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Smart cards issued to drivers can now be used

Roy — Sat, 07 May 2011 08:07:36 +0000

The Pantawid Pasada fuel subsidy smart cards released last May 2 to jeepney drivers have already been loaded according to the Department of Energy (DoE). The smart cards were loaded with a value of P1,050 and they can be presented at gasoline stations with signs saying “Pantawid Cards Accepted Here.” The energy department also confirmed that some of the cards were already consumed.

Unfortunately, there were reports that some gasoline stations have turned away jeepney drivers who wanted to use the fuel subsidy cards for jeepneys issued by the DoE. Some gasoline attendants would reply that none of their fuel pumps were designated for the smart cards.

Some jeepney drivers complained that the P1,050 load was not even enough to run their jeep the whole day since they would consume almost P1,500 worth of fuel in a day, while some were still appreciative of what the government was to able to give them.

Meanwhile, independent oil player Flying V have reduced its diesel price by P0.50 per liter but increased its gasoline pump price by P0.50 per liter. The adjustments took effect on 12:01 a.m. of Saturday, May 7.

The DoE also issued the requirements for those who would like to get their smart cards, which are the following: certificate of public convenience (decision/order); official receipt valid from April 2010 to March 2011 and certificate of registration; and one government-issued ID with photo.

The initial sets of smart cards issued were to jeepney operators with routes originating from Baclaran Bacood, Bacoor, Bagbaguin, Bagong Barrio, Bagong Nayon, Bagong Silang, Bagumbayan, Bagumbong, Balara, Balic-balic and Balintawak.

The energy department have scheduled release the smart cards of other routes in Metro Manila on Monday and Tuesday. For provincial jeepney drivers, DoE has tapped the regional offices of the Land Transportation Office (LTO) to be the distribution channel of the Pantawid Pasada cards.

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Maggi noodles tested positive for salmonella

Roy — Sat, 07 May 2011 04:21:47 +0000

Nestlé Philippines has voluntarily recalled a number its Maggi instant noodles after some of the tested were tested for possible salmonella contamination. The company said it found traces of salmonella in two batches of the noodle product’s beef variant. “The product recall is a precautionary measure… to ensure the safety and quality of our products,” Nestlé said.

The multinational food manufacturer advised consumers who may have bought Maggi Rich Mami Noodles to contact their hotline at 898-0061 for Metro Manila and 1-800-100-637853 (toll-free) for provincial areas.

Nestlé however said that its products are safe to eat if the cooking instructions properly followed. The batches that were tested positive for salmonella have lot codes 11020598A2 and 11030598A1. The lot code numbers are found at the back of the product pack, between the “Best Before” date and the ingredients list.

Salmonella infections typically affect the intestines, causing vomiting, high fever and abdominal pains. The bacteria can be transmitted from water, soil, animal feces, raw eggs, and raw meat.

Food and Drug Administration (FDA) director Suzette Lazo said their office has already been informed regarding the recall. The FDA also posted an advisory on its websites to consumers who may have bought the product with the specified lot codes to return them to the Nestlé office at Nestlé Center, 31 Plaza Drive, Rockwell Center in Makati, or to its licensed distributors.

Lazo said, “According to law, they have to do this (product recall), when they discover that there is something that would be harmful to consumers. They complied with that law and this is a very responsible thing they did.”

She also said their department has made an extensive investigation to determine the cause of the contamination. “Even if it is a voluntary recall, we have to do our own test and get a report from them every day,” Lazo added.

Based on initial findings, the flavor enhancer that comes with the instant noodles in sachet may have caused the salmonella contamination. Said flavor enhancer has also been recalled in the US.

Pending completion of the investigation, Nestlé has temporarily stopped production of all Maggi noodle products.

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DoE starts distribution of Pantawid Pasada cards

Roy — Wed, 04 May 2011 15:30:50 +0000

Major oil player Pilipinas Shell Petroleum Corporation is preparing 200 gasoline stations nationwide to serve as jeepney lanes for the fuel subsidy program of the government, with issuance of the fuel discount card’s under the “Pantawid Pasada” program already underway.

Pilipinas Shell vice president for communications Roberto S. Kanapi assured that the company will “continue to support the government in providing assistance to the transport sector.”

The fuel discount cards were distributed by the Department of Energy (DoE) to jeepney drivers and operators starting May 2, however, the cash loads of the fuel cards will be officially transmitted on May 6, Friday.

