DILG tells Mindanao LGUs to maximize local disaster fund for preparedness measures

April 14, 2019 | 11:43 pm

THE DEPARTMENT of Interior and Local Government (DILG) called on more local government units (LGUs) in Mindanao to utilize their local disaster funds for preparedness and mitigation measures instead of just for emergency response in calamity situations. Edgar Allan B. Tabell, chief of the DILG-Central Office Disaster Information Coordinating Center (CODIX), noted that this reluctance among LGUs stems from various cases of being disallowed by the Commission on Audit (COA). But he explained that COA will approve preparedness projects if these are in line with the approved local Annual Investment Program (AIP). “LGUs… have AIP, which is a list of what will be spent or should be spent on, and this should be approved by the… council or local executive,” he explained during the launch in Davao City last week of the Operation Listo: Disaster Preparedness Manual Version 3. Under Republic Act 10121, the Act Strengthening the Philippine Disaster Risk Reduction and Management System, LGUs are required to allocate at least 5% of their annual income as local disaster fund. Of this 5%, the 30% should serve as a quick response fund and the remaining 70% could be used for disaster preparedness, prevention, mitigation and rehabilitation, the DILG official explained. “Everything under AIP is allowed, whether buying a product or spending for activities like drills or information materials,” he added. The enhanced Operation Listo manual now includes a guide for provincial governors in terms of the minimum standards that should be implemented before, during, and after a disaster. — Maya M. Padillo

Iloilo sees growing trend in local tourism during Holy Week

April 14, 2019 | 11:43 pm

THE ILOILO Provincial Tourism Office is conducting a seasonal survey this week, the results of which will serve as a guide for planning promotional campaigns and tourism programs that will cater to the growing number of local tourists during the Lenten holidays. Provincial Tourism Officer Gilbert G. Marin said they have been seeing more groups of families and friends spending the Holy Week outside their homes in recent years. He cited that last year, they recorded 44,337 same day visitors and 10,567 longer staying guests during the Lenten vacation. “Actually, it’s a good opportunity for us to promote our local destination especially since the families go out during the Lenten season,” he said. The most popular destinations are the beaches and inland resorts. “The visitors are expected to flock especially in the beaches in Islas de Gigantes in Carles, Ajuy, and the neighboring province of Guimaras. Their second destinations are inland resorts such as Ephratah Farm in Badiangan, Damires Hills in Janiuay, and the famous Lenten destination, Garin Farm Pilgrimage Resort in San Joaquin,” Mr. Marin said. Meanwhile, the Iloilo International Airport in Cabatuan has also started implementing measures to handle the expected increase in travelers this week. “We are really expecting an influx of passengers. We are expecting an increase in our flights. In fact, I have received in my office the plan of one airline operator to add flights for Manila to Iloilo. Another airline said they will also have additional flights for Semana Santa,” said Civil Aviation Authority of the Philippines (CAAP) Iloilo Terminal Supervisor Arthur M. Parreño. Among the measures are setting up a help desk and a 24/7 medical emergency response, and tighter security measures. The Iloilo airport caters to about 4,000 departing passengers daily, according to Mr. Parreño, with an average of 30 incoming and 30 departing flights. — Emme Rose Santiagudo

200 farmers seen to benefit from solar-powered irrigation in 3 SOCCSKSARGEN villages

April 14, 2019 | 11:42 pm

ABOUT 120 hectares of farmlands cultivated by some 200 farmers are seen to benefit from three new solar-powered irrigation system (SPIS) projects in the region of SOCCSKSARGEN (South Cotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos City). In a statement, the Department of Agriculture-SOCCSKSARGEN (DA-12) said the facilities, with a total cost of P17 million, will provide water in two villages in Libungan, Cotabato, and one in Isulan, Sultan Kudarat. Lucsim Ando, barangay chairman of one of the beneficiary villages, said the irrigation system will allow them to increase their planting cycles. “With the sufficient supply of water now, we can increase our production,” she said. “Approximately, 200 farmers will surely benefit from the SPIS projects in these three sites,” DA-12 Regional Executive Director Milagros C. Casis said. She added that more farmers and local government units have approached them for implementing an SPIS in their areas. “We are receiving proposals from many farmer groups and local government units… we will validate all of these,” Ms. Casis said.

