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SC to act on PhilHealth case

THE SUPREME COURT (SC) on Tuesday indicated it might act on the petitions challenging the P89.9-billion transfer of funds from the Philippine Health Insurance Corp. (PhilHealth) to the national treasury before the scheduled oral arguments in January 2025.

“There is always a possibility for the court to act on the motion for Temporary Restraining Order (TRO). As long as the case isn’t finished yet, they can still act on it, [even before the oral arguments],” SC Spokesperson Camille Sue Mae L. Ting said in a news briefing.

The top court scheduled the oral arguments for a petition, filed by Senator Aquilino Martin “Koko” D. Pimentel, former Finance Undersecretary Ma. Cielo D. Magno, and others, seeking to stop the transfer of P89.9 billion excess PhilHealth funds to the national treasury on Jan. 14, 2025.

Another petition, filed last week, led by former SC Senior Associate Justice Antonio T. Carpio also asked the top court to stop the transfer, citing “technical malversation and/or plunder” committed by the Department of Finance.

As of writing, P60 billion has already been transferred to state coffers. The last tranche of P29.9 billion is scheduled for next month.

Finance Secretary Ralph G. Recto earlier told BusinessWorld they “are only following Congress’ instructions in the budget. We will respect the decision of the Supreme Court.”

A provision included in the 2024 General Appropriations Act allowed the DoF to issue Circular No. 003-2024, authorizing PhilHealth and the Philippine Deposit Insurance Corp. to transfer P89.9 billion and P110 billion, respectively.

These would help fund unprogrammed appropriations worth P203.1 billion, which would support government programs in health, infrastructure, and social services. — Chloe Mari A. Hufana

Perks for EV sector eyed

PHILIPPINE STAR/EDD GUMBAN

THE Philippine government is eyeing incentives for businessmen who will invest in the local manufacturing of electric-powered vehicles, the presidential palace said, as investors await policy statements from the government.

In a statement, the palace said Mr. Marcos cited the need for an incentive policy that will cover potential investors in the e-mobility industry during a Cabinet meeting on Tuesday.

The incentives will prioritize local players, “but we’ll take anybody who’s interested,” the President told officials from the Department of Science and Technology.

“They will have to undertake the production design to scale it up to a level to actually make a difference to the market,” he added.

At the meeting, DOST Secretary Renato Solidum, Jr. said potential investors and players including manufacturers and fabricators were waiting for a policy statement from the government.

The palace said the Department of Trade and Industry has been creating a strategic roadmap under the Electric Vehicle Industry Development Act to come up with possible incentives.

It said the government was also working with Philippine company ToJo Motors Corp. “to figure out the necessary policies to make it conducive for locally manufactured e-vehicles, specifically e-trikes and e-jeepneys, to operate in the Philippines.”

Mr. Solidum told the President that e-trikes will soon be mass produced in Isabela, noting many customers are waiting for electric trikes in the market.

“Officials in General Santos City, along with tricycle operators, are also interested,” the palace said, citing the DOST chief. “Local agri-machinery manufacturers could help speed up trike production.”

The DOST has been implementing an e-mobility program map, which includes the conversion of conventional tricycles and buses into electric ones.

The agency has already developed a hybrid electric train and an electric boat.

There were 25,196 registered e-vehicles (EVs) and 705 EV charging stations (EVCS) in the country as of Oct. 18, with 92 accredited EVCS providers, which have already generated 10,407 new jobs and about P1.99 billion in investments, according to the palace. — Kyle Aristophere T. Atienza

20-year-old system to blame in NAIA bag mishandling

Passengers are seen at the Ninoy Aquino International Airport (NAIA) Terminal 3, July 25, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

NEW NAIA Infra Corp. (NNIC), the operator of Ninoy Aquino International Airport (NAIA) is working closely with airline companies to resolve issues with the baggage handling system at Terminal 3, citing the aging system as the cause of disruption.

