KHARTOUM — The Sudanese government will make 2.13 billion euros ($2.44 billion) over a 20-year period from a deal with Philippine port operator International Container Terminal Services, Inc. (ICTSI) to expand port capacity, a government official said.
The deal aims to more than triple capacity at Port Sudan’s South Port Container Terminal, Ali Ahmed Abdelrahim, head of a technical committee in charge of contracting the project, told reporters on Wednesday.
The 20-year contract will see ICTSI operate, manage and develop the port, the company said last month, with the handover expected to be completed by the end of March.
Sudan has received 410 million euros from ICTSI out of a 530 million euro downpayment, Mr. Abdelrahim said.
This is the first time a Sudanese official has publicly acknowledged the deal, which was signed on Jan. 3.
The port’s workers staged a strike last month “to refuse the privatization…to protect the country’s resources,” the head of an opposition trade union said at the time.
Sudan’s President Omar al-Bashir, who is facing the most significant street challenges of his 30-year rule, said last month that Sudan would look into the contract to ensure that it was a fair contract for the Sudanese people.
ICTSI said in a statement sent to Reuters last month that local stakeholders’ concerns were being addressed by Sudan Port Corporation and the Government of Sudan.
Eighty-five percent of all goods imported to Sudan come through the South Port Container Terminal.
The government expects the port to generate 3.339 billion euros in revenue over the contract’s 20-year duration, Mr. Abdelrahim said. Sudan’s share will be 2.13 billion euros and ICTSI will take the remainder. The port makes 91 million euros annually, he added.
The government aims to raise the port’s capacity from handling 480,000 containers a year to 1.5 million.
The second highest bidder in the tender was the UAE’s Dubai Ports, Abdelrahim said.
The contract with ICTSI stipulates that no container ports are to be built in Sudan for seven years, Abdelrahim said. — Reuters
PHILIPPINE BUSINESS Bank (PBB) is set to raise P10 billion through peso-denominated bonds to fund its business operations.
In a regulatory filing, the Yao-led lender said it will issue P10 billion worth of peso-denominated bonds.
The additional capital to be raised via the issuance will be used for “general corporate purposes,” the bank added.
PBB Chief Executive Officer Rolando R. Avante said via text that the savings lender plans to initially offer P3 billion, which will constitute the first tranche of its P10-billion bond program.
“We’re in the final planning stage [already]. Timing of the issue will be market situation dependent,” Mr. Avante told BusinessWorld yesterday.
The savings bank is one of the lenders that recently tapped the local bond market after the Bangko Sentral ng Pilipinas (BSP) relaxed its rules on banks’ fundraising activities.
Circular No. 1010 issued by the central bank in August 2018 simplifies the process for lenders looking to raise funds via bonds, doing away with having to secure approval from them.
The reform is part of streamlined rules meant to deepen capital markets.
Last year, PBB announced it is looking at raising up to P10 billion in long-term negotiable certificates of deposit, which will allow the bank to “capitalize on attractive lending opportunities as the Philippine economy continues to expand.”
When sought for comment, Mr. Avante said the LTNCD issuance will “depend if the market condition warrants and a need arises.”
Earlier this year, PBB said its merger with Insular Savers Bank, Inc. (A Rural Bank) is expected to be completed before June 30, subject to the approval of the Securities and Exchange Commission.
PBB posted a P262.09-million net income in the third quarter of 2018, up 162.1% from the previous year, boosted by the robust growth of its core businesses.
Shares in PBB closed unchanged at P13.86 each on Thursday. — Karl Angelo N. Vidal
DEUTSCHE BANK AG’s merger talks with Commerzbank AG have put its 10,000 U.S. workers on edge, three employees told Reuters, with some concerned a deal could pressure Deutsche to further shrink or even dispose of its U.S. businesses.
The future of the bank’s U.S. trading and investment banking presence had already been in question, with some shareholders calling for further cuts on top of ones announced last year, and speculation has intensified following confirmation of the merger talks on Sunday.
