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VOL. XXXIII • NO. 231 • 3 SECTIONS 16 PAGES • P18 THURSDAY, OCTOBER 3, 2019 • www.manilastandard.net • mst.daydesk@gmail.com
PNP chief turns tables on accuser Resignation an option, Gordon says
By Macon Ramos-Araneta, MJ Blancaflor and Rey E. Requejo
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HILIPPINE National Police chief Oscar Albayalde should consider resigning after testimony before the Senate accused him of interfering in the dismissal of 13 of his men who were accused of recycling seized narcotics when he was still the provincial director for Pampanga, Senator Richard Gordon said Wednesday.
Arson eyed in DZRH-Star City blaze By Joel E. Zurbano AUTHORITIES are not ruling out the possibility that the fire that destroyed the Star City Complex in Pasay City early Wednesday morning was a case of arson. The office of radio and tel-
evision network Manila Broadcasting Company, which owns DZRH (AM Radio) and Love Radio (FM), was also gutted by the blaze that started around 12:33 a.m. Malacañng urged government entities on Wednesday to
extend any form of assistance to those affected by the fire. The blaze was believed to have started in the stockroom of soft toys and an assortment of prizes, and quickly spread to the other parts of the building. Turn to A3
FIGHTING FIRE. Firefighters (right) challenge raging flames that reached Task Force Bravo which burnt some attractions of the amusement park Star City in Pasay City Wednesday, causing an initially estimated P1 billion in damage. Management of Star Parks Corp., relying on assessments of its engineers, said the park will remain closed until October next year. Norman Cruz
Oil players in hot water over pump price swings ASF attacks 4 By Alena Mae S. Flores QC barangay; and Maricel V. Cruz hog ban in Aklan th
By Rio N. Araja AFRICAN Swine Fever has broken out in a fourth barangay in Quezon City, city authorities said Wednesday. The city government’s chief veterinarian, Dr. Anamarie Cabel, said a new case of ASF broke out in Barangay Pasong Tamo. “Yes, we have culled 104 pigs there,” she told the Manila Standard. “Blood test results were positive for ASF.” At the moment, Cabel said, Barangay Payatas was their “area of concern [since] all pigs [there] are infected.” Out of the 5,000 pigs in the village, only 2,465 of them have been culled, she added. Next page
Taiwan rescuers recover 2 Pinoys By Rey E. Requejo THE bodies of two of the three Filipinos reported missing after a bridge collapsed in Yilan County, Taiwan have been found, the Manila Economic and Cultural Office said Wednesday “Two bodies have been recovered. The first one was retrieved at midnight on Tuesday. The other body was found at 4 am this morning,” MECO chairman Lito Banayo said, in an interview with GMA News TV, beamed nationwide. Next page
ENERGY Secretary Alfonso Cusi has ordered 13 oil companies to explain why their oil price rollback was lower than government computations and why their increase in the price of cooking gas was
higher than expected. “Our actions support our mandate to protect consumer welfare and ensure fair oil industry practices,” Cusi said in a statement. “The SCOs [show cause orders] would provide these companies the opportunity to explain how they arrived at their respec-
tive oil price rollback calculations,” he said. The department declined to name the 13 oil companies but gave them until Oct. 7 to formally respond to the government order. Energy Assistant Secretary Leonido J. Pulido III said the oil companies implemented a lower price cut than what was computed by the department. Next page
Duterte guns for renewed bilateral ties with Russia By MJ Blancaflor PRESIDENT Rodrigo Duterte is aiming for renewed ties with Russia along with key agreements on labor and agriculture, Philippine Ambassador Carlos Sorreta said Wednesday as President Duterte kicked off his six-day official visit to that country. The President had decided to make up for ‘‘lost time’’ and ‘‘opportunities’’ with the Russian Federation since geopolitics and history had kept Manila and Moscow apart, Sorreta said. “Our President has decided to make up for lost time, for lost opportunities. And we want to strengthen and deepen our ties with them, he said. Duterte arrived at the Vnukovo Military Base Airport in Moscow at 8:25 a.m. Philippine time and was welcomed by Russian officials. In Moscow, the President met with Russian Prime Minister Dmitry Medvedev whom he first met on the sidelines of the 2016 ASEAN Summit in Laos. He also met Igor Sechin, head of the Russian oil giant Rosneft. Sorreta said the week-long trip was different from the first because, aside from meeting Russian President Vladimir Putin, Duterte was also slated Next page
In testimony before the Senate, former police official and current Baguio City Mayor Benjamin Magalong said that in 2016, Albayalde had called Philippine Drug Enforcement Agency chief Aaron Aquino, at the time PNP director for Central Luzon, to ask him not to carry out the dismissal. Gordon said Albayalde’s conduct at the time was “very inappropriate.” Aquino had told the Senate the same account but later took it back, saying Albayalde had merely sought information on the cases. Asked if Aquino, too should resign, Gordon said: “It’s up to him. Men of inNext page tegrity know what to do.”
DFA chief blasts new Sino incursion By Rey E. Requejo
DUTERTE IN MOSCOW. President Rodrigo Duterte arrives in Russia with the capital’s 16 degrees Celsius under a cloudy sky to start his week-long official visit in the country upon the invitation of its leader Vladimir Putin. He was welcomed at the Vnukovo Military Base Airport in Moscow at 8:25 a.m. (Manila time) by Russian officials led by Andrey Igorevich, deputy director of the State Protocol Department. Presidential Photo
DSWD urged: Buy rice, boost farm income By Macon Ramos-Araneta FARMERS stand to earn P31 billion a year if the Department of Social Welfare and Development will buy rice from the National Food Authority for distribution to the 4.41-million beneficiaries of the government’s Cash Conditional Transfer program, an official said Wednesday. Instead of giving cash, Senate agriculture and food committee chairman Cynthia Villar recommended that the form
of assistance be in kind like rice. Meanwhile, a group says the private sector involved in the rice industry’s supply chain of the rice industry says a rice tariff of at least 70 percent will save Filipino farmers from bankruptcy and boost their global competitiveness. A rice tariff of at least 70 percent, which is sanctioned by the Rice Tariffication Law, should be urgently implemented by the government to stop rice imports that are hitting rice farmers. Next page
FOREIGN Affairs Secretary Teodoro Locsin Jr. on Wednesday ordered the filing of another diplomatic protest against China, in connection with the latest incursions of its vessels near Ayungin Shoal in the West Philippine Sea. “Fire off another diplomatic protest... Now,” tweeted Locsin, who is in Russia as part of President Rodrigo Duterte’s entourage. Locsin gave the order after newly appointed Armed Forces chief Lt. Gen. Noel Clement revealed the unannounced entry of Chinese vessels near Ayungin Shoal to the Department of Foreign Affairs for appropriate diplomatic action. In a Sept. 26 report, the Asia Maritime Transparency Initiative confirmed the presence of the China Coast Guard vessels at the Ayungin and Panatag shoals, which are easily accessible from the Next page
Guy Fawkes masks HK protest symbol FRESH FACES. Nearly 90 delegates from different countries are in Manila for the Miss Earth competition, a themed beauty contest created by Carousel Productions in 2001 as an awareness tool aimed at promoting the preservation of the environment among other significant issues. Miss Earth 2019 will be held on Oct. 26, 2019 at Jesse Robredo Coliseum in Naga City, Camarines Sur. Nguyễn Phương Khánh of Vietnam will crown her successor at the end of the event. Lino Santos
AS HONG KONG raged with the worst political violence so far this summer, many of those hitting the streets adopted a new symbol—smiling Guy Fawkes masks. The face coverings, made popular Turn to A3
CANNABIS CAFE OPENS IN H’WOOD WORLD B3
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News
THURSDAY, OCTOBER 3, 2019
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House adopts Senate version to reset SK polls By Maricel V. Cruz THE House of Representatives on Wednesday approved on second reading the proposed postponement of barangay and Sangguniang Kabataan elections scheduled for May 2020. The chamber, presided by Deputy Speaker Johnny Pimentel, adopted the Senate version of the bill that postpones the barangay and SK elections to Dec. 5, 2022. The last barangay elections were held in May 2018. In September, the House suffrage and electoral reforms committee approved the bill postponing the barangay and SK polls from May 2020 to May 2023. If enacted into law, there will be two elections in 2022—the presidential polls in May and the synchronized barangay and SK polls seven months after.
ASF... From A1
“Culling of other pigs is still ongoing,” she said. Under the Department of Agriculture’s 1-7-10 protocol, all pigs within a one-kilometer radius of the outbreak should be culled. The city government has advised backyard hog-raisers in Barangay Roxas, a nearby village from Tatalon, to surrender their pigs for culling. Hogs were culled in Bagong Silangan, Payatas and Tatalon after they were tested positive for ASF. Meanwhile, the provincial government of Aklan imposed a 90-day ban on the entry of live hogs and processed pork from Luzon and countries affected by ASF. Aklan has joined the ranks of Bohol, Cebu City, Cebu province, Davao City, Iloilo, Mandaue City, Misamis Oriental and Negros Occidental, which have imposed similar temporary bans. In Luzon, Pampanga also sealed its borders to prevent the entry of live hogs and all pork products from neighboring provinces. The ASF scare did not faze the Hotel and Restaurant Association of Baguio, however, from scheduling the longest longanisa festival on Oct. 6. “It will be 7.5 kilometers-long, which will be held by around 1,000 people spread, along the uphill portion of Session Road [back and forth],” said Andrew Pinero, HRAB spokesman and the customer relations manager of the Baguio Country Club. The longanisa will be displayed uncooked and sold to the public at a cheap price. Pinero said the event marked the third time the HRAB, in partnership with Alabanza meat shop—the maker of what is now known as “Baguio longanisa”— made it an attraction of the Hotel and Restaurant Tourism weekend. He said the pork meat used for the longanisa is free from the ASF virus plaguing the hog industry in various provinces. With PNA
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The Philippine Chamber of Agriculture and Food Inc. says it ‘‘strongly supports the RTL’’ contrary to what is perceived by some groups. Joint Resolution 8, which was delivered on the Senate floor, directs various government agencies, including Social Welfare, to directly purchase palay from local farmers. It says the 2019 General Appropriations Act provides a total allocation of P33.9 billion for rice subsidies, the largest of which is given to the DSWD beneficiaries under the Pantawid Pamilyang Pilipino Program. This can be used in coordination with the Department of Agriculture and the NFA to buy palay directly from local farmers. The joint resolution, Villar said, also provides that the program grants the beneficiaries rice subsidy in the form of financial assistance in the amount of P600 per month. This is equivalent to 20 kilos or rice. Villar said this is in addition to the P300 cash assistance per month to the same beneficiaries or P3,600 per year under the 4Ps program. During the DSWD subcommittee hearing under the Committee on Finance, it was said that a balance of at least P6.97 billion remained undisbursed under the rice subsidy program. The remaining allocations of P2.89 billion is allotted to the rice subsidy programs for military personnel such as the provision of 20 kilos of rice per month in the form of financial assistance to the uniformed personnel. With Abe Almirol
‘Stop hazing, ban frats’ He said hazing should be in moderation. Just enough. So if you can bring him to the hospital, he will live. But not that he will be killed,” President Duterte told reporters during his pre-departure briefing before flying to Russia. Eradicating hazing will only be possible if the government bans fraternities, but doing so will raise constitutional issues since the 1987 Charter guarantees freedom to join organizations, Duterte said.
You cannot get rid of that, ma’am. Unless you ban fraternities for all time. Make it a criminal offense by joining a fraternity. But that would raise so many constitutional issues,” Duterte said. He made the statement in the wake of the reported hazing incidents in several educational institutions, including the hazing death of Philippine Military Academy cadet 4th class Darwin Dormitorio. Last week, a hazing-related conversation among Sigma Rho fraternity members of the University of the Philippines
Diliman also surfaced online. This despite the passage of Republic Act 11053 or the Anti-Hazing Act of 2018, which penalizes all forms of physical and psychological hazing and regulates initiation rites. The law was crafted in a bid to make recruitment safer following the fatal hazing of University of Santo Tomas law freshman Horacio Castillo III in the hands of Aegis Juris members in 2017. Duterte also said he suffered from “massive hematoma” when he went through hazing in college. He and his two classmates wrote to their fraternity to “earnestly” ask to do away with hazing but to no avail, he said. The President is a member of the Lex Talionis fraternity at the San Beda Law School. As for the hazing incident hounding the PMA, Duterte said he would wait for the results of the police investigation before acting on the matter.
PNP...
that the police officers did not declare the amount seized. which in their estimate would reach P10 million. Furthermore, Magalong said the police officers did not present the real suspect in the raid, Johnson Lee, who was reportedly allowed to go free after paying them P50 million. Instead, they presented another Chinese man. Gordon said he was also disappointed with Aquino for allegedly retracting his revelation that Albayalde phoned him in 2016 to request him not implement the dismissal order against the policemen involved in the drug operation. He said perhaps Aquino had bowed to peer pressure. “That’s when you will know if you are a real man,” Gordon said. In an interview with reporters after the Senate investigation on the issue Tuesday, Aquino said Albayalde did not intervene in the dismissal order and only asked for a review and status of the operation, echoing Albayalde’s defense during the hearing. Albayalde told Gordon’s panel that he merely asked about the status of the policemen because their families and friends were asking him about them. In 2017, the dismissal order against the 13 so-called ninja cops was downgraded into a one-rank demotion for the involved officers. President Rodrigo Duterte said he would wait for the Senate panel and Interior Secretary Eduardo Año to complete their investigation on the ninja cops before deciding on the fate of the involved policemen, including Albayalde. Speaking to reporters before his departure for Russia, Duterte said Año may conduct his own investigation, which will be his basis to “dismiss, discharge, terminate any or all of them.”
“We are not totally bound by the investigation of other departments. Though I would say that most of the testimony or declarations given in the Senate were under oath, I supposed that everybody was telling the truth there,” Duterte said. “But procedural due process must be followed. I cannot just wait for the Senate, its report, then adopt it as my own,” he added. The Chief Executive also assured the public that he will be objective in his decision. “If it comes to a serious thing [such] as dismissing a top official here and there, it has to be for a good reason and there must be enough proof,” Duterte said. In a separate development, the Department of Justice on Wednesday said the United States visa given to suspected drug queen Guia Gomez-Castro has been canceled. “Upon request of the Department of Justice, the US visa granted to alleged drug queen Guia Castro has been canceled,” Justice Undersecretary Markk Perete said, in a text message to reporters. National Capital Region Police Office director Maj. Gen. Guillermo Eleazar earlier said Castro, former chairwoman of Barangay 484 Zone 48 in Sampaloc, Manila, left the country for Bangkok, Thailand on Sept. 21 then flew to Taiwan and then to the United States on Sept. 25. “The BI [Bureau of Immigration] is now working with US Immigration authorities to effect her deportation to the Philippines,” Perete added. Police have linked Castro to ninja cops, saying she distributed their recycled drugs.
The latest filing is at least the fifth diplomatic protest filed by the Philippines against China this year. China does not recognize the 2016 Arbitral Award by Permanent Court of Arbitration in favor of Manila, which invalidated its massive claims to nearly the entire South China Sea and clarified the Philippines’ exclusive economic zone, including the West Philippine Sea. Duterte told his Chinese counterpart Xi Jinping during their bilateral meeting in Beijing on Aug. 29 that the arbitral award was “final, binding and not subject to appeal.” However, Xi rejected Duterte’s position even as both leaders agreed that a Code of Conduct in the South China Sea should be formulated and that dialogue continue to peacefully resolve the conflict. The two countries also agreed to exercise self-restraint and respect for freedom of navigation and overflight in the disputed waters. Locsin Jr. on Wednesday said the Philippines and Indonesia’s recent submission of the 2014 agreement establishing the boundary between their overlapping EEZs to the UN showed that bilateralism works. In recalling his recent dialogue with former Australian Prime Minister Kevin Rudd about overlapping EEZs, Locsin said there is a way to settle the issue without surrendering claims. “I had no answer then I remembered this: ‘Yes, Indonesia and I found it, but it took 14 years to happen,’” he said, referring to the two nations’ joint submission of the 2014 bilateral agreement on Sept. 27.
Locsin said ‘”sometimes bilateralism works” when bilateral dialogue partners “show mutual respect.” The official copy of the agreement and respective instruments of ratification were submitted by Locsin and Indonesian Foreign Minister Retno Marsudi to UN Undersecretary-General for Legal Affairs Miguel de Serpa Soares at the UN Headquarters in New York last week. The submission follows the ceremonial exchange of ratification instruments by the two foreign ministers at the 52nd ASEAN Foreign Ministers’ Meeting on Aug. 1, which effectively put into force the bilateral maritime border delimitation agreement. The agreement, which was first discussed in June 1994, was formally signed by the two states in May 2014 in Manila. It was ratified by President Duterte in February 2017 and by the Indonesian Parliament in April 2017. The Philippines completed its twostep domestic procedure in June when the Senate concurred with the executive ratification. Both countries are parties to the 1982 United Nations Convention on the Law of the Sea and are entitled to EEZs of 200 nautical miles. Under the convention, states have sovereign rights to explore and exploit, and conserve and manage natural resources, within their EEZ. But the Philippines and Indonesia have overlapping EEZs in the Mindanao and Celebes Seas, and in the southern section of the Philippine Sea in the Pacific Ocean. With PNA
jured and were brought to the hospital for immediate treatment and medical attention. They are Julio S. Gimawa, Jason N. Villaruel, Allan H. Alcansano, John Vicente Royo and June B. Flores. Officials at the Philippine Overseas Labor Office visited the victims at the hospital and provided their immediate needs and personal requirements. The Philippine labor office in Taiwan is also facilitating the repatriation of the remains of Serencio and Impang. On instructions of Labor Secretary Silvestre Bello III, all possible assistance will be extended to the family of those
killed in the incident. Death and other benefits will also be provided. Scholarship benefits will be extended to the victims’ children. POLO Taiwan is on top of the situation and providing necessary and extended assistance to the affected workers and their families to recover from the unfortunate incident, DOLE said in its statement. Taiwanese authorities said the collapse of the bridge, which carries traffic over the busy fishing port, damaged three fishing boats and two vehicles, including the tanker. It is not yet clear what caused the collapse. Dramatic CCTV footage captured the
By MJ Blancaflor
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RESIDENT Rodrigo Duterte said Tuesday night he cannot get rid of hazing in the fraternities despite approving a supposedly tougher measure banning and penalizing physical harm and violence during initiation rites.
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Albayalde on Wednesday dismissed the allegations against him as “a war of perception” between him and Magalong, whom he said might be envious of him. “This is a war of perception, this is a war of personality. My personality here is being attacked,” Albayalde told radio dzMM in a mix of English and Filipino. “Maybe he was envious or what, I really don’t know.” He said Magalong was trying to ruin his reputation but could show no documents to prove his allegations. Gordon said he has nothing personal against Albayalde, but said the PNP chief was “either pretending to be incompetent” or he really did make the call. He said Albayalde’s retirement was only two months away anyway so he should consider stepping down. He said he agreed with Magalong that it was impossible for Albayalde to not know what was happening at the time. But Gordon acknowledged he could not say if Albayalde had links to the irregular drug operations in Mexico, Pampanga in November 2013, but said he was clearly guilty of neglect of duty. Magalong told last Tuesday’s joint Senate hearings chaired by Gordon that members of the anti-drug team of the Pampanga Provincial Police Office failed to declare 160 kilos of shabu worth P648 million from a drug raid in 2013. Magalong said when they conducted their own investigation, they found out that the confiscated shabu was around 200 kilograms. They also discovered
DFA... From A1
newly-built Chinese port facilities on artificial islands in the Spratlys. The maritime institute had identified 14 CCG vessels broadcasting automatic identification system signals while patrolling the West Philippine Sea features over the last year. CCG ships did not usually open their automatic identification systems during patrols, but they frequently broadcast their presence in these areas. While other CCG vessels elsewhere in the South China Sea do not broadcast AIS, the think tank said data showed at least one ship was broadcasting at Second Thomas for 215 days, and from Scarborough for 162 days. The Philippines had repeatedly protested the incursion of Chinese ships in its territorial waters and exclusive economic zone. Before this, Locsin fired off a series of diplomatic protests against Beijing over the presence of its warships and survey ships in the Philippines’ exclusive economic zone. Diplomatic protests against China had also been filed over the presence of Chinese vessels near Pag-asa Island in the West Philippine Sea. The Department of National Defense believes that Chinese fishing vessels do more than just fish in the West Philippine Sea, but are part of China’s strategy to control the resource-rich waters and deny Filipinos access to their exclusive economic zone.
Taiwan...
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“The two bodies have already been identified. Search is on for the third one,” Banayo said. The Department of Labor, in a statement, extended its sympathies to the families of Andree Abregana Serencio and Gorge Jagmis Impang, both confirmed dead. Romulo Ilustrisimo Escalicas Jr. remains missing. Five other Filipino workers were in-
Oil...
From A1
The oil firms cut the price of gasoline by P1.45 to P1.55 per liter and diesel by P0.50 to P0.60 per liter early this week. But Pulido said by their calculations, the oil firms should have cut gas prices by 22 centavos more for gasoline and six centavos more for diesel. “We want them to explain it; we are not saying they are wrong,” he said. Pulido added that for liquefied petroleum gas, the oil companies raised prices higher than the world market. “We’re also asking LPG suppliers and importers to explain in three days,” he said. The oil companies raised the price of LPG from P3.98 a kilo to P4.50 a kilo effective 12:01 a.m. Oct. 1. “We were just surprised. Historically, our computations would match. It prompted us to ask them to explain. This is the first time over the last three years. We really want to hear [from them] in the next few days,” Pulido said. He said government is looking at importing cheaper oil through state-run Philippine National Oil Co. as part of its mid-term plans to ensure energy security. “We are preparing a bill that we intend to introduce to Congress where we will ask for the legislation of a strategic reserve,” he said. He said the department is also considering amendments to the Oil Deregulation Law since under a deregulated environment, government cannot dictate oil prices. In the House of Representatives, a lawmaker has filed a resolution calling for an investigation into the sudden increase in fuel prices in September, a few days after drone attacks knocked out nearly 60 percent of Saudi Arabia’s oil production. In House Resolution 390, Rep. Stella Luz Quimbo of Marikina City said representatives from oil companies told the Senate committee on energy on Sept. 23 that the country had sufficient fuel supply and could turn to other countries if tensions in the Middle East intensify. Despite this pronouncement, Quimbo said, the oil companies simultaneously announced a price increase of P2.35 per liter on gasoline, P1.80 per liter on diesel and P1.75 per liter on kerosene for the week, resulting in the highest increase for 2019. “The sudden increase in fuel prices took place allegedly as a result of the Saudi Arabia supply crisis, which oil companies alleged affected their capacity to supply oil,” Quimbo said. The resolution also noted the oil price increase took effect nine days after the drone attacks, despite the mandatory requirement to maintain a 15-day supply of petroleum products. Refiners, moreover, must maintain a minimum inventory equivalent to 30 days’ supply. Given this stock, the fuel being sold now should be insulated from the supply problem brought about by the Saudi attack, Quimbo said. Quimbo said the congressional inquiry is intended to determine “the legality, necessity and determination of the propriety of these sudden fuel price increases.”
Duterte...
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to speak before the prestigious Valdai Forum, a first for a Philippine president. Duterte will be among the five leaders that will talk about world order from the perspective of eastern countries. “The Philippines is in a very, very great position to speak about the eastern perspective in world order because we have very deep ties with the west. Our traditions, our values are heavily dependent on western education, Sorreta said. He expressed optimism that Duterte’s visit would pave the way for the signing of bilateral labor agreements that will ease the restrictions on Filipino workers. “If that will be signed, those who want to work here can possibly acquire a legal status. But legalization and amnesty is another matter and we also push for that, Sorreta said. He said there will be agreements on economics, political cooperation, defense and security, health, culture and education. There will also be agreements that will create demand for the country’s agricultural products. Sorreta cited need to strengthen ties with Russia since it is a ‘‘major player in almost all forms of energy. moment the 140-meter long single-arch bridge came crashing down in Nanfangao, on Taiwan’s east coast early on Tuesday morning. In the video, a vertical cable at the center of the bridge’s steel arch suddenly snaps. The road then collapses into the water, crashing down on three fishing boats as a petrol tanker which nearly made it across also plunged into the water. Fourteen people were injured, including six Filipino and three Indonesian fishing workers, the Taiwanese driver of the petrol tanker, and two coastguard personnel. With AFP
News I deserve to be chief justice —Peralta SUPREME Court Associate Justice Diosdado Peralta said on Wednesday that he has the experience and capability to lead the judiciary when Chief Justice Lucas Bersamin retires on Oct. 18. “If I remember what I have experienced since I started working, mahirap eh. I think I deserve to be chief justice because I worked very hard all these years,” Peralta told members of the Judicial and Bar Council conducting public interview on four magistrates aspiring for chief justice post to be vacated by Bersamin who will reach his mandatory retirement age of 70 two weeks from now. “I’m not a topnotcher, I’m not an honor student, because that’s what they say hindi naman daw ako topnotcher, hindi naman ako honor . . . But I think, I was able to compensate with the work that I had as a public prosecutor, as a judge, as an associate justice of the Sandiganbayan, as a presiding justice, associate justice of the Supreme Court, as a lecturer and chairman of several committees, I think they are more than enough to compensate with what they say that I do not deserve [to become chief justice],” said an emotional Peralta. Appointed as magistrate to the SC in 2009, Peralta is the most senior candidate during his third attempt for the chief’s post in a year. Also vying for chief justice post are Associate Justices Estela Perlas Bernabe, Andres Reyes Jr. and Jose Reyes, Jr. Rey E. Requejo
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THURSDAY, OCTOBER 3, 2019 mst.daydesk@gmail.com
CJ leads national summit on Dangerous Drugs Law By Rey E. Requejo
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HIEF Justice Lucas P. Bersamin will lead today the holding of the National Summit on Dangerous Drugs Law where representatives of the executive, legislative and judiciary branches of government are expected to review and adopt effective policies and procedures towards critical adjustments and reforms in the handling of drug cases.
Bersamin will keynote the drug summit that will start at 9 a.m. on Thursday at the Manila Hotel. The Chief Jusice earlier said the issue on illegal drugs “has been a perennial problem not only in our country but with other nations as well, and is indeed a global concern.” “Since the enactment of Republic Act No. 9165, or the Comprehensive Dangerous Drugs Act of 2002, drug users and drug traffickers have been very creative in ways to evade authorities,” Bersamin said. In a statement, the Supreme Court said the Manila Hotel summit is the culmination of the pre-summit workshop conducted by the Philippine Judicial Academy in Tagaytay last month.
The pre-summit conference, spearheaded by the SC and PhilJA, tackled various issues on the policies and law enforcement capability in addressing the problem of illegal drugs. In his speech during the pre-summit conference, Bersamin said that “the biggest challenge for us is how to remain relevant and responsive considering the creative ways drug traffickers evade the authorities.” He said the National Summit on Dangerous Drugs Law is aimed at “addressing the issues from various agencies and stakeholders relative to the implementation of Republic Act No 9165, otherwise known as the Comprehensive Dangerous Drugs Act
of 2002.” The top magistrate added that the summit will endeavor “to make recommendations and/or solutions addressing said issues, as well as to validate and approve a unified guidelines for implementation of stakeholders during the summit.” On Thursday’s summit, SC retired Associate Justice Adolfo S. Azcuna, PhilJA chancellor, will deliver the welcome remarks followed by a message from Chairman Catalino S. Cuy of the Dangerous Drugs Board. Aside from Bersamin, Department of Justice Secretary Menardo I. Guevarra will deliver his speech followed by the presentation of the recommendations to be led by Court of Appeals Associate Justice Mario V. Lopez. Rep. Vicente S.E. Veloso III, chairman of the committee on justice of the House of Representatives; Rep. Robert Ace S. Barbers, chairman of the House committee on dangerous drugs; Local Government Undersecretary Ricojudge Janvier M. Echiverri; Police Gen. Emmanuel Luis Licup of the Philippine National Police; and Director General for Operations Gregorio R. Pimentel of the Philippine Drugs Enforcement Agency will also deliver their messages
Bangsamoro rejects plan to create DPWH national office COTABATO CITY—The Bangsamoro Parliament held its ground against a House bloc resolution seeking to establish a national office of the Department of Public Works and Highways in the Moro region. A counter-resolution passed by the Bangsamoro Transition Authority Parliament was overwhelmingly voted by its members to oppose Resolution No. 33, sponsored by a House Bloc of 10 Muslim congressmen, led by Deputy Speaker and Basilan Rep. Mujiv Hataman. Hataman presented the resolution in the House of Representatives, the day before Chief Minister Hadji Murad Ebrahim of the Bangsamoro Autonomous Region in Muslim Mindanao was set to meet with President Rodrigo Duterte in Malacañang on Sept. 17. The meeting, as had been disclosed earlier, delved among others on issues of the continuity of government agencies’ programs and projects in BARMM areas, and the exploration of mineral resources in the region, particularly the Ligawasan Marsh. BARMM Interior Minister Naguib Sinarimbo, Murad’s spokesperson, said the defunct Autonomous Region in Muslim Mindanao in 2002 succeeded in a bid to stop the DPWH national office from setting up a district engineering office in Marawi City in a department order and against the inclusion of its funding in the General Appropriations Act. Nash B. Maulana
Arson... From A1
No one was reported hurt but 600 employees will be affected by the incident, especially this coming holiday season, because the theme park, according to the management, will be closed this coming Christmas until October next year. Aside from arson, the authorities also not discounting the possibility of faulty electrical wiring as the cause of the blaze. Pasay City Fire Marshall Paul Pili said there was an indication that different areas at the complex were set ablaze almost at the same time.
Guy Fawkes... From A1
the comic book and film “V for Vendetta”, have been embraced by multiple protest movements in recent years, particularly Anonymous hactivists and Occupy Wall Street. But until recently they had not made much of an appearance at the huge prodemocracy demonstrations currently battering Hong Kong.
Speaker Gloria Macapagal-Arroyo and Rep. Yedda Romualdez led the turnover of the P13-million bounty for the arrest of killers of Bicol congressman Rodel Batocabe sometime in January 2019. The amount, given to PNP chief Oscar Albayalde, represented the contribution of House members to the P35-million reward that Rep. Alfredo Garbin said was intended for informants.
‘Cash rewards for legit informants, not cops’ THE bounty for information on crime suspects are for informants, not for the police who investigate the crimes and hunt down the suspects, said Ako Bicol Party-list Rep. Alfredo Garbin Jr., who slammed “the long-suspected practice of some police who split up the cash rewards among themselves as some sort of incentive bonus.” “The moment the total of P35 million was turned over to the PNP, the laws on cash rewards, witness protection, custody of funds for public purposes were in play. Nowhere in any of our laws and regulations does it say the informants’ bounty are incentive bonuses for any police officer or any so-called ‘ninja cop’,” Garbin said referring to the P35-million reward for the witnesses that led to the arrest of the murderers of Rep. Rodel Batocabe.
Of the P35-million bounty, P20 million was from the Office of the President, P13 million from the Representatives in the 17th Congress, and P2 million from the Provincial Government of Albay. “So nasaan na yung P35 million? Posible kayang ‘na-ninja’ ito parang yung iniimbestigahan ngayon ng Senado na diumano’y pagkupit ng ilang pulis sa nakukumpiskang droga? These unscrupulous police officers, sometimes called ninja cops, are experts at gaming the system because they fully control the system. Apparently, there are no administrative and cash controls that are beyond the magic of these ninja cops. Congress must unmask these criminals in police uniform,” Garbin said. “That they are even called ‘ninja’ cops
is a verbal assault on the revered role of ninjas in the history of the Japanese people. The real Japanese ninjas were men and women who lived by a code of honor and service. The Filipino ninja cops and other corrupt police are the exact opposite because they are devoid of honor and tarnish public service,” the congressman added. It was not the first time for the police to have custody of rewards for informants. Even before Presidential Decree 1731, it has been the practice of government and some in the private sector to entrust informant rewards to the police. PD 1731 is the prevailing law on informant rewards. In the 16th Congress (HB 3507) and 17th Congress (HB 3532) bills were filed to put in place a “Community Informant Reward Program” to update PD 1731.
