Manila Standard - 2019 December 28 - Saturday by Manila Standard

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PH bars entry of 2 US solons May require visa for all Americans in tit-for-tat move over ban of Pinoy execs

By MJ Blancaflor, Rey E. Requejo and Macon Ramos-Araneta

RESIDENT Rodrigo Duterte has ordered the Bureau of Immigration to refuse entry to two American senators who sought to ban in the United States those who were involved in what they called the “wrongful imprisonment” of Senator Leila de Lima, Malacañang announced Friday. Presidential Spokesman Salvador ment would require all American citiPanelo also announced that the govern- zens to secure a visa before entering the

country if the US would enforce the ban on Philippine officials. “The President is immediately ordering the Bureau of Immigration to deny US Senators Dick Durbin and Patrick Leahy, the imperious, uninformed and gullible American legislators who introduced the subject provision in the US 2020 Budget, entry to the Philippines,” Panelo said in a press Next page

Senator Patrick Leahy

Senator Dick Durbin

VOL. XXXIII • NO. 317 • 3 SECTIONS 16 PAGES • P18 • SATURDAY, DECEMBER 28, 2019 • www.manilastandard.net • mst.daydesk@gmail.com

‘Ursula’ death count now 28, more toll likely THE death toll from Typhoon “Ursula” has risen to 28, and will likely climb further, authorities said on Friday. The storm, with wind gusts of up to 200 kilometers per hour, swept across remote villages and popular tourist destinations in the Visayas on Christmas Day. Authorities on Friday confirmed 28 people had died, up from 16 on Thursday, as information came in from badly hit areas where Internet and mobile phone networks had been cut. “The likelihood is present that the casualty count will still increase. We’re hoping against it,” national disaster agency spokesman Mark Timbal said. He said at least 12 people were still listed as missing. Among those killed were several members of a family who drowned, a policeman electrocuted by a toppled Next page

URSULA’S VICTIM. Rescuers carry a body, believed to be one of several fishermen who went missing at the height of Typhoon ‘Ursula’ that pummeled the central Philippines on Christmas Day from the seashore in Borongan, Eastern Samar on Friday. The number of typhoon victims has risen to 28, according to authorities. At right (inset) Caibiran Mayor Rhodessa Revita (cradling a baby) of Biliran and Police Major Dinvir Revita, with members of their rescue team, pose for a souvenir photo after assisting some mothers deliver their children at the height of the typhoon. AFP, Contributed Photo

Delivering new life, compassion amid storm woes By Ronald O. Reyes

TACLOBAN CITY—A town mayor, a fire marshal, and three police officials have assisted five pregnant women to deliver their babies after the deadly Ty-

phoon “Ursula” barreled through Caibiran, Biliran on Dec. 24. The rescue team was composed of Major Dinvir Revita and Major Jorge Meneses III, both from the Police Regional Office Eastern Visayas Finance Service

Office; Lieutenant Vic Viros, Caibiran chief of police; Senior Fire Officer 2 Romeo Tan, Caibiran acting municipal fire marshal; Caibiran Mayor Rhodessa Revita, wife of Major Revita; and other Next page

FIRECRACKERS PREPARED. Workers prepare Friday firecrackers for sale in a makeshift factory in Bocaue, Bulacan ahead of New Year celebrations next week, with one worker (right inset) putting the finishing touches on his branded whisky. AFP

Palace: Joma can’t demand for talks abroad By MJ Blancaflor COMMUNIST leader Jose Maria Sison should not insist that the one-onone talk with President Rodrigo Duterte be held outside the Philippines, the Palace said Friday. “He doesn’t have the right to demand [that] from us. They were the ones [being] given [a] favor,” Presidential Spokesman Salvador Panelo said. In a statement, Sison said negotiating panels should meet in a neutral venue

Final bite of excise tax on oil to unleash price shocks starting 2020 By Rio N. Araja WITH the third tranche of the Tax Reform for Acceleration and Inclusion Act’s on excise tax on oil, consumers must brace for price shocks at the start of 2020, according to Bayan Muna Party-list Rep. Carlos Isagani Zarate, a House deputy minority leader.

“Even if the Department of Energy is telling oil companies to first deplete their old stocks before imposing the added excise tax on oil products, without the unbundling of the prices of oil products we cannot tell for certain if the oil companies are already passing on the new excise taxes,” he said. “Aside from unbundling oil prices for

consumers to see the true prices of oil, we maintain that it is still best to repeal the TRAIN law so as to protect consumers from the upcoming price shocks like in 2018 when it was first implemented,” he added. Under the law, diesel would go up by P1.50 per liter, while gasoline, kerosene, liquefied petroleum gas and lubricating

Duterte: Probe ‘lambanog’ case By Rey E. Requejo

oils would increase by P1. Bunker fuel and petroleum coke would also increase by P1.50. Another Bayan Muna Party-list lawmaker, Ferdinand Gaite, said “since the record high surge in prices in basic goods in 2018, prices have not gone down and it has nowhere to go but up

PRESIDENT Rodrigo Duterte has directed the National Bureau of Investigation to investigate the lambanog poisoning incidents in Luzon over the holidays. Justice Secretary Menardo Guevarra said this Friday after it was confirmed that 17 people were killed while 400 others were hospitalized after drinking lambanog or palm wine

News

SATURDAY, DECEMBER 28, 2019

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BI nabs 2k ‘bad’ aliens in 11 months By Vito Barcelo

MMIGRATION has arrested more than 2,000 illegal aliens, barred 38,000 people from leaving the country and rescued at least 500 migrant Filipino workers from suspected human trafficking syndicates from January to November this year, an oficial said Friday.

fraud activities and unauthorized online gaming operations. The list includes the more than 500 illegal Chinese workers arrested in Pasay City in October, while more than 300 of their compatriots were rounded up in various establishments in Puerto Princesa City in September. Only recently, 342 Chinese nationals were arrested in several floors of a condominium building in Bago Bantay, Quezon City, for operating a telecom scam and working without permits. Manahan said it had been a busy year for Immigration agents assigned in the South as there had been more arrests of

illegal aliens in Mindanao in 2019 than in previous years. “Some of those we arrested were not only illegally working there. They were also suspected of involvement in terrorism while others were wanted fugitives,” he said. The bureau says 38,233 Filipinos were offloaded from different ports in the country and most of them were stopped because they failed to comply with all of the requirements that would prove they were legitimate tourists and not “tourist workers,” a term used for undocumented Filipino workers disguised as tourists.

Immigration Commissioner Jaime Morente said since January, 1,836 illegal aliens and 421 foreign fugitives had been arrested in various operations throughout the country. “There will be no letup in our drive against these illegal aliens. We will

continue to go after them and deport them to their homelands,” Morente said. Acting intelligence chief Fortunato Manahan Jr. said most of those arrested were Chinese nationals illegally staying and working in the country, and many of them had been engaged in cyber

Delivering... From A1

Duterte to skip Rizal Day rites for a ‘different place’

municipal health workers. They were in the area for clearing and rescue operations along the main roads of Caibiran right after the typhoon made landfall in Cabucgayan, adjacent town of Caibiran. Ursula made its third landfall in Cabucgayan at 9:15 p.m. Tuesday. The team was headed for Barangay Union, Caibiran to rescue Jenerose Aragon, a pregnant mother whose delivery was due that day, according to police regional spokesperson Lt. Col. Ma. Bella Rentuya. Aragon delivered a baby girl named Mary Ursula A. Sulayao at 1:25 a.m. Wednesday. She was attended to by Tita Vermug, a rural health nurse and member of the Municipal Disaster Risk Reduction and Management Council, assisted by Mayor Revita, along with Maya Borromeo, nurse and secretary at the mayor’s office. A separate call for assistance from pregnant mother Joy Blanquer at Barangay Manlabang, Caibiran was responded to by the mayor’s brother Rodel Delante who was on his way to join Major Revita’s team at Barangay Union. While she was rushed to the Rural Health Unit in Caibiran, Blanquer delivered birth while inside the Toyota Hi-Lux vehicle of the police official. The baby was later named Christian Hilux Blanquer. While the mayor’s staff and members of RHU stayed at Barangay Union, other members of the rescue team went to the adjacent barangays to continue the clearing operations. Along the way, they encountered a stranded vehicle at Barangay Villavicenta with another pregnant woman named Marilou Regir on board. After the team cleared the road, the vehicle was able to pass and made it to the RHU in time as Regir gave birth to a baby boy at around 3:15 a.m. on Dec. 25, added Rentuaya. As the police official and his team continued the road clearing operation, they encountered another stranded vehicle at Sitio Andrade, Barangay Asug. The vehicle was coming from Cabucgayan town with pregnant mother Mary Grace Bacalando who was due for delivery. The police officials, along with the mayor, led them to RHU-Caibiran where Bacalando gave birth to a baby girl at around 8:20 a.m. Hours after, another pregnant mother named Catherine Mae Esmeralda from Barangay Bariis, Caibiran was brought to the said RHU. She gave birth at around 5:56 a.m. to a baby boy named Clyde Andrei Esmeralda. According to Rentuaya, the members of the rescuing team will stand as godparents as the newborn babies are set to be baptized on Jan. 15, 2020, during the celebration of Caibiran’s “Pueblo Day.”

Final bite... From A1 because of the last tranche of TRAIN Law 1.” “The supposed lower inflation in 2019 being peddled by economic managers would be wiped out with the new price increases as well as higher demand for oil in the international market,” he added. “Again if the administration wants to shield consumers from the upcoming price onslaught then it should immediately repeal the TRAIN law,” he noted. Meanwhile, Pasang Masda president Obet Martin on Friday said they would taking part in the filing of a consolidated petition against the excise tax hike on fuel products, scheduled to take effect on Jan. 1, 2020. The third and final tranche of the tax hike under the administration’s TRAIN law would increase gasoline prices by P1, increase diesel by P1.50, and kerosene by P1, according to Finance Assistant Secretary Tony Lambino.

By MJ Blancaflor

PRESIDENT Rodrigo Duterte will skip the celebration of Rizal Day in Manila―his second time do so―as he has chosen to honor other heroes on Dec. 30, his spokesman said Friday. President Duterte wants to go to a “different place” on that day, Salvador Panelo said. “He said he always goes to the Rizal Park, so he wants to go to a different place this year. “Perhaps it’s because we are forgetting to honor our other heroes. We have

PH bars... From A1 briefing. “Should a ban from entry into US territory be enforced against Philippine officials involved in—or by reason of—Senator De Lima’s lawful imprisonment, this government will require all Americans intending to come to the Philippines to apply and secure a visa before they can enter Philippine territory,” Panelo added. Earlier this month, US President Donald Trump signed his government’s $1.4-trillion budget for 2020 which contains the provision of “Prohibition on Entry.” Duterte has no ill feelings towards Trump, Panelo said, but added that the President will formally decline the US leader’s standing invitation to visit Washington. The US State Department has yet to release a list of Philippine officials who will be banned from entering the US. Panelo said the visa requirement in-

‘Ursula’... From A1 post while patrolling and a man struck by a felled coconut tree. At least 12 people perished in the provinces of Capiz and Iloilo, the Regional Disaster Risk Reduction and Management Council confirmed Friday morning. Three casualties were confirmed in Capiz while nine others were recorded in northern Iloilo. The typhoon displaced tens of thousands living on the coast and low-lying areas who were forced to celebrate Christmas in evacuation centers. Others missed family reunions, with plane and ferry services canceled. It also hit Boracay island, famed for its white sand beaches which draws more than a million tourists a year. Coconut trees were uprooted on Boracay and windows in some resorts were blown in during the storm, and ferry services to and from the island were cut on Wednesday and Thursday. The Kalibo International Airport resumed normal operations Friday after being hit by Ursula on Christmas Day. The temporary closure of the airport resulted in canceled flights for two days. In a statement, the Civil Aviation Authority of the Philippines said Kalibo Airport was heavily damaged by the typhoon. Despite the damage, however, CAAP spokesman Eric Apolonio said

Palace:... From A1 abroad as he would put himself at risk and “available for any kind of attack” by the Armed Forces of the Philippines and the Philippine National Police if he decides to return to the country. “I would be putting the prospect of peace negotiations at risk if I make myself available for any kind of attack by officers of the AFP and PNP who think that they can end the revolutionary movement by getting rid of me and who are increasingly disobedient to President Duterte and con-

other heroes aside from Jose Rizal.” In 2018 Duterte also skipped the commemoration of Rizal’s martyrdom in Davao City because he was not feeling well. Panelo justified Duterte’s impending absence at the 123rd commemoration of Rizal’s martyrdom at the Luneta Park in Manila by saying “He always issues a statement anyway.” Rizal, who sought political reforms during Spain’s colonial rule, was born in Calamba, Laguna, on June 19, 1861. Among his famous works were “Noli Me Tangere” and “El Filibusterismo.” He was exiled to Dapitan by the

Spanish authorities in 1882 and was executed on Dec. 30, 1896, at the age of 35 for allegedly inciting sedition. His execution hastened the Philippine Revolution that took place in 1898. Panelo said the President will commemorate the death of Gregorio del Pilar on Dec. 30. “He will not be attending the Rizal rites. He said he’s rather go to some [other] place. I think this year he wants to remember General Gregorio del Pilar.” Del Pilar, a Bulakeño, was killed on Dec. 2, 1899, in Tirad Pass during the Philippine-American War.

cludes dual citizens or Filipinos who are now US citizens, regardless of the purpose of the visit. “All Americans, if you are US citizen then you are an American,” he said. The Palace official also insisted that De Lima was not wrongfully detained. “The case of Senator De Lima is not one of persecution but of prosecution. In fact, it is already being heard by our courts. The Supreme Court, the highest court of our land, has affirmed the incarceration of Senator De Lima as valid and lawful,” he said. De Lima, a vocal critic of the Duterte administration, has been detained since February 2017 and repeatedly denied her alleged links to the illegal drug trade when she was still Justice secretary. She called the allegations against her as “political persecution.” Panelo said other countries cannot dictate upon the local officials, judges, and justices the method by which the government enforces or interprets laws, noting that the Philippines is an independent and sovereign state. He also said the President considered

the possible repercussions of this order, particularly in the Philippine tourism. “When the President makes a decision, all circumstances are factored in,” Panelo said. Justice Secretary Menardo Guevarra on Friday said the ban against Durban and Leahy would be immediately carried out by the Bureau of Immigration. “The DOJ, which will implement the ban through the BI, has not received a formal order from the President,” Guevarra added. De Lima, meanwhile, laughed off the Duterte administration’s claim that she was “accorded procedural due process” in the prosecution of her drug charges. “Salvador Panelo, the master of disinformation, is calling out critics for allegedly misleading US senators regarding my case? This is hilarious,” she said in a mix of English and Filipino. “Those who are genuinely on the side of truth and justice can never be hoodwinked into believing that we have a fair justice system and a strong vibrant democracy,” she said.

the domestic arrival and check-in areas of the passenger terminal building can still be used. “Fortunately, the runway and tower facilities did not incur any damage,” he said. However, no one died on Boracay, and the damage was not on the scale of badly hit coastal towns elsewhere in the Visayas. The typhoon affected 44,792 families as of midnight Friday, or the equivalent of 185,168 people in 584 barangays in Regions V, VI, VII, VIII and Caraga. Leyte‘s provincial government has placed the entire province under a state of calamity after Typhoon Ursula left a trail of destruction when it crossed the region on Christmas Eve. The declaration was made late Thursday afternoon, with the support of 11 of the 13 provincial board members. With the declaration of a state of calamity, the province can now use the 5 percent of its calamity fund from its annual budget. Based on the initial information from the Provincial Disaster Risk Reduction and Management Office, at least 15 percent of farms and other infrastructure were damaged by Ursula. At least 13 towns in the province were severely affected by “Ursula”. A total of 1, 941 families were evacuated to safety during the typhoon’s onslaught. Ursula is no longer causing heavy rainfall in any part of the country but the northeast monsoon and the tail-end of a

cold front will bring rains in some areas. The typhoon caused P633.72 million worth of damage in Mimaropa, with a production loss of 969 metric tons, affecting 4,100 hectares and 44,061 farmers and fishermen. Affected commodities include rice, corn, fisheries and agri-facilities. Electric cooperatives have started restoring power distribution services to several provinces that experienced outages due to the onslaught of Typhoon Ursula, the National Electrification Administration said. The NEA Disaster Risk Reduction and Management Department reported that 16 provinces in Mimaropa, Central Visayas, Eastern Visayas, and Western Visayas lost electricity due to the effects of the typhoon. The Philippine Red Cross has deployed assessment teams to Iloilo, Aklan, Antique, Ormoc, Cebu, Sorsogon, Masbate, Negros Oriental, Eastern Samar, and Romblon to provide assistance, offering hot meals to about 1,000 people, including those who had to spend Christmas Day in ports and evacuation centers, potable water along the highways and ports, temporary shelter and tents. First aid and welfare stations were also put up for the residents of different barangays. The Philippines is the first major landmass facing the Pacific typhoon belt, and is hit by an average of around 20 storms a year. Macon Ramos-Araneta, Othel V. Campos, AFP, PNA

tinue to make offensive movements despite the current ceasefire ordered by the CPP to the NPA,” he said. Sison, however, expressed his willingness to meet with President Rodrigo Duterte in a country near the Philippines after the formal resumption of the peace talks and the approval of the Comprehensive Agreement on Social and Economic Reforms. He also said the Norwegian government, as third party facilitator, should help in securing the necessary political, legal and security guarantees. But Panelo said Sison’s refusal of a one-on-one meeting with the President

betrays his insincerity. The Palace official also said the founding chairman of the Communist Party of the Philippines is living in an “illusory world” he created for himself. “His decade-long comfortable and luxurious self-exile in Europe has placed blinders in his eyes hence he could not see the transformation of society initiated and propelled by the strong-willed leadership of the former Mayor of Davao City,” Panelo said. “Sison must disengage himself from his fantasy before his illusions develop into something medically perilous,” Panelo added.

Firecrackers a no-go, warns Go; Taguig sets big NY party By Joel E. Zurbano MAYOR Lino Edgardo Cayetano on Friday urged the people to join the biggest New Year street party to be hosted by the City of Taguig on Dec. 31 at the Bonifacio Global City. “New Year’s Eve is a festive time in the Philippines. We follow a lot of traditions to usher in a prosperous New Year with our families and loved ones,” Cayetano said. “We invite everyone to the City of Taguig as we witness 2020 Rising. The celebration will also be our way of giving thanks for the blessings of 2019.” Cayetano made his statement even as Senator Christopher Go warned the public against using firecrackers to great the new year. He advised the public to use the money intended for firecrackers to buy food for media noche. He said losing one’s fingers could also be avoided. “You sometimes can’t control how powerful firecrackers are,” Go said. The Health department on Friday reported 21 cases of fireworks-related injuries with an additional three cases. The total figure covers the period Dec. 21, and from 6 a.m. until the same time of Dec. 27. Taguig, the city government, in partnership with ABS-CBN, Jack Daniel’s and ING, are pitching in to ensure that the event will be the grandest welcome to 2020 in the Metro, with nonstop entertainment, a great crowd and easy access to the best dining spots and bars the BGC has to offer. “We at BGC always make it a point to put our BGCitizens at the heart of everything that we do, and as a new year comes, we want to bring together the community and their families to celebrate and thank them for the success of the year that was,” said Sean Luarca, BGC’s marketing and community relations manager. “As we welcome 2020 together, we’ve prepared a lineup of artists and performances that will make each and everyone feel at home, excited and joyous for what’s about to come.” The event will start with a mass at 6 p.m. and performances from the ABSCBN Philharmonic Orchestra together with singer Jonalyn Viray. The non-stop partying begins with performances from Itchyworms, John Roa, Alex Calleja, Bamboo, Yeng Constantino and Billy Crawford. Other celebrities like DJ Mars Miranda, Robi Domingo and Nicole Cordoves will also join the crowd and guarantee a rousing welcome to the year ahead with a grand countdown and a fireworks display. With Macon Ramos-Araneta

Duterte:... From A1 in provinces in Luzon. “The President ordered the NBI to investigate the alleged lambanog poisoning incidents and to submit a report thereon immediately,” Guevarra said in a text message. Tests conducted by Food and Drug Administration showed that samples of the liquor that originated from a Batangas brewery contained about 11 to 18 percent of methanol, a toxic substance that attacks internal organs when ingested. At the same time, the government will set standards on production of palm wine or lambanog after consumption of the liquor during the Christmas holidays left 17 people killed, according to a heatlth official. Most of the victims consumed lambanog from a Batangas brewery that did not have a certificate of product registration from the Food and Drug Administration, Health Undersecretary Eric Domingo told ANC’s Early Edition, beamed nationwide, Friday. On Friday, Sison said there was no more problem with a Christmas ceasefire with government forces, since the rebels’ declaration was reciprocated. His claim on his Facebook page came after communist rebels launched a series of attacks on government troops, despite the truce. On Thursday, the Philippine National Police said it was ready to repel any attempt by the New People’s Army to sow violence during the holidays. PNP Director for Operations, Maj. Gen. Emmanuel Licup, said he told policemen to not let the communist insurgents attack them without fighting back. With PNA

News

SATURDAY, DECEMBER 28, 2019

Prickly PH-Turkey snafu averted T

HE Philippines has aborted its plan Friday to file a diplomatic protest against Turkey over an apparent deal with the Bangsamoro Autonomous Region in Muslim Mindanao without the blessing of Malacañang, with Foreign Affairs Secretary Teodoro Locsin Jr. citing the “swift response” from Ankara’s envoy. “Aborted. Swift response from the Turkish ambassador. All cleared up,” Locsin said on his Twitter account. Two hours earlier, the Department of Foreign Affairs chief tweeted that the Philippines was also considering breaking diplotmatic ties with Turkey and looking into charges against officials of the BARMM. Bangsamoro Chief Minister Murad Ebrahim met with Turkish officials last week, even if the DFA had recommended that it be postponed. Locsin had planned to propose ending Manila’s ties with Ankara if the latter did not repudiate the meeting between Murad and Turkish officials.

Locsin had called the unsanctioned meeting “a slap at Philippine sovereignty and an attack on our territorial unity and integrity.” Meanwhile, the DFA on Friday said seven more Filipinos have been repatriated from Libya as the fighting in the outskirts of Tripoli rages on. In a statement, the DFA through the Philippine Embassy in Libya, said the seven repatriates comprise the 13th batch of overseas Filipinos who decided to return to the country since fighting in Libyan capital started eight months ago. “This brings to 149 the total number of Filipinos from Tripoli and surrounding areas who were assisted by the Department of

Foreign Affairs and the Department of Labor and Employment in returning to the Philippines since April,” the statement added. At 6 p.m., Locsin tweeted a photo of his meeting with Turkish Ambassador to the Philippines Artemiz Sümer and described the meeting as cordial, ABS-CBN reported. “I met w/ Turkish Amb. Artemiz Sümer to clear up the misunderstanding. We both agreed to continue to coordinate all engagements with BARMM together. I reaffirmed to my good friend Amb. Sümer that my affection for Turkey has only increased w/ the swift resolution of this issue,” he tweeted. In a CNN Philippines report, Locsin, in an earlier tweet that he had deleted, posted a summary of points on the visit of Murad to Turkey. It stated that Turkish national agencies expressed interest in entering into formal agreements or steering committees with the BARMM instead of the Philippine government. The document also stated that there

is a “lack of reference” to the Philippine government’s role in the peace process or on any of the topics discussed during the meetings. The DFA Office of the Undersecretary for Civilian Security and Consular Concerns initially recommended that the meeting be postponed as “the information on the meeting/visit did not go through the proper vetting process,” the document showed. However, the summary of points said the meeting had already happened when the DFA’s Office for European Affairs asked the Turkish Embassy in Manila to postpone it. Raul Hernandez, Manila’s envoy to Ankara, was also only invited to the meetings upon the DFA’s request, the document added. The document initially released by Locsin on Twitter said Turkey “thought it was okay” to invite Murad to official meetings as he had authority to travel, CNN reported. Rey Requejo

Lawmaker bats for regulating motorbikes used as PUVs By Rio N. Araja KABAYAN Party-list Rep. Ron Salo is pushing for the regulation on the use of motor bikes as public utility vehicle. Salo, along with South Cotabato Rep. Ferdinand Hernandez, filed House Bill No. 03569 (An Act Allowing and Regulating the Use of Motorcycle as Public Utility Vehicles, Amending for this Purpose Republic Act No. 4136, or The Land Transportation and Traffic Code, and for Other Purposes. “We continue to have these public transport service problems and monopoly issues because our Land Transportation Franchising and Regulatory Board, Metropolitan Manila Development and Land Transportation regulations are rooted in the 1964 Land Transportation and Traffic Code and the 1949 Civil Code of the Philippines,” he said. “My House Bill 3569 updates our archaic transportation laws and will uphold the welfare of all parties in controversies like the

RIDERS’ PROTEST. Riders of motorcycle ride-hailing app Angkas gathered at Mendiola, Manila on Dec. 27 to air their appeal to President Rodrigo Duterte to hear their grievances with regards to their uncertain status starting next year. Norman Cruz

current one involving Angkas,” he said. we could give to Angkas and habal-habal “Under the existing laws, motorcycle is riders is that the government would recognot among those in the list that are allowed nize them as PUVs,” he added. as public transport. The best Christmas gift He said Republic Act 4136 and Civil

Overnight parking at NAIA suspended By Joel E. Zurbano

OVERNIGHT or long-term pay parking at the Ninoy Aquino International Airport will be temporarily prohibited to ease traffic going to and from the airport during the rest of the holidays. “Overnight parking in all NAIA Terminal parking areas is suspended beginning Dec. 26, 2019 until Jan. 5, 2020,” officials of the Manila International Airport Authority-Media Affairs Division said in a statement. MIAA chief information officer Connie Bungag said the temporary interruption of service at the airport will allow the authority to address the requirement of the bigger majority of motorists using the NAIA parking areas. The airport authority has anticipated the arrival of an increase number of air travelers, including overseas Filipino workers, in four terminals this month to spend and enjoy their vacations with friends and families this holiday season. Major airlines advised passengers to be at the airport at least two hours before departure for domestic flights, and three hours for international flights in anticipation of the increase numbers of passengers during the holidays. The Cebu Pacific Air and its sister airline CebGo urged all passengers to allot ample time for security inspection, immigration screening, check-in, bag drop and other pre-departure requirements.

‘Electrical, not arson caused Star City fire’ ELECTRICAL problem caused the fire that razed the Star City amusement park in Pasay City last October. This was the conclusion reached by investigators of the Bureau of Fire Protection, as the agency denied that arson caused the fire, as earlier claimed by some officials. BFP spokesman Senior Supt. Gerandie Agonos, it was an electrical problem that caused the fire, but did not give any specifics. Earlier, an investigator said evidence, including “gasoline in an area where it should not be,” pointed to arson. He added that a certain Mr. Wong and Star City personnel who did not sign a logbook were also allegedly spotted carrying sacks of cotton before the Oct. 2 fire. But the Star City management rejected this, saying there was no reason for the owners to set the theme park on fire because business was “profitable” and “a bumper Christmas season was expected.” The park management said Star City will reopen “in due time,” according to its website.

Du30 lauded for retaining PAO’s forensic lab budget PUBLIC Attorney's Office chief Persida Acosta has lauded President Rodrigo Duterte for extending the utilization of PAO's maintenance and other operating expenses for the use of its forensic laboratory division. At a news conference, Acosta thanked the President for his support. “We are still allowed to proceed with our forensic examinations until 2020,” she told reporters. He maintained the legality of their forensic services and laboratory, saying in 2017, the Department of Justice even directed PAO to conduct investigations into Dengvaxia-linked deaths. Dr. Erwin Erfe earlier announced the temporary suspension of the forensic laboratory division after Albay Rep. Edcel Lagman inserted amendments to the National Expenditure Program/General Appropriations Bill limiting the use of MOOE for the operation of PAO's forensic laboratory division. Acosta wrote the President, asking him to “veto the inserted special provision in the GAB limiting the PAO in the use of its MOOE and prohibiting the use of funds for the meetings and other maintenance and operating expenses of the PAO Forensic Laboratory Division.” Last Thursday at a private funeral parlor in Quezon City, Erfe, along with other forensic doctors, conducted an autopsy on the 151st victim, who received two vaccine shots of Dengvaxia in 2017 and in February 2018 at a health center in North Caloocan City. “Surprisingly, there was still a vaccination in 2018,” he said. The 14-year-old victim who suffered from dengue in September died due to cardiorespiratory arrest on Dec. 26 early morning. She was also diagnosed of having leukemia in November. Erfe said based on forensic findings, the victim1 suffered from the enlargement of her liver and other internal organs and massive bleeding in the brain. Rio N. Araja

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Code are obsolete laws passed under the administration of the late Presidents Diosdado Macapagal and Elpidio Quirino, respectively.