The German government, which has a 15 percent stake in Commerzbank, is expected to retain a stake in the combined business if a deal materializes. Some employees fear that could pressure the bank to focus on its home market.
Both banks have cautioned that the outcome of the talks remains uncertain, and the process could drag on for months. In the meantime key employees could decamp to rival Wall Street banks and hedge funds, further weakening a business that has under performed for years. Several executives have left the bank’s U.S. operations in recent months.
“We don’t know what’s going on. Everything is up in the air,” said one senior employee within the bank’s U.S. equity sales business, who asked not to be named because of the sensitivity of the matter.
Chief Executive Christian Sewing reiterated in a memo to staff on Sunday that Deutsche aimed to remain a “global bank with a strong capital markets business,” and a source familiar with the matter said the merger would not change the bank’s commitment to a strong U.S. presence.
Deutsche Bank declined to comment on Wednesday.
German finance minister Olaf Scholz, reportedly a proponent of the merger, has previously stressed the need for Germany’s banking sector to support German companies who want to go abroad to export.
After the 2007-2009 financial crisis, Deutsche maintained a large presence on Wall Street, even as European rivals like Credit Suisse Group AG made big cuts to U.S. investment banking operations.
Deutsche Bank’s U.S. business has brought in around half of revenue for its overall investment banking unit, which includes corporate and investment banking as well as trading, even though it came with a relatively high cost of capital
However, encumbered by litigation and regulatory investigations into past misconduct, the business has struggled to compete with Wall Street rivals.
Deutsche had said last May that it would reduce its global headcount to well below 90,000 from 97,000. That included a 25 percent cut in equities sales and trading jobs, a significant number of which were in New York, where it has lagged rivals.
Cutting more jobs in the United States would not provoke the same political pushback that the two banks would face if they axe jobs in Germany, banking analysts say. PAY CONCERNS
Even if Deutsche Bank keeps its U.S. operations largely intact following a Commerzbank deal, some staff fear pay and bonuses would decline because the combined entity would face a backlash from German taxpayers if its remuneration was seen as excessive.
Commerzbank, which is focused on personal and commercial lending, typically pays its staff less than Deutsche Bank. If the German government were to retain a stake in a combined entity, lawmakers would likely argue that it should keep a tight rein on pay.
Traders at Deutsche Bank’s U.S. equities business have already felt a squeeze, with some receiving substantially smaller bonuses for 2018, the sources said.
That has contributed to a decline in morale, which has been exacerbated by the departure of senior staff including Brad Kurtzman, co-head of equities trading in the Americas, who is leaving at the end of this month, the sources said.
A recent focus on recruiting college graduates, held up by senior management as an affirmation of the bank’s long-term commitment to the trading division, has done little to quell concern, they added.
