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Gov’t to appeal CA injunction against PLDT labor order

MALACAÑANG and the Labor department are preparing to appeal an injunction issued by the Court of Appeals (CA) which froze an order to PLDT, Inc. to provide regular employment status to more than 7,000 workers.
CA PLDT logo
In a briefing on Monday, Department of Labor and Employment (DoLE) Secretary Silvestre H. Bello III said: “The CA decision is being reviewed with a view to filing a motion for reconsideration.”
Mr. Bello added that the Office of the Solicitor General “agreed to represent DoLE” in seeking the motion.
Mr. Bello said the court ruling effectively freezes any move to recognize as regular employees more than 7,000 PLDT contractual workers.
Presidential Spokesman Herminio L. Roque said in a briefing on Monday that the executive branch was “saddened” by the CA’s intervention, and expressed hope that the Supreme Court will eventually see the DoLE order as a valid action by the executive branch.
PLDT had no comment on the government’s plans to seek reconsideration as of deadline time.
On July 31, the CA granted “an injunction against the regularization orders” of the Labor department, PLDT said in a statement on Monday.
In the 47-page decision signed by Associate Justice Edwin D. Sorongon, the CA said that Mr. Bello and PLDT’s union, Manggagawa sa Komunikasyon ng Pilipinas, “are ENJOINED from implementing, enforcing and/or executing” the compliance order and the resolutions issued by Mr. Bello.
The CA also instructed DoLE to “review and properly (determine) the monetary award on the labor standards violation of petitioner PLDT, Inc., and to conduct further appropriate proceedings, consistent with this Decision.”
DoLE issued a compliance order to PLDT on July 3, 2017. This was affirmed by the Labor secretary through resolutions he signed on January and April this year. The order and resolutions also called for the telco to pay almost P52 million in employee claims.
“The Court of Appeals agreed with PLDT’s contention that the Secretary’s regularization order was ‘tainted with grave abuse of discretion’ because it did not meet the ‘substantial evidence’ standards set out by the Supreme Court in landmark jurisprudence,” PLDT said in a statement following the granting of the injunction.
The CA found that PLDT was denied the right to submit its own evidence, and that claims made in the issuances “did not rise to the level of substantial evidence” and were “rendered not on the basis of the evidence presented at the hearing, or at least contained in the record and disclosed to the parties affected.”
The CA noted that DoLE’s regional director relied only on interviews with some workers and applied its findings to other workers who were not interviewed. “It is highly conjectural, if not purely speculative to consider the individual circumstances of some workers who were interviewed to be exactly similar to the factual circumstances pertaining to the other contractors’ workers.”
The court added that DoLE reached an “oversimplified conclusion that what is true for one is true as well for seven or eight others. The assailed issuances, without concrete evidence, simply assumed that every contractor’s worker is similarly, if not exactly, situated as with the rest,” and called some of the facts presented “anecdotal.”
“In the absence of facts supporting a general allegation or broad claim that employment relationship existed, the evidentiary standard could not be said to have been satisfied,” CA stressed.
The court also found that the compliance order “appears to have leaned in favor of the individuals deployed by the service contractors and against PLDT and the latter’s contractors,” suggesting partiality and bias on the part of the Labor secretary.
The CA, however, affirmed with certain modifications the resolutions signed by Mr. Bello in January and May. The CA ordered PLDT to offer regular status to “individuals performing functions and jobs that are usually necessary and desirable in the usual course of the business of the petitioner PLDT, Inc., specifically, as regards the installation, repair and maintenance of PLDT communication lines.”
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Gillian M. Cortez

