Nation at a Glance — (04/02/18)
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
US, South Korea kick off joint military exercises after month-long delay
SEOUL — South Korea and the United States kicked off their annual joint military exercises on Sunday after they were delayed by about a month for the Winter Olympics and to help create conditions for a resumption of talks between North and South Korea.
The “Foal Eagle” field exercise, which usually involves combined ground, air, naval and special operations troops, will continue for a month.
The computer-simulated “Key Resolve” will be held for two weeks starting in mid-April.
A Pentagon spokesman said in March the two joint drills would involve about 23,700 American troops and 300,000 South Korean forces.
Military officials in Seoul have said the scale of the exercises would not go beyond those seen in previous years.
The “Foal Eagle” and “Key Resolve” exercises are usually held every year around March but they were postponed this year until after the PyeongChang Winter Olympics and Paralympics, which started in February and ended last month.
UNUSUALLY QUIET
North Korea, which has traditionally accused both South Korea and the US of practising invading the North during joint military drills, has remained quiet on the issue.
Last month, North Korean leader Kim Jong Un told a visiting South Korean delegation in Pyongyang that he “understands” the situation regarding the joint drills with the US, according to South Korea’s National Security Office head Chung Eui-yong, who had led the delegation.
The joint US-South Korea military exercises come roughly a month ahead of an April 27 summit between the two Koreas, their first in more than a decade.
Kim Jong Un and South Korean President Moon Jae-in are widely expected to discuss denuclearization of the Korean peninsula as well as improvement of inter-Korean relations at the upcoming summit. — Reuters
Hong Kong Catholics told to make leap of faith
HONG KONG — A looming deal between the Vatican and China is causing divisions between the Church hierarchy and Catholics in Hong Kong, which has long been a vital beachhead for the faith on the southern edge of officially atheist China.
Some senior Catholic clergy and Vatican officials have been urging groups of restive Hong Kong brethren in recent weeks to back a deal many fear will betray the so-called “underground” mainland Catholics that they have been supporting for years.
But some in Hong Kong fear any deal on the appointment of bishops in China could be a trap leading to greater persecution of underground believers as they come into the open, and ultimately to tighter Communist Party control of their religion.
Others, including some whose families fled the communist takeover of China in 1949, are angry the Vatican is prepared to do a deal even when some elderly bishops are in detention.
“Some just cannot believe the Vatican would do this, and it is shaking the foundations of their faith,” said one missionary priest with more than 20 years experience in parishes on both sides of the border.
“I fear some will turn away from the Vatican.”
The 12 million Catholics in China are split between followers of the state’s Catholic Patriotic Association, which operates independently of the Pope, and an underground community that swears loyalty to the Vatican.
Vatican officials say a historic agreement with China’s leaders on the appointment of bishops could help avoid further division between the two Catholic groups, even if broader diplomatic issues and human rights concerns are unresolved. Despite mainland reports that a pact is imminent, a Vatican source said on Thursday there is no timeline for a signing.
One former Hong Kong bishop, Cardinal Joseph Zen, has campaigned against the deal, saying he fears it is communist manipulation of the Church and has publicly sparred with Vatican officials. Another former bishop, Cardinal Tong Hon, has backed it.
Cardinal Zen said on Thursday that while he was still “heartbroken” over what he called the Holy See’s “betrayal” of Chinese Catholics, the unity of the Church should be a priority. Those without a strong opinion should “follow the line,” he said.
But if some turn away from the Church leadership, Cardinal Zen said he will not persuade them to change their mind. — Reuters
India’s electronics ministry considers duties on key smartphone component
MUMBAI/NEW DELHI — India is exploring new duties on the import of a key smartphone component, according to two government sources, the latest in a series of moves aimed at boosting domestic manufacturing in the world’s second-biggest smartphone market.
India’s Ministry of Electronics and Information Technology has mooted a proposal to levy a 10% duty on the import of populated printed circuit boards (PCBs), two government officials told Reuters this week, declining to be named as the matter is not public.
A PCB is a bed for key components such as processors, memory and wireless chip sets that are the heart of an electronic device.
Once populated with components, PCBs account for about half the cost of a smartphone.
Currently, most manufacturers of smartphones import PCBs which are already loaded with components to India and then assemble them locally.
If India’s finance ministry clears the recommendation on new duties, these could be levied in a matter of days, say government and industry sources, thus making populated PCB imports more expensive and pushing players to locally mount components instead.
