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Pru Life partners with SLMC on critical claims processing

PRU LIFE UK has partnered with St. Luke’s Medical Center. — PRULIFEUK.COM.PH

PRU LIFE UK has partnered with St. Luke’s Medical Center (SLMC) to improve the processing of critical illness claims of its policy owners.

Speaking to reporters at the launch of the partnership at SLMC Bonifacio Global City, Pru Life UK President and CEO Antonio G. De Rosas said the tie-up allows its policy owners with critical illness claims to authorize St. Luke’s to release their medical records by signing a consent form.

Mr. De Rosas said this is a departure from the original process where patients have to get their medical history files by themselves and submit it to Pru Life for verification, where approval usually takes a few days.

He added that policy holders still need to file for reimbursements as insurance firms do not work like health maintenance organizations where patients only need to bring their cards for their medical transactions.

“So when you file reimbursement, ang daming documents na kailangan i-collate (you need to collate many documents). Tapos ikaw mismo (And then) you have to go the hospital and get the medical records and then send it to Pru Life UK [which] will do an independent verification… It takes a long time,” he explained.

With the partnership which allows St. Luke’s to send patients’ medical data directly to Pru Life, the process will be faster and the reimbursement cheque will arrive by the time of the patients’ checkout, Mr. De Rosas said.

The consent form which allows St. Luke’s to release the policy holders’ medical records to Pru Life can be accessed through the insurer’s website or through the International Patients’ Lounge in the BGC and Quezon City branches of SLMC.

Patients will also be able to verify about the progress of their claims through Pru Life.

St. Luke’s is a strategic partner for Pru Life as 11% of the insurer’s policy claimants were clients of the hospital in 2018, according to Pru Life Assistant Vice-President and Head of Product Management Daryl Adigue.

In total, the insurance firm disbursed a total of P190 million benefit payouts to more than 300 policy holders with critical illness claims, Pru Life said. Most of these cases involved cancer, stroke, heart attack, brain tumor, and renal failure.

Aside from faster reimbursement claims, policy holders will also have executive benefits in St. Luke’s, including special onsite assistance and discounts on selected hospital services and various treatment packages, according to SLMC President and CEO Arturo S. De La Peña.

Mr. Dela Peña said volume discount rates will be applied, depending on the number of policy holders who will utilise the service tie-up.

The six months exclusive partnership with St. Luke’s — which remains open for possible renewal — is Pru Life’s first tie-up with a hospital.

Mr. De Rosas said on Thursday that the insurer could forge similar partnerships with more hospitals in the future.

“At some point in time, we will have to make it available for other medical providers also,” he said.

During his speech at the event, SLMC’s Mr. Dela Peña said apart from their partnership with Pru Life, SLMC is also looking towards expansion, with their Davao branch set to be fully completed by the first quarter of 2020 and fully operational by around the second quarter of 2022.

Mr. Dela Peña said negotiations for another branch in the Visayas are ongoing.

Pru Life approved a total of 2,737 claims amounting to P644 million in 2018, Ms. Adigue said.

More than 50% of the insurer’s market of policy holders belong to the millennial generation, Mr. De Rosas added.

Pru Life was the fourth biggest life insurer in the Philippines based on premium income in 2018 with P22.03 billion, according to data from the Insurance Commission. — Luz Wendy T. Noble

Uniqlo to open store in SM City Olongapo

JAPANESE apparel retailer Uniqlo is opening its first large store in Central Luzon next week.

In a statement, Uniqlo said it will open the 1,320-square meter (sq.m.) store in SM City Olongapo Central on Sept. 13.

“With the recent opening of our first roadside store in the country, we are excited to launch another Uniqlo store located here in SM City Olongapo Central,” Masayoshi Nakamura, chief operating officer of Uniqlo Philippines, said.

The new store is located at the SM mall’s first floor. It will carry the complete line of Uniqlo Lifewear, plus the 2019 Fall/Winter collection.