NEDA-ICC Cabinet Cluster approves new budgets for Mindanao projects

THE CABINET Cluster of the National Economic and Development Authority’s (NEDA) Investment Coordination Committee (ICC) approved higher cost estimates for two Mindanao projects and flood management projects for three river basins across the country.
In a statement, NEDA said that the body approved on July 27 the widening of a two-lane road to four lanes for the Davao City Bypass construction project, as well as shifting the project to one phase from two.
The 45.2-kilometer bypass budget was also approved at P25.8 billion, from the earlier estimate of P16.8 billion.
The cluster also approved the increase in length of the Panguil Bay bridge to 3.77 kilometers from 3.48 kilometers, while widening it to 15.5 meters from 14.5 meters previously.
“The change in cost from P4.9 billion to P7.4 billion covers the actual expenses for Right-of-Way acquisition carried out by the Misamis Occidental and Lanao del Norte District Engineering Offices, excluding service charges,” NEDA said.
The bridge specifications were also modified to accommodate longer pile lengths, bigger boreholes, precautions against seismic events, and additional temporary facilities for construction activity such as docking lots, casting sites, crane ways, among others.
The panel also increased the authorized cost estimate for the Flood Risk Management projects for the Cagayan, Tagoloan, and Imus Rivers to P7.5 billion from P5.6 billion due to “inclusion of new work items; and increases in costs of land acquisition, construction materials, consultancy services, and administration.”
The Tagoloan river runs through Misamis Oriental.
After the Cabinet Cluster, the changes in project specifications and budgets need to be approved by President Rodrigo R. Duterte, acting as head of the NEDA Board.
“Of the regions involved, three (Regions XI, II, Calabarzon) posted Gross Regional Domestic Product (GRDP) growth rates last year of 10.9%, 7.2%, 6.7%, respectively. These are higher than the National Capital Region’s 6.1%,” NEDA said.
Region XI or the Davao Region is expected to grow by 10.5-11.5% by 2022, while Cagayan Valley is expected to grow between 6.5-7.5% over the same period, and Calabarzon growth is projected at 6-7.3%.
“The ICC and the whole of government is steadfast in sustaining these regions’ growth momentum. These improvements in the projects reflect this commitment,” said Socioeconomic Planning Secretary Ernesto M. Pernia.
The statement also said that the ICC urged the Transportation department to “fast-track the implementation of the Cebu Bus Rapid Transit,” which is part of the Metro Cebu Intermodal and Integrated Transport System, which is targeted to achieve interoperability by June 2021.
The integrated transport system will include the Cebu Bus Rapid Transit, a skytrain project, intelligent transport systems, light rail transit, and a greenways project, among others, to help address congestion and transport problems in Metro Cebu. — Elijah Joseph C. Tubayan

Taiwan asks PHL to reciprocate on visa waivers for tourists

THE GOVERNMENT of Taiwan is requesting that the Philippines reciprocate by granting visa-free privileges to visitors from Taiwan.
Alfred Y.H. Wang, director for the Economic Division of the Taipei Economic and Cultural Office in the Philippines (TECOP), said he has been seeking reciprocal visa-free status but negotiations with the Manila Economic and Cultural Office (MECO) are still ongoing.
“We wish the Philippine side will also give us similar treatment on the visa-waiver program. Until now we’re still in discussions,” Mr. Wang told reporters at a media roundtable in Manila on Monday.
“They always say they are starting,” he said, noting that he respects the Philippine decision-making formalities “but we need reciprocal treatment.”
TECOP recently extended the 14-day visa-free program for Filipino visitors by another year. Initially intended as a nine-month trial, the program was extended to July 2019 after Taiwan received a record number of Filipino tourist arrivals last year.
MECO was asked for comment yesterday but had not responded at deadline time.
On its website, TECOP said Filipino visitors to Taiwan hit 291,000 in 2017, up 68.74%.
With the extension of the visa waiver policy, TECOP’s Mr. Wang said: “It would be reasonable to expect tremendous growth” in tourist arrivals this year,” and expressed the hope that 2018 levels will “double or triple” the 2017 performance.
Taiwan’s efforts to boost Filipino arrivals include promoting medical tourism.
On Monday the 2018 Taiwan Healthcare Industry Trade Meeting, organized by the Taiwan External Trade Development Council kicked off at the Manila Hotel.
Taiwan offers world-class medical services at the fraction of the cost for equivalent treatment in the developed world, and is hoping to generate more medical business from Southeast Asia. — Janina C. Lim

