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JG Summit earmarked $700 M for its 2011 expansion

Roy — Fri, 06 May 2011 01:00:57 +0000

JG Summit Holdings Inc. is earmarking $700 million for the planned expansion this year. Most of these funds are allocated for its petrochemical and airline businesses.

JG Summit president Lance Gokongwei said the petrochemical business will be the company’s priority in the next three years. JG Summit also has stake in a property developer and may expand into power generation.

With sale of its stake in Digital Telecommunications Philippines Inc. (Digitel) to Philippines Long Distance Telephone Co. (PLDT), the company will also be able to cut its debt by $600 million, giving it “more room” for fund-raising. Also the asset sale is said to be “strategically good for JG Summit because it frees up capital that the company can invest in ventures that potentially will pay a higher return.”

Gokongwei said after the sale of its Digitel stocks to PLDT, “We will be very lightly leveraged. We will have a very good balance sheet.” According to data compiled by Bloomberg, JG Summit has bonds and loans worth P69 billion.

Last December, JG Summit said it may sell 31 percent of its stake in Cebu Air Inc. to fund expansion and pay debt, however, after the Digitel-PLDT deal, the company will have “no immediate” need to sell shares. JG Summit is the majority owner of Cebu Air, the country’s biggest budget carrier.

Gokongwei said JG Summit will invest about $200 million in a naphtha cracker plant worth $700 million that may start operations by 2013, snack and iced-tea maker Universal Robina Corp. may spend $80 million to $90 million, property unit Robinsons Land Corp. will spend as much as $200 million on capital expenditure this year, while Cebu Air will spend around $200 million.

JG Summit also plans to bid for airport projects that the government will be opening to companies for investment, and is mulling to build a power plant for its petrochemical business, said Gokongwei.

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Aquino not keen on new taxes

Roy — Wed, 04 May 2011 12:25:21 +0000

President Benigno “Noynoy” Aquino III is not keen on new taxes just to increase the income of the government, instead he said that existing tax exemptions or incentives should be reviewed. Aquino said that rationalization plan for fiscal incentives is being discussed and stressed that the government would continue on its efforts to increase revenues by improving tax collections.

“At this present time, none of my economic managers are indicating that there is such a need (for new taxes). And again, the priority still is improving the tax collection efficiency,” the president said. He also mentioned of a pending bill aiming to lift certain tax exemptions to address the need for a better system of collection and noted that some of the incentives are “outdated, not realistic,” compared to the others being given by the government.

The president said he already ordered his economic managers to study and review the fiscal rationalization plant of the government as well as tax incentives already given to multi-national companies in order to improve tax collection.

The International Monetary Fund (IMF) urged the Philippine government to broaden its tax base and strengthen tax administration by overhauling its excise tax system on sin products and rationalizing its fiscal incentives to raise much needed revenue to bankroll social and infrastructure spending. The IMF said this is crucial to the Aquino administration’s commitment to trim the budget deficit to two percent of gross domestic product starting 2013 from the current level of 3.3 percent of GDP.

The IMF’s latest Public Information Notice dated March 1 reads: “Achieving the deficit targets and increasing social and infrastructure spending will require substantial revenue efforts, including broadening the tax base and strengthening tax administration.”

The executive board of the IMF recommended early actions to reform excise taxes, rationalize fiscal incentives and address gaps in the value added tax (VAT), complemented by reforms to strengthen the budgetary framework, and control of the civil service wage bill.

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Osama Bin Laden killed by US forces

Roy — Mon, 02 May 2011 05:41:27 +0000

The al-Qaeda founder and leader Osama Bin Laden was reported to have been killed US forces in Pakistan. US President Barack Obama reported that Bin Laden was killed in a mansion outside Islamabad following a joint operation of the US military and Pakistani forces. Obama said after the “firefight,” the US forces took possession of his body.

The death of Bin Laden came almost 10 years after the US government spearheaded the manhunt operation against him following the 9/11 attack, leaving nearly 3,000 Americans dead. The notorious al-Qaeda leader was accused of being behind the number of atrocities, including the attacks on New York and Washington on September 11, 2001.