See related story on DA to submit proposal on solar-powered irrigation https://qrgo.page.link/jiD7

DNA test in US confirms Abu Dar is dead

April 14, 2019 | 11:42 pm

A DNA test undertaken by the United States government has confirmed the death of a senior terrorist leader in the Philippines, who was among those behind the five-month Marawi siege in 2017. Officials of the Department of National Defense and the military said on Sunday that the DNA test in the US verified the death of Owayda Benito Marohomsar, also known as Abu Dar. “Oo, positive (Yes, it’s positive). Its Abu Dar’s remains,” said Defense Secretary Delfin N. Lorenzana in a phone message to BusinessWorld. The confirmation came a month after Abu Dar was killed in an encounter in Lanao del Sur. A military official who asked not to be named also confirmed the result, but said they have yet to make an official announcement as they await a copy of the DNA results from the Philippine National Police Scene of the Crime Operatives. The military official said Abu Dar’s death has further weakened the local group that has pledged allegiance to the Islamic State, and there is no likely next-in-command who could replace him. “Ngayon namatay na siya (He is now dead). So it could mean the end also of Daulah Islamiyah Lanao… wala kaming nakikita sa ngayon na pwede pumalit na leader (we do not see anyone who could take his leadership position),” the Mindanao-based official said. Abu Dar slipped out of Marawi during the height of the fierce fighting between extremist groups and government troops that left the central part of the city in ruins. He went on to lead the group Daulah Islamiyah Lanao. He was killed in pursuit operations of the military. He, along with Abu Sayyaf leader Isnilon Hapilon and Omar Maute of the Maute group, are believed to have plotted the attack in Marawi. Both Hapilon and Maute were killed in military assaults towards the end of the siege. — Vince Angelo C. Ferreras

Military says persona non grata declarations vs NPA curtail recruitment

April 14, 2019 | 11:41 pm

MORE LOCAL government units (LGUs) have declared the Communist Party of the Philippines (CPP) and its armed wing New People’s Army (NPA) “persona non grata” in their respective communities, according to the military. Three of the most recent declarations were in the following areas: North Cotabato, made by the Provincial Peace and Order Council; Barangay Camanggaan in Sta. Cruz, Ilocos Sur; and Misamis Occidental, covering all its 14 municipalities. Several areas in the Davao Region and in Negros island made the announcements earlier this year. “With the declaration, the CTG (communist terrorist groups) will have a small chance of recruiting our people especially the farmers, the youth, women and the indigenous people to join this terrorist movement,” 102^nd Infantry Brigade Commander Brigadier General Bagnus P. Gaerlan, Jr. said in a statement. “Likewise, we are expecting an enhanced cooperation between and among the people in giving information on the whereabouts of these terrorist group,” he added. The persona non grata declarations come amid the national government’s direction towards localized peace talks with the communist movement. — Vince Angelo C. Ferreras

Policy rate cut could come as soon as next month — BSP chief

April 12, 2019 | 7:39 pm

A CUT in benchmark interest rates will be considered on May 9, when the Bangko Sentral ng Pilipinas (BSP) Monetary Board (MB) holds its third policy review for this year, the central bank chief said in an interview with Bloomberg Television, even as he cited risks that could force monetary authorities to again hold off such move.

Noting that inflation is “right now… under control”, BSP Governor Benjamin E. Diokno said at the sidelines of the World Bank and International Monetary Fund spring meetings in Washington D.C. that a cut in policy interest rates is “on the agenda” in next month’s MB meeting.

“We’re considering it. I’m sure that will be on the agenda in the next policy meeting,” Mr. Diokno said.

The MB maintained benchmark rates and banks’ reserve requirement ratio (RRR) in its first and second policy reviews on Feb. 7 and March 21 but cut the central bank’s headline inflation forecast for 2019 by a percentage point in each of those meetings to a flat three percent as of late. Headline inflation slowed for a fifth consecutive month to a 15-month-low 3.3% in March from a nine-year-high 6.7% in September and October last year. Inflation averaged 5.2% in 2018, the fastest in nearly a decade.

