Issue No. 119, Volume III • Oct. 26-28, 2012
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THE Department of Energy (DOE) and Xavier University (XU)-Ateneo de Cagayan has launched a new research project on bioethanol production. The DOE commits to fund the university’s study on “bioethanol production potential on different cassava varieties under Northern Mindanao condition and the development of a pilot-scale cassava bioethanol plant.” Greg M. Cubio, officer-incharge of Xavier Agricultural Engineering Department, said the launching ceremonies was highlighted by the signing of the memorandum of agreement, releasing of funds to XU and the preliminary testing of gasolineethanol fueled engines.
By IRENE DOMINGO, Reporter
HE province of Bukidnon is now being eyed as the country’s top coffee growing area with its rich soil, ideal altitude and well-suited climate for the production of quality Robusta coffee beans.
Recognizing the province’s potential, coffee firm Nest lé Ph i l ippi nes Inc. (NPI) has partnered with the Northern Mindanao Agricultural Research Centre (NOMIARC) of the Department of Agriculture regional field office 10 (DA-10) in the
production and distribution of high-quality Robusta plantlets and cuttings, bringing the coffee plants closer to small-farmers in Bukidnon and nearby provinces within the region. Speaking at the sidelines at the recent 19th DA-NO-
MIARC Farmers’ Field Day and Technology Forum in Malaybalay City, Bukidnon, Nestlé’s agriculture head Arthur Baria said they are looking to tap Bukidnon as a “coffee basket” where Nestlé can directly source high-quality Robusta coffee beans. “There is great potential for coffee-farming in Bukidnon with the province having a firm backbone in coffee production since the early 1960s,” said Baria, adding that Bukidnon is rightly apt to be optimized in the coffee
supply chain to respond to the current supply-demand gap in coffee.” Baria explains that while annual local demand for coffee beans is currently pegged at 64,000 metric tons, the country only produces 20,000 metric tons to respond to the demand, outlining further the reason behind tapping key agricultural areas such as Bukidnon to its base of coffee suppliers. Embarking on a road to expand its coffee-resource base, Baria emphasized that it is imperative that key coffee-
Davao Light signs 100MW supply deal with Therma South
THE labor department is currently pursuing a reform agenda to prevent labor conflicts from becoming full-blown disputes. Lawyer Johnson Cañete, regional director of the Department of Labor and Employment (DOLE) in Northern Mindanao, said in a media forum that one of the flagship programs of the Department is to maintain industrial peace is the singleentry approach (SENA). He said the SENA, which uses conciliation-mediation as a strategy to settle differences, is a better approach towards maintaining the good relationship between the labor and management.
By NELSON V. CONSTANTINO Editor-in-Chief
PATIN-AY, Prosperidad -- Residents from nine barangays in the municipalities of Esperanza, Prosperidad, San Francisco and the lone City of Bayugan now enjoy good roads after rehabilitation and repairs have been completed. The 14-kilometer road that connects the national road junction from Bayugan City to Barangays Cagbas, Saguma, Charito and Gamao which were damaged during the past heavy rains is now passable under all weather conditions. The improvement, rehabilitation and repairs were extended to Barangays San Toribio and Labao in Esperanza town. Another 6.7-kilometer road that connects the national road junction from the national highway in Patin-ay, Prosperidad to Barangay Lucac and Pisaan in San Francisco town was completed.
producing areas have access to coffee farming best practices, including effective and adaptable technologies, to help thousands of small growers realize sustainability and profitability in coffee farming, and eventually help address the gap in supplydemand. “Through this partnership which started in 2010, we have converted a 6-hectare field in NOMIARC into a demonstration farm. We have a mother plant garden where farmers can get Nestle/PAGE 9
Former Las Piñas Rep. Cynthia Villar speaks before campus journalists from different colleges and universities in Northern Mindanao attending the Seminar on Excellence and Ethics in Journalism conducted by the Philippine Press Institute (PPI) held at the BusinessWeek Mindanao Media Center in Cagayan de Oro City yesterday. Villar, now a senatoriable, chairs the Villar Foundation which donated a Sendong Memorial that was unveiled yesterday in honor of those who perished during typhoon Sendong in December 2011. photo by ronald mastail
Power group met to prioritize MisOr electrification roadmap VILLANUEVA, Misamis Oriental -- Energ y f irm STEAG State Power Inc. (SPI) has convened a planning group that will lay down plans to accelerate and prioritize the energization of Misamis Oriental at the sitio
level. During a recent coordinating meeting held at the Mallberry Suites, officials from SPI, the Department of Energy (DOE) and electric distribution utilities Cagayan Electric Power and Light
Company (Cepalco), Misamis Oriental Rural Electric Service Cooperative (Moresco) 1 and Moresco II agreed to prioritize Misamis Oriental as recipient of the electrification fund accruing from power/PAGE 9
MINDANAO’s largest distribution utility, Davao Light and Power Co. has signed a power supply agreement with Therma South Inc. (TSI) to secure the power supply in Davao City and surrounding areas in the medium-term. Under the agreement, Davao Light will receive 100-MW additional capacity once the construction of the 300-MW clean coal power plant of Therma South in Davao City is completed by June 2015. Davao Light EVP and chief operating officer Arturo M. Milan and Aboitiz Power vice president for sales and marketing Roland Gaerlan signed the deal yesterday in Davao City. “We are happy to have earned the confidence of Davao Light and we will do our best to build and deliver our power plant as scheduled. The people supply/PAGE 9
STEAG State Power Inc (SPI) Comrel Manager Ghaye Alegrio (right) reiterates the company’s commitment to help accelerate rural electrification in its host communities in Misamis Oriental during the recently concluded 1st Power Industry Partners Meeting. ( photo provided)
October 26-28, 2012
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Pagadian bags Most Outstanding Chamber of the Philippines 2012 award ZAMBOANGA City -- The Pagadian-Zamboanga del Sur Chamber of Commerce and Industry Foundation Inc. (PCCIFI) scored a milestone since its reorganization in 2006 when it bagged the the Most Outstanding Chamber of the Philippines 2012 award, winning an edge over Olongapo City as its closest contender.
PCCIFI also won the Most Outstanding Chamber in Mindanao award and received both citations in the recently concluded Philippine Business Conference at the Manila Hotel. Pagadian City is the capital of Zamboanga del Sur.
The city is also the regional government center for the Zamboanga Peninsula Region or Region 9. PCCIFI president Mercedes Lourdes S. Quisumbing attributed these awards to “our efforts and the city government under Mayor
Samuel S. Co and partner agencies who contributed much to the success of our programs and activities.” T he biggest i ncomeearner for the chamber was the 20th Mindanao Business Conference on Sept. 7-9, 2011, earning approximately P2.5 million. Simultaneous with the event was the Trade Exhibit with 20 corporate and 10 local exhibitors participating. Quisumbing also said that as part of its “corporate social responsibility, PCCIFI
provided financial support to victims of typhoon Sendong”. Likewise, she said the chamber promoted its advocacy against child labor, ensuring that it will not be practiced in its member establishments. The chamber also initiated the painting of road parking areas along the city’s major thoroughfares and feeding program at Lingap Center, a shelter for abused children. She also said that the PCCIFI played a pivotal role in local economic development and enabled businessmen to have a better interaction leading to faster responses on areas of concern. “We have to continue with what we are doing, we
will institutionalize activities like the Business Week celebration, use of the chamber office as Pagadian Business Center to showcase the city’s products and other advocacies which we have started,” Quisumbing explained. She added that they have organized the Margosatubig Chamber of Commerce in the 2nd district and Molave for the 1st district of Zamboanga del Sur. “We are planning to have a survey of business establishments in urban barangays for the Philippine Business Registry and we’re still looking for partners in this endeavor. “We have observed that new businesses are not registered, only old ones are
renewing. This is one way of bringing more money to the city’s coffers,” Quisumbing said. PCCIFI also conducted the Business Permits and Licensing Streamlining, minimizing the processing to five steps in three hours when it used to be a grueling 15 steps and 30 days to wait for its approval. In short, Quisumbing said the PCCIFI merits the award but it will not rest on its laurels. It will continue to lobby policy reforms, infrastructure development, peace and order, environmental concerns and other issues it deems essential to the development of the city and the province as well. (PNA)
By CARMENCITA A. CARILLO Contributor
“The cooperative was previously chosen as the number cooperative in Southern Mindanao in terms of its net surplus,” Provincial Planning and Development Office Supervising Cooperative Development Specialist Humber Cabunoc said. Cabunoc said the Tagum Cooperative previously had a net surplus of P27.497 million but latest reports show that it now has a net surplus amounting to P86.66 million and total combined assets of P1.7 billion as of August 2012. “We are encouraging residents of Davao del Norte
to become members of the Tagum Cooperative, considering that it has shown proof of good governance and an established financial and recording system,” he said. Cabunoc said that with almost 80,000 members, t he Tag u m Cooperat ive has no external borrowings and relies on its own loan portfolio of P1.35 billion and deposits amounting to P833 million. The Tagum Cooperative, which was previously known as the Holy Name Society of Tagum Parish, was founded in May, 1967 with an P80 capital and several members.
the contract entered into with the Therma Marine Inc. (TMI). Danny Canastra, Dasureco member services department chief said other provinces are experiencing 4 to 6 hours of brownouts in a day. The power generation deficiency from Maria Cristina hydroelectric power plant decreased by at least 380 megawatts
(MW) per memorandum of the National Grid Corporation of the Philippines (NGCP), Canastra said. Other cause of diminishing power supply in Mindanao is the preventive maintenance of the Steag State Power, Inc. in Villanueva, Misamis Oriental which started in October 6. Canastra added TMI only allotted Dasureco some 17.9 MW below the normal average consumption of 32 MW. Bambi Capulong, NGCP spokesman said the Mindanao grid decreased its maximum power supply capacity of 1,000 MW to 865 MW much below of the peak demand of 944 MW, and that the curtailment is within the 300 MW. The cities of Davao and Cagayan de Oro will not experience rotational brownouts as they have their own power sources, Capulong added. The Aboitiz Group of Power Companies is supplying electricity to Davao City from the operation of its two hydroelectric plants in Barangay Sibulan in Sta. Cruz town of Davao del Sur.