Uniqlo, a brand of Fast Retailing Co. Ltd., has 2,000 stores in 22 markets including Japan, Australia, China, France, Singapore, Spain and United States.

Saudi’s Rumayyan takes control of Aramco IPO steering committee

DUBAI/RIYADH — The head of Saudi Arabia’s sovereign wealth fund was made head of an executive committee overseeing plans to float shares in Saudi Aramco before he was named new chairman of the state oil giant this week, five sources familiar with the matter said.

Yassir al-Rumayyan took over control of the committee from Finance Minister Mohammed al-Jadaan in July, the sources told Reuters, as preparations for the listing speed up.

A spokesman at wealth fund the Public Investment Fund referred queries to Aramco, which declined to comment. The finance ministry did not immediately respond to a request for comment.

The committee reports directly to de facto ruler Crown Prince Mohammed bin Salman, who wants to sell a 5% percent stake in Aramco as part of an ambitious plan to transform the economy of the world’s top oil exporter and wean it off crude revenues.

The move is a significant indication that the kingdom is gearing up to fast-track a local listing of Aramco, by bringing in Rumayyan who has great experience with local IPOs at both government and private sectors.

The past few days have seen Rumayyan replace Energy Minister Khalid al-Falih as Aramco chairman and Falih lose his seat on the company’s board as momentum builds to prepare for the sale.

Falih said on Twitter that Rumayyan’s appointment was “an important step to prepare the company for the public offering.”

The IPO, initially slated for 2017, has faced repeated delays. Saudi authorities say it is now slated for 2020 or 2021 and one source said Rumayyan pushed for that timeline.

Rumayyan’s time as head of securities listing at the Saudi stock market regulator between 2004 and 2007 qualified him to take over the process from Jadaan, a veteran lawyer, another source told Reuters.

The new Aramco chairman, a former investment banker, had also served on the board of the local stock exchange.

The finance minister remains on the IPO executive committee, which also includes Economy Minister Mohammed al-Tuwaijri and royal court adviser Fahad Toonsi, two of the sources said.

In August, sources told Reuters that the plan was for a domestic listing on the Riyadh bourse which would be followed by an international offering at a later stage.

Aramco has already asked major banks to submit proposals for potential roles in the IPO, Reuters has reported. — Reuters

What to see this week

4 films to see on the week of September 6 — September 12, 2019

IT Chapter 2

A FILM still from IT Chapter 2

AFTER 27 years, the clown Pennywise returns to the town of Derry, deadlier than ever. The now grown-up members of the Losers Club reunite in the place where it all began in an effort to conquer their fears and defeat the clown. Directed by Andy Muschietti, the movie stars Bill Skarsgård, James McAvoy, Jessica Chastain, Bill Hader, Isaiah Mustafa, Jay Ryan, James Ransone. The New York Post’s Johnny Oleksinski writes, “What it’s not is very scary. Speaking as somebody who’s afraid of spoiled milk, I was not unnerved by anything other than Bill Skarsgård’s still-freaky Pennywise the Clown. You get Stranger Things-style spooks here, and that’s just fine.”

MTRCB Rating: R-16

Princess in Wonderland

PRINCESS BARBARA finds a magical book which transports her to Wonderland — a place filled with fantastical creatures. The Russian animated feature is directed by Marina Nefyodova.

MTRCB Rating: G

Polaroid

A HIGH SCHOOL loner finds a vintage Polaroid camera. She soon discovers that the lives of those who have taken their photo with it end in tragedy. Directed by Lars Klevberg, the film stars Kathryn Prescott, Tyler Young, Samantha Logan

MTRCB Rating: R-13

Sanggano, Sanggago’t, Sanggwapo

AN OLD-SCHOOL comedy follows Andy and Dondon who find out that their friend Johnny is the son of a recently deceased business tycoon. Upon arriving at the deceased businessman’s mansion, Johnny — as a way of relieving himself of responsibilities — announces to everyone in their town that Andy is the heir and therefore must take responsibility for the family business. Andy and Dondon decide to play along. Directed by Al Tantay, the movie stars Andrew E., Janno Gibbs, Dennis Padilla, and Eddie Garcia.