India’s finance, electronics and trade ministries did not respond to requests for comment.
In the near term, such actions could spur players like Apple, Inc to widen their limited manufacturing and assembly capabilities in India and give an edge to those like Korea’s Samsung Electronics and homegrown firm Lava, which already have machines to mount components onto PCBs.
Apple did not immediately respond to a request for comment.
China’s OPPO is also putting up surface mounting machines in a new facility it is building in north India, a company executive told Reuters in a recent interview.
The local unit of Foxconn, one of the biggest global contract manufacturers of electronics, also has the capability, according to two industry sources.
Foxconn was not immediately reachable for comment.
“This will be a step in a good direction. This is how full-scale manufacturing happens,” said S.N. Rai, co-founder of Lava, adding the move will gradually also boost local production of components such as smartphone cameras and screens.
MANUFACTURING AMBITIONS
The move, if implemented, would be the latest step in Prime Minister Narendra Modi’s phased manufacturing program (PMP), a plan unveiled in 2016 to step up local value addition every year in the smartphone manufacturing space.
About 134 million smartphones were sold in India last year, the world’s second-biggest market after China.
Mr. Modi’s government has since raised duties on a range of low-value items such as batteries and chargers and on imported phones.
Any move to impose duties on populated PCBs, however, could risk a backlash from several countries and heighten trade war concerns.
China, Canada and the US among others last week raised concerns at the World Trade Organization around India’s imposition of duties on such devices.
In its annual budget last month, India’s government outlined higher duties on products including imported smartphones and a range of components.
Mr. Modi hopes to turn India into a global manufacturing hub in a bid to boost growth and create tens of millions of new jobs.
While his flagship “Make in India” drive is still a long way from delivering on lofty job promises, Mr. Modi has had some success with the PMP. Over 100 local factories currently assemble mobile phones and accessories like chargers, batteries, powerbanks and earphones in India, says tech research firm Counterpoint.
The PMP currently envisions local assembly of camera modules and printed circuit boards in the fiscal year beginning April 1, according to a public electronics ministry document.
“India has a plan to raise duties for all components bit by bit,” said Tarun Pathak an associate director with Counterpoint, adding this will gradually force more domestic manufacturing. — Reuters
China factory growth stronger than expected in March
BEIJING — Growth in China’s manufacturing sector picked up more than expected in March as authorities lifted winter pollution restrictions and steel mills cranked up production as construction activity swings back into high gear.
The official Purchasing Managers’ Index (PMI) released on Saturday rose to 51.5 in March, from 50.3 in February, and was well above the 50-point mark that separates growth from contraction on a monthly basis. Analysts surveyed by Reuters had forecast the reading would pick up only slightly to 50.5.
The findings add to a growing amount of data which suggest that China’s economy has carried more momentum into the first quarter from last year than analysts had expected, which should keep synchronized global growth on track for a while longer even as trade tensions build.
February’s print had been the lowest in one-and-a-half years, but many analysts suspected it was due to disruptions related to the long Lunar New Year holidays, not a sharp drop in consumption.
Indeed, the March survey showed manufacturers shifted into higher gear as usual as seasonal demand picked up at home and abroad.
The sub-index for output jumped to 53.1 from 50.3 in February, while total new orders rose to 53.3 from 51.0 and export orders climbed to 51.3 from 49.0.
The China Logistics Information Center, in a commentary on the PMI figures, said it expected first-quarter economic growth to be about 6.8%. Early this year, economists polled by Reuters were penciling in a fade to around 6.6%.
Large companies saw a modest pickup in growth, while small firms’ activity expanded marginally after shrinking in February.
Helping drive positive sentiment, exports have been better than expected in the first two months of the year, particularly for tech products, the fastest-growing segment of China’s industrial sector. Though a sub PMI for hi-tech manufacturing eased in March, growth remained solid.
However, a sharp escalation in trade tensions with the US is clouding the outlook for both China’s “old economy” heavy industries and “new economy” tech firms.
The Trump administration slapped hefty tariffs on steel and aluminium imports last week and then targeted China specifically with plans for additional tariffs of up to $60 billion of its goods, likely focusing on tech and telecommunications products.
“Stress tests have shown the new US tariffs will have a relatively small impact on Chinese steel. Chinese steel firms should not be overly worried and should focus on guaranteeing demand from the domestic market and our major exporters,” the China Steel Logistics Professional Committee said.
