Believe and Achieve

Home Sea Home .....

2011-10-23T21:07:00.000-07:00

Be one of the homeowners of this exclusive beach community now.

Below are the pictures of their Condo Units in Kembali Coast.

Room for Enjoyment

The main clubhouse features sand-shored swimming pools, beach bars, function rooms, and sports activity areas where you can engage in a claiming Tai Chi session or an invigorating round of beach volleyball.

Land and Water Fun

Release the gentleman farmer in you. At the elegant leisure farm, you can build a big house around which you can grow crops and enjoy the sweet sap of grown fruits. Or you can hit the water on your jet ski or your ravishing surfboard.

Long live Leisure

Here at Kembali, you choose how you can make your own splash. With our fantastic fusion of activities, there's only infinite space for leisure and certainly no room for boredom.

Kembali Coast Residential Beach Resort

2011-10-22T16:49:00.000-07:00

Kembali Coast Residential Beach Resort is located in Samal Island Samal City. Kembali Coast is the first residential-leisure development of its kind in Mindanao, is the perfect tropical getaway. It is only 15 minutes away from Davao City via speedboat.

This Balinese-themed development gives you a taste of high-end resort living 1.8km beach line stretches to welcome you home to your own private paradise.

Leisure:

With Kembali Coast's numerous exotic amenities, every member of the family finds a personal, watery haven. From a long stretch of beach front that houses an aqua sports shop providing day rentals and tutorial programs; from branded aqua sports equipment like Canadian banana kayaks to skiling, wakebourding and kneeboarding facilities, Kembali Coast is every water enthusiast's dreamscape. Lie back on the shore or walk along moors at the docking facilities lined with personal crafts as you watch Optimist sailboats speed by.

more pictures will be uploaded soon.

For inquiries, please contact

Marites D. Salce
0921-249-6253
0932-395-8517

Hostage victims' kin seek justice, compensation

2011-08-22T15:18:00.000-07:00

MANILA, Philippines - It was an emotional press conference Monday morning at Fort Santiago where relatives, a survivor, a legislator, and a lawyer faced the media to recall the tragic hostage incident in Rizal Park that led to the deaths of 8 Hong Kong tourists on August 23, 2010.

Tse Chi Kin, brother of Tse Masa, the tour guide who was killed in the August 23 hostage crisis, was crying as he began to narrate the harrowing experience he had when he learned of his brother's death.

He showed reporters a picture on a computer tablet showing the tourists that were held hostage by Senior Inspector Rolando Mendoza, posing happily before the Rizal Monument in Luneta "I can't believe that my brother is gone," he said.

Tse Chi Hang, a younger brother, spoke with grief and disappointment on the Philippine government's inaction in rendering justice to the families of the victims.

Their mother identified only as Mrs. Tse could not continue with her statement, while crying for the loss of her son.

A lady also seated at the press conference, Lee Ying Chuen, survived the incident. "We discussed to subdue the gunman for ourselves. But we decided not to because we trusted the ability of the Philippine government whose rescue came much too late," was how Lee described her disappointment on how the Philippine government handled their 11-hour ordeal.

Lee also said when she was brought to an ambulance, there was no equipment nor even a single bandage to fix her up. And when they arrived at the hospital, the hospital refused to take them in. Instead they were recommended to be brought to another hospital.

"Its been a year now and we're still angry," said Lee.

She also expressed her disappointment because the government did not even offer an apology or even at the very least try to talk to them. "The only chance we heard that the [Philippine government] talked is when they try to discuss the travel warning. It's all about money," Lee said.

James To, a member of Hong Kong's legislative council, told the press of the 4 demands of the families of the victims.

First, a formal apology from the Philippine government. Second, provide compensation to the victims and families. Third, ask for accountability for officials or persons involved in mishandling the incident. And fourth, improve measures to safeguard tourists.

Mr. To said that 10 days before they came to the Philippines, they went to the Philippine consulate in Hong Kong asking for a meeting with President Aquino. Unfortunately, Mr To said they got no reply. "According to the spokesman, the President refused to meet us."

Jonathan Man, a lawyer of 2 hostage crisis survivors, was asked on the rate of compensation that the families are asking. Mr. Man said he is not sure of the Philippine legal system but if it will based on the Hong Kong system, the law provides specific calculations in compensating victims.

The group went to the office of Justice Secretary Leila de Lima Monday afternoon. According to Mr. Man, they will also discuss with the secretary the Incident Investigation and Review Committee (IIRC) report on the hostage incident.

Oil firms raise pump prices anew

2011-08-22T15:16:00.000-07:00

MANILA, Philippines - Three oil companies raised their fuel prices Tuesday.

Pilipinas Shell Petroleum Corp. raised the pump price of unleaded gasoline by P1.40 per liter; regular gasoline by 90 centavos per liter; and diesel and kerosene by 40 centavos per liter effective 12:01 a.m. August 23.

Chevron (formerly Caltex) and Seaoil also raised their fuel prices by the same amounts, effective 6 a.m. Tuesday.

Other oil firms are expected to follow suit.

Japan ready to act over yen's historic rise: media

2011-08-21T15:58:00.000-07:00

TOKYO - Japan is ready to take action against a further surge in the yen, including market intervention, after the safe-haven Japanese currency hit a post-war record high, local media reported on Saturday.

The government and the Bank of Japan have started discussions over fresh intervention to sell yen and buy dollars on the foreign exchange market, the Nikkei business daily reported.

Japan is ready to intervene and sell yen even on overseas markets if it detects speculative moves to drive the currency higher, an unnamed senior finance ministry official said late Friday, according to the Yomiuri Shimbun.

The mass-circulation daily also said that the central bank is separately considering further monetary easing in tandem with the government's possible yen-selling action.

The dollar slumped to 75.95 yen in intraday trade Friday, beating its previous post-World War II low of 76.25, which it reached days after the March 11 earthquake and tsunami hit Japan.

Investors were flocking to the Japanese currency, seen as a safe-haven unit together with the Swiss franc, amid deepening concern over another possible global recession, traders said.

Because a strong yen hurts Japanese exporters, the nation's main economic engine, Japan stepped into the foreign exchange market earlier this month to dump yen for dollars, and Tokyo has previously signalled that it may do so again.

"The government and the Bank of Japan do not hesitate to carry out market intervention... but as seen in the last case, the impact of intervention is unlikely to last long," the Asahi Shimbun said.

Official data on Monday showed that Japan's economy shrank less than expected in the April-June quarter, fuelling hopes that its recovery from the March 11 quake and tsunami disasters is on track.

Finance Minister Yoshihiko Noda also predicted that Asia's second-biggest economy looks likely to grow again in the July-September quarter -- but also warned of the risk posed by the strong yen to exports and growth.

Noda said Friday that the government would consider what long-term policies were needed to soften the economic impact of the yen if it remained at its current high levels.

Panic, policy cuffs could force new recession: analysts

2011-08-21T15:57:00.000-07:00

WASHINGTON - Another punishing week in stock markets has left European and US leaders looking less and less able to staunch fears of recession that analysts say could turn into a self-fulfilling prophecy.

While economists said the world's mature industrial countries had not yet completely stalled, increasingly they were using the term "negative feedback loop" to define their worry.

In layman's terms panic in financial markets is scaring consumers and businesses into locking up spending, forcing a new economic contraction two years after the "Great Recession" ended.

Governments, themselves under the gun from bond markets and political pressure to cut spending, have diminishing kits of tools to counter the pessimism, they said.

Last week brought new worries into the picture:

- new data showing eurozone growth crawling at 0.2 percent in the second quarter, and Germany only at 0.1 percent;

- warnings, most notably from Morgan Stanley, that the US and Europe were on the precipice of a new recession;

- the failure of the German and French leaders to offer markets a convincing fix to the eurozone debt problems at their summit Tuesday.

That combination sent share markets plummeting, putting the broad-based S&P 500 index of US stocks down 4.7 percent for the week and 15.3 percent lower after a month of economic turmoil.

Britain's FTSE 100 is now down 12.9 percent over a month; France's CAC 40 18.4 percent; and Germany's DAX has been hit even harder, off 9.8 percent for the week and 23.8 percent in a month.

With trillions of dollars lost in paper wealth, sellers have moved their money into the safest havens they can find -- US Treasury bonds, Swiss francs, Japanese yen and others -- meaning it does not help growth.

Economists on both sides of the Atlantic slashed their growth projections.

"Our revised forecasts show the US and the euro area hovering dangerously close to a recession -- defined as two consecutive quarters of contraction -- over the next 6-12 months," investment bank Morgan Stanley said.

"A negative feedback loop between weak growth and soggy asset markets now appears to be in the making in Europe and the US. This should be aggravated by the prospect of fiscal tightening in the US and Europe," it said.

"In the absence of appropriate policy intervention from the European Central Bank (ECB), the Federal Reserve and the US government, it is entirely possible the current downward spiral in the economy and financial markets will become self-reinforcing," said John Silvia, chief economist for Wells Fargo bank.

Governments and central banks are increasingly boxed in on policy, said economists.

In Europe and the United States there is almost no room to lower interest rates to stimulate growth; central banks can fine-tune policy to try to push banks into putting more money into the commercial market, but that it is not clear that it will stimulate economies.

In Europe, where bailouts of Greece, Portugal and Ireland have already strained the richer governments, politicians and the public are reticent to pump more money out that they do not have.

The ECB does not have the power to print money to fuel recovery; and Tuesday's meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel ruled out allowing it to issue region-backed eurobonds to raise money for growth and bailouts.

That was a big disappointment for markets.

"We still need a more meaningful solution in Europe," said Chris Low of FTN Financial. "The ECB is not equipped to solve the debt crisis on its own."

Meanwhile there was pressure on Europe's still-liquid governments to pare deficits by mainly cutting spending, especially France, the eurozone's second largest economy.

The same was true in the United States, where some are calling for an industry-building program on par with the World War II effort that pulled the country finally out of the Great Depression.

But given the August 5 credit downgrade of the government by Standard & Poor's over its growing deficit, and the refusal of conservative Republicans to allow spending, that is a non-starter -- though President Barack Obama is expected to reveal some modest growth initiatives in the next few weeks.

The Federal Reserve has hinted it still has tools to boost growth, and all eyes are on a speech next Friday by Fed chairman Ben Bernanke, expected to reveal what it might do.

(And even that could prove difficult: Republican presidential hopeful Texas Governor Rick Perry declared last week that it would be "treasonous" if Bernanke is seen "printing more money.")

Goldman Sachs warned Friday that already-programmed spending cuts would cut US GDP by more than one percent over the next year.

"Just offsetting the expiration of existing (stimulus) measures looks like a challenge, let alone enacting policies that exert a net positive influence on growth in 2012."

Wall Street suffers worst selloff in 2 years

2011-08-05T06:10:00.000-07:00

NEW YORK - Investors fled Wall Street in the worst stock-market selloff since the middle of the financial crisis in early 2009 in what has turned into a full-fledged correction.

The Dow and the S&P tumbled more than 4 percent on Thursday and the Nasdaq lost 5 percent on fear the United States is staring at another recession and that Europe's sovereign debt crisis is swallowing two of its largest economies.

Analysts predicted further losses even though stocks have fallen on nine of the last 10 days. Two-year Treasury yields fell to a record low as investors sought safety in short-term government bonds.

"People are throwing in the towel because they can't find relief on any front," said Milton Ezrati, market strategist at Lord Abbett Co. in Jersey City, New Jersey, which manages $110 billion in assets.

The S&P 500's drop puts it more than 10 percent below its April 29 high, considered a correction. Nearly 14 billion shares changed hands, the busiest trading day in more than a year. Decliners beat advancers on the New York Stock Exchange by about 19 to 1.

The market's recent malaise stems from a number of factors. US economic data has worsened, suggesting slowing growth from already sluggish pace in the first half. Europe's sovereign debt crisis has defied remedies and threatens to engulf large euro-zone economies Spain and Italy.

"The debt troubles in Europe, especially with the yields on Italian and Spanish government bonds soaring, are making investors gather as much liquidity as possible," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.

The Dow Jones industrial average was down 512.46 points, or 4.31 percent, at 11,383.98. The Standard & Poor's 500 Index fell 60.21 points, or 4.78 percent, at 1,200.13. The Nasdaq Composite Index lost 136.68 points, or 5.08 percent, at 2,556.39.

Some 13.92 billion shares changed hands on the New York Stock Exchange, NYSE Amex and Nasdaq, the highest since June 25, 2010, and well above the daily average of around 7.48 billion.

Losses occurred in all sectors. Among stocks hitting new 52-week lows were Bank of America, down 7.4 percent at $8.83, Citigroup, down 6.6 percent at $34.81, and Hewlett-Packard, down 5.1 percent at $32.54.

Among sectors, losses in energy and materials outpaced others, with S&P energy down 6.8 percent and materials down more than 6.6 percent.

US crude futures settled down $5.30 to $86.63 a barrel in New York.

The CBOE Volatility index jumped 35.4 percent to 31.66, its highest since July 2010. It was the biggest rise since February 2007.

Overseas, the European Central Bank signaled it was buying government bonds in response to a deepening European debt crisis. In Japan, the government intervened in currency markets to stem recent gains in the yen.

On Friday the government releases July's payrolls report, a closely watched number to gauge the US economy.

Chinese 'pressure tactics' pose risks to investors - report

2011-08-05T06:09:00.001-07:00

MANILA, Philippines - China’s “pressure tactics” pose risks to firms having interests in the West Philippine Sea (South China Sea) and could hinder the development of the Philippines’ oil and gas reserves in the region, according to a multinational risk consultancy.

In a report released to its clients last July 28, Pacific Strategies & Assessments (PSA) said the tensions in the Spratlys indicate that investors would likely face “serious and costly risks” in their operations.

“While the possibility of a high-level military conflict in the region remains remote in the future, Chinese pressure tactics have shown that the risks faced by non-state oil and gas investors in the South China Sea (SCS) will clearly not be limited to armed conflict in the region,” it said.

PSA, whose clients include multinational firms and embassies, said a prolonged territorial dispute would be the primary hindrance to the development of oil and gas reserves in the region.

“Past and recent developments in the SCS have underscored that a protracted multilateral territorial dispute would be the foremost stumbling block in efforts to commercially develop the oil and gas reserves in the region,” it added.

The Philippines, China, Brunei, Malaysia, Vietnam and Taiwan are claiming parts of the Spratly Islands in the West Philippine Sea.

“Notwithstanding the opportunities in the oil and gas sector, the commitment of Philippine government policies and support vacillate depending on the priorities of the incumbent administration,” the report read.

“This adds to the risks for potential and current oil and gas investors in the Philippines. China, for its part, is expected to maintain its pressure on oil and gas investors in the region,” it added.

PSA, nevertheless, said the Aquino administration had indicated a serious stand to support the gas and oil potentials of the country.

It noted that the government has prodded British firm Forum Energy into exploring Service Contract 72 that includes the Recto Bank (Reed Bank) off Palawan.

PSA, which has offices in Manila, Hong Kong, Shanghai, Beijing, Bangkok, Milwaukee and Sydney, said surveys on SC 72 alone showed 96 billion cubic meters of natural gas potential and 440 million barrels of oil potential.

“The figures are greater than the natural gas reserves of the $130-billion Malampaya project, also in Palawan, as well as the oil reserves in Thailand,” it said.

PSA said the possibility of earning twice the amount from the combined Malampaya project and SC 72 is expected to be a major motivation for the Philippines to remain committed to its territorial claims.

The report noted that the Philippines is heavily dependent on oil imports from the Middle East, with about 90 percent of its oil imports coming from the region.

“The potential oil and natural gas reserves in the South China Sea could prove to be significant in reducing the country’s dependence on Middle East oil,” PSA said.

The Philippines has expressed readiness to bring the territorial dispute in accordance with international law before the United Nations. China, however, said the issue should be resolved through direct negotiations among claimant countries.

DBP files raps vs Ongpin et al for questionable loans

2011-08-05T06:05:00.000-07:00

MANILA, Philippines (1st UPDATE) - The Development Bank of the Philippines (DBP) has filed criminal and administrative complaints against former DBP President Rey David, businessman Roberto Ongpin, and 26 other persons over P670 million in loans granted to Ongpin.

DBP President Francisco del Rosario said DBP Assistant Legal Counsel Benjamin Pinpin, who was found dead this week, apparently by suicide, had been included in the investigation into the loan transactions.

DBP lawyer Zenaida Ongkiko-Acorda filed the complaint at the Office of the Ombudsman.

The complaint alleges that a day after the second loan was approved, Ongpin bought P637.5 million shares of Philex Mining Co. from DBP at P12.75 per share. Less than a month later, he sold them for P21 a share to Philex Chairman Manuel Pangilinan.

DBP accuses David and Ongpin of "connivance" in a transaction that, it says, resulted in a P412.4 million opportunity loss.

It accuses David of "exposing DBP to high lending risks" in approving the loans to the Ongpin company which, it said, was undercapitalized.

It says the bank skirted many regulations to grant the loan, the second of which was approved in one day.

The complaint says these are signs of a "behest loan."

Ongpin and David have previously said the loans were proper and also paid.

David today said he was "surprised it comes at this point when the suicide of Attorney Pinpin has happened. They (the present board) have taken this tact as a squid tactic to mask the real cause of the suicide which seems to be a result of their harassment of Pinpin."

In what police said appeared to be a suicide note, Pinpin indicated he had been pressured to cite former officials of the bank for questionable transactions.

Ongpin associate Josephine Manalo, who is also named in the complaint, said Ongpin would release a statement later today.

Controversial deals

In a special report last May, abs-cbnNEWS.com published "DBP-Ongpin-Philex controversial deals detailed," which discussed a controversial loan extended by DBP to Deltaventure Resources Inc. (DVRI) amounting to P510 million.

DVRI used the loan proceeds to purchase the bank's shares in Philex Mining, a listed company that the group of businessman Manuel V. Pangilinan wanted to control.

The loan and the stock transactions occurred in late-2009.

DBP was then led by David.

David had said all the transactions followed banking rules and passed through necessary credit checks. He also said the bank earned hefty sums from trading the Philex Mining shares, resulting in record profits for the bank that year.

In a letter to ABS-CBN News, Ongpin also stressed that the transactions were above-board. The current DBP board initiated an internal audit of these loan-and-stock deals early this year.

Several officers of the bank were identified as having been involved in the processing of the loan and stock transactions.

Multipurpose ID system available by end-July

2011-07-14T04:54:00.000-07:00

MANILA, Philippines - The Social Security System (SSS) will launch a unified multipurpose identification system by the end of the month.

The new ID can also be used for Government Service Insurance System, Philhealth and Pag-ibig purposes.

SSS president Emilio de Quiros was quick to clarify that the new ID is not a national ID as only members of the four government agencies are covered. He said other agencies like LTO or NBI may eventually be included in the unified ID.

He said those who will be given the new ID are new applicants and those who have earlier applied but were not yet issued SSS IDs. Those with existing IDs need not yet apply for the unified ID as the current one will still work. If a member wants to get the new ID even if he or she has the current one, a payment of P300 will be required.

The new card, a sample of which was shown to ABS-CBN, contains a microchip and magnetic strip. These security features will enable SSS in the future to use the card for the disbursement of loans or benefits of members, serving as some sort of an ATM for members.

SSS is spending P260 per card for 29 million members of the pension fund. Some 600,000 cards will be initially released for those who had earlier applied and around 120,000 for recent applicants.

New members have welcomed the new ID, but one member who has been trying to claim her ID for nearly 2 years now said the process of releasing the new ID must be hastened. According to her, while the new ID is remarkable, it will be worthless if not released on time.

Customs files raps vs own senior staff

2011-07-14T04:51:00.000-07:00

MANILA, Philippines - The Bureau of Customs (BOC) filed on Thursday criminal charges before the Department of Justice (DOJ) against two of its senior officials for allegedly fraudulently approving the refund of duties and value added taxes (VAT) and the issuance of Tax Credit Certificates in favor of an oil importing company that "defrauded government some P99-million."

In a news conference, Customs Commissioner Angelito Alvarez bared that lawyers Reynalo Nicolas, former Deputy Commissioner for Assessment and Operations Coordinating Group, and Elvira Cruz, former officer-in-charge and now collector of the Sub-Port of Mariveles are charged for enabling petroleum products importer Cross Country to secure millions in refund of duties and taxes.

"Nicolas and Cruz are accused of usurpation of authority for acting favorably on false claims that enabled petroleum products importer Cross Country to secure a P99.4-million refund of duties and taxes it paid on its oil shipments covered by import entry number C-100-09, C-101-09 and C-102-09," Alvarez said.

Said shipments cover the period September 2009 to September 2010.

SUV registered under Butuan bishop's name

2011-07-12T16:14:00.000-07:00

MANILA, Philippines - A 2009 silver Mitsubishi Montero Sport parked at the bishop's palace in Butuan has been spotted by an ABS-CBN News team.

Based on the records of the Land Transportation Office, the vehicle was purchased in September 2009 and was registered under the name of Bishop Juan De Dios Pueblos.

The purchase was sealed 2 months after the Philippine Charity Sweepstakes Office (PCSO) released P1.7 million that was deposited in BPI Butuan.

Lawyer Alim Pangandaman, director of the Department of Transportation and Communications (DOTC) in the Caraga region, said his office verified the information.

However, pro-life groups and other lay leaders said there is nothing illegal about the PCSO donating luxury vehicles to bishops, even if these are registered under their names.

Lawyer Romulo Macalintal said the donations are made "in the service of the church."

A group is now collecting more than P8 million to be donated to the CBCP.

The amount is the cost of the 7 vehicles purchased through PCSO funds. They are leaving it up to the CBCP whether to use the money to pay the PCSO or buy replacement vehicles.

PCSO chairperson Margie Juico, meanwhile, cleared the bishops of any wrongdoing.

At a mass tuesday at the PCSO, Juico said there was no malice in the bishops' request.

She also praised the CBCP for apologizing to the public.

Juico said they consider the church as a partner in public service.

For Retired Lingayen-Dagupan Archbishop Oscar Cruz, meanwhile, there is no excuse for the the actions of his colleagues.

"Kulang kasi sa delikadeza, sorry to say, mali ang mga kapatid kong mga obispo," he said. "Ang tubig pag may kaunting dumi, marumi pa rin."

Cruz considers the controversy a blessing in disguise, which agents of the church like him can reflect on.

The cbcp is leaving it up to the bishops concerned whether to return the vehicles.

Their decisions may be known during the continuation of the Senate hearing into the PCSO fund mess on Wednesday.

Massacre victims’ kin seek audience with PNoy

2011-07-12T16:09:00.000-07:00

MANILA, Philippines - The families of the victims of the Maguindanao massacre is requesting an audience with President Benigno Aquino III amid rumors he is talking to the camp of suspended Autonomous Region in Muslim Mindanao (ARMM) Governor Zaldy Ampatuan regarding the latter’s offer to become state witness.

In a letter, the families said, “the greatest fear of the heirs of the victims, as well as state witnesses, whose families were subjected to death and threats are very much afraid of what the government is allegedly doing to grant [him] request as state witness.”

The families, through a letter request from lawyer Nena Santos, said the granting of Ampatuan’s supposed request “will destroy the massacre cases as we have already started the trial of 89 accused, including Andal Jr. and Andal Sr.”

In an interview with ABS-CBN News, lawyer Redemberto Villanueva clarified his client has no intentions of being discharged as a state witness to the notorious case, but is only seeking security via the government’s Witness Protection Program (WPP).

However, Presidential spokesperson Edwin Lacierda said Ampatuan's statement is "insufficient right now," but it is still being studied and assessed in connection with the evidence he can offer.

The kin of the victims raised their contentions following news that Ampatuan has turned his back against his family. They questioned Ampatuan’s motives.

“Please allow us, including the private prosecutors who worked since day one to explain and express our dissent in accepting Zaldy as state witness,” the families said.

Zaldy tags Arroyos to poll fraud for Zubiri

2011-07-12T16:07:00.000-07:00

Mike Arroyo's lawyer denies allegations

MANILA, Philippines (1st UPDATE) - Suspended Autonomous Region in Muslim Mindanao (ARMM) Governor Zaldy Ampatuan is also cutting his ties to his boss, former President and now Pampanga Representative Gloria Macapagal Arroyo.

After linking his brother and father to the Maguindanao massacre, Ampatuan said Arroyo and her husband Mike were responsible for the poll fraud in Maguindanao in 2007 that allowed now Senator Juan Miguel Zubiri to snatch the last Senate post.

He said he is willing to testify and put closure to the case.

In an exclusive interview with ABS-CBN’s Anthony Taberna inside his prison cell, Ampatuan said, “grabeng dagdag-bawas ang nangyari sa Maguindanao…Ang alam ko lang umabot sa puntong nagkaroon ng palitan ng official ballots na pati nga ako, na taga-Maguindanao during that time, nabigla (There was widespread cheating then. Even I was shocked).”

He said the plan, spearheaded by the then First Gentleman, kicked off months before the mid-term elections, or in January 2007.

He said the plan also involved his father, Andal Sr., who acted as the Arroyo’s errand boy.

Zubiri win

“Nung time na yun, nasa Century ako sabi ko, ‘Saan kayo galing?’ Sabi niya ‘Galing kami sa Makati’ kasi pinatawag sila ni First Gentleman Arroyo,” he claimed.

He said Arroyo's instruction was to ensure that then seeking Senate re-electionists Benigno Aquino III, Panfilo Lacson and Alan Peter Cayetano got “zero” votes.

He said the president’s husband justified it as such: “Hindi pwede manalo si PNoy, dahil naging presidente ang nanay, sikat na pamilya, baka may pag-asang maging presidente. Naging presidente nga. Si Senator Lacson, dahil masyadong maingay, dapat patahimikin. Tapos si Senator Cayetano, tinulungan ang tatay maging senador, tinulungan ang kapatid, tapos nung nagpapatulong si GMA, bale-wala (Aquino is not supposed to win because he is popular and may become president. Lacson could not win because he is too critical of the government. Cayetano could not win because he did not help GMA).”

The votes were eventually padded in favor of Zubiri. The latter’s win there spawned an election protest from Aquilino “Koko” Pimentel III, who refuses to let go of the issue until now.

Ampatuan said his father had received money during the meeting with the former First Gentleman.

The deceit did not end there, he said. The then president also sent additional money to cover up any loopholes in the plan.

Ermita’s call

Ampatuan claimed then Executive Secretary Eduardo Ermita had to call him several times even in the wee hours of the morning.

“Ang sabi niya, Zaldy. Sabi ko, ‘Ano yun sir?’ Ang sabi niya, ‘dapat masagot nating mabuti yang problema na yan.’ Sabi ko, ‘Sir, paano ko sagutin? Tinuruan pa niya ko ng ganyan-ganyan. Ang sabi ko, ‘Sige. tapos noong ano, sabi niya dpat maayos yan’ (Ermita told me to fix all loopholes. He taught me how).”

Ermita said it was an instruction from the higher-ups.

Ampatuan said he hopes his testimony could still help in the resolution of the case even if it has long passed.

Nonetheless, he said the government could further its case if it gets hold of then Maguindanao election supervisor Lintang Bedol, who is now believed to be in hiding.

FG Arroyo denies claim

For his part, the former First Gentleman denied giving the former Maguindanao governor money to ensure the 2007 election victory of Zubiri.

"Former First Gentleman Mike Arroyo is appalled at the accusation, attributed to former [Autonomous Region in Muslim Mindanao] Gov. Zaldy Ampatuan, that he met with, and gave money to, Andal Ampatuan, Sr/ for the purpose of manipulating the 2007 elections in favor of Sen. Miguel Zubiri. Mr. Arroyo reiterates that he has never interfered in any election. He has certainly never spent money to illegally alter election results for or against any candidate," Arroyo's lawyer, Ruy Rondain, said.

"He therefore categorically denies that he gave Andal [Ampatuan] Sr. any amount of money for that purpose," he added.

