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More Japan loan deals expected during first quarter

THE DEPARTMENT of Finance (DoF) said it expects to conclude more loan deals with Japan in the first quarter of 2019.
“The loan agreement for the NSCR (North-South Commuter Extension Project, Pasig-Marikina River Channel Improvement Project Phase IV, and Road Network Development Project in Conflict-Affected Areas in Mindanao, are expected to be signed in first quarter of 2019,” the DoF said in a statement on Monday.
The signing of the loan agreements of the three infrastructure projects follows the exchange of notes between the Philippine and Japanese governments in November.
When the projects are backed by loan financing, the contract awarding follows.
Loans from Tokyo are tied, meaning contractors to be selected are Japanese.
The NSCR Extension Project extends both ends of the Malolos-Tutuban line to Clark International Airport (CIA) in Pampanga, and to Calamba, Laguna.
The Pasig-Marikina River Channel Improvement Project Phase 4 meanwhile covers the final phase of the flood control project involving improvement works along the Upper Marikina River, from the downstream of the Manggahan Floodway to the Marikina Bridge, and includes the construction of the Marikina Control Gate Structure.
The Road Network Development Project in Conflict-Affected Areas in Mindanao meanwhile involves the construction and improvement of the access roads to arterial roads which improves access to main cities in Mindanao.
Finance Undersecretary Mark Dennis Y.C. Joven told reporters on Friday that the DoF also expects to sign loan agreements with China for the Safe Philippines Project, and the Philippine National Railway (PNR) South Long Haul Project.
“Basically we’re timing the engagement with China for President Duterte’s visit to China in April. For Japan we’re timing it for…the Japanese high-level meeting which will be held in February in Japan,” he said.
Loan agreements signed between Japan and the Philippines cover the Mega Manila Subway; the Metro Rail Transit-Line 3 (MRT-3) Rehabilitation program; the New Bohol Airport Construction and Sustainable Environmental Protection Project Phase 2; and the Arterial Road Bypass Phase 3 project.
Chinese funding covers the Chico River Pump Irrigation Project, the New Centennial Water Source Kaliwa Dam Project, the Binondo-Intramuros Bridge, the Estrella-Pantaleon Bridge, and drug rehabilitation facilities in Sarangani and Agusan del Sur, among others.
“We are fortunate to have the full support from our friends in the region. Both Japan and China have committed about $9 billion each in investments and official development assistance (ODA), while South Korea has pledged up to $1 billion in ODA. These commitments complement the support we are getting from multilateral development institutions,” Finance Secretary Carlos G. Dominguez III was quoted as saying.
“The magnitude of the ODA we are receiving should be credited to President Duterte’s rebalancing of our foreign policy,” he added. — Elijah Joseph C. Tubayan

