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Group to bring campaign on mining safety to Baguio officials

THE Philippine Mine Safety and Environment Association (PMSEA) said it will embark on a campaign to deal with small-scale mining, beginning with efforts to promote mining safety to the local government of Baguio.
“We have had talks with the governor, the mayor, and we’re trying to tell him — I told him — ‘Look, you have to support us with this. You are allowing illegal operations,’” PMSEA president Walter William B. Brown said in a press conference in Quezon City on Monday, adding that the group will travel to Baguio on Wednesday to meet with officials there.
“Unless you show the people that you are willing to follow the law, our problem really is a problem of discipline.”
Mr. Brown also emphasized that small-scale miners are not at fault. “[That’s why we] buy their stockpile, we give time to take their goods out and if the government allows to take them out, we allow them to do so. We give them the chance to be integrated in our system,” he said.
“They don’t seem to understand what we’re trying to do but I feel that we have to offer them alternatives because they have no other place to go.”
Mr. Brown said each accredited mining firm is already deputized to manage its own operations and area to avoid further casualties.
“For one thing, it’s an obligation for an MPSA (Mineral Production Sharing Agreement holder) to police itself and its own area. If you don’t do it, you’re at fault, don’t blame the small-scale miner,” he said.
Mr. Brown reiterated that there is no need for new laws, given that there is enough legislation to regulate the industry.
“We have a good mining law, it’s just not implemented properly. In fact, we have one of the best mining laws in the world, but it’s not implemented,” he said. — AGAM

Taxpayer, are you surprised?

Plot 1: NEJ, the protagonist, heard unknown voices and odd footsteps. Convinced that her family’s house is haunted, she went to find a local priest, but failed. More antagonistic events ensued, and then the plot twist came: Grace and her two children are the ghosts, and the voices and odd footsteps they’ve been hearing are from living people. They only realized that they’ve been dead when they were being cast away by a séance hired by the new owners of the house.
Plot 2: TP, the protagonist, got to his corporate office early. He saw a mail envelope on his desk. It was from the Bureau of Internal Revenue (BIR). He briskly opened it. He read every word on the letter, sighed, then continued to read the numbers in Philippine pesos. There is no plot twist. He almost dropped the letter. He is being assessed for deficiency taxes. After all the clarifications, he paid the assessment accordingly.
Between these two plots, I prefer to watch Plot 1, and will even produce and direct it. It is actually the plot of a 2001 film, entitled The Others, directed by Academy award winner Alejandro Amenábar. The I-didn’t-see-it-coming feeling and the tinge of shock-of-your-life experience at the end are extremely entertaining. Plot 1, however, is not relatable as it is far from reality. Plot 2, on the other hand, is close to, if not completely, a reality.
To showcase the reality of Plot 2, the BIR recently issued Revenue Memorandum Order (RMO) No. 32-2018, prescribing the audit/investigation of individual and non-individual taxpayers with gross sales/receipts of P10 million and below. The audit/investigation shall be conducted by the Revenue Officers (ROs) of the Office Audit Section (OAS) of the Assessment Divisions in the Regional Offices. The thrust of RMO No. 32-20118 is to generate additional revenues by conducting audits for taxable year 2017 without field investigation by ROs who must submit the report of investigation within 90 days from the issuance of the Electronic Letters of Authority (eLA). Nevertheless, the RMO has the following policies: (1) the Electronic Letters of Authority (eLAs) shall be issued; and (2) that all existing policies and procedures for issuing assessment notices shall be strictly observed.
Letters of Authority (LOA), as described by the Supreme Court in MediCard Philippines, Inc. vs. Commissioner of Internal Revenue (G.R. No. 222743) is the authority given to the appropriate revenue officer assigned to assess functions pursuant to Section 6(A) of the National Internal Revenue Code (NIRC) of 1997, as amended. In this case, the Court emphasized the importance of the LOA in all assessments by expressly stating that an LOA cannot be dispensed with simply because none of the financial books or records being physically kept by the taxpayer were examined. The Court also ruled that a Letter Notice (LN) is entirely different and serves a different purpose than an LOA. An LN, which is issued to notify the taxpayer that a discrepancy is found based on the BIR’s RELIEF System as prescribed in Revenue Regulations (RR) No. 12-2002, as amended, cannot stand as an LOA. An LOA must still be secured because, in the absence of which, the assessment or examination is a nullity.
As for the policies and procedures for issuing assessment notices, these are delineated under RR No. 12-1999, as amended by RR No. 18-2013 and RR No. 7-2018 as follows:
The taxpayer shall be informed of the tax deficiency by the revenue officer who audited the taxpayer’s records. A Notice of Informal Conference (NIC) shall be sent to the taxpayer, giving the latter an opportunity to present its side of the case within 30 days from receipt of the NIC;
If the taxpayer failed to present his side, a Preliminary Assessment Notice (PAN) shall be issued to the taxpayer by the Commissioner of Internal Revenue (CIR) or his duly authorized representative. The PAN shows in detail the facts and the law, rules and regulations, or jurisprudence on which the proposed assessment is based;
If the taxpayer failed to reply or, in cases where no PAN is required, the Formal Letter of Demand and Final Assessment Notice (FLD/FAN) shall be issued by the CIR or his duly authorized representative; and
Then a Final Decision on a Disputed Assessment (FDDA) of the CIR or his duly authorized representative shall be issued to the taxpayer.
Pursuant to Section 228 of the Tax Code, as amended, a PAN shall not be required in any of the following cases:
When the finding for any deficiency tax is the result of a mathematical error in computing the tax appearing on the face of the tax return filed by taxpayer;
When a discrepancy has been determined between the tax withheld and the amount actually remitted by the withholding agent;
When the taxpayer who opted to claim a refund or tax credit of excess creditable withholding tax for a taxable period was determined to have carried over and automatically applied the same amount claimed against the estimated tax liabilities for the taxable quarter or quarters of the succeeding taxable year;
When the excise tax due on excisable articles has not been paid; or
When an article locally purchased or imported by an exempt person, such as, but not limited to, vehicles, capital equipment, machinery, and spare parts, has been sold, traded, or transferred to non-exempt persons.
The Supreme Court had already settled in the case of CIR vs. Metro Star Superama, Inc. (GR No. 185371) (https://cdasiaonline.com/jurisprudences/54034) the issue on the effect of failure to strictly comply with the notice requirements prescribed under Section 228 of the NIRC (https://cdasiaonline.com/laws/10608)and RR No. 12-99 (https://cdasiaonline.com/taxations/20841), as amended. The Court ruled that sending a PAN to a taxpayer to inform them of the assessment made is but part of the due process requirement in issuing a deficiency tax assessment, the absence of which renders nugatory any assessment made by the tax authorities.
As can be culled from the foregoing reality, the scenes in Plot 2 should be as predictable for any taxpayer being assessed by the BIR. The rules are settled. There is no plot twist. All characters are protagonists and contribute to the lifeblood of the nation — taxes. Hence, if I may ask: Taxpayer, are you surprised? The answer should be a resounding “No!”
 