The DoE said that the initial P450-million subsidy allotted for the program may not be the only subsidy to be granted to the transport sector. Deliberations are ongoing for another P1.2-billion budget at the Inter-Agency Energy Contingency Committee.

The energy department hopes that, aside from being a fuel subsidy card, the cards may also be used for future purposes, including for the price discounts being offered by the oil companies. The agency also said that the cost of the production Pantawid Pasada cards, amounting to P11 million or P50 per card, were shouldered by the oil firms.

Pantawid Pasada cards issued to jeepney drivers and operators will have a load of P1,050, which may be spent one-time or applied as discount for fuel purchases. Initially distributed will be those in Metro Manila. The fuel cards of those in the provincial areas will follow immediately with the assistance of the regional networks of the Land Transportation Office (LTO).

After the jeepneys, fuel subsidy cards for tricycle drivers will be issued next, which will have a load P150. The DoE is still studying the process of distributing the Pantawid Pasada cards to tricycle drivers although it hopes to finish it within a month’s time.

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Diskwento Caravan rolls out of Metro Manila

Roy — Sun, 01 May 2011 11:38:46 +0000

The Diskwento Caravan (Discount Caravan) will soon roll out to areas outside Metro Manila to bring cheaper goods to more Filipino consumers.

Department of Trade and Industry (DTI) secretary Gregory L. Domingo said, “We also want consumers in various regions to experience the reduced prices of goods sold at the caravan which Metro Manila residents were afforded.”

Domingo instructed the agency’s regional and provincial directors to coordinate with manufacturers of prime and basic commodities to sell discounted products in provinces and allow consumers in the countryside to purchase products for as low as factory prices. The Diskwento Caravan is participated by manufacturers that sell their wares ranging from generic medicines, bread, sardines, cooking oil, processed meat, fruits, vegetables, detergent bars and school supplies.

The DTI chief said consumers should take this opportunity and take advantage of the discounts, most especially to households that are in need of school supplies for the coming school opening. “Enrollment is just a few days, students and mothers can shop for notebooks, crayolas, ballpens, pencils, etc. and expect big savings on these items.”

The trade department, however, was quick to point out that they do not directly compete with local retailers since the caravans are stationed far from commercial establishments and hosted in city halls and are under the supervision of the mayor’s office.

The schedule of the Diskwento Caravans are as follows: Bukidnon – April 27-28; Antique – May 4-5; Abra – May 10-11; Oriental Mindoro – May 18-19; Pangasinan – May 24-25; Surigao del Norte –May 30-31; Zambales – June 2-3; Zamboanga del Norte – June 7-8; Cagayan – June 14-15; Northern Samar – June 17-18; Sorsogon – June 22-23; Davao Oriental – June 28-29; Negros Oriental July 5-6; Quezon – July 14-15; and Saranggani – July 26-27.

In Metro Manila, the Diskwento Caravan will be at the DTI headquarters in Buendia Ave. corner Makati Ave – May 9 -10, Mandaluyong, May 16; Manila – May 30; Pateros – May 31; Taguig – June 1; Malabon – June 3. The Diskwento Caravans will be enhanced with jobs fair to be conducted by the Labor Department and the National Wages and Productivity Commission at the same venues and schedules.

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Globe to invest $500 M to improve mobile network

Roy — Sun, 24 Apr 2011 06:57:15 +0000

Mobile service provider Globe Telecom is investing $500 million to improve the quality and capacity of its mobile network infrastructure throughout the country. Company officials said the network quality will be top priority of Globe this year.

As part of the company’s network transformation program, Globe is making one of its biggest network investments in quality and capacity to date, where the significant amount will be used for capacity buildup, network modernization and optimization. These upgrades would provide subscribers better experiences in call, text and data services in 2G, 3G and 4G.

Globe earlier announced a major expansion of its current 4G footprint with the country’s first commercial rollout of 4G mobile technology. At its initial phase, Globe utilized the global standard HSPA+ Globe allots or Evolved High-Speed Packet Access for its 4G mobile network.

HSPA+ is a 4G wireless mobile, high speed broadband technology that allows for peak theoretical download of up to 21 Mbps with upgradeability for 84 Mbps which would complement the company’s existing 4G WiMAX (Worldwide Interoperability for Microwave Access) network. Under the Globe HSPA+ network, subscribers are expected to enjoy browsing at a typical speed of 4-6 Mbps with even faster peak speeds.

Globe president and CEO Ernest Cu said, “Our customers are looking for better network quality, and this is what we are giving them. We are making a substantial investment in our network to improve the quality of our services to our subscribers. Certainly, the network on which our services are delivered play a pivotal role in achieving superior customer experience.”

