Duterte suggests multi term-sharing for speaker’s seat

July 2, 2019 | 8:49 pm

DAVAO CITY 1^st District Rep. Paolo Z. Duterte has expressed his interest for the House speakership under a term-sharing arrangement involving several congressmen.

“Moapil na ko pagka-speaker (I will join the speakership race),” Mr. Duterte, a son of President Rodrigo R. Duterte, said in a statement.

“The house is divided, I might be able to help unite it. Pareho lang kaming binoto ng mga tao ah (We were all elected by the people). Kung (If it’s) term sharing, term sharing na kaming lahat (for everyone).”

He proposed that the speaker’s term be split among chosen representatives from Luzon, Visayas, Mindanao and party-list blocs.

“I will ask the Visayas bloc to elect their speaker for their term share, and so with the Mindanao bloc and the party-list coalition,” said Mr. Duterte.

He added, “We are not talking about two persons here. We are talking about our beloved country. It is not about speakership alone, but who is the right person to unite congress and I hope those running for the speakership stop influencing the cabinet.”

Last May, President Rodrigo R. Duterte said that he would “resign” if his eldest son will vie for the speakership post.

However, Presidential Spokesperson Salvador S. Panelo on Tuesday downplayed the younger Duterte’s statement.

“Plano pa lang naman iyon eh, so… hindi ko malaman kung itutuloy niya o hindi (It’s just a plan, so… I’m not sure if he will pursue it or not),” Mr. Panelo said during a briefing.

Meanwhile, Pampanga 3^rd District Rep. Aurelio D. Gonzales Jr., executive vice-president of the ruling Partido Demokratiko Pilipino-Lakas ng Bayan, said it is possible that no one would contest Mr. Duterte should he decide to make a bid for the top post in the House of Representatives.

“Ayan ang pinag-uusapan namin ngayon…na kapag siya ang pumasok sa speakership, palagay ko wala nang lalaban diyan. At lahat kami, all the coalition parties, sasama diyan (That’s what we are talking about now… that if he will join the speakership race, I think no one will go against him and all of us, all the coalition parties, will go for that). Therefore, Congressman Pulong Duterte for speaker,” said Mr. Gonzales in a phone patch interview with reporters.

For his part, AKO Bicol Rep. Alfredo A. Garbin Jr. of the party-list bloc told reporters: “Tignan natin (Let’s see)… We have 20 days to go before SONA (State of the Nation Address) and we have lots of time to study it thoroughly, lahat ng partido pinag-aaralan ‘yan (all the parties are looking into that for sure)…. Ang amin dito, ‘yung isang leader ng (What we want is a leader of the) House of Representatives that can improve the lives of Filipino people.”

Among those gunning for the speakership are Reps. Lord Allan Jay Q. Velasco (Marinduque), Alan Peter S. Cayetano (Taguig City-1^st District), Pantaleon D. Alvarez (Davao del Norte-1^st District), Ferdinand Martin G. Romualdez (Leyte-1^st District), and Bayan Muna’s Carlos T. Zarate.

With 304 representatives in the 18^th Congress, the candidate for speaker must secure at least a 50%-plus-one vote. — Vince Angelo C. Ferreras

DBM set to release P59-M budget for BTA

July 2, 2019 | 8:48 pm

THE DEPARTMENT of Budget and Management (DBM) is set to release P59 million for the salary of the Bangsamoro Transition Authority (BTA) members of the newly-established Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

“The Department of Budget and Management announced that it would be releasing P59 million for the salary of 82 Bangsamoro Transition Authority members for July to December 2019,” Presidential Spokesperson Salvador S. Panelo said in a statement on the Cabinet meeting held Monday evening.

The announcement came after the Cabinet “discussed the delay of release of BTA funds because of the reenacted budget.”

Mr. Panelo said Presidential Adviser on Peace, Reconciliation and Unification (PAPRU) Carlito G. Galvez, Jr. also informed the Cabinet on the Moro Islamic Liberation Front (MILF) Normalization process and other BTA activities, including developments in the BARMM such as the appointment of leadership and heads of ministries.