DA studying fish, pork imports for holidays

THE Department of Agriculture (DA) is moving to facilitate imports of fish and pork and chicken ahead of the yearend holidays to avert supply problems and their possible impact on prices.
Agriculture Secretary Emmanuel F. Piñol told reporters on Monday that he will be meeting with stakeholders on Friday to discuss the volume of imports required for pork and round scad, which is better known in the Philippines as galunggong.
“We are going to review whether it is the right time now to allow the entry of additional imports… for meat and whether it is advisable for us to allow entry of fish to ensure security of supply,” he added.
“Since there is a noticeable spike in the price in the market, I will consider issuing a certificate of necessity to allow the entry of additional fish to stabilize the price of fish in the market,” he added.”
Mr. Piñol said he will be holding consultations with hog suppliers in light of rising pork prices.
“According to BAI (Bureau of Animal Industry), the supply of hogs is almost equal to demand so its a very critical situation,” he said.
The Philippines can import up to 54,000 metric tons (MT) of pork under the Minimum Access Volume (MAV) scheme. Mr. Piñol said that he expects to authorize imports of an additional 8,000 MT to 10,000 MT of pork.
Poultry and beef exports are also being considered but are not deemed a priority due to the easier importation process for poultry and lower tariff rates for beef, Mr. Piñol added.
When asked about a proposed executive order to reduce tariffs on fish and meat, Mr. Piñol, however, said that he has yet to discuss with stakeholders.
“But this early, any suggestion to eliminate tariff for both meat and fish will certainly be met with strong opposition from agriculture stakeholders,” he added.
“They feel that in the World Trade Organization agreements they were made the sacrificial lambs. The sector feels that they were sacrificed so that the QR (quantitative restrictions) on rice were retained.” — Anna Gabriela A. Mogato

Trade dep’t planning job fair for ‘Build, Build, Build’

AROUND 30,000 positions will be available at a job fair on Sunday to support the government’s aggressive infrastructure program, the Department of Trade and Industry (DTI) said.
In a statement, a DTI agency, the Construction Industry Authority of the Philippines (CIAP), said it will stage the event at the SMX Convention Center in Pasay City.
The job fair, known as “Jobs, Jobs, Jobs,” will run between 8:30 a.m. and 4:30 p.m.
CIAP said the job fair will seek to employ “blue and white collar workers looking for employment in the construction industry.”
Vacancies will be offered by contractors registered with the Philippine Overseas Construction Board (POCB) and the Philippine Contractors Accreditation Board (PCAB). Other booths from various government agencies will also help jobseekers complete their employment requirements.
Last week in a briefing, Transportation Secretary Arthur P. Tugade said that the “Build, Build, Build” program will generate about 1.8 million jobs each year. Labor Secretary Silvestre H. Bello also said last week that he expects the construction industry to be the biggest contributor to employment growth this year. — Gillian M. Cortez

Renewables firms hoping to unify lobbying efforts

THE former chairman of the National Renewable Energy Board (NREB) will front an organization unifying the industry associations of renewable energy developers.
Jose M. Layug, Jr., former chairman of NREB, told reporters the various groups of solar developers are backing the creation of the single entity, although he has yet to obtain the formal support of geothermal developers, who are in the process of choosing their officers. Wind power developers have also been invited to join.
“There are so many issues,” he said, citing a number of pending regulations that are supposed to promote the greater use of renewable energy.
Aside from the delayed issuance of the regulations, the most pressing issue facing renewable energy at this time is the Energy department’s decision to disallow the “Swiss challenge” process for electric cooperatives to procure their power capacity requirements.
Under previous practice, a renewable energy developer can submit a proposal to supply power to an electric cooperative, which in turn publishes the offer to attract price challengers. The original proponent has the right to match the challenger’s price offer.
The Department of Energy (DoE) earlier said that its directive was meant to provide clarity as several government agencies have been coming out with their own draft rules on competitive selection processes (CSP).
These agencies include the National Electrification Administration (NEA), which oversees the cooperatives, and the Energy Regulatory Commission (ERC). Congress also has a pending CSP bill.
“If you look at the CSP rules… Swiss challenge has not been ruled out,” Mr. Layug said. “I don’t understand why are you preventing an original proponent [the right to match].”
He said the ERC, on the other hand, has ruled that Swiss challenges are allowed. He said if the DoE’s preference for competitive bidding is followed instead of a Swiss challenge, the process would be time-consuming.
“The ERC in past decisions had allowed Swiss challenge,” he said. “And the Supreme Court recognizes Swiss challenge as a form of public bidding.”
He said if renewable energy developers are not allowed to offer their capacity through a Swiss challenge, they will be at a disadvantage when competing with coal power plants in competitive bids. — Victor V. Saulon

Manila Thermal Power site to be auctioned next week

THE Power Sector Assets and Liabilities Management Corp. (PSALM) has scheduled for next week an auction for the 20,975 square-meter former site of a thermal power plant in Manila.