One employee, who asked not to be named, said further defections are considered likely as staff look to pre-empt further cuts should the Commerzbank deal go through. — Reuters
7 films to see on the week of March 22 — March 28, 2019
Drunk Parents
UPPER-CLASS couple Frank and Nancy Teagarten are dropping their daughter off for her first day in college when a repo man visits them and leaves them struggling to make ends meet. Wanting to get their daughter through college, they mount a yard sale accompanied by a late night of heavy drinking which leads to some regretable decisions as they try to hide their deteriorating net worth from family and friends. Directed by Fred Wolf, the film stars Salma Hayek, Alec Baldwin, Joe Manganiello, and Bridget Moynahan. MTRCB Rating: R-13
Five Feet Apart
SUFFERING from cystic fibrosis, 17-year-old Stella’s life is full of routines and boundaries. Then she meets Will, a fellow CF patient who rebels against restrictions of his ongoing medical treatment and Stella tries to inspire Will to live to the fullest. Directed by Justin Baldoni, the film stars Haley Lu Richardson, Cole Sprouse, and Moises Arias. CNN’s Brian Lowry writes, “There’s an undeniable poignance in the concept of young people living with the specter of death constantly at their shoulders, making it impossible to be ‘normal’ kids.” MTRCB Rating: R-13
Us
A GROUP of doppelgangers begin to terrorize a family. Directed by Jordan Peele, the film stars Lupita Nyong’o, Elisabeth Moss, Evan Alex, and Winston Duke. The Atlantic’s David Sims writes, “Peele has such a gift for generating terror through blocking and simple camera movements that he never has to rely on lame jump scares to rack up the tension. The members of the faux-Wilson family, who refer to themselves as ‘the tethered,’ all have a defined personality, petrifying their respective doubles in ways that feel like eerie echoes.” MTRCB Rating: R-16
Take Point
CAPTAIN AHAB and his team of mercenaries are on a CIA mission to abduct North Korea’s Armed Forces Minister, but are caught in some crossfire. The tensions may lead to the brink of World War III. Directed by Byung-woo Kim, this South Korean film stars Jung-woo Ha, Sun-kyun Lee, and Jennifer Ehle. “From the convoluted set-up to its preposterous finale, Kim Byung-woo’s political action thriller defies logic and comprehension at every turn,” writes James Marsh of the South China Morning Post. MTRCB Rating: R-13
Homestay
MIN is given a chance to change his life after he gets to live in another person’s body. Directed by Parkpoom Wongpoom, this Thai film stars Teeradon Supapunpinyo, Cherprang Areekul, and Nopachai Jayanama. “Homestay is impeded — much like its protagonist — by a lack of self-confidence; it could have excelled with a little more faith in its strengths, which are eye-catching,” writes James Marsh of the South China Morning Post. MTRCB Rating: PG
Papa Pogi
BEING followed and swooned over by women seems to be a problem for an odd-looking guy. Directed by Alex Calleja, the film stars Teddy Corpuz, Myrtle Sarrosa, and Donna Cariaga. MTRCB Rating: PG
Pansamantagal
A MIDDLE-AGED woman goes to a resort to get away from her problems. There she gets acquainted with Leo and they spend the rest of their stay together. Directed by Joven Tan, the film stars Gelli De Belen, Bayani Agbayani, and Chacha Balba. MTRCB Rating: R-16
THE ENTERPRISE business of PLDT, Inc. has been tapped by local company GritXL to provide broadband connection for the latter’s building in Morong, Rizal.
In a statement on Wednesday, PLDT Enterprise said the partnership is geared to help the municipality of Morong support information communication technology (ICT) and business process outsourcing (BPO) companies, as well as small enterprises in the area.
“Developing next-wave cities such as Morong is aligned with our mission and that of GritXL to prop up MSMEs (micro-, small- and medium-sized enterprises) and equip them with tools that will allow them to bring their businesses to all-new heights,” PLDT Head of SME Nation Albert Mitchell L. Locsin was quoted as saying.
“Our goal, in keeping with the government’s direction of countryside development, is to make GritXL the innovation center that will help the people and the local government of Morong,” he added.
GritXL is the first BPO-grade establishment in Morong.
In in its website, the company said it offers services such as consulting, leasing, knowledge process outsourcing and an innovation lab.
“What we share with the PLDT team is the vision of GritXL of creating innovative solutions and pushing for borderless growth for Morong, Rizal. The dream of GritXL will not happen without technology, and most importantly, without connectivity,” GritXL founder and president Myla Reyes was quoted as saying.
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. — Denise A. Valdez
In the last episode of the Game of Thrones’ penultimate season, Cersei demands that Jon Snow remains neutral between the queens, but Jon affirms he has already sworn himself to Daenerys. This led to initial collapse of the talks. Jon was asked why he could not lie to achieve the negotiation’s objective. And Jon Snow responds about the importance of honesty and integrity.