Rondain said Zaldy Ampatuan had said he was not present at the alleged meeting between Andal Sr. and Arroyo.

"[ARMM] Gov. Zaldy could therefore not know what transpired, if the meeting took place at all," he said.

He also noted that Mr. Arroyo was in the hospital for a dissecting aortic aneurysm during the 2007 election period, and was in convalescence for months after the election.

The former First Gentleman's lawyer said Zaldy's accusation is highly suspect since he only came out 4 years after the election.

"Accusations that come 4 years too late, from one who suddenly grows a conscience, strain public credulity," Rondain said.

Zubiri airs side

In a separate interview with radio dzMM, Zubiri said he did not sanction nor have any knowledge of Ampatuan’s allegations.

“If there was indeed cheating, I did not sanction it…The culprits should be captured for electoral sabotage,” he said.

In fact, Zubiri said the votes from Maguindanao do not have any bearing on the election protest before the Senate Electoral Tribunal (SET) anymore. He himself filed an election protest on the 2007 elections.

He said he also lost votes then, specifically in Metro Manila. The results of their findings will be revealed tomorrow or any day within the week.

“It’s also my right to reveal that I too was cheated,” he said.

Zubiri said this is precisely why he pushed for the automation of the polls to finally minimize fraudulent activities, which usually happens in manual systems.

Malacañang says no hero's burial for Marcos

2011-06-18T16:30:00.000-07:00

MANILA, Philippines - President Benigno Aquino has ruled out burying the frozen remains of former dictator Ferdinand Marcos in Manila's cemetery for national heroes, a government spokeswoman said Saturday.

Local reports this month said Vice-President Jejomar Binay had recommended Aquino allow Marcos' body, which is contained in a glass crypt in his provincial stronghold, to be buried at the cemetery with full military honors.

"President Aquino is clear on the issue, that there will be no heroes' cemetery burial (for Marcos' remains)," presidential spokeswoman Abigail Valte told government radio, referring to a military cemetery in Manila where some of the Philippines' past leaders are interred.

Aquino, whose parents were democracy icons who fought the Marcos rule, is also expected to soon decide whether the dictator's body would be accorded military honors, Valte said.

Marcos declared martial law in 1972, near the end of his second and final 4-year term, and ruled as a dictator until a popular revolt toppled him from power in 1986 forcing him into exile in Hawaii, where he died in 1989.

Thousands of political opponents went missing or were killed under his regime, and his family was accused of plundering up to $10 billion from the nation -- according to one government estimate.

Valte said Aquino had ordered aides to check official records on whether Marcos' remains had already been accorded military honors when they were brought back from Hawaii.

"That's the only thing left to resolve, since, if it turns out that he had been accorded military honors, there is no more reason for him to get another," Valte said.

Marcos' flamboyant widow, Imelda Marcos, and 3 children returned home after his death, and have since regained political influence.

She won a seat in the House of Representatives last year, while her son Marcos Jr. has hinted that he may run for president in 2016 after cruising to a Senate post last year.

Both have been leading calls to have the Marcos patriarch buried at Manila's heroes' cemetery, saying he was a legitimate World War II hero who had won over 2 dozen medals fighting against the Japanese occupation.

American and local historians however have disputed the authenticity of the medals.

Torture victims of the brutal Marcos regime have been outraged by the reported plans to bury the strongman with full military honors.

DOJ vows to crack down on monopolies, unfair competition

2011-06-18T16:29:00.000-07:00

MANILA, Philippines - Justice Secretary Leila de Lima expressed optimism on Malacanang's latest issuance designating the Department of Justice (DOJ) as the competition authority in investigating and prosecuting violations of trade competition laws, and in crafting legislation to deal with monopolies.

President Aquino issued last June 9 Executive Order No. 45, which also directed the creation of an Office for Competition under the Office of the Secretary of Justice.

"We are all for fair competition. In the final analysis, it's always the customers to suffer if we have monopolistic actions on the part of key players in industries," de Lima said.

De Lima was asked by President Aquino as early as last year to draft an executive order for the purpose.

She claimed she submitted her draft to the President a few months after assuming her post at the DOJ, denying the issuance was a mere offshoot of Philippine Long Distance Telephone (PLDT) Co.'s planned acquisition of Gokongwei-owned Digital Telecommunications Philippines Inc. (Digitel).

The deal will give PLDT a 70% share of the local mobile telecommunications industry, leaving rival Globe Telecom Inc. with just 30%. The PLDT-Digitel deal is being challenged by Globe before the National Telecommunications Commission (NTC), claiming it undermines the liberalization of the telecommunications industry in the country mandated by Republic Act 7925.

De Lima maintained addressing monopolies had long been a thrust of the Aquino administration.

"That is very much needed. Hindi na makapaghintay ang administrasyon. Kailangan meron na 'yan to promote economic justice for all to protect the consumers from irregular actions especially of big business like unfair competition," she said.

The justice chief said the executive issuance is aimed at addressing the proliferation of cartels in various industries such as the reported cartels in the oil, rice and sugar industries, among others.

Jan-May hot money hits $2-B

2011-06-18T16:26:00.000-07:00

MANILA, Philippines - Net inflow of foreign portfolio investments, also known as hot money, more than doubled during the first five months of the year due to "heightened investor interest" in local stocks and fixed-income securities.

The Bangko Sentral ng Pilipinas said in a statement that registered portfolio investments in January to May amounted to $2 billion, 160.3% higher than the $772 million recorded in the comparable period last year.

Total registered investments reached as high as $7.8 billion, but these were offset by outflows worth $5.8 billion.

In May alone, hot money yielded a net inflow of $364 million, 105% higher than the year-ago figure, but below April's $674 million.

Investments in Philippine Stock Exchange-listed stocks reached $886 million, reflecting a growth of about 80% from last year's $492 million and accounting for 58% of total registered investments during the month.

On the other hand, investments in peso government securities amounted to $513 million, up 118.9% year on year.

Singapore, United Kingdom, US, Hong Kong, and Luxembourg were the top five investor countries.

BSP policy move a sign of inflation risk from cash

2011-06-18T16:22:00.000-07:00

MANILA, Philippines - The Bangko Sentral ng Pilipinas' (BSP) unexpected increase in banks' reserve requirements this week looks to be a signal that authorities are worried that inflationary pressures from global prices are spreading in the robust domestic economy.

The move to drain cash seemed at odds with data showing annual growth in money supply slowed to a three-year low in April, but authorities had allowed liquidity to build up this year as they sought to boost investment and support growth.

Short-term special deposit accounts (SDA) with the central bank hit a peak of P1.51 trillion ($35 billion) in April.

In a strongly growing economy -- seasonally adjusted growth was 1.9% in the first quarter, nearly four times fourth quarter growth of 0.5% -- rising demand can turn that sort of liquidity into inflation pressures and asset bubbles.

"The decision to raise the reserve requirement by one percentage point indicates that the central bank has shifted its policy focus to tackling inflationary pressures stemming from excess liquidity in the system," said Vincent Tsui, an economist at Standard Chartered Bank in Hong Kong.

The central bank raised interest rates at its past two meetings, taking the overnight borrowing rate to 4.5%.

It was expected to raise rates again on Thursday, but held fire. Still, analysts expects rates to rise further in the next six months.

Headline inflation in May was 4.5%, well below market forecasts but higher than a downwardly revised 4.3% in April. Core inflation edged up to 3.7%, the highest since September 2010 but also below market forecasts.

Inflation pressures have mainly come from rising global fuel and food prices, which monetary policy can't directly address, although it can help in containing future price expectations.

But while the central bank has been raising official rates, the extra cash left in the system had pushed market rates to abnormal lows. Average yields at auctions for 91-day and 182-day Treasury bills fell to below 1% in April.

"What we find surprising is why the BSP has taken so long to mop up some of the excess liquidity," said Devika Mehndiratta, an economist at Credit Suisse in Singapore.

"We have been highlighting that policy rate increases are unlikely to mean much more for short-term rates unless liquidity in the system reduces," she said.

Both Tsui and Mehndiratta see room for another increase in the reserve requirement ratio in the second half of the year, restoring the reserve requirements to a pre-global crisis level of 21%.

In late January, the central bank had said the liquidity would help fund growth, and as long as any rundown of funds with it, such as the SDAs, was orderly and put to productive use, it would not necessarily be inflationary.

But on Thursday, the central bank said it was worried strong capital flows and economic prospects could fuel liquidity growth, which it saw as the dominant risk, and so acted to drain an estimated P38 billion from the market.

"A situation where you have excess liquidity could blunt the effectiveness of interest rates moves," Deputy Governor Diwa Guinigundo said on Thursday.

Central bank data showed net portfolio inflows in January to May of $2.01 billion, nearly three times higher than in the same period last year.

The policy decision sparked a mild rally in the debt market, with yields on most liquid tenors down an average 5 percentage points, a trader in Manila said.

"The central bank's decision implies that it was more concerned on liquidity rather than on inflation and that is positive for the bond market," the trader said.

ASEAN exchanges pick tech firm for link-up

2011-06-15T01:08:00.000-07:00

SINGAPORE - Southeast Asia's stock exchanges say they have picked a technology provider to set up a regional trading network between the bourses, with the aim of enabling cross-border dealing by the first quarter of 2012.

Singapore Exchange, Bursa Malaysia, The Philippine Stock Exchange and Stock Exchange of Thailand say they have appointed US technology firm Sungard to provide a cross-border trading platform and order routing service.

The move is part of a wider plan by the 10-country Association of South East Asian Nations (ASEAN) to transform itself into a unified trading bloc with free flow of capital by 2015. It was initially hoped that the link-up would have been in place by 2010 but was delayed by the development of the new platform.

"This forms an integral part of the various initiatives in achieving the overall objective of the ASEAN Exchanges Collaboration to promote the growth of the ASEAN capital market," said Dato' Tajuddin Atan, CEO of Bursa Malaysia.

Indonesia's stock exchange along with Vietnam's bourses in Ho Chi Minh and Hanoi hope to join the network in 2013.

Of the other ASEAN members, Laos opened a stock market in January, Cambodia plans to open one at the end of this year and Myanmar is in talks about developing one. Brunei is the remaining member.

Jobless rate slows to 7.2% in April

2011-06-15T01:07:00.000-07:00

MANILA, Philippines - The Philippines' jobless rate eased to 7.2% in April from 7.4% in January, the government said Wednesday.

There were 2.9 million unemployed people in the Philippines as of April, unchanged from January.

The National Statistics Office said the total labor force was at 39.7 million in April, a shade higher than the 39.2 million in January, with a labor force participation rate of 64.2%, slightly above January's 63.7%.

Underemployed workers were 7.1 million in April, flat against January. Almost three-fifths of the underemployed worked for less than 40 hours a week.

Of the estimated 36.9 million people employed in April, more than half were in the services sector and a third were in agriculture.

The Philippines' jobless rate is among the highest in Southeast Asia.

Annual growth in the first quarter slowed to 4.9% from 6.1% in the last three months of the last year partly due to underspending by the government, making it more challenging to meet this year's 7% to 8% growth target

Feb net FDI falls 70% to $97 million

2011-05-10T16:34:00.000-07:00

MANILA, Philippines - Net inflow of foreign direct investments (FDI) plunged in February from a year ago as unfavorable developments overseas weighed on investor sentiment.

The Bangko Sentral ng Pilipinas (BSP) said FDI net inflow amounted to $97 million in February, down over 70% from the $326 million recorded in the same month last year.

This brought net inflows for the first 2 months to $304 million, a 39% decline from $496 million last year.

"Investor sentiment was subdued on account of unrest in some parts of the Middle East and North Africa, sovereign debt concerns in some European economies, as well as expectations of monetary tightening in Asia amid inflationary concerns," BSP Governor Amando Tetangco Jr. said in a statement.

Equity capital registered a net inflow of $10 million in February, down from year-ago net inflow of $76 million. The bulk of these inflows originated from the United States, Singapore, Japan, Hong Kong, and Germany.

Net FDI, portfolio inflows, and remittances from Filipinos working and living overseas help keep the country's balance of payments (BOP) in surplus.

The central bank revised its estimate for balance of payments surplus this year to $6.7 billion from a range of $6 billion to $8 billion. The Philippines posted a record balance of payments surplus of $14.4 billion in 2010, boosted by strong portfolio inflows.

LTFRB Oks LRT, MRT fare hikes

2011-05-10T16:25:00.000-07:00

MANILA, Philippines - Fare hikes for the three mass rail systems in Metro Manila have been approved, but the government postponed indefinitely their implementation.

Transportation Undersecretary Ruben Reinoso confirmed that the Land Transportation Franchising and Regulatory Board (LTFRB) has agreed to the proposed increase in the fares for the Light Rail Transit (LRT) Lines 1 and 2, and the Metro Rail Transit (MRT) 3.

However, he said the LRTA (Light Rail Transit Authority) decided to delay the fare hikes in light of rising prices of basic goods and services.

"We are looking for the best timing. We don't want to burden the people. But certainly [LRT, MRT fares] are going up, it's just a matter of time."

Under Executive Order 603, the LRTA needs to consult the LTFRB first, and comply with publication requirements, before it could adjust fares. The LRTA board is headed by Transportation Secretary Jose de Jesus.

The Transportation Department had said the LRT and MRT fare hikes were meant to reduce the billion-peso subsidy extended by the government to rail operations.

This would be supported by a plan to bid out the operation and maintenance of the rail systems to the private sector to free up state funds.

New fares

The fare hikes were supposed to have taken effect on March 1. The LRTA, last February, deferred this to allow a review by the LTFRB.

The approved fares include a boarding fee of P11 and a P1 charge for every kilometer.

As a result of the new fares, travelling the entire length of the MRT station, a total of 17 kilometers from Taft to North Avenue, would cost P28. For the LRT Lines 1 and 2, the maximum fares will be P30 and P25, respectively.

Commuters, however, would be able to get discounts if they buy "stored value" tickets.

SM-Carlson to open Park Inn by Radisson hotel in Davao

2011-05-09T15:46:00.000-07:00

MANILA, Philippines - The SM group has partnered with global hospitality firm Carlson anew, this time for the opening of the Park Inn by Radisson hotel in Davao City.

SM Hotels and Conventions Corp. will construct and own the P750-million hotel, while management and operations will be handled by Carlson.

The 200-room hotel, which will rise on a 175,000-square meter mixed-use complex of another SM subsidiary, SM Prime Holdings Inc., is slated to begin construction by the third quarter of 2011 and open by 2013.

"The signing of our contract with Carlson to open a Park Inn by Radisson in Davao City is another concrete step towards fulfilling the vision of our founder, Henry Sy, to make the Philippines a world-class tourist destination," said SM Hotels president Elizabeth Sy.

"We believe that Davao is an ideal location for such an undertaking because of its robust economy, vibrant population, and excellent infrastructure including its international airport," she added.

In September last year, SM Hotels opened the upscale 400-room Radisson Blu Hotel in Cebu, which is also managed by Carlson.

PNoy's wealth up P4M since June

2011-05-09T15:23:00.000-07:00

MANILA, Philippines - The President has a monthly basic salary of P95,000, or P63,000 after tax and other deductions.

In a year, President Aquino's income has reached P1.2 million.

Since assuming office on June 30, 2010, President Aquino’s wealth grew by P4 million, according to his latest Statement of Assets, Liabilities and Net Worth (SALN).

From P50.1 million when he became president, his net worth rose to P54.9 million, as of December 31, 2010.

The President earned from proceeds of a residential lot in Antipolo sold by the Cojuangco family. Hence, the real estate property listed in 2010 had receivables worth P17 million.

The President's cash also grew, after selling P4.7 million worth of shares in 8 companies owned his family, including shares of stock in Central Azucarera de Tarlac that runs the family's sugar estate, Hacienda Luisita.

Presidential spokesperson Edwin Lacierda said the President deemed it proper to fully divest his shares, in compliance with the Constitution and the code of conduct barring public officials from engaging in private businesses, whether or not there is conflict of interest.

The president still owns a residential lot in Tarlac, 2 agricultural lands in Tarlac City and Capas, an inherited commercial lot in San Juan, and the house and lot on Times Street he inherited from his mother, worth P13.7 million.

From P9 million, the President's vehicles are now valued at P8.7 million.

The president earlier said he owns three vehicles: a 2007 Toyota Land Cruiser that he has used since he was a senator, a 2005 Ford Everest, and a Porsche which he bought after selling a BMW SUV.

The President's only listed liability: income tax worth P229,000, which according to Lacierda, the President already paid to the Bureau of Internal Revenue (BIR) last April.

Toyota Phils to cut production by half

2011-04-29T01:54:00.000-07:00

MANILA, Philippines - Due to a prolonged shortage in supply of auto parts, Toyota Motor Philippines Corp. (TMP) is implementing an "adjustment plan" that would cut its production by half.

TMP has discussed with the Department of Trade and Industry the details of the plan, including reducing work days to just three a week over a period of two months.

Last week, TMP postponed production at its Sta. Rosa, Laguna facility.

A company insider said the three days a week production would cut TMP's output by half. Workers will also be asked to work on alternate shifts.

The official said TMP hopes to go back to regular operations early July as it expects suppliers in Japan to come on stream by then.

TMP officials are set to meet with the Department of Labor and Employment to discuss the impact of the production slowdown on workers.

TMP produces 120 units of Vios and Innova per day. Vios accounts for 60% of the product mix, while Innova, the remaining 40%.

A Reuters report Monday said the crisis in Japan slashed Toyota Motor Corp.'s output by almost two-thirds in March alone.

Toyota is the largest automotive brand in the Philippines. In 2010, it sold 56,855 units, capturing 33.7% of the market.

Catholics in Metro Manila observe Good Friday rituals

2011-04-22T17:34:00.000-07:00

MANILA, Philippines - While most of Metro Manila was peaceful and quiet as many citizens were out of town, those left behind were mostly in Catholic Churches to observe Good Friday rituals.

Security was tight, and emergency services were on hand to keep watch over the Filipino faithful.

Police and emergency personnel were sighted in or near the churches we visited.

ABS-CBN News was at the Nuestro Señora de Remedios in Malate, where icons were shrouded in purple as the 7 last words of Jesus Christ were delivered.

People also came in droves to the Nuestro Señora de Guia in Ermita; the Manila Cathedral; the San Miguel Church; the Basilica of the Santo Niño in Moriones, Tondo; the San Sebastian Church; and, the Basilica of the Nazareno in Quiapo.

A mini procession of the Black Nazarene was held In the immediate vicinity of the Quiapo Church.

Security was also tight.

Filipinos from various walks of life came with their families, as vendors had a heyday with sales of religious paraphernalia and food and drinks.

The Philippine National Red Cross (PNRC) volunteers in Quiapo noted an increase in the number of those who needed medical assistance, but could not yet give exact figures. Most of the cases dealt with hypertension.

BIR eyes to grow April collections by 15%

2011-04-01T03:18:00.000-07:00

MANILA, Philippines - The Bureau of Internal Revenue (BIR) chief said they are eyeing to grow collections by 15% this month, but noted it was too early to say if they could beat the target.

BIR Commissioner Kim Henares said their collection goal for April is P105.1 billion compared to last year's actual collections of P91.162 million.

April is usually the BIR's strongest month because of the yearly deadline for filing of income tax returns.

"I hope we will meet our goal," Henares said.

Henares, meanwhile, declined to give preliminary data on BIR's February and March collections.

The BIR accounts for 60% of the government's income.

In January, it surpassed its collection goal of P71.97 billion by 3.6% at P74.57 billion.

The January figure was also 15% higher than the P64.606 billion recorded in the same month last year.

The Bureau of Customs, on the other hand, earlier said it was confident of exceeding its collection gaol of P22.5 billion last month, due to higher oil imports.

Customs is the government's second-largest revenue generator, accounting for about a fifth of state income.

The two tax agencies are hard pressed in raising revenues this year to fund a budget deficit estimated to reach P300 billion.

Banco Filipino to sue Tetangco, Monetary Board members

2011-04-01T03:17:00.001-07:00

MANILA, Philippines - Officers and shareholders of Banco Filipino Savings and Mortgage Bank will sue the central bank governor and majority of the Monetary Board for the "illegal" closure of the thrift bank two weeks ago.

In a statement released Friday, they said Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco and other monetary officials violated the Anti-Graft and Corrupt Practices Act after ordering the closure of Banco Filipino and "knowingly causing damage" to them.

Among the MB members to be charged are Ignacio Bunyi, Peter Favila and Juanita Amatong, who were former press, trade and finance secretaries, respectively, during the time of Gloria Arroyo.

The complaint will be filed at 2 p.m. before the Department of Justice, where "they stand a better chance of being accorded justice," the statement said.

Earlier, Banco Filipino filed 2 criminal cases before the Ombudsman against Tetangco and the MB members for extortion and violations of the General Banking Act.

The BSP ordered the shutdown of Banco Filipino on March 17 and placed the bank under the Philippine Deposit Insurance Corp.'s (PDIC) receivership following reports its branches could no longer service withdrawals.

The central bank said the thrift bank mismanaged depositors' money through excessive spending and by allowing loans to stockholders and affiliates to remain unpaid.

Banco Filipino has filed a motion, asking the Court of Appeals to issue a temporary restraining order on its closure. The CA then asked monetary officials to explain their March 17 move.

The PDIC, meanwhile, has begun paying Banco Filipino depositors with accounts of P5,000 or less.

PSE halts trades on JG Summit, Digitel

2011-03-29T04:32:00.000-07:00

MANILA, Philippines - The Philippine Stock Exchange imposed a one-day trading halt Tuesday on shares of conglomerate JG Summit Holdings Inc. and its phone subsidiary Digital Telecommunications Philippines Inc. (Digitel).

The firms requested the trading halt, the bourse said, after both companies said they needed more time to address market speculation on a major shareholder-related transaction.

Trades in the 2 companies will resume on Wednesday.

In separate disclosures, JG Summit and Digitel said they would issue a statement "at a proper time" to address ownership speculations. They said the trading halt was necessary to "avoid any undue fluctuations and distortion" in their share prices.

On Monday, Digitel surged as much as 29% to a 4-year high amid rumors of a buyout by telco rivals Philippine Long Distance Telephone Co. or San Miguel Corp.

JG Summit shares climbed as high as 8% to their highest in 4 months.

Last week, San Miguel Corp. denied in a statement to the bourse that it was in talks with JG Summit after a local newspaper reported the food-to-power conglomerate was interested in acquiring Digitel.

PLDT to buy 51.55 pct of Digitel

2011-03-29T04:25:00.000-07:00

MANILA, Philippines (2nd UPDATE) - Philippine Long Distance Telephone Co. (PLDT) said on Tuesday it will take control of a rival firm as it seeks to solidify its leading position in a mature industry where a price war had eroded margins.

PLDT, the country's top telecommunications firm, said it forged a deal valued at P69.2 billion ($1.6 billion) to acquire 51.55% of third-ranked Digital Telecommunications Philippines Inc. (Digitel).

The deal, which includes a share swap and assumption of debt and advances by Digitel from its parent JG Summit Holdings Inc., was expected to be completed by the end of June, PLDT and Digitel said in a joint statement.

Digitel, via its Sun Cellular brand, had shaken the mobile phone market with cheap call and text packages, prompting PLDT and second-ranked Globe Telecoms to follow suit.

"PLDT is not out to kill the competition, but growth of Globe will be limited," said Jose Mari Lacson, analyst at Campos, Lanuza & Company Inc, noting that PLDT had said it intended to keep Digitel's cheap call and text offerings.

The price war had slowly eroded telecoms' margins in a saturated mobile market, with penetration at around 90% against a population estimated to be nearing 100 million.

PLDT's mobile phone market share would rise to 70% after the deal, Lacson said.

PLDT said the transaction, which involves its acquisition of 3.277 billion Digitel common shares from JG Summit and certain other parties, would result in cost efficiencies and improve network usage.

PLDT has said it would spend more in 2011 and 2012 to grow its broadband business amid stiff competition.

JG Summit would hold about 12% in PLDT after the transaction, while stakes of existing PLDT shareholders would be diluted, PLDT chairman Manuel Pangilinan said.

Mandatory offer

PLDT will make a mandatory offer to minority investors to buy the rest of Digitel, with shareholders given an option to sell at a discount to market at P1.60 apiece, or swap their holdings for PLDT shares at a premium of P2,500 per share.

"JG Summit is the ultimate winner. They get a good price for an investment that has not really delivered in terms of dividends," Campos & Lanuza's Lacson said.

PLDT closed flat at P2,036 on Tuesday while trading in Digitel was suspended at the firm's request. On Monday, Digitel had surged as much as 29% to a 4-year high before ending at P1.8.

The deal was announced after the market closed.

The tender offer, if fully taken up by shareholders, would bring the total value of the deal to P74.1 billion.

"Though this initiative alters the country's telecom landscape, we expect competition within the industry to remain very robust given that other operators, including new entrants, are formidable and well-funded," Pangilinan said.

PLDT, partly owned by Hong Kong's First Pacific Co. Ltd. and Japan's NTT Communications and NTT DoCoMo, has a market value of $8.9 billion against Digitel's $269 million.

Globe, owned by Ayala Corp. and Singapore Telecommunications, is valued at $2.1 billion.

Under the deal, PLDT will acquire debts of Digitel, including zero-coupon bonds issued to JG Summit convertible into 18.6 billion Digitel shares by June 30. It will also absorb P34.1 billion in advances made by JG Summit and other parties.

PLDT will swap one new PLDT share for every P2,500 worth of Digitel assets to be acquired.

"The transaction should also bring significant value to JG Summit's shareholders without relinquishing our participation in the Philippine telecommunications industry," James Go, JG Summit chairman, said in the joint statement.

Palace: Executions will not affect PH-China ties

2011-03-27T01:04:00.000-07:00

MANILA, Philippines - Diplomatic ties with China will not be affected even if it decides to push through with the executions of the 3 Filipino drug mules, Malacanang said on Sunday.

In an interview with radio dzRB, Communications Development and Strategic Planning Office Secretary Ramon “Ricky” Carandang said the country respects the judicial system of China.

“They’re just following their process…What we only questioned was the death penalty, that’s why we asked for a commutation…but at the end of the day, it will not impact on our long-term bilateral relations,” he said.

The government is still pushing for last ditch efforts to save the convicted Filipinos.

The Supreme Court of Justice of China has decided to snub appeals for a commutation of the sentences of Ramon Credo, Sally Ordinario-Villanueva and Elizabeth Batain.

They will be executed on March 30. Their families flew to China early Sunday.
Vice President Jejomar Binay already sent a letter to Chinese President Hu Jin Tao, attempting anew to save the Filipinos.

“On humanitarian grounds and on the basis of the strong friendship and cooperation between our two countries and peoples, I once again appeal to Your Excellency to grant clemency to these three Filipinos,” the letter read.

Taskforce

Meanwhile, Migrante-Middle East urged President Benigno “Noynoy” Aquino III to create a taskforce that will look into the cases of Filipinos on death row.

John Leonard Monterona, Migrante-Middle East regional coordinator, said: "The Aquino administration, amid the impending execution of three Filipinos on China death row and if it really intends to save other OFWs on death row, should, by now, form an inter-agency task force whose primary function is to look into saving their lives from execution."

There are more than 70 OFWs on China death row and 120 others in other countries, he said.

Monterona cited the case of Don Lanuza, incarcerated in Saudi Arabia by killing an Arab national in 2000.

"As per the latest information, the court is just awaiting the son of the aggrieved party to reach legal age so that it could decide either to accept the blood money in exchange of forgiveness or reject it in favor of execution," he said.

"The entire Filipino nation, including Filipinos abroad, have to confront this bitter reality; but efforts to save OFWs whose cases are punishable by death should start from the time a proper case had been filed and immediately hire the best legal defense team the government could provide, noting that most were victims of international drug syndicates, if not, had committed the crime in defense of his life," Monterona added

Milk products, corned beef prices increase

2011-03-27T01:03:00.000-07:00

MANILA, Philippines - The increase in prices of raw materials has pressured the market to jack up prices of milk products and corned beef as early as two weeks ago, the Department of Trade and Industry (DTI) said.

