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Bangko Sentral ng Pilipinas to share selected bank reports, data with PDIC

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) has partnered with the Philippine Deposit Insurance Corp. (PDIC) for information sharing on bank reports.

“The Bangko Sentral and the PDIC through a revised memorandum of agreement on information exchange agreed on the sharing and exchange of bank submitted reports and certain other reports, data and information as may be agreed upon by Bangko Sentral and PDIC,” the central bank said in a memorandum dated Oct. 21 and signed by BSP Deputy Governor Chuchi G. Fonacier posted on its website.

“The information sharing aims to improve the effectiveness of the operations of both Bangko Sentral and PDIC as well as to further cooperation to best achieve their complementary mandates.”

The BSP said the agreement is in line with the PDIC’s charter, which states that the central bank may share to the PDIC its reports on the examination on banks “provided that the use of such reports or information are in accordance with the terms and conditions agreed upon by the PDIC and the Bangko Sentral and prescribed by applicable laws and regulations.”

The financial and nonfinancial reports submitted by banks that can be shared with the PDIC include the quarterly solo financial reporting package, solo risk-based capital adequacy ratio report and control prooflist, solo liquidity report and control prooflist, and recovery plans of banks.

“In sharing the above information, the Bangko Sentral shall ensure that the Bangko Sentral and PDIC adhere to the basic data privacy principles of transparency, legitimate purpose, and proportionality,” it added. — L.M.J.C. Jocson

PLDT secures P2-B loan for fiber expansion in underserved areas

PLDT CHAIRMAN and Chief Executive Officer Manuel V. Pangilinan — MPIC

PLDT Inc. has secured a P2-billion social loan from HSBC Philippines to expand its fiber network, the Manuel V. Pangilinan-led telecommunications company said.

“The integration of PLDT’s sustainability agenda in the business is evident even in the way we fund our projects,” PLDT Chief Financial Officer and Chief Management Officer Danny Y. Yu said in a statement on Wednesday.

Social loans are financing solutions meant to fund social initiatives like projects for essential services such as healthcare, education, housing; small and medium enterprises financing and microfinance; and access to basic infrastructure such as the development and expansion of telecom networks in underserved areas.

PLDT said its social loan will expand its fiber network infrastructure to reach the Philippines’ fourth to sixth class municipalities, including those considered as geographically isolated and disadvantaged areas.

There are about 729 municipalities considered as fourth to sixth class municipalities, PLDT said, citing Philippine Statistics Authority data.

PLDT covers at least 59% of the municipalities considered as fourth to sixth class.

“The company has outlined plans to extend fiber services to an even greater number of municipalities in the coming years, prioritizing areas most in need of connectivity, enabling new communities to benefit from access to data and the internet,” PLDT said.

In March, PLDT secured its first green loan at P1 billion from HSBC Philippines to also fund the expansion and upgrade of its network. This was followed by another P4-billion loan from Metropolitan Bank & Trust Co. two months later.

A green loan is a form of financing allowing borrowers to use the proceeds to fund eligible green projects.

At the stock exchange on Wednesday, PLDT shares closed P15, or 1% lower, at P1,480 each.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Philippines’ rank improves in 2024 WJP Rule of Law Index

(But still lags in East Asia and the Pacific region)

The Philippines inched up a notch to 99th place out of 142 countries and jurisdictions in the 2024 edition of the World Justice Projects (WJP) Rule of Law Index. It was the country’s best ranking in two years. However, it still remained one of laggards in the region.

Philippines’ rank improves in 2024 WJP Rule of Law Index

How PSEi member stocks performed — October 23, 2024

Here’s a quick glance at how PSEi stocks fared on Wednesday, October 23, 2024.


Parts of Bicol flooded as Trami is seen as PHL’s third-most devastating storm

PHILIPPINE COAST GUARD FACEBOOK PAGE

By Kyle Aristophere T. Atienza, Reporter

A TROPICAL STORM dubbed by a green group as the third highly devastating weather event this year has caused massive flooding in the Bicol region and has led to the suspension of classes and government work in Luzon, with the number of affected people nationwide hitting over 300,000 as of early Wednesday.