Tagum City coop is PH top performing coops
TAGUM City -- The Tagum Cooperative topped the list of the Top 20 cooperatives in Southern Mindanao in terms of net surplus and was also chosen as the country’s most outstanding large cooperative during the 11th Cooperative Summit held in Cagayan de Oro City last week. Next are the Sta. Ana Multi-Purpose Cooperative in Davao City with a net surplus of P24.97 million and the Agdao Multi-Purpose Cooperative with a net surplus of P22.34 million.
Davao Sur to bear brownouts until Nov. By BEN D. ARCHE Correspondent
AMENITIES : ZORBIT * ATV * TREE TOP ADVENTURE BUGGY * BUNGEE * PICNIC GROUNDS PLAYGROUND * CAFE * LUGE * MINI GOLF ROOM ACCOMODATIONS
DIGOS City – The province of Davao del Sur will continue to take the hassles from rotating brownouts until November this year. An official of the Davao del Sur Electric Cooperative (Dasureco) said they implemented the one- hour rotational load curtailment in accordance to
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October 26-28, 2012
Ayala gets deal to sell Volkswagen cars in PH AYALA Corp. is set to bring the Volkswagen brand to the Philippines as the local conglomerate and the Wolfsburg-headquartered German carmaker aim to capitalize on the high-growth potential of the automotive industry.
Isuzu sees sales grow 20% in 9 mos. to Sept. CAR MAKER Isuzu Philippines Corp. saw sales increase by a fifth in the nine months to September, driven by its more popular models, the company said in a statement released in Tuesday. Isuzu saw a 20% rise in its sales from January to September to 8,562 units from 7,136 in the same period last year. The tally covers passenger cars, light commercial vehicles and trucks. The company claimed it also saw its market share
grow to 11% in those nine months from 10% in the same period last year. “The robust sales performance of Isuzu this year is attributed to the Philippine market’s continuous favorable response toward Isuzu products, which have cemented a reputation for being durable, reliable and fuel-efficient, as well as for commanding high resale values,” the firm said in its statement. It added “these traits make
Isuzu models ideal business and family partners.” POPULAR MODELS Isuzu particularly cited sales of its Crosswind models which sold 4,422 units from 3,598 units in the same comparative periods. The company said Crosswind sales accounted for “more than half of the company’s total sales from January to September.” The company also sold 2,072 units of its D-MAX isuzu/PAGE 9
In a disclosu re to the Philippine Stock E x c h a n ge , AC said Europe’s largest carmaker appointed Ay a la Automotive Holdings Corp to distribute Volkswagen passenger vehicles in the country. “We are very excited to bring Volkswagen’s technolog y and engineering expertise to the Philippine market,” said Fernando Zobel de Ayala, AC president and chief operating officer. “This partnership will no doubt enhance our current portfolio of auto brands given the dominant position of Volkswagen in the global automotive market. This will allow us to offer a much wider range of passenger vehicles in the local market, which will reinforce further Ayala’s strong pres-
ence in the local automotive industry,” he said. T h e d i s t r i but or s h ip agreement will expand the Ayala Group’s automotive business. The conglomerate held a 46 percent share of Honda sales and 32 percent of Isuzu at end-June. “Building on the Ayala Group’s excellent reputation and market k nowledge, we are excited about offering consumers in the Philippines Volkswagen’s outstanding line-up of vehicles and providing them with an unparalleled level
of sales and service experience. As an important part of Volkswagen’s Asean growth strategy, we, jointly with the Ayala Group, plan to rapidly and robustly establish the brand Volkswagen in the Philippines, contributing to our vision to become t he world ’s number one car manufacturer by 2018,” said Weiming Soh, head of Volkswagen AG’s commercial operations for Greater China and the Asean region. The Volkswagen Group was the world’s second largest automobile manufacturer in 2011, with global sales of 8.265 million units accounting for a 12.3 percent share of the passenger car market. Vo l k s w a g e n h a s 9 9 production plants in 27 countries. At end-2011, the carmaker had more than 500,000 employees worldwide, with vehicles sold in 153 countries. Besides the auto industry, AC is in the business of real estate development, banking and financial services, telecommunications, water infrastructure development, electronics manufacturing, and business process outsourcing. It recently entered new sectors with investments in power generation and transport infrastructure development.
October 26-28, 2012
Coal Asia Holdings off to a good start in public offering RESOURCE extraction-oriented holding firm Coal Asia Holdings, Inc. saw shares jump at its market debut on Wednesday. Shares of the company jumped 50 centavos or 50% to P1.50 apiece at the end of trading yesterday from a P1 offer price. They opened at P1.36 and hit an intra-day low of P1.34 and a high of P1.50. The mining and oil sectoral index, to which Coal Asia belongs, ended the day with a relatively f lat 0.48-point dip to 20,143.79, while the Philippine Stock Exchange index gained 7.53 points or 0.14% to 5,432.20 and the All Shares index added 5.06 points or 0.14% to 3,594.60. “We are pleased with the market’s reception and it validates our strategy of pursuing the listing at par value even at a significant discount,” Vicente L. Araña, Coal Asia’s financial adviser, said in a telephone interview yesterday. “…[P]rospects moving forward are good with the coal prices increasing.” Coal Asia, an investment holding firm primarily engaged in coal and other energy-related businesses, is the parent of Titan Mining and Energy Corp., which owns coal operating contract 159 in Davao Oriental, as well as COCs 166 and 167 in Zamboanga Sibugay. It claims to hold the country’s second largest proven coal deposits at a combined 123 million metric tons (MMT), composed of 71.1 MMT in Davao Oriental and 51.1 MMT in Zamboanga Sibugay. The Philippine Stock Exchange approved Coal Asia’s plan for an initial public offering last Sept. 14. The company had said it aimed to raise P726,868,750 in net proceeds from an offer of 800 million common shares priced at P1 apiece, equivalent to 20% of its total issued and outstanding capital stock. Of these proceeds, P450 million will go to the company’s Davao Oriental project, while P60 million will be allotted for those in Zamboanga Sibugay. The balance of P126,868,750 will be earmarked for working capital purposes, the company had said in a regulatory filing. The share sale ran from Oct. 9-15. Coal Asia had said last month that it was in talks to supply coal to big-name firms and to venture into the oil and gas business. On Wednesday, the company also bared plans to open a mine-mouth power plant in its Davao Oriental project. “We are in talks to enter power generation near our open-pit mine in Davao Oriental. The plant will rely on our coal and outside supply. coal/PAGE 9
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Uniqlo to open more stores next year; eyes branches in Davao, Cag. de Oro FAST RETAILING Philippines, Inc., opera- Mr. Kubota said the brand’s tor of Japanese clothing brand Uniqlo, is set reception in the Philippines to open five stores by the end of August 2013. has been overwhelming, The brand will be opening its second store in the Philippines on Nov. 16 at the SM City North EDSA. “We plan to open five stores for the fiscal year [September to August] and after the North EDSA store we will be opening four more stores by August next year,” Fast Retailing Philippines Managing Director Katsumi Kubota said. “The stores will be in Metro Manila because until we are fundamentally strong in Metro Manila that is when we will look into expanding into the provinces.” While he would not dis-
close where the four stores will be located, Mr. Kubota said the firm is working on getting one branch in Makati City. If the brand will be moving to the provinces, Mr. Kubota said they will be in cities where there are large shopping malls like Cebu, Davao and Cagayan de Oro. Uniqlo opened its first store in Manila in the SM Mall of Asia on June 15 and has so far been able to sell “around 300 million pieces of garments which is more than 30% of our target,” he said. AGGRESSIVE
prompting the firm to consider expansion. “It is a strong characteristic of the Philippines that expansion can be aggressive because people are very familiar with brands. This is different from Japan where our growth is at 5%. We don’t want to be a high-end store and we want to always be accessible,” said Mr. Kubota. He cited plans to open 50 stores in three years. Uniqlo was brought to the country in partnership with the SM Group but Mr. Kubota said it is open to also opening stores in other malls not owned by SM. These stores however
Top Japanese clothing apparel Uniqlo eyeing more branches in the Philippines.
will be stand-alone stores belonging to Fast Retailing Philippines. The brand has stores in
Thailand, Malaysia and Singapore and will be opening in Indonesia and Australia soon.
where our network is HD voice-enabled and if you have an HD voice-capable ha ndset running on 3G [third-generation] technology, you will be able to hear the difference instantly,” Peña said. HD voice is init ia l ly available in select areas in Makati City and Bonifacio Global City in Taguig and can be enjoyed on smartphones which are capable of adaptive multi-rate wideband transmissions. Popular smartphones
with this feature are Smart Netphone 701, the Nokia E7, the Sony Ericsson Xperia Mini and the Samsung Galaxy Ace. “All you need is an active 3G connection and you will automatically be able to enjoy this new feature,” Peña said. “There is still no better way to convey human emotions than with voice. This shows that our supercharged network not only improves mobile Internet speeds, but call quality as well,” he said.