In a statement posted on her Facebook page on June 25, BTA Minister Maleiha B. Candao raised the issue of their delayed salary.

“The Office of the Interim Chief Minister thru his Executive Secretary Mike Pasigan has been moving heaven and earth to fast-track the release of the salaries of the BTA members but all of these depend largely on the Department of Budget and Management,” she said.

“Government protocol and the delay of services do not necessarily mean the lack of commitment by the BARMM leadership. We all want things to flow smoothly but sad to say, there will always be a wave that can capsize our boat. The most important thing is we are always proactive,” she added.

The members of the BTA — which serves as BARMM’s interim government during the three-year transition period until June 2022 — took their oath of office on Feb. 22.

The Bureau of the Treasury has said that the reenacted budget has a “significant” impact on this year’s government spending, particularly on the new expenditures and the capital outlays, including salaries. — Arjay L. Balinbin

Nationwide round-up

July 2, 2019 | 8:47 pm

Drilon re-files bill banning political dynasties

A BILL banning political dynasties in government has been filed anew in the Senate by Minority Leader Franklin M. Drilon. Senate Bill No. 11, or the proposed “Anti-political Dynasty Act,” seeks to prohibit the spouse or relatives of an incumbent elective official to simultaneously run within the same city or province or occupy the same position immediately after the term. It covers relatives within the second civil degree of consanguinity or affinity. If enacted, the measure will serve as the enabling law of the anti-political dynasty provision under the 1987 Constitution. “No less than the Constitution mandates the State to guarantee equal access to public service and prohibit political dynasties as may be defined by law,” Mr. Drilon said in a statement, Tuesday. — Charmaine A. Tadalan

Poe revives FoI bill

A BILL mandating all government agencies to give access to documents of public concern has been re-filed by Senator Grace Poe-Llamanzares on Tuesday. Senate Bill No. 121, the “People’s Freedom of Information (FoI) Act,” a pet bill by the solon, covers all government agencies and provides an all-encompassing and uniform standard of procedure for the operation of FoI. “Transparency is essential to accountability. Without transparency, citizens cannot access the information needed to collectively discern the fitness of public officials, elected otherwise, to hold public office,” Ms. Poe said in the explanatory note of the bill. This proposed law will strengthen and expand Executive Order No. 2, issued by President Rodrigo R. Duterte in 2016, which mandates offices under the executive branch to disclose public documents on their Web sites. Among the provisions of the bill is a mandate to high ranking officials, such as the President, vice-president, and members of Congress, to upload online their Statement of Assets, Liabilities and Net Worth; while all government agencies would be required to disclose documents, like the annual budget of government agencies, itemized monthly collections and disbursements, and summary of incomes and expenditures. — Charmaine A. Tadalan

Justice chief says filing an impeachment case not an ‘unlawful act’

JUSTICE SECRETARY Menardo I. Guevarra said filing a complaint for impeachment against an officer is not an “unlawful act.” “Looking at it from the DoJ’s (Department of Justice’s) point of view, of course we always follow the rules and the law of the matter and unless somebody is caught in the act of committing a crime, you know, generally a warrant of arrest will be needed so there are only a few situations where warrantless arrests are allowed or permitted under our rules so in situations where an unlawful act is not being committed in the first place, so there will be no legal basis for an arrest,” Mr. Guevarra said in a press conference. “So the question before us now is: Is filing a complaint for impeachment an unlawful act? And my answer to that question is certainly no,” he added. Philippine National Police (PNP) chief Gen. Oscar D. Albayalde on Monday said they are ready to arrest people who want to file an impeachment complaint against President Rodrigo R. Duterte provided that they are found violating the law. Mr. Duterte last month said he will put in jail those who will file an impeachment complaint against him, following a statement made by former Foreign Affairs secretary Albert F. Del Rosario in an interview with ANC that the President could be impeached for not protecting the country’s territory in the West Philippine Sea. Presidential Spokesperson Salvador S. Panelo has said that the threat of the President was “only an expression of displeasure, disappointment. It is a righteous indignation.” — Vann Marlo M. Villegas