MTRCB Rating: PG

Reducing risk through tech innovation

PAJU CITY, South Korea — The threat of a nuclear conflict in the Korean Peninsula has greatly diminished with the adoption of the Panmunjom Declaration for Peace, Prosperity, and Reunification that includes a commitment to denuclearization.

South Korean President Moon Jae-in and North Korean supreme leader Kim Jong-un signed the declaration during the 2018 Inter-Korean Summit held at the Peace House’s southern side within the joint security area of the demilitarized zone (DMZ), which is geographically a part of this border city.

As a buffer zone measuring two kilometers wide on each side, the 250-kilometer long DMZ was established along the 38th parallel through an armistice agreement at the end of the Korean War in 1953. The DMZ’s western portion lies on the boundary between Paju City and its northern neighbor, Kaesong City.

With the warming of bilateral relations in the divided peninsula, the Korea Harm Reduction Association (KHRA) has turned its attention to public health hazards such as narcotics, alcohol, smoking, gambling, and obesity.

Last week, KHRA co-hosted the 3rd Asian Harm Reduction Forum (AHRF) in Seoul together with Yayasan Pemerhati Kesehatan Publik of Indonesia. Attended by hundreds of experts from 18 countries, the theme of AHRF 2019 was “From Global to Local: Public-Private Partnerships in Harm Reduction Policies.”

One of the keynote speakers was Canadian lawyer David Sweanor, who is also a professor and advisory board member of the Center for Health Law, Policy, and Ethics at the University of Ottawa. Since the 1980s, he has focused on policy issues concerning the risk of smoking, which he referred to as a public health catastrophe killing one person every 4.5 seconds.

According to Mr. Sweanor, “the problem is not the nicotine but the delivery system. There are over a billion people in the world who seek nicotine by smoking cigarettes, which kills people because they breathe in smoke. If we get rid of the smoke, we get rid of the disease.”

He said Asian innovators have the capacity to improve the technology behind non-combustible tobacco products similar to how Korean automobile makers and Japanese electronics manufacturers became dominant in the global arena. These innovations have a tremendous impact on public health by dramatically reducing the rate of smoking cigarettes as experienced in Japan, Iceland, and the United Kingdom.

Greek cardiologist Konstantinos Farsalinos, concurrently a researcher at the Onassis Cardiac Surgery Center in the University of Patras’ National School of Public Health, agreed that harm reduction is an absolute necessity because eight million people die prematurely every year from smoking-related diseases.

“It is a huge burden for the whole world. Due to the difficulty in quitting smoking, tobacco harm deduction represents a historical opportunity to eliminate smoking globally. Governments should realize that harm reduction is a human right enshrined in the World Health Organization’s 1986 Ottawa Charter for Health Promotion,” he said.

Consumer groups across the region have formed the Coalition of Asia Pacific Harm Reduction Advocates (CAPHRA) to address public health issues and encourage smokers to shift to safer alternatives if they could not quit outright.

During the AHRF 2019, coalition representatives signed the Seoul Declaration calling on the governments of the Philippines, Thailand, and India to reconsider plans of banning or imposing restrictive polices on e-cigarettes, heat-not-burn devices, and Swedish “snus” or teabag-like smokeless powder products made of tobacco, salt, and sodium carbonate.

CAPHRA executive coordinator Nancy Sutthoff urged the Philippine government to recognize that non-combustible products provide smokers with an option to quit smoking and could hasten the demise of cigarettes. She cited annual reviews of Public Health England, which have consistently concluded that e-cigarettes are significantly safer than tobacco burning.

“Safer nicotine products should be encouraged, not attacked with the same vehemence as cigarettes or, worse, banned. The government of the Philippines should avoid being perceived as promoting the interests of the cigarette and pharmaceutical industries,” the declaration stated.