“We will look into all angles. At the moment it is too early to classify,” he said. The arson angle cropped up following reports that a suspicious post on Twitter saying “Star City will die” was shown to authorities by Ballerina Lisa MacujaElizalde, wife of Star City owner Fred Elizalde. Pili said they will investigate Ms. Macuja’s claims. Some reports also showed that there were disgruntled employees at the Star City, but the management brushed this aside. Investigators said 80 to 90 percent of the complex was destroyed by the blaze, and that the fire reached the Task Force Bravo alarm status—call to all fire stations to
send their available fire trucks to the site. The roof of the “Snow World” attraction collapsed while Star Theater was also destroyed. “We were preparing the props inside when we noticed something was burning. We ran after seeing others panicking, said Joen Tomas, an employee. District Fire Marshall Supt. Jerry Berte said at least 70 fire trucks from various Bureau of Fire Protection offices in Metro Manila and private fire volunteers responded to the blaze. The fire was declared under control at 7 a.m. The fire incident also became a trending topic on social media with more than 42,000 posts on Twitter as of 12 noon.
In a statement, the Manila Broadcasting Company said “officers are closely coordinating with authorities to determine the cause of the fire. Despite the catastrophe, MBC FM stations Love Radio, Yes the Best, and Easy Rock will continue regular broadcasting operations. DZRH is expected to go back on air within 48 hours or less. Star City, which was hardest hit by the fire, will be closed through the Christmas season. Star City is situated at the reclaimed area of the Cultural Center of the Philippines complex in Pasay City, across the famous CCP Main Theater. It is surrounded by hotels, offices and residential buildings. With MJ Blancaflor
That changed on Tuesday when China celebrated 70 years of Communist Party rule with a massive military parade in Beijing. Protesters in Hong Kong dubbed the celebrations a “Day of Grief”, and took to the streets in huge numbers as battles raged for hours with police. Many online forums encouraged protesters to wear Guy Fawkes masks. The masks first appeared in the early 1980s in the cult-hit comic “V for
Vendetta” by British writer Alan Moore. In his book a masked anarchist takes on an imaginary British fascist government by blowing up the Houses of Parliament— echoing the ultimately unsuccessful actions of the real Fawkes in 1605, who attempted a Catholic rebellion. A 2005 film based on the comic brought Moore’s character mass appeal. One man, protesting on Tuesday while wearing the mask, said he took inspiration from the book’s protagonist as
demonstrators push communist China for full democratic freedoms. “The character of Vendetta is a symbol of anti-totalitarianism around the world. I believe this vivid character would bring international attention and concern,” he told AFP. Later that day, an 18-year-old demonstrator was shot in the chest as he and a group attacked police officers. The incident, which police have said was justified, has sparked more protester fury. AFP
Malampaya operator SPEX bags 4 awards SHELL Philippines Exploration B.V., the operator of Malampaya Deepwater Gas-to-Power project, bagged four awards in the 17th Philippine Quill Awards held recently at the Grand Ballroom of Marriott Hotel in Pasay City. SPEX bagged an Award of Excellence for its momentous Heroes of Malampaya, a company-wide event that honored the hardworking people behind the Malampaya project which provides 40 percent of Luzon’s electricity requirements. The event also served as a celebration for the company’s $10-billion remittance to the Philippine government. Moreover, SPEX also took home three Awards of Merit for projects that showcased the effective usage of communication to engage and make a difference in the lives of Filipinos, especially of those who are living in far-flung communities. These include Shell Access to Energy (A2E) Project; Mindoro Treasures: Teaching Reference for Environment Awareness and Sustainable Use of Resources; and Connecting with Mindoro Communities: An Effective IEC Campaign to support subsea work for the Malampaya Natural Gas Project.
Dismissal of PCG official upheld THE Court of Appeals has sustained the resolution of the Office of the Ombudsman ordering the dismissal from the service of a Philippine Coast Guard official for his alleged involvement in the anomalous use of cash advances in 2014 amounting to P67.5 million. In a decision, CA’s Fifth Division, through Associate Justice Myra Garcia Fernandez, denied the petition for review filed by Mark Franklin Lim II, special service officer of the PCG, seeking the reversal of the decision issued by Deputy Ombudsman for the Military and Other Law Enforcement Offices dated July 19, 2017 which found him guilty of serious dishonesty, grave misconduct and conduct prejudicial to the best interest of the service and ordered his removal from government service. The appellate court held that there was no reversible error on the part of the OMB-MOLEO in holding that petitioner and the other PCG officers failed to comply with the foregoing requirements under RA 9184 or the Government Procurement Reform Act. Rey E. Requejo
MRT 3 passengers offloaded due to power failure MORE than 500 passengers of the Metro Rail Transit Line 3 were offloaded on Wednesday reportedly after a power failure in the rail’s line. In an advisory, the MRT 3 said the power malfunction occurred at 10:17 a.m. from Ayala Station to Taft Avenue Station. At 10:34 a.m., a total of 508 passengers were evacuated and had to walk to the interstation of Magallanes and Ayala (northbound). A minute later, power was restored to the rail line. In a message sent to the media, MRT 3 communications officer Rose Anne dela Cruz said walking over the rails is not dangerous since the trains are powered through overhead catenary cables and not through rails. “According to our engineers, hindi po risky ang pagbabalik ng power supply habang naglalakad sa riles ang mga pasahero dahil ang power ay nasa itaas at hindi naman po sa riles (It is not risky to restore thepower supply while passengers were walking in the rails because the power runs above and not through the rails),” Dela Cruz said. As of 12:15 p.m., Dela Cruz said the rail line resumed normal operation with 13 trains running with a wait time of about 9.5 minutes between trains. Last May 1, the Department of Transportation initiated a comprehensive rehabilitation of the MRT 3 which aims to increase the number of running trains, increase its operating speed, increase passenger capacity from 300,000 to 600,000 daily, and lessen the average wait time between trains from 8 minutes to 3.5 minutes. The P18-billion rehabilitation project was awarded to Sumitomo-MHI-TESP and was tasked to replace all rails along the MRT 3’s 17-kilometer line, overhaul all 72 light rail cars, among other improvements. The MRT 3 said the rehabilitation will take 26 months to complete or finish on July 2021. Meanwhile, MRT 3 officials said Wednesday that senior citizens would continue to enjoy free rides this week in celebration of the Elderly Filipino Week. PNA
A4
Opinion
THURSDAY, OCTOBER 3, 2019
mst.daydesk@gmail.com
Can hazing ever be stopped? HARSH as it is, hazing is here to stay. Despite the enactment of the Anti-Hazing Law, violence related to fraternities and school initiations persist. This is either due to traditions set forth a long time ago, or through the willingness of would-be victims themselves. This was suggested by someone who claims to represent a fraternity. The would-be victims supposedly voluntarily submit themselves to initiations, despite knowing that the rites would include violence.
Unless we have leaders who value life and justice more than fraternal relationships, these violent rituals will never cease. The irony of it is that the act is being supported by no less than someone who is supposed to protect the people—former top cop, now Senator Ronald “Bato” dela Rosa, who insists hazing is what helps transform PMA cadets into warriors. “Just imagine, kung itong mga civilian universities mayroong hazing, mas more ang military academy. Imagine-in ninyo. Tine-train ang mga tao diyan para maging warriors,” Dela Rosa said in reaction to the death of PMA cadet Darwin Dormitorio in the hands of his upperclassmen.
In Laguna, the apparent ignorance of the law appears to be the excuse of members of Tau Gamma Phi in “torturing” neophyte Jonathan Concordia. According to Nestor Reyes who claims to be the spokesman of the fraternity, the Anti-Hazing Law (take note of the word “anti”) is not prohibiting hazing but is only about regulating it. In fact, Reyes said they have reduced the number of paddle hits to 20 hits. Also, he puts the blame on Concordia whom he said, voluntarily submitted himself to the initiation. Of course, the national leadership of the Tau Gamma Phi was quick to refute Reyes. In a statement issued by the fraternity leadership, signed by lawyers Rommel Oliva and Jeremiah Villanueva in their capacity as president and chairman of the board, respectively, and Tau Gamma Phi Founding Fathers Rodolfo Comfesor, Roy Ordinario and Talek Pablo, the fraternity strongly denounced the violent ritual accorded to Concordia. In their statement, the fraternity leaders lamented “there are still several misguided members of the fraternity who simply refused to embrace the “no-contact policy” that the Mother Chapter and the Founders are advocating and propagating. Even as a recently-created Task Force Global Triskelion is in the process of disseminating alternative rituals that conform to the guidelines of the Anti-Hazing Law, there are still some members who refuse to adopt to the changing times, and worse, refuse to comply with the law. That is what some members who still openly espouse the policy of hazing and publicly display posts wielding paddles in social media are—they are law violators and as
Adelle Chua, Editor
EDITORIAL
C
A study in contrast
HINA celebrated the 70th anniversary of the rule of Communist Party this week. As expected, there was a display of both military and civil might. President Xi Jinping, in a glowing speech fit for the occasion, said nothing could stop China’s ascent to greatness.
“No force can shake the status of our great motherland,” Xi said. “No force can obstruct the advance of the Chinese people and the Chinese nation.” To impress upon the Chinese people and all the world that China is, indeed, a force to be reckoned with, there was 80-minute military parade, involving meticulously choreographed formations and a display of a missile that can carry 10 nuclear warheads, capable of striking any location in the United States. Meanwhile, a civilian march showcased economic and technological accomplishments including China’s homegrown C919 jetliner, its Jade Rabbit moon rover, and a Long March space rocket, reported the New York Times. In Hong Kong, however, the pomp and pageantry of the National Day celebrations were overshadowed by
unprecedented violence as a police officer shot an 18-year-old protester on the shoulder. The police commissioner said the cop in question only did the right thing as he was provoked, and that he had issued a verbal warning before shooting. Police brutality has been a grating aspect of the protests— as have the protesters’ attempts to test, and excessively, police tolerance. Elsewhere, images of firebombs and rubber bullets marred the scene, as festivities were ongoing in Beijing. The Hong Kong protests started in June over a law that sought to extradite criminal suspects from Hong Kong and other territories so they could be tried in China. The protesters reject the idea that a fair and transparent trial is at all possible in the mainland. Since then, the movement has escalated from peaceful and orderly demonstrations to violent clashes with
the police. In recent weeks, protesters have stormed government buildings and halted airport operations, among others. The chief executive of Hong Kong, Carrie Lam, has suspended the law but this has not pacified the protesters, who worry about the future of Hong Kong amid China’s perceived tightening grip on the territory. Xi has promised to maintain the one country, two systems policy in Hong Kong. In the end, the sharp contrast between the celebration in the mainland and the violence and uncertainty in Hong Kong only highlights the chasm that exists between what the government wants and what the situation actually is. It is easy to imagine how the ugly specter of protests rained on Xi’s literal parade, and undermine his pronouncements that nothing stands in the way of China’s greatness. Something certainly stands in the way of greatness—and it is that people, when they feel oppressed, unheard and threatened, tend to commit destructive, counterproductive acts that neither serve their purpose nor allow for true cooperation. The violence, whether it is committed by the police or the protesters, is clearly nothing to celebrate.
Turn to A5
Recycling government officials: Part 1,234 POP GOES THE WORLD JENNY ORTUOSTE SO MOCHA Uson has been recycled back into government. Did you expect anything else? I believed it was just a matter of time. The erstwhile performer—the headline and subheads of journalist Alan Robles’ article yesterday in the South China Morning Post describes her as a “queen of fake news” and “model and sex coach” —resigned her position as Communications Assistant Secretary to run for Congress earlier this year under partylist AA-Kasosyo. She lost. President Rodrigo Duterte recently appointed her to government again, this time as Deputy Executive Director of the Overseas Workers Welfare Administration. Critics raised the issue of the oneyear ban against the appointment of failed election candidates. However, Commission on Elections spokesperson James Jimenez says the ban does not apply to party-lists or their nominees. Be that as it may, the fait accompli Duterte pulled off was to reinstall Uson in a lucrative position that wields a certain degree of power and influence. Some sources say Uson’s present position is Salary Grade 29 in the government plantilla, with a monthly pay of about P155,000. Certainly there are perks: within a couple of days of her appointment, she was flying to Russia as part of the President’s entourage. This is not the first time that a person who was let go or left a government position has been quietly “recycled” into another post. Another high-profile example is Nicanor Faeldon, who was embroiled in the “shabu lifter” fiasco as Bureau of Customs commissioner and consequently stepped down.
He was later appointed to the Bureau of Corrections where he promptly became involved in the issue related to the abuse of the Good Conduct Time Allowance law. He was fired last month. Is it possible that Faeldon will pop up again in some other government post? How many times must a person fail so abominably at their duty before Duterte ceases to recycle them?
Uson’s appointment is disappointing, disheartening, frustrating and infuriating. Uson’s service at the Presidential Communications Operations Office was marred by a level of controversy incredible by any standard. She used her personal blog in an official capacity, posted photos and news items later debunked as fake or as misinformation, stridently conveyed ultrapartisan messages instead of striving to link polarized sectors in unity. The straw that broke the camel’s back, in terms of public opinion, were her antics with her friend, so-called comedian Drew Olivar. They posted on social media videos mocking sign language and deaf people, as well as a lewd dance about federalism that analysts later said effectively tanked the issue’s momentum; the push for federalism, then running high, has now been indefinitely shelved. A huge sigh of relief from the general public greeted her resignation from PCOO to run for Congress. It is a measure of how few of her vaunted “five million followers” on social media actually supported her when she incurred a dismal loss in the elections. It seems that only her closeness to and influence over Duterte and others in power enable her to enjoy a Turn to A5
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Achieving oil security By Professor Jun Arima ON SEPT. 14, drone attacks—claimed by Yemen's Houthi rebels—hit the heart of Saudi Arabia's oil production facilities. These attacks took out 5.7 million barrels per day, which is half of Saudi production and 5 percent of global oil production, and sent benchmark oil prices up a fifth to almost $72. The attacks have elevated regional and global tensions, and oil prices remain higher than before. In the short term, Asian countries should not panic—but this is a timely reminder that these economies need to prepare themselves and protect their fuel supplies in case similar attacks, or worse, recur. There is plenty of oil today. The Organization of Petroleum Exporting Countries has surplus capacity of 3.2 million barrels per day, while non-OPEC countries, such as the U.S. and Russia, can also expand their production. President Donald Trump has already authorized the release of the U.S. Strategic Petroleum Reserve.
Former Chief Justice Reynato S. Puno Anita F. Grefal Baldwin R. Felipe Edgar M. Valmorida
Board Member & Chief Legal Adviser Treasury Manager Head—Ad Solutions Circulation Manager
Members of the International Energy Agency own oil stocks of more than 330 days of net imports, and the IEA is considering whether it should activate its emergency response. All of this could mitigate the impact of the supply disruption. At the same time, we should not be complacent. Rather, Asian countries must give a fresh look at their vulnerability to external shocks. According to the energy outlook published by the Economic Research Institute for ASEAN and East Asia, oil demand in Asia will increase 2.5 times between 2016 and 2040. Since regional production will not be able to keep pace with this demand, net oil imports will rapidly increase and most will come from the Middle East. Currently, 68 percent of Saudi's crude oil export goes to the Asia-Pacific region, including 16 percent for Japan, a similar amount to China and 11 percent to India. Even taking into account the prospect of shale oil imports from the U.S., Asia will be particularly vulnerable to supply dis-
ruptions caused by events such as natural disasters, accidents, regional conflicts and terrorist attacks. IEA member countries are obliged to hold at least 90 days' oil stock. Japan in fact has more than 200 days. China and India are building up their strategic oil stocks but the speed of growth in domestic consumption means those stocks will not necessarily last much longer than before. The readiness of ASEAN countries is far from sufficient. They should enhance their emergency response measures by developing early warning systems, oil stockpiling, preparing measures for demand restraint and fuel switching, and establishing regional cooperative arrangements for coping with emergencies. Stockpiling—a lengthy and costly business—is the typical countermeasure to address oil-supply security and resilience. A broader policy should include not only oil-related infrastructure such as refineries and pipelines but also general social infrastructure like roads and ports. Turn to A5
Rolando G. Estabillo Publisher Ramonchito L. Tomeldan Chin Wong/Ray S. Eñano Joyce Pangco Pañares Adelle Chua
Managing Editor Associate Editors News Editor Opinion Editor
Emil P. Jurado
Honor Blanco Cabie Night Editor Jimbo Gulle City Editor Roberto Cabrera Chief Photographer
Chairman Emeritus, Editorial Board
Opinion Hearing on the ninja cops THE Senate hearing on the so-called ninja cops—an issue that has snarled PNP chief PGeneral Oscar Albayalde, who is scheduled to retire in a few weeks—is getting hot and personal. As I write this piece, both Mayor Benjie Magalong and General Albayalde are in the air waves explaining their positions. We have to assume that the name of the PNP chief came out when Mayor Magalong testified in executive session during the first hearing, because Albayalde was the provincial police director of Pampanga when an anti-drug operation was conducted in Mexico, Pampanga on Nov. 29, 2013. This operation went astray. Based on the statements of several witnesses, the reported amount of the drug haul was underreported and a big-named drug lord was apparently allowed to go free after agreeing to cough out P50 million for his release. The operating team led by then-Superintendent Rodney Baluyo reported only 36 kilos instead of 200 as many witnesses said in their statements. From the way now-demoted PMajor Baluyo was answering the questions, it was apparent that he was either lying or hiding something. He was evasive, and had a hard time explaining discrepancies especially on the time when the operation was conducted. The conduct of the operation, as he told it, was also so sloppy that it is hard to believe that he would go to a formal Senate hearing and relate stories whose dots he is finding difficult to connect. What this hearing tells us, the public, is that it is difficult to stop the drug problem. The recycling of confiscated drugs back to the market by dirty cops has happened before and sadly, they are even bigger than this Pampanga case.
The money in drugs is so huge that unless a public official is made of steel, it is easy to fall to the temptation. An officer once told me when I was still in the service: “Sir, I always thought that the money is in jueteng, I was wrong. It is in drugs.” I was also told then that there is a new car, full of money, parked somewhere in the metro area. It is to be given as a bribe to law-enforcement personnel. When a drug lord is arrested, so the story goes, all that has to be done is to give the key of that parked car in exchange for the freedom of the arrested drug lord. The huge bribe money is probably the reason why it is not too often that big drug lords are arrested or sent to jail.
The probe tells us it is really difficult to end the drug problem. The “ninja” cop hearing is still going on and we do not know how it will end. President Duterte, before he left for Russia, said that he would wait until the conclusion of the Senate hearing before DILG Secretary Año initiates an investigation to determine whether further action needs to be taken. As to the Senate hearing which will resume today, a lot will depend on the kind of questions the senators will ask. Certainly, there is a lot of questions that need answers. I hope the public gets to hear them all so that they can make their own conclusion. *** Retired Police Major General and now Baguio City Mayor Benjamin Magalong belongs to the PMA class of 1982. He is from Baguio and he first came to national attention as the PNP officer designated to investigate the aftermath of the now infamous Mamasapano operation in Mindanao on Jan. 25, 2015. Although the investigation did not say
that Aquino was liable, it did conclude that because of the doctrine of command responsibility, he was ultimately responsible. Magalong showed that he was not afraid to face controversy. I first encountered Mayor Magalong in February 1986 during those tumultuous last days of February in Baguio City. He was then the company commander of the constabulary company in Buguias, Benguet. When the Armed Forces was divided on whom to support, he brought his men to Baguio to join the faction of then-PC chief Fidel V. Ramos and then-Defense Secretary Juan Ponce Enrile. As I was also with this group, he joined our group at the cathedral grounds atop Session Road and provided the needed perimeter security. In 1990, when I was designated provincial commander of the province of Benguet, I found him on station as the operations officer of the command. I therefore kept him on as operations officer and we worked together for almost two years including during the earthquake that devastated the City of Baguio in 1990. Because of the 1992 elections, I had to be transferred to Batangas in order to comply with Comelec regulations. As to the class of 1986 of PNP chief PGeneral Oscar Albayalde, I only worked with one of them when I was provincial commander of KalingaApayao. I did not have the pleasure of working with General Albayalde and I only met him once during his last hurrah at the PMA when he was given a testimonial parade last Sept. 28. I was then escorting a couple of friends from the United Kingdom. Since we also watched the parade, I saw that he thoroughly enjoyed the occasion. I therefore understand that the hearing is somehow affecting him because he is about to retire and should retire in glory. Still, he has a strong personality and he is the PNP Chief. Furthermore, he knows that what is important is the organization and ultimately, the truth.
Nigeria’s ‘house of torture’ highlights lack of regulation in Islamic schools cluding being made to beg on the streets, Millions of children in the country go subjected to violence, sleeping in the without any education despite primary worst conditions imaginable and living school nominally being free. HORRIFIC revelations of torture and with terrible sanitation levels." Retired civil servant Yusuf Hassan abuse at a compound billing itself as a runs the Almajiri Foundation in the Koranic reform school in northern NiPlace of human slavery northern city of Kano that has looked to geria have shone a spotlight on Islamic Activists have long pushed the gov- improve the system. institutes unregulated by the authorities. ernment to reform or end the Almajiri He insisted that most schools are not Last week, police in the city of Ka- system, arguing that it fails to provide like the one uncovered in Kaduna and duna raided a building to find hundreds children with the basics of an education. instead blamed so-called "rehabilitation of men and boys—some reportedly aged In June, Nigeria's presidency said that centers" where families send relatives as young as five—held in atrocious con- it wanted ultimately to ban the schools— considered delinquent or drug addicts. ditions at a facility proprietors described but insisted it would not be doing so any"Some parents who have children that as a religious school and rehabilitation time soon for fear of creating "panic or a are difficult to manage at home take them center. backlash." to such rehabilitation centers," he said. Inmates were discovered chained to Now calls for change look likely to "Some of the centers end up chaining metal railings and with their hands and grow in the wake of the latest scandal. the kids because they know they will run feet shackled together. Some bore scars In a statement on the case the office away." from alleged beatings while other re- of President Muhammadu Buhari—himHassan blamed a lack of any govcounted being sexually abused. self a Muslim from northern Nigeria— ernment medical or psychiatric care to "If they caught you if you want to run denounced the facility "as a house of tor- help tackle widespread drug addiction away from this place, they would hang ture and a place of human slavery." in northern Nigeria and said a first step you, they would chain you," one of the "We are glad that Muslim authorities should be to separate rehab centers from victims Abdallah Hamza said. have dismissed the notion of the embar- schools. The shocking revelations made head- rassing and horrifying spectacle as (an) But even some of those who have lines but activists insisted they were Islamic School," the statement said. lived through the brutal treatment meted symptomatic of abuses that have longBut it steered clear of mentioning any out in such institutions have argued they riddled a system beyond official control. move to prohibit the schools and insisted can be a force for good. Private Islamic schools—known lo- that enforcing free compulsory educaMohammed Usman was chained up in cally as Almajiri schools—are wide- tion was a "panacea." one when his family took him there to spread across mainly Muslim northern "To stop unwanted cultural practices get over a drug addiction in his twenties. Nigeria, where poverty levels are high that amount to the abuse of children, "Of course students were flogged and government services often lacking. our religious and traditional authorities when they misbehave which made us to The authorities have estimated that must work with the federal, state and lo- mind our manners and stay in line," Usthere are more than nine million students cal governments to expose and stop all man, now 45 and a high school teacher, enrolled at the institutions. types of abuse that are widely known but told AFP. "The latest example from Kaduna ignored for many years by our commuHe said he was taught about religion, represented the worst of the system and nities," it said. morality and "respect" and eventually very inhumane conditions," Mohammed managed to get clean. Sabo Keana, team lead at the AbujaStay in line "I was there for nine months and when based Almajiri Child Rights Initiative Defenders of the Almajiri system ar- the teachers were satisfied with my reNGO, told AFP. gue that it can offer poor families ser- habilitation I was released and returned "But they are a clear manifestation of vices the Nigerian state woefully fails to home. Ever since, I have never used what a lot of children go through—in- provide. drugs." AFP
By Aminu Abubakar with Max Delany in Lagos
THURSDAY, OCTOBER 3, 2019
Big Business should move into agriculture urban water business. With the infusion of large amounts of money, the Ayala Group’s Manila Water Co. and DMCI group’s Maynilad Co. were able to infuse efficiency—and hence profitability—into Metro MaONE of the most important changes nila’s water industry. The second reason why this counthat have taken place in the Philippine economic landscape during the try’s Big Business should get itself last three decades has been the ex- involved in agriculture is its manapansion of the nation’s largest busi- gerial capability. With its access to ness establishments into sectors of the latest technology and, no less the economy with which they his- important, its deployment of sound torically had not been associated. managerial concepts and pracTo wit, these sectors are real estate tices, this country’s conglomerates development, banking and retailing. can raise the level of efficiency of Today the business establishments Filipino farms. They can show that owned by the Sys, the Zobels, the farming is just another business opGokongweis, the Tans and other eration—albeit one that is more vulnerable to the top-tier families vagaries of manage schools weather—and and hospitals, I can think of at least that with the build highways, use of sound generate energy three good reasons. manageand operate farial practices, cilities that profarming can vide high-techbe a consistently profitable activity nology products and services. But there is one sector of the in this country. The third reason why Big Busieconomy that has yet to feel the beness—the Tans and the Gotianuns neficent touch of Big Business. Through all the crises of Philip- and the Angs—should move into pine agriculture, and despite its agriculture is their reputation for chronic underperformance, the big operational discipline. It can probbosses of Philippine business have ably be said that the average Filishown no inclination to finance pino farmer is wanting in operafarms, crops and plants. Agriculture tional discipline, which leads to inefficiency, which in turn leads has had no attraction for them. This situation is very unfortunate. to unprofitability. By operating It has to change because agriculture farms—large farms, to be sure— is the sector of the Philippine econ- this country’s conglomerates can omy that provides the people of this show Filipino farms what it means country with food and fiber. A state to run a farm efficiently. Optimiof affairs in which the businessmen zation of resource use and reducof an agriculture country invest tion of wastage can be infused into their resources in all sectors except the operations of Philippine farms, no matter how small. agriculture makes no sense. The Rice Tariffication Act that There are three reasons why this country’s largest business establish- was recently approved embodies a ments should move into agriculture. provision for the establishment of a The first has to do with financial ca- tariffs-derived P10-billion fund for pability. The second is managerial the financial support of this councapability. The third—and arguably try’s farmers. There is a palpable the most important—reason is op- expectation that with the support that they will be receiving from the erational discipline. The business establishments be- fund, Philippine farms will hencelonging to the groups bearing the forth operate in a financially and names Ayala, Gokongwei, Aboitiz technically stable manner. The exand Metro Pacific can, as a result pectation is weakly founded; the of their size and successful opera- P10-billion fund will of itself not tion, mobilize large magnitudes of be the game-changer for Philippine financial resources. With their own agriculture. I strongly believe that the broadcapital and funds raised from the investing public, they are able to raise scale entry of Big Business can be the large amounts of capital needed the game-changer. Which is why I to launch new enterprises. They do urge this country’s conglomerates to not need legislation to provide the consider doing for agriculture what funds that farms require to be able they have done for other sectors of to operate consistently. A good case the Philippine economy. Get into in point is the entry of Big Business farming. Show the Filipino farmer into the once-notoriously-inefficient how farming should be.
Achieving... From A4
This needs to include institutional and legal frameworks and education, aside from hardware. Developing this framework is a timeconsuming process so governments in ASEAN member countries should start before the next disruption happens. It is also important to utilize or revitalize existing institutional platforms for oil-supply resilience. ASEAN member countries have been working on the ASEAN Petroleum Security Agreement since 1986, but its functionality during an emergency is questionable as thus far it is just on paper and has not been acti-
Recycling... From A4
Can hazing... From A4
such liable to the consequences under the law.” “Let it be recalled that as early as 2014, in the wake of a hazing incident involving another chapter, the UP Tau Gamma Phi already came out with a pronouncement making it clear its stand for the fraternity to strictly abide by the Anti-Hazing Law for those aspiring to join the fraternity. Said pronouncement was fully supported by the three Founding Fathers who affixed their signatures to the Declaration enjoining all members of
the Tau Gamma Phi Fraternity to stop adhering to a violent and unregulated old initiation rites process that has led to senseless death and injury and had brought infamy to our fraternity,” the statement further read. “In line with our ‘No Contact Policy; and the recent unfortunate incident allegedly involving members from the Laguna State Polytechnic University, we, the members of the UP Tau Gamma Phi, strongly denounce and express our condemnation of all kinds of physical harm and violence as a requisite for admission into our fraternity. The Mother Chapter and Founders will not, and can never, support, toler-
ate or condone any activity that runs counter to its 2014 Declaration,” the leaders said. “Let those responsible for this act be accountable for their actions. The Tau Gamma Phi should never serve as a haven for violators of the law,” they said. Well, that’s how a leader should stand, and not condone the acts of others simply because they are fraternal brothers or just because it had been the tradition of their school since time immemorial. And unless we have leaders like these who value life and justice more than their fraternal relationships, these violent rituals will never cease.
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presence in the current administration. Certainly she no longer possesses credibility nor relevance after her vulgar and crude behavior that point to her lack of qualifications to hold third-level government positions. The appointment of Uson to such a significant post in OWWA is an affront and insult to civil servants and persons in the private sector who have wider experience and deeper knowledge, and who would have been more suited to the position. For what do many in government pursue graduate degrees and undergo training courses, as required by the Civil Service Commission, if their capabilities and efforts will in effect
vated to date. In addition, the future of APSA is uncertain after it expires in 2023. It may be realistic to start with an oil-sharing scheme by selected countries that are willing to participate. Asia is the center of gravity for energy demand growth in the future. Its dependence on the Middle East, with its unpredictable geopolitical situation, will only grow. This calls for enhancing Asia's own emergency preparedness. The drone attacks in Saudi should be used as a wake-up call. Professor Arima is senior policy fellow for Energy and Environment at the Economic Research Institute for ASEAN and East Asia.
be discounted by the capricious appointment of mediocre and disruptive personalities to sensitive positions? It’s disappointing, disheartening, and frustrating. Not only that, it is infuriating—nakakagalit. We don’t need so-called celebrities and undeserving personalities in these top positions, but rather people with technical skill and knowhow. In just a few years, the culture of the technocrat in government—that slowly burgeoned during the time of Presidents Fidel Ramos and Gloria Macapagal-Arroyo— has been dismantled by this administration’s penchant for placing in power their allies rather than those who are actually qualified and can do the work. Perhaps Uson has learned from her previous experience and will do better. Certainly for the clients of OWWA and Filipinos in general, we hope so. But I’m not holding my breath.
CYAN MAGENTA YELLOW BLACK Manila
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Republic of the Philippines ENERGY REGULATORY COMMISSION San Miguel Avenue, Pasig City
14. The proposed connection to the Luzon Grid via tap connection along the existing NGCP 69 kV Cabanatuan-Pantabangan Line is more reasonable, economical and beneficial than VSGPC’s other option of connecting directly to SAJELCO substation. The latter requires a longer transmission line route of approximately 0.952 km. It is, thus, costlier to construct as it will take around PhP 4.3M and much financially challenging to manage and operate. A copy of the Transmission Line Project Options is attached hereto to form an integral part herein as Annex “K”;
IN THE MATTER OF THE APPLICATION FOR AUTHORITY TO DEVELOP AND OWN OR OPERATE DEDICATED POINT-TO-POINT LIMITED FACILITIES TO CONNECT VS GRIPAL POWER CORPORATION’S (VSGPC) 6 MW BIOMASS POWER PLANT PROJECT TO THE NATIONAL GRID CORPORATION OF THE PHILIPPINES’ LUZON GRID THROUGH TAP CONNECTION TO THE EXISTING CABANATUAN - PANTABANGAN 69 KV LINE, WITH PRAYER FOR PROVISIONAL AUTHORITY OR INTERIM RELIEF
15. Consequently, a Connection Agreement was entered into between NGCP and VSGPC regarding herein proposed dedicated point-to-point limited facilities. A copy of which is attached and made an integral part hereof as Annex “L”. 16. Upon the completion of the proposed connection assets and commercial operation of 6 MW Biomass Power Plant, VSGPC’s Consultant, MN Electro Industrial Supply & Services, Inc. (MN Electro) shall be responsible for its operation and maintenance in a non-discriminatory manner. MN Electro’s company profile, list of personnel and their technical qualifications to operate the proposed dedicated limited facilities are herewith attached and made integral parts hereof as Annexes “M” and “N”, respectively.
