pandemic where accurate and reliable information are essential to the welfare and well-being of every person,” the statement said.

Editor: Vittorio V. Vitug • Tuesday, May 19, 2020 A3

18,355 PDLs freed from jails to curb coronavirus spread

By Joel R. San Juan

A

@jrsanjuan1573

TOTAL of 18,355 persons deprived of liberty (PDLs) have been released during the two-month enhanced community quarantine (ECQ) implemented by the government to curb Covid-19 outbreaks in prisons.

Data obtained from the Supreme Court’s Office of the Court Administrator (OCA) showed that the more than 18,000 PDLs were released, either through bail or recognizance between March 17 and May 15.

Court Administrator Jose Midas Marquez also emphasized that “many of the PDLs were released from the lock up cells of the Philippine National Police [PNP] because at the start of the ECQ, many Bureau of Jail Management and Penology [BJMP] facilities did not accept the new PDLs anymore for fear that they may infect the inmates inside the BJMP.” There were also a number of them who were released from the BJMP and the provincial jails, either on reduced bail or self-recog-

nizance, or after already serving the minimum imposable penalty for the crime they were charged.

Among those who were either charged with crimes punishable under the Revised Penal Code, or special penal laws, while a few, under local ordinances.

There were also a few minors or Children in Conflict with the Law, who were released to their parents during the ECQ period.

It c a n be rec a l led t h at last March 20, Chief Justice Diosdado Peralta ordered all courts nationwide to be physically closed to all court users due to continued increase in the number of persons infected with Covid-19.

Justices, judges and court personnel were told to work from home and advised the public to use court hot lines and e-mails for their concerns.

“We did not stop there. We immediately gave 1,000 of our busiest courts the facility to conduct videoconferencing hearings, again focusing on the concerns of the PDLs. And in two weeks, almost 800 videoconferencing hearings of PDLs were conducted nationwide. And this is the

result—more than 18,000 PDLs released,” Marquez said.

The SC had earlier issued Administrative Circular 38-2020, which reduces bail and allow recognizance for indigent PDLs charged with minor crimes, or facing charges punishable by imprisonment not exceeding six months as part of its measures to decongest crowded jails and prison facilities and stop the spread of Covid-19.

In its Administrative Circular 38-2020 addressed to all justices, judges, prosecutors, public attorneys and members of the SC, Peralta said more PDLs are expected to be released with this latest initiative.

Other initiatives aimed at facilitating and expediting the release of PDLs include Administrative Circular 33-2020, supplemented

by OCA Circular 89-2020, which allowed the electronic filing of information and transmission of release orders; OCA Circular 912020, which reiterated the guidelines on the release of qualified PDLs through self-recognizance and provisional dismissal; and Administrative Circular 37-2020 on the pilot testing of videocon-

ference hearings of urgent matters in criminal cases involving PDLs. Based on the circular, videoconferencing hearing will include all stages of trial of newly filed and pending criminal cases, including arraignment, pre-trial, bail hearings, trial proper and promulgation of judgment, as well as incidents related to the case provided they pertain to urgent matters in criminal cases involving PDLs who are detained in BJMP facilities, provincial jails, custodial centers, as well as those in police precincts or lock up jails awaiting their commitment to the proper jail facilities.

Peralta had said: “It must be remembered that they have not yet been convicted. They are still innocent. And yet they are highly at risk of being infected by the deadly virus. It’s already like imposing the death penalty on them even before their guilt can be established beyond reasonable doubt.”

With more areas downgraded to general community quarantine, Marquez said they expect more PDLs to be released in the coming days as more courts are expected to reopen.

Go: Prioritize stranded Pinoys as first phase NCRPO chief Sinas of ‘Balik Probinsya’ program gains headway keeps post–Gamboa

A

S the initial phase of the Balik Probinsya, Bagong Pag-asa (BP2) Program commences, Sen. Christopher Lawrence “Bong” Go reminded the government to immediately help all stranded individuals and families in Metro Manila and other urban centers and safeguard their welfare and well-being amid the Covid-19 situation.

“Marami po sa ating mga kababayan mula probinsya at nagpunta rito sa Metro Manila ang nais na ngayong umuwi. Tulungan po natin silang makabalik lahat sa tulong nitong BP2 program at iba pang inisyatibo ng gobyerno,” Go said.

“Nadala na po sila sa Metro Manila. Takot sila dahil sa virus at nais na nilang makauwi sa kanila. Siguraduhin po natin na makababalik sila ng kanilang probinsya na ligtas,” he added.

Among those who are included in the first batch of individuals who will be assisted to return to their provinces under BP2 program include 112 persons bound for Leyte. The first batch is part of the immediate-phase implementation of the BP2 program, according to National Housing Authority General Manager and BP2 Program Council Executive Director Marcelino Escalada Jr. The first batch is scheduled to leave early this week.

“Our target is 100 to 300 leaving for the provinces depending upon the capacity of the local government units to undertake health protocols,” Escalada added.

Based on an update relayed by Escalada, transportation needs will be provided, or facilitated, by the Department of Transportation while cash allowances will be extended to them by the Department of Social Welfare and Development.

A dispatch protocol will also be prepared by the Department of Health (DOH) to ensure that strict Covid-19 precautionary measures are followed during their return. All and succeeding returnees will be subjected to reverse transcription–polymerase chain reaction (RTPCR) test by the DOH. According to Escalada, NHA is preparing a dispatch site for the returnees.

For the initial batch, NHA is utilizing its property near Vertis North in Quezon City where a temporary terminal will be installed. The Department of the Interior and Local Government will link up with the target local government units (LGUs) to receive them and ensure that their other needs are met. All concerned government agencies will extend other needed assistance to the returnees upon arrival in the province based on their profile and assessment.

Returnees to Leyte are prioritized since the province has registered the highest number of individuals who signified readiness to return at 2,300 persons. Once they have been successfully brought back to Leyte, the program will have simultaneous trips to provinces throughout Luzon, the Visayas and Mindanao.

Meanwhile, 55 individuals in Cebu are also expected to return to Davao City by next

week too under BP2 program. These include 18 students, 21 persons with disability, 2 senior citizens, a pregnant woman, and 13 other individuals.

They have been tested by DOH for Covid-19 and will be given food by DSWD while they wait for their departure schedule.

The Office of Senator Bong Go has also assisted in coordinating with appropriate agencies regarding identification of beneficiaries, and provision of the needs of the returnees, such as food and transportation. The issuance of the clearance in their port of destination was also facilitated.

As the BP2 program assists more and more Filipinos going back to their provinces, Go emphasized that the whole country should learn from the experiences encountered during the Covid-19 crisis, particularly the difficulties in controlling the spread of the disease and the challenges of delivering government services in overpopulated urban centers.

“Sa Bisaya, natagam, o nadala na tayo. Let this be a learning experience for us all,” Go said, emphasizing the need to provide long-term solutions to better address various social, economic and health issues in the future.

According to Go, these affected individuals only wanted to seek better opportunities in Metro Manila. Some are students from the provinces who wanted to take their education in big cities. Because of the stringent travel restrictions under the enhanced community quarantine, these people were cut off from their families for two months now.

“We have to act now. Marami nang gustong umuwi pagkatapos ng naranasan nila dahil sa Covid-19. Kaya inilunsad ang programang ito ngayon para matulungan sila ng gobyerno at mabigyan sila ng mas maayos na buhay kung pipiliin nilang bumalik sa kanilang mga probinsya,” he said, stressing that it is an opportune time to implement the BP2 program now given the adverse socioeconomic impact of the Covid-19 crisis on the lives of all Filipinos.

Go emphasized that the initiative should be seen as a long term, holistic program to address perennial problems in both urban and rural areas and not simply just as an immediate response to the crisis.

“Hindi po natin basta ililipat lang ang mga tao from urban to rural areas. Wala po itong pilitan. Sinisiguro ng gobyerno na magiging maayos ang kabuhayan ng mga taong lilipat.

Kaya po nagtayo ng inter-agency council. Para masigurong lahat ng aspeto ng buhay ng mga Pilipino ay mapaghandaan,” he explained.

“Sa short term, nais po ng programang ito na tulungan bumangon muli ang kabuhayan ng mga gusto na bumalik sa kanilang probinsya. Sa mid- to long-term phase naman, holistic ang approach pagdating sa pagsasaayos ng mga essential public services sa iba’t ibang parte ng bansa, tulad ng education, housing, livelihood and health. Kasama rito ang pagpapalago ng ekonomiya sa mga probinsya,” he added.

By Rene Acosta

N

@reneacostaBM

ATIONAL Capital Region Police Office (NCRPO) chief Maj. Gen. Debold Sinas will remain in his post despite the filing of criminal and administrative charges against him and 18 other policemen over the alleged violation of quarantine protocols during the senior police official’s birthday.

Philippine National Police (PNP) chief Gen. Archie Gamboa said Sinas has a lot of programs in relation to the novel coronavirus, which has put Metro Manila on a lockdown, and this makes it hard for the leadership to replace him.

“I hope the public would understand because we are in, we have an emergency situation. If you will replace him, we will never know. It is hard to replace him because he has lots of programs,” Gamboa told ABS-CBN’s Teleradyo program.

“It is him [Sinas] who established the first quarantines,” he added, saying there is a need for Sinas as NCRPO chief to continue his programs.

Sinas had been criticized for hosting his birthday party inside the compound of the NCRPO at Camp Bagong Diwa, which he claimed was organized for him by his subordinate officers and was attended by a number of police officials and even civilians.

The gathering, supposedly prohibited under a quarantine regime, was held while Metro Manila is under the enhanced community quarantine because of the Covid-19. The quarantine is principally being implemented by the police.

Last week, the PNP Internal Affairs Service filed criminal charges against Sinas and 18 other officers, including at least four officials with the rank of a brigadier general before the prosecutor’s office in Taguig City over alleged violation of quarantine protocols.

The unit also filed administrative charges against Sinas and the other officers before the PNP. Relatedly, the police regional office-6 (PRO-6) filed criminal and administrative charges against three policemen for violating the liquor ban amid the lockdown in the Visayas.

PRO-6 Director Brig. Gen. Rene Pamuspusan also relieved the three policemen identified as Staff Sgt. Roy B. Panaquiton, Cpl. Arnie N. Luminario and Staff Sergeant Paul A. Pingoy of their posts.

“PRO-6 condemns the offense of the three police officers who were found to have violated the liquor ban after having been apprehended at a QCP [quarantine control point] in Pandan, Antique and Sta. Barbara and Passi QCPs, both in Iloilo province, while transporting boxes of liquors in separate occasions,” the regional police said in a news statement.

On the other hand, Pamuspusan commended the courage and discipline of the PNP personnel manning the checkpoints for immediately effecting arrest against the offenders and for confiscating the contraband, it added.

Meanwhile, Camp Crame has activated the PNP Recruitment and Selection Service (PRS) as the police’s new primary unit for the management of recruitment and selection process for patrol officer, lateral entry for technical and line officers, and the cadetship program of the Philippine National Police Academy.

Gamboa led the activation of the new unit along with the Command Group on Monday at Sandigan Hall, DPRM Annex Building at Camp Crame.

A4 Tuesday, May 19, 2020 • Editor: Vittorio V. Vitug

Economy BusinessMirror

www.businessmirror.com.ph

SB Corp. opens ₧1-billion ‘restart’ loans for MSMEs in GCQ areas

By Elijah Felice E. Rosales @alyasjah

M

ICRO, small and medium enterprises (MSMEs) based in general community quarantine (GCQ) areas may now apply for loan up to P500,000 from the government that they can use to restart their operations.

The Small Business (SB) Corp. on Monday announced it is now accepting applications for the Covid-19 Assistance to Restart Enterprises (CARES) program. MSMEs in GCQ areas may now go to the nearest office of the agency to check if they are

qualified for the loan package.

The CARES program is one of the state’s rescue efforts to help small firms recover from the ill effects of the coronavirus pandemic and the two month lockdown of Luzon.

The loan package has a funding of P1 billion and is facilitated by the SB Corp. MSMEs doing business for at least one year prior to the imposition of quarantine restrictions on March 16 and with assets not exceeding P15 million are eligible to borrow under the program.

Micro enterprises with asset size of no more than P3 million may borrow between P10,000 and P200,000,

while small enterprises with asset size of no more than P15 million may secure loan of up P500,000.

The loan shall be utilized to help the borrower stabilize operations, or recover income losses. It must be used for the purposes of updating loan amortizations for vehicle loans and other fixed asset loans of the business; replenishing inventory of perishable stocks damaged; or replacing working capital to restart operations.

Interest rate for the loan is set at 0.5 percent every month and a grace period of six months on principal payments shall apply.

MSMEs wanting to avail of the

DOJ to NPS: Speed up preliminary probe of 23 barangay execs linked to SAP distribution mess

By Joel R. San Juan @jrsanjuan1573

D

EPARTMENT of Justice (DOJ) Secretary Menardo Guevarra has directed the National Prosecution Service (NPS) to prioritize the preliminary investigation of the cases filed by the Philippine National Police (PNP) against 23 barangay officials allegedly involved in anomalous distribution of social amelioration program (SAP).

“I will direct our prosecutors

to give priority attention to the preliminary investigation of these criminal complaints,” said Guevarra.

Twelve criminal cases were filed against the 23 barangay officials on Monday before the DOJ. Interior Secretary Eduardo Año had said aside from the 12 criminal cases, they would be filing four more cases in the coming days.

He added that 110 barangay officials are also currently under “case buildup” due to complaints of graft and corrupt practices

against them.

He noted that most of the reported anomalies were committed by punong barangay, barangay kagawad, barangay treasurers, barangay secretaries, barangay employees, purok leaders and even social workers.

Cases for violation of Republic Act 3019, or the AntiGraft and Corrupt Practices Act and RA 11469 or the Bayanihan to Heal As One Act, were filed by the PNP-CIDG against the said barangay officials before the DOJ.

Procuring for life

A

By Henry J. Schumacher

S the rapid spread of the coronavirus, or Covid-19 pandemic, continues around the world with devastating effects, the growing crisis brings two issues into clear focus: the importance of government action in the emergency response and the essential and often lifesaving role of public procurement.

Clean public procurement not only saves money, but most important, it saves lives by making sure the people who are most vulnerable receive the support they need.

Yet, the ongoing global health crisis exposes vulnerabilities in public procurement: loose requirements that contribute to unequal competition and bidding wars and rushed measures that result in low quality, or faulty goods, price gouging, undue influence and limited access to information. But it exposes misbehavior of the private sector at the same time, taking advantage of the vulnerabilities of the public procurement.

For Covid-19, the World Bank already announced contributions of up to $160 billion over the next 15 months to strengthen developing country responses.

The International Monetary Fund (IMF) announced $1 trillion in funds to member-countries, which resulted in urgent calls for greater transparency from several nongovernment organizations.

Multilateral banks are not the only actors supporting a speedy recovery. Central banks, private companies, philanthropists, and other regional and international bodies are injecting trillions of dollars to overcome the global health crisis and put national economies back on their feet.

During a global pandemic, when such large sums of money are earmarked for the public procurement of critical services and supplies, clean contracting becomes even more essential in preventing against the misuse of public money.

As such, it can ensure that the highest quality health supplies and services are delivered where they are needed most. It also helps ensure that researchers continue working on innovative solutions to produce a vaccine with state-of-the-art technological equipment.

However, when every country in the world is scrambling to buy the same medical supplies in similar mass quantities, demand can outweigh global supply. This creates a situation where countries are competing with each other for scarce medical resources.

The scarcity of medical supplies also creates unnecessary competition among contracting authorities among countries and within countries, including between central purchasing authorities, national ministries, national agencies, regional governments, and publicly owned companies.

Instead of working together to procure supplies, states and provinces within a given country end up outbidding each other for the same masks, ventilators, or gloves. Suppliers also seize this opportunity to raise prices and negotiate commitments, sensing greater profits elsewhere.

This brings me to my serious concern what will happen once vaccines/medicines against the virus become suddenly available and need to be purchased and fairly distributed!

In my view, the Philippines will have to deal with this scenario already now. An interagency team with the involvement of the private sector (pharmaceutical industry, logistics experts and retailers) has to be formed to deal with these issues and see to it that the whole process is efficient. Bear in mind that refrigerated and frozen vaccines must maintain their optimal temperature values to preserve their potency throughout the national distribution process.

While a vaccine is a crucial part of the exit strategy, the world lacks a global system for managing distribution in a crisis.

It’s important a vaccine is available equitably and equally everywhere. That’s the reason such an inter-agency team is needed here so that the whole process is transparent, fair and done with integrity.

The detailed plan must be in place long before the first shipment arrives.

Let me have your feedback; e-mail me at Schumacher@ eitsc.com

loan under the CARES program may download an application form from the SB Corp.’s web site. The applicant should submit this form and requirements to the nearest SB Corp. office, or Negosyo Center in areas under GCQ. SB Corp. reminded applicants to wear face masks and practice social distancing when going to its offices in compliance with mandated safety protocols.

The BusinessMirror last week reported that local firms, including agriculture enterprises, lost at least P875.5 billion worth of revenue due to operations stoppage under the lockdown. A survey by the government’s economic

agencies reported that MSMEs and corporations lost a total of P767 billion in revenues, while agriculture enterprises lost P108.5 billion.

The 10 industries worst affected by quarantine restrictions lost nearly 75 percent of their sales, as 135,438 firms were closed during the two month lockdown and just 21,691 were open, the survey also showed.

Further, more than a quarter of firms nationwide had to lay off workers to manage the impact of their temporary closure. In terms of job losses, the state survey reported that some 2.24 million Filipinos lost their jobs during the lockdown.

Farmers, fisherfolk to bear brunt of latest oil-price hike, group says

By Jonathan L. Mayuga

@jonlmayuga

T

HE Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Monday warned against the domino effect of the recent oil-price hike that will hit small fishermen and farmers.

The group lamented that the oil-pr ice hike cou ld not come at a worse time because of the Cov id-19 pandemic.

The group was reacting to last week’s increase in the price of diesel, and petroleum products between P1-P2 per liter.

In a news statement, the fisherfolk group questioned the timing of the price increase when people are enduring the impacts of the Covid-19 to public health and economic lives of the people.

“The oil-price hike is an additional burden to poor families who barely make ends meet caused by the restrictive community quarantine. It is detrimental to small fisherfolks, who regularly consume gasoline for fishing operations, as petroleum products eat up almost 80 percent of our production costs.

An increase to prices of oil products means an increase to our production expenses to another all-time high,” Fernando Hicap, Pamalakaya national chairman said.

The fisherfolk group lamented that the fishing sector is already “battered

“Fishers and farmers will be hard hit by the recent fuel price hike and its potential drastic domino effect to prices of other goods and commodities.” ­— Hicap

by the skyrocketing oil prices caused by the Tax Reform for Acceleration and Inclusion [TRAIN] law,” which since its implementation in 2018, has increased the prices of diesel and gasoline by around P6 and P10, respectively.

Pamalakaya added that the price hike could trigger price shocks on basic goods and services, which will worsen the suffering of the already distressed families caused by the lockdown and the government’s slow and inadequate social support.

“Fishers and farmers will be hard hit by the recent fuel price hike and its potential drastic domino effect to prices of other goods and commodities. The government has yet to aid all the rural folks affected by the lockdown, and yet we have to bear the brunt of another oil-price increase. We need production subsidy and economic aid, not another costly production that will further our hardship,” said Hicap.

Q1 fish harvest lowest in last 16 years–PSA

T

HE country’s fisheries production in the first quarter of the year fell to its lowest level in 16 yearsof980,730.72metrictons(MT)as supply chain was disrupted by Taal Volcano eruption and Covid-19 pandemic.

In its quarterly report, the Philippine Statistics Authority (PSA) fisheries output declined 3.2 percent to 980,730.72 MT from 1.013 million MT (MMT) in the January-to-March period of 2019.

Historical PSA data showed that this is the lowest first quarter fisheries production recorded by the country in 16 years since 2004 when output was at 974,016.08 MT. PSA data also showed that this is the first time that fisheries output in the first quarter fell below 1 MMT in the past 16 years.

The Department of Agriculture (DA) earlier attributed the decline in output to the closed fishing season in certain fishing areas of the country.

Economist Pablito M. Villegas said the decline in fisheries output could be caused by the disruption in the supply chain due to lockdowns to prevent the spread of Covid-19.

Villegas explained that some fisherfolk and aquaculture producers were not motivated to harvest and sell more fish as they were unable to ship, or transport, their catch due to lockdowns.

Villegas added that the monthlong activity of Taal Volcano, which effectively stopped fisherfolk from fishing in Taal Lake, also contributed to the decline in overall fisheries output. “ Volume of production declined in all the fisheries subsectors,” the PSA said in its report published on Monday.

“Of the 20 major species, 15 recorded reductions in production led by tiger prawn [31.1 percent], mudcrab [18.2 percent], slipmouth [11.2 percent], fimbriated sardines [10.6 percent] and roundscad [8.5 percent],” the PSA added.

PSA said catch from commercial fisheries, which accounted for 21.7 percent of total production, went down by 2.2 percent to 213,110 MT from 217,81 MT. “Municipal fisheries subsector reported a 3.4-percent decrease in production as catch from both marine and inland fishing dropped.

Municipal fisheries production settled to 260,050 metric tons during the first quarter of 2020, from 269,180 metric tons output a year ago,” the PSA said. Jasper Emmanuel Y. Arcalas

PHL, 7th-largest ADB borrower, has loans of $10.2B. . . continued from a1 the countr y’s tota l loans only amounted to $5.753 billion, meaning the 2019 amount represents a 77.27-percent increase.

This is composed of $6.66 billion worth of outstanding loans and $3.54 billion worth of undisbursed committed loans. The undisbursed committed loans include $2.617 billion worth of effective loans; the remaining $923million loans are not yet effective.

Total loans extended by ADB as of 2019 reached $166.939 billion.

This is composed of loans outstanding at $114.389 billion; effective but undisbursed loans, $43.992 billion; not yet effective undisbursed loans, $5.653 billion; and loans not yet committed, $2.91 billion.

New commitments

DATA showed that in 2019, the Philippines received a total of $4.57 billion worth of new commitments from ADB. This is composed of $2.553 billion worth of loans and grants; $2.015 billion in cofinancing; and $2.3-million technical assistance.

In terms of new commitments for 2019, the Philippines received the second-highest amount among ADB’s DMCs, second only to India which received a total of $5.68 billion during the period.

The projects that were committed in 2019 were the $300-million Secondary Education Support Program; $1.3-bil-

lion Malolos-Clark Railway-Tranche 1; $300-million Local Governance Reform Program (Subprogram 1); and the $23.3-million Capacity Building to Foster Competition.

The list also includes the $400-million Facilitating Youth School‐to‐ Work Transition Program (Subprogram 2); and the $200-million Infrastructure Preparation and Innovation Facility-Additional Financing.

In terms of non-sovereign operations, the ADB extended $30 million for Fostering Women’s Empowerment Through Financial Inclusion Loan in Conflict‐Impacted and Lagging Provinces.

ADB operations

ADB’s projects, programs and other development support for its developing members in Asia and the Pacific amounted to $33.74 billion in 2019.

ADBsaid2019wasthefirstfullyearof implementation of the bank’s long-term corporatestrategy,dubbedStrategy2030.

“I am encouraged by our efforts in 2019. I am heartened by what we have achieved so far in 2020,” said ADB President Masatsugu Asakawa. “We will build on these achievements to ensure we remain relevant and responsive to our members’ needs as they take action to combat and recover from the novel coronavirus disease [Covid-19] pandemic.”

To respond to Covid-19, the ADB approved on April 13 this year a

$20-billion package to finance wideranging actions and programs to help its developing members address the impacts of the pandemic.

New commitments in 2019 included $21.64 billion in loans, grants, investments and guarantees from ADB’s own resources to support the growth and development plans of its developing members.

Disbursements in 2019—a key indicator of successful project implementation—reached a record $16.47 billion, a 16.1-percent increase from 2018.

ADB’s private-sector operations in 2019 reached the $3-billion mark for the second consecutive year, reflecting plans to expand private-sector investments into new sectors and frontier markets.

Cofinancing amounted to $11.86 billion in 2019, with ADB’s privatesector operations accounting for $6.98 billion of total cofinancing.