Of course this is fiction, but how many will go to extra lengths — meaning to lie — to achieve a personal goal, especially in the workplace? “The ends justify the means” appears to have been accepted as a norm. Even in present day Philippine politics, the concept of honesty as a prerequisite for the country’s leaders has hogged the headlines. This piece will dare not dwell on that issue but will share a personal realization. After all is said and done, one’s reputation of integrity is a treasure worth keeping.
After 40 years in the workplace, I can relate to an article written by Amy Rees Anderson for Forbes. “Success will come and go, but integrity is forever. Integrity means doing the right thing at all times in all circumstances, whether or not anyone is watching. It takes having the courage to do the right thing, no matter what the consequences will be. Building a reputation of integrity takes years, but it only takes a second to lose,” she says in the article.
In the same article, she quotes Warren Buffet of Berkshire Hathaway: “In looking for people to hire, look for three qualities: integrity, intelligence and energy. If they don’t have the first one, the other two will kill you.” A person’s dishonesty will eventually catch up to them. Dishonest actions will eventually be uncovered. The risk of getting ahead for a short period of time is incomparable to its lasting consequences.
Times might have changed and honesty is an unpopular route today, yet one fact still remains — one’s reputation for honesty affects life’s success whether one is aware of it or not. In business, there is a term called “integrity edge” pertaining to trust generated over time by companies resulting to good business relationship or client loyalty. As individuals, living honestly means self-respect, peace of mind, family happiness, and a good relationship with God.
Allow me to share a few personal experiences. As former head of one agency involved in small business development, we were approached several times with proposals to be conduits for the Priority Development Assistance Funds. The proposals were, on the surface, noble, but the idea of passing through political hands hinted of possible compromise in beneficiary selection. We wanted to enlarge the small fund we had to support small businesses, but we were worried our process would be subject to trade-offs. A few years later, the rightfulness of our decision was validated by the scandals that transpired.
In another professional situation, I was at one time asked to head the procurement of an important but expensive process. It was a systems project beyond my established competence and for this very reason, I declined. Honesty also means accepting one’s limitations even if the potential glory of leading a successful innovation in the organization was tempting.
Standing up for integrity and maintaining it means determining your priorities and upholding it in all your dealings. You have to contemplate or anticipate situations that will challenge your honesty. You need to plan on how to respond properly and make your position known at the beginning of any business or work relationship. It takes a lot of courage and tactfulness letting others know your standards.
Former US President Dwight Eisenhower said, “The supreme quality for leadership is unquestionable integrity. Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office”. The Bible reminds in Hebrews 13:18: “We wish to conduct ourselves honestly in all things.” The integrity that we build for ourselves will last forever. It will make us proud of who we are. The choice is in our hands. The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.
Benel D. Lagua is Executive Vice-President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.
Everyone commits mistakes. But what’s the best way to disagree with a boss who thinks he has the best ideas around and will not listen to his people? Sometimes, if the mistakes are glaring, he will not even bother to apologize. I’m seeking your advice for two reasons: I don’t want to be blamed later on for being complicit. And two, I’m not sure whether he’s testing my determination and integrity. What’s your take? — Deep Blue Sea.
Proverbs 1:7 says: “The fear of the Lord is the beginning of knowledge, but fools despise wisdom and instruction.” This heavenly passage is our best guide, against a copycat earthly proverb from somewhere that reads like this: “The fear of jail is the beginning of wisdom.”
The ability to keep your boss in check depends much on your religious beliefs, which help determine your path towards greatness or oblivion. In addition, it depends very much on above-average work performance and a little office politics to get along with your boss, until you reach the line of legal, ethical and moral standards.
These standards are required in an ideal world. In reality, however, it doesn’t work that way. At times, you’ll have to struggle when you reach a fork in the road, especially when the other party is your boss who could decide on your job security and your future. The end goal, therefore, is how to look good to your boss through your work performance and not through something that would force you to violate the law.