Smart unveils HD voice call service
SMART Communications Inc. has started offering its mobile phone subscribers high-definition (HD) voice call feature available on select smartphones. PLDT and Smart technology group head Rolando Peña said HD voice calls use improved modulation techniques which allow the transmission and reception of crystal-clear audio using the same amount of bandwidth as in regular voice call. “If you and the caller happen to be in areas
Philex loss widens in 3rd quarter
ENERGY resource exploration and production firm Phi lex Petroleu m Cor p. saw its net loss grow in the third quarter due to higher costs, according to unaudited financial statements t he compa ny submit ted Wednesday to the Philippine Stock Exchange. Its net loss grew to P51.355 million in the third quarter from P50.986 million in the same three months last year, leading to a P131.858-million net loss as of September -- a turnaround from the P472.112-million net income recorded in the same nine months in 2011. The company saw revenues grow 42.13% to P80.882 million in the third quarter from P56.907 million the previous year. Coal operations brought in P18.347 million that quarter, from none the previous year, while earnings from petroleum grew 10%
to P62.535 million from P56.907 million. At the same time, costs and expenses grew 4.4% to P106.89 million from P102.388 in the same comparative periods. Charges -- mainly due to interest expense which nearly doubled to P11.752 million from P6.663 million -- grew nearly fourfold to P23.521 million from P6.144 million. Suspension of operations at the Galoc oil field northwest of Palawan earlier this year weighed on revenues in the nine months to September, the company said in its disclosure. Philex Petroleum holds a 60.49% direct and indirect interest in Galoc operator Forum Energy Plc. “Production from Galoc was suspended from Nov. 23, 2011 to Apr. 1, 2012 for refurbishment of the f loating production, storage and
off loading (FPSO) vessel and the upgrading of the FPSO mooring system,” the disclosure said. Revenues fell 60% to P154.373 million as of September from P387.061 million last year, as earnings from petroleum -- which made up nearly 80% -- sank to P120.304 million, just a third of the P385.773 million the previous year. Earnings from coal operations -- underta ken in Zamboanga Sibugay through its wholly owned unit, Brixton Energy & Mining Corp. -- grew 26 times to P34.069 million from a mere P1.288 million. Costs in the comparative nine-mont h periods fell 14.4% to P255.859 million from P298.978 million. But the company saw P21.043 million in charges as of September, a turnaround from the P384.554-million “other income” in the same nine months last year -- as
interest expense rose 48% to P25.453 million from P17.204 million. “While we are pleased with the Galoc performance following the FPSO refurbishment and mooring upgrade, we continue to be concerned as to the shortterm viability of our coal business having regard to falling regional coal prices,” Philex Petroleum Chairman
and Chief Executive Officer Manuel V. Pangilinan said in a statement attached to the report. Carlo S. Pablo, the company’s president and chief operat i ng of f icer, sa id: “There are challenges in the business, but we are doing our best to deal with these -- basically, cost cutting, productivity improvement and phasing of investments.”
BAYAN Telecommunications Inc. may exceed its target revenue of P5.1 billion for the year given the strong uptake of its consumer and corporate data service offerings. “We are likely to exceed
by 3 percent of our target revenue this year. We could be ahead of our target because we are doing very well,” said vice president for marketing Juan Jose De Jesus. In 2011, Bayan’s revenue stood at less than P5 billion,
added De Jesus. “Our bottom line is also looking good. We have a healthy Ebitda [earnings before interest, taxes, depreciation and amortization] and our expenses are well within the level.” Corporate data services
make up 55 percent of Bayan’s total revenue while the remaining 45 percent comes from consumer-related offerings such broadband direct subscriber line (DSL) and landline services. Bayan broadband sub-
scriber base is now at 140,000, up from last year’s 120,000 while landline subscribers stood at 190,000. “We see a double-digit growth for DSL of about 12 percent to 15 percent this year,” sales bayan/PAGE 9
Suspension of operations of the Galoc oil field northwest of Palawan earlier this year weighed on nine-month results.
Bayan sees P5.1-B earnings this year
THE MEDIA CENTER BUSINESSWEEK MINDANAO Tanleh Bldg., Abellanosa St., Cagayan de Oro City
PPI, BWM hold seminar on journalism
he Philippine Press Institute (PPI) in cooperation with Philippine Airlines Foundation and t h e B u s i n e s s We e k Mindanao Advertising and Promotions holds a seminar on excellence and ethics in journalism with the theme “Making Sense of Journalism Today”, October 25, Cagayan de Oro City at the BWM Media Center. The seminar is part of PPI’s Scholastic Outreach Program. Participating students from the region enjoy a whole-day of learning as key speakers from Mani l a gave t hem several sessions and workshops. Al lan Me diante, Executive Editor o f B u s i n e s s We e k Mindanao welcomes the participants and g u e s t s , Att or n e y Jesus G. Dureza, PPI Trustee for Mindanao gave his opening message while Ariel C . S e b e l l i n o, P P I Executive Director,
gave the participants an over view of the Philippine Press Institute. The participants are journalism and communications students from L i c e o d e C ag ay an University – Mass Communications Department, Bukidnon State Un i v e r s i t y, S t . M a r y ’s S c h o o l i n C a g a y a n d e O r o, C entral Mindanao University, and MSUIligan Inst itute of Technology. The morning sessions included talks by national personalities in the m e d i a i n d u s t r y. Session 1: Excellence is the Key is handled by GMA-7 Program Manager Joseph A l w y n T. A l b u r o and Session 2: Going the Way of Ethics by Rowena C. Paraan, S ecretar y-General, National Union of Jou r n a l i s t s of t h e Philippines (NUJP). This is followed by an op en for um
and a workshop, a chance for the student journalists to participate and share their thoughts. A special visit by Cynt hia Vi l lar, Chairman & Managing Director of the Villar Foundation also gave the participants her insights on journalism ethics and entrepreneurship. Villar is in the city for the unveiling of the Sendong Memorial a t G o l d e n Ha v e n Memorial Park, Bulua, Cagayan de Oro. A lunch forum on Corporate Social Responsibility (CSR) is t hen faci lit ate d by Miguel Villareal, Philippine Veterans Bank Vice President on Corporate Communications. The afternoon session tackled o n v i s u a l communications. The talk on Photography vs Photojournalism is delivered by Cagayan de Oro TIMES Editorin-Chief, Shaun Alejandrae Yap Uy.
We grow minds!
PARTICIPANTS COMING FROM DIFFERENT UNIVERSITIES IN NORTHERN MINDANAO SHOWING THEIR SEMINAR CERTIFICATES.
ARIEL C. SEBELLINO PPI Executive Director
JOSEPH ALWYN T. ALBURO GMA-7 Program Manager
ROWENA C. PARAAN Secretary-General, National Union of Journalists of the Philippines (NUJP).
MIGUEL VILLAREAL Phil. Veterans Bank Vice President on Corporate Communications
SHAUN ALEJANDRAE YAP UY Cagayan de Oro TIMES Editor-in-Chief
CYNTHIA VILLAR inspires the student journalists to practice on journalism ethics and entrepreneurship Photos by ARJAY FELICILDA, RONALD MASTAIL & SHAUN UY
October 26-28, 2012
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Magnificence vs. megalomania WE need to distinguish the two, for they can look alike and yet are very different, if not opposed to each other. One is a virtue, the other is a sickness. One has the substance, the other only has the appearance. In our current world environment where we are constantly bombarded by sheer and confusing images and sound bites, thanks and no thanks to our tremendous new technologies, it’s crucial that we know how to identify the genuine from the fake. We should never forget that our life is always an arena for the battle between good and evil, truth and falsehood, and the forces behind can be many and can indulge in the most subtle and deceiving of ways. In the end, we need to choose whether we are with God or we simply want to be with our own selves. Magnificence is the bigness of heart that is filled with real love for God and souls and that spurs us to action, to heroic action to pursue grand projects or to tackle arduous trials and challenges. Our earthly life unavoidably involves these kinds of situations. For us to progress not only spiritually but also materially, we need to launch into great adventures and go after some noble if daunting exploits. It includes patience, understanding, magnanimity, mercy, tolerance, as well as daring, foresight, enthusiasm. It does not shrink from the great cost nor shy away from
hints and traces
FR. ROY CIMAGALA
the immense, even punishing effort that an undertaking or challenge may require as long that endeavour is viewed as truly worthwhile. It is done always in the spirit of love, of self-giving and genuine service to others. But it’s done always with charity, never in bitter zeal, and it is always attentive to the little things even as it is focused on the big goal it’s trying to reach. It is open to the possibility of human failure and the predicaments of frustration, but in its core it will always burn with hope and optimism, considering setbacks only as temporary and even as stimulus to go on. We can even say that magnificence is the virtue that enables one to dance very intimately with God in his providence. He is aware that his projects, trials and challenges are not simply for him alone to face, but always with God, the alpha and omega of our life. Megalomania, on the cimagala/PAGE 7
BusinessWeek M I N D A N A O
The Big Deadline
THINK a minute… You might have heard of the Parkinson’s Law. It says that people will take as long as you give them to finish a job. So if you give someone a day to do something, then at the end of the day it will probably be done. But if you give them 3 days to do that same job, then they will usually take all 3 days to do it. You see, most of us will take all the time we’re given to do something and won’t finish it until we’re forced to—whether it’s a school paper or letter we need to write, paying our bills and taxes, or cutting the grass. We often put off doing things until the last minute, until our deadline! Then we relax again for awhile until our next deadline. It’s hard for some of us to
understand people who work and plan many years ahead. A famous French leader asked his gardener to plant a tree, but the gardener didn’t want to because he said that kind of tree takes almost 100 years to grow big to full maturity. So the French leader said to the gardener: “Then there’s no time to lose. Plant it right now!” The fact is that if we didn’t have deadlines, most of us wouldn’t get much done in life. Deadlines force us to do something before it’s too late and we pay a painful price by suffering the consequences. But think about it, what is the biggest deadline you will ever face? Isn’t it your death? Whether you’re ready or not. The problem is that none of us knows for sure when it’s
coming. We might live another 40 years, or we might just have 2-3 weeks to live. So the only way to live with real peace and happiness is to know for sure that you’re ready to die today. But how can you be ready to die every day? Jesus Christ said the only way is if you know that you’re living every day in a right relationship with your Maker whom you must face at the end of your life. That’s why God Himself, Jesus Christ, came to show us how to live that way. Your decision to love and obey Jesus Christ every day is not just so you can live with peace and happiness now; it decides where you’re going to live forever after you die: in Heaven or Hell. In complete happiness and peace with your Creator and Christian family, or in total pain and suffering
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THINK A MINUTE
JHAN TIAFAU HURST
without Him. Jesus Himself said it’s that simple and serious. So for your own sake, today, won’t you ask Jesus to forgive you and take complete charge of your life everyday? Before it’s too late and you’ve missed the biggest deadline of your life. Just think a minute…
Salute to our gallant cops THE great Indian nationalist Mahatma Gandhi once said, “The best way to find yourself is to lose yourself in the service of others.” Through their exemplary performance of their sworn duty as members of the Philippine National Police (PNP), four policewomen and six policemen have indeed found their life’s calling They are now recognized as Metrobank Foundation Inc.’s (MBFI) Search for Country’s Outstanding Policemen in Service (COPS) awardees. “This year’s batch of outstanding policemen and policewomen serves as a testament to our police force’s continuing dedication to their sworn duty and professionalism towards performing their responsibilities,” MBFI president Aniceto M. Sobrepeña said. He added, “Notable this year is that we now have four policewomen awardees shining in our usually male dominated competition.”
