Justice Carpio refutes Duterte on China row

July 23, 2019 | 8:54 pm

CHINA DOES not own and control the South China Sea, contrary to President Rodrigo R. Duterte’s claim in justifying his foreign policy stance, a Supreme Court magistrate said on Tuesday.

Senior Associate Justice Mr. Antonio T. Carpio in a statement refuted the president’s claim, noting that China “is in possession of seven features in the Spratlys plus Scarborough Shoal,”

“In addition, during the Duterte administration, China seized Sandy Cay from the Philippines,” the magistrate said, adding that the total area of these geologic features, including their territorial seas is less than 7% of the South China Sea.

Mr. Carpio said foreign naval powers such as the United States, United Kingdom, France, Australia, Japan, and Canada continuously sail and conduct naval drills in the South China Sea, which shows that China is not in possession of the waterway.

Mr. Duterte in his annual state of the nation address to Congress on Monday said the Philippines is not in a position to assert its rights in the disputed sea because China is in possession of it.

He blamed Benigno S.C. Aquino III, his predecessor, for allegedly giving way to China after a 2012 standoff in Scarborough Shoal that later allowed the regional power to occupy the shoal.

China has been building artificial islands in the disputed Spratly Islands and setting up installations including several runways. China claims sovereignty over more than 80 percent of the waterway based on its so-called nine-dash line drawn on a 1940s map.

President Duterte has sought closer investment and trade ties with Beijing, including over resources in the South China Sea, since taking power in 2016.

His predecessor sued China before an international arbitration tribunal over its territorial claims, and won. He also strengthened Philippine alliance with the US to try to check China’s expansion in the main waterway.

In his speech, Mr. Duterte also said China has “traditional fishing rights” which Mr. Carpio also refuted. The magistrate said there can be no traditional fishing within the Philippines’s exclusive economic zone.

“This is very clear in the arbitral award of July 12, 2016,” he said. “Reed Bank is part of Philippine exclusive economic zone. There can be no traditional fishing in Reed Bank.”

Meanwhile, Senate President Vicente C. Sotto III said the Philippines should allow Chinese fishermen in the disputed area provided the Philippines is also allowed there.

A Chinese fishing vessel allegedly rammed a Filipino fishing boat near the Reed Bank and abandoned the 22 Filipino crew members in the sea after the ship sank.

Majority of Filipinos think that the Philippines should regain control of disputed islets occupied by China, according to a Social Weather Stations (SWS) poll in June.

Such sentiment has grown steadily in the past four SWS polls in the past year, according to the report e-mailed late Wednesday.

The polling company said 93 percent of Filipinos think the country should recover the islands in the disputed South China Sea, based on a June 22 to 26 poll. The proportion has risen from 89 percent in December, and 87 percent in earlier polls last year. — Vann M. Villegas and Charmaine A. Tadalan

Mindanao martial law likely to be extended

July 23, 2019 | 8:53 pm

PRESIDENT Rodrigo R. Duterte is likely to extend martial rule in Mindanao for another year as recommended by his security adviser, his spokesman said yesterday.

“The president will listen to those who are knowledgeable on the facts existing on the ground,” presidential spokesman Salvador S. Panelo said at a briefing in Manila.

National Security Adviser Hermogenes Esperon, Jr. on Tuesday said he would recommend the extension of martial law amid continued rebellion in the Mindanao region.

Commission on Human Rights spokesperson Jacqueline Ann C. de Guia has said that martial law should be reserved as an extraordinary measure for lawless violence, invasion or rebellion. The body thinks that law enforcers can effectively address terrorism and other lawless elements in Mindanao without martial rule.

The President placed Mindanao under martial law in 2017 after extremists linked to Islamic State raided Marawi City, leaving about 100 people dead and displacing thousands after clashes with the military.

Congress extended the 60-day martial rule until the end of 2017 to help authorities end the Marawi siege that lasted about five months.