In a statement on Tuesday, NNIC said it is working with budget carrier Cebu Pacific to ensure contingency measures are in place to address issues with the baggage handling system — affecting hundreds of bags and disrupting the process of passengers’ check-in luggage.

NNIC and Cebu Pacific said that the parties have increased their manpower to assist travelers and help expedite baggage processing.

In a Viber message, Cebu Pacific said that as of Tuesday a total of 821 bags were left behind due to the baggage handling system not functioning since Oct. 18.

The budget carrier said passengers had an option to have their luggage delivered to their destination or have their bags picked-up at the airport for domestic flights, while a similar option was given along with delivery services for passengers for international flights.

NNIC took over the operations and maintenance of the country’s main gateway in September. The company has earlier outlined its immediate plans for the airport which include upgrading and replacing airport facilities and systems.

“A top priority in these efforts is the replacement of the 20-year-old baggage handling system. NNIC has already procured a new, advanced system with additional redundancy measures set to be implemented to prevent future disruptions and enhance operational efficiency,” NNIC said.

NAIA’s Terminal 3 is considered the most congested terminal. Currently, both local and international flights are designated at Terminal 3.

NNIC said previously that it plans to designate Terminal 3 solely for all foreign airlines including international flights of Cebu Pacific and AirAsia Philippines.

Further, AirAsia Philippines said it was not affected by the ongoing issues involving the baggage handling system at Terminal 3.

“We are aware of the current challenges at Terminal 3 but our Ground Operations were able to deploy additional personnel to address baggage handling concerns… We have not encountered delays in baggage handling so far,” said AirAsia Philippines Communications and Public Affairs Head Steve F. Dailisan.  — Ashley Erika O. Jose

DENR asks P500M for protected areas 

TWITTER.COM/DENROFFICIAL

THE DEPARTMENT of Environment and Natural Resources (DENR) has asked the Senate for an additional P500 million to manage legislated protected areas around the country and about P150 million to expand water service coverage to 10,000 households next year.

At a Senate Finance committee hearing on the agency’s proposed budget, Senator Cynthia A. Villar adjourned the hearing and said she would consult with her colleagues in plenary on the budget hike requests.

“We will talk to the mother committee on the decided increases in the final version of the budget,” she said.

DENR Undersecretary Analiza Rebuelta-Teh told the same hearing that it is looking to source the additional P500 million to the original P1.2 million in funding for the protected areas from the Integrated Protected Areas Fund and within the agency’s own budget ceiling within the 20205 National Expenditure Program.

She added that the P150 million request to boost the Local Water Utilities Administration’s coverage of its water services would be through “congressional initiative,” which would be left to senators to decide how to source this funding.

In April, Ms. Villar called on the agency to improve its implementation of laws, policies, and regulations intended to safeguard legislated protected areas. This was amid viral videos of resorts being set up within the Chocolate Hills in Bohol and Mount Apo Natural Park in central Mindanao. — John Victor D. Ordoñez

Ex-DoF officials in P15-M tax case acquitted

THE Philippines’ anti-graft court has acquitted former Department of Finance (DoF) officials over the approval of P15 million worth of tax credit certificates (TCC) to a textile company in the 1990s, citing lack of evidence against them.

In an 86-page decision promulgated on Oct. 22, the Sandiganbayan Seventh Division ruled the prosecution failed to establish that Finance department officials and alleged company officers conspired to defraud the state through the awarding of TCCs, committing graft and estafa through the falsification of documents in the process.

“Not only is the prosecution’s evidence insufficient to support its allegation that [the textile company’s] tax credit claims were fraudulent, but it is also insufficient to prove the existence of conspiracy between and among accused public officers in giving unwarranted benefit, advantage, or preference… detriment of the government,” the ruling, penned by Associate Justice Zaldy V. Trespeses, read.

“It bears repeating that the prosecution failed to sufficiently establish that the documents subject of these cases are spurious or contain false data or information,” Mr. Trespeses’ ruling for their estafa charges stated.

State lawyers failed to authenticate the complaint affidavit and other documentary evidence against the accused, resulting in it being considered hearsay evidence by the court, weakening their case.

