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Piñol out of Agri, but not out of gov’t

President Rodrigo R. Duterte on Friday confirmed that Agriculture Secretary Emmanuel F. Piñol is leaving his Cabinet post. But this does not mean he is out of government. 

The President said he wants a leader “in the likes” of Mr. Piñol to oversee the economic development efforts in Mindanao.

Mr. Duterte made his remarks during the inauguration of the Chen Yi Agventures Rice Processing Complex in Alangalang, Leyte on Friday evening.

“I’d like to just also mention that… Secretary Piñol will be leaving the agriculture portfolio. Hirap ako sa (I’m having a hard time with) Mindanao because we have created a new political entity there, the… BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) for that matter as it is known today,” the President said.

He added, “There seems to be a lag na nakikita ko (that I see) , there’s not much activity in really trying to devolve all — all powers of the national government relevant to the existence of BARMM. They seem to be… I am not saying that they are not moving. But ever so slow that I would need a point man there in the likes of Secretary Piñol.”

He then mentioned the Mindanao Development Authority (MinDA), which he described as “a special entity geared towards the full development of Mindanao.”

“With the changing political horizon there, we have to do what we promised to the Moro people,” he said further.

Senator-elect Christopher Lawrence T. Go announced on June 27 that Mr. Piñol had offered to resign as Agriculture secretary and suggested he be transferred to Minda. — Arjay L. Balinbin

Inflation slowest in almost two years in June

By Christine Joyce S. Castañeda, Senior Researcher

INFLATION eased in June to post its slowest reading in almost two years, the Philippine Statistics Authority (PSA) reported on Friday, giving more room for the central bank to continue loosening monetary policy.

Preliminary data from the PSA showed headline inflation at 2.7% last month, down from 3.2% in May and 5.2% in June 2018. It was also the slowest since the 2.6% logged in August 2017.

The June result fell within the Bangko Sentral ng Pilipinas’ (BSP) 2.2%-3.0% estimate for the month and was lower than the 2.9% median in BusinessWorld’s poll of 12 economists conducted late last week.

Year to date, inflation averaged 3.4%, past the midpoint of the BSP’s 2-4% target range though still above the 2.9% full-year forecast average.

Core inflation — which strips volatile food and energy items in the consumer basket — was 3.3% last month, slower than May’s 3.5% and 4.3% in the same period last year.

“We continue to experience the effects of the administrative measures the government had set in motion starting late last year. Further, the implementation of the Rice Tariffication Law (RTL) allowed the entry of ample imported rice into the country that helped bring rice prices down,” the National Economic and Development Authority (NEDA) said in a statement, referring to Republic Act No. 11203 which replaced quantitative restrictions on rice with regular tariffs and liberalized importation, aimed to slash retail prices of the staple.

Economists attributed the better-than-expected inflation print to the slower increase in the prices of food and non-alcoholic beverages.

“The heavily-weighted food and non-alcoholic beverages index has again led the way in slower annual growth. This softness can be attributed to the continuing decline in global oil prices in general,” UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said in an e-mail.

“In addition, government policies addressing supply-side issues last year are seemingly working to soften price levels of food and other basic commodities,” he added.

Similarly, ING Bank NV-Manila senior economist Nicholas Antonio T. Mapa noted in a separate e-mail the easing in food inflation. “Inflation for the index heavy food subcomponent was the main driver for the slowdown just as the 2018 inflation spike episode, with food inflation peaking at 9.7%. Stable food supply, as well as the RTL, helped in improving supply and pushing down prices,” he said.

The food-alone index likewise eased to 2.6% versus the previous month’s 3.2% and 5.8% a year ago as slowdowns were observed in most food groups. In particular, rice — which accounts for 10% of the average household’s consumer basket — saw its annual rate decline further by 1.7% in June from a 0.7% contraction in May.

ING’s Mr. Mapa was of the same view, adding that other food items are also seeing disinflation with imports of food items increasing from last year “to make up for possibly poor harvest due to the drawn-out El Niño episode.”

Alex Holmes, Asia economist at Capital Economics, pointed out in a research note the “broad-based easing in price pressures,” citing the slowdown in the transport index as the “largest driver of the drop.”