Here are some considerations for doing just that: One, be clear about the intentions of the boss. Don’t jump to conclusions. So everything is clear and explicit, you have to document everything via email, text messages, or a paper document. Even if the boss gives you a verbal instruction, you have to make sure that you’ve understood his instructions by documenting his thoughts. He may or may not respond to you. Consider it a red flag in case he fails to write back. Two, go back to your boss to clarify everything. Related to Number One above, if the boss fails to confirm what he wanted, then meet him in person and make a counter-proposal without making it appear that his ideas are too stupid for you to even take a second look. There are times when a bit of bargaining is appropriate. It’s just a matter of offering several superior options that he will consider. Three, look for simple options that work to your advantage. List down the best points that will give you an advantage in bargaining with your boss. Rank your options in terms of priority. Present the pros and cons of each option. At every step, be prepared to support any position with accurate facts and figures. But don’t complicate things and give your boss an excuse to go back to his original stupid idea. Four, show initiative in solving certain problems. Don’t worry about whether the task is part of your job description or whether you have a clear mandate from the boss. If an issue is unfolding before your eyes, do something to prevent an error, if not reduce its adverse impact against your boss and to the organization as well. No one can argue against someone with a “can do” mentality. Five, volunteer for projects that will gain you exposure. Not only that, the more skills you possess, the better for you to handle other things inside and outside the organization. Make your talents known to other bigwigs in the company. If you have a conflict with your current boss, your “hot skills” can save you many times over. Other department managers and even the CEO could help save you from harm. Six, work on projects favored by the boss. Know what is important to your boss, and not the things you consider to be equally important. For example, keeping inventory low as a cost-cutting measure is valuable to top management, while high inventory levels can make life easier by doing away with the need for repeated orders to suppliers. Understand the business side of things from the eyes of your boss. Last, never coast on past accomplishments. You may have done something extraordinary in the past, but that alone will not save you in the future. Don’t rest on your laurels. There are many people out there who could be much better go-getters that will quickly make your accomplishments irrelevant. No one can argue against consistently superior work performance.
Just the same, don’t compromise your integrity, even if others are willing to compromise theirs. Some people tend to be bounty hunters. If you don’t agree with your boss, be upstanding but diplomatic in rejecting his proposals. After all, the quality of service that you provide to the organization will be taken as a whole rather than your individual areas of conflict with the boss. ELBONOMICS: A tactful rejection is better than a frank, but false promise.
POTTED POTTER returns to Manila with performances at the Maybank Performing Arts Theater, BGC Arts Center in Taguig City on March 22 to 24. Created by Olivier Award Best Entertainment nominees Daniel Clarkson and Jefferson Turner, the show takes on the challenge of condensing all seven Harry Potter books into 70 hilarious minutes (including real-life game of Quidditch). This funny show features all fans’ favorite characters, a special appearance from a fire-breathing dragon, endless costumes, songs, ridiculous props, and a generous helping of Hogwarts magic. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).
Angels in America: Millennium Approaches
TOPPER FABREGAS and Nelsito Gomez star in Angels in America: Millennium Approaches.
ATLANTIS Theatrical Entertainment Group kicks off its 20th anniversary with the Tony award-winning Angels in America: Millennium Approaches by American playwright and screenwriter Tony Kushner. There will be performances from March 22 to April 7 at the Carlos P. Romulo Auditorium, RCBC Plaza, Makati City. Directed by Bobby Garcia, it stars Mark Stroem, Nelsito Gomez, Art Acuńa, Pinky Amador, Angeli Bayani, Topper Fabregas, and Andoy Ranay. The play contains strong language and mature content and is meant for audiences over the age of 16. The first part of the play is set in New York City in the 1980s. When Prior Walter finds out that he has contracted the AIDS virus, his lover Louis Ironson leaves him. Meanwhile, Joe Pitt, a closeted gay lawyer, struggles in a marriage with Harper, his drug addicted wife. The two couples’ fates intertwine throughout the story. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).