Obama said that he earlier authorized a special operation to get Osama, “Today, I ordered an operation to get Osama and bring him to justice. After a firefight, a small team of special action force killed Osama and took custody of his body.”

The US president thanked the Pakistani government for its cooperation in the operations.

Obama said he was briefed in August last year of the possible location of Bin Laden, which was a compound outside the capital of Pakistan.

Crowds gathered outside the White House in Washington DC were cheering and waving flags. Some were singing the “Star Spangled Banner” and some were chanting “USA, USA” when Obama made the announcement.

Meanwhile, the US has put its embassies around the world on alert for a possible al-Qaeda reprisal attacks following the death of their leader.

Former president George W. Bush described the news as a “momentous achievement.” He said, “The fight against terror goes on, but tonight America has sent an unmistakable message: No matter how long it takes, justice will be done.”

While another former president, Bill Clinton said, “This is a profoundly important moment not just for the families of those who lost their lives on 9/11 and in al-Qaeda’s other attacks but for people all over the world who want to build a common future of peace, freedom and cooperation for our children.”

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Clark airport to get a boost from US lawmakers

Roy — Mon, 02 May 2011 04:20:52 +0000

During their visit to the Clark airport, president and CEO of Clark International Airport Corp. (CIAC) Victor Jose I. Luciano asked the two US senators for help in the transformation of Clark airport into an “aerotropolis” that will bring in investors from the United States.

US Senators Daniel Inouye of Hawaii, President Pro Tempore of the US Senate, and Thad Cochran of Mississippi, both members of the committee on appropriations, were at the CIAC corporate offices recently and made a quick tour at the expanded Terminal 1 of the Clark International Airport.

Luciano made a presentation to the two senators at the CIAC Boardroom where he pointed to them the development of a logistics and services hum in the Clark airport area which was patterned after the logistics hub in Dallas Forthworth, Texas where the development of two cities created an “aerotropolis.”

Luciano said, “The airport-driven economic powerhouse brought in hundreds of companies around the airport in Dallas. This is where we would like to seek the US government to help us plan to make the Clark Civil Aviation Complex an aerotropolis.” He asked the two senators to help promote Clark to American investors.

Senator Inouye said Luciano should join the APEC meeting in Hawaii this year to make a pitch for the development of Clark airport and make same kind of presentation he showed to them. This year’s annual APEC Leader’s Meeting will be held in Honolulu, Hawaii in November.

The two US Senators visited the Philippines to look into the transformation of the two former US military bases, the Clark Air Base in Pampanga and the Subic Naval Base in Olongapo, and see how they were turned into productive civilian use.

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President Aquino’s Labor Day announcements

Roy — Mon, 02 May 2011 00:28:44 +0000

A mix of wage and non-wage benefits for the country’s workforce was announced by President Benigno “Noynoy” Aquino III on Labor Day.

The president said over a million government workers can receive another salary increase in June, or a month earlier than schedule, due to the government’s prudent fiscal management. For the private sector, he gave instructions to the regional wage boards to hasten deliberations on proposed salary adjustments for workers in the private sector within this month.

Aquino also announced a P4.23-billion rice subsidy program and P2-billion in farms implements support for small farmers and fishermen, totaling over P6.23 billion.

He made the announcements during the breakfast dialogue with representatives of public and private labor groups and employers to mark Labor Day at the Palace. During the said breakfast meeting, the president offered a quarterly dialogues with labor groups and employers to find solutions to the concerns of the industry, as well as craft better labor policies.

Aquino stressed that his administration is working hard to address the concerns of the labor sector for higher pay and improved benefits, although he admits that these cannot be solved overnight.

As for the public employees he said, “Government workers will have a salary increase this June, and not July. We advanced the release by a month because I know this will be a big help especially as school enrolment approaches. We won’t postpone this if we can afford to give it today. That’s our promise from the start, and that will remain our policy,” he said in Filipino.