Trami, locally called Kristine, intensified into a severe tropical storm as it made its way toward Isabela province, Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said in a 5 p.m. report.

The storm last spotted 175 kilometers east of Echague, Isabela province, had maximum sustained winds of 95 kilometers per hour (kph) and gustiness of up to 115 kph, it said.

Trami was expected to make landfall over Isabela province on Wednesday evening or Thursday.

In an 8 a.m. report on Wednesday, the National Disaster Risk Reduction and Management Council (NDRRMC) said flooded areas in the country had hit 88. Of which, 54 were in Bicol region, while 26 were in Mimaropa.

Over 382,000 people, or 77,910 families, had been affected by Trami, most of whom were in Bicol region with 77,335, it added.

Three people have so far been reported as missing, according to the agency, which has yet to report deaths.

‘HIGHLY DEVASTATING’
“This is the third highly devastating weather event to batter the country this year. Filipinos need action, not lip service,” Greenpeace Philippines said in a statement on Wednesday.

“Tropical storm Kristine is yet another reason why President (Ferdinand R.) Marcos, Jr. should turn words into action on climate justice,” it said, calling on the Philippine government, which now hosts the United Nations Loss and Damage Fund Board, to “lead the global call for securing the trillions of dollars needed to address loss and damage.”

Greenpeace said the situation is “already dire,” lamenting that “determined climate action should have been done a long time ago.”

“To start with, President Marcos Jr. should demand that climate polluters pay for the harm and destruction their products cause.”

Mr. Marcos, in a situation briefing on Wednesday morning after cancelling his scheduled events for the day, noted that Bicol, which accounted for 2.9% of Philippine economic output last year, was the hardest-hit region in the country as Trami dumped record-breaking rains.

A state of calamity was already declared in Albay, the region’s second-largest economy, and Magpet town in the southern province of Cotabato.

In a video shared by state-run Philippine News Agency, Albay Public Safety Emergency Management Office acting chief Dante B. Baclao said 17,095 people, or 4,948 families, from several areas in the province were in evacuation center.

The number of evacuated residents was expected to increase as the office was in the process of consolidating reports from localities, he said.

The Trade department already issued a price freeze on basic goods in areas under a state of calamity.

“We are doing everything we can to get assistance prepositioned. That’s always the key,” Mr. Marcos said. “Get the people evacuated properly, get our goods and equipment prepositioned as close as possible without them having the risk of damage.”

He said the government was facing “budgeting issues” since the country had experienced “many typhoons” in previous months. “But that’s not something that we should worry about because we will be able to remedy that.”

The Department of Social Welfare and Development said it had already released P2.3 million in aid to local government units hit by the storm, citing the provinces of Albay, Camarines Sur, and Sorsogon in Bicol; Bacolod in Western Visayas; and North Cotabato in Soccsksargen.

As of Wednesday morning, 2.07 million boxes of family food packs were available nationwide, it said.

EDCA SITES ACTIVATED
Mr. Marcos said sites under Philippines’ 2014 Enhanced Defense Cooperation Agreement (EDCA) with the United States would be used for the country’s rescue and relief efforts.

Military chief Romeo S. Brawner, Jr. said the US was ready to send aircraft to EDCA sites for relief and rescue operations.

“The Armed Forces of the Philippines is also continuing to monitor the situation so that we will be able to activate the EDCA sites, which were put there specifically for this purpose,” Mr. Marcos told reporters on the sidelines of the briefing, noting that the Armed Forces of the Philippines was ready to deploy airlift as many roads remained impassable.

The Philippine Ports Authority said in a report that 5,987 passengers, 2,260 of whom were in Bicol region and 2,161 were in Eastern Leyte, had been stranded as of 12 noon on Wednesday.

Three ports had reported damage including the Port of Bulan in Sorsogon, Port of Pio Duran in Albay, and Baseport in Legazpi.