Based on monitoring, Trade Secretary Gregory Domingo revealed increases of up to 9% for milk products and 10% for corned beef.

Domingo explained that the market was trying to offset costs incurred due to the increase of prices of raw materials.

"It's a two-pronged increase. The reason is, they are trying to catch up with the higher prices of milk solids and tin prices," he said.

The more popular products refrained from reflecting the prices initially out of fear they would lose demand.

The move followed a price hike notice of Alaska Milk Corp, a key milk producer in the country.

Domingo, however, noted that the current prices of both milk products and corned beef remain within the department’s suggested retail price index.

"They are still okay," he said.

Meanwhile, aside from milk and corned beef, Domingo said steel prices have also increased by 20%.

MPIC sets P300-M to link NLEx, SCTEx toll roads by October

2011-03-27T01:02:00.000-07:00

MANILA, Philippines - Metro Pacific Tollways Corp. expects to spend P300 million to finish integrating the North Luzon Expressway (NLEx) and the Subic-Clark-Tarlac Expressway (SCTEx) by as early as October, an official said on Friday.

"We hope the takeover [of SCTEx] will happen in April or May this year," Metro Pacific Tollways President and CEO Ramoncito S. Fernandez told reporters at the sidelines of a travel fair, referring to the pending handover of the toll road’s operations to the company after it won the bidding held by the Bases Conversion and Development Authority.

The company’s subsidiary, the Manila North Tollways Corp. signed a lease contract for the toll road with the state agency last November which included the right to collect toll revenues for 25 years, renewable for another eight years according to earlier reports.

"[Then] the immediate plan is for the integration of SCTEx and NLEx which will take about six months," Mr. Fernandez said.

Mr. Fernandez said that the company will be spending "more P300 million" which will be sourced from its internal funds to link the two expressways.

The integration process will include removal of some of the exits which will become redundant for a "seamless connection," Mr. Fernandez said.

"After the integration, we expect travelers to have more convenience, which is our main concern," Mr. Fernandez said.

The Pangilinan-led Metro Pacific Tollways reported a 20% growth in core income to P1.5 billion in 2010 after and revenues rose by 7% to P5.9 billion on the back of a 6% rise in average daily traffic to 159,882 vehicles.

For new projects, the company had said it was looking at bidding for two ventures: the P11.8-billion, 27.5-kilometer Cavite-Laguna Expressway that will extend the Manila-Cavite Coastal Expressway (MCEE) and the P10.6-billion, 4.9-kilometer Ninoy Aquino International Airport Expressway connecting Skyway to the MCEE.

MPTC, whose shares were last traded on Mar. 24 at P7.70 each, is a unit of Metro Pacific Investments Corp., the local arm of Hong Kong’s First Pacific Co. Ltd., which partly owns the Philippine Long Distance Telephone Co. (PLDT).

Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld.

Robredo believes Lacson still out of country

2011-03-22T00:01:00.000-07:00

MANILA, Philippines - Interior and Local Government Secretary Jesse Robredo believes Senator Panfilo Lacson is hiding abroad but is ready to show up.

On the sidelines of the World Water Day celebration, Robredo believes Lacson is about to surface soon.

“I think there are [feelers already], because there is already an impression that he is outside the country,” he said.

Robredo said the tracker team that the Department of Interior and Local Government (DILG) created did not see Lacson anywhere in the country.

“There are a lot of false leads. When we verify, the leads turn out to be wrong. There have been leads that he is in Quezon City, in Batangas, in Cebu...but there really is none,” he said.

“This means if we can’t find him here, he’s outside the country…In all likelihood, very likely, he’s out of the country,” he said.

In a 16-page resolution dated March 18, the Court of Appeals stood pat on its decision quashing the murder charges and the consequent warrant of arrest against Lacson.

Lacson has been linked to the November 2000 murders of publicist Salvador Dacer and his driver Manuel Corbito.

The senator went into hiding in early 2010 even before the Manila trial court, where the case is lodged, could come out with a warrant of arrest. He blamed political persecution as a reason for his hiding.

The National Bureau of Investigation (NBI) has yet to notify the International Police of the need to already lift its red alert against Lacson.

Nonetheless, Robredo still urged the fugitive senator to face the public the soonest.

“It’s high time that he attend to his obligations in the Senate. There are a lot of things happening there that need his attention,” he said.

Philippines raises $1.5-B from 2026 global bonds

2011-03-21T23:57:00.000-07:00

MANILA, Philippines - The Philippines said on Tuesday it sold $1.5 billion of new 2026 global bonds in an offering that was "significantly" oversubscribed, as it sought to stretch its debt profile while keeping interest costs low.

The bonds, which created a new 15-year benchmark for the Philippines' dollar bonds, were priced at 99.495% with a coupon of 5.5%, the government said in a statement.

Yield was at 5.55%, narrower than the indicated initial pricing of 5.26% reported by IFR, a unit of Thomson Reuters, on Monday.

"The Philippines moved swiftly to access the dollar bond market and achieve low-cost, long-dated offshore funding," Finance Secretary Cesar Purisima said in a statement.

"This continues the republic's pro-active stance in managing its sovereign debt, extending its debt maturity profile during uncertain times for the global economy," he said.

The Philippines, one of Asia's most active issuers of sovereign debt in the offshore market, sold the dollar bonds before Indonesia could launch its own. Indonesian officials held investor presentations in Europe and the United States last week for a planned global bond this year.

The offer also came just a day after state lender Development Bank of the Philippines raised $300 million in a 10-year bond offer that was over three times subscribed.

Bookbuilding for the Southeast Asian country's first dollar bond this year took around 10 hours, with the United States and Europe each taking up 30% of the offer, the government said.

Investors from the Philippines accounted for 22% and the other Asian investors accounted for the rest.

"We are very pleased with the response to the transaction, with strong investor interest enabling the republic to successfully establish a new 15-year benchmark on its dollar yield curve," National Treasurer Roberto Tan said in statement.

Goldman Sachs and HSBC were joint global coordinators and bookrunners. Deutsche Bank, Citigroup, JP Morgan and UBS were joint bookrunners for the global bond issue.

Sy Jr to advance P24-B for power grid

2011-03-19T03:11:00.000-07:00

MANILA, Philippines - Henry Sy. Jr., the eldest son and namesake of the SM founder, said his group is willing to advance the needed amount of about P24 billion for the construction of the crucial transmission grid linking Visayas and Mindanao.

In a hearing of the Joint Congressional Power Commission, Sy assured lawmakers that they are ready to pour in much-needed capital to ensure the stability of power supply in the country’s transmission highway.

Sy’s One Taipan Holdings became a significant stakeholder in the National Grid Corporation of the Philippines (NGCP), the concessionaire that won the bid to operate the national power transmission assets, early last year with its purchase of the 30% interest of Monte Oro Grid Resources Corp.

Sy is now president and CEO of NGCP.

He said NGCP would be willing to frontload the funding requirements for the Leyte-Minda-nao Interconnection Project (LMIP), which is meant to further stabilize the supply and enhance the quality of electricity across the country by connecting the Visayas and Mindanao grids through 23 kilometers of submarine cables linking the Leyte and Surigao substations.

According to Sy, NGCP will “advance” the funds needed to jumpstart the project, which will be implemented as soon the the company secures the approval of the Energy Regulation Commission (ERC).

“We will advance the needed amount on a staggered basis as soon as ERC approves our petition,” he said.

Sy said that as soon as it obtains ERC approval, NGCP will carry out the first phase of the LMIP, which is the implementation of a feasibility and technical study that will take between six months to one year to complete.

ERC chairperson Zenaida Cruz Ducut, who was also present during the congressional hearing, said the ERC will hold public hearings on the NGCP petition to implement the first phase of the LMIP, and will come up with a decision “as soon as possible.”

Sy said NGCP has been working in tandem with the Department of Energy and other industry stakeholders, including distribution firms and electric cooperatives, in implementing all approved projects spelled out in the government’s National Transmission Development Plan (TDP).

NGCP took over the management of the country’s national transmission network two years ago from the National Transmission Co. (TransCo) after winning a 50-year concession to run the transmission assets through a public bidding, which was undertaken in line with the privatization thrusts of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001.

Giovanni Randolf Galang of NGCP’s Transmission Planning Department said the first phase of the project - the conduct of a feasibility study - will cost about P92 million, and is necessary because the latest feasibility study on this longstanding LMIP was conducted way back in 2001.

He said an updated feasibility study is needed after 10 years to consider new developments and contingencies like the optimal voltage level requirements and the latest technologies in submarine cable systems.

Security, transparency vital to attracting investments in PH

2011-03-13T14:20:00.000-07:00

SINGAPORE — Top business leaders here expressed optimism about the investment climate in the Philippines, urging the present administration to improve the security and transparency of investments which are vital factors to lure foreign companies.

In a meeting between Singapore’s business leaders and President Aquino, Singapore co-chairman of the Philippines-Singapore Business Council Choo Chiau Beng said they welcome the new administration’s emphasis on transparency and competition for businesses, specifically on the Public-Private-Partnership (PPP) program.

“For Singapore companies investing in the Philippines, it is very critical that the law and the courts have credibility. And I would urge the president to ensure that,” said Choo, also the chief executive officer of Keppel Corp. “I understand that the Philippines is expected to launch a large number of projects this year. This sends a strong signal that the government is taking pro-active measures to ensure that the country’s economic growth is sustainable in the long run.”

Speaking before some 200 members of the Singapore Business Forum/International Enterprise Eminent Leaders on the last day of his three-day state visit here, Aquino vowed to curb corruption in a bid to create a pro-business environment in the Philippines, adding that the overall climate in the country “is now more conducive to business and investments” under his leadership.

In the past few years, corruption—along with problems with transparency—efficiency and bureaucracy are keeping foreign companies from investing in the Philippines. According to the 2010 Transparency International’s Corruption Perception Index, the Philippines is rated as “highly corrupt” and is ranked 134th most corrupt country out of 178 countries.

In his speech, Aquino said the Philippines has embarked on “redesigning the building of state” by “redesigning the culture of governance, alleviating poverty by curbing corruption; by instituting reforms in the military, where faulty procurement practices have robbed our soldiers of decent equipment and dignified living standards; in the judiciary, where Lady Justice’s scales have tipped toward the privileged few; and all across the bureaucracy, where a lack of integrity and competence has been the norm, rather than the exception.”

Other reforms his administration will implement, the President said, include:
- addressing the challenges rooted upon a lack of infrastructure that will make the Philippines a more attractive investment destination by pursuing greater cooperation with the private sector through the PPP scheme
- cutting red tape
- ensuring the proper and responsible use of government resources

“Simply put, this means making sure that no one goes hungry; that the welfare of the people is treated as a priority; that each citizen is granted the opportunity to fulfill his potential and no one gets left behind,” he said.

Aquino lauded the Singaporeans for showing the way to achieving this is not an impossible feat. “Your government has already signified its willingness to help a brother nation reach the same heights that you have reached. Partnering with us holds both tangible and intangible rewards. It means also a commitment to lifting the lives of a people who only recently had learned how to dream again,” the President said.

Under the PPP scheme projects, Aquino said the Philippines plans to develop infrastructure projects such as roads, railways, airports and energy projects which are expected to open up more opportunities for foreign investments.

“By the end of the month, we expect to bid out five PPP projects as testament to our willingness to engage and empower the private sector,” said Aquino, adding that airport expansion in Cebu, Bohol and Palawan are among the key priorities of his administration.

Other projects included in the PPP program include the maintenance for the Light Rail Transit 1 and 3 costing P7.7 billion and P6.3 billion; the P1.6-billion Daang Hari-South Luzon Expressway link road project; P10.6-billion Ninoy Aquino International Airport Expressway Phase 2; and the P21-billion North Luzon Expressway-Slex connector road.

Aside from helping businessmen invest in the country, the President said the PPP program will “provide the infrastructure necessary to fuel the growth that we need” by freeing our national budget to address social concerns.

Japan disaster could derail Philippines' Samurai offer

2011-03-13T14:19:00.000-07:00

MANILA, Philippines - The government's planned Samurai bond sale has come under a cloud as Japan -- which is being asked to provide a guarantee -- seeks to recover from a devastating earthquake and tsunami.

"We’ll have to get JBIC’s (Japan Bank for International Cooperation) position," Finance Undersecretary Rosalia V. de Leon said in a text message during the weekend when asked if the issue would still push through.

The government is waiting for JBIC’s response to a request that it guarantee Samurai bonds -- yen-denominated debt papers sold in Japan by foreign borrowers -- with tenor of at least 15 years.

JBIC -- the international arm of state-owned Japan Finance Corp. -- had guaranteed 10-year Samurai notes that Manila sold in February last year. The Philippines raised $1.1 billion from that sale.

National Treasurer Roberto B. Tan, in a separate text message, said JBIC had not committed to a date as to when it would respond to the government’s request.

"There was no timeline set. We are, however, keeping in touch with them", he said.

Finance Secretary Cesar V. Purisima recently said he had secured the support of Japan’s Ministry of Finance for a Samurai offering. He said the government was looking to raise "at least $500 million ... during the first half."

Ms. de Leon said the government would continue to tap the Japanese debt market for financing despite the disaster. "Yes," she replied when asked if Samurais were still part of the P764.54-billion borrowing plan for 2011.

The government borrows from both the international and local markets to finance its budget deficit, programmed to hit P290 billion this year, as well as to repay existing debts.

How to Restore the American Dream

2011-03-07T02:33:00.000-08:00

The American dream for me, growing up in India in the 1970s, looked something like the opening credits of Dallas. The blockbuster TV series began with a kaleidoscope of big, brassy, sexy images — tracts of open land, shiny skyscrapers, fancy cars, cowboy businessmen and the very dreamy Victoria Principal. We watched bootlegged copies of the show, passed around on old Betamax cassettes. America (certainly the CBS soap-opera version of America) seemed dazzling and larger than life, especially set against the stagnant backdrop of India in the 1970s. Everyone I knew was fascinated by the U.S., whether they admitted it or not. Politicians who denounced the country by day would go home in the evenings and plot to send their kids to college in "the States."

Of course, the 1970s were actually tough times in America — stagflation, malaise, the aftermath of Vietnam and Watergate — but they were brutal in the rest of the world. Hyperinflation racked most third-world countries; coups and martial law were familiar occurrences, even affecting staunchly democratic India, where emergency rule was enforced from 1975 to 1977. Set against this atmosphere of despair, the U.S. looked like a shining city on a hill.

A few years later, when I got to America on a college scholarship, I realized that the real American Dream was somewhat different from Dallas. I visited college friends in their hometowns and was struck by the spacious suburban houses and the gleaming appliances — even when their parents had simple, modest jobs. The modern American Dream, for me, was this general prosperity and well-being for the average person. European civilization had produced the great cathedrals of the world. America had the two-car garage. And this middle-class contentment created a country of optimists. Compared with the fatalism and socialist lethargy that was pervasive in India those days, Americans had a sunny attitude toward life that was utterly refreshing.

But when I travel from America to India these days, as I did recently, it's as if the world has been turned upside down. Indians are brimming with hope and faith in the future. After centuries of stagnation, their economy is on the move, fueling animal spirits and ambition. The whole country feels as if it has been unlocked. Meanwhile, in the U.S., the mood is sour. Americans are glum, dispirited and angry. The middle class, in particular, feels under assault. In a Newsweek poll in September, 63% of Americans said they did not think they would be able to maintain their current standard of living. Perhaps most troubling, Americans are strikingly fatalistic about their prospects. The can-do country is convinced that it can't.

Americans have good reasons to worry. We have just gone through the worst recession since the Great Depression. The light at the end of the tunnel is dim at best. Sixteen months into the recovery, the unemployment rate is higher than it was in the depths of all but one of the postwar recessions. And as government spending is being pared back, the economy is showing new signs of weakness.

Some experts say that in every recession Americans get gloomy and then recover with the economy. This slump is worse than most; so is the mood. Once demand returns, they say, jobs will come back and, with them, optimism. But Americans are far more apprehensive than usual, and their worries seem to go beyond the short-term debate over stimulus vs. deficit reduction. They fear that we are in the midst of not a cyclical downturn but a structural shift, one that poses huge new challenges to the average American job, pressures the average American wage and endangers the average American Dream. The middle class, many Americans have come to believe, is being hollowed out. I think they are right.

Going Global
For a picture of the global economy, look at America's great corporations, which are thriving. IBM, Coca-Cola, PepsiCo, Google, Microsoft, Apple, Intel and Caterpillar are all doing well. And they share a strategy that is becoming standard for success. First, technology has produced massive efficiencies over the past decade. Jack Welch explained the process succinctly on CNBC last September. "Technology has changed the game in jobs," he said. "We had technology bumping around for years in the '80s and '90s, and [we were] trying to make it work. And now it's working ... You couple the habits [of efficiency] from a deep recession [with] an exponential increase in technology, and you're not going to see jobs for a long, long time." Welch gave as an example a company owned by the private-equity firm with which he is affiliated. In 2007 the business had 26,000 employees and generated $12 billion in revenue. It will return to those revenue numbers by 2013 but with only 14,000 employees. "Companies have learned to do more with less," Welch said.

Next, companies have truly gone global. The companies on the S&P 500 generate 46% of their profits outside the U.S., and for many of the biggest American names, the proportion is much higher. You might think of Coca-Cola as the quintessentially American company. In fact it is a vast global enterprise, operating in 206 countries. "We have a factory in Ramallah that employs 2,000 people. We have a factory in Afghanistan. We have factories everywhere," explains Muhtar Kent, the CEO of Coke. Nearly 80% of Coca-Cola's revenue comes from outside the U.S., and an even greater percentage of its employees are in foreign countries. "We are a global company that happens to be headquartered in Atlanta," says Kent.

America's great corporations access global markets, easy credit, new technologies and high-quality labor at a low price. Many have had to cut jobs at home, where demand is weak, and have added them in the emerging markets that are booming. They are not "outsourcing" jobs. That word makes little sense anymore. They simply invest in growth areas and cut back in places where the economy is weak. None of them will ever give up on the American market — it is too large, too profitable and too central to their businesses — but the marginal dollar is more likely to be invested abroad than in the U.S.

Gaddafi's Last Stand

2011-03-07T02:32:00.000-08:00

Leave it to Libya's Muammar Gaddafi to show the world how a tyrant goes down: with bluster, belligerence and blood. Not for him, the quiet escape of Tunisia's Zine el Abidine Ben Ali or the noisy — but broadly peaceful — exit of Egypt's Hosni Mubarak. When the Arab youth uprising that has toppled despots on either side of his North African nation arrived on his doorstep, Gaddafi gave notice that the region's longest-surviving dictatorship would not succumb to revolutionary rap songs, Facebook pages and nonviolent demonstrations; he dispatched tanks and jet fighters to pound and strafe protesters. Hundreds were killed — the exact toll is impossible to know, since the regime shut out the world's media and shut down most communications.

Neither the King of Bahrain nor the President of Yemen, both of whom have used violence against popular revolt in recent days, would dare such a slaughter. But Gaddafi, rich in oil and poor in friends, has rarely conformed to the rules by which other autocrats govern. Whether backing terrorist groups in the 1970s and '80s, funding civil wars in sub-Saharan Africa in the 1990s or hectoring world leaders at the U.N. General Assembly in 2009, Libya's so-called Brother Leader — he wields absolute power with no formal title — has always done what he pleased and mostly gotten away with it. (See pictures from the unrest in Libya.)

This time he may have gone too far. Gaddafi's cruelty against his own people disgusted even longtime cronies and set off a wave of defections that, within a week of the first demonstrations on Feb. 15, left the regime deeply — perhaps fatally — wounded. Several military units mutinied and joined forces with protesters; two jet pilots flew to Malta rather than obey orders; a string of top officials, especially diplomats, quit their jobs and added to a chorus of voices calling for the dictator's end. Soon much of eastern Libya, including cities like Benghazi and Tobruk, had declared itself liberated from the regime.

Some have taken to calling the eastern provinces Free Libya. Walls of houses and shops in Tobruk have been sprayed with signs saying FALL GADDAFI. On Feb. 22, when the first foreign journalists arrived in Midan al-Melek, a square in the center of town, men were still joyous, chanting, milling about and firing off celebratory gunshots. "The protesters finished a few days ago, and now we are just celebrating," said one man in the crowd. "From Tobruk to Benghazi, it is all out of Gaddafi's control."

Gaddafi didn't seem to have gotten the message. That evening he delivered one of his characteristic televised rants, this one aimed at his countrymen. He accused Libyans of lacking gratitude for all he had done for them and blamed the protests on terrorists, foreigners and young people on drugs. He managed to work in references to a range of violent crackdowns, from Tiananmen Square to Waco, Texas, to Fallujah. Bizarre as it was, the speech left no doubt as to the dictator's intentions: "I am a warrior," he said. "I am not going to leave this land, and I will die here as a martyr." (See pictures of the rule of Libya's Colonel Gaddafi.)

One of his sons, Saif al-Islam, had delivered a similar diatribe 48 hours before, promising the regime would fight to the last man. But coming from Gaddafi himself, the threat carried much more menace. "I have not yet ordered the use of force, not yet ordered one bullet to be fired," he said, with typical disregard for facts. "When I do, everything will burn."

New Call, Old Response
So Libya threatens to be different. in Gaddafi, the Arab youth revolution faces a foe unafraid to push back brutally — and the watching world sees a ruler immune to reproach or reason. The U.S., having only recently begun to normalize relations with Libya after shunning it for nearly three decades, has little sway over the regime; the same is true for other Western democracies. (Outside the Arab world, Libya is closest to its former colonial master, Italy — which dreads the possibility of a wave of refugees fleeing the violence.) Unlike in Egypt and Bahrain, for instance, the Obama Administration has no leverage with the military in Libya: Gaddafi's generals will not be getting calls from fellow West Pointers at the Pentagon urging them to hold their fire. Nor will the threat of sanctions — President Obama said the U.S. and its allies were considering "the full range of options" — hold much terror for a regime that has endured long periods as an international pariah. (Watch TIME's video "The TIME Cover Speaks: Ideas From Arab Youth.")

So what began with the hope of regime change in the new, nonviolent way is now devolving into an old-fashioned African civil war, complete with shifting tribal allegiances and foreign mercenaries. Libyans' chances of being rid of their ruler of 42 years lie in their ability to endure his jet fighters; many hope more of his soldiers will mutiny. Gaddafi's survival may depend on whether he can rally support among his own and other tribes and bolster his forces with hired guns. (Reports from Tripoli say protesters have been fired upon by foreign gunmen.)

For the rest of the world, a Libyan civil war would mean a humanitarian disaster — Egypt and Tunisia, like Italy, are bracing for refugees from the fighting. There seems likely to be a global economic impact too: Libya is a major oil exporter, and several oil companies have halted production, accelerating a rise in crude prices — which rose 2% the day after Gaddafi's speech. But unlike the revolutions roiling other Arab nations, Libyan chaos does not immediately threaten the regional order or global security. There's no domino effect to worry about: Libya's neighbors have already had their regimes changed. Nor is there a serious threat of Islamic extremists' rushing into any leadership vacuum in Tripoli. And instability in Libya doesn't directly threaten the interests of an important U.S. ally, as the prospect of instability in Egypt did those of Israel. Even so, the Obama Administration is wary of "the [possibility that] you have more than one entity that controls territory in Libya," says a senior Administration official. Especially if one of those entities is Gaddafi: although he's been relatively well behaved in recent years, the official points out, "go back 20 years or so, and he was a significant sponsor of terrorist acts who had a nuclear program." (Comment on this story.)

Mad Dog of the Middle East
By the time Gaddafi had that dubious title bestowed on him by President Ronald Reagan in 1986, the eccentric Libyan colonel turned dictator had been in power for nearly 17 years and had proved a nuisance to Arabs and Westerners alike. His nation's oil riches and tiny population — Libya has the world's ninth largest known deposits and just 6.5 million people — allowed him to spend money freely on pet causes, including the Palestine Liberation Organization and a number of Islamic groups. Relatively little was spent on his people: a Gallup poll released last year showed that 29% of young Libyans were unemployed and 93% described their condition as "struggling" or "suffering."

Philippine property prices slightly up in 2010

2011-02-27T05:25:00.000-08:00

MANILA, Philippines (UPDATED) - Residential property prices in the central business district of Makati recorded a 0.19% increase in 2010 supported by strong economic expansion and all-time low interest rates, a property research firm recently reported.

This makes 2010 the Philippines' first year of house price growth after 2 years of decline, Global Property Guide said in a statement.

"During 2010, secondary market prices for 3-bedroom condominiums in Makati rose 0.19%, with a 0.20% rise occurring during Q4 2010, the Philippine-based online property research firm noted.

These are based on inflation-adjusted rates, which "provide a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents," the firm explained.

In 2009, Philippine prices for these properties, when inflation-adjusted, declined by 5.24%.

If based on nominal prices, changes in 2010 showed a 3.12% hike while 2009 experienced a 2.5% decline.

Inflation in 2010 is expected to be around 4.5% while 2009's averaged at 3.2%.

The research house said only 15 countries experienced house price increases in 2010. Citing its latest house price survey on the recovery of the global housing market using available fourth quarter statistics, it noted that, generally, prices have stalled in 2010.

Below are some of geographical trends from its study:

Prices fell further in the United States in 2010 than the previous year.
Ireland, Bulgaria, Hungary, Lithuania Greece and Ukraine are also still suffering badly.
Eastern European housing markets are still falling. House price falls in 2010 were less than the previous year.
The Scandinavian house price boom may be ending.
In the Baltics, Latvia and Estonia’s housing markets recovered strongly in 2010. But now they seem to have stopped rising.
Price rises still continue in some Asian countries (Taiwan, Thailand, Japan), but Singapore’s boom seems to have moderated.

Mideast unrest highlights Asia's oil dependence

2011-02-27T05:22:00.000-08:00

BANGKOK, Thailand - The tremors from political upheaval in the Middle East are rippling through energy-thirsty Asia, which has long struggled to kick its addiction to oil from the volatile region.

Every day millions of barrels of oil pass through the Indian Ocean from the Middle East to Asia, the world's busiest route for supertankers, providing energy to fuel the region's rapid economic growth.

It's an intercontinental voyage that highlights the ever-increasing interdependence of the world economies and explains why the fallout from unrest in the Middle East is having an impact thousands of miles (kilometres) away.

Oil prices have skyrocketed on world markets on fears that uprisings in countries such as Egypt and Libya could spread to major oil producers including Saudi Arabia and Algeria.

The effects are already being felt by motorists in Asia, which relies on the Middle East for the vast majority of its oil imports.

Resource-poor Japan for example buys 90% of its crude from the Middle East, while Singapore gets about 85% of its needs from the region and South Korea about 82%.

But it is the developing countries that might be the hardest hit by the price spike.

"India and Thailand would struggle most within Asia if oil prices were to remain at their current level," said Mark Williams, a senior economist at the London-based research firm Capital Economics.

"The region's biggest loser would probably be India. Its current account deficit is already high, its economy is oil-intensive, and fuel subsidies are a drain on already stretched government resources," he said.

"Thailand too is exposed due to its high reliance on oil and the large potential knock-on impact on inflation."

Rising consumer prices are emerging as a top concern for policymakers in the region.

High energy prices -- which also tend to push up food costs through increased transportation costs -- have even triggered social unrest in Asia in the past.

In the Philippines, price surges led to riots in the late 1980s as communist guerrillas burned buses amid street protests.

Indonesia, an oil producer, saw violent protests in 2008 in response to a steep rise in fuel prices. Late dictator Suharto's decision to hike fuel prices in 1998 fanned unrest that eventually toppled his regime.

Countries such as India, Thailand, Vietnam, Malaysia and Indonesia which subsidise fuel costs could face a large bill if oil prices remain at current levels.

India, which imports 80% of its crude oil needs, mostly from the Middle East, has seen fuel and petrol prices jump four times in the past year.