The salary increase for state workers is originally scheduled on July, it the third tranche under the Salary Standardization Law (SSL) 3. Aquino said the early release of the wage increase for government workers was made possible due to government savings.

For the employees in the private sector, Aquino said the wage board in the National Capital Region is expected to make a decision on proposed wage adjustment next week, while other regional wage are expected to issue their decision this month. “We cannot promise that within the month everybody would be finished but we will be pressing them to finish within the month,” he said.

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Binay’s recommendation on Marcos’ burial at Libingan ng mga Bayani out next month

Roy — Sun, 01 May 2011 19:51:17 +0000

Vice President Jejomar Binay was tasked to make a decision whether or not the late dictator Ferdinand Marcos will be allowed to be buried at the Libingan ng mga Bayani. The vice president said he hopes to submit by next month recommendation on the proposal to bury the former president at the Philippines’ national heroes’ cemetery.

Binay said he is still collating the opinions of different groups before he submits his opinion on the issue. He said the Office of the Vice-President is still waiting for the official position of the registered political parties, civic groups and people’s organizations.

“We want to take into account the views of all sectors and groups. We want to encourage people participation in decision-making,” Binay said, adding that commentaries published in newspapers have also been taken into considerations.

The vice president said that more than 3,000 Filipinos worldwide have responded to the survey conducted asking respondents their opinions about the proposal to give Marcos a hero’s burial. As of April 15, Binay said his office received 3,115 replies of which 2,139 were sent through text message and 976 were sent through email.

“We are interested in getting the people’s opinion on the issue, not to count how many agreed or disagreed. We do not tally how many voted yes or no. The survey is intended to get the people’s sentiments so we could formulate and give the best recommendation to President Aquino,” he said.

The Vice-President said he hopes to conclude the survey and submit his recommendation to President Aquino next month Some 218 congressmen have already affixed their signatures in support of the resolution, but Binay apparently now has the final say.

Those allowed to be buried at the heroes’ cemetery are the military personnel who died in the line of duty or were honorably discharged from the service, Filipino war veterans, former presidents, dignitaries, statesmen and National Artists. The remains of widows of former Philippine presidents, secretaries of national defense and Armed Forces chiefs of staff are also authorized to be interred in the same plot where their husbands are buried.

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Philippine-China trade and conference fair set on June

Roy — Sun, 01 May 2011 08:56:27 +0000

The China Council for the Promotion of International Trade (CCPIT)-Guangzhou and Philippine Chamber of Commerce and Industry (PCCI) recently signed a cooperation agreement to co-organize the Manila-Guangzhou Trade and Investment Conference slated to be held on June.

The event, which is aimed to further boost the Philippine-China trade and investment relations, is expected to gather around 500 business leaders, industry captains and government officials from both countries.

Part of the activities of the conference will be a product promotion through a virtual trade fair which would feature top export products of China, and business matching activities. There will also be office and factory visits to be arranged for the estimated 200 businesses and industry leaders comprising the Chinese delegation.

PCCI President Dr. Francis Chua said, “The Philippines and Chinese’ economies are open to mutual cooperation in trade and investments. While initially, the idea behind the conference is to promote Chinese-manufactured products for export to the country, we are making it a point to ensure that local enterprises and industries get maximum exposure and gain from the visit of top-level Chinese businessmen. That is why we are arranging business meetings and site visitations on the sidelines of the conference.”

China is the country’s top trading partner with export receipts reaching US$51.39 billion in 2010. Data from the National Statistic Office (NSO) show that the combined markets of China and Hong Kong in 2010 accounted for about 19.52 percent of the Philippines’ total exports.

Guangzhou Vice President of CCPIT Madame Li San Jian said, “China is a very big market. With increasing domestic demand and infrastructure development, Philippine export products such as mineral-and-metal-based resources as well as processed and fresh food products can easily gain entry into the Chinese market.”