“The court emphasizes that the Complaint Affidavit of the Special Presidential Task Force 156 was not authenticated by the affiant,” it stated. “While notarized affidavits are considered public documents, they are still classified as hearsay evidence unless testified to by the affiant.”

The prosecution also failed to back the claim that the accused DoF officials benefitted from the issuance of dubious TCCs to the textile company. “The evidence failed to show that accused public officers used or gained profit from the transactions.” — Kenneth Christiane L. Basilio

NIA releases Magat dam water in Isabela

BAGUIO CITY — The Provincial Government of Isabela alerted residents living near the Magat River and Cagayan River as the National Irrigation Administration (NIA) will open the water gates of the Magat Dam Reservoir, starting 1 p.m., Tuesday in anticipation of the heavy rains tropical storm “Kristine” will bring.

The gates will release 1.44 cubic meters of water per second and the volume will increase depending on the rain the tropical storm will bring.

Residents along these two rivers were advised not to stay at the riverbanks, and avoid crossing them. They were also advised to prepare for evacuation, if needed.

Meanwhile, classes were suspended from kindergarten to Grade 12 and Alternative Learning System in Tuguegarao City, Lal-lo, Aparri, Solana, Lasam, Peñablanca, Baggao, Camalanuigan, Piat, and Abulug in Cagayan Province; whereas classes in all levels were suspended in Calayan, Amulung, Alcala, Iguig, Enrile, and Allacapan.

Classes from kindergarten to senior high school are also suspended in the province of Isabela.

The Coast Guard District North Eastern Luzon is now in full alert and prepared for the possible effects of Tropical Storm “Kristine” to its areas of responsibility. Necessary preparations are being conducted to ensure the readiness of the Coast Guard stations and substations in Cagayan, Batanes, Calayan, Isabela, and Aurora.

Cagayan, Isabela, Quirino in the North down to Surigao del Norte were put under Tropical Cyclone Wind Signal number 1, as of the Tuesday morning. — Artemio A. Dumlao

26 unlicensed firearms in Maguindanao surrendered

STOCK PHOTO | Image by Daniel S. from Pixabay

COTABATO CITY — A group in Maguindanao del Sur province surrendered 26 more assorted firearms to the Army’s 6th Infantry Division in support of its disarmament campaign complementing the Mindanao peace process.

Mayor Reynalbert O. Insular of the hinterland South Upi town in Maguindanao del Sur turned over the unlicensed firearms that he and officials of the 57th Infantry Battalion had collected from villagers to Brig. Gen. Michael A. Santos, commander of the 603rd Infantry Brigade, during a simple rite in their municipal gymnasium in Barangay Romongaob on Tuesday.

The cache comprised of an M16 rifle fitted with a grenade launcher, two .30 caliber M1 Garand rifles, three M1 Carbine rifles, 10 gauge 12 shotguns, three 7.62 bolt-action sniper rifles, three M79 grenade launchers, a 9-millimeter Uzi machine pistol, a .45 caliber pistol and .22 and .38 caliber revolvers.

Major Gen Antonio G. Nafarrete, commander of 6th ID, told reporters on Tuesday that Mr. Insular, Mr. Santos and Lt. Col. Aeron T. Gumabao, commanding officer of the 57th IB, cooperated in collecting the 26 firearms via backchannel dialogues with owners. — John Felix M. Unson

P20.4-M shabu confiscated in Zamboanga

PHILSTAR FILE PHOTO

COTABATO CITY — Policemen seized P20.4 million worth of crystal meth (shabu) from a dealer, said to have links with drug rings in the Bangsamoro region.

The dealer was entrapped in Barangay Zone II in Zamboanga City at noontime Tuesday. The suspect’s name was withheld by the Police Regional Office-9 while validation of his reported connections with shabu dealers in Lanao del Sur, Maguindanao del Norte and in Cotabato City is still underway.