“PSALM has scheduled the bidding for the Manila Thermal Power Plant Land on Aug. 15, 2018,” the company said in a response to a set of questions sent via e-mail.
“PSALM intends to republish an Invitation to Bid for the property containing its minimum bid price,” it added.
The property is on Isla de Provisor, along the Pasig River, in Paco, Manila.
PSALM also disclosed the schedule for the Malaya Thermal Power Plant auction on an “as is, where is” basis, thus doing away with a previous proposal of the Department of Energy (DoE) to require the winning bidder to convert the plant into a gas-fired power facility.
PSALM, the agency tasked to handle the privatization of the government’s power generation assets, said the publication of the invitation to bid for the Malaya plant is scheduled within this month. It did not specify a date.
“Pre-Bid Conference with Prospective Bidders will be held in September 2018,” it said. “Bidding will commence in November 2018.”
PSALM has said that it had generated privatization proceeds from assets amounting to P918.5 billion, of which it had collected P545.2 billion. The balance will follow a payment schedule. The agency said it had recently privatized more than 900 hectares of real estate power assets. It also sold Power Barge 104 and the decommissioned Sucat Thermal Power Plant.
PSALM, which assumed in 2003 the P1.24 trillion liabilities of National Power Corp., had since reduced that debt.
As of June 30, its remaining principal debt was down to P246.73 billion, while the remaining obligations under its independent power producer (IPP) contracts amounted to P202.7 billion.
PSALM said it has reduced the financial obligations to P449.4 billion, equivalent to a 64.35% reduction. — Victor V. Saulon