ERC CASE NO. 2019-021 MC VS GRIPAL POWER CORPORATION (VSGPC), Applicant. x------------------------------------------------------------x NOTICE OF PUBLIC HEARING
17. In further support of this Application for approval of the development and ownership or operation of the proposed dedicated point-to-point limited facilities, the following documents are also submitted for the Honorable Commission’s consideration;
TO ALL INTERESTED PARTIES: Notice is hereby given that on 06 September 2019, VS Gripal Power Corporation (VSGPC) filed an Application dated 29 August 2019, seeking the Commission’s approval for authority to develop and own or operate dedicated point-to-point limited facilities to connect VSGPC 6 MW Bio Mass Power Plant Project to the National Grid Corporation of the Philippines (NGCP) Luzon Grid through the tap connection to the existing Cabanatuan-Pantabangan 69 KV line, with prayer for the issuance of provisional authority or interim relief.
ANNEX
“O-1” “O-2” “P” “Q”
Nature of the Application
2.
3.
4.
5.
6.
“R”
VSGPC is a corporation duly created and existing under Philippine laws, with principal office address at Tulat Road, Barangay Calaocan, San Jose City, Nueva Ecija. It may be served with pleadings, notices, orders and other legal processes through the undersigned Firm;
“S” “T”
VSGPC is a corporation engaged in the development and utilization of renewable energy resources such as biomass, solar, wind, hydro, geothermal and ocean energy, including hybrid systems. A copy of the VSGPC’s Certificate of Incorporation, Articles of Incorporation and ByLaws, and Amended General Information Sheet for Year 2018 are herewith attached and made integral parts hereof as Annexes “A”, “B”, and “C”, respectively;
“U” “V”
“W”
As a registered Renewable Energy (RE) Developer, VSGPC was granted by the Department of Energy (DOE) a Biomass Renewable Energy Operating Contract (BREOC) to develop, construct, install, commission and operate a 6 MW Biomass Power Plant situated in Brgy. Calaocan, San Jose City, Nueva Ecija that will generate electrical power from Combustion (Boiler-Steam Turbine-Generator) Technology using rice husk and napier grass. A copy of the RE Developer Certificate of Registration, BREOC and Certificate of Confirmation of Commerciality issued by the DOE are attached hereto to form integral parts hereof as Annexes “D”, “D-1”, and “D-2” respectively;
18. VSGPC reserves the right to submit additional documents as may be required by exigencies or when so ordered by the Honorable Commission. PRAYER FOR THE ISSUANCE OF PROVISIONAL AUTHORITY OR INTERIM RELIEF 19. The foregoing allegations are re-pleaded by reference to substantiate and support herein prayer for the issuance of a provisional authority or interim relief;
Furthermore, VSGPC has secured relevant Department of Environment and Natural Resources (DENR) permits for its project, particularly, the Environmental Compliance Certificate for its 6 MW Biomass Power Plant and a Certificate of Non-Coverage for its Transmission Line, herewith attached and made integral parts hereof as Annexes “E” and “E-1”;
20. Rule 14 of the ERG’s Rules of Practice and Procedure provides that the Honorable Commission may issue a provisional authority or interim relief when the facts and circumstances provided in the application or petition justify the issuance of the same prior to the final determination of the case;
Out of the 6 MW installed capacity, 0.6 MW shall be for own use by the Biomass Energy System, while the excess capacity of 5.4 MW shall be exported to the grid! to be sold under the Feed-in Tariff (FIT) System at a rate of PhP6.5969/kWh2;
21. VSGPC intends that by November 2019, it can qualify and be eligible for the existing degressed Biomass FIT Rate of PhP6.5969/kWh duly approved by Honorable Commissions5;
As of July 2019, the construction status of the 6 MW Biomass Power Plant is around 76.65% while the Interconnection Facilities is at 80.60% completion. VSGPC’s target commissioning of the project is in October 2019 and to be qualified for FIT by November 2019. A copy of the Progress Report for the 6 MW Biomass Power Plant Project, submitted by VSGPC to the DOE based on the latter’s
22. Section 6 of DOE Department Circular No. 2013-05-0009 on the selection of RE projects under FIT System and the award of Certificate for FIT Eligibility provides that: “Section 6. Issuance of Certificate of Endorsement for FIT Eligibility
Criteria for Quantitative Accomplishments of Biomass Projects under FIT System is herewith attached and made an integral part hereof as Annex “F”; 7.
8.
DOCUMENT Document showing that the 6 MW Biomass Power Plant Project is an awarded Biomass Project as of 31 March 2019 Portion of the Transmission Development Plan for 2019-2040 showing inclusion therein of VSGPC’s 6M Biomass Plant Power Development Plan 2016-2040 showing Demand Supply Outlook for Luzon Staking Map of the 6 MW Biomass Power Plant Project Conceptual Engineering Design and Drawings Brief Project Description of the 6 MW Biomass Power Plant Proposed Limited Point-to-Point Transmission Line Facility Gantt Chart/Work Schedule Timeline for the Proposed Dedicated Point-to-Point Limited Facilities Financial Analysis Model for the 6MW Biomass Power Plant which assumed Biomass FIT of PhP6.5969/kWh as energy payment to compute Project Financial Performance, with Project Investment Cost and Projected Cash Flow Key Management Officials of VSG PC Affidavit of Compliance with the Philippine Grid Code and Philippine Distribution Code Secretary’s Certificate attesting to the resolution of VSGPC’s Board of Directors authorizing the development and ownership or operation of the proposed dedicated point-to-point limited facilities; the filing of an application with the Honorable Commission for authority to undertake the same; designating a representative to said application; and engaging the services of Diccion Law Firm therefor
“O”
In its Application, VSGPC alleged among others, the following:
1.
In order to transmit and export capacity to the Luzon Grid, VSGPC shall connect along the Cabanatuan-Pantabangan3 69 kV Line of the National Grid Corporation of the Philippines (NGCP) using a 0.1 km 1-336-4 MCM ACSR line. The tapping point of the proposed project is located approximately 400 meters from San Jose City Electric Cooperative (SAJELCO) 69 kV substation and the power generated from the 6 MW generator unit will be stepped-up from 13.8 kV to 69kV utilizing a 10 MVA transformer;
a.
The RE Developer shall inform the DOE that it has attained the Electromechanical Completion of the project to which the latter shall, within fifteen (15) working days from receipt thereof. conduct a site validation and inspection of the project including the interconnection facility.
b.
Electromechanical Completion is deemed attained if the construction phase is at least eighty percent (80%) completed as may be determined from the RE Developer’s Engineering, Procurement and Construction (EPC) contract or construction and development timeline under the approved Work Plan.
c.
Not later than fifteen (15) working days from the last day of validation, the DOE shall issue the confirmation or denial of the Electromechanical Completion, including the existence of interconnection facility.
d.
In the event the DOE confirms Electromechanical Completion of the project, it shall, within a period of five (5) days from the issuance thereof. nominate the eligibility of the project under the FIT system to the Energy Regulatory Commission (ERC) for the processing of Certificate of Compliance (COC) under FIT System, provided that the interconnection facility is fully in place. The DOE nomination to the ERC shall not be constructed as giving right to the RE Developer to be included in the FIT eligible projects.” (Emphasis supplied.)
Below are Single Line Diagrams (SLD) of the proposed connection: Simplified Single Line Diagram
23. Accordingly, the validation and inspection of the project, as well as the DOE confirmation of the Electromechanical Completion necessarily includes the requirement and existence of an interconnection facility. Thus, the Honorable Commission’s approval of VSGPC’s proposed dedicated pointto-point limited facilities is highly necessary; 24. Since VSGPC intends to be eligible for FIT by November 2019, it must immediately secure authority from this Honorable Commission, even on a provisional or interim basis, to develop and own or operate the proposed dedicated point-to-point facilities, and thereafter finish its construction so it can timely declare Electromechanical Completion pursuant to the aforesaid section; 25. The urgency in seeking the Honorable Commission’s provisional approval is made apparent by the fact that the installation target approved for biomass energy resource is only at 250 MW, which must be subscribed until December 2019 only. Since qualifying for FIT is on a first come, first served basis among projects that are fully commissioned and 100% connected to either the grid or a distribution system, any delay in the approval of VSGPC’s proposed connection facilities means an additional risk for its 6 MW Biomass Power Plant Project to get into the installation target and be entitled to the PhP6.5969/kWh degressed Biomass FIT rate;
Single Line Diagram, with Technical Configuration
26. Pending hearing on the merits and considering urgent necessity, a provisional authority or interim relief to develop and own or operate the proposed dedicated point-to-point limited facilities to connect VSGPC’s 6 MW Biomass Power Plant Project to NGCP’s Luzon Grid through tap connection to the existing Cabanatuan-Pantabangan 69 kV Line is herein prayed for; 27. Likewise, the subject of herein Application is analogous to the Honorable Commission’s approval of electric capital projects as provided in ERC Resolution NO.13, Series of 2006, as amended, to wit: “ARTICLE II APPLICATIONS AND REQUIREMENTS 2.3 Evaluation and Approval xxx Upon filing of the application, the Commission may, on its own or upon motion, grant the issuance of a Provisional Authority (PA) based on the allegations of the application and on such other documents attached thereto or submitted by the parties. The Commission, if necessary, may schedule a hearing for the issuance of a PA not later than thirty (30) days from the filing of the application. Thereafter, the Commission shall issue a ruling either granting or denying the PA stating clearly the reasons therefore, within seventy five (75) days from the filing of the application. xxx “ (Emphasis Supplied) 28. Accordingly, as patently demanded by the foregoing circumstances, a Provisional Authority or Interim Relief for VSGPC to construct and own or operate the proposed dedicated point-to-point limited facilities is imperative for it to get into the 250 MW Installation Target and avail the existing degressed Biomass FIT Rate of PhP6.5969/kWh, thus, ensuring the viability and sustainability of VSGPC’s 6 MW Biomass Power Plant Project under the FIT System.
Copies of the SLDs are also attached as Annex “G” hereof. 9.
The aforesaid proposed dedicated point-to-point limited facilities shall be used solely by VSGPC and only for the purpose of connecting to the NGCP’s Luzon Grid System along the Cabanatuan-Pantabangan 69 kV Line, to dispatch power from its 6 MW Biomass Power Plant Project;
10. The total cost of engineering, procurement, construction, testing and commissioning of the proposed dedicated point-to-point limited facilities is estimated at PhP29M, consisting of the project cost for the transmission line at around PhP2M, and for the substation at about PhP27M. A copy of the Price Schedule for the Engineering, Procurement, Construction (EPC) of 69kV Lines and 10/12.5 MVA Substation are herewith attached and made integral parts hereof as Annexes “H” and “H-1”, respectively.
PRAYER
“A generation company may develop and own or operate dedicated point-to-point limited transmission facilities that are consistent with the Transmission Development Plan: Provided, that such facilities are required only for the purpose of connecting to the transmission system, and are used solely by the generating facility, subject to prior authorization by the ERC: Provided, further, that in the event that such assets are required for competitive purposes, ownership of the same shall be transferred to the TRANSCO at a fair market price: Provided, finally, that in the case of disagreement on the air market price, the ERC shall determine the fair market value of the asset.” 13. According to NGCP’s System Impact Study (SIS) Final Review Report, it is technically feasible to connect the 6 MW Biomass Power Plant Project to the Luzon Grid based on the following favorable assessments: a.
Simulation results show that the Cabanatuan-Masiway4 69 kV Line is sufficient to transmit the full capacity of the proposed 6 MW Biomass Power Plant Project. It is observed that there will be a back flow of power to the grid through Cabanatuan’s 300 MVA 230/69 kV Transformer in year 2019 peak/off-peak load condition and 2024 off-peak load condition. Upon connection of the proposed Biomass project, no overloading was observed in 230 kV and 69 kV transmission lines during normal (intact network) and N-1 contingency condition during peak and off peak loading scenario for years 2019 and 2024;
b.
No voltage problems were identified as a result of connecting the proposed 6 MW Biomass Power Plant Project. The study confirms voltage levels of the monitored substations are within the 0.95 and 1.05 p.u. during normal and N-1 contingency condition;
c.
The increase in fault level in the 230 kV and 69 kV substations associated to the entry of the proposed 6 MW Biomass Power Plant Project was found to be marginal. The three resulting threephase short circuit current remained relatively unchanged upon interconnection of the project;
d.
e.
Other reliefs as may be just and equitable under the premises are, likewise, most respectfully prayed for. The Commission has set the Application for determination of compliance with the jurisdictional requirements, expository presentation, Pre-trial Conference, and presentation of evidence on 22 October 2019 (Tuesday) at two o’clock in the afternoon (2:00 PM) at the ERC Hearing Room, 15th Floor, Pacific Center Building, San Miguel Avenue, Pasig City. All persons who have an interest in the subject matter of the instant case may become a party by filing with the Commission a verified Petition to Intervene at least five (5) days prior to the initial hearing and subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure, indicating therein the docket number and title of the case and stating the following:
A copy of the NGCP’s SIS Final Review Report is herewith attached as Annex “J”, while NGCP’s Review of the Facilities Study finding the facilities for the interconnection of the 6 MW
The petitioner’s name and address;
2)
The nature of petitioner’s interest in the subject matter of the proceeding and the way and manner in which such interest is affected by the issues involved in the proceeding; and
3) A statement of the relief desired. All other persons who may want their views known to the Commission with respect to the subject matter of the case may file their Opposition or Comment thereon at any stage of the proceeding before Applicant rests its case, subject to the requirements under Rule 9 of the 2006 Rules of Practice and Procedure. No particular form of Opposition or Comment is required, but the document, letter, or writing should contain the following: The name and address of such person;
2)
A concise statement of the Opposition or Comment; and
3)
The grounds relied upon.
All such persons who wish to have a copy of the Application may request from Applicant that it be furnished with the same, prior to the date of the initial hearing. Applicant is hereby directed to furnish all those making such request with copies of the Application and its attachments, subject to the reimbursement of reasonable photocopying costs. Any such person may likewise examine the Application and other pertinent records filed with the Commission during the standard office hours. WITNESS, the Honorable Commissioners ALEXIS M. LUMBATAN, CATHERINE P. MACEDA and PAUL M. CERVANTES Energy Regulatory Commission, this 18th day of September 2019 in Pasig City.
With the connection of the 6 MW Biomass Power Plant Project, transient stability study connected showed that there will be no stability problem identified from three-phase faults during normal and delayed fault clearance time for years 2019 and 20124 peak load condition; The results of frequency assessment show that the loss of the 6 MW Biomass Power Plant Project while supplying full capacity to the grid will not cause the frequency of the system to drop below 59.2 Hz which will trigger Automatic Load Dropping (ALD) to maintain acceptable system frequency.
1)
1)
JOSEFINA PATRICIA A. MAGPALE-ASIRIT Oversight Commissioner for Legal
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A6 THURSDAY, OCTOBER 3, 2019 mst.daydesk@gmail.com
Domagoso launches sex education By Macon Ramos-Araneta
“G
O slow, don’t be hasty,” Manila Mayor Francisco “Isko” Domagoso told students during the launch of the program to avert teen pregnancies, which have reached an alarming level in the country. The launching of Comprehensive Sexuality Education lectures in all public schools, a first in the nation’s history, was held at Araullo High School in Ermita, Manila. The launch was a project of the Manila Health DepartmentFamily Planning group led by its chief Dr. Criselda Coroza, Marivic Bagallon, Sandy Araneta, and Imelda de Vera. In his speech, Domagoso exhorted the students to “learn to discern” because not everything they watch on social media, particularly in videos, are right. Referring to teenage relationships, he noted that the youth should learn to discern to minimize committing mistakes in their lives. While the feeling is blissful in having a “crush, boyfriend or girlfriend or a ‘loved one,’” Domagoso noted that any relationship should be coupled with reponsibilities. “Lalo na iyong mga babae na lalaki ang tiyan. Babae ang kawawa kapag nakakuha ng lalaking tolongges [Especially for girls whose
See Annex “D-2” hereof pertaining to the Certificate of Confirmation of Commerciality issued by the DOE; Prevailing Biomass FIT per Order dated 23 November 2018 in ERC Case No. 2018-007 RM; Also referred as Cabanatuan-Masiway in NGCP’s System Impact Study (SIS) Final Review Report and NGCP’s Review of the Facilities Study for the 6 MW Biomass Power Plant and Cabanatuan-Fatima in Connection Agreement. Also referred as Cabanatuan-Pantabangan in this Application. Order dated 23 November 2018 in the ERC Case No. 2018-007 RM MS-OCT. 3, 2019)
bellies will grow with a pregnancy. Pity the girl who gets a guy who’s a fool],” Domagoso said. The 2013 National Demographic and Health Survey showed that one in 10 young Filipino women aged 15 to 19 has begun childbearing. Eight percent are already mothers and another 2 percent are pregnant with their first child. Because of this, Domagoso took the lead in the school-based health information dissemination on fertility awareness and sexually transmitted infections. While the CSE is embodied under the Responsible Parenthood and Reproductive Health Law, Domagoso said this has not been taught to high school students. “This would be the first time in the country that this will be regularly taught to our high school students as part of the curriculum. So we will take the lead,” noted Domagoso. The mayor said the lessons will be integrated in the school curriculum, which has been approved by the Department of Education.
Solon wants fewer Filipinos By Maricel V. Cruz WHILE nearby countries that implemented successful birth control programs are now asking their citizens to produce more babies, a congressman is seeking the intensified implementation of the Reproductive Health Law. Albay Rep. Edcel Lagman, citing the United Nations Children’s Fund report showing a significant reduction in maternal and infant mortality in the Philippines, said the reduction is “partly attributable to the passage and implementation of the Reproductive Health Act since December 2012.” China, that used to allow only one child per couple, now encourages families two children while Singapore has junked its two-child policy after both suffered a continuous and what is feared to be irreversible population imbalance. In China, the birth rate fell from 37 per thousand to 20 per thousand after the government instituted the one-child policy. In addition improved health case resulted in a decline in infant mortality from 227 per thousand births in 1949 to 53 per thousand in 1981. Singapore had a similar experience and is now encouraging couples to have “three if you can afford it.” Lagman said the UNICEF-led United Nations Inter-Agency Group for Child Mortality Estimation Report showed that infant mortality in the country decreased by almost half in 2018 or 40 infant deaths per 1,000 live births in 1990 to 22 deaths in 2018.
‘Sex trafficking’ hub closed By Joel E. Zurbano
WHEREFORE, in view of all the foregoing, it is most respectfully prayed of this Honorable Commission that prior to and/or pending hearing on the merits, a PROVISIONAL AUTHORITY or INTERIM RELIEF be issued to immediately allow the development and ownership or operation of the proposed dedicated point-topoint limited facilities to connect VSGPC’s 6 MW Biomass Power Plant Project to NGCP’s Luzon Grid through tap connection to the existing Cabanatuan-Pantabangan 69 kV line, and that after due notice and hearing, a FINAL AUTHORITY be issued to permanently authorize the same.
11. VSGPC shall fund the construction of the proposed interconnection facilities. It is financially capable to support its 6 MW Biomass Power Plant Project as shown in its Annual Income Tax Return with Audited Financial Statements as of December 2018,a copy of which is herewith attached to form an integral part hereof as Annex “I”; 12. The instant Application is hereby filed to seek the Honorable Commission’s authorization to develop and own or operate the proposed dedicated pointto-point limited transmission facilities pursuant to Section 9 (f) of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA), which states that:
News
Biomass Power Plant to be in accordance with the results of the SIS conducted by NGCP, is hereto attached and an made integral part hereof as Annex “J-1”;
ANOTHER night hub in Barangay San Antonio in Makati City has been shut down on charges of sex trafficking. Mayor Abigail Binay ordered the closure of Skytop International Club at the corner of Talisay and Yakal Streets following a raid by the agents of the National Bureau of Investigation Monday night. On orders of Binay, a team from the city’s Business Permits and Licensing Office served on Tuesday a closure order on the business establishment for violating Republic Act 10364 or the Expanded AntiTrafficking in Persons Act of 2012. City chief information officer Romulo Salgado Jr. said NBI agents raided the establishment
after receiving a report that it was being used as a prostitution front. He added the authorities rescued several Chinese women and some four Filipino women during the raid, and arrested eight individuals, including four Chinese men, for trafficking. Customers of the bar reportedly select from a lineup of women, including foreigners, who were allegedly being paid for at least P15,000 each. Salgado said since January, the city government had closed down 123 errant establishments for violations that include operating without a valid business permit and noncompliance with the National Building Code, Sanitation Code, and other relevant laws and ordinances.
Court drops Yanson 4 petition A BACOLOD City Regional Trial Court has junked a petition filed by the Yanson 4 against their youngest sibling and long-time president Leo Rey Yanson (LRY) of the country’s biggest bus company for forum shopping. “Wherefore, the instant Petition for Injunction filed by plaintiffs, Roy V. Yanson (RVY), Emily V. Yanson, Ma. Lourdes Celina YansonLopez and Ricardo V. Yanson Jr. against defendant Leo Rey V. Yanson is hereby DISMISSED for lack of merit,” the court decision read. Branch 45 Judge Phoebe Gargantiel-Balbin, in a five-page Sept. 24 resolution, said “the rule is clear that forum shopping is a ground for dismissal of a case.” Last Aug. 15, the Yanson 4 filed the instant petition for injunction against LRY to invalidate his call of a special stockholders’ meeting on Aug. 19. But Gargantiel-Balbin said the plaintiffs’ filing of the instant petition “squarely falls under the definition of Forum Shopping, which exists when, as a result of an adverse judgment in one forum, a party seeks another and possibly favorable judgment in another forum rather than appeal or special civil action for certiorari.” CYAN MAGENTA YELLOW BLACK
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THURSDAY, OCTOBER 3, 2019 sports_mstandard@yahoo.com
EJ’s unfinished SEAG business
Del Rosario 5 shots off pace with 72 MIAOLI County, Taiwan—Pauline del Rosario recovered late to salvage a 72 and trail a hot-finishing Hsiao-Ling Wu by five even as the rest of the Pinay bidders struggled in the first round of the Party Ladies Golfers Open at the National Golf and Country Club here yesterday. Chasing her second LPGA Tour of Taiwan (TLPGA) crown in three years, del Rosario failed to get going tackling the up-and-down layout for the first time, bogeying Nos. 4 and 14 while flubbing a couple of birdie chances. But she finally found her rhythm and touch at the finish, birdying the last two to save a 37-35 for joint 15th in the $100,000 championship co-sanctioned by Pilipinas Golf Tournaments, Inc. for the second straight year. Daniella Uy, who ended up tied at 45th here in the first Ladies PGT event held overseas last year, rebounded from a double-bogey miscue on No. 6 with back-to-back birdies from No. 12. But the former Junior World titlist wavered at the finish, dropping strokes on two of the last three holes to settle for a 74. Cyna Rodriguez, out to improve on her 39th place effort last year, also failed to bounce back from a 39 start and turned in a 76 while rookie pro Chanelle Avaricio blew an early one-under par card with two bogeys at the front and failed to break a bogey-birdie-bogeybirdie run at the back with three bogeys in the last four to drop to joint 55th with Rodriguez six others. Marvi Monsalve shot herself in the foot with an 80 and in danger of missing the 50-plus ties cut of the closing leg of the seventh season of the country’s premier ladies circuit sponsored by ICTSI. Wu, who ranked down at 45th in the current TLPGA Order of Merit, opened her bid with two birdies at the back and bucked a bogey on No. 2 with four birdies, including three in the last four to grab the first day honors in the fifth TLPGA and LPGT-sanctioned tournament this year.
Trips to Boracay, Palawan staked for hole-in-one THE organizing Tagaytay Highlands Ladies Chapter spices up the hunt for prizes in the 14th Highlands Ladies Cup unfolding this Saturday (Oct. 5) at Tagaytay Midlands Golf Club with three-day/two-night packages for two in Palawan and Boracay added to a fournight Asian cruise for hole-in-one feats. Baron Travel is putting up the Coron package, inclusive of breakfast and round-trip transfers, for an ace on No. 3 while the Boracay trip, courtesy of Regent Travel, is up for grabs on No. 5. A Wenger wristwatch is also staked as hole-in-one prize on No. 12. The Royal Caribbean/Baron Travel has earlier put up the Singapore-Port Klang-Phuket-Singapore package for ace on No. 17. If nobody scores a holein-one, all prizes will be raffled off. Over 150 players are vying in the annual 18-hole tournament, backed by DIA BAM, Inc., W Group and Pacific Online as Diamond sponsors and Auto Nation Group, ComWorks-Martin Leyeza, San Miguel Corp., Security Bank, Smart Communications, Powerball Gaming and Royal Caribbean Int’l. as Platinum backers, which will have a shotgun start and will be played under the System 36 scoring format. For details, call Midlands Golf Services at 0917-886-5226 (members) and Analaine Blas at 0966-713-5199 (non-members).
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ORLD-CLASS Filipino pole vaulter Ernest John Obiena may have been winning a couple of prestigious tournaments in Europe the past two months, but there is still an unfinished business that needs to be done back in Southeast Asia. Obiena was the pole-vault favorite for the gold in the 2017 Kuala Lumpur SEA Games, but he sustained an ACL injury during practice a day before he was to leave for Malaysia. A seven-month rehabilitation period, followed by an intense training in Formia, Italy under Vitaly Petrov, who was a coach of pole vault legend Sergei Bubka, had Obiena bouncing back from his horrendous injury. Obiena’s training was ensured through financial support from the Philippine Sports Commission (PSC). “We are monitoring EJ’s (Obiena) progress,” PSC Chairman William Ramirez said. “Athletics, being a centerpiece event of the SEA Games, was infused with government support as is usual in the international events our athletes take part in.” “And lately, EJ has proved himself more in his desire to chase his SEA Games dream. We, in the PSC, are with him. Let us support EJ and the other Filipino athletes,” Ramirez added. The proofs were his performances in the Golden Spike of Ostrava and the International Stabboc Spring Meeting in Germany, where his respective leaps of 5.45 and 5.51 in the said tournaments, erased the 5.35 meters, set by Porranot Purshong of Thailand in the KL meet. This also effectively installed him as one of the favorites coming into the 2018 Jakarta-Palembang Asian Games. But Obiena netted a mere 5.30 meters for 7th place in the Asiad, and was even upstaged by his Southeast Asian rival, Thailand’s Patsapong Amsamang, whose 5.5 meters was good enough for the bronze. A year later, Obiena has put that Asiad debacle behind as he cracked the world’s Top 10 Pole Vault rankings on the strength of his victories in the 2019 Summer Universiade in Napoli, Italy, where he leapt for 5.76 meters, followed by another gold-medal feat (5.81meters) in the Men’s Pole Vault competition of the Salto Con L’asta in Piazza Chiari 2019 in Italy. The Chiari feat made him the first Filipino athlete to qualify for the 2020 Tokyo Olympic Games.
PH to receive SEAG flame from Malaysia
EJ Obiena
Mediamen join Plaridel golf THE 5th Plaridel Cup golf tournament of the Association of Philippine Journalists—Samahang Plaridel tees off tomorrow, October 4, Friday at the Aguinaldo Golf Club in Quezon City, with Rep. Robert Ace Barbers (2nd Dist. Surigao del Norte) leading the ceremonial tee-off. Also invited to the ceremonial teeoff is Rep. Juan Fidel Felipe Nograles (2nd Dist. Rizal). Tee-off time is 7 a.m. Media golfers and their friends— thus the two divisions: media and guests—will be vying for bragging rights and tournament prizes as well as exciting giveaways and raffle prizes. The Plaridel Golf Cup is the annual sporting event of Samahang Plaridel, the professional group of veteran journalists, publishers, editors-in-chief and communicators. This year’s sponsors include San Miguel Corporation, First Orient Inter-
national Ventures Corporation, Cebu Pacific Air, Sogo Hotel, Ayala Land, Steel Asia, Globe, PAGCOR, Reyes Haircutters, ABS-CBN, Doña Maria, Manila Water, City of Dreams, Senator Cynthia Villar, Asia Brewery and AB Heineken Philippines. The 18-hole tournament seeks to foster camaraderie among media golfers while raising funds for Samahang Plaridel’s projects. Golfers from this year’s sponsors are welcome to join the tournament. The association is led by Chairman Crispulo “Jun” Icban (publisher-Manila Bulletin) and President Rolando G. Estabillo (publisher-Manila Standard). Registration is still ongoing. Interested golfers may contact Samahang Plaridel through Ms. Nelly Lumbaca at mobile no. 0920-9286498 or email her at apjsamahangplaridel@gmail.com.
Red-hot Lascuña grabs 3-shot lead
Tony Lascuna is back at the familiar spot with a scorching 65.
DAVAO—Tony Lascuña kept his fiery form year title spell for one of the country’s multi-titled coming off a big Philippine Golf Tour Asia players. victory in Taiwan, sizzling with a seven-under “I played relatively good, everything’s in place,” 65 to open a huge three-stroke lead over sur- said Lascuña, now on track to ending a two-year title prise challenger Gerald Rosales at the start of spell on the PGT. “I just hope to sustain my form in the ICTSI Apo Challenge at the Apo Golf and the next three days.” Country Club here yesterday. Rosales, a former winner of the all-local Lascuña actually fumbled with a bogey on the par- Philippine Open at Riviera in 2000, earlier found 3 11th when he kicked off his campaign at the back- himself a bewildered clubhouse leader with a side of the quaint layout where he grew Manila up, worked 68, highlighted by five birdies in the last seven Standard as a caddie and honed his skills. But after shaking TODAY holes at the front, until Lascuna came in with his off his early struggle, there was no stopping one of scorching round. the best players to have come out of the country’s Despite his strong rally, DEED OF EXTRAJUDICIAL spawning ground of golf talents. Rosales rued his day-long SETTLEMENT OF ESTATE WITH WAIVER OF RIGHTS He birdied the par-5 13th from six feet, closed struggle on Apo’s last line out his backside stint with three straight birdies, of defense but remained Notice is hereby given to the public that an Extra-Judicial Settlement has stretched his birdie-binge to four with another feat hopeful of finally snapping been executed by the heirs of the late CONIGUNDA ANIÑON NICOLAS, on the first hole, birdied the third next and holed with a long, long drought on the namely: William A. Nicolas married to Ludilieta D. Nicolas,; Antonio A. back-to-back birdies in hot conditions. circuit organized by PilipiNicolas married to Remedios Z. Nicolas, Nenita A. Nicolas married With a 32-33 start, the 48-year-old shotmaker took nas Golf Tournaments Inc. to Nestor Ramos, Rico A. Nicolas married to Lourdes Nicolas, and Aida control of the 78-player starting field which came “I three-putted the first A. Nicolas married to Rafael Gumatay, into the P3 million event put up by ICTSI upbeat of hole and missed putts from all of legal age, over personal and real properties, per deed executed on 02 their respective chances and ready to stop whatever close range on Nos. 12 September 2019 before Notary Public Atty. Mary Jean R. Bernabe-Tongco momentum Lascuña had gained from his triumphant and 15,” said the former Doc. No. 293; Page No. 60; Book No. 159; Series of 2019. campaign abroad last Sunday that snapped a two- amateur hotshot. (MS-SEPT. 19, 26 & OCT. 3, 2019)
Experts to sports enthusiasts: Pre-screen first By Paul David L. Gelario THREE medical experts advised Filipino sports enthusiasts to consider pre-screening as a preventive measure before engaging in sports at a press briefing held at Pearl Manila Hotel, in Ermita recently. “Pre-screening sana before you go into any athletic services or exercises,” said Rehabilitation Medicine, Dr. Betty Dy-Mancao. For beginners who will engage in a sport for the first time, it is a advised to seek a cardiologist, orthopedic surgeon, and a rehab doctor to examine their overall physical condition. “If you are going to engage in a new activity that you haven’t
KUALA LUMPUR—The Philippines will formally receive the South East Asian Games flame from 2017 host Malaysia in a handover ceremony that will kick off the country’s hosting preparations into high gear. Philippine Olympic Committee board member Cynthia Carrion is scheduled to accept the flame from Malaysia Olympic Committee president Norza Zakaria on Thursday in a ceremonial lighting of the lantern set at the world-renowned Bukit Jalil National Stadium in the Malaysian capital. Philippine South East Asian Games Organizing Committee Chief Operating Officer Ramon Suzara and Commissioner Celia Kiram of the Philippine Sports Commission will grace the event which signals the countdown to the opening of the 11-nation meet on Nov. 30 at the Philippine Arena in Marilao, Bulacan. The PHISGOC ceremonies and cultural events department is organizing the ceremony as part of a series of events highlighting the symbolism of the SEA Games torch and flame. “The flame handover is an important symbolic ceremony showing the turnover of responsibilities from past host to present,” said Phisgoc ceremonies director Mike Aguilar. Malaysian hosting mascot Rimau will likewise meet Pami, the official mascot of the 30th South East Asian Games, during the ceremony. Filipino boxer Ian Clark Bautista and taekwondo jin Pauline Lopez also joined the Philippine delagation that arrived from Manila, including Capas, Tarlac Mayor Reynaldo Catacutan. New Clark City, the hub of the Games, is located in Capas, Tarlac. From Kuala Lumpur, the lantern will be brought to the Philippines, kicking off the torch run activities to be held in various parts of the country, namely in Davao City, Cebu City and Clark. It will also be brought to the Senate, House of Representatives and Malacañang. The official torch for the 30th SEA Games portray the national symbols of the Philippines.
done before, it is a must that you see a cardiologist, an orthopedic surgeon, or a rehab doctor to assess you,” Sports Cardiologist of ManilaMed Sports and Exercise Medicine Center, Dr. Lucky Cuenza said. These pre-screening procedures will safeguard those with life-threatening pre-existing heart conditions or those with previous injuries. “It is important for us to maximize performance of each individual athlete, while at the same time ensuring safety by systematically evaluating for potentially cardiac disease that may lead to sudden cardiac death in the athlete,” Cuenza said.