Close to 200 felons nabbed; P23-m drugs seized in NCR ops CLOSE to 200 wanted persons were arrested while more than P23 million worth of various illegal drugs were confiscated during a simultaneous “one-time, big-time” operations in Metro Manila. From Dec. 24-26, a total of 240 police operations resulted to the arrest of 445 drug personalities and recovery of 3,493.03 kilos of shabu worth P23.752 million while 7,210.63 grams of marijuana valued at P864,835, National Capital Region Police Office acting chief, Brig. Gen. Debold Sinas said Friday. “Total seizure is P23 million for the last two days,” Sinas said during a press briefing at the Quezon City Police District Station 10. The Northern Police District has the highest amount of drug seizure with P10,994,104 worth of drugs; Southern Police District with P8,323,336; QCPDP1,980,364; Eastern Police District with P1,260,584; and Manila Police District with P1,194,243. In the two-day operation, Sinas said the least confiscation of drugs was from 5 to 10 grams. Through the Simultaneous Enhanced Managing Police Operations program, police synchronized operations against illegal drugs, loose firearms and felons. On the other hand, in the operations, 34 were arrested for loose firearms with the confiscation of 49 small arms, three light arms, and an explosive. Sinas said in the 181 police operations, there were eight top most wanted persons arrested and 172 others caught. He said the latest accomplishment was a result of a revised strategy to fight crimes, illegal drugs, and loose firearms. Under the guidance of Philippine National Police officer-in-charge, Lt. Gen. Archie Francisco Gamboa, operations were now focused on the specific wanted suspects. “Kung sino ang target ng operation, siya lang ang huhulihin natin [Whoever is the target of the operation, they are the people to get arrested],” Gamboa said. PNA

Opinion

SATURDAY, DECEMBER 28, 2019

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The magnificent Magnitsky Act

IN THE field of law, one of the best things that has happened recently is the enactment of the Global Magnitsky Act in the United States. It is expected that the European Union will enact a similar law soon. Likewise, it has been reported that Australia is considering a similar law. This is good for the world. This is good for the Philippines as well. I write this as a constitutional law and public international law professor in many law schools.

This is one of the best things that has happened recently. I would certainly want us to prosecute in the Philippines those who may violate the human rights of our overseas Filipinos. This is not and has never been about sovereignty. Human rights norms are universal, they transcend boundaries of both territory and time. If you violate the human rights of individuals and or groups, you should be held accountable anywhere and anytime. In public international law, human rights atrocities violate jus cogens norms— from which no derogation is permitted by way of particular agreement. Human rights are erga omnes rights or obligations that are owed toward all. There are actually two Magnitsky acts. The Global Magnitsky Act, the law now being applied against violators of human rights in the Philippines— those responsible for the massacre of the poor in the war against illegal drugs, those harassing Maria Ressa and Rappler, and those persecuting Senator Leila de Lima—is the second of two laws named after Sergei Magnitsky, a whistleblower who was killed in Russia.

Adelle Chua, Editor

EDITORIAL

The Sergei Magnitsky Rule of Law Accountability Act, known as the Magnitsky Act and enacted in 2012,orders and authorizes the United States State and Treasury departments to restrict the travel and freeze the assets of any individuals who have committed gross violations of human rights in Russia. The Global Magnitsky Act, on the other hand, extends the sanctions to human rights violators outside of Russia, including the Philippines. The Washington Post distinguishes the two laws: “Unlike the first law, this second law does not require the president to impose any sanctions. Instead, the global version gives the president the legal authority to institute a travel ban and asset freeze on human rights violators in any country, while leaving the president with the discretion to determine whether to do so. But to make it more difficult for the president to ignore the law, Congress included in the Global Magnitsky Act a requirement that the president respond within four months to requests from the heads of certain congressional committees for the executive branch to determine whether particular individuals engaged in human rights violations.” That is where we are now. The insertion of the provision on Senator De Lima, an amendment in the 2020 State and foreign operations appropriations bill and is now part of the US government’s 2020 budget signed into law by Trump last week, should be considered both the legislative request and the executive action rolled into one. It is now immediately executory and officials and individuals who have been complicit in De Lima’s persecution are now covered by the Global Magnitsky Act. The United States Congress and President Trump are not the first to make the judgement that Senator De Lima’s rights have been violated. As I have written in the past columns, the United Nations has chronicled how the rights of De Lima, as a detainee and accused, were and are being violated, particularly her rights enshrined in the Universal Declaration of Human Rights. According to the

But where’s the cash?

E GET stymied by reports, quoting the Bangko Sentral ng Pilipinas, suggesting that personal remittances or transfers in cash or in kind by Overseas Filipino Workers have grown by 7.7 percent to $2.97 billion in October.

The figures are the highest in 10 months since remittances came at $3.16 billion in December 2018, with year-to-date, personal remittances up by 4.3 percent at $27.6 billion. Despite remittances hitting record highs worldwide, reports by the US-based UniTeller, an international payments company, say Filipinos run out of cash due to poor financial planning, with monthly remittances from OFWs

now averaging more than 2.5 times the monthly income of recipients. The study suggests that half of remittances received by Filipino households—a little over 20 million—are used for daily needs (25 percent) and loan repayments (25 percent); the rest goes to education (13 percent); savings (13 percent) and non-essential luxury items (7 percent). UniTeller has noted that poor financial planning is experienced by almost 19 percent of families who admitted they regularly run out of money. Sad sign of the times indeed, that around 72 percent of Filipino families have admitted reaching out to their kin overseas when they run out of cash, while 53 percent will forego daily needs should this happen. And then there is the emotional stress involved, with 41 percent of

families saying the expectation of receiving remittances places such stress on the family and 54 percent saying this has an impact on their relationship with their sender-relatives. The UniTeller study has also shown that 78 percent of the respondents have a mobile wallet account and 97 percent have a smartphone. But that despite, families are still using popular cash transfer mobile applications, with around 67 percent of respondents saying they still use cash pick-ups, and less than half of 41 percent course cash through banks while 29 percent use mobile wallets. A mobile wallet is a virtual wallet that stores payment card information on a mobile device, seen as a convenient way for a user to make in-store payments and can be used at merchants listed with the mobile wallet service provider.

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2019’s unforeseen history-makers OF THE many people who made history in 2019, some surprised themselves and the world by emerging from obscurity to make their mark, though one remains anonymous for the time being—“The Whistleblower” behind the impeachment probe into US President Donald Trump. Following are brief profiles of eight history-makers in politics, climate and humanitarian activism, music and astronomy who were unknown quantities in 2018. Trump impeachment ‘Whistleblower’ Although huge efforts have been made to expose him, the person whose complaint threatens to bring down the president of the United States is still known only as “The Whistleblower”. Reliably reported to be a mid-level, male CIA analyst in his early 30s who specialises in Eastern European issues and previously worked in the White House, he filed an anonymous complaint in August charging that Donald Trump pressured Ukraine counterpart Volodymyr Zelensky to help find dirt on his Democratic rivals—a violation of US laws against seeking foreign help in US elections. It was a finely written, nine-page memo describing specific Trump actions, and while it was based on secondary sources —his colleagues in the intelligence and diplomatic communities—first-hand witnesses have corroborated what he said, and more, in the months since it surfaced. By sending his complaint to the inspector general for the US intelligence community, The Whistleblower set in motion a series of reviews and then news articles that quickly snowballed into the House impeachment probe that may see Trump put on trial in the Senate in the new year. Many whistleblowers stay anonymous, and some collect million-dollar rewards for exposing fraud. But this one will not gain a reward and likely will not remain unknown. Conservatives have already circulated a name and photograph online. Republicans in Congress have tried to expose him, alleging he is a Democrat out to get Trump. But the impeachment process he sparked now fuels itself, meaning that, outed or not, his impact will long be felt in Washington politics. Greta Thunberg, 16, climate activist What started as humble protest has turned Greta Thunberg into the world’s green conscience and the voice of a gener-

ation’s frustration with inaction on climate change. Time magazine this month named her 2019 Person of the Year. It all started in August 2018 when Thunberg decided to skip school and sit outside Sweden’s parliament, holding a sign reading “school strike for the climate.” Within months her struggle gained worldwide attention and the shy 16-yearold—with her piercing eyes and trademark braids—found herself addressing world leaders at the World Economic Forum in Davos and at the European Parliament. Young people from around the world began staging their own school strikes, and the “Fridays for Future” movement was born. Following her ethos of avoiding air travel, she crossed the Atlantic on a zeroemission sailboat to attend a UN climate summit in New York in September. The Stockholm-born teenager’s eyes brimmed with tears and her voice cracked with emotion as she delivered a fiery speech to world leaders. “How dare you?” she thundered. “You have stolen my dreams and my childhood with your empty words.” Thunberg, the daughter of an opera singer mother and an actor-turned-producer father, has also faced severe criticism and been subjected to a swarm of online conspiracy theories. Some have mocked her youth, called her a puppet of doomsayers or tried to discredit her because of her Asperger’s syndrome, a diagnosis she has never hidden. But no one can deny that the passionate climate activist’s struggle has helped put climate change back at the top of the agenda. A survey published by the European Commission in April found that six in 10 Europeans thought “climate change is one of the most serious problems facing the world,” an increase of 17 percentage points compared with 2017. Hong Kong students Brandishing Molotov cocktails, blackclad Hong Kong students cast off their bookish, meek image in 2019 to become a global symbol of democratic resistance in the face of unyielding authoritarian power. Crowds have marched peacefully for greater freedoms since Britain’s handover to China in 1997. But this year saw pentup anger explode in ways once unimagiTurn to A5

Bleak prospects for 2020? Let us hope against all odds that next year will be better. BROWSING through news reports these days may not be a good morning activity especially for those facing challenges in life during this holiday season. It is quite rare to find news to lift one’s spirit. Before sitting down to write this piece, I went through my usual routine of going through the news and read these among others: tropical cyclone Ursula killed 28 people while 12 remain missing; two towns in Cebu —Daanbantayan and Madellin—are under a state of calamity, and many towns remain without electric power; 16 people from Laguna and Quezon provinces were poisoned and killed because of methanol in toxic lambanog; a 35-year-old carpenter, Rhyan Cuarteros, was shot dead in front of his wife and two daughters inside their small home on Christmas Day allegedly over illegal drugs; and a tricycle driver, Dondon Jacinto was gunned down and killed in what police suspect as drug or gambling-related incident. Crimes, calamities, and deaths seem

to dominate the news outside of the usual political wrangling between proand anti-Duterte personalities. An interesting development on the international political arena is the growing initiative among various countries to protect human rights and sanction violators. There have been reports about the United States’ banning entry to, and freezing of properties in the US of those responsible for jailing Senator Leila de Lima and those actively supporting Duterte’s bloody ‘war on drugs’; Sass Rogando Sassot, Duterte’s social media propagandist’s announcement that she would stop political blogging and give up her Filipino citizenship to become a European, which was met by a petition asking the Netherlands, where Sassot resides, and a country that champions human rights in the European Union, to reject Sassot’s bid for citizenship; and the reported failure of some police and military officers to secure Canadian

visas over lengthy scrutiny of their Mindanao military records. To retaliate, Presidential Spokesperson Panelo just announced ordering the Bureau of Immigration to deny entry into the country of US Senators Dick Durbin and Patrick Leahy. Also, Americans shall be required to secure visas to enter the Philippines should the ban on entry of Filipino officials involved in jailing De Lima be implemented. Malacañan is playing tit-for-tat with the US government. The question is, will this administration also ban citizens of other countries implementing their own Magnitsky Law? With only a few days before the year 2020 is ushered in, it is hard to be optimistic about the country’s immediate future. Duterte’s bloody “war on drugs” continues. The President himself said in so many instances. While there are now more news about suspected drug pushers being arrested and not killed, reports about killings over drugs remain. Moreover, no big-time drug lords are put to jail and there are hardly any reports of arrested small-time suspects being released. Remember the images of our congested jails that surfaced at the Turn to A5

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Opinion

SATURDAY, DECEMBER 28, 2019

Peace is farthest from communists’ mind peace negotiations between the government and the communist National Democratic Front have failed, owing to the latter’s onerous conditions, such as the massive release of its detained comrades facing criminal charges. IT’S a welcome development that both the government and the Communist Party of the Philippines have declared a unilateral ceasefire during the holidays through January 7th. Certainly, one of the foremost things that Filipinos hope to achieve in the coming year is lasting peace. Once more, the current leadership reflects this sentiment by opening the door to yet another possible peace talks with the CPP. President Rodrigo Duterte sent a panel led by Labor Secretary Silvestre Bello to reach out to the camp of selfexiled CPP founder-leader Jose Ma. Sison in The Netherlands. Time and again, such attempts to establish parameters to initiate actual

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We have always doubted their sincerity. It is as if the NDF, CPP and the New imPeople’s Army deliberately impose im possible preconditions to stymie the prospect of peace. It seems that the communists’ appearances in exploratory talks with the government have been all for show. This latest attempt to forge an agreement to formally pave the way for peace Recently retired Associate Justice Carpio rightly observed that based on the information itself, the charges against petitioner is blatantly a pure invention; indeed, the information is laughable if not for the non-bailable detention of the accused. Because of this, we have, according to the eminent Justice, one of the “grossest injustices” in recent memory. Justice Marvic Leonen also registered his strong dissent to the majority opinion and found disturbing the unsettling of established doctrines, the misapplication of unrelated canons and failure of the majority to render a good judgment. Carpio and Leonen were joined by Chief Justice Maria Lourdes Sereno and Associate Justices Benjamin Caguioa, Francis Jardeleza, and Estela Bernabe who also submitted strong dissents. I tell my students that like many Marcos-era decisions- for example Javellana vs. Executive Secretary that paved the way for the 1973 Constitution to be in effect and that awful decision Ilagan vs. Enrile decision thatjustified the arrests of three heroic human rights lawyers from Davao City—the dissents in the De Lima case will be more remembered than the majority decision. I am also sure that in the near future, a courageous Supreme Court will apply the precedent established in Brocka vs Enrile—that any prosecution tainted by politics and especially by the anger of a president must be set aside and have all its proceedings annulled. In the meantime, we have the magnificent Magnitsky Act.

UN Working Group, the evidence and charges against Ms. De Lima were manufactured and fabricated upon the orders from the highest official of the land. Worse, according to the UN Working Group opinion following the President’s orders, the Secretary of Justice pronounced the guilt of Ms. De Lima in public even before any formal government investigation had been conducted against her. But despite strong evidence that the rights of De Lima for a fair trial have been violated, and the calls by local and international organizations for her release, the Duterte administration refuses to budge and release her from detention. As for our Supreme Court, I have analyzed that case in depth and have taught it to dozens of classes and hundreds of students and plainly put, a proper Summation of Votes of the Court in the De Lima case shows that only five justices consistently upheld all the actions of the lower court upon the purported grounds and basis that it so acted, i.e., the Information is sufficient in charging Illegal Drug Trading, and that probable cause exists that this crime was committed by De Lima. But five is not a majority. How the petition was therefore dismissed on the basis of the vote of a minority of five, the dissenting votes of six, and the concurring but actually nonconcurring votes of three justices on the vital issues of what crime is actually charged and whether probable cause was properly determined to exist Facebook: Dean Tony La Vina for this crime, is the million-dollar Twitter: tonylavs question in any bar examination.

talks has barely started when the NPA killed a policeman, two civilians, and injured several others in Borongan, Eastern Samar last Dec. 13. Many instances like this have put into question the communists’ sincerity going into peace negotiations with the government over the decades. Not quite a few believe as I do that ultithe NDF-CPP-NPA movement’s ulti mate goal is by any means overthrow the government and defeat the Armed Forces of the Philippines. Unless it is clear that the communists shun their ill designs, then there is no point for the Duterte administration to put up with the enemy’s pretenses. In stark contrast, the hope for lasting peace in the South has dawned magnificently with the process of establishing the Bangsamoro Autonomous Region for Muslim Mindanao. Perhaps peace is farthest from the communists’ mind.

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nable for a financial hub that has always prided itself on stability and safety. What started as a popular protest over a proposed bill allowing extraditions to mainland China morphed into a popular anti-Beijing revolt and turned the city’s tourist shopping districts into brickstrewn urban battlegrounds. The typical frontline protester is university educated and under 30. Arrest and injury figures suggest around a third of those who have taken to the streets are women. Gas masks with bright pink filters— dubbed “pig snouts” in Cantonese—became ubiquitous as people sought to conceal their identities. In a year that saw major unrest in the streets of Catalonia, Chile and Venezuela, the David and Goliath image of the leaderless protest movement in Hong Kong caught the global imagination, triggering messages of solidarity from around the world and statements of support from the EU, UN and United States. Embracing the slogan “Liberate Hong Kong, revolution of our time”, protesters have battled with riot police, stormed the local legislature and spray-painted their core issues and demands across the city, shredding the notion of a peaceful transition to complete Chinese control in 2047 envisaged in the 50year “one country, two systems” deal. Close to 6,000 protesters have been arrested with nearly 1,000 charged. But the crowds keep coming and there is little sign the movement’s more moderate supporters are going to abandon frontliners they have dubbed “the braves”. Faced with regular warnings from Beijing of disastrous consequences should the unrest continue, the protesters have responded with their now omnipresent chant: “If we burn, you burn with us.” (To be continued)

The enduring mystery of a giant butterfly By Camille Laffont SUSPENDED from branches high above the ground, Nicolas Moulin looked through his binoculars over a seemingly endless sea of emerald green. Somewhere beneath the forest canopy was the African giant swallowtail: the largest butterfly to appear by day on the African continent, virtually unrecorded in scientific annals but known to be venomous. The species, known in Latin as Papilio antimachus, was discovered in 1782. Its black-streaked orange-brown wings are extraordinary. They reach up to 25 centimeters (9.8 inches) across, making it one of the largest butterflies in the world. But, just as remarkable, nobody has ever been able to study the creature in its state as caterpillar or chrysalis— keys to understanding its life cycle and longevity. Seeking to unlock the mystery, a privately-financed French expedition of about 20 people set up camp in the far south of the Central African Republic, on the banks of the Lobaye river, which winds like a copper snake through primary forest. “This is a place for poachers— the male (butterflies) come to ingest mineral salts on the bank and are captured,” Moulin said from his perch 40 meters (130 feet) above the ground. Collages created from the wings of butterflies are a prized art form in the CAR and provide a living for many hunters. Abroad, a giant swallowtail specimen can sell for 1,500 euros ($1,700). The males flutter close to the ground but the females live right up in the forest canopy. There, they feast on flowers exposed to direct sunlight and are hardly ever seen. “This species, like many others,

is becoming increasingly rare,” said the expedition’s senior scientist, entomologist Philippe Annoyer. But how rare is the big question. P. antimachus is so elusive that there is insufficient data to determine its conservation status. “The details we have date from the 1960s and consist of half a page in a scientific journal,” said Annoyer. Poisonous The researchers speculate that the giant butterfly most likely gets its venom when its caterpillar ingests the leaves of Strophanthus gratus—a thick, woody liana that winds among the treetops and bears flagrant flowers. The team planned to pinpoint the flowers in the forest canopy with the help of a drone. Then, it was hoped, they could set up a sophisticated network of ropes enabling people to move around the heights to explore the whole length of the liana. That way, they might find a P. antimachus caterpillar, according to this scheme... even though nobody knew quite what these caterpillars looked like. The uncertainties were no deterrent to scientists whose faces light up at the sight of a rare fern or a praying mantis. The team was given three weeks to study in ideal terrain. Hope to breed species The challenge was rugged but Annoyer, a Frenchman born in Ivory Coast, was in his element. An entomologist who might almost be an ancient bushman, with chiseled features and a thick beard, he has been studying the butterflies of central African forests for more than 30 years. For three decades, Annoyer has also sought to alert the general public to the extinction of these exquisite species, largely in vain. He hopes that in unveiling the

crucial early stages of the life cycle of this African giant, this will encourage people to breed the butterfly. “The idea is that the local population will be able to provide insects to collectors and (local) artists, and this will brake butterfly hunting,” he says. But after three weeks of trekking, climbing and making inquiries in surrounding villages, the team had still found no trace of the caterpillar or the chrysalis. Strange silence Around the camp, the forest fell strangely quiet. There were no rodents on the ground nor primates or birds in the branches. But wire snares left by hunters were everywhere. Each hollow in the stream was deepened by a hole dug by artisanal gold or diamond miners engaged in the main form of subsistence for many local inhabitants. The armed groups that control twothirds of the territory in a country long riven by violent upheaval have never taken root in this forested region—but its economic prospects are as barren as for the rest of the poor, landlocked CAR. The passing days brought their share of disappointments to the expeditionary team, heightening the frustrations. In one traumatic setback, army ants found their way into a cage holding one of the few specimens of male African giant swallowtails captured in the expedition. The ants devoured the butterfly in moments, leaving just one wing and a flimsy leg to take back to the laboratory. The last best hopes now lie with botany samples, which may help to identify the plant that female butterflies use to lay their eggs. But even if this does not work out, the expedition will at least have enabled a first-hand look at the state of forests in this impoverished conflict-ravaged land. AFP

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The year we woke up to the climate emergency By Laure Fillon SCHOOLCHILDREN skipping class to strike, protests bringing city centers to a standstill: Armed with dire warnings from scientists, people around the world dragged the climate emergency into the mainstream in 2019. Spurred on by Swedish wunderkind Greta Thunberg—virtually unknown outside of her homeland a year ago but now a global star nominated for a Nobel prize—millions of young people took part in weekly demonstrations demanding climate action. And, like harbingers of the apocalypse, the Extinction Rebellion movement embarked on a campaign of peaceful civil disobedience that spread worldwide, armed with little more than superglue and the nihilistic motto: “When hope dies, action begins.” Although scientists have warned for decades about the risk to humanity and Earth posed by unfettered burning of fossil fuels, in 2019—set to be the second hottest year in history—their message seems to have finally hit home. The 2015 Paris agreement saw nations commit to limiting global warming to two degrees Celsius (2.7 Fahrenheit) above pre-industrial levels as a way of curbing the worst impacts of global warming. A safer cap of 1.5C was included as a goal for nations to work towards. With Earth having already warmed by 1C, the United Nations Intergovernmental Panel on Climate Change dropped a bombshell late last year. Its landmark report in October 2018 laid the groundwork for the string of climate shockwaves that rumbled throughout 2019: The world is way off course for 1.5C, and the difference between 1.5C and 2C could be catastrophic. “The message from scientists was that each half-degree counts,” said Amy Dahan, a science historian specializing in climate at France’s National Centre for Scientific Research. It was a message heard around the world. For Corinne Le Quere, president of France’s High Commission for Climate Change and member of Britain’s Committee on Climate Change, 2019 was “something new.” “I’ve worked on climate change for 30 years and for 29 of those, as scientists, we’ve worked unnoticed,” she told AFP. The IPCC report concluded that global CO2 emissions must drop 45 percent by 2030—and reach “net zero” by 2050—to cap temperature rise at 1.5C. “It’s given us a clear timeline: we have 12 years to act,” said Caroline Merner, 24, a Canadian member of the Youth4Climate movement. The UN last month said carbon emissions must decline 7.6 percent annually by 2030 to stand any chance of hitting 1.5C. Scientists meanwhile said emissions this year will instead rise 0.6 percent. Despite growing mobilization and

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awareness, COP25—the climate summit in Madrid this month—barely squeezed out compromises from countries over a global warming battle plan that fell well short of what science says is needed to tackle the climate crisis. Annus horribilis But while society and particularly younger generations appear to have woken up to the threat of climate catastrophe, industry shows little signs of sharing their urgency. Greenhouse gas emissions are once again set to rise in 2019 after hitting a record in 2018, as extreme weather events—made more likely as the planet warms—struck seemingly everywhere this year. Cyclone Idai in Mozambique, typhoon Hagibis in Japan, a deadly, record-breaking heatwave across much of Europe, wildfires in California and eastern Australia, floods in Venice... the list goes on. The threat posed by climate change became so stark in 2019 that Indonesia, one of the fastest-growing economies on Earth, decided to move its capital to somewhere that wasn’t sinking. “We’re seeing climate change with our own eyes,” Le Quere said. “Reality is forcing us to act.” The science came thick and fast this year, with the IPCC releasing two additional special reports on land use and oceans, and another UN body, IPBES, issuing a stunning warning of the threats posed by human activity to the natural world. Faced with an unbreachable body of evidence and mounting pressure from the streets, governments in 2019 started, slowly, to mobilize. A total of 66 nations now have plans to be carbon-neutral by 2050. The cities of London and Paris declared official ecological and climate emergencies. Yet there are fears meagre progress could be undermined as developing economies appear no closer to ditching fossil fuels and the United States— the largest historic emitter—looks poised to complete its Paris pullout. ‘Climate makes us equal’ Environmental activism, of course, is nothing new. As Alfredo Jornet, professor at the University of Oslo, pointed out, indigenous peoples “have been very active for a long time” in protesting against climate change and deforestation, often to little fanfare. “It’s easy to be worried about the climate when you have money and privilege,” said Melina Sakiyama, 34, a Brazilian activist. With the deadline for countries’ Paris commitments looming, as well as a series of high-profile environment summits in 2020, this year is unlikely to be a one-off in terms of climate action. “The question is how to mobilize this unrest in a way that can lead us to better, more peaceful, democratic and sustainable societies,” said Jornet. “In a sense, climate change makes us all more equal. It makes us more capable of acting together.” AFP rationing of this precious commodity. Our lives revolved around the faulty schedules of water service provided by water concessionaires. People swore that this should never happen again. However, with the ongoing problems between the concessionaires and the administration and without reports of solutions against another water crisis being implemented, there is reason to dread the coming summer. Hopefully, a miracle happens and the impending shortage is averted. What about traffic? Spending an average of four hours in traffic daily is not a joke whether one is a commuter or drives one’s vehicle. Yet, judging by what we see and experience, coupled with government inefficiency and fondness for ‘band-aid’ solutions, traffic may not ease up. With all the road construction going on, it might even get worse in 2020. People might choose to stay put more and for those who can, find ways to work from home instead. Quality of life in Metro Manila continues to deteriorate. No wonder, not a few now choose to relocate to less problematic areas. They are the lucky ones who have options. For those who do not, we just have to bear it until things improve. Those outside the Metro face other challenges. And these are not any less difficult. Soon we will say goodbye to 2019 and say hello to 2020. Despite the bleak prospects, let us hope against all odds that next year will be better. And roll our sleeves up to make it a bit better.

height of tokhang operations? Is it any better now? Hopefully, drug-related killings will fully stop. By now, the administration should already know that killings will not solve the drug problem. This year, earthquakes have frequented the country occurring in the major island groupings of Luzon, Visayas, and Mindanao. There is no telling what will come next year and everyone must be prepared for the worst. The warnings against the “big one” have been up for some time especially in Metro Manila and these must be heeded. Both government and the public should be on alert for any eventuality. The effects of climate change are real. Yearly, Filipinos suffer and not a few die because of strong typhoons that hit us. Livelihoods, homes, and properties are lost and for many, never regained. Our roads get flooded easily and this results in inconvenience and suffering among our workers and students. Has anyone counted the number of class suspensions that happened this year due to strong storms? What about the quality of education of our youth? Isn’t this affected by the too-frequent “walang pasok” days? Is there no solution in sight? Water is a necessity in life. While we are hit by storms and rains pour hard, we also are hit with water-shortage crisis. Remember how Metro Manilans suffer last summer? That was a very hard period when people had to go without water at times, source water @bethangsioco on Twitter Elizabeth elsewhere, or rely on hit-and-miss Angsioco on Facebook

Standard A6 SATURDAY, DECEMBER 28, 2019 Manila

TODAY

standards, tax, legal and regulatory requirements; and Coordinate, monitor and facilitate compliance with applicable laws, rules and regulations. CHAPTER VI COMPLIANCE REQUIREMENTS

SEC MEMORANDUM CIRCULAR NO. 25 Series of 2019 : ALL SEC REGISTERED NON-STOCK CORPORATIONS

SUBJECT : 2019 GUIDELINES FOR THE PROTECTION OF SEC REGISTERED NON-PROFIT ORGANIZATIONS FROM MONEY LAUNDERING AND TERRORIST FINANCING ABUSE (“2019 NPO Guidelines”) ************************************************************************************************************* By the authority vested in the Securities and Exchange Commission (SEC) under Republic Act No. 11232 otherwise known as the Revised Corporation Code of the Philippines (RCC) and pursuant to its mandate to assist in the implementation of the Anti-Money Laundering Act (AMLA), as amended, and the Terrorist Financing Prevention and Suppression Act (TFPSA) and their respective Implementing Rules and Regulations, the Commission En Banc in its meeting on10 December 2019 approved the here in amendment of SEC Memorandum Circular No. 15, Series of 2018 entitled Guidelines for the Protection of SEC Registered Non-Profit Organizations from Money Laundering and Terrorist Financing Abuse (“2018 NPO Guidelines”) CHAPTER I TITLE, SCOPE, PURPOSE AND DEFINITION OF TERMS Section 1.1. Title. These Guidelines shall be known as the “2019 Guidelines for the Protection of SEC registered Non-Profit Organizations from Money Laundering and Terrorist Financing Abuse” or the “2019 NPO Guidelines”. Section 1.2.Scope.These Guidelines shall be observed by all Non- Stock Corporations registered with the Commission unless otherwise indicated herein. Section 1.3.Purpose.In order to establish the necessary regulatory framework for the protection of SEC registered non-profit organizations from money laundering (ML) and terrorist financing (TF) abuse in accordance with the Commission’s mandate under the RCC to ensure that corporate entities subject to its supervision and registration are not organized or used for purposes which are contrary to law, and pursuant to Section 2.1, Rule 7 of the 2018 IRR of the AMLA, as amended, the following Guidelines are hereby adopted. Section 1.4. Definition of Terms. Except as otherwise defined herein, all terms used shall have the same meaning as those terms that are defined in the RCC and other related laws as well as issuances by the Commission. 1.4.1. “COEP” – refers to the “Certificate of Existence of Program/Activity,” in accordance with the relevant guidelines prescribed by the Commission. 1.4.2. “Commission” – refers to the Securities and Exchange Commission. 1.4.3. “Foundation” – refers to a non-stock, non-profit corporation established for the purpose of extending grants or endowments to support its goals and/or raising funds to accomplish charitable, religious, educational, athletic, cultural, literary, scientific, social welfare or other similar objectives and registered as a Foundation with the Commission. 1.4.4. “Non-Stock Corporation” – refers to a corporation with no authorized capital stock and no part of its income is distributable as dividends to its members, trustees, or officers. 1.4.5. “Non-Profit Organization” (“NPO”) – refers to an SEC registered Non-Stock Corporation that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of good works. For purposes of these Guidelines, NPOs shall include Foundations. 1.4.6. “NPOs at Risk” – refers to the NPOs or subset of NPOs identified as at risk of ML or TF abuse based on a risk assessment of the NPO Sector conducted by the Anti-Money Laundering Council (AMLC) and/or the SEC. 1.4.7. “Politically Exposed Person” (“PEP”) –refers to an individual who is or has been entrusted with a prominent public position/function in: a) the Philippines with substantial authority over policy, operations or the use or allocation of government-owned resources; b) a foreign state, or c) an international organization. It shall be presumed that a person who has been entrusted with a prominent public position/ function as referenced above shall continue to be considered a PEP, even if he or she no longer holds such a position, unless it is clearly shown otherwise. The term “PEP” shall include immediate family members, and close relationships and associates that are reputedly known to have: (1) joint beneficial ownership of a legal entity or legal arrangement with the main/ principal PEP, or; (2) sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of the main/ principal PEP. Immediate family members of PEPs refer to spouse or partner, children and their spouses, parents and parents-in-law, and siblings; Close Associates of PEPs refers to persons who maintain a particularly close relationship with the PEP, and include persons who are in a position to conduct substantial domestic and international financial transactions on behalf of the PEP. Close Associates may include: (1) beneficial owners of a legal entity or legal arrangement that is known to exist for the benefit of the main/ principal PEP; (2) business partners or associates, especially those that share beneficial ownership of legal entities or legal arrangements with the PEP; (3) persons who are otherwise connected to the PEP (e.g., through joint membership of a company board); (4) prominent members of the same political party, civil organization, labor or employee union as the PEP; (5) persons (sexual and/or romantic) partners outside the family unit (e.g. girlfriends, boyfriends, mistresses, etc.). 1.4.8. “SS” – refers to the “Sworn Statement by the President and Treasurer of the Sources, Amount, and Application of Funds and Program/Activity Planned, Ongoing, and Accomplished,” in accordance with the relevant guidelines and format prescribed by the Commission. 1.4.9. “UN Sanctions List” – refers to the Consolidated United Nations Security Council (UNSC) Sanctions List related to terrorism and terrorism financing of countries, persons and/or entities, including all subsequent updates and/or amendments thereto by the UNSC CHAPTER II RISK-BASED MEASURES Section 2.1. In order to ensure that NPOs are not misused by terrorist organizations: (i) to pose as legitimate entities; (ii) to exploit legitimate entities as conduits for terrorist financing, including for the purpose of escaping asset freezing measures; or (iii) to conceal or obscure the clandestine diversion of funds intended for legitimate purposes, but diverted for terrorist purposes, the Commission may apply focused measures it deems necessary in dealing with identified threats of ML and TF abuse to NPOs based on a risk assessment conducted by the AMLC and/or the SEC Section 2.2. The following measures are hereby adopted to protect NPOs from ML and TF abuse without being unduly disruptive of legitimate NPO activities, to wit: 2.2.1. 2.2.2. 2.2.3. 2.2.4.