Brig. Gen. Bowenn Joey M. Masauding, director of PRO-9, and his counterpart in the Bangsamoro Autonomous Region in Muslim Mindanao, Brig. Gen. Romeo J. Macapaz, are together looking into tips by confidential informants about the suspect’s distribution of shabu to contacts in Bangsamoro towns that are close to the Zamboanga peninsula.

Mr. Masauding was quoted in reports by radio stations in Central Mindanao on Tuesday afternoon as saying that personnel of different units under PRO-9, the Zamboanga City Police Office and intelligence agents from the Naval Intelligence and Security Group – Western Mindanao of the Philippine Navy cooperated in the operation that led to the arrest of the lone male drug trafficker. — John Felix M. Unson

Red tape blamed for low hog vaccination rates

REUTERS

HOG FARMERS said burdensome documentation requirements have delayed their participation in the government’s limited rollout of the African Swine Fever (ASF) vaccine.

Alfred Ng, vice-chairman of the National Federation of Hog Farmers, Inc., said: “Many backyard farmers are having difficulty in securing the necessary documentation for the trials.”

Mr. Ng added that some local government units are not aware of the vaccine trials hindering further expansion of the program.

“Most ASF outbreak areas have disposed of their pigs… and do not have enough samples to be involved in these trials,” he said via Viber.

The Department of Agriculture (DA) recently included commercial hog farms in its vaccine trials to increase the number of inoculated hogs.

Administrative Circular No. 8 opened up the trials to commercial farms and swine herds covered by the Integrated National Swine Production Initiatives for Recovery and Expansion Program. It cited the “low participation rate of smallhold farms.”

The DA allocated P350 million to procure 600,000 doses for hog farmers initially targeted. The rollout started on Aug. 30 in Lobo, Batangas.

The AVAC ASF Live vaccine from Vietnam has been approved by the Food and Drug Administration for a limited government-controlled rollout. It issued a Certificate of Product Registration for AVAC, valid for two years, and subject to monitoring and annual evaluation.

“We still believe in DA’s controlled vaccine trials and they should not be hurried… We need to ensure that the vaccine is proven to be safe and effective,” Mr. Ng added.

He said that commercial hog farms may not readily participate in the vaccine program given the government requirements, which include blood tests and constant monitoring of the hogs.

The DA has said that it takes about three weeks to blood-test hogs before they can be given the ASF vaccine. The development of antibodies is also expected to take a few weeks.

Mr. Ng added: “We all pray for an effective vaccine that will be safe and not harmful to our already beleaguered swine industry. We hope that these trials do not create a mutated strain that is more difficult to control and contain.”

As of Oct. 18, 108 municipalities across 25 provinces had active ASF cases, according to the Bureau of Animal Industry. — Adrian H. Halili

Reserve requirement cut seen boosting hotel construction as office market adjusts

JOSUE ISAI RAMOS FIGUEROA-UNSPLASH

THE reduction of the bank reserve requirement is expected to boost private construction, particularly for hotels, the Bank of the Philippine Islands (BPI) said.

“The new governor has moved away from the archaic policy of reserve requirements, which will provide liquidity that will help the private construction sector recover faster,” BPI Lead Economist Emilio S. Neri, Jr. said in an online briefing on Tuesday.

The Bangko Sentral ng Pilipinas (BSP) said in August that it will reduce the reserve requirement for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7%, effective Oct. 25.

It will also cut the reserve requirement for digital banks by 200 bps to 4%. The ratio for thrift lenders will fall 100 bps to 1%, while that for rural and cooperative banks will fall 100 bps to 0%.

Mr. Neri added that the main beneficiaries will be the hotel and accommodations industry, especially amid low prices for construction materials.

“I think there are at least 150 to 170 new hotels being built as we speak, and more could actually come in to help offset some of the negative impact of the exit of POGOs (Philippine Offshore Gaming Operators) and traditional offices,” he said.

The President in July announced a ban on POGOs, which are now officially known as Internet Gaming Licensees (IGLs), effective by the end of the year.