ADB climate financing reached a record high of $6.55 billion in 2019. The bank met its goal of doubling its annual climate investments from $3 billion in 2014 a year ahead of schedule.

This highlighted ADB’s strong commitment to climate-change action.

Strategy 2030 sets a target for cumulative climate financing of $35 billion by 2024 and $80 billion by 2030.

ADB is also on track to meet its Strategy 2030 target of promoting gender equality in at least 75 percent of its operations.

The World BusinessMirror

Editor: Angel R. Calso

Japan sinks into recession with steeper fall looming

J

apan’s economy sank last quarter into a recession that’s likely to deepen further as households limit spending to essentials and companies cut investment, production and hiring to stay afloat amid the coronavirus pandemic.

Gross domestic product shrank an annualized 3.4 percent in the three months through March from the previous quarter as exports slid and social distancing crimped consumer spending, Cabinet Office figures showed on Monday. While the result was slightly better than an expected 4.5-percent drop, helped by a downgrade of the previous quarter’s contraction, economists and policy makers agree that worse is in store in the current quarter.

Two consecutive quarters of shrinking GDP confirm that the world’s third-largest economy fell into a recession even before Prime Minister Shinzo Abe’s April declaration of national emergency. Analysts see a 21.5-percent contraction in the three months through June, a record for official data going back to 1955.

“There’s no doubt that this quarter has gotten much worse,” said economist Takeshi Minami at Norinchukin Research Institute. “Companies are struggling to secure funding and that suggests business investment will remain weak and many workers are concerned about their wages.”

The crisis has put pressure on policy makers to step up stimulus measures that, at a record ¥117 trillion ($1.1 trillion), already total more than 20 percent of GDP.

More aid

Economy Minister Yasutoshi Nishimura, speaking on Monday after the GDP report, said government is aiming to pass a second extra budget swiftly to get more aid to the economy.

The new money, coming only weeks after the passage of a first supplementary budget, is expected to provide rent support for small businesses and bigger subsidies for firms that don’t fire workers.

It will also add to the developed world’s heaviest public debt burden.

The Bank of Japan last month lifted its ceiling on government bond purchases as the government ramps up spending. The BOJ is also expected to introduce another lending program for small companies at an emergency meeting that could come as early as this week.

Despite the rising sense of crisis, Japan so far

appears to be doing less badly than other major economies. The US and Canada are both forecast to shrink more than 25 percent this quarter, while the US contracted 4.8 percent in the first three months of the year.

In recent days, rates of new virus infections have plunged in Japan and the government last week lifted its state of emergency for 39 of Japan’s 47 prefectures, although Tokyo and other dense economic centers still remain under heavy restrictions.

Until stay-at-home requests are lifted, policy makers won’t be able to spur growth no matter how much money is spent, according to economist Taro Saito at NLI Research Institute.

“For now, they have to spend money to prevent job losses and bankruptcies,” Saito said. “We’re not at a stage where the Bank of Japan can boost demand with monetary easing, and the BOJ will focus on corporate financing for now.”

Export slide

Japan’s policy makers also have little control over the world’s demand for the country’s exports, a main driver of growth that could stay depressed for a long time. Even though key overseas markets are starting to reopen from lockdowns, progress will come in fits and starts, with the risk of new infection waves looming.

Monday’s report showed exports dropped 6 percent last quarter on a non-annualized basis, but earnings forecasts from automakers and other manufacturers suggest the decline is likely to steepen.

Toyota Motor Corp., Japan’s largest company, sees profits tumbling 80 percent this fiscal year.

On the domestic side, spending isn’t likely to pick up quickly even after the state of emergency because of the bleak outlook for corporate profits and also wages, according to Norinchukin economist Minami.

Last quarter, private consumption slid 0.7 percent with worse likely ahead.

Dwindling numbers of foreign tourists, whose spending has been a key prop to growth in recent years, is another major concern. Spending by visitors from overseas slid 42 percent last quarter, according to the Japan Tourism Agency, and the drop is likely to have worsened since.

On a non-annualized basis, the economy shrank 0.9 percent from the fourth quarter.

Bloomberg News

Pompeo warns China against meddling with US media in HK

S

ecretary of State Mike Pompeo warned China against interfering with the work of US journalists in Hong Kong, and said actions impinging on freedoms there could damage diplomatic relations.

“These journalists are members of a free press, not propaganda cadres, and their valuable reporting informs Chinese citizens and the world,” Pompeo said in a statement.

Pompeo said without offering details that “it has recently come to my attention that the Chinese government has threatened to interfere with the work of American journalists in Hong Kong.”

The US and China are escalating disputes across several fronts, including trade and responsibility for the coronavirus pandemic. The flow of information has been a source of contention, with dozens of

journalists expelled from both countries in recent months. Beijing warned of further retaliation last week after the US reduced work visas for Chinese media staff to 90 days.

Pro-democracy demonstrations in Hong Kong have resumed recently, as protesters hope to regain momentum with the coronavirus showing signs of subsiding in the financial hub. Beijing is growing increasingly assertive over its role in Hong Kong, looking to tighten its supervision over politics ahead of elections for the city’s Legislative Council in September.

“Any decision impinging on Hong Kong’s autonomy and freedoms, as guaranteed under the Sino-British Joint Declaration and the Basic Law, would inevitably impact our assessment of One Country, Two Systems and the status of the territory,” Pompeo said. Bloomberg News

Tuesday, May 19, 2020

A5

US, European leaders weigh reopening risks sans vaccine

N

EW YORK—On a weekend when many pandemic-weary people emerged from weeks of lockdown, leaders in the US and Europe weighed the risks and rewards of lifting Covid-19 restrictions knowing that a vaccine could take years to develop.

In separate stark warnings, two major European leaders bluntly told their citizens that the world needs to adapt to living with the coronavirus and cannot wait to be saved by a vaccine.

“We are confronting this risk, and we need to accept it, otherwise we would never be able to relaunch,” Italian Premier Giuseppe Conte said, acceding to a push by regional leaders to allow restaurants, bars and beach facilities to open on Monday, weeks ahead of an earlier timetable.

The warnings from Conte and British Prime Minister Boris Johnson came as governments worldwide and many US states struggled with restarting economies blindsided by the pandemic. In the US, images of crowded bars, beaches and boardwalks suggested some weren’t heeding warnings to safely enjoy reopened spaces while limiting the risks of spreading infection.

Britain’s Johnson, who was hospitalized last month with a serious bout of Covid-19, speculated on Sunday that a vaccine may not be developed at all, despite the huge global effort to produce one.

“There remains a very long way to go, and I must be frank that a vaccine might not come to fruition,” Johnson wrote in the Mail on Sunday newspaper.

President Donald J. Trump, by contrast, promised Americans a speedy return to normalcy that sounded far more optimistic than most experts say is realistic.

“We’re looking at vaccines, we’re looking at cures and we are very, very far down the line,” he said while calling into a charity golf tournament broadcast on Sunday on NBC. “I think that’s not going to be in the very distant future. But even before that, I think we’ll be back to normal.”

Trump said events would likely resume with small crowds—if any—but hopes that, by the time the Masters Tournament is played in November, the crowds can return.

Health experts, however, say the world could be months, if not years, away from having a vaccine available to everyone, and they have warned that easing restrictions too quickly could cause the virus to rebound.

With 36 million newly unemployed in the US alone, economic pressures are building even as authorities acknowledge that reopening risks setting off new waves of infections and deaths.

Federal Reserve Chair Jerome Powell ex pressed optimism on Sunday that the US economy could begin to recover in the second half of the year, assuming there isn’t a second wave. But he suggested that a full recovery won’t likely be possible before the arrival of a vaccine.

In an interview with CBS’s “60 Minutes,” Powell said that, once the outbreak has been contained, the economy should be able to rebound “substantially,” while warning it would take much longer for the economy to regain its health than it took for it to collapse.

The coronavirus has infected over 4.7 million people and killed more than 315,000 worldwide, according to a tally by Johns Hopkins University that experts say under counts the true toll of the pandemic.

The US has reported over 89,000 dead and Europe has seen at least 160,000 deaths.

Some experts noted recent infection surges in Texas, including a 1,800-case jump on Saturday, with Amarillo identified as a growing hot spot. Texas officials said increased testing was playing a big role—the more you look for something, the more you find it. Many are watching hospitalizations and death rates in the weeks ahead to see exactly what the new Texas numbers really mean.

But Texas was one of the earliest states to allow stores and restaurants to reopen, and Dr. Michael Saag at the University of Alabama at Birmingham called Texas “a warning shot” for states to closely watch

People relax in marked circles for proper social distancing at Domino Park in the Williamsburg neighborhood of Brooklyn during the current coronavirus outbreak on May 17 in New York.

AP/Kathy Willens

any surges in cases and have plans to swiftly take steps to stop them.

“No one knows for sure exactly the right way forward, and what I think we’re witnessing is a giant national experiment,” said Saag, an infectious diseases researcher.

In the US, many states have lifted stay-at-home orders and other restrictions, allowing some types of businesses to reopen.

Ohio Gov. Mike DeWine, a Republican, told CNN on Sunday that he was concerned to see images of a crowded bar in Columbus, on the first day that outdoor dining establishments were allowed to reopen.

“We made the decision to start opening up Ohio, and about 90 percent of our economy is back open, because we thought it was a huge risk not to open,” he said. “But we also know it’s a huge risk in opening.”

The Isle of Palms, one of South Carolina’s most popular beaches, saw a rush of visitors this weekend— with Mayor Jimmy Carroll calling Saturday the busiest day he has seen in his more than 60 years there. But police said almost everyone on the beach and in the ocean was staying a safe distance apart.

Houses of worship are beginning to look ahead to resumption of inperson services, with some eyeing that shift this month. But the challenges are steeper in states with ongoing public health restrictions.

In Elgin, Illinois, Northwest Bible Baptist Church had sought to welcome back worshipers on Sunday, preparing to scan people’s temperatures and purchasing protective equipment. But that was postponed after local authorities raised questions.

The church’s preparations were

“more than what they’d had to do if they were at Home Depot or Lowe’s or Walmart,” said Jeremy Dys, a counsel at First Liberty Institute, the legal nonprofit representing Northwest Bible Baptist. “Somehow people going to church are incapable, it’s insinuated, of safely gathering.”

Underscoring the tradeoffs involved in resuming such gatherings, officials in California’s Butte County announced on Friday that a congregant had tested positive for the virus after attending a Mother’s Day church event that drew more than 180 people.

Florida Gov. Ron DeSantis has suggested that early predictions were overblown. On Monday, Florida restaurants will be allowed to operate at 50 percent capacity, as can retail shops, museums and libraries.

Paula Walborsky, a 74-year-old retired attorney in Tallahassee, Florida, has resisted the temptation to get her hair done and turned down dinner invitations from close friends. But when one of her city’s public swimming pools reopened by appointment, she decided to test the waters.

“I was so excited to be back in the water, and it just felt wonderful,” Walborsky said.

New York Gov. Andrew Cuomo got tested for the coronavirus on live television Sunday. Any New Yorkers experiencing flu-like symptoms or those returning to work can now get tested, Cuomo said.

“We’re all talking about what is the spread of the virus when you increase economic activity. Well, how do you know what the spread of the virus is? Testing, testing, testing,” he said. AP

‘Covid toes,’ other rashes latest possible rare coronavirus signs Oil rises above $30 for first time

S

kin doctors suddenly are looking at a lot of toes—whether by e-mailed picture or video visit—as concern grows that for some people, a sign of Covid-19 may pop up in an unusual spot.

B o s to n d e r m ato l o g i s t E s t h e r Fre e m a n expected to see skin complaints as the pandemic unfolded—various kinds of rashes occur when people get very ill from other viruses.

“But I was not anticipating those would be toes,” said Freeman of Massachusetts General Hospital, who has viewed via telemedicine more toes in the last several weeks than in her entire career.

They’re being called “Covid toes,” red, sore and sometimes itchy swellings on toes that look like chilblains, something doctors normally see on the feet and hands of people who’ve spent a long time outdoors in the cold.

Don’t race to the emergency room if toes are the only worry, said the American Academy of Dermatology.

Earlier this month, it issued advice that a telemedicine check is the first step for people wondering if they have “Covid toes” and who have no other reason for urgent care. Doctors then should decide if the patient should stay in home isolation or get tested.

The most common coronavirus symptoms are fever, a dry cough and shortness of breath—and some people are contagious despite never experiencing symptoms. But as this bewildering virus continues to

This April 3, photo provided by Northwestern University shows discoloration on a teenage patient’s toes at the onset of the condition informally called “Covid toes.” The red, sore and sometimes itchy swellings on toes look like chilblains, something doctors normally see on the feet and hands of people who’ve spent a long time outdoors in the cold.

Courtesy of Dr. Amy Paller/Northwestern University via AP

spread, less common symptoms are being reported including loss of smell, vomiting and diarrhea, and increasingly, a variety of skin problems.

In one report, dermatologists evaluated 88 Covid-19 patients in an Italian hospital and found

1 in 5 had some sort of skin symptom, mostly red rashes over the trunk. In another, Spanish doctors reported a series of 375 confirmed virus patients with a range of skin complaints, from hives to chickenpox-like lesions to the toe swellings.

Pictures of reddened toes and rashes all over social media and doctor chat groups have “already enabled the rapid recognition of skin signs by dermatologists. It is now time for rigorous science” to understand the link, Dr. Kanade Shinkai of the University of California, San Francisco wrote in a recent JAMA Dermatology editorial.

Boston’s Freeman directs an international Covid-19 registry for doctors to report cases of possibly virus-linked skin symptoms. Of 500 reports since late March, about half are chilblain-like spots on the feet, she said.

Chilblains, what doctors call “pernio,” are an inflammatory reaction. When pernio-like reactions appear in coronavirus-infected patients is one of many mysteries. For some people, it’s the first or even only symptom they notice. Others see the toe problem at the same time or even a few weeks after experiencing more common and serious Covid-19 symptoms.

It’s showing up in young people too, according to Dr. Amy Paller of Northwestern University, who is part of a pediatric dermatology registry also collecting images of patients’ toes.

Among the theories: Is it just inflammation triggered by an infection instead of the cold? Is the virus irritating the lining of blood vessels in the skin, or perhaps causing microscopic blood clots?

“The public health message is not to panic,” Freeman said, noting that most toe patients she’s seen haven’t become severely ill. AP

in 2 months on production cuts

O

il rose above $30 a barrel for the first time in two months as producers in the US and elsewhere continued to cut activity, helping to rebalance a market that was thrown into disarray by coronavirus lockdowns.

Futures in New York climbed around 4 percent after almost doubling in a run of three weekly advances. The number of drilling rigs in the US fell for a ninth week to levels not seen in more than a decade, while stockpiles at the key storage hub in Cushing, Oklahoma, shrank for the first time since late February. Iraq said it planned to halt output from one of its oil fields due to protests.

The American cuts come on top of almost 10 million barrels a day of curbs from Opec+, which kicked in at the beginning of the month. The producer alliance is responding to the demand destruction wrought by the virus with an urgency never seen before and the cutbacks are well on their way to their goal of removing around 10 percent of global supplies.

Together with a tentative recovery in demand, that’s made a repeat of last month’s plunge below zero extremely unlikely before the expiration of the West Texas Intermediate June contract on Tuesday.

Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries,

said in a Bloomberg Television interview that the outlook for the second half was looking more encouraging as the global economy recovers.

“There’s been a very sharp reaction by US producers in cutting output and that’s gone a long way in alleviating the stress on the system,” said Daniel Hynes, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. Prices are unlikely to drop below $20 a barrel unless there are new and more deadly waves of the outbreak in major economies, he said.

WTI for June delivery rose 4.3 percent to $30.68 a barrel on the New York Mercantile Exchange as of 10:02 a.m. in Singapore after climbing 19 percent last week. Brent for July settlement added 3.6 percent to $33.67 on the ICE Futures Europe exchange following a 4.9 percent advance last week.

There’s still a risk, however, that oil’s recovery could be derailed if the pandemic worsens. Federal Reserve Chairman Jerome Powell warned that stocks and other assets that have rallied sharply in the past month would suffer “significant declines” if there were setbacks in the fight to contain the virus.

The US economic recovery could stretch through the end of next year, he said in comments broadcast on American TV on Sunday night. Bloomberg News

A6 Tuesday, May 19, 2020 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Back to the countryside

T

rending photos of crowded malls and congested roads in Metro Manila under modified enhanced community quarantine have elicited negative comments on social media against some people who ignore social distancing protocols.

There is little room to practice social distancing in the most densely populated city in the world. Metro Manila has over 42,000 inhabitants per square kilometer or 46,000 people per square mile, twice the density of New York City.

The Housing and Urban Development Coordinating Council said in a report: The proliferation of informal settlements in the Philippines has become a phenomenon associated with big cities. From the early 1970s to more recent years, estimates of the number of informal settlers in the country have varied, ranging from as low as 470,000 families to as high as 2.5 million families.

There has been a pervading assumption in the rural areas that life in the big city would give people greater access to basic services, better education and more livelihood opportunities. Yet, more and more people migrating to urban centers end up living in slums, under conditions that are worse than the countryside.

Slums in Metro Manila are growing at 8 percent a year, the Philippine Institute for Development Studies said in a study.

An Asian Development Bank study showed that population in Philippine slum areas will go up to 12 million people if nothing is done to stem the tide of rural-urban migration.

Telling people in the slums—where people live in an average area of only 4 square meters per person—to practice social distancing and staying at home is almost impossible.

Considering all these, there is nothing inherently wrong with a government program that seeks to reverse the continuing migration of the rural population to Metro Manila, like the Duterte administration’s “Balik Probinsya, Bagong Pag-asa” program.

Critics of Balik Probinsya say there is nothing new in this program, which is true.

One of the first things Cory Aquino did when she became president in 1986 was to devolve and decentralize the government. She adopted a policy agenda for People Powered Development to bring about “growth with equity.” The Local Government Code was enacted into law under her administration precisely to reverse the centralism that resulted in underdevelopment and the lack of government services in the countryside.

In the succeeding administration of Fidel Ramos, other laws to help local governments and the countryside were enacted, like the Kalakalan 20 or the Magna Carta for Countryside Development, and the Magna Carta for Small Farmers.

Many more similar measures followed. If these laws and programs did not work, then we should revamp them, and make them work until they actually do.

The government needs to create conditions in the countryside that will lead to job creation and private-sector investments, whether by relaxing some regulations or reducing taxes or other measures.

The current technologies allow services to be performed anywhere and everywhere, as the IT-BPM sector has proven. With the right worker education and the right infrastructure, the service sector can thrive outside of the major cities.

One critic of Balik Probinsya said the government should prioritize urban housing for informal settlers instead of sending them back to the provinces.

But the national government has spent billions for new public housing every year. These billions have never been enough to solve the squatting problem.

The government has relocated thousands of poor families living in the slums, particularly those in high-risk zones such as along waterways in Metro Manila, but they keep coming back, or others keep taking their place.

The government does not have enough money to relocate all squatters. It has to spend at least P250,000 for relocating every family of squatters, which runs into tens of billions every year.

The government would do better to help create jobs, lure investments and industries and disperse economic activity in the countryside than spend billions on relocation. If the recycled, rehashed Balik Probinsya program can successfully do that, then we should give it a chance to work.

Filipinos living in slums and crowded cities would happily and gladly move back to their hometowns and provinces if they can have even just a semblance of the life they had always hoped for when they left the countryside.

Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief Associate Editor News Editor

A

ny form of easing the quarantine restrictions in Metro Manila and the rest of the Philippines will be good news for every Filipino, especially for our workers who are raring to reclaim their jobs and their modest earnings.

Now is not the time to be complacent and lower our guards against the pandemic, but we should also take a close look at the plight of the ordinary workers and small businesses. They have persevered with the enhanced community quarantine (ECQ) directive and heeded the call of the health authorities to stay home. Thus, they should be treated like other frontliners because they are critical to reopening the economy.

The Inter-Agency Task Force on Emerging Infectious Diseases, in my honest opinion, did the right thing when it placed Metro Manila and other areas under a modified ECQ. This will give the Philippines and the main metropolis a semblance of normalcy, with the New Normal as

the guiding principle.

The modified ECQ allows essential industries, certain manufacturing and processing industries to resume operations at half capacity. I just hope the transition to the general community quarantine and modified GCQ phases can be done quicker to pave the way for the full operations of Philippine manufacturers and industries.

Perhaps, it may be wise if we also look at the attempts of other nations to reopen their economy and get everybody back on their feet, and learn some good or bad lessons from them.

Gov. Andrew Cuomo of New York, the worst-hit state in the United States, consented to a gradual return to normal life last week, but

Lock up, phase two John Mangun

OUTSIDE THE BOX

Jennifer A. Ng Vittorio V. Vitug

Online Editor

Ruben M. Cruz Jr. Eduardo A. Davad Nonilon G. Reyes Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–Sun Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

THE Entrepreneur

Lourdes M. Fernandez

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Dennis D. Estopace Angel R. Calso

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Manny B. Villar

T. Anthony C. Cabangon

Senior Editors

Creative Director Chief Photographer

Modified ECQ: A step in the right direction

O

F course it is the result of my being locked up (I will no longer use the false term “lockdown”) for the past two months, but I am beginning to appreciate the Internet/ Facebook censorship in Vietnam and other countries.

By law the Hanoi government does this to penalize “making and spreading anti-state information and materials.” But an unintended consequence is shielding the public from comments and opinions that border on the absurd. And before you say that all I need to do is not open FB in the morning, that is not going to happen. I might miss and therefore regret forever not reading a comment from some celebrity that has the answers to all the world’s problems.

Yesterday, some roads and highways were clogged with traffic and the uproar was almost a frenzy. Yes there was much traffic as people were trying to go to work for the first time in two months. I also would have

been concerned if the traffic was a result of finally fulfilling dreams of seeing the landmarks of Makati, Manila, or that great tourist spot of Mandaluyong.

With public transportation still down, people were forced to use their automobiles if available. This also caused great concern for their health and safety, although I would think driving alone in your own car brings little risk of contracting the virus.

Crowding and ignoring “social staying away from” in the freshly opened malls is something that we all need to be watchful. However, posting videos to describe the horror of massive amounts of shoppers at SM supermarket should at least

not yet in densely populated New York City, which may have to wait until June at the earliest. The state of New York has seen declining Covid-19 cases and deaths in the past two weeks.

Spain and Italy are joining other parts of Europe in partially reopening their economy, encouraged by lower daily fatalities. Spain’s daily deaths dropped to 123 last week, while Italy reported less than 1,000 patients in intensive care, the lowest since March 10 before the peak of the country’s outbreak.

France has seen a drop in daily fatalities and began dismantling a military field hospital it built when hospitals were being overwhelmed.

News accounts said the French were able to go outdoors without seeking a permit for the first time in nearly eight weeks, while some shops reopened their doors. An Agence France-Presse report noted that the broad boulevards of the Champs-Elysees in Paris were once again back to life “with cars and shoppers waiting patiently to make purchases, but things were not as before.”

Closer to home, gridlock is back in Beijing’s ring roads as China eases its way back to a form of normalcy, while Hanoi in Vietnam has seen the return of mopeds in its busy

streets as millions of people in Asia slowly emerge from lockdowns and self-isolation.

In Hong Kong, AFP reported that revelers were slowly returning to the streets of Lan Kwai Fong, a popular drinking area in the central business district that went quiet during a temporary ban on the sale of alcohol in bars and restaurants.

Japan, the world’s third-largest economy, lifted a state of emergency across most of the nation, except for Tokyo and Osaka.

Here in the Philippines, some Metro Manila mayors have favored a cautious and gradual reopening of the economy. Mayors Imelda Aguilar of Las Piñas, Isko Moreno Domagoso of Manila, Joy Belmonte of Quezon City, Abby Binay of Makati, and Antolin Oreta III of Malabon preferred their cities to be placed under GCQ after May 15.

They stressed that Metro Manila should not be on a complete standstill, noting that “off-center” cities could and should play the role in jump-starting the economy. It is in the “off-center” cities where major critical enterprises and manufacturing facilities are operating, aside from providing access to major highways and provincial markets.