By continuously enhancing their network facilities and operations, Cu explained, their subscribers will enjoy better quality and greater reliability for calls, text messaging and data services. “This year, we are making significant investments in upgrading and expanding our networks. One tangible result of which is the commercial rollout of 4G for mobile, making us the first Philippine operator with a 4G mobile network in the country,” he added.

The 4G HSPA+ rollout expands the foray of Globe into new and up-to-date network technologies to provide its subscribers with high-speed broadband access with the added convenience of full mobility.

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Xoom special offer on the Pacquiao-Mosley fight

Roy — Sat, 23 Apr 2011 22:54:56 +0000

Xoom.com, a money online transfer company, tied up with DIRECTV to for a special offer to Xoom customers to watch the Manny Pacquiao “Pacman” Pacquiao versus Sugar Shane Mosley fight for free on DIRECTV Pay-Per-View (PPV).

The company is excited to bring this opportunity for the first time. It will be available to new Xoom customers who send money to the Philippines. This promo is valued at $55. “Manny Pacquiao is a world-wide boxing phenomenon and is idolized by many Filipinos. We’re very excited to bring his fight to his biggest fans for free,” said John Kunze, President and CEO of Xoom.com

The mechanics to avail of the free viewing of the Pacquiao-Mosley fight is easy – first time Xoom.com customers just need to send a money transfer of $150 or more to the Philippines between April 20, 2011 to 10:00 p.m. PST May 7, 2011. They can then order the Pacquiao-Mosley fight from DIRECTTV Pay-Per-View by calling 1-800-531-5000 or online at directv.com/boxing. Within two weeks after the fight, eligible customers will receive the $55 Prepaid Reward card from Xoom.com towards the Pay-Per-View fee.

Of course, those who would avail of this promo from Xoom.com must have an active subscription from DIRECTV to qualify. Monthly cable TV and equipments are additional. The promotional offer is available only for the standard-definition “SD” feed of the telecast. Customers who purchase the telecast in high-definition “HD” may still participate in the promotion, but will only receive reimbursement for the SD price ($55), and will need to pay for any price difference.

To get to know more about this exciting offer from Xoom.com, visit xoom.com/manny. The promo is also subject to the terms and conditions of DIRECTV. This offer is subject to change without notice and valid until supplies last.

Xoom.com was founded in 2001 in San Francisco and is backed by leading venture firms Sequoia Capital, New Enterprise Associates and Fidelity Ventures.

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Government plans EO to freeze oil prices

Roy — Thu, 21 Apr 2011 08:58:35 +0000

In response to the steady rising of oil prices, the Aquino government is planning to resort to “extreme legal measure” by issuing an executive order that would ban further oil price increases. The same has been done during the Arroyo administration when Executive Order was in issued in 2009 to freeze oil prices.

Department of Justice (DoJ) Secretary Leila de Lima said, “Talking about possibilities, there’s always such a possibility of coming up with an executive order freezing the oil prices. If it comes to that, it will basically and primarily be an executive decision or action.” She further added that such a measure would be “legally feasible.”

The DoJ, together with the Department of Energy (DOE), has mandates under the oil deregulation law to ensure that the oil price adjustments are reasonable.

The warning on an executive order to freeze oil prices came after the DOE demanded an explanation from oil firms whose recent price hikes were found out to be above the energy department’s prescribed adjustments based on a similar formula used by local firm. The Tuesday price increase was the 13th price hike implemented by oil companies this year.

Oil firms Shell, Chevron and Total increased prices of regular gasoline by 70 centavos liter; unleaded gasoline, 60 centavos; diesel, 25 centavos; and kerosene, 40 centavos as 6 a.m. on Tuesday. Per DOE’s computation, price hikes should have only been P0.16 per liter for diesel and P0.39 for gasoline.

Chevron, after receiving the letter from DOE, rolls back prices of regular gasoline by P0.70 per litter, unleaded gasoline by P0.60, diesel by P0.25 and kerosene by P0.40 by noon of Wednesday.

De Lima reiterated the plan to up a new body which will be called “DOJ Office for Competition,” which she said would “address cartels and restrictive agreements.” The proposed body would conduct “fact-finding investigations and determine whether violations of anti-trust and related laws are being committed by persons, natural and juridical.”

“Deregulation or privatization does not mean big business is free to do anything under the sun. Public welfare is paramount,” she stressed.

“This body will faithfully carry out constitutional and existing legal provisions against combinations in restraint of trade. Proceedings will depend on the specific industry and/or nature of the case,” De Lima added.