“With lower inflation in construction materials, stronger peso to some extent, and loans being more readily available … there could be a big boom in accommodations, not just local brands but even foreign brands like Marriott and the like coming into the Philippines to compete with regional counterparts,” Mr. Neri added.

He also said private construction companies need to adjust to the decline in traditional offices due to remote work.

“Many Metro Manila and Metro Cebu residents are actually deciding to move away from the cities. They are no longer renting very expensive condominiums. They can decide to move elsewhere, a little bit farther from the cities, where the houses are more affordable or the rents are lower. This is good for residential real estate. And we’re actually seeing that happen,” Mr. Neri said.

Mr. Neri said that the private construction spending has been catching up to pre-pandemic levels, but is being weighed down by the exit of IGLs and the downsizing of offices with the onset of remote work.

“There are so many offices available in the market. A lot of them are also still being built at the moment. A lot of them are going to come on stream in the next few years,” he added. — Aaron Michael C. Sy

Innovation deemed ‘a matter of survival’ for PHL companies as global competition intensifies

FREEPIK

PHILIPPINE businesses that embrace innovation will be in position to boost trade and attract more investment as technology ramps up global competition, the Philippine Chamber of Commerce and Industry (PCCI) said.

At the 50th Philippine Business Conference and Expo on Tuesday, PCCI President Enunina V. Mangio said that “embracing innovation has become not just an option but a matter of survival in the intensely competitive global village.”

“The use of innovative strategies and approaches, for example, can help us adequately respond to the need to improve on the ease and reduce the cost of doing business in the country,” she said in her welcome remarks.

“This is necessary to further nurture our enterprises, boost trade and attract more investments,” she added.

She said innovation will not only ensure the competitiveness and resilience of businesses but also sustain the progress so far achieved.

In her keynote speech, Vice-President Sara Z. Duterte-Carpio said digitalization must take its place alongside the Philippines’ strengths in human resources to ensure “efficient operations and timely production, and of course, delivery of services and products.”

“We cannot refuse the benefits of digitalization in our businesses. We should… be willing to invest in digital infrastructure,” she added.

In a panel discussion, Carlos Ramon C. Aboitiz, chief corporate services officer of AboitizPower, said that hiring the right people is the key to staying competitive as technology advances.

“Ultimately, it comes down to the basics and hiring the right people is the first thing,” Mr. Aboitiz said.

“I think knowing how to use technology to acquire data, develop insights, and then use those insights also helps sustain (competitiveness),” he added.

Sagittarian Agricultural Philippines, Inc. President Jose Avelino G. Diaz said the case is growing for businesses to pursue more vertical integration.

“That helped us to have more internal control which gave us more agility and flexibility in designing our products and adjusting our products in accordance with what our customer really wants and really values,” said Mr. Diaz.

Juan Carlos C. Puno, chief finance officer of Globe Telecom, said that for telecommunication companies, everything is fast-moving, requiring businesses in the industry to become more efficient.

“We constantly look for efficiencies in our systems to be able to shorten a lot of these decision times,” he added.

“Agility really is being able to go to market very quickly. If you take a month to decide on a product, by the time you launch it, the opportunity is gone,” he added. — Justine Irish D. Tabile

Bid invitation issued for Nasugbu Port breakwater

THE Philippine Ports Authority (PPA) said it issued bid invitations for a P485.91-million contract to build a breakwater for the Port of Nasugbu, Batangas.

In an advisory on Tuesday, the PPA set Nov. 7 as the bid submission deadline for the project, which will be funded out of the PPA’s own 2024 budget.

All bids received in excess of the approved contract amount will be rejected at the bid opening, it said, adding that potential bidders must have completed a similar project to be considered eligible.

According to PPA, the bids and awards committee will hold a pre-bid conference on Friday.

The PPA said the winning bidder will have 720 calendar days to complete the project.

Over the four years to 2028, the PPA is earmarking about P16 billion to fund its infrastructure projects, including the 14 flagship projects due for completion within that timeframe. — Ashley Erika O. Jose

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