Promote transparency among NPOs; Adoption of good governance policies for NPOs; Proportionate and risk-based supervision and monitoring; and Sustained Outreach Programs;

Section 2.3.For the purpose of applying risk-based measures, the SEC, in coordination with the AMLC, shall develop and promulgate a risk rating system for all SEC registered NPOs. Section 2.4.In the event that certain NPOs are identified as being at risk of ML or TF abuse, the Commission may adopt proportionate monitoring and supervision measures for such NPOs and require them the applicable compliance requirements under Section 6.1. of these Guidelines. CHAPTER III PROMOTING TRANSPARENCY Section 3.1. In order to promote transparency and maintain public trust in NPOs, NPOs are encouraged to make publicly accessible online, accurate, current and complete information regarding their status, finances, expenses, projects, activities, those who control or direct such activities, composition of their governing boards, and their beneficial owners among other material information. The transparency and trustworthiness of such NPOs may be used by the Commission as basis, among others, in including said NPOs in an accredited list or any similar listing. CHAPTER IV GOOD GOVERNANCE SYSTEM Section 4.1. To promote accountability, integrity, and public confidence in the administration and management of NPOs, the Commission hereby adopts policies on good governance which shall apply to all NPOs as defined herein. Section 4.2. The following are characteristics of a good governance system in an NPO: 4.2.1.Organizational integrity – The board of trustees maintains oversight over the organization by establishing strong financial and human resource policies, meeting on a regular basis, and actively monitoring activities. 4.2.2. Partner relationships – The board of trustees ensures that proper due diligence is carried out on individuals and organizations that (a) donate money or funds (i.e., donors), (b) receive money (i.e., beneficiaries) or (c) work closely with the NPO, through the use of selection criteria and searches of publicly available information, including domestic blacklists and UN sanctions lists. The board of trustees may execute agreements to outline the expectations and responsibilities with partners, including detailed information as to the application of funds and compliance with requirements for regular reporting, audits and on-site visits. 4.2.3. Financial accountability and transparency – The board of trustees approves an annual budget and follows a process to monitor the use of funds. The board of trustees also mandates that its NPO keep adequate and complete financial records of income, expenses, and financial transactions throughout its operations, including with respect to the use of its funds. NPOs clearly state program goals when collecting funds, and ensure that funds are applied as intended and consistent with the purpose of the organization. Information about the activities of the NPOs shall be made publicly available. NPOs are informed as to the sources of their donations and establish criteria to determine whether donations should be accepted or refused. 4.2.4. Record keeping - The board of trustees mandates its NPOs to maintain, for a period of at least five years, records of domestic and international transactions that are sufficiently detailed to verify that funds have been received and spent in a manner consistent with the purpose and objectives of the organization, and to make these available to the Commission. 4.2.5. Program planning and monitoring – The board of trustees requires its NPO to establish appropriate internal controls and monitoring systems to ensure that funds and services are being used as intended. CHAPTER V INTERNAL AUDIT SYSTEM Section 5.1. To strengthen adherence to good governance principles and to ensure a high standard of best practice for the NPOs at Risk and its members, they shall establish an audit committee, or appoint a responsible officer or employee, whose responsibility is to perform the audit functions as described below. If an audit committee is established, it shall consist of at least three (3) trustees who shall preferably have accounting and/or finance backgrounds and/or with audit experience. Similarly, the appointed officer or employee to perform such audit function shall preferably have the same qualifications. Section 5.2. The functions of the audit committee or the officer or employee appointed to perform the audit functions include the following: a)

b) c)

d) e) f)

Assist the board of trustees in the performance of its oversight responsibility for the financial reporting process, system of internal control, audit process, and monitoring of compliance with applicable laws, rules and regulations, including but not limited to registration requirements, compliance requirements, record-keeping requirements, monitoring system controls, procedures for investigating infractions, and sanctions for violations; Provide oversight over management’s activities in managing credit, liquidity, operational, legal and other risks of the NPO, whereby it shall regularly endeavor to receive information on risk exposures and risk management activities; Perform oversight functions over the NPO’s internal auditors and effectively coordinate with its external auditors and ensure that the internal and external auditors act independently from each other, whereby both auditors are given unrestricted access to all records, properties and personnel to enable them to perform their respective audit functions; Review the annual internal audit plan to ensure its conformity with the purpose of the NPO, whereby such plan shall include the budget necessary to implement it; Discuss with the external auditor the nature, scope and expenses of the audit, prior to commencement of the audit; Monitor and evaluate the adequacy and effectiveness of the NPO’s internal control system, including financial reporting control and information technology security;

Review the reports submitted by the internal auditors, including the audited financial statements of the NPO that should have been written and reviewed by an external auditor accredited by the Board of Accountancy;

Review the quarterly, half-year and annual financial statements before their submission to the board of trustees, with particular focus on compliance with accepted accounting

Section 6.1. NPOs at Risk shall be subject to the following requirements: 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6

Existing minimum requirements based on laws, SEC rules and other requirements as may be prescribed by the Commission. Annual Financial Statements audited by an independent Certified Public Accountant accredited by the Board of Accountancy. Conduct of mandatory background checks of the officers and trustees. Mandatory audit by the Commission of the NPO concerned. Establishment of an internal audit system. Attendance in sustained outreach program of the Commission.

Section 6.2. The Commission may require the submission of such other document/s as it may determine, in its discretion, to be necessary to properly identify the composition of the NPO Sector which is subject to its jurisdiction and supervision and to assist the AMLC in the risk assessment process. CHAPTER VII SUSTAINED OUTREACH PROGRAMS AND SEMINARS Section 7.1. Pursuant to its regulatory and supervisory powers, the Commission will conduct, at least once a year, regular sustained outreach/consultation programs, awareness training and workshops on ML and/or TF issues, vulnerabilities, and risks as well as practical and effective mitigation measures. Such programs and seminars will include discussions regarding regulatory compliance, good governance principles, internal control system development, accountability procedures and financial controls, as well as risk management for NPOs. In connection with this, the Commission may undertake to do any or all of the following: a)

b) c)

Coordinate and partner with other networks of Non-Stock Corporations, NPOs or similar umbrella organizations (e.g., Caucus of Development NGO Networks, Philippine Council for NGO Certification, donor organizations, Association of Foundations, League of Corporation Foundations, etc.) and other government agencies (e.g., local government units, Department of Social Welfare and Development, National Bureau of Investigation, Philippine National Police, universities, colleges, etc.) to implement such outreach programs and seminars; Provide, through its website, public access to the materials used in these outreach programs and seminars; and Consider, as part of its awareness program, to regularly upload to its website the latest information on the foregoing subject matters of such outreach programs and seminars, including information campaigns, brochures, manuals, pamphlets, articles and frequently asked questions.

Section 7.2. The trustees, officers, and/or responsible representatives of NPOs at Risk are required to attend such outreach programs and seminars. Proof of attendance therein shall be in the form of a certificate duly issued by the Commission. Such proof of attendance shall be kept by such NPOs at their principal office and must be presented to representatives of the Commission during the course of their audit/inspection. CHAPTER VIII PREVENTIVE MEASURES Section 8.1. NPOs at Risk shall establish and record the true and full identity of their donors/ sources of funds identified as PEPs under Section 1.4.7. In case of domestic PEPs or persons who have been entrusted with a prominent function by an international organization, such NPOs shall: a. Take reasonable measures to determine whether the donor is a PEP; and b. In cases when there is a higher risk relationship, adopt measures (b) to (e) below. In relation to foreign PEPs, such NPOs shall: a. b. c. d. e.

Put in place risk management systems to determine whether the donor is a PEP; Obtain senior management approval before establishing (or continuing, for existing donors) such relationship; Take reasonable measures to establish the source of wealth and the source of funds of donors identified as PEPs; Conduct enhanced ongoing monitoring on that relationship; and Institute reasonable measures to ensure that the NPO’s funds are disbursed to the declared beneficiaries and/or used for the project/s stated in the SS and COEP.

Section 8.2. Donors from a foreign jurisdiction that is recognized as having inadequate internationally accepted Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards, or presents greater risk for ML or TF, shall be subject to enhanced monitoring by the NPOs at Risk. Section 8.3. For the purpose of protecting themselves from ML and TF abuse, all NPOs at Risk shall adopt the following preventive measures: 1. 2. 3. 4.

Maintain information on their activities and those who control or direct their activities; Have controls in place to ensure that funds are fully accounted for and spent in a manner consistent with the NPO’s stated activities; Follow a “know your beneficiaries and associate NPOs” rule; and Report to the Commission any fact within its knowledge that gives rise to a suspicion that such NPO is being exploited for ML and/or TF purposes. CHAPTER IX MANDATORY DISCLOSURES FOR ALL SEC REGISTERED NON-STOCK CORPORATIONS

Section 9.1. For the purpose of establishing a classification system on the nature of activities and purpose of Non-Stock Corporations and to enable the Commission to identify the composition of the NPO Sector subject to its jurisdiction and supervision, the Commission hereby directs all SEC registered Non-Stock Corporations to accomplish the revised Mandatory Disclosure Form (MDF) attached hereto as Annex “A” and submit the same to the Commission through the Anti-Money Laundering Division (AMLD) of the Enforcement and Investor Protection Department (EIPD) or the nearest SEC Extension Office within sixty (60) days from the effective date of this Circular. Section 9.2.Corporations which have already submitted their MDF pursuant to SEC Memorandum Circular No. 15, Series of 2018 on or before 31 July 2019 shall be deemed to have complied with the requirement to submit the MDF as required herein. However, said corporations may be required by the Commission to submit the additional information sought in the revised MDF under these amended guidelines. Section 9.3. All non-stock corporations registered after the effectivity of this Circular shall submit the required information in the MDF, as may be applicable, within six (6) months from date of registration. Section 9.4. For monitoring and updating purposes and in line with the objectives set forth in this Circular, the Commission may, from time to time, as it may deem necessary, require SEC registered Non-Stock Corporations to submit updates on the following, to wit: a) Objectives and purpose of their stated activities; b) Identity of the person(s) who own, control or direct their activities, including senior officers, board members and trustees; c) Nature of operations or projects; d) Actual raising or disbursing of funds for charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of “good works;” e) Amount of donations, contributions and grants received; f) Amount of funds used by the Corporation for its projects and programs; g) Location of operations which shall include the (i) head office or branches, if any, (ii) location of beneficiaries/projects, and (iii) other areas of operation/activity, if any; h) Source of Funds (as to person); i) Source of Funds (as to geography) j) Intended beneficiaries (as to person); k) Intended beneficiaries (as to geography); and l) Existing license/accreditation from another government agency or self-regulating organization. Section 9.5.Failure to comply with the requirements of this Chapter is a cause for revocation of the Certificate of Incorporation of the non-complying Non-Stock Corporation. Section 9.6. Compliance with the requirements under this Chapter may be done through an online facility as may be established for the purpose subject to such rules and regulations as may promulgated by the Commission. Section 9.7. The Information and Communications Technology Department (ICTD) of the Commission shall maintain an updated database of Non-Stock Corporations with the information required to be submitted under these Guidelines. Such database shall be made accessible to the EIPD-AMLD and the respective Operating Departments having supervision over such Non-Stock Corporations. CHAPTER X COORDINATION AND INFORMATION SHARING Section 10.1. Subject to the provisions of the Data Privacy Act, for the purposes enunciated in this Circular, the Commission will pursue and implement a policy of effective cooperation and coordination through, among others, information and resource sharing, with law enforcement agencies and other government agencies, such as the Philippine National Police, National Bureau of Investigation, Department of Social Welfare and Development, AMLC, Insurance Commission, Department of Justice, and Office of the Ombudsman. Section 10.2. The Commission may enter into agreement(s) with NPO self-regulatory organizations and other private organizations for the purpose of cooperation, coordination and information sharing subject to the provisions of existing laws, rules and regulations. Section 10.3. The Commission shall establish an effective capacity to respond to international requests for information about an NPO of concern in accordance with existing laws and the rules and regulations of the Commission and the AMLC. CHAPTER XI INVESTIGATION AND INFORMATION GATHERING Section 11.1.The Commission may, in its discretion, conduct such investigation as it may deem necessary to determine whether any person has violated or is about to violate the mandatory provisions of these Guidelines or any NPO is being abused for money laundering or terrorist financing purposes in violation of its franchise. For the purpose of such investigation, the Commission, through any officer designated by it, may administer oaths and affirmations, subpoena witnesses, compel attendance, take evidence, require the production of any book, paper, correspondence, memorandum, or other record which the Commission deems relevant or material to the inquiry, and to perform such other acts necessary in the conduct of such investigation or proceedings. CHAPTER XII ENHANCED REGISTRATION AND MONITORING SYSTEM Section 12.1The Commission’s registration and monitoring system, as regards Non-Stock Corporations, shall be evaluated, reviewed, modified and updated in accordance with the principles, policies and procedures provided in these Guidelines. CHAPTER XIII PENALTIES Section 13.1. The penalties and sanctions provided for under current laws, SEC M.C. No. 8, series of 2009 entitled Scale of Fines for Non-Compliance with the Financial Reporting Requirements of the Commission, SEC M.C. No. 8, series of 2006 on the Revised Guidelines on Foundations, as amended, and other issuances of the Commission are hereby adopted and incorporated into these Guidelines, insofar as they are applicable. Section 13.2. If, after due notice and hearing, the Commission finds that: a) b)

There is a willful violation of these Guidelines or related orders of the Commission; Any person has, in applications, accounts, records or documents required under these Guidelines to be filed with the Commission, made any untrue statement of a material fact, or omitted to state any material fact required to be stated or necessary to make the statements therein not misleading; or Any person has refused to permit any lawful examinations into its affairs,

the Commission may, in its discretion, and subject to existing laws and regulations, impose any or all of the following sanctions as may be appropriate in light of the facts and circumstances: (i)

Fine of no less than Five Thousand Pesos (PhP5,000.00) nor more than Two Million Pesos (PhP2,000,000.00) plus not more than One Thousand Pesos (PhP1,000.00) for each day of continuing violation but not to exceed Two Million Pesos (PhP2,000,000.00);

(ii) Suspension or Revocation of the Certificate of Incorporation; and (iii) Other penalties within the power of the Commission to impose. In imposing the foregoing penalties, the Commission shall be guided by the principles of effectiveness, dissuasiveness and proportionality. Section 13.3. The inclusion of a Non-Stock Corporation in the UN Sanctions List shall be a ground for revocation of its Certificate of Incorporation. The process of revocation shall be in accordance with the rules of procedure of the Commission. Section 13.4. The NPO’s Certificate of Incorporation shall also be revoked if the trustees and/or officers of said NPO had knowingly allowed it to be used or used the organization for ML or TF purposes. This is without prejudice to the dissolution and forfeiture of assets of the corporation under the conditions in Title XIV of the RCC in relation to Sec. 158 thereof. CHAPTER XIV AMENDMENT/REPEAL

Section 14.1. All rules, regulations, orders, circulars and issuances of the Commission that are inconsistent with this memorandum circular are hereby amended and/or repealed accordingly. CHAPTER XV SEPARABILITY Section 15.1 If any portion or provision of this Circular is declared unconstitutional or invalid, the other portions or provisions hereof, which are not affected thereby shall continue in full force and effect. CHAPTER XVI EFFECTIVITY Section 16.1. This Memorandum Circular shall take effect immediately after its publication in two (2) national newspapers of general circulation and its posting in the Commission’s website. Pasay City, Philippines, 27 December 2019. FOR THE COMMISSION:

EMILIO B. AQUINO Chairperson

CYAN MAGENTA YELLOW BLACK Manila

Standard

Sports

TODAY SATURDAY, DECEMBER 28, 2019 sports_mstandard@yahoo.com

Luka Doncic #77 of the Dallas Mavericks reacts to play against the San Antonio Spurs at the American Airlines Center in Dallas, Texas. AFP

Mavs’ Luka makes winning return; Jazz trounce Blazers

OS ANGELES—Luka Doncic made a winning return from a fourgame injury absence on Thursday, scoring 24 points to lead the Dallas Mavericks to a 102-98 NBA victory over the San Antonio Spurs.

Doncic, whose eight triple-doubles are the most in the NBA this season, added 10 rebounds and eight assists in his ﬁrst game since he sprained his right ankle in a December 14 game against Miami. “Felt good,” a smiling Doncic said, although he added: “It was like I was running a marathon, I was so tired. “When you miss four or ﬁve games, it’s different, but it was great being back and we won,” added Doncic, who played without any minutes restriction. The Mavericks led by 17 points with 4:07 left to play. San Antonio scored the last 13 points of the game but couldn’t completely close the gap. Rudy Gay’s three-pointer with 38.6 seconds left pulled San Antonio within four points. But the Spurs’ Derrick White missed a

three-pointer with 5.8 seconds remaining, and Doncic corralled the rebound to close it out. Tim Hardaway Jr. scored 17 points, and Kristaps Porzingis and Dorian FinneySmith added 13 apiece for the Mavs. Utah’s Donovan Mitchell scored 28 of his 35 points in the second half as the Jazz withstood a furious fourth-quarter surge by Portland in a 121-115 victory over the Trail Blazers. Damian Lillard led the Blazers with 34 points and CJ McCollum added 25. That included 17 in the fourth quarter when Portland, who trailed by 23 late in the third, cut the deﬁcit to 103-102 with less than ﬁve minutes remaining. Utah’s two-time Defensive Player of the Year Rudy Gobert, who scored 16 points and grabbed 15 rebounds, harried Carmelo Anthony into an air ball with 22.4 seconds re-

maining and blocked Lillard’s driving shot with 5.2 seconds to play as the Jazz held on for their fifth win in six games. Aussie guard Joe Ingles scored 26 points for the Jazz and Jordan Clarkson had nine in his first game for Utah since arriving via a trade from Cleveland on Tuesday. The Minnesota Timberwolves ended their 11-game losing streak with 105-104 double-overtime victory over the Sacramento Kings. Andrew Wiggins scored 18 points with 10 rebounds and seven assists for the Timberwolves, who were again without injured Karl-Anthony Towns. Gorgui Dieng scored 21 points with 15 rebounds and Robert Covington scored 19 for the Timberwolves, who opened the second overtime with a 6-0 scoring run. In Detroit, the Pistons snapped a fivegame skid with a 132-102 rout of the Washington Wizards. Detroit matched their season high for points as they turned the tables on a team that has beaten them twice already this season. AFP

Scallywag leads Sydney-Hobart SYDNEY—Hong Kong yacht Scallywag led the pack on day two of the Sydney to Hobart race Friday, but with very little separating the ﬁve leading contenders. SHK Scallywag had to retire from last year’s race with a broken bowsprit, but was just over two nautical miles ahead of Black Jack 22 hours into this year’s race. More than 150 yachts entered the open ocean for the annual, 630 nautical miles (1,170 kilometres) race down Australia’s east coast on Thursday. Race favorite Comanche had snatched the lead after a slow start and the 100-footer was still in contention Friday—albeit well behind its own 2017 race record in less favourable conditions. “Anything could and probably will happen” said race spokesperson Di Pearson, adding that boat speeds varied between 5.5 knots and 10 knots thanks to a weak southerly wind. Australia’s Bureau of Meteorology forecast wind moving into the north-east in the afternoon at 15 to 25 knots, “reaching 30 knots at times”. “Should this prediction eventuate, it will have the effect of letting the super maxis play their escape cards again and give Comanche her head once more,” Pearson said. After weeks shrouded in bushﬁre smoke

Seahawks... From A8

Hong Kong Dovell 100 yacht SHK Scallywag (left) sail out of Sydney harbour at the start of the Sydney to Hobart yacht race. AFP

haze that forced the cancellation of the Big Boat Challenge, an event that foreshadows the Sydney-Hobart, the 75th race began under clear blue summer skies on Thursday. Light bushﬁre smoke is forecast over the ocean in the coming days, but Cruising Yacht Club of Australia Commodore Phil Billingham said the impact was expected to be “minimal” as many of the boats will be up to 40 miles (64 kilometres) offshore. AFP

Garoppolo admitted he was “kind of surprised” by the Seahawks decision to bring in Lynch and Robert Turbin after injuries to C.J. Prosise and Chris Carson. “Guy is a hell of a player,” Garoppolo said. “He was unreal when he was playing. We’ll see what he’s got.” The NFC West is one of two division titles still up for grabs as all 32 teams are in action on Sunday. Five teams are in contention for two remaining playoff berths and six clubs have a shot at three remaining firstround byes. The Green Bay Packers can clinch a first-round bye with a victory over the Detroit Lions—who have lost eight straight. If the Packers win and San Francisco lose, Green Bay can also secure home field advantage. The New Orleans Saints’ post-season schedule could also be affected by the outcome in Seattle. Drew Brees and the Saints can secure home field advantage with a victory at Carolina and defeats or ties by either San Francisco or Green Bay. The Philadelphia Eagles have the upper hand in the battle for the NFC East. They can lock it up with a victory over at the New York Giants. AFP

P3.5M at stake in Chairman’s Cup, Challenge Race

(MS-DEC. 28, 2019)

CYAN MAGENTA YELLOW BLACK

A COMBINED P3.5 million is at stake when the Philippine Racing Commission holds the Philracom Chairman’s Cup and the 3YO Imported/Local Challenge Race Championship on Sunday at the Saddle and Clubs Leisure Park in Naic, Cavite. The Chairman’s Cup has a total purse of P2 million, while the 3YO Imported/ Local Challenge Race Championship offers a total guaranteed pot of P1.5 million, both of which are sponsored by the Philracom. The Chairman’s Cup is held annually to honor past Philracom chiefs. This year, the honoree is the late Makati Mayor Nemesio I. Yabut, who spearheaded the racing body from 1978 to 1986. Owner Melanie Habla has two entries in

the 2,000-meter Chairman’s Cup, namely Shanghai Gray, to be ridden by jockey KB Abobo, and Weather Lang, which will be steered by jockey JL Paano. Out to stop the Habla pair are Jayz (jockey JA Guce, SC Stockfarm), Real Gold (JP A. Guce, C&H Enterprise) and The Accountant (RO Niu Jr., Luis Aguila). The ﬁve-horse cast in the Chairman’s Cup will shoot for the top purse of P1.2 million, with the runner-up taking P450,000. Third and fourth placers get P250,000 and P100,000, respectively, with P70,000 allotted to the breeder of the winning horse. The cast for the Philracom Imported/Local Challenge Race Championship, which will also be run in 2,000 meters, isn’t a pushover either, with Magtotobetsky of multi-titled owner Leonardo Javier Jr. and

jockey AM Villegas leading the charge. Joining the fray in the Challenge Race are Bullish Desire (jockey LA Abrea, owner Jan Anthony Coching), Joyous Solution (JB Guce, Allan Keith Queensboro (RO Niu Jr., Feliciano Tolosa) and Will To Win (MA Alvarez, Wally Manalo). A top purse of P900,000 awaits the champion of the 3YO race, with the runner-up getting P337,500 and the third and fourth placers, pocketing P187,500 and P75,000, respectively. The Philracom rounds out its races for the year on December 31 with the holding of the 2019 Juvenile Championship at the San Lazaro Leisure Park in Carmona, Cavite, featuring the muchawaited showdown between Union Bell and Exponential.

Sports

Riera U. Mallari, Editor; Reuel Vidal, Assistant Editor

sports@manilastandard.net

sports_mstandard@yahoo.com

SATURDAY, DECEMBER 28, 2019

Team PH bags silver in FEI Equestrian Championship PATTAYA—While the 30th Southeast Asian Games were ongoing in Manila, there was another sweet victory for Team Philippines for Equestrian Jumping in Pattaya, Thaland, where the inaugural FEI Equestrian Championships were hosted. The jumping team composed of Olympian Toni Leviste, veteran Philippine team member Joker Arroyo and US based rider Colin Syquia climbed up the medal board to clinch the Team Silver Medal, after coming from fourth position behind Hong Kong, Kuwait and Uzbekistan; the top three teams in the lead after the fi rst team round. The Philippines only had three riders, having no opportunity to discard the lowest score of the group, in what is normally a team of four riders. But the crowd at the prestigious Thai Polo and Equestrian Club and the equestrian enthusiasts watching the live streaming around the world were astonished and awed at the Filipino fighting spirit. Team Philippines was assured of the bronze medal once Leviste, the anchor rider for Team Philippines crossed the finish line with a faultless round on the second day of the team event. The Filipinos eventually clinched the team silver medal, only after the anchor rider from Team Kuwait finished with 10 penalty points. “It was an incredible feeling to have the opportunity to showcase what the Filipino can do, faced with nearly insurmountable circumstances,” said Leviste. “It’s always a proud moment to see our flag flying high on foreign soil, and on the world stage.”