The commissioned officers who made it to the list are: Supt. Belli B. Tamayo (Quezon City), Chief Insp. Vicente S. Cabatingan (Laguna), Senior Insp. Charity S. Galvez (Butuan City), and Supt. Bernard M. Banac (Quezon City). PO3 Eduardo D. Santiago (Pangasinan), SPO3 Renjun O. Bagaman (Koronadal City), SPO3 Rhia B. Sotomil (Iloilo), PO3 Mary Jane B. Perez (Cotabato City), SPO4 Ma. Rosario Y. Suarez (Davao City), and SPO3 Robert U. Fabregas (Quezon City). The accomplishments of the four women awardees indeed deserve commendation. Inspector Galvez, a holder of two Master’s degrees in education and public administration, was chief of the Trento Police Station in Agusan del Sur when she led her men in preventing 250 New People’s Army rebels from attacking their post. SPO3 Sotomil was instrumental in the arrest of several
rape suspects in Pavia, Iloilo. She led crusades against sexual abuse by unceasingly empowering victims, while waging a personal war of her own against lupus. PO3 Perez was part of the team that raided the house of a Maguindanao Massacre suspect in November 2009, resulting in the seizure of various weapons and ammunitions. She is also actively promoting the rights of children with disabilities. SPO4 Suarez conceptualized and implemented notable projects such as the “Search for the Most Child Friendly Police Station in the Davao Region,” the Police Regional Office 11 One-StopShop Crisis Center for women and children, and the Astig ng Ray of Hope for women detainees and their kids. The six male COPS awardees merit accolades, as well. SPO3 Fabregas is an accredited broadcaster of the Kapisanan ng mga Brodkaster ng Pilipinas (KBP) and a regular columnist in
IGNACIO BUNYE PNP’s official newsletter, the “Police Digest.” After a caller sought assistance through his radio program, SPO3 Fabregas took on a murder case and successfully arrested the suspect with the help of two civilians in 2004. SPO3 Bagaman led an operation to arrest his own relative, who happened to be one of his town’s most wanted persons. His extraordinary composure during the arrest earned the public’s respect. PO3 Santiago risked his life in saving two children bunye/PAGE 7
Happy days are here again IT’S mid-term election time. The anticipation is exuberant and the spirit is celebratory. The candidates for election are all ready to give long-winded speeches – without excluding the singing of requested songs in addition to staging celebrity shows. Meantime, the electorate are willing to be fooled in the same way that they are ready to receive favors from the political candidates, in kind and/or in cash. So it is that those aspiring to land one kind of elective political office or another, are all geared up for the “fight,” the contest,” and “the ‘race.’” They are ready with the money to spend, prepared to fund their supporters, willing to pay for tri-media advertisements among many other campaign expenses – inclusive of violent agency at times. In short, they have in command the standard “guns,” the needed “gold” and the
usual “goons” to win their chosen elective public offices. Meantime, there are really no political parties but mere convenient groupings of politicos. And more than platforms of government, what is really deemed important are the convenience of political mergers, the availability of money to spend, and the fondest hope and wish of wining the elections. All said political groupings or “mergers” sport different interesting titles and carry different initials. Do does the so-called political alliances have different slogans and make different signs, not to mention wear different colors. More. They are all pro-poor, pro-people, pro-country. They are all pro-justice and peace, proeducation and development. More. They all claim sincerity, honestly, and integrity – as they recruit and pay supporters, fund different activities
and celebrations, marriages and feasts included. Why? To have the votes – irrespective of the ways and means. And the mid-term elections will eventually come pass and ultimately done away it. As usual those elected politicos will decidedly regain what they spent and much more – at the easiest and shortest time possible. Meantime, it is good and proper to bear in mind the following standard post-election scenario: The Philippines predictably remains an underdeveloped country. A big number of Filipinos continue to wallow and poverty and misery. Millions of the Filipino people have to be OFWs to earn something to support their families. Local salaries are low while prices of basic commodities continue to rise. EDSA 1 and EDSA 2 came and went as recorded by Philippine history. Since then, many Philippine elec-
tions have been held and done away with. This and that President came and left. These and those political families as well as political clans came and refuse to disappear. Meantime, the Filipinos by and large remain still needy and still unschooled – if not desperate and angry even. What’s new?
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Cimagala... from page 6
other hand, is an obsession that starts with a twisted motive in us. It wants to play big, it wants to be the hero, but is unwilling to base and orient is aspirations properly, that is, God and souls. It is vulnerable to simply play games, and is very much averse to encountering contradictions and setbacks. It often deteriorates to bitter zeal and self-righteousness. It is also prone to be reckless and unattentive to little details. There is, of course, the kind that is willing to go to some extremes, and that’s why it can be very admirable. But its propelling motive is deficient and in time—sometimes it can take centuries—it will just collapse. Its inherent infirmity cannot be hidden for long, and has a natural dynamics to erode whatever facade of success it can create. We can see this in those grand ideological projects that attempted to make a human earthly paradise without God. Its archetype is the biblical Tower of Babel. It’s important that we know how to distinguish between magnificence and megalomania. For this, we always need to examine our conscience, to rectify our intentions, and to see to it that we are always aware that the undertaking we are pursuing is done always in the presence of God. We should never presume
that everything is all right just because we seem to feel good. Big things tend to put us in a state of exhilaration and exciting suspense, but these are never sure indicators that we are doing the right thing. We need to make deliberate effort to root our efforts on love for God and souls. This effort in itself can require heroism because especially at a certain point of success, we tend to get intoxicated and start to see things differently. We have to be wary always of this possibility. And that’s why it’s also good that we infuse our sense of magnificence with an ever deepening humility that would lead to do a lot of things while passing unnoticed and refusing to receive honors and privileges. It’s no accident that Christ washed the apostles’ feet before taking on the grandest act of love by offering his life on the cross.
Bunye... from page 6
from a hostage-taker inside a bus last year. For his heroism, he earned the Medalya ng Sugatang Magiting and Medalya ng Kadakilaan. Supt. Banac helped conceptualize “Magic Eye Text Patrol 2910,” which uses text messaging to help solve crime; and “Bless our Cops,” which advocates open communication between the police and the community. Chief Insp. Cabatingan successfully led operations against drug lords and ille-
gal gunsmiths. He has also organized basketball leagues for the youth to discourage them from turning to drugs. Supt. Tamayo was responsible for the surrender of 19 B’laan outlaws/MILF members in South Cotabato. He was also credited for the recovery of five high-powered firearms from 30 terrorists who were responsible for the massacre of six innocent civilians. T he COPS awa rdees will receive a cash prize of P300,000 and a trophy courtesy of the Metrobank Foundation. The PNP will also confer on them the Medalya ng Katangi-tanging Gawa, a testament to the exemplary service of COPS awardees to the police force and the country. You may e-mail us at totingbunye2000@gmail. com.
from page 11
tions to any APP shall be up to P1-million if from a natural person, and up to P10-million if from a juridical person. Any contribution in cash or in kind to a political party for campaign purposes, duly reported to the Commission, shall be exempt from donor’s tax. The bill provides that the amount of P500-million is appropriated out of the funds of the National Treasury not otherwise appropriated, and the amount of P350-million shall be appropriated every year thereafter.
The Comelec and the Department of Budget and Management shall promulgate guidelines to facilitate the release of the funds to every APP, and for the Comelec to promulgate the necessary rules and regulations to effectively implement the provisions of the proposed Act.
from page 8 System z server. “The new solution will provide the foundation RCBC needs to create value-added services that will increase customer adoption for its MyWallet electronic cash card,” RCBC said in a statement. RCBC targets to have 4 million MyWallet card users this year, more than double the 1.8 million users last year. “We got the new system because we needed to show the untapped market and our present clients that we can provide faster and better products and services,” Mr. Deveras said.
from page 8
enter prise development through the provision of banking services designed specifically for small businesses and the least privileged segments of the Philippine economic pyramid; 5. his central role in expanding BPI financing for energy efficiency and renewable energ y projects, thereby significantly contributing to national
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development; 6. leading in the advocacy of financial reforms intended to further insulate the banking system from external shocks, as President of the Bankers Association of the Philippines; and 7. setting an example for Filipino professional managers through a track record of unblemished integrity, professional competence and strong leadership in his banking career. T he roster of “M A P Ma nagement Ma n of t he Yea r” awa rdees i nc lu d e : Wa s h i n g t o n Z . SyCip (1967), Geronimo Z. Velasco (1977), Henry A. Brimo (1978), Jose M. Soriano (1979), Cesar E.A. Vi rata (1981), Ja i me V. Ong pi n a nd Vicente T. Paterno (1982), Dante G. Santos (1983), Cesar A. Buenaventura and Roberto T. Villanueva (1985), Jaime Zobel de Aya la (1987), Ramon V. del Rosario, Sr. (1988), Jose B. Fernandez, Jr. (1989), Raul T. Concepcion (1990), Oscar J. Hilado (1991), Alfonso T. Yuchengco (1992), Juan B. Santos (1994), David M. Consunji and Rizalino S. Navarro (1996), Gabriel C. Singson (1998), Delfin L. Lazaro and Henry Sy, Sr. (1999), Oscar M. Lopez (2000), Tony Tan Caktiong (2002), Jesus P. Tambunting (2003), Rafael B. Buenavent u ra (20 0 4), Ma nuel V. Pangilinan (2005), George S. K. Ty and Jaime Augusto Zobel de Ayala (2006), Jose
L. Cuisia Jr. (2007), Antonino T. Aquino and Jesus P. Estanislao (2009), Lilia B. de Lima and Ramon R. del Rosario, Jr. (2010), and Erramon Aboitiz (2011).
from page 10
to look into the possibility of developing a reg u lar milling machine that could remove hull even with just one processing. Cu r rent ly, t here a re re g u l a r m a c h i ne s t h at could not do it in single processing thus it has to be repeated several times causi ng t he remova l of pigmentation and the nutritive value. They are a lso tr y ing to identify varieties that produce palatable rice even if it is not well-polished. They are also looking at ways on how to improve the shell life of brown rice because it deteriorates faster. T he c h a l lenge i s to change people’s mindset that brown rice is more nutritious, said Libetario.