"By contrast, China seems relatively secure with the vast bulk of its energy coming from coal," said Williams.

But Chinese demand for crude has continued to rise strongly, jumping 17.7% year-on-year in December to a record 10.4 million barrels per day, according to the Paris-based International Energy Agency.

Inflation has become Beijing's top economic concern as it struggles to keep a lid on rising costs of food and other key items to head off public unrest.

China raised wholesale petrol and diesel prices by 4.6% on February 20, the second rise in two months.

In Japan, Economy, Trade and Industry Minister Banri Kaieda warned last week rising oil prices were the biggest risk to the nation's economic recovery.

And in South Korea authorities are even considering turning off unnecessary lighting and ordering public buildings to cut back on power use if oil prices do not fall.

Vietnam -- grappling with double-digit inflation -- recently raised petrol prices by 18% but for another reason: a currency devaluation that increased the cost of imported fuel.

Vu Dinh Bac, an economics student, said his already-tough life would get even harder.

"I fear that the price of a motorbike taxi ride, a cup of coffee and even a cup of iced tea will also go up," he said.

Not all Asian nations are net oil importers -- Malaysia produces more than it consumes, but even it is not immune to the effect of higher prices.

"Higher oil prices will push up food, transport and other essential items," said Wan Suhaimi Saidi, an economist at Kenanga Investment Bank Bhd in Kuala Lumpur.

Analysts said that while Asia is particularly vulnerable to the rising oil prices, they also have an advantage because their economies are in better shape than those of the West.

"In general, Asia's strong growth would enable it to cope much better than the more fragile, albeit less oil-intensive economies of Europe and the US," said Williams.

Tourism dep’t to revive local destination media blitz

2011-02-21T14:44:00.000-08:00

MANILA, Philippines - The Department of Tourism will revive a media campaign promoting local destinations as it aims to further strengthen the domestic tourism market.

Tourism Secretary Alberto A. Lim said the campaign, called "Pilipinas, Tara Na (Philippines, Let’s Go)" will take off from where the old campaign, known as "Tara Na, Biyahe Tayo (Come, Let’s Travel)," left off.

He expected the campaign to help increase domestic tourism to 25 million tourists this year, two million higher than last year’s official figures.

"It will be a mass media campaign. We hope to invite young stars such as [singer] Charice, to grace the campaign," Mr. Lim told reporters at the sidelines of opening of the 18th TravelTour Expo 2011 on Friday.

He clarified that the campaign is not related to the botched "Pilipinas Kay Ganda" slogan, which was ditched by the department last year which drew flak from many sectors, including none other than President Benigno S. C. Aquino III himself.

"We’re not doing a re-branding here. This is not for the international market, but more for the domestic tourism market," Mr. Lim said.

The campaign will promote so-called priority tourism destinations, namely, the "Central Philippines" which groups Palawan, Boracay, Bohol and the Bicol Region.

"We will also push for the Ilocos [Region], the Cordilleras, Cagayan de Oro and Davao," he added.

The campaign seeks to strengthen the department’s program -- launched just last month -- that promotes local festivities nationwide.

Mr. Lim said funding for the campaign will come from partnerships and sponsorships with the private sector.

"We hope to launch this formally by March or April" he said.

BSP insists no urgent need to raise rates

2011-02-21T14:36:00.000-08:00

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) currently does not see the need to raise interest rates despite claims that it, along with other Asian central banks, needs to be more proactive in addressing inflation.

Unlike regional counterparts which have begun tightening policy to address rising consumer prices, the Monetary Board last Feb. 10 decided to keep key rates unchanged, arguing that inflation remains manageable.

Some analysts said this indicated that rate hikes would only be implemented starting the second quarter. Last Wednesday , however, a senior HSBC economist urged that these be made as early as the next policy meeting on March 24.

Earlier in the week, meanwhile, Standard & Poor’s (S&P) issued a general warning that Asian central banks might need to act with dispatch to avoid stoking inflation expectations.

"For the next policy meeting, we will take into account all the developments that we have seen and that we will see between the last policy meeting and the next one," BSP Governor Amando M. Tetangco, Jr. told reporters last Thursday.

"So we’ll have to reassess the inflation outlook given the developments during this period and then come up with an overall evaluation of the price situation."

The Feb. 10 decision not to touch policy rates came as inflation rose to 3.5% in January from December’s 3%. The Monetary Board, however, raised its 2011 and 2012 inflation forecasts to 4.4% and 3.5%, respectively, from 3.6% and 3% previously.

The new outlooks remain within the BSP’s target inflation range of 3-5% for both years. Actual inflation averaged 3.8% last year, also within the 3.5-5.5% target.

"There are other factors that can affect the inflation forecast and then on that basis, we will make a decision on the policy interest rate. But right now, since we met only last week, the stance is still appropriate," Mr. Tetangco said.

He also claimed that the relatively small size of the BSP’s rate cuts -- a total of 200 basis points compared to 300-500 bps in other countries -- was another argument against an immediate tightening of policy.

The BSP’s overnight borrowing and lending rates were lowered to 4% and 6%, respectively, during the course of the global financial crisis and have been kept at those levels since July 2009.

"Our interest rates actually have remained positive in real terms," Mr. Tetangco said, reiterating a BSP argument that these have stayed ahead of inflation.

Asked to comment, University of the Philippines economist Benjamin E. Diokno said a tightening of policy was unlikely during the March 24 meeting.

Inflation data for February is scheduled to be released during the first week of March.

"My reading of the BSP’s statement is that it will not raise rates yet in the meeting in March. Rates were not really reduced significantly," Mr. Diokno said.

Earlier this week, HSBC senior economist Frederic Neumann said rate hikes would likely start in May but added: "We would like to see interest rates go up at the March meeting".

"I think the earlier, the better, especially since the Philippines is now the stand-out in the region [in terms of not having raised rates] ... To reassure markets, it might be prudent to act early," he said.

While the BSP has so far been successful in keeping inflation within target, it "must cement its inflation-fighting credibility. It has to reinforce that through a rate hike," Mr. Neumann said.

Debt watcher S&P, meanwhile, last Monday said in a report that inflation expectations could be kindled if Asian central banks tolerated the rise in prices and increased interest rates too gradually.

"The optimal policy mix to combat inflation is likely to be different in each economy," S&P said. "But we believe that monetary authorities can only succeed in taming inflation expectations if they show their willingness to tighten monetary conditions in a preemptive manner," it added.

The BSP, along with its Indonesian counterpart, was cited as among those which had delayed rate hikes to this year. Indonesia finally raised its benchmark rate last Feb. 4 .

Mancao files motion to intervene in Lacson case

2011-02-15T13:46:00.000-08:00

MANILA, Philippines - Former police officer Cezar Mancao filed Tuesday a motion for leave to intervene before the Court of Appeals in an effort to reverse the appellate court's ruling junking two murder complaints against Sen. Panfilo Lacson for the Dacer-Corbito twin killing in November 2000.

In the ruling dated February 3, 2011, the appellate court said Mancao, in implicating Lacson, was an incredible and untrustworthy witness.

Mancao said the ruling was "unfair" because he was not even party to the case for certiorari (review) filed by Lacson and was thus not given an opportunity to explain why his affidavits dated June 2001 and March 2007 was "inconsistent" with his February 13, 2009 affidavit.

It was in the 2009 affidavit that Mancao implicated Lacson, or 8 years after the execution of his first affidavit.

"It's unfair po sa CA na hinusgahan ako na nagsisinungaling nang hindi naman naririnig ang aming panig," Mancao told reporters in a news conference today.

"Intervenor's rights as an accused and a witness, and his interest in the treatment of his extra-judicial testimonies, have been transgressed without due process in the present proceedings, and such rights and interest may not be defended, protected or restored if he is not allowed to intervene," Mancao's motion meantime read.

Mancao's counsel, Ferdinand Topacio, claimed it is not the appellate court which should rule on the credibility or lack thereof of Mancao but the trial courts.

"Ang sinasabi namin sa CA, kung hahatulan niyo kami isali nyo kami diyan at pakinggan ninyo ang aming panig. Sinaklaw nyo ang kapangyarihan ng trial court na maghatol sa isang kaso nang hindi man lang narinig si col mancao," Topacio said.

Apart from the motion to intervene, Mancao also filed a motion for reconsideration-in-intervention where he maintained that Lacson's petition "should have been dismissed outright" because it was not Lacson but Lacson's counsel, Alexander Poblador, who signed the Verification and Certification Against Forum Shopping attached to the petition.

Citing a Supreme Court ruling in Clavecilla v. Quitain and a Court of Appeals ruling in Mariveles Shipyard Corp. v. Court of Appeals, Mancao insisted it should have been petitioner Lacson himself who signed the certification.

Mancao also assailed why no justification was provided by Lacson for his failure to personally sign the certification against forum shopping.

Mancao's MR alleged Lacson actually engaged in forum shopping because, through counsel, he raised the same issues he elevated to the appellate court before the trial court.

He also assailed why Lacson was allowed relief by the appellate court when he refused to submit himself to the jurisdiction of the courts by refusing to honor a warrant for his arrest.

"A person who has not submitted himself to the jurisdiction of the court has no right to invoke the processes of the courts," Mancao's MR read.

PALEA denies agreeing to settlement in labor row

2011-02-15T13:44:00.000-08:00

MANILA, Philippines - The ground crew union of Philippine Airlines (PAL) has denied it agreed to consider a partial settlement of its dispute with the airline's management before Malacañang hands down a decision on the year-long labor row.

The PAL Employees' Association (PALEA) issued a statement, saying it was not open to a gradual implementation of PAL's outsourcing plans and higher separation pay as settlement.

"Neither management or the union proposed such ideas in the mediation meeting called by the Office of the President last Friday," said PALEA president Gerry Rivera.

Rivera was reacting to news reports by ANC and abs-cbnNEWS.com that cited a radio interview of deputy presidential spokesperson Abigail Valte.

Valte was quoted as saying that the parties were mulling a settlement during Friday's 1.5-hour meeting.

"We certainly made it clear that we do not agree to either gradual outsourcing or higher separation or both,"Rivera said.

"We hope that Malacañang will issue its own clarification since such 'wrong mistakes' will not help the Office of the President in mediating the PAL and PALEA dispute," he added.

Rivera maintained his group was against PAL's plan to outsource non-core units, which would lead to the retrenchment of some 3,000 workers.

He said what they asserted was the commencement of collective bargaining agreement (CBA) negotiations with PAL management.

"PALEA must remain vigilant until the CBA negotiations actually start and our mass actions serve this purpose of alerting PAL and the government that we are not complacent. CBA negotiations will be historic since it will mean the end of the dozen year moratorium," Rivera said.

However, PAL president Jaime Bautista had said that the Lucio Tan-owned airline was firm in its decision to let go of non-core units, and that any new CBA would be negotiated with only those who would be left behind after the spin-off.

US embassy: We audit grants we gave to Philippine military

2011-02-05T01:03:00.000-08:00

MANILA, Philippines - The US Embassy in Manila has decided not to comment directly on the ongoing exposés surrounding the malversation of funds by top officers of the Armed Forces of the Philippines (AFP).

Statements from retired Lt. Col. George Rabusa, former AFP budget officer, and those of former state auditor Heidi Mendoza also point to funds from the United Nations as among those missing from AFP coffers.

Rabusa had also mentioned that funds allotted for the annual joint Philippine-US Balikatan military exercises as part of the sources of "pabaon" to high-level AFP officials.

When asked if the United States is also now concerned as to the safety of their own funding, the embassy replied in a text statement: "The United States Government conducts auditing and end-use monitoring to ensure foreign assistance grants are used properly."

The United States is a major source of military assistance by the Philippines through grants and military equipment.

A member of the Transparency and Accountability Network, meanwhile, expressed shock at the systemic corruption revealed in the exposés.

“Ako shocked pa rin ako, kung gaano na ka-pervasive ‘yong corruption. Kasabwat din pala ang COA [Commission on Audit]. Imagine, pati ‘young nagbabantay ay nababahiran na,” said Dean Tony La Viña of the Ateneo School of Government (ASG).

La Viña, a member of TAN, said the latest revelations differ from other scandals like the botched national broadband network deal with ZTE and MegaPacific deals, because these were done with a single action. In comparison, corruption in the AFP entailed many people performing corrupt acts for unknown periods of time.

“What's shocking here is that heneral, colonel, auditor ang gumagawa nito... Mga taong hindi dapat gumagawa ng mga bagay na ganito,” said the ASG dean.

La Viña said that if not managed properly by the current AFP leadership, this exposé could very well spark yet another outrage from the lower ranks of the military.

And while the revelations in no way justify past uprisings from the military like those of Oakwood and Manila Peninsula, the ASG dean said he believes this would make the people more sympathetic to the motivations of junior officers who may become disgruntled.

MILF admits major split ahead of talks

2011-02-05T01:01:00.000-08:00

SULTAN KUDARAT, Philippines - The Philippines' largest Muslim insurgent group said Saturday it has a potentially serious rebellion in its ranks after a key leader broke away ahead of peace talks with Manila.

Ameril Umbrakato resigned from the Moro Islamic Liberation Front (MILF) seven months ago, taking with him at least a thousand MILF fighters, top MILF leaders told a news conference.

The development poses a potentially major problem to formal peace talks scheduled to start in Malaysia on Wednesday, conceded Murad Ebrahim, chairman of the 12,000-member movement.

"We are talking with them and urging them to toe the line on the MILF position," Murad said.

Previous peace talks collapsed in 2008 after the Supreme Court outlawed a draft peace settlement that would have given the MILF control over large areas of the mineral-rich southern island of Mindanao.

The group has began waging a rebellion since 1978 for an independent Muslim state on Mindanao, which makes up the southern third of the largely Roman Catholic Philippines.

The Supreme Court's decision triggered attacks by MILF commanders including Umbrakato on Christian communities in Mindanao. The resulting surge in violence displaced 750,000 people and left nearly 400 dead, according to official data.

More than 150,000 people have died since the early 1970s due to the rebellion, according to the government.

Mohagher Iqbal, head of the MILF peace negotiating panel, said Umbrakato accused the leadership of turning its back on the original goal of an independent Muslim nation.

"He said the MILF is a revisionist group," Iqbal said.

"We have sent ulamas (Muslim elders) to talk to him and we are trying to engage him," Iqbal added.

The MILF itself is a 1978 splinter of the Moro National Liberation Front, which signed a 1996 peace treaty that won the large Muslim minority limited self-rule in four Mindanao provinces.

FAO sees 2008 food crisis repeat

2011-02-05T00:57:00.000-08:00

MANILA, Philippines The Food and Agriculture Organization (FAO) of the United Nations warned of a repeat of the 2008 global food crisis as crop harvests fall in the United States, Europe, Australia and Argentina, and agricultural-commodity prices spike in global markets.

FAO Director General Jacques Diouf noted that the volatility in the price of agricultural products is due partly to the failure of rich and poor countries to address the structural imbalances in the international agricultural system.

“We continue to react to circumstances and, thus, engage in crisis management,” said Diouf in a statement.

He warned that if current trends persisted, one of the Millennium Development Goals (MDGs) set by world leaders would not be met by 2015.

“Reducing by half the number of hungry people on the planet by 2015 would only be achieved in 2150 if current trends persist,” said Diouf.

“We must, therefore, forcefully remind everyone that conditions needed for an adequate supply of food for a population that is constantly growing and that, in the next 40 years, will require a 70% increase in agricultural production worldwide and a 100% increase in the developing countries,” he stressed.

FAO said the solution to the problem of hunger and food insecurity in the world requires an “effective coordination” of decisions on investment, international agricultural trade and financial markets.

“In an uncertain climatic context marked by floods and droughts, we need to be in a position to finance small water-control works, local storage facilities and rural roads, as well as fishing ports and slaughterhouses,” said Diouf.

FAO said there is a need to conclude the Doha Round of negotiations at the World Trade Organization (WTO) to put an end to “market distortions and restrictive trade practices.”

“Finally, there is a pressing need for new measures of transparency and regulation to deal with speculation on agricultural commodity futures markets,” said Diouf.

FAO said implementation of such policies at the global level requires the respect of the commitments made by the developed countries, notably at the Group of 8 Summits of Gleneagles and L’Aquila, as well as at the Group of 20 Summit in Pittsburgh.

Developing countries such as the Philippines, said FAO, must increase their national budget allocations to agriculture and to ensure that private foreign direct investments will be made in conditions that will ensure “an equitable sharing of benefits among the different stakeholders.”

“Crisis management is essential and a good thing, but prevention is better. Without long-term structural decisions and the necessary political will and financial resources for their implementation, food insecurity will persist with a succession of crises affecting most seriously the poorest populations,” said Diouf.

SM Investments eyes P7-B from notes issue

2011-02-05T00:42:00.000-08:00

MANILA, Philippines - Mall-to-banking group SM Investments Corp. (SMIC) announced on Friday it would issue P7 billion worth of 5-year corporate notes to refinance debt.

In a statement to the Philippine Stock Exchange, SMIC said the notes would be priced "at 50 basis points above the PDSTF and will be available via private placement to institutional lenders."

The conglomerate will use most of the proceeds to refinance an existing liability worth P4.3 billion which will mature in 2012. The balance will go to other corporate requirements.

ING Bank N.V., Manila Branch has been appointed lead manager and sole bookrunner for the issue.

SMIC, owned by the country's richest man Henry Sy, earlier said it expected earnings growth of 12% to 14% this year.

Shares in the company, which has interests in mall operator SM Prime Holdings Inc. and top lender Banco de Oro Unibank Inc., fell 0.6% in a market that was down 0.06%.

San Miguel wants steep premium for share sale

2011-01-26T14:46:00.000-08:00

Share sale eyed within Q1

MANILA, Philippines - San Miguel Corp. plans to price a share offer in the first quarter at a steep premium to the current market price, its president said, setting it at a level that would raise more than P200 billion.

The issue would be priced at more than P200 ($4.5) per share, 20% or more above Wednesday's closing price, San Miguel president Ramon Ang said.

In December, Ang said the sale would be at least 1 billion shares.

San Miguel shares fell as much as 2.2% on Wednesday before erasing its losses to end flat at P160.5.

They have more than doubled since late October, and hit a peak of P189.5 early this month.

"Definitely," Ang said when asked about a share price of more than P200. He had said last year the shares may be sold at P150 to P200 apiece.

Given Ang's estimate, the offer would raise more than P200 billion ($4.5 billion) for San Miguel, dwarfing the country's biggest initial public offer in dollar terms, a listing of just over $600 million by Cebu Pacific last October.

San Miguel said the money would help fund further investments in power, infrastructure, mining, telecommunications -- the areas it has entered into in the past 3 years or so as it diversifies away from its traditional food and beverage businesses.

It is not clear how the sale would be organized.

The offer is seen to increase San Miguel's public float, which is below the 10% minimum threshold. The low free float level triggered San Miguel's removal from the roster of blue chip firms making up the benchmark Philippine Stock Exchange (PSE) index.

The PSE has said it was giving listed companies one year to comply with the minimum public float rule without incurring penalties.

Amid price hikes, Aquino open to amending Oil Deregulation Law

2011-01-26T14:45:00.000-08:00

MANILA, Philippines - President Aquino is open to amending the Oil Deregulation Law amid the almost weekly price increases by most oil companies.

“I think it was in my first term [that] I first mention that I really was wondering, how come they all increase their prices to the same level and roughly at the same time?" he told reporters on Jan. 26.

"There should have been different efficiencies that would have produced the price factors. So that is, I guess, an aspect that I want to really study further,” Aquino said after attending the Tenth Biennial Conference of the International Council of Universities of St. Thomas Aquinas (ICUSTA) at the University of Santo Tomas campus.

He also said he is open to a suggestion for the Palace to sit down with private oil firms for a possible 30-day 'waiting period' before implementing a price hike.

"That seems to be a good suggestion. We will have to consult the oil companies. As you know, [the] price of oil in the world market -- by information -- keeps on increasing. So perhaps that can be a formula that can meet their needs and also meet our desire to keep the prices more reasonable," President Aquino told reporters

In a statement on Jan. 25, Sen. Ralph Recto said the 30-day 'waiting period' "would give motorists and other oil-dependent sectors some breathing space before another price shock hits them."

“The weekly price increases are now taxing the patience and wallets of the public. The government could temper the accumulating national outrage by appealing to oil companies to do their increases every 30 days,” wrote the Senate ways and means chair and energy panel senior member.

The senator also noted that the waiting period coincides with the first-in-first-out policy in accounting for oil inventory. This means that oil stocks bought at lower prices or before any upward global price movement should be the first stocks to be sold to the public.

Analysts have warned that continuous oil price hikes will soon impact cost of goods and services in the country.

The oil price hikes hit consumers after the Aquino administration gave its nod to other transportation-related increases, such as toll rates and train fares.

The government targets an inflation rate within the 3% and 5% range in 2011.

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2011-01-20T15:46:00.000-08:00

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UN forecasts 2011 Philippine growth at 4.6%

2011-01-18T13:15:00.000-08:00

MANILA, Philippines - The economic growth of the country will likely slow to 4.6% this year before picking up to 5.1% in 2012 as a global deceleration continues, the United Nations on Jan. 18.

The country forecasts, contained in the UN’s World Economic Situation and Prospects 2011 report released on Tuesday, are lower than the government’s 7-8% target and the 5% assumed in this year’s budget.

It is also lower than World Bank’s 5% and 5.4% outlooks for 2011 and 2012, respectively, that were announced last week.

The UN, which expects the Philippines to have grown by 6.8% last year -- above the 5-6% target -- said East Asian economies should expect growth to moderate this year as external demand weakened. The region’s exports, which rebounded last year, could "slow down markedly in 2011."

Growth forecasts for the region were set at 7.2% and 7.4%, respectively, for this year and the next, while those for the world were set at 3.1% for 2011 and 3.5% for 2012.

"Weaknesses in major developed economies continue to drag the global recovery and pose risks for world economic stability in the coming years," the UN said.

While East Asia had managed to rebound from the global economic crisis, downside risks exist in the form of rapid short-term capital inflows.

"These capital flows lead to exchange-rate pressures, while also increasing the risk of asset price bubbles and of accelerating inflation," the report said.

International coordination, the UN said, is needed to avert a renewed downturn. Five policy challenges were identified: continued and coordinated stimulus, a redesign of fiscal policy, more effective monetary policy and the need to address global spillover effects, access to funding for the Millennium Development Goals (MDGs), and concrete and enforceable targets.

A sidebar in the report noted that the Philippines needed to spend 1-1.5% of its GDP annually between 2010 to 2015 to meet the MDG goals for education, health and basic social services.

The report also forecast higher inflation of 4.2% this year and in 2010, from 3.9% last year -- the full-year figure is actually 3.8%. Unemployment was expected to have hit 7.4% last year.

Sought for comment, NEDA Deputy Director-General Augusto B. Santos claimed the country was not as export-dependent compared to neighbors such as South Korea and Taiwan.

"While our exports may decline... I don’t think we will be much affected," he said.

A slowdown, however, will still occur this year, said Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr.

"We are projecting a growth of 11% as compared to more than 30% in 2010," he said.

BSP sees no need to raise rates

2011-01-18T13:04:00.000-08:00

MANILA, Philippines - The central bank sees no need at present to raise interest rates or tighten other policy settings, with inflation seen moderate in the near term despite rising global fuel and food costs, Governor Amando Tetangco said.

Emerging price pressures, such as in food and energy, prompted the Bangko Sentral ng Pilipinas's (BSP) to raise its inflation forecast for 2011 to 3.6% from 2.35% at a policy review last month, when it left its key interest rate at a record low of 4%.

"There is no urgent need for the BSP to raise interest rates at this time because the inflation outlook continues to be within the inflation target for the next two to three years," Tetangco told Reuters in an interview on Tuesday.

The revised central bank inflation forecast is consistent with the government's target range of 3% to 5%.

"Right now, the way we see it, the situation is manageable and the potential spillover will continue to be limited, and inflation expectations are still consistent with the medium-term inflation target of 3% to 5%," Tetangco said.

Food inflation has risen to the top of the agenda for many policymakers with memories still fresh of the 2008 food crisis, when soaring prices sparked riots in several countries, high inflation and in several cases deep trade deficits.

Governments around the world have been taking measures to tackle soaring grain prices, with China dumping plans to import several million tonnes of expensive corn, and South Korea cutting import tariffs on some products.

Inflation pressures

The Philippines on Thursday said it would suspend import duties on wheat and cement imports.

Tetangco said monetary policy could not address supply-side factors that were generating inflation pressures, noting that in 2007 and 2008, the BSP had not responded to first-round effects of rising food and fuel prices.

"If there are second-round effects that are beginning to emerge, such as the possibility of increase in wages, then I think there is scope for monetary policy to consider a change in the stance if there is a threat to meeting the inflation target."

In 2010 inflation was 3.8%, at the low end of the government's 3.5% to 5.5% target range. A Reuters poll last month found analysts expect inflation of 4.2% in 2011.

The Philippines is one of few countries in the region not to have raised rates since the end of the global financial crisis and says it can continue to do so as long as inflation is benign.

But with the economy having gathered steam and price pressures expected to grow, analysts believe the central bank will start raising rates towards the middle of the year.

BIR closes down 475 stalls in 5 malls

2011-01-18T12:53:00.000-08:00

MANILA, Philippines (UPDATE) - The Bureau of Internal Revenue (BIR) on Tuesday broke the record for single-day closures under its Oplan Kandado (OK) Program after it shut down 475 stalls in 5 popular malls in Manila due to various tax violations.

The government's main tax agency said it closed down 208 shops in Binondo, including 85 stalls in the 168 Mall, 108 in the 999 Mall, and 15 in the 1188 Mall.

In Tondo, a total 267 business establishments -- 160 at the Tutuban Center and 107 at the New Divisoria Mall -- were padlocked.

The 475 businesses were shut down mainly because of their failure to register their operations with the BIR in spite of having been served notices.

BIR Deputy Commissioner for Operations Nelson Aspe, who signed the closure orders, said some shops were not issuing official receipts and paying the value-added tax.

“This should serve as a strong warning to all recalcitrant business operators. As long as they do not comply with the requirements of the Tax Code, we will spare no one from being closed under the OK Program of the BIR. This will go on until everybody has learned their lessons," Aspe said.

BIR Deputy Commissioner Estela Sales echoed the same sentiment. "This is just an administrative remedy (closures). If we find compelling reasons like substantial underdeclarations in their income/sales, we will file the necessary charges in court under our Run After Tax Evaders (RATE) Program. So heed our call and be spared of the dire consequences of non-compliance with our requirements.”

The BIR has estimated it was losing P100 million to P200 million in yearly revenues from the 475 shops alone.

Mall owners, meanwhile, welcomed the BIR's move to weed out non-compliant tenants. They assured that they would coordinated with the tax bureau regarding such efforts.

The BIR said it would be inspecting all malls throughout the country as pursuant to the OK program under the leadership of BIR Commissioner Kim Henares.

5 found guilty of graft in megadike case

2011-01-14T14:20:00.000-08:00

MANILA, Philippines - Former Public Works Secretary Florante Soriquez and 4 other DPWH engineers were found guilty of graft for alleged criminal negligence in connection with the failure of a section of the P38.29 million Pampanga Megadike on August 3, 1996 that buried 3 towns under water and lahar.

In an 80-page Decision penned by Associate Justice Roland B. Jurado, the Sandiganbayan Fifth Division on Friday sentenced Soriquez and project supervising engineers Rey S. David, Ulysis Manago, Juan M. Gonzales and Gil A. Rivera to 6-9 years imprisonment with perpetual disqualification from holding public office.

They were also ordered to indemnify the government in the amount of P12.7 million corresponding to the cost of the construction of the megadike section that collapsed.

Associate Justices Teresita V. Diaz-Baldos and Napoleon E. Inoturan concurred with the ruling.