In today’s fast-paced business environment, technological innovation is disrupting risk management in many industries. A recent survey conducted by global insurance broker Marsh found 91% of risk professionals believe that understanding technology innovation is essential for them to remain at the forefront of their industry.

Firms and individuals thus have to make a hard choice in the digital era: innovate or perish. This applies to everyone, whether in banking, financial services, health care, manufacturing, government, or other sectors. In other words, one should disrupt — or risk getting disrupted.

 

J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and Chairman of the FINEX Golden Jubilee Book Project.

Property firms rally as Duterte bucks China ban on online gaming

PHILIPPINE property shares got a boost after President Rodrigo Duterte said his country benefits from online casinos, standing pat on the industry despite China’s call for a total ban.

“I decide that we need it. Many jobs will be lost. Anyway, it’s government-controlled,” Mr. Duterte said in a televised briefing late Wednesday, when asked what he told Chinese President Xi Jinping about Philippine online gaming operators, or POGOs.

The rally in property companies was led by Filinvest Land, Inc. and Megaworld Corp., among the country’s top landlords, which each gained as much as 5.6% in early trading in Manila on Thursday. Other builders exposed to online casinos also climbed, with D.M. Wenceslao & Associates and DoubleDragon Properties Corp. gaining more than 3% each.

Investors have dumped Philippine property stocks amid concern Mr. Duterte will clamp down on the offshore gaming industry, which is overtaking business process outsourcing companies as Manila’s top source of office demand.

China wants the Philippines to stop all forms of online gambling, as it continues cracking down on a practice it says causes an illegal outflow of money. Online and phone betting has exploded in countries such as the Philippines and Cambodia over the last few years due to demand from gamblers in mainland China.

Mr. Duterte also said that he and Xi had long agreed on a 60-40 revenue-sharing arrangement that would favor the Philippines should joint oil and gas exploration in the South China Sea proceed.

Still, the Philippine leader said the territorial dispute between the two nations “will remain a problem” after Mr. Xi insisted that China doesn’t recognize Manila’s victory in an arbitration case that nullified some of Beijing’s claims in disputed waters. — Bloomberg

Your Weekend Guide (September 6, 2019)

Ballet Manila’s Snow White

BALLET MANILA opens its 24th season with the beloved fairy tale, Snow White, on Sept. 7 and 8 at the Aliw Theater, Cultural Center of the Philippines Complex in Pasay City. Choreographed by Lisa Macuja Elizalde. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Ballet Philippine’s Swan Lake

BALLET Philippines opens its 50th Season with Tchaikovsky’s Swan Lake with ongoing performances until Sept. 8 at the Cultural Center of the Philippines’ Main Theater. The ballet has been a staple in the company’s repertoire since 1978. The show will feature dancers from the Mariinsky Ballet (formerly the Kirov Ballet) in two evening performances alongside homegrown talents. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

K-Pop at Klook Travel Fest

THE booking platform Klook will hold the Klook Travel Fest 2019 on Sept. 7 and 8 at Halls A and D of the World Trade Center in Pasay City. Now on its third run, expect bigger travel sale deals and promos, score up to P15,000 off on your purchases, and get entertained while booking a vacation. K-Pop boy group Monsta X and rising stars Weki Meki will be performing during the Klook Travel Fair on Sept. 7. The Klook Cosmic Celebration will feature live performances and fan engagements from both groups. Tickets to the event are only available on Klook and are of limited quantity. There will be VIP Package Inclusions, Flash Sale Inclusions, and Exclusive Klook Travel Deals. Those attending Klook’s Cosmic Celebration at Hall D can only start queueing at 4:30 p.m. on Sept. 7. Gates open at 5 p.m., while the celebration begins at 7 p.m. Sign-up at http://www.klook.com/en-PH/activity/24283-travel-fest-2019-manila/. For details, visit Klook’s official Facebook page at https://www.facebook.com/klookph/.