The NDRRMC said 93 roads — 89 of which were in Bicol region — and 10 bridges — all of which were in the same region — were impassable.

The National Electrification Administration said four out of 63 electric cooperatives in the country had experienced “total power interruption,” while 43 remained “in normal operation.” It said it had been monitoring 63 electric cooperatives in 39 provinces due to the storm.

RETHINK INFRASTRUCTURE
Amid the changing climate, which causes conditions that contribute to heavier rainfall and stronger typhoons like Trami, the Climate Change Commission urged cities and public workers agencies “to rethink infrastructure development.”

It cited the need to use materials that allow for better water absorption and reduce risk of flooding such as permeable bricks, which it said, “can be effective for parking areas and secondary roads.”

It also called for land use plans at the local levels, green infrastructure that can absorb rainwater and reduce heat such as parks and green roofs, and updated drainage systems.

A 2024 Green Economy Report for Southeast Asia led by Bain & Co. said the Philippines saw a 57% increase in “green” investments to $1.46 billion in 2023, but still falls short of the over $16 billion in required capital investments needed for its green transition.

A World Weather Attribution study on Supertyphoon Gaemi, which caused massive flooding in Metro Manila and nearby provinces, and killed dozens, said human-induced climate change was enhancing conditions conducive to typhoons.

It said the Philippines should not be the one “footing the bill for the destruction, for improving disaster response systems, for upgrading infrastructure, and for rehabilitating climate-impacted communities.”

“Oil and gas companies, those most responsible for the climate crisis, should be the ones paying for loss and damage,” Greenpeace said, as it pressed the passage of the Climate Accountability (CLIMA) Bill, which seeks to create mechanisms for accountability and reparations from companies.

Mr. Marcos has been citing his country’s vulnerability to climate change, saying in September that climate change’s damage to the national economy could reach up to 7.6% of the gross domestic product by 2030.

“Once passed, the CLIMA Law will help raise the ambition of climate policy, not just in the Philippines but also globally, as a national framework for loss and damage that lays down stringent corporate transition regulations,” Greenpeace said. with Adrian H. Halili

PHL rule of law improves but still among worst in region

STOCK PHOTO | Image by 4711018 from Pixabay

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINES’ rule of law is still among the worst in the East Asia and the Pacific region where it retained its 13th place out of 15 countries despite slight improvements, the World Justice Project (WJP) reported on Wednesday.

Globally, the Philippines ranked 99th out of 142 countries after it registered an overall rule of law score of 0.46. The WJP Rule of Law index noted that the Philippines is among the minority of countries to see an increase during the year where 57% of governments globally experienced a decline.

The index score ranges from 0 to 1, with 1 being the highest and having the strongest adherence to the rule of law. The Philippines’ score is below the region’s average score of 0.59, unchanged from last year.

“After years of rule of law declines it can be easy to focus on the negative. But to do so would ignore accomplishments in anti-corruption and the hard work occurring to improve justice systems globally,” WJP Co-founder and President William H. Neukom said in a statement. “We must redouble our efforts to expand these rule of law gains in all areas.”

Nordic countries lead the list, with Denmark, Norway, Finland, and Sweden ranking first to fourth respectively. While Myanmar, Haiti, Afghanistan, Cambodia, and Venezuela ranked at the bottom 138th to 142nd places respectively.

Scores given to a country are the average of eight factors, ranging from zero to one, with one being the highest score.

The Philippines’ scores were unchanged in the absence of corruption (0.43), open government (0.47), criminal justice (0.31), and order and security (0.67); while it improved in fundamental rights (0.41 from 0.40 in 2023), civil justice (0.46 from 0.45 in 2023), and constraints on government powers (0.48 from 0.47 in 2023).

The country’s regulatory enforcement worsened after it scored 0.47, slipping from 0.48 in 2023.

