Application for retiring Del Castillo’s post now open

March 31, 2019 | 11:51 pm

THE JUDICIAL and Bar Council (JBC) has opened for application and recommendation the Supreme Court position to be vacated by Associate Justice Mariano C. Del Castillo, who is retiring on July 29 when he turns 70. Deadline for the applications is on May 14, 2019 at 4:30 p.m. “A recommendation or nomination filed in lieu of an application may be given due course only if the recommendee has signified his or her acceptance thereof either in the recommendation itself or in a separate document, and has submitted two complete sets of the documentary requirements,” the JBC said in its announcement. Mr. Del Castillo is among the senior associate justices in the SC, having been appointed in 2009 by former president and now House of Representatives Speaker Gloria Macapagal-Arroyo. Prior to joining the judiciary, Mr. Del Castillo practiced law in banking and worked with the Araneta Group of Companies. From 1989, he served in various municipal and regional courts, then appointed to the Court of Appeals in Aug. 2001. Mr. Del Castillo obtained his Bachelor of Arts degree in Political Science from San Beda College in 1971 and earned his Law degree from the Ateneo de Manila University in 1976. — Vann Marlo M. Villegas

Pangasinan’s month-long summer festivities start April 5

March 31, 2019 | 11:50 pm

IT’S A non-working holiday in Pangasinan on Friday, April 5, as the province celebrates its 439^th foundation day and the start of the month-long festivities leading up to Pista’s Dayat (Festival of the Sea) on May 1. One of the main activities on opening day is the launch of the Pangasinan Tourism and Trade Expo beside the Capitol Resort Hotel in Lingayen. The fair, which will run until May 3, will feature the province’s local products, food, arts and crafts, and tourism destinations.

PECO to seek reconsideration of CA’s TRO order

March 31, 2019 | 11:50 pm

PANAY ELECTRIC Company, Inc. (PECO) is preparing to file a motion for reconsideration on the Court of Appeals’ (CA) temporary restraining order (TRO) against the implementation of a Mandaluyong court order that stops MORE Electric and Power Corp. (MORE) from taking over PECO’s assets. In a statement released late Friday, PECO said, “It is unfortunate that the Court of Appeals issued a TRO restraining the RTC of Mandaluyong City in Civil Case No. R-MND-19-00571-SC from enforcing its order enjoining MORE Power from impairing PECO’s rights.” PECO also said that the CA order would not mean that MORE Power can immediately proceed to expropriate the distribution assets of PECO. “At present, there is a Motion to Suspend Proceedings pending before the RTC (regional trial court) of Iloilo City wherein we argued that the threshold issue of the constitutionality of MORE’s legislative franchise has to be resolved first as a prejudicial question by the RTC of Mandaluyong City prior to any act of expropriation on the part of MORE.” PECO, whose franchise ended in January and failed to get a renewal from Congress, said it is ready to “continue to exercise and pursue all other legal remedies to defend our rights and protect the interest of the people of Iloilo against the unwarranted attempt of MORE to confiscate and take over our assets without due process in the guise of an unlawful expropriation procedure.” — Emme Rose Santiagudo
See related story on https://goo.gl/S7ZEix

Toledo Power Company gets P46.8M in tax refund appeal

March 31, 2019 | 11:49 pm

THE COURT of Tax Appeals (CTA) ordered the Bureau of Internal Revenue (BIR) to refund the excess input value-added tax (VAT) of Toledo Power Company (TPC) for 2010 in the amount of P46.87 million. In a resolution promulgated on March 15, the CTA special second division amended its decision and partially granted the motion for partial reconsideration of TPC as the company was able to prove the excess input VAT attributable to zero-rated sales of P46.87 million. The CTA in June 2017 allowed the refund of only P3.6 million from TPC’s claim of P63.3 million. “Wherefore, premises considered, the instant Petitions for Review are partially granted. Accordingly, respondent is ordered to refund to petitioner the amount of P46,872,156.51, representing the latter’s excess input VAT for the first to fourth quarters of CY 2010 attributable to its zero-rated sales/receipts,” the CTA ruled. The decision was written by Associate Justice Juanito C. Castañeda and concurred in by Associate Justice Catherine T. Manahan. TPC, a unit of Global Business Power Corp., owns and operates two power plants in Toledo City, Cebu. — Vann Marlo M. Villegas