Slower annual increments were observed in the food and non-alcoholic beverages at 2.7% in June from 3.4% in May. Other commodity groups that saw decelerations were housing, water, electricity, gas and other fuels (3% from 3.3%); alcoholic beverages and tobacco (9.3% from 9.5%); transport (1.6% from 3.5%); furnishing, household equipment and routine maintenance of the house (3.1% from 3.2%); and communication (0.3% from 0.4%).

Contributing further to the slowdown was the faster decline seen in the education index at 4.5% from the previous month’s -3.8%.

In Metro Manila, inflation slowed to 3% last month from 3.4% in May while overall price hikes in areas outside the National Capital Region (NCR) eased to 2.6% from 3.1%.

Aside from NCR, six other regions recorded rates faster than the 2.7% national average, namely: MIMAROPA Region (5.2%), Northern Mindanao (3.7%), SOCCSKSARGEN (3.3%), Davao Region (3.2%), Bicol Region (3%), and Central Luzon (2.9%).

OUTLOOK
In an economic bulletin sent to reporters, Finance Undersecretary and Chief Economist Gil S. Beltran noted that on a month-on-month basis, inflation in food items “is at most 0.5 percentage points” with those of non-food items being negligible.

“For the rest of the year, below-4% inflation can be achieved if month-on-month price increase is at most 0.5 percentage points,” he said.

Meanwhile, ING Bank’s Mr. Mapa expects inflation to continue slowing in the coming months as supply conditions “remain normalized.”

“Oil prices remain softer for the most part of this year but will likely be higher year on year by [the fourth quarter] should prices hold at current levels. Meanwhile, the negative base effects from tertiary education should wash out by next month…” he said.

“[O]verall, we should see inflation [to be] well-behaved in 2019 and 2020 for as long as supply side measures are in place and given BSP’s ability to safeguard against demand-side pressures by way of macro-prudential measures,” Mr. Mapa added.

UnionBank’s Mr. Asuncion shared this outlook, adding that they have downgraded their inflation forecast to three percent for this year from 3.2% previously.

“The downgrade comes from the expectation that global oil prices are going to continue to decline due to potential global economic woes outweighing the impact of geopolitical events that may affect supplies in the medium term,” Mr. Asuncion explained.

In a note e-mailed to reporters, HSBC Global Research economist Noelan Arbis sees inflation staying below the 3% mark for most of the second half of the year on “favorable base effects” and “benign demand-side pressures,” which should provide the central bank with further room to ease monetary policy.

“We see no significant risks to inflation in the months ahead, as the momentum of both headline and core prices have largely stabilized and are moving well within their historical trend,” Mr. Arbis said, expecting two 25-basis point rate cuts in the second half of the year with the first likely to be made in August.

For Capital Economics’ Mr. Holmes, the June inflation reading is likely to be a “green light” for the central bank to ease monetary policy.

“Barring any hints to contrary, a cut is likely at the Bank’s next meeting in August and with inflation set to fall further, we expect more easing thereafter, taking the policy rate from 4.5% now to 3.75% by early 2020,” Mr. Holmes said.

In a social media post, BSP Governor Benjamin E. Diokno said the 2.7% June inflation rate “is consistent with the BSP’s prevailing assessment” that inflation will firmly settle within the BSP’s 2-4% target range for 2019 and 2020.

“Looking ahead, the BSP will remain watchful of evolving price trends to ensure that the monetary policy stance remains consistent with the BSP’s price stability objective while being supportive of economic growth,” Mr. Diokno said separately in a central bank press release.

The BSP’s Monetary Board is scheduled to review policy on Aug. 8, a few hours after the PSA reports second-quarter gross domestic product growth.

Factory output continues to decline

By Mark T. Amoguis, Senior Researcher

FACTORY OUTPUT posted its sixth consecutive month of decline in May albeit at a slower pace, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries, showed factory output — as measured by the Volume of Production index — contracting by 4% year on year in May versus the revised 14.3% decline in April and the 13% growth in May 2018.

Year to date, the decline in factory output averaged 7.6% compared to the 14.2% growth average in 2018’s comparable five months.

Six out of 20 subsectors registered declines in May, led by double-digit decreases in furniture and fixtures (-35%) and food manufacturing (-14%). Other sectors that exhibited declines were miscellaneous manufactures (-8.5%), non-metallic mineral products (-7.1%), leather products (-6.4%), and basic metals (-5.9%).