“This may be the result of the public perception [of] the difference in the approach of the present and the previous administrations to the respective implementation of their anti-drug campaign,” National Union of Peoples’ Lawyers (NUPL) President Ephraim B. Cortez told BusinessWorld in a Viber message, noting the impression that there is a decrease in the killing due to the drug war.

“But it is important to note that while there is an increase in the ranking, the increase, according to the report, is ‘less than 1%.’ We have to factor in that, according to the report, there [has been] a recession on the global index on the rule of law, including the Philippines, since 2016,” he said.

Mr. Cortez noted that the slight improvement “hardly compensate[s]” to the decline of the rule of law over the past years, especially as the report finds that fundamental rights continue to decline, and corruption remains unabated.

The lawyer group leader said the right to dissent and those related to freedom of expression are rights that are most at risk.

“We can see civil society organizations being harassed with cases baselessly accusing them of ‘financing terrorism.’  We also see an increase [in] incidents of enforced disappearances involving activist[s],” he said.

Carlos H. Conde, senior researcher at Human Rights Watch, linked the decline and improvement in the fundamental rights to the period of former president Rodrigo R. Duterte’s term.

“Clearly, the fact that Duterte no longer rules is a factor that may have pull up fundamental rights (by 2 points),” he said in a Viber message.

“Keep in mind that since the Duterte regime that started in 2016, the Philippines’ rank — at least on fundamental rights — plummeted because of the former president’s tyrannical actions and policies. It makes sense that since his departure from office, it has sort of stabilized.”

Mr. Conde also attributed the improvement in civil justice to the reforms enforced by the judiciary and the Department of Justice since Mr. Duterte left his office. These reforms include streamlining judicial processes, unclogging dockets, and improving the bail system, among others.

“Having said that, I think the Philippines still faces a serious problem of access to justice particularly for poor Filipinos who cannot, for example, afford legal representation or have no means of seeking redress,” he said.

When the WJP report was first published in 2015, the Philippines had an overall score of 0.53, ranking 51st out of 102 countries.

In 2016, its ranking fell to 73rd out of 113 countries with a score of 0.51, coinciding with the start of the bloody war on drugs under the administration of former President Rodrigo R. Duterte.

As more countries were added to the index, the Philippines’ ranking continued to decline, even as its score remained between 0.46 and 0.47.

The country ranked 88th in the 2017-2018 report, 89th in 2019, 91st in 2020, and dropped to 102nd in 2021.

US yet to file formal request for Quiboloy’s extradition, DFA says

APOLLO QUIBOLOY at the Senate hearing regarding the accusations against him. — PHILIPPINE STAR/RYAN BALDEMOR

MANILA’s top envoy on Wednesday said that the US has yet to formally file a request for the extradition of celebrity evangelist Apollo C. Quiboloy, who has been a subject of a federal arrest warrant for human trafficking.

“As you know, the Philippines has an extradition treaty with the United States of America,” Philippine Foreign Affairs Secretary Enrique A. Manalo told a Senate hearing looking into allegations of human trafficking and sexual abuse linked to the Kingdom of Jesus Christ (KOJC) leader.

“As of this date, the Department of Foreign Affairs (DFA) has not received a formal extradition request from the United States,” he said.

Once Washington sends a request, Mr. Manalo said the agency would study whether it is consistent with the agreed extradition procedure and refer it to the Department of Justice for proper legal action.

Washington and Manila signed an extradition treaty in 1994, which entails the extradition of individuals upon the request of both states based on an extraditable crime.

Mr. Quiboloy, a self-proclaimed “owner of the universe” and “appointed son of god,” is wanted on charges of child and sexual abuse and allegations of human trafficking in the Philippines. He is also wanted by Federal Bureau of Investigation in the US on charges of sex trafficking and bulk cash smuggling.

On Wednesday, senators held an inquiry on allegations of human trafficking, child abuse, and sexual exploitation linked to Mr. Quiboloy and his church.

“There is no truth to what they are saying,” Mr. Quiboloy said at the hearing, denying allegations of sexual abuse.