Orthopedic Surgeon Dr. Philip Aristotle Hermida (left), Sports Cardiologist of ManilaMed Sports and Exercise Medicine Center, Dr. Lucky Cuenza (center) and Rehabilitation Medicine, Dr. Betty Dy-Mancao Paul Gelario
Cuenza admitted that the Filipinos’ sports pride widely known as ‘puso’ is admirable, but sometimes dangerous as Filipinos dive in head first in sports activities.
“We are sports-loving Filipinos, we have a sports-loving culture. But puro puso lang tayo, dere-deretso lang tayo and we suffer the consequences afterwards,” Cuenza said.
NOTICE OF DECREASE OF AUTHORIZED CAPITAL STOCK Notice is hereby given that in a Joint Special Meeting of all the stockholders and members of the Board of Directors of SCHWEITZERMAUDUIT RTL PHILIPPPINES INC. (the “Corporation”) held on 17 September 2019, it was unanimously resolved by the Board of Directors and ratified by at least two-third of the stockholders of the Corporation that the Corporation’s authorized capital stock will be decreased from Three Hundred Fifty-Three Million Six Hundred Nineteen Thousand Three Hundred Forty-Four Pesos (PhP353,619,344.00), divided into Three Hundred Fifty-Three Million Six Hundred Nineteen Thousand Three Hundred Forty-Four (353,619,344) common shares with a par value of One Peso (PhP1.00) per share, to Two Hundred Forty-Two Million Three Hundred Two Thousand Four Hundred Eighty-Eight Pesos (PhP242,302,488.00), divided into Two Hundred Forty-Two Million Three Hundred Two Thousand Four Hundred Eighty-Eight (242,302,488) common shares with a par value of One Peso (PhP1.00) per share. The purpose of which is todecrease the authorized capital stock and to retire the treasury shares held by the Corporation. Hence, an application for decrease of the Corporation’s authorized capital stock will be submitted to the Securities and Exchange Commission for approval. All persons having a claim against the Corporation are requested to submit the same to Rowel Tijam at Block 7, Lot 1, Millennium Drive, Light Industry and Science Park III, Barangay San Rafael, Sto. Tomas, Batangas, Philippines This announcement will serve as notice to all concerned of the decrease of the capital stock of the Corporation. (MS-OCT. 3, 2019)
Sports
Riera U. Mallari, Editor; Reuel Vidal, Assistant Editor sports@manilastandard.net sports_mstandard@yahoo.com
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THURSDAY, OCTOBER 3, 2019
UST ladies sweep UAAP beach volley eliminations WOMEN’S titleholder University of Santo Tomas remains on course for another championship after sweeping the elimination round of the UAAP Season 82 Beach Volleyball tournament Wednesday at Sands SM By The Bay. The Tigresses’ Babylove Barbon and Gen Eslapor made short work of De La Salle’s Tin Tiamzon and Justine Jazareno, 21-16, 21-18, to secure the No. 1 ranking in the Final Four with a perfect 7-0 record. The Lady Spikers ended the eliminations with a 6-1 mark in second place and will hold the twice-to-beat semis incentive like the Tigresses. UST is eyeing its fourth consecutive crown and the first in post-Sisi Rondina era. Sheena Gallentes and Sheila Mae Kiseo of Far Eastern University, with the No. 3 ranking in the Final Four already in the bag, still topped University of the East’s Juliet Catindig and alternate Donna Mae Nebrea, 21-13, 21-19, for its fifth victory in seven matches. Ateneo’s Ponggay Gaston and Roma Mae Doromal shut the door on Adamson University’s Kring Uy and Chen Ave, 21-17, 21-19, to clinch its first women’s beach volleyball Final Four appearance since 2016 after posting a 4-3 card. University of the Philippines’ Rosie Rosier and Euri Eslapor overpowered National University’s Andrea Abian and Chlea dela Fuente, 21-6, 21-3, for a 3-4 mark. The Lady Maroons, third placers the last two seasons, were eliminated after the Lady Eagles defeated the Lady Falcons to avoid playoff complications.
Santillan chases Olympic dream By Peter Atencio
University of Santo Tomas beach volleyball player Babylove Barbon dives into the sand while trying to recover the ball during the UAAP Season 82 Beach Volleyball tournament Wednesday at Sands SM By The Bay.
Third quarter storm powers Columbian past NorthPort By Jeric Lopez
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OLUMBIAN DYIP opened the second half with both barrels blazing to unleash a third quarter storm and wallop the NorthPort Batang Pier, 114-108, and get back on winning track in the 2019 Philippine Basketball Association Governors’ Cup at the Smart Araneta Coliseum Wednesday night. The one-two punch of CJ Perez and Khapri Alston stood the tallest as their joint exploits carried the fight for the Dyip. Both had solid double-double nights with Perez unloading a game-high 26 points and 11 rebounds while Alston muscled his way to a 25-point and 17-rebound performance. Columbian improved to 2-1 to move in the upper echelon while NorthPort dropped to 1-2 after losing its second straight game. Trailing by eight at the half, the Dyip
stepped on the gas pedal come the third period, exploding for 38 points to turn the tide in its favor. It outscored the Batang Pier by 13 points in the third to take the driver’s seat heading into the final 12 minutes of play ahead by five, 90-85, after trailing for almost the entire first half. From there, Columbian hiked their advantage to nine points several times in the fourth and kept NorthPort at bay to eventually secure the win. Rashawn McCarthy added 18 markers for Columbian.
The Batang Pier stayed within striking distance but was unable to pull together a solid run to threaten, despite closing the gap late in the game. Robert Bolick led the way for NorthPort’s losing cause with a team-high 23 points, 10 assists and seven boards for a near triple-double. Hot starts from Bolick and Garvo Lanete, who combined for 17 of NorthPort’s first 23 points, enabled the Batang Pier to open up an early 12-point cushion, 23-11, with less than four minutes remaining in the opening period. The Batang Pier continued on to carry a 60-52 advantage at the turn. However, it was all Columbian in the second half as it gained steam and never surrendered the lead after taking it in the third. As of this report, TNT KaTropa (2-0) is eyeing a share of the lead as it battles the Phoenix Pulse Fuelmasters (1-1).
FORMER La Salle Green Archer Santi Santillan has joined Alvin Pasaol in his dreams of possibly playing in the 2020 Tokyo Olympics. Santillan will set aside plans to join the Philippine Basketball Association draft in favor of a bigger dream. The 6-foot-five Santillan has declared his intention to remain with Chooks-to-Go Pilipinas 3x3 in the second season of the league, Tuesday evening. The 23-year old slotman is seen as among the top five picks in the coming 2019 PBA Draft. But he has withdrawn his name from the list of rookies. “Yung mga taong nasa paligid ko, yung family ko sinabihan ko na may offer galing sa Chooks. Pumayag naman sila pati mama ko na hindi muna ko magpradraft,” said Santillan in a statement. Earlier, Pasaol decided to forego his final year with the University of the East Warriors and the PBA draft to be able to help the Philippines earn points for the Tokyo Olympics by competing in numerous international 3x3 events. Santillan is coming off a twoyear stint with La Salle and has also completed his D-League residency early this year after playing for Marinerong Pilipino. During that time, he also played for the Wilkins-Balanga Pure in the country’s first league dedicated to 3x3 basketball. While in the Chooks 3x3 league, Santillan was able to play in numerous FIBA 3x3 World Tours and Challengers.
NU, Ateneo advance to badminton championship showdown REIGNING five-peat champion National University and Ateneo took down its respective opponents, to forge a title showdown in the UAAP Season 82 Men’s Badminton Finals, Wednesday at the Centro Atletico Badminton Center. The Bulldogs though needed to dig deep to outlast the University of the Philippines Fighting Maroons, 3-2. Thirdy Bacalso kept the undefeated
streak of the Bulldogs to 50 straight ties as he dominated Michael Clemente in the deciding singles match, 21-16, 21-10. NU needed to complete the comeback in the second doubles match as UP super senior Vinci Manuel and rookie Jason Vanzuela threatened to clinch the tie. Solomon Padiz Jr. and Keeyan Gabuelo had other plans, taking a three-set win, 21-16, 15-21, 21-17. In the other court, rookie Arthur Salvado
impressed in his first UAAP semifinals appearance, leading the Blue Eagles’ 3-1 win over the De La Salle Green Shuttlers. Salvado and Keoni Asuncion closed the day with the win after outhustling Andrew Pineda and Joshua Morada in the second doubles match, 19-21, 21-13, 21-16. Salvado took the lead, getting the first singles match, 21-18, 21-15, over Jan Mangubat, before Asuncion made it 2-0 against
Andrew Pineda, 16-21, 21-17, 21-19. Mangubat and Christian Bernardo got one for the Green Shuttlers, 21-18, 15-21, 21-12, over Geno Cariño and Fides Bagasbas, in the first doubles rubber. Salvado was elated to bring Ateneo back to the Finals after two years. “As a rookie, I feel happy for the team that we got back,” he said. “It was a struggle but our hard work has paid off.”. NU’s Thirdy Bacalso
Globe, San Juan team up to offer free Wi-Fi to 18 sites in the city By Darwin G. Amojelar GLOBE Telecom Inc. said Wednesday it teamed up with the city government of San Juan to lead the city’s digital transformation by providing free, fast and reliable internet connection and building additional cell sites. Globe chief commercial officer Albert de Larrazabal said that Globe and San Juan were taking the first step to make San Juan a digital city. “We are collaborating with Mayor Francis Zamora and the local government unit of San Juan to enable residents to access government services online using GoWiFi,” de Larrazabal said. “Aside from the Free GoWiFi service in San Juan, Globe Prepaid and TM customers can enjoy FREE 1GB, GoWiFi access with GoSakto, GoSurf and EasySurf promos,” he said. GoWifi will be initially available in 18 areas including the City Hall, San Juan Medical Center, San Juan National High School, Pinaglabanan Shrine and selected barangays halls. These barangay halls include those of Balong-Bato, Batis, Corazon de Jesús, Ermitaño, Pasadeña, Rivera, Salapan, Isabelita, Kabayanan, Little Baguio, Onse, Tibagan, Balong-Bato and Greenhills. De Larrazabal said they were also in talks with San Juan officials to improve the network quality in the city. “We are going to build additional eleven cell sites and roll-out fiber optic cables to improve the connectivity in San Juan,” he said. Globe has been supporting the San Juan National High School under company’s Global Filipino School Program where free internet, ICT equipment and digital training for teachers are being provided to expose the students to digitalization at an early age. GoWiFi continues its expansion plans nationwide, particularly in high-traffic areas like malls, hospitals and schools to make high-quality internet connection accessible and affordable to more Filipinos.
Business
Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com THURSDAY, OCTOBER 3, 2019
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PH drops in geothermal ranking I By Alena Mae S. Flores
NDONESIA eclipsed the Philippines as the world’s second largest geothermal producer behind the United States, according to the Energy Department.
The Energy Department said the country should develop geothermal sources beyond the conventional to bring back the Philippines as the second largest geothermal producer. “For the Philippines to attain additional geothermal capacities, we must look into sources that are beyond conventional like medium to low-enthalpy and acidic geothermal energy source,” Energy Assistant Secretary Robert Uy said in a speech before the Philippine
International Geothermal Conference organized by the National Geothermal Association of the Philippines. The Philippines, the perennial world’s second largest geothermal power producer, now slipped to the third place after Indonesia and the US. “Even with the very large potential of the country in terms of geothermal resources, there are still glaring reasons for the decline in geothermal investments: lack of potential investors who are willing to take the risk, unattractive incentives package compared to other countries, a privatized energy sector and tedious permitting processes,” Uy said. Uy said the department would study how the government sector could provide assistance to the development of such sources through fiscal and non-fiscal incentives. Geothermal leader Energy Development Corp. called for “innovation” to revitalize the geothermal industry and bring the Philippines back to the second spot.
“I think the call to the industry is really to innovate, to learn how to... tackle old problems in the very new way because I think it’s very possible. When you innovate, we can actually bring down the cost overtime,” EDC president Richard Tantoco said. NGAP president Jeff Caranto said there was no significant development in the geothermal industry over the past 15 years. “If you look at our energy mix, you cannot find other renewable that is baseload other than hydro and geo. We want to revitalize the industry. We want to put together a new history for geothermal development at least for the third wave of development in geothermal by looking into non-conventional,” he said. He said conventional energy resources, specifically high-temperature systems remained expensive and farflung. Permits were also very difficult to obtain, he said.
CDO Foodsphere freezes operations of two facilities in Malvar, Batangas By Othel V. Campos
GOWIFI CITY. Globe teams up with the city government of San Juan to lead the city’s digital transformation by providing free, fast and reliable internet connection with GoWifi initially in 18 areas including the City Hall, San Juan Medical Center, San Juan National High School, Pinaglabanan Shrine and selected barangays halls. Leading the signing ceremony are (from left) San Juan Vice Mayor Warren Villa, GoWiFi director for marketing and business development Janis Racpan, San Juan Mayor Francis Zamora and Globe chief commercial officer Albert de Larrazabal.
CDO Foodsphere Inc. said it temporarily suspended the operations of its wastewater treatment and rendering facilities in Malvar, Batangas after receiving an order from the Environment Department. “In compliance with the DENR directive, we have temporarily suspended the operations of these two facilities while we are fast-tracking the improvements,” the company said in a statement. CDO-Foodsphere operates a 60,000-square-meter manufacturing plant in Malvar town that produces more than 93,000 metric tons of processed meat products a year. The Environment Department said it found out several violations related to the Malvar plant’s environmental compliance certificate. CDO Foodsphere received a ceaseand-desist order on Sept. 26 after the
Environmental Management Bureau in Region 4-A investigated reports of “foul odor” emanating from the waste treatment facility within the manufacturing site. CDO Foodsphere assured the public that the products it manufactures were clean and safe. “We have always adhered to good and responsible manufacturing practices and standards and will continue to do so,” it said. The company said while it temporarily suspended the operations of its two facilities, “the rest of the plant remains to operate normally and ready to serve our customers.” “CDO Foodsphere Inc. has been a part of the lives of Filipinos for almost 45 years serving products that they can continuously trust. We strongly support the programs of our government and remain committed in keeping our environment clean and safe,” it said. With Rio N. Araja
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Business
THURSDAY, OCTOBER 3, 2019 extrastory2000@gmail.com
Stocks sink; BDO, Meralco down T HE stock market plunged Wednesday following a worsethan-expected reading on US factory activity that revived worries about the impact of the trade war on the global economy.
A list of potential public offerings this quarter is also sapping market’s liquidity, with investors taking a cautious tone before taking in positions, said SB Equities Inc. The Philippine Stock Exchange Index slumped 129.18 points, or 1.7 percent, to 7,610.68 on a value turnover of P6.1 billion. Losers beat gainers, 110 to 80, with 46 issues unchanged. BDO Unibank Inc., the biggest lender in terms of assets, fell 4.5 percent to
P137, while International Container Terminal Services Inc. dropped 3.8 percent to P115.50. Universal Robina Corp., the largest snack food maker, declined 3.3 percent to P145, while Manila Electric Co., the biggest retailer of electricity, lost 3.2 percent to P357. The rest of Asian markets also sank Wednesday. Adding to the selling pressure in Hong Kong were long-running concerns about the impact of increasingly violent pro-democracy protests in the city that saw a demonstrator shot and wounded by police on Tuesday. Regional investors took their lead from Wall Street, where equities tanked in response to news that an index of US manufacturing activity fell last month to its lowest point since June 2009. The data pointed to the impact of the China-US trade war on the world’s top
economy and will likely put pressure on Donald Trump to push through an agreement. Top level talks are planned for this month. Manufacturing is “thought to be the specific chunk of the economy the president must... protect and the sector the US aggressive trade policies were supposed to enhance”, said Stephen Innes, Asia-Pacific market analyst at AxiTrader. “So, the data could also imply not only monetary policy infusion is on the way but could increase the odds of some type of trade war detente.” The figures combined with a weak eurozone inflation reading and a contraction in Britain’s economy in the second quarter. Tokyo ended 0.5 percent lower, Sydney fell 1.5 percent and Singapore lost 1.2 percent. Taipei, Wellington, Bangkok and Jakarta were also lower.
Seoul shed almost two percent after North Korea fired a missile into the sea just a day after Pyongyang said it would resume stalled nuclear talks this week. “Looking at the broader picture, it is fair to say that the worldwide manufacturing sector is in trouble,” said David Madden, market analyst at CMC Markets. “The US-China trade spat is having a knock-on effect around the globe.” Hong Kong fell—though it pared earlier steep losses -as investors returned from a public holiday to mark China’s National Day but which saw some of the worst violence in the city since protests began in June. A teenager was shot in the chest by a policeman, fueling fears of a worsening of the unrest that has crippled the city’s economy. Shanghai was closed for a holiday. With AFP
MANILA STANDARD BUSINESS DAILY STOCKS REVIEW WEDNESDAY, OCTOER 2, 2019
VOLUME
VALUE
NET FOREIGN BUYING/(SELLING), PHP
NAME
OPEN
HIGH
LOW
CLOSE
ASIA UNITED BANK PH ISLANDS BDO UNIBANK BRIGHT KINDLE CHINABANK CITYSTATE BANK COL FINANCIAL EAST WEST BANK FERRONOUX HLDG MEDCO HLDG METROBANK NTL REINSURANCE PB BANK PBCOM PHIL NATL BANK PHIL STOCK EXCH PSBANK RCBC SECURITY BANK SUN LIFE UNION BANK
56 92 143.7 1.19 25.05 7.95 18.3 11.94 5.2 0.41 67.75 0.93 13 20.9 43.6 178 58.55 26.2 187.3 1,880 59.8
56 92.35 143.7 1.19 25.05 7.95 18.3 12.12 5.2 0.41 68.35 0.93 13 20.9 43.8 179.6 58.55 26.95 197 1,880 59.8
56 91.05 137 1.11 24.9 7.95 18.3 11.88 5.11 0.41 67.1 0.91 13 20.9 43.45 176.5 57 26.2 187.3 1,880 59
FINANCIALS 56 100 91.6 1,347,910 137 1,981,930 1.11 20,000 25 79,000 7.95 200 18.3 11,500 12.12 556,100 5.19 43,500 0.41 60,000 67.1 872,490 0.91 543,000 13 5,400 20.9 100 43.6 74,600 176.5 270 57 2,050 26.5 23,300 194.2 500,940 1,880 5 59 251,710
5,600 123,370,752.50 273,931,012 22,280 1,973,485 1,590 210,450 6,631,926 223,951 24,600 58,990,890.50 494,730 70,200 2,090 3,249,255 48,119 117,103.50 618,970 97,243,078 9,400 14,853,088
-8,638,764 -146,438,106 -742,495 -210,450 1,210,958 -12,280,716.50 -488,230 -482,065 14,991,323 -8,212,841
ABOITIZ POWER AGRINURTURE ALLIANCE SELECT ALSONS CONS BASIC ENERGY CEMEX HLDG CENTURY FOOD CIRTEK HLDG CNTRL AZUCARERA CONCEPCION CONCRETE A CONCRETE B CROWN ASIA DAVINCI CAPITAL DEL MONTE DNL INDUS EAGLE CEMENT EEI CORP EMPERADOR FIRST GEN FIRST PHIL HLDG GINEBRA GREENERGY HOLCIM INTEGRATED MICR IONICS JOLLIBEE LMG CHEMICALS MABUHAY VINYL MACAY HLDG MANILA WATER MAXS GROUP MEGAWIDE MERALCO PANASONIC PEPSI COLA PETROENERGY PETRON PHINMA PHINMA ENERGY PHX PETROLEUM PILIPINAS SHELL PRYCE CORP RFM CORP ROXAS AND CO SFA SEMICON SHAKEYS PIZZA SMC FOODANDBEV SPC POWER SWIFT FOODS TKC METALS UNIV ROBINA VITARICH VULCAN INDL
38.85 15.8 0.67 1.29 0.246 2.45 14.28 8.68 19 31.6 68.2 76 2.03 6.14 5.7 8.89 15.22 10.76 7.1 24.7 80 47.8 2.38 14.22 8 1.5 220 5.41 3.51 8.26 20 13 18.26 369.8 5.48 1.74 4.45 5.04 10.14 2.26 10.9 32.55 5.27 5.05 1.98 1.01 11.38 89.1 7.48 0.124 1.04 149.5 1.15 1.05
38.85 15.8 0.68 1.3 0.25 2.45 14.78 9.15 19 32.5 70 76.05 2.03 6.15 6.14 8.9 15.58 10.88 7.1 24.7 81 48 2.49 14.5 8.04 1.59 221.8 5.6 3.52 8.26 20.1 13 18.78 369.8 5.48 1.74 4.45 5.05 10.14 2.27 11.1 32.55 5.3 5.05 2.06 1.02 11.38 91.8 7.48 0.124 1.1 149.5 1.21 1.06
37.25 15.5 0.67 1.29 0.246 2.34 14.18 8.68 19 31.6 68.2 76 2.01 6.14 5.7 8.71 15.16 10.5 7.07 24 79 46 2.28 14.22 7.8 1.48 218.4 5.35 3.51 8.26 19.96 12.3 18.22 357 5.48 1.69 4.45 5 9.64 2.1 10.82 32.35 5.27 5.05 1.92 1.01 11.3 87.25 7.32 0.124 1.03 143.9 1.14 1.02
INDUSTRIAL 37.25 841,200 15.8 347,600 0.68 351,000 1.29 80,000 0.25 1,760,000 2.4 3,165,000 14.6 923,900 9.04 1,277,100 19 100 32.5 2,400 70 120 76 720 2.01 102,000 6.14 141,100 6.05 155,900 8.71 2,470,300 15.48 36,400 10.7 278,600 7.08 812,200 24.7 970,500 80.15 1,202,140 47.5 11,400 2.49 8,529,000 14.5 94,800 7.8 381,100 1.59 17,000 220.8 594,020 5.48 517,400 3.52 13,000 8.26 1,600 20 2,171,100 12.86 108,500 18.26 205,000 357 192,150 5.48 200 1.72 1,410,000 4.45 4,000 5.01 775,400 10.14 88,200 2.12 31,178,000 11.1 108,100 32.4 189,500 5.3 24,200 5.05 4,000 1.93 2,393,000 1.02 21,000 11.32 633,400 91.8 266,070 7.4 10,000 0.124 300,000 1.05 172,000 145 1,660,020 1.2 13,567,000 1.04 6,317,000
31,587,990 5,474,956 235,720 103,750 439,400 7,576,570 13,244,630 11,524,586 1,900 76,880 8,292 54,725 206,420 866,553 920,737 21,702,318 556,644 2,958,830 5,750,351 23,841,285 96,352,456.50 538,740 20,490,100 1,368,830 2,992,093 25,810 130,740,092 2,844,916 45,730 13,216 43,432,963 1,373,246 3,778,774 69,308,280 1,096 2,409,630 17,800 3,883,205 873,402 67,808,740 1,194,280 6,142,075 128,224 20,200 4,693,370 21,220 7,184,230 24,004,374 74,460 37,200 179,960 242,323,961 16,243,080 6,558,650
-9,043,740 1,484,050 -58,500 38,060 3,717,760 32,747 -57,580 -900,138.00 -6,409,975.00 334,946 -1,279,964 -4,435,573 2,817,865 -21,536,679.50 332,240 1,381,160 -208,678 -240,984 34,865,978 -270,160 0 -15,451,122 -25,548 -411,322 -16,292,264 89,080 -736,806 -41,990.00 -166,044 1,893,320 251,336 -1,653,570 -2,960 10,500 -62,632,905 1,253,610.00 45,910
ABACORE CAPITAL ABOITIZ EQUITY ALLIANCE GLOBAL ANGLO PHIL HLDG ANSCOR ASIABEST GROUP ATN HLDG A ATN HLDG B AYALA CORP AYALA LAND LOG COSCO CAPITAL DMCI HLDG FILINVEST DEV FORUM PACIFIC GT CAPITAL HOUSE OF INV JG SUMMIT LODESTAR LOPEZ HLDG LT GROUP MABUHAY HLDG METRO PAC INV PACIFICA PRIME MEDIA SAN MIGUEL CORP SM INVESTMENTS SOC RESOURCES SOLID GROUP TOP FRONTIER WELLEX INDUS ZEUS HLDG
0.89 53.2 10.8 0.75 6.94 13.42 1.12 1.15 879 3.48 6.74 8.17 13.4 0.222 843 5.65 72.2 0.5 4.38 14.1 0.58 4.94 0.039 1.3 170.4 978 0.89 1.28 224 0.224 0.24
0.92 53.5 11.18 0.75 6.94 13.72 1.15 1.18 879.5 3.49 6.74 8.53 13.4 0.222 843 5.66 72.2 0.51 4.38 14.1 0.59 4.94 0.039 1.35 170.6 988 0.89 1.28 224 0.226 0.24
0.88 52.3 10.6 0.7 6.94 13.36 1.12 1.15 856 3.45 6.54 8.17 13 0.22 830 5.65 69.15 0.495 4.37 13.92 0.55 4.79 0.039 1.3 167 977.5 0.86 1.27 224 0.222 0.24
HOLDING FIRMS 0.89 11,480,000 52.5 512,840 10.6 8,839,000 0.72 371,000 6.94 300 13.52 18,100 1.14 537,000 1.18 8,000 856 358,590 3.49 839,000 6.59 368,900 8.45 9,066,500 13.4 74,400 0.221 500,000 835 74,500 5.66 332,900 70.5 2,078,410 0.51 888,000 4.37 1,063,000 13.94 4,909,500 0.59 1,147,000 4.83 8,754,000 0.039 3,500,000 1.35 81,000 168 247,800 983 782,330 0.88 33,000 1.27 9,000 224 10,000 0.222 580,000 0.24 10,000
10,230,460 27,002,298.50 95,298,988 263,300 2,082 245,262 607,500 9,230 309,980,845 2,912,430 2,427,162 76,595,425 994,428 110,290 62,225,805 1,881,002 146,583,987.50 443,075 4,645,390 68,523,914 639,140 42,568,130 136,500 105,610 41,894,011 769,191,915 28,940 11,460 2,240,000 129,380 2,400
8990 HLDG A BROWN ARTHALAND CORP AYALA LAND BELLE CORP CEB LANDMASTERS CEBU HLDG CENTURY PROP CITYLAND DEVT CROWN EQUITIES CYBER BAY DM WENCESLAO DOUBLEDRAGON EMPIRE EAST FILINVEST LAND GLOBAL ESTATE KEPPEL PROP MEGAWORLD MRC ALLIED PHIL ESTATES PHIL INFRADEV PHIL REALTY PRIMEX CORP ROBINSONS LAND ROCKWELL SHANG PROP
15.04 0.82 0.9 48.15 2.08 4.65 6.2 0.54 0.84 0.213 0.38 9.6 20.35 0.445 1.54 1.2 4.71 4.45 0.3 0.41 1.33 0.375 2.05 24.6 2.29 3.2
15.08 0.83 0.9 48.15 2.08 4.7 6.28 0.55 0.84 0.213 0.395 9.7 20.35 0.445 1.56 1.22 4.71 4.53 0.305 0.42 1.36 0.385 2.05 24.75 2.32 3.29
15.02 0.8 0.86 47 2.05 4.62 6.2 0.53 0.84 0.212 0.38 9.59 19.94 0.44 1.5 1.19 4.71 4.4 0.3 0.41 1.31 0.375 2 24 2.28 3.13
PROPERTY 15.02 235,000 0.82 2,083,000 0.89 833,000 47 9,208,500 2.05 627,000 4.65 166,000 6.28 1,000 0.55 2,879,000 0.84 10,000 0.213 1,220,000 0.395 20,000 9.7 593,400 20.3 136,100 0.44 350,000 1.5 36,127,000 1.19 166,000 4.71 20,000 4.45 61,174,000 0.305 3,990,000 0.42 110,000 1.35 1,200,000 0.375 150,000 2.04 117,000 24.5 1,389,200 2.3 165,000 3.29 62,000
3,529,966 1,684,420 727,800 436,079,550 1,289,050 773,380 6,216 1,556,740 8,400 258,860 7,750 5,749,658 2,731,599 154,600 54,586,230 198,040 94,200 272,974,380 1,199,900 46,100 1,593,390 56,450 238,120 33,696,970 378,970 199,460
NAME
NET FOREIGN BUYING/(SELLING), PHP
OPEN
HIGH
LOW
CLOSE
VOLUME
VALUE
SM PRIME HLDG STA LUCIA LAND SUNTRUST HOME VISTA LAND VISTAMALLS
36.8 2.54 0.89 7.7 5.79
36.95 2.6 0.89 7.72 5.95
36.25 2.49 0.87 7.68 5.71
36.45 2.6 0.89 7.7 5.79
6,841,700 1,918,000 126,000 1,324,900 59,200
249,526,300 4,871,570 110,960 10,204,174 344,715
-3,069,075 -3,090,056 -
2GO GROUP ABS CBN ACESITE HOTEL APC GROUP APOLLO GLOBAL ASIAN TERMINALS BERJAYA BLOOMBERRY BOULEVARD HLDG CEBU AIR CHELSEA DFNN INC EASYCALL GLOBE TELECOM GMA NETWORK GOLDEN BRIA GRAND PLAZA HARBOR STAR IMPERIAL INTL CONTAINER ISLAND INFO ISM COMM LBC EXPRESS LEISURE AND RES LORENZO SHIPPNG MACROASIA MANILA JOCKEY METRO RETAIL METROALLIANCE A MLA BRDCASTING NOW CORP PACIFIC ONLINE PAL HLDG PH RESORTS GRP PHIL SEVEN CORP PHILWEB PLDT PREMIUM LEISURE PRMIERE HORIZON PUREGOLD ROBINSONS RTL SSI GROUP STI HLDG TRANSPACIFIC BR WATERFRONT WILCON DEPOT
9.8 18.24 1.73 0.6 0.045 18.24 2.28 10.68 0.054 89.6 6.82 6.1 9.3 1,826 5.16 422 10 1.58 1.76 121.7 0.109 5.01 14.1 3.01 0.95 18.38 3.35 2.37 1.15 15.02 2.66 2.89 7.95 4.82 140 3.02 1,120 0.72 0.55 37.95 78 2.82 0.68 0.33 0.66 16.5
10 18.36 1.73 0.63 0.045 18.5 2.35 10.72 0.054 91.95 6.9 6.1 9.77 1,826 5.22 460 11.86 1.59 1.76 121.7 0.11 5.12 14.1 3.03 0.95 18.5 3.5 2.38 1.15 15.02 2.73 2.91 8.1 4.82 140 3.02 1,124 0.72 0.55 38.8 78 2.82 0.69 0.335 0.68 16.66
9.8 18.16 1.72 0.58 0.045 18.24 2.28 10.4 0.052 89.6 6.73 6.05 9.3 1,785 5.16 419.4 10 1.54 1.76 115.5 0.108 4.91 13.98 3 0.91 18.38 3.35 2.35 1.15 15.02 2.66 2.8 7.88 4.8 135.4 3 1,102 0.7 0.53 37.8 76.1 2.71 0.68 0.325 0.66 16.4
SERVICES 10 18.28 1.72 0.61 0.045 18.5 2.35 10.7 0.053 89.95 6.73 6.05 9.6 1,793 5.17 430.2 11.84 1.56 1.76 115.5 0.108 5 14 3 0.91 18.4 3.49 2.37 1.15 15.02 2.66 2.89 8.1 4.8 135.4 3.02 1,120 0.71 0.53 38.2 76.5 2.72 0.68 0.33 0.66 16.6
2,100 227,900 15,000 14,528,000 3,000,000 1,596,300 23,000 6,647,400 11,160,000 84,700 684,000 200 5,300 59,395 69,500 31,790 2,100 429,000 16,000 1,847,240 1,590,000 1,437,000 5,500 243,000 21,000 411,700 47,000 105,000 2,000 100 1,345,000 59,000 7,800 9,000 130 426,000 46,725 212,000 8,225,000 2,630,700 178,300 1,085,000 2,756,000 3,740,000 345,000 7,728,900
20,760 4,148,280 25,870 8,801,740 135,000 29,117,812 53,630 70,820,982 590,780 7,620,980.50 4,640,858 1,215 49,589 106,709,095 359,943 13,973,924 23,050 666,580 28,160 214,981,247 173,140 7,173,400 76,980 729,350 19,150 7,594,086 162,110 247,770 2,300 1,502 3,613,980 169,870 61,698 43,310 18,062 1,281,670 52,106,295 150,270 4,429,300 100,381,295 13,664,396 2,966,060 1,874,250 1,220,050 228,440 128,285,324
1,000 -1,519,800 -92,500 7,196,918 -26,500 3,832,477 -654,614 -15,255,675 -88,450,793 -85,020 -101,980 30,000 2,148,506 -103,460 -119,910 -51,140 -17,631,685 -26,551,745 -6,528,121.50 1,141,450 -1,744,900 3,571,584.00
ABRA MINING APEX MINING ATOK CENTURY PEAK DIZON MINES FERRONICKEL GEOGRACE LEPANTO A LEPANTO B MANILA MINING A MANILA MINING B MARCVENTURES NICKEL ASIA NIHAO OMICO CORP ORNTL PENINSULA ORNTL PETROL A ORNTL PETROL B PHILODRILL PHINMA PETRO PX MINING PXP ENERGY SEMIRARA MINING
0.0016 1.15 11.78 2.62 7.97 1.6 0.234 0.105 0.105 0.0091 0.0096 1.15 3.81 1.13 0.51 0.87 0.012 0.011 0.011 8.5 3.68 11.34 22.1
0.0017 1.15 11.9 2.62 7.97 1.63 0.236 0.11 0.111 0.0091 0.0097 1.15 3.93 1.13 0.54 0.89 0.012 0.011 0.011 8.55 3.68 11.52 22.6
0.0016 1.13 11.4 2.59 7.53 1.56 0.225 0.105 0.105 0.0091 0.0092 1.12 3.7 1.09 0.5 0.87 0.011 0.011 0.011 7.98 3.55 11.26 22
MINING & OIL 0.0017 14,000,000 1.15 709,000 11.9 18,400 2.61 703,000 7.8 1,300 1.56 5,577,000 0.235 110,000 0.11 910,000 0.111 550,000 0.0091 8,000,000 0.0097 28,700,000 1.12 88,000 3.8 8,563,000 1.13 45,000 0.54 196,000 0.89 81,000 0.011 4,600,000 0.011 400,000 0.011 7,300,000 8 941,400 3.55 786,000 11.5 506,500 22.05 2,044,700
22,500 814,530 214,692 1,829,280 9,937 8,848,240 25,350 97,560 59,450 72,800 271,300 99,430 32,856,850 49,940 100,230 70,510 51,100 4,400 80,300 7,672,661 2,812,040 5,782,884 45,062,415
-133,810 -8,800 -14,042,560 -4,320 -440,315 391,776 -8,546,550
-1,737,880 -7,400,917 -33,098,030 -92,093,285 -373,860 -1,173,308 -17,556,327 -246,154 19,800 -8,943,920 -631,222 -5,018,117 -4,134,010 6,571,262 134,200 -18,246,980 -19,500 -20,972,476 461,168,960 1,617,280 -
ABS HLDG PDR AC PREF B1 AC PREF B2 ALCO PREF B DD PREF FGEN PREF G GLO PREF P HOUSE PREF A LR PREF MWIDE PREF PCOR PREF 2A PCOR PREF 3A PCOR PREF 3B PNX PREF 3A PNX PREF 3B SMC FB PREF 2 SMC PREF 2C SMC PREF 2D SMC PREF 2E SMC PREF 2F SMC PREF 2G SMC PREF 2H SMC PREF 2I
17.4 501 504 100.5 101.5 107.6 505 96.5 1 101.5 1,000 1,050 1,062 102 108 995 77.8 74.95 75.5 76 75.6 75.5 76.6
17.4 501 504 103 101.5 107.6 505 99.5 1 101.5 1,000 1,050 1,062 102 108 995 77.9 74.95 75.5 77 75.6 75.5 76.6
17.4 501 503.5 100 101 107.5 505 96.5 1 100.2 1,000 1,045 1,062 102 108 995 77.8 74.95 75 75.9 75.3 75.5 76
PREFERRED 17.4 10,000 501 10 503.5 940 103 20,020 101 300 107.5 3,820 505 980 97.1 3,300 1 15,000 100.2 10,560 1,000 1,000 1,045 5,100 1,062 1,015 102 200 108 100 995 5,400 77.8 43,100 74.95 700 75.1 18,500 77 17,580 75.3 5,000 75.5 5,000 76 140,020
174,000 5,010 473,755 2,009,320 30,350 410,685 494,900 320,720 15,000 1,061,205 1,000,000 5,354,500 1,077,930 20,400 10,800 5,373,000 3,354,400 52,465 1,391,525 1,346,079 376,675 377,500 10,644,282
-174,000 -107,500 -950,380 -
LR WARRANT
1.52
1.52
1.52
WARRANTS 1.52 10,000
15,200
ITALPINAS KEPWEALTH XURPAS
6.59 9.62 0.91
6.59 10 0.92
6.25 9.62 0.9
-1,372,900 820 -273,306,080 -24,590.00 -93,060 -484,940 -840 -4,260 5,276,361 412,383 -34,222,170 -48,799,130 -3,050 -42,000 -28,140 654,950 22,400
FIRST METRO ETF
116
116.3
114.2
USD DMPL A1 USD TECH B2
10.3 0.96
10.4 0.98
10.3 0.96
MS TRADING SUMMARY
SHARES
FINANCIAL
8,795,282
INDUSTRIAL
88,075,763
HOLDING FIRMS
57,866,743
PROPERTY
137,978,169
SERVICES
74,414,091
MINING & OIL
84,840,683
GRAND TOTAL
453,976,791
6.37 9.8 0.91
SME
-
920,900 334,300 734,000
5,850,891 3,298,732 668,920
100,142 -
EXCHANGE TRADED FUNDS 114.2 16,660
1,918,081
13,782
DDS 10.36 0.98
12,500 289,600
129,790 278,308
-
VALUE 1,762.17 (down) 30.27 1,027,204,849.66 FINANCIAL INDUSTRIAL 10,254.77 (down) 178.05 1,071,915,607.68 HOLDING FIRMS 7,530.13 (down) 101.16 1,809,981,309.57 PROPERTY 3,984.62 (down) 67.04 SERVICES 1,492.89 (down) 25.01 1,299,896,572.27 MINING & OIL 8,673.32 (down) 51.35 810,924,944.30 PSEI 7,610.68 (down) 129.18 106,922,362.75 All Shares Index 4,635.68 (down) 51.36 6,138,582,436.23 Gainers: 80; Losers: 110; Unchanged: 46; Total: 236
SM Prime set to launch third shopping mall in Pangasinan By Jenniffer B. Austria SM PRIME Holdings Inc., one of the largest integrated property developers in Southeast Asia, will open its third mall in Pangasinan province on Friday. SM Prime said in a disclosure to the stock exchange SM Center Dagupan, which would be the company’s 74th shopping mall in the country, would have 23,000 square meters of gross floor area. The new outlet will bring the combined size of the three SM Supermalls in Pangasinan to 145,000 sq. m. of GFA. The company’s first two malls in Pangasinan are SM City Rosales and SM City Urdaneta Central. “Dagupan City is considered as Pangasinan’s industrial hub and the most highly urbanized city. The addition of SM Center Dagupan in this progressive and vibrant city will attract more local and international tourists, further boosting the growth of the local economy,” said SM Prime president Jeffrey Lim. SM Center Dagupan, which will open with 90 percent of space lease-awarded, will feature shopping, dining and entertainment destinations, including SM Hypermarket, SM Appliance Center, Ace Hardware, Watsons, Surplus, Miniso and Simply Shoes, among other well-liked brands and shops. SM Center Dagupan is nestled along the bustling M.H. Del Pilar Street and with close proximity to major education, health and government institutions in the city. It will have more than 400 carpark slots as well as bus terminal slots for added convenience for the mall’s and city’s guests.