Eton... from page 12
withdraw from the PSE, citing its inability to comply with the 10 percent minimum public float of the local bourse. Eton Properties had a free f loat level of 5.65 percent at end-June. The real estate firm followed the lead of PAL Holdings Inc., another Tancontrolled firm, which had said it would delist within the year.
Banking / Finance 8 Consumer loans rise 17% in first half October 26-28, 2012
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CONSUMER LOANS climbed by 17% in the in the middle of a housing loans also improved as of first half compared to a year ago as demand boom, fueled by remittances the first half, with nonfrom overseas Filipinos and performing loans -- obligafor residential real estate loans soared. Bangko Sentral ng Pilipinas data showed that consumer loans hit P587 billion as of June, up by 17.4% from the P500 billion last year. Universal and commercial banks accounted for P378.8
billion, and thrift banks, P208.2 billion. Residential real estate loans surged by 23% to P244.4 billion and comprised bulk of consumer loans. The Philippines is
rising incomes. Auto loans jumped by 17% to P150.3 billion, while credit card receivables increased by 13% to P136.6 billion. Other types of consumer loans totaled P55.7 billion. The quality of consumer
tions unpaid at least 30 days after due date -- comprising 6.7% of total consumer loans. This was a decline from the 7.9% registered in the same period in 2011, as the total portfolio grew at a faster pace than bad loans.
UnionBank says net income up 17% in 1st nine months
UNION Bank of the Philippines on Thursday said its net income reached P6.3 bi l lion in t he f irst nine months of the year, up by 17 percent from P5.4 billion a year earlier, the bank said in a disclose to the Philippine Stock Exchange. However, its net income for the third quarter slipped to 2.2 billion from P2.5 billion year-on-year. T he ba n k f i led w it h the PSE its statement of financial position and did not provide explanations to its financial performance. Its net interest income rose to P5.4 billion in January to September from P5.2 billion a year earlier, but the same item dropped to P1.78 billion from P1.82 billion in the third quarter alone. Trading gains increased to P5.28 billion from P4.45 billion in the same comparable period. Earnings per share to-
taled P13.13 in the nine months to September from P11.24 year-on-year. The bank earlier said it expected a 10 percent to 15
percent income growth for 2012. Pesident and COO Vic Va ldepeñas noted loa ns will likely grow 20 percent
to 25 percent this year. UnionBank is a partnership of the Aboitiz Group, Insu lar Life, a nd Socia l Security System.
RCBC targets 10M clients as it shifts to new IT system YUCHENGCO-led Rizal Commercial Banking Corp. (RCBC) targets to have 10 million clients by 2014 as it continues to enhance its information technology system to provide better services and products to customers. “By 2014, we target to have 10 million clients or cash card holders,” said John G. Deveras, RCBC executive vice president and head of strategic initiatives. RCBC currently has 3.6 million cash card holders. “Essentially, the branch is the first channel that would allow us to reach more people and increase our market share, another is the MyWallet card product,” he added. As of end June, the bank had 395 branches and 892 automated teller machine units nationwide. The RCBC MyWallet card is a prepaid card that allows the cardholder to withdraw cash from automated teller machines (ATMs) or pay for bills and purchases. “There are around 40 million unbanked Filipinos, so there is a big market out there to tap,” Mr. Deveras said. Bangko Sentral ng Pilipinas data showed that eight out of 10 Filipino households are “unbanked” or not part of the formal financial system. In a bid to provide better service to its clients, RCBC yesterday announced it has migrated to Finacle, a core banking solution that runs on the IBM rcbc/PAGE 7
BPI chief named this year’s Exportbank rehab pushing through ‘MAP Management Man’ THE MANAGEMENT Association of the Philippines (MAP) named Aurelio R. Montinola III, president and chief executive officer of the Bank of the Philippine Islands (BPI), as MAP Management Man of the Year 2012. A statement of the organization said the Mr. Montinola as the 36th recipient of the award, which is given to industry leaders who achieve “unquestioned distinction in the practice of management and for contributing to the country’s progress.” Criteria for the award include integrity, leadership, and management qualities, as well as contribution to nation building and values formation, among others. Mr. Montinola was chosen for helping to strengthen Philippine professional management practices through a strong culture of leadership, innovation and customer-centricity in banking; helping overseas Filipino workers improve the management of their earnings through educational programs on savings, entrepreneurship and financial planning; active involvement in micro-enterprise development and advocacy of financial reforms to further insulate the banking system from external shocks as President of the Bankers Association of the Philippines, the statement said. Mr. Montinola was chosen for the following: 1. his outstanding stewardship of BPI as a highly successful organization, a socially responsible corporate citizen
and a fiduciary firm known for good governance; 2. his contributions in strengthening Philippine professional management practices by exemplifying strong culture of leadership, innovation and customercentricity in the banking sector; 3. assisting Overseas Filipino Workers improve the management of their earnings through educational programs in saving, entrepreneurship and financial planning; 4. his active involvement in microbpi/PAGE 7
THE PHILIPPINE Deposit Insurance Corp. (PDIC) is pushing through with the rehabilitation of closed Export and Industry Bank, Inc. (Exportbank) but still needs to outline its options after the bidding for the bank’s assets and liabilities last week ended in failure. This developed as the 72-hour temporary restraining order (TRO) issued by Executive Judge Benjamin T. Pozon of Makati City Regional Trial Court Branch (RTC) No. 139 on the sale of Exportbank’s assets and commercial bank license was lifted on Wednesday. “The board of directors noted our report regarding the failure of bidding and the hearing regarding the 72-hour temporary restraining order. The board has decided to continue to pursue Exportbank’s rehabilitation,” said Cristina Q. Orbeta, PDIC executive vice president. PDIC , E x p or t ba n k ’s receiver, instituted a twostep process to rehabilitate the shuttered bank. The first involved the sale of Exportbank ’s assets and assumption of liabilities, and the second, sale of the bank ’s commercial bank license. No bidders for Export-
bank’s assets and liabilities, however, turned up at the Oct. 18 auction after they were informed by PDIC it had received a TRO on Oct. 17. Asked how PDIC plans to proceed with the bank’s rehabilitation, Ms. Orbeta said: “We still have to propose to the board the process to be adopted.” Ms. Orbeta earlier said the PDIC team assigned to oversee Exportbank ’s rehabilitation could either propose to “reschedule the bidding” of the bank’s assets, liabilities and commercia l ba n k license or “negotiate” with a strategic third party investor. In a separate phone interview, Ma. Antonette B. Bolivar, PDIC vice president for litigation and investigation group, yesterday said: “The TRO issued by Judge Pozon has been lifted.” “The application of injunction was denied for lack of jurisdiction,” she said, citing the decision issued by Judge Encarnacion Jaja G. Moya of Makati City Regional Trial Court Branch No. 146 dated Oct. 19. “Wit h t his, we can now proceed with the sale of Exportbank ’s assets and commercial bank license.” Pacific Rehouse Corp.,
Pacif ic Concorde Corp., Mizpah Holdings, Inc., Forum Holdings Corp. and East Asia Oi l Compa ny had applied for a TRO and a preliminary injunction -which Mr. Pozon granted on Oct. 17 -- against PDIC, the Bangko Sentral ng Pilipinas and Exportbank. T he PDIC t herea f ter filed a motion to lift the TRO, which was tack led during a court hearing last Friday. It argued that RTC 139 had no jurisdiction and the five firms had no right to Exportbank’s assets, branches and commercial bank license. The 72-hour TRO was issued in relation to Civil Case No. 12-1010 filed by the five firm, which earlier f i led a case against EIB Securities, Inc., Exportbank’s brokerage arm, for the unauthorized sale of P1.5 billion worth of DMCI Hold ings Inc. sha res in 2004. A Makati City regional court in 2011 held Exportbank liable for the transaction but t he Cour t of Appeals, this year, opined otherwise. The Monetary Board, in Resolution No. 686 dated April 26, stopped the operations of Exportbank after the bank became insolvent.
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Nestle... from page 1
Robusta coffee cuttings; a coffee nursery, which serves as a trial site for different t y pes of Robusta cof fee plants; a composting facility for organic fertilizer; and a Nestlé research and development station within NOMIARC,” Baria adds. Nestlé is also sharing its technical expertise in coffee planting with the center through different coffee training programs, designed to enable farmers to get hands-on exercises on the various ways to better plant coffee. The coffee monocropping and sustainable agriculture initiative systems are taught in the center, all backed by demonstrations at demo plotsby Nestlé agronomists. Juanita Salvani, center manager of DA-10 NOMIARC, outlines how these agriculture developments in coffee farming benefit thousands of coffee-dependent farmers in Bukidnon. “Bukod sa mabibigyan natin sila ng quality planting materials, natutulungan sila paano mabuting mag-culture ng coffee sa kanilang mga sari-sariling bahay. [Aside from sharing with them quality planting materials, we are able to teach them how to better culture coffee in their own fields]. With the presence of Nestlé, they are also assured of the market because they are planting quality materials capable of producing quality beans,” Salvani said. Salvani, in another interview during the forum, further explains the “beauty”of the cooperation between Nestlé and the DA. “Nestlé obviously has the capacity in terms of resources; they can implement projects outright when you need the resources. Public institutions like the Department of Agriculture
cannot do the pushing of agriculture development alone; we need our private partners to help us. It’s really a good thing that Nestlé has chosen us.” With Nestlé currently the biggest buyer of Robusta coffee in the country, purchasing an estimated 80 percent of the entire Philippine coffee produce, Baria noted that Nestlé is planning to establish more partnerships with the public sector, establishing other demonstration farms like the one in DA-NOMIARC in key coffee-growing areas in the country to reach other untapped small coffee farmers.
