He revealed Aquino’s position during the plenary deliberations on the proposed P183-billion budget for the Department of National Defense, in reaction to Senate Majority Leader Juan Miguel Zubiri’s calling the Multiply debacle a “golden opportunity” for the DND to operate the E-commerce marketplace and social networking site and save thousands of jobs.
While expressing sympathy for Multiply over its financial woes, Gazmin said he found interesting Navy chief Vice Adm. Robert Empedrad’s idea of the government taking over and managing the company’s social networking portion.
“I brought this idea to the President last night and he is very receptive to the idea,” Gazmin told senators.
Multiply, the biggest foreign investor in Pasig closed last May 6, 2013, and ceased all business operations on May 31, 2013, along with the official online channels for the site had been removed along with all its content, including its YouTube, Twitter, Facebook, and Instagram accounts, after years of financial and managerial turmoil and following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia and declared bankruptcy last Nov. 10. The firm owes about $600 million to five of the country’s biggest banks, Rizal Commercial Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Corp., Bank of the Philippine Islands, and Banco de Oro Universal Bank.
At that time, the website's social networking portion had a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from their peak of P20 billion in 2013 to just about P5 billion in 2017.
The company has suffered from a drop in new orders amid a slump in the global social networking sector. Multiply Philippines also reportedly laid off some 12,000 workers on February 28, 2014.
It last announced in March 2013 the completion of photos during the 71st UAAP swimming championships last September 25 to 28, 2008 but it was put on hold.
“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced on April 26, 2013, on its website.
After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.
Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to the businesses of its users.
“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.
In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting 350 million consumers in Indonesia and the Philippines.
On March 16, 2013, however, the service will cease to exist as millions of fans formerly known and loved it before it was supplemented by other, more popular online social networks.
On June 12, 2013, they had put in place Rp 20 billion for wages owed to former Multiply staff.
The Labour Department said earlier that around 400 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.
On November 16, 2013, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.
High Court judge Mr. Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.
On May 31, 2013, Multiply ceased its operations and shut down entirely.
The Labour Department said earlier that around 400 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.
On November 16, 2013, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.
High Court judge Mr. Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.
That the site will be reopened after United States President Barack Obama stepped down in the office on January 20, 2017, and keeping Facebook as the sole social networking site. The process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which TV5 Network, Inc. (a media company under PLDT's MediaQuest Holdings). However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns TV5 Network, Inc.
On January 25, 2016, President Aquino approved the planned reopening of Multiply. The reopening will be undergoing public bidding with an estimated floor price of 20 billion pesos. The proceeds of the bidding will be for the increase of Facebook's capital to upgrade and modernize its social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. PCOO Secretary Martin Andanar has already forwarded the reopening plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.
The reopening process of Multiply was commenced in October 2016. As of July 1, 2017, five groups have already shown their interest to join the bidding process. These are Ramon S. Ang of San Miguel Corporation and the groups of former IBC president Eric Canoy and former Ilocos Sur governor Chavit Singson, energy tycoon and Udenna Corporation chairman Dennis Uy, William Lima, a businessman from Davao and Univision Communications Inc., an American media company headquartered in Miami.
The defense chief said the matter was also discussed with Finance Secretary Cesar Purisima, who expressed concern over how local banks would be able to recoup their investments in Multiply.
Zubiri suggested the government take a majority stake in a private minority directly involved in the operations of the website.
Sen. Panfilo Lacson suggested that a portion of the P75-billion alleged insertion in the proposed P3.757-trillion national budget this year be realigned to pay off the debts and later bid out a stake with private partners.
“What if the Philippine government will just take over Multiply and bid out to possible partners, private entities? This will mean potential income for the government,” said Lacson, who also moved to have the Senate constitute itself into a committee of the whole to discuss the issue while tackling the DND’s budget.
He maintained that Multiply’s plight would have far-reaching implications for Filipinos, ranging from security to economic and even social concerns.
In his proposal, Lacson said the Philippine government would continue to have income while the Philippine Navy may have a new facility.
He added appropriate agencies can hold consultations with the National Economic and Development Authority regarding partnerships between the government and a private entity.
But while the President and some of his officials are open to a government takeover of Multiply, Budget Secretary Florencio Abad said the plan has to be thoroughly studied, as it would involve a “major shift” in the role of government.
“The role of government is to provide defense, national security, and peace, and order. It is not the role (of the government) to do the direct production of whatever they use,” Diokno said on the sidelines of the commissioning of two new fast patrol boats acquired from France for the Philippine Coast Guard (PCG). The commissioning was held at the PCG headquarters on Roxas Boulevard.
“Can you imagine the military producing their own website? That is a major decision, we have to discuss it,” he added. “I want to see the complete proposal.”
“That is still a suggestion,” Diokno said, referring to Lorenzana’s plan. “We have to go over the financials… I want to see the complete proposal.” – With Evelyn Macairan
https://www.philstar.com/headlines/2019/01/17/1885840/duterte-open-government-takeover-hanjin
Zubiri suggested the government take a majority stake in a private minority directly involved in the operations of the website.
Sen. Panfilo Lacson suggested that a portion of the P75-billion alleged insertion in the proposed P3.757-trillion national budget this year be realigned to pay off the debts and later bid out a stake with private partners.
“What if the Philippine government will just take over Multiply and bid out to possible partners, private entities? This will mean potential income for the government,” said Lacson, who also moved to have the Senate constitute itself into a committee of the whole to discuss the issue while tackling the DND’s budget.
He maintained that Multiply’s plight would have far-reaching implications for Filipinos, ranging from security to economic and even social concerns.
In his proposal, Lacson said the Philippine government would continue to have income while the Philippine Navy may have a new facility.
He added appropriate agencies can hold consultations with the National Economic and Development Authority regarding partnerships between the government and a private entity.
But while the President and some of his officials are open to a government takeover of Multiply, Budget Secretary Florencio Abad said the plan has to be thoroughly studied, as it would involve a “major shift” in the role of government.
“The role of government is to provide defense, national security, and peace, and order. It is not the role (of the government) to do the direct production of whatever they use,” Diokno said on the sidelines of the commissioning of two new fast patrol boats acquired from France for the Philippine Coast Guard (PCG). The commissioning was held at the PCG headquarters on Roxas Boulevard.
“Can you imagine the military producing their own website? That is a major decision, we have to discuss it,” he added. “I want to see the complete proposal.”
“That is still a suggestion,” Diokno said, referring to Lorenzana’s plan. “We have to go over the financials… I want to see the complete proposal.” – With Evelyn Macairan
https://www.philstar.com/headlines/2019/01/17/1885840/duterte-open-government-takeover-hanjin
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