IN BRIEF BIR destroys fake cigarettes, machines THE Bureau of Internal Revenue destroyed over a billion pesos worth of cigarette-making machines and counterfeit cigarettes that were seized in various raids in Misamis Oriental and Leyte. The BIR said in a report to Finance Secretary Carlos Dominguez III the goods seized from illicit manufacturing operations uncovered in Cagayan de Oro City in Misamis Oriental and in the cities of Tacloban and Ormoc in Leyte were shipped to, and subsequently destroyed in, a waste disposal facility in Cagayan de Oro last month. The destroyed goods included raw materials and packaging supplies used for cigarette manufacturing, BIR Deputy Commissioner Arnel Guballa reported to Dominguez during a recent DoF executive committee meeting. “The destruction activity, spearheaded by the BIR Operations Group and its Strike Team, was witnessed by representatives from the Commission on Audit, National Bureau of Investigation, local government units, local press and revenue regional offices,” Guballa said. Julito G. Rada
PCC OKs settlement offer of Urban Deca THE Philippine Competition Commission ordered Urban Deca Homes Manila Condominium Corp. and parent company 8990 Holdings Inc. to comply with the antitrust law, marking the closure of the first abuse of dominance case in the country. The commission approved the terms of settlement proposed by the companies to break the exclusivity between Urban Deca Homes and in-house internet service provider Fiber to Deca Homes in nine projects across the country. The firms were ordered to immediately stop their abusive activities, pay a fine of P27.11 million within 30 days and comply with the terms and conditions of settlement. They will be monitored regularly for compliance and subjected to further fines and penalties for any breach. “This is a landmark case for the PCC that successfully resolved to stop an anticompetitive practice, restore competition in the affected market, and set as example to deter other businesses from employing similar exclusive dealings,” said PCC chairman Arsenio Balisacan. Othel V. Campos
Agriculture begins rice seed distribution AGRICULTURE Secretary William Dar signed Tuesday an agreement with top seed growers’ associations and cooperatives in the country to ensure the supply of high-quality inbred rice seeds under the Rice Competitiveness Enhancement Fund Seed Program. “Yes, RCEF is now rolling out and October 1 is such a milestone for this program as we are now set to distribute two million bags of highquality inbred rice seeds to our rice farmers,” Dar said during the signing. Two million bags of seeds, each containing 20 kilos, will be planted to around one million hectares of rice land, and will benefit one million rice farmers in the country. Among the seed groups that signed with the department were Pangasinan Organic Seed Growers and Nursery Multi-purpose Cooperative, Isabela Seed Growers Multi-purpose Cooperative, Nueva Ecija Seed Grower Multipurpose Cooperative, South Nueva Ecija Seed Growers Multi-purpose Cooperative, and West Visayas Federation of Multi-Purpose and Seed Producers Cooperative. Othel V. Campos
B3
World
THURSDAY, OCTOBER 3, 2019 CESAR BARRIOQUINTO, Editor mst.daydesk@gmail.com
Flash HK rallies break out over shot protester H
ONG KONG―Spontaneous flash-mob rallies broke out in Hong Kong on Wednesday as anger mounted over the police shooting of a teenage protester who attacked officers in wa dramatic escalation of the violent unrest that has engulfed the territory for months.
GUY FAWKES MASK. In this picture taken on October 1, 2019, a Hong Kong protester wears a Guy Fawkes mask, which was popularised by the V For Vendetta comic book film, on the back of his head. AFP
N. Korea fires ballistic missile ahead of nuke talks SEOUL―North Korea fired what appeared to be a submarine-launched ballistic missile, Seoul said Wednesday, just days before Washington and Pyongyang were set to resume long-stalled nuclear talks. Pyongyang frequently couples diplomatic overtures with military moves, as a way of maintaining pressure on negotiating partners, analysts say, and may believe this weapons system gives it added leverage. A proven submarine-based missile capability would take the North’s arsenal to a new level, allowing deployment far beyond the Korean peninsula and a second-strike capability in the event of an attack on its military bases. The South’s Joint Chiefs of Staff said it detected a ballistic missile early Wednesday fired in an easterly direction from the sea, northeast of the North Korean port of Wonsan. The missile was “believed to be one of the Pukkuksong models”, the JCS said in a statement, referring to a line
of submarine-launched ballistic missiles (SLBM) under development by the North. Launches like this “are not helpful to efforts to ease tensions on the Korean peninsula and we urge North Korea again to stop immediately,” it added. The North carried out a successful test of the solid-fuel Pukkuksong-1, also known as KN-11, in August 2016 which flew around 500 kilometres. In July, North Korean state media had published pictures of Kim Jong Un inspecting a new type of submarine, fueling concerns that Pyongyang was pushing ahead with an SLBM program. Analysts say the missile is believed to have been fired at a lofted angle, adding it is likely an intermediate-range ballistic missile with an actual flight range of around 2,000 kilometres. Vipin Narang, an associate professor at Massachusetts Institute of Technology, drew a line between a recent series of launches by Pyongyang and Wednesday’s test, calling it “an explicitly nucle-
ar weapons system”. The United States said it was monitoring the situation on the Korean peninsula. A part of the missile landed in waters within Japan’s exclusive economic zone―a 200-kilometer band around Japanese territory―Tokyo said. “The launching of ballistic missiles violates UN Security Council resolutions and we strongly protest and strongly condemn it,” Prime Minister Shinzo Abe told reporters. The North is banned from ballistic missile launches under UN Security Council resolutions. The launch came a day after the North’s Vice Foreign Minister Choe Son Hui said Pyongyang had agreed to hold working-level talks with Washington later this week. AFP
Trump denounces impeachment inquiry WASHINGTON―Donald Trump on Tuesday denounced the impeachment inquiry threatening his presidency as a “coup,” as his administration pushed back hard against the investigation. Trump’s comments came after Secretary of State Mike Pompeo vowed to prevent or delay five State Department officials from testifying in the investigation probing accusations that Trump abused his office by seeking dirt from Ukraine on a 2020 election rival. “As I learn more and more each day, I am coming to the conclusion that what is taking place is not an impeachment, it is a COUP,” Trump tweeted. It is “intended to take away the Power of the People, their VOTE, their Freedoms, their Second Amendment, Religion, Military, Border Wall, and their God-given rights.” Pompeo meanwhile accused three Democratic House committee heads conducting the impeachment inquiry of “an attempt to intimidate, bully and treat improperly the
IN BRIEF Singapore’s ‘fake news’ law takes effect
SINGAPORE―Singapore’s new law to combat “fake news” came into effect Wednesday despite criticism from tech giants and activists, who labeled the tough rules a “chilling” attempt to stifle dissent. The law gives government ministers powers to order social media sites to put warnings next to posts authorities deem to be false, and in extreme cases get them taken down. Facebook, Twitter and Google―who have their Asian headquarters in Singapore―were given temporary exemptions from a handful of provisions in the act to give them time to adapt. If an action is judged to be malicious and damaging to Singapore’s interests, companies could be hit with fines of up to Sg$1 million ($720,000), while individuals could face jail terms of up to 10 years. Authorities in the tightly controlled country― long criticized for restricting civil liberties―insist the measures are necessary to stop the circulation of falsehoods that could sow divisions in society and erode trust in institutions. But the laws have sparked outrage from rights groups, who fear they could stifle online discussion, tech companies and media organizations. Journalist and activist Kirsten Han, who is the editor-in-chief of the independent media outlet New Naratif, said the legislation was “extremely worrying”. “It’s such a broad law that it’s hard to predict how it’s going to be applied. What’s of immediate concern is the chilling effect and the further entrenchment of self-censorship,” she told AFP. AFP
distinguished professionals of the Department of State.” But Democrats accused the top US diplomat of “stonewalling” the investigation and, according to media reports, scheduled interviews with at least two of the diplomats who both had direct involvement in the Ukraine matter. It was the first major clash of the days-old impeachment probe, pointing to a dramatically mounting political and legal siege as Trump battles to save his presidency. Trump faces the possibility of becoming only the third president ever impeached by Congress, which could lead to his going on trial in the Senate. Democrats decided last week to seek impeachment after a whistleblower complaint, supported by a White House call transcript, showed Trump pressuring Ukraine President Volodymyr Zelensky to supply him with politically useful information on Democratic former vice president Joe Biden. AFP
First US cannabis cafe opens in Hollywood LOS ANGELES―America’s first cannabis restaurant has opened in West Hollywood, offering diners an array of weed products and hoping to rival Amsterdam’s famed coffee shops. Called Lowell Farms: A Cannabis Cafe, the much-hyped 240-seat establishment is open to people 21 and over, who can order from a cannabis menu just like they would a wine bottle. “Flower Hosts,” or “budtenders,” help patrons navigate the menu, giving advice to connoisseurs or novices on what strain of cannabis to order with their meal and the potency and flavor of each product. On offer are pre-rolled joints starting at $18 dollars apiece, highly potent concentrates, some edibles, and accessories such as bongs, pipes and dabbing devices. “It’s amazing to be a part of making history, I never thought I would have been,” said executive chef Andrea Drummer as she surveyed diners at the soft opening of the eatery on Monday. “It’s important to have a safe space to consume in a very communal setting,” she added. “The only other place that I know that to be the case is Amsterdam.” She said customers were flying in from different parts of the country, and one couple was even traveling from Britain, to take part in the grand opening on Tuesday. The cafe’s launch comes as more and more states across America have legalized marijuana in recent years, both for medicinal and recreational purposes. The drug, however, remains illegal at the federal level. In California, which has the world’s largest legal marijuana market, recreational pot became legal in 2018, setting off a mad rush by entrepreneurs to cash in on the multi-billiondollar industry. AFP
A few thousand demonstrators, including office workers in shirts and suits, mustered in a park and then began marching through the city’s commercial district in an unsanctioned rally, chanting anti-police and anti-government slogans. Hours earlier, hundreds of students staged a sit-in at the school of 18-yearold Tsang Chi-kin, who was shot in the chest by a policeman as he and a group of masked protesters attacked officers with umbrellas and poles. The international finance hub has been left reeling from the shooting, the first time a demonstrator has been struck with a live round in nearly four months of increasingly violent pro-democracy protests. Hong Kong was battered by the most sustained political clashes of the year on Tuesday as China celebrated 70 years of Communist Party rule with a massive military parade in Beijing. The spiraling violence underscored seething public anger against Beijing’s rule and shifted the spotlight from China’s carefully choreographed birthday party, which was designed to showcase its status as a global superpower. Running battles raged for hours across multiple locations as hardcore protesters hurled rocks and petrol
bombs. Police responded for the most part with tear gas, rubber bullets and water cannon. Police said the officer fired at Tsang because he feared for his life on a day that saw his colleagues fire five warning shots from their pistols throughout the city. “In this very short span of time, he made a decision and shot the assailant,” police chief Stephen Lo said. But protest groups said the officer charged into the melee with his firearm drawn and condemned the increasing use of live rounds. “The people of Hong Kong are sick and tired of having mere words of condemnation as their only shields against lethal bullets and rifles,” a masked protester said at a press conference near Tsang’s school. The shooting was captured on video that quickly went viral. Opinion towards the shooting has largely cemented along ideological divides with pro-democracy activists condemning the police and establishment figures calling it a justified use of force. Tsang, who was filmed trying to strike the officer with a pole as he was shot, was taken to a nearby hospital in a critical condition but authorities said his condition had since improved. AFP
LGUs
Jimbo Owen Gulle, Editor lgu@manilastandard.net editor.lgustandard@gmail.com
B4
THURSDAY, OCTOBER 3, 2019
LOCAL GOVERNMENT UNITS
Cebu City hosts farm tourism conference THE Queen City of the South takes center stage as the country’s leading farm tourism practitioners and stakeholders for the 6th Farm Tourism Conference set at the Marco Polo Plaza Hotel, Cebu City on Nov. 6 to 8. Themed “Building Community Relationship for Sustainable Development of Farm Tourism,” the event is hosted by the City Government of Cebu, the confab is co-organized by the International School of Sustainable Tourism and the Cebu Alliance of Tour Operations Specialist Inc., with the support of the Department of Tourism, Department of Agriculture, and Department of Trade and Industry. To deliver keynote messages are former president and House Speaker Gloria Macapagal Arroyo, Agriculture Secretary William Dar, and Senator Cynthia Villar, author of the Farm Tourism Development Act of 2016. According to ISST president and event director Mina Gabor, the Conference will focus on the unique fusion of farming and tourism that helps empower local communities, provide diversified income for farmers, and encourage sustainable practices for food security. “Farm Tourism attracts visitors and travelers to farm areas, generally for educational and recreational purposes that encourage economic activity to provide farm and community income. It is one of the country’s sunshine industries which can be developed because of the agricultural nature of the economy,” she said. The former tourism chief pointed out that the conference will emphasize the vital role of strengthening communities in initiating and sustaining farm tourism efforts in the countryside.
NUANG FESTIVAL.
Owners of Murrah buffalos parade their crossbreed carabaos to celebrate the 15th Nuang Festival in San Agustin, Isabela on Saturday. Mayor Cesar Mondala (inset) notes the importance of the beasts of burden to the towns’ smallholder farmers’ as it celebrated its 70th founding anniversary. Jessica M. Bacud
Mt. Apo trek route reopens
C
OTABATO CITY—The Kidapawan City Tourism Office in North Cotabato has announced the scheduled reopening of the Mt. Apo trail starting next month, just in time for the October trek (Octo Trek 2019). Joey Recimilla, city tourism officer, said Kidapawan City’s Mandangan trail going to Mt. Apo, the country’s highest peak at 9,692 above sea level, will be opened to the public for trekking next month. “In line with the activity, we will also be having a ‘Night Market’ which is now open for exhibitors and tenants,” Recimilla said in a statement Saturday.
Earlier, the six trails going to Mt. Apo’s summit in Kidapawan City, Makilala, and Magpet in North Cotabato; and Digos City, Sta. Cruz and Bansalan in Davao del Sur have been shut down due to the effects of the El Nino phenomenon in May this year. “The mountain has recovered and we have measures to prevent destructions like a forest fire and improper garbage
disposal by hikers,” Recimilla said. Among the measures currently being undertaken for the forthcoming trek is the limitation to only 50 climbers per day to the mountain summit. He said the KCTO and the Protected Areas Management Board (PAMB) are yet to decide whether to allow climbers in other trails, like Davao del Sur and Digos City, to exit using the Kidapawan trail. “We have experience in the past where climbers using other entry points and exited through Kidapawan trail have left a huge pile of garbage and have violated policies,” he added. Recimilla said the KCTO has com-
plete records for those coming up using the Kidapawan trail than those who used other entry points, making it much easier for them to regulate and monitor the number of climbers. “We would like to prevent forest fires that might hit the Mt. Apo peak some three years ago,” he stressed. In 2016, huge fires hit the Davao side of Mt. Apo where it took more than two weeks to put off the forest fire. He said the city tourism office is all set for the “Octo-trek 2019” but preparations continue to ensure a hassle-free mountain climbing experience for trekkers. PNA
IEE, Don Bosco partner for underprivileged youth
SM brings medical aid to Bulacan malls By Jun David
FREE medical, dental, diagnostic and vision care were freely given to 1,207 indigent patients during the recent SM Foundation’s Gamot Para Sa Kapwa Medical and Dental Mission at SM City Marilao. This year, SM Foundation’s project and volunteer partners include Watsons, Department of Social Welfare and Development Office, Philippine National Red Cross-Bulacan Chapter, the Municipal Government and Municipal Health Offices of Marilao. Private medical and dental companies in SM City Marilao like The Primewell City Multi-Specialty Clinic and MyDentist joined to provide basic medical, dental care services and treatment. Optic City also offered free screenings, vision care and eyeglasses for nearly 500 patients in need. Through the SM Foundation Mobile Clinic, patients were able to avail the free diagnostic and other laboratory examinations and services such as electro cardiograph, xray tests, and urinalysis. Thousands of free medicines and other health supplements were likewise given during the event. SM Foundation recently ran a medical, dental mission in SM City San Jose Del Monte, which brought together a total of 100 volunteers to provide 1,360 health, dental services to indigent patients.
TOURISM TALK. House Tourism Committee chairman Laguna Rep. Sol Aragones
(center) meets tourism stakeholders headed by SKAL Makati chairman Bobby Joseph (right) and Network of Independent Travel and Allied Services president Angel Bognot to discuss issues relating to the industry. Other members of the group (not in photo) invited were former Tourism Undersecretary Oscar Palabyab, MJTAHA president Teody Espallardo, and NITAS Secretary Tony Esteban.
THE Don Bosco Technical Vocational Education and Training Center—Balamban Inc. in Cebu believes that it is skill alignment that counts―that is, matching the competencies of its youth trainees with jobs relevant to industry needs. The company has found a like-minded partner in International Elevator & Equipment Inc., a Group Company of Mitsubishi Electric Corp.—one of the leading worldwide manufacturers of electrical and electronic products, to support its vision. Don Bosco TVET Center—Balamban and IEE recently formalized their partnership to help out-of-school Filipino youth reach their dreams of better futures. Their partnership happened by chance, during one fateful conversation between Fr. Brian R. Butanas, SDB, the Center’s director and IEE president Ramoncito A. Ocampo. With a passion for educating the youth as a true blue Bosconian teacher himself, Fr. Butanas shared about the Balamban Center’s technological and vocational courses that aimed to promote values formation among underprivileged youth. The program served as an avenue for skills learning and development, and at the same time, gave students the empowerment they needed to transform their lives. “Mr. Ocampo saw this as an opportunity to supply its needs for skilled workers. He asked me if they can be a part of this program by helping provide jobs for the graduates,” noted Fr. Butanas. “In the beginning, we sent at least eight of our trainees and they were deployed here in Manila. IEE has since been a favored employer recommended by our alumni. They provide employees with proper compensations and benefits, as well as a safe working environment,” he added. Fr. Butanas said that for the Center’s benefits to be sustainable, there have always been a constant effort to update programs and course offerings according to current industry demands.
BDO volunteers help Laoag families hit by Typhoon ‘Ineng’
A Red Cross volunteer gets the vital signs of an elderly patient prior to medical consultation during the Medical and Dental Mission at SM City Marilao. SM Foundation’s Gamot Para Sa Kapwa served more than a thousand patients in need in the province of Bulacan.
AS PART of disaster response efforts organized by BDO Foundation, the corporate social responsibility arm of BDO Unibank, volunteers extended a helping hand to people affected by Typhoon “Ineng,” which hit the country last August. Officers and staff from the BDO LaoagBalintawak branch spent a weekend visiting evacuation sites and distributing relief packs containing food, rice and water to 600 calamity-stricken families. Led by BDO Laoag-Balintawak branch head Marlane Manuel, the relief operation was supported by local government officials and concerned citizens. The corporate citizenship initiative is in line with the disaster response advocacy of BDO Foundation and its commitment to serve people affected by natural disasters or armed conf lict. As a followup to its relief efforts, the foundation pursues long-term rehabilitation and reconstruction programs in affected communities. Local government leaders placed Ilocos
Norte under a state of calamity as Ineng, a se- the province. vere tropical storm enhanced by the southwest A state of calamity was also declared in Laoag monsoon, brought heavy rainfall, caused mas- as floodwaters submerged the city and displaced sive flooding and damaged infrastructure in thousands of residents.
BDO volunteers in Laoag City pose after giving out relief goods to residents hit by Tropical Storm ‘Ineng.’
Life
Bernadette Lunas, Issue Editor manilastandardlife@gmail.com @manilastandardlife
HOUSEHOLD
@MStandardLIFE THURSDAY, OCTOBER 3, 2019
C1
PATERNAL PRESENCE:
How involved fathers affect their children PRESENT FATHER. Studies suggest fathers should also prioritize staying home and spending quality time with their children as it helps promote better psychological and emotional health of the latter.
T
HE traditional belief that every father’s primary role is to provide for the family has led to the phenomenon of “father absence.” Hands-on parenting often takes a backseat as dads spend more time working.
However, studies show dads are meant to be more than just a secondary parent, demonstrating the presence of an involved father has a great impact on early childhood development. “The Father Effect” is an umbrella term used in research studies to refer to the positive effects of paternal presence, or in simpler terms, an involved and engaged father. As family structures continue to evolve, there is not one fixed definition of a father, with paternal figures differing from family to family. Despite of this evolving structure, in the context of fatherhood, being involved and engaged means they have two important attributes—present and caring, writes Joshua Krisch on the parenting website fatherly.com. “When we had Lucia, I always wanted to be there for all her firsts. No matter how busy life gets, I always make a conscious effort to make time for her—so we can learn and play together—because nothing is more important than seeing my girl grow up,” shares basketball player and father JC Intal. No matter how fathers spend time with their children, it is scientifically proven that having a father figure who is present and caring can make a big difference during childhood development. Being present does not necessarily
JC, Bianca, and Lucia star in Similac GainSchool commercial that highlights dual parenting, wherein both father and mother are present for their children.
mean the father has to always be in close proximity. Sometimes, fathers live in a different household, are based in a different country, or are faced with other circumstances that cause them to be physically separated from their children. In this case, a brand of formula milk for kids suggests modern ways for fathers to remain engaged, such as video calls and writing letters. During these moments of contact, the way the mother and father interact also has a significant impact on the child, with studies showing that a good motherfather relationship helps promote better psychological and emotional health of the child. Aside from being present, fathers must also be involved—creating meaningful and impactful interactions with
their children. Acts as simple as playing outside in the rain, or teaching his child how to swim or ride a bike can allow a father to improve his child’s sense of independence, curiosity, and preparedness for the outside world. In summary, experts assert it’s not enough for a father to identify himself as the family’s breadwinner or provider to show he cares; his child needs to really feel his care. It is also important for fathers to stay home and spend quality time with their children. Similac GainSchool highlights the benefit of “dual parenting” through its latest television commercial featuring JC, with wife Bianca Gonzales and daughter Lucia. The campaign shows Bianca helping Lucia to grow up to be smart, and JC helping his daughter to grow up to be strong.
NGO renews commitment to assist children
MARKING its 50th year, nongovernment organization Tahanan Outreach Projects and Services, Inc. renews its commitment to assist children and families in Sta. Ana, Manila. “As we celebrate our golden year, we move on to meet new challenges. We would like to reinvent TOPS as a learning center, and implement new programs to be of better service to the community,” says TOPS president Valerie G. Agrava. Agrava is the grand niece of the late Justice Corazon Agrava who presided over and led women lawyers from the Judicial and Domestic Relations Court in creating a shelter that operates on a principle of tracing the roots of juvenile delinquency and preventing it through comprehensive and integrated human development. TOPS aims to provide assistance to children through youth-servicing and childcare projects funded by concerned citizens, organizations, funding agencies, and business corporations. Currently, the group maintains the Liwanag ng Tahanan Headstart program for pre-schoolers (aged 3-4) and free, computer-aided tutorial
Singaporean President Halimah Yacob (center) graces the opening of The Podium together with (from left) BDO Unibank president and chief executive Nestor Tan, Keppel Corp. chief executive officer Loh Chin Hua, BDO chairperson Teresita Sy-Coson, Keppel Corp. chairman Dr. Lee Boon Yang, SM Prime Holdings executive committee chairman Hans Sy, and Keppel Land chief executive officer Tan Swee Yiow.