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Ayala stays firm in its investment in Globe

Roy — Mon, 18 Apr 2011 16:48:09 +0000

Despite of the looming merger of rival Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Philippines Inc., (Digitel), the Ayala Corp. said it has no plans of leaving the telecommunications business.

Ayala and partner Singapore Telecommunications Ltd. (SingTel) were excited about the prospect of its Globe Telecom Inc., despite the tougher competition brought about by the merger of its two rivals.

Jaime Augusto Zobel de Ayala, chairman of the country’s oldest conglomerate, said “I see no reason to disrupt the partnership between Ayala and SingTel,” when asked if they would be willing to accommodate a new investor for Globe. “It’s a very interesting for the industry. It would be foolish of us to get out at this time,” he added.

Analyst earlier said that the deal between PLDT and Digitel would give the telecom giant 70% of the mobile phone market to the disadvantage of Globe. However, Zobel said they remain unfazed by stiff competition in the industry. “In fact, together with our partner, we’re very interested in building Globe up,” he said.

He added that Globe would spend $500 million to upgrade its network as it looks to protect market share.

And while its Globe Company only ranked No. 2 in the telco industry, the conglomerate has a lot of high profile businesses.

It owns property Ayala Land Inc., Bank of the Philippine Islands, Manila Water Co., and it also has interest in business process outsourcing (BPO), electronics and car dealerships. This year, the conglomerate is hiking its capital expenditures by 20% to about P80 billion to accommodate plans to expand into power generation and infrastructure.

Ayala also plans to bid for the contract to operate 2 major elevated railway systems in Metro Manila, which the government will auction under its public-private partnership program. “We believe power generation is a potential source of long-term growth for Ayala. We feel there is an opportunity for new players to come in,” Zobel said.

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House Bill requires hospitals to post price list of medical services

Roy — Mon, 18 Apr 2011 14:23:54 +0000

The House of Representatives approved last week on third and final reading a bill requiring all hospitals and clinics to post price list of all their series, incidental expenses and medical supplies in a conspicuous place in their premises to ensure accessible, transparent, and reliable delivery of services.

House Bill 4308 author Pasig Representative Roman Romulo hopes that the bill would also gain the approval of their counterpart in the Senate. “Through the passage of this measure, the public is empowered to choose the healthcare facility where they would avail themselves of medical services, especially during times of economic downturns and ultimately, achieve the national goal of establishing a responsible and efficient healthcare delivery,” he said.

Also known as the Healthcare Services Price Disclosure Act of 2011, House Bill 4308 requires all healthcare facilities to make their price list available to any patient or their representative so that patients could adequately exercise their option to choose a healthcare facility.

With HB 4308, Romulo seeks to provide transparent, accessible and reliable information on the prices of healthcare services, including incidental expenses and all items that can be found in the medical bill of a patient. Any increase in their prices should take effect only after proper posting as required in this measure and shall not affect patients admitted prior to posting increase in price.

Failure to post a price list, or posting outdated, inaccurate, and inadequate price list could result to the healthcare facility being slapped with stiff penalties. HB 4308 provides that any juridical person who violates shall be subject to an administrative fine of not more than P50,000 per instance of violation without prejudice to suspension or revocation of license to operate such healthcare facility for a period not exceeding 60 days.

The personnel directly responsible for the violation shall also be subject to an administrative fine of not more than P25,000 per instance of violation without prejudice to suspension or revocation to practice profession for period not exceeding 60 days according to the bill.

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Cebu Pacific buys more planes to expand operations

Roy — Sat, 16 Apr 2011 01:33:20 +0000

Listed Cebu Air Inc. was the first company brave enough to hold an initial public offering (IPO) after the global financial meltdown. It was also the second largest IPO in the history of the Philippines Stock Exchange (PSE). From the IPO, the company was able to raise P23.3 billion. The bulk of the fund came from the sale of existing shares held by parent company JG Summit Holdings Inc. The company said that from its held IPO, only 30.66 million new shares were issued, which equals only to P3.8 billion fresh funds for expansion from the offering.

The operator of the budget airline Cebu Pacific has spent part of the proceeds from its IPO to purchase several new aircraft as part of its plan to expand operations. In its disclosure to the PSE, the Gokongwei-led airline said that from December 2010 to March of this year, it spent P619.12 million for pre-delivery payment of six new aircraft. As of March, Cebu Air had P3.12 billion left from the proceeds of its IPO, which is down from the P3.74 billion in IPO proceeds the company had at the end of last year.