Revisiting the TRAIN Law

Nothing is forever, except change. The wise words of Buddha proclaim the undeniable truth that the only thing constant is change. Life is a process of becoming; thus, we should always keep ourselves abreast with the changing times. After all, progress is impossible without changing the status quo.
For most of us, the beginning of the New Year is a time to restart, reboot, and reassess our personal goals. As the first month of 2019 unfolds, it is high time to revisit the resolutions we’ve set — how far we’ve come and our rooms for growth. For the government, now is the time to reevaluate existing policies or reform laws to meet new exigencies. As taxpayers, it is important to know the recent developments in order to thrive and survive amidst the demands of our dynamic everyday life.
A little more than a year ago — on Jan. 1, 2018 to be exact — the Tax Reform for Acceleration and Inclusion (TRAIN) Act took effect. Being the first package of the Comprehensive Tax Reform Program (CTRP), TRAIN 1 introduced a lot of significant changes. Among its purposes was to raise revenue for the government’s social services and infrastructure programs. TRAIN 1 reduced personal income taxes after 20 long years of non-adjustment of tax rates; but it imposed higher excise taxes on automobiles, petroleum products, tobacco, sugar-sweetened beverages and other non-essential goods. The legislators intended that with the people’s support, all these reforms will ultimately result in lower prices, more job opportunities and a brighter future for each and every Filipino.
Literally and figuratively, the TRAIN came to pass accompanied with much noise. Heated discussions ensued in both chambers of Congress. Some advocates say it arrived as a Godsend and was timed perfectly. Others claimed it was hurriedly enacted, without the ordinary taxpayer being duly informed of its many implications. Being the most recent and comprehensive economic legislation by far, the public sought to better understand the law and its impacts – on take-home pay, prices of goods and services, and consumer spending patterns. As a response, several developmental and business organizations — including professional services firms such as P&A Grant Thornton — organized seminars on the law and the latest implementing regulations from the Bureau of Internal Revenue, to educate Filipinos on the relevant amendments.
Before the implementation of the TRAIN Law, its detractors theorized that the increase in petroleum prices would cause a domino effect and, ultimately, lead to an increase in the prices of goods and services, falling on the shoulders of consumers, especially the poor. Lo and behold, the rise in prices of everyday commodities was very much felt since the beginning of 2018. Burdened by the price shock, there was an uproar from citizens seeking the suspension of the law. While it is true that the TRAIN Law was not all to blame, we cannot discount the inability of ordinary people to afford rice, not to mention softdrinks, alcohol, and cigarettes, and the fuel necessary for daily transportation. For someone who drives almost daily, I could very well imagine how taxi drivers might be dealing with gasoline prices that spiked to a record-breaking P60.87 in October. Mothers and homemakers found themselves on the front lines as their household budgets bought fewer and fewer groceries. Restaurants started skimping on portion sizes or simply charged more.
Although the individual income tax brackets have finally been adjusted and augmented by the TRAIN Law, they were accompanied by a whopping surge in inflation. In October, inflation hit 6.7%, moving even further away from the Bangko Sentral ng Pilipinas’ target range of 2-4% for 2018. Although the causes include world oil prices or other forces, it is clear that the rise in inflation was partly caused by TRAIN. Adding fuel to the fire, whereas the higher excise taxes target the rich, the increase in prices hurt the poor the most. Hence, the wide gap between the rich and the poor remains.
The question now is: Did TRAIN 1 attain its objectives? Or more specifically for the individual: Was the increase in net income due to the decrease in income tax rates enough to counter the higher inflation rate and increase in prices? The answer lies in whether or not there has indeed been an improvement in the effective purchasing power of Filipinos. Purchasing power is an important indicator of the economic condition of the nation. All else being equal, inflation decreases the amount of goods or services one is able to purchase; and reduced purchasing power leads to a decrease in living standards. It is hoped that the tax reforms will produce more benefit than harm, and that such advantages will trickle down to ordinary people sooner. Periodically reviewing the effects of the law is key, along with efficient execution, to ensure that tax collection is indeed put to good use.
Notwithstanding its drawbacks and the appearance to most consumers that the promise of the TRAIN law holds no water, Budget Secretary Benjamin E. Diokno denied a report that the government has failed to reach its target revenue collection for 2018. He ruled out halting the implementation of the TRAIN law, saying that measures are in place to temper the harmful impact of higher prices. Suspension then is out of the question. For most of 2018, Mr. Diokno and President Rodrigo R. Duterte rejected calls to review the controversial tax reform law, saying it is needed for economic growth. Then, there was a change of heart sometime in October. The government announced, albeit with initial reluctance, that the P2-increase in fuel excise tax scheduled in January 2019 will be suspended. At that point, world oil prices noticeably dropped, as global supply outstripped demand. The suspension of the TRAIN Law was lifted.
Now, we welcome the New Year with the second tranche of the TRAIN Law. On Thursday, Jan. 10, the Department of Energy (DoE) announced that 444 retail stations nationwide are now imposing the second wave of excise taxes on petroleum products, as mandated by the TRAIN Law. The DoE expects other gas stations to follow suit in February.
On a more positive note, the Philippine Statistics Authority reported that headline inflation decelerated to 5.1% in December. The peso, which had been weakening against the dollar last year, slightly recovered on the first and second weeks of January. Gasoline prices receded to P45.50 per liter. The performance of the Philippine Stock Exchange improved and reflected growing business and investor confidence.
Let us then choose to be grateful for these recent, positive developments and have faith that the government will remain vigilant in closely monitoring the imposition of taxes vis-à-vis the prices of basic goods and commodities. Let us hope that the President and his economic advisers will act more responsively to address the concerns of the ordinary taxpayer in light of the ever-changing times, especially punctuated by volatile crude oil prices.
It is essential to always know the changes in our tax laws, and the corresponding consequences, not only to ensure compliance and avoid risks, but also to assert our constitutional rights as citizens. And together, let us pray that the tax reforms this year, moving forward, would lead us to a more equitable and fast-growing Philippine economy conducive to a life worth living.
 