Policy rates are now at 4.35% for overnight deposit, a decade-high 4.75% for overnight reverse repurchase and 5.25% for overnight lending after increases totaling 175 basis points (BP) in five consecutive meetings last year to counter inflation’s surge, while the RRR for big banks stands at 18% after cuts totaling 200bps also in 2018.

“We increased interest rates by 175 bps last year. Now that inflation has normalized, I think there’s room for some easing or relaxation,” Mr. Diokno said.

At the same time, he added: “But we have to look at other threats like, for example, oil prices are rising again.”

“We’re also looking at… El Niño [because] maybe food prices will remain elevated,” he said. “We’re going to look at all of these; what’s happening also in the US-China trade war.”

Mr. Diokno bared a dovish streak soon after assuming his new job last month after a more-than-two-year stint at the helm of the Budget department under President Rodrigo R. Duterte, describing banks’ RRR as still “very high” and citing “room for… one percentage point [cut] every quarter for the next four quarters.”

While he said in Washington that “[e]very policy decision will be evidence-based and also data’driven”, Mr. Diokno said: “It’s not a matter of whether we will cut, but it’s a case of when or the timing.”

For ING Bank N.V. Senior Economist Nicholas Antonio T. Mapa, “[i]t looks like the BSP will have to determine which move will come first, with market fully anticipating RRR cuts to come first at a non-policy meeting, to eventually be followed by a cut in the policy rate as inflation cools.” — Karl Angelo N. Vidal

Luzon grid on red alert for third straight day

April 12, 2019 | 7:39 pm

FOR the third straight day, areas in Luzon faced rotational brownouts on Friday after the system operator warned that power reserves had been wiped out and the system was running on a buffer that is only about a fraction of peak consumer demand.

Just before the start of work hours on Friday, privately owned National Grid Corporation of the Philippines (NGCP) issued a “red alert” notice for 13 hours or between 9:00 a.m and 10:00 p.m., with the outlying hours of 8-9 a.m. and 10-11 p.m. experiencing the milder “yellow alert.”

Peak demand was placed at 10,334 megawatts (MW), exceeding the available capacity at 10,220 MW.

“NGCP may implement manual load dropping (MLD) to maintain the integrity of the power system,” it said, referring to a process where the limited electricity supply is distributed to different areas, resulting in rotational brownouts.

The thinning reserves “due to major generation inadequacy” came after another power plant was added to the four others that went on an unscheduled shutdown. The warning was issued after the system’s dispatchable and contingency reserves — equivalent to the capacity of Luzon’s two biggest power plant units at 647 MW each — were fully spent.

The Department of Energy (DoE) said on Friday that it had called for an emergency meeting the night before with NGCP and that it would conduct a follow-up meeting the day after with the grid operator, Energy Regulatory Commission (ERC), Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) and Manila Electric Co. (Meralco) “to coordinate efforts and address the situation.”

The DoE said the alert warnings were issued because of the unplanned outage of five plants, with the 150-MW unit 2 of SMC Consolidated Power Corp. in Limay, Bataan as the latest addition when it went out at 4:28 p.m. on Thursday.

The four other plants on unscheduled outage are the 647-MW unit 1 of TeaM Sual Corp. in Sual, Pangasinan; 150-MW unit 2 of Southwest Luzon Power Generation Corp. (SLPGC) in Calaca, Batangas; 420-MW unit 3 of Pagbilao Energy Corp. in Pagbilao, Quezon; and 135-MW unit 1 of South Luzon Thermal Energy Corp. in Calaca, Batangas.

SEM-Calaca Power Corp.’s 300-MW unit 2 plant in Calaca, Batangas was de-rated by 100 MW. In all, 1,602 MW was out of the system, apart from the 827 MW from previously approved outages due to scheduled maintenance.

“However, we see an improvement of the system for Saturday and Sunday due to low demand on weekends,” it said in a statement.

It expects more system improvements between Saturday and Tuesday with the re-entry of two plants that shut down, namely: the Sual plant’s unit 1, and the Calaca plant’s unit 1.