“If they have criminal charges against me, they are free to file charges, and I will face them in a proper forum like the court just like what I’m doing right now.”

In April, a Pasig court ordered his arrest for qualified human trafficking, while a Davao City court issued an arrest warrant for child sexual abuse. The Supreme Court in May ordered the transfer of the Davao child sexual abuse cases to the Quezon City trial court.

He was arrested in September after weeks of police search that deployed more than 2,000 police to search a sprawling compound in the southern city of Davao owned by Mr. Quiboloy‘s church.

Mr. Quiboloy is followed by millions of people in the Philippines, where the church has political influence. He is also the spiritual adviser of ex-President Rodrigo R. Duterte.

The celebrity evangelist also filed his certificate of candidacy for senator in next year’s midterm elections. — John Victor D. Ordoñez

Manila bats for cooperation in global nuclear testing monitoring system

DFA.GOV.PH/CTBTO

THE PHILIPPINES has vowed to boost cooperation with the international community in maintaining and improving the International Monitoring System, intended to keep an eye on and ensure the world is free from nuclear testing, according to the Philippine Permanent Mission to Vienna.

Philippine Ambassador and Permanent Representative Evangelina A. Bernas led discussions of Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO) Preparatory Commission from Oct. 16 to 17 at the Vienna International Center to tackle the body’s plans to maintain this watchdog system, it said in a statement.

“Ms. Bernas found consensus during the deliberations of important issues of the Group, including those on financial and budgetary decisions, the indicative program for 2025, and the long-term sustainment of the International Monitoring System (IMS) network,” according to the mission.

The CTBTO is an organization part of the United Nations system that carries out programs that ensure no nuclear explosions occur anywhere in the world through monitoring.

It was born out of the Comprehensive Nuclear-Test-Ban Treaty which was adopted by the UN General Assembly in 1996.

Philippine Foreign Affairs Secretary Enrique A. Manalo has been supportive of calls for a “complete, verifiable, and irreversible denuclearization” of the Korean Peninsula to maintain peace, stability and economic progress.

In 2021, the Senate ratified UN Treaty on the Prohibition of Nuclear Weapons, making the Philippines the 53rd nation to adopt the treaty. The treaty, signed by 86 countries, took effect after it was ratified by at least 50 states.

The treaty bars nations from developing, testing, producing, manufacturing, transferring, possessing, stockpiling, using or threatening to use nuclear weapons.

Mr. Manalo has said the country is pushing the creation of international guidelines on the ethical use of autonomous weapon systems powered by artificial intelligence, saying their improper use could risk innocent lives.

Autonomous weapons are programmed to kill a specific target. The weapon is deployed to an environment where it searches for the target using sensor data, such as facial recognition, according to autonomousweapons.org. — John Victor D. Ordoñez

Kristine hits almost 1M power lines

PHILSTAR FILE PHOTO

MORE than 970,000 power connections have been affected by Severe Tropical Storm “Kristine” (International Name: Trami), according to the National Electrification Administration (NEA).

At a press briefing on Wednesday, NEA director Eric B. Campoto said that 86 electric cooperatives affected that are from 52 provinces and 12 regions are “under monitoring.”

“Out of the 86 electric cooperatives, 50 are in normal operations, 29 are in partial power interruptions, six are in total power interruptions, and one is still without an updated report,” Mr. Campoto said.

Initial damage cost due to Tropical Cyclone Kristine amounted to nearly P1 million. This may still increase as the electric cooperatives are still assessing the data and the tropical cyclone has yet to make its landfall, he said.

Meanwhile, the National Grid Corp. of the Philippines (NGCP) said that several transmission lines in Luzon and Visayas have been unavailable.

Paul Michael R. Azur, NGCP’s geomatics and command center manager, said that a total of 23 69-kilovolt (kV) transmission lines has been affected, of which 16 lines were already energized while one of the two 230-kV lines that were unavailable was already online.

“The remaining 230-kV (line) has no effect on the grid, although, we are still going to assess what has happened to these transmission lines if weather permits,” he said.