A similar trend was observed in factory output as measured by the Value of Production index, which declined for the fourth straight month by 2.1%.

In comparison, Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) was at 50.9, the weakest reading since July 2018 although it signaled a “marginal” improvement from the preceding month.

A reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.

Despite these declines in the volume and value of factory output, the National Economic and Development Authority (NEDA) noted in a statement that this was a “slight improvement” compared to the previous month’s performance.

“Despite these negative figures, we note a positive development for this month’s manufacturing performance upon seeing that the number of gainers in both indices has outpaced the losers. For one, 14 subsectors trended upwards trend compared to last month’s 10 subsectors,” Socioeconomic Planning Secretary Ernesto M. Pernia, who also heads NEDA as director-general, was quoted in the statement as saying.

Security Bank Corp. economist Robert Dan J. Roces attributed these declines to “supply issues” that affected the cost of essential inputs such as El Niño and “volatile power plus water rates.”

Mr. Roces added that export-oriented manufacturers were more affected by “external headwinds due to subdued global demand and logistical difficulties brought about by the trade war,” referring to the ongoing tensions between the US and China.

Rizal Commercial Banking Corp. (RCBC) economist Michael L. Ricafort was of the same opinion, adding that the easing trend in both inflation and interest rates since the start of the year “may have caused some manufacturers to wait for both prices and borrowing/financing rates to go down further before purchasing and borrowing more aggressively…”

“This is consistent with the slower growth in banks loans in the early part of 2019 that may have reflected slower growth in borrowings to finance new investments and expansion projects, including those in the manufacturing sector,” Mr. Ricafort added.

REBOUND EXPECTED
Economists expect manufacturing to bounce back in the coming months amid easing inflation and strong domestic demand.

“Moving forward, we expect manufacturing to recover on the back of better local household consumption with easing inflation, plus higher government spending on infrastructure as it ramps up its projects. A resolution of the trade war will also provide better conditions to the sector,” Security Bank’s Mr. Roces said.

Similarly, RCBC’s Mr. Ricafort expected the manufacturing production to pick up in the latter months of the year on account of the continued decline in inflation and interest rates that would encourage manufacturers to borrow more to finance new investment projects, as well as increased government spending that would stimulate production in related manufacturing industries, and easing base effects.

Mr. Pernia has noted the need to boost the productivity of the agriculture sector as well as strengthening supply chain linkages between local and foreign producers to increase food production.

“Food products, the largest subsector, has significant impact on the overall performance of the manufacturing sector,” Mr. Pernia said.

The volume of production in food manufacturing has been registering declines for ten straight months or since August 2018. Of those ten months, seven showed double-digit declines.

Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.4%. Eleven of the 20 sectors registered capacity utilization rates of at least 80%.

Gov’t ready to face UN inquiry into drug war — Justice Secretary

JUSTICE Secretary Menardo I. Guevarra said on Friday that the Philippine government is ready should the United Nations start a probe into the administration’s war on drugs, this after Reuters reported that Iceland has submitted a draft resolution calling for an investigation into the alleged killings related to the drug war.

On Friday, Mr. Guevarra told reporters, “In any event, our government is prepared to face any inquiry if the same becomes necessary to disabuse the minds of those who rely on or give undue credence to selective, if not biased, second-hand information.”

The Palace, meanwhile, released a statement defending the war on drugs and decrying any attempts by other countries to “interfere” with the manner the government “maintains peace and order.”

Reuters reported on Friday that Iceland, backed by more than two dozen mostly european counties, has sent a draft resolution before the Human Rights Council. The resolution will be voted upon by the Geneva Forum before it ends its sessions next week.

It has been estimated that at least 27,000 people have been killed since President Rodrigo R. Duterte declared his war on drugs in 2016, although his administration insists only 5,000 drug suspects have been slain after fighting back against policemen.

The Justice Secretary stressed that other organizations and countries should refrain from urging the Philippines to “prevent” killings related to the drug war, adding the Philippine government does not condone any killings.

“With all due respect, our government need not be told by anyone, including the UN or any of its agencies, to stop so-called ‘extrajudicial executions’ in our war on drugs because it has never been the policy of the government to tolerate the killing of illegal drug suspects who submit themselves peacefully to our law enforcement authorities,” he said.