Rak of Aegis

THE hit Pinoy jukebox musical Rak of Aegis returns to the PETA Theater Center, with ongoing performances until Sept. 29. The show uses the songs of the Aegis band such as “Halik,” “Sinta,” and “Basang-Basa sa Ulan,” to tell the tale of a perennially flooded barangay. This latest production features a mix of original cast members including Aicelle Santos and Kim Molina, Isay Alvarez-Seña and Sweet Plantado-Tiongson, Robert Seña and Renz Verano, and Kakai Bautista and Neomi Gonzales. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Grandparents Day at Shang

SHANGRI-LA PLAZA mall celebrates Grandparents Day with a performances by the Pundaquit Virtuosi of the CASA San Miguel youth orchestra at the Grand Atrium on Sept. 8, 7 p.m. The children of the Zambales-based string orchestra will perform under the baton of Maestro Ruggero Barbieri, and with violinist Alfonso “Coke” Bolipata, with a repertoire of famous classical music and timeless traditional Filipino pieces. For inquiries, call 370-2597 or 98 or visit www.facebook.com/shangrilaplazaofficial.

Caritas’ Segunda Mana EXPO

PRE-LOVED items such as clothing, shoes, bags, toys, home and fashion accessories, all donated and given by generous individuals, companies, and organizations that are being offered at affordable prices as part of Caritas Manila’s Segunda Mana. Purchasing commodities from Segunda Mana helps funds the programs of Caritas Manila. The Segunda Mana EXPO is ongoing until Sept. 15 at the Vista Mall Antipolo in Rizal. For information on how to donate to Caritas Manila and its programs, call 563-9311, 564-0205, 0905-428-5001, 0929-834-3857, visit atcaritasmanila.org.ph, or e-mail caritas_manila@yahoo.com

VAV fan meet

VAV has a fan meet this weekend.

SOUTH KOREAN boy group VAV will hold its first fan meeting in Manila on Sept. 7 at the SM North EDSA Skydome in Quezon City. Formed by A Team Entertainment (formerly AQ Entertainment), the seven-member band is comprised of St. Van, Baron, Ace, Ayno, Jacob, Lou, and Ziu. They debuted on Oct. 31, 2015 with the mini-album Under the Moonlight. VAV’s 5th digital single, “Senorita,” is the Korean version of the mega hit with the same title by German artist Kay One. Tickets to the fan meet, produced by Istudyo Ni Pipay, range from P2,000 to P7,500 and are available at SM Tickets.

Araneta’s Grandparents Day

ON SEPT. 8, the Araneta Center will hold its annual Grandparents Day celebration entitled “Grand Hangout.” The Center has partnered with Miss Universe Philippines 2019 Gazini Ganados — who has been vocal about her advocacy of elderly care — to celebrate Grandparents Day. On Sept. 6, she will be meeting 15 members of the elderly community who will be doing portraits of her. These portraits will be sold afterwards and part of the proceeds will be donated to Ms. Ganados’ charity of choice. Those interested in purchasing a portrait may contact Gateway Gallery curator Gari Apolonio at gatewaygallery@aranetagroup.com or 588-4000 local 8300. Meanwhile, the Grandparents Day celebration on Sept. 8 will feautre different activities across the Center. There will be a Grand Chess Championship starting at 10 a.m. in Gateway Mall with the winner given the opportunity to match-up with International Chess Master Chito Garma. At 3 p.m. in Ali Mall, there will be a Grand Ballroom Party in partnership with A. Dance Company, where grandparents can groove in one-hour classes of salsa and cha-cha. Farmers Plaza will have a performance by the Grand Symphonic Band at 3 p.m. Those who wish to reminisce the past can head on over to the relaunch of radio station DWWW 774. As the different activities are ongoing across the Center, free medical check-up and freebies will also be given away. To avail of these services, customers have to show a P500 single receipt purchase from any Araneta Center establishment. For details visit www.aranetacenter.net, and follow Araneta Center’s social media pages: @aranetacenter on Facebook and Twitter and @thearanetacenter on Instagram.