Aleli Carissa D. Gimena is an associate of the Tax Advisory and Compliance Division of P&A Grant Thornton.
Aleli.Gimena@ph.gt.com
+63(2) 988-2288

‘WALANG’ forever: Universal charge in electricity and PSALM

We have the 2nd or 3rd most expensive electricity in Asia (after Japan and Hong Kong or Singapore) mainly because there are many charges that are imposed on our monthly electricity bill. The biggest item is the generation charge (goes to power generation plants) plus eight other items: transmission charge, distribution charge, supply charge, metering charge, system loss charge, universal charge, feed-in-tariff allowance (FIT-All), VAT and other taxes.
This column has discussed many times the FIT-All or guaranteed high price for renewables for 20 years, also competition in power generation that are reflected in WESM prices, the transmission charge, system loss charge, others.
I get intrigued by the universal charge (UC) because it contains four items (UC-ME, UC-EC, UC-SCC, UC-SD) that seem forever. UC is provided in the EPIRA law of 2001, Section 34, to be paid by all electricity consumers nationwide.
The UC fund administrator collected by the distribution utilities, electric cooperatives and other electricity suppliers is the Power Sector Assets and Liabilities Management Corp. (PSALM). It has three functions under the EPIRA law: (a) privatize NPC generation and Transco transmission assets, (b) manage liabilities of NPC debts, obligations of electric coops to NEA and other agencies, and (c) administer the collection and disbursement of UC funds.
Below are the current UC rates, UC remittances received by PSALM until September 2018, and its petition to avail huge funds.
What are these four components?

1. SCC — excess of the contracted cost of electricity by the National Power Corp. (NPC) over the actual selling price of the contracted energy output.

2. SD — financial obligations of NPC which have not been liquidated by the proceeds from the sales and privatization of NPC assets.

3. ME – subsidy for steady supply of electricity in small island provinces and far-flung areas.

4. EC — for watershed rehabilitation and management.

So PSALM is sitting on and administering a huge pile of cash from us electricity consumers. Some problems and issues that I see here.
Universal Charge (UC) Rates, Remittances, and PSALM Availment
One, those old SCCs and now SDs, these were contracted since the early 90s during the power crisis and consumers have been paying for them. After about 27 years they are still there? The UC rates do not even decline through time and we have to keep paying for them forever? Wow, very lousy.
Two, the ME subsidy for small island provinces and far away areas, they are forever too? Why can’t they have their own baseload, 24/7 power plants (coal, hydro, geothermal, etc.) and just augment with big gensets running on diesel during peak hours, so that the ME subsidy can be eliminated?
There is a moral hazards problem by NPC-SPUG (small power utility group) here. The agency might dislike that those areas will have their own baseload plants because that will ultimately eliminate their agency, their jobs and perks. Even then, those existing NPC gensets are not enough so those islands suffer regular brownouts, which adversely affect their tourism, commercial and industrial businesses.
Three, PSALM is a generation player, it manages and operates NPC plants that are not yet privatized and joins the competition for power supply. It can “sell low” at a loss, then raid the UC funds to recover its losses and appear to be financially healthy.
This creates a moral hazards problem too. PSALM will have little incentives to hasten the privatization of the remaining NPC plants. It can become a forever bureaucracy funded by forever UC subsidies. PSALM becomes another anti-competition factor in the Philippine electricity market.
To have cheaper electricity, we should do away with all subsidies as much as possible. Power plants that sell expensive electricity, whether conventional or renewable, base load or peak load, let them sink. Remove UC, remove FIT-All, over the long-term. Consumers interest of cheaper, stable electricity should be paramount over all other business, bureaucracy and taxation interests.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.
minimalgovernment@gmail.com