The Podium reopening celebrates
PH-Singapore relations
TOPS officers (from left) Wilma Cua, Valerie Agrava, Eva Policar-Bautista, Teresita Sison, Teresita Geraldine Sison-Go, and Fides Cordero-Tan
classes that help assist high school students on English, Math, and Science subjects. “Scheduled to open next year, we will be putting up a formal school, starting with a kindergarten, and
work our way to the grade levels, in accordance with the DepEd K-12 curriculum,” shares Agrava. “Moreover, TOPS will be helping learners with special needs by offering Special Education classes.”
SINGAPOREAN President Halimah Yacob graced the opening of the expanded The Podium Mall in Ortigas, which also marked the 50 th anniversary of the Philippine-Singapore diplomatic relations. A joint venture between the Philippines’ BDO Unibank and Singapore’s Keppel Land Limited, the newly completed expansion showcased the strong ties, shared expertise, and successful collaboration between Philippine and Singapore industry leaders. Joining President Halimah were spouse, Mohamed Abdullah Alhabshee, and Singapore officials Indranee Rajah, second minister for finance and second minister for education; Dr. Koh Poh Koon, senior minister of state; and Singapore Ambassador to the Philippines Gerard Ho Wei Hong and deputy
chief of mission Zhou Suli. On hand to welcome the special guests were BDO chairperson Teresita Sy-Coson, SM Prime Holdings executive committee chairman Hans Sy, BDO president and chief executive Nestor Tan, Keppel Corp. chairman Dr. Lee Boon Yang, Keppel Corp. chief executive officer Loh Chin Hua, and Keppel Land chief executive Tan Swee Yiow, along with representatives from the Philippine government and members of the diplomatic and business community. Following the opening ceremony at The Podium Hall, President Halimah and guests toured the lifestyle and food pop-up fair Singaporium. A joint project of The Podium and Enterprise Singapore, the fair featured 17 Singaporean fashion, lifestyle, and food brands.
THURSDAY, OCT 3, 2019 Standard C2 TODAY Manila
(P1 Million) or more.
The Commission, however, may consider qualitative factors, depending on the circumstances, in identifying a significant subsidiary or division.
(ii) Financial statements of branch offices of foreign corporations licensed to do business in the Philippines by the Commission shall comply with the requirements of this Rule unless otherwise determined by the Commission as not applicable. REVISED SECURITIES REGULATION CODE (SRC) RULE 68 Table of Contents PART I. 1.
2.
GENERAL FINANCIAL REPORTING REQUIREMENTS
APPLICATION AND DEFINITION OF TERMS A.
Application of this Rule
1
B.
Definition of Terms Used in this Rule
2
GENERAL GUIDES TO FINANCIAL STATEMENTS PREPARATION A.
3.
Financial Reporting Framework
5
(i)
Large and/or Public Interest Entities
5
(ii)
Medium-Sized Entities
6
(iii)
Small Entities
8
(iv)
Micro Entities
10
B.
Responsibility for Financial Statements
10
C.
Form, Order and Terminology
13
D.
Presentation for Receipt of the Audited Financial Statements
14
QUALIFICATIONS AND REPORTS OF INDEPENDENT AUDITORS A.
Audit of Financial Statements by Independent Auditors
15
B.
Additional Requirements for Independent Auditors of SECRegulated Entities and Other Entities
15
(i)
Accreditation Categories
15
(ii) (iii)
17
(iv)
Scope and Limitation of Accreditation Accreditation Requirements for Individual Independent Auditors or Signing Partners Accreditation Requirements for Auditing Firms
(v)
Other Qualification Requirements
22
(vi)
Mutual Recognition Policy
22
(vii)
Operational Requirements
23
(viii) (ix)
Reportorial Requirements Rotation of External Auditors
24 25
(x)
Other Obligations of Accredited External Auditors
26
18 21
C.
Independence of Auditors
26
D.
Engagement of Independent Auditors
26
E.
Audit Reports of Independent Auditors
27
F.
Supplemental Written Statement of Auditor
28
4.
COMPARATIVE FINANCIAL STATEMENTS
28
5.
OTHER DOCUMENTS TO BE FILED WITH THE FINANCIAL STATEMENTS
29
PART II. ADDITIONAL REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC 1.
APPLICATION
32
2.
REGISTRATION OF SECURITIES PURSUANT TO THE ASEAN CAPITAL MARKET INTEGRATION
32
3.
AUDITOR’S OPINION ON FINANCIAL STATEMENTS
33
4.
RESPONSIBILITY FOR FINANCIAL STATEMENTS
33
5.
PERIODIC PRESENTATION
33
A.
Registration Statements
33
B.
Annual Reports
35
C.
Information Statements
36
6.
APPLICABILITY WITH OTHER REPORTS
36
7. 8. 9.
ADDITIONAL DISCLOSURE REQUIREMENTS INTERIM FINANCIAL STATEMENTS PRO FORMA FINANCIAL INFORMATION A. Applicability B. Prescribed Presentation
36 37 38 40
10.
CONSOLIDATED FINANCIAL STATEMENTS
45
1. 2. 3. 4.
PENALTIES TEST OF MATERIALITY RE-ISSUANCE OF FINANCIAL STATEMENTS REPEALING CLAUSE
46 47 50 50
5.
EFFECTIVITY AND TRANSITION
51
ANNEXES ANNEX 68-A
(iii) The submission of financial statements shall be required for all corporations and organizations registered with the Commission as of the fiscal year end including those newly incorporated during the said year. Corporations and organizations with a fiscal year end of 31 December must submit their annual financial statements in accordance with the annual schedule of filing of financial statements. For those with a fiscal year end other than 31 December, their annual financial statements shall be due within one hundred twenty (120) days after the end of their fiscal year.
B. Definition of Terms Used in This Rule (i) Unless otherwise used in a different context, the terms used in this Rule shall have the same meanings as defined in the accounting and auditing standards adopted by the Commission as part of this Rule. (ii) Financial reporting framework means a set of accounting principles, standards, interpretations and pronouncements that must be adopted in the preparation and submission of the annual financial statements of a particular class of entities, as defined in this Rule by the Commission. This includes, but isnot limited to, the Philippine Financial Reporting Standards (PFRSs), the Philippine Financial Reporting Standard for Small and Medium-Sized Entities (PFRS for SMEs) and the Philippine Financial Reporting Standard for Small Entities (PFRS for SEs).
(b) Misappropriation of assets;
(d) Recording of transactions without substance;
ANNEX 68-E
Schedule of Financial Soundness Indicators
66
(i) Override of internal controls.
ANNEX 68-F
Schedule for Financing Companies
67
ANNEX 68-G
Schedule for Mutual Funds
68
ANNEX 68-H
Schedule for Investment Houses
69
ANNEX 68-I
Schedule for Listed Companies with a Recent Offering of Securities to the Public
70
ANNEX 68-J
Schedules
71
ANNEX 68-K
Additional Disclosures in the Notes to Financial Statements
75
d) Branch offices/representative offices of non-stock foreigncorporations with total assets in the equivalent amount of One Million Pesos (P1 Million) or more; and e) Regional operating headquarters of foreign corporations with total revenues in the equivalent amount of One Million Pesos
(iii) Those grantees or recipients of public funds; and
(c) Large and/or public interest entities shall use the PFRSs, as adopted by the Commission, as their financial reporting framework. However, a set of financial reporting framework other than the full PFRSsmay be allowed by the Commission for certain sub-class (e.g., banks, insurance companies) of these entities upon consideration of the pronouncements or interpretations of any of the bodies listedinSection 1 (B) (ii) above. (d) In the presentation of their PFRSs financial statements, all banks licensed by the BSP shall use as reference the account names/titles in the uniform chart of accounts per BSP’s financial reporting package. A reconciliation schedule shall be attached to the said financial statements showing the difference between thepresentation,recognition and measurement differences between the PFRSs and the BSP’s financial reporting framework. This schedule need not be covered by an Auditor’s Report. (ii) Medium-Sized Entities (a) Medium-sized entities are those that meet all of the following criteria: (1) Total assets of more than One Hundred Million Pesos (P100 Million) to Three Hundred Fifty Million Pesos (P350 Million) or total liabilities of more than One Hundred Million Pesos (P100 Million) to Two Hundred Fifty Million Pesos (P250 Million). If the entity is a parent company, the said amounts shall be based on the consolidated figures;
(f) Misrepresentation in, or intentional omission from,the financial statements of events, transactions or other significant information;
(h) Forgery; or
Branch offices/representative offices of stock foreign corporations with assigned capital in the equivalent amount of One Million Pesos(P1Million) or more;
(ii) Those engaged in nationalized or partly nationalized activities;
(e) Intentional misapplication of accounting principles relating to amounts, classification, manner of presentation, or disclosure;
65
c)
(i) Those grantees of legislative franchises;
(a) Manipulation, falsification or alteration of accounting records or supporting documentation from which the financial statements are prepared;
Reconciliation of Retained Earnings Available for Dividend Declaration
liabilities more as and any may be
(4) Such other corporations that the Commission may consider in the future as imbued with public interest regardless of the lack of a requirement to obtain a secondary license from the Commission and may fall under the following criteria:
(v) Fraud means an intentional act by one or more individuals among management, employees, those charged with governance, or third parties involving the use of deception to obtain an unjust or illegal advantage that results in a misrepresentation of financial statements, which reduces or increases therelated accounts by ten per cent (10%) or more. For issuers of securities to the public and public companies as identified under Section 3 (B) (i) (a) (1), (2) and (3) of Part I of this Rule, the test to be used shall be five per cent (5%).It may involve:
ANNEX 68-D
b) Non-stock corporations with total assets or total of Six Hundred Thousand Pesos (P600,000) or prescribed under the Revised Corporation Code of its subsequent revisions or such amount as subsequently prescribed;
(3) Are in the process of filing their financial statements for the purpose of issuing any class of instruments in a public market; or
(d) Inconsistency of accounting policies with the applicable financial reporting framework.
(g) Collusion;
a) Stock corporations with total assets or total liabilities of Six Hundred Thousand Pesos (P600,000) or more as prescribed under the Revised Corporation Code of the Philippines (Revised Corporation Code) and any of its subsequent revisionsor such amount as may be subsequently prescribed;
(2) Are required to file financial statements under Part II of SRC Rule 68; or
(c) Unintentional misapplication of accounting principles and accounting policies; or
58
This Rule (together with subsequent official pronouncements, interpretations and rulings on accounting and reporting matters, which may be issued by the Securities and Exchange Commission, herein referred to as the Commission, from time to time) states the requirements applicable to the form and content of financial statements required to be filed with the Commission by corporations which meet the threshold, as follows:
(1) Are holders of secondary licenses issued by regulatory agencies; or
Subsequent issuances shall be made by the Commission to specifically identify corporations which it may consider as imbued with public interest.
Schedules for Non-Stock, Non-Profit Organizations
(i)
(b) For purposes of this Rule, public interest entities are those that meet any of the following criteria:
(b) Oversight or misinterpretation of facts;
ANNEX 68-C
A. Application of this Rule
(a) For purposes of this Rule, large entitiesare those with total assets of more than Three Hundred Fifty Million Pesos (P350 Million) or total liabilities of more than Two Hundred Fifty Million Pesos (P250 Million).
(iv) Those regulated by other government agencies other than the BSP or IC.
57
1. APPLICATION AND DEFINITION OF TERMS
(i) Large and/or PublicInterest Entities
(a) Mathematical or clerical mistakes in the underlying records and accounting data;
Supplemental Written Statement of Auditor
GENERAL FINANCIAL REPORTING REQUIREMENTS
The financial statements that shall be prepared and filed by entities covered by this Rule shall be in accordance with the financial reporting framework as prescribed under this Section.
(iv) Error means an unintentional mistake in the financial statements which reduces or increases therelated accounts by ten per cent (10%) or more. For issuers of securities to the public and public companies as identified under Section 3 (B) (i) (a) (1), (2) and (3) of Part I of this Rule, the test to be used shall be five per cent (5%). It may involve:
ANNEX 68-B
PART I
A. Financial Reporting Framework
(iii) Entity, when used in this Rule, refers to a juridical person or a corporation registered under the Revised Corporation Code.
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This Rule is part of the Implementing Rules and Regulations (IRR) of the Securities Regulation Code (SRC), the latest revision of which was approved by the Commission en banc on 19 August 2019.
2. GENERAL GUIDES TO FINANCIAL STATEMENTS PREPARATION
The Commission shall have the authority, subject to prior consultation with concerned parties, to prescribe the most appropriate requirement that shall form part of the applicable financial reporting framework of corporations covered by this Rule. In prescribing the applicable financial reporting framework for a particular class or sub-class of entities covered by this Rule, the Commission shall consider the pronouncements and interpretations of the Philippine Financial Reporting Standards Council. However, a financial reporting framework other than the PFRSs that complies with the regulatory reportorial requirements of the concerned regulatory agency such as the Bangko Sentral ng Pilipinas (BSP) or the Insurance Commission (IC) may be allowed by the Commission.
Quality of Audit Work of Applicants for Accreditation and Accredited Independent Auditors
REVISED SECURITIES REGULATION CODE (SRC) RULE 68
(xii) Related accounts pertain to the classification and aggregation on the face of the financial statements such as current assets, non-current assets, current liabilities, noncurrent liabilities, equity items, revenues, cost of sales, cost of service, administrative expenses or operating expenses, as the case may be.
(iv) Additional requirements for financial statements of corporations covered under Section 17.2 of the SRC are set forth under Part II of this Rule.
(c) Suppression or omission of the effects of transactions from records or documents;
PART III. PENALTIES AND OTHER GENERAL IMPLEMENTING PROVISIONS
(xi) SEC Oversight Assurance Review (SOAR) Inspection Program refers to an on-site review of the quality control policies and proceduresof the accredited auditing firms auditing companies with equity or debt securities listed in an Exchange and review of portions of the audit work of selected audit engagements from time to time. The Commission, however, is not precluded fromsubjecting the independent auditors of other companies for inspection as the circumstances would warrant.
(vi) Gross Negligence means wanton or reckless disregard of the duty of due care in complying with Philippine Standards on Auditing (PSA).
(2) Are not required to file financial statements under Part II of SRC Rule 68; (3) Are not in the process of filing their financial statements for the purpose of issuing any class of instruments in a public market; and (4) Are not holders of secondary licenses issued by regulatory agencies. (b)
(vii) Issuer is any entity authorized by the Commission to offer to sell, sell or promote the sale to the public of its equity, bonds, instruments of indebtedness and other forms of securities.
Medium-sized entities shall use as their financial reporting framework the PFRS for SMEs as adopted by the Commission. However, the following medium-sized entities shall be exempt from the mandatory adoption of the PFRS for SMEs and may instead apply, at their option, the full PFRSs:
(viii) Key Audit Partnerspertain to the engagement partner (or in most cases, the signing partner), the engagement quality control reviewer and other audit partners, if any, on the engagement team who make key decisions or judgments on significant matters with respect to the audit of the financial statements on which the firm will express an opinion. Depending upon the circumstances and the role of the individuals on the audit, “other audit partners” might include, for example, audit partners responsible for significant subsidiaries or divisions, as defined in paragraph (x) below.
(1) An SME which is a subsidiary of a parent company reporting under the full PFRSs;
(ix) Material Information, for purposes of this Rule, means information whose omission or misstatement could influence the economic decisions of its users.
(4) An SME which is a branch office or regional operating headquarter of a foreign company reporting under the full IFRSs;
(x) Significant Subsidiary means a subsidiary, including its subsidiaries, which meets any of the following conditions:
(5) An SME which has a subsidiary that is mandated to report under the full PFRSs;
(a) The parent company’s investments in and advances to its subsidiaries exceed twenty per cent (20%) of the consolidated assets as of the end of the most recently completed fiscal year.
(6) An SME which has a short-term projection that shows that it will breach the quantitative thresholds set in the criteria for an SME. The breach is expected to be significant and continuing due to its long-term effect on the company’s asset or liability size;
(2) An SME which is a subsidiary of a foreign parent company which will be moving towards International Financial Reporting Standards (IFRSs) pursuant to the foreign country’s published convergence plan; (3) An SME, either as a significant joint venture or associate, which is part of a group that is reporting under the full PFRSs;
The parent company and its subsidiaries’ investments in and advances to the other subsidiaries exceed twenty percent (20%) of the consolidated assets as of the end of the most recently completed fiscal year; or
(7) An SME which has a concrete plan to conduct an initial public offering within the next two (2) years; (8) An SME which has been preparing financial statements using full PFRSs and has decided to liquidate;
(b) The subsidiary’s total assets, revenues or net income (loss) (after intragroup eliminations) exceed twenty per cent (20%) of the total consolidated assets, revenues or net income (loss) as of the most recently completed fiscal year. ********** Computational note: For purposes of making the prescribed income test, the following guidance shall be applied: [1] When a loss has been incurred either at the consolidated level or at the stand-alone financial statements of the tested subsidiary, but not both, the income or loss of the tested subsidiary shall be excluded from the consolidated income for purposes of the computation. [2]
Where the test involves combined entities, as in the case of determining whether summarized financial data shall be presented, entities reporting losses shall not be aggregated with entities reporting income. **********
(9) Such other cases that the Commission may consider as valid exceptions from the mandatory adoption of PFRS for SMEs. (c)
An SME availing itself of any of the above-mentioned grounds for exemption shall provide a discussion in its Notes to Financial Statements of the facts supporting its adoption of the full PFRSs instead of the PFRS for SMEs.
(d)
If an SME that uses the PFRS for SMEs in a current year breaches the floor or ceiling of the size criteria at the end of that current year, and the event that caused the change is considered “significant and continuing”, the entity shall transition to the applicable financial reporting framework in the next accounting period. If the event is not considered “significant and continuing”, the entity can continue to use the same financial reporting framework it currently uses.
(e)
The determination of what is “significant and continuing” shall be based on management’s judgment taking into consideration
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presentation upon completion of such audit. Signature______________________ Printed Name of the Chairman of the Board __________________
(iii) Small Entities
Signature ______________________
(a) Small entities are those that meet all of the following criteria:
Printed Name of Chief Executive Officer ______________________
(1) Total assets of between Three Million Pesos (P3 Million) to One Hundred Million Pesos (P100 Million) or total liabilities between Three Million Pesos (P3 Million) to One Hundred Million Pesos (P100 Million). If the entity is a parent company, the said amounts shall be based on the consolidated figures;
Signature ______________________ Printed Name of Chief Financial Officer ______________________ Signed this ____ day of ________________________ (iii) The SMR shall cover the comparative financial statements and shall indicate therein such periods.
(2) Are not required to file financial statements under Part II of SRC Rule 68;
(iv) The SMR shall be attached to the consolidated financial statements, if applicable, and to the stand-alone financial statements of the company.
(3) Are not in the process of filing their financial statements for the purpose of issuing any class of instruments in a public market; and (4) Are not holders of secondary licenses issued by regulatory agencies. (b) Small entities shall use as their financial reporting framework the PFRS for SEs as adopted by the Commission. However, entities who have operations or investments that are based or conducted in a different country with different functional currency shall not apply this Framework and should instead apply the full PFRSs or PFRS for SMEs. The following small entities shall also be exempt from the mandatory adoption of the PFRS for SEs and may instead apply, as appropriate, the full PFRSs or PFRS for SMEs: (1) A small entity which is a subsidiary of a parent company reporting under the full PFRSs or PFRS for SMEs;
(c) Any additional information that the auditor may request from management and when appropriate, from those tasked to perform governance.
(6) A small entity which has been preparing financial statements using full PFRSsor PFRS for SMEs and has decided to liquidate;
(ix) Management shall provide unrestricted access to records and personnel of the entity from whom the auditor deems it necessary to obtain audit evidence.
(7) Such other cases that the Commission may consider as valid exceptions from the mandatory adoption of PFRS for SEs.
All publicly-listed companies, as recommended under the SEC Code of Corporate Governance, shall establish a system that captures relevant information on related party transactions. The financial statements shall contain all information on such transactions as required under the financial reporting framework and under such guidelines as may be issued by the Commission. It shall include a disclosure on whether or not the corporation has an approval requirement and limits on the amount and extent of related party transactions.
(c) A small entity availing of any of the above-mentioned grounds for exemption shall provide a discussion in its Notes to Financial Statements of the facts supporting its adoption of the full PFRSs or PFRS for SMEs instead of the PFRS for SEs. (d) If a small entity that uses the PFRS for SEs in a current year breaches the floor or ceiling of the size criteria at the end of that current year, and the event that caused the change is considered “significant and continuing”, the entity shall transition to the applicable financial reporting framework in the next accounting period. If the event is not considered “significant and continuing”, the entity can continue to use the same financial reporting framework it currently uses.
(xi) The Board of Directors or its Audit Committee, if applicable, shall determine and ensure itself of the independence and competence of the company’s external auditor. For entities which are covered under the SEC Code of Corporate Governance, the scope, expenses of the audit, audit fees and non-audit services of the external auditor shall be approved by the Board of Directors or its Audit Committee, if applicable.
(e) The determination of what is “significant and continuing” shall be based on management’s judgment taking into consideration relevant qualitative and quantitative factors. As a general rule, twenty per cent (20%) or more of the consolidated total assets would be considered significant.
The company shall neither allow nor require its independent auditor to prepare its financial statements and/or any of its supporting documents. The independent auditor’s duty is to conduct an independent audit of the company’s financial statements and supporting documents pursuant to the prescribed auditing standards.
(iv) Micro Entities
To determine compliance by the company’s management with its representations in the SMR, this Section and other relevant provisions of this Rule, the Commission may examine the company’s books, records, systems and controls pursuant to the guidelines set by the Commission. For this purpose, the following requirements shall be observed:
(a) Micro entities are those that meet all of the following criteria: (1) Total assets and liabilities are below Three Million Pesos (P3 Million); (2) Are not required to file financial statements under Part II of SRC Rule 68;
(a) All corporations covered by this Rule shall retain copies of all the records and documents supporting the preparation of their financial statements, regardless of the form in which they are stored, within a period of ten (10) years reckoned from the day following the deadline in filing the financial statements, or such longer time until the final closure or judgment of a pending investigation or case against the corporation, if any.
(3) Are not in the process of filing their financial statements for the purpose of issuing any class of instruments in a public market; and (4) Are not holders of secondary licenses issued by regulatory agencies
(b) The corporation shall inform its external auditor in writing about an investigation or a case involving its financial records and documents, within ten (10) working days from the date of the notice to the corporation.
(b) Micro entities have the option to use as their financial reporting framework either the income tax basis or PFRS for SEs, provided however, that the financial statements shall at least consist of the Statement of Management’s Responsibility (SMR), Auditor’s Report, Statement of Financial Position, Statement of Income and Notes to Financial Statements, all of which cover the two (2)-year comparative periods, if applicable. (c) If an entity uses a basis of accounting other than the PFRS for SEsin the preparation of its financial statements, its management shall assess the acceptability of such basis of accounting in the light of the nature of the entity and the objective of the financial statements, or the requirements of the law or regulators.
(c) If the records of the corporation are in electronic form, the same shall be acceptable provided that there is compliance with the requirements of the Electronic Commerce Act of 2000 [Republic Act (R.A.) No. 8792] and its IRR. C. Form, Order and Terminology (i) This Section shall be applicable to financial statements filed with the Commission for all corporations covered by this Rule.
In the event where an entity breaches the prescribed threshold in terms of total assets or total liabilities and thus it falls within a different classification, the Audited Financial Statements (AFS) of said entity shall be prepared in accordance with the higher framework
(ii) Financial statements shall be filed in such form and order and shall use such generally accepted terminology as will best indicate their significance and character in the light of the provisions applicable thereto. The information required with respect to any statement shall be furnished as a minimum requirement to which shall be added such further material information as is necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.
The Commission may from time to time prescribe other criteria for eachof the above-stated financial reporting framework. B. Responsibility for Financial Statements (i)
The financial statements filed with the Commission are primarily the responsibility of the management of the reporting company, and accordingly, the fairness of the representations made therein is an implicit and integral part of the management’s responsibility. The Board of Directors, in discharging its responsibilities, reviews and approves the financial statements before these are submitted to the stockholders.
All money amounts required to be shown in financial statements may be expressed in whole currency units (e.g. Philippine Pesos) or multiples thereof, as appropriate: provided, that when stated in other than whole currency units, an indication to that effect is inserted immediately beneath the caption of the statement or schedule, at the top of the money columns, or at an appropriate point in narrative material.
(ii) The SMR for Financial Statements that shall be attached to the financial statements shall read as follows:
Negative amounts shall be shown in a manner which clearly distinguishes the negative attribute. When determining methods of display, consideration shall be given to the limitations of reproduction and scanning or microfilming processes.
STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS
The chronological arrangement of data may be with the most recent date to the right or to the left. However, the ordering used shall be consistent in all financial statements, tabular data and footnote data in the document.
The management of (name of reporting company) is responsible for the preparation and fair presentation of the financial statements including the schedules attached therein, for the year(s) ended (date), in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors (Trustees) is responsible for overseeing the Company’s financial reporting process. The Board of Directors (Trustees) reviews and approves the financial statements including the schedules attached therein and submits the same to the stockholders or members. (Name of auditing firm), stockholders, has audited accordance with Philippine stockholders or members,
the independent auditor appointed by the the financial statements of the company in Standards on Auditing, and in its report to the has expressed its opinion on the fairness of
The financial statements, other than the consolidated financial statements, shall be duly received by the Bureau of Internal Revenue (BIR) or its authorized banks, unless the BIR allows an alternative proof of submission for its authorized banks (e.g. bank slips) or prohibits acceptance of the financial statements in certain cases (e.g., on-going examination). D.
B. Additional Requirements for Independent Auditors of SECRegulated Entities and Other Entities (i) Accreditation Categories
(a) Group A
(b) All information, such as records and documentation, and other matters that are relevant to the preparation and presentation of the financial statements. These include schedules, computations, projections, reconciliations, reports, analyses and other financial information; and
(5) A small entity which has a short-term projection that shows that it will breach the quantitative thresholds set in the criteria for a small entity. The breach is expected to be significant and continuing due to its long-term effect on the Company’s asset size;
All registered corporations covered by this Rule shall have independent auditors who are duly registered and licensed with the Board of Accountancy (BOA) of the Professional Regulation Commission (PRC) in accordance with the rules and regulations of said professional regulatory bodies.A corporation with financial statements audited by an independent auditor who is not registered and licensed with the BOA shall be subject to appropriate fines and shall be immediately referred to the PRC/BOA for the appropriate penalties.
(vi) In case of branch offices, representative offices or regional operating headquarters of foreign corporations, the SMR shall be signed by its local manager who is in charge of its operations within the Philippines. The third and fourth paragraph of the SMR may be deleted since the Philippine branch does not have any local Board of Directors or Trustees.
(a) Complete set of financial statements as prescribed under the applicable financial reporting framework of the entity, and if applicable, schedules and reconciliation forming part of the financial statements required under the existing rules of the Commission;
(4) A small entity which is a branch office or regional operating headquarter of a foreign company reporting under the full IFRSs or IFRS for SMEs;
A. Audit of Financial Statements by Independent Auditors
The accreditation of independent auditors serves as a quality control mechanism or quality assurance review by the Commission on the work of the accredited external auditors.
(viii) In the audit of the company’s financial statements, management shall provide the external auditor with the following documents:
(3) A small entity, either as a significant joint venture or associate, is part of a group that is reporting under the full PFRSs or PFRS for SMEs;
3. QUALIFICATIONS AND REPORTS OF INDEPENDENT AUDITORS
(v) The Chairman of the Board, Chief Executive Officerand Chief Finance Officershall all sign the SMR as prescribed by this Rule. If provided in the company’s by-laws, persons holding equivalent positions as that of the aforementioned signatories shall sign the statement. Failure of any of the prescribed signatories to sign the SMR constitutes a material deficiency in the financial statements.
(vii) The independent auditor’s responsibility for the financial statements required to be filed with the Commission is confined to the expression of his opinion on such statements which he has audited.
(2) A small entity which is a subsidiary of a foreign parent company which will be moving towards IFRSs or IFRS for Small and Medium-sized Entities (IFRS for SMEs) pursuant to the foreign country’s published convergence plan;
for any material deficiency or misstatement that may be found upon evaluation of the specific contents thereof.
Presentation for Receipt of the Audited Financial Statements (i) Financial statements required to be submitted by corporations shall be accompanied by an Auditor’s Report issued by an independent auditor and presented in accordance with the requirements of this Rule. Failure to comply with any of the formal requirements under this Rule including the prescribed qualifications for independent auditors shall be considered a sufficient ground for the denial of the receipt ofthefinancialstatements or the imposition of applicable penalties under the Scale of Fines or pertinent Memorandum Circulars (MCs) issued by the Commission. (ii) The acceptance and receipt by the Commission of the financial statements shall be without prejudice to the fines that may be imposed
The following entities shall have independent auditors accredited by the Commission under the appropriate category:
(1) Issuers of registered securities which have sold a class of securities pursuant to a registration under Section 12 of the SRC except those issuers of registered timeshares, proprietary and non-proprietary membership certificates which are covered in Group B. This category shall also cover corporations applying for the registration of their securities; (2) Issuers with a class of securities listed for trading in an Exchange; (3) Public companies or those which have total assets of at least Fifty Million Pesos (P50 Million) or such other amount as the Commission shall prescribe, and having two hundred (200) or more holders each holding at least one hundred (100) shares of a class of its equity securities; (4) Clearing agency and clearing agency as depository; and (5) Stock and securities exchange/s and other SelfRegulatory Organizations. (b) Group B (1) Issuers of registered timeshares, proprietary and nonproprietary membership certificates, and corporations applying for the registration of such securities; (2) Investment houses; (3) Brokers and dealers of securities; (4) Investment companies that are not in the process of registering securities or have no registered securities yet; (5) Government securities eligible dealers; (6) Universal banks registered as underwriters of securities; (7) Investment company advisers; (8) Special purpose corporations registered under the Securitization Act of 2004 and its implementing rules; and (9) Such other corporations which may be required by law to be supervised by the Commission. (c) Group C (1) Financing companies whoseassets in thepreceding year are above Ten Million Pesos (P10 Million); (2) Lending companies whose assets in the preceding year are above Five Million Pesos (P5 Million); (3) Transfer agents; (4) Non-stock, non-profit corporations including foundations which solicit or receive annual donations or contributions and/or with fund balance amounting to more than Twenty-Five Million Pesos (P25 Million) and One Hundred Million Pesos (P100 Million), respectively, over the preceding three (3) years, or such higher amount that the Commission may set through order or guidelines. A non-stock, non-profit corporation that is already scoped in by the above requirement can only be excluded if its annual donations or contributions and/or fund balance fall below Twenty-Five Million Pesos (P25 Million) and One Hundred Million Pesos (P100 Million), respectively, over the preceding three (3) years; and (5) Such other corporations that the Commission may consider as imbued with public interest regardless of the lack of a requirement to obtain a secondary license from the Commission. (ii) Scope and Limitation of Accreditation (a) The auditing firms including their respective signing partners who shall be engaged by companies under Groups A, B and C must be accredited by the Commission in accordance with this Rule. (b) Sole practitioners may be accredited by the Commission and may be engaged by Group C companies provided that such auditors have proven their capacity and resources for establishing and implementing adequate audit quality controls in accordance with applicable standards and such other rules and regulations as the Commission may prescribe. Sole practitioners, however, are expected to convert from a Sole Proprietorship to a Partnership structure by 30 June 2022 in order to continue being accredited by the Commission. (c) The Commission shall not be liable for any liability or loss that may arise from the selection and engagement of the said accredited independent auditor and/or auditing firm engaged by a corporation for audit. (d) The accreditation of an independent auditor and/or auditing firm shall expire or be automatically delisted after three (3) years (or such number of years as may later be determined by the Commission) from the date of approval of the accreditation, unless an application for its renewal is filed not later than thirty(30) business days before its expiration. (e) The evaluationon the financial statements, which are randomly selected using a risk-based approach, of the applicant’s corporate clients during the processing of his application covers only the companies’ compliance with the applicable financial reporting framework and such is made only on the face of the financial statements and attached schedules and not its supporting documents. The Commission, however, is not precluded from obtaining copies of the audit work papers to support the auditor’s responses to the comments on the evaluated AFS. (f) The Commission shall subjecttoSOARInspection Program the accredited auditing firms engaged by companies with equity or debt securities listed in an Exchange and reviewportions of these firms’ audit work for the listed companies. The Commission, however, is not precluded from subjecting the Independent Auditors of other companies for inspection as the circumstances would warrant. (g) The accreditation of an auditing firm, partner or sole practitioner shall be effective unless any of the following occurs: (1) the auditing firm or auditor’s request for withdrawal of
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accreditation is approved by the Commission; (2) the accreditation is suspended or revoked by the Commission, after due notice and hearing, for failure to comply with the SOAR requirements or for such other grounds as provided in this Rule; or (3) the BOA registration and license have expired and no application for renewal has been filed with the BOA. (h) Accreditation under Group A shall be considered a general accreditation which shall allow the independent auditor to also audit companies under Groups B and C. Independent auditors with Group B accreditation can likewise audit companies under Group C. Only accredited partners, with accreditation under the appropriate group category, are allowed to certify financial statements of the firm’s clients with secondary licenses. Independent auditors granted with Groups A and B accreditation are expected to handle audit of entities belonging to these categories to serve the purposes of their Groups A or B accreditation.Independent auditors granted with Group A accreditation and with no audit clients listed in an Exchange shall be distinguished from those with audit clients listed in an Exchange. (iii) Accreditation Requirements for Individual Independent Auditors or Signing Partners (a) General Requirements (1) The applicant shall be registered and licensed with the BOA; (2) At the time of application, the applicant shall have at least five (5) years of experience in external audit. The audit experience shall have been acquired as a manager or partner or its equivalent; (3) The applicant shall have adequate policies and procedures related to the elements of a system of quality control provided for under PSA No. 220 (Quality Control for an Audit of Financial Statements), Philippine Standard on Quality Control (PSQC) No. 1 (Quality Controls for Firms that Perform Audits and Reviews of Financial Statements, Other Assurance and Related Services Engagements), and their amendments. These shall be reflected in his Quality Assurance Manual (QAM). The submitted QAM is subject to the evaluation by the Commission. (4) An application for accreditation of an external auditor shall not be recommended for approval, if after due notice and hearing, it could be established that: (i) The auditor allowed the perpetuation of any violation of the requirements of the Revised SRC Rule 68 by issuing a report with unqualified opinion on the relevant financial statements despite discovery of the violation during the audit, or if not discovered, the same should have been identified if appropriate audit procedures were performed; and (ii) The violation subject of this paragraph shall pertain to a decision or judgment that has attained finality. (b) Specific Requirements (1) The applicant shall have sufficient knowledge on the regulatory requirements, operations and functions of companies under Group A, B or C for which he is applying for accreditation; (2) The applicant shall have a total of thirty (30) units of training and seminars (or such number of units as may later be determined by the Commission) on the following topics within the last three (3) years: ten (10) units on PFRS, ten (10) units on PSA, and ten (10) units on laws and regulations being implemented by the Commission. The said training should have been approved by the PRC Continuing Professional Development Council (CPDC), or organized or approved by the Commission;
The auditing firm shall submit a certification on the number of all ofits personnel or staff.