See “Villar,” A7

We all knew that this next stage of the ECQ was coming.

To think that it is going to be any easier—physically and psychologically—than the initial phase is a dream. The virus got out of hand globally and the Philippines was caught in its path. It is all wonderful to place blame but that will do nothing now. The goal is to survive and endure.

Research at Philstocks Financial. I first knew him when he started in the business back in the 1990s. He died not from Covid-19 but of cardiac arrest way too early.

In April the former Secretary of Tourism Ramon Jimenez Jr. passed away also not from the virus. Some of us old guys were talking about how Secretary Jimenez spent the last two months of his life locked up, being protected from the virus that did not kill him. At a certain age, life is genuinely too short to be too careful.

But if waiting however long it takes to resume some semblance of normal life is your thing, I suppose you should do it. I won’t.

We all knew that this next stage of the ECQ was coming. To think that it is going to be any easier—physically and psychologically—than the initial phase is a dream. The virus got out of hand globally and the Philippines was caught in its path. It is all wonderful to place blame but that will do nothing now. The goal is to survive and endure.

be accurate. If you are going to post those pictures, at least make sure that it does not show all the SM employees not wearing masks. That leads me to believe those were from a time long, long ago right before the “lock up” and not this past weekend.

I do appreciate that some people are going to be extremely cautious in the next weeks and months. I asked my wife if I too could go to the mall.

Ada said to check back with her later; it might be my Christmas gift. But is it realistic to say that no one will enter your house or that you will stay under “lock up” until a cure or vaccine is found?

Last week my industry lost a good man with the death of Justino “JC” Calaycay who was VP-Head of

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

www.businessmirror.com.ph

Tuesday, May 19, 2020 A7

Disruption in cross-border Karol Josef Wojtyla, the first non-Italian Pope assignments: Tax impact on individuals Manny F. Dooc TELLTALES

Fulvio D. Dawilan

Tax Law for Business

I

N my article in this column four weeks ago, I discussed the tax impact of travel restrictions and quarantine measures undertaken in almost all jurisdictions, specifically the effect on crossborder transactions undertaken through assignments of employees and agents. I limited my discussion on the possibility of creating permanent establishments arising from the sudden disruption in the scheduled work arrangements or duration of projects. But as requested by some readers, I promised to discuss the other ramifications, especially with respect to the tax impact on the stranded individuals themselves.

The sudden imposition of travel bans and closure of air and sea ports forced workers to stay in jurisdictions they did not intend to be. This unintended presence or absence in a state could change the dynamics in the determination of the tax status of the affected individuals. In the Philippine domestic laws, the tax classification of individuals could be affected by the number of days they are present or absent in the country.

Besides, the tax treaties concluded by the Philippines with foreign countries include the days of presence in the country of foreign individuals in the determination of whether or not they are obligated to pay tax. Any disruption therefore of their presence in the country may have unintended tax consequences not previously considered in the equation.

And this disruption gave birth to a range of issues. We address a few of these situations from a Philippine tax perspective—limiting the discussion in the meantime to inbound employees (foreign individuals) and to the application of tax treaties.

The application of treaty rules on stranded employees proceeds from the rule found in a number of tax treaties to the effect that salaries, wages and other similar remuneration are taxable only in the person’s state of residence unless the employment is exercised in the Philippines. Also known as the place of exercise test, this means that if the individual is physically present and performs the employment services in the Philippines, the income from such services may be taxed in this country. Stated differently, the source of income is the Philippines if the service is rendered within the country and conversely, the source of income is outside the Philippines if the employee is physically present and performs the services there. It is only when the source of income is within the Philippines will its tax authority have the right to impose tax on the individual’s income. By the way, this mirrors the rules provided in our domestic laws where the Philippines has the right to tax foreign nationals only on their income derived from within the Philippines.

The tax treaties, however, provide three conditions for the income not to be taxable here, despite the physical presence and performance of employment services in the Philippines. Breach of anyone of those conditions will invalidate the exemption. One of those conditions that will give the Philippines the right to tax income sourced from the country is when the employee is here for more than 183 days (90 in the case of the Philippines-US tax treaty) in any 12-month period (taxable year in some treaties). If less, the Philippines does not have the right to tax provided the other two conditions are present.

What does the disruption of the work arrangement due to Covid-19 have to do with the taxation of affected individuals? Needless to say, the distraction in pre-planned work schedules in and out of the country altered the result of the application of the place of exercise test and the

duration of stay in the country, and consequently modifying the tax impact on cross-border assignments.

The OECD Secretariat, in its Analysis of Tax Treaties and the Impact of the Covid-19 Crisis (Version 3 April 2020), issued guidance attempting to address these issues. To put emphasis on the supposed application of tax treaty rules, the Secretariat analyzed two situations: (a) a person is temporarily away from his home (perhaps on holiday, perhaps to work for a few weeks) and gets stranded in the host country by reason of the Covid-19 crisis and attains domestic law residence there, and (b) a person is working in a country (the “current home country”) and has acquired residence status there, but temporarily returned to his previous home country because of the Covid-19 situation. In the first scenario, the analysis concluded that it is unlikely that the person would acquire residence status in the country where the person is temporarily staying because of extraordinary circumstances. Similarly, in the second scenario, it is also unlikely that the person would regain residence status for being temporarily in the previous home country. In both cases, such a temporary dislocation should have no tax implications. A number of countries have issued their respective guidelines espousing the same tax treatment.

An interpretation from a Philippine perspective could be different, in the absence of a guideline issued by our tax authority. In the first situation, the person will become taxable in the Philippines. With a prolonged stay in the country and at the same time rendering the service here, the source of the income is the Philippines coupled by a possible breach of the number of days allowed for exemption. As such, the related income becomes taxable in the Philippines. In the second scenario, the Philippines may lose its right to tax the individual due to his physical absence and the reduction of days the individual is present in the Philippines.

While the failure of employees to work in their place of employment is already a complicated issue, the absence of rules to guide the employees, their employers and the tax authority lends further complexities on taxation matters. In the absence of rules, we might be unduly imposing obligations on those who should be free from tax. But we may also be losing taxes that are rightfully due to us. As in some countries, our tax authority should issue guidelines in the proper evaluation of tax status of individuals unintentionally affected by the disruptions in the cross-border assignments.

The author is the Managing Partner of DuBaladad and Associates Law Offices (BDB Law), a member-firm of WTS Global.

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at fulvio.dawilan@ bdblaw.com.ph or call 8403-2001 loc 310.

K

arol Josef Wojtyla was born on May 18, 1920— exactly a century ago yesterday. He is better known as Pope John Paul II, the first non-Italian Pope in over 400 years. He was the Prince of the Catholic Church from 1978 and his Papacy ended upon his death on April 2, 2005. He was born in Wadowice, outside the city of Krakow, the former capital of Poland. His life was attended by heartbreaking deaths of all his immediate family members before he attained full adulthood.

His only sister died at infancy before Wojtyla was born while his mother died when he was barely three years old. But it was the death of his elder brother, Edmund, which greatly saddened him. Edmund was a doctor who died young when he contracted scarlet fever, a raging epidemic in Europe at that time. He was a frontliner who was infected by one of his patients. Pope John Paul II recalled his brother’s tragic death later when he was a Pope and admitted that the circumstances of Edmund’s death affected him more than his own mother’s death earlier who died of heart and kidney problems.

Wojtyla’s father and relatives never had an inkling that he would become a priest. He was a highly spirited young man. He loved football and served as a goalkeeper. He even played

for the Jewish team in their community despite the strong anti-Jewish sentiments then whenever the local Jewish team lacked players. He excelled in other sports as well like skiing and swimming, and in academics studying both Greek and Latin. With his athletic and handsome looks, he considered becoming an actor when he was a teenager. At this period, he had a beautiful Jewish girlfriend who was an actress. When he was 15, a young prankster pointed a gun at him without knowing that the gun was loaded.

Wojtyla escaped death when the gun narrowly missed him. But in 1981, an assassin shot him twice right in St. Peter’s Square while he was blessing the huge crowd. He survived the attack and forgave his assailant.

He was ordained a priest after the war. The horrors of the hostilities changed Wojtyla. He witnessed

the sufferings around him and the cruelties inflicted by the Nazis to his people. He studied priesthood in an underground seminary instead of pursuing his dreams to become an actor. At the same time, he supported the underground forces operating in Poland by passing anti-Nazi propaganda materials. He hid until the war ended when the Nazis put him on the wanted list. He pursued further studies in Rome earning degrees in Philosophy and Theology. In 1967, he became a cardinal and installed as the Archbishop of Krakow. Meanwhile, he continued to challenge the communist regime in Poland and encouraged the opposition elements made up mostly of the powerful pro-democracy labor unions. He succeeded Pope John Paul who died in 1978 and whose name he adopted to honor his predecessor.

He was one of the most traveled and active Popes of all times. He had made 102 foreign trips and 142 travels within Italy. He delivered more than 3,000 homilies and speeches and wrote 14 encyclicals. Wojtyla was an activist Pope. He once intoned that “(W)hat justifies the existence of any political activity is service to man.” He admonished that the Church “seeks the truth, which is not always the same as the majority opinion. She listens to conscience and not to power, and in this way she defends the poor and the downtrodden.” Pope John Paul II was admired around the world even by non-Catholics for his capacity to identify the ethical and social issues of his time

and relate them to the doctrines of the faith. Likewise, his affinity with and love for the youth carried universal support. He organized World Youth Day around the globe where on one occasion, he proclaimed, “(T) his is no time to be ashamed of the Gospel. It is the time to preach it from the rooftops.” And noting the rise of authoritarian governments, he sharply pointed out, “as history demonstrates, a democracy without values easily turns into open or thinly disguised totalitarianism.” As a respected world leader, he worked to bring about political change particularly in his native country, Poland. Time Magazine reported that on June 7, 1982, he and President Ronald Reagan met and clandestinely planned to overthrow communism in Eastern Europe, starting with Poland. Working together, the pro-western labor unions, American pro-democracy forces, the CIA and the Catholic Church supported the Solidarity movement uprising in Poland, which installed Lech Walesa as the new leader. The revolution became widespread, reaching other communist countries in Europe, including Russia.

In the face of the Covid-19 pandemic, let’s recall to mind his stirring words, “(D)do not abandon yourselves to despair. We are the Easter people and hallelujah is our song.” He died in 2005 at the age of 84 in the Vatican. He was canonized as a saint on April 27, 2014, together with Pope John XXIII, in an official ceremony led by Pope Francis.

Bookstore browsing can’t become a victim of coronavirus

By Stephen L. Carter | Bloomberg Opinion

screens you glance at online, you won’t duplicate the number and variety of volumes you can swiftly take in by spending even a few minutes in a bookstore aisle.

So much for all that. To begin with, a lot of people will understandably be uneasy about browsing because browsing means more time in the store, and they won’t want to chance infection by another customer. So maybe it makes sense that Barnes and Noble plans to remove those comfy chairs and benches where people used to sit and read.

But browsing is also tactile, testing a book’s heft and weight even as you leaf through the pages. That’s going to be harder than ever, given that the chain has also announced plans to quarantine for five days every volume a customer handles.

With booksellers nowadays often displaying only a copy or two of all but the most popular titles, the book quarantine will have many buyers ordering on their phones instead.

One obvious question, then, is

whether the five-day quarantine is necessary. I appreciate the need for the stores to limit potential liability, and to disinfect a physical book could ruin it. (Try to picture a volume that’s been treated with Lysol.) And, certainly, a business must plan around the fears consumers are experiencing.

But where books are concerned, maybe we should be less afraid. A few years ago, experts were assuring the public that books were highly unlikely transmitters of disease. Has Covid-19 changed the calculus? The evidence so far seems to be against the proposition that the coronavirus can survive on paper for more than a few hours. This would be consistent with what we learned from similar viruses in the past.

We’ve been through a scare about books and germs before, during the smallpox epidemic of the 19th and early 20th centuries, and one result was a serious crippling of public libraries. The widespread belief that picking up a book could make a person sick was part of what Priscilla Wald of Duke University has labeled “a litany of hitherto unseen dangers.”

I’m not insisting that studies suggesting the possibility of a longer life on paper are wrong. But we should approach them with care. This recent article, cited for the proposition that the novel coronavirus might survive on paper for up to five days, is a review of existing literature. The article makes the five-day assertion for only one strain of SARS, known as CoV-P9, recovered from a single

patient. The source of the assertion is this 2003 study, which was actually about ways to kill SARS, and in which the paper was infected with an unusually high concentration of virus (105 infective doses per milliliter). For other strains, at similar doses, the review showed the SARS virus surviving on paper for 5 minutes to 3 hours, or, at an even higher doses, for just 24 hours.

And this is assuming the virus will remain on the surface of the page not just in the right concentration to infect us, but also in a sufficient amount. Certainly it’s possible—but is it really plausible?

Even researchers who consider contaminated surfaces an important risk in viral transmission concede that the extant studies are difficult to evaluate.

None of this matters, however, unless physical books matter. A detailed argument on this could fill, well, a book, but here it is in brief: Books fill a vital niche in a democracy, presenting a different way of looking at both stories and arguments. They provide a reminder that there exist valuable and complex ideas that can’t be squeezed into a handful of words and fascinating tales that don’t fit on the screen.

The solidity of the printed word is a symbol of permanence. And the book in any form, digital or physical, is an escape from the quotidian, a chance to lose yourself in history few people know much about, or to discover brilliantly transportive fiction you might have missed.

The construction of these facilities has allowed the government to buy time and prevented our hospitals and health-care facilities from being overwhelmed by a new spike in Covid-19 cases.

The Villar Group of Companies, which I head, completed the conversion of the Philippine International Convention Center Forum Halls into a temporary health facility to handle moderate cases of Covid-19.

The Villar Group, along with the Department of Public Works and Highways and EEI Corp., completed the job three days ahead of schedule by working 24 hours a day.

The DPWH, in all, completed seven “mega community quarantine” facilities for Covid-19 patients in partnership with private companies.

Public Works Secretary Mark

Villar said these health facilities, also called “We Heal as One Centers,” can accommodate 1,976 people and have been accepting patients. They also house returning overseas Filipino workers who are undergoing a mandatory 14-day quarantine.

The patient care facilities are found at the Ninoy Aquino Stadium in Manila; PICC Forum in Pasay City; Rizal Memorial Coliseum in Manila; World Trade Center in Pasay City; Asean Convention Center, Clark, Pampanga; National Government Administrative Center, New Clark City, Capas, Tarlac; and Philippine Sports Complex (Ultra), Pasig City.

We can avoid the worst-case scenario if we gradually reopen the economy as some European and Asian nations are now doing.

The Development Budget Coordination Committee has become realistic of its prognosis on the economy after two months of lockdown. It now sees the GDP contracting by 2.0 to 3.4 percent in 2020.

“Neda [National Economic and Development Authority] estimates suggest that the potential impact of the pandemic on the economy could reach P2 trillion or about 9.4 percent of GDP this year,” says the Cabinet interagency body.

We might as well move to reopen the economy before a greater damage is done from where it is hard to recover. We must generate jobs, and the Philippines just cannot afford a rising unemployment rate.

W

E all have aspects of the old normal that we miss. For me, it’s bookstores.

Barnes and Noble will end the shutdown with fewer stores than before the pandemic, and the company will be implementing restrictions that are sure to discourage browsing. Other booksellers have no idea when they will be ready to welcome customers again. The New York Times reported recently that although the number of indies has increased by nearly 900 over the past decade, the current emergency “threatens to wipe out those gains.”

You might respond that bookstores don’t matter. If you want a book, you can order it online. You can download it to your Kindle. What difference does it make if physical stores are in trouble? Aren’t they an endangered species anyway?

Maybe so—but they’re the kind of endangered species we should be eager to preserve. Brick-and-mortar bookstores matter because browsing is important. Browsing is important not only because it is a pleasure, but also because it underscores the forgotten role of the physical book.

Browsing is a voyage of constant discovery. You run your fingers along the spines of the history section only to learn that the volume you’re looking for isn’t in stock. No matter. You find a fascinating book you’ve never heard of and know nothing about, a treasure upon which you happened only because you were looking for another. You pick it up, you leaf through it, you decide to buy. (Especially—no kidding!—if the smell of chocolate is in the air.) No matter how many

Villar. . .

Continued from A6

We must remember that about 70 percent of the gross domestic product comes from the National Capital Region, Calabarzon and Central Luzon. These “off-center” cities have successfully managed the spread of the pandemic.

Metro Manila mayors are aware that the feared second or third wave of virus infections can happen if strict health protocols like wearing of face masks and social distancing are not observed. But the national government precisely built more quarantine facilities and hospital beds in anticipation of a possible rise in Covid-19 cases and as more tests are conducted in the population.

For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.

A8 Tuesday, May 19, 2020

Govt gets ₧24B from local debt market

By Bernadette D. Nicolas

A

@BNicolasBM

S investors continue to be risk-averse, the Bureau of the Treasury (BTr) took the opportunity to borrow more from the local debt market after seeing lower rates across the board.

The Treasury raised a total of P24 billion, higher than the initial P20 billion offering as it accepted more non-competitive bids, particularly for the 91-day and 182-day Treasury bills (T-bills).

The auction was oversubscribed by five times more than the P20 billion offering as tenders reached P103.8 billion.

With strong demand for government securities, the Treasury also decided to open the tap facility window for an additional P5 billion offering for 364-day T-bills.

Following the auction, National Treasurer Rosalia V. de Leon told reporters that “flight to safety continues.”

“Strong reception to T-bill auction at much lower rates reflecting liquid tone of [the] market aftermath of supportive actions of the BSP [Bangko Sentral ng Pilipinas],” De Leon said.

The 91-day T-bills capped at an average rate of 2.090 percent, 17.9-basis points lower than the previous rate of 2.269 percent.

Tenders reached P29.334 billion, nearly six times the initial P5 billion offering.

For the 182-day debt papers, the securities fetched an average rate of 2.193 percent, sliding 18.1 basis points from 2.374 percent average rate in the previous auction. Total bids for the security amounted to P33.7 billion, more than six times higher than the initial P5 billion offering.

Lastly, the 364-day T-bills’ average rate also dropped to P2.653 percent, 10.8 basis points below the previous average rate of 2.761 percent. A total of P40.771 billion tenders were recorded for the tenor, four times more than the P10 billion offering.

For this month, the Treasury programmed to borrow P170 billion from the local debt market.

ABS-CBN pushes TRO bid, says PA may take long A

By Joel R. San Juan @jrsanjuan1573 & Jovee Marie N. dela Cruz @joveemarie

BS-CBN Corp. on Monday urged the Supreme Court to immediately grant its plea for the issuance of a temporary restraining order (TRO) and preliminary injunction against the cease-and-desist order of the National Telecommunications Commission (NTC) after the lapse of its franchise last May 5.

The broadcasting company filed a nine-page urgent reiterative motion for the issuance of a TRO and/ or preliminary injunction against the NTC even as Congress expressed its readiness to issue a provisional authority (PA) so it could resume operations soon pending the approval of its petition for the renewal of its francise.

The petition pointed out that it

will take some time even if members of the Senate have expressed willingness to act immediately on the measure of the House of Representatives to issue a provisional authority to operate until October 2020 which just passed at the committee level.

The petitioner expressed apprehension that it might not be able to resume broadcasting on radio and television as the provisional authority is still subject to the approval of the Office of the President.

“This may take some weeks if not months,” it said.

“In the meantime, ABS-CBN, its employees, various stakeholders, and the general public will continue to suffer grave and irreparable injury as a result of the cease-and-desist order issued by the NTC,” it added.

House reconsiders

IT appears ABS-CBN’s decision to press its bid for a TRO on the NTC order was imbued with foresight. On Monday afternoon, the House of Representatives reconsidered the second reading approval of the bill granting the ABS-CBN Corp. a provisional franchise to operate until October 31, 2020.

This after lawmakers expressed different positions on the constitutionality of the second reading approval of the House Bill 6732 last Wednesday.

Deput y Major it y L eader Wilter Palma said, however, the chamber’s move to recall the passage is just meant to

accommodate more lawmakers who want to make interpellations and amendments to the bill.

For his part, Albay Rep. Edcel Lagman said it was unconstitutional to pass a bill on both first and second readings on the same day, saying this reconsideration only aims “to cleanse” the measure of constitutional infirmity.

“No bill shall become law unless it has passed three readings on separate days,” Lagman said.

Earlier, Lagman said “the only timely and viable solution to save HB 6732 from constitutional infirmity is to reconsider its errant approval last May 13, 2020, so that it could be passed validly on May 18, 2020, which is a separate session day.” The bill was read on first reading and approved on second reading on the same day, Wednesday.

However, But Deputy Speaker Luis Raymund Villafuerte said the House’s procedures on the HB 6732 are “constitutional” and “not defective.”

“First it has due precedence. We complied with the Constitution,” Villafuerte said.

“The Constitution clearly says three readings on separate days, not three separate days. So your honor, basically, my justification, aside from precedence, is that the Constitution really basically requires three readings on separate days basically first to inform the members of Congress of what they must vote on,” he added.

In a sponsorship speech, Speaker Alan Peter Cayetano said the sudden turnaround of the NTC from March 10 commitment during a House hearing to provide a provisional authority has distracted Congress from focusing on the Covid-19 pandemic.

He said granting the provisional franchise to ABS-CBN would give Congress time to assess with complete impartiality and fairness whether or not the network shall be granted a franchise for another 25 years.

10 percent

MOREOVER, Cayetano wants ABSCBN to dedicate 10 percents of its paid advertisements to the government as “public service time.”

According to Cayetano, this provision should be applied to address the issue on equal protection.

Continued on A2

ABS-CBN wants to keep its frequencies

By Lorenz S. Marasigan @lorenzmarasigan

R

ECALLING and reallocating the radio frequencies currently assigned to embattled ABS-CBN Corp. is counterintuitive and may prove to be detrimental to public interest, especially since a provisional franchise is forthcoming, the Lopez-led company said on Monday.

In a 14-page reply to the cease and desist order (CDO) of the National Telecommunications Commission (NTC), ABS-CBN asked the regulator to not recall the frequencies assigned to it, while calling for the suspension of proceedings pending the conclusion of franchise hearings.

“The recall of ABS-CBN’s frequencies at this time would serve no useful purpose, in light of the forthcoming grant of a franchise and the pendency of a case with similar issues before the Supreme Court,” the reply read.

ABS-CBN filed for a petition for certiorari and prohibition before the high court on May 7, urging the court to tissue a temporary restraining order against the NTC and to nullify the CDO. Both houses of Congress have also assured ABS-CBN that they will fast-track the legislative proceedings for its franchise.

“In fact, the recall could only be detrimental to the public interest, as it would hamper the ability of ABS-CBN to immediately resume service the public through its broadcasts, once the franchise is granted,” the reply read.

The company also explained that its investments in innovation over the past twoand- a-half decades have resulted in an expanded reach of households across the country. In 2019, it said more than 70 percent of all Filipinos tuned in to ABS-CBN. It also claimed to have complied with all laws, rules and regulations during that period.

“There is no reason, therefore, to precipitately recall the frequencies at the expense of ABS-CBN and, worse, to the detriment of viewers and listeners that it has been serving throughout the decades,” the reply read.

It added that allowing the company to retain the assigned frequencies is the “only course of action consistent with state policy under Section 4c of RA 7925,” or the Public Telecommunications Policy Act of the Philippines.

“This provide that radio frequency spectrum should be administered in the public interest and should be allocated to service providers who will use it efficiently and effectively to meet public demand,” the reply read.

ABS-CBN has been off air since May 5, when the NTC issued a CDO against it for its lack of congressional franchise. The CDO also sought the explanation of ABS-CBN as to why its frequencies, which cover 23 radio stations, 42 television stations, and 10 digital terrestrial television broadcast stations, should not be recalled.

Several congresses have failed to renew the franchise bill of the Lopez-led network, which President Duterte branded as his enemy for supposedly being “biased” against him.

The Lopez-led network has been using other platforms to continue its operations, but is losing P35 million per day while it is off air.

Tech-driven sanitation key part of the ‘new normal’ in hotels

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

A

S hotels scramble to prepare for the “new normal,” many establishments are tweaking their health and sanitation protocols to encourage travelers to start booking their stays again, post-Covid 19.