Salvador S. Panelo, Chief Presidential Legal Counsel and Presidential Spokesperson, released a statement saying, “No government of any nation knows the actual and real state of our country’s domestic affairs better than this Government. Any attempt therefore by any foreign country to interfere with how this Government maintains its peace and order, not only is an affront to their intellect but an interference with the country’s sovereignty as well.”

He went on to tell “those foreign governments which have been misled by false news and untruthful narratives about the President’s war against illegal narcotics, we reiterate that drug-related deaths arising therefrom are neither state-initiated nor sponsored.

“Nevertheless, we reiterate that no one is above the law in our country. Abusive police officers are not tolerated by this Administration and must face the corresponding punishment of their unlawful actions,” he said, noting that “we have been urging those who claim to be victims of police abuse to file cases so their respective grievances can be redressed by this Government accordingly. Instead of collaborating with personalities belonging to the opposition, who are without authority to resolve their complaints and will only politicize their sufferings, we ask them to come forward so we can give them the proper assistance to attain the justice which they seek.” — Gillian M. Cortez

Paolo Duterte forms coalition “to unite” the House

AS THE battle for House speakership drags on with more players joining the fray, Presidential son and Davao City 1st district Rep. Paolo Z. Duterte has formed a coalition in the hope of uniting the House.

The coalition is also warning Cabinet members against meddling in the House speakership race.

“As members of the House of Representatives, Hugpong ng Pagbabago and Hugpong sa Tawong Lungsod hope to unite the House,” said the group, which calls itself the Duterte Coalition, in a statement released on Friday, July 5.

Aside from Mr. Duterte, the other members of the group are Davao City Reps. Isidro Ungab and Vincent J. Garcia, Davao Oriental Rep. Corazon N. Malanyaon, Compostela Valley Rep. Manuel E. Zamora, Davao Occidental Rep. Lorna P. Bautista, Dumper Philippines Taxi Drivers Association Party-list Rep. Claudine Bautista, and Marino Party-list Reps. Sandro Gonzales and Anton Lopez.

“The Duterte Coalition is a strategic partnership of dynamic public servants who are committed to institute governance and development reforms that are necessary for the Philippines to secure its rightful place in the world stage of nations, particularly in the Southeast Asian region,” says their joint statement.

All this as the new coalition warned Cabinet members against meddling in the House speakership race.

“It has come to our attention that certain Presidential Cabinet members have their bet for Speaker. Everyone should note that, Cabinet members serve only on the basis of the trust and confidence of the President and should not participate in the selection of the Speaker,” said the group.

“Let us draw the line to define the independence of the Executive and the Legislative branches of the government,” it noted, adding that, “Congressmen and Congresswomen are elected and serve a mandate with an authority direct from the people. These lawmakers are the only rightful electorate for their leader.”

As part of this call to unity, the Duterte Coalition said “A special call to be a partner is extended to Congressmen Ferdinand Martin Romualdez, Alan Peter Cayetano, and Lord Allan Jay Velasco,” all of whom have been said to have thrown their hats in the speakership race.

Leyte Rep. Ferdinand Martin G. Romualdez said that he agrees with the position of the coalition.

“I fully subscribe to the position of the Duterte Coalition that Congressmen be given the freedom to elect their own leaders in the House of Representatives based on the dictates of their conscience and in accordance with the wishes of their constituents,” said Mr. Romualdez in a statement.

For his part, Marinduque Rep. Lord Allan Jay Q. Velasco stated: “I am one with the call and aspirations of the newly formed coalition and implore my fellow lawmakers in Congress to set aside their personal ambitions and agenda and join the Duterte Coalition so together we can build a House of Representatives that is united and stronger, a House that truly represents the people.”

Meanwhile, majority party Partido Demokratiko ng Pilipino-Lakas ng Bayan President Aquilino Pimentel III welcomed the Duterte Coalition’s call to unite the House.