Lawmakers again extended martial law, upon the request of Mr. Duterte, in Mindanao until the end of this year to help fight terrorism. — Arjay L. Balinbin

Nationwide round-up

July 23, 2019 | 8:52 pm

DoJ forms panel for KAPA estafa complaint

THE DEPARTMENT of Justice (DoJ) has formed a five-member panel to handle the syndicated estafa complaint filed against officials of Kapa-Community Ministry International, Inc. (KAPA) in connection with its alleged investment scam. In the order signed by Prosecutor-General Benedicto A. Malcontento, the prosecuting panel is composed of Assistant State Prosecutors Ma. Lourdes C. Uy, Consuelo Corazon M. Pazziuagan, Xerxes U. Garcia, and Jeanette M. Dacpano, and Associate Prosecuting Attorney Luis Miguel A. Flores. The National Bureau of Investigation and three KAPA investors filed eight counts of syndicated estafa last July 8 against 14 KAPA officials, including its founder, Joel A. Apolinario. Aside from the syndicated estafa, it was also recommended that they be charged for violating Section 8 (Requirement of Registration of Securities) and Section 26 (Fraudulent Transactions) of the Securities Regulation Code. The complainants said KAPA and its officials are involved in a pyramiding investment scam, with the characteristic of a “Ponzi scheme.” The three investors claim that they invested a total of P575,000 to KAPA, which they tried but failed to recover following news on the organization’s alleged illegal operations. Preliminary investigation is also ongoing on the complaint filed by the Securities and Exchange Commission against KAPA and eight officials. — Vann Marlo M. Villegas

Pag-IBIG Fund says system improvements address 8888 hotline concerns

CONCERNS DIRECTED to the Home Development Mutual Fund (Pag-IBIG Fund) through the nationwide 8888 Citizens’ Hotline Complaint Center dropped 74% in the first half of 2019 as system improvements have been able to address most cases, the government agency said. In a statement on Tuesday following the President’s State of the Nation Address, Secretary Eduardo D. del Rosario, chairperson of the Pag-IBIG Fund Board of Trustees and the Housing and Urban Development Coordinating Council, said 99% of received concerns have been resolved. “We concur with President Rodrigo Roa Duterte when he said that much has to be done in ensuring responsiveness to people’s needs. And while Pag-IBIG Fund made the list of the agencies that need to improve service delivery, it gives us the chance to shine light on our advancements. Because in the last two years, we have been monitoring 8888 calls closely and I’m happy to report that 99 percent of all calls are already resolved,” he said. The agency also noted that about 50% of the calls “are not complaints but are actually inquiries or requests for assistance regarding their records.”

Cyber-libel trial vs Ressa starts with 2 witnesses

THE TRIAL for the cyber-libel charge against Maria A. Ressa, chief executive officer and executive director of online news site Rappler, started Tuesday with the two witnesses for the complainant taking the stand. The case, which also involves a former Rappler researcher, was filed by businessman Wilfredo D. Keng. Presented as witnesses before the Manila Regional Trial Court Branch 46 were Marcelino Malonzo, a reader of the assailed article, and National Bureau of Investigation Special Agent Christopher M. Paz. “When you present evidence… it’s more on the facts, when it comes to whether or not there is a crime of libel, it’s up to the judge already to determine. So right now since we’re in trial, we’re establishing the facts to constitute the elements of the crime of libel,” Mr. Keng’s lawyer, Joseph L. Banguis, told reporters after the hearing. In a statement, Ms. Ressa said: “I have faith that there are enough men and women inside our justice system who will uphold the spirit of the law — not just in this case but in those that aim to use the law to intimidate others.” Mr. Keng is suing over a Rappler article in 2012 stating that he, the alleged owner of vehicle used by former chief justice Renato C. Corona, is linked to illegal activities. The next hearing is set July 30. — Vann Marlo M. Villegas