HRW flags drug war impact on children, cites 3-year old killed

NEW YORK-based Human Rights Watch (HRW) has noted that the government’s war on drugs has “damaged” Filipino children, citing the recent death of a three-year old girl who was hit during a drug buy-bust operation in Rizal province. “The ‘drug war’ has also damaged countless Filipino children who continue to grapple with the psychological, emotional, social, and economic impact of the killings of their loved ones, who were often their family’s breadwinner,” said HRW Asia Division researcher Carlos H. Conde in a statement. The three-year old Myka Ulpina was caught in a cross fire between suspected drug pushers, including her father, and policemen last Sunday. “Most of those killed in Duterte’s anti-drug campaign, including the children like Myka, lived in impoverished urban areas,” noted Mr. Conde. “The deaths of Myka and other children, as well as the thousands of adults, should prod the UN Human Rights Council to adopt the Iceland-initiated resolution that urges the Office of the High Commissioner for Human Rights to report on the “drug war” killings and other human rights violations in the Philippines,” he added. For his part, Philippine National Police (PNP) spokesperson Col. Bernard M. Banac said in a message to reporters: “The PNP is continuously improving on its systems and procedures through better equipment and training to enhance combat survivability of our personnel and to actively deter violent resistance by suspects when effecting arrests.” — Vince Angelo C. Ferreras

New Cebu governor orders halt to all quarrying, provincial engineer’s projects, and P1.3B capitol building

July 2, 2019 | 8:46 pm

ON THE FIRST day of her return to the Capitol on Monday, Cebu Governor Gwendolyn F. Garcia issued directives stopping all quarrying activities, projects under the Provincial Engineer’s Office (PEO), and the P1.3 billion Capitol Resource Center project. “It is hereby ordered and enjoined, WT Construction Inc., and any and all persons acting on its behalf, to stop and permanently discontinue any and all activities relative to the construction of the Cebu Resource Center Project,” reads the executive order dated June 30 this year. Ms. Garcia said the center, meant to be the flagship project of her predecessor, now Vice Governor Hilario P. Davide III, is allegedly anomalous. The governor also issued a memo to the Provincial Environment and Natural Resources Office, treasurer’s office, and Cebu Provincial Police Office directing the stoppage of quarrying activities in the province. “To put a stop to the unabated illegal quarrying activities in the province and to prevent the further degradation of the environment which causes calamities that result in massive destruction of properties and loss of human lives, and in view of my administration’s decision to review all Sand and Gravel (SAG) permits issued by the province,” the memo reads. In a separate memo to the provincial engineer, Ms. Garcia ordered the suspension “of any and all work relative to projects that are undertaken by your department, as well as to serve notice to all concerned contractors of said suspension.” The PEO was given 48 hours to submit a detailed report of all its programs and activities, including projects accomplished, continuing, and for implementation. — The Freeman

2 suspected Abu Sayyaf members nabbed in Taguig and Manila

July 2, 2019 | 8:45 pm

THE NATIONAL Bureau of Investigation (NBI) arrested two alleged members of the Abu Sayyaf Group (ASG) involved in the 2001 Golden Harvest Kidnapping case in Basilan. In a press release, NBI Director Dante A. Gierran identified those arrested as Ibno Ismael, also known as Abu Kodano, and Totoni Hairon. Mr. Ismael was nabbed in Maharlika, Taguig while Mr. Hairon in South Harbor at the Port Area in Manila. The two have standing arrest warrants issued by a Basilan court for eight counts of kidnapping and serious illegal detention in connection with the Golden Harvest case. NBI said Mr. Ismael went into hiding and worked as a construction worker while Mr. Hairon worked as security guard. They are currently being held at the NBI Detention Facility while awaiting their transfer to the Zamboanga City Jail. — Vann Marlo M. Villegas