On Tuesday, the Limay plant’s unit 2 is set to be back along with the Pagbilao plant’s unit 3.

“The energy family is expected to have a better determination of the week’s outlook by Sunday,” it said. — Victor V. Saulon

Malacañan says economic managers ready with contingency plan in case Duterte vetoes budget

April 12, 2019 | 7:39 pm

By Charmaine A. Tadalan, Reporter

MALACAÑAN PALACE on Friday assured the government’s economic managers have prepared a contingency plan to address impact of a reenacted budget after President Rodrigo R. Duterte threatened to veto the entire P3.757-trillion national budget that was submitted for his signature last March 26.

“While we are very eager and devoted to implement policies that will benefit Filipinos, this Administration is equally committed to being a stickler for the rule of law,” Presidential Spokesperson Salvador S. Panelo said in a statement on Friday.

Mr. Duterte on Thursday evening said in his speech during the Partido Demokratiko-Lakas ng Bayan campaign in Bacolod City that he will veto the entire Pnational budget if he finds irregular realignments.

“As to the possible repercussion on the economy of a re-enacted budget, our economic managers have contingency plans prepared, responsive to any conceivable event, and they will correspondingly adjust their targets, which include the execution of programs and projects relating to infrastructure as well as the delivery of basic services to the people.”

The budget, ratified on Feb. 8, is still under careful review by the Office of the President after a months-long impasse between the House of Representatives and the Senate which have each accused each other of unauthorized fund realignments.

Due to the delay, the interagency Development Budget Coordination Committee on March 13 slashed its growth forecast for 2019 gross domestic product (GDP) to 6-7% from 7-8%, while the National Economic and Development Authority projected separately that the full-year GDP growth will decline to 6.1-6.3% if the reenacted 2018 budget remains in force until April; and down to 4.2-4.9%, if reenacted for the whole year.

The delay in budget enactment — which leaves new projects unfunded and prevented the government from spending ahead of the 45-day public works ban before the May 13 mid-term elections and the rains next semester — has also prompted the Asian Development Bank, the International Monetary Fund, the World Bank, economic agencies of the United Nations and S&P Global Ratings to cut their economic growth projections for the Philippines for this year.

Senate President Vicente C. Sotto III said he was open to the possible reenactment of the budget for 2019 if that would be the only way to get rid of irregular fund realignments.

“Everything is left to the discretion of the executive dept. I will support the President’s decision. Anyway, we can pass a new one in the next Congress with new leaders,” the Senate President told reporters over phone message, Friday.

“Do remember that that was my original suggestion when it came to my attention that the House leaders were being difficult. Those whose terms end and were involved in the illegal realignments will lose all their pork. Actually, if there is indeed pork barrel in the budget, a reenacted budget erases all that.”

House Majority Leader Fredenil H. Castro of the 2^nd district of Capiz, meanwhile, said the House, under the leadership of Speaker Gloria M. Arroyo, ensured the national budget is consistent with the President’s legislative agenda.

“Amid downright intrigues and bizarre accusations, the HoR worked hard to enhance transparency and accountability in the 2019 GAB (General Appropriations Bill). This move is in sync with President Duterte’s strong and unflinching stance against corruption and wastage of public funds,” Mr. Castro said in a statement, Friday. “The HoR firmly supports President Digong’s action on the GAB.”

House Appropriations Committee Chairman Rolando G. Andaya, Jr. of the 1^st district of Camarines Sur, for his part, deemed the possible budget veto as an “opportunity” for the President to restore budget cuts made by the Senate.

“In making his final decision, I firmly believe that the President will take into consideration the drastic budget cuts imposed by the Senate,” Mr. Andaya said in a statement, Friday.

Mr. Andaya had accused the Senate of putting the administration’s “Build, Build, Build” infrastructure program at risk after slashing allocations for the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr), among other agencies.

Sought for comment, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail on Friday: “The ongoing budget delay will undoubtedly crimp overall GDP growth for as long as we run on a re-enacted budget.”

“Over the past few years, we’ve seen government spending, both in terms of public construction (lodged under fixed capital formation) as well as government expenditures (salaries of government officials, operating expenditures etc) complement overall government growth,” Mr. Mapa explained.