Indonesia taps ex-Korea coach JAKARTA—Former South Korea coach Shin Tae-yong has been tapped to take over Indonesia’s struggling national team, the country’s football association said on Friday. Shin, who led South Korea at last year’s World Cup in Russia— where they famously ousted defending champions Germany—is expected to be formally unveiled on Saturday. “We have invited Shin to finalise the contract. After that he will be introduced later on Saturday,” Mochamad Iriawan, chairman of the Football Association of Indonesia (PSSI), said in a statement Friday. “Hopefully all the process will run well.” The expected appointment of Shin, 50, comes after the PSSI sacked Scotsman Simon McMenemy in November with Indonesia bottom of their 2022 World Cup qualifying group on zero points from five games. Indonesia also floundered in last year’s Southeast Asian championship, the Suzuki Cup, where they fi nished fourth out of five teams in their group. Indonesia have had significant problems off the pitch, with the two former chairmen leaving the PSSI this year amid match-fixing allegations. In October, Indonesia’s football association was slapped with a $45,000 FIFA fi ne over crowd chaos that erupted at a match against Malaysia in Jakarta. Indonesian football and its professional league have been tarnished by a host of problems, including match-fixing scandals and deadly hooliganism. AFP

Toni Leviste riding the 10yo grey mare, Loribri at the Asian Championships in Pattaya, Thailand.

UST extends Ayo pact for 3 years By Peter Atencio

FTER putting the University of Santo Tomas Growling Tigers back in the ﬁnals, coach Aldin Ayo will stay on with the team for another three years.

Ayo’s four-year contract with the Tigers was supposed to end after Season 83 of the University Athletic Association of the Philippines men’s basketball tournament. But UST, believing in the gains made by Ayo is letting him stay on until 2023. UST’s Institute of Physical Education and Athletics head Fr. Jannel Abogado, OP, discussed Ayo’s contract early this

month and before the holiday break. The Growling Tigers are the third squad that Ayo has coached over the last five years. Ayo coached the Letran Knights to a crown in the National Collegiate Athetlic Association back in 2015. He then moved De La Salle and mentored the team to two fi nals appearances, including a championship in his fi rst year with the Tigers in the Univer-

sity Athletic Association of the Philippines back in 2016. Ayo then moved back to UST when La Salle bowed to Ateneo in 2017 in their fight for the crown. Two years later, Ayo led UST to the championship round, where it lost to Ateneo, which became the first UAAP team to win a men’s UAAP crown via 16-0 sweep. The return of an intact, young and promising group of players, led by MVP Soulemane Chabi Yo, Rookie of the Year Mark Nonoy and studs Rhenz Abando, CJ Cansino, and Brent Paraiso is expected to make UST a finals’ contender again in the coming season.

New Clark City gets high marks

Pole vaulter Natalie Uy at the New Clark City Athletics Stadium.

SOUTH East Asian Games pole vault gold medalist Natalie Uy recently described the world-class Athletics Stadium in New Clark City as “absolutely beautiful” and considers going back to train at the new sports complex. “The track was amazing and there are two pits now in the stadium and in the practice track. They’re absolutely beautiful,” Uy said in a television interview. Uy, who trained in the United States, was thankful for the new stadium as she admitted that not having much facility for athletes in pole vaulting and track and field is one factor that’s stopping her to train in the Philippines. “Before the SEA Games, there was not much facility to train at but now with the building of New Clark City and the tracks there and the pit, I would definitely consider coming to train here,” she underscored. Aside from not having quality training facilities, funding is also a challenge for athletes like her. “It’s definitely not easy to support yourself; there’s a lot of expenses like traveling, getting new equipment, getting new clothes, and training areas, and getting coaching. It’s pretty difficult. So definitely always needing more support. That’s for sure,” she said.

Uy was also optimistic that her and EJ Obiena’s success in setting new records in the SEA Games pole vault could have a positive impact in the country’s athletics community. “We all want to grow. We all love athletics,” Uy says mentioning other Filipino athletes like pole vaulters EJ Obiena and Alyana Nicolas, as well as runner Kristina Knott. “We’ve continued to this level for that reason because of our passion. And I hope that we can just continue just setting examples for young kids, and for the athletes here in the Philippines to pursue their passion for track and ﬁeld as well.” “I would love to spread the sport in the Philippines. I would love to be able to teach young girls, and young kids about pole vaulting and about track and ﬁeld. It’s a great way to learn about discipline and leadership and allaround skills for life,” she added. “We are grateful to hear a Filipino champion say good things about New Clark City and consider it as a new training ground in the Philippines. This proves that the future is bright not just for the sports facilities, but for the whole city as the current government envisioned it to be,” says BCDA President and CEO Vince Dizon.

Ramos-Macalaguim sets National Doubles’ pace with 7-under 61 SEA Games veteran Sean Ramos and Gabby Macalaguim used a strong start to wrest control then banked on a stronger finish to stay ahead with a sevenunder 61, one up on Lanz Uy and Ryan Monsalve at the start of the National Doubles Amateur Golf Championship at Camp Aguinaldo Golf Club yesterday. Ramos and Macalaguim dished out top form coming off the holiday break, birdying five of the first 10 holes then recovering from mishaps on Nos. 11 and 13 with birdies in the last four to hold off an equally hot-starting Uy-Monsalve tandem under the four-ball format of the National Golf Association of the Philippines’ closing event for 2019. Uy and Monsalve actually sizzled with five birdies in a solid stint after 12 holes but fumbled with a bogey on the par-3 16th, needing to birdie the last two to shoot a 62 and hound the Ramos-Macalaguim pair heading to today’s second round where play shifts to aggregate format.

Sunday’s fi nal round will be two-ball foursomes (alternate shot). While the other fancied pairs struggled in bestball play, Aries Mata and Lawrence Celestino struck back from a frontside even-par game with five birdies against a bogey at the back of the 36-32 military layout, shooting a 64 for third while reigning Indonesian Amateur Open champion Luis Castro and Andres Lorenzo also rallied with a 29 to stay in the mix with 65. Four other teams also churned out three-under cards, including Santino Diokno-Miguel Roque, Jonar AustriaMarco Olives, Gab Manotoc-Carlo Quimson, and Jed DyMikha Fortuna, ensuring a spirited battle for top honors in the three-day event sponsored by the MVP Sports Foundation and held as part of the PLDT National Amateur Golf Tour and backed by Cignal and Metro Pacific Investments. Young Rianne Malixi, eyeing a fourth championship in the season about to end, and Precious Zaragosa

settled for a 66 while Menard Co and Roy Nodalo shot a 67 for joint 11th with Paolo Barro and Laia Barro and Samantha Martirez and Diana Araneta matched par 68s in a tie with the tandems of Josh Jorge-Santino Laurel, Rald Sarmiento-Masaichi Otake, Luigi Guerrero-Dan Cruz, and Tomita Arejola-Nicole Abelar. Meanwhile, registration for the 2020 National Stroke Play Championship set Jan. 7-10 at Riviera’s Langer course is ongoing. For details, call NGAP at telefax No. (02) 7065926 or at Riviera Golf Club, Inc. at (02) 888-9089 or 0956-8821149 email ngap2009handicap@yahoo.com. Ramos, who with Castro and absentees Aidric Chan and Carl Corpus powered the Philippines to a bronze medal ﬁnish in team competition in the recent SEA Games, complemented well with Macalaguim’s game for that impressive start. But the duo faltered on the par3 11th, which Uy and Monsalve birdied for a two-shot swing that kept the two teams tied at four-under.

Aldin Ayo

Seahawks, 49ers battle for crown LOS ANGELES—”Beast Mode” is back in Seattle as Marshawn Lynch returns Sunday to the Seahawks, who host the San Francisco 49ers in the final game of the NFL regular season with the NFC West division title on the line. The 49ers can clinch home-field advantage throughout the NFC playoffs with a victory over Russell Wilson and the Seahawks. If the 12-3 Niners falter, the Seahawks could gain home field advantage with a win and defeats for both Green Bay and New Orleans. “Can’t wait for it,” 49ers quarterback Jimmy Garoppolo said of the loud, hostile environment of CenturyLink Field. San Francisco arrive as favorites, not least because of the rash of injuries affecting Seattle that prompted the Seahawks to take a chance that 33-year-old running back Lynch can make an immediate impact even though he hasn’t played since midway through last season with Oakland. “Only one person can pull this off and that’s No. 24,” linebacker K.J. Wright said of Lynch, who played for the Seahawks from 2010-15. “Back in the building, it feels good. When I heard the news I was like, ‘Perfect.’” Seahawks quarterback Wilson said he was “super-excited” to welcome back Lynch, and added that to his eye “Beast Mode” hasn’t lost a step. “He’s been working,” Wilson said. “He looks great, looks explosive, looks fast, looks strong as ever. He’s got some special things he can do.” While the loser of the game will still make the playoffs as a wild card, Seattle coach Pete Carroll said the Seahawks were “thrilled” to fi nd themselves playing for the division and a possible fi rst-round bye. “It’s the last week of the season, playing for everything, for a division and all that,” Carroll said. “It is what we aim for.” Turn to A7

IN BRIEF BSP extends deadline on payments systems THE Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, extended the registration deadline for operators of payment systems until April 1, 2020 to give them more time to address several concerns. Under BSP Circular No. 1049, operators of payment systems that are conducting their business at the time of the effectivity of R.A. No. 11127 are required to register with the Bangko Sentral not later than three months from the effectivity of the directive on or before Jan. 1, 2020. R.A. No. 11127 or the National Payment Systems Act gives the Bangko Sentral with the power to oversee the payment systems in the Philippines and exercise supervisory and regulatory powers over them to ensure the stability and effectiveness of the monetary and financial system. The Philippines remains one of the top countries promoting financial inclusion, ranking fifth worldwide and first in Asia along with India, based on results of the Global Microscope 2019 published by the Economist Intelligence Unit, the research arm of The Economist Group. Julito G. Rada

Business

Govt debt slightly up at P6.8t in 2nd quarter THE government’s consolidated debt stood at P6.8 trillion in the second quarter of 2019, an increase of 0.7 percent from the first quarter level of P6.7 trillion and 13.4 percent higher from the same period last year, the Department of Finance said Friday. The DoF said in a statement Friday 62.9 percent or P4.3 trillion of the total were domestic borrowings and 37.1 percent or P2.5 trillion were external. As a percentage of gross domestic product, government debt registered at 37.6 percent, down 0.4 percentage points from 38.0 percent in the first quarter of 2019 and 1.5 percentage points higher than last year’s 36.1 percent. The national government debt net of the Bond Sinking Fund posted at P7.3 trillion, a slight increase of 0.8 percent from the first quarter level of P7.2 trillion and higher by 12.7 percent from the same quarter level last year. “Domestic debt grew by 1.9 percent while external debt decreased by 1.2 percent compared with the first quarter of 2019,” the DoF said. Julito G. Rada

Agrinurture plans corn plantation in Palawan province By Jenniffer B. Austria AGRINURTURE Inc. is in talks with the Department of Justice through the Bureau of Corrections over the development of about 2,000 hectares of property into an integrated agri-tourism corn plantation in Palawan. ANI said in a disclosure to the stock exchange both parties would conduct their respective due diligence before arriving at a definitive agreement to finalize the transaction. The due diligence is set to be completed by the first quarter of 2020. ANI plans to fund the project development while the Bureau of Corrections will provide the land. “The proposed joint venture is intended to expand the company’s business through corn production and agritourism,” ANI said. ANI said its board of directors approved the acquisition of Nutriceutical Food Corp. in a bid to boost its market for organic coconut products in China. Nutriceutical is mainly engaged in the manufacturing, marketing, distribution, import and export of organic foods, drinks and other natural commodities, and has a wide market in China. “The intended acquisition will help boost the corporation’s market for organic coconut products in China,” ANI said. ANI is also divesting its stake in two wholly-owned subsidiaries, namely Lucky Fruit and Vegetable Products Inc., and First Class Agriculture Corp. Lucky Fruit is mainly engaged in trading while First Class that is in the business of trading goods, import and export.

SATURDAY, DECEMBER 28, 2019

Peso closes stronger, gains 3.7% versus US dollar in 2019 By Julito G. Rada

Banks’ FCDU loans climb 1.9% to $17.8b OUTSTANDING loans granted by foreign currency deposit units of banks stood at $17.8 billion as of end-September 2019, higher by $338 million (or by 1.9 percent) from the end-June 2019 level of $17.5 billion as disbursements exceeded principal repayments, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in a statement Friday. He said FCDU loans increased $1.7 billion (or by 10.8 percent) from the endSeptember 2018 level of $16.1 billion. “The growth in loans may be attributed to borrowing firms’ higher working capital requirements,” Diokno said. As of end-September 2019, the maturity profile of the FCDU loan portfolio remained predominantly medium- to longterm debt [or those payable over a term of more than one year], which represented 77.5 percent of total, higher than the 76.7 percent level as of end-September 2018. Julito G. Rada

Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com

GLOBE PARTNER. Globe at Home cements a milestone partnership with Victor Consunji Development Corp., one of the fastest growing development companies in the country. M Residences in Taguig is set to become the first development of its kind that comes with built-in high-speed home internet connection. Signing the agreement are (seated, from left) Albert de Larrazabal, chief commercial officer of Globe; Ernest Cu, president and chief executive officer of Globe; Victor Consunji, CEO at VCDC; and Bernie Mendoza, vice president for construction of VCDC.

DOE lifts suspension order on Semirara coal quarrying By Alena Mae S. Flores

HE Department of Energy lifted the suspension order on all mining activities covered by coal operating contract No. 5 of Semirara Mining and Power Corp. after the company successfully complied with safety requirements. “We wish to inform the Exchange that today the company received official notice from the DOE lifting the suspension order and approving the resumption of mining operations except in the area adjacent of the former Casay Lake until such time that all liquefiable materials in the area have been removed,” Semirara said in a disclosure Friday. Semirara stopped coal mining opera-

tions last month after receiving a suspension order from the DOE following an investigation on the mudflow incident in Semirara Island, Antique province last month. “In said correspondence, the DOE stated that the company substantially complied with all the conditions of its directive as specified in the DOE’s order dated November 14, 2019,” Semirara said. The DOE earlier said the suspension would remain in effect until the company complied with several conditions, such as addressing the apparent risk in the Casay Lake area near and adjacent to the operations of the Molave Pit. “We inspected... We validated all our recommendations. First and foremost is the safety aspect so we recommended to reorg the safety department to have a consultant also for safety,” Energy Undersecretary Donato Marcos said last week. The DOE directive was issued in relation to a mudflow incident in Semirara Island, Antique province on October

2, 2019. An employee of Semirara, the operator of PS27 machinery, was found dead after a three-day search and rescue operation. A mudslide occurred in Southwest Tungao, Semirara Island at 1:05 a.m. on Oct. 2 when the equipment operator was swept by the mudslide. “We asked them to identify the risk areas and then we established mining methodology for that. Of course always in consideration and prioritizing safety of the people working there. We asked them to address the risk areas,” Marcos said. He said Semirara complied with the DOE order. “I asked all the technical and legal and significantly (if) they are able to address the concerns so we are thinking of lifting,” Marcos said. The DOE asked Semirara to implement an approved geo-hazard assessment of the Casay Lake area and in all current and proposed mining areas in order to identify and determine the risks and appropriate mitigating measures to the risks.

STADA ACQUISITION.

Stada, a leading manufacturer of highquality pharmaceutical products, announces its acquisition of GlaxoSmithKline’s skincare brand— Oilatum. Oilatum is one of the key players in skin-care brands in the Philippines, which is designed to provide a daily treatment regimen to reduce the occurrence of dry skin and eczema by soothing, softening and hydrating the skin in children. Shown welcoming the acquisition are (from left) Lea Hembrador, business development manager; Sharmaine Abarientos, general manager; and Genielyn Lorenzo, business unit manager for consumer health.

Dar sees agriculture growing 2.5% in the last quarter of the year By Othel V. Campos AGRICULTURE output likely rose 2.5 percent in the last quarter of 2019 despite natural and man-made challenges. Agriculture Secretary William Dar said Friday the country’s agri-fishery sector was expected to grow modestly to 2.5 percent to 3 percent in the fourth quarter of 2019, significantly up from the 1.8-percent expansion year-on-year. “We are hopeful that favorable conditions were sustained in the fourth quarter, allowing us to attain a full-year growth target of at least 2 percent,” Dar said. The farm sector just grew 0.64 percent in the first three months of 2019 and contracted to -1.23 percent in the second quarter, mainly due to the ad-

verse effects of El Niño on the crops sub-sector. Agriculture recovered in the third quarter when it registered a faster-thanexpected expansion of 2.87 percent. “Our prompt implementation of decisive measures to arrest falling prices of palay, as well as imposition of strict biosecurity and quarantine measures to manage, control and contain ASF were the key factors in upturning the crops and hog subsectors, respectively,” said Dar. Early warning announcements have also helped minimize losses from typhoons. Dar cited the agriculture sector was able to save P12 billion worth of crops in Luzon and the Visayas due to early preparations made by the Department and local government units prior

to Typhoon Tisoy’s landfall. These included P11.6 billion worth of palay harvested from 157,000 hectares and P109 million worth of corn crops planted in 2,000 hectares. “The Department of Agriculture was able to meet head on and temper the effects of both man-made and natural calamities through the strong cooperation with LGUs, agri-fishery industry leaders, the academe, farmers’ and fishers’ groups,” Dar said. “We remained firm and focused on our vision of a food-secure Philippines with prosperous farmers and fishers, advocating our battlecry ‘Masaganang ani at mataas na kita’,” he added. The department proposed a P71.8-billion budget in 2020, 12 percent higher than P64 billion in 2019.

THE peso ended the year stronger against the US dollar on Friday, gaining P0.18 to close at 50.635 from 50.821 a day ago. The peso’s close at the last trading day of 2019 was also P1.945 or 3.7 percent stronger than 52.58 a year ago. Total volume traded stood at $1.33 billion, up significantly from the $1.1 billion a day ago. East West Banking Corp. president and chief executive Antonio Moncupa said the strong momentum of the peso in 2019 would likely be carried over to 2020. “The dollar may not be too strong in 2020. I think the dollar will likely hover near the P51 than P52... ,” Moncupa said. A report by ING Bank Manila earlier said with the US-China trade war threatening, the Fed opted to slash policy rates three times in 2019, affording global central banks a chance to ease themselves and setting off a wave of investors back to higher yielding assets in the emerging market space. “The stark reversal in fortunes has helped bolster emerging market FX and equity markets with foreign investors returning, with the PHL also benefiting from the shift of tides with interest rate differential widening,” ING said. The interagency Development Budget Coordinating Committee this month revised downward the pesodollar exchange rate assumption to the range of 51 to 52 against the greenback in 2019 and 51 to P54 against the dollar from 2020 to 2022. The peso reached its weakest level against the greenback in 2018 at 54.325 on Sept. 26 on the back of the lingering trade tensions between the world’s leading economic powerhouses the United States and China. The peso closed 2018 at 52.58 and opened 2019 at 52.515 on Jan. 2.

BSP expects higher inflation in December BANGKO Sentral ng Pilipinas on Friday said inflation in December likely rose to within the 1.8-percentto-2.6-percent range from 1.3 percent in November, driven mainly by higher power rates and oil prices. The BSP’s Department of Economic Research said in a statement Friday higher electricity rates and oil prices along with the impact of weatherrelated disturbances on selected food items were the primary sources of upward price pressures for the month. “Meanwhile, inflation could be tempered by the continued easing of domestic rice prices,” it said. “Looking ahead, the BSP will remain watchful of evolving price trends and ensure that the monetary policy stance remains appropriate to maintain price stability that is conducive to a balanced and sustainable economic growth,” it said. Inflation in November rose to 1.3 percent from 0.8 percent a month ago. The figure was still significantly slower compared with 6 percent a year ago, bringing the average in the first 11 months to 2.5 percent, well below the midpoint of the target range of 2 to 4 percent. On Dec. 12, the Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, kept the benchmark interest rate at 4 percent, taking into account the continuing benign inflation environment. The interest rates on the overnight deposit and lending facilities were also kept unchanged at 3.5 percent and 4.5 percent, respectively. Earlier, ING Bank Manila said inflation in 2020 would continue to remain benign as the Rice Tariffication Law became instrumental in tempering the price of the staple in 2019. Julito G. Rada

Business

SATURDAY, DECEMBER 28, 2019 extrastory2000@gmail.com

Market slips; Manila Water advances

HE stock market declined on the last trading day of the year, ignoring the gains in Wall Street overnight. The Philippine Stock Exchange Index shed 27.02 points Friday, or 0.4 percent, to 7,815.26 on a value turnover of P6.6 billion. Gainers, however, beat losers, 104 to 86, with 43 issues unchanged. The benchmark index is up 4.7 percent in 2019. GT Capital Holdings Inc. of the Ty Group fell 3.6 percent to P847, while Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, dropped 2.8 percent to P3.48. Major property developer Ayala Land Inc. shed 1.9 percent to P45.50, but Manila Water Co. Inc. rose 2.6 percent to

P10.36. The rest of Asian markets mostly rose on Friday following another strong lead from Wall Street where tech stocks won big with strong Christmas results. The tech-heavy Nasdaq finished above 9,000 for the first time on Thursday, hitting its 10th straight record fueled by gains by e-commerce behemoth Amazon and other tech giants. The Dow and the S&P 500 also closed higher. Hong Kong put on 1.1 percent and Shanghai gained 0.2 percent, while Sydney and Seoul were also higher. But Tokyo’s benchmark Nikkei 225 index closed down 0.4 percent with low investor participation ahead of the yearend holidays. A report by Mastercard Spending Plus estimated that holiday shopping sales rose by a better-than-expected 3.4 percent this year, with e-commerce taking a bigger bite of overall sales.

US consumers’ “willingness to open the purse strings has offset declining business investment in the face of the trade war and economic uncertainty,” Stephen Innes, chief Asia market strategist at AxiTrader, said in a note. Amazon jumped 4.5 percent after boasting of another “record” performance this season. Other tech giants including Apple, Google parent Alphabet and Facebook all gained at least one percent. “Santa Claus appears to have returned to Wall Street overnight... dropping off another round of goodies for investors,” Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA, said in a note. “Wall Street’s ‘buy everything and win’ afterglow will inevitably spill over to Asia today with most of the region back at work.” The holiday spending results have

added to the positive sentiment across trading floors following the US-China trade thaw, and the expectation that the “phase one” deal between Washington and Beijing will be finalized next month. Markets have been spooked since US President Donald Trump launched his trade war against China, and analysts have voiced fears about the impact of the bruising spat on global economic growth. Both main oil contracts remained steady, driven by US-China trade hopes and sustained demand, analysts said. Brent Crude was flat, and West Texas Intermediate was 0.2 percent higher. “Optimism about trade helped the outlook for global growth and with it the demand for oil while the US consumer is showing few signs of tightening their purse strings, which is positive for oil also,” wrote AxiTrader’s Innes. With AFP

Manila Standard BuSineSS daily StockS review Friday, deceMBer 27, 2019

VALUE

NET FOREIGN BUYING/(SELLING),

FINANCIALS 87.9 2,222,540 1.87 176,000 158 2,245,820 1.11 4,000 25.05 366,300 8.49 4,300 18.42 111,400 12.06 64,000 3.83 235,000 0.72 500,000 1.16 9,000 0.375 80,000 66.3 1,972,480 0.83 74,000 34.5 235,900 175 1,170 130 1,250 57.5 470 195 186,470 1,825 60 57.7 3,280

195,154,222 330,160 354,223,145 4,440 9,175,310 33,547 2,005,578 766,302 899,670 336,630 10,500 30,000 130,811,156 59,850 8,201,970 204,630 159,350 27,025 36,417,772 109,500 190,029

55,023,362 16,160 -103,363,751 1,033,200 63,268 -6,200 -55,845,414 -4,663,920 -10,958,980 -54,750 -109,137

33.55 2.23 13 0.49 1.21 2.61 0.23 2.01 15.08 161.8 4 27 64.45 71.9 2.14 4.85 9.43 14.3 9.46 7.2 23.3 68.2 1.2 37 1.8 13.5 7.6 1.26 214.6 4.6 5.9 9.48 11.7 16.32 304 4.54 1.92 4.1 3.84 10 11.4 32.6 5.06 5.25 2.15 1.8 0.85 9.9 84.9 8 0.115 0.99 145 2.6 1.14 15.12 0.85

INDUSTRIAL 34.2 798,800 2.23 3,099,000 13.5 423,000 0.51 219,000 1.21 71,000 2.61 4,775,000 0.245 5,100,000 2.01 1,949,000 15.18 308,400 170 230 4.07 2,856,000 30 54,800 65 2,220 71.9 2,390 2.15 435,000 4.85 6,000 9.5 1,887,000 14.86 19,200 9.8 334,900 7.21 488,600 24.15 3,151,100 68.95 40,920 1.21 18,722,000 38 149,000 1.87 9,898,000 13.6 1,281,500 7.89 66,700 1.3 77,000 216 302,990 4.86 11,000 6.19 68,700 10.36 79,907,100 12.4 182,800 16.38 2,842,500 317 190,120 5.43 10,200 1.92 12,747,000 4.1 1,000 3.86 1,481,000 10.06 3,004,300 11.94 330,500 32.8 1,043,400 5.06 1,000 5.3 10,900 2.17 1,273,000 1.8 5,000 0.85 28,000 9.9 1,790,000 85 239,460 8.19 113,000 0.117 220,000 1.02 89,000 145 631,700 2.6 1,000 1.2 8,016,000 15.12 3,000 0.86 1,352,000

27,261,925 6,962,930 5,660,486 110,190 86,190 12,660,970 1,232,980 3,984,150 4,681,796 38,854 12,395,740 1,522,830 144,370 171,848.50 941,150 29,500 17,892,788 279,946 3,278,663 3,521,861 75,567,255 2,804,704 22,856,990 5,615,820 18,124,090 17,422,828 516,122 99,300 65,345,474 50,860 413,176 831,706,562 2,228,768 46,598,230 59,419,560 46,442 24,481,550 4,100 5,744,380 30,083,148 3,897,144 34,250,320 5,060 57,577 2,744,190 9,000 23,900 17,744,749 20,356,623.50 922,447 25,500 89,490 93,104,458 2,600 9,511,550 45,360 1,165,030

6,830,330 -2,988,386 21,310 -1,707,370.00 2,231,708 199,610 -5,400 4,903,047 -87,882 -1,123,673 -621,953 -26,239,490 -1,497,943.50 -138,010 1,441,000 10,874,880 -16,846,038 134,341 -64,200 -28,251,350 24,800 -48,073,396 -1,202,052 -35,479,036 29,707,428 -2,544,190 -1,966,200 -30,050,000 -37,014 -16,584,265 -39,202 -4,541,195 8,825,461.50 -46,045,675 135,930 -22,680 81,950

0.88 52.5 11.76 0.69 6.42 10.48 0.93 0.96 808 3.02 6.9 6.93 13.4 4.2 881 5.25 81 6.65 5.86 0.5 3.73 12 3.59 4.78 1.2 2.95 165 1,080 0.79 1.22 214 214 0.22 0.202

0.85 51.5 11.54 0.66 6.42 10.2 0.9 0.96 785.5 2.99 6.67 6.61 13 3.78 845 5.2 79.2 5.89 5.79 0.485 3.71 11.68 3.46 4.6 1.13 2.9 157.5 1,039 0.74 1.22 190 206 0.202 0.19

HOLDING FIRMS 0.86 15,101,000 1,103,790 51.5 11.66 17,493,800 0.69 69,000 6.42 6,200 10.46 11,200 0.93 692,000 0.96 203,000 785.5 448,810 2.99 1,783,000 6.84 272,700 6.61 19,598,000 13 222,000 3.99 12,000 847 197,790 5.2 62,100 80.8 1,719,870 6.65 382,000 5.79 200,200 0.5 2,000 3.71 163,000 11.98 1,645,800 3.48 60,319,000 4.75 14,000 1.2 61,000 2.95 255,000 164 101,610 1,043 428,450 0.79 39,000 1.22 135,000 195 1,130 214 165,480 0.202 1,180,000 0.2 6,830,000

13,098,160 57,127,455 204,259,208 45,930 39,804 114,442 635,670 194,880 356,100,685 5,343,320 1,855,111 132,357,921 2,898,420 48,710 170,793,930 325,055 138,894,595 2,428,676 1,173,165 985 605,060 19,700,732 212,074,230 66,230 69,910 752,000 16,629,465 449,582,840 29,220 164,700 216,310 35,377,140 258,610 1,365,850

524,000 -7,484,613 -1,406,634 7,704 -57,401,710 -733,100 222,403 -24,445,337 -66,366,620 -210,000 7,331,079.50 377,557 1,172,586 -3,730 -8,811,258 -127,525,430 -4,839,307 -120,820,290 12,200 -2,380 -220,000 -

14.78 0.72 1.47 0.81 46.55 2 4.83 6.95 0.55 0.85 0.189 0.38 9.98 19.4 0.43 1.52 1.2 4.18 0.194

14.72 0.7 1.47 0.78 45.5 1.98 4.67 6.5 0.53 0.85 0.18 0.38 9.65 18.88 0.415 1.5 1.15 4.01 0.189

PROPERTY 14.74 359,000 0.71 142,000 1.47 6,000 0.81 630,000 45.5 10,432,800 1.99 119,000 4.83 1,478,000 6.8 6,000 0.55 13,021,000 0.85 6,000 0.188 1,110,000 0.38 10,000 9.9 97,200 18.9 1,052,900 0.43 150,000 1.5 2,737,000 1.2 356,000 4.01 27,824,000 0.191 10,230,000