Revolutionizing tax filings and payments

Low tax rates can mean high revenue collections if implemented and administrated correctly. But to do that, the taxes first need to actually be collected. Based on the BIR’s 2017 Annual Report, most of the tax collections for individuals came from withholding taxes on wages. Of the P390.85 billion collected from individuals, P317.74 billion came from the withholding tax on compensation income earners.
Other individuals, such as Self-Employed and Professionals (SEPs), contributed only P17.61 billion. This amount is lower than the collections on Capital Gains Tax or other withholding taxes, which contributed the remaining P20.84 billion and P34.66 billion, respectively.
In other words, it equates to a very low voluntary compliance among taxpayers, particularly SEPs.
A possible reason for these dissonant figures is the byzantine bureaucracy plaguing our tax system. This complex system benefits no one and serves only to discourage taxpayers from being compliant.
Reforming this system by making it simple, fair, and efficient is the goal of the Comprehensive Tax Reform Program. While it proposes a wide-ranging change, it mainly concerns itself with tax policies.
The tax administration will need its own reforms as well.
One such solution is the successful implementation of the electronic filing and payment of taxes. By doing so, it will improve voluntary compliance and broaden the taxpayer base.
The BIR already has the Electronic Filing and Payment System (eFPS) but it remains underutilized and tedious to use. What the BIR needed was to authorize third parties to develop their applications that would create effective electronic channels.
On Nov. 8, 2018, the BIR addressed that problem by launching the Electronic Tax Software Provider Certification (eTSPCert) System. This initiative would allow the BIR to accredit individuals or businesses who provide electronic tax filing and payment channels. The applications developed could be for e-filing only, e-payment only, or a combination of both, like the TaxWhizPH mobile app.
The program is sponsored by the United States Agency for International Development (USAID) and its e-PESO project.
Essentially, a software developer can apply for certification and will be provided with guidelines by the BIR. The application would then be thoroughly evaluated before being certified. There will be a no-contact policy between the applicants and any BIR personnel.
For electronic filing software, the BIR will check the forms the app will produce and verify its accessibility in the BIR’s database. For electronic payment software, they will check whether the collection file structure is consistent with their specifications.
There will also be no fees for the certification process.
This project is meant to make compliance easier for taxpayers, but doing so also benefits the government. With a more accessible and less complex system in place, doing business in the country will be much easier.
This will be a welcome development after the country’s drop in the Ease of Doing Business rankings in 2018.
Based on its latest report, the country dropped eleven places from 113th to 124th out of 190 countries. One of the factors in measuring the Ease of Doing Business is the ease of paying taxes. By simplifying its process, the Philippines could see an improvement in its rankings as well.
Aside from that, the government will also benefit by broadening the taxpayer base and lessening corruption.
Based on the BIR’s latest annual report, there are only 19,260,058 registered individual taxpayers. This amounts to less than half of the 40 million working population during that period.
It should also encourage delinquent taxpayers to comply, especially those who gave up only because of the convoluted tax system. Fear of making mistakes and fear of being harassed are other reasons taxpayers may use to justify evading taxes.
These will all be addressed by the implementation of electronic channels.
Since it is automated and there will be little to no contact with BIR personnel, the chance of corruption and harassment is drastically lessened.
Beyond just providing electronic filing and payment channels, other features could be included in the application as well. Innovation will be the key in the competition that will ensue among certified applications. For instance, the TaxWhizPH app’s features of immediately providing the applicable forms and automated calculations of tax due will be sought after. It also includes game-changing features, such as the automatic extraction of relevant data by taking pictures of a receipt.
The goal of these electronic channels should be to make the filing and payment of taxes more convenient. The development of new features should revolve around removing human error, such as miscalculations or missed deadlines.
The TaxWhizPH app’s built-in tax calendar combines the warnings of upcoming deadlines and reminders of new BIR issuances. As a mobile application, it is also easy to keep at hand.
These types of applications will be most useful to self-employed and professionals who have to handle their own taxes. Often, with little to no help from anyone. These programs will provide that needed help — providing the necessary forms and guiding them through the process.
The TaxWhizPH mobile app can already be downloaded via Google Play Store. To subscribe for free, simply visit app.acg.ph.
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
 
Raymond A. Abrea is a member of the MAP and one of the 2017 Outstanding Young Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) and the Center for Strategic Reforms of the Philippines (CSR Philippines).
consult@acg.ph.
map@map.org.ph
http://map.org.ph