“But it’s worth noting that the amount of steel products we supply to US consumers through the global supply chain may well exceed China’s direct exports to the United States,” it added.
“China should proactively oppose US unilateral trade protectionism to maintain the global supply chain.”
In the first quarter, China’s steel companies defied expectations for a winter lull and continued to ramp up output in response to strong sales, while boosting borrowing, capital expenditure and hiring, a survey from the China Beige Book showed on Wednesday.
Production increased further after winter smog controls expired on March 15 in many areas. A separate PMI on the steel sector rose to 50.6 in March from 49.5 in February, the China Logistics Information Center said. — Reuters
Stocks to move in tight range as it establishes base
By Arra B. Francia,
Reporter
LOCAL SHARES may trade in a tighter range this week, with investors setting their eyes on March inflation and the second package of the tax reform program.
The Philippine Stock Exchange index (PSEi) lost 0.83% or 67.20 points to 7,979.83 last Wednesday, but managed to gain 0.11% on a weekly basis. This was supported by a 1.8% increase in the financials sector alongside a 1.6% uptick from industrials.
Trading also thinned prior to the Lenten break, with turnover dipping 10% to P7.8 billion on average. Still, advancers outpaced losers last week, 109 to 95.
With the main index moving around the 7,900 area, Eagle Equities, Inc. Research Head Christopher John Mangun said investors may finally start coming back into the market.
“The index has held the 7,900 support area which to me may potentially be a bottom for this correction. If it continues to hold this area in the following week, this may signal investors that this is a good time to start buying into this market again after being on the sidelines for the past couple of months,” Mr. Mangun said in a weekly report.
Online brokerage 2TradeAsia.com, meanwhile, noted that the index would have to build a strong base at the 8,000 level in order to cement its run toward new highs. The company said leads for the week include expectations on March inflation.
“At home, attention will revert to March inflation and possibilities from monetary authorities to consider adjusting their policy stance in their next meeting. It should be noted however, there are tools available, including reserve requirement adjustment,” 2TradeAsia.com said in a weekly market note.
Investors are also expected to look at the second package of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which will put the spotlight on businesses. The second phase of the tax reform program, as per the draft by the Department of Finance, seeks to cut corporate income taxes (CIT) to 25% from 30%, while also calling to repeal around 30 special laws that grant incentives to investors.
TRAIN 2 likewise aims to rationalize tax incentives under the Philippine Economic Zone Authority.
“Investors will also heed for sequels to government’s (TRAIN 2), specifically on CIT and the Finance’s stance in present and subsequent investment incentives. This crucial package must be balanced carefully, to ensure continuity of long-term direct investments in the Philippines, especially for capital-intensive undertakings,” 2TradeAsia.com said.
For this week, Mr. Mangun placed the PSEi’s support at 7,792 up to 8,090, while resistance is at 8,360 to 8,465.
Are Filipino women having fewer children?
The recent decades saw developing countries experiencing the so-called “demographic transition” — a transition from high birth and death rates to lower birth and death rates that are seen in more developed countries.
This can be seen through the total fertility rate (TFR), a demographic indicator that estimates the average number of live children that a woman would have over her childbearing years of age 15-49 based on current birth trends.
To illustrate, estimates by the United Nations put the TFR of the Philippines at 7.42 live births per woman in the 1950-1955 period, higher than the Southeast Asian average of 5.93 live births per woman.
While the Philippines managed to bring down TFR by 58.9% to 3.05 live births per woman in the 2010-2015 period, this is still above the regional average of 2.35 births per woman as other countries saw faster decelerations in their TFRs during those decades.
The Philippine TFR is also above the 2.1 births per woman replacement rate i.e. the rate at which women give birth to babies just enough to sustain population levels (assuming normal boy-girl sex ratio and low levels of mortality). — BusinessWorld Research / Christine Joyce S. Castañeda
Data Source: World Population Prospects: The 2017 Revision (United Nations, Department of Economic and Social Affairs, Population Division 2017)
Q4 home price hike biggest in three quarters
HOUSE PRICES rose faster in 2017’s last three months from a year ago, marking the biggest increase in three quarters as duplex and condominium prices surged by double-digit pace, according to data the Bangko Sentral ng Pilipinas (BSP) released on Wednesday.
Prices rose by 5.7% year-on-year from October to December, clocking the fastest pace since a 6.5% climb in 2017’s first quarter, according to the latest BSP residential real estate price index (RREPI). The 2017 fourth-quarter pace compares to the preceding three months’ 1.8% and the year-ago 3.3% rise.