Managers can’t ignore workers’ personal problems

It’s easy to say for some people managers that employees must not bring their personal difficulties inside the office. However, we can’t avoid the fact that whatever happens, no matter how strong our policy against bringing up those issues with their family, their medical condition, money matters, among others, somehow it could adversely affect the quality and productivity of their work. So, how do you manage this common workplace issue? — White Flower.

One Friday, a 12-year old boy brought home his report card peppered with low grades. His mother asked: “What can you say about your school poor performance?” The boy replied: “Well, one thing is for sure. You know that I’m not a cheater.”

Likewise, if your workers are habitually absent or tardy, one thing is for sure, you know they have an uncontrollable personal issue. Seriously, it’s easy for management to rationalize that the workers’ family or financial problems or what have you, should not impact on their ability to perform their assigned tasks.

In real work life, however, that’s not how it goes. Every one of us, regardless of our position in any corporate hierarchy, whether one is part of management or not, there will come a time that personal problems surface and conflict with the demands of our respective job assignments. In these cases, people managers must exercise reasonable flexibility in dealing with those issues.

The personal issues may be due to single parenthood, two working parents dealing with kids, the illness of a family member, even the employee’s extra-marital affairs, among other things. You cannot avoid it. There will come a time when management will have to adjust the concerned employee’s work schedule so that he can take care of an ailing spouse, child, or parent.

In this case, the solution includes allowing him to work from home (if practical), assuming that he has already consumed all of his leaves. Of course, all of these can only be done in a limited period of time, say for a maximum of three months of leave without pay.

Therefore, it is imperative for people managers to help employees adjust to their personal problems until they have finally resolved them. If you do just that, your management can reap a long-term beneficial relationship with people by winning their support and loyalty, who know that someday, such problems may befall them.

It’s not easy to do all these. I suggest the following steps to minimize the difficulties of management in resolving the issues at hand:

One, create a policy that addresses the most common personal issue. This can be done by taking into consideration the rate of related issues that are cropping up from time-to-time. Having a formal policy ensures that you apply it consistently to all concerned. And when you draft the policy, ensure that you have reviewed the best practices in your industry and not of other sectors and with proper consultation with other department managers.

Two, be reasonably flexible but within the bounds of your policy. Even with an established policy, there could come a time when you have to adjust to a specific, unforeseen situation. If that happens, make sure that exceptions apply only to those employees with above average work performance and not to those with dismal records, including those who have violated the company’s disciplinary policies.

If you make an exception, include a statement in your formal memorandum to the concerned employee that such decision should not establish a bad precedent and each and every situation will be treated depending on the circumstances and merits of each case.

Three, use the opportunity to create new opportunities for everyone. This may include dividing the task of a certain worker with personal problem so the team can be highly-cooperative and learn to pitch in by performing other work responsibilities as well. Requiring everyone in your team to support one another will help boost morale and increase their chance to improve their team capacity.

Not only that. With this approach, you are giving the chance for workers to perform other tasks and propose solutions, if not create new ideas for certain recurring work issues.

Four, monitor the performance of all workers under your supervision. But not close enough for every people manager to micro-manage them. Some workers may hide their personal problems to management, but not for long as somehow, their poor performance will show. If this happens, talk to those concerned employee about the dip in their work performance and offer assistance to improve.

Don’t assume that everyone has a personal problem. If you are a trustworthy manager with a good reputation, chances are people will seek your assistance and confide to you their personal issues.

Last, request people to resign but give them the chance to come back. That is, if they have already exhausted their paid and unpaid three-month vacation leaves with no final resolution of their individual personal concern in the short term. Ensure that “boomerang employees” are eligible only if they have a consistent above-average work performance and if there’s a job vacancy.