5,296,126 99,960 8,820 499,830 479,698,750 236,880 7,105,280 41,165 7,014,670 5,100 203,630 3,800 960,630 20,003,218 62,800 4,129,670 410,720 114,129,640 1,947,040

-229,970 -214,708,815 -11,910 -502,320 -221,900 -668,305 -3,172,578 322,890 8,003,770.00 57,060

NAME

OPEN

HIGH

LOW

BANK PH ISLANDS BDO LEASING BDO UNIBANK BRIGHT KINDLE CHINABANK CITYSTATE BANK COL FINANCIAL EAST WEST BANK FERRONOUX HLDG FIRST ABACUS IREMIT MEDCO HLDG METROBANK NTL REINSURANCE PHIL NATL BANK PHIL STOCK EXCH PHILTRUST PSBANK SECURITY BANK SUN LIFE UNION BANK

88 2.02 157.4 1.11 25.05 8.49 18 12 3.9 0.6 1.16 0.375 67 0.79 34.5 173 118.5 57.5 192 1,825 58.2

88 2.02 158 1.11 25.15 8.49 18.42 12.18 3.95 0.72 1.22 0.375 67 0.83 35.8 175 130 57.5 197 1,825 58.25

86.7 1.84 155.3 1.11 24.9 6.23 18 11.9 3.81 0.6 1.16 0.375 66.2 0.78 34.45 173 118.5 57.5 190 1,825 57.7

ABOITIZ POWER AC ENERGY AGRINURTURE ALLIANCE SELECT ALSONS CONS AXELUM BASIC ENERGY CEMEX HLDG CENTURY FOOD CHEMPHIL CIRTEK HLDG CONCEPCION CONCRETE A CONCRETE B CROWN ASIA DEL MONTE DNL INDUS EAGLE CEMENT EEI CORP EMPERADOR FIRST GEN FIRST PHIL HLDG FRUITAS HLDG GINEBRA GREENERGY HOLCIM INTEGRATED MICR IONICS JOLLIBEE LMG CHEMICALS MACAY HLDG MANILA WATER MAXS GROUP MEGAWIDE MERALCO PANASONIC PEPSI COLA PETROENERGY PETRON PHINMA PHX PETROLEUM PILIPINAS SHELL PRYCE CORP RFM CORP ROXAS AND CO ROXAS HLDG SFA SEMICON SHAKEYS PIZZA SMC FOODANDBEV SPC POWER SWIFT FOODS TKC METALS UNIV ROBINA VICTORIAS VITARICH VIVANT VULCAN INDL

33.85 2.28 13.38 0.5 1.23 2.76 0.239 2.08 15.12 170 4 27 64.45 71.95 2.16 5.05 9.44 14.5 9.78 7.22 23.85 68.2 1.25 38.25 1.87 13.7 7.91 1.26 216.2 4.6 6.2 10.04 11.94 16.38 305 4.54 1.92 4.1 3.89 10 11.5 32.9 5.06 5.3 2.19 1.8 0.87 9.9 85 8.48 0.115 1.02 147.8 2.6 1.17 15.12 0.87

34.8 2.28 13.5 0.52 1.23 2.78 0.245 2.08 15.28 170 4.78 30 67 71.95 2.17 5.05 9.5 14.9 9.8 7.22 24.6 70 1.26 39 1.89 13.7 7.91 1.3 217 4.86 6.2 11.38 12.4 16.44 317 5.43 1.93 4.1 3.92 10.08 11.94 33.4 5.06 5.3 2.2 1.8 0.87 10.08 85.3 8.48 0.117 1.02 149.9 2.6 1.2 15.12 0.87

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 FJ PRINCE A GT CAPITAL HOUSE OF INV JG SUMMIT JOLLIVILLE HLDG KEPPEL HLDG B LODESTAR LOPEZ HLDG LT GROUP METRO PAC INV PACIFICA HLDG PRIME MEDIA REPUBLIC GLASS SAN MIGUEL CORP SM INVESTMENTS SOC RESOURCES SOLID GROUP SYNERGY GRID TOP FRONTIER WELLEX INDUS ZEUS HLDG

0.87 52 11.54 0.67 6.42 10.24 0.91 0.96 800 3.02 6.67 6.87 13.38 4.2 845 5.25 79.2 5.89 5.86 0.485 3.72 11.9 3.58 4.6 1.2 2.9 161 1,068 0.77 1.22 214 206 0.218 0.19

8990 HLDG A BROWN ARANETA PROP 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 MEGAWORLD MRC ALLIED

14.76 0.71 1.47 0.8 46.3 2 4.76 6.9 0.54 0.85 0.18 0.38 9.98 18.9 0.415 1.52 1.16 4.14 0.192

VOLUME

NAME

OPEN

HIGH

LOW

VOLUME

VALUE

NET FOREIGN BUYING/(SELLING),

PHIL INFRADEV PHIL REALTY PRIMEX CORP PTFC REDEV CORP ROBINSONS LAND ROCKWELL SHANG PROP SM PRIME HLDG STA LUCIA LAND SUNTRUST HOME VISTA LAND VISTAMALLS

1.25 0.31 2.1 49.95 27.2 2.11 3.2 41.5 2.36 1.18 7.38 5.55

1.27 0.31 2.1 49.95 28.15 2.12 3.21 42.1 2.48 1.24 7.73 5.66

1.22 0.3 2.03 49.95 27.2 2.03 3.1 41.4 2.36 1.18 7.32 5.46

1.25 0.3 2.09 49.95 27.55 2.04 3.2 42.1 2.48 1.23 7.73 5.66

1,267,000 510,000 1,900,000 100 2,038,200 63,000 24,000 14,600,500 500,000 8,235,000 8,337,900 1,832,600

1,570,560 153,550 3,901,790 4,995 56,837,455 130,490 76,430 613,844,805 1,206,980 10,066,700 63,078,293 10,045,330

-240.0001 2,270,850 228,459,150 -37,595,813 -

2GO GROUP ABS CBN ACESITE HOTEL ALLHOME APC GROUP APOLLO GLOBAL ASIAN TERMINALS BERJAYA BLOOMBERRY CEBU AIR CHELSEA DFNN INC EASYCALL GLOBE TELECOM GMA NETWORK GOLDEN BRIA HARBOR STAR INTL CONTAINER IPM HLDG ISLAND INFO ISM COMM JACKSTONES LEISURE AND RES LORENZO SHIPPNG MACROASIA MANILA BULLETIN MANILA JOCKEY METRO RETAIL NOW CORP PACIFIC ONLINE PAL HLDG PH RESORTS GRP PHIL RACING PHIL SEVEN CORP PHILWEB PLDT PREMIUM LEISURE PRMIERE HORIZON PUREGOLD ROBINSONS RTL SBS PHIL CORP SSI GROUP STI HLDG TRANSPACIFIC BR WATERFRONT WILCON DEPOT

9.89 15.8 1.42 11.56 0.38 0.042 18 4.95 11 89.85 5.4 4.88 7.79 1,998 5.31 425 1.08 129 6.5 0.1 3.4 1.9 2.39 0.85 17 0.385 3.35 2.12 2.43 2.57 7.85 5 8.88 136.2 2.56 999.5 0.57 0.34 40.3 77.95 8.69 2.77 0.61 0.27 0.57 17.8

10.5 15.82 1.42 11.64 0.39 0.043 18.5 5.2 11.34 89.85 5.5 4.9 7.79 2,030 5.37 436.4 1.09 131.3 7 0.104 3.46 2.19 2.4 0.85 17 0.385 3.35 2.12 2.6 2.57 7.85 5.2 8.88 142 2.61 1,003 0.59 0.35 40.3 80 9.26 2.78 0.62 0.28 0.61 18

9.51 15.3 1.4 11.52 0.37 0.042 18 4.76 11 89.45 5.3 4.51 7.76 1,998 5.31 425 1.05 127.1 6.45 0.1 3.31 1.9 2.38 0.85 16.5 0.385 3.35 2.09 2.4 2.45 7.1 5 8.85 136.2 2.54 988 0.56 0.32 39.75 76 8.64 2.71 0.6 0.27 0.57 17.78

SERVICES 10.5 15.8 1.4 11.64 0.39 0.043 18.5 5.2 11.3 89.5 5.5 4.88 7.79 2,020 5.33 436 1.07 128.6 7 0.104 3.44 2 2.4 0.85 16.5 0.385 3.35 2.11 2.49 2.5 7.85 5.2 8.85 142 2.61 988 0.57 0.34 39.75 80 9.26 2.78 0.6 0.27 0.6 18

128,300 60,600 88,000 2,868,200 1,480,000 1,700,000 250,700 4,445,000 1,918,200 141,270 1,053,100 866,000 169,700 35,090 545,500 310 700,000 1,669,580 68,900 130,000 10,071,000 34,000 832,000 75,000 331,600 20,000 5,000 433,000 3,058,000 26,000 4,800 50,000 200 1,530 2,093,000 124,630 14,396,000 28,370,000 1,336,600 839,780 236,000 2,051,000 4,238,000 1,130,000 121,000 182,900

1,295,194 953,926 123,660 33,309,926 562,050 72,500 4,520,100 22,583,050 21,661,494 12,648,324 5,716,814 4,222,840 1,321,701 70,702,720 2,907,261 134,068 747,590 215,210,196 455,900 13,040 34,466,430 68,210 1,988,040 63,750 5,493,932 7,700 16,750 911,040 7,594,830 64,820 34,505 253,706 1,773 216,004 5,400,730 124,310,925 8,095,570 9,628,700 53,323,565 65,672,083 2,121,789 5,655,760 2,546,310 310,300 72,600 3,279,610

-4,254,076 4,242,600 -238,200 -3,377,236 -8,162,953 40,565 20,243,890 107,670 -62,802,719 130,580 -201,440 -2,430,544.00 -172,200 -560,580 -54,750 71,364 -28,150 -37,777,760 -613,570.00 -8,250 568,135.00 -15,872,737 -869,480 -2,151,600 428,332

ABRA MINING ACE ENEXOR APEX MINING ATLAS MINING ATOK BENGUET A CENTURY PEAK DIZON MINES FERRONICKEL GEOGRACE LEPANTO A MARCVENTURES NICKEL ASIA NIHAO OMICO CORP ORNTL PENINSULA ORNTL PETROL B PHILODRILL PX MINING PXP ENERGY SEMIRARA MINING

0.0015 7.46 0.96 2.49 10.96 1.13 2.81 7.3 1.79 0.203 0.092 0.89 3.38 1.01 0.47 0.75 0.011 0.011 2.76 8.62 22

0.0015 7.56 1 2.5 10.96 1.13 2.89 7.3 1.81 0.203 0.097 0.98 3.39 1.02 0.47 0.75 0.011 0.011 2.83 8.64 22.6

0.0015 7.3 0.96 2.49 10.5 1.13 2.81 6.93 1.76 0.197 0.091 0.89 3.24 1.01 0.47 0.74 0.011 0.011 2.76 8.52 21.6

MINING & OIL 0.0015 3,000,000 7.32 447,300 0.99 4,248,000 2.5 55,000 10.96 500 1.13 1,000 2.88 2,314,000 6.93 600 1.79 1,225,000 0.202 80,000 0.091 680,000 0.98 485,000 3.39 7,033,000 1.02 2,000 0.47 30,000 0.75 264,000 0.011 8,500,000 0.011 15,000,000 2.83 370,000 8.64 549,900 22 2,253,400

4,500 3,308,503 4,203,230 137,460 5,388 1,130 6,598,990 4,195 2,184,450 15,940 62,070 465,020 23,532,070 2,030 14,100 197,850 93,500 165,000 1,041,790 4,735,194 49,725,465

53,465 111,000 257,060 -3,809,430 -18,000 1,100 68,301.00 -3,360,585

GMA HLDG PDR ABS HLDG PDR SMC PREF 2D SMC PREF 2F SMC PREF 2I SMC PREF 2C MWIDE PREF DD PREF ALCO PREF B FGEN PREF G AC PREF B1 GLO PREF P AC PREF B2R SMC FB PREF 2 PNX PREF 4 PCOR PREF 3A PCOR PREF 3B

5.3 15.4 75 75.75 76.95 77.5 100.5 100.6 101.3 111.9 499 500 505 998.5 1,031 1,031 1,051

5.3 15.4 75 76 76.95 77.7 100.5 100.6 101.3 111.9 499 500 505 998.5 1,035 1,031 1,055

5.3 15.02 75 75.75 75.2 77.5 100.3 100.5 98.25 111.9 499 500 505 997 1,022 1,031 1,050

PREFERRED 5.3 28,200 15.4 21,100 75 13,400 75.8 1,513,530 75.2 9,440 77.5 10,840 100.3 4,770 100.5 5,240 101.3 510 111.9 10 499 50 500 200 505 3,000 997 80 1,022 4,290 1,031 3,000 1,055 800

149,460 324,812 1,005,000 114,724,905 710,105.50 842,208 478,447 526,784 51,632.50 1,119 24,950 100,000 1,515,000 79,775 4,419,400 3,093,000 843,025

306,498 -50,650 -

LR WARRANT

1.3

1.2

WARRANTS 1.29 38,000

46,720

ITALPINAS KEPWEALTH XURPAS

4 10.08 0.76

4.01 10.08 0.78

3.64 9.51 0.76

3.79 9.7 0.77

2,625,440 3,346,331 1,241,220

1,953,730 28,344 -

FIRST METRO ETF

117.3

117.9

116.5

5,314,164

-318,951

USD DMPL A1

10.1

33,550

MS Trading Summary FINANCIAL

SHARES 8,495,292

INDUSTRIAL

172,141,989

HOLDING FIRMS

132,544,380

PROPERTY

110,329,295

SERVICES

92,618,398

MINING & OIL

46,685,744

GRAND TOTAL

565,493,059

SME

671,000 346,500 1,611,000

EXCHANGE TRADED FUNDS 117.4 45,500 10

DDS

3,330

VALUE 1,863.65 (up) 2.94 739,180,180.76 FINANCIAL 9,635.07 (up) 11.23 INDUSTRIAL 1,506,632,976.43 7,592.07 (down) 61.70 HOLDING FIRMS 1,996,759,467.07 PROPERTY 4,154.52 (down) 3.00 1,531.10 (up) 3.13 SERVICES 1,453,243,149.912 8,091.98 (up) 64.05 MINING & OIL 795,879,827.39 7,815.26 (down) 27.02 PSEI 96,505,932.918 All Shares Index 4,649.67 (up) 6.47 6,600,742,779.92 Gainers: 104; Losers: 86; Unchanged: 43; Total: 233

Meralco bullish on outcome of second round power auction By Alena Mae S. Flores MANILA Electric Co., the biggest retailer of electricity, is confident the second round of bidding for a 20-year, 1,200 megawatt base-load power supply contract will be successful. “Meralco is confident that the next round of bidding will be successful once again, as this will contribute to adding much-needed capacity to the Luzon Grid, as well as bring power rates further down for the benefit of our consumers,” Meralco first vice president and head of regulatory management Jose Ronald Valles said in a statement. Meralco said the greenfield plant supplying the full 1,200-MW contract capacity had a scheduled commercial operations date of September 2024. The Third-Party Bids and Awards Committee created by a Department of energy circular will conduct a pre-bid conference on January 20, 2020, with bid submission and opening to take place on February 17, 2020. “Meralco continues to work with the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to ensure the completion of the succeeding biddings,” Valles said. He said Meralco remained committed to signing partnerships that could deliver competitive electricity to customers. Similar to the first 1,200-MW and 500-MW competitive selection process, the upcoming CSP bidding will be done in accordance with the DOE circular requiring distribution utilities to procure power through a CSP. The CSP will be administered by the TPBAC. “We assure the public that Meralco’s Terms of Reference (TOR) for the second invitation to bid are pro-consumer, transparent, and will result in least cost, as prescribed in the Electric Power Industry Reform Act (EPIRA). We wish to thank the DOE and DOE Secretary Cusi for the leadership and guidance in the conduct of the recent successful, historic CSP last September, and we hope to successfully complete the succeeding CSPs for 2020,” Valles said. Meralco’s TBAC set the submission of expression of interest on January 13. It will declare a failure of the bidding process if the submission of expression of interest is less than two.

ICTSI’s Baltic unit registers record output By Darwin G. Amojelar BALTIC Container Terminal, the Polish unit of International Container Terminal Services Inc., said Port of Gyndia handled its 500,000th twenty-foot equivalent unit (TEU) on December 21, a new record for the port terminal. “As a gateway terminal serving the Polish economy, we are extremely pleased to have reached this latest milestone,” BCT chief executive Wojciech Szymulewicz said. “More than hitting our targets, this new record highlights Baltic Container Terminal’s capability to continuously outpace market growth, and our readiness to serve the vibrant Polish economy and the Eastern European markets,” he said. Strategically located within the Baltic-Adriatic corridor, BCT has a current annual handling capacity of up to one million TEUs and excellent road and on-dock rail connectivity to Europe’s hinterlands. As part of efforts to boost the port’s operations, the Port of Gdynia Authority and the Center for European Union Transport Projects recently signed a contract for the reconstruction and electrification of the port’s rail access. An investment expected to cost around PLN 70 million, the rebuilt intermodal terminal will complement BCT’s operations from the land side. In the pipeline is new handling equipment on both sea and landside, rehabilitation of the present quay, deepening of harbor basins, additional storage areas and state-of-the-art IT systems to enable BCT to cater on growing demands. “Along with further investments in port equipment and IT systems, which are of structural importance for Poland and trans-European transport networks, we continue to work hand-in-hand with our customers to improve the efficiency of our operations and processes, and inevitably further improving the customer experience,” Szymulewicz said. ICTSI In May 2003 obtained a 20year concession from the Port Authority of Gydnia to develop, operate and manage the container terminal in Pomerania, Gydnia, Poland.

World

SATURDAY, DECEMBER 28, 2019 CESAR BARRIOQUINTO, Editor mst.daydesk@gmail.com

Netanyahu wins ruling party Likud’s leadership primary

LANTERN SHOW. This photo taken on December 26, 2019, shows people visiting a lantern show ahead of the 2020 new year in Shenyang, China’s northeastern Liaoning province. AFP

IN BRIEF

14 killed as plane crashes into house

ALMATY―At least 14 people died Friday when a passenger plane carrying 100 people crashed into a house shortly after takeoff from Kazakhstan’s largest city, authorities said. The Bek Air plane “fell off the radar” minutes after it took off from Almaty airport at 7.05 am (01:05 GMT) on its way to the capital, Nur-Sultan, the airport authority said in a statement. “There are 14 dead at the [crash] site,” the city government said in a statement sent from its Telegram messenger app. It added that a further 17 patients were being treated in hospital in a “serious condition”, including at least eight children. A video, released by the Central Asian country’s emergencies committee, showed the front of the plane crushed into a house that was partially collapsed, as rescue crews worked to pull people from the wreckage. Rescue workers could be seen reaching into the windows of the shattered cock pit, as scores of emergency staff gathered at the site. President Kassym-Jomart Tokayev pledged to provide families of the victims with compensation and tweeted that those responsible “will be severely punished in accordance with the law.” Tokayev also said that a government commission had been set up to investigate the circumstances surrounding the tragedy. In March, a Bek Air Fokker-100 plane with 116 passengers made an emergency landing at the capital’s international airport after its landing gear failed to deploy. None of the passengers or five-member crew were injured. AFP

JERUSALEM―Embattled Israeli Prime Minister Benjamin Netanyahu declared a “huge” victory Friday, after winning a leadership primary that ensures he will lead his right-wing Likud party into a March general election. Israel’s longest-serving premier, who faces a corruption indictment and a third general election in 12 months, was expected to beat rival Gideon Saar but the convincing margin of victory strengthened his position in the party he has dominated for 20 years. With all votes counted, the Likud announced that Netanyahu had secured 72.5 percent, with Saar winning 27.5 percent. “A huge win! Thank you to Likud members for their trust, support and love,” Netanyahu tweeted. “With God’s and your help, I will lead the Likud to a big victory in the upcoming election and we will continue to lead the State of Israel to unprecedented

Sexist slurs mar Taiwan elections T AIPEI―Taiwan has forged a reputation as Asia’s most progressive democracy and boasts a higher proportion of women in parliament than anywhere else in the region―yet misogynistic insults have littered its presidential race. The campaign for the January 11 polls has exposed an undercurrent where female politicians face a gauntlet of personal abuse and jibes that their male counterparts rarely suffer. The island’s most prominent female politician is President Tsai Ing-wen, 63, who is seeking a second term. She has once again faced insults based on her gender, much of it focused on the fact she is not married and does not have children. Wu Den-yih, chairman of the opposition Kuomintang party, earlier this month used a Taiwanese slang term to dub Tsai “an unlucky woman” who had brought misfortune to her people. And her presidential opponent Han Kuo-yu, 62, invoked two characters from an ancient Chinese erotic novel to

describe Tsai’s rivalry with her running mate. Han’s running mate Chang San-cheng also said Tsai could not understand the hearts of parents because she was “a woman who has never given birth”. In a Facebook post, Tsai hit out at the campaign rhetoric. “I find such a political culture unacceptable and we will not accept any personal attacks against women using such language,” she wrote. Wu later apologized, saying he respected women and meant to criticize Tsai’s job performance. Taiwan’s election will be closely watched because much of the campaign has centered on relations with authoritarian China which has ramped up pressure since Tsai’s 2016 election.

Tsai, a law professor and trade negotiator before she became a politician, is one of the few female leaders in Asia not to have hailed from a powerful political dynasty. She is loathed by Beijing because her party refuses to accept the idea that Taiwan is part of the so-called One-China policy which denies the island’s independence. Han, the outspoken mayor of Kaohsiung city, favors much warmer relations with China. But it is not just Tsai on the receiving end of gender-based jibes. Chen Chu, a senior figure from Tsai’s Democratic Progressive Party who was a political prisoner for six years when Taiwan was a dictatorship, has often been singled out for her appearance. The KMT’s Wu described her as “fatty” and “a big sow” while Taipei’s mayor Ko Wen-je, head of the new Taiwan People’s Party, described her as “a fatter Han Kuo-yu”. During a failed attempt to win the KMT’s nomination, Taiwan’s wealthiest man and Foxconn founder Terry Gou dismissed his wife’s initial opposition to

Quake strikes near Iran nuclear plant

TEHRAN―An earthquake struck Iran on Friday less than 50 kilometers from the country’s only nuclear power plant, monitors said. There were no immediate reports of any damage. The US Geological Survey said the 5.1 magnitude quake struck 44 kilometers from the southwestern city of Borazjan and at a depth of 38 kilometers. Its reported epicenter is 45 kilometers east of the Bushehr nuclear power plant, on the southwest Gulf coast. The Iranian Seismological Center said in a preliminary report on its website that the strength of the quake was 4.9 magnitude and that its depth was 10 kilometres. The quake jolted villages near Kalameh city, semi-official news agency ISNA said, adding there were no immediate reports of any damage. “Based on assessments by the Red Crescent, and regional (authorities), we’re yet to hear of any damage,” it quoted the head of the province’s crisis center, Jahangir Dehghani, as saying. “We might have roads blocked in parts of the mountain due to the quake’s intensity,” he added. The Bushehr plant, which produces 1,000 megawatts of power, was built by Russia after being delayed for years and officially handed over in September 2013. AFP

his bid by saying “the harem should not meddle in politics”. He later apologized for his remarks. The DPP are not free of accusations either. A spokeswoman for KMT candidate Han complained that she was called “a vase” by Tsai’s staff -- a derogatory term used to describe a pretty woman that lacks substance. On paper Taiwan has impressive credentials on progress towards gender equality in politics. The 2016 election that swept Tsai to power also returned a legislature where 38 percent of the seats were held by women, by far the highest proportion in Asia. The next highest proportion is the Philippines with 29 percent while South Korea and Japan have 17 and 10 percent, respectively, according to a database compiled by the Inter-Parliamentary Union as of January 2019. Taiwan’s progressive image got a further boost when it became the first in Asia to legalize same-sex marriages in May. AFP

Cocoa follows in footsteps of famed wines

Fiji braces for cyclone Sarai

WELLINGTON―Tropical Cyclone Sarai was bearing down off the coast of Fiji on Friday, with the archipelago’s disaster agency warning some residents to move to higher ground ahead of possible flooding. The Fiji Meteorological Service warned of “damaging gale force winds” and heavy rain with coastal flooding expected in some areas as the cyclone intensifies. Sarai is expected to be a Category Two storm by the time it passes near the main island of Viti Levu early Saturday with average winds of 65 kilometers per hour and gusts of 90 kph. Dozens of people were been evacuated in the country’s second city Lautoka and on the small island of Ovalau, as flash flood warnings were issued. The Fiji Disaster Management Office has activated its emergency shelters and issued a public advisory for people to have their “disaster kits” ready. “Sixty-three people are now taking shelter in three evacuation center around the country,” the National Disaster Management Office said. Meanwhile, the plans of thousands of tourists who flock to the South Pacific island nation over the Christmas-New Year holiday period were upended as flights were canceled or delayed. Many day cruises around the islands have been called off while Fiji Airways has canceled several inter-island flights, and flights to Australia and New Zealand. AFP

achievements,” he added. Most media commentators had predicted a Netanyahu victory but its scale made banner headlines. “Netanyahu, big time,” said Yediot Aharonot, Israel’s top-selling daily. State radio described it as a “landslide” victory for Netanyahu. The left-wing Haaretz newspaper described it as a battle between the “rational expediency” of Saar supporters and the “tribal loyalty” of the Netanyahu camp. It noted the historic reluctance of Likud members to depose a sitting leader. “Since 1948, the Labor Party has replaced its leader 17 times,” it said. “The Likud has had only four leaders since Israel’s inception, and only two since 1995. “Netanyahu has led the party for the past 14 years consecutively, and for two decades altogether. Younger Likudniks have never known their party without Netanyahu at its helm.” AFP

RELAXATION. Macaque monkeys relax on the roof of an office building in New Delhi on December 27, 2019. AFP

Botanist risking his life to preserve national memory LA CALERA―For the last three decades, botanist Julio Betancur has braved minefields and penetrated deep into jungle territory infested with drug traffickers and armed gangs in a bid to document Colombia’s rich biodiversity. Colombia is second only to Brazil for its incredible range of fauna and flora. Armed only with a notebook and gardening shears, Betancur has taken considerable risks to collect plant cuttings. He’s contributed four percent of the 600,000 samples in the University of Colombia’s herbarium. There have been close calls including “a slightly violent” encounter with a group of drug runners Betancur and his colleagues came across in the jungle. “Without realizing it, we were putting ourselves in the eye of the storm,” Betancur told AFP. Fortunately, the drug traffickers accepted their explanations and left them

alone. On another occasion, local peasants freed them from a minefield. “If it hadn’t been for them, the communities, we wouldn’t be here telling the story,” said Betancur. The 59-year-old, a biologist, university professor and collector of bromeliads―which include the pineapple, Spanish moss and queen of the Andessays it’s worth taking the risks so his country can “know about” its biodiversity. While dangers lurk for Betancur, Colombia’s biodiversity faces far more threats. Deforestation―mainly from livestock farming but also illegal mining and coca plantations―has done untold damage to Colombia’s jungles. Almost five percent of the 169,000 hectares of illegal coca plantations are in protected areas. Illicit gold mining, using techniques that are harmful to the environment,

cover 98,000 hectares -- an area greater than Berlin. Since 2010, more than a million hectares of Colombian jungle have been cut down, according to an official report. Wearing an explorer’s hat and with a rucksack on his back, Betancur forges into the mountainous Chinganza National Park some 40 kilometers (25 miles) from the capital Bogota. Suddenly, he stops in front of a plant with tiny yellow flowers known as a “chite” in Colombia: a member of the St. John’s-wort family. He takes a clipping and wraps it in newspaper soaked in alcohol. Back in the university herbarium, where Betancur works as a curator, he jots down in his notebook the color, size, smell, coordinates and the sample number that betrays his vast body of research: 22,999. “Every time I take a botanical sample it’s like writing a page in the book of our forests,” he said.AFP

COARACI, Brazil―With an attentive eye, Henrique Almeida watches a technician carefully open a hundred cocoa pods, while another worker on the plantation collects samples in bags to check whether the batch conforms to the “South Bahia” geographical indication. Like famed wines from specific regions in Europe, such as France’s Champagne, the geographical indication (GI) denotes the origin and quality of the cocoa, leading to higher prices that are a boon to farmers who meet the exacting standards. “The production of fine cocoa and the creation of the geographical indication label make it possible to have a profitable business and pull our region upwards,” Almeida explained. The 63-year-old comes from a cocoa-growing family that has been farming for three generations. In 2006, he acquired the hundred-year-old Sagarana farm, 148 acres on a hillside in Coaraci, in the northeastern Brazilian state of Bahia. Farmers had previously been confined to the production of common cocoa, intended for the chocolate industry. But after the “witches’ broom” disease in 1989 drastically reduced the productivity of Bahia’s cocoa trees― which provide up to 86 percent of national output―Almeida, like other producers in southern Bahia, chose to improve the quality of his crop in order to be able to continue growing. “When I bought the farm, standard cocoa prices were low, and cocoa farmers were unmotivated, Manila EXTRA JUDICIAL while the Standard SETTLEMENT TODAY chocolate Notice is hereby given that the estate of the late market was HONORATO ARAOLA doing well,” SANTOS,who died on 17 February 2019 at 18 Tindalo he told AFP. St., Valle Verde 3, Pasig “I started City, has been extrajudicially settled through a Deed of growing fine Extrajudicial Settlement cocoa to of Estate of the Late Honorato A. Santos with make my own Waiver of Rights notarized chocolate and by Atty. John Evan Baron on 17 December 2019, as per add value to Doc. No. 142; Page No. 30; my product.” Book No. 27; Series of 2019. AFP (MS-DEC. 21/28 & JAN. 4, 2020)

SATURDAY, DECEMBER 28, 2019

Joel D. Lacsamana, Editor jdlacsamana@gmail.com

NEW YEAR

RESOLUTIONS FOR BUSY PEOPLE Interior design ideas for 2020

he new year is a time for change. This annual milestone is typically accompanied by new goals, plans and objectives. Unfortunately, most people don’t keep their new year’s resolutions, often because the goals are so inconvenient that they become unsustainable. And if you’re busy, it’s twice as hard to remain steadfast.