Dirty Old Musical take three
DIRTY Old Musical (DOM), about a 1980s one-hit wonder band that reunites more than 30 years later to raise funds for an ailing member, is back for a third run with a new cast member and new songs. It runs until March 23 at the Music Museum, Greenhills Shopping Center, San Juan. This iteration stars The Dawn frontman Jett Pangan, Robert Seña, Nonie Buencamino, Bo Cerrudo, and Carlo Orosa. Tickets are available at TicketWorld (www.ticketworld.com.ph), the Music Museum (721-6276), or via Spotlight Artists Center (776-4487/0919-911-4444). Ticket prices range from P1,000 to P3,000.
The Phantom of the Opera
ANDREW Lloyd Webber’s musical The Phantom of the Opera has performances at The Theatre at Solaire until April 7. Based on Gaston Leroux’s novel of the same title, the story is set in the Paris Opera House where a young soprano becomes the object of The Phantom’s affection and he manipulates her career at the expense of the opera house staff and stars. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).
Lio Beach Fest 2019
THE Lio Beach Fest is a yearly gathering of individuals who love the environment and music. Held this year from March 21 to 24, the festival includes a concert, talks, workshops, and a celebration fo Eart Hour. On March 22, World Water Day, guests are encouraged to discover the beauty of Paradise Falls. On March 23, it is the Music Fest x Earth Hour, featuring artists and bands from Palawan and Manila, including the Alab LED Poi Dancers during the lights-out observance of Earth Hour. Other performers are Kawangis ng Tribu, Cheats, Mojofly, and This Band. On March 23 and 24, there will be art workshops, sustainability talks, and the Taboan weekend market. Foir updates, Visit Lio Tourism Estate’s and Lio Estate Resorts Facebook and Instagram pages for updates.
Stand-up comedy by Atul Khatri
ATUL KHATRI was the CEO of his family-run IT business when he started doing stand-up comedy. He chucked the suit for the mic and has since gone around the world, performing more than 400 shows, and has been featured on Netflix. He’s coming to Manila for a one-night show, Atul Kahtri in Manila, on March 23, 8:30 p.m., at the City Club in Makati City. Doors open at 6:30 p.m., and the show will offer a full bar and there will be several Indian and non-Indian concessionaires. Hosting the show in Manila will be Singaporean comedian Deepak Chandran, while the opening act will be Hong Kong’s Ben Quinlan (winner of the 11th International Hong Kong Comedy Competition in 2017). Tickets are priced at P2,000 (for VIP) and standard tickets are P1,500. For tickets and other inquiries, contact 0920-971-7055 or 0917-570-3057.
Tales of the Manuvu
AL ABRAHAM plays Manama while Ronelson Yadao is First Man in Tales of the Manuvu. — JOJO MAMANGUN
BALLET PHILIPPINES and National Artist for Dance Alice Reyes restage the 1970s classic Tales of the Manuvu, a rock-opera ballet that tells the creation story of the Manobo tribe from Mindanao. There will be performances from March 22–31 at the Cultrual Center of the Philippines’ Main Theater. Celeste Legaspi and Boy Camara, veterans from the original production 42 years ago, will be performing in this restaging, along with Ding Mercado, Shiela Valderrama, Lorenz Martinez, Nar Cabico, Reuben Laurente, Poppert Bernadas, Lara Maigue, and Aicelle Santos. Jazz/rock band Radioactive Sago Project will perform live. Aside from the hour-long main event, the program consists of Sun Down, The Weight on Our Toes, and Mama, which are works by new choreographers; and Chichester Psalms, a restaging of another Alice Reyes piece that was first performed in 1973. Tickets are available through Ticketworld (891-9999), the CCP Box Office (832-3704), the Ballet Philippines Box Office (551-1003), or online at www.ticketworld.com.ph.
LOCAL JEEPNEY manufacturer Elmer Francisco Industries (EFI) is working with Hong Kong-based financial technology firm Madison Holdings Group Ltd. to offer loans to transport groups and drivers who need funds to acquire new jeepneys to comply with the government’s Public Utility Vehicle Modernization Program (PUVMP).