Remember, it’s not easy to hire good workers. It pays to be as flexible to meet such special request from your best and brightest workers who are experiencing personal problems. Having a written policy like that protects you from being singled out by your peers and other employees who may think of you as being too soft or protective of certain favored workers.

ELBONOMICS: Every problem has its own invisible solution.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

How PSEi member stocks performed — September 5, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, September 5, 2019.

 

Palace sees next gov’t implementing IRA ruling

THE government will honor a Supreme Court ruling to expand payments to local governments from national government revenue starting 2022, rebuffing a request by governors to implement the new payment scheme earlier.

The President’s spokesman, Salvador S. Panelo, said in a statement that the expanded payments of the Internal Revenue Allotment (IRA) — the local governments’ share of national government revenue — will need to wait until the next government takes office.

“Due to the various commitments of the President to the people, such as the implementation of programs designed to combat criminality and corruption, as well as activities of the national government to promote human development and poverty reduction, to name a few, it was agreed that the adjustment of the IRA may not be feasibly effected during this Administration,” he said.

“Otherwise, there will be an unmanageable fiscal deficit, while securing loans will be more expensive to the nation as the citizenry will be paying for higher rates,” he added.

Mr. Panelo said Finance Secretary Carlos G. Dominguez III had raised the possibility of the early implementation of the Supreme Court’s Mandanas vs. Ochoa ruling prior to 2022.

In Mandanas vs. Ochoa, the court ruled that under the Local Government Code, which took effect in 1991, local government units (LGUs) are entitled to a share of the national government’s revenue, but also found that the national government has from the start been excluding Customs revenue from IRA computations. It ordered the national government to correct its computation method and make up the arrears from 1992 to 2012.

In a phone message, Mr. Dominguez said he raised the matter at the Cabinet meeting Wednesday “because of a request from the governors’ organization.”

In July, the League of Provinces of the Philippines (LPP) said “it would be in everyone’s interest if the national government does not delay its implementation to FY 2022.”

The group urged the Palace to “automatically release” the LGUs’ “just share” in all national taxes beginning July 1, 2019 and thereafter.

Mr. Panelo added in his statement: “In any event, this postponement until fiscal year 2022 of the adjustment of the IRA of local government units is in accordance with the ruling by the High Court that the expanded basis for calculating the share of local government units in the national taxes will be prospectively effective starting from the 2022 budget cycle pursuant to the doctrine of operative fact.”

On July 3, 2018, the court ruled that the “just share” of LGUs should be based on all national taxes, and not only in the national internal revenue taxes.

This stemmed from the petition filed by former Batangas governor Hermilando I. Mandanas in January 2012, when he was a member of the House of Representatives for the second district of Batangas.

In the petition, he claimed that LGUs are owed around P500 billion, covering underpayments of the IRA between 1992 and 2012, because Customs revenue was left out of the computation. — Arjay L. Balinbin

Gov’t picking projects to scale back to accommodate IRA ruling

ECONOMIC managers told the Senate that a Supreme Court ruling expanding the share of local governments in national government revenue has led to ongoing discussions about the scaling back of certain national government projects.

At a briefing by the Development Budget Coordination Committee (DBCC) before the Senate finance committee, acting Budget Secretary Wendel E. Avisado said the impact of the court ruling has triggered a review process for which projects need to be scaled down. The process is currently ongoing.

In Mandanas vs. Ochoa, the Supreme Court ruled that under the Local Government Code, which took effect in 1991, local government units (LGUs) are entitled to a share of the national government’s revenue, payments which are known as Internal Revenue Allotments (IRAs). It also found that the national government has from the start been excluding Customs revenue from IRA computations. It ordered the national government to correct its computation method and make up the arrears from 1992 to 2012, starting with the 2022 budget cycle.

The petitioner, former Batangas governor Hermilando I. Mandanas, initiated the case in January 2012, when he was a member of the House of Representatives for the second district of Batangas.

Mr. Mandanas claimed that LGUs are owed around P500 billion, covering underpayments of the IRA between 1992 and 2012, because Customs revenue was left out of the computation.

