TWO PUBLIC-PRIVATE partnership (PPP) projects under the Transportation department have been further delayed after the agency opted to push back bid submission deadlines, separate bulletins issued last Friday showed.
Nov 022014
Nov 022014
(Second of two parts) IN LAST WEEK’S article we explained how agricultural companies have to account for the costs of bearer plants or the aggregate of planting costs prior to harvest. We also explained how these costs are currently accounted for in the financial statements. However, concerns about accuracy and complexity prompted the International Accounting Standards Board to amend International Accounting Standard (IAS) 16, Plant, Property and Equipment, and IAS 41, Agriculture. Specifically, bearer plants will be accounted for just like any other plant, property and equipment (PPE). We now continue the discussion on the specifics on how IAS 16 will be applied to bearer plants.
Nov 022014
Philippine Long Distance Telephone Co., the country’s biggest telecommunications provider, insists that rival Globe Telecom’s acquisition of Bayan Telecommunications Inc. (Bayantel) would result in “unfair” competition. PLDT, which earlier obtained a temporary restraining order from the Court of Appeals that effectively blocked a Bayantel takeover by Globe, restated parts of the order in a statement, saying it “has a clear right to be protected.” The statement was in apparent reaction to recent announcements by Globe, which noted that PLDT efforts to block the deal would delay improvements to Bayantel’s about 350,000 customers. The Court of Appeals’ TRO specifically prevents the National Telecommunications Commission from acting on a joint Globe-Bayantel application aimed at allowing Globe to convert Bayantel debts into equity. The conversion of those debts would allow Globe to take a controlling stake in Bayantel, which is undergoing corporate rehabilitation. “It is the position of both PLDT and Smart (Communication) that the arrangement circumvents pertinent laws and regulations regarding the assignment, allocation, or use of radio frequencies that call for the public auction of the contested radio frequencies which remained idle for over 10 years,” PLDT said. “It should be noted that Bayantel’s franchise also specifically prohibits the transfer, sale or assignment of any right or privilege granted to it without the approval of Congress,” PLDT added. PLDT previously said the issue stemmed from an earlier position it took against an agreement between Bayantel and Globe for the joint use of frequencies. PLDT unit Smart earlier argued that the Bayantel Read More …
Nov 022014
Sta. Elena Construction’s maintenance supervisor, Elias Altarejos with Sta. Elena HR head Pinky Rojas and Lancaster officials MANILA, Philippines – The name “Alice” means “noble” and generous indeed is this tribute to loyalty. As part of its corporate social responsibility, Sta. Elena Construction and Development Corporation (SECDC), led by its president, Alice Eduardo, is providing nearly 500 free homes to its employees. The only equity required comes in the form of tenure and loyalty. For this purpose, the company has chosen Lancaster New City in Imus, Cavite where it has acquired an entire Phase covering over four hectares. By pure coincidence, the name of the model unit is “Alice.” The self-contained township is a mere fifteen minutes away from SM Mall of Asia via the CAVITEx. Elias Altarejos, who has been with Sta. Elena from the start, spoke for the entire team when he said: “Isang panaginip ito na ngayo’y nagkatotoo. Kadalasan at karamihan ng employee housing may partisipasyon sa bayad at napakalayo. Sa pabahay ng Sta. Elena ang tanging puhunan ay katapatan, malasakit at dedikasyon. Ito rin ay napakalapit sa Maynila.” Over the last two decades, Sta. Elena Construction has forged a strong reputation for building foundations, ports, roads and bridges, and power plants. The firm has made a name for itself not only in the quality of its work, but also in the way it takes care of its greatest asset: its people.
Nov 022014
BANK depositors have lost nearly P400 million as a result of 2,872 cases of automated machine teller (ATM) fraud – mainly card-skimming – from 2012 to 2013, Pasig City Rep. Roman Romulo said over the weekend. Citing Bangko Sentral ng Pilipinas (BSP) figures, Romulo said that in 2013 alone, some P220 million in deposits were looted on account of the proliferation of illegal personal identification number (PIN)-capturing devices on ATMs. The amount was P45 million, or 26 percent, higher than the P175 million in deposits ripped off in 2012 due to the covert copying of information from the magnetic strip of an ATM card, according to Romulo. “These losses do not include the sum lost by cardholders due to conventional ATM robberies or holdups at gunpoint,” he pointed out. Romulo is author of House Bill 5036 –- the proposed ATM Theft Insurance Act — which seeks to require all banks to extend financial protection to their cardholders against losses due to fraud or robbery. “Banks are duty-bound to safeguard customers and their deposits against all forms of attacks at all times,” Romulo said. Card-skimming refers to the illegal capture of a cardholder’s PIN, mainly via a “skimming plate” sneakily installed by scammers on an ATM. Cloned card Crooks then create a false or “cloned” card that enables them to withdraw or run up charges to the victim’s account. Skimming is also a way for “identity thieves” to steal a cardholder’s personal and account details, thus allowing them to borrow money Read More …
Nov 012014
MANILA, Philippines – Mobile health technology company mClinica is expanding its presence in Southeast Asia after getting funds from Kickstart Ventures Inc. of Ayala-led Globe Telecom Inc. Kickstart, together with foreign venture capitalists 500 Startups from Silicon Valley and IMJ Investment partners from Japan, made the infusion to mClinica to bankroll its expansion in Indonesia, Vietnam and Thailand. This is Kickstart’s 19th investment in just over two years, underscoring the Globe subsidiary’s role as the Philippines’ most active institutional fund for seed and early-stage digital startups. mClinica is the largest pharmacy network in the country with a growing network of over 1,400 pharmacies and access to over 20 million customers. “We have been waiting for a solution like this. With mClinica, we now have new ways to access the pharmacy channel more and gather data in the process. This was non-existent before,” Valeant Pharmaceuticals International Philippines country manager Lito Ardeta said. Farouk Meralli, a 28-year old Harvard School of Public Health graduate, worked as an executive in strategy and management for Roche, Johnson & Johnson and Pfizer before taking the entrepreneurial route and founding mClinica. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Meralli discovered first-hand the challenges pharmaceutical companies face in many emerging markets. “While emerging markets were growing rapidly, we did not have access to the same data we had in more mature markets,” Meralli said. Through mClinica, drug companies could reach pharmacies on a large scale through mobile phones and furthermore create programs that help patients Read More …