(30) business days from the submission of his findings to the entity, file a report (SEC Form Au-Rep) to the Commission.
(d) The auditing firm shall submit a disclosure under oath attesting to its independence (SEC MC No.2, Series of 2016).
(c) The following findings on the entity shall be disclosed by the Audit Committee,or if there is no such committee, by the company’s Chairman of the Board, to the Commission:
(e) Application documents (1) For initial accreditation, a notarized application form (SEC Form AuF-002) shall be signed by the managing partner of the auditing firm and shall be submitted to the Commission, together with the supporting documents prescribed in SEC Form AuF-002. (2) The accreditation may be renewed by filing a notarized renewal application form (SEC Form AuF-002-R) together with the prescribed supporting documents. In addition to the said documents, the firm must show proof that it is engaged or had been engaged for the audit of a company under the category that it was previously accredited for and under which it is applying for renewal. In case the firm renewing its accreditation was not engaged in the audit of a company under the category that the firm was previously accredited, the firm should show proof of continuing compliance with all the requirements enumerated in Section 3(B)(iv)(a) to (d) of Part I of this Rule. (3) Applications for initial or renewal accreditation of auditing firms shall be assessed with the appropriate filing fee as indicated in SEC MC No. 3, Series of 2017 or subsequent circulars issued by the Commission. (v) Other Qualification Requirements In addition to the above-stated accreditation requirements, the Commission may prescribe through subsequent issuances, other qualification requirements and supporting documents as it may consider necessary to provide higher assurance on the competence and independence of auditors accredited by the Commission. (vi) Mutual Recognition Policy (a) The mutual recognition policy, as prescribed in the Memorandum of Agreement between and among the Commission, BOA, BSP and IC and any of its subsequent amendments, covering auditors of Group C companies is subject to the BSP restriction that for banks and their subsidiaries and affiliate banks; quasi-banks; trust entities; non-stock savings and loan associations and their subsidiaries and affiliates engaged in allied activities; and other financial institutions which, under special laws, are subject to the BSP’s consolidated supervision, only one (1) independent auditor or auditing firm shall audit their individual and consolidated financial statements. (b) The existing mutual recognition policy between and among financial regulators is limited to compliance by applicants with the basic qualification and documentary requirements. Special requirements of each agency must still be observed by applicant-external auditors. This is without prejudice, however, to any subsequent agreement between and among the Commission and other financial regulators to centralize into one unit all of their accreditation processes and requirements. (vii) Operational Requirements All auditing firms and sole practitioners holding a certificate of accreditation from the Commission shall comply with the following requirements: (a) They shallstrictly observe the Code of Ethics for Professional Accountants as adopted by the BOA and PRC and such other standards as may be adopted by the Commission. (b) They shall comply with the following: (1) Terms of the engagement letter and its undertakings;
(3) The quality of audit work based on the evaluation of the financial statements of clients shall meet the prescribed level under Annex 68-A of this Rule;
(2) The PSA and other issuances of the Auditing and Assurance Standards Council (AASC) and the Commission;
(4) At the time of application, the applicant shall have the following track record:
(3) Applicable provisions of this Rule and other relevant regulations and circulars of the Commission; and
(i) For Group A applicant, he shall have had a minimum of five (5) corporate clients with total assets of at least Fifty Million Pesos (P50 Million) each, or such amount as may be prescribed by the Commission; (ii) For Group B, he shall have had a minimum of three (3) corporate clients with total assets of at least Twenty Million Pesos (P20 Million) each, or such amount as may be prescribed by the Commiss (iii) For Group C, he shall have had a minimum of three (3) corporate clients with total assets of at least Five Million Pesos(P5 Million) each, or such amount as may be prescribed by the Commission. (c) Application Documents
(4) Other pertinent laws, rules and regulations.
The submitted QAM is subject to the evaluation by the Commission. For Groups A or B, the highest level of quality assurance procedures within the auditing firm are required in order to ensure that matters like proper consultation policies, concurring reviews and independence monitoring are in place.
(e) The independent auditor shall document management’s explanation and/or corrective action taken regarding his adverse findings. The same shall be included in the report mentioned under item (b) in the previous page. (f) The engagement contract between the company and the independent auditor shall contain a provision that the disclosure of information by the independent auditor to the Commission shall not constitute a breach of confidentiality nor shall it be ground for civil, criminal or disciplinary proceedings against the independent auditor. (ix) Rotation of External Auditors The independent auditors or in the case of an auditing firm, key audit partners, as defined under Section1 (B) (viii) of Part I of this Rule, of the aforementioned SEC-regulated entities under Groups A to C, except for non-stock, non-profit corporations, shall comply with the provisions on long association of personnel (including partner rotation) with an audit client as prescribed in the Code of Ethics for Professional Accountants in the Philippines as adopted by the BOA and PRC and such other standards as may be adopted by the Commission. (x) Other Obligations of Accredited External Auditors In addition to the requirements in the preceding provisions, the Commission, through subsequent issuances, may prescribe other obligations of accredited external auditors as it may consider necessary to improve transparency, audit quality and independence of external auditors. C. Independence of Auditors The term independent auditor or external auditor refers to an auditor who fully meets the requirements of independence as provided for in the Code of Ethics for Professional Accountants in the Philippines and in this Rule. D. Engagement of Independent Auditors (i) The company through its Board of Directors or Audit Committee, if applicable, shall conduct due diligence in confirming the personal identification and professional qualifications of the independent auditor whose services it will engage. (ii) Prior to engagement, the company shall require the independent auditor to present a copy of his/her professional license from the PRC and the Certificate of Accreditation issued to him/her by the BOA as sole independent auditor and to the auditing firm if he is a partner thereof. (iii) The company shall confirm the authenticity of the BOA Certificate of Accreditation by checking the latest list of accredited practitioners issued by the BOA. (iv) In addition to the above, regulated entities shall observe the following procedures prior to the engagement of an independent auditor:
(v) Preliminary meetings with the management and the exit conference shall be attended to personally by the independent auditor or by the handling partner or engagement manager, in case of an auditing firm.
(f) They shall implement their respective QAM that is in accordance with the requirements of existing auditing standards.
If the records of the auditing firm are in electronic form, the same shall be acceptable provided that there is compliance with the requirements of the Electronic Commerce Act of 2000 (R.A. No. 8792) and its IRR.
(c) It shall have adequate policies and procedures related to the elements of a system of quality control provided for under PSA No. 220, PSQC No. 1, and their amendments. These shall be reflected in the QAM of the auditing firm.
(d) The independent auditor shall submit his findings to the client-company’s Audit Committee or Board of Directors, as applicable. The adverse findings shall be discussed by the independent auditor with the said body in order to preserve the concerns of the supervisory authority and independent auditors regarding the confidentiality of the information.
(e) They shall maintain the prescribed quality of audit work under Annex 68-A of this Rule.
(2) The accreditation may be renewed by filing a notarized renewal application form (SEC Form ExA-001-R) together with the prescribed supporting documents. In addition to the said documents, the applicant must show proof that he is engaged or had been engaged for the audit of a company under the category that he was previously accredited for and under which he is applying for renewal.
(b) At the time of application and during the effectivity of its accreditation, it shall have at least two(2) signing independent auditors who are accredited under the same category as the auditing firm is applying for;
(5) Material weaknesses in internal control which may lead to financial reporting problems.
(b) The authenticity of the said certificate shall be verified against the official list of accredited auditors and auditing firms.
They shall inquire with the management as to whether there is an ongoing investigation or case against the company and require the client corporation to inform them, in writing, about an investigation or a case against the company within ten (10) working days from the date of notice to the corporation.
(a) The auditing firm shall be accredited with the BOA;
(4) Any finding to the effect that the consolidated assets of the company, on a going concern basis, are no longer adequate to cover the total claims of creditors; and
(d) They shall comply with the reportorial requirements as set forth under this Rule.
In cases where the applicant previously served as a manager for the audit of the selected AFS for evaluation, the applicant shall also submit a certificationfrom the signing partner of the selected AFS that the applicant was part of the audit engagement team.
(iv) Accreditation Requirements for Auditing Firms
(3) Losses or potential losses the aggregate of which amounts to at least ten percent (10%) of the consolidated total assets of the company;
(c) In case of auditing firms, they shall maintain the number of partners necessary to comply with the rotation policy of this Rule.
(1) For the initial accreditation, a notarized application form (SEC Form ExA-001) shall be submitted by the applicant to the Commission, together with the prescribed supporting documents.
(3) Applications for initial or renewal of external auditors or partners of auditing firms shall be assessed with the appropriate filing fee as indicated in SEC MC No. 3, Series of 2017 or subsequent circulars issued by the Commission.
(2) Any material finding involving fraud or error;
(a) The company shall require the presentation of the Commission’s Certificate of Accreditation issued to the independent auditor and its auditing firm, if applicable. The level of accreditation (Groups A to C) indicated in the said certificate shall be at least equivalent to the company’s classification under this Rule;
(g) They shall retain copies of their working papers, audit evidences and other audit related records for a period of ten (10) years reckoned from the day following the completion of the audit, or such longer time until the final closure or judgment of a pending investigation or case against the client, if any.
In case the applicant renewing his accreditation was not engaged in the audit of a company under the category that he was previously accredited, the applicant should show proof of continuing compliance with all the requirements enumerated in Section 3(B)(iii)(a) and (b) of Part I of this Rule.
(1) Any finding of: (i) violation of SRC Rule 68; (ii) offering of securities without prior registration with the Commission under the SRC; or (iii) engaging in the business of financing or lending without a secondary license;
(h) In relation to an on-going investigation of SECregisteredentity, accredited independent auditors and auditing firms shall, upon order of the Commission, present their working papers, audit evidence and other audit related records. This is to ensure that the quality of their respective audits has not been compromised. (i) Auditing firms with listed company-clients shall allow the Commission through its reviewers who hold a written authority, to conduct an on-site examination in accordance with the SOAR Inspection Program. (j) They shall comply with such orders and guidelines as may be issued by the Commission pursuant to its powers and authority under existing laws. Failure to comply with any of the foregoing requirements shall be a sufficient ground for the imposition of fines, as indicated in SEC MC No.13,Series of 2009 or subsequent circulars issued by the Commission, and/or suspension or revocation of the accreditation of the auditing firm or auditor and/or non-renewal thereof. (viii) Reportorial Requirements (a) The Audit Committee of entities classified under Groups A, B and C shall report to the Commission its action on a report of its independent auditor pertaining to any item enumerated under item (c) in the next pagewithin five (5) business days from the date the report is submitted by the independent auditor. For companies under Group A, the report shall be in SEC Form 17-C: Current Report that shall be signed by the Chairman of the Audit Committee. For companies under Groups B and C, the report shall be in the form of a letter signed by the Chairman of the Audit Committee or if there is no such committee, by the company’s Chairman of the Board. (b) In case the Audit Committee fails to submit the report required above, the independent auditor shall, within thirty
(vi) A complete documentation of the foregoing requirements shall be retained by the company. The independent auditor’s file with the company shall include a copy of his/her PRC license, BOA Accreditation Certificate, Commission’s Certificate of Accreditation (if applicable), engagement contract and minutes of conference with the auditors, among others. E. Audit Reports of Independent Auditors (i) The Auditor’s Report shall: (a) be dated; (b) be signed by the certifying independent auditor; (c) identify the financial statements covered by the report; (d) state the signing accountant’s License, Tax Identification and Professional Tax Receipt numbers, and registration number with the BOA including its expiration date; (e) state the complete mailing address of the client and the auditor; and (f) in the case of an auditing firm, the certifying partner shall sign his own signature and shall indicate that he is signing for the auditing firm, the name of which is printed in the report. (ii) The Auditor’s Report of a company mentioned under Section 3 (B)(i) of Part I of this Rule shall likewise indicate the signing auditor/partner’s accreditation number, category and expiration of accreditation. In case of an auditing firm, the same information with respect to the accreditation of the auditing firm shall be indicated. (iii) The Auditor’s Report shall state whether the audit was made in accordance with the PSA. (iv) The Auditor’s Report shall state clearly the opinion of the independent auditor on the fairness of presentation in conformity with the prescribed financial reporting framework for the company. It shall discuss the basis of the opinion and shall contain all information as required under the applicable PSAs. (v) Unless exempted under sub-paragraph (vi) in the next page, the external auditor of a company which has incurred a capital deficiency, shall provide in the Audit Report a Material Uncertainty Related to Going Concern section pursuant to the auditing standardswhich includes a reference to the Note to Financial Statements. Such note shall discuss the concrete plan of the company to address the capital deficiency. (vi) The requirement under sub-paragraph (E) (v) in the previous pageshall not applyto a company that incurred a capital deficiency due to any of thefollowing reasons: (1) The company is at pre-operating stage and has incurred capital deficiency due to higher pre-operating expenses than its initial capitalization. Projected financial statements indicate that it will generate net income once it starts commercial operations; (2) Significant losses were incurred in prior years but the company has generated positive results (net income) from operations over the current period due to developments in the business or regularization of its operation; (3) The company has incurred capital deficiency during the current period only due to a significant adjustment arising from the adoption of a new financial reporting framework or occurrence of a non-recurring transaction for the period; or
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THURSDAY,OCTOBERStandard 3, 2019 TODAY (4) Such other cases which the Commission may consider as valid ground for considering the company as a going concern.
G. Listed Companies and Investment Houses that are Part of a Conglomerate or Group of Companies
(vii) Any company covered by any of above exemptions shall provide in Note 1 of its AFS a discussion on the reason for its capital deficiency and a concrete plan to address the same.
A map showing the relationships between and among the company and its ultimate parent company, middle parent, subsidiaries or cosubsidiaries, and associates, wherever located or registered, shall be submitted with the annual AFS. The map must be covered by an Auditor’s Report.
F. Supplemental Written Statement of Auditor
H. Listed Companies that Recently Offered Securities to the Public (Either as Initial or Additional Offering)
(i) For stock corporations filing under Part I of this Rule (and therefore not covered by Part II), their independent auditors shall issue a supplemental written statement as prescribed under Annex 68-B of this Rule.
A schedule, in the prescribed Form per Annex 68-Iof this Rule, showing the following amounts, shall be submitted with the annual AFS and if applicable, with the company’s interim financial statements up to such period when all the proceeds from the offering have been utilized:
(ii) To support the above statement, the auditor may undertake the audit procedures he deems necessary, such as the following: (a) Obtain a certification from the issuer’s Corporate Secretary onthe number of stockholders and their corresponding shareholdings;
a) b) c) d)
(b) Inspect the Stock and Transfer Book and conduct the tests needed to validate their entries and balances.
This schedule need not be covered by an Auditor’s Report.
4. COMPARATIVE FINANCIAL STATEMENTS A. The financial statements to be filed with the Commission shall be presented in comparative form. The figures for the most recently ended fiscal year may be presented at the right portion immediately after the accounts name, followed by the figures for the last preceding year. B. Statement of Financial Position The audited Statements of Financial Position shall be as of the end of each of the two (2) most recently completed fiscal years.
I.
ADDITIONAL REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC 1. APPLICATION In addition to the requirements set forth under Part I of this Rule, this Part II (together with subsequent official pronouncements, interpretations and rulings on accounting and reporting matters, which may be issued by the Commission from time to time) provides for the special requirements on the financial statements required to be filed with the Commission by corporations which filed registration statements under Section 12 of the SRC or which meet the following criteria with respect to the requirements to file reports:
If practicable, these statements shall be for each of the two (2) most recently completed fiscal years or such shorter period as the company (including predecessors) has been in existence. D. An explanation through a note or otherwise shall be made explaining the reasons for filing a single-period statement, e.g. it is the first (1st) period of a new company.
A. Issuer which has sold a class of its securities pursuant to a registration under Section 12 of the SRC; B. Issuer with a class of securities listed for trading on an Exchange; and
E. When financial statements are presented on a comparative basis for more than the periods required, the Auditor’s Report need not extend to prior periods for which the financial statements are not required to be audited.
(ii) If the financial statements of a priorperiod have been audited by another independent certified public accountant whose report is not presented, the statements shall be marked to disclose prominently that they are not being reported upon by the current auditor. If the auditor of the financial statements for such periods did not give an unqualified opinion on such statements, the auditor for the current year shall indicate in an “other matter” paragraph of his report (i) that the financial statements of the priorperiod were audited by other auditors, (ii) the date of their report, (iii) the type of opinion expressed by the predecessor auditor, and (iv) the substantive reasons it was qualified.
Such other schedules or components that the Commission may require through subsequent pronouncements.
PART II
C. Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity
(i) If the financial statements of the prior year were not audited, such statements shall be marked prominently as “UNAUDITED.” In addition, the auditor shall disclose this in an “other matter” paragraph in the Auditor’s Report.
Gross and net proceeds as disclosed in the final prospectus; Actual gross and net proceeds; Each expenditure item where the proceeds were used; and Balance of the proceeds as of end of reporting period.
C. Issuer with assets of at least Fifty Million Pesos (P50 Million) or such other amount as the Commission shall prescribe and has Two Hundred (200) or more holders each holding at least one hundred (100) shares of a class of its equity securities as of the first (1st) day of the issuer’s fiscal year. 2. REGISTRATION OF SECURITIES PURSUANT TO THE ASEAN CAPITAL MARKET INTEGRATION The registration of securities pursuant to the ASEAN Capital Market Integration Framework shall be in accordance with this Rule, subject to the following specific requirements and such other issuances as the Commission may hereinafter release: A. Adoption of the IFRS as the basis of financial statements of foreign companies that will undergo crossborder offerings or listings in the Philippines. B. Submission by the foreign issuer’s financial statements that are audited by a foreign auditfirm are subject to the following requirements:
5. OTHER DOCUMENTS TO BE FILED WITH THE FINANCIAL STATEMENTS The following documents shall be filed with the annual AFS and in the interim financial statements, if required herein:
(i) The foreign auditfirm should be accredited or licensed and/or recognized in its home jurisdiction as qualified to audit issuers of securities to the public;
A. Non-Stock and Non-Profit Organizations (NSPO) Including Foundations
(ii) The foreign auditfirm should be affiliated with a localfirm that is accredited by the Commission under Group A category; and
The forms as provided in Annex 68-Cof this Rule must be accomplished and submitted with the AFS by non-stock and non-profit organizations including foundations.
(iii) The SMR, schedules and other attachments required under SRC Rule 68 should be submitted with the financial statements.
NSPO Form-1, NSPO Form-2 and NSPO Form-3 must be submitted by all registered non-stock and non-profit organizations. For those withannual contributions or donations of Five Hundred Thousand Pesos (P500,000) or more, NSPO Form-4, NSPO Form-5 and NSPO Form-6 must also be submitted with the AFS.
C. Modification of financial statement requirements in cases where the subject of a registration statement is asset-backed securities in order to align with those in other ASEAN countries. 3. AUDITOR’S OPINION ON FINANCIAL STATEMENTS A. The AFS of companies covered by Part II of this Rule with an auditor’s opinion other than unqualified because of deviation(s) from the required financial reporting framework or due to a scope limitation imposed by the company, shall be considered a violation of this Rule.
These schedules need not be covered by an Auditor’s Report. B. Issuers of Securities to the Public, and Stock Corporations with Unrestricted Retained Earnings in Excess of 100% of Paid-In Capital Stock
B. For listed banks, a qualified opinion from their independent auditors shall not be considered a non-compliance with this Rule if the qualification pertains to a deviation from PFRS, when such deviation has been approved by the BSP as part of its prudential reporting requirements.
A Reconciliation of Retained Earnings Available for Dividend Declaration, which shall present the prescribed adjustments in the prescribed Form per Annex 68–Dof this Rule, must be presented. This reconciliation must be covered by an Auditor’s Report. C. Regulated Entities Enumerated in Section 3 (B) (i) of Part I of This Rule Aschedule showing financial soundness indicators in two (2) comparative periods, as follows: (i) current/liquidity ratios; (ii) solvency ratios, debt-toequity ratios; (iii) asset-to-equity ratios; (iv) interest rate coverage ratios; (v) profitability ratios; and (vi) other relevant ratios as the Commission may consider necessary.
C. The company shall, if warranted, after due notice and hearing, be subject to the applicable penalties and shall be required to submit its amended financial statements to address the modification or limitation. 4. RESPONSIBILITY FOR FINANCIAL STATEMENTS The SMR of companies covered under Part II of this Rule shall, in addition to the requirements under Section 2(B) of Part I of this Rule, be signed under oath.
This schedule, in the prescribed Form per Annex 68-Eof this Rule, shall be submitted with the AFS and if applicable, with the company’s interim financial statements. For listed companies, this schedule should be covered by an Auditor’s Report. D. Financing Companies A schedule showing the following information for two (2) comparative periods: (i) ratio or percentage of total real estate investments to total assets; (ii) total receivables to total assets; (iii) total Directors, Officers, Stockholders and Related Interests (DOSRI)’s receivables to net worth; and (iv) amount of receivables from a single corporation to total receivables. This schedule, in the prescribed Form per Annex 68-Fof this Rule, shall be submitted with the annual AFS and if applicable, with the company’s interim financial statements. This schedule need not be covered by an Auditor’s Report. E. Mutual Funds A schedule showing the following information for two (2) comparative periods: (i) percentage of investment in a single enterprise to net asset value; (ii) total investment of the fund to the outstanding securities of an investee company; (iii) total investments in liquid or semi-liquid assets to total assets; (iv) total operating expenses to net worth; and (v) total assets to total borrowings, shall be submitted with the annual AFS and if applicable, with the company’s interim financial statements. This schedule, in the prescribed Form per Annex 68-Gof this Rule, shall be submitted with the annual AFS and if applicable, with the company’s interim financial statements. This schedule need not be covered by an Auditor’s Report. F. Investment Houses A schedule, in the prescribed Form per Annex 68-Hof this Rule, showing the following information, shall be submitted with the annual AFS and if applicable, with the company’s interim financial statements: Details (per issue) of underwriting activities for the year: (i) (ii) (iii) (iv)
Name of the issuer-client; Nature of commitment; Amount of issue; Underwriting and other fees generated; and Basis of computation for each.
Transactions with DOSRI: (i) (ii) (iii) (iv)
Name of related party; Description of transaction; Total volume/amount of transaction for the year; Terms and conditions, such as maturity date, security, and mode of payment; and (v) If secured, carrying amount of asset used as collateral. This schedule need not be covered by an Auditor’s Report.
For registrants of securities, the SMR shall be attached to both audited annual financial statements and reviewed interim financial statements. 5
PERIODIC PRESENTATION The periodic presentation and coverage of financial statements accompanying the registration statements (SEC Form 12-1), annual reports (SEC Form 17-A) and management reports attached to the information statements (SEC Form 20-IS) shall be made in accordance with the requirements of this Section. A. Registration Statements (i) Consolidated Statements of Financial Position (a) If the registrant has been in existence for less than one (1) fiscal year, there shall be filed an audited Statement of Financial Position as of a date withinone hundred eighty(180) days of the date of filing the registration statement.
provided for any interim period between the latest Audited Statement of Financial Position and the date of the most recent Interim Statement of Financial Positionbeing filed, and for the corresponding period of the preceding year. (iii) Consolidated Statements of Changes in Equity (a) There shall be filed for the registrant and its consolidated subsidiaries and its predecessors, Audited Statements of Changes in Equity in comparative format for each of the three (3) most recent completed fiscal years or such shorter period as the registrant (including predecessors) has been in existence. (b) In addition, Statements of Changes in Equity shall be provided for any interim period between the latest Audited Statement of Financial Position and the date of the most recent Interim Statement of Financial Positionbeing filed, and for the corresponding period of the preceding year. (iv) Consolidated Statements of Cash Flows (a) There shall be filed for the registrant and its consolidated subsidiaries and its predecessors, Audited Statements of Cash Flows in comparative format for each of the three (3) most recent completed fiscal years or such shorter period as the registrant (including predecessors) has been in existence. (b) In addition, a consolidated Statement of Cash Flows shall be provided for any interim period between the latest Audited Statement of Financial Positionand the date of the most recent Interim Statement of Financial Position being filed, and for the corresponding period of the preceding year. The above financial statements shall be audited by an independent auditor accredited by the Commission under the category prescribed per Section 3(B) (i) of Part I of this Rule. (v) Interim Financial Statements The interim financial statements mentioned in the preceding subparagraphs need not be audited. However, in case of an initial public offering of securities by a company, such interim financial statements shall be auditedby an independent auditor accredited by the Commission underthe prescribed category and shall be complete in details as in a full fiscal year financial report. Reviewed Interim Financial Statements may be accepted by the Commission provided that the registrant submits a written justification citing its constraints for having the interim financial statements audited and a certification that there has been no material event or transactions during the interim period that would necessitate the conduct of audit procedures. The review by an independent auditor of the financial statements shall be in accordance with the applicable standards. (vi) Age Requirement for Financial Statements (a) At the time a registration statement on SEC Form 12-1 is to become effective, the financial information therein shall be as of a date within one hundred eighty (180) daysfrom effective date. (b) Except as required under sub-paragraph (v) above, the interim financial statements which are necessary to keep the registration statement current, need not be audited but shall comply with the required form and contents under Philippine Accounting Standards 34 (Interim Financial Reporting or any of its amendments). B. Annual Reports (SEC Form 17-A) (i) There shall be filed consolidated Audited Statements of Financial Position (except if not applicable), in comparative format, as of the end of each of the two (2) most recently completed fiscal years. (ii) The Statements of Comprehensive Income, Statements of Cash Flows and Statements of Changes in Equity shall be in comparative format for the three (3) most recently completed fiscal years or such shorter period as the company (including predecessors) has been in existence. C. Information Statements (SEC Form 20-IS) (i) There shall be filed consolidated Audited Statements of Financial Position (except if not applicable), in comparative format, as of the end of each of the two (2) most recently completed fiscal years. If the meeting date is beyond one hundred thirty-five (135) days from the company’s fiscal year end, a separate Interim Unaudited Statement of Financial Position as of the end of the most recent quarter with comparative figures as of the end of the preceding fiscal year shall likewise be filed. (ii) The Statements of Comprehensive Income, Statements of Cash Flows and Statements of Changes in Equity shall be in comparative format for the three (3) most recently completed fiscal years or such shorter period as the company (including predecessors) has been in existence. If the meeting date is beyond one hundred thirty-five(135) days from the company’s fiscal year end, separate interim unaudited statements for the most recent quarter with comparative figures for period ending of the same quarter of the preceding year shall likewise be filed. 6. APPLICABILITY WITH OTHER REPORTS The schedules provided under Annex 68-J (Schedules) are not required in management reports to be distributed to shareholders as part of the information statement. 7. ADDITIONAL DISCLOSURE REQUIREMENTS A. Statements of Financial Position In addition to the disclosures required under the PFRSs and except as otherwise permitted by the Commission, the various line items and certain additional disclosures set forth in Annex 68-K if applicable, shall appear on the face of the Statements of Financial Positionor related Notes to the Financial Statements filed by the persons to whom this Rule pertains. B. Statements of Comprehensive Income In addition to the disclosures required under the PFRSs and except as otherwise permitted by the Commission, the various line items and certain additional disclosures set forth in Annex 68-K, if applicable, shall appear on the face of the Statements of Comprehensive Income in the financial statements or related notes filed by the persons to whom this Rule pertains.
(b) If a filing on SEC Form 12-1 is made within one hundred eighty (180) days after the end of the most recently ended fiscal year, the filing shall include Audited Consolidated Statements of Financial Position as of the end of each of the two (2) most recently ended fiscal years.
C. General Notes to Financial Statements
(c) If a filing on SEC Form 12-1 is made more than one hundred eighty (180) days but not more than two hundred seventyfour (274) days after the end of the most recently ended fiscal year, the filing shall include Audited Consolidated Statements of Financial Positionas of the end of each of the two (2) most recently ended fiscal years and a separate Interim Statement of Financial Position as of the end of the first (1st) fiscal quarter subsequent to the most recent fiscal year end.
D. Schedules
(d) If a filing on Form 12-1 is made more than two hundred seventyfour(274) days after the end of the most recently ended fiscal year, the filing shall include Audited Consolidated Statements of Financial Positionas of the end of each of the two (2) most recently ended fiscal years and a separate Interim Statement of Financial Positionas of the end of the second (2nd) fiscal quarter subsequent to the most recent fiscal year end. (ii) Consolidated Statements of Comprehensive Income (a) There shall be filed for the registrant and its consolidated subsidiaries and its predecessors Audited Statements of Comprehensive Income in a comparative format for each of the three (3) most recent completed fiscal years or such shorter period as the registrant (including predecessors) has been in existence. (b) In addition, a Statement of Comprehensive Income shall be
In addition to the disclosures required under the PFRSs and except as otherwise permitted by the Commission, the various line items and certain additional disclosures set forth in Annex 68-K, if applicable, shall appear on the face of the financial statements or related notes to the financial statements filed by the persons to whom this Rule pertains.