Senator Ana Theresia N. Hontiveros-Baraquel said “the negative fiscal impact on the national government’s disposable cash (is a reduction of) around P250 billion just for 2022.”

At the hearing, Sen. Panfilo M. Lacson noted the low priority given to the science and technology sector.

Bakit ang baba ng appropriation natin sa S&T (Science and Technology)?” Mr. Lacson said (Why are S&T appropriations so low?) He said out of 129 countries, the Philippines ranked 54th in the Global Innovation Index 2019.

Sen. Juan Edgardo M. Angara, the committee chairman, said lack of support for the sector reflects in the country’s performance.

Talagang kulang-kulang tayo dyan (We have our shortcomings there), which explains why our product offerings are very low, our incomes are very low, walang (there is no) innovation.”

National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon said the agency is seeking to improve the sector, beginning with the Philippine Development Plan.

“This is the first time that the Philippine Development Plan (will) actually include a chapter (on) science, technology and innovation,” she said.

“The first thing that we want to find out is exactly ano nga ba ang problema ng S&T natin (what are the problems of S&T) and so we started looking at strengthening the science, technology and innovation ecosystem.” — Charmaine A. Tadalan

DoTr says EDSA decongestion measures to take longer without emergency powers

THE Department of Transportation (DoTr) said measures to decongest Metro Manila’s main thoroughfare, known as EDSA, can be implemented without the use of emergency powers but will take longer to complete.

“Without any grant (of powers)… mabagal. Baka matapos na po ’yung termino, hindi pa natin nai-implement (the government’s term might end before we can implement the measures) kasi may mga saklaw na batas na kung gagawin natin ’yung polisiya, matatamaan ’yung batas (the law stands in the way of prompt execution of the policies being considered)… Kung walang emergency power, kung susundin ’yung proseso sa procurement, at susundin ’yung bidding, mabagal (Without emergency powers, we’ll need to follow the procurement process, which will slow things down)” Transportation Secretary Arthur P. Tugade said at a House hearing.

He was responding to a query from Rep. Edcel Lagman on the proposed measures to ease congestion on EDSA.

“We need the time to be able to put (our plans) in motion. Time is not on our side. The time of Congress is three years,” Mr. Tugade said.

House Bill 6425, which if passed will become the “Traffic Crisis Act of 2018. Makiisa. Makisama. Magkaisa,” was approved by the House of Representatives in 2018.

Section 6 of HB 6425 makes the transportation secretary in charge of road decongestion with “full power and authority… to streamline the management of traffic and transportation, and to control road use in the identified metropolitan areas.”

Its counterpart Senate Bill No. 1284, the proposed Traffic and Congestion Crisis Act of 2016, provides in Section 5 for the President to be “granted Emergency Powers to urgently utilize all necessary government resources, exercise police power, including eminent domain and employ executive action and measures to ensure effective implementation… of national and local government transportation projects.”

Transportation Undersecretary Richmund De Leon said there was no budget given to the public utility vehicle (PUV) modernization program that would allow jeepney drivers to train with the Technical Education and Skills Development Authority (TESDA).

“For 2020, zero po ang nabigay na budget (nothing was allocated) for the PUV modernization program. We would appeal to the Congress, to the committee, to extend some assistance to our department in funding this very noble project which is the PUV modernization program,” Mr. De Leon said.

Ang isa hindi napondohan under this program ay ’yung suporta natin sa drivers and operators is ’yung training under TESDA (TESDA driver and operator training was also not funded),” he added.

The Development Bank of the Philippines provided P1.5 billion in initial financing for operators to buy new units in 2017. This year, the bank provided P462 million in assistance to transport and cooperatives.

The PUV Modernization Program was launched in June 2017 and required operators to decommission and replace old units with more fuel-efficient ones with upgrades to passenger comfort, safety, and fare collection systems. — Marc Wyxzel C. dela Paz

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