“For 2019, government expenditure as well as public construction will likely be challenged and may not be able to deliver the same amount of support to overall growth momentum. And although we are expecting household consumption to come back online this year owing to falling inflation, the loss of one support for growth will mean that we will not be growing as fast as we could have for as long as lawmakers remain at an impasse on the 2019 budget.”

China asserts anew sovereignty over Spratlys

April 12, 2019 | 7:38 pm

By Vann Marlo M. Villegas, Reporter

CHINA maintained that it has sovereignty over the Spratlys Island following remarks this week by Presidential Spokesperson Salvador S. Panelo asserting Philippine sovereignty over Pag-Asa Island in the Kalayaan Group of Islands amid the reported presence of Chinese vessels in the area.

Despite, Malacañang maintained its stance as it invoked the Philippines’ right over the West Philippine Sea as provided under the 2016 Hague ruling.

Chinese Foreign Ministry Spokesperson Lu Kang said in a press conference in Beijing on Thursday that China’s claim over the territory in the West Philippine Sea has sufficient basis.

“The Nansha Islands are within China’s territory, for which we have sufficient historical and legal basis,” he said.

“For thousands of years, Chinese fishermen have been fishing in these waters in the South China Sea. Their rights should not be challenged,” he added.

Mr. Lu also emphasized that relevant disputes in connection with the South China Sea should be resolved through negotiations between China and other countries including the Philippines.

“(W)e are committed to upholding peace and stability in the South China Sea in concert with other regional countries,” he said.

He noted that the “personal efforts” of Chinese President Xi Jinping and President Rodrigo R. Duterte have brought China and the Philippines “to the right track of properly handling and resolving the relevant disputes through negotiation and consultation.”

Mr. Lu also said the situation the South China Sea is “generally stable” and “steady progress” has been made over consultations in the Code of Conduct among the region’s states.

“The China-Philippines relationship has experienced a turnaround, been consolidated and elevated to a comprehensive strategic cooperative one. This positive momentum is hard-won and shall be all the more cherished,” he said.

Mr. Lu said China hopes the Philippines can join them in managing the South China Sea dispute and in upholding peace in the territory, benefitting citizens of the two countries.

“We hope that the Philippine side will join us in strictly implementing the important consensus reached by the two leaders on properly resolving the South China Sea issue and safeguarding peace and stability in the South China Sea,” he said.

Mr. Panelo on Wednesday said the country “will always assert sovereignty when it is being impaired or assaulted.”

True to his words, Mr. Panelo said in a statement on Friday that “while we concur with the Chinese official’s statement that the dispute can be best threshed out through peaceful negotiation and consultation between the two countries just as it will strengthen the Philippines-China relationship towards a solid partnership beneficial to Filipino and Chinese communities, the arbitral ruling however has already been rendered and we remain steadfast in maintaining our claims with respect to our territory and exclusive economic zones pursuant not only to the said arbitral judgment based on accepted principles of public international law but consistent with the directives of our Constitution and the aspirations of the Filipino people.”

On this note, the Palace official also asserted that China should avoid performing acts over the disputed territory that threatens Filipino fishermen and may jeopardize bilateral negotiations between the two countries.

“As a matter of protocol, we expect our Philippine counterpart, the Department of Foreign Affairs, to issue an official statement on the matter.”

MWSS pressed to look into liabilities of Manila Water

April 12, 2019 | 7:38 pm

By Charmaine A. Tadalan, Reporter

THE Bagong Alyansang Makabayan (Bayan) on Friday asked the Metropolitan Waterworks and Sewerage (MWSS) to “immediately” hold a public hearing to look into possible liabilities of Manila Water Co. Inc., in connection with the water crisis in Metro Manila.

In its rejoinder, filed on April 12, Bayan in particular prayed that a decision be made imposing penalties on Manila Water for the breach of its service obligations, pursuant to its Concession Agreement.

“In our rejoinder, we pointed out that the MWSS RO (Regulatory Office) should immediately set the matter for public hearing especially in light of MWSS Board resolution 2019-052, which ordered the RO to study the imposition of penalties and the suspension of the water rate hike for Manila Water,” Bayan said in a statement Friday.