With the new year right around the corner we’ve compiled some relatively easy ways that can make small changes in your home this year. The ideas incorporate eye-catching new design trends as well. GROW A GREEN THUMB If you don’t have a green thumb, commit to buying at least one plant this year. And if you don’t kill it, you may discover that you actually like tending to plants. Besides adding beauty to your home, studies show that fresh flowers can lower anxiety and depression. A dragon tree, a rubber tree or any kind of palm tree make eye-catching statements anywhere in a home. You can flank your sofa with one on each side or situate one in any corner. The bigger, the better here. Instead of relying purely on aesthetics, you’ll want to allow the plant’s care-andkeeping instructions to dictate its placement in your home. Be sure to check how much sunlight and water a plant needs before purchasing it to ensure that whichever plants you end up using will flourish in their ideal environment. GIVE YOUR CEILING A POP OF COLOR In 2020, we’ll start to see people tak-

ing advantage of the fifth wall – the ceiling has been ignored for too long. From wallpaper to molding and daring paint colors, the ceiling will be the place that people start taking chances and creating a ‘wow moment’ in their spaces. Consider this look for spaces that you want to feel intimate, especially bedrooms and formal dining spaces. Here, you’ll want to keep the 10-30-60 rule in the forefront of your mind. Either continue to the ceiling with your base color, which covers 60 percent of the room, or make a strong statement by using your accent color – the last 10 percent – to add a pop of visual interest. MULTI-FUNCTIONAL SPACES With more and more people adopting the “less is more’ attitude, we are seeing a shift in interior design. For 2020, go for more multi-functional spaces. Multi-functional furniture doesn’t just have to be for small apartments anymore. Think about incorporating it into any multi-use spaces, such as an office that pulls double-duty as a guest room. The key is to start thinking outside the box when it comes to functionality. BOLD COLORS In 2020, bold colors are going to explode even more than they already

have. Think navy blue, deep red, and burnt orange to really bring some excitement into the room. Bringing bold colors into a room is all about creating balance. Make sure to pair your bold shade with calmer, neutral hues like white or gray. Use your bold color sparingly, either as a statement piece or an accent.

MISSION-STYLE DETAILS Recently, we’ve seen a lot of the modern looks that photograph well, but feel very cold and clinical in-person. This year, add warmth to modern spaces in your home through mission-style details. Try patterned tile in a kitchen backsplash, texture on walls or terra cotta colors. It’s all about finding ways to inject more character into the room.

Solons support House probe into billion-peso substandard steel scam Recent strong quake in Mindanao fuel fears of “the big one”

UNIQUE WELCOME IN QUEZON CITY.

Century Properties recently launched the Residences at Commonwealth, a project comprising eight multi-level towers with a design that lets residents enjoy natural light and ventilation. It features an undulating façade that takes inspiration from the land’s natural topographical lines, creating expansive balconies where one can take in the view of the amenities below, or the city skyline. Commonwealth by Century lets one savor fresh air and the outdoors at the ‘great lawn’, an open space that mirrors Quezon City’s easygoing vibe. Designed to cater to different lifestyles, amenities at Commonwealth by Century include areas for outdoor activities like the basketball court, an athletic boot camp, lap pool and a kiddie pool. The project’s common areas are designed by Chat Fores. From the scent and furniture, to the décor and lighting pieces, homeowners and their visitors are guaranteed to receive a unique welcome every day.

NOWHERE TO GO BUT UP.

Megaworld recently launched a third tower for Park McKinley West, one of the residential condominium clusters in its 34.5-hectare McKinley West development in Fort Bonifacio. Standing 25-storeys high, the third tower of Park McKinley West offers unit layouts ranging from one-bedroom (70.5 square meters); two-bedroom (110 square meters); three-bedroom ( 212 square meters); fourbedroom (229 square meters); and fivebedroom ( 336 square meters). Designed by UK-based multi-awarded architectural firm Broadway Malyan, the tower will have amenities that include a swimming pool, children’s pool, game and entertainment room, yoga room, outdoor yoga deck, function halls, and a fitness center. The company expects to generate around P8billion in sales from this new tower, which will be completed in 2024.

By Hector Zabala TWO congressmen expressed support recently for calls in the House of Representatives to look into the reported rampant smuggling of raw materials used to make steel rebars, as well as the alleged connivance between officials of the Bureau of Customs (BoC), Department of Trade and Industry (DTI) and local manufacturers to misrepresent, and sell structurally-compromised steel in the country. Speaking to the media during the South East Asian Games hosted by the Philippines, Congressmen Manny Lopez (1st district of Manila) noted with alarm that should a big earthquake hit the major fault lines in the Philippine capital, large portions of Metro Manila where high rise and government infrastructure are standing, would be directly affected. “We cannot compromise pubic safety following the deaths and destruction due to the strong earthquake hat hit Bukidnon, Cotabao, Maguindanao and Davao this week, and the series of strong tremors that preceded it in October and November,” the Tondo solon said. Karlo Nograles (1st district of Davao) Nograles lauded the vigilance of his House colleagues, and said he is adding his voice in support of the probe “to assure the structural integrity of various high-rise structures in the country which may have been built using weak steel.” Last month, House Speaker Alan Peter Cayetano backed House Bill 379, filed by Rep. Lemuel H. Fortun, which detailed the alleged corrupt practices in the industry, in to ensure the safety of the public after the series of earthquakes that hit Mindanao in October and November. HIGH RISE STRUCTURES IN DANGER The House Committee on Trade and Industry announced its investigation in late October following the quakes in Mindanao that claimed over 20 lives, and to verify allegations of technical smuggling, or under-valuation, of steel billets used to manufacture quenched tempered (QT) steel rebars in the Philippines, due to the “collusion between large steelmakers and officials of the DTI and BoC.” Fortun, whose province, Agusan del Norte, was badly hit by a series of shocks over the last two months, urged the committee to look into the alleged connivance between the government and the biggest big steel manufacturer in the country, which is

reportedly headed by a former undersecretary of the DTI. Fortun’s resolution was anchored on fears expressed by real estate developers and construction builders, as well as consumer groups — specifically buyers of high rise condominiums all over the country — over reports of continued selling of QT rebars by big steel manufacturers, that may render thousands of high rise structures unsafe in the event of a high intensity earthquake. QT STEEL BANNED IN EARTHQUAKE-PRONE COUNTRIES Five countries were identified in the resolution to have have banned QT steel when its government regulators discovered, through stringent testing processes, that QT steel are only strong on the outer layer due to a structurally-compromising quenching process. Like the Philippines, China, Taiwan, Japan, New Zealand, Canada and US are located in highly seismic zones. Fortun charged that the DTI has been certifying QT steel rebars to be Grade 60 when they are only Grade 40. Grade 40 steel rebars are used only for low-rise buildings. Most of the buildings that sustained massive damage during the successive quakes over the last two months in Mindanao have been high rise buildings.

“This deception may have led to the rise in the past 10 to 12 years of high rise buildings, including public infrastructure, in various urban centers in the country that may not be able to withstand highintensity quakes, thus endangering the lives of millions of Filipinos,” Fortun revealed. “DECEITFUL SELLING” Speaker Cayetano vowed that the House would look into the steel smuggling issue, as well as mis-branding of QT steel grades to fool the public, “and hold accountable whose who are behind this illegal activity.” Ambushed by reporters just before the South East Asian Games in the Philippines, the speaker said the House will target “the deceitful selling” of structurallycompromised QT steel rebars in the country, which had replaced micro-alloyed steel rebars traditionally used in the construction industry. Congressman Lopez, who acknowledged owning a Triple-A contracting business, said he supports a house hearing on the issue as soon as possible. “The House is currently deciding which would be the most appropriate committee to conduct a hearing,” he said. “This to ensure a thorough investigation of the smuggling of steel billets and manufacture of steel rebars than can endanger the lives, not just of my constituents in Manila, but of millions of Filipinos.” “The losers are the Filipino people when our regulatory agencies disregard the dangers of substandard construction materials that are being used to build their dream homes,” he pointed out. MINDANAO QUAKES, AN EYE-OPENER Nograles stressed the urgency of addressing the mounting concerns of the real estate and construction sectors, and their customers, namely millions of Overseas Filipino Workers (OFW’s) who have been investing in the country’s booming property market, over the use of QT steel bars in high-rise buildings. “Our biggest fear are the reports that these socalled QT steel bars were used in the construction of buildings and infrastructure buildings that collapsed during the strong earthquakes that in Mindanao recently,” he said. “With the possibility of a bigger earthquake hitting the country in the future, it is crucial to get to the bottom of the alleged collusion between large steel manufacturers and certain government officials,” he said.

Life

Bernadette Lunas, Issue Editor manilastandardlife@gmail.com @manilastandardlife

ARTS AND CULTURE

Text and photos by Diana B. Noche

HE Paco Park is not your kind of recreational park where children run around and make all kinds of merrymaking shrieks. It is more of a serene and romantic garden, all of 4,100 square meters, small by Luneta Park standard, and exists in its cherished isolation, away from the wearying social effects of Manila’s “citification.”

Paco Park, with its ancient trees and walled intimateness within thick adobe walls, steeped in the old-world allure of a vanished era, is a wellfavored venue of couples who want a quiet garden-like concept. The fact that Paco Park used to be a cemetery has not caused a bit of apprehension among wedding guests. Truth is, its being an old cemetery is the park’s foremost come-on. Especially when you realize that the park’s most notable tomb belonged to Dr. Jose Rizal. Paco Park was called Cementerio General de Dilao, Manila’s old municipal cemetery built by the Dominicans during the Spanish colonial period. It is about two kilometers away from Intramuros, the original Manila, and is located on the eastside end of Padre Faura Street. The cemetery is circular in shape, with an inner circular fort. Its walls were made hollow to serve as niches. The top of its walls has pathways for promenades. A small chapel with a dome was built inside the cemetery in honor of St. Pancratius, a Roman citizen who converted into Christianity and was beheaded in the year 304 at age 14 for refusing to renounce his faith. The cemetery was principally built to accommodate the dead of affluent and aristocratic families living in Manila. During the 1800s, the cemetery was expanded to provide for those who perished during a cholera epidemic in the city. Construction started in 1807 with Don Nicolas Ruiz planning the design. Don Jose Coll supervised the construction work. On Dec. 30, 1896, Dr. Jose Rizal was executed by a firing squad in Bagumbayan after his incarceration in Fort Santiago. His body was hastily removed from the site and dumped— clothes, shoes, and all—in an open grave at the Paco Cemetery. The grave was unmarked. Jose Rizal’s sister, Narcisa, after a series of searches finally came upon

@MStandardLIFE SATURDAY, DECEMBER 28, 2019

A promenade with heroes

RIZAL’S FIRST RESTING PLACE. Before our national hero Jose Protasio Rizal’s remains were placed in the Rizal monument at Luneta Park, he was first buried in an open grave at Paco Cemetery.

Still entombed on the circular walls are 65 people, including 22 children. The oldest niche is that of Dorotea Mateo who died in 1882. Aside from Jose Rizal, other notable persons buried in the Paco Cemetery were Ramon Maria Llanderal Solano who was the Spanish Governador General (1857-1860), and the three martyred priests Gomez, Burgos, and Zamora after their execution on February 17, 1892 for their link to the Cavite Mutiny. All the grave markers or lapidas are in Spanish. A promenade at the Paco Park is like being engulfed in an atmosphere of timelessness, of being detached from the ordinary world. It feels something straight

A promenade at the Paco Park offers a serene experience akin to a scene in ‘Noli Me Tangere.’

Jose Rizal’s tomb with the initials RPJ—Rizal Protasio Jose.

Paco Cemetery where some guardia she promptly marked with Jose Rizal’s civiles milled about, watching out for initials, inverted to RPJ—Rizal ProtaKatipuneros’ attack. Narcisa bribed her sio Jose. In August 1898, Narcisa asked the way to get to her brother’s grave which new regime under the United States to exhume her brother’s remains. The body had totally turned to dust, except for his shoes. Rizal’s body had not been placed in a coffin. The bones were washed and re-interred at the same site. In 1901, the US government approved the use of Luneta Park to be the location for a Rizal monument. His remains were exhumed again and washed, placed in an ivory urn carved by Romualdo Teodoro de Jesus. In the 1900s, Jose Rizal came to be venerated as the National Hero. On Dec. 30, 1912 the urn was deposited in the center of the monument base in a ceremony fit for a hero, with Sergio Osmeña and Rizal’s good friend, Mariano Ponce, joining the procession. Meantime, interment at the Paco Park and Cemetery ceased in 1912. During World War II, the Japanese forces used the cemetery as central supply and ammunition depot. The high thick walls around the cemetery were a perfect defense. After the war, the cemetery ruins were repaired and restored to its original design. The cemetery was converted into a National Park during the term of Diosdado Macapagal. The Paco Park, as the cemetery came to be known, became a venue for cultural events with the backing of Imelda Marcos during the Ferdinand Marcos administration. In 1980, the Press and Cultural Attache of Germany in the Philippines and Teodoro Valencia initiated a classical concert at the park during the Philippine-Germany month which subsequently became a regular free Friday night tradition—the “Paco The Rizal monument at Luneta Park, where the ivory urn with the national hero’s remains Park Presents.” was placed on Dec. 30, 1912.

A statue of Rizal at the park.

out of the pages of Noli Me Tangere, being there with the guardia civiles, like mute witnesses to history, in a place that pulls us in by virtue of its rich past.

Paulina Luz Sotto designs fast food chain’s store symbols VISUAL artist Paulina Luz Sotto has lent her talent to create the store marker and jeepney art installation for Mang Inasal. The collaboration is part of the chicken inasal chain’s 600th store milestone. The jeepney symbolizes the journey of Mang Inasal toward becoming a national icon in the quick service restaurant industry, with its truly Pinoy offerings and celebration of the Filipino dining culture. Sotto, granddaughter of National Artist Arturo Luz and the daughter of Vic Sotto and Angela Luz, refers to her design as “The Gridlock,” which she clarifies does not refer to a traffic gridlock. “It is a play on different shapes and colors,” she shares. She adds, “To me, the imperfect shapes fit together in a way that they can’t be moved or adjusted, hence the series title. Aside from its clean aesthetic, the shapes also represent the different elements of Mang Inasal, big and small, coming together to form one cohesive unit. It may not be perfect, but it works.” The 28-year-old painter shares that even when she spent so much time with her grandfather Arturo Luz, he really did not teach her technical things about art. “We’re both Scorpios. We like to be alone when we work, so he never tried to influence me in any way to be an artist.” In fact, the Communication graduate from Ateneo de Manila University, relates that being an artist has never really crossed her mind. It was not until December 2015 when she discovered her fascination with lines. Eventually, an old friend asked if her abstract paintings were for sale, and that was when her career in visual arts began.

Visual artist Paulina Luz Sotto designs Mang Inasal’s store symbols and jeepney installation.

Today, Sotto simply hopes that in the long-term, she would still be doing what her busy hands are on right now. “I just want to keep painting and follow what I’m feeling.” Paulina Luz Sotto is now dedicated to her pursuit as a full-time visual artist. Having had three successful solo exhibits, alongside a few collective art shows, Sotto has now sold hundreds of abstract paintings in a span of four years. Well-known for her fascination of clean lines, all of her paintings center on one belief: the beauty in simplicity.

‘The Gridlock’ features a play on different shapes that fit together in a way that they can’t be moved.

SATURDAY, DECEMBER 28, 2019 Standard C2 TODAY Manila

properly perform its tasks and functions. In this regard, the Board sets qualification standards for its members to facilitate the selection of potential nominees for board seats, and to serve as a benchmark for the evaluation of its performance.

Recommendation 2.3 The Board should be responsible for ensuring and adopting an effective succession planning program for directors, key officers and Management to ensure the continuous and consistent growth of the company. This should include adopting a retirement policy for directors and key officers.

Recommendation 1.2 The Board should be headed by a competent and qualified Chairperson. Explanation

SEC MEMORANDUM CIRCULAR NO. 24 Series of 2019. TO

: PUBLIC COMPANIES AND REGISTERED ISSUERS

SUBJECT

: CODE OF CORPORATE GOVERNANCE FOR PUBLIC COMPANIES AND REGISTERED ISSUERS

The roles and responsibilities of the Chairperson should be contained in the Board Charter. These include, among others, the following:

To promote the development of a strong corporate governance culture and keep abreast with recent developments in corporate governance best practices the Commission. pursuant to its regulatory power under Section 179(d) of Republic Act No. 11232 otherwise known as the Revised Corporation Code of the Philippines, resolved to adopt the Code of Corporate Governance for Public Companies and Registered Issuers (“CG Code for PCS and Rls”). (1) The CG Code for PCs and Rls supersedes the following SEC Memorandum Circulars: a) b) c)

SEC Memorandum Circular No.6. Series of 2009 (Revised Code of Corporate Governance); SEC Memorandum Circular No. 9, Series of 2014 (Amendment to the Revised Code of Corporate Governance; and SEC Memorandum Circular No. 4, Series of 2017 (Term Limits of Independent Directors).

The aforementioned Memorandum Circulars shall remain in effect for other covered companies, when applicable.

Facilitates discussions on key issues by fostering an environment conducive for constructive debate and leveraging on the skills and expertise of individual directors;

Ensures that the Board sufficiently challenges and inquires on reports submitted and representations made by Management;

Assures the conduct of proper orientation for first-time directors and continuing training opportunities for all directors; and

Makes sure that performance of the Board is evaluated at least once a year and discussed or followed up on if necessary.

EMILIO B. AQUINO Chairperson CODE OF CORPORATE GOVERNANCE FOR PUBLIC COMPANIES AND REGISTERED ISSUERS INTRODUCTION

The following may be considered as grounds for the permanent disqualification of a director: a.

Any person convicted by final judgment or order by a competent judicial or administrative body of any crime that: (a) involves the purchase or sale of securities, as defined in the Securities Regulation Code; (b) arises out of the person’s conduct as an underwriter, broker, dealer, investment adviser, principal distributor, mutual fund dealer, futures commission merchant, commodity trading advisor, or floor broker; or (c) arises out of his fiduciary relationship with a bank, quasi-bank, trust company, investment house or as an affiliated person of any of them;

Any person who, by reason of misconduct, after hearing, is permanently enjoined by a final judgment or order of the SEC, Bangko Sentral ng Pilipinas (BSP) or any court or administrative body of competent jurisdiction from: (a) acting as underwriter, broker, dealer, investment adviser, principal distributor, mutual fund dealer, futures commission merchant, commodity trading advisor, or floor broker; (b) acting as director or officer of a bank, quasi-bank, trust company, investment house, or investment company or as an affiliated person of any of them; (c) engaging in or continuing any conduct or practice in any of the capacities mentioned in sub-paragraphs (a) and (b) above, or willfully violating the laws that govern securities and banking activities.

The Corporate Secretary is primarily responsible to the corporation and its shareholders/members, and not to the Chairperson or President of the Company and has, among others, the following duties and responsibilities:

Safekeeps and preserves the integrity of the minutes of the meetings of the Board, Board committees and shareholders/members, as well as other official records of the corporation;

Corporate Governance – the system of stewardship and control to guide organizations in fulfilling their long-term economic, moral, legal and social obligations towards their shareholders/members and other stakeholders.

Keeps abreast of relevant laws, regulations, all governance issuances, industry developments and operations of the corporation, and advises the Board and the Chairperson on all relevant issues as they arise;

Corporate governance is a system of direction, feedback and control using regulations, performance standards and ethical guidelines to hold the board of directors and Senior Management accountable for ensuring ethical behavior and reconciling long-term customer satisfaction with shareholder/member value to the benefit of all stakeholders and society.

Works fairly and objectively with the Board, Management and shareholders/ members and contributes to the flow of information between the Board and Management, the Board and its committees, and the Board and its shareholders/members as well as other stakeholders;

e. f.

Definition of Terms: Board of Directors – the governing body elected by the shareholders/members that exercises the corporate powers of a corporation, conducts all its business and controls its properties. For purposes of this Code, reference to Board of Directors and/or Directors shall also include reference to Board of Trustees and/or Trustees, respectively, in applicable cases.

Its purpose is to maximize the organization’s long-term success, thereby creating sustainable value for its shareholders/members, other stakeholders and the nation.

Advises on the establishment of board committees and their terms of reference;

Any person convicted by final judgment or order by a court, or competent administrative body of an offense involving moral turpitude, fraud, embezzlement, theft, estafa, counterfeiting, misappropriation, forgery, bribery, false affirmation, perjury or other fraudulent acts;

Informs members of the Board, in accordance with the by-laws, of the agenda of their meetings at least five (5) working days before the date of the meeting, and ensures that the members have before them accurate information that will enable them to arrive at intelligent decisions on matters that require their approval;

Any person who has been adjudged by final judgment or order of the SEC, BSP, court, or competent administrative body to have willfully violated, or willfully aided, abetted, counseled, induced or procured the violation of any provision of the Corporation Code, Securities Regulation Code or any other law, rule, regulation or order administered by the SEC or BSP;

Any person judicially declared as insolvent;

Any person found guilty by final judgment or order of a foreign court or equivalent financial regulatory authority for acts, violations or misconduct similar to any of the acts, violations or misconduct enumerated above; Conviction by final judgment of an offense punishable by imprisonment for more than six years, or a violation of the Revised Corporation Code of the Philippines and Securities Regulation Code committed within five years prior to the date of his election or appointment; and Other grounds as the SEC may provide pursuant to the provisions of the Revised Corporation Code of the Philippines, Securities Regulation Code and other related laws. In addition, the following may be grounds for temporary disqualification of a director: Absence in more than fifty percent (50%) of all regular and special meetings of the Board during his incumbency, or any 12-month period during the said incumbency, unless the absence is due to illness, death in the immediate family or serious accident. The disqualification should apply for purposes of the succeeding election; Dismissal, termination or removal for cause as director of any publicly-listed company, public company, registered issuer of securities and holder of a secondary license from the Commission. The disqualification should be in effect until he has cleared himself from any involvement in the cause that gave rise to his dismissal, termination or removal; If the beneficial equity ownership of an independent director (ID) in the corporation or its subsidiaries and affiliates exceeds two percent (2%) of its subscribed capital stock. The disqualification from being elected as an ID is lifted if the limit is later complied with; and If any of the judgments or orders cited in the grounds for permanent disqualification has not yet become final.

Attends all Board meetings, except when justifiable causes, such as illness, death in the immediate family and serious accidents, prevent him from doing so;

Executive director – a director who has executive responsibility of day-to-day operations of a part or the whole of the corporation.

Performs all required administrative functions;

Oversees the drafting of the by-laws and ensures that they conform with regulatory requirements; and

Performs such other duties and responsibilities as may be provided by the Board and the Commission.

Independent director – a person who is independent of Management and the controlling shareholder, and is free from any business or other relationship which could, or could reasonably be perceived to, materially interfere with his exercise of independent judgment in carrying out his responsibilities as a director. Internal control – a process designed and effected by the entity’s Board of Directors/ Trustees, Senior Management, and all levels of personnel to provide reasonable assurance on the achievement of objectives through efficient and effective operations; reliable, complete and timely financial and management of corporate information; and compliance with applicable laws, regulations, and the organization’s policies and procedures.

The disqualification should also apply if (a) such person is the subject of an order of the SEC, BSP or any court or administrative body denying, revoking or suspending any registration, license or permit issued to him under the Revised Corporation Code of the Philippines, Securities Regulation Code or any other law administered by the SEC or BSP, or under any rule or regulation issued by the Commission or BSP; (b) such person has otherwise been restrained to engage in any activity involving securities and banking; or (c) such person is the subject of an effective order of a self-regulatory organization suspending or expelling him from membership, participation or association with a member or participant of the organization; c.

Enterprise Risk Management – a process, effected by an entity’s Board of Directors, Management and other personnel, applied in strategy setting and across the enterprise that is designed to identify potential events that may affect the entity, manage risks to be within its risk appetite, and provide reasonable assurance regarding the achievement of entity objectives.2

Recommendation 1.6 a.

The Board should ensure that it is assisted in its duties by a Compliance Officer, who should have a rank of Senior Vice President or an equivalent position with adequate stature and authority in the corporation. The Compliance Officer should not be a member of the Board of Directors and should annually attend a training on corporate governance.

Management – a group of executives given the authority by the Board of Directors/ Board of Trustees to implement the policies it has laid down in the conduct of the business of the corporation.

Explanation The Compliance Officer is a member of the company’s Management team in charge of the compliance function. Similar to the Corporate Secretary, he is primarily liable to the corporation and its shareholders/members, and not to the Chairperson or President of the company. He has, among others, the following duties and responsibilities:

Members – the members of non-stock corporations. Non-executive director – a director who has no executive responsibility and does not perform any work related to the day-to-day operations of the corporation. Non-Proprietary Right – an interest, participation or privilege over a specific property of a corporation that allows the holder to use such property under certain terms and conditions. The holder, however, shall not be entitled to dividends from the corporation or to its assets upon its liquidation. Proprietary Right – an interest, participation or privilege in a corporation which gives the holder the right to use the facilities and to receive dividends or earnings from the corporation. Upon the liquidation of the corporation, the holder shall have proportionate ownership rights over its assets. Public Company – a company with assets of at least Fifty Million Pesos (Php50,000,000.00) and having two hundred (200) or more shareholders holding at least one hundred (100) shares each of equity securities. Registered Issuer – a company that: (1) issues proprietary and/or non-proprietary shares/certificates; (2) issues equity securities to the public that are not listed in an Exchange; or (3) issues debt securities to the public that are required to be registered to the SEC, whether or not listed in an Exchange. Related parties - covers the covered entity’s directors, officers, substantial shareholders and their spouses and relatives within the fourth civil degree of consanguinity or affinity, legitimate or common-law, and other persons if these persons have control, joint control or significant influence over the covered entity. It also covers the covered entity’s parent, subsidiary, fellow subsidiary, associate, affiliate, joint venture or an entity that is controlled, jointly controlled or significantly influenced or managed by a person who is a related party.

Explanation Competence can be determined from the collective knowledge, experience and expertise of each director that is relevant to the industry/sector that the company is in. A Board with the necessary knowledge, experience and expertise can

The nomination and election process also includes the review and evaluation of the qualifications of all persons nominated to the Board, including whether candidates: (1) possess the knowledge, skills, experience, and particularly in the case of non-executive directors (NEDs), the independence of mind given their responsibilities to the Board and in light of the entity’s business and risk profile; (2) have a record of integrity and good repute; (3) have sufficient time to carry out their responsibilities; and (4) have the ability to promote a smooth interaction between board members. The process includes monitoring of the qualifications of the directors.

Explanation

Assists the Board and the Board committees in the conduct of their meetings (i.e. agenda setting, preparation of annual schedule of meetings and board calendar);

The Board should be composed of directors with a collective working knowledge, experience or expertise that is relevant to the company’s industry/sector. The Board should always ensure that it has an appropriate mix of competence and expertise and that its members remain qualified for their positions individually and collectively, to enable it to fulfill its roles and responsibilities and respond to the needs of the organization based on the evolving business environment and strategic direction.

It is the Board’s responsibility to develop a policy on board nomination and election. A formal and transparent nomination and election policy clearly provides for the procedures on how the Board accepts nominations and encourages shareholders’/ members’ participation.

The Board should ensure that it is assisted in its duties by a Corporate Secretary, who should be a separate individual from the Compliance Officer. The Corporate Secretary should not be a member of the Board of Directors and should annually attend a training on corporate governance.

Recommendation 1.1

Explanation

Recommendation 1.5

This Code does not, in any way, prescribe a “one size fits all” framework. It is designed to allow companies some flexibility in establishing their corporate governance practices. Larger companies would generally be expected to follow most of the Code’s provisions. Smaller companies may decide that the costs of some of the provisions outweigh the benefits, or are less relevant in their case. Hence, the Principle of Proportionality is considered in the application of the provisions of this Code.

The company should be headed by a competent, working board to foster the longterm success of the corporation, and to sustain its competitiveness and growth in a manner consistent with its corporate objectives and the long-term best interests of its shareholders/members and other stakeholders.