In a now viral video, Hotel Sogo seems to be showing the way for the industry to keep their hotels, “so clean, so good...and so safe.” On its Facebook page, the hotel group trumpeted its “New Normal Playbook,” which it said was developed in partnership with medical frontliners who had stayed with them during the enhanced community quarantine

(ECQ ). For instance, they redesigned their uniforms to incorporate personal protective equipment or gear (PPE). “Proven to kill viruses in hospitals, we adopted the use of UVC disinfection lights for rooms, contact points, cash, utensils and food,” said the hotel group.

Their lobby layout has also been redesigned to conform to physical distancing requirements, with clear markers indicating where people can stand or sit, and glass dividers between the guests and reception area. “No contact disinfection will now be the new normal, from lobby doors [e.g., foot door opener] and toilet fixtures. Even giveaways include a no-contact key.”

Operated by the Global Comfort

Group, Hotel Sogo now has 41 branches all over the country, and prior to the Covid-19 health crisis, had announced an expansion to 50 branches by this year. The Global Comfort Group also operates Icon Hotel and Eurotel.

For its part, the Henann Group of Resorts underscored the need to educate its staff on how to deal with the guests who will eventually arrive at its properties, once travel restrictions are lifted. In a recent tourism webinar hosted

by Go Negosyo, Henry Chusuey, founder and chairman of the resort group said, “We need to educate everybody. How? what is coronavirus? how not to get infected and not infect others?”

Continued on A2

www.businessmirror.com.ph

Companies BusinessMirror

Tuesday, May 19, 2020

B1

Ayala pays ₧9.85B in taxes ahead of govt filing deadline

By VG Cabuag

C

@villygc

onglomerate Ayala Corp. on Monday said its units settled their respective taxes totaling about P9.85 billion before the extended June 14 deadline of the Bureau of Internal Revenue to help boost the government’s coffers.

The taxes were paid by the core value drivers of the Ayala group— Ayala Corp., Ayala Land Inc., Bank of the Philippine Islands, Globe Telecom Inc., AC Energy and Manila Water Co. Inc. “We are committed to help the President tackle the many challenges he has to deal with and are confident

that by working together, our country can overcome each challenge, save lives, and gradually put the country back on a path of growth,” according to the joint statement of brothers Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala last week.

The Zobel brothers also emphasized the importance of public-

private cooperation as the country deals with the adverse impact of the coronavirus disease 2019 (Covid-19) pandemic.

To date, the Ayala group said it has contributed about P5.6 billion to support initiatives aimed at protecting its employees, support its partners and clients, and provide for the communities it serves.

The conglomerate reported last week that its net income in the January-to-March period fell 17 percent to P6.7 billion, from last year’s P8.3 billion, as the Covid-19 crisis affected the performance of most of its business units.

Revenues fell 11 percent to P61.72 billion, from last year’s P69.5 billion as its core businesses—Ayala Land and Bank of the Philippine Islands— recorded weak results on the impact of government-mandated enhanced community quarantine protocols, which took effect last March 16.

Isolating the estimated impact of the health crisis, Ayala’s net income was flat from last year, which included the P1-billion divestment gains from the merger of AC Education with iPeople.

AC Industrials, meanwhile, registered a net loss of P564 million due to the impact of government-mandated shutdown of its facilities in China and market disruptions in the global supply chain in manufacturing.

Globe Telecom Inc. reported a profit decline of 2 percent to P6.6 billion during the period, but its power business recorded a turnaround, booking profits of P1.96 billion, from P2 million a year ago.

Manila Water’s first quarter net profits grew 4 percent year-on-year to P1.3 billion mainly due to the impact of the P534-million penalty from the regulator and P353million bill waiver from the water crisis last year.

ERC to Meralco: Explain power bill computation

By Lenie Lectura @llectura

T

he Energy Regulatory Commission (ERC) has asked the Manila Electric Co. (Meralco) to explain how it computed electricity bills for March to April this year, following mounting complaints from subscribers.

This, even as Meralco has spent the past weekend explaining through media how it computed the consumers’ electricity usage. It stressed that its meter-reading activities continue to be accurate and transparent.

It said that some March and all April bills were estimates based on the average daily consumption of customers over the previous three months, following the Distribution Services and Open Access Rules (DSOAR) issued by the ERC. Meralco suspended physical meter reading during the enhanced community quarantine (ECQ).

“We have been bombarded with

Metro Retail opens more branches

G

AISANO-LED Metro Retail opened three other branches on Monday as the government-imposed enhanced community quarantine (ECQ) eased in some areas, which allowed the resumption of some essential businesses amid the coronavirus disease 2019 (Covid-19) pandemic.

The daily operations of its outlets in Central and South Luzon that have resumed starting May 18 are: Metro Department Store, Marquee Mall in Pampanga (from 11 a.m. to 8 p.m.); Metro Supermarket Pacific Mall Lucena (from 8 a.m. to 6 p.m.); and Pacific Mall Legazpi (from 8 a.m. to 6 p.m.).

Metro Department Stores in the last two malls is open from 9 a.m. to 6 p.m.

The retail chain’s three branches in Luzon and Visayas had kicked off its phased reopening last May 16.

These include Metro Ayala Malls Feliz and Metro Ayala Malls Capitol Central Bacolod, which are presently serving customers from 10 a.m. to 7 p.m.; as well as The District Imus Metro Department Store, from 10 a.m. to 6 p.m.

Metro Retail shoppers now have access to a variety of home essentials, such as resources for home-based fun and learning, hygiene products, small appliances, clothes, snacks and different home-based activities.

For a secure buying experience, safety measures are strictly enforced within their premises to protect them and the staff from contracting Covid-19. Roderick L. Abad

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,” said ERC Chairman and CEO Agnes VST Devanadera.

The agency wrote Meralco a letter dated May 15. It wants Meralco to explain and show proof of its basis in calculating the kilowatt-hour (kWh) consumption for its customers during the implementation of the ECQ. In its letter, the ERC directed Meralco to submit the following documents within five days from receipt of the relevant letter: n Basis on the determination of the kWh consumption of the captive customers during the ECQ, particularly for the billing periods of March, April, and May 2020. n Power bills issued by the suppliers used in the computation of

the Generation Rate for the same billing period. n Invoices from the National Grid Corporation of the Philippines used in the computation of the Transmission Rate for the aforesaid billing period. n The Uniform Reportorial Requirement (URR) for the said billing period.

The data will help the ERC determine if the utility firm has complied with the DSOAR), and if Meralco implemented accurately the advisories issued by the agency issued last April 15 and May 5 relating to the implementation of Pass Thru Charges to consumers.

“We are adhering to our mandate of ensuring that the interest of the consuming public is promoted and protected,” Devanadera added.

Last Friday, Energy Secretary Alfonso G. Cusi said his office has also received similar complaints, mostly “bill shock.”

“An average cannot be higher

than the highest consumption in the previous months. However, the bill which reportedly reflects average consumption is higher than the highest bill that they have received in previous months,” Cusi said in a mix of English and Filipino during a virtual press briefing last week.

Energy Undersecretary Felix William Fuentebella said in the same briefing that all distribution utilities should adhere to the electric bill advisories set by the DOE and the ERC. “We’ll make sure that the interpretation of Meralco and other distribution utilities are in line with ours.”

The ERC and DOE earlier directed distribution utilities and retail electricity suppliers to defer customer electricity bills falling due within the ECQ “without interest, penalties, fees and other charges.” Likewise, electric bills should be staggered for up to four months.

Continued on B2

SC taps Microsoft for virtual courtrooms

A

mid the quarantine impositions by the government, the Supreme Court said it has partnered with Microsoft to improve the country’s legal proceedings through videoconferencing hearings.

The High Court said the conduct of videoconferencing hearings ensure that cases are heard in a timely manner, during the coronavirus disease 2019 (Covid-19) pandemic, and comply with the government’s social distancing and remote work guidelines.

The initial implementation of the enhanced community quarantine (ECQ) and general community quarantine (GCQ) measures brought challenges to legal proceedings in thePhilippines.

Furthermore, reported infections of Persons Deprived of Liberty (PDLs) with Covid-19 in the different detention facilities restrained the movement and travel of PDLs, judges and court personnel.

As a result, the Supreme Court—under the guidance of the Honorable Chief Justice Diosdado M. Peralta and Court Administrator Jose Midas P. Marquez—teamed up with Microsoft to enable videoconferencing hearings using Microsoft 365, a unified communication and collaboration platform with innovative Office web applications, intelligent cloud services, and world-class security.

On April 27, Peralta issued Administrative Circular 37-2020, directing all litigants, judges and court personnel of 925 first and second level courts nationwide to immediately begin virtual court hearings.

In the first 9 days of piloting videoconferencing hearings, 4,683 PDLs were released,

Globe gets nod to install cell sites along LRT Line 2

By Lorenz S. Marasigan @lorenzmarasigan

T

he Light Rail Transit Authority (LRTA) has allowed Globe Telecom Inc. to build its network along the LRT Line 2 (LRT 2) while Metro Manila is under the modified enhanced community quarantine (MECQ).

LRTA Administrator Reynaldo Berroya said his group has given the greenlight to Globe to install “several” cell cites along the train line that runs between Pasig and Manila.

“This is the perfect opportunity for Globe to improve its services along our route. The ECQ has prevented us from operating, but as they say when a door gets shut, a window opens. Globe can build and expand its capacity while the trains are not allowed to transport passengers,” he said.

LRT 2 has 11 stations that serve as much as 240,000 commuters per

day. It runs between Santolan Station and Recto Station, spanning 17 kilometers.

“We expect that when the ECQ is lifted and thousands of passengers go back to riding our trains, they will find comfort that they will have good and reliable service while they travel,” Berroya said.

Globe President Ernest Cu said the cell sites will improve mobile services for the commuting public and the surrounding areas of the LRT 2. This means commuters may expect better service even while on the train.

“The pandemic has impacted our lives in so many ways. While it has resulted in many challenges, we would like to dwell more on the opportunities for us to improve our services. With LRTA’s support and trust, we are doing our best to give our commuting public a better experience when they return and ride the Megatren once again,” he said.

Century Properties Group income hits ₧1.48 billion in 2019

P

roperty developer Century Properties Group Inc. (CPG) said its net income last year increased by a third to P1.48 billion, from P1.12 billion in the previous year, mainly due to project completions in its residential condominium and the horizontal segments.

Revenues rose at almost the same pace to P14.32 billion, from P10.70 billion in 2018, driven by the completion of more than 1,300 condominium units and 866 affordable house and lot units in Phirst Park Homes Tanza, Cavite and Lipa, Batangas. It also completed its commercial leasing properties, including its Asian Century Center office building in Bonifacio Global City and Century City Mall in Makati.

“With CPG's new business lines affordable housing and commercial leasing taking up 44 percent of the net income, our company’s financial results for 2019 show that we have kept on track with our strategic business expansion. This is a strong testament of our continued commitment to deliver results and value to our shareholders,” said Ponciano S. Carreon Jr., the company’s CFO.

Net income contributions from residential condominium is at 55 percent in 2019 against the previous year’s 76 percent. The company, however, has ran out of vertical projects to build as most of its projects are about to be completed.

Horizontal affordable housing, meanwhile, contributed 25 percent versus 17 percent in 2018, while leasing is now at 19 percent from just 5 percent in the previous year.

The balance came rom the company’s property management business.

The company said it aims to grow horizontal affordable housing and commercial leasing in the medium term to achieve a healthy balance of revenue mix with its vertical developments business. The company undertook a business expansion program in 2014 to serve market demand and diversify revenue streams.

“The company’s balance sheet remained strong with total assets expanding 8 percent to P53.4 billion in December 2019, from P49.4 billion a year ago. Total stockholder's equity also increased 12 percent to P19.6 billion from P17.5 billion,” said Carreon. VG Cabuag

‘Stick to quality in Asia for dividends’

S

a 125-percent increase in daily releases compared to 9,731 from six weeks prior to implementation of Microsoft 365.

Videoconferencing hearings are being done in Metro Manila and select courts in key cities nationwide. Aside from videoconferencing hearings, the SC also allowed the e-filing of complaints, petitions for bail as well as the submission of requirements for bail to minimize physical contact.

“We thank Microsoft for extending Microsoft365 to us, and commend them for supporting the Philippine Judiciary in our quest for digital transformation, with the aim of realizing expedited, efficient, and secure trials that are more user-friendly for court users especially during this time of public health emergency,” Peralta said

in a statement.

In addition, Microsoft 365 will be the official medium for communications by the entire Judicial branch. On May 12, the SC utilized Microsoft’s Stream platform to conduct a webinar titled “The New Normal: Cybersecurity in a Covid-Free, Malware-Free Judiciary.”

“I am so proud to be a part of this historic moment in the Philippines. This is the first time the Supreme Court has moved to a virtual courtroom, to ensure they continue to provide justice and due process duringCOVID-19. This agility creates government resilience and ensures they remain accessible to citizens and communities during these challenging times,” said Andres Ortola, Microsoft Philippines Country General Manager.

tock pickers in Asia seeking to preserve dividend income should focus on high-quality companies rather than attempting to time the market to capture a rebound in economic activity, according to quantitative strategists at Morgan Stanley.

Stock selection is becoming increasingly important as cash-strapped companies cut dividend payouts to preserve capital, strategists including Gilbert Wong wrote in a report dated May 17. Focusing on companies with strong balance sheets and other hallmarks of quality will prove more rewarding than moving between cyclicals and defensive stocks, a strategy that lagged during the past two decades even when executed perfectly, they said.

“We found that even if a strategy could correctly time a switch between cyclical vs. defensive dividend stocks, its performance would still underperform the dividend strategy sticking with quality growth,” the strategists wrote in the note.

The coronavirus disease 2019 (Covid-19) outbreak induced shutdown has compelled many companies to slash dividend payouts, putting

pressure on a strategy favored by investors such as pension funds, endowments and retirees to maintain a steady stream of income over time.

Among the stocks favored by Morgan Stanley’s quant team to ride out the bonfire of the dividends are a number of Hong Kong and Chinese-listed real estate plays such as Sino Land Co., Seazen Group Ltd. and Longfor Group Holdings Ltd. They recommend avoiding Bendigo & Adelaide Bank Ltd., DiGi.com Bhd and Maxis Bhd. The note also warned that companies that trim payouts can underperform the market for a year after announcing a dividend cut.

Morgan Stanley recommends focusing on companies with a low ratio of dividends to earnings, which may imply they can maintain payouts levels more easily.

“Those companies with high historical dividend growth, but with high payout ratios, have limited resilience to dividend policies in downturns,” the strategists said. “This is especially critical given current market conditions where the number of companies facing cash crunches is rising.” Bloomberg News

B2

Companies BusinessMirror

Tuesday, May 19, 2020

PSE STOCK QUOTATIONS

May 18, 2020

Net Foreign Bid Ask Open High Low Close Volume Value Trade (Peso) Stocks Buy (Sell) FINANCIALs

BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PHIL NATL BANK RCBC SECURITY BANK UNION BANK BRIGHT KINDLE COL FINANCIAL FERRONOUX HLDG IREMIT MEDCO HLDG MANULIFE NTL REINSURANCE PHIL STOCK EXCH SUN LIFE VANTAGE

90 60.9 19.4 7 34.05 20.4 15.9 90.1 53.8 0.69 15.6 2.24 0.89 0.29 600 0.74 165 1550 0.95

90.05 61 19.44 7.18 34.35 20.5 16 90.5 53.9 0.88 15.8 2.5 0.94 0.31 698 0.75 169.5 1599 1.05

93 60.95 19.56 7.3 35.6 21.2 16.5 91.2 54 0.82 16 2.51 0.95 0.31 700 0.72 169 1640 1.05

93 61 19.56 7.44 35.7 21.2 16.5 93 54 0.82 16 2.51 0.95 0.31 700 0.75 169.5 1640 1.05

90 59.45 19.4 7.01 34.05 20.4 15.9 90.5 53.9 0.82 15.8 2.5 0.87 0.31 700 0.68 169 1580 1.05

90 61 19.4 7.01 34.05 20.5 15.9 90.5 53.9 0.82 15.8 2.5 0.87 0.31 700 0.74 169 1580 1.05

3578430 1319520 228700 543200 6129400 56600 2010000 679340 1780 2000 5800 135000 13000 10000 10 216000 670 20 1000

324189449 79730170 4456540 3848178 212596435 1166525 31959572 61826482.5 96003 1640 92620 337750 11420 3100 7000 155930 113410 32200 1050

-131070648.5 32503060.5 -1002744 -1562333 -109811730 -10850 -8737368 -

INDUSTRIAL AC ENERGY 2.19 2.2 2.28 2.29 2.19 2.2 6215000 13869710 ABOITIZ POWER 25.75 25.8 25.7 25.8 25.55 25.8 775800 19905400 BASIC ENERGY 0.16 0.165 0.166 0.166 0.16 0.165 300000 48590 FIRST GEN 18.04 18.14 18.28 18.28 17.9 18.14 383100 6904510 FIRST PHIL HLDG 54.9 54.95 55 55 54.85 54.9 23940 1315961 MERALCO 272.8 275 274.4 275 266.2 275 202840 55081498 MANILA WATER 11.78 11.8 11.98 11.98 11.64 11.8 1160900 13737136 PETRON 2.99 3 3.05 3.05 2.99 3 1985000 5968660 2.32 2.34 2.43 2.43 2.2 2.33 46000 103920 PETROENERGY PHX PETROLEUM 10.92 11.14 11.1 11.3 11 11.14 73400 824018 16.98 17 17.72 17.72 16.5 17 1517700 26028154 PILIPINAS SHELL 8.11 8.14 8.25 8.29 8.14 8.14 367300 3018590 SPC POWER 7.25 7.26 7.43 7.5 7.16 7.26 376600 2726666 AGRINURTURE 2.7 2.74 2.94 2.94 2.68 2.7 1560000 4306910 AXELUM 15.24 15.28 15.3 15.38 15.24 15.28 1036000 15839354 CENTURY FOOD 3.86 3.96 3.97 3.97 3.96 3.96 19000 75260 DEL MONTE DNL INDUS 5.06 5.08 5.36 5.4 5.06 5.08 2158200 11151369 EMPERADOR 7.65 7.66 7.75 7.75 7.66 7.66 841900 6506582 SMC FOODANDBEV 59.8 60 62 62.05 60 60 593430 35659252 ALLIANCE SELECT 0.54 0.56 0.55 0.57 0.54 0.55 582000 318140 FRUITAS HLDG 1.32 1.33 1.38 1.39 1.31 1.32 12208000 16205390 GINEBRA 29.6 30.3 30.9 30.9 30 30 30300 914010 JOLLIBEE 136.4 137 139 139 135.9 136.4 895530 122554585 MACAY HLDG 6.72 6.82 6.75 6.85 6.75 6.8 14600 99220 5.72 5.74 6.08 6.08 5.68 5.72 1209000 7002989 MAXS GROUP 0.126 0.139 0.13 0.13 0.13 0.13 60000 7800 MG HLDG PEPSI COLA 1.9 1.91 1.9 1.9 1.9 1.9 258000 490200 SHAKEYS PIZZA 5.7 5.75 6.1 6.29 5.6 5.75 1779600 10227053 1.54 1.64 1.57 1.66 1.54 1.66 352000 550440 ROXAS AND CO 4.3 4.45 4.45 4.45 4.45 4.45 3000 13350 RFM CORP ROXAS HLDG 1.28 1.45 1.36 1.36 1.29 1.29 96000 125760 UNIV ROBINA 126 126.5 130 130 126 126 1977170 250254211 VITARICH 0.79 0.81 0.81 0.82 0.79 0.79 1871000 1491980 CONCRETE B 45.65 62.9 64.8 64.8 64.8 64.8 10 648 CEMEX HLDG 1.04 1.05 1.16 1.17 1.04 1.05 30542000 33144080 DAVINCI CAPITAL 4.01 4.81 4.03 4.03 4 4 57000 228390 EAGLE CEMENT 8.19 8.2 8.5 8.5 8.18 8.19 316000 2590975 EEI CORP 4.86 4.87 5.19 5.19 4.75 4.86 3012700 14759052 HOLCIM 7.88 7.89 7.68 7.9 6.6 7.89 1320600 10124880 MEGAWIDE 5.06 5.1 5.66 5.66 4.9 5.06 9009100 45644246 8.2 8.25 8.29 8.29 8.2 8.25 16500 136025 PHINMA TKC METALS 0.76 0.78 0.75 0.8 0.75 0.78 41000 31050 VULCAN INDL 0.63 0.64 0.64 0.66 0.64 0.64 24000 15420 CHEMPHIL 120 149.9 138 138 138 138 100 13800 CROWN ASIA 1.7 1.74 1.74 1.74 1.74 1.74 8000 13920 EUROMED 2.66 2.67 2.68 2.68 2.5 2.66 1570000 4070500 4.31 4.44 4.59 4.59 4.3 4.5 9000 40620 PRYCE CORP CONCEPCION 23.3 24 23.95 24 23.95 24 1600 38395 GREENERGY 1.25 1.26 1.22 1.27 1.22 1.25 521000 648550 INTEGRATED MICR 5.15 5.19 5.12 5.25 5.05 5.2 65800 338572 IONICS 1.2 1.21 1.17 1.23 1.17 1.2 823000 984070 PANASONIC 3.98 4.71 4.7 4.7 3.96 4.55 9000 36970 SFA SEMICON 1.26 1.27 1.16 1.27 1.11 1.26 5973000 7288870 CIRTEK HLDG 8.2 8.25 8.19 8.26 8.01 8.25 1189100 9672038

241990.0001 -3624070 -2710036 -921568 -9995118 -223986 140800 3300 1336686 17325 43028 40240 5941588 -603914 -6319917 30696098 -263840.0003 3090 22072404 -6800 -544802 693906 -247530 -33183596 -40000 -648 -166820.0001 -256044 -52625 193513 -9362544 -26000 -8890 119400 -0 -143790 -161574

HOLDING & FRIMS ABACORE CAPITAL 0.51 0.52 0.53 0.53 0.5 0.51 2672000 1371790 ASIABEST GROUP 8.01 8.2 8.37 8.37 8.07 8.07 6700 55497 AYALA CORP 640 650 670 670.5 640 640 341240 220711720 ABOITIZ EQUITY 38.25 38.3 39.7 39.8 38.15 38.25 584500 22411545 ALLIANCE GLOBAL 6.04 6.08 6.19 6.21 6.02 6.08 1758500 10646941 AYALA LAND LOG 1.64 1.65 1.69 1.69 1.65 1.65 4614000 7654060 ANSCOR 6.02 6.1 6 6 5.98 6 4500 26970 ANGLO PHIL HLDG 0.5 0.52 0.51 0.51 0.5 0.5 106000 53410 0.51 0.52 0.51 0.53 0.51 0.51 973000 497980 ATN HLDG A COSCO CAPITAL 5.05 5.07 5.17 5.17 4.95 5.05 522900 2626804 4.07 4.1 4.15 4.15 4.01 4.07 6706000 27303230 DMCI HLDG 8.14 8.21 8.22 8.22 8.21 8.21 3200 26283 FILINVEST DEV 2.88 3.84 2.88 2.88 2.88 2.88 1000 2880 FJ PRINCE A GT CAPITAL 388.4 389 402 402 388.2 388.4 222100 87042374 3.51 3.69 3.62 3.62 3.62 3.62 3000 10860 HOUSE OF INV JG SUMMIT 45.2 45.3 47 47 44.5 45.2 1903900 85911825 JOLLIVILLE HLDG 5.3 5.75 5.29 5.75 5.29 5.75 3600 19240 KEPPEL HLDG A 5.16 5.2 5.16 5.16 5.16 5.16 5300 27348 KEPPEL HLDG B 5.23 6.24 5.23 5.23 5.23 5.23 3500 18305 LODESTAR 0.5 0.51 0.53 0.55 0.5 0.5 1126000 566780 LOPEZ HLDG 2.49 2.5 2.61 2.61 2.5 2.5 4411000 11231930 LT GROUP 7.33 7.34 7.35 7.49 7.25 7.34 4209800 30976512 METRO PAC INV 2.69 2.7 2.76 2.76 2.7 2.7 11195000 30447460 PRIME MEDIA 0.75 0.78 0.79 0.8 0.75 0.78 173000 132380 0.97 0.98 0.98 0.98 0.98 0.98 22000 21560 SOLID GROUP SYNERGY GRID 159 162 160 162 160 162 110 17620 SM INVESTMENTS 801 803 807 809.5 798 803 181720 145854320 95.9 96 96.35 96.5 95.9 96 137910 13270523.5 SAN MIGUEL CORP 0.66 0.68 0.68 0.68 0.66 0.66 70000 47280 SOC RESOURCES TOP FRONTIER 130.2 136 136 136 130.2 136 390 51568 0.18 0.19 0.18 0.18 0.18 0.18 550000 99000 WELLEX INDUS ZEUS HLDG 0.139 0.149 0.14 0.149 0.138 0.149 420000 58220