Relax, reflect and rejoice

By Raju Mandhyan
WE are hitting week two since the year turned and the rigmarole of life catching up. The waking up to a yearning of coffee, the shoving of self into some fitness regimen, the pulling up of the socks to march into the day and the constant flicking through the beeps, the tweets and the pings from our soul and solace stealing smartphones. Life begins to coil around us like Kaa from Mowgli and take us for a spin while we strive and struggle to keep the train of our lives on track.
A motivational speaker friend of mine from Dubai, Rohit Bassi, put up a great message at the start of the year where he claimed that the whole world and especially motivational speakers like us will urge you into setting goals, micro-minding time, working hard, working smart; hustling and bustling towards your chosen dreams and purpose in life. That is all fine and dandy, claims Rohit Bassi, but at the same time we need to also set in intentions and time to relax, reflect and rejoice. Relaxing, reflecting and rejoicing will give you inner peace and peace inside will help your strengths and energy flow and flourish instead of them being all churned and twisted like a Kaa on an overdose of nitro coffee.
How does one relax, reflect and rejoice?
So there was this one time, I was at this motivational seminar and the speaker was ranting away like “not only will you become the captain of your own ship but the future will be yours to hold and behold; the world, ladies and gentlemen will be in your pocket. You will win and win again and again!” Just as he was about to pause from his huffing and puffing, an elderly man raised his hand and haltingly asked, “And then how big a deal will it be should I really and truly win this world?” The crowd in the room roared into laughter and the speaker-man literally shrunk into a kitten. The point was well made and the message today is that, yes, please chase all the dreams you would like to chase and set all the goals you want to set but do realize that bigger men and women before us have tried to conquer and own the world and many of them like Alexander the Great, rumor has it, was buried with his hands outside the ground evidence to the fact that we take nothing with us when we move onto the afterlife. All that we win and claim to own stays back and continues belonging to the world which we grab it from. To relax then is to keep awareness in the back of our minds that the life we live is just a game and the numbers that we score are only good until the game lasts. Also, we do not have to always win but we do, always, have to play the game well.
Yes, our smartphones have stolen our souls and our solace. It is a fact, look around us and notice how almost everyone from a seven-year-old to a 70-year-old is stuck to some kind of an interactive gadget. Take that away from them and their eyes begin to roll, their lips curl and it seems like you are choking their life support system. Back in the day people used to go out for an after-dinner stroll, curl up under a tree with a book or just sit by the ocean and spend time reflecting upon life, upon relationships and upon the finer things of living. Nowadays, it takes a herculean effort to just sit down for a while and do nothing but gently browse through our own thoughts and feelings. Authors Arthur L. Costa and Bena Kallick in their book, Habits of the Mind, claim reflecting on work enhances its meaning. Reflecting on experiences encourages insight and fosters all around nurturing and growth of self and self in relation to others. Just as we set goals, let’s also set aside spaces of time which have no goals.
Ah, and the idea of just, plain rejoicing for the sake of rejoicing makes me smile!
My friend, motivational humorist and international speaker Scott Friedman, has spent a lifetime teaching and preaching the idea of Celebrate. In fact, he has written a whole book on the why, the how and the when of celebrating. In his book he shares scores of hard core, case studies where individuals and organizations focused on being grateful and appreciative as their core values had improved engagement scores and improved productivity. Once over drink and dinner, he mused over the thought that perhaps the gift of life was a gift of freedom for us humans to just enjoy and play here on earth. That conversation came back to me recently, when someone jokingly said, “Hey Raju, What if when you meet up with Saint Peter at the Pearly Gates, and he asks ‘how was Heaven?” Yeah, ever reflected on that angle? It is something to think about, huh? And if you do not wish to strain your mind so much, then just go play, celebrate and, yes, most of all rejoice.
Download this into your souls, and have a great year and a life.
 
Raju Mandhyan is an author, coach and speaker.
www.mandhyan.com

Thinking out of the box

By Tony Samson
“THINKING out of the box” is a catch phrase for change and transformation, usually of the radical kind. The exhortation to throw out existing rules and let the imagination go bungee jumping is a common opener for strategy sessions held out of town. The idea is to look at the organization as an outsider: you have just acquired this company, and you want to shake it up.
The present way of doing business is suspect. And those with the least emotional investment in the organization get the biggest chunk of talk time with license to scoff at the outdated ideas of the old timers, even if these contributed to the profitable years of the organization — what got us here today won’t get us there tomorrow.
Rookies and those who just got their e-mail addresses and calling cards are the cheerleaders for upending the status quo. After all, they stand to benefit the most when old boxes are eliminated, and new ones are created. The boxes in this case are organizational, and desirable to get into, not out of, especially when they are positioned much closer to the top.
What if something out of the box is denounced as impractical or too risky? The defenders of the status quo (or common sense) are automatically ridiculed as dinosaurs. Jurassic is the preferred period. It is important to point out here on behalf of the big lizards that dinosaurs lived for a hundred million years before they became extinct. Human beings, the newer species, have not yet reached their first million years.
The romance of the untried and untested is all the rage, even in politics. Experience is sometimes equated to being a washrag “trapo” or traditional politician. The untested rookie is seen as more pristine, albeit also clueless.
Out-of-the-box thinking, even when it embraces the loony and eccentric, is given a respectful hearing. One can imagine the facilitator in a seminar, with marker in hand and whiteboard before him jotting down the silliest ideas in bullet points — close down all the branches and go to the Internet (yeah, that’s good — do we still need head office?), everybody should work from home (yes, good for traffic)…eliminate the top two levels of management to flatten the hierarchy — wait a minute, let’s table that. Next?
The appeal of anything radical lies in its reckless promise of redemption. It has no track record — how do we know it won’t work if we don’t try it? It cannot be attacked — you’re too negative with new ideas. The flip side is not mentioned at all — can we afford this loopy experiment? The seduction of novelty lies in the false hopes it raises before crashing into a reality check.
One lesson learned from the 2008 financial meltdown is the folly of even just a few fund managers thinking out of the box. They cooked up a novel financial instrument called a Collateralized Debt Obligation (CDO). The underlying assets were housing loans to sub-prime borrowers, or NINJAs (No Income, No Job Also), with the expectation for repayment coming solely from the appreciation of the mortgaged properties. This new market was unregulated and became ever more complex and unlike any product in the current box. Even the rating agencies were fooled, or in cahoots, giving the holders of the overvalued CDOs triple A ratings.
The downside of revolution is seldom calculated. When out-of-the-box thinking goes out of control, the dinosaurs not yet out of the organization are asked to clean up the mess and put the broken pieces back in the box, a much smaller one this time.
The most famous box of all, which is really a large jar, belongs to Pandora. The first woman in Greek mythology is given different gifts by the gods with Zeus throwing in a dose of Curiosity. So even when admonished not to open the box/jar, Pandora, like Eve the other first woman unable to resist a fruit diet, allowed Curiosity to get the better of her.
Opening the box, Pandora unleashed evils like ills, toils, and sickness. Quickly closing the box when she realized the harmful effects, she left at its bottom, still unreleased the last item there, which was Hope.
Thinking out of the box shouldn’t lead to boxing out thinking. Every bungee jumper knows he has to check if the rope can take his weight, is of the right length, and is tethered firmly on a strong anchor…before he jumps.
 