The Board should have a formal and transparent board nomination and election policy that should include how it accepts nominations from its shareholders/ members and reviews the qualifications of nominated candidates. The policy should also include an assessment of the effectiveness of the Board’s processes and procedures in the nomination, election, or replacement/removal of a director/ trustee. In addition, its process of identifying the quality of directors should be aligned with the strategic direction of the company.

A board diversity policy is not limited to gender diversity. It also includes diversity in age, ethnicity, culture, skills, competence and knowledge. On gender diversity policy, a good example is to increase the number of female directors, including female independent directors (IDs).

The Explanations strive to provide companies with additional information on the recommended best practice.

Principle

Recommendation 2.5

Having a board diversity policy is a move to avoid groupthink and ensure that optimal decision-making is achieved. Groupthink is a mode of thinking in which individual members of small cohesive groups tend to accept a viewpoint or conclusion that represents a perceived group consensus, whether or not the group members believe it to be valid, correct, or optimal. Groupthink reduces the efficiency of collective problem solving within such groups.3

The Recommendations are the objective criteria that are intended to identify the specific features of corporate governance good practices that are recommended for companies covered by this Code.

THE BOARD’S GOVERNANCE RESPONSIBILITIES

For employees in control functions (e.g., risk, compliance and internal audit), their remuneration is determined independently from any business line being overseen, and their performance measures are based principally on the achievement of their objectives.

Explanation

The Principles can be considered as high-level statements of corporate governance good practice and are applicable to all companies.

ESTABLISHING A COMPETENT BOARD

Key considerations in determining proper compensation include the following: (1) the level of remuneration is commensurate to the responsibilities of the role; (2) no director or trustee should participate in the determination of his own per diem or compensation; and (3) remuneration pay-out schedules should be sensitive to risk outcomes over a multi-year horizon.

The Board should have a policy on board diversity.

The Code is arranged as follows: Principles, Recommendations and Explanations.

Stakeholders – any individual, organization or society at large who can either affect and/or be affected by the company’s strategies, policies, business decisions and operations, in general. This includes, among others, non-proprietary certificate holders, customers, creditors, employees, suppliers, investors, as well as the government and the community in which the company operates.

Companies are able to attract and retain the services of qualified and competent individuals if the level of remuneration is sufficient, in line with the business and risk strategy, objectives, values and measures are incorporated to prevent conflicts of interest. Remuneration policies promote a sound risk culture and encourage employees to act in the long-term interest of the company as a whole, rather than for themselves or their business lines only. Moreover, it is good practice for the Board to formulate and adopt a policy specifying the relationship between remuneration and performance, which includes specific financial and non-financial metrics to measure performance.

Recommendation 1.4

The Code will adopt the “comply or explain” approach. This approach combines voluntary compliance with mandatory disclosure. Companies do not have to comply with the Code, but they must state in their annual corporate governance reports whether they comply with the Code provisions, identify any areas of noncompliance, and explain the reasons for non-compliance.

Significant Influence - The power to participate in the financial and operating policy decisions of the company but has no control or joint control of those policies.

Explanation

It is suggested that the orientation program for first-time directors, in any company, be for at least eight (8) hours, while the annual continuing training be for at least four (4) hours.

The Code of Corporate Governance for Public Companies and Registered Issuers is the next in the series of Corporate Governance Codes for different types of corporations under the supervision of the Securities and Exchange Commission. It is rooted in the same Corporate Governance principles provided in the Code of Corporate Governance for Publicly-Listed Companies with the same intention of raising the corporate governance standards of Philippine corporations consistent with the G20/OECD1 Principles of Corporate Governance and other internationally recognized corporate governance principles.

Related Party Transactions – a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. It should be interpreted broadly to include not only transactions that are entered into with related parties, but also outstanding transactions that are entered into with an unrelated party that subsequently becomes a related party.

The Board should align the remuneration of key officers and board members with the long-term interests of the company/organization. In doing so, it should formulate and adopt a policy specifying the relationship between remuneration and performance. In this regard, no director or trustee should participate in the determination of his own per diem or compensation.

The annual continuing training program, on the other hand, makes certain that the directors are continuously informed of the developments in the business and regulatory environments, including emerging risks relevant to the company. The training can be on any matter relevant to the company, which could include training on audit, internal controls, risk management, sustainability and strategy. It is encouraged that companies assess their own training and development needs in determining the coverage of their continuing training program. For corporate governance trainings, the trainings can be conducted by SEC Accredited Institutional Training Providers.

For the Commission:

Recommendation 2.4

The orientation program ensures that new members are appropriately apprised of their duties and responsibilities, before beginning their directorships, and throughout their tenure. The orientation program covers SEC-mandated topics on corporate governance and includes an introduction to the company’s business, Articles of Incorporation and By-laws, and Code of Business Conduct and Ethics.

Pasay City Philippines,19 December 2019.

Guarantees that the Board receives accurate, timely, relevant, insightful, concise, and clear information to enable it to make sound decisions;

The orientation program for first-time directors and relevant annual continuing training for all directors aim to promote effective board performance and continuing qualification of the directors in carrying out their duties and responsibilities.

This Memorandum Circular shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation in the Philippines.

Explanation

(4) Notwithstanding the issuance of the CG Code for PCs and Rls, public companies and registered issuers shall submit a Compliance Officer Certification on the extent of the company’s compliance with Revised Code of Corporate Governance and Corporate Secretary Certification on record of attendance in board meetings for the covered year 2019 on or before 30 January 2020.

Makes certain that the meeting’s agenda focuses on strategic matters, including the overall risk appetite of the corporation, taking into account the developments in the business and regulatory environments, key governance concerns, and contentious issues that will significantly affect operations;

The Company should have a policy on the training of directors, including an orientation program for first-time directors and relevant annual continuing training for all directors.

(3) All public companies and registered Issuers shall submit a new Manual on Corporate Governance within six (6) months from the effectivity of this Memorandum Circular.

The smooth and efficient transition of company leadership to highly competent and qualified individuals is the goal of succession planning. It is the Board’s responsibility to implement a process of appointing competent, professional, honest and highly motivated Management officers who can add value to the company. A good succession plan is linked to the documented roles and responsibilities for each position, and should start in objectively identifying the key knowledge, skills, and abilities required for the position.

Recommendation 1.3

(2) All other relevant Memorandum Circulars on corporate governance shall remain in force and effect until further notice.

Explanation

Ensures proper onboarding of new directors (i.e., orientation on the company’s business, charter, articles of incorporation and by-laws, among others);

Monitors, reviews, evaluates and ensures the compliance by the corporation, its officers and directors with the relevant laws, this Code, rules and regulations and all governance issuances of regulatory agencies;

Reports to the Board if violations are found and recommends the imposition of appropriate disciplinary action;

Ensures the integrity and accuracy of all documentary and electronic submissions as may be allowed under SEC rules and regulations;

Appears before the SEC when summoned in relation to compliance with this Code and other relevant rules and regulations;

Collaborates with other departments within the company to properly address compliance issues, which may be subject to investigation;

Identifies possible areas of compliance issues and works towards the resolution of the same;

Ensures the attendance of board members and key officers to relevant trainings; and

Recommendation 2.6 The Board should have the overall responsibility in ensuring that there is a policy and system governing related party transactions (RPTs) and other unusual or infrequently occurring transactions, particularly those which pass certain thresholds of materiality. The policy should include the appropriate review and approval of material RPTs, which guarantee fairness and transparency of the transactions. Explanation Ensuring the integrity of related party transactions (RPTs) is an important fiduciary duty of the director. It is the Board’s role to initiate policies and measures geared towards promotion of transparency, prevention of abuse, and protection of the interest of all shareholders/members. One such measure is requiring material RPTs to be approved by at least two-thirds (2/3) of the Board, with majority of the independent directors approving the transaction, in accordance with the provisions of the Revised Corporation Code of the Philippines, SEC issuances and other related laws. Other measures include ensuring that transactions occur at market prices, at arm’s-length basis and under conditions that protect the rights of all shareholders/members. The following are suggestions for the content of the RPT Policy:

i. Performs such other duties and responsibilities as may be provided by the Board and SEC. 2.

ESTABLISHING CLEAR ROLES AND RESPONSIBILITIES OF THE BOARD

• • • •

Principle

•

The fiduciary roles, responsibilities and accountabilities of the Board as provided under the law, the company’s articles of incorporation and by-laws, and other legal pronouncements and guidelines should be clearly made known to all directors as well as to shareholders/members and other stakeholders.

• • • • •

Recommendation 2.1

In addition, the company is given the discretion to set their materiality threshold at a level where omission or misstatement of the transaction could pose a significant risk to the company and influence its economic decision. The SEC may direct a company to reduce its materiality threshold or amend excluded transactions if the SEC deems that the threshold or exclusion is inappropriate considering the company’s size, risk profile, and risk management systems.

The Board members should act on a fully informed basis, in good faith, with due diligence and care, and in the best interest of the company and all shareholders/ members and all other stakeholders. Explanation There are two key elements of the fiduciary duty of board members: the duty of care and the duty of loyalty. The duty of care requires board members to act on a fully informed basis, in good faith, and with due diligence and care. The duty of loyalty is also of central importance; the board member should act in the interest of the company and all its shareholders/members, and not those of the controlling group or any other stakeholder. The fiduciary duty of the board is to promote the value of the corporation. The board must exercise their business judgment in considering and reconciling the interests of various stakeholders – including shareholders.

Depending on the materiality threshold, approval of Management, the Board or the shareholders may be required. In cases where the Board and/or shareholders’/ members’ approval is required, it is good practice for interested directors and/or shareholders/members, respectively, to abstain and let the disinterested parties decide. Recommendation 2.7 The Board should be primarily responsible for approving the selection and assessing the performance of the Management led by the Chief Executive Officer (CEO) or his equivalent, and control functions led by their respective heads (Chief Risk Officer, Chief Compliance Officer, and Chief Audit Executive, as may be applicable).

Recommendation 2.2 The Board should oversee the development of and approve the company’s business and strategy, and monitor its implementation, in order to sustain the company’s long-term viability and strength. Explanation Sound strategic policies and objectives translate to the company’s proper identification and prioritization of its goals and guidance on how best to achieve them. This creates optimal value to the corporation.

Identification of related parties; Coverage of RPT policy; Guidelines in ensuring arm’s-length terms; Identification and prevention or management of potential or actual conflicts of interest which may arise; Adoption of materiality thresholds, as well as internal limits for individual and aggregate exposures; Approval of material RPTs based on the company’s materiality threshold; Disclosure requirement of material RPTs; Self-assessment and periodic review of policy; Whistle-blowing mechanisms; and Restitution of losses and other remedies for abusive RPTs.

___________________________________ 1 2 3

Organisation for Economic Co-operation and Development Committee of Sponsoring Organizations of the Treadway Commission (COSO Framework). Schmidt, Anna (2016), Encyclopædia Britannica, Inc. Groupthink. Retrieved from Encyclopædia Britannica Website, https://www.britannica.com/science/groupthink, last accessed 27 August 2019

Manila

SATURDAY, DECEMBER 28, 2019 Standard TODAY Explanation

Recommendation 2.8 The Board should establish an effective performance evaluation framework, which includes the standard or criteria for assessment, that will ensure that the Management, including the Chief Executive Officer or his equivalent, and personnel’s performance is at par with the standards set by the Board and Senior Management. Explanation

Results of performance evaluation is oftentimes linked to other human resource activities such as training and development, remuneration, and succession planning. These form part of the assessment of the continuing qualification, fitness, and propriety of the Management, and personnel in carrying out their respective duties and responsibilities.

Recommendation 2.10 The Board should oversee that a sound Enterprise Risk Management framework is in place to effectively identify, monitor, assess and manage key business risks. The risk management framework should guide the Board in identifying units/ business lines and enterprise-level risk exposures, as well as the effectiveness of risk management strategies. Explanation Risk management policy is part and parcel of a corporation’s business strategy. The Board is responsible for defining the company’s level of risk tolerance and providing oversight over its risk management policies and procedures. Recommendation 2.11 The Board should have a Board Charter that formalizes and clearly states its roles, responsibilities and accountabilities in carrying out its fiduciary duties. The Board Charter should serve as a guide to the directors in the performance of their functions and should be made publicly available. Explanation The Board Charter guides the directors on how to discharge their functions. It provides the standards for evaluating the performance of the Board. The Board Charter also contains the roles and responsibilities of the Chairperson.

Principle

Oversees the implementation of the corporate governance framework and periodically reviews the said framework to ensure that it remains appropriate in light of material changes to the corporation’s size, complexity of operations and business strategy, as well as its business and regulatory environments;

Oversees the periodic performance evaluation of the Board and its committees as well as the executive management, and conducts an annual evaluation of the said performance;

Ensures that the results of the Board evaluation are discussed, and that concrete action plans are developed and implemented to address the identified areas for improvement;

Is not, or has not been a senior officer or employee of the covered company unless there has been a change in the controlling ownership of the company;

Is not, and has not been in the two (2) years immediately preceding the election, a director of the covered company; a director, officer, employee of the covered company’s subsidiaries, associates, affiliates or related companies; or a director, officer, employee of the covered company’s substantial shareholders and its related companies;

Recommends the continuing education/training programs for directors, assignment of tasks/projects to board committees, succession plan for the board members and senior officers, and remuneration packages for corporate and individual performance;

Has not been appointed in the covered company, its subsidiaries, associates, affiliates or related companies as Chairperson “Emeritus,” “Ex-Officio” Directors/Officers or Members of any Advisory Board, or otherwise appointed in a capacity to assist the Board in the performance of its duties and responsibilities within two (2)years immediately preceding his election;

Adopts corporate governance policies and ensures that these are reviewed and updated regularly, and consistently implemented in form and substance;

Is not an owner of more than two percent (2%) of the outstanding shares of the covered company, its subsidiaries, associates, affiliates or related companies;

Proposes and plans relevant trainings for the members of the Board;

Determines the nomination and election process for the company’s directors and defines the general profile of board members that the company may need, and ensures that appropriate knowledge, competencies and expertise that complement the existing skills of the Board are adopted as standards and criteria for nomination and election; and

Is not a relative of a director, officer, or substantial shareholder of the covered company or any of its related companies or of any of its substantial shareholders. For this purpose, relatives include spouse, parent, child, brother, sister and the spouse of such child, brother or sister;

Is not acting as a nominee or representative of any director of the covered company or any of its related companies;

Establishes a formal and transparent procedure for determining the remuneration of directors and officers that is consistent with the corporation’s culture and business strategy as well as the business environment in which it operates.

Is not a securities broker-dealer of listed companies and registered issuers of securities. “Securities broker-dealer” refers to any person holding any office of trust and responsibility in a broker-dealer firm, which includes, among others, a director, officer, principal shareholder, nominee of the firm to the Exchange, an associated person or salesman, and an authorized clerk of the broker or dealer; Is not retained, either in his personal capacity or through a firm, as a professional adviser, auditor, consultant, agent or counsel of the covered company, any of its related companies or substantial shareholder, or is otherwise independent of Management and free from any business or other relationship within the two (2) years immediately preceding the date of his election;

Develops a formal ERM plan which contains the following elements: (a) common language or register of risks, (b) well-defined risk management goals and objectives, (c) uniform processes of assessing risks and developing strategies to manage prioritized risks, (d) designing and implementing risk management strategies, and (e) continuing assessments to improve risk strategies, processes and measures;

Oversees the implementation of the ERM plan through a Management Risk Oversight Committee. The BROC conducts regular discussions on the company’s prioritized and residual risk exposures based on regular risk management reports and assesses how the concerned units or offices are addressing and managing these risks;

Evaluates the risk management plan to ensure its continued relevance, comprehensiveness and effectiveness. The BROC revisits defined risk management strategies, looks for emerging or changing material exposures, and keeps abreast of significant developments that seriously impact the likelihood of harm or loss;

Advises the Board on its risk appetite levels and risk tolerance limits;

Reviews at least annually the company’s risk appetite levels and risk tolerance limits based on changes and developments in the business, the regulatory framework, the external economic and business environment, and major events which may have occurred in the company;

Explanation The Audit Committee is responsible for overseeing the Senior Management in establishing and maintaining an adequate, effective and efficient internal control framework. It ensures that systems and processes are designed to provide assurance in areas including reporting, monitoring compliance with laws, regulations and internal policies, efficiency and effectiveness of operations, and safeguarding of assets. The Audit Committee has the following duties and responsibilities, among others:

Through the IA Department, monitors and evaluates the adequacy and effectiveness of the corporation’s internal control system, integrity of financial reporting, and security of physical and information assets. Well-designed internal control procedures and processes that will provide a system of checks and balances should be in place in order to: (a) safeguard the company’s resources and ensure their effective utilization, (b) prevent occurrence of fraud and other irregularities, (c) protect the accuracy and reliability of the company’s financial data, and (d) ensure compliance with applicable laws and regulations;

Reviews the recommendations in the External Auditor’s management letter;

Performs oversight functions over the corporation’s Internal and External Auditors and ensures their independence and unrestricted access to all records, properties and personnel to enable them to perform their respective audit functions taking into consideration relevant Philippine professional and regulatory requirements; Coordinates, monitors and facilitates compliance with laws, rules and regulations;

To show full commitment to the company, the directors should devote the time and attention necessary to properly and effectively perform their duties and responsibilities, including sufficient time to be familiar with the corporation’s business. Recommendation 4.1 The directors should attend and actively participate in all meetings of the Board, Committees, and shareholders/members in person or through tele-/ videoconferencing conducted in accordance with the rules and regulations of the Commission, except when justifiable causes, such as, illness, death in the immediate family and serious accidents, prevent them from doing so. In Board and Committee meetings, the directors should review meeting materials and if called for, ask the necessary questions or seek clarifications and explanations. A director’s commitment to the company is evident in the amount of time he dedicates to performing his duties and responsibilities, which includes his presence in all meetings of the Board, Committees and shareholders/members. In this way, the director is able to effectively perform his duty to the company and its shareholders/members.

2. 3. 4. 5.

Serves as an intermediary between the Chairperson and the other directors when necessary; b. Convenes and chairs meetings of the NEDs; and c. Contributes to the performance evaluation of the Chairperson, as required. Recommendation 5.7 a.

Recommendation 4.2 The non-executive directors of the Board should not concurrently serve as directors to more than ten (10) public companies and/or registered issuers. However, the maximum concurrent directorships shall be five (5) public companies and/or registered issuers if the director also sits in at least three (3) publicly-listed companies.

A director with a material or potential interest in any transaction affecting the corporation should fully disclose his adverse interest, abstain from taking part in the deliberations for the same and recuse from voting on the approval of the transaction. Explanation

Being a director necessitates a commitment to the corporation. Hence, there is a need to set a limit on board directorships. This ensures that the members of the board are able to sufficiently prepare for meetings, effectively commit themselves to perform their roles and responsibilities, and regularly update their knowledge and enhance their skills. A maximum number of board directorships is recommended since sitting on the board of too many companies may interfere with the optimal performance of board members, in that they may not be able to contribute enough time to keep abreast of the corporation’s operations and to attend and actively participate during meetings.

The abstention of a director from participating in a meeting when related party transactions, self-dealings or any transactions or matters on which he has a material interest are taken up ensures that he has no influence over the outcome of the deliberations. The fundamental principle to be observed is that a director does not use his position to profit or gain some benefit or advantage for himself and/or his related interests. Recommendation 5.8 The non-executive directors should have separate periodic meetings with the external auditor and heads of the internal audit, compliance and risk functions, without any executive directors present to ensure that proper checks and balances are in place within the corporation. The meetings should be chaired by the lead independent director, if applicable.

A director should notify the Board where he is an incumbent director before accepting a directorship in another company. Explanation

Explanation The non-executive directors (NEDs) are expected to constructively scrutinize the Management’s performance, particularly in meeting the company’s goals and objectives. Further, it is their role to satisfy themselves on the integrity of the corporation’s internal control and effectiveness of the risk management systems. This role can be better performed by the NEDs if they are provided access to the external auditor and heads of the IA, compliance and risk functions, as well as to other key officers of the company without any executive directors present. If the company has a lead independent director, he should lead and preside over the meeting.

The Board expects a director to devote sufficient time and attention to his duties and responsibilities. Hence, it is important that a director notifies his incumbent Board before accepting a directorship in another company. This is for the company to be able to assess if his present responsibilities and commitment to the company will be affected and if the director can still adequately provide what is expected of him.

In case of the absence of an RPT Committee:

The functions of the lead director include, among others, the following:

The absence of a director in more than fifty percent (50%) of all regular and special meetings of the Board during his incumbency is a ground for disqualification in the succeeding election, unless the absence is due to illness, death in the immediate family, serious accident or other unforeseen or fortuitous events.

Recommendation 4.3

Determines any potential reputational risk issues that may arise as a result of or in connection with RPTs. In evaluating RPTs, the Committee takes into account, among others, the following: The related party’s relationship to the company and interest in the transaction; The material facts of the proposed RPT, including the proposed aggregate value of such transaction; The benefits to the corporation of the proposed RPT; The availability of other sources of comparable products or services; and An assessment of whether the proposed RPT is undertaken on terms and conditions that are comparable to the terms generally available to an unrelated party under similar circumstances. The company should have an effective price discovery system in place and exercise due diligence in determining a fair price for RPTs.

The Board should designate a lead director among the independent directors if the Chairperson of the Board is not independent, including if the positions of the Chairperson of the Board and Chief Executive Officer or its equivalent are held by one person. Explanation In cases where the Chairperson is not independent and where the roles of Chair and CEO are combined, putting in place proper mechanisms ensures independent views and perspectives. More importantly,it prevents abuse of power and authority, and potential and/or actual conflict of interest. A suggested mechanism is the appointment of a strong “lead director” among the independent directors. This lead director has sufficient authority to lead the Board in cases where management has clear conflicts of interest.

Explanation

In case of the absence of a Related Party Transactions (RPTs) Committee, evaluates all RPTs to ensure that these are not undertaken on more favorable economic terms (e.g., price, commissions, interest rates, fees, tenor, collateral requirement) to such related parties than similar transactions with non-related parties under similar circumstances and that no corporate or business resources of the company are misappropriated or misapplied;

•

The CEO has the following roles and responsibilities, among others: a. Implements the corporation’s strategic plan on the direction of the business; b. Communicates and implements the corporation’s vision, mission, values and overall strategy as formulated by the board and promotes any organization or stakeholder change in accordance with the same; c. Oversees the operations of the corporation and manages human and financial resources in accordance with the strategic plan; d. Has a good working knowledge of the corporation’s industry and market and keeps up-to-date with its core business purpose; e. Directs, evaluates and guides the work of the key officers of the corporation; f. Manages the corporation’s resources prudently and ensures a proper balance of the same; g. Provides the Board with timely information and interfaces between the Board and the employees; h. Builds the corporate culture and motivates the employees of the corporation; and i. Serves as the link between internal operations and external stakeholders. The roles and responsibilities of the Chairperson are provided under Recommendation 1.2. Recommendation 5.6

FOSTERING COMMITMENT

To avoid conflict or a split board and to foster an appropriate balance of power, increased accountability and better capacity for independent decision-making, it is recommended that the positions of Chairperson and Chief Executive Officer (CEO) be held by different individuals. This type of organizational structure facilitates effective decision making and good governance. In addition, the division of responsibilities and accountabilities between the Chairperson and CEO is clearly defined and delineated and disclosed in the Board Charter.

Oversees the Management’s activities in managing credit, market, liquidity, operational, legal and other risk exposures of the corporation. This function includes regularly receiving information on risk exposures and risk management activities from Management; and Reports to the Board on a regular basis, or as deemed necessary, the company’s material risk exposures, the actions taken to reduce the risks, and recommends further action or plans, as necessary.

Explanation

REINFORCING BOARD INDEPENDENCE Principle The Board should endeavor to exercise an objective and independent judgment on all corporate affairs. Recommendation 5.1 The Board should be composed of a majority of non-executive directors who possess the necessary qualifications to effectively participate and help secure objective, independent judgment on corporate affairs and to carry out proper checks and balances.

Is not employed as an executive officer of another company where any of the covered company’s executives serve as directors.

The positions of Chairperson of the Board and Chief Executive Officer or its equivalent position,should be held by separate individuals and each should have clearly defined responsibilities. Explanation

Assesses the probability of each identified risk becoming a reality and estimates its possible significant financial impact and likelihood of occurrence. Priority areas of concern are those risks that are the most likely to occur and to impact the performance and stability of the corporation and its stakeholders;

Recommends to the Board the appointment, reappointment, removal and fees of the External Auditor, duly accredited by the Commission, who undertakes an independent audit of the corporation, and provides an objective assurance on the manner by which the financial statements should be prepared and presented to the shareholders; m. Evaluates on an ongoing basis existing relations between and among businesses and counterparties to ensure that all related parties are continuously identified, RPTs are monitored, the Related Party Registry is updated to capture subsequent changes in relationships with counterparties (from non-related to related and vice versa);

Service in a board for a long duration may impair a director’s ability to act independently and objectively. Hence, the tenure of an Independent Director (ID) is set to a cumulative term of nine (9) years.The IDs who have served for nine (9) years may continue as a non-independent director of the company. Reckoning of the cumulative nine-year term is from 2012. Any term beyond nine (9) years for an ID is subjected to particularly rigorous review, taking into account the need for progressive change in the Board to ensure an appropriate balance of skills and experience. However, the shareholders/ members may, in exceptional cases, choose to re-elect an ID who has served for nine (9) years. In such instances, the Board must provide a meritorious justification for the re-election and seek shareholders’/members’ approval during the annual shareholders’/members’ meeting. Recommendation 5.5

Principle

Is not affiliated with any non-profit organization that receives significant funding from the covered company or any of its related companies or substantial shareholders; and

Explanation

The Committee Charter clearly defines the roles, accountabilities,powers and authority of each committee to avoid any overlapping functions, which aims at having a more effective board for the company. This can also be used as basis for the assessment of committee performance.

Any change/s in accounting policies and practices Areas where a significant amount of judgment has been exercised Significant adjustments resulting from the audit Going concern assumptions Compliance with accounting standards Compliance with tax, legal and regulatory requirements

The Board’s independent directors should serve for a maximum cumulative term of nine (9) years. After which, the independent director should be perpetually barred from re-election as such in the same company, but may continue to qualify for nomination and election as a non-independent director. In the instance that a company wants to retain an independent director who has served for nine (9) years, the Board should provide meritorious justification/s and seek shareholders’/ members’ approval during the annual shareholders’/members’ meeting.

Explanation

Reviews and approves the Interim and Annual Financial Statements before their submission to the Board, with particular focus on the following matters:

Does not engage or has not engaged, whether by himself or with other persons or through a firm of which he is a partner, director or substantial shareholder, in any transaction with the covered company or any of its related companies or substantial shareholders, other than such transactions that are conducted at arm’s length and could not materially interfere with or influence the exercise of his independent judgment within the two (2) years immediately preceding the date of his election;

Recommendation 5.4

All established committees should have Committee Charters stating in plain terms their respective purposes, memberships, structures, operations, reporting processes, resources and other relevant information. The Charters should provide the standards for evaluating the performance of the Committees and its members.

Related companies, as used in this section, refer to (a) the covered entity’s holding/parent company; (b) its subsidiaries; and (c) subsidiaries of its holding/ parent company.

Recommendation 3.5

Oversees the IA Department, and recommends the appointment and removal of an IA head as well as his qualifications, and grounds for appointment and removal. The Audit Committee should also approve the terms and conditions for outsourcing internal audit services, if applicable;

Recommends the approval of the Internal Audit (IA) Charter, which formally defines the responsibilities, powers and authority of the IA Department, the audit plan of the IA Department, as well as oversees the implementation of the IA Charter;

• • • • • •

The BROC has the following duties and responsibilities, among others:

The Board should establish an Audit Committee to enhance its oversight capability over the company’s financial reporting, internal control system, internal and external audit processes, and compliance with applicable laws and regulations. The committee should be composed of at least three (3) appropriately qualified non-executive directors, the majority of whom, including the Chairperson, should be independent directors. All of the members of the committee must have relevant background, knowledge, skills, and/or experience in the areas of accounting, auditing and finance. The Chairperson of the Audit Committee should not be the Chairperson of the Board or of any other committees.

Evaluates and determines the non-audit work, if any, of the External Auditor, and periodically reviews the non-audit fees paid to the External Auditor in relation to the total fees paid and the corporation’s overall consultancy expenses. The Audit Committee should disallow any non-audit work that will conflict with the duties of an External Auditor or may pose a threat to his independence . The non-audit work, if allowed, should be disclosed in the corporation’s Annual Report and Annual Corporate Governance Report;

An ID refers to a person who, ideally: a.

Recommendation 3.2

The independent directors (IDs) need to possess a good general understanding of the industry that the company engages in. Further, it is worthy to note that independence and competence should go hand-in-hand. It is therefore important that the non-executive directors, including IDs, possess the qualifications and stature that would enable them to effectively and objectively participate in the deliberations of the Board.

Enterprise Risk Management (ERM) is integral to an effective corporate governance process and the achievement of a company’s value creation objectives. Thus, the BROC has the responsibility to assist the Board in ensuring that there is an effective and integrated risk management process in place. With an integrated approach, the Board and top management will be in a position to make well-informed decisions, having taken into consideration risks related to significant business activities, plans and opportunities.