On average, housing prices rose by 3.6% for the entire 2017, roughly flat from 2016.
The RREPI measures the average change in home prices across building types and locations based on data from housing loans granted by universal, commercial, and thrift banks, helping the central bank monitor the real estate market and watch out for potential bubbles. The BSP has been monitoring the sector’s data since the fourth quarter of 2015.
By structure, duplex prices rose by 17.3% from a year ago, followed by condominiums’ 14.2%, townhouses’ 8.1% and single-detached or attached houses’ 0.3% drop.
For full-year 2017, however, duplex prices still dropped 2.7% overall, while condominium units led increases at 6.5%, followed by townhouses’ 4.7% and single-detached/attached houses’ 1.8%.
Costs to acquire homes shot up faster in Metro Manila than in the provinces in 2017’s final three months. Prices in the capital rose by 8.8%, while those outside the region went up by three percent, according to central bank data.
In Metro Manila, the prices of duplex units surged 138.1% year-on-year, while those of condominiums climbed 15.2%. At the same time, prices of single-detached/attached houses dropped 9.9%, while those of townhouses fell by 8.6%.
Full-year 2017 saw Metro Manila house prices climb 4.8% year-on-year, fueled by a 26.8% increase of duplex prices, as well as condominiums’ six-percent, single-detached/attached houses’ 1.5% and townhouses one-percent increments.
In the provinces, townhouses led prices increases with a 20.1% hike, followed by condominium units’ 8.4%, single-detached/attached houses’ 0.8% and duplexes’ 0.3%.
Overall house prices in the provinces grew 2.7% last year as condominium prices grew 10.5% and those of townhouses and of single-detached/attached houses rose 6.1% and two percent, respectively. These increases, however, were partly offset by a 5.9% drop in the prices of duplexes.
Roughly 80% of home loans granted by banks financed the purchase of new units, the BSP said, with more than half used to acquire condominium units.
Over a third of loans were used to buy single detached units, while townhouses accounted for 7.3%.
More than half of the loans were secured in Metro Manila, followed by the Cavite-Laguna-Batangas-Rizal-Quezon or Calabarzon region (23.6%), Central Luzon (6.4%), Central Visayas (4.7%) and Western Visayas (4.7%).
Central bank officials have noted sustained strong demand for commercial and living space in the Philippines, showing that price increases are driven by actual demand and allaying fears of a bubble.
A bubble forms as a perceived rising demand for houses drives developers to build more units, and is said to “burst” as consumption stagnates and causes an abrupt drop in prices that could jolt exposed banks.
The BSP limits a bank’s real estate exposure to 20% of its total loan portfolio.
Philippine banks handed out P1.801 trillion in real estate loans last year, with home loans accounting for a third at P608.142 billion, according to latest available BSP data. — Melissa Luz T. Lopez
Money supply growth picks up in February
GROWTH of money supply picked up in February as bank lending grew by nearly a fifth, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.
More money circulated in the Philippine economy as liquidity grew by 13.5% last month, faster than the 12.8% clocked in January.
Domestic liquidity, or M3, is the broadest measure of money in an economy. It grew to P10.724 trillion in February, with the growth marking the fastest pace since November 2017. Month on month, money supply rose by 1.5%.
Funds drawn from local sources expanded by 13.8%, picking up from January’s 13.6% amid robust bank lending, the central bank said.
Net claims on the central government grew 3.7%, steady from the previous month’s 3.6%.
At the same time, net foreign assets grew by a slower 4.6% versus January’s 4.9% when expressed in peso terms. This came on the back of money sent home by overseas Filipino workers as well as revenues from the business process outsourcing industry.
Foreign assets maintained by banks also grew amid bigger loans and investments in debt papers.
Still, the BSP said the faster money supply growth remains “consistent” with its outlook for inflation and economic activity.
The current administration is targeting a 7-8% growth this year from 2017’s 6.7%, as increased state infrastructure spending adds to the impetus provided by robust household spending that accounts for about 70% of the economy.
CREDIT GROWTH
Bank lending also picked up at sustained double-digit pace in February, the central bank said.
Credit growth clocked 19.5% that month, coming from January’s downward-revised 19% climb.
Computed to include reverse repurchase agreements availed by banks, lending slowed to 17.6% from 18.4% a month prior.