DAR offers to mediate after cease order vs Ayala Land-SIDECO venture in Sicogon Island

March 31, 2019 | 11:49 pm

THE DEPARTMENT of Agrarian Reform (DAR) has offered to mediate between the Federation of Sicogon Island Farmers and Fisherfolk Association (FESIFFA) and the joint venture of Sicogon Development Corp. (SIDECO) and Ayala Land Inc. (ALI) over alleged breaches of contract on the development of Sicogon Island. “The dialogue will most likely solve the problem especially if both parties are willing to enter into an agreement that will satisfy both parties in their issues and concern. It is much better that they sit down and talk about it, that’s the best way to resolve the problem,” Agrarian Reform Secretary John R. Castriciones said during a press conference in Iloilo last week. Earlier in March, Mr. Castriciones issued a cease and desist order (CDO) against SIDECO and ALI after FESIFFA filed a petition for the revocation of the DAR Conversion Order 334.64 hectares of the island.
COMPLIANCE
Ryan L. Ybañez, general manager of the ALI-led Sicogon Island Tourism Estate Corp. (SITEC), said they have already temporarily stopped the operations of two existing resorts and postponed the opening of a third. “Rallies are being held. We are allowing them to rally. We stopped because the safety of our guest is paramount. So we are observing what is going to happen, but so far it will remain closed until we have absolute certainty that our guests would be safe,” he said at the press conference. Mr. Ybañez said they are hopeful and very much open to comply with the demands of the other parties. “On the livelihood assistance, we deposited P6 million of the P38 million. We cannot deposit because they won’t accept. But, if they want it tomorrow, we can deposit it tomorrow. It’s really more of the willingness, we’re sticking to compliance and we will establish it as hard as we can. We are exploring more and we are open to give more. We want to know what the demands are,” he said. FESIFFA did not send a representatives during the press conference and supposed dialogue session. — Emme Rose S. Santiagudo

Rep. Dimaporo cleared of graft case on P5M farm program

March 31, 2019 | 11:48 pm

THE SANDIGANBAYAN Second Division dismissed the graft and malversation cases against Lanao del Norte-2^nd district Rep. Abdullah D. Dimaporo in connection with the P5-million funding for the Farm Input/Farm Implement Program (FIFIP) in Lanao del Norte. The anti-graft court ruled that the prosecution failed to prove Mr. Dimaporo’s guilt beyond reasonable doubt. Mr. Dimaporo and five other local officials were alleged to have malversed the P5-million allocation for the Lanao Foundation, Inc. (LFI), a non-government organization tasked to implement the FIFIP. “There was no proof presented that accused Dimaporo chose LFI to implement the FIFIP despite knowing that it was not allegedly capable to do so,” the court said in the resolution. It also noted that there were no evidence or witnesses presented to prove the documents had been falsified. In the same 25-page resolution, the court also “lifted and set aside” the hold departure order against Mr. Dimaporo and his co-accused, and “released” the bail bond posted. — Charmaine A. Tadalan