BoC crushes luxury car, fake cigarettes, machines

July 23, 2019 | 8:51 pm

A FERRARI car, 12 cigarette-making machines, and various brands of counterfeit cigarettes were crushed at the Bureau of Customs (BoC) Compound in Port Area, Manila on Tuesday as part of the government’s drive against smuggling and the manufacture of fake cigarettes. In a statement, the BoC said the luxury vehicle, declared as used auto spare parts, arrived at the Port of Manila last May 13, and was later declared abandoned and forfeited pursuant to Section 1129 of the Customs Modernization and Tariff Act (CMTA). Upon inspection, the customs examiner found that the shipment actually contained a Ferrari with both doors and the hub dismantled from the main body. The fake cigarettes and imported cigarette-making machines, meanwhile, were seized in February this year from a warehouse in Tacloban City. The BoC said, “The seizure and destruction of the said goods serve as a warning to smugglers and manufacturers of fake cigarettes. This is in line with the directive of Secretary of Finance Carlos Dominguez to the Bureau to closely monitor the importation and manufacture of illegal cigarettes.”

Dengue outbreak declared in Iloilo City following all 5 provinces in Western Visayas

July 23, 2019 | 8:50 pm

A WEEK after all the five provinces in Western Visayas declared a dengue outbreak, Iloilo City Mayor Jerry P. Treñas followed suit on Monday as he expressed alarm over the increasing number of cases in the region’s center. “There has been a 416.7% increase in dengue cases here from January 1, 2018 up to the present. The alarming dengue cases are continuing to rise every day,” Mr. Treñas said. The City Health Office has recorded six deaths and 869 dengue cases as of July 13. The City Disaster Risk Reduction Management Council (CDRRMC) is set to meet on Wednesday to discuss the possible endorsement of placing the city under a state of calamity due to dengue. — Emme Rose S. Santiagudo

Lanao del Sur signs deals for coffee, abaca development

July 23, 2019 | 8:50 pm

THE LANAO del Sur government has identified coffee and abaca among its priority products for development through partnerships with various groups. The provincial government signed two agreements during the Marawi-Lanao Agribusiness Forum and Market Matching on July 17-18 in Marawi City for the developments of the two crops, according to a press statement released by the Strengthening Urban Resilience for Growth with Equity (SURGE) project yesterday. One of the agreements is with the Philippine Coffee Board, and the other with the Philippine Fiber Industry Development Authority and NewTech Pulp, a private company, “to initiate action plans to expand abaca production and village-level processing in the province.” SURGE, a project funded by the United States Agency for International Development, supported the event organized by the Bangon Marawi Chamber of Commerce and Industry. It was intended to help farmers gain “market information on viable agricultural crops and the opportunity to forge partnerships with key private companies.” About 500 displaced farmers from Marawi joined the event, along with representatives from SL Agritech Production, East West Seed Corp., Pilmico Food Corp., UGP Group and Matling Corp. Aside from coffee and abaca, it was also discussed during the forum possible “partnership schemes for agricultural products that are highly suitable in Lanao area” such as cassava, poultry, rice, banana and native scallion. — Carmelito Q. Francisco

Japanese grant for Metro Cebu septage project

July 23, 2019 | 8:49 pm

Japanese Ambassador Koji Haneda (right) and Foreign Affairs Secretary Teodoro L. Locsin sign and exchange notes on July 23 for the grant of up to ¥2 billion (P946 million) for the Project for the Septage Management of Metro Cebu Water District. The grant will be used to construct a septic tank sludge treatment facility and provide sludge collection vehicles as well as improve the operation system for sludge processing.