No derailing TRAIN as Package 2 moves forward

Taxation plays a vital role in the economic growth of a country. Taxes, apart from raising revenue to finance government expenditures, can influence the patterns of consumption, production and distribution. Taxes, therefore, affect the economy in various ways.
Just a few months after the effectivity of Republic Act (RA) No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN), the peso has depreciated against the dollar and inflation rose to 5.2% in June. While some economists have said that TRAIN has had a minimal influence on the recent rise in prices, the ordinary person seems to associate these economic phenomena with the effects of TRAIN.
The apparent negative effects of TRAIN have also made many apprehensive about subsequent packages of the tax reform program. For Package 2, there have been reports of reluctance in the Senate to sponsor the tax bill. Eventually Senate President Vicente C. Sotto III filed his own version of Package 2 in the form of Senate Bill 1906, or the “Corporate Income Tax Reform and Incentives Reform Act.”
It has been reported that Senate Bill 1906 seeks, among others, to lower the corporate income tax from the current 30% to 25% while expanding the tax base, to repeal 123 special laws on investment tax incentives and consolidate them into a single omnibus incentives list, and to repeal the National Internal Revenue Code exemptions or incentives for government-owned and controlled corporations (GOCCs), proprietary educational institutions and hospitals, regional or area headquarters (RHQs), and regional operating headquarters (ROHQs). It was further reported that the bill also seeks to rationalize tax incentives, simplify the tax system to cut down on tax evasion, and impose higher penalties on tax offenders.
Given the above, the Senate version appears to be in line with the objectives of the versions of the House of Representatives with respect to the tax incentives under the latter’s own proposed Package 2 bills, which call for incentives to be transparent, targeted, time-bound, and performance-based. These attributes are briefly described as follows:
Transparent. The monitoring of tax incentives is institutionalized and reported by the government. The name of registered enterprises or beneficiaries and their estimated tax incentives are reported by the Fiscal Incentives Review Board (FIRB), an independent body tasked to review and evaluate the grant of tax incentives.
Targeted. To minimize leakages and distortion in the tax system, tax incentives are given to activities with significant positive externalities, as specified in the Strategic Investment Priority Plan (SIPP). These activities cover both foreign and domestic firms (with no nationality bias) and those serving export and domestic markets. Thus, it shall be neutral in terms of nationality and market. Preference shall also be given to activity in lagging regions.
Time-bound. Sunset provisions shall be in place in the grant of tax incentives. A five-year Income tax holiday (ITH) and/or reduced corporate income tax rate of 15% with no extension, except for customs duties for capital equipment imported by a qualified enterprise.
Performance-based. Tax incentives shall be based on the clear attainment of performance targets set forth in the SIPP such as export sales, actual investment, actual job creation, investment in lagging regions, and employment in research & development, among others. This is in line with the various measures under the Tax Incentives Management and Transparency Act (TIMTA), which allows the government to analyze whether the tax incentives that reduced government revenue have delivered employment, income, and export growth.
With these guiding principles for rationalizing tax incentives, it is hoped that taxes foregone will be given to the companies that will help improve the country’s economy and not to just any company that wishes to invest. Rationalization will plug revenue leaks by ensuring that tax incentives are given to the proper sectors. The measure also intends to level the playing field, such that similar entities face similar tax rates, creating a fairer business climate with a view to attracting more investment.
Despite the laudable objectives of rationalizing tax incentives, businessmen remain wary of the effects of removing tax incentives and perks. To them, changes in the tax incentive regime create uncertainty for their businesses and operations, possibly causing them to leave.
There also reports that businessmen are concerned about the conditional lowering of corporate income tax, subject to the achievement of certain revenue benchmarks. To executives, subjecting the reduction of corporate income tax to certain conditions will not only create uncertainty but will make everything unstable – making it difficult to plan, project and make solid business decisions. Let us hope that, in the Senate version of Package 2, the corporate income tax rate reduction to 25% is given at the onset. The cut in the corporate tax rate will give the Philippines a competitive advantage, as our tax rates are among the highest in Southeast Asia. A lower corporate income tax rate translates to more after-tax profits that may help businesses flourish and grow.
While the rationalization of tax incentives may create positive results in terms of economic growth, lawmakers must always strike a balance between the benefits of revenue foregone and the benefits of retaining key investors and attracting new ones. The removal of tax incentives previously enjoyed by companies mean they incur additional costs, which may be passed on to consumers, which eventually will lead to an increase in prices. Whatever course of action is taken to pursue the objectives of tax reform, there will always be trade-offs. The challenge now for lawmakers is to weigh the pros and cons of each proposed measure. Senate Bill 1906 still has a long way to go, and is expected to face rough sailing before it becomes a law. Let us hope that both houses of Congress work hand in hand to align various bills to come up with a tax law that benefits every Filipino.
May the lessons brought by the TRAIN 1 push our lawmakers to be more meticulous in reviewing the bills so that inclusive growth will be felt sooner by our kababayans. Tax reform is entering its second phase, where the risks of derailing TRAIN must be carefully managed.
 
Farrah Andres-Neagoe is a senior manager of the Tax Advisory and Compliance of P&A Grant Thornton.
Farrah.Andres-Neagoe@ph.gt.com
+63(2) 988-2288

Peso at two-month high on rate hike bets

THE PESO strengthened against the dollar on Monday to hit a two-month high as market players anticipate a rate hike at the central bank’s meeting this week.
The local unit ended Monday’s trading at P52.85 against the greenback, 30 centavos stronger than the P53.15-per-dollar finish on Friday.
This was the peso’s strongest closing rate in nearly two months since it closed at P52.70 versus the US currency on June 8.
The peso traded stronger the whole day, opening the session at P53.10 against the dollar. It climbed to as high as P52.84, while its intraday low stood at P53.135 versus the greenback.
Dollars traded amounted to $892.9 million, up from the $595.15 million that exchanged hands in the previous session.
“The peso strengthened ahead of the key local economic data this week,” a trader said in an e-mail on Monday.
Economists are expecting the Bangko Sentral ng Pilipinas (BSP) to tighten monetary policy rates anew as inflation might have spiked further in July.
According to a BusinessWorld poll, analysts expect headline inflation to have picked up further last month to 5.5% from the 5.2% print in June.
BSP Governor Nestor A. Espenilla, Jr. has hinted of a “strong follow-though” policy action after two 25-basis-point increases the central bank implemented in May and June to quell inflation expectations.
The monetary policy decision of the BSP’s Monetary Board as well as the release of data on the country’s second-quarter gross domestic product growth will be announced on Thursday, while the July inflation report is due for release Tuesday, August 7.
The trader also attributed the peso’s climb to the “mixed” US jobs data released on Friday.
The US created 157,000 additional jobs in July, the slowest gain since March. However, the unemployment rate declined by a tenth of a percentage point to 3.9%.
Another trader added that the peso was an “outperformer” in the region as market players factored in a possible BSP rate increase.
“The People’s Bank of China on Friday night announced that they will increase by 20% the reserve requirement on foreign exchange forward contracts. Effectively, this will make it more expensive for market players to short the Chinese yuan,” the trader added. “With that, the region moved in tandem with the Chinese yuan to weaken.”
For Tuesday, the first trader expects the peso to move between P52.70 and P52.90 versus the dollar, while the other gave a P52.75-P53 range. — Karl Angelo N. Vidal