-169680 -55863730 -12237345 -3999972 2091390 -17970 -542186 11489500 -6569 -56863194 5686365 89610 -4510173 -5896180 5211530 -278179 -37968 52440

PROPERTY ARTHALAND CORP 0.5 0.51 0.53 0.53 0.48 0.51 2456000 1251170 ANCHOR LAND 7.32 9 9 9 9 9 400 3600 AYALA LAND 31.35 32.35 31.65 32.45 31.35 31.35 7581600 241845250 ARANETA PROP 1.02 1.06 1.02 1.02 1.02 1.02 28000 28560 BELLE CORP 1.33 1.35 1.35 1.37 1.33 1.33 280000 375330 A BROWN 0.52 0.53 0.55 0.55 0.52 0.53 2960000 1569310 CITYLAND DEVT 0.73 0.75 0.74 0.74 0.73 0.73 52000 38390 CEB LANDMASTERS 3.95 4.01 3.95 4.03 3.95 4.02 131000 525100 0.34 0.35 0.35 0.35 0.345 0.345 1950000 673400 CENTURY PROP 0.285 0.29 0.29 0.29 0.285 0.285 140000 40550 CYBER BAY DOUBLEDRAGON 16.06 16.08 16.02 16.08 16.02 16.08 63500 1019722 6.6 6.7 6.9 6.9 6.51 6.53 35400 239233 DM WENCESLAO 0.285 0.295 0.29 0.29 0.29 0.29 100000 29000 EMPIRE EAST FILINVEST LAND 0.9 0.91 0.92 0.92 0.9 0.91 4490000 4058890 0.78 0.79 0.8 0.8 0.78 0.79 2137000 1678310 GLOBAL ESTATE 8990 HLDG 10.16 10.32 10.2 10.36 10.2 10.32 23800 245406 PHIL INFRADEV 0.78 0.8 0.79 0.79 0.78 0.79 188000 148330 CITY AND LAND 0.71 0.72 0.77 0.77 0.72 0.72 61000 45470 MEGAWORLD 2.46 2.48 2.57 2.6 2.46 2.46 12679000 31856630 MRC ALLIED 0.142 0.143 0.147 0.147 0.141 0.143 3540000 506320 PHIL ESTATES 0.285 0.31 0.3 0.31 0.29 0.31 1020000 303200 PRIMEX CORP 1.45 1.5 1.46 1.5 1.43 1.5 41000 60360 ROBINSONS LAND 14.4 14.62 14.62 14.86 14.34 14.4 1329400 19335658 ROCKWELL 1.46 1.47 1.49 1.49 1.45 1.47 132000 192700 2.69 2.7 2.7 2.7 2.7 2.7 110000 297000 SHANG PROP STA LUCIA LAND 1.82 1.9 1.81 1.9 1.81 1.9 29000 54670 SM PRIME HLDG 28.65 29.8 29.5 29.85 28.5 29.8 5762700 167627760 3.62 3.72 3.61 3.72 3.6 3.72 43000 156330 VISTAMALLS SUNTRUST HOME 1.19 1.2 1.23 1.23 1.19 1.2 893000 1071950 VISTA LAND 3.66 3.7 3.62 3.75 3.48 3.7 2000000 7153370

49490 21369310 227800 -7310 10350 -86556 -73092 192010 -9544640 -2519152 -36161155 -4043160

SERVICES ABS CBN 16.22 16.24 15 16.9 15 16.24 4095100 65567982 GMA NETWORK 4.9 4.92 5.04 5.15 4.9 4.9 809900 4004421 MANILA BULLETIN 0.36 0.37 0.36 0.36 0.36 0.36 240000 86400 GLOBE TELECOM 2184 2218 2224 2224 2160 2218 20585 45363680 PLDT 1205 1206 1219 1219 1191 1205 47445 57185710 DFNN INC 2.8 2.81 2.81 2.81 2.81 2.81 32000 89920 DITO CME HLDG 2.2 2.21 2.15 2.25 2.15 2.2 26211000 57676980 IMPERIAL 1.26 1.55 1.8 1.8 1.6 1.6 42000 73520 - 0.077 0.077 0.077 0.077 0.077 190000 14630 ISLAND INFO NOW CORP 1.71 1.72 1.74 1.75 1.7 1.71 1222000 2101810 0.181 0.184 0.181 0.181 0.18 0.181 930000 167600 TRANSPACIFIC BR PHILWEB 2.33 2.34 2.44 2.54 2.33 2.34 2296000 5543720 10.2 10.24 10 10.36 9.9 10.2 167100 1693624 2GO GROUP ASIAN TERMINALS 16.02 16.98 16 16.02 16 16.02 1100 17602 CHELSEA 3.07 3.12 3.07 3.19 3.04 3.12 269000 833060 39 39.6 41.95 43.5 38.8 39.6 202200 8026155 CEBU AIR INTL CONTAINER 82 82.5 80 84 79.2 82 719170 58184788.5 LBC EXPRESS 13.8 13.9 13.8 13.8 13.8 13.8 1700 23460 LORENZO SHIPPNG 0.73 0.79 0.85 0.85 0.71 0.72 307000 219650 MACROASIA 3.41 3.42 3.73 3.73 3.42 3.42 8097000 28353980 METROALLIANCE A 2.85 2.86 2.7 2.87 2.58 2.85 5246000 14513720 METROALLIANCE B 2.7 2.83 2.5 2.7 2.5 2.7 32000 80600 PAL HLDG 6.9 6.98 7 7 6.9 6.98 9100 63181 HARBOR STAR 0.82 0.83 0.85 0.85 0.81 0.83 350000 287740 0.024 0.025 0.026 0.026 0.024 0.024 23100000 558800 BOULEVARD HLDG WATERFRONT 0.365 0.395 0.38 0.395 0.36 0.395 370000 138400 CENTRO ESCOLAR 6 6.26 6.29 6.29 6 6 3200 19246 5.84 8.26 8.26 8.26 8.26 8.26 100 826 IPEOPLE STI HLDG 0.29 0.3 0.325 0.325 0.285 0.295 6780000 2016050 2.01 2.11 2.06 2.14 2.05 2.12 52000 106900 BERJAYA BLOOMBERRY 5.2 5.21 5.33 5.34 5.17 5.2 2741700 14260994 1.84 1.87 1.87 1.87 1.84 1.87 73000 135100 PACIFIC ONLINE LEISURE AND RES 1.42 1.52 1.53 1.53 1.41 1.52 30000 43940 MANILA JOCKEY 2.18 2.2 2.19 2.19 2.19 2.19 8000 17520 PH RESORTS GRP 2.26 2.49 2.55 2.55 2.51 2.51 37000 93500 PREMIUM LEISURE 0.295 0.3 0.3 0.3 0.295 0.3 1680000 499500 ALLHOME 5.71 5.75 5.8 5.87 5.7 5.75 1631300 9415831 METRO RETAIL 1.59 1.6 1.66 1.66 1.54 1.59 3640000 5808770 PUREGOLD 45.45 45.5 45.95 46.65 44.15 45.5 6019300 273359575 ROBINSONS RTL 68.7 68.8 69.5 69.9 68.5 68.8 475470 32687385.5 129.8 131 129.8 131.1 125.2 131 43740 5678990 PHIL SEVEN CORP 1.1 1.11 1.19 1.19 1.1 1.11 5809000 6550730 SSI GROUP 14.7 14.8 14.68 15.08 14.68 14.7 2035400 30218946 WILCON DEPOT 0.285 0.295 0.295 0.295 0.29 0.29 140000 40700 APC GROUP EASYCALL 7.1 7.25 7.44 7.49 6.91 7.09 52200 374108 290.2 310 290 290.2 290 290.2 30 8704 GOLDEN BRIA 0.208 0.209 0.215 0.215 0.207 0.208 1760000 368300 PRMIERE HORIZON SBS PHIL CORP 5.41 5.97 5.99 5.99 5.97 5.97 1900 11347

-3457060 -17240245 -614050 8700 100820 -94720 -3528395 -6572024.5 -2319010 22935 -8200 8400 -396950 1548231 3852649.0003 -1447590 -3319745 -9519443 -149713 -2139060 -2771362 -14120 -2900 4300 -

MINING & OIL ATOK 10.7 11 10.64 11 10.64 11 24700 265406 APEX MINING 0.95 0.96 0.94 0.99 0.94 0.96 4164000 3992090 -339500 ABRA MINING 0.0009 0.001 0.001 0.001 0.0009 0.001 35000000 34900 ATLAS MINING 1.85 1.92 1.94 1.94 1.9 1.91 256000 492450 BENGUET A 1 1.05 1.05 1.05 1.05 1.05 5000 5250 COAL ASIA HLDG 0.173 0.18 0.196 0.196 0.18 0.18 780000 145220 CENTURY PEAK 2.68 2.73 2.73 2.73 2.68 2.73 294000 792160 135940 6.99 7.15 7.07 7.18 7 7.16 10400 72900 DIZON MINES FERRONICKEL 0.76 0.77 0.79 0.79 0.75 0.76 967000 732970 GEOGRACE 0.2 0.202 0.203 0.203 0.201 0.202 60000 12090 LEPANTO A 0.075 0.076 0.076 0.078 0.076 0.076 950000 72730 LEPANTO B 0.07 0.08 0.08 0.08 0.08 0.08 2060000 164800 MANILA MINING A 0.0063 0.0065 0.0065 0.0065 0.0062 0.0062 50000000 316900 MARCVENTURES 0.54 0.56 0.54 0.54 0.54 0.54 6000 3240 NIHAO 0.98 1 0.97 1.04 0.97 0.98 144000 141900 NICKEL ASIA 1.46 1.47 1.53 1.54 1.45 1.47 8961000 13259160 -2503140 ORNTL PENINSULA 0.48 0.5 0.5 0.51 0.48 0.5 48000 23250 PX MINING 2.3 2.33 2.3 2.35 2.3 2.3 103000 237820 -76380 SEMIRARA MINING 11.46 11.5 11.82 11.84 11.44 11.46 777800 9002004 -1415030 ACE ENEXOR 6.5 6.65 6.52 6.7 6.45 6.69 81200 532473 4014 ORNTL PETROL B 0.0085 0.0095 0.0085 0.0095 0.0085 0.0095 8000000 72000 PHILODRILL 0.0081 0.0084 0.0084 0.0084 0.0083 0.0083 3000000 25100 PXP ENERGY 5.34 5.35 4.63 5.34 4.63 5.34 8226000 41770570 407920

PREFFERED HOUSE PREF A 98.5 99.7 99.7 99.7 99.7 99.7 10 997 AC PREF B2R 498 500 502 502 498 500 40 20000 CPG PREF A 99.5 100 99.6 99.6 99.6 99.6 200 19920 19920 DD PREF 99.4 99.5 99.35 99.5 99.35 99.5 200 19898.5 GTCAP PREF B 982.5 997 997 997 997 997 70 69790 MWIDE PREF 100 100.5 100.1 100.1 100 100 35000 3500300 PNX PREF 3B 101 106.4 106.5 106.5 106.4 106.4 700 74530 997 999 997 997 997 997 12000 11964000 PNX PREF 4 PCOR PREF 2B 998 1030 998 998 998 998 10 9980 PCOR PREF 3A 1018 1019 1019 1019 1018 1018 1000 1018500 SMC PREF 2C 77 77.45 77.45 77.45 77.45 77.45 820 63509 SMC PREF 2E 75 76 75.3 75.3 75.3 75.3 2000 150600 150600 75.6 76.95 75.5 75.5 75.5 75.5 12600 951300 SMC PREF 2F SMC PREF 2G 75.3 75.7 75.7 75.7 75.7 75.7 2000 151400 SMC PREF 2H 75.75 75.95 75.75 75.75 75.75 75.75 5800 439350

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 14.66 15 13.48 14.9 13.02 14.7 819800 11956944 -6912426 GMA HLDG PDR 4.56 4.82 4.83 4.89 4.5 4.55 45000 208190

WARRANTS LR WARRANT 0.71 0.75 0.71 0.72 0.71 0.71 45000 32070

SMALL & MEDIUM ENTERPRISES ITALPINAS 1.92 1.94 1.97 2.03 1.88 1.92 2345000 4554690 485800 KEPWEALTH 6.05 6.23 6.35 6.35 6 6.23 44200 273948 -83164 MAKATI FINANCE 1.75 2.19 1.65 1.75 1.46 1.75 43000 68530 XURPAS 0.58 0.59 0.62 0.62 0.59 0.59 2399000 1427680 56450

EXHANGE TRADE FUNDS

FIRST METRO ETF 83.5 84 85.2 85.2 83.5 83.5 21750 1825181.5 9785

www.businessmirror.com.ph

GT Cap income drops 25% in Q1 on weak auto sales

G

By VG Cabuag

@villygc

T Capital Holdings Inc., the holding firm of the Ty family, said its income in the first quarter slid by 25 percent to P2.54 billion, from last year’s P3.42 billion due to the weak performance of its core businesses of banking and automotive.

Core income fell at a slower pace at 15 percent to P2.8 billion, from last year’s P3.3 billion.

“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. 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,” said GT Capital President Carmelo Maria

Luza Bautista.

GT Capital’s consolidated revenues reached P39.01 billion, down 13 percent from P44.92 billion last year.

Healthy booked real estate sales from Federal Land Inc., as well as higher contributions from the net income of associate Sumisho Motor Finance Corp., supported GT Capital’s performance in the first quarter, the company said.

Lender Metropolitan Bank and Trust Co.’s net income fell 9 percent to P6.12 billion, from last year’s P6.75 billion, while Toyota Motor Philippines recorded a net income of P1.5

billion, 16 percent lower than last year's P1.8 billion.

Toyota Philippines’s consolidated revenues for January to March reached P28.8 billion, some 15 percent slower than last year's P33.8 billion as sales dropped. Toyota had retail vehicle sales of 25,686 units for the period, down from 33,546 units last year.

By the last two weeks of March, however, most of its dealers nationwide were closed, in compliance with the government's implementation of the enhanced community quarantine to contain the spread of coronavirus disease 2019.

Toyota has remained the country’s number one automotive brand with a 36.3-percent overall market share in the first quarter.

“As we saw in Toyota’s first quarter results, 2020 was off to a respectable start. The prospects for the rest of 2020, however, face very significant headwinds brought about by the Taal eruption and, of course, the Covid-19 pandemic,” said GT Capital Auto Dealership Holdings chairman Vince S. Socco.

“We are confident, though, that when the ECQ is lifted, transpor-

tation and mobility will be among the essential drivers of economic recovery. Given the resilience of the Philippine economy and the robust capabilities of Toyota Philippines we believe that we can emerge from this crisis on solid footing,” Socco added.

Meanwhile, Federal Land’s net income almost doubled during the period to P375 million, from P190 million last year. Total revenues grew P3.3 billion, higher by 33 percent from last year. Reservation sales grew 86 percent, while lease revenues rose 40 percent.

Insurer AXA Philippines’ booked a consolidated net income of P367 million for the three months of the year, or more than half lower than last year's P808.4 million.

Net income from AXA's life insurance business reached P355 million for the period, down 62 percent from P945 million last year.

This is is a result of the 30-percent market value decline in the company’s equities portfolio, due to the ECQ period, the company said.

Consolidated life and non-life gross premiums for the period rose 27 percent to P9.5 billion from P7.4 billion last year.

SFA Semicon profit hits $1.8M in Q1 S

outh Korean semiconductor firm SFA Semicon Philippines Corp. said it earned $1.8 million in the first quarter, a turnaround from the previous year's loss of $345,210.

Gross revenues of the locator at the Clark Freeport Zone in Pampanga rose 31 percent to $78.48 million, from $59.84 million in the same period last year.

SFA said it achieved satisfactory top line results on the back of the 49-percent rise in production volumes in the first quarter despite the economic uncertainties created by the coronavirus disease 2019 pandemic.

“The company’s strategic focus, resilience and ability to manage the business continuity risk amidst the global pandemic have impacted positively on the strong financial results in the first quarter of the year,” said Joon Sang Kang, company chairman and president.

The company said it exceeded the performance of the global semiconductor industry which posted revenue growth of nearly 7 percent during the quarter compared with last year according to industry statistics released by the Semiconductor Industry Association.

Kang said the company produced a total of 242 million memory products during the period, an increase of 48 percent from the 163 million units in 2019. DRAM modules bannered its output growth

posting a 42-percent increase to 208 million units, while production of component chips rose more than doubled to 30 million units during the year.

The company said production orders for the first quarter of the year were serviced “satisfactorily.” Additional costs related to logistics on importation of raw materials, provision of lodging accommodations and other necessities are to be reimbursed by its customer through its South Korean parent SFA Semicon Ltd. Kang attributed the strong operational gains to the global marketing strategy of the company as it leveraged its relationship with the SFA Group, a diversified global semiconductor player, as well as its manufacturing efficiencies.

SFA income last year rose 46 percent to $6.63 million, from $4.55 million in 2018. Gross revenues in 2019 rose 41 precent to $322.48 million, from the previous year's $229.29 million.

For the entire 2019, the company produced a total 878 DRAM memory modules, which expanded by 62 percent from the 541 million modules the previous year. A total of 45 million component memory chips and 19 million flashbased memory cards and solutions were produced during the year in review.

“However, the expected positive industry outlook has been dampened by global spread of the Covid-19 pandemic to most parts of the world.

ERC to Meralco: Explain power bill computation Continued from B1

Meralco explains

Meralco clarified how it computed the consumers’ electricity usage and maintained that its meter-reading activities continue to be accurate and transparent.

The company also said the previous three months are considered as low consumption’ months as these were significantly cooler compared to the dry season months of March, April and May. However, consumers said they were surprised when they received their electric bills this month.

Meralco explained that the apparent spike in electricity bills was due to increases in consumption during the ECQ and the high May temperatures.

“Everyone is at home. So, appliances are usually switched on most of the time throughout the day, especially appliances like fans and airconditioners. Airconditioners, which most households would use 6 to 8 hours per day before ECQ, could be used for 12 to 24 hours per day during the ECQ," the company said.

Also, temperatures are currently at a record

high, leading to more frequent use of cooling devices. The May bill is already a result of the actual kWh consumption from the current meter reading, with adjustments already reflected from the previous estimated consumption.

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,” said Meralco Spokesman Joe Zaldarriaga.

To ease customers’ burden of having bills pile up, Meralco said unpaid bills with due date from March 1 to May 15, with bill date from February 21 to May 6, will be converted to four equal monthly installments.

“Meralco promises to provide all the possible options for the utmost convenience of the consumer, bringing back a sense of normalcy and security in this time of uncertainty and turmoil, with the pandemic still affecting us all,” Zaldarriaga said.

“We will continue to explore ways to ease the situation for our consumers bearing in mind their convenience and interest. As soon as there will be new developments, we will most certainly communicate that to our customers,” he added.

The ensuing quarantine and lockdown efforts to contain the virus spread in major economies have resulted in uncertainty and negative prospects

mutual funds

that are anticipated to curtail overall consumer demand and lead to economic contraction around the world,” the company said. VG Cabuag May 18, 2020

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 183.35 -27.09% -12.36% -8.37% -27.21% ATRAM Alpha Opportunity Fund, Inc. -a 0.946 -39.56% -14.62% -9.51% -31.55% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.4621 -37.13% -16.83% -11.19% -33.06% Climbs Share Capital Equity Investment Fund Corp. -a 0.6408 -28.34% n.a. n.a. -28.57% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6677 -19.58% n.a. n.a. -21.38% First Metro Save and Learn Equity Fund,Inc. -a 4.0046 -23.18% -9.38% -7.63% -24.84% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.6181 -25.57% -13.36% n.a.

-27.59% MBG Equity Investment Fund, Inc. -a

74.72 -38.45% n.a. n.a.

-27.69% PAMI Equity Index Fund, Inc. -a 36.5697 -25.98% -11.05% n.a. -28.69% Philam Strategic Growth Fund, Inc. -a 394.98 -23.65% -10.18% -7.33% -25.86% Philequity Alpha One Fund, Inc. -a,d,5 0.8421 n.a. n.a. n.a. -18.25% Philequity Dividend Yield Fund, Inc. -a 0.9453 -25.14% -9.94% -6.68% -26.54% Philequity Fund, Inc. -a 27.6426 -25.29% -9.61% -6.54% -27.06% Philequity MSCI Philippine Index Fund, Inc. -a 0.726 -26.31% n.a. n.a. -28.69% Philequity PSE Index Fund Inc. -a 3.7253 -25.56% -10.55% -6.51% -28.68% Philippine Stock Index Fund Corp. -a 622.68 -25.45% -10.54% -6.72% -28.6% Soldivo Strategic Growth Fund, Inc. -a 0.5742 -36.23% -14.04% -10.38% -32.56% Sun Life Prosperity Philippine Equity Fund, Inc. -a 2.9334 -29.05% -11.36% -7.59% -30.31% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.7144 -25.63% -10.69% -6.64% -28.62% United Fund, Inc. -a 2.6822 -24.88% -8.41% -5.45% -26.58% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 83.5064 -25.34% -10.07% -5.91% -28.6% ATRAM AsiaPlus Equity Fund, Inc. -b $0.8927 -8.23% -2.84% -3.57% -13.2% Sun Life Prosperity World Voyager Fund, Inc. -a $1.2347 -2.05% 2.42% n.a. -10.44% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.4948 -9.82% -5.6% -5.11% -4.35% ATRAM Philippine Balanced Fund, Inc. -a 1.9492 -13.13% -6.06% -3.87% -10.63% First Metro Save and Learn Balanced Fund Inc. -a 2.3171 -9.39% -3.63% -4.87% -11.95% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1818 n.a. n.a. n.a.

-20.44% NCM Mutual Fund of the Phils., Inc. -a 1.7776 -5.58% -2.18% -1.8% -9.45% PAMI Horizon Fund, Inc. -a 3.2987 -8.07% -3.96% -3.3% -12.94% Philam Fund, Inc. -a 14.7449 -8.96% -4.16% -3.41% -13.06% Solidaritas Fund, Inc. -a 1.8269 -12.56% -5.16% -3.25% -14.06% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.1078 -17.05% -6.21% -4.5% -19.57% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.8919 -7.95% n.a. n.a.

-12.19% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.7815 -18.42% n.a. n.a. -21.57% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.7568 -20.74% n.a. n.a.

-23.8% Sun Life Prosperity Dynamic Fund, Inc. -a 0.767 -20.24% -7.26% -6.09% -21.32% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.0378 3.68% 2.04% 1.29% -1.12% PAMI Asia Balanced Fund, Inc. -b $0.9264 -3.58% -1.17% -1.9% -10.74% 1.73% 1.43% -8.72% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.5698 -2.41% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.0596 -1.83% 0.68% n.a.