Local gov’t support vital to maintaining barangay health volunteers, says nutrition official

July 2, 2019 | 8:45 pm

SUPPORT FROM local government units (LGUs) is crucial to the performance of barangay health workers and barangay nutrition scholars (BNS), according to an official of the regional office of the National Nutrition Council (NNC). Maria Teresa L. Ungson, NNC Davao regional nutrition program coordinator, said during a media forum Monday that health workers at the village level, especially the volunteers, receive a “meager allowance” from the national government, which is why additional incentives from the LGUs mean a lot. Ms. Ungson cited Davao City where volunteers get a P5,000 allowance from the local government. She said there are 1,800 BNS in the entire region, of which 450 are from Davao City. Ms. Ungson stressed that these volunteers are at the frontline of the delivery of health services, including programs to address under nutrition. “These are volunteer workers who give services. There are many challenges… but it makes a big difference if there is support from the local chief executives,” she said. “The funding also shows recognition for the good work that they are doing. These people do not complain,” she added. — Maya M. Padillo

Nation at a Glance — (07/03/19)

July 2, 2019 | 8:44 pm

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

Meralco wins 2019 In-House Community Practice Team of the Year for Integration

July 2, 2019 | 11:00 am

For its dedication to deliver more than and beyond the usual legal support services to the Company, Meralco Legal and Corporate Governance and Compliance Group was awarded the In-House Community Practice Team of the Year for Integration, besting in-house counsels across Asia, the Middle East and Africa.

In-House Community Counsels of the Year Awards 2019 aims to honor both individual counsels and legal teams that have pursued excellence in their roles within their organizations, and to showcase their achievements and provide inspiration to the community of 21,000 in-house counsel across Asia, Middle East and South Africa.

Winning under Integration category, Legal and Corporate Governance and Compliance Group was recognized for making itself an integral and valued part of the organization at a decision-making level with its in-house team.

Efforts of the team in information dissemination through roadshows, ensuring the implementation of new laws and regulations and policies that effect changes in the structure of the Company and its subsidiaries, as well as the team’s different projects such as Legal Online, Project Kapatid, Project Keep It Private, Project Balikatan, and Good Corporate Governance were highlighted in the award.

Meralco was also shortlisted for in-house legal team of the year for the Energy and Natural Resources Industry.

Editor’s note:

Spotlight is BusinessWorld’s new sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld website. For more information, send an email to online[at]www.bworldonline.com.

Mining firm achieves high reforestation survival rate

July 2, 2019 | 10:35 am

Using world-class technologies, OceanaGold (Philippines), Inc. group of Foresters continually puts forward the Company’s reforestation and rehabilitation projects. The mine has already planted more than 1.6 million trees in its rehabilitation areas within the Didipio Mine including reforestation plantations in the provinces of Nueva Vizcaya and Quirino. The reforestation survival rate is an impressive 92%, above the Philippine national standard of 80%.

The Didipio Mine’s Environment Team utilizes macrosomatic clonal propagation to produce various species of trees faster and more efficient than conventional planting. It produces approximately 500,000 seedlings in a year hence the Company’s partnership with different organizations and individuals in tree planting activities. Through the Mining Forest Program, OceanaGold has reforested a total area of more than 1,258 hectares in Nueva Vizcaya and Quirino.

Most seedlings produced in the mine’s nursery include endemic species such as Narra, Tuai, Mayapis, Tanguile, yakal, Guijo, Kalantas, Kupang, Agoo, Balete, and Alnus. It also produces exotic trees like Mahogany, Gmelina, and Manguim. Local farmers are capacitated in order to practice mass propagation of seedling through macrosomatic clonal propagation even in their own farms.