A.R. Samson is chairman and CEO, TOUCH xda.
ar.samson@yahoo.com

Palace to look into passport data breach

By Arjay L. Balinbin, Reporter
MALACAÑANG SAID on Monday it will look into the alleged passport data breach, together with the Department of Foreign Affairs (DFA), the Presidential Communications Operations Office(PCOO), and the United Graphics Expression Corporation (UGEC).
“Well, today we are writing the DFA regarding that matter; we also writing PCOO relative to the same; we are writing also UGEC ganun din (the same). So gagalaw iyan (that will move),” said Presidential Spokesperson and Chief Presidential Legal Counsel Salvador S. Panelo.
Foreign Affairs Secretary Teodoro L. Locsin, Jr. said in a Twitter post last week that his department was “rebuilding” its files on passport holders after a “previous outsourced passport maker took all the data when contract (was) terminated.”
Weighing in on this controversy via social media, former foreign affairs secretary Perfecto R. Yasay, Jr. cited the DFA’s awarding in 2015 — “without bidding on condition that no part of the contract can be subcontracted or assigned to a private printer” — the operation of the electronic passport system to state-run APO Production Unit, Inc., an attached agency of the PCOO.
“In stark violation of that condition, APUI engaged the services of the United Graphic Expression Corporation for the production of the new E-passports,” Mr. Yasay said further, adding that the contract to APUI was awarded even amid a still “subsisting” contract from 2006 between the Bangko Sentral ng Pilipinas and Francois-Charles Oberthur Fiduciare (FCOF).
Mr. Yasay also recalled that on Feb. 10, 2017, Mr. Panelo, as chief presidential legal counsel, “determined that the assignment of the passport printing services to UGEC was illegal and demanded that all rights over all the personal data, source code, data center and other information relating to the performance of the E-passports printing services unlawfully subcontracted to UGEC be reconveyed to the DFA or be acknowledged to be exclusively owned and controlled by the DFA.”
“Upon information and belief, it appears that UGEC, which continues the illegal production of the E-passports, has not complied,” Mr. Yasay said.
Mr. Panelo, for his part, said on Monday, “That’s what he (Mr. Yasay) said. Whether that’s covered by a particular document or not, I do not know.”
Mr. Panelo added: “Pinatingnan niya lang sa akin iyong joint venture (He only asked me to look into the joint venture). Eh sabi ko naman (I told him), you have to give me all the documents first. Eh kulang iyong mga dokumento kaya hindi ako makagawa ng (But the documents were not complete, so I could not give a) conclusive opinion on the matter…. So we’ve been asking them to give us all the documents relative to that matter.”
At the Senate, opposition Senators Risa N. Hontiveros-Baraquel and Antonio F. Trillanes IV filed resolutions seeking an inquiry into this controversy.
“As the Philippines is about to begin implementation of the National ID system, reports such as these do not inspire confidence in the capacity of government to protect our data and its ability to police and hold accountable private contractors who process personal information,” Ms. Baraquel said in Senate Resolution No. 981.
“There is a need to conduct an investigation in aid of legislation on the matter for the Senate to decide whether or not there is a need be to amend and/or strengthen our existing Data Privacy Act,” Mr. Trillanes said in his Senate Resolution No. 987.
Senator Aquilino L. Pimentel III had earlier said he also plans to file a resolution to look into the reported passport data breach. — with Camille A. Aguinaldo