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Gutierrez quits Ombudsman post before impeachment trials begin

Roy — Fri, 29 Apr 2011 06:46:34 +0000

The resignation of Ombudsman Merceditas Gutierrez is now trending on the internet. Gutierrez was said to have submitted her letter of resignation to President Aquino, 10 days before the schedule of her Senate impeachment trial which was set to begin on May 9. Interior Secretary Jesse Robredo said Gutierrez personally handed her resignation letter to the president before noon Friday.

Robredo refused to identify the person who informed and just said that the source is someone from the palace, and told reporters that there were many of them who have been informed about the resignation.

Gutierrez’s resignation effectively made the impeachment case filed against her before the Congress moot and academic. Senator Francis Pangilinan said, “A resigned official can no longer be removed by impeachment. Her resignation however does not prevent the state from pursuing criminal cases should there be sufficient grounds to do so.”

Senators and the congressmen who were supposed to prosecute Gutierrez were preparing for a trial which was expected to last for several months and would have revisited corruption cases against former president and now Pampanga congresswoman Gloria Macapagal Arroyo. The House of Representatives impeached Gutierrez in March, elevating the case into a Senate trial.

Pangilinan earlier had asked Gutierrez to resign even before the impeachment proceedings reach the Senate because the trial will only bring the legislative process to a “standstill.”

The articles of impeachment that were filed against Gutierrez were as follows:

(1) the Office of the Ombudsman has performed dismally as shown by the low conviction rate during her term;
(2) the unreasonable failure to take prompt and immediate action on complaints filed against various public officials, including Arroyo and her husband Jose Miguel Arroyo regarding the controversial NBN-ZTE broadband project;
(3) the inexcusable delay of the Ombudsman in conducting and concluding its investigation into the wrongful death of Ensign Philip Andrew Pestaño aboard a Philippine navy vessel;
(4) inaction on the Fertilizer Fund Scam;
(5) inaction on the Mega Pacific deal on the purchase of voting machines; and
(6) inaction on the “Euro Generals” issue.

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No wage increase announcement on Labor Day

Roy — Thu, 28 Apr 2011 17:37:41 +0000

The much anticipated announcement on Labor Day will not be heard this coming May 1. Secretary Rosalinda Baldoz of the Department of Labor and Employment (DOLE) clarified that there will be no announcement of wage increase on May, despite Malacañang’s pronouncement before that it is coming out with a Labor Day gift to help workers cope with the rising prices.

Baldoz said she has no idea what good news President Aquino was referring to but she was definite there won’t be any increase in salary because the earliest public hearing was set on May 2. She also noted that Aquino had already declared he would leave the decision on salary adjustments to the regional wage boards although he could give instructions to hasten the process.

But she assured workers that the wage boards could grant a salary increase within the month. “I think within the month of May, they should be able to finish the deliberation and come out with their decision,” Baldoz said.

Other officials from the labor department said the president could be referring to a package of non-wage benefits when it made the announcement that good news would be delivered on Labor Day. “The president I think would be announcing non-wage benefits for workers such as discounts and other assistance they would provide to help workers cope with the high cost of commodities,” said a labor official.

The labor department will be having a Jobs and Livelihood Fairs which will take place simultaneously all across the country on Labor Day. There are more than 100,000 jobs available In Metro Manila, which will be held at the Rizal Park, there are 200 companies and recruiters who will be offering 30,000 jobs to new graduates, displaces OFWs and other jobseekers. DOLE is encouraging job applicants to pre-register at the website of PhilJobNet to facilitate processing of application of the Labor Day job fair.

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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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SSS reports payments of benefits for 2010 up by 7%

Roy — Fri, 22 Apr 2011 08:06:03 +0000

The Social Security System (SSS) reported that its benefit payments for 2010 has increased by 7% to P77.17 billion, with the bulk of the payment going to retirement claims and death benefits. SSS president and chief executive officer (CEO) Emilio de Quiros Jr. said in a statement that the state-run agency paid P38.23 million to more than 800,000 retiring members last year while another P27.65 billion went to death benefits of families of about 740,000 members.

