Biz Buzz: Mining face-off
The mother of all debates (and ad wars) between those for and against mining will culminate this week during a face-off between industry leaders on March 2, Friday. No less than Manuel V. Pangilinan, chair of the country’s biggest mining firm Philex Mining and chief of the First Pacific group of Hong Kong, will face feisty environmentalist Gina Lopez, the head of ABS-CBN Foundation, in a much-awaited forum that will discuss all the pros and cons of mining. Theirs is ultimately a battle for the ears of President Aquino, who is now in the midst of approving a mining policy framework.
To say that such a balancing act is difficult is an understatement. There are currently three draft executive orders circulating in town and currently making miners and investors jittery.
“We’re confident that it will be resolved equitably,” says Mike Toledo, the newly minted Philex head of corporate affairs and government relations. He added that Philex was “very flexible” with concerns on revenue-sharing or profit-sharing with the government and was hoping that the concerns of the mining industry would be factored in in the upcoming EO.
Asked about the prospective merger and acquisition (M&A) deals on Philex’s table, Toledo said the company was indeed on the expansion mode and looking at opportunities and that such expansion would be “hastened” once the country’s mining policy is clarified. Philex is also keen on exploring offshore opportunities like Burma and Indonesia.
Back to the mining face-off, details on the much-awaited forum have not been finalized but given the media affiliation of the MVP and Lopezes, expect ample or even live coverage by the Kapatid and Kapamilya networks.—Doris C. Dumlao
No to mining, no to debates
Now about that mining sector debate, it is really an effort to bring out the pros and cons of the mining industry to the fore—minus the usual shrill rhetoric—organized by the Philippine Chamber of Commerce and Industry.
The event was set to feature Chamber of Mines stalwarts Philip Romualdez and Gerry Brimo (of Nickel Asia), and Australian business consultant Peter Wallace for the pro-mining panel. The anti-mining panel would have been composed of activists and environmentalists Gina Lopez and Christian Monsod, as well as Puerto Princesa Mayor Edward Hagedorn.
All debaters have confirmed their attendance and everyone was excited to hear the views of both sides.
Unfortunately, Romualdez had to back out at the last minute after his father, former Ambassador Kokoy Romualdez, passed away last week. (The younger Romualdez is said to be considering some kind of political career going forward. Abangan.)
Because of this, the pro-mining camp enlisted tycoon Manny Pangilinan—the chair of the country’s biggest miner, Philex Mining Corp.—who gamely agreed to take Romualdez’s place.
Lo and behold! Mayor Hagedorn suddenly backed out, with one of his functionaries sending word to irate organizers that the Palawan politico suddenly remembered that he had a prior commitment. Then… Monsod also backed out for still unknown reasons.
It is now unclear if the debate would still push through, given the high-powered personalities assembled on the pro-mining side facing a solitary Gina Lopez on the other.
Of course, being trounced in a debate is not a problem for the anti-mining guys … since they’ve been known to favor emotional appeals to the broader public anyway.—Daxim L. Lucas
Sizzling PSE
Not only is the PSE index carving new heights but trading on shares of the demutualized Philippine Stock Exchange itself turned extraordinary last week as share prices soared in heavy volume.
Stocks of the demutualized local bourse surged by P158.40, or 52 percent, last week alone to close at P460 on Friday. An intra-day high of P500 a share was twice hit during the week. For a long time until this month, PSE shares have been locked at less than P250.
Dealers said it started as a dividend play, as the case was in previous years, and is especially true for this year given that the robust capital markets would likely result in higher earnings for the PSE. Some theorize this may also have something to do with share accumulation ahead of the PSE annual elections, but the latest buzz is that some fund was heavily loading up on PSE shares.
Could there be some merger and acquisition play as well given the consolidation trend among major bourses around the world? Some analysts think so. There’s also the potential merger with the fixed income exchange Philippine Dealing and Exchange Corp., but some say any potential gain from such a union alone won’t justify the rate at which PSE shares surged last week.
One dealer said this run-up started shortly after the Securities and Exchange Commission required a more prompt reporting of buying on PSE shares. Instead of brokers being given until 4 p.m. the next day to report purchases of PSE shares, they are now required to inform the SEC until 9 a.m. the next day. So whoever is accumulating the PSE shares recently, the SEC must have some idea.—Doris C. Dumlao
Rotary Foundation vs BIR
Makati Rotary Club Foundation Inc. (MRCFI) director Frank Chavez and eight of the alleged 14 respondents in the BIR case for tax evasion insisted that the BIR’s case against them was premature and baseless.
(The case stems from a piece of real estate donated to the foundation many years ago, which it has been collecting rent or donations for, depending on whom you’re talking to.)
Chavez—who said that tax authorities may have been misled by a disgruntled party pretending to be a whistleblower—says that his clients have not even received any of at least five customary BIR notices sent to parties suspected of having tax deficiencies.
The former solicitor general said that his group has been cooperating consistently with the BIR, having complied with all the requests for production of documents required by the BIR.
The BIR’s latest communication to MRCFI is dated Feb. 14, 2012, requiring it to submit documents on income tax, value-added tax, withholding tax, 12 items on general requirements, 15 items on schedule/breakdown papers, and books of accounts.
Two days later, the BIR—“in obvious bad faith and malice and in clear violation of due process”—announced that it filed the case.
“This is most unfair to MRCFI and the individual respondents,” Chavez added. “During the investigation before any forum, my clients will establish the baselessness of the BIR complaint. They will prove that they are tax-compliant and continue to serve the less fortunate in our society through their humanitarian, charitable, educational and social programs.”
MRCFI, a non-stock, non-profit corporation, also laments that the BIR acted prematurely and with inordinate haste not only in filing the charge but in releasing a press statement, which has damaged the reputation of MRCFI and respected businessmen who sponsor altruistic activities in pursuit of lofty goals and principles. “Nobody made money here,” Chavez assured the BIR and the public.—Daxim L. Lucas
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