2 BPO companies awaiting approval to operate in Bohol

July 23, 2019 | 8:49 pm

TWO BUSINESS process outsourcing (BPO) companies are just awaiting approval from the Office of the President to launch operations in Tagbilaran City, Bohol. Department of Trade and Industry-Central Visayas (DTI-7) Regional Director Asteria C. Caberte said the two firms’ applications to be declared as cyberzones have been endorsed by the Philippine Economic Zone Authority (PEZA). Ms. Caberte said these BPOs, the first outsourcing companies to locate in Bohol, is expected to hire over 1,000 workers for their call center operations. In an earlier interview, PEZA Director General Charito B. Plaza called on the Department of Information and Communications Technology (DICT) to help the island province improve its ICT infrastructure to attract more BPO locators. Ms. Plaza said PEZA has already identified possible IT Parks in Bohol, but property developers are still hesitant to put up office buildings because of concerns on internet data connectivity. Ms. Caberte, on the other hand, said Bohol already has a fiber optic network and is ready to host outsourcing firms. — The Freeman

SSS-Davao warns over 3,200 delinquent employers

July 23, 2019 | 8:45 pm

THE SOCIAL Security System’s (SSS) Davao Region office has called on delinquent employers to settle accounts or face charges. “These are employers who are not compliant… and they are not that concerned (that their remittances are delayed),” Office-in-charge Southern 1 Department head Rizalito Alberto C. De Leon told media during the Kapihan sa Davao. He cited that as of June 28, there were 3,283 delinquent employers in the region. Mr. De Leon said these employers have been notified through an electronic statement of account and some have been visited by SSS account officers. SSS Communications Officer Greta Queyle said 78 cases for non-remittance have been filed before the prosecutors office as of June 30. Ms. Queyle noted that convicted employers face a fine of up to P20,000 imprisonment of one day to 12 years. “This will send a strong message to the delinquent employers that SSS is here. It is true to its mandate that our premiums should be paid,” she said, adding that employees are the ones who suffer the consequences of having delinquent employers. — Maya M. Padillo

Nation at a Glance — (07/24/19)

July 23, 2019 | 8:45 pm

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Ride-sharing restrictions lifted on small cars

July 23, 2019 | 8:30 pm

REGULATORS will clear hatchback and subcompact cars to operate legally as part of the ride-sharing fleet.

The Department of Transportation (DoTr) issued Department Order No. 2019-013 yesterday, which ruled that these types of car can register for the transport network vehicle service (TNVS) category.

TNVS-registered vehicles make up the fleet accredited by ride-sharing platforms such as Grab Philippines (MyTaxi.PH, Inc.).

The DoTr said the policy aims to “further promote mobility and recognize new forms of transport vehicles that can help address the large demand for transport services.”

The Land Transportation Franchising and Regulatory Board (LTFRB) initially set restrictions on hatchbacks in ride-sharing due to safety concerns.

The restrictions are that hatchbacks may only operate as TNVS within a transition period of three years, may serve Metro Manila destinations and must charge a lower fare.

With the new policy from DoTr, hatchbacks and subcompacts are allowed to charge fares as authorized by the LTFRB for other TNVS units such as sedans, wagons, sport utility vehicles (SUVs), and vans.

The order will be effective as soon as it is published at the University of the Philippines Law Center. Transportation Assistant Secretary for Communications Goddes Hope O. Libiran said this is scheduled to be done within the week.

The LTFRB is also required to come up with a memorandum circular indicating further details of the policy within 30 days from its issuance. — Denise A. Valdez

BSP backs amendment to help banks comply with Agri-Agra Law

July 23, 2019 | 8:29 pm

THE Bangko Sentral ng Pilipinas (BSP) said it is looking forward to passing an amendment to the Agri-Agra Reform Credit Act this year which would expand the projects that banks can fund to comply with their agricultural lending obligations.

“Ginagawa pa ng House ngayon. Kasi ibro-broaden lang namin ’yung eligible projects sa agri agra. (The House is working on it. It will broaden the eligible projects under Agri Agra.) We will consolidate it. Kasi ngayon 10% sa agrarian reform, 15% sa agriculture (under current rules, banks are required to lend 10% of their portfolio to agrarian reform projects, and 15% to agriculture). We will broaden the projects,” BSP Governor Benjamin E. Diokno told BusinessWorld in a chance interview in Makati.