“We welcome any effort to ‘unite’ the members of the House. The PDP has been backing and will continue to back the bids for House Speaker of its very qualified nominees and for as long as we have a party member as a serious contender for House Speaker we will continue to call for party discipline and unity in supporting our party nominee,” said Mr. Pimentel in a message to reporters on Viber. — Vince Angelo C. Ferreras

Jeremiah Belgica to head Anti-Red Tape Authority

JEREMIAH B. BELGICA — WWW.FACEBOOK.COM/MYBELGICA

PRESIDENT Rodrigo R. Duterte has appointed Jeremiah B. Belgica as director general of the Anti-Red Tape Authority (ARTA), Malacañang said on Friday.

The anti-red tape czar, who is the only official who can issue the implementing rules and regulations (IRR) of the Ease of Doing Business Law, was officially appointed on Wednesday, more than a year after Mr. Duterte signed the law in May 2018.

According to a list of Presidential appointees the Palace released to reporters on Friday, Mr. Duterte also appointed five new officials of the Department of Information and Communications Technology (DICT), and Greg L. Pineda to be Assistant Director-General of the National Economic and Development Authority (NEDA).

Mr. Belgica is joining his brother, Presidential Anti-Corruption Commission (PACC) Commissioner and Spokesperson Greco B. Belgica, and his father, Presidential Adviser for Religious Affairs Grepor “Butch” Belgica, in the Duterte administration.

In a phone message to BusinessWorld, the PACC spokesperson said of his brother: “Yes… Atty. Jeremiah Belgica is my youngest brother. He has been practicing law for 10 years and is the senior partner of his law office.”

OTHER OFFICIALS
A day after DICT Secretary Gregorio B. Honasan II and Undersecretary Eliseo M. Rio, Jr. assumed office, Mr. Duterte appointed Jose Carlos P. Reyes as Director IV, Jose Arturo C. De Castro as Undersecretary, Emmanuel Rey D.R. Caintic as Assistant Secretary, Vicente L. Cejoco as Assistant Secretary, and Eleazar H. Almabis as Undersecretary.

Mr. Honasan said that during the Cabinet meeting last Monday, Mr. Duterte had given him authority to make changes in the composition of his department.

Other newly-appointed officials included in Malacañang’s list are Governor Angelica M. Cayas of the Board of Investments, Director IV Mita Chuchi G. Lim of the Department of Social Welfare and Development, Director IV Ricardo M. Oñate, Jr. of the Department of Agriculture, Undersecretary Arnulfo R. Pajarillo and Assistant Secretary David B. Diciano of the Office of the Presidential Adviser on the Peace Process, and Directors III Arecio A. Casing, Jr. and Cynthia A. Villena of NEDA. — Arjay L. Balinbin

Bill filed raising teachers’ salaries

SENATOR Sherwin T. Gatchalian filed a bill that aims to raise the salary of public school teachers to be at par with the ASEAN average.

In a statement released on Friday, the senator said that he had filed Senate Bill No. 178 which aims to raise the salaries of Teacher I, Teacher II, and Teacher III in public schools so they are at par with teachers’ salaries in the ASEAN region.

“We compared the salaries of teachers from the Philippines, Brunei, Indonesia, Malaysia, Singapore, Thailand, and Vietnam, and based on our research, among these seven member-nations of the ASEAN, we are third to the last in terms of annual salaries of teachers — above only Malaysia and Vietnam and below the ASEAN average at that,” Mr. Gatchalian said.

He noted that the annual salary of public school teachers, including their benefits, on average is $18,160 or almost P930,000 while the ASEAN 7 average is $27,742 or almost P1.5 million.

“If our bill becomes law, it would increase the average annual teachers’ salary in the Philippines to $21,547, closer to the ASEAN 7 average,” Mr. Gatchalian said.

The Bill will increase the following positions’ salaries: Teacher I from P20,754 to P25,232; Teacher II from P22,938 to P27,755; and Teacher III from P25,232 to P30,531.

Using data from the Department of Education (DepEd), the Senator said that DepEd has 889,700 employees, of which 83% are Teachers I, II, and III. — Gillian M. Cortez

Fishers group vows to file impeachment case vs Duterte

DESPITE President Rodrigo R. Duterte’s threat to jail anyone who files an impeachment case against him, fishermen’s group Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Friday vowed to pursue his impeachment for “treason and violating the Constitution” for allowing Chinese nationals to exploit marine resources in the country’s exclusive economic zone (EEZ).

The group trooped to Mendiola in Manila on Friday to call for the impeachment of Mr. Duterte.