PSEi ends flat as investors await economic reports

LOCAL EQUITIES ended flat on Monday as investors took a wait-and-see approach pending the release of several key economic reports this week.
The bellwether Philippine Stock Exchange index (PSEi) edged down 0.02% or 2.08 points to close at 7,817.31 Monday, August 6.
The broader all-shares index also dropped 0.16% or 7.85 points to end at 4,660.44.
“Philippine shares traded with some precaution as this week marks the release of key economic data points,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Monday.
The government is set to release July inflation data Tuesday, August 7. On Thursday, it will release the country’s second-quarter gross domestic product (GDP) report ahead of a Bangko Sentral ng Pilipinas meeting in the afternoon.
Although traders have been factoring a 50-basis-point interest hike from the central bank as it reviews policy this week, Miko A. Sayo, trader at AP Securities, Inc., said the economic reports will help determine the market by the end of the week.
“I’m not sure how the market will react…but we expect inflation will be high again,” Mr. Sayo said in a phone interview Monday, August 6.
He added that the index has been recovering in recent weeks and has managed to hover in the high side in short-term trading.
“Momentum has slowly returned and whether it will continue may be decided by the end of the week,” Regina Capital’s Mr. Limlingan said.
Counters were mixed on Monday. Holding firms dropped 0.77% or 60.41 points to 7,789.55 and services declined 0.13% or 2.06 points to 1,502.80.
Meanwhile, property climbed 0.88% or 33.34 points to 3,802.55; mining and oil rose 0.36% or 37.55 points to 10,335.60; industrials went up 0.35% or 39.17 points to 10,958.30; and financials rose 0.33% or 6.39 points to 1,891.40.
Foreigners dumped shares anew, with net selling logged at P86.96 million, a reversal from Friday’s net purchases worth P6.65 million.
Value turnover dropped slightly to P5.60 billion from Friday’s P5.72 billion after some 2.07 billion issues changed hands.
Losers outpaced advancers, 117 to 92, while 36 issues remained unchanged.
Meanwhile, other Southeast Asian markets traded higher in line with broader Asian peers Monday, August 6, with Indonesia camping near a two-month peak boosted by robust GDP figures.
Asia shares ex-Japan rose 0.9% in early trade after the People’s Bank of China (PBoC) on Friday raised the reserve requirement on foreign exchange forward positions, making it more expensive to bet against the Chinese currency.
Although the PBoC had implemented a 20% reserve in 2015, it had failed to stop the RMB from weakening further. “It is a strong signal. China will not hesitate to intervene in the market should the currency depreciation risk the financial stability,” OCBC Bank said. — J.C. Lim with Reuters