-6.13% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 363.1 4.17% 3.01% 2.48% 1.48% ATRAM Corporate Bond Fund, Inc. -a

1.9317 2.28% 1% -0.12% 1.56% Cocolife Fixed Income Fund, Inc. -a 3.1742 4.77% 5.14% 5.11% 1.86% Ekklesia Mutual Fund Inc. -a 2.2782 5.13% 2.83% 2.28% 2.39% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4239 6.78% 3.11% 1.84% 2.75% Philam Bond Fund, Inc. -a 4.5133 11% 3.7% 2.3% 3.21% Philam Managed Income Fund, Inc. -a,6 1.2818 6.69% 3.74% 2.02% 2% Philequity Peso Bond Fund, Inc. -a 3.8863 7.25% 3.75% 2.21% 2.59% Soldivo Bond Fund, Inc. -a 1.0209 10.68% 3.37% 1.7% 5.87% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1309 7.94% 4.61% 2.89% 1.79% Sun Life Prosperity GS Fund, Inc. -a

1.7288 7.47% 4.08% 2.45% 1.63% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $469.04 2.98% 2.28% 2.44% 0.18% ALFM Euro Bond Fund, Inc. -a Є214.16 -0.91% 0.49% 0.7% -2.53% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.195 2.15% 2.2% 2.05% -1.01% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0257 1.18% 1.06% 0.96% -0.39% PAMI Global Bond Fund, Inc -b $1.0515 -1.72% -0.6% -0.75% -3.99% Philam Dollar Bond Fund, Inc. -a $2.3955 5.07% 2.71% 2.45% -0.35% Philequity Dollar Income Fund Inc. -a $0.0596431 1.93% 1.48% 1.45% -1.11% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1572 5.36% 2.07% 2.06% -0.57% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 127.58 3.81% 3.12% 2.37% 1.43% First Metro Save and Learn Money Market Fund, Inc. -a 1.0382 2.68% n.a. n.a.

1.16% Sun Life Prosperity Money Market Fund, Inc. -a 1.2791 3.3% 3% 2.54% 1.15% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0421 1.64% n.a. n.a.

0.47% Feeder Fund Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.9 n.a. n.a. n.a.

-9.09% a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago. c - Listed in the PSE. d - in Net Asset Value per Unit (NAVPU).

1 - Launch date is September 28, 2019. 2 - Launch date is November 15, 2019. 3 - Adjusted due to stock dividend issuance last October 9, 2019.

4 - Renaming was approved by the SEC last October 12, 2018 (formerly, One Wealthy Nation Fund, Inc.). 5 - Launch date is December 09, 2019.

6 - Re-classified into a Bond Fund starting February 21, 2020 (Formerly a Money Market Fund).

"While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa. com.ph to see the latest NAVPS/NAVPU."

www.businessmirror.com.ph

Banking&Finance BusinessMirror

Higher capital allocation sought for Veterans Bank

T

he Bangko Sentral ng Pilipinas (BSP) said that the Philippine Veterans Bank (PVB) should consider allocating more than 20 percent of net profits to capital accounts to strengthen its reserves.

BSP Financial Supervision Sector Managing Director Arifa A. Ala, in a digital meeting of the House Committee on Banks and Financial Intermediaries on Monday, said that increasing the allocation could help the bank in meeting minimum capital requirement.

This is part of the discussion on House Bill 6375, which aims to amend some of the provisions in Republic Act 3518 or An Act Creating Philippine Veterans Bank.

“To address the possibility that the 20 percent of net profits that will accrue to the reserve account may not be sufficient to build the capital to a level that meet minimum capital requirement, we suggest that the proposed provision be revisited to provide an option for the bank management to allocate an amount higher than the 20 percent,” Ala said.

As of latest data, PVB’s total equity on consolidated basis was at P3.65 billion in 2018, lower compared to the P4.12 billion notched in 2017.

Meanwhile, the bank operated in net loss amounting to P573.91 million in 2018.

PVB Chairman Roberto F. De Ocampo, for his part, supported the amendment by BSP. “I can understand where she’s [Ala] coming from because we are in the process of building and what she’s [Ala] suggesting gives us a sense

of flexibility,” the former Finance Secretary said.

Ala also suggested that the conduct of the bank’s audit and reporting be done more frequent than annually depending on the situation.

“The audit, the frequency could be monthly or quarterly, depending on the bank circumstances, [must] be set in its internal policies.”

In a meeting last week, the panel tackled the proposal to expand the bank’s authorized capital to P10 billion from the current P100 million.

The new authorized capital, if approved, shall be divided into 75 million common shares and 25 million preferred shares with par value of P100 apiece.

The 75 million common shares shall include the 510,000 common shares previously subscribed and fully paid and stock dividends on common shares, among others. The 25 million shares, meanwhile, shall comprise the original 490,000 preferred shares subscribed and paid and stock dividends on preferred shares.

The unsubscribed portion is open for subscription of current stockholders and other veterans, the bill said.

“This is a bill that is long overdue. I think the charter of Philippine Veterans’ Bank over the years, with all the developments that happened, really needs a number of amendments, very important ones, especially on the matter of capitalization,” Quirino Rep. Junie E. Cua, who also chairs the panel, said earlier.

The panel is set to settle all concerns this week. Tyrone Jasper C. Piad

Money lessons from Michael Jordan

A

S the world Michael Jordan economy believed in investdeals with ing as a tool to grow the negative impact money. He has been of the Covid-19 panable to invest his Genesis Kelly S. Lontoc hard-earned money demic and as many people have been a number of sucpersonal finance in confined to their cessful businesses. homes as a conseHis Jordan brand quence, one beacon of hope who has continues to be one of the most popuemerged is Michael Jordan. lar athletic brands globally.

Michael Jordan is considered He became the first former NBA by many as the greatest basketball player to own an NBA team via the player of all time. He won numerous Charlotte Hornets. He has business inchampionships and individual awards terests in various endeavors related to throughout the course of his playing automotive dealerships, restaurants, career. Apart from being a winner and golf and baseball. He did not put all an icon, there are valuable money lesof his eggs in one basket. He was able sons that can be seen in the way he has to diversify his portfolio. lived his life.

Michael Jordan planned for his reMichael Jordan had a clear goal in tirement. He had a long-term view of life. He wanted to excel in basketball. his profession and entered into longEvery goal has an obstacle. He experiterm brand partnerships to compleenced his first taste of major failure at ment it. His name has been associated a young age. In his sophomore year in with various reputable brands that high school, he tried out for the bashave been with him since his early playketball team but unfortunately did not ing days. He has generally been a good make the grade. ambassador of these brands and they He had two options. He could have have provided him with significant forgotten about his goal or he could cash flow over time. By effectively purhave tried out again. He chose the suing both active income and passive latter. He stuck to his goal, practiced income, he was able to secure a bright hard, improved himself, made it to the future for himself and his family. team and the rest is history. The goal Michael Jordan believed in the concept of giving back to society. He orgamade him resilient. nized golf tournaments where money Michael Jordan prepared for the raised was used for various charities. rainy days. In college, he hit the gameHe supported educational causes. He winning shot that clinched the NCAA pledged millions to support housing title for his university. He then got programs. drafted in the NBA and had a stellar He donated millions for the welfare rookie season. Unfortunately, he broke of the youth. He supported initiatives his foot in his sophomore year. related to health care. When natural Instead of just being idle, he decided calamities struck, his generous heart to focus on physical development to was evident. With the Covid-19 panprepare him well for his return. He also demic, he is once again at the forefront decided to complete his college degree. of providing financial support to variWhile he loved basketball, he realized ous communities. that playing basketball was not forever Great things come from small beand the degree was like his insurance. ginnings. Michael Jordan dreamed Michael Jordan knew how to idenbig, did well in his profession, earned tify and rectify financial mistakes. lots of money, learned from his money As he became more accomplished as mistakes and earned even more money. a basketball player and as he generated In terms of personal finance, his jourmore income, the temptation of living ney is a reminder that with a clear goal an unsustainable mode of lifestyle and good money management, the sky got to him. He developed a gambling is the limit. problem. He would lose thousands and millions due to gambling. This put at Gemmy Lontoc is a Registered Financial Planner great risk his livelihood as well as the of RFP Philippines. To learn more about personal future of his family. Fortunately, he financial planning, attend the 82nd RFP program was able to acknowledge the mistake in May 2020. To inquire, e-mail info@rfp.ph or text and was able to manage his lifestyle better before things became too late. <name><e-mail> <RFP> at 0917-9689774.

Tuesday, May 19, 2020 B3

US firm: Regulators, industry players key to fintech growth

T

By Tyrone Jasper C. Piad

@Tyronepiad

O keep financial technology (fintech) sector’s trajectory in the Philippines, United Statesbased technology firm Ripple Labs Inc. said that government should establish enabling environment through clear regulations while industry players were advised to always adapt to customer needs.

Ripple Southeast Asia Head Kelvin Lee said in an email to the BusinessMirror that regulators play a crucial role in the growth of the fintech industry, adding that the local government and Bangko Sentral ng Pilipinas (BSP) were on the right track in protecting the interest of both customers and the sector.

However, Lee said that they “should continue to establish clearer regulations that can help payments become more seamless and efficient in order to encourage consumers adoption of e-payment and cashless services.” This can, in return,

contribute to Philippine economic growth, he added.

The Central Bank in 2018 released the National Retail Payment System regulatory framework to set guidelines for retail payment activities, with a goal of increasing electronic payment transactions to 20 percent and promoting financial inclusion.

The Ripple regional head added that the government and BSP should be able to strike a balance in placing regulations.

“Over-regulation may be disruptive to innovation and user adoption;

under-regulation may increase risks of financial crime or compliance issues,” he said.

Lee said that Ripple is always in coordination with regulators to address regulatory concerns, conduct “sandbox” testing—or the evaluation of a software in an isolated setting—and even assist in implementing national on-demand liquidity framework.

On the part of fintech players, Lee said that they should be able to have a grasp of the products and services their customers are seeking in order to address pain points.

“In the Philippines, where many are dependent on remittances, customers need secure, low cost, streamlined experience for real-time global payments,” he said.

Ripple is optimistic that more fintech players will be entering the scene given that the country is pushing for financial inclusion.

Lee said that even banks and financial institutions were making their way toward fintech solutions to streamline banking processes.

PHL is ready

The Philippines is ready to embrace the digital platforms for banking services, Lee said, noting that the lockdown has hastened the shift to online payments and transactions.

Citing a study, he said that the volume

of electronic payment transactions in the Philippines rose from 1 percent in 2013 to 10 percent in 2018.

In addition, the Ripple official said that increase in online money transfers coursed through InstaPay is a signal that digital platforms are being adopted amid the “new normal.”

Philippine Payments Management Inc. recently reported that Instapay saw its transactions in April rose by by 32.18 percent to 8.86 million from 6.71 million the previous month amid mobility restriction due to the pandemic. In value, transactions reached P53 billion, averaging at P6,128 per transfer.

“We anticipate that eWallet services will become a basic offering to customers from financial payment operators in the Philippines,” Lee added.

He said that inbound volume growth from markets such as United States, United Kingdom, Middle East and Asia is anticipated.

“Since the ECQ [enhanced community quarantine] has restricted the mobility of Filipinos, electronic payments and online transactions have become safer, more convenient, and healthier options over going to a bank or lining up at an ATM [automated teller machine] to withdraw cash,” Lee said.

Standard Chartered continues giving PPE kits to MM hospitals

S

tandard Chartered Bank (SCB) Philippines announced it is distributing over 6,600 personal protective equipment (PPE) to several hospitals and treatment centers in Metro Manila.

In partnership with the Philippine Business for Social Progress, the bank said it is providing PPE sets that include reusable coveralls, shoe covers and face shield. The bank said it has already distributed 1,000 PPE sets.

These were given to Medical Center Muntinlupa, San Lorenzo Ruiz Women’s Hospital in Malabon and the Amang Rodriguez Memorial Medical Center in Marikina.

“Our healthcare workers and first responders bear the brunt of the coronavirus and they rely on PPEs to protect themselves,” SCB Head of Corporate Affairs, Brand and Marketing Mai Sangalang was quoted in a statement as saying. “We are very happy to be able to help keep

Standard Chartered Bank continues to donate personal protective equipment kits to various hospitals in NCR. SCB Corporate Affairs, Brand and Marketing Head Mai Sangalang (fifth from left) led the delivery of the much-needed PPE kits to Amang Rodriguez Memorial Medical Center in Marikina recently. Sangalang was joined by ARMMC Administrative Officer Nelson Sobredo (third from left), PBSP Program Officer Mareon Villegas (center) and other bank officers.

our frontline heroes safe.”

Other beneficiaries include RITM Muntinlupa, San Lazaro Hospital, UP-PGH, Delos Santos

Medical Center, Victor R. Potenciano Medical Center, San Juan de Dios Medical Center, Rizal Medical Center, Medical Center Taguig, Trin-

ity Medical Center, Cardinal Santos Medical Center, United Doctors Medical Center, World Citi Medical Center, Medical Center Manila, Cruz-Rabe Hospital, Dr. Jose M. Rodriguez Memorial Hospital, Las Piñas General Hospital, and Quirino Medical Center.

Earlier, SCB said it donated P12.5 million to distribute food packs and provide PPE sets amid the coronavirus disease 2019 (Covid-19) pandemic.

Through Caritas Manila and Samahan ng Nagkakaisang Pamilya ng Pantawid, the donation will provide 10,000 food banks to the most vulnerable sector in Luzon.

T he don at ion c a me f rom Standard Chartered Bank Plc.’s $50-million Covid-19 global relief fund for the fight against the pandemic, half of which is allocated for humanitarian groups and nongovernment organizations.

Tyrone Jasper C. Piad

EastWest expects lower profits Private equity fund manager invests for 2020 due to pandemic, ECQ in PHL cold chain logistics operator

E

ast West Banking Corp. revised its revenue projections this year after allocating markedly higher reserves for nonperforming loans (NPLs) amid potential losses due to coronavirus disease 2019 (Covid-19) pandemic and the measures undertaken by government to stem the infection. In a disclosure on Monday, the Gotianun-led bank said such business environment has downgraded its revenue and profit guidance for 2020 as the bottom-line is likely to be dragged by bad loans.

“We were looking forward to another record year, at least P8 billion in income for 2020–until Covid-19 struck. Now, we have to be ready that profits could be lower this year,”EastWest CEO Antonio C. Moncupa, Jr. said. “We have to book ‘anticipative provisions’ for loan losses and may need to continue doing so in the coming months as the economic damage to households and businesses from the virus-induced disruption unfolds.”

EastWest increased its loan loss buffer by nearly threefold to P2.4 billion in the first quarter.

Still, the listed bank saw its threemonth net earnings soar by 75 percent to P2.3 billion on the back of improved margins from core lending and deposit-taking business and higher trading gains. Return on equity stood at 18 percent for the period.

Net revenues surged by 45 percent to P9.6 billion in the first quarter from P6.6

billion in the same period a year ago.

Accounting for 69 percent of topline figures, net interest income increased by 42 percent during the period. Noninterest income, meanwhile, spiked 52 percent due to robust securities trading gains. Operating expenses, excluding loan loss reserves, were higher by 14 percent to P4.6 billion on the back of increased compensation costs.

As of quarter ending-March, total assets inched up 3 percent to P384.1 billion while loans jumped by 6 percent to P261.4 billion. The asset and loan growth were among the lowest in years, EastWest said, attributing it to “less aggressive lending in consideration of the virus.”

Deposits, meanwhile, hiked by 3 percent to P294.3 billion for the period.

Moncupa acknowledged that the recent initiatives of the Bangko Sentral ng Pilipinas, such as policy rates and other relief, can help the banking industry to recover.

“This pandemic is unprecedented and is still playing out. With no historical guide to anchor on, it is difficult to estimate bad debts,”he added. Last year, the bank’s gross revenues and net income stood at P28.70 billion and P6.24 billion, respectively. Shares in EastWest slid by 29 centavos, or 3.97 percent, to finish at P7.01 each amid the 1.13-percent drop for the benchmark index on Monday. Tyrone Jasper C. Piad

I

khlas Capital Singapore Pte. Ltd. (Ikhlas) announced on May 14 that it signed an agreement for an investment of up to $18 million in Glacier Megafridge Inc. (GMI).

Founded in 2005, GMI is one of the leading integrated cold chain logistics service providers in the Philippines, preferred by many local and international blue-chip companies, according to Ikhlas. GMI operates eight major facilities in Metro Manila and key provinces, with over an aggregate pallet capacity of more than 50,000. All facilities are built to international standards, earning industry certifications, such as Hazard Analysis Critical Control Point and ISO 22000 food management system. GMI is currently owned by William Y. Tieng and Arturo C. Yan. Ikhlas, a private equity firm cofounded by former Finance Secretary Cesar Antonio V. Purisima, said its investment will fund GMI’s plans to scale-up capacity in providing end-toend service and to extend geographic coverage nationwide.

“This investment is an important milestone as we embark on our expansion plans,” Yan was quoted in the statement as saying. “At GMI, we believe in mindful growth through strategic and

synergistic partnerships. Together with the strong local and regional network of Ikhlas, we can enhance our value proposition, both in terms of location coverage and service quality. We will work nonstop towards becoming the top cold chain player in the country.”

Even with the strict lockdown period in the Philippines, from March 16 to May 16, 2020, GMI continues to operate as an essential business in food distribution.

The domestic demand for cold chain logistics remains robust. Majority of GMI’s customers, who are engaged in food products and services, require the use of temperature-controlled storage and transportation in their stock management.

“We are excited to be a part of GMI’s growth story, as we believe that the Company has a strong competitive edge with its state-of-the-art facilities and highly experienced management team,” Ikhlas Chairman Dato’ Sri Nazir Razak was quoted in the statement as saying.

“While the current Covid-19 crisis has inevitably resulted in some disruption to global supply chains, we are confident that GMI, as a quality service provider, is well-positioned to grow market share and will prove resilient in weathering this crisis.” Dennis Estopace

B4

Show BusinessMirror

Tuesday, May 19, 2020

www.businessmirror.com.ph

Matt Damon describes ‘fairy tale’ lockdown life in Ireland

L

ONDON—Matt Damon has described living in Ireland during the country’s coronavirus lockdown as like being in a “fairy tale” during a surprise radio interview.

The Hollywood star and his family were in Dublin, where he had been filming Ridley Scott’s The Last Duel, before travel restrictions were imposed worldwide.

The family has been staying in the affluent Dalkey suburb, where celebrities including Bono have homes, since filming was shut down.

Local residents have spotted the actor out and about, and local radio station SPIN 1038 tried for weeks to track him down and get him to come on air.

In an interview Wednesday, Damon also revealed that his eldest daughter Alexia was diagnosed with Covid-19 while at college in New York, but she “got through it fine.”

“Obviously what’s going on in the world is horrible, but I’m with my whole family, I’ve got my kids,” he told SPIN 1038.

“Even in the lockdown, they’re like, ‘You got to stay within two kilometres of your house.’ Two kilometres here, there’s trees and forests and woods and ocean and I can’t think of any place you’d rather want to be in a two-kilometre radius of,” he said. “It feels a bit, you know, like a fairy tale here.”

Damon also praised Irish Prime Minister Leo Varadkar, who is a qualified medical doctor, for working at hospitals one day a week.

“I mean, what a badass. That’s just on another level,” he said.

Damon said he and his family will return to Los Angeles to reunite with their eldest daughter when they can leave Ireland. AP

By Eugenia Last

z

CELEBRITIES BORN ON THIS DAY: Dario Franchitti, 47; Polly Walker, 54; Grace Jones, 72; Pete Townshend, 75.

Happy Birthday: Preparation is the name of the game. Do your due diligence, and you’ll gain the confidence to present and promote what you have to offer. Your changing lifestyle requires you to explore new ways of doing things. Use your intelligence, and be innovative in your approach to work, love and overall happiness. Branch out, and dance to a unique beat.

Your lucky numbers are 7, 18, 21, 25, 34, 38, 42.

a

ARIES (March 21-April 19): Balance will be necessary if you are going to finish what you start. Simplicity and precision will be the paths to getting what you want. Avoid getting dragged into someone’s melodrama. Make a decision based on reality and practicality. HHH

b

TAURUS (April 20-May 20): Strong opinions with facts to back your claims will help you recognize who is in your corner.

Keep a positive attitude, and refrain from showing disappointment if someone chooses to head in a different direction. Live in the moment. HHH

c

GEMINI (May 21-June 20): Handle your finances with finesse. Don’t engage in joint ventures. Put your money, possessions and passwords in a safe place. An offer someone makes will have ulterior motives. Do what’s best for you. Handle a romantic gesture carefully. HHHH

d

CANCER (June 21-July 22): Show everyone what you are capable of doing. Step outside your comfort zone and try something new.

Taking a different approach to an old idea will jumpstart a stalemate you encounter. HH

e

LEO (July 23-Aug. 22): Look at the pros and cons of a situation, and make a compromise to offset any negativity you encounter. Share your ideas and concerns, and suggestions will develop.

Don’t make an impulsive move. HHHHH

f

RS Francisco’s brand of love

BEST-SELLING author, journalist and artist Mitch Albom wrote in one of his best-selling books: “The way you get meaning into your life is to devote yourself to loving others, devote yourself to the community around you, and devote yourself to creating something that gives you purpose and meaning.”

The current life of artist, businessman and philanthropist RS Francisco is probably anchored on the power of Albom’s words.

“These are extraordinary times. The crisis we are facing is worldwide. How we face these challenges is crucial; how we think and decide can make the big difference,” he told us when we spoke to him recently.

Francisco had just come from a most challenging phase in his life as a businessman when his very successful company was thrown into a controversy.

He and his business partner Sam Verzosa were somehow shaken but definitely not stirred. Life’s challenges never made Francisco bitter nor angry. “I have always believed that trials help shape us to be stronger and wiser. There’s always good that comes out of every test that is thrown our way.”

And then this pandemic happened that jolted everyone from our comfort zones. The first thing

Today’s Horoscope

that came to Francisco’s mind was the safety and sustenance of the people around him. “My family, my mother specially, and those who work with us and for us, our people in the company. My friends.”

Quietly, with whatever resources he could gather, Francisco quickly sent help and assistance in whatever way he deemed fit. He also made sure the help would reach those who play vital roles, like the frontliners, along with the marginalized sectors of society, even reaching faraway provinces. “It is during these times that we need to remain hopeful and come together. Those who have more, give more.

It also doesn’t even have to be grand. Just be there for someone if you can, because you do not know what being there can mean to that someone at this time.”

Francisco would check in on his friends from time to time, especially those he knew that live alone or are taking care of their old parents. We learned that he sent groceries to someone we know who lives alone and was too afraid to go to the grocery. We found out he sent some cakes to cheer up a few single moms on Mother’s Day. We still hear about many other wonderful stories from friends and acquaintances about Francisco’s continuing generosity.

The thespian in him even found time to cheer up his fans and theater aficionados with a recent online performance of George de Jesus III’s Asawa at Kabit, a material originally written for the annual Virgin Labfest of the Cultural Center of the Philippines.

It has been exactly a year after Francisco’s father Rodolfo passed away. “That was a most difficult time in my life. I had a lot of things going on in my head. I wanted to unload all the emotions and allow myself to grieve but it was not easy. I cannot explain it. Losing someone so dear opened up a lot of realizations about life, about how fleeting everything can be, about what makes sense and what matters most,” he shared.

The heart of RS Francisco is not only in the right place but is also being felt by many who have experienced his brand of love. It continues to give him purpose and meaning.

VIRGO (Aug. 23-Sept. 22): Handle your financial, legal and health concerns yourself.

If you let someone take over, you will be disappointed with the results. Be open and make suggestions, but when it comes to taking care of business, avoid joint ventures. HHH

g

LIBRA (Sept. 23-Oct. 22): Stay on top of expenditures, responsibilities and excessive behavior. Learn from the experience, and act moderately and in good faith to avoid setbacks.

Personal improvement should entail practicality, not a promise, a product or sales pitch offering the impossible. HHH

h

SCORPIO (Oct. 23-Nov. 21): Be open, attentive and respectful when dealing with others, and you will avoid a situation that can limit you. It’s OK to be different, but don’t let it cost you financially or damage your reputation. HHH

i

SAGITTARIUS (Nov. 22-Dec. 21): A problem or concern regarding a friend, relative or neighbor will escalate if you are too generous or accommodating. Pay closer attention to what’s going on at home or with someone close to you. HHHHH

j

CAPRICORN (Dec. 22-Jan. 19): Make changes at home that will make your life easier. Don’t count on getting help from someone unless you are ready to offer something in return. How you approach a job will reflect how well others respect you.