In a statement, Pamalakaya National Chairperson Fernando L. Hicap said: “[Mr.] Duterte is culpable of treason and violating the constitution for allowing China to exploit our marine territory which is exclusive for the Filipino people. His questionable deals with China also violate the fishing rights of our fishermen in the West Philippine Sea. The longer he stays in power, the longer our fishers will suffer and fish stocks will be jeopardized.”

Mr. Duterte had earlier warned his critics that they would be arrested should they move to impeach him over his approach to West Philippine Sea issues.

The fisherfolk group said it is “unperturbed” by the President’s threat. “With the violations in the constitution that the President has committed, he is the one that should be jailed,” it noted.

Mr. Hicap, who was a former representative of the Anakpawis Party-list, further said: “[Mr.] Duterte is mistaken if he thinks that his jail threat will silence and stop us from pursuing his impeachment; he is the one that should be jailed in the first place over the multiple crimes he has committed against the Filipino people and the constitution.”

He stressed that the West Philippine Sea “is ours and ours alone.”

“We vow to protect what is rightfully ours whatever it takes; and this includes removing the puppet commander in chief in power who is the primary culprit behind the complete takeover of our sovereignty by China,” he added.

Sought for comment, Presidential Spokesperson Salvador S. Panelo released a statement saying that “any Filipino citizen can file an impeachment case against a sitting President. The Office of the President can not and will not dissuade those individuals and groups, including left-leaning ones, to initiate such an action before the Congress, as the same is recognized by our Constitution.”

He noted however that an impeachment “not only is misplaced, it is absolutely baseless in fact and in law,” saying the President has been loyal to his oath under the Constitution.

The Palace, he said, “is therefore confident that no impeachment complaint against PRRD would prosper. As a friendly advice, we suggest that these people first conduct a reality check to avoid embarrassment.” — Arjay L. Balinbin

Cebu gov’t to file cases vs former Mayor Osmeña for stripping office bare

THE Department of Interior and Local Government (DILG) said the local government of Cebu City will file cases against former mayor Tomas R. Osmeña for stripping bare his office as his term ended last week.

DILG Undersecretary Jonathan E. Malaya said that the local government of Cebu would file a case for theft and graft.

“We are currently coordinating with the city government of Cebu. According to the city legal officer, Stephanie Claros, her office is prepared to file a case against the former mayor before the office of the Ombudsman….. They are planning to file cases in violation of Article 308 of the Revised Penal Code for Theft, and Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt practices act against former mayor Tommy Osmena,” said Mr. Malaya at a press briefing on Friday, July 5.

Mr. Malaya also said that officers and 32 workers of Dakay Construction and Development Corp., which had dismantled the office, will also be charged.

Aside from office furniture, shelves, tiles, light and bathroom fixtures, partitions and doors had been removed.

The DILG will also make a separate investigation into the case of the former Cebu mayor, said Mr. Malaya.

“On the part of DILG, Secretary Ano has also directed our legal division… to likewise complete the investigation, to determine the facts of the case,” he said. “We have decided to file legal action against mayor, but I cannot announce right now kung ano ’yung mga ’yun (what they are) because of due process also.”

The DILG official noted that Mr. Osmeña could have just asked for a reimbursement if he had used his own money to renovate his office.

“Then the proper procedure to it is magpa-reimburse siya sa cost na ’yun (he should ask for a reimbursement for the cost incurred). Because the movable objects can be taken home, but the immovable objects… hindi mo na maiuuwi sa bahay yun (you cannot bring them home)… Since siya naman ’yung (he is the) mayor, it would have been very easy for him to [get] reimburse,” said Mr. Malaya. — Vince Angelo C. Ferreras

PCOO blames COA regulations for slow uptake of federalism funds

REPLYING to the demand letter sent by the Department of Interior and Local Government (DILG) regarding the failure of the Presidential Communications Operations Office (PCOO) to submit progress reports on the P10-million information campaign drive on federalism, PCOO Assistant Secretary Marie Banaag turned the tables on the Commission on Audit (COA), saying it was the COA’s own guidelines that slowed the transfer of funds.

She explained that the COA Report only noted the liquidation of funds as of the end of December 2018, and said that the remaining funds are currently being used by the PCOO’s attached agencies like the Philippine Information Agency, the Philippine Broadcasting Service, and PTV 4.