In 2010, the airline company declared a $1.4-billion expansion program for the acquisition of new planes that would allow the airline to expand its domestic and international network. Cebu Pacific said it would buy 22 new Airbus A320 up to 2014, which will almost double the size of its current fleet.

Before the end of 2010, Cebu Pacific took delivery of three new Airbus A320 aircraft units with which to expand operations.

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Shane Mosley tweeted in Filipino

Roy — Tue, 12 Apr 2011 21:35:04 +0000

Manny Pacquiao and Shane Mosley will meet each other in a 12-round bout on May 7 for the WBO welterweight championship at the MGM Grand Arena in Las Nevada. So far, the two boxers have been cordial to each and no have ever said any bad thing about the other. Mosley’s promise to know Pacquiao cannot even be considered a diss or trash talk in the sport of boxing.

Now, Mosley is trying a different approach and reaches to the Filipino fans. The black American knockout artist tries to win over some fans from the Philippines by tweeting in Filipino. Mosley, using the Twitter handle @SugarShaneM tweeted “Hindi ko nais maliitin ng isang mandirigmang Filipino ako igalang ang kanilang espiritu.” Loosely translated, the tweet means, “I don’t belittle the Filipino warrior. I respect his spirit.”

Mosley did not stop at that and even sent some love to all Filipinos and tweeted, “Pagpapadala ibig at paggalang sa mga tao ng mga Philippines (Sending love and respect to the people of the Philippines),” and “I tumingin forward sa magandang malinis na laban (I’m looking forward to a good clean fight.)”

Based on the loose construction of the sentences, it could be construed that the boxer is only using Google Translate to translate what he wants to say. Nevertheless, the effort endeared him to Filipino fans who appreciated his efforts and were thrilled to read his tweets in Filipino.

Mosley, the obvious underdog in the upcoming match, tries hard to promote their fight. He has told everyone who were willing to listen that he is no pushover; that he poses a big threat to the dominance of Pacquiao. To those who don’t believe him, the boxer uses his charm and charisma.

His tweets in Filipino made the boxer known to Filipino fans who are happy hear foreigners speak the language. Because of this, they would look forward to the fight and watch Mosley in action against the Pambansang Kamao.

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Oil prices increased anew

Roy — Tue, 12 Apr 2011 18:06:53 +0000

Local oil companies raised their prices anew, even before the fuel subsidy for public utility jeepneys (PUJs) and tricycles could even be implemented. The prices for gasoline and diesel were increased by P1.50 to P1.75 a liter and kerosene by P1.40 a liter.

The first to implement the latest price increase were Pilipinas Shell Petroleum Corp., Chevron (formerly Caltex), and Total Philippines. The three companies said the new prices reflected by increase in the global prices of petroleum products last week as compared to the previous week’s level.

A total of 12 price increases have been effected by oil companies since the beginning of the year, adding up to a total increase of P9 a liter for gasoline and P9.20 a liter for diesel, whereas total reductions were marginal at P1.75 a liter for gasoline and only P0.25 for diesel.

In reaction to the latest price increase in fuel, multi-sectoral group Bagong Alyansang Makabayan said it wiped out the government’s planned fuel assistance program even before it could be implemented. Even challenging President Benigno “Noynoy” Aquino III to fire his economic managers for giving him “wrong advice.”

With the P1.50 per liter increase in the price of diesel, Bayan said the daily fuel cost of jeepney drivers has gone up again by P45, compared to the Pantawid Pasada program by the government which will provide a subsidy of only P35 per day and will not even be available until next month.

Bayan secretary general Renato Reyes said, “It’s almost a year now since Aquino became president. But in terms of economic policies, we have not seen a substantial change from the anti-people and dole-out programs of the Arroyo administration. Case in point is issue of escalating oil prices and the response of Aquino, as advised by his economic managers, is to implement a Pantawid Pasada, instead of addressing the more important issues of the price deregulations, value added tax and profiteering of the oil firms.”

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IT company might shut down its services to LTO

Roy — Tue, 12 Apr 2011 12:11:55 +0000

Stradcom Corp., the exclusive IT service provider for the Land Transportation Office (LTO) warns of a possible shutdown of the database and computer system it operates for the agency if the LTO continues to refuse remitting payments to the private firm. Stradcom provide and maintains LTO’s information technology facilities, including its database and licensing functions.