HH

k

AQUARIUS (Jan. 20-Feb. 18): Make your position clear, and offer only what you are willing to do. Stick close to home, and spend time sorting through what to keep and what to donate to charity. HHHH

l

PISCES (Feb. 19-March 20): Be careful when dealing with others. Don’t be too open about the way you feel or what you plan to do. Someone will use personal information against you if you don’t store your personal information and passwords properly. HHH Birthday Baby: You are entertaining, fun-loving and persistent.

You are opportunistic and helpful.

‘bedhead’ by debbie ellerin The Universal Crossword/Edited by David Steinberg

ACROSS 1 Says “Who?” 5 Conditions 8 Unstated yet understood 13 Awards in Mad Men 15 Almond, for one 16 Animal that swallowed Jonah 17 Hoarders channel 18 Onetime arena fighter 20 Clara Bow nickname, with “The” 22 French silk city 23 Mind reading ability, briefly 24 Geometric art genre 26 / / /, in bowling 28 Part of a molecule 30 Palindromic farm female 31 Slender fish 32 Go for an apple 33 Sales target 35 Tree with a red variety 39 Greek resort island 41 “Neato!”

42 Climate change protocol city 43 Cunningly capture 44 North Pole workers

46 “That’s amazing!”

47 “___ the ramparts...”

49 Actor Parsons 50 B&B cousins 51 California’s most populous inland city 54 Elite groups of invitees 56 Loosey-goosey 57 Pear with brown skin 59 Island near Bora Bora 62 Accepting bribes 65 Buzzing instrument 66 Come to terms 67 Get hitched 68 Word that sounds the same if its first or second letter is removed 69 Angels and Devils 70 Original Beatle Sutcliffe 71 Home to about 4.5 billion DOWN 1 Palm known for its berries 2 Blinds part 3 Longest venomous snake 4 Element with the symbol Na 5 Gerund suffix 6 1987 Vietnam War film

7 Request to an unwanted follower?

8 TV show whose third season aired more than 25 years after its second 9 Exciting kind of moment 10 Provide food for 11 “You win” 12 College Park, Md., athletes 14 Belgrade resident 19 One teaspoon, e.g.

21 California congressman Ted 25 Cussed 27 One on your side 28 Basic concepts 29 Bart or Lisa 33 Heads of colonies 34 Headache relief brand 36 Cuts back, and a hint to the starred answers’ starts 37 School founded by Henry VI 38 Spreadsheet parts 40 Some big ‘dos 45 Discharge 48 ___ beer 50 Odysseus’ kingdom 51 Parade attraction

2 Rockies, for one 5 53 Additional 55 Fifth Avenue retailer 58 Old sayings 60 Sula novelist Morrison 61 Small bit 63 Tailor’s bottom line?

64 Ending for brown. or rice.

Solution to yesterday’s puzzle:

Art

BusinessMirror

www.businessmirror.com.ph

Tuesday, May 19, 2020

B5

Hi-tech scans get under skin of ‘Girl with a Pearl Earring’

T

Still Life by Romeo Tabuena

Casa de Memoria pays tribute to Philippine painters THE 20th auction for Lhuillier-managed Casa de Memoria, Segundo presents close to 300 lots of fine European objets d’art and collectibles. The online auction completes two days of offerings from the weekend of May 30 and 31 using Invaluable as its platform. Proceeds from the online event will support the construction of the emergency quarantine facility (EQF) at Santa Ana Hospital, Manila.

The auction house joins other local art and culture venues as it presents a veritable selection that entices the connoisseurs who remain home with enhanced community quarantine still in place.

The curatorial team has put on display items—from portraiture, to furnishings and silver—thus, enhancing a welllived home style. The Casa de Memoria salutes the frontliners in this two-day virtual auction.

Spotlighted are artworks by three well-respected painters: Tabuena, Alcuaz and Westendorp de Brias. Romeo Tabuena’s (1921-2015) Still Life (Lot 002) is tribute to the international artist’s affair with cubism, painted in 1995. Still Life with Vase and Glass Center (Lot 026) by National Artist Federico Aguilar Alcuaz (1932-2011) is an oil on canvas still life by the painter, acknowledged as Philippine National Artist for Visual Arts, Painting, Sculpture and Mixed Media.

Prolific painter Betsy Westendorp de Brias’ (b. 1927) Summer Nights in Madrid (Lot 024) finds its way to the Casa de Memoria auction book. The oil on canvas is reminiscent of her style. In an interview, Provenance Gallery owner Joanna Preysler notes, “Betsy’s works are a soothing, healing balm—a much-needed treat for the soul and for the eyes, especially in this time of chaos and disorder. She’s very constant and dedicated to her art.... She was born to be a painter. She knew it and she worked on it and she got where she wanted to get.” Westendorp is a Lazo de Dama de la Orden de Isabel la Catolica awardee, bestowed by King Juan Carlos, and a Presidential Medal of Merit for Art and Culture grantee, given by former President Gloria M. Arroyo.

A unique offering that raises the Casa de Memoria diverse auction curation is a lithograph (Lot 009) by Spanish painter Pablo Picasso (1881-1973) of a historical poster of the exhibition Sala Gaspar, Drawings by Picasso, April 1961, with hand-made drawings by the artist. It is signed in plate and dated 1961, in limited edition of 500 copies. It will be remembered that on Auction 17, another Picasso was made available and sold at P280,000.

Casa de Memoria’s Segundo Auction will be held on May 31 at Palacio de Memoria, 95 Roxas Boulevard, Brgy. Tambo, Parañaque City. The online bidding is powered by Invaluable.

Proceeds will go to funding the construction of an EQF in Santa Ana Hospital, Manila. More information is available at hello@casadememoria.com or 0949-1961813.

By Mike Corder The Associated Press

HE HAGUE, Netherlands—Researchers using a battery of modern imaging techniques have gotten under the skin of Johannes Vermeer’s Girl with a Pearl Earring, but tests haven’t answered the key question about the world famous painting’s enigmatic subject.

“Who was the girl?” Martine Gosselink, Director of the Mauritshuis museum in The Hague said in an online presentation Tuesday of new research findings.

“Spoiler alert: No, sadly we didn’t find out who this young lady was and if she ever really existed. But we did get a little closer to her.”

What the 2018 research project did uncover were details including how the Golden Age Dutch master painted the girl and where he got his pigments.

They even confirmed once and for all that the girl has eyelashes and revealed that she is painted in front of a green curtain that has faded from view. Such is the interest in the painting, that even the subject’s facial hair—or apparent lack of it—is the subject of academic debate.

The eyelashes weren’t the only hairs researchers found. Microscopic scans also revealed tiny fragments from Vermeer’s paintbrushes embedded in the girl’s skin. The painting was placed in a purpose-built glass room in early 2018 so visitors to the museum could watch as researchers and their hi-tech machines took what amounted to a full-body scan of the work completed by Vermeer around 1665, which is sometimes referred to as the Dutch Mona Lisa.

The public, however, will have to wait until they can see the museum’s star painting in real life. The Mauritshuis, along with all other Dutch museums and galleries, is closed due to restrictions aimed at slowing the spread of the coronavirus.

The research findings, however, were being placed online, along with explanations from those involved.

Among them, scans that mapped the maze of tiny cracks that have formed in the paint over the years.

They will allow the museum to use this research as a baseline to monitor the health of the canvas in coming years.

Analysis of microscopic paint samples was able to pinpoint where the pigments Vermeer used originated. The white lead that forms the earring comes from the Peak District in northern England,

the ultramarine blue is ground from lapis lazuli found in what is now Afghanistan and the red is cochineal, made from bugs that live on cactus plants in Mexico and South America.

“It’s surprising how much high quality ultramarine Vermeer used in the girl’s headscarf,” said conservator and project leader Abbie Vandivere.

“This blue pigment was more valuable than gold in the 17th century.”

Vermeer, however, didn’t have to scour the world to get his materials, he most likely bought them in his hometown of Delft.

The findings don’t just reveal details about Vermeer’s materials, “but also tell us about Dutch and

world trade in the 17th century,” Vandivere said.

Research also uncovered the order in which he painted the girl on a woven canvas with a gray base layer. As if looking over Vermeer’s shoulder while he was working, research with infrared imaging showed that he began composing the work in shades of brown and black. He then drew the girl’s outline in black lines before working from the green background to the foreground: The skin of her face, her yellow jacket, white collar, blue headscarf and finally the quick dabs of white that make up the pearl. Finally, he signed the top left of the canvas.

“The girl has, sadly, not revealed her identity, but we have got to know her better,” Gosselink said. n

A macro XRF scanner is used to study in minute detail the surface of Johannes Vermeer’s 17th century masterpiece Girl with a Pearl Earring, at the Mauritshuis museum in The Hague, Netherlands. AP

CCP REALIGNS ITS PROGRAMS IN TIME OF COVID-19 IN response to the extended community quarantine and the postCovid-19 recovery situations, the Cultural Center of the Philippines (CCP) is realigning its artistic programs with the goal of protecting lives and livelihoods while continuing to deliver educational and inspiring content to Filipinos on alternative platforms.

The CCP detailed the following strategies toward that goal: 1. Use alternative modes of engagement so that that Filipinos continue to benefit from the educational, inspirational and healing properties of arts and culture; 2. Protect livelihoods in the arts and culture sector by continuing to employ artists in the alternative

production and distribution platforms; 3. Invest in capabilities that equip artists and cultural workers to innovate on methods of production and distribution during the enhanced community quarantine and the postCovid recovery period, and; 4. Collaborate with artists and companies to digitize content in order to create new markets and new job opportunities in the arts.

The following programs to be prioritized consist of Arts and Culture Online, Live Arts on Lockdown, Arts for Therapy and Capacity Building.

Under Arts and Culture Online, the video streaming of archival recordings, HD, edited recordings was rolled out in early April. In the works

are the Time Capsule to Document the Arts in the Time of Covid, and virtual reality (VR) galleries and museum.

The CCP will seek partnerships and collaboration for education, fundraising and communication. Also, the CCP will offer its online resources to supplement home schooling.

The Live Arts on Lockdown program is going to test the waters in June with the Virgin Labfest as a pilot activity for retooling and upskilling artists and production staff for online production and delivery.

The Arts for Therapy Program will develop and implement modules on Arts for Mental Wellness and pursue Arts for Healing activities such as pocket concerts of the Philippine Philharmonic Orchestra, and the

world-famous orchestra at your bedside events.

Under the Capacity Building program, CCP will provide Training Modules for upskilling of artists and cultural workers in art therapy and online technology.

Covid-19 continues to impact all aspects of people’s lives. With quarantine, social distancing and lockdowns, the arts and culture sector has suffered from cancellation of shows and events and closure of venues. With the realignment of its programs, CCP hopes to build on its strengths and keep true to its mission of making arts matter to the lives of Filipinos.

More information is available at www.culturalcenter.gov.ph.

Video shows thief stole van Gogh painting with sledgehammer THE Hague, Netherlands—All it took was a few sturdy swings with a sledgehammer and a prized painting by Vincent van Gogh was gone.

A Dutch crime-busting television show has aired security camera footage showing how an art thief smashed his way through reinforced glass doors at a museum in the early hours of March 30. He later hurried out through the museum gift shop with a Vincent van Gogh painting tucked under his right arm and the sledgehammer in his left hand.

Police hope that publicizing the images will help them track down the thief who stole Van Gogh’s The Parsonage Garden at Nuenen in Spring 1884 from the Singer Laren Museum while it was shut down due to coronavirus containment measures.

Nobody has been arrested in the theft and the painting, which was on loan from another Dutch museum, the Groninger Museum, when it was stolen, is still missing.

Police withheld other footage from inside the museum in Laren, a town east of Amsterdam, to protect their investigation. They also did not air video from outside the museum of the thief leaving.

Singer Laren managing director Evert van Os

stressed in a statement that the footage didn’t show all of the burglary and defended security, which he said had been approved by the museum’s insurance company.

“The burglar broke through a number of doors and several layers of security that had been approved by security experts,” Van Os said. “The footage released does not therefore allow any conclusions to be drawn as to the quality of security at Singer Laren.”

Police said Wednesday that 56 new tips streamed

in from the public as a result of the show. They also said that it’s not clear if the thief acted alone. Police are also seeking information about a white van shown on footage driving past the museum.

The 25-by-57-centimeter (10-by-22-inch) oil-onpaper painting shows a person standing in a garden surrounded by trees with a church tower in the background.

“It looks like they very deliberately targeted this one Van Gogh painting,” police spokesman, Maren

Wonder, told the Opsporing Verzocht show in the Tuesday night broadcast.

The artwork dates to a time when the artist had moved back to his family in a rural area of the Netherlands and painted the life he saw there, including his famous work The Potato Eaters, in mostly somber tones.

Wonder said investigators want to hear from any potential witnesses who saw the thief arrive outside the museum on a motorcycle. She also wants museum visitors to share with police any photos or video they took in the museum in the days before it closed down, to see if anyone was casing the museum before the theft.

“People can help if they now realize that another visitor was behaving suspiciously,” she said. “It would be very helpful if visitors to the museum have photos or video recordings with other people in them.”

Van Os said the museum would draw lessons from the theft, but added: “At the moment, however, the only thing that matters is that the footage should yield useful tips and that the painting should be returned undamaged to the Groninger Museum as soon as possible.” AP

Van Gogh’s The Parsonage Garden at Nuenen in Spring 1884

B6 Tuesday, May 19, 2020

AFPMBAI donates to the uniformed services

Like a BOSS: Hyundai’s bonus for trucks & buses

T

H

YUNDAI Asia Resources Inc. (HARI), the Philippines’ official distributor of personal and commercial vehicles, understands how crucial it is for businesses to adapt to the “new normal” lifestyle by keeping their businesses running and their vehicles moving. To lessen the financial burden of local entrepreneurs and businesses in these trying times, HARI has come up with a solution that will allow commercial vehicle owners to get more during their much-needed Preventive Maintenance Service (PMS): the Hyundai Bonus On Scheduled Service (BOSS) PMS Promo.

This is one of HARI’s various aftersales initiatives under their Active Response, Management, Operations and Resumption (ARMOR) Program to support customers and businesses alike in sustaining and protecting their mobility investment amid the challenges brought on by the COVID-19 pandemic.

The Hyundai BOSS promo is available in all Hyundai Trucks and Buses dealerships nationwide, so commercial vehicle owners from all over the country can enjoy a 15% discount on selected PMS Parts (which include: oil filter, oil gasket, air filter, fuel filter, aircon filter, and air dryer filter cartridge) and a 5% discount on PMS Labor during their scheduled PMS. Apart from that, commercial vehicle owners can also conveniently choose onsite or offsite options for the Hyundai Trucks and Buses Service Team that will be designated to perform the PMS on their vehicles. These services aim to help commercial vehicle owners maintain their capacity to deliver goods and services especially once the lockdown restrictions are lifted, while still following the precautionary measures to further flatten the COVID-19 curve.

“All of us may be struggling in these trying times, but we at HARI are doing

our best so that our Hyundai Trucks and Buses will remain to be the partner of our local business owners in every way,” said HARI President and CEO Maria Fe PerezAgudo.

The Hyundai BOSS PMS Promo is available nationwide for all Hyundai Trucks and Buses owners from May 16 to June 30, 2020 only. To prevent customers from going on unnecessary trips, so as to maintain social distancing, interested customers can book their appointments with their preferred Hyundai Trucks and Buses dealerships through the Hyundai CARES (HCARES) Contact Center e-mail: wecare@hyundai-asia.com, Hyundai Philippines website: hyundai.ph and the Hyundai Philippines Facebook page. Customers must present a copy of their Official Receipt, Certificate of Registration or Service Passport to avail this promo. Per DTI Fair Trade Permit No. FTEB 06267. Series of 2020.

Dream Park at the Pier, the first theme park at sea being readied

T

EST setup has begun on the world´s longest roller coaster at sea, to be installed on board Dream Cruise´s new ship, Global Dream.

In October 2019, Dream Cruises and Maurer Rides announced the world's longest roller coaster at sea on board the new Global Class cruise ship, Global Dream. The "Spike®-Coaster" type roller coaster - called Space Cruiser by Dream Cruises - will be the highlight of the "Dream Park at the Pier”, the very first theme park at sea. What was previously only possible with animations and graphics is now becoming reality as one of the most exciting cruise ship attractions to date is already being set up on land in advance for testing purposes.

In order to keep the assembly and commissioning time for the 2500-cabin cruise ship as short as possible, the roller coaster is currently being built for testing in the immediate vicinity of the MV Werften shipyards in Germany.

Marco Hartwig, Project Manager Maurer Rides explains why the

construction on land is so important: "Among other things, the test setup will be used to test the installation methodology especially designed for ship assembly.

Furthermore, the conductor rail and gear rack along the roller coaster track, which is necessary for the generation and transmission in the electric motor, can be installed on land in advance.

This saves valuable time during the ship assembly. The aim is also to collect all the 93 support base points coordinates after the roller coaster has been completed and then forward them to the shipyard for preparation and positioning for the deck foundations. With the help of this elaborate procedure, we can ensure that the support base points on the deck of the ship are in the correct positions later.”

After the installation, three Spike® vehicles will be put into operation step by step and the system control will be thoroughly tested. Before the roller coaster leaves the test site in Güstrow, Germany, the system will be dismantled and transported to the

shipyard for final assembly.

The first photos of the construction process show the scope and scale of the world's longest offshore roller coaster.

After leaving the station, the ride starts with an acceleration section followed by two closely spaced inclined 90-degree curves. The following two "camelbacks" provide a spectacular and breathtaking launch above the railing and the heads of the passengers, with a maximum speed of up to 60km/h (37 mph.) A 360-degree downward and upward helix form the end of the 303m (994 foot) long track before the vehicles reach the station again.

“Dream Cruises is extremely excited to be working with Maurer Rides to create this spectacular new attraction at sea on board Global Dream. We are thrilled with the progress of the construction of the roller coaster and are excited to unveil this ride to our guests when our ship launches,” said Mr. Michael Goh, President of Dream Cruises.

HE Armed Forces and Police Mutual Benefit Association (AFPMBAI) held a handover ceremony for its Corporate Social Responsibility (CSR) donations to the major services last 14 May 2020 at the Armed Forces of the Philippines (AFP) General Headquarters.

Beneficiaries for the donation were Victoriano Luna Medical Center, Veterans Memorial Medical Center, Camp General Emilio Aguinaldo Station Hospital, Philippine Air Force, Philippine Navy, Philippine Army, Philippine Coast Guard, Bureau of Fire Protection and the Bureau of Jail Management and Penology.

Items donated were essential equipment such as medical ventilators (portable and intensive care units), personal protective equipment, disinfecting solutions, lung ultrasound, and thermal scanners.

The ceremonial handover of donations was led by General Felimon T Santos Jr., AFP Chief of Staff and Chairman of the AFPMBAI Board of Trustees; Retired Major General Robert M Arevalo AFP, AFPMBAI President and CEO and Lieutenant General Erickson R Gloria, The Deputy Chief of Staff, AFP and Vice Chairman of the AFPMBAI Board of Trustees. Representing the major services were: Major General Reynaldo M Aquino AFP, Vice Commanding General of the Philippine Army and AFPMBAI Trustee Major General Pelagio R Valenzuela AFP, Vice Commander of the Philippine Air Force and AFPMBAI Trustee Rear Admiral Adeluis S Bordado AFP, Vice Commander of the Philippine Navy Vice Admiral Leopoldo V Laroya, Deputy Commandant for Operations of the Philippine Coast Guard and AFPMBAI Trustee Jail Chief Superintendent Ruel S Rivera DSC, Deputy Chief for Administration and AFPMBAI Trustee Chief Superintendent Domingo V Tambalo, BFP, Chief Directorial Staff and

AFPMBAI Trustee.

Likewise in attendance were: Retired Major General Rizaldo B Limoso AFP, Head for AFPMBAI Branch Operations; Retired Commodore Ramon S Ochoco AFP, Head for AFPMBAI Corporate Services Group; Jeffrey Matthew Lee Uy, Head for AFPMBAI Social Services, and Angelina Jutie, Head for AFPMBAI NCR Area Branch Operations.

In a statement, the AFP Chief of Staff General Felimon T Santos Jr. lauded the AFPMBAI as one financial institution that has remained operational during the COVID19 outbreak and for its social responsibility programs. “The AFPMBAI has institutionalized CSR as a brand of service to the members by being pro-active in meeting their needs,” he said, “through these programs, the AFPMBAI has always been at the forefront of providing meaningful social services to its members—an initiative that sets it apart from other uniformed services’ financial institutions,” he added.

During the COVID19 crisis, the AFPMBAI has beefed up its services head on by continuing its business operations while others have temporarily ceased, albeit under a skeletal workforce and coupled with a work-fromhome (WFH) setup, in order to assist countless members who need financial services during the challenging times. Recognizing the need to act exigently, proactively, and to decide on important matters in earnest during the crisis, the AFPMBAI likewise continued its management committee/board meetings via online channels and activated its business contingency protocols at the onset.

Part of its initiatives during the pandemic was to ease the requirements for members needing financial services, approved and implemented a low-interest emergency financial service, and likewise expanded the benefits of Members affected by COVID19. These efforts were 100% supported by an engaged workforce nationwide, through its WFH arrangement.

Tulong Kapatid aids QC sanitation teams

A

S part of its corporate social responsibility, Tulong Kapatid, the alliance of foundations of the MVP Group of Companies, extended assistance to the Quezon City government’s waste management teams in line with the Covid-19 pandemic.

Taking part in the undertaking were Metro Pacific Investments Foundation Inc., One Meralco Foundation, PLDT-Smart Foundation, Maynilad, and Alagang Kapatid Foundation of TV5.

The conglomerate’s assistance consisted of face shields, food bags, and relevant implements to some 500 garbage collectors, pickers, river waste management, and street sweepers, who serve as community sanitation frontliners.

Quezon City Mayor Joy Belmonte expressed appreciation to the conglomerate for providing for the welfare of its waste management team which will help protect them from occupational hazards. She said that the protective items would be used in waste operations, especially now that they are in very high demand.

Metro Manila’s largest and most populous urban area, Quezon City had 34 of its barangays placed under extreme enhanced community quarantine, thus increasing household wastes during the said period

“The mandate for Tulong Kapatid to reach out to garbage collectors came from our Chairman, Manuel Pangilinan, who said not to disregard these people who are being exposed daily not only to danger such as broken glass, smoke and chemical inhalation but also to the corona virus. They play a vital role in our society and neglecting them could pose enormous health and environmental issues,” says Metro Pacific Investments Foundation president Melody del Rosario.

One Meralco Foundation president Jeffrey Tarayao noted that the power firm saw their importance in ensuring cleanliness and sanitation in the communities, which is key in fighting Covid-19. He said that the care packages represent Meralco’s gratitude and concern for their wellbeing and of their families.

“The MVP Group of Companies makes sure no one is left behind. The solid waste management are our frontliners who continue to work despite the Covid-19 threat, and keeping them healthy makes us healthy too,” concludes Maynilad Government Relations head Anette de Ocampo.

In photo at the turnover of the assistance at the Quezon City Hall are (from left) Annette de Ocampo, Melody del Rosario, Mayor Joy Belmonte, and Jeff Tarayao.

Sports BusinessMirror

mirror_sports@yahoo.com.ph / Editor: Jun Lomibao | Tuesday, May 19, 2020

RETOUCH ON THE GREEN

Yoo Hyun-ju puts on makeup on the 10th hole during the final round of the Korea Ladies Professional Golf Association Championship won by her fellow Korean Park Hyun-kyung at the Lakewood Country Club in Yangju, South Korea, on Sunday. AP

AWESOME DAY FOR MCILROY

By Doug Ferguson The Associated Press

R

ORY MCILROY delivered the money shot Sunday as live golf returned to television for a Skins game that revealed plenty of rust and raised more than $5 million for Covid-19 relief funds.

McIlroy and Dustin Johnson, who had not won a skin since the sixth hole, had a chance to win the final six skins worth $1.1 million on the final hole at Seminole in the TaylorMade Driving Relief exhibition. Both missed and they returned to the par-3 17th for a closest-to-the-pin contest.

From a forward tee at 120 yards, Matthew Wolff was 18 feet below the hole. His partner, Rickie Fowler, missed the green. Johnson found a bunker.