Some 88.4% of loans went to firms in the production sector, with growth picking up to 18.6% last month compared to January’s 18% year-on-year increment.
Real estate accounted for bulk of loans at 17.3% of the total in February, growing 18.1% year-on-year.
The segment “wholesale & retail trade, repair of motor vehicles and motorcycles” came next with a 13.5% share, growing by 18.5%.
Manufacturing was third at 13% with 10.7% growth, while “electricity, gas, steam & air-conditioning supply” accounted for 11.7% and logged a 28.5% increase.
The biggest increase was recorded in the “professional, scientific and technical activities” at 54.6%, although this segment accounted for just 1.1% of the total, while mining and quarrying, which accounted for just 0.7% of total loans in February, increased by 53.2%.
Growth in consumer loans softened last month but remained relatively faster at 19.9% compared to January’s 20.2% year-on-year increase. The BSP said a slower rise in car loans and declines in other types of retail lending offset increases in credit card and salary-based borrowings that month.
The central bank keeps a close watch on liquidity and bank lending as part of its mandate of maintaining price and financial stability, at a time of planned cuts in bank reserves and as some watchers flag potential overheating in the economy due to rapid loan growth.
Monetary authorities maintained that credit growth isn’t alarming just yet, as it simply mirrors increased activity in the country. — Melissa Luz T. Lopez
Excise tax take surges, beats target on increased rates
EXCISE TAX collections surged by nearly three-fourths in the first two months of the year, driven by bigger taxes on cars, tobacco, alcohol and other products especially after a new law raised rates on various items as the year began, the Department of Finance (DoF) said in a statement on Wednesday.
“Total excise tax collections imposed on various products for the January-February period amounted to P44.49 billion as against the target for this period of P38.53 billion, or an excess of P5.95 billion,” the department said.
“Compared with actual collections of P25.53 billion in 2017 for the same period, this represented an increase of 74.23%.”
Republic Act No. 10963 — or the Tax Reform for Acceleration and Inclusion (TRAIN) law — reduced personal income, estate and donors tax rates, but removed some value-added tax exemptions; hiked excise tax rates for automobiles, minerals, tobacco and fuel; as well as imposed new excise levies on sugar-sweetened beverages and cosmetic procedures.
Excise tax collections accounted for 15.85% of the overall Bureau of Internal Revenue (BIR) take in the first two months of the year that totaled some P280.69 billion, 10.8% more than the P253.25 billion recorded in the same period in 2017 and 16% more than a P242.137-billion target.
“At the moment, we are collecting more ’sin’ taxes than projected. This is a good sign,” Finance Secretary Carlos G. Dominguez III was quoted in the statement as saying.
Broken down, tobacco excise taxes reached P24.04 billion in January to February, a 74.3% increase from P13.79 billion last year, breaching a P14.93-billion target by 61%, according to the DoF.
Mr. Dominguez noted that the sale of Mighty Corp.’s assets to Japan Tobacco International — after the government caught the former evading taxes — enabled the BIR to collect P2-billion taxes more per month. He said that the international tobacco maker is expected to pay some P40 billion in excise taxes this year, or about a third of the P118 billion in projected annual revenue from tobacco products this year.
“Cigarette manufacturing has always been a troublesome sector as far as collecting proper taxes is concerned. With new tools for surveillance, documentation of tax payments, and cooperation between tax and customs authorities, this should be a smaller problem in the future,” he added.
Collections from alcohol excise taxes meanwhile reached P9.82 billion, surpassing its P8.31-billion goal by 18.17%.
From automobiles, the BIR raked in P810.31 million, 25.85% over the P643.86-million target, while taxes on minerals totaled P464.23 million, 50.9% more than the P307.64-million target.
Moreover, taxes on petroleum product sales generated P4.79 billion, sugar-sweetened beverage sales yielded P4.53 billion and non-essential goods, P15.65 million.
The Development Budget Coordinating Committee in its Dec. 22 meeting projected that the TRAIN law would contribute some P82.3-billion additional revenues this year.
“I look forward to more accomplishments similar to the case of Mighty Corp. These accomplishments highlight the vigilance and professionalism of our revenue agencies.”
The BIR is tasked to collect P2.039 trillion in taxes in 2018, 11.48% more than the P1.829-trillion goal it initially set early last year. If realized, this would also be 14.6% more than the P1.779 trillion collected in 2017. — Elijah Joseph C. Tubayan
Yields on term deposits end mixed
By Melissa Luz T. Lopez, Senior Reporter
YIELDS on term deposits saw mixed movements on Wednesday ahead of a break from trading, matching the reduced auction volume offered by the central bank.
