Nationwide round-up

April 9, 2019 | 8:00 pm

Palace dares PCIJ, Sereno to file charges vs Duterte family

MALACAÑANG ON Tuesday said former chief justice Maria Lourdes P.A. Sereno and the Philippine Center for Investigative Journalism (PCIJ) “should file appropriate charges if they believe that the increases in the income of President Rodrigo R. Duterte’s family are ill-gotten wealth.” “The law requires public officials to file their Statement of Assets, Liabilities and Net worth (SALN). PRRD already did that,” Presidential Spokesperson Salvador S. Panelo said in a statement he forwarded to BusinessWorld via phone message on Tuesday. He added: “The law does not require the filer to explain the increases in their income, if there are. If PCIJ and (Ms.) Sereno believe that the increases are ill-gotten wealth, they should file the appropriate charges instead of nitpicking and using media to create intrigue and put him in a bad light.” Ms. Sereno has said that Mr. Duterte should explain his family’s wealth. PCIJ Executive Director Malou Mangahas, for her part, said in a statement on April 7: “PCIJ had wished only for the Dutertes to offer clear, direct, straightforward replies to our queries. Instead of blaming PCIJ for the report. The PCIJ and Ms. Sereno were sought for comment but have yet to reply as of this posting. — Arjay L. Balinbin

PDEA director denies protecting Michael Yan

PHILIPPINE DRUG Enforcement Agency (PDEA) Director General Aaron N. Aquino denied the accusation of dismissed cop Eduardo P. Acierto that he was protecting former presidential adviser Michael Yang, whom he had alleged to be linked to the illegal drug trade. “Acierto’s claim that I am a protector of Michael Yang is a blatant lie. His accusation is completely baseless. I may say that this is the work of a desperate man,” said Mr. Aquino in a statement on Monday evening. He added that he is open to any probe from other law enforcement and investigation agencies. Last week, Mr. Acierto claimed that President Rodrigo R. Duterte, together with senatorial bets Christopher T. Go and Ronald M. Dela Rosa, and Mr. Aquino are “protecting” a drug group led by Mr. Yang. The PDEA chief also said that the regional offices of his agency are still investigating Mr. Yang. “How can he say I am a protector when I initiated investigations on Michael Yang activities from Day 1 that I was told about it? In fact, until now my Regional Directors are still gathering data about Michael Yang,” he said. — Vince Angelo C. Ferreras

Faces of valor

April 9, 2019 | 7:59 pm

THE PHILIPPINES commemorated the 77^th Araw ng Kagitingan yesterday, April 9, an annual remembrance of the valor of those who suffered the Bataan Death March during World War II and for recognizing the sacrifices and bravery of all Filipino war veterans around the country.

Over 4,000 caught in anti-littering campaign

April 9, 2019 | 7:58 pm

trash THE METROPOLITAN Manila Development Authority (MMDA) reported on Tuesday that 4,316 violators were apprehended during its anti-littering operations in the first quarter of the year. The MMDA Health, Public Safety and Environmental Police Office said of the total, 965 litterbugs were caught in Jan., 1,053 in Feb., and 2,298 March. MMDA said the common materials thrown by offenders were candy wrappers, cigarette butts, papers, and plastics. Violators, who will either pay a fine of P500 or render an eight-hour community service, are given three days to settle their penalties. Those who fail to do so will be sent a summon, and those who ignore this will be included in the National Bureau of Investigation alarm list. — Vince Angelo C. Ferreras

Families of 14 farmers killed in Negros Oriental should file charges, says Malacañang

April 9, 2019 | 7:57 pm

MALACAÑANG ON Tuesday said the families of 14 farmers killed in police operations in Negros Oriental “should file charges.” Presidential Spokesperson Salvador S. Panelo said this in response to the findings of a human rights groups’ probe that the farmers, suspected by authorities to be supporters of the communist movement, were “summarily executed.” “We assure the families of the fourteen farmers who died during the simultaneous police operations in Negros Oriental that President (Rodrigo R.) Duterte will not allow police brutality nor will he tolerate police abuse,” Mr. Panelo said in a statement on Tuesday. He added: “The Palace is waiting for the official copy of the report on the investigation, which the Philippine National Police is now currently doing with a team from its national headquarters now in Negros Oriental to start the probe.” He further said that there is a “presumption of regularity on the police action as the operations were backed by search warrants.” “The families, however, can always file criminal charges against the police officers, and they should if the circumstances warrant, as this is the proper and legal recourse available to them,” Mr. Panelo said.— Arjay L. Balinbin