The IT company has demanded P1.171 billion from LTO for unpaid services rendered since September last year. Company spokesperson Margaux M. Salcedo said, “Since September, payment has been withheld. As of today, it has amounted to P1.171 billion in payables.” Salcedo said the amount represents services that have been delivered.

Stradcom says if the LOT continues the withholding of payments, it could be used as a “force majeure” or a situation beyond its control that Stradcom could invoke to shut down its operations. When that happens, Salcedo said, “LTO employees will be unable to process manually the combined average of 300,000 daily transactions that computerization allows.”

“The process of registering vehicles and drivers licenses will once again take weeks to months instead of being achieved in one hour, as has been made possible by computerization. Criminals will be emboldened. Expect the proliferation of ‘fixers’ as well as ‘carnappers,’” she added.

Earlier, the Department of Transportation and Communication (DOTC) said payments to Stradcom have been withheld due to an ongoing intra-corporate dispute between the company’s current chairman Cezar Quiambao and a group led by Bonifacio Sumbilla and Alderito Yujuico. The LTO has filed an interpleader case with the Quezon City Regional Trial Court Branch 95 to determine the authorized group in Stradcom.

Meanwhile, Salcedo presented three memoranda from the DOTC that directed LTO to pay Stradcom. The first one dated February 22 and was signed by Secretary Jose P. de Jesus ordering LTO to pay Stradcom P751.79 million.

The memorandum read, “To ensure that LTO will not be in default of its contractual obligations under the Build-Own-Operate Agreement dated March 26, 1998, as amended, payment of all amounts due Stradcom should be effected immediately in accordance with the proper procedure agreed upon by the Department, LTO and Stradcom under said agreement.”
The succeeding memoranda, dated March 10 and March 16, were a reiteration of the February 22 issuance.

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Smartcards will be issued on May 2

Roy — Tue, 12 Apr 2011 11:41:26 +0000

The smartcards would be released to public utility jeepneys (PUJs) and tricycle operators on May 1 or May 2, according to presidential spokesman Edwin Lacierda. The implementing rules and regulations were finalized and issued last week.

Lacierda said that Malacañang also warned public transport groups of stiff sanction if they jeopardize the public welfare with crippling strikes. “Our position is as long as you do not prejudice the riding public, we will respect your right to express your opinion. However, it’s another thing if the riding public is affected,” he said.

The smartcards would enable PUJ franchise holders to avail of fuel discounts. The cards will carry a load of P1,050 per card or about P35 per day. Some 268,245 will be issued to PUJ franchise holders nationwide, while almost one million tricycle drivers will get P150 fuel subside each or about P5 per day. A total of P450 million funds have been initially allotted for the program.

The presidential spokesman also said that the president’s economic team is still studying all options to cushion the effects of the rising fuel costs and of other basic commodities. He said the economic team may be sending their report to the president within the week.

There have been clamors from some sector for President Aquino to temporarily lift the 12-percent value added tax (VAT) on petroleum products to ease the burden of high oil prices, in lieu of the fuel subsidy issued to drivers and operators of PUJs.

Lacierda however said that some of the members of the economic team are not for the lowering of the VAT for fear that may lead to a bigger budget deficit. “Our investors and our credit ratings will also be affected by this,” he added.

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Willie Revillame’s show goes on hiatus

Roy — Sat, 09 Apr 2011 02:36:41 +0000

After being put in the hot seat once again, controversial television host Willie Revillame announced last Friday that his program “Willing Willie” will be off the air temporarily. Revillame made the announcement after major sponsors started pulling their ads one by one.

The controversy started on the March 12 episode of “Willing Willie” where six year old Jan-Jan, who was one of the show’s contestants, was show dancing and gyrating his hips as if stimulating a striptease as show host Revillame was laughing and egging him, together with the show’s live studio audiences. All throughout, the boy was crying as he was dancing. This triggered strong rebuke from the public, government’s rights and social welfare agencies, child’s rights advocates and hundreds of concerned public.

Revillame, however, maintained that he did not abuse the boy and even hit broadside critics and telling government agencies to instead focus on helping the poor. He also threatened with lawsuit those who attacked him on Twitter. He said “Willing Willie” will be on hiatus for two weeks and after the Holy Week, the management of TV5 would decide if the show will continue to air or not.

Internet activist even created a page in active social media calling for Revillame’s oust from “Willing Willie” and a product boycott of the show’s sponsor, which thus far is unprecedented in the country’s history of consumer activism.