Soriquez was program director of the Mt. Pinatubo Rehabilitation – Project Management Office (MPR-PMO) when the megadike failed.

“The prosecution was able to prove that accused Soriquez, and DPWH engineers were inexcusably negligent in implementing the megadike project. Obviously, accused program director and DPWH engineers and inspector failed to comply with these rules (on construction specification). If they had so complied, they would have known the volume of lahar and floodwater it could contain, the structure’s stability or whether or not seepage may occur,” the court declared.

Private defendants Ariel T. Lim, chief executive officer of contractor Atlantic Erectors Inc., and his co-officials Neil Allan T. Mary, Alberto Teolengco and Remigio Angtia Jr. were acquitted for lack of evidence.

Prosecutors questioned why the MPR-PMO, the agency tasked to oversee the project, released payment of P12.7 million to Atlantic Erectors despite the contractor’s non-compliance with structural standards.

But in a separate decision last October 13, the graft court’s First Division acquitted DPWH Bureau of Design director Bienvenido C. Leuterio; Engineers Gregorio O. Carillo, Gilberto S. Reyes, Pedro P. Tercino, Raymundo G. Adawag and Darius F. de Guzman; DPWH-BoD Hydraulic Division chief Sofia T. Santiago; and Design Section officer-in-charge Ramon F. Velasquez, saying it is more inclined to believe that the damage was caused by faulty construction rather than poor design.

Plunder complaint vs Ampatuans filed

2011-01-14T14:13:00.000-08:00

MANILA, Philippines - Seven relatives of victims of the Maguindanao massacre filed a plunder complaint on Friday against 25 members of the powerful Ampatuan clan.

Included in the complaint filed at the Ombudsman are former Maguindanao Governor Andal Ampatuan Sr., massacre primary suspect and former Datu Unsay Mayor Andal Jr., former Autonomous Region in Muslim Mindanao Governor Zaldy and their wives and siblings.

Others named in the complaint are: Sajid Ampatuan, Anwar Ampatuan, Yacob Ampatuan, Akmad Ampatuan, Rebecca Ampatuan, Jehan-Jehan Ampatuan, Laila Ampatuan, Baibon Shahira Ampatuan, Bai Farida Ampatuan, Ameera Ampatuan, Michelle S. Ampatuan, Alibai Ampatuan, Shaydee Ampatuan, Bai Zandra Ampatuan, Bai Honee Ampatuan, Lady Sha-Honey Ampatuan, Bhanarin Ampatuan, Soraida Ampatuan, Zandria Sinsuat-Ampatuan, Michael A. Sulaik, Joemar Ayunan Olimpayan, And Kuzberi Lumenda Ampatuan,

The complaint is based on the investigative report of journalist Carol Arguillas who works for MindaNews in Davao.

The complainants are Ramonita Salaysay, Editha Mirandilla Tiamzon, Juliet Palor Evardo, Ma. Cipriana Gatchalian, Arlyn Lupogan, Catherine Nuñez and Myrna P. Reblando.

The complainants are seeking that the Ombudsman charge the named members of the Ampatuan clan for violation of the application provisions of Republic 7080 or Anti-Plunder Law, Republic Act 1379 or Forfeiture Law and Republic Act 3019 or Anti-Graft and Corrupt Practices Act among others.

Listed in the complaint are 35 mansions owned by the Ampatuans in Davao alone. Eight of these are reportedly owned by Andal Sr., 16 by Andal Jr., and two by Anwar. Sajid and Rebecca own 3 houses each.

While the Davao City Assessor’s office has no record of Zaldy owning any house, it is believed he owns a mansion in Juna Subdivision. Zaldy's wife, Bongbong, owns two houses in Davao.

The properties are estimated to be worth P110 million.

Arguilles also discovered that the Ampatuans have 121 vehicles.

Fifty-three are new models of luxury cars, including 3 Hummers, 3 Land Rovers, 2 Suburbans, and 1 Humvee, a military vehicle.

Twenty-six of the vehicles are registered under the name of Andal Sr. but more than half of the cars found in the warehouse of Andal Sr.’s mansion in Maguindanao last December 2009 are not registered with the Land Transportation Office.

The Ampatuans' properties and vehicles combined could be worth P200 million.

The complaint does not include the Ampatuans' assets in Maguindanao, Cotabato City, Sultan Kudarat and Manila.

The victims' relatives who filed the complaint want the government to freeze and retrieve the Ampatuans' assets.

This is not the only plunder case the Ampatuans will have to face. Another group of victims' relatives is also preparing another case.

BIR to tax listed firms below 10% public float rule

2011-01-14T13:56:00.000-08:00

MANILA, Philippines - The Bureau of Internal Revenue (BIR) is imposing the capital gains tax on stock transactions involving publicly listed firms that do not comply with the minimum public float rule.

On Friday, stock market players were informed belatedly of the BIR’s move in a notice posted on the Web site of the Philippine Stock Exchange (PSE). The Securities and Exchange Commission (SEC) got the letter from the BIR on Dec. 28, and forwarded it to the PSE on Jan. 3. The date stamp showed the letter was received by the bourse only last Jan. 5.

The BIR said it wanted to collect the capital gains tax beginning Jan. 1, pointing out that many PSE firms could no longer be considered publicly listed, and therefore no longer entitled to tax perks. The PSE required listed firms to maintain their public float, or the level of public ownership, at 10%, late last year, and gave those that did not meet the threshold a grace period of one year.

"In order to qualify as a publicly listed company, initial public offering (IPO) requirement is set between the range of 10% to 33% depending on the market capitalization, as such all listed companies should maintain nothing less than their initial public offering as continuing listing requirement," the BIR said in its letter to the SEC.

Currently, the PSE requires firms seeking to go public to have a 33% float or P50 million worth of shares, whichever is higher, for companies with a market capitalization not exceeding P400 million. The minimum float is 25% or P100 million worth of shares, whichever is higher, for those with market capitalization of more than P400 million up to P1 billion; 20% or P250 million worth of shares, whichever is higher, for those with market capitalization of more than P1 billion up to P5 billion; 15% or P750 million worth of shares, whichever is higher, for those with market capitalization of more than P5 billion up to P10 billion; and 10% or P1 billion worth of shares, whichever is higher, for those with market capitalization of more than P10 billion.

"Listed companies should continually maintain, if not surpass their IPO requirement to continually enjoy the preferential tax rate of 1/2 of 1% of gross selling price of gross value on money on disposals by stockholders of publicly-listed shares through the exchange," the BIR said.

Erring companies will be subject to the 5-10% capital gains tax, the BIR said.

The capital gains tax is defined by the BIR as the tax imposed on "gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines."

The BIR said it would strictly impose the rule starting Jan. 1. This will provide liquidity to investors, ensure fair prices, guard against manipulation of prices, and serve as a "tool for redistribution of wealth in the general public," the BIR said.

The tax agency also told the SEC that 50% of the value of the outstanding capital stock of listed firms should not be held by less than 20 individuals.

Moreover, since SEC rules require that independent directors occupy 20% of a listed firm’s board seats, the public float should be at a minimum 20%. This is in conflict with the existing 10% public float requirement of the PSE.

The PSE, the country’s only stock exchange, has 253 listed firms and 133 active trading participants. Forty companies have yet to comply with the 10% public float rule.

Belle taps Resorts World for $1-B gaming complex

2011-01-14T13:37:00.000-08:00

MANILA, Philippines - Upscale leisure developer and gaming firm Belle Corp. and Leisure Resorts World Corp. (LRWC) formalized on Jan. 14 their partnership with the signing of an agreement.

The agreement mandates LRWC to operate and manage the gaming component of a planned $1-billion integrated resort complex along Roxas Boulevard to be called Belle Grande Manila Bay.

In a briefing, Belle vice-chairman Willy N. Ocier said the management contract with AB Leisure Global Inc., a subsidiary of LRWC, is good for 10 years and renewable by consent of the two parties.

When asked about the revenue sharing, Belle executive vice-president and chief finance officer Manuel Gana said LRWC shall get 15% of net income or 50% of EBITDA (earnings before interest, taxes, depreciation and amortization), whichever is higher.

Sources said Belle is seen to post around P1.5 billion in net income next year with the first full year operations of its planned multi-billion peso casino complex, which is expected to be almost double the size of Resorts World Manila, a luxury casino resort located in Newport City across the Ninoy Aquino International Airport.

Belle wholly owns Premium Leisure & Amusement Inc. (PLAI), which was granted a provisional license by the Philippine Amusement & Gaming Corp. to establish a casino to be located within the reclaimed Manila Bay.

For the past three years, Belle has been earning P300 million to P400 million in net income a year from Highlands Prime, plus equity earnings from Pacific Online Systems Corp., the exclusive online lottery equipment provider in Visayas and Mindanao.

Slated for soft opening in the fourth quarter this year, the casino complex will make available 15,000 to 20,000 square meters of gaming space in the next three years with a total of 1,600 slot machines, 300-320 tables and 1,500 hotel rooms.

Ocier said the group is still looking for a partner to operate the hotel as part of its plan to lure more gaming enthusiasts in the country.

He said Macau-based gaming consultancy firm Asia Pacific Gaming (APG) will provide management expertise.

APG has extensive experience managing casinos and hotels in Macau and throughout the Asia Pacific region. It has been engaged by clients in South Korea, China, Macau, Philippines, Australia, New Zealand, Vanuatu, Tahiti and the United States.

Belle is considering tapping the debt market or equities market to fund the construction of Belle Grande Manila Bay. It earlier obtained a P5.6-billion loan from Banco De Oro.

Together with the SM Group, Belle has committed to inject $1 billion into the project over a 25-year period. The SM Group will be in charge of non-gaming developments which include hotels, a sports arena, museum and an oceanarium.

PNoy to tap Mar as 'chief troubleshooter'

2011-01-07T20:49:00.000-08:00

MANILA, Philippines - President Benigno Aquino III will tap the services of former Senator Mar Roxas in an official capacity when the one-year ban against appointing losing candidates in the elections ends.

The president did not name the exact position he will give to Roxas, saying the defeated vice-presidential bet will serve as one of his top “troubleshooters.”

“I-the-thresh out pa ang details. It will take effect June 30, yung end of the ban. Pero I will really be tapping his expertise on so many aspects. He might be one of my chief troubleshooters. If there’s something that needs more intense attention, I might ask him to do that, if he is willing,” President Aquino told reporters after hosting the traditional New Year’s vin d’ honneur in Malacañang.

Roxas has been serving in the Aquino administration in an unofficial capacity.

Interviewed by ABS-CBN in September, Roxas said he helps the President whenever he is asked. “Kung ano ang iutos [ng Pangulo],” he said in an interview.

Moody's upgrades Philippines outlook to positive

2011-01-07T20:45:00.000-08:00

MANILA, Philippines (UPDATE) - Moody's Investor Services upgraded the outlook on the Philippines' foreign and local-currency bond ratings to positive from stable on Thursday, a day after the government sold $1.25 billion of global peso bonds.

A rating upgrade would depend on the government's commitment to fiscal consolidation in an improving economic environment, the ratings agency said in a statement.

"Most likely, this will require continued expenditure restraint and improved revenue performance," Moody's said, noting the government had made a "notable turnaround in fiscal management" in its first 6 months in office.

Moody's rates the Philippines at Ba3, 3 rungs below investment grade. An investment grade rating would lower the costs of borrowing and servicing debt for the country, and would also widen the pool of potential investors in its bonds.

The Philippines, Asia's largest sovereign issuer of foreign currency debt, sold $1.25 billion of 25-year global peso bonds on Wednesday.

Strong economic fundamentals

Moody's cited a strengthening external payments position, well-anchored inflation expectations and improved prospects for economic reform as behind the outlook upgrade.

"Foreign exchange reserves continue to accrue at record levels on the back of robust overseas foreign worker remittances, services exports, and sizeable capital inflows," said Christian de Guzman, an Assistant Vice President at Moody's and its lead sovereign analyst for the Philippines.

"The BSP's (central bank) inflation targeting regime has gained traction and has contributed to macroeconomic stability," he added.

Prospects for greater political stability following the unambiguous outcome of the May 2010 national elections also added momentum to resilient economic growth by encouraging more foreign direct investments and boosting domestic consumer confidence.

De Guzman said the government also posted a turnaround in fiscal management in the first semester of 2010, but its debt stock remains large compared with its rating peers.

Gov't hopes for rating upgrade

Meanwhile, the Aquino administration welcomed Moody's outlook upgrade, saying it came at a time when the outlook for many other economies was more cautious.

"Moody's action reflects the international markets' recognition of the improving fiscal and monetary conditions in the country," Presidential Communications Strategy Secretary Ricky Carandang said.

"The Aquino administration is encouraged by this development and is continuing its efforts to improve the environment for both portfolio and direct investments," he added.

Carandang, along with National Treasurer Roberto Tan, said the government was looking forward to an actual rating upgrade from Moody's.

"We hope with this favorable outlook change, an upgrade is forthcoming in the near future," Tan said.

In November, another debt watcher, Standard & Poor's, raised the Philippines' foreign currency rating to BB, 2 notches below investment grade. Fitch Ratings also rates the country 2 notches below investment grade.

Lower budget deficit

The government has said the budget deficit for 2010 would be lower than a forecast of P325 billion, or 3.9% of GDP. It has forecast the deficit will fall to 2% of GDP by the end of 2013 and then be maintained at that level.

Before the change was announced, Finance Secretary Cesar Purisima said the Philippines deserved a ratings upgrade.

"I think it's a matter of time that, so long as we continue to focus on the fundamentals, good things will happen," he told reporters.

"As far as I'm concerned... the market is giving us already a rating that is much higher, so I really leave it up to them."

Hyundai posts 82% jump in 2010 auto sales in Philippines

2011-01-07T20:43:00.000-08:00

MANILA, Philippines – Hyundai Asia Resources Inc. (HARI), the official distributor of Hyundai automobiles in the Philippines, reported an 82% growth in sales to 20,172 units in 2010.
However, a month-on-month comparison showed a decline. December sales dipped when compared to November figures due to stock availability of the Tucson. For December, passenger car sales was at 689 units while light commercial vehicles (LCV) was 787 units.
HARI president Fe Perez-Agudo credited the outstanding sales of passenger cars to Accent and Getz and the introduction of Sonata. The light commercial vehicle figures were backed by the strong sales of Grand Starex, Tucson and Santa Fe.
“Last year, our country was quick to recover from the global financial crisis in 2009, thanks to renewed confidence in the government. This helped pave the way to invigorate the economy thereby increasing consumer spending and strengthening the purchasing power of the middle class,” Agudo said.
“Thanks to the creation of new job opportunities especially in the BPO and information technology industries the continuing success of OFW’s whose contribution to the economy thru their remittances continue to help strengthen the country’s GDP,” Agudo added.
“With its stellar sales in 2010, Hyundai looks forward to 2011 with even greater confidence, and a boldness that stems from its heightened passion to bring the uniquely refined motoring experience closer to more customers,” Agudo said.
“With that said, Hyundai enters the New Year, not just with a bang, but with an explosive doggedness – and undeniably, the best is still to come from Hyundai,” she added.
Data showed that Hyundai’s December 2010 sales evidently surpassed its December 2009 record with a solid 63.8% growth, keeping its market presence as upbeat as ever in time for the New Year.
For passenger car, sales of Hyundai grew by 128.1%. As for month-on-month sales, Hyundai’s December 2010 PC sales also lead by a huge margin from its December 2009 sales – an outstanding 90.3% growth.

New Year's treat: Discount lane for PUVs at Shell stations abs-cbnNEWS.com

2011-01-02T01:03:00.000-08:00

MANILA, Philippines - To cushion the impact of rising oil prices, Pilipinas Shell will offer a P0.50 per liter discount on diesel for jeepneys and buses beginning January 1, 2011.

The discount will be made available under Shell's "Pepeng Pasada Loyalty Rewards Programme" for public utility vehicle drivers, and may be availed at special lanes in 15 Shell gas stations across Metro Manila.

"We hope that through this discount, we are able to help cushion the impact on the transport sector," Shell vice president for communications Roberto Kanapi said in a statement.

The Department of Energy (DoE) met with several transport groups on Wednesday and the discount lane for PUVs was one of the mitigating measures being proposed to soften the impact of higher fuel prices.

The DoE said high demand from Asian countries have pushed international fuel prices up, prompting local oil companies to implement a string of price hikes.

Transport groups have already filed a fare hike petition with the Land Transportation Franchising and Regulatory Board.

Local auto development program hits bumpy road in 2010

2011-01-02T00:54:00.000-08:00

MANILA, Philippines - The auto industry was supposed to receive a boost this year as the government crafted a new Comprehensive Motor Vehicle Development Plan (CMVDP). The plan was simple enough – encourage more firms to manufacture vehicles locally rather than sell completely built imported units. After endless consultations, the Arroyo administration signed the CMVDP, one of the last executive orders of the previous administration.

Even with the change in government, things are expected to go as planned because the only thing left to do was craft the implementing rules and regulations (IRR). The IRR which was supposed to be finished last August got pushed back until finally Trade and Industry (DTI) Secretary Gregory L. Domingo said he is not sure if the CMVDP is enough to make the local auto industry truly competitive.

Domingo is not alone in criticizing the CMVDP. A new industry group calling themselves the Alliance of Vehicle Importers and Distributors (AVID) led by Hyundai Asia Resources Inc. surfaced. From the day the group was conceptualized, AVID expressed its dismay over the CMVDP because it does not give car importers any incentives. This was immediately shot down by Board of Investments (BOI) managing head Cristino L. Panlilio who said that the CMVDP is for manufacturers and not pure importers. Panlilio said that manufacturers should be given incentives because they put in investments in hard infrastructure in the country and they provide employment.

The automotive industry has already highlighted the importance of crafting the IRR of the CMVDP as soon as possible because it is vital in the investment decision process of local car firms.

“There is a sense of urgency to finish the IRR,” Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) president Elizabeth H. Lee said in a telephone interview.

“Our current MVDP is already outdated. There is a need to implement the new one now because our neighboring countries have good investment packages for automotive firms,” Lee said.

Lee said that the industry appreciates the move of the BOI to make the IRR for the MVDP as industry friendly as possible. In fact, the BOI has even asked the industry to give specific inputs for the IRR.

Lee said that aside from attracting more potential investors in the country, the MVDP will also help existing players decide on whether or not they will expand their operations in the country. “These are low hanging fruits that we can easily access but we need to take care of them,” she explained

She admitted that the industry has unused capacity. This means that the auto manufacturers can produce more here in the Philippines but they choose not to because it is not economically viable.

On the upside, Lee said it is not too late to implement a regulation that will help make the country an attractive destination for auto firms but said that because our neighboring countries like Thailand and Indonesia have a strong incentive package for firms the Philippines may lose out on possible investments if no incentive package is implemented.

“We really have to act now because we don’t want to lose out on other countries that are very aggressive in trying to lure investors,” Lee said.

Panlilio said that the government and the private sector must work together to push the local car manufacturing because the industry’s manufacturing plants are operating 60% below capacity.

Panlilio has been pushing for the creation of a supplement to the MVDP. Panlilio has earlier revealed that he would like to make an MVDP which will cater specifically to exporters. However, approval may take longer given that the consent of the House of Representatives is necessary because higher incentives will be given to exporters.

The DTI said they are looking at crafting a better strategy to help the local automotive industry. “Right now I cannot see the light. I need to see the bigger picture and craft a better strategy,” Domingo said. “What I’ve seen so far doesn’t give me confidence,” he added when asked about the MVDP.

According to Domingo, the industry may be worse off in the future if a good plan is not put in place. Domingo said he will meet with the players of the auto industry next year in order get a better feel of the industry.

“We will work with the industry players and clarify their plans,” Domingo said. Although he refused to directly confirm if a new MVDP will be issued, Domingo said that the IRR will not be released this year. The IRR was supposed to have been issued in August.

In fact, it is possible that the government will no longer come out with the IRR for the MVDP given all the pressure that the DTI specifically the BOI is receiving.

A ranking government official said the DTI is already receiving a number of inquiries both from industry players and senators for the IRR. The official said that it is possible that an IRR may no longer be issued.

Domingo admitted that the importation of second hand vehicles is one of the areas they are having trouble with in the IRR.

In a separate interview, Panlilio admitted they are having trouble with the IRR but denied that they will no longer come out with one. Instead, he said that they might come out with different IRRs for different subsections. The subsectors are automobiles, motorcycles, trucks and e-cars and Philippine Utility Vehicles (Phuv).

Panlilio said that they might be able to come out with the IRR for the motorcycle and its parts earlier because it is not “contentious.” “The auto and the truck may take some time,” Panlilio conceded.

Domingo said he has not yet approved the IRR and thus it is still not ready to be presented in a public hearing. A public hearing is needed before the IRR can be implemented.

Domingo admitted that one of the issues that is being closely reviewed is the importation of second hand vehicles. Earlier, an official who refused to be named said that four senators have already called the Board of Investments (BOI) because they are worried that the new MVDP will not allow the importation of second hand imported vehicles.

7 killed in Star Tollway accident

2011-01-02T00:45:00.000-08:00

MANILA, Philippines (UPDATED) – Seven people were killed while 4 others were injured in a vehicular accident along the Star Tollway in Batangas province on Sunday.

The accident involved a jeepney, a bus, and a car at the tollway in Ibaan town around 12:30 p.m.

Initial investigation disclosed that a Gasat bus heading to Iloilo from Manila tried to overtake a car in front of it.

The bus then tried to cross the other lane but hit a jeepney that carried a family heading back to Manila from a reunion in Batangas.

Seven of the jeepney’s 11 passengers, including the driver and 3 minors, were killed.

The drivers of the bus and the car are now under police custody for investigation.

2010: A year of changing telecommunications market dynamics

2010-12-30T01:29:00.000-08:00

MANILA, Philippines - To say that 2010 was a difficult year for the Philippine telecommunications industry is an understatement.

The industry’s dynamics have changed dramatically. While consumers rejoice about the barrage of unlimited and bucket priced offerings that brought down the costs of text messaging and mobile voice calls, the revenues of telecommunications companies suffered.

Philippine Long Distance Telephone Co. (PLDT) chairman Manuel Pangilinan explained that market conditions are changing. “From 800 to 900 million text messages outbound every day, this has gone up to 1.2 billion. However, yields have declined from 18 centavos per text to 13 centavos,” he noted.

While before, 800 million SMS sent per day meant P144 million in earnings, the yield has now gone down to P104 million. Multiply the difference by 365 days and the amount is just mind-blowing.

PLDT during its third quarter 2010 briefing noted that cellular data/text revenues fell 13% to P31 billion, despite a 25% increase in text volumes, as they remain under pressure from the proliferation of lower yield offerings, multiple-SIM ownership, and regulator-mandated load validity extensions.

Take the recent May 2010 national and local elections, wherein candidates and their supporters utilized the power of text messaging to solicit support and to campaign. While millions of election-related SMS were being sent, most utilized unlimited/bucket priced offerings.

Globe Telecom president and CEO Ernest Cu said the company’s financial results are reflective of the challenges facing the industry, whereby traffic is growing, but revenues are declining with the market’s increasing preference for unlimited services. Despite an increase in traffic and over-all usage, Globe’s mobile revenues were lower with sustained price pressures resulting from intense competition and subscribers’ increasing preference for lower-yield bucket and unlimited promotions.

Globe’s Super All Txt 20 is one such bucket priced offering. For only P20 a day, a subscriber gets to send 200 text messages to any network which means that each SMS costs only 10 centavos. The company’s Unli Txt All Day allows one to send unlimited text messages to Globe/TM subscribers for one day.

Smart Buddy’s AllTxt Combo Plus gives a subscriber 100 text messages to another Smart subscriber, 10 texts to other networks, plus five minutes of calling, all for just P25.

Sun Cellular’s P25 Superloaded Call and Text Unlimited has free 30 minutes of mobile internet on top of unlimited Sun-to-Sun calls and 10 texts to other networks. Its Sun TextALL, now a permanent product offering, enables a subscriber to send 150 text messages to any network for only P15 a day.

The list goes on and on. Many of these promos are offered for a limited time only, but they are usually renewed.

Forever gone were the days when text messages cost P1 each and telcos were making so much money from text messaging alone.

The mobile telephony sector is now a matured one. The cellular penetration rate has now exceeded 80% and the number of Filipinos who still do not use mobile phone services is dwindling. This triggered the search for new revenue streams and the rise of broadband Internet services as the new revenue driver.

But even the cost of mobile Internet access has significantly gone down, thanks to bucket price and unlimited offerings. For just P50 a day, a Globe subscriber is given unlimited access to the Internet using a Globe Tattoo Broadband USB or mobile phone for one day. Smart also offers unlimited mobile surfing for P50 per day while Smart Broadband has its unlimited Internet access promo at P200 good for five days. Sun Broadband prepaid has a similar offering (one day unlimited for P50).

With the entry of a new player, San Miguel Corp./Liberty Telecom’s Wi-Tribe, expect the cost of Internet access to go down even further.

With Filipinos having in their plate so many choices, the one who is able to offer the lowest price and at the same time the best quality of service will emerge the winner.

Now here’s a look at how the industry’s decision makers view 2010 as well as prospects for the coming year:

• “2010 was a challenging year of transition for the telco industry. Competition intensified in the cellular business. Broadband grew strongly. Margins came under pressure even as demand for more network resources increased. For PLDT, 2010 has been a year when it maintained its market leadership in the face of these challenges. Our focus has been managing this transition where traditional revenue sources such as fixed toll revenues like IDD and NDD were on the decline while new revenue sources such as broadband were on the rise. We preserved margins by strengthening cost management given the modest top-line growth.

“We expect the challenges of 2010 to carry into next year. Demand for bucket and unlimited offers in the cellular space will continue. We expect that broadband will keep growing given the growing popularity of social networking and new access devices such as tablets and smartphones. PLDT will continue to invest in its network in order to fortify its market leadership.” — Napoleon Nazareno, president and CEO, Philippine Long Distance Telephone Co.

• “2010 was quite a competitive year for the telecommunications industry as it experienced a single-digit growth. It also achieved breakthroughs in both 3G and 3.5G (HSDPA) offerings. Consumers have had good experience, especially as new terminals came on Android, Blackberry, IPhone, among others. All in all, it was an exciting year for technology. Next year, we expect further developments in 3.5G. New Android phones are also getting exciting. We are optimistic both about the telco industry and the economy in general. The people have also increased confidence and trust.”

“In 2010, Sun Cellular is the first telco in the Philippines to achieve one million postpaid GSM subscribers. In 2011, we are confident we can achieve robust growth in both 2G and 3.5G as we continue our strong rollout of cellsites. By end of 2011, Sun should be even in number of cellsites as the other two telco players in almost all regions of the country.” — James Go, president, Digital Telecommunications Phils. Inc. (Digitel)

• “Globe has good momentum heading into 2011. Both our postpaid and prepaid business have shown strength going into the end of the year. Our broadband business has also continued to perform well despite the intense competition for subscribers.

“2011 will continue to be a tough year for the industry with the escalating price competition. Unlimited plans and aggressive bucket offerings will continue to erode yields. The competition for market share will escalate amid the prospects of a fourth player emerging.” — Ernest Cu, president and CEO, Globe Telecom

• “2010 was a challenging year for the telcos, as competition intensified and the Internet/social media and new technologies influenced the shift on consumer behavior on how to communicate, putting pressure on traditional revenue sources like voice calls and international long distance calls. Data and internet subscribers continued to increase and is expected to accelerate to the next level of sustained growth.

“It was a difficult year for Bayan but performance was consistent with the industry trend. Total revenue decreased due to lower voice revenues but residential internet and corporate data services posted revenue growth. With sound operating expense management, we expect the year to end in double digit growth in EBITDA.