Duterte signs National ID, Bangsamoro Region laws

By Arjay L. Balinbin, Reporter
PRESIDENT Rodrigo R. Duterte led the ceremonial signing of the Philippine Identification System Act and the presentation of the organic law for the Bangsamoro Autonomous Region in Muslim Mindanao at Malacañang on Monday, Aug. 6.
The ceremony was attended by the Cabinet members; members of the Senate and the House of Representatives, including Senate President Vicente C. Sotto III and House Speaker Gloria M. Arroyo; Office of the Presidential Adviser on the Peace Process (OPAPP) officials; members of the diplomatic corps; Philippine Statistics Authority (PSA) officials; and members of the Bangsamoro Transition Commission (BTC), including Mohagher Q. Iqbal and Ghazali Jaafar who are also high-ranking leaders of the Moro Islamic Liberation Front (MILF).
In his speech, Mr. Duterte said the Philippine Identification System (PhilSys) Act “will not just enhance administrative governance but reduce corruption, curtail bureaucratic red tape, and promote the ease of doing business, (and) also avert fraudulent transactions, strengthen financial inclusion, and create a more secure environment for our people.”
The new law aims to eliminate the need to present other forms of identification when transacting with the government and the private sector by providing a single valid proof of identity for all Filipino citizens and foreign residents in the country.
As the implementing agency, PSA said in a statement it will lead the implementation of the national ID system together with National Economic and Development Authority (NEDA), Department of Foreign Affairs (DFA), Department of Budget and Management (DBM), Department of Information and Communications Technology (DICT), Department of Finance (DoF), Department of Social Welfare and Development (DSWD), Department of Interior Local Government (DILG), National Privacy Commission (NPC), Bangko Sentral ng Pilipinas (BSP), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PhilHealth), Social Security System (SSS) and Philippine Postal Corporation (PHLPost) forming the PhilSys Policy and Coordination Council (PSPCC).
PSA also said NEDA Secretary and PSPCC Chairman Ernesto M. Pernia will convene the council to discuss plans for PhilSys implementation. As head of the implementing agency PSA, Undersecretary Lisa Grace S. Bersales will act as Co-chair.
In the coming months, PSA said it will conducting a pilot implementation in selected regions in the Philippines in collaboration with the Council’s member-agencies. “The pilot test aims to lay down the registration process prior to the full 5-year implementation starting 2019,” the PSA’s statement also read.
As for the Bangsamoro Organic Law (BOL) or Republic Act No. 11054, Mr. Duterte said he signed it into law hoping this will “finally end the decades-old conflict [in Mindanao] that is rooted in the Bangsamoro’s fight for self-determination and the recognition of their unique identity.”
According to a press briefer on the BOL, the autonomy with transparency and accountability of the Bangsamoro Government is guaranteed by the following features: parliamentary form of government, fiscal autonomy, and inclusivity.
“The Parliamentary form of government allows more democratic participation, ensures greater diversity and representation, and encourages the formation of genuinely principled political parties. The Parliament will be composed of 80 members representing different parties, sectors and districts elected by the people through popular representation which safeguards the monopoly of membership of a certain sector. The Members of the Parliament then choose the Chief Minister, and two Deputy Chief Ministers, nominated by the Chief Minister. The Chief Minister appoints members of his cabinet, majority of whom shall come from the members of Parliament. The Parliament is given the power to enact laws to promote, protect and ensure the general welfare of the Bangsamoro people and other inhabitants in the region. The Parliament has the power to pass an annual appropriations law for the region, clearly defining where the appropriation shall be utilized.”
“The Bangsamoro Organic Law grants the Bangsamoro Government the right to manage their funds, income and resources. The law also states that the National Government will provide an annual block grant automatically appropriated in the General Appropriations Act of the Congress to the Bangsamoro government in order for it to efficiently perform its powers and functions. The block grant which will be released directly to the Bangsamoro Government is equivalent to five percent (5%) of the net collection of the Bureau of Internal Revenue and from the Bureau of Customs. The block grant, though and other national government subsidies given in lump sum may not be spent without an appropriations law defining the purpose for which they are intended.”
“Taxes collected from the region will be split 25% — 75% in favor of the Bangsamoro Government. This sharing arrangement aims for the Bangsamoro Government to catch up with other region in terms of economic developments as it suffered years of accumulated neglect due to the armed-conflict and under investments both from the government and the private sector.”
“The Bangsamoro Organic Law recognizes and respects the rights of every sector and groups in the Bangsamoro area. Ten percent (10%) of the Parliamentary seats are reserved for non-Moro indigenous peoples and settler communities, women, youth, traditional leaders and the Ulama. Further, the Bangsamoro Government adopts measures for the promotion and protection of these rights thru the creation of a Ministry for Indigenous Peoples that will formulate and implement policies, plans, and programs for all IPs (indigenous peoples) in the region, on top of upholding the existing laws for IPs.”