Taking on the cue, major sponsors started pulling their ads from show. Jollibee Foods Corporation last Saturday said it was “holding off” ad placements of its newly-acquired Mang Inasal restaurant chain. Procter & Gamble Philippines likewise suspended advertising on the show. Del Monte Pacific Ltd. followed suit and pulled off its sponsorship of the beleaguered primetime game show.

CDO Foodsphere Inc. also announced that it was withdrawing sponsorship of the show. A brief note in its website states that while the company they were jolted “out of our comfort zones” even as they maintained that they were “in no position to pass judgment” on the issue. Cebuana Lhuillier Pawnshop also announced it would stop advertising on the show beginning Monday.

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BSP eases on bank’s qualifying capital requirements

Roy — Fri, 08 Apr 2011 05:05:20 +0000

The Bangko Sentral ng Pilipinas (BSP) relaxes on the requirement on the risk-based assessment of qualifying capital instruments. The BSP amended Circular No. 709 on the Definition of Qualifying Capital Instruments under the Risk-Based Capital Adequacy Framework for Banks and Quasi-Banks by removing the loss absorption feature from among the requirements that an external legal opinion must cover.

The BSP said that Circular No. 709 was issued last January in order to align the criteria of qualifying capital instruments of banks and quasi-banks with those of the Basel Committee of Banking Supervision, particularly the standards on the minimum conditions for inclusion of hybrid tier1 and lower tier2 capital. After review however, the BSP found out that the requirement of an external legal opinion on the compliance of lower tier2 both have subordinate and loss absorption features which were not required.

The new provision, which is Circular No. 716 states, “Only the subordination feature is applicable to lower tier2 instruments while the loss absorption feature applies only to hybrid tier1 instruments. Circular No. 716, which made the requirement less rigid, was signed by BSP Governor Amando M. Tetangco Jr. last March 25.

The BSP amended the existing risk-based capital adequacy framework in compliance with Basel 3 provisions to further improve the quality of bank capital. It has disallowed new issuances of upper tier2 capital but eligible capital instruments under hybrid tier1 capital, upper tier2 and lower tier2 capital based on existing regulations that have been issued as of December 31, 2010 would continue to be recognized under their respective categories until such time that further guidance on this aspect was issued by the BSP.

The BSP said last January that is has specifically adopted the Basel 3 criteria for inclusion of non-common equity components in banks’ capital base as basis for determining capital instruments that could be counted as regulatory capital by Philippine banks from January 1 this year and onwards. Basel 3 revises the existing international capital standards, commonly referred to as Basel 2, and represents the core of international banking reforms that were deemed to address the weaknesses that were made evident during the global financial crisis.

“The adoption of the new criteria for capital instruments is part of BSP’s commitment to continuously institute reforms that will promote a stronger banking system,” said Tetangco.

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Structural changes in SSS to allow for more benefits

Roy — Wed, 06 Apr 2011 16:10:44 +0000

Social Security System (SSS) is set for some structural changes in order to provide for more benefits. SSS president and chief executive Emilio de Quiros Jr. said Filipino workers and pensioners have sought meaningful benefits for the past many years, which is not possible unless the pension structure is updated.

He said, “The SSS operates on the principle of forced savings and cross-subsidy to enable workers to accumulate savings for retirement. But the present system has impediments that hinder the workers from saving more.”

The state-run social security agency has already started consultation meetings with labor representatives, employees’ groups and other stakeholders on upgrading benefits, which would require boosting revenues from contributions.

The current contribution rate for SSS is 10.4 percent of the monthly salary. This is less than half of the rate in the public sector under the Government Service Insurance System (GSIS) which is 21 percent of the monthly salary. The average contribution rate among Asian countries is 23 percent and 35 percent among European countries.

The SSS chief said they plan to raise the contribution rate by 0.6 percent to 11 percent of the monthly salary, which would be equally shared by employers and employees. De Quiros said this move would add seven years to its fund life and provide leeway for benefit enhancements.

He also said that the maximum monthly salary credit will be increased to P20,000 from the present P15,000, to enable workers with bigger salaries to save up for retirement through higher contributions. The maximum salary credit is the ceiling that serves as basis for contribution payments.

De Quiros said that without structural reforms, benefit increases would strain and shorten SSS’s actuarial life, which at present is projected to last until 2039, according to the 2007 actuarial valuation. He added that the increase would allow a P500 one-time grant to pensioners, 10 percent across-the-board increase in pension, and higher computed benefits for active members.