Nov 012014
President Benigno Aquino III may be a popular chief executive, but let it not be said that he shies away from unpopular decisions. For example, Malacañang recently announced Oct. 31 as a regular working holiday to the dismay of those hoping for a three-day weekend to commemorate All Soul’s Day. His predecessor Gloria Macapagal-Arroyo, with her “holiday economics,” would have done just that. But Pnoy prefers not to disrupt the economy and observe holidays on their proper dates. Sure, it makes him the ultimate ‘killjoy.’ But a president’s got to do what he’s got to do – even if it’s unpopular. His recent statements regarding his inclination towards re-bidding the Cavite-Laguna Expressway (CALAX) project seems like another “unpopular” move. That is, if you ask business groups such as the Makati Business Club, American Chamber of Commerce of the Philippines (AmCham), Australian-New Zealand Chamber of Commerce Philippines (ANZCham), Canadian Chamber of Commerce of the Philippines (CanCham), Employers Confederation of the Philippines (ECOP), European Chamber of Commerce of the Philippines (ECCP), Japanese Chamber of Commerce of the Philippines (JCCIPI), and the Management Association of the Philippines (MAP). The group, led by the Makati Business Club, recently came out with a collective statement against a possible re-bidding of the project. It will be recalled that conglomerate San Miguel Corp. was disqualified from the bidding because of a typographical error in its bid security. The project was awarded to the Ayala-Aboitiz consortium, which submitted an P11-billion bid. But as it turned out, SMC’s bid Read More …
Nov 012014
MANILA, Philippines – San Buenaventura Power Ltd. Co. (SBPL), the joint venture formed by Meralco PowerGen (MGen), the power generation arm of Manila Electric Co. (Meralco), and a Thai power firm is on track to jumpstarting its 455-megawatt coal-fired power plant in Quezon, an official said. Angelito Lantin, MGen senior vice president and commercial development head said they are raising P40 billion from the debt market to fund the project. He said they are now finalizing the project financing deal with local and international banks to raise the needed amount. MGen and New Growth BV, a wholly owned subsidiary of Electricity Generating Public Co. Ltd. (EGCO) of Thailand, partly owned by Electricity Generating Authority of Thailand (EGAT), have teamed up to form the San Buenaventura power project. Under the arrangement, MGen will own 51 percent of the power facility, including rights to assign up to two percent to an approved assignee, while New Growth B.V. holds the remaining 49 percent. Lantin expressed hopes that the project financing deal would be approved in six months. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We hope that within six months, it will be approved…Everything is geared up for completion of these activities. We hope to issue a notice to proceed very early next year,” Lantin said. San Buenaventura has already signed a power supply agreement with Meralco for the sale and purchase of the plant’s entire output for a 20-year period upon commencement of commercial operations and subject to the approval Read More …
Nov 012014
MANILA, Philippines – Revenues of the country’s key industries grew by 10.8 percent in the second quarter of 2014, led by the double-digit growth rates in the transportation, communications, and real estate sector. Philippine Statistics Authority (PSA)Interim Deputy National Statistician Officer-in-Charge Romeo S. Recide said the total gross revenue index of key industries grew by 10.8 percent in the April to June period, higher than the 9.6 percent expansion a year ago. Among industries, revenues in the transportation and communication grew the fastest at a rate of 21.1 percent in the period, compared to a growth rate of only 2.7 percent growth in the same period in 2013. With a strong and sustained 15.8 percent, the real estate sector improved its gross revenue gain from 11.9 percent last year. Earnings from manufacturing grew by 13.8 percent from three percent last year. The private services contracted this quarter, while finance and trade slowed down, with revenues falling by 10.3 percent and 9.6 percent from 12.0 percent and 12.6 percent, respectively. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Recide said that total employment index improved from a 1.1 percent growth rate in 2013 to 4.7 percent this year. Except for electricity and water, which declined by 0.3 percent, all sectors registered gains. Based on the October 2014 issue of the Quarterly Economic Indices (QEI), growth of the total employment index was largely caused by the upturn of transportation and communication with a growth rate of 5.9 percent, and manufacturing with Read More …
Nov 012014
(Expressing my gratitude to the CMMA for awarding the column Best Business Column for 2014.) Leadership is never easy. People desire positions of high leadership without knowing the many challenges that accompany such titles. Most people equate leadership with high positions, but this is not quite the case and I do have an explanation for this. These people are focused on the perks of leadership; they do not understand the price of leadership. When you’re a leader, all eyes are on you. Every person makes mistakes. No one is exempted from making wrong decisions. When you were a junior, you probably got some tongue lashing or a memo. As a leader, you get the blame for every mistake. The entire team criticizes and comments against you. Your bosses start to doubt your capabilities and you begin to doubt yourself as well. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 I’ve made many bad decisions when I was building my career as an executive in the companies I worked for and I’ve also made many bad decisions as an entrepreneur. But thankfully, over the years I have learned to recognize the warning signs of a bad leadership decision. This is the value of evaluated experience. Perhaps you might find these warning signs helpful, but please do consider the context. These are just hints and not foolproof. But should this list of hints help you make better decisions and avoid bad decisions, then I’d be glad because it has attained its Read More …