Majority leaders to resolve abolition of Road Board

By Camille A. Aguinaldo, Reporter
SENATE Majority Leader Juan Miguel F. Zubiri on Monday said he plans to meet with House Majority Leader Rolando G. Andaya, Jr. to agree on the “parameters of amendments” before the Senate decides on a proposal for a bicameral conference committee to resolve the Road Board abolition.
In an interview with reporters after a caucus by the senators on Monday, Mr. Zubiri said some senators wanted to maintain the Senate position on the issue — which is to adopt the House bill on the abolition of the Road Board — while he and Senate President Pro-Tempore Ralph G. Recto, among others, wanted amendments to the bill to make it more transparent.
For the Senate to adopt the House bill means there would be no need for a bicameral committee, which Senate President Vicente C. Sotto III said is his chamber’s stand.
“Generally, the sentiment was there is no need for a bicam because we have adopted the House version. We tasked Senator Zubiri, the Majority Leader, to talk to the Majority leader of the House, Congressman Andaya, to find out their reasons why there is a possibility that we can go into a bicam….Nothing official, it’s just talk,” Mr. Sotto III told reporters.
Mr. Zubiri said the senators then agreed on a meeting between the majority leaders of both chambers to settle this matter.
House Bill No. 7436 seeks to have the road user’s tax remitted directly to the National Treasury and to be appropriated for the projects of the Department of Public Works and Highways, Department of Environment and Natural Resources, and Department of Transportation.
Mr. Zubiri said, “Our list of amendments is very simple, that the Road Board be abolished and secondly that the funds be reverted to the National Treasury so the government can use it for whatever purpose necessary. At the same time, it is a line item. It will be transparent.”
“If the House and Senate agree to the parameters, we can do a paper bicam…(meaning) we are in agreement with the amendments. We may have a quick meeting to approve on our side, to approve the House side and we sign the documents,” Mr. Zubiri said.
“We still need to create (a bicam panel) if and when we agree on the parameters. So this is all still hanging until we meet with Majority Leader Nonoy Andaya,” he added.
Mr. Andaya, for his part, said, “It was very clear that he (President Rodrigo R. Duterte) wanted the funds of the Road Board to be used for the budget,…specifically to repair the damaged areas of the typhoon,” Mr. Andaya, who represents the 1st district of Camarines Sur, said in a briefing.
“That kind of statement requires a certain amount of work,” said the House majority leader who also represents the 1st district of Camarines Sur.
He said House Bill No. 7436, as adopted by the Senate, does not contain any provision that will carry out the President’s directive.
“The bill proposed by both Houses is totally opposite (what) the President wants as proposed now,” Mr. Andaya said. — with Charmaine A. Tadalan

House approves bill waiving gov’t fees for fresh graduates

By Charmaine A. Tadalan, Reporter
THE House of Representatives on Monday approved the bill exempting fresh graduates from government fees on pre-employment requirements.
With 200 affirmative votes and zero negative, the chamber approved House Bill No. 172 which intends to provide assistance to new graduates by waiving fees and charges.
If enacted, the bill stated that all government agencies, including government-owned and -controlled corporations (GOCCs) and local government units, “shall not collect fees or charges from new graduates.”
This will include government-issued documents such as police clearance, National Bureau of Investigation clearance, and the Social Security System ID, among others.
As a requirement, covered beneficiaries of the measure shall present a copy of their diploma, or certification from the concerned institution.
It was also provided that the application must be filed within one year after graduation from high school, college or a vocational or technical course.
The assistance, however, will not be granted if the application is for the issuance of a passport or for the purpose of taking a professional licensure examination as conducted by the Professional Regulation Commission.
Moreover, the bill will establish an inter-agency monitoring committee, chaired by the Executive Secretary.
Among its members are the Civil Service Commission, Department of Labor and Employment, Department of Finance, Department of Education, and the Commission of Higher Education.
Applicants who will be found guilty of submitting false proof of graduation will be subject to Article 12 of the Revised Penal Code, which penalizes falsification of documents with “prision correccional in its medium and maximum periods and a fine of not more than P5,000 pesos.”

Sri Lanka leader on state visit to PHL

MALACAÑANG on Monday said the President Maithripala Sirisena of the Democratic Socialist Republic of Sri Lanka is scheduled to arrive in Manila today, Jan. 15, for a five-day state visit to the country.
“On the invitation of President Rodrigo Roa Duterte, H.E. Maithripala Sirisena, President of the Democratic Socialist Republic of Sri Lanka, will undertake a State Visit to the Philippines from 15 to 19 January 2019,” Presidential Spokesperson Salvador S. Panelo said in a press briefing.
He added: “President Sirisena will meet with President Duterte on 16 January 2019 in Malacañang Palace. Their bilateral discussions will focus on areas of mutual interest, including political, economic, agriculture, cultural and people-to-people engagement.”
Mr. Panelo also said Mr. Sirisena is expected to visit the Asian Development Bank (ADB) and the International Rice Research Institute (IRRI) in Los Baños.
“He is also expected to meet the Sri Lankan community in Manila,” the spokesman said further.
Mr. Panelo described Mr. Sirisena’s visit to Manila as “of historic significance.”
“Prior to that, Prime Minister Sirimavo Bandaranaike was the only other Sri Lankan leader to visit, in 1976, since the establishment of diplomatic relations between the two countries in 1961,” Mr. Panelo said.
The Philippines and Sri Lanka celebrated 57 years of diplomatic relations last year. According to the official website of the Sri Lankan Embassy in Manila, the two countries “have always enjoyed excellent relations based on mutual respect and shared values.” — Arjay L. Balinbin