Grant... from page 1
have welcomed our investment and it is just right that they reap the benefits of the power that we will produce,” said Therma South chief operating officer Benjamin A. Cariaso Jr. in a press statement. “We have the advantage of having already started our construction and we will ensure that we will build a world-class power plant that the people of Mindanao will be proud of,” Cariaso said. “The combination of rapid economic growth in the Davao Light franchise area and the expected deteriorating supply from the National Power Corp. require us to act responsibly and secure this power now and ensure the power needs of Dabawenyos in the future,” Milan said. “ This unprecedented economic growth in Davao City needs electric power and we in Davao Light will do our best that this power is delivered reliably and the progress of our city goes unhampered.” The power supply contract will be submitted for approval by the Energy Regulatory Commission (ERC), which will ensure that the rates
Republic of the Philippines REGIONAL TRIAL COURT OF LANAO DEL NORTE 12th Judicial Region Branch 07 Tubod, Lanao del Norte NOTICE OF SALE OF EXECUTION OF REAL PROPERTY WHEREAS, by virtue of an Order granting for the issuance of a Writ of Execution issued by the HON. ROSITE B. PAPANDAYAN-MACARAYA, Judge of the 6th MCTC Tubod Baroy Magsaysay, Lanao del Norte and a Writ of Execution was issued the same on August 12, 2010, in Civil Case No. 1271 entitled SPOUSES JOSPICIO T. PALANAS AND MERCEDES B. PALANAS versus RODRIGA REQUINO, for the recovery of the sum ONE HUNDRED THOUSAND PESOS (Php100,000.00) PESOS plus interest, plus Sheriff’s fees and expenses, awarded by the court, levy was made by Sheriff Conrado V. Hingco Jr. on July 25, 2012, thru the Register of Deeds of Lanao del Norte, on the rights, interests, and participation of the said property more particularly described as follows. The one half share of the childrens of Rodriga Requino only of the described property below is the subject of this sheriff’s auction sale thru its compromise agreement approved by the court and their failure to pay their debts to the complainant spouses Palanas “A parcel of Agricultural Land situated Salong, Baroy, Lanao del Norte with an area of 14,767 square meters more or less under Original Certificate of Title No. P-7834 in the name of Regino Requino married to Rodriga Requino. Bounded on the South along line 1-2 by Lot No. 1142-M, Csd-12-001667 on the West along line 2-3-4 by Road; on the North along line 4-5 by Lot No. 1142-A, Csd-12-001667 and on the East along line 5-1 by Lot No. 1142-K, Csd-12-001667 all the improvements found thereon. NOW THEREFORE, by virtue of said Writ Execution and in accordance with Rule 39, Section 19, of the Rules of Court, Sheriff CONRADO V. HINGCO JR. will sell at public auction to the highest bidder, for CASH and in Philippine Currency, on November 27, 2012 at 10:00 o’clock in the morning/afternoon or soon thereafter, at RTC Branch 7, Poblacion, Tubod, Lanao del Norte, the ownership, rights, interests, and participation of Judgment debtor Children’s of Rodriga Requino, in the above-described real property in order to satisfy said Writ of Execution, together with interest, costs, sheriff’s fees and the expenses of sale. Date this 3rd day of October 2012 at Tubod, Lanao del Norte, Philippines. CONRADO V. HINGCO JR. Sheriff IV BWM: OCT. 12, 19 & 26, 2012
October 26-28, 2012
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are fair and are to the best interest of the consumers. “Mindanao is facing a critical power shortage and it will only get worse as our demand for power is increasing. Therma South will provide a medium-term solution to this crisis by 2015,” Cariaso said. Therma South is utilizing the latest circulating fluidized-bed technology to ensure power plant operations meet stringent government environment and safety standards. Davao Light has an estimated peak demand of 290 MW, serving more than 300,000 customers in the cities of Davao and Panabo as well as neighboring municipalities of Carmen, Dujali and Sto. Tomas.
Power... from page 1
electricity sales of Steag’s coal-fired power plant in Villanueva. Pursuant to the DOE guidelines, power generating companies set aside one centavo for every kWh of electricity sales to fund electrification and other community development programs and projects. Since 2006, Steag has earmarked P 31.97 million for the electrification of 39 villages in Region 10, of which 32 are in Misamis Oriental and Cagayan de Oro City. Anabel Elmaga of the DOE Rural Electrification and Management Division said the identification of the recipient communities follows the radiating order from the location of the Steag power plant as provided for in the ER 1-94 guidelines of the DOE. “Priorities are the host communities nearest the power plant of Steag including the host province, then the host Region” Elmaga explained. Data from the National
Electrification Administration (NEA) showed that there are still 730 potential sitios for energization in Misamis Oriental, most of these are within the franchise area of Moreco II (covering the eastern towns of the province). “We are working on the full energization by 2013 of the remaining five sitios in our host communities in Tagoloan and Villanueva afterwhich we move on to consider the other neighboring towns in Misamis Oriental,” said COMREL Manager Ghaye Alegrio.
Isuzu... from page 3
pickups compared to 1,882 units in the same period last year. Sales of its light-, medium-, and heavy-duty trucks also grew to 1,184 units from 859 units. The company also sold 279 buses from January to September from 145 units last year. Isuzu assembles many of its models in the country. It currently assembles the D-MAX, Crosswind and its trucks in the Philippines. -- ENJD
Coal... from page 4
We are looking at 100-200 megawatts and we are talking to two local companies to partner,” said Mr. Araña. He added the company could take partial equity in the power plant but will provide 100% of the supply for the plant. The Davao Oriental mine is scheduled to begin commercial operations in 2014 while the Zamboanga Sibugay mine will be commercial by 2015. Coal Asia is also negotiating oil exploration plans in service contract 6 in Palawan, particularly in the Cadlao and Bonita blocks. Coal Asia is the fourth
firm to go public this year fol low i ng cong lomerate GT Capital Holdings, Inc., which listed in April, as well as Gotianun-led East West Banking Corp. and feeds supplier Calata Corp., which listed in May. For the first half, Coal Asia reported a net income of P2.03 million, as well as P13.41 million in sales and cost of sales totalling P6.73 million. -- ENJD
Bayan... from page 4
group head Anicieto Franco III said. The company also offers managed services to companies that still lack a disaster recovery plan. Bayan’s corporate and
business unit Bayan Business released the B2BIZ:MS 2012 Innovative Industry Insights on Disaster Recovery to enlighten business organizations on the importance of having such a plan. The disaster plan enables companies to lessen or eliminate the impact of a disaster even before it occurs, so that IT services and, subsequently, the company’s operations can be restored as quickly and with the least downtime as possible.
CAGAYAN DE ORO Main Branch P & J Lim Bldg., Tiano Brothers – Kalambagohan Sts., Tel. # (08822) 727-829 * Telefax # (088) 856-1947 CAMIGUIN Branch B. Aranas St., Poblacion, Mambajao, Camiguin Tel. # (088) 387-0491 CORRALES Branch Corrales Ave., Cagayan de Oro City DIVISORIA Branch Atty. Erasmo B. Damasing Bldg., #61 Don A. Velez St., Cagayan de Oro City Tel. # (088) 857-3631 LAPASAN Branch Lapasan Hi-way, Cagayan de Oro City Tel. # (088) 231-6739a
Republic of the Philippines REGIONAL TRIAL COURT OF MISAMIS ORIENTAL 10th Judicial Region BRANCH 38 Cagayan de Oro City 2012-441 NOTICE OF EXTRA-JUDICIAL SALE File Number 2012-252 UPON EXTRA-JUDICIAL PETITION FOR SALE under Act 3135, as amended by Act No. 4118, filed by HOME DEVELOPMENT MUTUAL FUND (otherwise known as Pag-IBIG Fund)., with principal office at the Atrium of Makati, Makati Avenue, Makati City, against ARNOLD A. ALTERA, married to FLORDELYN T. ALTERA, with postal address at Lot 20, Blk 11, Silver Creek Subd., Pull, Carmen, Cagayan de Oro City, to satisfy the mortgage indebtedness which as of August 24, 2012, amounts to Eight Hundred Eighteen Thousand Eight Hundred Eighty One Pesos & 88/100 (Php818,881.88), Philippine Currency, as principal, interest, charges, attorney’s fees and expenses of foreclosure, the undersigned Sheriff or his deputies will sell at public auction on November 14, 2012, at 10:00 A.M. to 4:00 P.M. or soon thereafter at the Office of the Regional Trial Court, Branch 38, 2nd Floor, Hall of Justice, Hayes Street, Cagayan de Oro City, to the highest bidder for cash and in Philippine Currency, the following real property, with all the improvements found thereon, to wit: TRANSFER CERTIFICATE OF TITLE NO. T-209132 Lot : 20, Block 11, Psd-10-053352 Portion of Lot : 3891-P-2, Psd-10-050786 Surveyed For : CORELCO, INC., (SILVER CREEK SUBDIVISION) Land Use : Residential Location : Barangay Canitoan, now Carmen Area : Eighty (80) square meters, more or less, registered in the name of Arnold A. Altera, married to Flordelyn T. Altera. All sealed bids must be submitted to the undersigned on the above-stated date, time and place. In the event the public auction should not take place on the said date for whatever reason, the same will proceed on the following working day without further notice, posting and publication. Prospective buyers/bidders may investigate for themselves the title above-described and encumbrances thereon, if any there be. Cagayan de Oro City, October 9, 2012.