Down to the last shot, McIlroy barely stayed on the shelf left of the pin, measured at 13 feet.

“Air five,” McIlroy said, alluding to the social distancing in place at Juno Beach, Florida.

The final carryover gave McIlroy and Johnson $1.85 million for the American Nurses Foundation. Fowler, who made seven birdies, and Wolff made $1.15 million for the CDC Foundation.

“I’m proud to be part of an event to entertain people at home on a Sunday afternoon and to raise money for people who need it,” McIlroy said as he played the 18th hole.

Wolff, the 21-year-old Californian with big game and plenty of swagger, earned $450,000 toward relief funds by having the longest drives on two par 5s—356 yards on No. 2 and 368 yards on No. 14.

Fowler’s seven birdies were worth $270,000 in a separate fund from Farmers Insurance, while McIlroy made four birdies in regulation worth $175,000 and Wolff had three birdies for $135,000. Johnson, who showed the most rust, had two birdies for $75,000.

Professional Golfers’ Association (PGA) Tour Charities allowed for online donations during the telecast, raising more than $1 million. The donations will continue until Tuesday. When the exhibition ended, more than $5.5 million had been pledged, starting with the $3-million guarantee from UnitedHeath Group.

Players carried their own bags.

Television had a skeleton crew on the grounds—the play-by-play and analysts were 200 miles away in St. Augustine, Florida, while host Mike Tirico was at his

home office in Michigan. The match went over four hours, primarily because players were at times held in place to give the six TV cameras time to get in position on the next hole.

Mark Russell, the PGA Tour’s vice president of rules and competition, was the only one to handle the flagstick. Bunkers didn’t need to be raked because they were the only match on the course, which closed for the summer last week.

“It was an awesome day,” McIlroy said. “It was nice to get back on the golf course and get back to some sort of normalcy.”

The players wore microphones, though the banter was limited and ended early.

Most of it came from McIlroy, who had to make a short par putt on the second hole for a push. He rolled it in and said to Wolff, “I think you forget I’ve won two FedEx Cups that total $25 million. That doesn’t faze me, youngster.”

Fowler played the best golf and staked his side to the lead with four birdies in a six-hole stretch around the turn, including a 20-footer on No. 11 that was worth two skins at $200,000. He raised his finger and McIlroy said, “Did you hear all those cheers?”

There were no fans, and fewer than 50 people were at Seminole. All were tested for the new coronavirus.

That was the start of golf’s return.

The last live competition on TV was March 12, the first round of The Players Championship. It was canceled the next day, along with other tournaments that either were scrapped or postponed.

Next up is another exhibition match on May 24 down the road at Medalist, where Tiger Woods plays when home.

Woods and Peyton Manning will face Phil Mickelson and Tom Brady in a match billed as “Champions for Charity” that will raise $10 million for Covid-19 relief efforts.

The real show is to return on June 11 with the Charles Schwab Challenge at Colonial in Fort Worth, Texas. The tour has said it will not allow fans for at least a month, and perhaps longer depending on it goes. Players will have access to charter flights and a designated hotel.

RORY MCILROY: It was nice to get back on the golf course and get back to some sort of normalcy.

Trump: Back to normal in golf means big crowds, no masks

P

PRESIDENT Donald J. Trump wants to see golf like it is in the pre-pandemic times. AP

RESIDENT Donald J. Trump’s idea of golf getting back to normal is having thousands of fans who aren’t wearing masks in attendance and “practically standing on top of each other.”

Trump joined the NBC broadcast Sunday of “TaylorMade Driving Relief,” a Skins game involving Rory McIlroy and Dustin Johnson against Rickie Fowler and Matthew Wolff. It was the first live golf on television since the Covid-19 pandemic shut down golf and other sports on March 12.

The Professional Golfers’ Association (PGA) Tour plans to return on

June 11 at the Charles Schwab Challenge in Fort Worth, Texas. The tour has said it will not have fans for at least a month.

“After that, hopefully, it will be back,” Trump said in his interview with NBC host Mike Tirico. “We really want to see it back to normal so when we have all these thousands, tens of thousands of people going to your majors and going to golf tournaments, we want them to be having that same experience. We don’t want them having to wear masks and be doing what we’ve been doing for the last number of months. Because that’s not getting back to normal.

“We want to be back to normal where

‘The Big Ticket’ disappointed in Jacksonville

J

ACKSONVILLE, Florida—Walt Harris pointed to the sky and proudly showed off a “Fighting for Aniah” t-shirt as he entered the arena. He left a few minutes later with tears in his eyes, hardly the result he wanted in his first UFC fight since the death of his stepdaughter.

Alistair Overeem stopped Harris in the second round of UFC’s Fight Night main event

T

HE final episodes of The Last Dance have aired, yet ESPN has one more program to show about the Chicago Bulls’ sixth championship.

ESPN will show Game 6: The Movie on Wednesday night at 9 p.m. EDT, following a rebroadcast of episodes nine and 10 of The Last Dance. The episode will feature game footage captured by five National Basketball Association (NBA) Entertainment cameras and marks the first time that the game has been available to watch in high definition.

The Bulls defeated the Utah Jazz, 87-86,

Saturday, ending what was an emotional return for the heavyweight fighter known as The Big Ticket.

Harris was a slight favorite and the sentimental choice as he stepped into the octagon for the first time since his 19-year-old daughter, Aniah Blanchard, was killed in Alabama.

Harris (13-8) looked as though he would

notch his 14th career knockout when he dropped Overeem in the opening round.

But the veteran regrouped on the eve of his 40th birthday and dominated the rest of the way. Overeem (46-18) sent Harris to the mat for the final time with an unblocked combination early in the second.

Harris never recovered, and the referee

you have the big crowds, and they’re practically standing on top of each other and they’re enjoying themselves, not where they’re worried,” he said. “But in the meantime, they do the social distancing, and they practice that. And they’ve been doing really well. The country is ready to start moving forward.”

No fans or media were allowed for the Skins match at Seminole Golf Club in Juno Beach, Florida. The same policies will be in place next Sunday at nearby Medalist for a charity match of Tiger Woods and Peyton Manning against Phil Mickelson and Tom Brady.

Trump said he knows most of the PGA

Tour players and has played with many of them. That includes McIlroy three years ago.

McIlroy criticized Trump on the McKellar Journal podcast this week for politicizing the pandemic and says he would not play golf with him again.

Tirico raised McIlroy’s name as being among those who have played with Trump and what they talk about on the golf course. The president didn’t bite on McIlroy’s recent comments.

“A lot of them are very political, actually,” Trump said. “Some like my politics very much, and probably some don’t. I guess the ones that don’t, I don’t get to see as much.” AP

called it after a bevy of unanswered shots to the head. Overeem shared a moment with Harris on the mat.

Harris thanked the UFC, his team and his community while fighting back tears.

“I’m sorry I didn’t get the W for you tonight,” Harris said. “You’ve been like my family through everything, and I’m so grateful.... Y’all at home watching, I’m sorry.

I’ll be back better, I promise you. You haven’t seen the last of The Big Ticket. I’m going to go home, recover. I’m going to heal emotionally

and physically, and I promise you I’ll be better.”

UFC President Dane White echoed Harris’a pledge.

“Win, lose or draw, being here is a win for him,” White said. “He got through tonight and who knows what was going through that guy’s body, head, the whole deal.”

Overeem said he offered to train with Harris down the road, hoping it could make both of them better in a stacked division. AP

ESPN to show film about Game Six of 1998 NBA Finals as Michael Jordan hit the game-winning basket with 5.2 seconds remaining to cap their sixth championship in eight seasons.

Executive Producer Gregg Winik—who was a cameraman for NBA Entertainment during that Bulls championship season—said the brainstorming about Game Six started by compiling the last 40 seconds of the game for the final episode of The Last Dance. After they were able to do that, it started to expand into

a project of its own. Winik and his team then took the NBC telecast and started to lay in footage to get the complete product.

“If you would have told me six months ago if we could have done this, I would have said it was impossible,” Winik said. “It features a lot of dramatic imagery and the pictures jump off the screen.”

High definition was still in its infancy in 1998. In fact, the first major sports event to

be broadcast in high definition didn’t happen until Super Bowl 34 in January 2000.

Connor Schell, ESPN’s executive vice president for content, said there were conversations about showing the original NBC broadcast, until discussions revolved around an enhanced presentation.

“It was timed out beautifully and how quick we were able to get it on the air,” Schell said. “To top off this project with this

never-seen-before version of Game Six is an incredible ending.”

The film will feature the original NBC commentary by Bob Costas, Isiah Thomas, Doug Collins, Ahmad Rashad and Jim Gray.

According to Nielsen and ESPN, the first six episodes of The Last Dance has averaged 12.2 million viewers. That includes all airings, as well as video on demand and DVR recordings. AP

B7

ARMSTRONG: THERE’S NO QUIT IN MJ

By Bj Armstrong The Associated Press

I

T took me a little while to realize that Michael Jordan was rarely around when we were on the road together.

We were teammates for parts of five seasons, which means we played more than 200 road games together. Life on the road on an off day gets monotonous; you go to dinner, you go to the movies, sometimes you walk around the city. And whatever we did, Michael usually wasn’t with the group.

He was always in his room. It had to be tough, right? That’s when it hit me: You need to have a certain personality to absorb the public life that comes with being a superstar.

For the last five weeks, for two hours every Sunday night, Michael finally showed us what his life was like in The Last Dance series from ESPN and Netflix.

He made the game look easy.

But being Michael Jordan , and all that came with it, that wasn’t easy.

It all happened gradually and really took off around 1992 when he went to the Olympics and we had won our second championship.

He had just exploded on the scene.

Suddenly, he just couldn’t do the things that we could do. And he never made excuses for it. I remember the little things, now—he stopped shooting before games, stopped warming up, because he thought it could be disruptive to the team. He was like, “I don’t want to interfere with the team.” He always knew our routines and had respect for them. He always made sure that everyone had their space within the group.

He was always aware. He always knew what was going on with the group. He had a huge respect for the team dynamic and what we were trying to do and to trying to achieve together, even though he was clearly this very unique individual player.

This guy was incredible, yet he was most comfortable being one of the guys.

We hadn’t seen a player like him. He could score, he could defend, he could rebound. He was so confident. But underneath that, behind the scenes, I knew Michael Jordan was a country kid from North Carolina, and it was that simple to him. He was a young man, at heart, who wanted to be one of the guys who loved to play and was willing to do whatever was necessary.

Now, did he evolve? Yes. But regardless of all the other things, basketball was always first and foremost.

To me, that was the most impressive thing about watching him on this journey. It was that way in 1984 and it was that way in 1998. Losing, winning, making movies, whatever, he was always committed, no matter what. That is an amazing, amazing accomplishment because it is so difficult.

What we got from watching this, and I can say this because I played with arguably the greatest player to ever play, was that professional sports was never intended to be a one-player show. To me, that’s the brilliance of Michael Jordan.

He was an incredible, amazing individual player who matched his talents to the team, matched the team’s talents to him and he lived in the middle of those extremes. I don’t know how you do that.

I think it was absolutely amazing story, and this series came at the right time because of the current situation that we’re all in with this coronavirus pandemic. And, you know, there were so many lessons to be learned. The biggest one is that there was no quit in Michael Jordan.

He was going to find a way. He never made an excuse. He never, ever allowed himself to have fear about not being able to do something.

And people might say, “Oh, no, nobody can do that.”

Well, I saw somebody do that for five years. And for the last five weeks, we all got to see that.

BJ ARMSTRONG, a Los Angeles-based sports agent who played with the Bulls during the 1991, 1992 and 1993 championship seasons, offers perspective and analysis throughout the airing of The Last Dance series. AP

Sports BusinessMirror

B8 Tuesday, May 19, 2020

mirror_sports@yahoo.com.ph / Editor: Jun Lomibao

THORNY QUESTION FOR YOUTH SPORTS

SPORTS WITHOUT BORDERS Vincent Juico @VJuico Instagram vpjp_j vince.juico@gmail.com

Last dance of ‘The Last Dance’

By Schuyler Dixon

K

The Associated Press

onrad Ott and some of the parents with his Northern California girls volleyball club skipped a popular Florida tournament that is now postponed. They could soon face a similar decision about a national event in Dallas.

A boys baseball tournament organizer in the St. Louis area generated debate by staging an event less than a week after the Missouri governor cleared such gatherings.

These scenarios playing out across the nation illustrate how a return to youth sports amid the coronavirus pandemic is fraught with questions, from the health of everyone who attends to the ethics of potentially putting children in harm’s way in the name of getting back to business.

“Obviously, there’s two sides to this story,” said Rob Worstenholm, whose youth baseball tournament in suburban Saint Louis with social distancing alterations for 50 teams or so was among the first sports activities of any kind since the shutdown in March. “I mean, 50 percent of the people hate me.

But the other 50 percent, I could have run for president.”

The Amateur Athletic Union (AAU) was planning to proceed with a volleyball event it has touted as the world’s largest, scheduled for June in Orlando, Florida. An event that drew nearly 3,000 teams last year had about 500 entrants when it was postponed Friday and moved to mid-July.

Ott’s Absolute Volleyball Club included six of the hundreds of teams that withdrew even as the AAU spent two weeks saying the event would be held with temperature checks, no handshakes and plenty of space between courts at the sprawling Orange County Convention Center.

While some clubs said organizers didn’t make it clear what would happen if a player, coach or parent tested positive for the coronavirus, Ott’s issue was the plan to allow each team’s group to be twice as large as he thought it needed to be.

Politics are at play as well, with California Gov. Gavin Newsom, a Democrat, taking a more cautious approach than Gov. Ron DeSantis, his Republican counterpart in Florida.

“I know my families are very wary about traveling to states that have, they’re trying to rush to open,” Ott said. “My families were just really apprehensive, as was I, about getting on an airplane and flying across country, the hotels, the food. It just seems like a lot to get done in a pretty short amount of time.”

Before the postponement, Tony Carrow of the Nebraska Elite club said his parents were comfortable with what they thought was a low infection rate in the Orlando area. In one of the club’s age groups, opinions were split on two teams, so they were combined into one.

“We had a very strong voice from certain parents that they wanted their kids to go,” Carrow said. “They want to get

SAINT LOUIS RiverCats youth player Carter Herrin, 13, wears a face mask as teammate Mac Floyd, 14, gets an elbow bump from this brother and Assistant Coach Robby Floyd during the Mother’s Day Classic organized by GameTime Tournaments in Cottleville, Montana. AP

back to living their life.”

Since physical risk is inherent in most youth sports, the question of playing your children in a pandemic turns to the perception of risk, according to Scott Kretchmar, professor emeritus of exercise and sports science at the Penn State College of Health and Human Development.

“The ethical issue comes in about necessary risks and unnecessary risks,” Kretchmar said. “And if waiting another two months removes an important, unnecessary risk, then you might argue let’s wait two months, let’s wait three months until the risk is more tolerable rather than pushing the envelope.”

With the AAU’s postponement, the next major event

for volleyball clubs around the country is a USA Volleyball tournament in Dallas in late June. The event is on for now, although Ott said he’s already leaning against traveling with any of his club’s teams. For many clubs, the AAU and USA Volleyball events wrap up the season.

“I would say that those are high-risk events,” said Dr. Richard Pan, a pediatrician and state senator in California. “You’re drawing people from so many different parts of the country. And some of these areas may have a higher rate of this disease and others. But now we’re going to take all those people, bring them to one place, have them mixed together.”

Worstenholm’s baseball tournament last weekend

ended up with about a quarter of the teams he usually attracts. He anticipates keeping for now social distancing measures that include separating players and parents, putting the home plate umpire behind the pitcher’s mound and spraying baseballs with disinfectant. And “unless something blows up,” he is planning events with higher numbers of teams most weekends through the summer.

“I love to see kids play,” Worstenholm said. “But I’ve never seen anything like this. It was like a joy times a hundred. It wasn’t just kids being happy because they’re playing baseball. It was way beyond that.” The adults have to weigh when, and where, that return to play can happen.

Petecio, Lady Spikers make statement vs pandemic

W

ORLD women’s boxing champion Nesthy Petecio remained locked down in Baguio City—but practically has no regrets about the city’s strict protocols—as De La Salle Lady Spikers of all generations expressed a united front against Covid-19 on the third day of the modified enhanced community quarantine (MECQ) on Monday.

With the track oval at the Teachers’ Camp still closed and the national boxing gym in the same facility still undergoing renovation, Petecio had to make do with what is available to stay in shape after two months and almost a week into quarantine.

“All we wish is to get back in training,” Petecio told the BusinessMIrror on Monday. “Even though we are now under GCQ [general community quarantine], the local government [Baguio City] still implements the guidelines, like barangays have their schedule to go to the market or other essential services,” Petecio said.

Baguio City has transitioned to GCQ from ECQ since March and earned the reputation as one of the most successful LGUs in limiting the spread of the virus within its jurisdiction.

“For me, it’s better that way. The volume of people [outside]

remains under control,” the women’s featherweight world champion said.

Petecio also has to wait some more before finally going home to her home in Davao.

“I really miss my family. I want to see them. It’s getting tougher each day,” she said.

Products of the esteemed De La Petecio Salle women’s volleyball program, meanwhile, made a unified statement on Monday morning.

In a video compiled by University Athletic Association of the Philippines Season 71 Most Valuable Player Manilla Santos-Ng, the Lady Spikers showed that they are one with the nation in the battle against the pandemic. ”We, the Lady Spikers, are once again united to aim our arrows in unity to fight this pandemic,” the team’s statement read. “As one team, we fully support all our frontliners who are fighting the battle for all of us.”

Joining Santos-Ng were her fellow MVPs Iris Ortega-

Makati FC goes online

T

HE Makati Football Club went digital to keep its athletes in shape during the enhanced community quarantine (ECQ) and would be extending the online program in the modified ECQ. “As we wait and hope for things to get back to normal, Makati FC, together with our top coaches who have been dedicating their time, energy and knowledge, have carefully designed an online training course for our athletes,” Makati FC CEO SeLu Lozano said.

The program is a holistic approach in teaching that optimizes the overall growth and development of its young athletes and boost their confidence.

The core covers football skills through a target-based system and specific online drills and emphasizes body strength and conditioning. There were also lectures and open discussions between the players and coaches.

“The training is awesome and the coaches are super cool,” said Duke Punzalan after the online workout.

With its 44 years of experience in training and developing young players, Makati FC achieved a milestone by taking its football academy online that other clubs have adopted.

“Thank you Makati FC for making this happen and for giving our boys the opportunity to continuously do what they love,” said Denmark Punzalan, Duke’s father.

Makati FC canceled training since March 13 because of the Covid-19 pandemic.

MEMBERS of the Makati Football Club workout online to stay in shape during quarantine.

Patrona (Season 62), Desiree Hernandez (Seasons 66 and 68), Aby Marano (Seasons 74 and 75), Ara Galang (Season 75) and Majoy Baron (Season 79).

Also paying tribute to the frontliners were Finals MVPs Michele Gumabao (Season 75), Kim Dy (Season 78), Des Cheng (Season 79) and Dawn Santos-Ng Macandili (Season 80).

They were joined by Rookies of the Year Joanne Siy (Season 72) and Melissa Gohing (Season 71), Season 62 Best Spiker Ivy Remulla, Best Setters Chie Saet (Seasons 67 and 68) and Kim Fajardo (Seasons 76, 78, and 79) and three-time Best Libero and Season 67 Best Digger Sher Penano.

Completing the cast were Michelle Datuin, Michelle Madarang, Soleil Yap, Kim Lee, Vanessa Yance, Sally Macasaet, Demelle Chua, Kat Gumabao, Miakka Lim, Paneng Mercado, Cyd Demecillo, May Luna, Gyra Barroga, Arriane Layug, Mika Reyes, and twins Camille and Cienne Cruz. Ramon Rafael Bonilla

FOR five weeks we have been treated to arguably the greatest and the best sports documentary ever made. A lot of takeaways and learnings from the 10 episodes on Netflix like the stories of Scottie Pippen and Dennis Rodman.

Michael Jordan showing some emotion after being asked about being a nice guy. The intense scrutiny of Michael Jordan’s every move on and off the court. Some people thought Sam Smith was out of line with his book The Jordan Rules which I read and it was a good book.

I thought Jerry Reinsdorf should’ve fired Jerry Krause.

The Assistant GM Jim Stack, whose idea it was to get Dennis Rodman, would’ve done as good a job as Krause if not better, without the issues with the players.

Krause had the classic case of the “Napoleon syndrome” or “small man syndrome.” There are times I felt sorry for him but just the way he handled and managed the players overcame whatever pity I had for the guy.

I thought Phil Jackson and Dennis Rodman were kindred spirits. Out of all the teams that Dennis played for, the Bulls were obviously the best in giving him a lot of rope and a lot of space to be himself. In Dennis Rodman’s book Bad As I Wanna Be, Rodman said that “Jordan is the only player I respected because he’s the only guy who I played with who wanted to win as much as I do.”

The scene where Michael Jordan was by himself in his hotel room, you could just feel how fatigued and tired he is from being under a microscope 24 hours a day, seven days a week. I got tired just watching that episode.

It is flat out the greatest and the best sports documentary my eyes have laid on. I’m eagerly awaiting the sports documentaries on Lance Armstrong, Bruce Lee, Magic Johnson’s final season with the Lakers and Kobe Bryant’s, as well which I’m sure will be emotional for millions of Kobe’s fans all over the world.

This generation was able to witness why Jordan is the greatest of ‘em all including those who are fans of another guy who wears No. 23—but that’s another story and a debate I’ll get into next time.

Nascar gives all sports fans a reason to celebrate

MEMBERS of Kevin Harvick’s team celebrate after winning the Nascar Cup Series on Sunday in Darlington, South Carolina. AP

F

INALLY, a reason to cheer.

We’ll take it.

Even from afar.

No doubt, it was downright eerie when Fox came on the air Sunday afternoon for Nascar’s return to racing, a camera hovering over tens of thousands of empty seats at the enormous, iconic speedway in the backwoods of Darlington, South Carolina.

This is the way it has to be until we get to a place—still difficult to see in the age of coronavirus—when it will again be safe to pack our stadiums and arenas and racetracks.

The broadcast team of Mike Joy and Jeff Gordon wasn’t even at Nascar’s oldest superspeedway. They were watching the network-televised restart of American sports from the haven of a Fox studio, about 100 miles up the road in Charlotte.

They were essentially like the rest of us, settling into our recliners, remote controls in hand.

“All other sports are watching Nascar,” said Regan Smith, the lone Fox reporter who was actually at the track, sending dispatches from pit road with his face covered like a Wild West bandit. “They’ve all been in contact with Nascar to see how they’re making it work.”

Then, the green flag waved.

And something strange happened.

Normality.

Yep, it was just another day at the races. The incessant roar of the engines. The squeal of the tires. The crunch of medal when a car slammed into the wall.

If you’re a fan of the good ol’ boys, it was good ol’ fun.

There were plenty of boneheaded moves, like Ricky Stenhouse losing control of his machine on the very first lap.

After waiting 10 weeks for the season to resume, his day lasted less than a minute.

“Pretty embarrassing for myself, our team, our crew guys,” he said. “I feel awful for them. They put a lot of hard work into getting our cars ready.”

Jimmie Johnson had his own cringe-worthy moment.

Looking like a rookie instead of a seven-time Cup champion, he plowed into the back of another car like a distracted driver, ending his day when he was on the verge of winning the first stage.

“Gosh, what I would do to get that corner back to do it over again,” Johnson moaned.

There was even a bit of unexpected drama at the Track Too Tough To Tame when a sponsorship sign attached to the outside wall was rubbed loose by Kyle Busch, shredding debris into the grill of Denny Hamlin’s car.

With his Toyota on the verge of overheating, Hamlin managed to slide in behind another car, a nifty bit of impromptu aerodynamics that caused the flapping piece of vinyl to rip loose, though a yellow flag was needed so workers could repair the wall.

Finally, in a rather anti-climatic finish, Kevin Harvick took the checkered flag with no one else in sight for the 50th Cup victory of his career.

“Great job! Great car!” Harvick screamed to his scaledback crew over the radio. “Thank you guys. Awesome job!

Awesome! Awesome! Awesome!” AP