De Quiros said, “SSS entitles workers to many types of benefits. Monthly contributions help members save for retirement and give them a safety net during contingencies that disrupt their capacity to earn.” The pension fund provides retirement, sickness, maternity, disability, death and funeral benefits. Membership to pension fund is mandatory for private sector employees and self-employed workers.

The pension fund chief earlier proposed an increase of 0.6% in the contribution rate to 11% and P5,000 increase in the maximum monthly salary credit. De Quiros said that if his proposal is approved, the adjustment would allow the agency to implement a 10% across-the-board pension increase, give pensioners a P500 one-time grant, as well as hike other benefits.

“The average monthly pension is about P3,500 and we want pensions to be nearer the amount of their last salary. Members are being deprived of proper benefits because of limitations in the SSS structure, which we are now trying to adjust gradually,” he said. “The small steps we are taking are also directed toward a perpetual SSS fund life. The proposed reforms would add 7 years to the SSS fund life, extending in from 3029 to 2046,” he added.

De Quiros also noted that the contribute rate being used the pension fund is much lower than that being used by the Government Services Insurance System (GSIS) which is 21%.

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Artists to hold free concerts for militaries

Roy — Tue, 19 Apr 2011 10:24:14 +0000

To cheer up the soldiers and help them get their mind off the corruption scandal involving former top military officials, a group of celebrity singers will perform in various military camps.

Led by the current president of the Organisasyon ng Pilipinong Mang-aawit (OPM) Olgie Alcasid, the group composed of Vice-president Noel Cabangon, Cookie Chua and Mitch Valdes, will start their free concerts at the Armed Forces of the Philippines (AFP) headquarters in Camp Aguinaldo on April 27, together with the pop band Syato Banda. The concert is dubbed “Himigsikan 2011: ROCKrakan para sa Kapayapaan.”

Performing with the celebrities on the stage will be three military bands – the Philippine Marine Corps. Combo, the Philippine Navy Seabees, and the Philippine Air Force 710th SPOW Combo. Together with them on list is Navy Lt. Chat Alvaro.

The OPM president said they’d rather entertain soldiers than join noisy anti-government protests. Alcasid said he thought of the idea of entertaining soldiers in February to boost their morale after learning how troop morale had been affected by a corruption scandal involving former AFP chiefs of staff.

“It must be difficult for them. It’s just our way of saying, we performers, we artists, we’re here for you. We are behind you. We support you, we support the new leadership and let’s start anew,” Alcasid said. He added the performers also planned to visit at least two other camps.

AFP Deputy Chief of Staff for Operations (J3) Brig. Gen. Jose Mabanta Jr. welcomes the gesture by the OPM officers. “This is a big booster. You know we’ve been getting it from all sides and we certainly appreciate this. We are really happy that friends are helping us.” He admitted that the corruption scandal had affected the troops.

The Camp Aguinaldo concert will be held on April 27, 2011 at 6 p.m. at the AFP grandstand. The event will be kicked off by a multicultural gathering and a “boodle fight” among 100 delegates from Muslim youths, indigenous people, Christians and young officers.

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Nograles resigns as PDIC head

Roy — Sun, 17 Apr 2011 18:07:11 +0000

At the height of the controversy surrounding the closure of the Aguire-led Banco Filipino Savings & Mortgage Bank, Philippine Deposit Insurance Corp. (PDIC) president Jose Nograles has resigned from his post as head of the state-run deposit insurer.

Sources were quick to clarify that the decision of Nograles to quit was not in any way connected to the issue of Banco Filipino that was ordered closed by the Bangko Sentral ng Pilipinas (BSP) and placed under PDIC receivership last March 17.

Reports say he submitted his resignation letter to the President, citing “differences in policies,” through Finance Secretary Cesar Purisima last Friday. He will stay in office until end of May this year only. He has gone on a 2-week leave from the agency. Nograles term would have ended in 2012.

According to some reports, the PDIC chief has been reportedly unappreciated by some members of the president’s economic team. He was also unseated earlier this year as director of the United Coconut Planters Bank (UCPB).