“In May of this year, PCOO have submitted progress and liquidation reports for expenses and accomplishments in 2018 amounting to P1.5M to the DILG,” she said in a statement on Friday, July 5.

Ms. Banaag explained that there was some delay in the downloading of funds to the attached agencies due to the need for compliance with COA guidelines

“Since we have to comply with COA Guidelines insofar as the transfer of funds from PCOO to our line agencies, we could not legally transfer the funds at that time without the necessary attachments,” she said.

Meanwhile, DILG Undersecretary Jonathan E. Malaya said that they are closely monitoring the PCOO’s projects.

“Since all of these activities are ongoing and will last until the end of the year, the submission of liquidation reports will be after the completion of all activities as per revised Memorandum of Agreement with the Presidential Communications Operations Office (PCOO),” said Mr. Malaya in a statement. — Vince Angelo C. Ferreras

Kapa officials snub DoJ probe

OFFICIALS from Kapa-Community International Ministry, Inc. (Kapa) failed to show up on Friday in the Department of Justice’s(DoJ) first preliminary probe on the alleged Ponzi scam spearheaded by the organization on its members.

On Friday, Kapa founder and president Joel A. Apolinario and seven of his officials did not appear at the preliminary investigation on the Securities and Exchange Commission’s (SEC) complaint against Kapa for engaging in an investment scheme that violates Republic Act No. 8799 or the Securities Regulations Code.

Kapa was supposed to file a counter affidavit before the DOJ panel of prosecutors, chaired by Assistant State Prosecutor Zenamar Machacon-Caparros, on Friday. Subpoenas had already been sent to all the accused to show up for Friday’s hearing.

Among those accused by the SEC are Mr. Apolinario and his wife and Corporate Secretary Reyna Apolinario, Kapa executives Margie A. Danao, Catherine Evangelista, Rene Catubigan, Marisol M. Diaz, Adelfa Fernandico, and Moises Mopia.

Justice Undersecretary Markk L. Perete said that the accused may show up in the next hearing.

“They have another opportunity on the 15th,” Mr. Perete said in a mobile message to BusinessWorld on Friday.

On June 17, the SEC filed a complaint against Kapa for luring the public to donate at least P10,000 to the organization with the promise that this would be returned with 30% interest monthly. On June 4, the SEC petitioned the Court of Appeals (CA) to freeze the assets of Kapa.

Earlier this week, Davao City Regional Trial Court Branch 16 issued a precautionary hold departure order against the accused Kapa officials, barring them from leaving the country while the case is ongoing. — GMC

Sandiganbayan to await lifting of TRO before continuing with SAF 44 case

THE Sandiganbayan Fourth Division will wait until the Supreme Court lifts the temporary restraining order (TRO) on the graft and usurpation cases against former President Benigno C. Aquino III before it can hear Ombudsman Samuel R. Martires’ motion to withdraw the cases.

The cases revolve around the former president’s role in the deaths of 44 special action force (SAF) personnel in the 2015 Mamasapano Clash.

Sandiganbayan Associate Justice Alex Quiroz made the call on Friday, July 5. “We will have to await the Supreme Court order,” said Mr. Quiroz.

Last year, the SC’s First Division issued a TRO on court proceedings on the graft and usurpation of official function case against Mr. Aquino, former Philippine National Police (PNP) chief Alan Purisima, and former PNP-Special Action Force director Getulio P. Napeñas, Jr.

The petitioners wanted the Ombudsman to file homicide charges against Mr. Aquino, Mr. Purisima, and Mr. Napeñas.

However, Ombudsman Samuel R. Martires said that former president could not be charged for usurpation of power as he was the chief executive.

“The President cannot be charged for inducing something. He can call any official,” said Mr. Martires.

In a later interview, the Ombudsman added: “Presidente ng Pilipinas ’yun…. So paanong ’yung Presidente ay magyu-usurp ng powers ng kahit police? Siya ang commander-in-chief.” (He is the President of the Philippines… So how can he usurp his powers over the police? He is the commander-in-chief.)

The Office of the Ombudsman moved for the withdrawal of graft and usurpation of authority cases filed against the former president at the Sandiganbayan. — Vince Angelo C. Ferreras

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