“Our growth drivers next year would continue to be data and internet services for both consumer and corporate sectors. On the consumer side, we will continue to focus on internet services as we leverage on our cooperation within the Lopez Group to deliver relevant and compelling communication and content services. At the same time, Bayan has been strong in the corporate data sector servicing banks and BPOs, and we hope to gain on the opportunities.” — Rafael Aguado, chief operations officer, Bayan Telecommunications

• “The telecommunications industry will continue to face challenging times, with tough competition and new technologies. It will also continue to suffer from diminishing revenues and increasing capital expenditure. With all these happening, the consumer will continue to benefit while the telcos will continue to fight in keeping their customers while the new telcos look into grabbing customers from the. As for MyPhone, it’s a great year. The device business will continue to grow in leaps and bounds with the mobile phones still leading the way and new affordable devices such as smart phones and tablets coming in strong in the second half of the year. MyPhone will continue to invest in expanding our retail chains and service centers to maintain its excellent quality and after-sales service reputation. Overall, the public will surely be the winner with all the exciting things happening in the telco industry.” — David Lim, chairman, Solid Group, makers of MyPhone

• “The telco industry had a good year but its profitability was greatly reduced due to the highly competitive ‘unlimited plans’ that each provider offered its subscribers. This trend would continue this coming year. What needs to be looked into is the deteriorating service availability or accessibility due to network congestion brought about by the unlimited plans. Customer dissatisfaction has been rising because of higher frequency of dropped calls, delayed SMS, and line unavailability.

“Our agency did very well in terms of revenue generation in line with the President’s directive to raise revenues to help the budget. I immediately directed the National Telecommunications Commission (NTC) to improve its efficiency in the collection of fees and compliance to regulatory requirements. To the credit of the NTC, they immediately implemented the directive resulting in a collection surplus of more than P400 million above target as of end-November. Hopefully, we will hit half a billion pesos above target by yearend. This despite the election ban of several months.”

BSP keeps policy rate at record low

2010-12-30T01:17:00.000-08:00

MANILA, Philippines - The central bank left its key policy rate unchanged at 4% following a policy review on Wednesday, a decision that had been widely expected by the markets.

The rate has been at a record low of 4% since July 2009, with the Philippines one of the few countries in Asia not to have raised rates since the global financial crisis.

The policy-making Monetary Board holds a rate-setting meeting every 6 weeks.

Earlier, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco said there was no compelling reason to raise interest rates, with inflation seen staying benign in the medium term.

The BSP expects annual inflation in December to come in between 2.5% to 3.4%, bringing the full-year average below the midpoint of the government's 3.5% to 5.5% target.

All 11 analysts in a Reuters poll expected the central bank to hold rates on Wednesday. Six of 10 economists expect a rate hike in the first half of 2011.

The central bank cut rates by a total of 200 basis points between December 2008 and July 2009 to soften the blow of the global recession.

The government expects the economy to have grown faster than its 2010 target of 5% to 6%, supported by a recovery in trade and remittances.

New HIV cases up 40% in November

2010-12-25T00:37:00.000-08:00

MANILA, Philippines - One hundred and 12 Filipinos tested positive for HIV in November, up 40% from the 80 reported cases in November last year, according to the HIV and AIDS Registry of the Department of Health (DOH).

Health officials said 92% of the cases are males. At least 62% of the new HIV positive patients are between the ages of 20-29. Males having sex with other males (82%) was the predominant type of sexual transmission of HIV.

Eight of the 112 reported cases were overseas Filipino workers; all 8 acquired the HIV infection through sexual contact. At least 160 OFWs have tested positive for HIV infection since the start of the year.

In all, the DOH has recorded 1,417 new HIV cases from January to November.

It said 11 units of donated blood also tested positive for HIV.

The Trade Union Congress of the Philippines earlier said OFWs, who now account for one in every four HIV positive Filipinos, are highly susceptible to the virus, as they are exposed to foreign cultures that abet high-risk behavior, including commercial sex sans the use of prophylactics.

Rep. Arnel Ty of party-list group LPGMA pushed for increased government funding for preventive HIV/AIDS education.

"It would be sensible for us to spend a lot more for preventive education now to reduce the future human suffering due to HIV/AIDS, and avoid the potentially larger costs associated with the treatment of more patients," Ty said in a statement.

The Philippine National AIDS Council has warned the number of HIV cases in the country could reach 46,000 by 2015, unless effective strategies are put in place to check the spread of the disease.

Ty pressed his call for Congress to revisit the 1998 AIDS Prevention and Control Law and reinforce the fight against the highly destructive disease.

In House Resolution 724, Ty cited the need for Congress to ascertain whether existing policies and measures under the 12-year-old law are enough to quell the HIV/AIDS epidemic and improve the conditions of Filipinos living with the disease.

Christmas Day blast injures 6 in Jolo

2010-12-24T23:32:00.000-08:00

ZAMBOANGA CITY - Six people were wounded Saturday when a bomb went off in a church during Mass on Christmas Day in Jolo, Sulu.

Initial reports said an improvised explosive device went off at the Sacred Heart Chapel in Bgy. Asturias, Jolo, Sulu at 7:20 a.m. on Saturday, December 25.

Col. Romeo Tanalgo, acting commander of Joint Task Force Comet, said the explosive fell on the right side of the church's roof. He said the church is located beside the Camp Asturias police camp.

The explosion occurred right after a Christmas morning Mass ended as parishioners were preparing to leave the church.

Military spokesman Lieutenant Randolph Cabangbang said the priest officiating the mass was among the wounded.

Two of the injured victims were identified as Emma Tan, 29, and Antonette Quiniones, 30. They are now being treated at the provincial health hospital.

Three of the injured are being treated at the trauma hospital inside Camp Teodulfo Bautista.

Jolo police have tightened security at all vital installations including religious sites in Sulu.

"While we have received reports before na magkakaroon ng ganyang insidente, lalo nating pinagtibay ang pagbabantay ng vital installation lalong lalo na sa bayan ng Jolo--mga simbahan, mosque, cell sites, at oil depot," said Tanalgo.

Military officials would not immediately name any suspects in the blast on Jolo island but the island is a known bastion of the Abu Sayyaf, a group linked to the Al-Qaeda network.

The Abu Sayyaf, a gang of self-styled Islamic militants founded in the 1990s with seed money from Osama bin Laden's network, has long used the mostly-Muslim island of Jolo as a base, carrying out kidnappings and bombings.

It is believed to have carried out the worst terror attacks in Philippine history including the bombing of a passenger ferry in Manila Bay that killed more than 100 people in 2004.

It has also kidnapped many foreigners and Filipino Christians, hiding them in the jungles of Jolo and other southern islands.

US forces have been deployed in the southern Philippines since 2002 to train local troops in hunting down the Abu Sayyaf.

Oil jumps to highest since 2008 crisis, $100 eyed

2010-12-24T23:31:00.000-08:00

NEW YORK/LONDON – Oil surged above $91 a barrel to its highest price in more than two years on Thursday, as OPEC member Libya's apparent lack of concern over prices prompted some analysts to call for a new year's run at $100.

With crude reaching back-to-back 26-month highs, ultra-cold weather stoking demand and depleting U.S. stockpiles at the fastest pace in 12 years, traders are now looking for the Organization of the Petroleum Exporting Countries to signal when it might begin pumping more crude.

But Libya's top oil official, one of OPEC's most hawkish members toward oil prices, appeared unconcerned by the gains, which have lifted prices more than 20 percent in three months as fundamentals turn more positive and investors factor in an improving economic outlook for next year.

"It's fair to say it (the price) is about right, but still I think that it needs to improve a little bit more. About $100 would be a fair price for the time being," Libya's National Oil Corp Chairman Shokri Ghanem told Reuters in Cairo ahead of a meeting of Arab oil exporting countries.

"I think current oil prices are reflecting the situation in the market which is a well-balanced market," he said.
U.S. crude for February rose $1.03 to settle at $91.51 a barrel, the highest price since October 7, 2008 when oil prices were crashing from their $147 record as the world's financial industry reeled and investors fled risky assets. Prices hit an intraday peak of $91.63 a barrel.

ICE Brent crude settled at $94.25, up 60 cents from Wednesday after a midsession burst of gains triggered by buy-stops and as the dollar fell.

Although some said low trading volume on the last day before Christmas likely exaggerated gains, few expected to see a correction as traders looked forward to a fresh infusion of institutional investment in the booming commodities sector. U.S. crude traded about 220,000 contracts, one-third the norm.

"I don't think we'll pull back much before February. We'll see some fund allocations next month so we should continue to see support," said Antoine Halff of Newedge Group in New York.

So far economic news is supporting the gains too. Data on Thursday showed new U.S. claims for jobless benefits dipped last week and consumer spending increased in November for a fifth straight month, reinforcing views of a solid economic growth pace in the fourth quarter.

And while gasoline prices now back above $3 a gallon could begin to erode spending in the still fragile U.S. economy, the fact that they remain far below their $4 peak two years ago suggests they will not pack the same psychological punch.

NOT THE SAME MARKET AS 2008

Nearly three years after oil first traded at $100, demand is again rising swiftly, but one key factor has changed significantly. Unlike the start of 2008, when OPEC was already pumping flat out, the group now has a sizable amount of idle capacity it could use to douse the rally -- if it chooses.

A series of comments in recent months suggest the cartel is now ready to tolerate a price higher than the $70-to-$80 band it has publicly supported for the past two years, and analysts say that means it may wait too long before pumping more oil.

"With OPEC set to be reactive rather than proactive, the route to $100 appears fairly unobstructed at this time," said analysts at Barclays Capital.

Oil traders will be looking for comments this weekend from other core Gulf OPEC ministers to see if they are more concerned than they were two weeks ago when the group decided at its meeting in Quito, Ecuador, to maintain supply quotas.

The meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC) in Cairo will not set policy, and OPEC's next formal meeting is not scheduled until June.

But some analysts say they expect the group to quietly lift output prior to that by leaking more oil than quotas permit, and few expect a rerun of 2008's explosive rise.

"We're not back to before the 2008 crisis, this is not the same market... We have a lot more spare capacity, and demand growth is tentative," said Halff.

FASTEST DRAW IN THE WEST

Unusually cold weather in the United States and Europe has helped to spur the latest leg of a more than 30 percent rally from this year's low struck in May.

After a contraction in demand following the global economic recession, fuel use has begun to rebound and is expected to continue growing next year, taking absolute oil consumption to an all-time high. But the rate of growth will still be lower than a peak hit in 2004.

"Markets still have an upward bias. They just took out the recent and earlier highs and ran a few stops. Economic optimism, cold weather and crude stock drawdown are supporting in the background," said Tom Bentz, broker at BNP Paribas Commodity Futures in New York.

New peso bills have more security features

2010-12-17T02:26:00.000-08:00

MANILA, Philippines - The Bangko Sentral ng Pilipinas has added more security features on the new bank notes that will be available on a limited basis starting next week.

The new bills feature the seals of the republic and the BSP. It also has a patch where the colors change from blue to green and back to blue at a 45 degree angle.

The P500 has a photo inset where the face of the late Senator Benigno "Ninoy" Aquino Jr., father of President Aquino, appears. At a different angle, the photo changes to 500.

The bills have micro prints and security threads that will make it more difficult for counterfeiters to copy. The 200-peso, 500-peso and 1,000-peso bills have a 4mm security thread embedded on the paper. They also have a security feature for the vision-impaired as the numerical amount is embossed on the bill for the blind to feel the surface.

The new bills are made up of 80% cotton and 20% abaca. It has an anti-bacterial quality that can stay up to more than 3 years for higher denominated bills.

When asked why is there a need for the new bills, BSP deputy governor Diwa Gunigundo says one of the reasons is that counterfeiters have already almost perfected the current bills though the incidents have remained manageable.

Gunigundo says so much have changed in the economy and society since the issuance of the current bills. The BSP will circulate P45 to P50 million worth of bills before the year ends and another P2 billion next year.

Current bills can still be used for 3 to 4 years before its demonetized although people can still exchange their old bills at the BSP after that period.

The designers of the bills are Design Systemat and Studio 5. The 2 groups collaborated in the reverse and obverse side of the money bills.

Another fuel price hike looms

2010-12-11T19:43:00.000-08:00

MANILA, Philippines - The public will have to brace for higher fuel prices next week, according to the Department of Energy (DOE).

DOE Undersecretary Jay Layug said oil prices are expected to go up given the higher demand for petroleum in the international market.

He explained that there is a surge in demand for diesel in Asia and increased consumption in North America and Europe due to the winter season.

He urged oil companies to keep price adjustments reasonable.

Some oil firms are expected to raise their pump prices by P1 to P1.50 per liter.

Layug, however, assured the public there is no shortage in the supply of oil.

“There is no supply shortage at this time, shell and chevron continue to suffer from their logistical problems but the others have stepped up,” he added.

Palace declares Dec. 24, 31 as holidays

2010-12-11T19:41:00.000-08:00

MANILA, Philippines – Filipinos may expect a long holiday this Christmas following the declaration of December 24th and the 31st as "special non-working holidays" by President Benigno "Noynoy" Aquino III.
With the expected influx of travelers to the provinces, the Land Transportation Franchising and Regulatory Board (LTFRB) are readying special permits to bus companies and other public utility vehicle operators that offer trips to the provinces this Christmas season.
The LTFRB said the special permits will be out by December 20th, to ensure there will be no shortage in buses for the provinces.

4 from ‘Morong 43’ fear communist death squad

2010-12-11T19:39:00.000-08:00

MANILA, Philippines – Four of the 43 detainees who have been ordered freed by President Benigno Aquino III now fear for their lives after admitting their involvement in the communist movement.

Ellen Carandang, Cheryllyn Taoagon, Valentino Paulino, Jennyllyn Pizzaro, and John Mark Barrientos were among the “Morong 43” who were arrested by police and military troops in February during an alleged bomb-making training session.

While other members of the group are waiting to be released from detention, Carandang said she would rather stay in Camp Capinpin, where they are in military custody.

"Walang kapatawaran iyong ginawa namin pag-amin na NPA [New People’s Army] kami, at pagsabi na sila ay NPA din, markado na kami ng [communist execution squad], kaya ayaw namin umuwi,” she said.

Taoagon and Paulino share the same sentiment – and they want to join the military.

"Kasi marunong naman kami sa baril tapos alam din namin mag-organisa puwede kami taga-pagsalita," Taoagon said.

"Sanay naman ako sa bundok kaya di nalalayo sa pagiging sundalo," said Paulino.

Pizzaro, the youngest of the group, wants to continue her studies.

"Sa mga dati naming kasamahan, sana pabayaan kaming mabuhay ng normal," she said.

The Morong 43 may finally gain their freedom next week, when the court is expected to formally withdraw charges of illegal possession of firearms and explosives against the health workers.

FDI net inflow at $66-M in Sept

2010-12-11T19:38:00.001-08:00

MANILA, Philippines - Foreign direct investments (FDI) recorded a net inflow of $66 million in September, reversing the $54 million outflow in the same month last year.

For the first 9 months of the year, the FDI net inflow amounted to $1.1 billion versus $1.6 billion in 2009.

"The moderate inflows this year reflected cautious investor sentiment on the back of renewed concerns over the exposure of European banks to sovereign debt and the health of the American economy, notwithstanding the strong fundamentals in the domestic economy," the Bangko Sentral ng Pilipinas said.

Equity capital registered a net outflow of $22 million in September, better than the year ago's net outflow of $45 million.

Net FDI, portfolio inflows, and remittances from Filipinos working overseas help keep the country's balance of payments (BOP) in surplus.

The central bank has forecast a net FDI inflow of $2 billion this year, up 5.3% from $1.9 billion in 2009.

It said it expects the BOP surplus to hit $8.2 billion, more than double an earlier estimate of $3.7 billion, on strong exports, remittances and fund inflows.

The BOP surplus in the first 9 months of the year stood at $6.54 billion.

The Philippines' BOP was in surplus of nearly $5.3 billion in 2009, the biggest in 2 years.

3 ex-MWSS governing board members face tax evasion raps

2010-12-02T19:05:00.000-08:00

MANILA, Philippines (UPDATED) - Tax evasion charges were filed by the Bureau of Internal Revenue (BIR) at the Justice Department on Thursday against 3 former governing board members of the Metropolitan Waterworks and Sewerage System (MWSS).

Charged were Oscar I. Garcia, Ferdinand P. Mahusay and Lorenzo S. Sulaik who were found to have concealed their true income "by their deliberate and willful failure to file their income tax returns (ITRs)."

The three sat as members of the Governing Board of the Corporate and Regulatory Offices of the MWSS.

Deputy Commissioner Estela Sales of the Legal and Inspection group bared that based on documents of the Commission on Audit (COA), Garcia earned P2.6 million, P3.5 million and P5.3 million from 2007 to 2009 but failed to pay the correct taxes amounting to P1.6 million in 2007, P1.982 million in 2008 and P2.7 million in 2009 for an estimated aggregate tax liability of P6.3 million, inclusive of surcharges and interests.

COA records showed Mahusay earned P897,220 for taxable year 2008 and P4.5 million for taxable year 2009. His total tax liability amounts to P2.715 million, inclusive of surcharges and interests.

Sulaik, meantime, earned P3.2 million and P4.5 million in 2008 and 2009 but failed to pay the correct taxes amounting to P4.051 million, inclusive of surcharges and interests.

Sales said the charges against the three were the result of separate investigations by the BIR following the Senate Committee on Finance inquiry on the "excessive salaries and unwarrante bonuses and allowances of GOCC (Government-Owned and -Controlled Corporation) and GFI (Government Financial Institution) executives."

The filing of separate criminal charges against Garcia, Mahusay and Sulaik are the 18th, 19th and 20th, respectively, under the Run After Tax Evaders (RATE) program of the BIR under the Aquino administration.

Tax evasion charges vs toy firm

Meantime, the BIR also filed tax evasion charges at the Department of Justice against a toy company for "willful attempt to evade or defeat payment of taxes and deliberate failure to supply correct and accurate information".

Wanly Toys International Corp. (Wanly Toys) and its responsible corporate officers were found to have deliberately underdeclared its income for taxable year 2008 amounting to a tax liability of P26.398 million, inclusive of increments.

Wanly Toys officers charged before the DOJ include Imee Tan Yao, president; Haide Yao, corporate treasurer; and William Pan, Jr., certified public accountant.

Wanly toys is engaged in trading imported toys and other items on wholesale basis. Its offices are located at Elcano St., Tondo, Manila.

BIR Deputy Commissioner Estela Sales of the Legal and Inspection Group bared that data obtained by the bureau's Reconciliation of Listings for Enforcement (RELIEF) System show that Wanly Toys made total sales amounting to P107.3 million in the year in question but underdeclared its income by P81.7 million or by 76.34%.

Under the Tax Reform Act of 1997, an underdeclaration of more than 30% is considered as "substantial underdeclaration" and constitutes prima facie evidence for a false or fraudulent return.

The case against Wanly Toys and its responsible officers is the 21st filed under the Run After Tax Evaders (RATE) program of the BIR under the Aquino administration.

PNoy swears in envoys to Japan, Holy See, ASEAN

2010-12-02T18:39:00.000-08:00

MANILA, Philippines - President Benigno Aquino III on Thursday inducted Philippine Ambassador to Japan Manuel "Manolo" Lopez and 10 other new government officials during ceremonies held at Malacañang’s Premier Guest House.

Aside from Lopez, the other officials who were sworn in by the President were:

Mercedes Tuason, ambassador to the Holy See;
Wilfrido Villacorta, permanent Representative of Philippines to the Association of Southeast Asian Nations (ASEAN) in Jakarta, Indonesia;
Imelda Nicolas, chairperson of the Commission on Filipinos Overseas;
Edgar Galavante, acting executive director of the Dangerous Drugs Board;
Felix William Fuentebella, commissioner of the Housing and Land Use Regulatory Board;
Nariman Ambolodto, acting assistant secretary of the Department of Interior and Local Government;
Herminio Alcasid, member and chairman of the board of directors of the Philippine National Oil Company– Development and Management Corporation.

Alcasid is the father of singer-composer, actor, and TV host Ogie Alcasid.

Three officials of the Office of the Presidential Adviser on the Peace Process also took their oath before Aquino.

They are:

Zenaida Brigida Hamada-Pawid, commissioner (representing Island Groups and the rest of the Visayas region);
Dionesia Banua, commissioner (representing Island Groups and the rest of the Visayas region); and,
Sitti Djalia Turabin-Hataman, executive director of the National Commission on Muslim Filipinos.

The oathtaking was held after the President’s private meeting with Ryoki Sugita, chairman of Japanese publishing giant Nikkei, Inc.

Lacson cannot dictate terms of surrender: De Lima

2010-12-02T18:25:00.000-08:00

MANILA, Philippines – Fugitive Sen. Panfilo “Ping” Lacson cannot dictate the conditions of his surrender, Department of Justice (DOJ) Secretary Leila de Lima said Thursday.

De Lima said Lacson should follow the advice of his lawyer, Alexander Poblador, and follow the legal process “instead of laying down conditions that are not legally feasible at this point.”

Lacson, who has been charged for the murders of publicist Salvador “Bubby” Dacer and his driver, Emmanuel Corbito, earlier said that he will continue to remain in hiding until justice is served or, in his own words, “when I’m already dead.”

The Interpol has also placed Lacson, a former director-general of the Philippine National Police, on its "red notice" list of international fugitives.

“Senator Lacson has a standing warrant of arrest and is a fugitive from justice. He knows that his present status does not accord him the privilege of laying down terms with a tenor of finality,” de Lima said.

The senator wants her to ask the courts to reinvestigate his case.

The DOJ chief, however, stressed that her office cannot act on Lacson’s motion for reinvestigation as doing so would violate the law. “The DOJ cannot, at this point, review what is for the courts to decide.”

Lacson, through his lawyer, had filed a second motion for reconsideration before the Regional Trial Court (RTC) of Manila in his bid to have his case reinvestigated. He also filed a petition for certiorari with the Court of Appeals with regard to the Manila RTC’s denial of his first motion for reconsideration.

“The issue of reinvestigation is now a single incident pending before 2 courts, the RTC and the Court of Appeals. The DOJ is without jurisdiction to preempt the decision of 2 courts of law on this matter,” she explained.

Surrender first

She said that Lacson's statements could be overtures for negotiating terms of his surrender that should not include involving the lifting of his warrant of arrest and the granting of his motion for reinvestigation.

“The issues Lacson has raised as conditions for his surrender, such as the granting of his motion for reinvestigation, should be discussed after his coming back into the fold of the law,” de Lima said. “If the new evidence as presented by Lacson's lawyers is indeed meritorious, at least one of the 2 courts of law which have jurisdiction over the incident will rule in Lacson's favor, and the DOJ will respect that ruling.”

De Lima added that the most that the DOJ can do is to withdraw its opposition to Lacson's motion for reinvestigation. “Lacson's surrender should precede any favorable response that may come from the government. Surrender, under criminal law, is a mitigating circumstance that can be properly appreciated not only by the courts but also by the DOJ.”

She said the government has to enforce the law and implement the arrest warrant against the senator.

“Any government concession will have to depend on Lacson's show of good faith and respect for our laws which apply to everyone, senator and ordinary citizen alike,” she said.

The DOJ chief also allayed Lacson’s concerns regarding his personal safety after he gives himself up.

“Given his stature, Senator Lacson has no reason to fear that he will be treated differently and persecuted by the government. But his refusal to return to the fold of the law and observe the legal processes will only galvanize the government's resolve to take him into custody, not to persecute him, but to enable him both to properly face his accusers, and to defend his innocence in the only venue where it can be sufficiently proven, in a court of law,” de Lima said.

Palace can’t interfere

The Palace echoed de Lima’s stand on the issue.

Deputy Presidential spokesperson Abigail Valte said the case, including Lacson’s appeal for reinvestigation, is now in the courts’ hands.

"We welcome the fact that Senator Lacson has broken his silence on the issue," Valte said Thursday. "From what I understand there are already two courts that are hearing this matter. So hindi naman po yung executive ang magde-decide nito. Korte na ang may hawak ng kaso."

She said the senator will be given due process after he surrenders. "The fact remains that we will afford him due process if he decides to submit himself to the justice system."

The Malacañang deputy spokesperson declined to comment on Lacson’s apparent distrust of the Aquino administration. "Hindi ko naman po gusto [lagyan] ng kulay yun mga naging statement po ni Senator Lacson dahil yun po yung kanyang saloobin.”

She also explained that the P2-million peso bounty on Lacson’s head is just a proposal.

Fairness

Aside from a criminal case, Lacson is also facing an ethics complaint in the Senate.

The Volunteers Against Crime and Corruption filed the complaint amid Lacson’s perceived failure to perform his government duties since he went into hiding.

His colleague, Senate Minority Leader Alan Peter Cayetano, said the ethics committee has yet to act on the complaint.

“The Senate will still have to approve the rules for the ethics committee. I will assure all sides of fairness and due process,” he said.

“I can’t comment on the merits because I have to hear both sides first and be fair in chairing the committee. Having said that, the [Aquino administration] should assure Sen. Ping of justice, due process and that he will be safe if detained,” Cayetano said.

He also urged Lacson to surrender. “Sen. Ping should surface and realize the DOJ and the courts have to treat him like any other fugitive from justice.”

Ayala trims number of residential units for sale

2010-11-10T17:18:00.000-08:00

MANILA, Philippines - Property giant Ayala Land, Inc. will fall short of the target number of residential units to be launched this year because of delays in paperwork, an executive said.
The property arm of the Ayala group, however, is taking a look at fund-raising options to bankroll capital spending to sustain growth next year.
Instead of the target 11,600 units, Ayala Land will launch “a little less than 11,000 because of timing issues,” Jaime E. Ysmael, Ayala Land senior vice-president and chief finance officer, told reporters late on Tuesday.
“But it is still an aggressive launch,” he added.
Mr. Ysmael said segments Alveo and Avida were affected by the delays.
The target is more than 5 times the 2,200 units launched last year and more than double the recent 5-year average of 4,500 units per year.
The property firm initially aimed to start selling 9,275 units early this year. This was hiked to 11,600 in the middle of the year.
Ayala Land operates under four major brands -- Ayala Land Premier for the high-end segment, Alveo Land for the middle-income segment, Avida Land for the “affordable” market, and Amaia Land for economic housing.
Mr. Ysmael said growth in the fourth quarter would be led by Ayala Land’s mall business. “There are indications that [the growth momentum] will be sustained. In the last quarter, mall spending is higher because of holiday spending.”
Fewer spaces for lease because of the renovation of the Glorietta 1 mall in Makati, which will reopen in the second half of 2012, will be offset by improved operations of Glorietta 5 and Greenbelt 5 in Makati and the Marquee Mall in Pampanga, he said.
Higher sales across all business units allowed the property giant to post a 35% increase in net income to P3.94 billion in the nine months that ended in September.
“Lease rates go up because of escalation in contracts. New contracts are back to 2008 levels before the industry had a challenging period in 2009,” Alfonso Javier D. Reyes, head of investor relations at Ayala Land, told reporters.
The property giant is looking at selling peso-denominated bonds to raise funds for next year. “There is demand for peso-denominated instrument given the strength of peso,” Mr. Ysmael said.
Meanwhile, the company’s residential project in China will start this month.
“This project is purely residential but we have the option of participating in other developments, which includes retail, within the complex,” Mr. Ysmael said.
“Construction will commence this month. There will be 11 towers in the first phase ... then eight in the second phase,” Mr. Ysmael said. There will be 50 to 60 units per building.
In August, Ayala Land signed a deal with Sino-Singaporean Tianjin Eco-City Investment and Development Co. Ltd. for one of the first developments in the 3,000-hectare Tianjin Eco-City project in China.
The partners will develop more than 1,100 units within a 19-tower residential complex on a 9.78-hectare property in Tianjin Eco-City.
“We are looking at learning from the process, and mobilizing people and access to the supplier base,” he said.
Ayala Land also said it was looking at a mixture of malls and office buildings for its foray into real estate investment trusts or REITs. Malls to be included have stable earnings like Greenbelt in Makati, Alabang Town Center in Muntinlupa, TriNoma in Quezon City, and Market! Market! in Taguig.
Shares in Ayala Land fell by 1.05% or P0.18 to P17.00 each yesterday.