10 Ceres buses suspended after accident that killed 3

April 9, 2019 | 7:55 pm

THE LAND Transportation Franchising and Regulatory Board-Western Visayas (LTFRB-6) has put on 30-day suspension 10 Ceres bus units operated by Vallacar Transport Inc. on the Iloilo-Antique route following the tragic accident that killed three people and injured seven in Hamtic, Antique last April 5. LTFRB-6 Regional Director Richard Z. Osmeña said they are now considering the issuance of special permits to other bus companies to cover the route given the expected influx of travelers during the Holy Week holiday. “I am thinking of talking to other bus companies to give them special permits to make augmentation to buses para hindi apektado ang biyahe (so it won’t affect travel),” he said. Meanwhile, LTFRB will be conducting an investigation on the accident. The Ceres bus, with 11 passengers, was heading to Antique from Iloilo when it fell into the 30-meter ravine in Barangay Igbucagay, according to Police Major Adolfo Pagharion, Hamtic municipal police chief. “When we interviewed the driver, he told us that he lost the brake resulting in mechanical failure. But according to some of the passengers, the bus was traversing the road very fast before plunging into the ravine,” Mr. Pagharion said. Vallacar Transit, in a statement, assured full support and immediate assistance to the victims’ families and all the injured passengers. The company also said they would conduct their own investigation and take appropriate actions. The three who died were Evangelyn Chicano, public school teacher Vivien Omanio, and her son Earl Aron, who just graduated from senior high school. — Emme Rose S. Santiagudo

CARD Bank opens 94th branch in Masbate, eyes 6 more this year

April 9, 2019 | 7:55 pm

CARD BANK, Inc., a member of the CARD Mutually Reinforcing Institutions (CARD MRI) group, is planning to have a network of 100 branches by the end of the year following the recent opening of its 94^th in San Fernando, Masbate. “The new branch in Masbate is our way of providing direct access to financial and social development programs to the communities in San Fernando,” Dolores M. Torres, senior management adviser of the bank, said in a statement sent to BusinessWorld. Ms. Torres said the newest branch was in response to the request of clients who had to endure hours of travelling by boat or by motorcycle to other branches within the province. “We have almost 17,000 clients in the municipality. All of them endure travelling via boat or habal-habal (motorbike) just to make banking transactions with us,” she said. Aside from the San Fernando branch, CARD Bank already has branches in Aroroy, Dimasalang, Cataingan, and Masbate City. “We have seen the development of our clients in the area. Their businesses are already viable and it’s high time for us to respond closely to their growing financial and social development needs,” Ms. Torres said. CARB Bank currently has a client base of almost 2.8 million nationwide and assets of P15.77 billion. — Carmelito Q. Francisco

Chinese-funded drug rehabilitation center opened in Agusan del Sur

April 9, 2019 | 7:54 pm

A DRUG treatment and rehabilitation center in Agusan del Sur, built with funding from the Chinese government, was turned over to the local government Monday, the Chinese Embassy in Manila announced. Located in the town of San Francisco, the 6,750-square-meter facility has a 150-bed capacity with an administration and clinic building. It also has a multi-purpose covered court, dormitory buildings, and visitors’ house in the center. “It is a strong demonstration that the Chinese government will accomplish every commitment to help the Philippines, our friendly neighbor,” Economic and Commercial Counsellor Jin Yuan of the Chinese Embassy in Manila is quoted by state-run Xinhua News Agency. Philippine Health Undersecretary Roger P. Tong-An, who attended the inauguration and turn-over ceremony, said, “This is the first drug rehab center in Agusan del Sur province. Thanks for the support from the Chinese government and we are really happy about this project.” For his part, Agusan del Sur Gov. Adolph Edward G. Plaza said the center will allow the local government to better address the illegal drug problem and provide better help to the drug dependents. “We would like to cooperate with our counterparts in DoH (Department of Health) to address this issue,” he said.