Pulse survey: Filipinos trust US the most, China the least

By Camille A. Aguinaldo, Reporter
MAJORITY OF Filipinos still trust the United States the most, according to a Pulse Asia Research, Inc. survey that also showed China and Russia earning low trust ratings.
The polling firm’s Trustworthiness of Selected Countries and Regional Organizations, conducted from Dec. 14 to 21, 2018, showed that 84% of Filipinos believed that “a great deal/fair amount of trust” should be given to the US.
The survey also indicated that majority of Filipinos trust Japan (75%), Australia (72%), and United Kingdom (57%).
Russia and China earned lower trust ratings with 45% and 39%, respectively.
The survey asked 1,800 Filipino adults on the level of trust that the Philippines should extend to a certain country or organization. The options included “a great deal of trust,” “a fair amount of trust,” “not too much trust,” and “no trust at all.”
China gained the highest distrust rating with more than half of Filipinos or 60% saying the Philippines should give “not too much trust” or “no trust at all” to the country.
This is followed by Russia at 54%, United Kingdom at 40%, Australia at 27%, Japan at 25%, and the US at 16%.
As for regional organizations, the Association of Southeast Asian Nations (ASEAN) and the Asia-Pacific Economic Cooperation (APEC) enjoyed high trust ratings among Filipinos, earning scores of 82% and 80%, respectively.
By region, the survey showed that the US earned the highest trust rating in Visayas at 94%, followed by the National Capital Region (NCR) at 89%, Balance Luzon at 83%, and Mindanao at 74%.
Meanwhile, the NCR had the highest trust rating towards China at 50%, followed by Mindanao at 49%, Visayas at 40%, and Balance Luzon at 30%.
Around the time the survey was conducted, the three Balangiga Bells, which were taken by American soldiers in 1901 as war trophies, were finally returned to their original town. It was also three weeks after the state visit of Chinese President Xi Jinping in Manila when the survey was conducted.
Sought for comment, Presidential Spokesperson Salvador S. Panelo noted that Filipinos are still familiar with the US as the country’s strongest ally.
He added that it may also take some time to acknowledge China’s sincerity.
“It’s understandable for Filipinos to feel that way. We have been used to the States being our ally, so we are used to America. But maybe as we go along, when we see the sincerity of China with respect to agreements between the two countries, maybe their views will change,” he said in a press briefing at the Palace.
The Pulse Asia survey used face-to-face interviews with 1,800 adults nationwide with error margins of ±2.3% at the 95% confidence level for national percentages.

25 gun ban violators arrested on first day of election period

TWENTY-FIVE civilians were arrested for illegal possession of firearms during the first day of the gun period in line with the midterm elections on May, the Philippine National Police (PNP) reported on Monday. In a press briefing, PNP chief Director General Oscar D. Albayalde said the police conducted 4,447 checkpoint operations nationwide on Sunday. “As of 12:00 midnight last night, we have conducted an accumulated 4,447 checkpoint operations resulting in the arrest of 25 persons and the confiscation of 27 Firearms, 168 rounds of ammunition, seven bladed weapons, 22 gun replica, 70 sachets of suspected ‘shabu,’ and 2 glass pipe with suspected ‘marijuana,’” said Mr. Albayalde to reporters. The gun ban period, which will end until June 12, also covers the upcoming plebiscite for the Bangsamoro Organic Law on Jan. 21 and Feb. 6.
HOTSPOTS
Meanwhile, the PNP also identified 19 election hotspots. These are: Sudipen and Balaoan in La Union; Jones, Isabela; Lemery and Roxas in Batangas; Balud and Dimasalang in Masbate; Daraga, Albay; Pagadian and Cagayan de Oro City in Misamis Oriental; Hajji Muhammad Ajul, Lantaoan and Tipo-Tipo in Basilan; Marawi City and Sultan Dumalondong in Lanao del Sur; Mamasapano, Sharrif Aguak, Shariff Saydona Mustapha, and Dati Unsai in Maguindanao. — Vince Angelo C. Ferreras

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