Under his stewardship, the PDIC became an ISO-certified agency for claims settlement operations, which a first in its history. Nograles is also credited for a number of policy and strategy innovations in the agency, such as amending the agency’s charter that strengthened its regulatory powers over banks, as well as increasing the maximum deposit insurance coverage to P500,000 from P250,000 per depositor.

During his term, the PDIC was able to ensure the stability of financial system from the aftermath of the global financial crisis in 2008, which resulted in a number of bank closures. The most notable of which was PDIC’s handling of the Legacy bank fallout.

Before his term as PDIC head, he was a senior executive vice-president of Land Bank of the Philippines. Nograles was an appointee of former President and now Pampanga Rep. Gloria Macapagal-Arroyo as PDIC president in 2008. He is the brother of former House Speaker Prospero Nograles who used to head the House contingent in the Commission on Appointments.

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Splash reported 500-percent growth in 2010 profit

Roy — Wed, 13 Apr 2011 12:36:54 +0000

Splash Corporation reported its profit up to 500 percent to P144 million in 2010 from P23.74 million in 2009. The leading personal care manufacturer reported to the Philippine Stock Exchange that its big financial figures last year can be attributed to its strong performance across all its business segments – domestic, international and direct selling.

Splash president Eric Domagas said, “We posted higher net income due to efficient use of plant assets, tighter control on expenses, (and) launch of our new products.” He added, “We are confident that the company will continue to post double digit growth this year. We believe in the continued growth of our direct selling and international business segments.” Net sales for 2010 were recorded at P2.99 billion, up by 9.8 percent from 2009’s P2.72 billion.

The company’s capital expenditures in 2010 were registered at P69 million, from a previous P21.3 million in 2009. For 2011, the company’s board approved higher capex amounting to P426 million, most of which will be spent for plant capacity expansion, improvement of facilities and enhancement of information systems for international and direct selling operations.

Splash’s skin whitening captured the growth in product sales in 2010, reaching P1.3 billion, followed by skin exfoliants at P1.04 billion and hair products at P542.3 million. International operations recorded net sales of P407.98 million last year, up by 67.5 percent from P243.58 million in 2009.

The company has also set up subsidiaries and offices in the Middle East, Indonesia and Asean region, which helped it gain a foothold in international sales. Meanwhile, direct selling business recorded a big growth in net sales reaching P40.8 million last year from P3 million in 2009.

Splash direct selling head Glenda Pingol said, “Splash direct sales will be very aggressive in its effort to build its pioneer network for the year 2011.”

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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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Binay’s wife cleared of graft charges

Roy — Tue, 12 Apr 2011 07:35:21 +0000

The P58-million graft case filed against former Makati City Mayor Elenita Binay, together with five other respondents, has been dismissed by the Sandiganbayan ruling that the evidence was not sufficient to prove alleged overpricing of furniture for the Makati City Hall. The anti-graft court’s second division said there is insufficient basis for the trial of the wife of Vice President Jejomar Binay. The former mayor was implicated in the alleged overpriced purchase of furniture worth over P58 million in 2000 to 2001.

Likewise, Binay’s fellow respondents, former city administrator Nicanor Santiago Jr., general services department head Ernesto Aspillaga and private defendants Li Yee Shing, Jason Li and Vivian Edurise of the private company Office Gallery International Inc. were cleared of the charges.

Sandiganbayan Presiding Justice and second division chair Edilberto Sandoval said the prosecution failed to present enough evidence to eventually prove guilt beyond reasonable doubt. “This court is duty-bound to spare the accused from the unnecessary burden, expense and anxiety of having to defend themselves in public trial,” the 69-page read. “The admission made in open court early on by the prosecution that the information they filed in this case does not conform with evidence on record foretold a bleak conclusion to this case.”

Prosecutor Rodrigo Coquia supposedly confessed that the charge sheet against Binay was unclear about where the accused were charged with causing undue injury to the government of giving unwarranted benefits to a private firm. The Sandiganbayan said the testimony that the alleged overpricing was found only by simply comparing the layout plan with the purchase request and purchase order is not strong enough.