“For example, you are funding a solar power project for agriculture, pwede na iyon (it might qualify)… (or) if you issue a bond to support a particular agricultural region,” Mr. Diokno said.

Asked for a timeline to pass the law, Mr. Diokno said, “Before the end of December. I’m optimistic.”

Mr. Diokno said at a forum in Makati that banks are having difficulty in complying with the law and would rather pay the penalty than lend to farmers.

“The banks are complaining that the Agri Agra (rules) are too onerous to comply. Other banks would rather pay the penalty than lend,” Mr. Diokno said.

Republic Act 10000 or the Agri-Agra Reform Credit Act requires banks to allot at least 10% of its total lending portfolio to agrarian reform beneficiaries and 15% to farmers and fisherfolk.

As of end-2018, banks have only extended P707.4 billion worth of loans to the agriculture sector, or 56.97% of the P1.241 trillion they should have lent out to beneficiaries, according to central bank data. At the end of 2017. such loans totaled P573.69 billion, or roughly half of the total of P1.034 trillion if all banks were fully compliant.

“We are filing a bill, we call it Agriculture Modernization Financing, no longer Agri-Agra. We will combine the two — 10% plus 15%, total 25%. Combine the two and then we will broaden the kind of projects that will be compliant. We’re very sensitive to this. I keep saying this: Agriculture is the weakest link. We need a new Agriculture Secretary. Agriculture in Erap’s term used to grow by 6.5%. Now it is only growing at 0.5%. We really need to focus on agriculture,” Mr. Diokno said.

Banks said the law should be revised to be more realistic.

“We support agriculture but the [Agri-Agra] law has to be more realistic in terms of compliance, in terms of lending by banks to the agri sector,” Suzanne I. Felix, executive director of Chamber of Thrift Banks (CTB) told BusinessWorld.

“Well, we support what the governor said, including agri-agra. It’s something that the banking industry is studying.”

Ms. Felix also said that the banking industry will be studying the bill Mr. Diokno hopes to file.

“We’d like to form a common position perhaps within the banking industry with regard to Agri-Agra,” she said.

The CTB released a position paper to Congress in 2017 proposing certain amendments to the law.

The position paper stated that “lending to the agra sector is difficult” and that “forcing banks to lend to a market that is not ready will just create another Financial Crisis because it will create a bubble of bad loans which the Philippines cannot afford.”

In an e-mail, Ms. Felix said, “Given the share of agriculture in GDP (gross domestic product), there is no absorptive capacity for the sector and allocation will just result in excess supply, therefore enhancing the non-compliance of the mandated amount.”

President Rodrigo R. Duterte, in his State of the Nation Address (SONA), threatened to shut down Land Bank of the Philippines (LANDBANK) for not providing sufficient credit assistance to farmers.

“I’m asking now Congress, if there is no viable plan for (lending to) farmers and (all the loans are) commercial transactions, might as well abolish (LANDBANK) and give the money to the congressmen for their development funds,” Mr. Duterte said.

Meanwhile, Finance Secretary Carlos G. Dominguez III said that LANDBANK is doing its part to finance projects for the agriculture sector.

“I’m in regular contact with the executives of LANDBANK and have been assured that they are making every effort to finance projects in the agriculture sector. The size of the resources of the Bank as the main depository accounts makes it necessary for them to deploy their funds to commercial and industrial projects as agriculture projects,” Mr. Dominguez told reporters in a Viber message.

“They are also working closely with the Department of Agrarian Reform to hasten the distribution of individual land titles to the beneficiaries as a means of improving their bankability. For your information, LANDBANK also performs critical functions such as distributing funds to Pantawid Pamilya and Pantawid Pasada beneficiaries,” Mr. Dominguez added. — Reicelene Joy N. Ignacio