In a statement on Wednesday, the two companies said they are collaborating on a flexible financing program called Boundary Hulog that will make new jeepneys, which cost up to P2 million each, affordable for jeepney drivers and operators.
“EFI’s Boundary Hulog program is designed to match the paying capability of the operators/drivers. They can choose to complete the payment in eight, nine, or even 15 years. What’s important is their income is not affected by the purchase of the jeepney as they follow the law,” EFI Founder and Chairman Elmer Francisco was quoted in the statement as saying.
The PUVMP is a government initiative that requires old jeepney units to transition to modern e-jeepneys in the next two years. This means jeepney units aged 15 years and older would eventually be prohibited from hitting the road.
However, Mr. Francisco noted the transport groups and drivers are concerned about the investment needed to acquire a new jeepney.
According to EFI and Madison, transport groups have expressed interest in the program. These include Alliance of Concerned Transport Operators (ACTO), Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), Federation of Jeepney Operators and Drivers Associations of the Philippines (FEJODAP), among others.
For its part, Madison said it sees “significant upfront and recurring demand for electric-powered jeepneys” that comply with the program.
“Under the cooperation agreement with EFI, Madison will exclusively supply these electric-powered jeepneys to EFI, as well as provide financial and blockchain services, including a cryptocurrency fare payment system,” the companies said.
The government organized loan programs to assist drivers and operators in the PUVMP transition, offered through the Landbank of the Philippines and the Development Bank of the Philippines. — Denise A. Valdez
LEGISLATORS expressed guarded confidence about the progress made in resolving the 2019 Budget impasse, with both Senators and Congressmen giving next week as a possible time frame for sending the measure to the Palace for signing.
The door is now open for resolving the dispute between the two chambers of Congress following the retrieval of the P3.757 trillion national budget for 2019 by the House of Representatives from the Senate on Wednesday, Senate President Vicente C. Sotto III said Thursday.
“Perhaps what we could say is that the door is now open for a possible cure to the impasse… The entire Senate supports the fact that we want to approve or the President to sign something — or a bill or a budget that the Senate ratified and that the House also ratified, faithful to what we agreed upon,” he told reporters at the Kapihan sa Senado media forum.
“So perhaps the door is open. We can now agree to revert to the original state (of the national budget) that was agreed upon in the bicameral (conference committee), what they itemized, what the Senate itemized, and (Congress) ratified. That should be the one,” he added.
Both chambers are disputing the version of the Budget that emerged after representatives of both Houses ratified the document in bicameral conference committee. Both sides claim that the Budget was modified after ratification, while some legislators have said that the changes represent “itemizations” of certain lump sums.
“We hope that this budget law will be signed before the end of the month. As soon as possible, (maybe) next week,” Albay-1st district Rep. Edcel C. Lagman told BusinessWorld in a telephone interview Thursday.
Mr. Lagman is among the members of the three-man team Speaker Gloria Macapagal-Arroyo instructed to meet with the Senate to resolve the impasse, which has resulted in the 2018 Budget being re-enacted.
Also among the members of the House contingent are Appropriations Committee chair Rolando G. Andaya, Jr. of the 1st district of Camarines Sur and San Juan Rep. Ronaldo B. Zamora.
Mr. Sotto said three members each from the Senate and the House of will meet on Monday to discuss points of contention.
He said the Senate will be sending Senators Loren B. Legarda and Panfilo M. Lacson, chair and vice chair of the Senate committee on finance, as well as Senator Gregorio B. Honasan II.
“I know the three (senators) will stick to what we approved and what we ratified,” Mr. Sotto said.
Asked about the schedule of the national budget’s transmittal to Malacañang, the Senate leader said, “Hopefully, by next week.”
The House of Representatives on Wednesday “physically retrieved” the national budget sent on March 11 to the Senate on the orders of Speaker Arroyo. Mr. Sotto refused to sign the measure due to the post-ratification changes.