Banks wanted to place as much as P90.705 billion under the term deposit facility (TDF) this week, slightly higher than the P90-billion offer made by the Bangko Sentral ng Pilipinas (BSP).
The figure declined from the P128.211 billion in offers made during the March 21 auction, which was also higher than the P110-billion auction size.
Reduced auction volumes for the two-week and one-month tenors led to a slight oversubscription.
Players wanted to park P46.485 billion under the seven-day tenor, which settled below the P50 billion placed on the auction block and slipping from the P72.293-billion demand seen a week ago. As a result, the average yield also slid to 3.1651% from 3.1768% previously.
Meanwhile, the BSP’s P30-billion offering for 14-day deposits was met by P32.133-billion tenders. This compares to the P35.955-billion bids the previous week, back when the auction amount stood at P40 billion.
Rates fetched moved higher to 3.2788% from 3.2451% a week ago.
The 28-day tenor saw the same results, with the P10-billion auction amount matched by offers worth P12.087 billion versus the P19.963 billion demand last week. This pushed yields to 3.4232% from 3.3416% during the previous auction.
The TDF is the central bank’s main tool to mop up excess funds in the financial system, especially after the regulator reduced the reserve requirement ratio imposed on universal and commercial banks to 19% of deposits which took effect this month.
BSP Governor Nestor A. Espenilla, Jr. has said that the adjusted volumes for term deposits is temporary, in anticipation of tepid demand for long-term placements ahead of this week’s Holy Week break. He noted that banks “want to hold more cash” over the holiday in order to service client withdrawals and purchases.
Financial markets will be closed on March 29-30 in observance of Maundy Thursday and Good Friday, as observed by Catholics. Trading resumes on April 2.
By next week, the BSP will be offering P50 billion in the seven-day tenor, P40 billion for the 14-day deposits, and P20 billion in P28-day papers, returning to the volumes seen during the March 21 week, which reflects the BSP’s expectations of a recovery in demand following the Lenten break.
Espinosa, others summoned as DoJ sets new hearing on drug case
THE Department of Justice (DoJ), in an order dated March 22 and released on Wednesday, has subpoenaed alleged drug lord Peter Go Lim, confessed drug trafficker Rolan “Kerwin” Espinosa, convicted drug lord Peter Co, and some 20 other co-accused in a drug complaint filed by the Philippine National Police (PNP) to appear at a hearing set on April 12.
Also tasked by Department Order No. 159 to take part in the hearing is the PNP’s Criminal Investigation and Detection Group (CIDG), which filed the complaint accusing the said respondents of violation of Republic Act 9165 (the Comprehensive Dangerous Drugs Act of 2002).
The order signed by Justice Secretary Vitaliano N. Aguirre II also said this case has been assigned to a new panel of prosecutors, made up of Senior Assistant State Prosecutor Juan Pedro C. Navera, Assistant State Prosecutor Anna Noreen T. Devanadera, and Prosecution Attorney Herbert Calvin D. Abugan.
DoJ has been under fire after a previous panel had dismissed the charges against Espinosa and company. This led to a recommendation by the Presidential Anti-Corruption Commission (PACC) on Tuesday to have members of that panel, Assistant State Prosecutors Michael John M. Humarang and Aristotle M. Reyes, suspended.
In their statement on Wednesday, Messrs. Humarang and Reyes noted in part, “The subject case against the respondents is not yet final as it is still undergoing review and further preliminary investigation by the new panel of prosecutors, and as it is, there is still no definite finding on whether the respondents would be absolved of the charges.”
“Given that the case under consideration has not yet attained finality, the recommendation of the PACC is somehow still premature,” they also said.
The statement noted further: “During the preliminary investigation, the complainant was given all the opportunity to present its case. Under the present rules, we have no authority to procure evidence on complainant’s behalf. We stress that we cannot just rely on the inconsistent and contradictory statements of complainant’s lone witness. Additional and credible evidence should have been submitted by the complainant to strengthen its case and justify the filing of criminal charges against the respondents in court.”
For his part, Mr. Aguirre said: “The complaint is without basis because they (PACC) do not know the workings and procedure of the DoJ when conducting preliminary investigation.” — D.A.M. Enerio