Vista Land profits up on strong property sales

2010-11-10T17:17:00.000-08:00

MANILA, Philippines - High residential sales boosted Villar-led Vista Land and Lifescapes Inc.'s earnings for the first 9 months of the year.
Based on the company's financial filing, it recorded a net income of P2.16 billion for January to September 2010, up 35.8% from P1.59 billion in the same period last year.
Real estate revenues rose 13.9% to P8.2 billion from P7.2 billion.
The firm said it may exceed its full-year targets of P2.8 billion income and approximately P20 billion sales.
"... General consensus [is] that consumer confidence remains strong," said Vista Land Senior Vice President for Finance Ricardo Tan Jr.
"We should comfortably exceed our sales target for the year by just repeating our 3rd quarter performance," he added.
Vista Land is the holding company of 5 real estate brands, namely Brittany, Crown Asia, Camella Homes, Communities Philippines and Vista Residences.
It launched 30 projects worth P19 billion for the first 9 months and these are mostly in areas outside Mega Manila.
Its capital expenditures for 2010 was set at P10.2 billion.
"We remain optimistic about the outlook for the property sector in general and are confident that will continue to be a dominant force in the affordable housing market where demand has been stable," Tan said.

Exports climb 46.1% in September

2010-11-10T17:16:00.000-08:00

MANILA, Philippines - Exports continued to post strong double-digit growth in September, buoyed by a surge in demand for the country's electronic products.
Data from the National Statistics Office showed the total export bill climbed 46.1% to $5.314 billion in September from last year's level of $3.638 billion, beating August's 37% growth.
Month on month, exports rose 11.7% from the $4.758 billion posted in August.
Meanwhile, aggregate merchandise exports for the period January to September 2010 increased by 38.5% to $38.298 billion from $27.649 billion registered during the same period in 2009.
Electronic products, the country's main export item with a share of 65.5% of the total bill, surged by 54.6% to $3.478 billion from last year's $2.250 billion.
Singapore was the Philippines' top market, accounting for 24.2% of the total exports at $1.283 billion.
Japan came in second, with $765.85 million, followed by China ($669.74 million), US ($558.68 million), and Hong Kong ($383.99 million).
The government expects exports to climb 15% this year, and imports are forecast to increase 20%.
The electronics industry group, meanwhile, expects its exports to climb by 25% to 30% this year.
As demand from the country's trading partners continues to improve alongside with the global economy, the government is confident it can beat its growth targets this year.

Air France-KLM targets ‘discriminatory’ airline taxes in RP

2010-11-10T17:14:00.000-08:00

MANILA, Philippines - European carrier Air France-KLM has elevated its complaints against the Philippines’ "discriminatory" taxes on foreign airlines to the government level, hoping bilateral talks along with planned lobbying in Congress will resolve the matter, ranking executives said on Tuesday.
This tack is being pursued instead of an outright filing of a dispute case at the World Trade Organization which is still a "subject of discussion," said Marnix H. Fruitema, senior vice-president for Asia Pacific at KLM Royal Dutch Airlines.
In the meantime, the company may reconsider operations here as profit margins are being wiped out by the country’s common carrier tax and gross Philippine billings tax, said Cees Ursem, KLM’s general manager for the South China sea division.
"Our governments are fully aware. We have our governments talk with the Philippines," Mr. Ursem said in an interview, referring to the ongoing tax dispute.
Under the National Internal Revenue Code, international air carriers must pay a 5.5% tax on revenues broken down as a 3% common carrier tax on their gross receipts and a 2.5% tax on all cargo and passenger revenues "originating from the Philippines in an uninterrupted flight, irrespective of the place of sale or issue...of the ticket."
The Tourism department itself has noted that this tax policy is unique to the Philippines.
KLM is the only remaining carrier that flies direct between Manila and Europe. It celebrates its 60th anniversary in the Philippines next year.
"And a number of congressmen are aware of this. We will look for support within Congress and Senate. The government is aware we don’t have such a long time," Mr. Ursem added.
"We have the fullest confidence it (the tax issue) will come in order," Mr. Fruitema said.
Batangas Rep. Hermilando I. Mandanas (2nd district), chairman of the House of Representatives ways and means committee, could not be immediately reached for comment. But he had earlier said he would file a bill to address foreign airlines’ concern on this matter.
For now, complying with Philippine tax laws has meant the carrier has enjoyed little to no margins from its operations here, the officials claimed.
"The margin in our industry in the good years is 5%-7%. If you have to pay 5.5% tax, what you earn is gone. You might as well close shop," Mr. Fruitema said.
The picture is worse, said Mr. Ursem, as the profit margin for Philippine operations is "negative," with other regional flights subsidizing costs here.
The carrier’s revenues from the Philippines are expected to flatten this year from 2009, in contrast to the 20% growth expected from its Asia-Pacific operations, the officials said.
"We can’t say definitely [we will stay here]. We will take [the tax issue] step by step with fullest confidence it will be solved soon. If it continues like this, we will reconsider," Mr. Fruitema said.
It is keen on resolving the issue and remain in the Philippines, however, as the company enjoys a niche of having the only "nonstop product to Europe," he said.
"[Connecting flights] is not the idea for Manila. I’m not sure the customer will like it," he said.
"We play a major role in the economy... and we would love to expand that role."

Clinton, Aquino talk about anti-poverty programs

2010-11-10T17:11:00.000-08:00

Clinton doesn't disappoint Manila audience
MANILA, Philippines (3rd UPDATE) - Former US President Bill Clinton paid a courtesy call on President Benigno Aquino III on Wednesday and expressed his support for the Philippine government's various programs, particularly on anti-poverty.
The "social call" happened past 3 p.m. at the Premier Guest House inside the Malacañang compound. The meeting was also attended by several Cabinet members, including Finance Secretary Cesar Purisima, Health Secretary Enrique Ona, and Presidential Management Staff chief Julia Abad.
"The discussions were casual, they were very friendly, and they focused primarily on anti-poverty programs of the Philippine government," Presidential Communications Development and Strategic Planning Secretary Ricky Carandang told ANC's Top Story.
Carandang noted that the former US president was most interested about the Philippine government's efforts in alleviating poverty, which is also at the core of programs carried out by an organization he set up in 2005.
The Clinton Global Initiative is a non-partisan organization that convenes global leaders to devise and implement solutions to the world's most pressing problems.
Carandang said President Aquino shared with Clinton his plans to expand the Conditional Cash Transfer (CCT) program from 1 to 2.3 million households, and several long-term investments in education and healthcare.
"President Clinton said the CCT was a good idea and it's been known to work in other countries and he said he supports that program," he said.
Rice, energy
Aside from anti-poverty efforts, Clinton and Aquino also discussed the Philippines' rice self-sufficiency goals, and plans to build new capacities in the power sector.
"President Clinton seemed to be interested in the Philippines' rice production. He is also particularly interested in geothermal power because it's a renewable energy source."
Carandang noted that the discusssions were "general," and "no specific thing [was laid] on the table because it was just a courtesy call."
President Aquino earlier said Clinton's visit was a vote of confidence for the Philippines despite supposed terror threats.
Last September, Aquino met Clinton's wife, US Secretary of State Hillary Clinton, during the signing of the $434-million Millennium Challenge Corporation (MCC) grant in New York.
The MCC grant would fund infrastructure and rural development programs in the Philippines to reduce poverty and spur economic growth.
On a lighter note, Carandang said Clinton asked for a Diet Coke during the meeting. President Aquino is known to be fond of regular Coke.
Praises PNoy, GMA, Ramos
In his speaking engagement at the Manila Hotel, Clinton said President Aquino possesses the qualities of a good leader, and though he had met him only briefly, he said he saw that Aquino has a clear idea of where to take the country and the energy behind it.
Clinton also praised the two former presidents in attendance, Pampanga Rep. Gloria Arroyo and former President Fidel Ramos. He made special mention of the corporate social responsibility bill filed by Arroyo in Congress.
Clinton said he sees the Philippines finally reaching its potential if only there was a relentless focus on the future, and if there was a capacity to abandon grievances the way Rwanda in Africa had done despite its harrowing past.
He also acknowledged that the colonization of the Philippines by Spain and the US has not been good for the Philippines.
He praised the Philippines' effort to maximize domestic sources of energy, and singled out the country's development of geothermal energy as something other countries can emulate.
Sustainable growth, light moments
Clinton also spoke about the need to change the world's economic way of life, and predicted how the 21st century could be the most progressive and excited period in history if there is a common effort to minimize the negatives.
He also warned of calamitous prospects if the world continued to cling to the past, citing the need to minimize the generation of greenhouse gases.
Clinton had several light moments in the question and answer portion, saying the vast power he once possessed made him realize he wasn't quite as smart as he thought he was.
He also joked he was free to speak his mind now and be much more open. But, he added, not much people pay attention to what he says until he says something that may be embarrassing to his wife, now US Secretary of State Hillary Clinton, and, her boss, US President Barack Obama.
Clinton doesn't disappoint
Clinton did not disappoint those who paid between P10,000 to P25,000 each for tickets just to listen to his speech at the Manila Hotel.
Big names in politics and showbiz gathered for a once-in-a lifetime opportunity to learn from one of the most powerful leaders the United States has offered the world.
One of Clinton’s most striking messages, according to former Senator Richard Gordon, was when the former US President mentioned how leaders should treat power, money, and responsibility they have.
"One of his most powerful messages was about the powerful leaders who should use their power with humility," he said.
Sen. Loren Legarda shared the same sentiment. She said: "He says it's not all about power but it's about quality of service. Ito ang malaking naging pagkukulang hindi lang sa Pilipinas kung hindi sa buong mundo, na ang power ay panandalian lamang."
Neophyte Cavite Rep. Lani Mercado, for her part, said she was awakened upon hearing the words from formerly the most powerful man in the world.
“Sabi niya hindi dapat power hungry, iniiisip dapat na we are hired by our constitutents," she said. For others, it was not the message about politics that struck them the most.
Sen. Pia Cayetano said she can’t forget the story of Clinton putting up his own foundation to bring the cost of medicine down to an affordable level, especially to a developing country like the Philippines.
"Nababaan presyo ng gamot para mas marami ang makinabanag, yan ang pinakamagandang sinabi niya," she said.
TV personalities impressed, too
Even showbiz personalities were impressed by how Clinton discussed the issue of governance and social responsibility under a single theme.
“Mr. Pure Energy” Gary Valenciano said he thought he would be listening to a pure political discussion but Clinton proved him wrong.
Valenciano said: "He kept on stressing, look at the future, forget about the past… that's a hindrance to a lot of people, to society itself."
TV host Johnny Litton was also all praises for the former US President. "The approach was beyond presidency, it's continuation of his belief even if he is not anymore the most powerful president in the world,” Litton said.
Despite the tone of Clinton's speech as more of making politicians realize their ineptness and lack of humanity in serving a developing country, US Ambassador Harry Thomas said the former President saw what is good in President Benigno Aquino III when they met at Malacañang Palace.
"He enjoyed how the President Aquino wants to do things, the president's energy, and how he is taking care of his job," Thomas said.

Businessmen to launch all-out war vs. corruption

2010-10-29T05:46:00.000-07:00

MANILA, Philippines - Business executives in the country are fed up with the prevailing corrupt practices in procurement and supply management and have lined up a series of initiatives aimed at stopping unethical dealings that have cost businesses as much as 50% of their investments here.

This, according Charlie Villaseñor, president of Transprocure Asia and chairman of the Procurement and Sourcing Institute of Asia (Pasia), who said the two groups will announce their initiatives with the holding of the 1st Philippine Annual Ethics in Procurement Conference on November 3 at the Makati Shangri-La Hotel.

Topics in the conference include “Taking Procurement to Higher Efficiency, Transparency and Integrity”; “Business Integrity and the Procurement Profession”; “Best Practices and What the Future Holds on Public Procurement”; “Fraud Detection Techniques/Vendor Integrity”; “Promoting Procurement Integrity Makes Sense”; “Developing and Sustaining Effective Corporate Values and Compliance”; and the “ISM Principles and Standards of Ethical Supply Management Conduct”.

Villaseñor said that depending on the type of industry, he is aware that business cost of unethical practice in the procurement and supply management side even go beyond 50% of the investment.

In his case, he said he receives expensive gifts and “people normally compute it also as an investment. It is very costly.”

Brian Lane of the American Chamber of Commerce of the Philippines said the country also suffers from unethical practices both in the public and private sectors in the amount of foreign direct investments that the Philippines is losing.

“The perception of the Philippines is it is terribly corrupt. But the new government seems to have touched the Filipinos by its slogan, ‘When there is no corruption, there is no poverty.’ I think this is a good time to turn the ship around,” Lane said.

In six years, Lane said he believes the initiatives they are starting now will already be felt, and the Philippines will start improving the rankings of corrupt countries.

Aside from the November 3 conference, Villaseñor said they will also be rolling out several projects that will promote good governance, including keeping a whistle-blowing hot line, a certification program and scorecard system for ethical companies, and circulation of international ethical standards.

Groups such as the Management Association of the Philippines, Financial Executives of the Philippines (Finex), Philippine Chamber of Commerce and Industry and the Joint Foreign Chambers have committed to participate in these initiatives.

Villaseñor said while they will not be identifying unethical companies to put them to shame, they will be constantly releasing to the public the names of firms that have earned the certification of being ethical in their supply-management dealings.

And when they receive reports of unethical practices, Villaseñor said they will bring up the case to the top executives of the companies involved.

“We have to come forward and set the right directions. A lot of people also do things because they don’t know they are unethical,” he said.

Walter Buczynski, senior trainer of Pasia, said the key in making this change to happen is by training the people who are directly involved in the process on a day-to-day basis and make sure that their “day-to-day work is done ethically, and bring it to the levels where decisions are made.”

Greg Navarro, Finex president, said they will also be asking CEOs to sign the “integrity pledge,” and part of this is to educate their people on good governance.

Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines, said the initiatives are consistent with an earlier program of the foreign chambers and the Makati Business Club enjoining companies to adopt the “zero tolerance on bribing.”

Mang Inasal owner shares pain of letting go

2010-10-29T05:41:00.000-07:00

MANILA, Philippines – The owner of Mang Inasal Philippines Inc., which was recently sold to giant Jollibee Foods Corp., said letting go of his chicken-based business was “painful.”

In a letter to his “Mang Inasal Family,” Edgar Injap Sia II expressed “deep sadness” like a “father parting with his child” as he hands over the care of the restaurant to the giant conglomerate.

Sia, who is in his 30’s, founded Mang Inasal on December 2003. In a 250-square meter space in the parking lot of Robinsons Place in Iloilo City, he started to offer the tasty vinegar-marinated chicken served in skewers and paired it with unlimited rice, an almost irresistible come-on. Innovating further, he began offering the menu in the familiar fast food dine-in concept. Business grew by leaps and bounds, conquering markets beyond Visayas, including Metro Manila, the make-it-or-break-it city.

For Mang Inasal's phenomenal growth—about 100 new stores a year—Sia was recognized this year as the Small Business Entrepreneur awardee in Ernst & Young's annual search for Entrepreneur Of The Year-Philippines. The same group named Jollibee founder Tony Tan Caktiong as its first awardee in 2004. Caktiong went on to win the World Entrepreneur of the Year title at an awards ceremony in Monte Carlo, Monaco.

Currently the 6th largest fastfood chain in the country, Mang Inasal was dubbed by a local magazine, almost prophetically, as "the new Jollibee."

Growth was fueled by franchising, which started only in 2005. Of the 303 Mang Inasal branches, only 24 are company owned. Franchise holders of the 279 stores paid P800,000, about the same amount as Sia’s seed money when he started the business 7 years ago.

That Jollibee will be paying P3 billion for a 70% stake in Mang Inasal has made Sia “a very successful businessman,” according to bloggers and online commentators. The buying price of Jollibee, which courted Sia for the transaction, values the entire Mang Inasal business at P4.3 billion. Not a bad deal for a business that has an estimated annual total revenues of P2.6 billion and system wide sales of P3.8 billion.

Since Sia’s holding company, Injap Investments, will continue to hold on to 30% of Mang Inasal, the Jollibee deal actually valued Sia’s remaining stake at a staggering P1.3 billion. By the way, Sia already received a P200 million downpayment.

Still involved

In his letter, however, Sia stressed that the deal will also benefit the intended readers--the employees, franchise holders, and loyal clients.

“I have full confidence that we will reap the benefits of cost improvement of supplies, greater operational efficiency, reliable and response-on-demand servicing, and well structured and professionally managed organization. This will mean increased revenue flow, better margins and limitless opportunities for you—not to mention better service, better quality and “mas sulit” food selection for our loyal patrons.”

He also assured them that, during the turnover process and beyond, their “voice will be heard every step of the way.”

He said two board seats in the new organization have been reserved for him and Ferdinand Sia, the current chief operations officer. Both will also be part of the management committee “for the coming years.”

Global brand

Sia stressed that the deal with Jollibee will strengthen the brand. As the business is on its way to becoming a “Global Mang Inasal,” Filipinos will be “proud,” he said.

“Mang Inasal will have the professional support and vast resource needed to steer the business to the next level,” Sia wrote. “Knowing that [Jollibee’s] Tony Tan Caktiong share the values and business principles I have, I know that my VISION of better quality lives for the Pinoy Diners and Pinoy Entrepreneur will live.”

Growing the business was part of Sia’s goal when he decided to offer the company to the public early next year. Since 2008, Sia has been ramping up interest in Mang Inasal’s success story in preparation for a planned Initial Public Offering. Fresh funds from the capital raising exercise were supposed to finance further store expansion. The aim was to have 500 outlets by 2012. Before the Jollibee deal, it just opened its 300th outlet at the SM Mall of Asia.

Thus, despite the pain and the deep sadness, Sia said he is “ecstatic and in high spirits” since the future of his “7-year old child…is secured and filled with great optimism.”

More "little Jollibee's"?

It is likely that keen watchers of entrepreneurship have not had the last of Sia's genius —or luck.

Aside from Sia's remaining 30% stake in Mang Inasal, Sia's Injap Investments also has a stake in Deco's, another up-and-coming food business that serves "batchoy", a soup made of meat stock, noodles, and garnished with local herbs and spices.

Batchoy was first started by a young butcher called Deco Guillergan Sr., in 1938 in a carinderia at the La Paz public market in Iloilo City. Sia's Mang Inasal also first flourished in the same city.

Just like how Jollibee has grown through brand extensions and numerous acquisitions, Sia has forged a partnership with Guillergan's children. Deco—and its "heavily guarded batchoy secret"—was eventually folded under Sia's Injap Investments.

Deco stores have been slowly expanding to neighboring provinces in Visayas and Metro Manila. Will it be Sia's new "little Jollibee"?

BSP eases forex rules to temper peso

2010-10-29T05:29:00.000-07:00

MANILA, Philippines - The Central Bank on Thursday approved new foreign exchange liberalization rules in a bid to encourage dollar outflows and stem the peso’s appreciation as cash seeking higher returns deluges Asia.
The new rules raise the limit on dollar purchases and do away with documentary requirements.

"These changes are a result of the continuing efforts by the Bangko Sentral ng Pilipinas (BSP) to keep the foreign exchange regulatory framework responsive to and attuned with the current economic conditions and to align it with the policies of neighboring countries in the region to maintain the competitiveness of the Philippines FX regime," central bank Governor Amando M. Tetangco, Jr. said in a statement.

The announcement came as a Malacañang official said the Philippines and Thailand had agreed to push for stronger cooperation among Association of Southeast Asian Nations (ASEAN) members to address the issue of capital inflows.

President Benigno C. Aquino III and Thailand Prime Minister Abhisit Vejjajiva met yesterday before the opening of the 17th ASEAN meeting in Vietnam.

"The two leaders agreed there should be more talk between the central bankers and finance ministers of the two countries and of ASEAN so we can coordinate more closely our actions because of the strong currencies we are seeing right now," Presidential Communications Group Secretary Ricky A. Carandang said in a radio interview.

"While our exports numbers are still strong, there are some concerns from our exporters that profit margins are getting squeezed and revenues are getting smaller," he added.

Thailand, in stemming the surging baht, has imposed a 15% withholding tax on interest and capital gains earned by foreign investors on Thai bonds.

The BSP has declared that it does not want to impose capital controls and prior to yesterday’s announcement said it would make it easier to take dollars out of the country.

As part of the new rules, the central bank raised the limit on over-the-counter foreign exchange purchases by Filipino residents from accredited banks to $60,000 from $30,000.

Tourists and Filipinos residing abroad may reconvert their pesos into as much as $5,000 -- from $200 -- at airports and other ports of exits without needing to show proof they sold their dollars for pesos when they first arrived.

Importers may purchase as much as $1 million, from $100,000, at accredited banks to make advance payments for their purchases.

Foreign currency loans of the private sector that are registered with the central bank may be prepaid without prior BSP approval, subject to the following requirements:

a notice of intention to prepay that is submitted to the BSP at least one month before the target payment date;
presentation to the selling bank of a BSP registration letter, ID card and original BSP letter acknowledging receipt of notice of prepayment; and
foreign exchange purchases not exceeding $50 million per day

Banks can also act on requests for peso conversion by foreign investors that want to remit abroad.

The amount that each investor may purchase each year for outward investments or investments in debt papers was also raised to $60 million from $30 million.

"These proposed amendments are expected to encourage greater FX outflows at this time the domestic currency has been appreciating against the US dollar," Mr. Tetangco said.

He said the new rules are expected to have only a minimal impact on domestic liquidity and inflation.

The new rules, which make up the fourth phase of foreign exchange reforms, will take effect 15 days after their publication in a newspaper.

In January last year, the BSP approved the "third wave" of foreign exchange reforms with banks no longer required to submit to the central bank reports on their sale of foreign currencies to entities wanting to invest abroad.

The peso has appreciated by around 7% since the start of the year. It is presently trading at around P43 per dollar from around P46 per dollar in January.

Funds have been flowing to Asia, attracted by the region’s robust growth while Europe and the US continue to slump.

San Miguel shipping unit receives tax perks

2010-10-29T05:21:00.000-07:00

MANILA, Philippines - The shipping arm of diversifying conglomerate San Miguel Corporation has qualified for tax incentives, the Board of Investments said on Thursday.

SMC Shipping and Lighterage Corp will be allowed a duty-free importation of equipment for its P113 milion venture to operate a barge to transport cement and coal.

San Miguel controls Petron Corporation, which has an oil refinery and a coal-fired power generation plant in Limay, Bataan. Last October 20, Petron's power plant was also granted tax incentives.

Sixty-one percent of the output from Petron's power plant will provide power to the refinery while the balance will be sold to electric cooperatives and Manila Electric Co., where San Miguel is the second biggest shareholder.

Aside from SMC Shipping, the other firms that received tax perks from the BOI on Thursday are:

Gloria De Dapitan, Inc (expanding a theme park in Dapitan, Zamboanga del Norte)
Jentec Storage, Inc (development of a cold storage facility for farm crops)
Feranti Shirt Factory, Inc. (expansion of a garment's factory in Caloocan)
Hardware Labs Performance Systems, Inc. (production of equipment for cooling down electronics)

PNoy speechwriter in hot water over Twitter posts

2010-10-29T04:49:00.000-07:00

HANOI—A Palace speechwriter has been told be more careful what she posts on the Internet after some of her status updates in the social networking site Twitter stirred controversy.

“We warned her to be more careful with her tweets,” Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said of Mai Mislang, a speechwriter of President Aquino.

“We’ve told our people not just Mai but our people in our office, whether they like it or not, they are government employees and that they should be a little bit more circumspect,” he added.

Mislang reportedly tweeted, “The wine sucks” after the state banquet hosted by Vietnam President Nguyen Minh Triet in honor of President Aquino Tuesday during a state visit.

She also tweeted: “Sorry pero walang pogi dito #vietnam.” (Sorry, there are no handsome men here.)

She also posted: “Crossing the speedy motorcycle laden streets of Hanoi is one of the easiest ways to die.”

But the Palace was quick to downplay the incident, saying they have dealt with the issue, and that Mislang had already deleted her tweets on her own.

Carandang also came to Mislang's defense.

“She has been one of the hardest working people in our office. She’s trusted by the President and this is just a minor issue. So I don’t think it’s going to become anything more. As far as we are concerned, tapos na ‘yun. Nawala na ‘yun. She’s being more careful now,” he said.

Carandang said the President has been informed about the incident. “The President knows about it and he knows I have taken the appropriate action.”

The communications secretary said Mislang has been apologetic but added, no public apology is forthcoming. “Absolutely, she was [apologetic],” Carandang said.

“There was no offense meant to anybody. That was something that was spontaneous. We talked about it and we are being more careful now about tweeting.”

Halloween things

2010-10-29T04:47:00.000-07:00

MANILA, Philippines - Halloween, to my knowledge, is actually a subordinate term compared to how Pinoys primarily call the season. Ask randomly and they’ll tell you: “Undas” or “Araw ng mga Patay” (All Souls’ Day).

Though I personally do not practice this, I know that most of my kababayans make trips to their respective provinces or cemeteries where their dead loved ones are buried.

However, I’ve noticed that we’ve become a little bit different in the past few years. Although I personally know some families who have long been holding Trick or Treat and costume parties in their own homes and villages, I see more and more people nowadays who adopt foreign traditions.

Left and right, on Facebook and Twitter, I see Pinay celebrity moms who come up with creative ideas on how to make Halloween a memorable one for their children. Cheska Garcia-Kramer, beautiful host of Us Girls on Studio 23, actually dressed up her little girl Kendra as a cow. Indeed, the most adorable cow I’ve ever seen!

Kendra, the most adorable cow I've ever seen!

I also don’t doubt the prediction of my dear friend Nikki Valdez (also an effective comedienne and a great singer), that her daughter Olivia will be the cutest bee this Halloween. Nikki actually plans to attend a party that will be thrown by Noah star Jodi Sta.Maria, who’s got a little boy herself. And definitely different from the little cuties, Jodi’s son Thirdy wants to be a toughie and wear Iron Man to his own party.

But who says costume parties and gimmicks are just for kids? On Umagang Kay Ganda, adults refused to miss out on fun times like this!

Costume and props galore

On Monday, we had Mr. David Chan Hwan, Product Development Officer of Unique Novelties and Toys Corporation, who brought Halloween stuff with him.

Donita chose to wear the “furry monster costume” with which she effectively frightened the audience, while Andrei wore that scary mask made infamous for the movie “Scream.”

Halloween fun with Rica Peralejo, Donita Rose, Andrei Felix, and David Chan Hwan of Unique Novelties and Toys Corporation

I personally thought my hair band, with its two little skulls held up by two spring antennas, lit and powered by AA batteries, was cute. On the other hand, the lamp I chose to carry around was hilarious. On the outside it seemed like any other plastic pumpkin lamp, but give it a slap and it’ll start laughing crazily like a witch! Believe me, it was funny more than it was scary!

Skull headband all lit up

Of course, dressing up and buying props can be costly. So if you really don’t have a budget and yet refuse to miss the fun of “dressing Halloween,” Mr. Hwan said that they have masks for as low as P18 only.

He also assured me that these masks are nothing like the ones made out of cheap plastic. Instead they use EVA (ethylene vinyl acetate), a non-toxic material, “widely accepted as safe for use of teethers,” apparently. (Got the information from safemama.com.)

Mr. Hwan also mentioned that they’re open all year round, and they also have products for other occasions like Valentine's and Christmas. Here’s the website if you want more information: untc.multiply.com.

Looking crazy

Now if you want a less tedious, minimal or subtle Halloween look, your best bet would be “crazy contact lenses.” Among the bottles and bottles of assorted lenses that Hazel Bartolome of Glamme Shop brought to the studio on Tuesday morning, these are only 4 from which you can take your pick: Soccer Ball, Smiley Face, Dolly Black (my favorite of all) and Zombie Lens (most saleable, she said). And yup, as described, so your eyeballs shall be!