The national budget remains pending in Congress more than a month after ratification on Feb. 8.
Mr. Andaya said on Wednesday that retrieving the budget was not an “act of withdrawing or backtracking” from their earlier position that the Budget, as itemized after the Feb. 8 ratification, was legal and constitutional.
When asked how the House contingent plans to resolve the dispute, Mr. Lagman said “we don’t want to preempt anything, let us go into the dialogue.”
The Speaker said Tuesday the House will insist on a budget that has no lump sum appropriation, citing the Supreme Court ruling that lump sums are unconstitutional.
Mr. Sotto refused to sign the budget over allegations the House realigned P79 billion of the Department of Public Works and Highways and P15 billion of the Department of Health allocations. Mr. Andaya, meanwhile, said the Senate had also realigned the ratified budget, which amounted to P75 billion.
The inter-agency Development Budget Coordination Committee slashed its growth forecast for 2019 gross domestic product (GDP) to 6-7% from 7-8%; while the National Economic and Development Authority said GDP growth will decline to 6.1-6.3% if the budget is reenacted until April and 4.9-5.1% if until August.
Mr. Sotto said the national budget will no longer be delayed if the House of Representatives “leaves alone” the allocations of some projects identified by the Department of Public Works and Highways (DPWH) under its budget, known as the Major Final Output (MFO) 1 and MFO 2.
He said it was the Senate’s Legislative Budget Research and Monitoring Office (LBRMO) that raised the red flag over the changes made by the House in the DPWH budget post-ratification.
“The (House) placed (the funding) in local infrastructure projects and other districts identified by congressmen. The MFO 1 and MFO 2 were identified by the DPWH. So that’s a big difference. That’s not a typo error and it’s important that it was altered. Therefore, it’s not part of what we ratified,” he said.
“If we submit (to Malacañang) the original version that we ratified, then there’s no problem. I will sign it and submit it to the President,” he later added.
Asked about the Senate’s plans if the House insists on the post-ratification changes, Mr. Sotto said the national government would then continue to operate on a reenacted budget until August.
“If you stand pat saying that you will stick to what you did in the internal realignment, removing from the DPWH-identified projects in the MFO1, MFO2 and put it in other districts, after we ratified and you did not tell us about that in the bicam, then we have a reenacted budget until August if that is their opinion,” he said.
“All they have to do is to submit what we agreed upon in bicam and ratified, and we will have no problem at all,” he added. — Camille A. Aguinaldo and Charmaine A. Tadalan
THE National Food Authority (NFA) said its warehouses have received 457,747.577 metric tons (MT) worth of imported rice out of the 500,000 MT authorized in the agency’s last year of import operations, consisting of the 25% broken grade of well-milled long grain white rice.
The NFA said the shipment level as of March 19 included bad orders of 466.263 MT and short-landed rice shipped but not yet arrived) of 731.660 MT, with a balance of 23,054.500 MT.
Last year’s rice shipments are to be the last handled by the NFA before the effectivity of the Rice Tariffication Law, which relegates it to buying domestic rice to maintain a buffer stock while leaving imports to the private sector.
Of the rice purchased in government-to-government deals, the NFA has received 201,115.084 MT from Thailand and Vietnam, out of the 203,000 MT purchased.
Bad orders amounted to 375.835 MT, 321.081 MT remained short-landed. Balance stood at 1,188 MT.
Rex C. Estoperez, NFA Assistant Director for Marketing Operations, said in a phone interview Thursday that the remaining balances — those which are not en route — are “minimal.”
The Rice Tariffication Law came into force on March 5.
According to the NFA, its domestic procurement amounted to 232,447 bags of palay, or unmilled rice, in the first two months of 2019, with purchases up 2,100% year-on-year.
The NFA hopes to buy at least 7,780,000 bags of palay in 2019. — Reicelene Joy N. Ignacio