FOR THE EX-OFFICIO PROVINCIAL SHERIFF:
REYNALDO L. SALCEDA Sheriff IV
BWM: OCT. 19, 26 & NOV. 2, 2012
Republic of the Philippines REGIONAL TRIAL COURT OF LANAO DEL NORTE 12th Judicial Region OFFICE OF THE CLERK OF COURT EX-OFFICIO SHERIFF Tubod, Lanao del Norte
Republic of the Philippines REGIONAL TRIAL COURT OF LANAO DEL NORTE 12th Judicial Region Branch 07 Tubod, Lanao del Norte
NOTICE OF EXTRA-JUDICIAL SALE EJF No.: 169-07-2012
NOTICE OF SALE OF EXECUTION OF REAL PROPERTY
Upon the Extra Judicial Petition for Sale under Act 3135/1508, as amended, filed by the 1st Valley Bank Inc., Baroy, Lanao del Norte against MARGARITO B. OPAY, Dawis, Baroy, Lanao del Norte to satisfy the indebtedness which as of March 1, 2012 amounting to TWO HUNDRED THOUSAND PESOS (Php 200,000.00) excluding penalties, changes, attorney’s fee and expenses of foreclosure, the undersigned or his duly authorized deputy will sell at public auction on 27th day of November 2012 at 10:00 AM or soon thereafter at the Regional Trial Court, Branch 07, Poblacion, Tubod, Lanao del Norte, to the highest bidder for cash or manager’s check and in Philippine Currency, the following property with all its improvements, to wit: TRANSFER CERTIFICATE OF TITLE NO. T-23,465 “A parcel of land Lot 1954-G, Psd-10-046568 being a portion of Lot 1954, Lala Pls-13 situated in Brgy. Bagong Dawis, Mun. of Baroy Prov. Of Lanao del Norte Island of Mindanao. Bounded on the NE., along line 1-2 by Lot 1954-I, (ROAD LOT) ; on the SE., along line 2-3 by Lot 1954-F; on the SW., along line 3-1 by Lot 1954-H, all of the subd. Plan Psd-10-046568. Together all the improvement found thereon; Area: 399 sq.m. “All sealed bids must be submitted to the undersigned on the above stated time and date. Tubod, Lanao del Norte, Philippines, this October 4, 2012. For the Clerk of Court and Ex-Officio Sheriff CONRADO V. HINGCO JR. Sheriff IV
BWM: OCT. 12, 19 & 26, 2012
WHEREAS, by virtue of an Order granting for the issuance of a Writ of Execution issued by the Hon. Allan L. Flores, Regional Trial Court Judge Branch 07, Tubod, Lanao del Norte, and a Writ of Execution was issued the same on September 19, 2011, in Civil Case No. SPL Case No. 00707-2009 entitled ELIZABETH LONGCOB-LONTAYAO versus CRISPOLO LONGCOB, CARIDAD LONGCOB-CABANAS, CERELINO LONGCOB, ROMEO LONGCOB, for the recovery of the sum ONE HUNDRED FIFTY THOUSAND PESOS (Php150,000.00) PESOS plus interest, plus Sheriff’s fees and expenses, awarded by the court, levy was made by Sheriff Conrado V. Hingco Jr. on January 18, 2012, thru the Register of Deeds of Lanao del Norte, on the rights, interests, and participation of the said property more particularly described as follows: “A parcel of Agricultural Land situated Bualan, Tubod, Lanao del Norte with an area of 1,3191 square meter more or less under Cadastral Lot No. 4466-B, Assessor’s Lot No. 004, Tax Declaration No. G-0400556. Covered by Certificate of Title No. P-8228, more particularly described as follows; North Lot No. 4465, South East Lot No. 4466-A, East, North East Road Lot No. 4465, West Road Lot. With all the improvements found thereon. NOW THEREFORE, by virtue of said Writ of Execution and in accordance with Rule 39, Section 19, of the Rules of Court, Sheriff CONRADO V. HINGCO JR. will sell at public auction to the highest bidder, for CASH and in Philippine Currency, on November 26, 2012 at 10:00 o’clock in the morning/afternoon or soon thereafter, at RTC Branch 7, Poblacion, Tubod, Lanao del Norte, the ownership, rights, interests, and participation of Judgment debtor Spouses ELIZABETH and NESTOR LONTAYAO, in the above-described real property in order to satisfy said Writ of Execution, together with interest, costs, sheriff’s fees and the expenses of sale. Date this 3rd day of October 2012 at Tubod, Lanao del Norte, Philippines. CONRADO V. HINGCO JR. Sheriff IV BWM: OCT. 12, 19 & 26, 2012
October 26-28, 2012
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Binay pushes for more pineapple, coconut exports to Israel AT his meeting with President Shimon Peres on the first day of his official visit to Israel, Vice President Jejomar Binay pushed for more exports of fresh Philippine produce such as pineapple and coconut to the mainstream Israeli retail market. “I hope that more Philippines fresh produce such as pineapples and coconuts [will find their] way into the mainstream Israeli retail market. The Embassy has initiated the mechanism for the approval of pineapple importation to Israel in co-
ordination with the Israel Ministry of Agriculture,” he said, according to a note posted Wednesday on his
Facebook account. Binay met Peres at the Presidential Residence in Jerusalem, where he also
urged ranking Israeli officials to explore new trade and investment opportunities in the Philippines. “The Philippine-Israel bilateral trade represents a very small percentage of the overall Israel-Asia twoway trade. I hope that our strengthening bilateral relations translate to more investments between our countries,” he said. Binay also said the Philippines could benefit from Israel’s technological advances in agriculture and food production.
“I am happy to note that Filipino agricultural workers are being exposed to Israeli agricultural technology that is considered among the best in the world,” he said. Itinerary Binay will also attend a dinner meeting with Foreign Minister and Deputy Prime Minister Avigdor Lieberman to discuss regional developments. He is also to meet with Israeli business groups to push overall trade relations between the two countries. He also plans to lay a
wreath at the Yad Vashem Holocaust Museum in Jerusalem to pay his respects to the victims of the Holocaust, and go to Rishon LeZion to visit the Open Doors Monument, which commemorates the Philippines’ providing refuge to Jews during the Holocaust. Binay will then meet with the Filipino community in Beit Dani, Tel Aviv and attend the inauguration of the Philippine Square at the City of Haifa and meet Haifa City Mayor Yona Yahav. Haifa and Manila are sister cities.
design milling equipment that could produce brown rice. Currently, no milling equipment is available commercially although their laboratory could accommodate small scale milling. Ed Libetario, supervising rice specialist at PhilRice, said there is a need to change the people’s concept of white rice as culturally people still prefer white. What is necessary, he said, is to retain the nutrients in the rice that brown rice can only be produced if less polishing is done. He said nutrients are removed in the process of coming up with well-milled rice. Miranda said that while the promotion for the utilization of white rice is slow, still several strategies are being developed. He cited they are trying rice/PAGE 7
er-benef icia ries have planted 50,000 cacao seedlings in about seven hectares in the targeted areas, Dalayon said.
DA to begin massive corn planting in Western M’nao
Brown rice ensures high milling recovery
ZAMBOANGA City — The Department of Agriculture (DA) is embarking on a massive corn-planting program in nine municipalities and one city covering some 1,300 hectares here in Western Mindanao. DA’s Regional Corn Coordinator Felizardo Salomes said the program is aimed to produce at least an average yield of 3 tons per hectare or a total production of 3,900 metric tons of white corn grains in support to the Food Staple Sufficiency Program of the DA. The areas identified for corn planting are Diplahan, Imelda and Siay, Zamboanga Sibugay province; Dapitan City and Polanco, Zamboanga del Norte; and Bayog, Lakewood, Tukuran, Mahayag and Dumingan, Zamboanga del Sur.
The corn-planting program will be launched in the target areas in December this year and in January next year, Salomes said. The seeds for the program will be provided by the Production Support Services Component of the AgriPinoy Corn Program under its seed-exchange subsidy, Salomes said. He said that five packs of Bio-N seed inoculant will be given out per bag of corn seeds to minimize input requirements, particularly urea. He said the Zamboanga peninsula is generally sufficient in white corn for human consumption and it can address high demand for white corn in Central Visayas as there are more Cebuanos whose staple is corn. He said that in terms of
market access, corn can be transported to Cebu via the ports of Sindangan and Liloy towns and Dipolog City in Zamboanga del Norte. He said water may be the limiting factor in other areas but water supply is just adequate even in the absence of rain in the 10 identified
areas in the region. “Harvest falls on the dry months and post-harvest is not a problem. The advantage of off-season production is that price is high due to the scarcity of supply,” Salomes said. “This will provide better income for the farmers,” he said.
ILOILO City -- Aside from its high nutritive value, brown rice also assures high milling recovery for farmers, according to experts from the Philippine Rice Research Institute (PhilRice). Ruben Miranda, national coordinator for the Upland Rice Development Program of PhilRice, said if Filipinos will just patronize brown rice then the country is ‘more than sufficient in rice.’” Brown rice refers not on the color of the crop but on the polishing or milling quality. Miranda said brown rice passes through milling only once to remove the husk or hull unlike the well-milled rice which has to be milled several times to remove pigmentation. The milling recovery for the brown rice is up to 70 percent. Miranda, however, said there is still that need to
AGRINURTURE, Inc. has ended its supply contract with the SM Group over bad credit lines, it disclosed to t he Philippine Stock Exchange Thursday. T h rou g h t he Bulaca n-based agricu lture firm’s subsidiaries, First Class Agricultural Corporation and Fresh & Green Harvest Corp., Agrinurture has given formal notice to SM’s Super Value, Inc. and Super Shopping Market, Inc. that it has stopped supplying all SM Supermarkets and SM Hypermarkets with fresh fruits and vegetables, with the inventory pullout from the stores to be completed by t he end of the month. In its disclosure to the PSE, Agrinurture said, “The cessation of
the supply relationship will free up approximately P60 million of working capital that is tied up in credit lines to the supermarket chains of the SM Group. The newly freed up capital will be deployed to other more profitable channels of distribution for fresh fruits and vegetables and thus generate better returns for the Company and its shareholders.” The company added that, “The end of the two decade old supply relationship with the supermarket chains of the SM Group is expected to have only a small positive effect on the Company’s income for the rest of 2012, but will result in a more pronounced positive effect in 2013.”