Marcos wants Caguioa inhibited from poll protest, claims bias

FORMER SENATOR Ferdinand R. Marcos, Jr. filed on Monday an “extremely urgent motion to inhibit Supreme Court Associate Justice Alfredo Benjamin S. Caguioa, citing “his wife’s undeniably close ties with former President Benigno “Noynoy” Aquino, Jr. and Ms. (Maria Leonor G.) Leni Robredo.”
Also on Monday, a spokesperson of the Commission on Elections said the poll body stands by the results of the 2016 elections. Mr. Marcos ran for vice-president that year and lost to Ms. Robredo in the official count now subject to his electoral protest before the SC as the Presidential Electoral Tribunal.
According to Mr. Marcos, Mr. Caguioa’s wife, Pier Angela, “was not only an anti-Marcos advocate but was also an ardent supporter of Robredo, having actively campaigned for her during the May 2016 elections.”
He cited “online messages of Caguioa’s wife in her Viber group,” as also posted on Facebook, and quoted one such message by her as saying, “(i)f BBM (Bongbong Marcos) wins and if he wins because of the youth, it’ll be [the] failure of our generation. We were the main catalysts of Edsa 1 and yet we failed to impart its lessons upon the generation that followed us.”
A statement from the former senator’s office also cited Mr. Marcos as pointing out that “while he was aware of Justice Caguioa’s fraternal bond with Noynoy Aquino because they were classmates from grade school, high school and college at the Ateneo De Manila University — a fact which led to Caguioa’s appointment to various top posts during Aquino’s Presidency, he tried to give Caguioa the benefit of the doubt. Despite the inordinate delays in his election protest, he tried to remain above the fray out of respect to the Presidential Electoral Tribunal.”
“Given the evident bias, manifest partiality and blatant prejudice shown by Associate Justice Caguioa and Mrs. Caguioa in favor of Noynoy Aquino and protestee Robredo, the undersigned protestant is left with no other recourse but to file the instant Motion for the Inhibition pursuant to the mandate of Canons 3 and 4 of the New Code of Judicial Conduct for the Philippine Judiciary,” Mr. Marcos said in the statement.
For his part, Comelec spokesperson James B. Jimenez told reporters, “The Comelec is standing by the results of the elections.”
Mr. Jimenez and Comelec Executive Director Jose M. Tolentino, Jr. testified on Monday before a joint congressional oversight committee reassessing the automated election system in light of the 2016 polls.
At the hearing, many representatives of polls watchdog groups and politicians raised irregularities observed in the conduct of the polls. Previous issues, such as the Comelec website hacking back in March 2016 and the discrepancy of data between the main and backup memory cards, were also discussed.
Mr. Tolentino assured that hackers would no longer be able to enter into the agency’s system now that the website is hosted by the Department of Information and Communications Technology (DICT). He also reiterated that the hacking did not affect the results of the elections.
Claims were also made by lawyer Glenn Chong of the Tanggulang Demokrasya regarding the selling of voters’ information by an election officer to candidates in Maragondon, Cavite.
In response, Mr. Jimenez said the photos Mr. Chong showed to support the claims were merely an election officer showing the voter verification system of the agency.
“I think there may have been a misappreciation of what he had. He thought it was something else but it wasn’t. We’ll see what happens. We’ll check the allegation, we took notes and then we’ll find out,” he said.
He also addressed the other glitches that happened during the 2016 national elections, saying “If you go back to the record, you’ll know at every point, it was answered. It’s really a question of what people or what certain people will accept as a valid explanation. But again, if you look at the explanations of Comelec, it doesn’t change. As far as the Comelec is concerned, there is one set of facts and that’s what we’re sticking to,” he said.
For his part, Senator Aquilino Martin L. Pimentel III, who chairs the Senate committee on electoral reforms and people’s participation, said the Comelec still needs a lot of explaining to do, noting the pattern of “surprises” that occurred days before election day in the previous polls.
“There are a lot of occurrences that Comelec still need to explain. Some may be glitches but we still need explanation from Comelec. Why are these happening?” he said. — Gillian M. Cortez and Camille A. Aguinaldo

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