Cotabato urges municipal governments to help boost tourism development

March 31, 2019 | 11:48 pm

COTABATO GOVERNOR Emmylou Talino-Mendoza called on town officials to take steps in developing their respective tourism destinations, citing the success of other localities in bolstering the province’s competitiveness through increased visitor arrivals. Last year, the province was awarded by the Department of Tourism-Region 12 as the most improved local government unit in terms of tourist arrivals. One example she cited was the zipline in New Israel, Makilala, which was developed through the Department of Energy while the provincial government provided P132 million for the construction of the 4.8-kilometer road from the national highway to the site. “So far economic activities have been active in New Israel. Residents were able to install photo booths for tourists, three carinderia stalls (eateries) and 31 sari-sari stores. Because of the zipline, employment was also made available to 60 local tour guides, six security guards and 15 zipline staff,” Ms. Mendoza said during her State of the Province Address last week. Other sites that have been developed include the Pisan Caves in Kabacan, Lilongan Cave and Eco-tourism Park in Carmen, Kirungdong Eco-tourism Park in Magpet, and the Matigol Falls in Arakan, among others. Ms. Mendoza said the provincial government has allocated P92.5 million for various tourism projects from 2012 to 2018 and is ready to assist other municipalities in developing potential sites in their areas. — Maya M. Padillo

Officials: Filipino IS fighters may return home but must ‘pay the price’

March 31, 2019 | 11:47 pm

By Vince Angelo C. Ferreras
Reporter
FILIPINO terror fighters in Syria should be given the opportunity to return home but must “pay the price” of their involvement, officials and an analyst said.
Following the recent attacks by American-backed forces on the jihadist group Islamic State (IS), the Department of National Defense said it is expecting the return of some IS fighters to their respective countries.
“If they are Filipino citizens, my view is they pretty much be allowed to come back because this is their country. That being said, if the law permits, there ought to be some type of penalty when you travel to another. Well, if you were a supporter of an ideology, this is not about your mental support of an ideology, we have the freedom of speech, we have the freedom of action, there are certain freedoms that…are guaranteed by the Constitution and the government should uphold those freedoms,” said security analyst and former Federal Bureau of Investigation officer Stephen P. Cutler in a conversation with reporters on Thursday, March 28.
He added, “That being said, as a foundation on my comments, that doesn’t provide untethered, unrestricted action and if you are, if there is credible evidence that you have participated in terrorism financing, support for terrorism, you made bombs, you actually supported in some material way, killings and bombings and extortion, you have to pay the price.”
For his part, Interior Secretary Eduardo M. Año said Filipino IS fighters can come back home: “They are Filipinos and they can come back. But we’ll have to investigate their involvement and look for appropriate charges that may be filed against them pending the result of investigation.”
Meanwhile, Armed Forces of the Philippines spokesperson Brigadier-General Edgard A. Arevalo said: “Security wise, those who have been identified and have cases filed will be arrested upon their return to the country.”
Last week, presidential adviser on terrorism Benjamin Defensor said returning fighters from Syria could face charges if proven that they have committed acts of terrorism abroad.
“If they are Filipinos, you’d want to know what they have done or what is the offense and then if they created something out of their own volition to join, say a criminal activity, at their own lookout, they have to answer for their actions because there are conventions by the UN [United Nations] on terrorism,” Mr. Defensor told reporters at a forum in Makati City.
For his part, Mr. Cutler agreed that those who committed and supported terrorism should be prosecuted: “If it is illegal, then they need to be prosecuted for that and if they are found guilty in an open trial, this is where the police, the NBI [National Bureau of Investigation], and the DOJ [Department of Justice] need to be much more aggressive in protecting people’s rights and prosecuting them if they have committed illegal acts.”
Mr. Año said, “Yes, I agree with him (Mr. Defensor). Joining ISIS in Syria is the same as joining the ISIS-Maute-ASG [Abu Sayyaf Group] here.”
However, Justice Secretary Menardo I. Guevarra said charges cannot be filed against returning rebels as the crimes they committed were done abroad.
“Acts of rebellion and/or terrorism become punishable only when overt acts or elements of the offense are committed in the Philippine territory,” said Mr. Guevarra in a phone message on Saturday, March 30.
Mr. Cutler suggested that there should be a law that would forfeit a terror fighter’s citizenship.
“There’s need to be a debate in Congress about ‘Let’s make a law that if you leave the Philippines and you participate in armed combat action in another country, you have forfeited Philippine citizenship.’ And Congress needs to step up and say ‘This is what we want as national policy.’ This is something the Philippines ought to address,” he said.
Right now, the Human Security Act of 2007, which addresses issues of terrorism in the country, only discusses conflict management, addressing the roots of conflict, and the arrest and detention of suspects.
“Suspected terrorists are jailed in SICA [Special Intensive Care Area] 1 in Bicutan. Orientation and counselling are regularly conducted to mainstream the inmates and introduce deradicalization programs,” Mr. Año said.