The grid operator said it has mobilized its line crews and is conducting patrols. Simultaneous restoration activities were also conducted in areas already accessible.

Power distributor Manila Electric Co. (Meralco), which provides electric service in Metro Manila and nearby areas, earlier assured its customers that its personnel are ready to respond to electricity service concerns that may arise. — Sheldeen Joy Talavera

P454M released for ambulances

PHILIPPINE STAR/EDD GUMBAN

AROUND P454 million was released to purchase another batch of ambulances and other medical transport vehicles to address healthcare gaps, the Budget department said on Wednesday.

On Oct. 17, Budget Secretary Amenah F. Pangandaman greenlit the issuance of an Authority to Purchase Motor Vehicle to procure 173 units of medical vehicles.

These include 161 units of land ambulance, two units of mobile primary care facilities (mobile clinic), and four units of sea ambulance.

It also covers four units of a passenger van, a patient transport vehicle, and a mobile blood donation van.

The Department of Budget and Management previously approved the procurement of 141 units for medical vehicles on June 11.

The vehicles would be chargeable against the Health Facilities Enhancement Program under the P241.1-billion budget of the Department of Health. — Beatriz Marie D. Cruz

More health sector funds sought

PHILSTAR FILE PHOTO

THE Department of Finance (DoF) said on Wednesday it is actively seeking more funding sources to support projects in the health sector.

“This includes providing more healthcare facilities, ensuring accessible access to them through better infrastructure, ensuring food security for all through boosting our agricultural productivity, giving economic opportunities for our people to increase their incomes and capacity to buy medicines and vitamins, and lifting more Filipinos out of poverty—because this ultimately breeds hunger and disease,” Finance Secretary Ralph G. Recto said in a statement.

Mr. Recto and Health Secretary Teodoro J. Herbosa met on Sept. 30 to discuss funding requirements for the government’s health projects.

Among the projects discussed include the P14.31-billion Health Facilities Enhancement Program for infrastructure, medical equipment, and transport vehicle support to health facilities nationwide; and a P136-million project for the Department of Health’s disease surveillance mandate.

They also discussed projects on immunization, health literacy, nutrition, and access to medicines, among others.

Mr. Recto also shared the DoF has secured funding for the implementation of the Health System Resilience Project Phase I, which has a cost of P27.92 billion, while Mr. Herbosa said the Health department has identified 17 provinces for the project’s pilot run, which are mostly areas with poor healthcare access. — Beatriz Marie D. Cruz

Bill mandating BSP to oversee credit information system filed

BW FILE PHOTO

A BILL mandating the Philippine central bank to oversee Filipinos’ credit history and financial health has been filed the House of Representatives, a measure expected make credit information systems interoperable in the country.

The Bangko Sentral ng Pilipinas (BSP) will operate the country’s central credit information system under House Bill (HB) No. 10922. The bill institutionalizes the transfer of functions and responsibilities of the Credit Information Corp. (CIC) to the central bank, pursuant to a 2022 presidential order.

“The BSP is not explicitly tasked with establishing and operating a comprehensive and inclusive Credit Information Reporting System,” Cagayan de Oro Rep. Rufus B. Rodriguez said in the bill, which he filed on Sept. 17.

“This bill seeks to amend [Republic Act No.] 9510 to institutionalize the transfer of [CIC’s] oversight and supervision to the BSP consistent with the National Strategy for Financial Inclusion,” it said.

“The measure will also facilitate a seamless transition to the administration’s vision of a Bayang Digital by making credit information systems interoperable,” it added. “At the same time, it will streamline bureaucracy, while maintaining efficient operations and minimizing disruptions in the concerned government offices.”

Nonbanking financial entities, such as quasi-banks, life insurance companies, and credit card companies would be required to submit to the central bank the data of its users, according to the measure.

Data requirements include users’ personal data, net income, and assets such as cars and houses owned, among others. — Kenneth Christiane L. Basilio