Furthermore, the Company progressively rehabilitates areas that are no longer needed in its mining activities. OceanaGold has progressively rehabilitated 94.62% of the Didipio Mine’s total rehabilitation area. Rehabilitation includes adding top soil to rock face walls within the mine, planting of grasses, and installing coconut nets to avoid erosion. Vertiver grasses are usually planted as its roots can grow to one meter thereby providing better slope stabilization.

To fast-track its progressive rehabilitation, hydro-seeding technology is applied wherein seeds, soil, and organic fertilizer are mixed and sprayed on rock face walls. It only takes a few weeks before grasses grow and area eventually becomes nutrient-sufficient for trees. Progressive rehabilitation is aligned to the Company’s effort to sustain the rich biodiversity in Didipio.

Even prior to the commencement of its operation in 2013, the Company has established reforestation areas in Didipio during its exploration phase. These areas are now rich forests that are home to numerous species. OceanaGold commits to continuously support the government’s National Greening Program (NGP) and progressively rehabilitate more areas to minimize its environmental footprint.

ASEAN manufacturing purchasing managers’ index, June (2019)

July 2, 2019 | 12:33 am

BUSINESS for manufacturers in the country improved just slightly in June, as a boost from “a solid rate of output expansion” was capped by “a softer increase in total new orders and the fastest drop in export sales” in the country’s three-and-a-half-year survey series, according to the latest Philippine monthly tracking IHS Markit conducts for Nikkei, Inc. Read the full story.

Factory activity bares ‘marginal’ growth

July 2, 2019 | 12:33 am

BUSINESS for manufacturers in the country improved just slightly in June, as a boost from “a solid rate of output expansion” was capped by “a softer increase in total new orders and the fastest drop in export sales” in the country’s three-and-a-half-year survey series, according to the latest Philippine monthly tracking IHS Markit conducts for Nikkei, Inc.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) edged up to 51.3 in June from 51.2 in March — marking a three-month high and the second straight month of increase coming from five consecutive months of contraction — although it was still lower than the year-ago’s 52.9.

The manufacturing PMI consists of five sub-indices, with new orders having the heaviest weight at 30%, followed by output with 25%, employment with 20%, suppliers’ delivery times with 15% and stocks of purchases with 10%. The 50 mark separates readings above it that signal expansion from the preceding month from those below it that denote contraction.

A news release summarizing survey results noted that “employment trends remained subdued, while firms continued to build stocks to avoid shortages” and “[s]entiment about the future… dipped to the second-lowest recorded by the series to-date.”

Noting that “Filipino manufacturers were facing a weakening growth environment in June”, IHS Markit Economist David Owen said the latest survey “suggests that there will be less incentive to raise output in the months ahead, unless firms see a strong inflow of new orders.”

“Many companies may switch to using up their inventories, in which case activity could dry up,” Mr. Owen said, adding that they “also face notable labor market problems as resignations were once again mentioned by a number of panelists.”

June results made the Philippines the third best among the seven members of the Association of Southeast Asian Nations (ASEAN) tracked by the survey, up from fourth place in April and May. The Philippines topped the region in January, but slid to second and then to third place in February and March, respectively.

Last month, the Philippines fell behind Myanmar — which has topped the region since February — which recorded a 53 PMI, followed by Vietnam — second since March — which posted 52.5. The Philippines’ 51.3 reading was better than ASEAN’s 49.7 in June that was down from 50.6 in May, marking the first regional slowdown in four months.

Sought for comment, Robert Dan J. Roces, Security Bank Corp. Treasury Group’s assistant vice-president and economist, said, “As PMI continues to expand, we see sustained production growth in the near term as local consumption is buoyed by manageable inflation levels.”

“We also hope that the modest recovery in April of the export sector is indicative of better things to come as new export orders may have also grown with improved sales from overseas, despite the US-China trade war.”