Report on charter change to be tackled in forum

March 31, 2019 | 11:47 pm

By Arjay L. Balinbin
Reporter
POLICY experts and Congress officials are set to launch at a forum on Friday, April 5, their policy report on prospects and proposals for charter change and federalism.
The report is a product of a series of learning sessions on constitutional change and federalism held last year, from May to September, by the International Institute for Democracy and Electoral Assistance (IDEA) and the Institute for Autonomy and Governance (IAG), in partnership with the Congressional Policy and Budget Research Department (CPBRD) and the Senate Economic Planning Office (SEPO), according to a briefer by Michael Henry Ll. Yusingco of the Ateneo Policy Center and the IAG.
Ram Toledo, Communications Manager of the IAG, e-mailed a copy of the briefer to BusinessWorld last Friday, March 29.
The forum will tackle several issues from the said learning sessions regarding constitutional change and federalism in terms of governance and human rights, fiscal arrangements, and transitional processes and mechanisms, among others.
In a phone message, Mr. Toledo said the forum aims to provide analyses of “the state of the federalism agenda” of President Rodrigo R. Duterte’s administration and the “current proposals.”
Officials who are expected to attend the event are CPBRD Director-General Romulo E. M. Miral, Jr., SEPO Director-General Ronald R. Golding, and Undersecretary Jonathan E. Malaya of the Department of Interior and Local Government and the Inter-Agency Task Force on Federalism.
On governance and human rights, Mr. Yusingco said the first panel will discuss the notion of the ruling elite and how their interests might be affected by constitutional change; the failure of the 1987 Constitution to break the overconcentration of power in the presidency; whether there are smaller and more predictable reform solutions that could resolve the problems that have been identified; inter-governmental relations (IGR) which is the lifeblood of a federal system; and implications of charter change and federalism on the Filipino people, particularly on their civil and political rights.
As for the fiscal arrangements, which will be tackled by another panel, among the issues to be tackled are whether regions still have a share in the national taxes or if they will simply get block grants; the necessity of fiscal equalization mechanism under a federal set-up; whether constitutional change will address the right issues, especially infrastructure and inefficient bureaucracy; whether federalism will make Filipinos take advantage of what they have; and whether it will distribute economic growth across regions.
The transitional processes and mechanisms will be tackled by the third panel. The discussion will focus on how the transition process will be managed.
Other questions that could be discussed during the forum are: “What should the scope of constitutional change be? What substantive changes might be required to the constitution? How should the process be structured and designed to balance elite inputs and public participation? Should Congress be convened as a Constituent Assembly? How can any reform process ever be truly robust and inclusive when there is a glaring disconnect between majority of Filipinos and the national charter?”