DAVAO City -- Farmer-beneficiaries of the C ac ao-Ba na na Ag r iEnterprise Development Projec t have st a r ted c ac ao -ba na na i ntercropping to cushion the crisis facing the banana industry. FEDCO chief executive off icer Rene Dalayon said the 10-hectare project involves 2,000 farmers in the towns of Sto. Tomas and Asuncion in Davao del Norte. As an initial step, he said FEDCO initiated an extensive training on cacao-banana inter-cropping to 75 farmer leaders called CocoPal Farmer Leaders last September. Dalayon said the CFL will re-echo their training to about 50 farmers through Farmers Field School until the targeted number of 2,000 farmers
will be reached. The CFLs were trained on farm planning and farmers decision making, farming as
a business, and technical training on cacao production using cacao check system. As of today, farm-
Produce firm ends long-time supply deal with SM Group
Mindanao cacao-banana inter-cropping in full swing
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Congress • Watch
October 26-28, 2012
‘Watered-down’ RH bill can still face rough sailing in House THE new “watered-down” Reproductive Health (RH) bill could still face rough sailing in the House of Representatives, Minority Leader Danilo Suarez said yesterday.
“I t hink t hose who a re aga inst t he original bill will not change their stand. They will be against the new version,” he said.
Suarez sa id he was opposed to the original version but would study t he compromise measure the House leadership presented on Wednesday
the operating funds of the Accredited National Political Parties (APPs) and shall be used directly and exclusively for party development and campaign expenditures. These expenditures include party administration, recruitment and civic education, research and policy development, education and training of members, institution-building and constituent outreach programs, other reasonable logistical and operational expenses that are essential in strengthening the party, operating and traveling expenses, information dissemination, advocacy campaigns, production and distribution of electoral paraphernalia and other expenditures under Section 102 of the Omnibus Election Code. The bill also provides that criteria for eligibility to receive the said fund are based on political representation, organizational strength and mobilization capability, performance and track record of the party. The total amount of state subsidy fund shall be distributed as follows: 5 percent shall be used exclusively for monitoring purposes and the conduct of information dissemination campaigns and voters’ education; 30 percent shall be proportionately and ratably distributed to APPs represented in the Senate based on the number of seats
obtained in the most recent general elections. Likewise, 65 percent shall be proportionately and ratably distributed to APPs in the House of Representatives based on the number of seats obtained in the most recent general elections. It also provides that disclosure and performance monitoring under this Act shall consist of the following: (a) the Commission on Audit (COA) shall examine the financial reports of the APPs on their use of the State subsidy; (b) APPs shall institute internal control mechanisms to promote accountability and transparency and (c) officials of every APP shall submit a sworn statement of their assets and liabilities to the Commission which shall be made available to the public at least six months before elections. HB 6551 shall apply to political parties duly registered with and certified to as such by the Commission on Elections. Parties are also mandated to craft clear policy agenda and program of governance consistent with their party philosophy and ideals. Each party is also mandated to formulate a system on nomination and selection of candidates, in which all party members are involved. Another vital provision is that voluntary contributions bill/PAGE 7
Bill to subsidize political parties nears House OK THE House of Representatives has approved on second reading a bill that would grant state subsidy to political parties that seek to level the playing field among all candidates during elections and to reduce opportunities for corruption. House Bill 6551, known as “An Act Strengthening the Political Party System, appropriating funds therefor and for other purposes,” was steered through plenary by the Committee on Suffrage and Electoral Reforms chaired by Rep. Elpidio Barzaga Jr. The bill consolidated three original measures, House Bill 49, House Bill 403 and House Bill 159, which were authored by Reps. Rufus Rodriguez (2nd District, Cagayan de Oro City), Juan Edgardo Angara (Lone District, Aurora), Maximo Rodriguez (Party-list, Abante Mindanao), Raymond Democrito Mendoza (Party-list, TUCP) and Arthur Yap (3rd District, Bohol), respectively. “We have to institutionalize and strengthen our political parties by introducing reforms in campaign financing through effective and transparent mechanisms to level the playing field and eliminate opportunities for corruption,” the authors said. The proposed Political Party Development Act of 2012 mandates that a state subsidy be created to augment
before Congress went on its three-week Halloween recess. Another anti-RH congressman, Florencio Noel of the party-list group An Waray promised to go over the new draf t during the break. A t h i rd R H oppo nent, Rufus Rodriguez of Cagayan de Oro City, said nothing has changed
in his opposition to the bill, including the compromise version. Suarez said the minority group, which includes Pampanga Rep. Gloria Macapagal-Arroyo, is not taking a collective stand on the new bill. “As in the case of the original version, it’s still a conscience vote,” he said. Pro-RH Speaker Fe-
liciano Belmonte Jr. has described the compromise measure as a “definite step forward” as it “addresses a lot of objections to the original bill.” He sa id one of t he changes introduced in the new bill is a provision ensuring that the process of fertilization and conception would not be impeded or aborted.
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BusinessWeek 12 Developers told to diversify October 26-28, 2012
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REAL ESTATE developers should review the market to see where there is actual growing demand and diversify offerings accordingly, while the government should make other areas of the economy attractive to investments in order to avoid an excessive focus on the property sector, an economist said in a public forum last Tuesday.
“There is a developing bubble. It seems there is no problem with the commercial and office [sectors], they’re very solid. And for the country’s total housing backlog of 3.9 million [units], a part of the low-cost sector -- meaning P3 million and below [per residential unit] -- is where the deficit is,” Winston Conrad B. Padojinog, dean of the University of Asia and the Pacific (UA&P) School of Management, said at “The Real Estate Seminar: Is a bubble in the Philippine Real Estate Sector Developing?” at the school’s campus in Pasig City last Tuesday. “However, there seems to be a growing surplus of over 400,000 units for [residential units priced at] P3 million and above, the low- to midincome sector.” A bubble is widely defined as a temporary condition characterized by overvaluation of assets due to speculation that eventually leads to a sudden drop in consumption as the market corrects to actual demand. Asset bubbles usually occur in highly liquid financial markets when banks loosen lending standards, property supply outpaces demand, and the market value of properties are no longer supported by their fundamental values, Mr. Padojinog explained. A real estate analyst, however, downplayed the likelihood of a real estate bubble developing in the
near term. “I guess we’re just being overly cautious, as there is really an unprecedented level of development and unprecedented economic growth,” David T. Leechiu, country head of property consultant Jones Lang LaSalle Leechiu, Inc., said in the same briefing. He noted that, last year, 95% of office spaces across Metro Manila’s 15 central business districts were preleased, suggesting robust demand and tight supply. While Mr. Padojinog said that while a bubble may not be clear to some right now, there are measures sectors concerned may take to make sure it does not form. “For developers they must cater to segments where there are deficits,” Mr. Padojinog said. “By catering to that, you will be able to generate decent returns and still cater to a market that is growing,” he added. “Of course, they’d nor-
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mally like to cater to high-end because margins are bigger there, but people buy these not out of need, and that setup is prone to speculation.” He cited Ayala Land, Inc., a listed property company that last year launched Bella Vita Corp. (formerly South Maya Ventures Corp.), marking the company’s formal foray into socialized housing beginning with a residential project in General Trias, Cavite that broke ground in December last year. The government should make other areas of the economy attractive to investments in order to channel liquidity to those sectors, Mr. Padojinog added. “On the policy side, we have too many obstacles that have inhibited our banks from investing in and lending money to other sectors,” he noted. “There is a delay in the construction of infrastructure projects, power plant projects are being blocked, mining projects are being hit left and right by the academe and NGOs (nongovernment organizations),” he explained. “You have to promote investments and make other sectors attractive, too. We have to help banks unload their liquidity into other sectors.”
Eton Properties expects lower profit by yearend, eyes re-listing in 2-3 years LUCIO Tan-led Eton Properties Philippines Inc. plans to continue growing its business as it eyes a return to the stock market in two to three years. At the sidelines of the firm’s annual stockholders’ meeting, Michael Tan, Eton Properties officer in charge, told reporters that the company intends to grow the share of its recurring income from 10 percent to 30 percent in the next five years by building more office buildings catering to business process outsourcing firms. Next year, Eton Properties will have 130,000 square meters of leasable space with the addition of 80,000 square meters of leasable space in Eton Centris. “We are very optimistic about the Philippines’ strong economic fundamentals. Our main drivers continue to be the strong f low of remittances from OFWs and the
fast rising demand in BPO office spaces from outsourcing companies abroad,” said the younger Tan. He said Eton has access to the Lucio Tan group’s vast land bank, and is in the middle of several concept studies for new projects in Makati and Quezon City. The younger Tan said Eton Properties’ earnings and sales may be lower this year, citing the percentageof-completion method in recognizing residential project revenues. Eton Properties posted a net income of P31 million in the first half, significantly lower than the P417.89 million reported in the same period last year, after revenues fell by 60 percent yearon-year to P995 million due to non-recognition of sales of projects that have yet to commence construction. Amid its pending exit
from the stock market, the property company will make use of internal funds and tap bank loans to finance its planned developments. Eton Properties has engaged KPMG to come out with a fairness valuation report and determine a range or value for its tender offer to minority shareholders. “If you delist voluntarily, it’s easier for you to relist later on. We give minority shareholders a chance to exit or sell their shares because after that there’ll be a 5-10 percent capital gains tax next year. By doing this, we’ll be more transparent,” said Tan. Eton Properties is considering to come back to the Philippine Stock Exchange when the “market is good and the company is doing much better,” he added. On Monday, Eton Properties’ board approved a eton/PAGE 7