Contact lenses with smiley face, soccer ball, dolly black, and zombie lens designs

Prices would be P750 for the plainly colored ones and P850 for those with crazy, wacky designs. Quite pricey for someone kuripot (thrifty) like me. But I also can’t deny that those flimsy things are actually able to achieve maximum effect.

To know more, you can visit their website: www.myglammeshop.multiply.com or call 0917-6684833.

Clean Halloween

There’s nothing scary about our guest yesterday, except I guess if she challenged me to match her acoustic prowess. Now that would be a real horror for me.

But I did ask Pop Acoustic Sensation Aiza Seguerra what she’d be doing for Halloween, and it appears that she’s off to Cebu to do a clean-up dive with her friends.

Aiza does not cease to surprise me. Talking to her another time on the show, I learned that she wanted to take up Criminology. Now I hear that she’s been recently certified as an Advanced Open Water Diver, which I think is amazing! Humbly though, Aiza would rather call herself as a “newbie,” who had fallen so in love with the sport and the marine life enough to turn her into an “activist.”

What’s more is that aside from being a passionate diver, she’s also gone past the craft of playing and making music through singing and plucking the chords of her trusty old guitar. Aiza is now into the business of producing and is doing so with no less than Carol Banawa as her first ever artist.

Aiza Seguerra now a record producer too

Almost gushing, Aiza told me how wonderful it is to be entrusted with such a project. Proudly she added that she was even able to get the Filharmonika Strings to play for Carol’s soon to be released album. And though she also did not fail to mention how demanding this new endeavor can be, working all day and sacrificing nights of precious sleep, Aiza said that all’s well because Carol is such a brilliant singer and firmly believes that, “She’s worth it.”

Just the same, Carol Banawa is all praises for her producer. She shared that “Aiza wants nothing but the best for her artist. From the instrumentation, arrangement, vocals and mixing--I learn a lot from her.” But of all, Carol values the new friendship and she’s praying that it will last a lifetime. She’s convinced that aside from being a genius, her producer is a very good person inside and out.

Carol will be watching Aiza at the Metro Bar on the 29th to show gratitude and support to her producer. She said she will bring her daughter Chelsea in her princess costume. Aside from that, she plans to go home to Batangas for Halloween. Funny how this picture represents how cross-cultural Pinoys have been in recent years. (For more of Aiza’s schedule, click here.)

As for me, I’m relatively stuck packing my things away as my husband and I get ready to move into our new home. The other thing is that I have to go up north to shoot yet another exciting adventure for the show.

So, what’s your plan by the way? Well whatever it is, I just wish you all a good loooong weekend!

Globe Asiatique execs face syndicated estafa raps

2010-10-29T04:42:00.000-07:00

Charges of syndicated estafa were filed on Friday by the Pag-IBIG Fund and the National Bureau of Investigation (NBI) against 16 officers and employees of Globe Asiatique Realty Holdings Corp (GA) and Pag-IBIG over a housing loan mess.

The criminal cases arose from the investigation of Pag-IBIG, formally called Home Development Mutual Fund, on the alleged bogus loans of its members who bought houses in GA's Xevera housing project in Pampanga. The syndicated estafa cases constitute economic sabotage.

Charged at the Department of Justice (DOJ) for this non-bailable offense are

Delfin Lee, GA board chairman
Dexter Lee, GA Executive Vice-president
Cristina Salagan, chief finance officer, treasurer and board member
Christina Sagun, heads of the company's Accounting/Finance Department and Documentation Department

The following GA employees/agents are included in the suit for soliciting and allegedly paying off "special Buyers" and/or creating "ghost borrowers":

Lerma Vitug
Tintin Fonclara
Geraldine Fonclara
Revelyn Reyes
Atty. Rod Macaspac
Marvin Arevalo
Joan Borbon
Christian Cruz
Rodolfo Malabanan
Nannet Haguiling
Hon Tungol

An employee of Pag-IBIG's Legal Department, Atty. Alex Alvarez, was also charged for notarizing majority of the fake and/or fraudulent loans submitted by GA to Pag-IBIG.

Alvarez reportedly admitted to the NBI that he received a monthly salary of P30,000 from GA "in exchange for notarizing its documents without the need for the borrowers to personally appear before him as the documents are brought to him for such notarization in batches.

"In securing funding for the Xevera Projects... the respondents actually conspired with each other, with malice and evident bad faith, by willfully and feloniously employing a grand fraudulent scheme to deceive HDMF into releasing the aggregate amount of at least P6,653,546,000 directly to Globe Asiatique, to the damage and prejudice of HDMF and its contributing members," the complaint said.

The complaint further said Lee made false representations, submitted falsified documents (such as ID, ITRs, birth certificates, TINs) allegedly manufactured by GA as supporting documents for the loan applications, and paid for the immediate Pag-IBIG membership of these fictitious and fraudulent buyers for them to qualify for loans.

Pag-IBIG claims that in order for GA to induce the mutual fund to release more funds to pay for the housing units supposedly acquired by these individuals, Lee paid the amortizations of the non-existent borrowers in order not to alert Pag-IBIG to the scheme.

300 affidavits obtained

The NBI said it was able to obtain some 300 affidavits confirming that Lee, through GA, "was actually engaged in a grand fraudulent scheme to swindle Pag-IBIG of its funds, which funds are contributions solicited from its members and the public in general."

During the investigation conducted by Pag-IBIG and the anti-graft division of the NBI, its was found that some units taken-out by PAG-IBIG through these loans, were actually occupied by 3rd parties or buyers who brought directly from GA.

Pag-IBIG said, "More shocking is the fact that of the randomly sampled 20 units taken out by Pag-IBIG that are occupied by 3rd parties, 16 properties are being occpuied by in-house buyers (buyers who bought directly from GA without loaning from HDMF, 2 of whom have fully paid their purchase to GA), 3 units are leased out by parties other than the Pag-IBIG borrowers, and 1 is being occupied by a replacement borrower."

Again, in a post-take-out validation, it was revealed that at least 644 of borrowers endorsed by GA were not genuine buyers of Xevera homes.

At least 802 of the borrowers cannot be located, 3 are actually deceased, and 275 were not around during the visit, all of whom are presumed to be totally fictitious buyers, Pag-IBIG said.

This case carries with it a penalty of life imprisonment.

‘Little President’ denies trysts with celebrities

2010-10-07T11:19:00.000-07:00

MANILA, Philippines - Executive Secretary Paquito “Jojo” Ochoa Jr. on Thursday denied rumors that he has midnight trysts with female celebrities at a plush hotel in Metro Manila.

In an interview with Anthony Taberna at Studio 23’s primetime nightly newscast “iBA-BALITA,” Ochoa said his position sees him meeting a lot of people and attending various work-related events.

“Sa dami po noon, hindi ko maintindihan kung saan nanggaling iyang balita na iyan,” he added.

Shown a photo of singer Pops Fernandez, Ochoa said, “Na-meet ko po yata siya minsan.”

He was poker-faced, meanwhile, when the photo of singer-actress Vina Morales was shown on television.

“Siya po yata iyong pinag-uusapan natin. Na-meet ko rin po siya,” said Ochoa, who is married.

He also downplayed reports on alleged factions among President Benigno Aquino III’s men.

“Iyong Samar kasi, iyon iyong headquarters na tinatag ko noong kampanya na ang principally, ang trabaho, doon ko nilagay ang legal team para kay Pangulong Aquino sa kanyang eleksiyon,” he said. “Lumaki nang lumaki ang operations noon, kaya may tinatawag na Samar headquarters.”

“Iyong Balay naman po, ay iyon iyong orihinal na headquarters po yata noong vice-presidential candidate natin noon na si Mar Roxas,” he added.

Ochoa said there is no truth to reports that the 2 groups are fighting each other to control the Palace.

He likewise shot down former Sen. Ernesto Maceda’s allegation of a “midnight Cabinet” in Malacañang.

“Palagay ko po, wala pong katotohanan iyan. Dahil nagtatrabaho po kami doon, ginagabi kami kadalasan. Pero wala naman po kaming… basta wala po na akong naiintindihan na midnight Cabinet,” he said.

No time to learn the ropes

Ochoa said he is earning around P45,000 a month as executive secretary.

“Salary grade 31 ako eh,” he revealed.

He said he had no time to learn the ropes after Aquino got elected.

“Dito po, antimano, right away, first day pa lang, ay game na. Kumbaga, walalang panahon para mag-practice,” he said.

He urged opposition Sen. Joker Arroyo to understand his situation.

“Well, malaki ang respeto ko okay Sen. Joker Arroyo, especially so na mahusay siyang abugado at galing din naman siya sa posisyon na ito. Siguro naman ay maaari niya kaming bigyan ng kaunti sa mga nangyayari ngayon, na sa kaniyang pananaw ay para nga kaming student council,” he said.

“Masisiguro ko pa na ang taumbayan na hindi naman po kami ganoon, na ang lahat ay sinisiguro namin na karapat-dapat an gaming nape-perform na trabaho, na hindi po namin pinapabayaan ito, na ang dapat naming aralin ay pinag-aaralan namin.”

“Maaari po nating masabi na bago kami… kaya lalo naming pinagbubuti ito,” Ochoa stressed.

Pacquiao: Give PNoy a chance

2010-10-07T11:09:00.000-07:00

MANILA, Philippines – World boxing champion and now Sarangani Rep. Manny Pacquiao told critics of President Benigno “Noynoy” Aquino III to go easy on the chief executive when assessing his performance during his first 100 days in office.

Pacquiao said the new president should be given the chance to lay out all his plans, and that 100 days are not enough to make significant headway in implementing his promises.

The boxing champion challenged Aquino’s critics to support the president instead of disapproving every move he makes.

Pacquiao said too much negativism won’t do the country any good.

The Sarangani congressman, however, said he does not favor the Department of Education’s (DepEd) plan to add 2 years to the country's basic education.

Pacquiao said the added years will solve the deficiencies in the Philippine educational system since the government has yet to address the lack of classrooms, meager salaries of public school teachers, and rising tuition in state colleges and universities.

Stocks breach 4,200-mark

2010-10-07T11:05:00.000-07:00

MANILA, Philippines - Stocks advanced for the second session in a row Thursday, breaching the 4,200-mark, on rosy economic outlook.

The key Philippine Stock Exchange index rose 1.1% or 48.46 points to a record high of 4,245.05.

The broader all-share index climbed 1.4% or 35.91 points to 2,676.

Except for the mining and oil sector, all subindices finished in positive territory.

But market breadth was negative as decliners beat advancers, 72 to 57. There were 51 issues unchanged.

Value turnover came in at P5 billion.

Traders said the International Monetary Fund's upward revision for its growth forecast for the Philippines boosted investor sentiment.

Expectations of robust second-half corporate earnings also spurred buying.

Philippine Long Distance Telephone Co. was the most actively traded stock by value, adding 1.2% to P2,760. This brings the stock's total gains to 4.1% in the last 3 trading sessions.

Second most active was SM Investments Corp., which picked up 1.1% to P535. SM said it would issue $400 million of new 2017 bonds, including $213.7 million in an exchange for shorter-dated bonds to lengthen its maturity profile.

Third most active was Metropolitan Bank and Trust Co. It rose 2.2% to P75 on net foreign buying.

Aquino receives Elizabeth Seton Medal

2010-09-23T19:49:00.001-07:00

NEW YORK CITY, USA – President Benigno Aquino III was conferred on Thursday the highest honor given by her late mother’s alma mater in New York.

The College of Mount Saint Vincent gave the President the Elizabeth Seton Medal in honor of his “outstanding achievements and self-sacrifice.”

Saint Elizabeth Ann Seton was the first American canonized by the Roman Catholic Church. She is credited for building the foundation of American parochial education.

The late President Corazon Aquino also received the medal in 1984.

In his acceptance speech, the President recalled his parent’s fight to restore democracy in the Philippines.

"In accepting this award, I am humbled by what this medal represents: your solidarity with my people,” he said.

“You stood with us in dark days. You stand with us now, in brighter days: the greatest period of optimism my people have seen, since the fall of Ferdinand Marcos," he added.

“I, in turn, have been called to work with my people to ensure that democracy benefits all Filipinos, and not just a few,” the President said.

“The clamor for reform came from my people, and my being here to accept this award from you, is made possible by them. It is only proper that I accept this honor in their name,” he added.

“Filipinos saved themselves from slavery to a dictator; they saved themselves from returning to the status of slaves; and they are working mightily, today, to free themselves from poverty,” Aquino said.

'Tony Boy' blasts media over jueteng row

2010-09-23T19:48:00.001-07:00

NEW YORK CITY, USA – Businessman Antonio “Tony Boy” Cojuangco Jr. lashed out at media on Thursday over reports linking him to the jueteng row in the country.

The tycoon, who is part of the Philippine business delegation accompanying President Benigno Aquino III in his US visit, insisted that he did not ask retired Lingayen-Dagupan Archbishop Oscar Cruz to “go easy” on Interior Undersecretary Rico Puno.

Cojuangco said he talked to Cruz for just around 10 minutes and asked him if he had evidence to back his claims regarding a list of alleged jueteng operators.

Cruz reportedly told the businessman that the names on the list were provided by the prelate’s informants.

Cojuangco, Aquino’s second-degree cousin and the biggest donor in his presidential campaign, said he does not believe that Puno is involved in illegal gambling operations.

He said he approached Cruz on his own accord to help the Aquino administration.

“Help should not end with the [presidential] campaign,” he added.

Cojuangco vented his ire on media and said journalists should not have reported Cruz’s jueteng exposé because it had no basis.

He added that the media should ignore jueteng payola stories unless they have hard evidence.

He also urged journalists to just help the Aquino administration.

Gates tops list of richest Americans; Facebook co-founder 35th

2010-09-23T19:45:00.000-07:00

WASHINGTON, September 23, 2010 (AFP) - Microsoft founder Bill Gates topped the Forbes magazine list of the 400 richest Americans on Thursday as Facebook's Mark Zuckerberg leapfrogged Apple's Steve Jobs in the rankings.

Gates, 54, who has stepped down from day-to-day activities at Microsoft to concentrate on philanthropy, has an estimated net worth of 54 billion dollars, according to Forbes.

Berkshire Hathaway's Warren Buffett, 80, was the second-richest American with a net worth of 45 billion dollars followed by Oracle's Larry Ellison, 66, with 27 billion dollars and Walmart's Christy Walton, 55, with 24 billion dollars.

Also in the top 10 were Charles Koch, 74, and his brother David Koch, 70, of Koch Industries, each with an estimated net worth of 21.5 billion dollars.

Other members of Walmart's Walton family were next: Jim Walton, 62, with a net worth of 20.1 billion dollars, Alice Walton, 61, with 20 billion dollars and S. Robson Walton, 66, with 19.7 billion dollars.

New York Mayor Michael Bloomberg, 68, founder of the Bloomberg financial news agency, rounded out the top 10 with a fortune estimated at 18 billion dollars.

Google co-founders Larry Page and Sergey Brin, both 37, were next, each with a net worth estimated at 15 billion dollars.

Technology titans occupied four more slots in the top 20: Michael Dell, 45, founder of Dell Computer, with 14 billion dollars, Microsoft chief executive Steve Ballmer, 54, with 13.1 billion dollars, Microsoft co-founder Paul Allen, 57, with 12.7 billion dollars and Amazon's Jeff Bezos, 46, with 12.6 billion dollars.

Facebook's Zuckerberg, 26, ranked number 35 on the Forbes list with a net worth of 6.9 billion dollars, up from two billion dollars last year.

Other notable figures on the list included News Corp.'s Rupert Murdoch, 79, at number 38 with a net worth of 6.2 billion dollars and Apple's Jobs at number 42 with 6.1 billion dollars.

EBay co-founder Pierre Omidyar, 43, ranked 47th with 5.5 billion dollars followed by Google chief executive Eric Schmidt, 55, with 5.45 billion dollars.

New York real estate tycoon Donald Trump, 64, ranked number 153 with a net worth estimated at 2.4 billion dollars.

The 2nd ASEAN-U.S. Summit: What’s on the Menu in Manhattan?

2010-09-23T19:42:00.000-07:00

President Barack Obama will host 8 of the 10 leaders from the Association of Southeast Asian Nations (ASEAN)—Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam—in New York City on Friday, September 24, at the second U.S.-ASEAN Summit. The meeting underlines renewed U.S. policy energy being invested in Southeast Asia. Headlines from the discussion will likely focus on three areas:

1. Security alignment—including restatement of a common position on the South China Sea;

2. Economic growth and trade—particularly ASEAN’s leaders are seeking an update from Obama on the health of the U.S. economy and a read on whether the mid-term U.S. congressional elections might be an inflection point after which the United States can return to a proactive posture on trade; and

3. Burma—specifically exploring how the United States and ASEAN can encourage Burma’s leaders to create political space in the November elections and beyond.

The fact that the meeting is taking place in September in the United States is important in that it institutionalizes renewed U.S. engagement in ASEAN ahead of key steps forward in creating new regional security and trade architecture in Asia.

On the other hand, the fact that the summit is taking place in New York, not Washington, and without the leader of ASEAN’s largest country and economy, Indonesia, underlines the fact that while the policy intent is clearly substantive engagement, there is still much work to be done to align the United States and ASEAN.

Despite the best intentions of the principals, the meeting will certainly be viewed through the prism of perceived increased tension between China and its Asian neighbors, particularly related to disputed maritime territories.

Q1: Who is meeting and what is the agenda?

A1: President Obama will host the summit over lunch at a hotel in New York City from 12 noon to 2:30 p.m. on Friday, September 24. Eight of the 10 ASEAN leaders are confirmed to join him, except for President Susilio Bambang Yudhoyono of Indonesia and Prime Minister Thein Sein of Burma. The ASEAN secretary general, Dr. Surin Pitsuwan, will also join the meeting. The only surprise is Yudhoyono’s absence, and that is significant (see below). The Burmese were not expected to send their head of state due to poor relations with the United States and the sanctions regime currently in place. Indonesia’s President Yudhoyono will be represented by Vice President Boediono, and Burma’s Prime Minister Thein Sein will be represented by Foreign Minister U Nyan Win. The leaders will be accompanied in most cases by their ministers of foreign affairs, ambassadors to the United States and/or the United Nations, and other senior officials.

Q2: Why isn’t President Yudhoyono attending, and what are the implications of his absence?

A2: President Yudhuyono notified the White House that he could not accept President Obama’s invitation to come to New York due to domestic issues in Jakarta. Insiders confirm that Yudhoyono decided he could not come to New York because of a confluence of issues—including the fact that Obama has had to postpone planned travel to Indonesia three times since taking office and the short notice given by the White House (not quite a month in advance of the meeting). Had the summit been held in Washington, D.C., and in early October, so Yudhoyono and the other ASEAN leaders could have come on either side of their long planned visit to Brussels for the Asia-Europe Summit, the Indonesian leader would probably have come.

Yudhoyono’s absence sends a strong signal that although the U.S.-ASEAN relationship is moving in the right direction, there is work still to be done to improve alignment. Indonesia is ASEAN’s largest country and has the largest economy, both more than twice the size of the next member. It is also ASEAN’s incoming chairman for 2011. It is likely that the United States and ASEAN will get back on track next year when Indonesia hosts the third U.S.-ASEAN Summit, and after President Obama finally is able to make his long-awaited visit to Indonesia. There are quiet plans for him to visit Jakarta during his Asia trip after U.S. mid-term elections in November. That trip would include India, Indonesia, Korea for the G-20 Summit, and Japan for the APEC Leaders Summit. In sum, Yudhoyono’s absence doesn’t fully diminish the importance of the meeting in New York on Friday, but it lays down the marker that the U.S.-ASEAN relationship is trending well, but remains a work in progress. (I explore the gap between U.S. policy intentions toward ASEAN and the realities of domestic politics revealed by Yudhoyono’s absence from New York on the CSIS Southeast Asia policy blog. Click here for the article.)

Q3: What is the on the security agenda and will the South China Sea be a focus?

A3: The United States and ASEAN are working with other countries, including Australia, China, India, Japan, Korea, New Zealand, and Russia, to create new regional security architecture in Asia. To this end, the United States and Russia will be invited to join the East Asia Summit (EAS) this October during its meeting in Hanoi. Secretary of State Hillary Clinton will represent the United States at the meeting and accept the invitation. The United States will then ideally be represented by President Obama at the next EAS hosted by Indonesia in 2011 (it is likely that the U.S.-ASEAN Summit will be held in proximity). As part of its calculus in deciding to join the EAS, the United States recognized that it must strengthen its security and political ties with ASEAN and invest in supporting ASEAN’s self-defined goals to firm up its foundation through economic, political, and socioeconomic integration, as outlined in the ASEAN Charter. To this end, the United States has been moving to normalize military ties with Indonesia and to enhance military relations with Vietnam, as well as committing to join the ASEAN Defense Minister Meeting + 8 (which includes the same countries listed above who are/will be members of the EAS).

In this context, one of the existential challenges for Asia is to create structures and use diplomacy to encourage China’s peaceful rise as a major world power. The South China Sea represents a major challenge in this process. China has been very effective in its “charm offensive,” begun during the Asian financial crisis in the late 1990s, writing a script as an engaged and committed neighbor promising economic dynamism through expanded trade and investment and regional economic integration. However, China’s geopolitical interests are the other side of that coin. China’s definition of its “indisputable sovereignty” over the South China Sea, in response to Secretary of State Clinton’s reiteration of long-standing U.S. goals for maritime dispute resolution and freedom of navigation in the area based on international law and a multilateral approach, has uncovered atavistic anxieties about China’s intentions among the Southeast Asian countries. Therefore, ASEAN has welcomed a strong U.S. voice on security concerns in the South China Sea, and this has come at a time—ahead of a Chinese political cycle that will identify the country’s next generation of leaders in 2012—of heightened nationalism in China.

Neither the United States nor ASEAN wants to provoke Chinese nationalists, but both recognize the importance of being firm and sustaining a commitment to a multilateral approach to dispute resolution. Therefore, it is likely that the summit in New York will result in a joint statement that addresses the issue by reiterating the intent and direction of Secretary Clinton’s remarks at the ASEAN Regional Forum (ARF) in Hanoi with a focus on China.

Q4: How about economic growth and trade?

A4: ASEAN is concerned about the health and direction of the U.S. economy and hopes that President Obama can assure them that a recovery is underway and that he will be able to move the United States toward a more proactive posture on trade after the U.S. mid-term elections in November. These issues are fundamentally important to ASEAN because the United States is its largest overseas market (particularly when you consider the fact that many ASEAN exports go through China as part of a supply chain that ends up with products delivered to the United States), and because the United States remains one of the top and qualitatively most valuable sources of investment and technology for the region. ASEAN is collectively the most trade dependent formal grouping of nations in the world, with trade accounting for nearly 100 percent of aggregate gross domestic product. So if trade stagnates, ASEAN is the global canary in the coal mine and it suffers first and most significantly.

ASEAN will be watching the U.S.-Korea Free Trade Agreement closely as the benchmark indicator for whether Obama will use the political chits necessary to kick-start trade and make the case to Americans that long-term recovery is dependent on U.S. engagement in ASEAN, Asia, and the world. ASEAN is the United States’ fourth-largest overseas market and one that promises high-level growth for the coming years. ASEAN wants to know if the mid-term elections will be an inflection point for the U.S. stance on global trade. (Read more on the disconnect between policy and politics on trade with ASEAN in cogitASIA )

Q5: What about Burma?

A5: With Burmese elections coming up on November 7, Burma is sure to be high on the summit agenda—at least for the Unites States. While ASEAN would prefer not to have to carry the weight of Burma’s cloistered and intransigent military junta, it recognizes that having made the commitment to bring Burma into its membership it must work with the United States and others to try to encourage the creation of political space there. The Obama administration deserves credit for its courage and foresight in espousing an engagement strategy toward Burma that allowed it to reengage with ASEAN and hold meetings such as this summit. While the engagement has not produced results in Burma, the United States has changed its paradigm with ASEAN. The administration can and likely will tighten sanctions on Burma by focusing on its leaders, their families, and companies they are associated with—measures outlined in the Lantos Act. ASEAN needs to do its part and increase its normative focus on Burma to pressure the regime to create more political openness so it can truly engage in the core elements of integration defined in the ASEAN Charter. If ASEAN begins to focus on Burma, pressure may increase on China and India to refocus their current mercantilist and military policies that enable the hard-line domestic political stance of the junta and to play a role as responsible stakeholders encouraging positive change in the country.

Q6: What next?

A6: ASEAN hopes that President Obama will announce his candidate as the first U.S. ambassador to ASEAN to be resident in Jakarta. A candidate’s name is reportedly pending review and due diligence, though it is not likely that name can be announced on Friday. Additionally, the United States and ASEAN are expecting to name an Eminent Persons Group (EPG) to provide guidance and leadership for the relationship. These names have also not been announced yet.

After the New York summit, Secretary of State Hillary Clinton will be in visiting Hanoi for the EAS, and Secretary of Defense Robert Gates will visit Vietnam for the ASEAN Defense Ministers Meeting + 8. President Obama is planning to visit Indonesia in November as mentioned above.

Legalize "ukay-ukay" and collect taxes - Customs chief

2010-09-17T14:48:00.001-07:00

MANILA, Philippines - Bureau of Customs Commissioner Angelito Alvarez is urging the government to legitimize the used clothes or "ukay-ukay" trade and tax importers of these items.

Alvarez said it is better to allow the entry of used clothes and impose proper import duties and taxes, instead of merely confiscating the items.

On Thursday, the Customs showed ABs-CBN News the newly-confiscated 5 container vans from India and Hong Kong containing used clothing and accessories.

The illegal entry of "ukay-ukay" items are expected to further rise in the run-up to the Christmas holidays, said Colonel Marlon Alameda, the district commander of the Manila International Container Port.

"Two months from now, Pasko na, kaya inaasahan namin yung ganitong pagdagsa ng ganitong klaseng shipment, considering na mabili ito sa market."

Under Republic Act 4653, or the act to safeguard the health of the people and maintain the dignity of the nation, the commercial importation of textile articles is prohibited. Shipments are only allowed when used clothes are intended to be made into rags.

Alvarez said he will ask Congress to ammend the law to finally legalize the importation of used clothes.

He said even with the prohibition, retailers flagrantly sell the used items that have spawned so many "ukay-ukay" stores nationwide, with the items sold at dirt cheap prices.

T-shirts and blazers sell for as low as P10, while Italian leather shoes cost around P100.

"They are saying it is against national dignity,that it is for health and safety reasons. It doesn't really make sense. It is prohited so nanghuhuli, but when there is a calamity, I get requests from the DSWD (Department of Social Welfare Development) to just donate the items," said Alvarez.

Customs Superintendent Joey Yuchongco of the Customs Police Division said that instead of burning "ukay-ukay" items, the agency keeps these in storages.

"Malaki po itong makokolekta natin (if these are taxed). Pag na-confiscate, hindi na nila makukuha."

Congresswoman Janet Garin however, is againt legalizing the importation of used clothes.

She said that this will adversely affect the struggling local garments industry.

'Hot money' at $926-M in Jan-Aug

2010-09-17T14:46:00.000-07:00

MANILA, Philippines - Foreign portfolio investments, also known as "hot money", grew more than 5 times in the first 8 months of 2010 from a year ago, the central bank said.

Net portfolio inflows in January to August reached $926 million against an inflow of $182 million in the same period of 2009.

For August alone, gross foreign portfolio inflows totalled $787.90, and gross outflows were $562.84 million.

The United States, United Kingdom, Singapore, Malaysia and Luxembourg accounted for 83% of portfolio investments in the January to August, the Bangko Sentral ng Pilipinas said.

Placements in the stock market accounted for $4.1 billion, or 71% of the $5.8 billion registered investments for the 8-month period. The balance was in local currency government debt and time deposits. Registration of foreign investments with the central bank is voluntary, but is required if investors want to buy foreign currency to be sent out of the country.