Fiscal balance back in deficit in February despite 2019 budget delay

March 29, 2019 | 7:51 pm

A SURGE in state spending, despite delayed enactment of the P3.757-trillion national budget for 2019, fueled the fiscal deficit to grow nearly half in February, the Bureau of the Treasury reported on Friday.
In a press release, the Treasury noted that the national government’s fiscal balance reverted to a P76.4-billion deficit in February, reversing from January’s P44.5-billion surplus and increasing by 48% from the year-ago P51.7-billion gap.
FEBRUARY REVENUES
Revenues grew by a faster 13% in February, compared to January’s seven percent, to P202.1 billion from P178.5 billion a year ago, as tax collections increased by 12% (compared to eight percent in January) to P182.6 billion from P162.9 billion.
February saw the Bureau of Internal Revenue (BIR) — the government’s main tax collector — grow collections by 16% to P135.7 billion from P116.6 billion a year ago, while the Bureau of Customs raked in a percent more at P44.2 bilion from P43.7 billion.
Non-tax revenues — including taxes and duties state agencies pay on paper for transactions like importations — grew by a fourth to P19.5 billion from P15.7 billion in the same comparative months.
FEBRUARY DISBURSEMENTS
National government expenditures increased by 21% to P278.5 billion in February from P230.2 billion a year ago, with disbursements other than interest payments — a category that includes spending for infrastructure — growing by a fourth to P253.2 billion from P204.1 billion.
That compared to January’s drops of seven percent in total national government expenditures and of 10% in disbursements other than interest payments.
Interest payments dropped three percent to P25.3 billion from P26.1 billion.
YEAR-TO-DATE PERFORMANCE
February’s deficit increase coupled with January’s fourfold surplus surge resulted in a 23% reduction in fiscal gap to P31.8 billion in this year’s first two months from P41.5 billion a year ago.
February’s revenues made total collections grow by a tenth to P458.8 billion in this year’s first two months from P417.4 billion a year ago, with tax revenues climbing also by a tenth to P417.5 billion from P381 billion.
BIR collections went up a tenth to P320.8 billion from P292.3 billion, while Customs’ take rose by nine percent to P92.6 billion from 84.5 billion in the same comparative two-month periods.
Non-tax revenues grew 13% to P41.3 billion from P36.5 billion.
The first two months also saw state expenditures grow seven percent to P490.7 billion from P458.9 billion, with interest payments edging up by two percent to P71.2 billion from P69.6 billion and “other” spending going up eight percent to P419.4 billion from P389.3 billion.
The Finance department, however, said the government failed to spend a programmed P43.7 billion in the first two months due to a three-month delay in enacting the P3.757-trillion national budget.
The bicameral dispute over the 2019 national budget — which was supposed to have been enacted by end-2018 — ended on Tuesday when Senate President Vicente C. Sotto III finally signed and transmitted it to the Office of the President on Tuesday, even as he formally noted the Senate’s reservations about P95-billion post-ratification fund allocations made by the House of Representatives.
The government had been banking on front-loading infrastructure work this quarter, ahead of the 45-day ban on public works starting March 29 ahead of the May 13 midterm elections and weather disturbances next semester. The reenacted national budget left new projects unfunded.
In a statement sent to reporters on Friday, Finance Assistant Secretary Antonio Joselito G. Lambino II said the government was unable to spend some P740.7 million a day between January and February for a total of P43.7 billion.
This consisted of “idle funds that the Duterte administration could have otherwise spent on priority programs to sustain-and boost-the growth momentum and expand social protection initiatives for the poor,” said Mr. Lambino.
“The No. 1 casualty of this forced under-spending is President (Rodrigo R.) Duterte’s signature ‘Build, Build, Build’ program, as it has barred the government from front-loading investments in big-ticket infrastructure projects during the best time of the year to do construction, and for projects that have the highest multiplier effect on the domestic economy.” Mr. Lambino explained.
“Our economic managers have expressed concern over the negative impact of the budget delay because we are already past the best time of the year to front-load the implementation of the ‘Build, Build, Build’ projects.”
The inter-agency Development Budget Coordination Committee earlier this month slashed its 2019 gross domestic product growth target to 6-7% from 7-8% originally as the government operates on a reenacted budget, while that National Economic and Development Authority had separately estimated that a reenacted budget until April could drag full-year economic expansion to 6.1-6.3%, far from the state’s original target, roughly matching 2018’s 6.2% pace.
“Given that it would take weeks for Malacañang to review the Congress-submitted GAB [general appropriations bill], for the President to sign it and for the concerned agencies to implement their respective projects, we can expect the 2019 GAA [general appropriations act] to be fully on stream on or before the middle of this year yet,” Mr. Lambino added. — Karl Angelo N. Vidal