Article 10.4 of the Concession Agreement between the MWSS and the MWC read in part that failure to meet any Service Obligation for more than 60 days or 15 days “in cases where the failure could adversely affect public health or welfare” will subject concessionaires to financial penalties.

The same provision cited all penalties shall be rebated to customers affected by the concessionaire’s failure to provide necessary service.

“Clearly, it is the RO which has the mandate to determine how the rebates will be implemented. We are therefore disappointed with the response so far given by the Chief Regulator who seems intent on abdicating the RO’s role to defend consumer interests,” Bayan also said.

The MWSS on April 5 issued a response to Bayan’s petition, in which it noted that even as a regulator it is not authorized to decide on rebates to cover unexpected incidental costs due to the water shortage.

“Please recall that the Regulatory Office is not imbued with quasi-judicial power to decide on the matter,” the MWSS RO was quoted as saying in the rejoinder. “In view, thereof, you may resort to the courts to demand your rights.”

De Lima petitions court to be allowed to vote

April 12, 2019 | 7:38 pm

By Vann Marlo M. Villegas, Reporter

DETAINED Opposition Senator Leila M. De Lima has asked the Muntinlupa regional trial court, where her drug-related cases are being heard, to allow her to vote in the May 13 national and local elections.

In her urgent motion for furlough, Ms. De Lima asked the court to allow her to vote through the “escorted voting system.”

“In the exercise of her constitutional right of suffrage, movant requests that she be allowed to avail of the escorted detainee voting mechanism as provided in COMELEC (Commission on Elections) resolutions, rules, and regulations, especially since no special offsite registration for detainees was conducted in the Philippine National Police Custodial Center during the period of continuing registration of voters from July 2, 2018 to September 29, 2018 that could have allowed her to apply for the transfer of her voter’s registration records to the Custodial Center,” Ms. De Lima’s motion read.

The senator, a Parañaque City-registered voter, said she asked the Comelec in January to establish a special polling place for Persons Deprived of Liberty in the PNP Custodial Center where she is detained for more than two years now.

However, the Comelec denied her request as the Omnibus Election Code forbids the establishment of polling centers “within the perimeter of or inside a military or police camp or reservation.”

The Comelec, on the other hand, recommended the “escorted voting system” to Ms. De Lima.

Ms. De Lima has been detained for more than two years since February 2017 for allegedly conspiring to commit illegal drug trading inside the Bilibid when she was still secretary of justice, a charge her supporters say is fabricated.

Gov’t cash use up 99% in Q1

April 12, 2019 | 7:35 pm

By Karl Angelo N. Vidal, Reporter

CASH use by government agencies slightly grew to 99% in the first quarter of the year, the Department of Budget and Management (DBM) said.

The utilization ratio was calculated against the Notice of Cash Allocations (NCA) amounting to P622.4 billion in the January-March period, of which P614.6 billion was disbursed.

The utilization rate in the three months ending March was a tad higher than the 98% posted in the same period last year.

NCA is a cash authority issued quarterly by the DBM to central, regional and provincial offices and operating units to cover their cash requirements.

The agencies have until the end of this quarter to fully disburse funds allocated to them before they lapse and turn into savings.

In March alone, a total of P247.2 billion or 137% of the P180.9 billion authorized was spent.

Meanwhile, line agencies used P455.3 billion out of NCA releases amounting to P463 billion, which means utilization rate was at 98%.

State agencies such as Office of the Vice President, Department of Education, Department of Defense, Department of Public Works and Highways, Department of Transportation, Civil Service Commission, Commission on Audit, Commission on Elections and Office of the Ombudsman recorded the highest utilization ratio, logging a 100% rate in the first quarter.

On the other hand, the Department of Foreign Affairs had the lowest NCA utilization rate in the first quarter at 61%, using only P2.32 billion worth of NCAs out of P3.83 billion authorized.

Government allotments to local government units as well as budgetary support to state-owned and -controlled corporations also tallied a 100% utilization rate.

The government is currently operating on a reenacted 2018 budget, which leaves new programs and even big-ticket infrastructure projects unfunded.