Abu Sayyaf member involved in Jolo church bombing killed in military operations

April 9, 2019 | 7:54 pm

ONE OF the Abu Sayyaf Group (ASG) members suspected to have facilitated the bombing of a cathedral in Jolo, Sulu last Jan. 27, identified as Barak Ingog, has been killed following an encounter with government forces in a remote part of the island province, the Western Mindanao Command (WestMinCom) reported late Monday. WestMinCom said troops under the Joint Task Force (JTF) Sulu encountered about 40 Abu Sayyaf under Almujer Yada at Barangay Bangkal in Patikul town late Monday afternoon, where Ingog and another identified as Nasser Sawajaan, nephew of ASG leader Hatib Hajaan Sawadjaan, were also killed. “Three of our troops were also slightly hurt due to shrapnel wounds but they are now fine,” said Brig. Gen Divino Rey C. Pabayo Jr, commander of JTF Sulu. “We also received information from residents in the area, who are also monitoring and reporting the whereabout of the bandits in order to rid their presence in the community, that they overheard that another high value ASG sub leader is missing and probably dead, which is subject to the clearing and pursuit operations of our troops right now,” Mr. Pabayo added. The military has been undertaking intensified pursuit operations against the kidnap-for-ransom gang ASG, which has pledged allegiance to the Islamic State, following the twin bombings at the Cathedral of Our Lady of Mt. Carmel in Jolo, where 23 people died and 95 others were injured.

Nation at a Glance — (04/10/19)

April 9, 2019 | 7:53 pm

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

Gov’t scrambles vs new tax cheat scheme

April 9, 2019 | 12:33 am

THE BUREAU of Internal Revenue (BIR) is teaming up with the Trade department in the ongoing crackdown on illegal cigarettes after uncovering a new scheme involving recycled tax stamps.

In a statement, Finance Secretary Carlos G. Dominguez III said he has instructed BIR to seek the help of the Department of Trade and Industry (DTI) in going tobacco traders using this new modus operandi to evade taxes.

This developed after the BIR reported that some entities have been buying tax stamps from used cigarette packs from the public in exchange for a can of sardines or pack of noodles which they describe as a “promo.”

BIR Deputy Commissioner for Operations Arnel S.D. Guballa explained that the erring cigarette traders will then attach the old tax stamps on packs of illegal cigarettes.

“You better talk to the DTI and tell them that can’t be allowed,” Mr. Dominguez told BIR Commissioner Caesar R. Dulay during a recent executive committee meeting.

The Finance chief is also set to meet with officials from Philip Morris, Japan Tobacco Inc. and other cigarette companies, together with those handling the Internal Revenue Stamps Integrated System (IRSIS) to crack down on this new scheme.

The excise stamps are used as proof that taxes on cigarettes have been paid. The stamps have special chemicals and quick response (QR) codes by which their legality can be verified using a reader.

In 2017, authorities discovered a local cigarette manufacturer using fake tax stamps which allowed the maker to sell its products cheaper, which then led to a P30-billion tax settlement.

Excise tax on cigarette packs has risen to P35 per pack due to Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act that took effect in January last year.

The tax will rise to P37.50 per pack by 2020 and to P40 by 2022, and the rate will increase by four percent annually starting Jan. 1, 2024.

Cigarettes are also subject to a 12% value-added tax.

The recycling of tax stamps has emerged as the new strategy to skirt these higher taxes.

Prior to this, BIR officials had discovered factories that illegally produced cigarettes and printed their own tax stamps.

The Department of Finance is lobbying to further raise taxes on cigarettes, saying that doing so could push over three million Filipinos to quit smoking and collect P30.1 billion in additional revenues besides. The department is backing the bill of Senator Emmanuel D. Pacquiao that proposes a nine percent increase in the tax rate for the succeeding years, which will also raise P30.1 billion in additional revenues.

Latest estimates show that cigarette consumption could fall by as much as 16.8% if they raise the excise tax to P60 per pack.

Mr. Dominguez had also asked the help of the Department of the Interior and Local Government in apprehending local executives found coddling manufacturers of illicit cigarettes. — Melissa Luz T. Lopez

SEC drafts rules for revival of expired companies

April 9, 2019 | 12:32 am

By Arra B. Francia
Reporter

THE CORPORATE REGULATOR will allow companies whose incorporation papers have expired to apply for revival, following approval of a perpetual corporate term under Republic Act No. 11232, or the Revised Corporation Code of the Philippines.

In a notice posted on its Web site on Monday, the Securities and Exchange Commission (SEC) said it is inviting interested parties, market participants and the investing public to submit their comments on its proposed Guidelines on the Revival of Expired Corporations.

This is in line with the grant of a perpetual corporate term for existing and future corporations under RA 11232, which President Rodrigo R. Duterte signed into law on Feb. 20.

“The guidelines will help clarify how they can petition to revive their previously expired certificate of registration,” SEC Chairman Emilio B. Aquino said in a mobile phone message.