Board committees such as the Audit Committee, Corporate Governance Committee, and Board Risk Oversight Committee are necessary to support the Board in the effective performance of its functions. The establishment of the same, or any other committees that the company deems necessary, allows for concentration of focus in specific issues and leads to a better management of the Board’s workload. The type of board committees to be established by a company would depend on its size, risk profile, nature and complexity of operations. However, if the committees are not established, the functions of these committees may be carried out by the whole board or by any other committee.

Prior to the commencement of the audit, discusses with the External Auditor the nature, scope and expenses of the audit, and ensures the proper coordination if more than one audit firm is involved in the activity to identify proper coverage and minimize duplication of efforts;

Explanation

The establishment of a Board Risk Oversight Committee (BROC) is particularly recommended for issuers of debt securities and for companies with a high risk profile.

Explanation

The Board should ensure that its independent directors possess the necessary qualifications and none of the disqualifications for an independent director to hold the position.

Explanation

The Board should establish board committees that focus on specific board functions to aid in the optimal performance of its roles and responsibilities. The Board committees should be composed only of board members.

Monitors the Management’s responsiveness to the Internal Auditor’s findings and recommendations;

Recommendation 5.3

Subject to a corporation’s size, risk profile, nature and complexity of operations, the Board should establish a separate Board Risk Oversight Committee (BROC) that should be responsible for the oversight of a company’s Enterprise Risk Management System to ensure its functionality and effectiveness. The BROC should be composed of at least three (3) directors, the majority of whom should be independent directors, including the Chairperson. At least one member of the committee must have relevant thorough knowledge and experience on risk and risk management.

Recommendation 3.1

The presence of independent directors (IDs) in the Board ensures the exercise of independent judgment on corporate affairs and proper oversight of managerial performance, including prevention of conflict of interests and balancing of competing demands of the corporation. There is increasing global recognition that more IDs in the Board lead to more objective decision-making, particularly in conflict of interest situations. In addition, experts have recognized that there are varying opinions on the optimal number of IDs in the board. However, the ideal number ranges from one-third to a substantial majority.

Recommendation 3.4

Board committees should be set up to the extent possible to support the effective performance of the Board’s functions, particularly with respect to audit, risk management, compliance and other key corporate governance concerns, such as nomination and remuneration. The composition, functions and responsibilities of all the board committees should be contained in their respective board committee charters.

Establishes and identifies the reporting line of the Internal Auditor to enable him to properly fulfill his duties and responsibilities. For this purpose, he should directly report to the Audit Committee;

Explanation

The establishment of a Corporate Governance Committee does not preclude companies from establishing separate Remuneration or Nomination Committees, if they deem desirable or necessary.

ESTABLISHING BOARD COMMITTEES

The Board should have at least two (2)independent directors, or such number as to constitute at least one-third of the members of the Board, whichever is higher.

The Corporate Governance Committee (CG Committee) is tasked with ensuring compliance with and proper observance of corporate governance principles and practices. It has the following duties and functions, among others:

In the performance of the Board’s oversight responsibility, the minimum internal control mechanisms include overseeing the implementation of the key control functions, such asrisk management, compliance and internal audit, and reviewing the corporation’s human resource policies, conflict of interest situations, compensation program for employees and Management succession plan.

Recommendation 5.2

Explanation

The right combination of non-executive directors (NEDs), which include independent directors, and executive directors, ensures that no director or small group of directors can dominate the decision-making process. Further, a board composed of a majority of NEDs assures protection of the company’s interest over the interest of the individual shareholders.

The Board should establish a Corporate Governance Committee tasked to assist the Board in the performance of its corporate governance responsibilities, including the functions that were formerly assigned to the Nomination and Remuneration Committee. It should be composed of at least three (3) directors, majority of whom should be independent directors, including the Chairperson.

The Board should oversee that an appropriate internal control system is in place, including setting up a mechanism for monitoring and managing potential/actual conflicts of interest of board members, management, and shareholders/members. The Board should also adopt an Internal Audit Charter.

Ensures that appropriate disclosure is made, and/or information is provided to regulating and supervising authorities relating to the company’s RPT exposures, and policies on potential and/or actual conflicts of interest. The disclosure should include information on the approach to managing material conflicts of interest that are inconsistent with such policies, and conflicts that could arise as a result of the company’s affiliation or transactions with other related parties; • Reports to the Board of Directors on a regular basis, the status and aggregate exposures to each related party, as well as the total amount of exposures to all related parties; • Ensures that transactions with related parties, including write-off of exposures are subject to a periodic independent review or audit process; • Oversees the implementation of the system for identifying, monitoring, measuring, controlling, and reporting RPTs, including a periodic review of RPT policies and procedures; and Performs the functions of the Board Risk Oversight Committee, as provided under Recommendations 3.4, in the absence thereof. Meets internally and with the Board at least once every quarter without the presence of the CEO or other Management team members, and periodically meets with the head of the IA.

Recommendation 3.3

Recommendation 2.9

Explanation

•

It is the responsibility of the Board to appoint a competent Management team at all times, monitor and assess the performance of the Management team based on established performance standards that are consistent with the company’s strategic objectives, and conduct a regular review of the company’s policies with the management team. In the selection process, fit and proper standards are to be applied on key personnel and due consideration is given to integrity, technical expertise and experience in the company’s business, either current or planned.

ASSESSING BOARD PERFORMANCE Principle The best measure of the Board’s effectiveness is through an assessment process. The Board should regularly carry out evaluations to appraise its performance as a body, and assess whether it possesses the right mix of backgrounds and competencies.

________________________________________ 4 As defined under the Code of Ethics for Professional Accountants.

Standard SATURDAY, DECEMBER 28, 2019 C4 TODAY Manila

Recommendation 9.2

Recommendation 6.1 The Board should conduct an annual self-assessment of its performance, including the performance of the Chairperson, individual members and committees.

The Audit Committee Charter should include the Audit Committee’s responsibility on assessing the integrity and independence of external auditors and exercising effective oversight to review and monitor the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant Philippine professional and regulatory requirements. The Charter should also contain the Audit Committee’s responsibility on reviewing and monitoring the external auditor’s suitability and effectiveness on an annual basis.

Explanation Board assessment helps the directors to thoroughly review their performance and understand their roles and responsibilities. The periodic review and assessment of the Board’s performance as a body, the board committees, the individual directors, and the Chairperson show how the aforementioned should perform their responsibilities effectively. In addition, it provides a means to assess a director’s attendance at board and committee meetings, participation in boardroom discussions and manner of voting on material issues.

The Audit Committee Charter includes a disclosure of its responsibility on assessing the integrity and independence of the external auditor. It establishes detailed guidelines, policies and procedures that may be contained in a separate memorandum or document. Nationally and internationally recognized best practices and standards of external auditing should guide the committee in formulating these policies and procedures.

The Board should have in place a system that provides, at the minimum,criteria and process to determine the performance of the Board, the individual directors, committees and such system should allow for a feedback mechanism from the shareholders/members.

Moreover, establishing effective communication with the external auditor and requiring them to report all relevant matters aidthe Audit Committee in efficiently carrying out its oversight responsibilities.

Explanation

The company should disclose the nature of non-audit services performed by its external auditor in the Annual Report in the interest of managing potential conflict of interest cases. The Audit Committee should be alert for any potential conflict of interest situations, given the guidelines or policies on non-audit services, which could be viewed as impairing the external auditor’s objectivity

Allowing the same auditor to perform non-audit services to the company may create a potential conflict of interest. In order to mitigate the risk of possible conflict between the auditor and the company, the company’sAudit Committee puts in place robust policies and procedures designed to promote auditor independence in the long run. In formulating these policies and procedures, the committee is guided by nationally and internationally-recognized best practices and regulatory requirements or issuances.

Recommendation 7.1

Principle 10 The Board should ensure that the company discloses material and reportable nonfinancial and sustainability issues. The company should have a clear and focused strategy on the disclosure of nonfinancial information. It should disclose to all shareholders/members and other stakeholders the company’s strategic (long-term goals) and operational objectives (short-term goals) as well as impacts of a wide range of sustainability issues, with emphasis on the management of environmental, economic, social and governance (EESG) issues of its business which underpin sustainability

Explanation

Explanation As external pressures including resource scarcity, globalization, and access to information continue to increase, the way corporations respond to sustainability challenges, in addition to financial challenges, determines their long-term viability and competitiveness. One way to respond to sustainability challenges is disclosure to all shareholders/members and other stakeholders of the company’s strategic (long-term goals) and operational objectives (short-term goals) as well as the impacts of a wide range of sustainability issues.

DISCLOSURE AND TRANSPARENCY 8.

ENHANCING COMPANY DISCLOSURE POLICIES AND PROCEDURES Principle 8 The Board should establish corporate disclosure policies and procedures that are practical and in accordance with generally accepted best practices and regulatory expectations. Recommendation 8.1 The Board should establish corporate disclosure policies and procedures to ensure a comprehensive, accurate, reliable and timely report to shareholders/members and other stakeholders that gives a fair and complete picture of a company’s financial condition, results and business operations.

11. PROMOTING A COMPREHENSIVE AND COST-EFFICIENT ACCESS TO RELEVANT INFORMATION Principle 11

The manner of disseminating relevant information to its intended users is as important as the content of information itself. Hence, it is essential for the company to have a strategic and well-organized channel for reporting. A company website that is easily accessible and user-friendly with a dedicated section for corporate governance is considered a practical and cost-efficient way of communication. It can provide timely and up-to-date information relevant to investors and other interested stakeholders. The company website should contain, among others, the Manual on Corporate Governance, Annual Corporate Governance Report, Board Charter, Committee Charters, the company’s Code of Business Conductand Ethics.

Recommendation 8.2

Explanation Directors and officers often have access to material inside information on the company. Hence, to reduce the risk that the directors might take advantage of this information, it is crucial for companies to have a policy requiring directors and officers to timely disclose to the company any dealings with the company shares. It is emphasized that the policy is on internal disclosure to the company of any dealings by the director or officer in company shares. This supplements the requirement of Rules 18 and 23 of the Securities Regulation Code. Recommendation 8.3

INTERNAL CONTROL AND RISK MANAGEMENT FRAMEWORKS 12. STRENGTHENING INTERNAL CONTROL AND RISK MANAGEMENT SYSTEMS Principle To ensure the integrity, transparency and proper governance in the conduct of its affairs, the company should have a strong and effective internal control system and enterprise risk management system. Recommendation 12.1 The Company should have an adequate and effective internal control system and an Enterprise Risk Management framework in the conduct of its business, taking into account its size, risk profile, nature and complexity of operations. Explanation An adequate and effective internal control system and an Enterprise Risk Management (ERM) framework help sustain safe and sound operations as well as implement management policies to attain corporate goals. An effective internal control system embodies the Management’s oversight and control culture, risk recognition and assessment, control activities, information and communication, monitoring activities and correcting deficiencies. An effective ERM framework typically includes activities such as, identification, sourcing, measurement, evaluation, mitigation and monitoring of risk.

The company’s corporate governance policies, programs and procedures should be contained in its Manual on Corporate Governance, which should be submitted to the Commission and posted on the company’s website. Explanation Transparency is one of the core principles of corporate governance. To ensure better protection of shareholders and other stakeholders’ rights, the full disclosure of the company’s corporate governance policies, programs and procedures is imperative. This is more efficiently done if the said policies, programs and procedures are contained in one reference document, which is the Manual on Corporate Governance (MCG). The submission of the MCG to the Commission and its posting in company’s website ensure easier access by any interested party. The MCG should contain the following, among others:

Recommendation 12.2 The Company should have in place an independent internal audit function that provides an independent and objective assurance, and consulting services designed to add value and improve the company’s operations. Explanation A separate Internal Audit (IA) function is essential to monitor and guide the implementation of company policies. It helps the company accomplish its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of the company’s governance, risk management and control functions. The following are the functions of the IA, among others:

a) A policy on the training of directors, including an orientation program for first-time directors and relevant annual continuing training for all directors; b) c)

e) f) g)

The company should have a website to ensure a comprehensive, cost-efficient, transparent and timely manner of disseminating relevant information to the public.

Explanation

Setting up clear policies and procedures on corporate disclosure that comply with the disclosure requirement as provided in Rule 68 of the Securities Regulation Code (SRC) and other regulations such as those required by the Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), if applicable, is essential for comprehensive and timely reporting.

The Company should have a policy requiring all directors and officers to disclose/ report to the company any dealings in the company’s shares by the said directors and officers within five (5) business days.

The company should maintain a comprehensive and cost-efficient communication channel for disseminating relevant information. This channel is crucial for an informed decision-making by investors, stakeholders and other interested users.

Recommendation 11.1

Explanation

Policies and procedure for setting Board and executive remuneration, as well as the level and mix of the same; Policies governing RPTs and other unusual or infrequently occurring transactions, as well as the review and approval of material and significant RPTs, geared towards the prevention of abusive dealings and transactions and the promotion of transparency. These policies include ensuring that transactions occur at market prices and under conditions that protect the rights of all shareholders;

Policies on full, fair, accurate and timely disclosure to the public of every material fact or event that occurs in the company, particularly on the acquisition or disposal of significant assets, which could adversely affect the viability or the interest of its shareholders/members and other stakeholders, which includes policy on the appointment an independent party to evaluate the fairness of the transaction price on the acquisition or disposal of assets;

b. c. d.

Alternative dispute mechanism(s) to resolve intra-corporate disputes in an amicable and effective manner;

h) Qualifications and grounds for disqualification of directors. The company should disclose all relevant information on its corporate governance policies and practices in the Annual Corporate Governance Report, which should be which should be submitted to the Commission, and continuously updated and posted on the company’s website.

A policy on disclosure of all relevant and material information on individual board directors and key executives to evaluate their experience and qualifications, and assess any potential and/or actual conflicts of interest that might affect their judgment as prescribed under Rule 12 Annex C of the SRC;

Board and executive remuneration, as well as the level and mix of the same;

Accurate disclosure to the public of every material fact or event that occurs in the company, particularly on the acquisition or disposal of significant assets, which could adversely affect the viability or the interest of its shareholders/ members and other stakeholders, which includes policy on the appointment of an independent party to evaluate the fairness of the transaction price on the acquisition or disposal of assets;

The non-audit work, if any, of the External Auditor, the non-audit fees paid to the External Auditor in relation to the total fees paid to him and to the corporation’s overall consultancy expenses;

The attendance record of the company’s directors for the previous year; and

Other information that the Commission or other regulatory agencies, may, from time to time require disclosure of.

CULTIVATING A SYNERGIC RELATIONSHIP WITH SHAREHOLDERS/MEMBERS 13. PROMOTING SHAREHOLDER/MEMBER RIGHTS Principle: The company should treat all shareholders/members fairly and equitably, and also recognize, protect and facilitate the exercise of their rights. Recommendation 13.1 The Board should ensure that basic shareholder/member rights are disclosed in the Manual on Corporate Governance. Explanation It is the responsibility of the Board to adopt a policy informing the shareholders/ members of all their rights. Shareholders/members are encouraged to exercise their rights when provided clear-cut processes and procedures for them to follow. Shareholders and members generally have the following rights, among others: i. ii. iii. iv. v.

i. ii. iii.

Principle 9

Recommendation 9.1 The Audit Committee should have a robust process for approving and recommending the appointment, reappointment, removal, and fees of the external auditor. The appointment, reappointment, removal, and fees of the external auditor should be recommended by the Audit Committee and approved by the Board of Directors and the shareholders. For the removal or change in the external auditor, the reasons for removal or change should be disclosed to the Commission, the shareholders, and the public through the company website and other required disclosures. Explanation The appointment, reappointment and removal of the external auditor by the Board’s approval, through the Audit Committee’s recommendation, and shareholders’ approval at shareholders’ meetings are actions regarded as good practices. Shareholders’ approval clarifies or emphasizes that the external auditor is accountable to the shareholders or to the company as a whole, rather than to the Management whom he may interact with in the conduct of his audit.

Right to participate in the approval of material corporate acts; Right to propose the holding of meetings and to include agenda items ahead of the scheduled Annual and Special Shareholders’/Members’ Meeting; Right to nominate candidates to the Board of Directors/Board of Trustees; Right to be informed of the nomination and removal process; and Right to be informed of the voting procedures that would govern the Annual and Special Shareholders’/Members’ Meeting.

Moreover, shareholders have the following additional rights:

STRENGTHENING EXTERNAL AUDITOR’S INDEPENDENCE AND IMPROVING AUDIT QUALITY The company should establish standards for the appropriate selection of an external auditor, and exercise effective oversight of the same to strengthen the external auditor’s independence and enhance audit quality.

Monitors and evaluates governance processes.

A company’s IA activity may be a fully resourced activity housed within the organization or may be outsourced to qualified independent third party service providers.

Explanation

The ACGR should contain the following disclosures, among others:

Evaluates operations or programs to ascertain whether results are consistent with established objectives and goals, and whether the operations or programs are being carried out as planned;

g. Evaluates specific operations at the request of the Board or Management, as appropriate; and

Recommendation 8.4

Provides an independent risk-based assurance service to the Board, Audit Committee and Management, focusing on reviewing the effectiveness of the governance and control processes in (1) promoting the right values and ethics, (2) ensuring effective performance management and accounting in the organization, (3) communicating risk and control information, and (4) coordinating the activities and information among the Board, external and internal auditors, and Management; Performs regular and special audit as contained in the annual audit plan and/ or based on the company’s risk assessment; Performs consulting and advisory services related to governance and control as appropriate for the organization; Performs compliance audit of relevant laws, rules and regulations, contractual obligations and other commitments, which could have a significant impact on the organization;

e. Reviews, audits and assesses the efficiency and effectiveness of the internal control system of all areas of the company;

Policies on formal and transparent board nomination and election policy; Basic shareholder/member rights; and

The Annual Corporate Governance Report (ACGR) is intended to be a comprehensive report containing all of the company’s pertinent corporate governance information. The company is expected to provide regular updates on all the information required in the ACGR.

The Board should encourage active shareholder/member participation by making the result of the votes on matters taken during the most recent Annual or Special Shareholders’/ Members’ Meeting publicly available the next working day. In addition, the Minutes of the Annual and Special Shareholders’/Members’ Meeting should be available on the company website within five (5) business days from the dateof the meeting. Explanation Voting results include a breakdown of the approving and dissenting votes on the matters raised during the Annual or Special Shareholders’/Members’ Meeting. When a substantial number of votes have been cast against a proposal made by the company, it may make an analysis of the reasons for the same and consider having a dialogue with its shareholders/members. The minutes of the meeting includes the following matters: (1) A description of the voting and vote tabulation procedures used; (2) the opportunity given to shareholders/members to ask questions, as well as a record of the questions asked and the answers received; (3) the matters discussed and the resolutions reached; (4) a record of the voting results for each agenda item; (5) a list of the directors, officers and shareholders/members who attended the meeting; and (6) dissenting opinion on any agenda item that is considered significant in the discussion process. Recommendation 13.4 The Board should make available, at the option of a shareholder/member, an alternative dispute mechanism to resolve intra-corporate disputes in an amicable and effective manner. Explanation It is important for the shareholders/members to be well-informed of the company’s processes and procedures when seeking redress for the violation of their rights. Putting in place proper safeguards ensures suitable remedies for the infringement of shareholders’/members’ rights and prevents excessive litigation. The company may also consider adopting in its Manual on Corporate Governance the established and generally accepted Alternative Dispute Resolution procedures.

Recommendation 10.1

The Board should ensure the proper and efficient implementation and monitoring of compliance with the Code of Business Conduct and Ethics The Board has the primary duty to make sure that the internal controls are in place to ensure each board member’s compliance with the Code of Business Conduct and Ethics. This includes the creation of efficient communication channels, which aid and encourage employees, customers, suppliers and creditors to raise concerns on potential unethical/unlawful behavior of board members without fear of retribution.

Recommendation 13.3

10. INCREASING FOCUS ON NON-FINANCIAL AND SUSTAINABILITY REPORTING

Recommendation 7.2

Required information in the notice include, among others, the date, location, meeting agenda and its rationale and explanation, and details of issues to be deliberated upon and approved or ratified at the meeting. Sending the notice in a timely manner allows shareholders/members to plan their participation in the meetings. It is good practice to have the notice posted on the company website.

The company’s Audit Committee, in the performance of its duty, oversees the overall relationship of the company with its external auditor. It evaluates and determines the nature of non-audit services, if any, of the external auditor and reviews periodically the proportion of non-audit fees paid to the external auditor in relation to the corporation’s overall consultancy expenses.

Board directors are duty-bound to apply high ethical standards, taking into account the interests of all stakeholders.

A Code of Business Conduct and Ethics formalizing ethical values is an important tool to instill an ethical corporate culture that pervades throughout the company, especially on the board level. The main responsibility to create and design a Code of Business Conduct and Ethics suitable to the needs of the company and the culture by which it operates lies with the Board.

Explanation

STRENGTHENING BOARD ETHICS

Explanation

The Board should encourage active shareholder participation by sending the Notice of Annual and Special Shareholders’/Members’ Meeting with sufficient and relevant information at least 21 days before the meeting.

Recommendation 9.3

Principle

The Board should adopt a Code of Business Conduct and Ethics, which would provide standards for professional and ethical behavior, as well as articulate acceptable and unacceptable conduct and practices in internal and external dealings of board members. The Code should be properly disseminated to all the members of the Board. It should also be disclosed and made available to the public through the company website.

Recommendation 13.2

Explanation

Recommendation 6.2

Disclosure of the criteria, process and individual and collective results of the assessment ensures transparency and allows shareholders and other stakeholders to determine if the directors are performing their responsibilities to the company. Companies are given the discretion to determine the assessment criteria and process, which should be based on the mandates, functions, roles and responsibilities provided in the Board and Committee Charters. In establishing the criteria, attention is given to the values, principles and skills required by the company. The Corporate Governance Committee oversees the evaluation process.

any member thereof in accordance with the existing laws. The procedures of the nomination and removal process are expected to be discussed clearly by the Board. The company is encouraged to fully and promptly disclose all information regarding the expertise, experience and background of the candidates to enable the shareholders and members to study and conduct their own background check as to the candidates’ qualification and credibility.

Pre-emptive right; Right to dividends; and Appraisal right.

Shareholders/members are encouraged to participate when given sufficient information prior to voting on fundamental corporate changes such as: (1) amendments to the Articles of Incorporation and By-Laws of the company; and (2) extraordinary transactions, including the transfer of all or substantially all assets that, in effect, results in the sale of the company. Shareholders/members should also be informed before major changes in the business operation of the company happens. In addition, the disclosure and clear explanation of voting procedures, as well as the removal of excessive or unnecessary costs and other administrative impediments, allow for the effective exercise of shareholders’/members’ voting rights. Poll voting is highly encouraged as opposed to the show of hands. Proxy voting is also a good practice, including the electronic distribution of proxy materials. The right to propose the holding of meetings and items for inclusion in the agenda is given to all shareholders and members. However, to prevent the abuse of this right, companies may require that the proposal be made by shareholders or members holding a specified percentage of shares or voting rights. On the other hand, to ensure that minority shareholders are not effectively prevented from exercising this right, the degree of ownership concentration is considered in determining the threshold. Lastly, all shareholders and members must be given the opportunity to nominate candidates to the Board of Directors or Trustees, and/or cause the removal of

Recommendation 13.5

The Board should establish an Investor Relations Office (IRO) or Customer Relations Office (CRO) or its equivalent to ensure constant engagement and communication with its shareholders/members. The IRO or CRO or its equivalent should be present at every shareholders’/members’ meeting.

Explanation Setting up an avenue to receive feedback, complaints and queries from shareholders/members assures their active participation with regard to activities and policies of the company. The IRO/CRO shall have a designated investor/ customer relations officer, email address and telephone number. Further, creating an Investor/Customer Relations Program ensures that all information regarding the activities of the company are properly and promptly communicated to shareholders/members. DUTIES TO STAKEHOLDERS 14. RESPECTING RIGHTS OF STAKEHOLDERS AND EFFECTIVE REDRESS FOR VIOLATION OF STAKEHOLDER’S RIGHTS Principle The rights of stakeholders established by law, by contractual relations and through voluntary commitments must be respected. Where stakeholders’ rights and/or interests are at stake, stakeholders should have the opportunity to obtain prompt effective redress for the violation of their rights. Recommendation 14.1 The Board should identify the company’s various stakeholders and promote cooperation between them and the company in creating wealth, growth and sustainability. Explanation Stakeholders in corporate governance include, but are not limited to the, customers, employees, suppliers, shareholders, members, non-proprietary rights holders,investors, creditors, the community the company operates in, society, government, regulators, competitors, external auditors, etc. In formulating the company’s strategic and operational decisions affecting its wealth, growth and sustainability, due consideration is given to those who have an interest in the company and are directly or indirectly affected by its operations. Recommendation 14.2 The Board should establish clear policies and programs to provide a mechanism on the fair treatment, protection and enforcement of the rights of stakeholders. Explanation In instances where stakeholders’ interests are not legislated, the company’s voluntary commitments ensure the protection of the stakeholders’ rights. The company’s business conduct policies ideally include provisions on the company’s procedures on dealing with various stakeholders. The company’s stakeholders include its customers, resource providers, creditors and the community in which it operates. Fair, professional and objective dealings, as well as clear, timely and regular communication with the various stakeholders ensure fair treatment and better protection of their rights. Included in the stakeholders are the holders of non-proprietary right. These holders have no participation in the management of the affairs and assets of the corporation, but they have rights over the use and enjoyment of the property of the company subject to the agreed terms and conditions. As such, non-proprietary right holders enjoy contractual rights which must be respected and upheld by the Board and the Management. Non-proprietary right holders enjoy the following rights: i.

Rights over the use and enjoyment of the corporate property subject to terms and conditions as may be provided in the articles of incorporation, by-laws and membership certificates;

ii.

The right to be informed of any material transaction or undertaking by the company, which may substantially affect the use and enjoyment of the corporate property over which the member holds non-proprietary rights; and

iii.

The right to seek redress for any violation of the aforementioned rights.

15. ENCOURAGING EMPLOYEES’ PARTICIPATION Principle A mechanism for employee participation should be developed to create a symbiotic working environment consistent withthe realization of the company’s objectives and goodcorporate governance goals. Recommendation 15.1 The Board should establish policies, programs and procedures that encourage employees to actively participate in the realization of the company’s goals and in its governance. Explanation The establishment of policies and programs covering, among others, the following: (1) health, safety and welfare of employees; (2) manpower training and development; and (3) employee reward/compensation, encourages employees to perform better and motivates them to take a more dynamic role in the corporation. Active participation is further fostered when the company recognizes the firmspecific skills of its employees and their potential contribution in the company’s corporate governance. The employees’ viewpoint in certain key decisions may also be considered in governance processes through work councils or employee representation in the board. Recommendation 15.2 The Board should set the tone and make a stand against corrupt practices by adopting an anti-corruption policy and program in its Code of Business Conduct and Ethics. Further, the Board should disseminate the policy and program to employees across the organization through orientations and continuous trainings to embed them in the company’s culture. Explanation The adoption of an anti-corruption policy and program endeavors to mitigate corrupt practices such as, but not limited to, bribery, fraud, extortion, collusion, and money laundering. This encourages employees to report corrupt practices and outlines the procedures on how to combat, resist and stop these corrupt practices. Anti-corruption programs are more effective when the Board sets the tone and leads the company in their execution. Recommendation 15.3 The Board should establish a suitable framework for whistleblowing that allows employees to freely communicate their concerns about illegal or unethical practices, without fear of retaliation and to have direct access to an independent member of the Board or a unit created to handle whistleblowing concerns. The Board should be conscientious in establishing the framework, as well as in supervising and ensuring its enforcement. Explanation A suitable whistleblowing framework sets up the procedures and safe-harbors for complaints of employees, either personally or through their representative bodies, concerning illegal and unethical behavior in the company. One essential aspect of the framework is the inclusion of safeguards to secure the confidentiality of the informer and to ensure protection from retaliation. Further, part of the framework is granting individuals or representative bodies confidential direct access to either an independent director or a unit designed to deal with whistleblowing concerns. Companies may opt to establish an ombudsman to deal with complaints and/ or confidential phone and e-mail facilities to receive allegations of illegal and unethical behavior. 16. ENCOURAGING SUSTAINABILITY AND SOCIAL RESPONSIBILITY Principle The company should be socially responsible in all its dealings with the communities in which it operates. It should ensure that its interactions serve its environment and stakeholders in a positive and progressive manner that is fully supportive of its comprehensive and balanced development. Recommendation 16.1 The company should recognize and place an importance on the interdependence between business and society, and promote a mutually beneficial relationship that allows the company to grow its business, while contributing to the advancement of the society where it operates. Explanation The company’s value chain consists of inputs to the production process, the production process itself and the resulting output. Sustainable development means that the company not only complies with existing regulations, but also voluntarily employs value chain processes which take into consideration economic, environmental,social and governance issues and concerns. In considering sustainability concerns, the company plays an indispensable role alongside the government and civil society in contributing solutions to complex global challenges like poverty, inequality, unemployment and climate change.