Please see Annex 68-J for the required form and content. 8. INTERIM FINANCIAL STATEMENTS The following additional instructions shall be applicable for purposes of preparing Interim Financial Statements: A. If appropriate, the Statement of Comprehensive Income shall show earnings per share and dividends declared per share applicable to common stock. The basis of the earnings per share computation shall be stated together with the number of shares used in the computation. For mutual funds or investment companies, the amount of Net Asset Value per Share and the basis for its computation shall likewise be disclosed in the Statement of Financial Positionor the Notes to Financial Statements. B. If, during the most recent interim period presented, the registrant or any of its consolidated subsidiaries entered into a business combination treated for accounting purposes as a pooling of interests, the Interim Financial Statements for both the current year and the preceding year shall reflect the combined results of the pooled businesses, as appropriate. Supplemental disclosure of the separate results of the
Standard THURSDAY,OCTOBER 3, 2019 C6 TODAY Manila
combined entities for the periods prior to the combination shall be given, with appropriate explanations. C. Where a material business combination accounted for as a purchase has occurred during the current fiscal year, pro forma disclosure shall be madeof the results of operations for the current year up to the date of the mostrecent Interim Statement of Financial Positionprovided (and for the corresponding period in the preceding year) as though the companies had combined at thebeginning of the period being reported on. This pro forma information shall,as minimum, show revenues, and the cumulative effect of accountingchanges, including such income on a per share basis, and net income pershare.
by the applicable paragraphs of this Rule. Where any major Statement of Financial Position caption is less than ten percent (10%) of total assets, the caption may be combined with others. When any major Income Statement caption is less than fifteen per cent (15%) of average net income of the registrant for the most recent three (3) fiscal years, the caption may be combined with others. In calculating average net income, a loss year shall be excluded unless losses were incurred in each of the most recent three (3) years, in which case the average loss shall be used for purposes of this test. Notwithstanding these tests, “minimal” amounts need not be shown separately.
D. In addition to meeting the reporting requirements specified by existing standards for accounting changes, the registrant shall state the date of any material accounting change and the reasons for making it.
(d) Pro forma statements shall ordinarily be in columnar form showing condensed historical statements, pro forma adjustments, and the pro forma results.
E. Any unaudited interim financial statements furnished shall reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. A statement to that effect shall be included. Such adjustments shall include, for example, appropriate estimated provisions for bonus and profit sharing arrangements normally determined or settled at year end. If all such adjustments are of a normal recurring nature, a statement to that effect shall be made; otherwise, there shall be furnished information describing in appropriate detail the nature and amount of any adjustments other than normal recurring adjustments entering into the determination of the results shown.
(e) The pro forma condensed Statements of Comprehensive Income shall disclose income (loss) from continuing operations before nonrecurring charges or credits directly attributable to the transaction. Material nonrecurring charges or credits and related tax effects which result directly from the transaction and which will be included in the income of the registrant within the twelve (12) months succeeding the transaction shall be disclosed separately. It shall be clearly indicated that such charges or credits were not considered in the pro forma condensed Statements of Comprehensive Income. If the transaction for which pro forma financial information is presented relates to the disposition of a business, the pro forma results shall give effect to the disposition and be presented under an appropriate caption.
F. Periods for which interim financial statements are to be provided in registration forms are stated in Section 5 of Part II of this Rule. For filings on Form 17-Q: Quarterly Report, financial statements shall be provided in accordance with the financial reporting framework. G. Filing of other interim financial information in certain cases – The Commission may, upon written request of the registrant, and where consistent with the protection of investors, permit the omission of any of the interim financial information herein required or the filing in substitution therefor of appropriate information of comparable character. The Commission may also by written notice require the filing of other information in addition to, or in substitution for, the interim information herein required in any case where such information is necessary or appropriate for an adequate presentation of the financial condition of any entity for which interim financial information is required, or whose financial information is otherwise necessary for the protection of investors. 9. PROFORMA FINANCIAL INFORMATION A. Applicability (i) This Section prescribes the requirements in a report of an issuer or in a registration statement for the registration of debt and equity securities. (ii) In addition to the AFS of business acquired, the pro forma financial information shall be submitted with the report or with the registration statement if any of the following transactions occurs after the date of the most recent Statement of Financial Positionor during the interim period: (a) Significant business combination accounted for as a purchase has occurred (for purposes of this Rule, the term “purchase” encompasses the purchase of an interest in a business accounted for by applying the acquisition method); (b) Consummation of a significant business combination that has occurred or is probable; (c) Securities being registered by the registrant are to be offered to the security holders of a significant business to be acquired or the proceeds from the offered securities will be applied directly or indirectly to the purchase of a specific significant business; (d) The disposition of a significant portion of a business either by sale, abandonment or distribution to shareholders by means of a spin-off, split-up or split-off has occurred or is probable and such disposition is not fully reflected in the financial statements of the registrant included in the filing; (e) Acquisition of one or more real estate operations or properties which in the aggregate is significant, or when there is an acquisition or proposal to acquire one (1) or more operation or properties which in the aggregate is significant; (f) The registrant previously was a part of another entity and such presentation is necessary to reflect operations and financial position of the registrant as an autonomous entity; or (g) Consummation of other events or transactions has occurred or is probable for which disclosure of pro forma financial information would be material to investors. (iii) A business combination or disposition of a business shall be considered significant if: (a) A comparison of the most recent annual financial statements of the business acquired or to be acquired and the registrant’s most recent annual consolidated financial statements filed at or prior to the date of acquisition indicates that the business would be a significant subsidiary pursuant to the definition specified in Section 1(B)(x) of Part I of this Rule. (b) The business to be disposed of meets the definition of a significant subsidiary in Section 1(B)(x) of Part I of this Rule. (iv) The requirement under paragraph (A)(ii) in the previous pageshall not apply in those circumstances when, for purposes of a more meaningful presentation, a transaction consummated after the balance-sheet date is reflected in the historical financial statements. (v) When consummation of more than one (1) transaction has occurred or is probable during a fiscal year, the tests of significance in (iii) above shall be applied to the cumulative effect of those transactions. If the cumulative effect of the transactions is significant, pro forma financial information shall be presented. (vi) For purposes of this Rule, the term business shall be evaluated in light of the facts and circumstances involved and whether there is sufficient continuity of the acquired entity’s operations prior to and after the transactions so that disclosure of prior financial information is material to an understanding of future operations. A presumption exists that a separate entity, a subsidiary, or a division is a business. However, a lesser component of an entity may also constitute a business. (vii) This Rule does not apply to transactions between a parent company and its wholly-owned subsidiary. B. Prescribed Presentation (i) Objective Pro forma financial information shall provide investors with information about the continuing impact of a particular transaction by showing how it might have affected historical financial statements if the transaction had been consummated at an earlier time. Such statements shall assist investors in analyzing the future prospects of the registrant because they illustrate the possible scope of the change in the registrant’s historical financial position and results of operations caused by the transaction. (ii) Form and Content (a) Pro forma financial information shall consist of a pro forma Condensed Statements of Financial Position, pro forma Condensed Statements of Income, Statements of Cash Flows, Statementsof Changes in Equity and accompanying explanatory notes. In certain circumstances (i.e., where a limited number of pro forma adjustments are required and those adjustments are easily understood), a narrative description of the pro forma effects of the transactions may be furnished in lieu of the statements described herein. (b) The pro forma financial information shall be accompanied by an introductory paragraph which briefly sets forth a description of (i) the transaction, (ii) the entities involved, and (iii) the periods for which the pro forma information is presented. In addition, an explanation of what the pro forma presentation shows shall be set forth. (c) The pro forma condensed financial information need only include major captions (i.e., the numbered captions) prescribed
(f) Pro forma adjustments related to the pro forma condensed Statements of Comprehensive Income shall be computed assuming the transaction was consummated at the beginning of the fiscal year presented and shall include adjustments which give effect to events that are (i) directly attributable to the transaction, (ii) expected to have a continuing impact on the registrant, and (iii) factually supportable. Pro forma adjustments to the pro forma Condensed Statements of Financial Position shall be computed assuming the transaction was consummated at the end of the most recent period for which a Statement of Financial Positionis required by Section 5 of Part II of this Rule and shall include adjustments which give effect to events that are directly attributable to the transaction and factually supportable regardless of whether they have a continuing impact or are nonrecurring. All adjustments shall be referenced to notes which clearly explain the assumptions involved. (g) Historical primary and fully diluted per share data based on continuing operations (or net income if the registrant does not report either discontinued operations, or the cumulative effect of accounting changes) for the registrant, and primary and fully diluted pro forma per share data based on continuing operations before nonrecurring charges or credits directly attributable to the transaction shall be presented on the face of the pro forma condensed Statements of Comprehensive Income together with the number of shares used to compute the per share data. For transactions involving the issuance of securities, the number of shares used in the calculation of the pro forma per share data shall be based on the weighted average number of shares outstanding during the period adjusted to give effect to shares subsequently issued or assumed to be issued had the particular transaction or event taken place at the beginning of the period presented. If a convertible security is being issued in the transaction, consideration shall be given to the possible dilution of the pro forma per share data. (h) If the transaction is structured in such a manner that significantly different results may occur, additional pro forma presentations shall be made that show range of possible results. * Instructions* (1) The historical Statements of Income used in the pro forma financial information shall not report operations of a segment that has been discontinued, or the cumulative effects of accounting changes. If the historical Statements of Income include such items, only the portion of the Statements of Comprehensive Income through “Income from Continuing Operations” (or the appropriate modification thereof) shall be used in preparing pro forma results. (2) For a purchase transaction, pro forma adjustments for the Statements of Comprehensive Income shall include depreciation and other adjustments based on the allocated purchase price of net assets acquired. In some transactions, such as in financial institution acquisitions, the purchase adjustments may include significant discounts of the historical cost of the acquired assets to their fair value at the acquisition date. When such adjustments will result in a significant effect on earnings (losses) in periods immediately subsequent to the acquisition which will be progressively eliminated over a relatively short period, the effect of the purchase adjustments on the reported results of operations for each of the next five (5) years shall be disclosed in a note. (3) For a disposition transaction, the pro forma financial information shall begin with the historical financial statements of the existing entity and show the deletion of the business to be divested along with the pro forma adjustments necessary to arrive at the remainder of the existing entity. For example, pro forma adjustments would include adjustments of interest expense arising from revised debt structures and expenses which will be or have been incurred on behalf of the business to be divested such as advertising costs, executive salaries and other costs. (4) For entities which were previously a component of another entity, pro forma adjustments shall include adjustments similar in nature to those referred to in Instruction 3 in the previous page. Adjustments may also be necessary when charges for corporate overhead, interest, or income taxes have been allocated to the entity on a basis other than one deemed reasonable by management. (5) Adjustments to reflect the acquisition of real estate operations or properties for the pro forma Statements of Comprehensive Income shall include a depreciation charge based on the new accounting basis for the assets, interest financing on any additional or refinanced debt, and other appropriate adjustments that can be factually supported. See also Instruction 4 above. (6) When consummation of more than one (1) transaction has occurred or is probable during a fiscal year, the pro forma financial information may be presented on a combined basis; however, in some circumstances (e.g. depending upon the combination of probable and consummated transactions, and the nature of the filing) it may be more useful to present the pro forma financial information on a disaggregated basis even though some or all of the transactions would not meet the tests of significance individually. For combination presentations, a note shall explain the various transactions and disclose the maximum variances in the pro forma financial information which would occur for any of the possible combinations. If the pro forma financial information is presented in a proxy or information statement for purposes of obtaining shareholder approval of one of the transactions, the effects of that transaction shall be clearly set forth. (7) The tax effect, if any, of pro forma adjustments normally shall be calculated at the statutory rate in effect during the periods for which pro forma condensed Statements of Comprehensive Income is presented and shall be reflected as a separate pro forma adjustment. **** (iii) Periods to be Presented (a) A pro forma Condensed Statement of Financial Position as of the end of the most recent period for which a Consolidated Statements of Financial Positionof the registrant is required shall be filed unless the transaction is already reflected in such Statements of Financial Position.
(b) Pro forma Condensed Statements of Income shall be filed for only the most recent fiscal year and for the period from the most recent fiscal year end to the most recent interim date for which a Statements of Financial Positionis required. A pro forma condensed Statements of Comprehensive Income may be filed for the corresponding interim period of the preceding fiscal year. A pro forma condensed Statements of Comprehensive Income shall not be filed when the historical Statement of Comprehensive Income reflects the transaction for the entire period. (c) For a business combination accounted for as a pooling of interests, the pro forma Statements of Comprehensive Income (which is in effect a restatement of the historical Statement of Comprehensive Income as if the combination had been consummated) shall be filed for all periods for which a historical Statement of Comprehensive Income of the registrant is required. (d) Pro forma Condensed Statements of Income shall be presented using the registrant’s fiscal year end. If the most recent fiscal year end of any other entity involved in the transaction differs from the registrant’s most recent fiscal year end by more than ninety-three (93) days, the other entity’s Statements of Comprehensive Income shall be brought up to within ninety-three (93) days of the registrant’s most recent fiscal year end, if practicable. This updating shall be accomplished by adding subsequent interim period results to the most recent fiscal year-end information and deducting the comparable preceding year interim period results. Disclosure shall be made of the periods combined and of the sales and revenues and income for any periods that were excluded from or included more than once in the condensed pro forma Statements of Comprehensive Income. (e) Whenever unusual events enter into the determination of the results shown for the most recently completed fiscal year, the effect of such unusual events shall be disclosed and consideration shall be given to presenting a pro forma condensed Statements of Comprehensive Income for the most recent twelve (12)-month period in addition to those required in sub-paragraph (d) above if the most recent twelve (12)-month period is more representative of normal operations. (f) Pro forma information shall be prepared primarily by applying pro forma adjustments to historical financial information. Pro forma adjustments shall be based on management’s assumptions and shall recognize all significant effects directly attributable to the transaction (or event). (g) Pro forma financial information shall be labeled as such to distinguish it from historical financial information. This presentation shall describe the transaction (or event) that is reflected in the pro forma financial information, the source of the historical financial information on which it is based, the significant assumptions used in developing the pro forma adjustments, and any significant uncertainties about those assumptions. The presentation also shall indicate that the pro forma financial information shall be read in conjunction with related historical financial information and that the pro forma financial information is not necessarily indicative of the results (such as financial position and results of operations, as applicable) that would have been attained had the transaction (or event) actually taken place earlier. (iv) Report of Independent Auditor The pro forma financial information that shall be submitted with the registration statement shall be accompanied by a report of an independent auditor accredited by the Commission under Group A category. The said auditor shall comply with the requirements under Philippine Standard on Assurance EngagementsNo. 3420 (Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in the Prospectus). 10. CONSOLIDATED FINANCIAL STATEMENTS In addition to those required under the applicable financial reporting framework, the following requirements shall be complied with by companies covered by Part II of this Rule: A. A company covered by Part II of this Rule that has a significant foreign subsidiary or subsidiaries shall submit to the Commission copies of the financial statements of said subsidiaries. B. A parent company covered by Part II of this Rule shall submit consolidated AFS accompanied by its separate AFSthat is duly received by the BIR or its authorized banks, unless the BIR allows an alternative proof of submission for its authorized banks (e.g., bank slips) or prohibits acceptance of the financial statements in certain cases (e.g., on-going examination). PART III. PENALTIES AND OTHER GENERAL IMPLEMENTING PROVISIONS 1. PENALTIES A. All financial statements submitted to the Commission by entities covered by this Rule shall adhere strictly to the provisions hereof. B. Penalties, as may be prescribed by the Commission, shall be imposed on the erring company due to any of the following violations: (i) Material misrepresentation in the financial statements; (ii) Any material misstatement in the financial statements for failure to comply with the applicable financial reporting framework, such as: (a) Failure to adopt the prescribed financial reporting framework or any accounting standard resulting in a material misstatement; and (b) Failure to disclose required information and other relevant or material information. (iii) Failure to submit any basic component of the financial statements; (iv) Failure to submit financial statements audited by a qualified independent certified public accountant; (v) Failure to submit a complete SMR; and (vi) Failure to comply with any other requirements under Part I or II of this Rule. B. The penalties imposable on an erring company for the violation of this Rule shall be in addition to the fine imposable due to late or incomplete filing of other parts of any report to which the financial statements are required to be attached. C. In addition to those provided in Part I and Annex 68-A of this Rule, penalties, as may be prescribed by the Commission, shall be imposed on the independent auditor or auditing firm, as the case may be, due to any of the following violations: (i) Failure to submit any of the reports required under this Rule; (ii) Any material misrepresentation in the following information or documents: (a) Application for accreditation; (b) Certifications submitted with the application; or (c) Any of the reports required under Part I of this Rule; (iii) Refusal for no valid reason, upon lawful order of the Commission to submit requested documents (e.g. audit work papers) in connection with an ongoing investigation. The independent auditor shall, however, be made aware of such investigation. (iv) Gross negligence in the conduct of the audit or failure to comply with any of the PSA and such other issuances of the AASC and/ or the Commission; (v) Issuance of an unqualified opinion which is not supported by full compliance by the auditee with the applicable financial reporting framework due to a material deficiency or misstatement in the financial statements; (vi) Conduct of an audit despite the lack or eventual loss of independence as provided for under the Code of Ethics for Professional Accountant in the Philippines;
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TEST OF MATERIALITY A. General Guidelines Omissions or misstatements of items shall be material if they could individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor. Materiality is determined for the financial statements as a whole. Therefore, where there is an identified misstatement or error, the determination as to whether the financial statements are materially misstated is based on an evaluation of such findings taking the financial statements as a whole. Such evaluation shall not be driven by the number or by the size of misstatements or errors alone, but by the overall impact on the financial statements, taking into account both the quantitative and qualitative factors.
D. An amendment or re-issuance of the financial statements shall not exonerate the company and the auditors from the penalty that may be assessed by the Commission against a corporation due to the material deficiency or misstatement of the original financial statements. 4.
REPEALING CLAUSE All other rules and regulations, circulars, or memoranda or any part thereof, in conflict with or contrary to this Rule or any portion hereof, are hereby repealed or modified accordingly.
5) EFFECTIVITY AND TRANSITION A. Unless otherwise specified, the Revised SRC Rule 68, shall become effective for AFS covering periods ending31 December2019and onwards, and for interim financial statements starting the first quarter of 2020, and thereafter. B. The financial statement requirements for registration of securities under Part II of this Rule shall be effective starting 1 January2020unless an earlier application for pending registration statements is requested and approved by the Commission. C. Compliance with the Two (2) PartnerRequirement Auditing firms which have less than two (2) partners as of the date of the effectivity of this Rule shall be given until 30 June 2022 within which to comply with the new two (2)partner requirement. D. Compliance with the Transition from Sole Proprietorship to Partnership Sole practitioners as of the date of the effectivity of this Rule shall be given until 30 June 2022within which to comply with the requirements to convert to a Partnership structure from Sole Proprietorship in order to continue being accredited by the Commission.
B. For this purpose, the following quantitative test shall be applied by the Commission: (1) Deficiency or Inconsistency (i) Failure to submit any component of the financial statements prescribed under this Rule shall be considered a material deficiency. (ii) A disclosure deficiency or inconsistency in the disclosures within the financial statements shall be material if the information involves a transaction, amount or account that represents ten percent (10%) or more of the total of related accounts or transactions. For issuers of securities to the public and public companies as identified under Section 3 (B) (i) (a) (1), (2) and (3) of Part I of this Rule, the test to be used shall be five percent (5%). Based on the circumstances identified by the Commission, materiality of the deficiency or inconsistency in relation to the total assets or total liabilities may be considered. In resolving the issue of violation, due regard shall be given to the written explanation of the external auditor as to his basis in determining materiality and the exercise of professional judgment in issuing his audit opinion on the questioned financial statements. (2) Misstatement (i) A misstatement of the financial statements may result from a deviation from prescribed policy, misrepresentation, fraud or error. (ii) A misstatement shall be material if it represents ten percent (10%) or more of the total of related accounts or transactions. For issuers of securities to the public and public companies as identified under Section 3 (B) (i) (a) (1), (2) and (3) of Part I of this Rule, a misstatement shall be material if it represents five percent (5%) or more of the total of the related accounts or transactions.Based on the circumstances identified by the Commission, materiality of the misstatement in relation to the total assets or total liabilities may be considered. (iii) In resolving the issue of violation, due regard shall be given to the written explanation of the external auditor as to his basis in determining materiality and the exercise of professional judgment in issuing his audit opinion on the questioned financial statements. C. Qualitative Considerations
F.
Subsequent Amendments 1. Any proposed amendment of any part of this Rule shall be exposed for comments for a period of sixty(60) days reckoned from the date of notice of the Commission, unless the immediate issuance of the guidelines or circular amending a portion of the Rule is necessary in order to prevent a material misrepresentation, disclosure deficiency or misstatement in the financial reports of corporations. 2.
Within thirty(30) days from the last day of submission of comments, a public consultation shall be conducted. The revised draft guideline or Rule shall be posted in the SEC website after thirty (30) days from the date of public consultation.
3.
After thirty (30) days from posting of the revised draft, the matter shall be submitted for decision of the Commission en banc.
4.
A transition clause that shall allow sufficient period of intervals for applicability to financial reports of the new requirements shall be provided in the revised guidelines or Rule.
19August 2019, Pasay City Philippines
EMILIO B. AQUINO Chairperson
ANTONIETA F. IBE Commissioner
EPHYRO LUIS B.AMATONG Commissioner
JAVEY PAUL D. FRANCISCO Commissioner
KELVIN LESTER K. LEE Commissioner
(i) Affects compliance with debt covenants or other contractual requirements;
QUALITY OF AUDIT WORK OF APPLICANTS FOR ACCREDITATION AND ACCREDITED INDEPENDENT AUDITORS
(ii) Relates to the incorrect selection or application of an accounting policy that has an immaterial effect on the current period’s financial statements but is likely to have a material effect on future periods’ financial statements;
1. The latest Audited Financial Statements (AFS) of at least two(2) clients of the applicant to be selected randomly, using a risk-based approach, by the Commission from the certified list of clients provided by the applicant, shall be submitted for review.
(v) Affects segment information presented in the financial statements (for example, the significance of the matter to a segment or other portion of the entity’s business that has been identified as playing a significant role in the entity’s operations or profitability); (vi) Has the effect of increasing management compensation, for example, by ensuring that the requirements for the award of bonuses or other incentives are satisfied; (vii) Is significant having regard to the auditor’s understanding of known previous communications to users, for example, in relation to forecast earnings; (viii) Affects compliance with regulatory requirements (including BIR, BSP and other government agencies); (ix) Relates to items involving particular parties (for example, whether external parties to the transaction are related to members of the entity’s management); (x) Is an omission of information not specifically required by the applicable financial reporting framework but which, in the judgment of the auditor, is important to the users’ understanding of the financial position, financial performance or cash flows of the entity; or (xi) Affects other information that will be communicated in documents containing the AFS (for example, information to be included in a “Management Discussion and Analysis” or an “Operating and Financial Review”) that may reasonably be expected to influence the economic decisions of the users of the financial statements. RE-ISSUANCE OF FINANCIAL STATEMENTS A. Corporations whose financial statements will be found by the Commission to be materially deficient, erroneous and/or misstated shall be imposed with appropriate penalties. Except for banks, the Commission shall make a determination whether such misstatement or incompleteness is significantly material that it would necessitate the re-issuance of such financial statements. Any re-issuance shall be required within forty-five (45) calendar days from receipt of the order of the Commission. Such amendment shall comply with the reissuance requirements under applicable auditing standards. The issue on whether or not the financial statements of a bank and an insurance company should be re-issued shall be endorsed by the Commission to the BSP and the IC, respectively, for appropriate action. B. For corporations not covered by the above provisions, they may re-issue their financial statements subject to compliance with the requirements under existing standards. However, issuers of securities to the public shall not re-issue their AFS without prior request from and approval by the Commission, BSP and IC, as applicable. C. A corporation covered by SRC Rule 68 Part II and re-issuing its AFSshall notify all concerned parties, such as its stockholders, creditors and investors of such amendment through publication of a notice in a newspaper of general circulation indicating the reason for the amendment and the fact that the financial statements have been submitted to the Commission.
(v) In cases where there are no material findings noted in the submitted AFS of the auditor with conditionalaccreditation, the final approval of the accreditation, which shall be effective for three (3) years, shall be granted. Provided, however, that an applicant can avail or be granted conditional accreditation on the same level up to three (3) times only. Compliance with Condition (iii) shall be strictly followed. C. The list of findings on the clients’ AFS resulting from the foregoing procedures shall be referred to the operating department of the Commission which monitors the compliance by the said companyclients for imposition of appropriate penalties under existing rules. 4. Group C Applications An application for accreditation under Group C shall be denied if upon evaluation, the AFS of company-clients show that there are material deficiencies or misstatements therein as follows: (i) Any of the basic components of the financial statements as prescribed by the applicable financial reporting framework, or any of the followingrequired documents is not presented: (a) Supplemental Written Statement of Auditor (for stock corporations not covered by Part II of this Rule); (b) Any of SEC supplementary schedules covered by the Auditor’s Report. (ii) The Auditor’s Report does not substantially comply with the PSA, SRC Rule 68 and other relevant regulations; (iii) The Notes to Financial Statements are substantially incomplete due to the absence of more than five (5) disclosure items on significant accounts; (iv) More than three (3) accounting policies on significant accounts, as defined under paragraph III of SEC MC No. 8, Series of 2009, or any of its amendments, are not in accordance with the applicable financial reporting framework, or there are material misstatements involving the said accounts. A combination of more than one (1) material finding under items (iii) and (iv) even if below the limit per each category, would constitute a ground for denial of the application.
A. The materiality of a deficiency, misrepresentation or misstatement shall be determined based on the tests set by the Commission in Part III of this Rule or any amendments thereto. B. As a remedy on the denial of application due to any of the foregoing deficiencies, the applicant may be granted, upon request, a conditional accreditation subject to the following conditions:
Annex 68-A
(iv) Affects ratios used to evaluate the entity’s financial position, results of operations or cash flows;
(iv) In cases where there are still material findings noted in the submitted AFS of the auditor with conditionalaccreditation or where the findings that were originally noted have not been addressed or remediated, this shall be a sufficient ground for the downgrading of the applicant’s accreditation, denial of the application or disqualification from future accreditation, depending on the magnitude of the findings.
5. The foregoing requirements for the level of quality of audit work may be changed by the Commission as circumstances may warrant through appropriate issuances.
In addition to the quantitative considerations identifying material misstatement or error, qualitative factors shall be considered. These include whether the misstatement or error:
(iii) Masks a change in earnings or other trends, especially in the context of general economic and industry conditions;
3.
E. All other requirements shall be effective for all applicable reports or activities after fifteen(15)days from the date of publication of this Rule.
(iii) A copy of the two (2) clients’ AFS, to be selected randomly using a risk-based approach, signed by the independent auditor during the said period shall be submitted to the Commission at least 15 business days before the lapse of the four (4)-month period. The Commission will still review the AFS as of the next reporting period of the same client that was originally inspected. This is to check whether the findings that were originally noted have been addressed or remediated accordingly;
In case the applicant is an Engagement Quality Control Reviewer (EQCR)1, the Commission shall review the latest AFS of at least two (2) clients, where he is the EQCR to be selected randomly from the certified list of clients submitted by the applicant.If there are noted deficiencies in the AFS subjected for evaluation, in relation to an EQCR’s application, the Commission is not precluded from re-evaluating the existing accreditation of the related signing partner of the evaluated AFS since he is primarily responsible for the audit of the financial statements on which he expressed an opinion. The Commission shall likewise consider in the evaluation the findings on the financial statements of the applicant’s clients or the accredited auditors’ clients that were reviewed in relation to regulatory monitoring or processing of an application of the company-client. Results of the engagement level review under the SOAR Inspection Program shall likewise be considered. The following instances are considerations for denial of the application for accreditation: (i) Gross negligence in the conduct of the audit or failure to comply with any of the PSA and such other issuances of the AASC and/or the Commission; (ii) Issuance of an unqualified opinion which is not supported by full compliance by the auditee with the applicable financial reporting framework due to a material deficiency or misstatement in the financial statements; (iii) Auditor’s report substantially not in accordance with the prescribed wordings under PSA and any related subsequent issuances; (iv) Conduct of an audit despite the lack or eventual loss of independence as provided for under the Code of Ethics for Professional Accountants in the Philippines; (v) Conduct of any non-audit services for his statutory audit clients, if he has not undertaken the safeguards to reduce the threat to his independence. 3. Groups A and B Applications A. For Group A or B applications, the audit work of an applicant shall be acceptable only if there is no material disclosure deficiency or material misstatement in the AFS of each of the applicant’s clients. B. In case there is a material deficiency or misstatement in the financial statements of the company-clients or regulated entities, the applicant shall be recommended only for conditional Group A or B or C accreditation, depending on the level of deficiency or misstatement. The conditional accreditation shall be subject to the following conditions: (i) In case of renewal applications and the findings on the clients’ AFS include material deficiency or misstatement, the applicantindependent auditor shall be assessed a penalty; (ii) The conditionalaccreditation shall be effective for a period of four (4) months only from the date of grant;
(i) In case of renewal application for Group C category and the findings on the clients’ AFS include material deficiency or misstatement, the applicant-independent auditor shall be assessed a penalty based on Section 12 of MC No. 13, Series of 2009 or subsequent circulars issued by the Commission; (ii) The conditional accreditation shall be effective for a period of four (4) months only from the date of grant; (iii) A copy of the clients’ AFS, to be selected randomly using a risk-based approach, signed during the said period shall be submitted to the Commission at least 15 business days before the lapse of the four (4)-month period; (iv) The final approval of the accreditation, which shall be effective for three (3) years, shall not be granted unless the said AFS are compliant with the effective accounting standards and SRC Rule 68. (v) In cases where there are still material findings noted in the submitted AFS of the auditor with conditionalaccreditation or where the findings that were originally noted have not been addressed or remediated, this shall be a sufficient ground for the downgrading of the applicant’s accreditation, denial of the application or disqualification from future accreditation, depending on the magnitude of the findings. (vi) In cases where there are no material findings noted in the submitted AFS of the auditor with conditional accreditation, the final approval of the accreditation, which shall be effective for three (3) years, shall be granted. Provided, however, that applicant can only avail or be granted conditional accreditation on the same level up to three (3) times only. Compliance with Condition (iii) shall be strictly followed. C. The list of findings on the clients’ AFS resulting from the foregoing procedures shall be referred to the operating department of the Commission which monitors the compliance by the said companyclients for imposition of appropriate penalties under existing rules. 6. In the event that the application for accreditation is denied due to applicant’s failure to meet the required audit quality, such applicant can only reapply for accreditation after six (6) months from said denial for the same category. 7. Existing accredited external auditors under Group B or C can only apply for upgradingof accreditation after one (1) year from the grant of their accreditation. 8. The Commission is not precluded from re-evaluating an existing accreditation of an external auditor, regardless of the validity of its accreditation period,if the circumstances would warrant further re-evaluation. Annex 68-B SUPPLEMENTAL WRITTEN STATEMENT OF AUDITOR To the Stockholders and the Board of Directors Name of Company Address I/We have audited the financial statements of Name of Company for the year ended _________________, on which I/we have rendered the attached report dated _________________. In compliance with the Revised Securities Regulation Code Rule 68, I/we are stating that the said company has a total number of _______________ stockholders owning one hundred (100) or more shares each. (Name of the Firm, as applicable)
Name and Signature of the Independent Auditor BOA Accreditation No._______________________ PRC License No. ______________________________ SEC Accreditation (if any)_____________________ PTR No., issue date and place_________________ Date_________________________________________
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Engagement Quality Control Reviewer is a partner, other person in the firm, suitably qualified external person, or a team made up of such individuals, with sufficient and appropriate experience and authority to objectively evaluate, before the report is issued, the significant judgments the engagement team made and the conclusions they reached in formulating the report. A contributor or donor includes individuals, partnerships, corporations, associations, trusts and organizations. For supranational organization, indicate place of principal office or domicile. Contributions or donations reportable on the Schedule are contributions, donations, grants, bequests, devises, and gifts of money or property, amounting to P100,000.00 or more from each contributor or donor.