Inflation expected to have slowed further this month

March 29, 2019 | 7:50 pm

THE OVERALL INCREASE in prices of widely used goods likely eased further this month as lower prices of rice and other produce offset increases of fuel and electricity costs, the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research announced on Friday.
The central bank unit said March inflation, which will be reported on April 5, likely clocked in at 3.1-3.9%, compared to February’s 3.8%, March 2017’s 4.3%, as well as BSP’s a three percent full-year forecast and 2-4% target range for 2019.
The lower end of the estimate, if realized, would be the slowest pace in 15 months.
It would also mark the fifth consecutive month of slowdown from a nine-year-high 6.7% recorded in September and October last year.
“Higher domestic oil prices and upward adjustment in electricity rates, provide upside price pressures to inflation for the month,” the BSP said.
Manila Electric Co. — the country’s biggest electricity distributor — announced earlier this month that it will increase its overall rate by P0.0894 per kilowatt-hour (/kWh) to P10.4961/kWh, while the Energy department’s oil price monitor as of March 26 showed year-to-date increases of P6.75 per liter for gasoline, P4.75%/liter for diesel and P3.55/liter for kerosene.
“Going forward, the BSP will continue to closely monitor evolving inflation dynamics and ensure that monetary policy stance remains appropriate to support BSP’s price stability objectives,” the central bank’s Economic Research department said in a brief note e-mailed to journalists. — KANV

Rappler chief arrested anew, posts bail

March 29, 2019 | 7:43 pm

By Vann Marlo M. Villegas, Reporter
ONLINE news site Rappler CEO and executive editor Maria Angelita Ressa was released Friday upon posting P90,000 bail, following her latest arrest upon arrival at the Ninoy Aquino International Airport in connection with charges of violation of the Anti-Dummy Law.
Judge Maria Cheryl B. Laqui-Ceguera of Pasig City Regional Trial Court (RTC) Branch 265 ordered Ms. Ressa’s release and scheduled her arraignment on April 10 at 8:30 a.m.
Ms. Ressa was first arrested on Feb. 13, in connection with her cyber libel case, but soon after posted bail.
Police served the latest arrest warrant issued by the Pasig court as soon as Ms. Ressa arrived at the airport from abroad.
She has been charged with violation of the Anti-Dummy Law in connection with Philippine Depositary Receipts (PDRs) issued in 2015 to investing firm Omidyar Network Fund.
In February last year, Omidyar Network donated its PDRs valued at $1.5 million to Rappler staff following the SEC decision in January 2018 revoking the news site’s certificate of incorporation and declaring void the PDRs for being a “fraudulent transaction.”
Charged along with Ms. Ressa are Rappler Managing Editor Glenda M. Gloria and 2016 directors Manuel I. Ayala, Nico Jose Nolledo, James C. Bitanga, Felicia Atienza, and James Velasquez. They are all out on bail worth P90,000 each.
Information filed by the Pasig City Prosecutor’s Office said they “willfully, unlawfully, and feloniously” entered into a contract with Omidyar, “a foreign corporation, which is not allowed/proscribed by the Constitution.”
In a statement, Rappler said the issuing of arrest warrants against journalists “has a chilling effect on the freedom of speech, on business, and innovation.”
“This pattern of harassment against Rappler that started in January 2018, when the Securities and Exchange Commission issued an order revoking its license, has not stopped,” Rappler said.
“Initiated by the justice department, this latest case proves abuse of state power and the bending of the law to intimidate and harass critics,” the online news site added. “But journalists doing their jobs will not be intimidated. We will continue to #HoldTheLine.”
For his part, Presidential Spokesperson Salvador S. Panelo said in a press conference, “She is charged of a crime, and there is a determination of probable cause, hence a warrant of arrest has been issued. She should concentrate on defending herself in court. She cannot be always using the freedom of the press as an excuse to attack the administration.”
The Court of Appeals, in a resolution in February, denied Rappler’s motion for partial reconsideration and remanded the case to the SEC, directing it to evaluate the legal effects of the donation of PDRs to Rappler’s staff.