“We have to resolve many cases in the past where, by sheer oversight, they failed to extend their companies’ term of existence,” Mr. Aquino explained.

“It caused grave consequences to their firms, like contending with tax clearances and all. Thus, among the amendments legislated is to grant SEC authority to approve revival of their terms, since direction is towards perpetuity of companies.”

The proposed guidelines will allow companies to submit a petition to revive corporate existence, so long as the petition was approved by a vote of at least two-thirds of outstanding capital stock.

The draft rules provide that the petitioner must state changes in the composition of its stockholders, or members for non-stock corporations, since the time its incorporation papers have expired.

The petitioner must also have no intracorporate controversies at the time of the filing of the petition.

Revival of the firm’s corporate term must also not prejudice third persons or any government agency.

The petitioner must submit several documents to the SEC alongside its petition for revival, including its certificate of incorporation and articles of incorporation, a general information sheet as of the date of the expiration of its corporate term, as well as its audited financial statement as of and for the year immediately preceding the expiration of its corporate term, among others.

The draft rules exclude companies whose certificates of incorporation have been revoked, as Section 11 of the revised corporation code provides only for the revival of a “corporation whose term has expired” not terminated.

A company whose certificate of registration has been suspended and has expired may be allowed to revive its corporate existence. Such firm has to file a proper petition to lift its suspension and settle corresponding penalties. The firm may then file for the revival of its corporate existence.

Banks, banking and quasi-banking institutions, pre-need, insurance and trust companies, non-stock savings and loan associations, pawnshops and corporations engaged in money service businesses whose terms have expired may apply for revival, provided that they have secured the favorable recommendation of the government agency governing them.

Once approved by the commission en banc, the firm will be issued a Certificate of Revival, which shall provide for a “perpetual term of existence unless a specific corporate term is stated by the applicant corporation in the verified Petition for Revival.”

The SEC earlier said that a perpetual term of existence will eliminate the possibility of legitimate, productive businesses from prematurely closing down just because they failed to renew their registration.

The commission is accepting comments for the draft guidelines until April 26.

Meralco bills rise for 3rd month in April

April 9, 2019 | 12:31 am

CUSTOMERS of the country’s biggest electricity distributor will have to pay more for the third straight month in April due to an increase in generation charge, which accounts for more than half of a household’s bill.

The Manila Electric Co. (Meralco) announced in a press release on Monday that the overall electricity rate will increase by P0.0633 per kilowatt hour (/kWh) to P10.5594/kWh from P10.4961/kWh in March.

This will result in bill increases of P13 for a household consuming 200 kWh which is Meralco’s biggest residential customer segment, as well as P18, P24 and P30 for those using 300 kWh, 400 kWh and 500 kWh, respectively.

“From P5.5973/kWh last month, generation charge for April slightly went up to P5.6322/kWh, an increase of P0.0349/kWh,” the company said, referring to the bill charge reflecting what it paid for power purchases in the March supply month.

The hike in generation charge was due to a P1.2815/kWh increase at the Wholesale Electricity Spot Market (WESM) — which accounted for 10.4% of Meralco’s supply — due to “tighter supply conditions in the Luzon grid.” The National Grid Corporation of the Philippines (NGCP) placed the Luzon grid under “yellow alert” — amid thin reserves — from March 5 to 8 as some power plants were affected by outages and de-ration.

Electricity from Independent Power Producers — which provided 41.4% of Meralco’s supply — edged up P0.0881/kWh due to a weaker peso-dollar exchange rate given that 95% of IPP charges are dollar-denominated.

On the other hand, charges from Power Supply Agreements — which accounted for 48.2% of Meralco’s supply — decreased by P0.2796/kWh.

Meanwhile, the Energy Regulatory Commission approved a P0.0337/kWh reduction in Feed-In Tariff Allowance, while a P0.0163/kWh adjustment was made on Universal Charge-Stranded Debts leading to a net reduction of P0.0174/kWh.

Transmission charge, taxes and other charges to residential customers inched up P0.0458/kWh, Meralco said, adding that its “distribution, supply, and metering charges, meanwhile, have remained unchanged for 45 months, after these registered reductions in July 2015.”

The Energy department said last month that it expected Luzon to post peak demand of 11,403 megawatts (MW) in May. The March-June period, when the country will experience a “weak” El Niño, is expected to see a 30% reduction in hydropower capacity to 983-1,776 MW.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Vincent Mariel P. Galang