Michael L. Ricafort, head of Rizal Commercial Banking Corp. (RCBC) research division, said that the June index may “reflect slower growth in banking loans in recent months as some manufacturers wait for local interest rates to go down further before they become more aggressive in their borrowings to finance new manufacturing facilities and expansion projects amid the declining trend in both inflation and interest rates in the recent months.” — Reicelene J. N. Ignacio

Duterte OK’s new export dev’t plan

July 2, 2019 | 12:32 am

PRESIDENT Rodrigo R. Duterte has approved the government’s new export development plan, short of a year after it was submitted to his office by the Cabinet Economic Development Cluster, providing a road map for improved performance of both service and merchandise exports at a time of challenging global demand conditions.

Malacañan Palace on Monday released Memorandum Circular No. 62, dated June 26, on Mr. Duterte’s approval of the Philippine Export Development Plan 2018-2022 and which requires agencies concerned to submit within 60 days of the circular’s effectivity to the Export Development Council (ExDC) and the Office of the President an inventory of relevant policies, programs and plans. “These agencies shall implement such policies, programs and action plans to boost export growth and ensure the free flow of goods…” the circular read, adding that the ExDC will conduct biannual review of the PEDP 2018-2022.

The new export development plan aligns more closely to the larger Philippine Development Plan that set the Duterte administration’s six-year socioeconomic development track.

TARGETS
Endorsed for Mr. Duterte’s approval on July 20 last year, the PEDP 2018-2022 targets total export revenues — consisting of goods and services — to reach $122-130.8 billion by 2022, when he ends his six-year term, from $74 billion in 2016.

That target entails a compound annual growth rate of 8.89-9.96%.

Export of goods are targeted to post a 6.11-6.46% CAGR to $61-62.2 billion in 2022 from $42.7 billion in 2016, while services are projected to post an 11.78-13.99% CAGR to $61-68.6 billion from $31.2 billion in 2016.

HISTORICAL GROWTH RATES
Those targets compare with actual total export growth rates of 8.13% in 2006-2012, 6.17% in 2012-2014 and -0.88 in 2014-2016, taking 2006-2016 growth to 5.88%.

That overall slowdown is reflected in the performance of merchandise exports in the same periods (7.1% in 2006-2012, 3.64% in 2012-2014 and -7.39% in 2014-216, taking 2006-2016 growth to 3.35%) as well as of services (10.17% in 2006-2012, 11.69% in 2012-2014 and 10.73% in 2014-2016, taking 2006-2016 growth to 10.95%).

Merchandise export sales dropped 1.8% to $67.488 billion last year from $68.713 billion in 2017, which had seen an increase of about a tenth, coming from a 2.42% drop in 2016. The four months to April saw foreign sales of Philippine goods fall by 2.1% to $21.921 billion, as electronic products which accounted for more than half of total merchandise shipments slipped by 0.6% to $11.948 billion.

Service exports, on the other hand, grew, but at a slower 8.9% pace last year, compared to 15.1% in 2017 and 15.3% in 2016.

THREE STRATEGIES
The government has adopted three strategies to achieve these targets.

The first strategy is to improve the overall climate for export development by removing regulatory impediments, enhancing trade facilitation, and fostering supply chain linkages.

Second is to exploit existing and prospective opportunities from trading arrangements, while the third involves development of comprehensive packages to promote select products and services.

Based on historical experience, the government identified three general product categories “with potentially wider spread and impact due to comparative advantages or in meeting global challenges”, namely: electronics; processed food, vegetables and beverages; and information technology.

“This does not mean three homogeneous products or services since obviously each one can be further broken down to many sub-products and related services,” the PEDP explained.

That focus compares to 10 product and service categories under the previous PEDP 2015-2017, which focused on diversifying markets and products, identifying and developing export capabilities where global market demand is growing fast, addressing bottlenecks that undermine export competitiveness as well as developing the potentials of goods and services where the Philippines could be competitive but have yet to attain comparative advantage.

“The different approaches followed by PEDP 2015-17 and PEDP 2018-22 are mutually reinforcing,” according to the new plan, explaining that “PEDP 2018-22 takes off from the analytical foundation of PEDP 2015-17 which remains valid for investigating the structural reasons for the weak performance of Philippine exports of goods and services.”