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New guidelines for BIR’s authorized agent banks

Roy — Thu, 31 Mar 2011 19:52:57 +0000

New guidelines for all authorized agent-banks have been issued by the Bureau of Internal Revenue (BIR) as part of preparations for the 2010 income tax filing season. The new guidelines is requiring all authorized agent-banks to be open for two Saturday immediately prior to April 15 of every year and extend their banking hours from 3 p.m. to 5 p.m. from April 1. This year though, the banks were required to operate last Saturday, March 26, instead to the nearest Saturday before April 15 (April 9), because it was a national holiday.

The BIR also simplified some tax filing and payment procedures of the authorized agent-banks starting April 1 to 15. Banks are required to stamp an acknowledgement receipt only to three copies of income tax returns (ITRs). For corporations and juridical persons, banks are instructed to stamp “Received” in at least two extra copies of the attached audited financial statements for filing with the Securities and Exchange Commission (SEC).

Photocopies, electronic and computer-generated BIR forms and returns should also be accepted by banks, provided however that they were “originally filled up” and signed by the taxpayers or their duly authorized representative. BIR also mandates banks to assign additional personnel, tax payment counters and to provide equal treatment to the tax filing and paying public. The bank are also reminded not refuse accepting tax payment from taxpayers who are already within the bank premises and to accept check payments after their cut-off time.

The revenue agency also allowed some government official and employees to file their ITRs with all their authorized agent-banks and BIR Revenue District Office (RDO) other than those where they are registered or “out-of-district” ITRs without penalties or sanctions imposed from March 18 to April 15 only. Members of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP), and public school teachers, professors and instructors need only to present their government ID or other proof to show that they are members of the said government organizations to any authorized agent-banks or BIR office.

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LTFRB warns those who will join the transport strike

Roy — Tue, 29 Mar 2011 02:50:17 +0000

The Land Transportation Franchising and Regulatory Board (LTFRB) wants to immediately put their foot on the planned transport holiday of Jeepney operators on Thursday. The LTFRB warns those who will on the jeepney strike could suffer the same fate as some bus operators.

The agency was referring to the fate of bus operators whose franchises were either cancelled or suspended over a wildcat strike last year. LTFRB board member Manuel Iway said jeepney operators should not use the planned transport strike just to air their grievances.

Iway mentioned that LTFRB either cancelled or suspended the franchises of bus firms whose units were found to have participated in the strike last year because they want to be excluded in the number-scheme. “Their services are need by the riding public,” he said.

Influential transport group PISTON made an announcement that it would lead a nationwide strike to protest against oil price increases. Quick to react, Iway said LTFRB will be sending people to around on the day of the planned strike assess the effect of the transport holiday on the commuters. “If there will be fewer jeepneys or none on the roads, we will conduct an investigation on these jeepney operators,” he said.

He warned is such a scenario happens, the agency will send show cause orders to the jeepney operators for them to explain why they should not be sanctioned. The LTFRB executive also said they have coordinated with the Metropolitan Manila Development Authority and the Philippine Army to have vehicles on standby during the planned transport holiday, just in case there is a need to ferry affected passengers on that day.

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Big 3 raised diesel price by P0.60 a liter

Roy — Tue, 22 Mar 2011 20:46:00 +0000

As some small players reduced their prices of gasoline by P1 a liter last Monday, the big 3 oil firms in the country raised their diesel. Chevron Philippines, Pilipinas Shell Petroleum Corp., and Petron Corp. raised their by P0.60 per liter their diesel prices as of 6:00 a.m. on Tuesday.

However, just like their small players counterparts, the “Big Three” oil firms also reduced the price of their regular gasoline by P1 per liter too. As of March 15, gasoline was sold at P52.25 to P57.96 per liter, while diesel was sold at P44.65 to P46.65 per liter.

Meanwhile, in a separate report, the Petron Corp. assured the public that it will be investigating the alleged liquefied petroleum gas leak on Monday at one of its AutoLPG dispersing pumps in Sta. Cruz, Manila. In a statement issued on Tuesday, Petron said, “We immediately dispatched our safety and environmental team onsite. Our service stations are equipped with several safety features including an automatic shut off of the pipelines once there are changes in pressure along the line. This safety feature was immediately triggered and shut down the LPG pipeline.”

Petron Corp. followed a standard operating procedure (SOP) by cordoning off the area where the leak was reported. It also shut down all possible sources of ignition, like the electrical light. The company’s personnel have already coordinated with Bureau of Fire Protection and Philippine National Police regarding the matter.

“The leak was contained immediately. Our engineers have detected the source of the leak and is in the process of replacing the defective pump. There is no longer any danger to people and property. We wish to assure the public that we will fully investigate the incident,” Petron said