“It is beyond belief that the prosecution came to court with evidence comprising merely a bare comparison of the number of partitions purchased,” the anti-graft court said, adding that there was not even a confirmatory physical count of the partitions that were actually used for the furniture for city hall. The ruling stressed “In the face of the weakness of the prosecution’s case to prove the elements of the offense charged against the accused, there remains no further reason to hold them for trial under the present indictment.”

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Aboitiz group earmarked P49 B for its 2011 Capex

Roy — Mon, 28 Mar 2011 12:16:24 +0000

A total of P49 billion for its capital expenditures (capex) this year is being allocated by the Aboitiz Equity Ventures Inc. (AEV), the bulk of which will be used to fund its proposed coal-powered projects. According to company senior vice president and chief financial officer Stephen G. Paradies, P46 billion of the capex would go to Aboitiz Power Corp. (APC). “This is inclusive of the share of our partners in those power businesses where we have partners. So if you take just our proportionate share of APC, it amounts to P24 billion,” he explained.

Paradies said that the planned capex for APC would be used for the construction of a 300-megawatt coal-fired power plant in Subic, which will be done with their partner. He added that it is being considered that the capacity of the project would be increased to as much as 600 MW, and therefore, the project cost would increase too.

The APC was, according to Paradies, was planning to raise as much as much P51 billion in borrowings to specifically fund two power projects over the next few years. He explained earlier that the company would start arranging syndicated loans for its coal power projects in Subic and Davao starting on the second half of 2011.

For Subic, the planned borrowing could either be P17 billion, if they would stay with the original 300-megawatt coal facility, and P34 billion should they decide to pursue the increased 600-megawatt capacity. For its Davao facility, APC was looking at raising P17 billion for a proposed 300-megawatt coal fired power plant.

The amount cited though, as Paradies clarified, included only the debt portion of the planned projects and would be drawn down by APC in tranches over a certain period. He said for these borrowings, the company was looking at longer tenors of about 12 years.

The Subic coal facility is expected to start construction within the year, according to APC president and chief executive officer Erramon I. Aboitiz, who said that the company was already finalizing its engineering, procurement and construction contracts with Formosa Heavy Industries.

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Senate doctors said Ligots are fine

Roy — Thu, 24 Mar 2011 06:50:10 +0000

Upon the order of Senate President Juan Ponce Enrile, Senate doctors, led by Dr. Mariano Blancia Jr. went to the Ligot couple’s residence to check the true health status. They proceeded to house of the Ligots in an “undisclosed” location to check if their declaration of “being sick” were true.

The doctor said former military comptroller Jacinto Ligot and her wife Erlinda were in good health and were not “sick” like their lawyer said in the letter sent to the Senate making them unavailable to attend the Senate hearing today.

Because of this, the Senate Blue Ribbon Committee chairman Teofisto Guingona III recommended that the couple be cited for contempt. “I recommend that they be cited for contempt and their commitment orders be issued,” he said. He added that the Senate needs nine votes to detain the couple at the Senate.

Dr. Blancia said, “During our examination to Mrs. Ligot, all our findings were normal,” he also noted that Mr. Ligot was in good condition, and that his claim of suffering from flu earlier was a self-proclamation. Biance cited that Mrs. Ligot consulted here physician yesterday where she was diagnosed for severe palpitation, acute gastroenteritis and diarrhea. “But they could have attended the hearing today,” the Senate physician proclaimed.

Earlier, a letter was sent by the couple’s lawyer, Rafael Zialcita, to committee chairman Guingona about the health condition of the couple, asking for understanding because they won’t be able to attend the hearing. Zialcita’s letter read, “We regret to inform you that our clients will not be able to attend today’s hearing. We have been informed by our clients last night Mrs. Ligot is apparently suffering from severe palpitation and acute gastroenteritis,” and further continues, “As for retired Lieutenant Colonel Jacinto Ligot, he likewise can’t attend as he is now down with flu.”

Enrile, who was disappointed on the no-show stunt by the Ligots, requested the Senate doctors to go to them and check their “true health status.”

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Execution of 3 Filipinos in China set on March 30

Roy — Wed, 23 Mar 2011 23:31:55 +0000

The Philippine government wasn’t able to do much to alleviate the plight of the three Filipinos who were caught for drug smuggling in China. They have been sentenced to death and the date of their execution would on March 30, 2011.

According to Department of Foreign Affairs (DFA) Spokesman Ed Malaya, the Fujian People’s Court and Guangdong High People’s Court informed the Philippine Consulates General in Xiamen and Guangzhou that the death penalty will be carried out on Ramon Credo and Sally Villanueva in Xiamen, and Elizabeth Batain in Shenzhen. They will be executed via lethal injection.

Arrangements are being made now for their families to be able to depart for China and see their loved ones for the last time. President Benigno Aquino III have been apprised of the execution date, his deputy spokesperson said Filipinos would have to respect Chinese law.

The three apprehended for carrying heroin, on different occasions, upon their arrival to China; Credo, 42, was arrested on December 28, 2008 at the Gaoji International Airport in Xiamen for 4,113 grams of the prohibited substance; Villanueva, 32, on December 24, 2008 also in Gaoji Airport for carrying some 4,410 grams; and Batain, 38, at the Shenzhen Airport with 6,800 grams.

Smuggling 50 grams or more of heroin, or equivalent drugs, is punishable with death penalty by lethal injection under Chinese law.

The original execution dates of the three Filipinos were February 20 and 21, but was postponed as a result of the humanitarian visit to Beijing of Vice President Jejomar Binay on February 18. During his visit, Binay expressed the Philippines’ respect for Chinese law and “the verdict of the Supreme People’s Court” on the cases.

Malaya stressed that the Philippine government did everything it can and provided the three Filipinos all possible legal and consular assistance it need. He said the government their legal rights were respected and observed, and that their welfare protected from the time of their arrests and throughout the judicial process, up to this very day.

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House of Representatives voted for Ombudsman’s impeachment

Roy — Tue, 22 Mar 2011 03:23:37 +0000

After eight hours of marathon debates, the House of Representatives voted 212-46 for the impeachment of Ombudsman Merceditas Gutierrez. Four abstained from voting. The House impeached Gutierrez, eight months since the first of the two impeachment complaints was filed against her in July.

Among those who voted “no” were former president and now Pampanga Representative Gloria Macapagal-Arroyo, Navotas Rep. Toby Tiangco, Camarines Sur Rep. Rolando Andaya and Deputy Speaker Jesus Crispin Remulla. Most of the “no” votes came from the opposition bloc.

House Speaker Feliciano “Sonny” Belmonte, Cavite Rep. Lani Mercado-Revilla, wife of Sen. Bong Revilla and Las Piñas Rep. Mark Villar, son of Sen. Manny Villar were among those who abstained from voting.

At the start of the plenary debates at 5 p.m. yesterday, 212 congressmen, majority of which are from the administration bloc, were already present to ensure they have sufficient votes for the articles of impeachment to make Gutierrez stand trial in the Senate. Only 95 votes were needed to send the articles of impeachment to the Senate.

Gutierrez is accused of betrayal of public trust for allegedly sitting on major corruption and human rights cases involving Mrs. Arroyo and some of her officials.

Ilocos Norte Rep. Rodolfo Fariñas, vice chairman of the House justice committee, said in his sponsorship speech seeking a favorable vote for House Resolution 1089 to send the articles of impeachment to the Senate, “We need to impeach and make Gutierrez accountable. Why? Because she herself said that our impeachment proceedings are farcical.”

Iloilo Rep. Niel Tupas Jr. said the impeachment is the “will of the sovereign people” and dismissed allegations that the Aquino administration had a hand on it. “It was a product of complete impeachment proceedings, a first in our nation’s history. Despite initial setbacks… no short cuts were taken and every procedure was diligently observed,” he said.

“I ask my distinguished colleagues to join me in making history today, and stand up and rise to the challenge of performing our constitutional duty as the true representatives of the people,” he added.