Rhino T. Chua is a senior associate of the Tax Advisory and Compliance of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.
Rhino.Chua@ph.gt.com
+63(2) 988-2288

A Development Puzzle: Granaries and Poverty

Why is it that top grain producers in the country differ widely in poverty incidence?
In this article, we compare four Luzon provinces with four Mindanao provinces. They ranked among the top in production and harvested areas in 2015. Why 2015? That was the latest year of official poverty statistics.
Findings:
1. The average poverty incidence of the Luzon granaries — Nueva Ecija, Isabela, Pangasinan, and Cagayan — was 17% in 2015. This was exceedingly lower than the average poverty incidence of 50% of the Mindanao granaries — North Cotabato, Bukidnon, Sultan Kudarat, and Maguindanao.
2. Production in Luzon is far higher in part due to high productivity as it has larger and higher percentage of irrigated areas than Mindanao: 83% of total rice areas versus 59%. Cagayan and Nueva Ecija are served by large dams, Magat and Pantabangan.
3. Luzon grows the high-yielding yellow corn for feeds than white corn: 93% vs. 60% for Mindanao.
4. Luzon leads in yield: 4.4 tons per hectare (ha) for rice and 4.6 tons for corn. These are higher than Mindanao’s at 3.6 tons per ha and 3.2 tons per ha.

There are merits in having irrigation when water supply is available and capital costs considered as well as farming yellow corn for feeds.
However, there are questions why the irrigated yields of Mindanao are far lower compared to Luzon: 4.0 tons per ha versus 4.7 tons per ha. The story is similar for yellow corn: 3.6 tons per ha vs. 5.4 tons per ha. Cultural practices are key.
Maguindanao has very high poverty (57.2%) because, among other reasons, it has low yields across the crops. Low productivity makes it the second poorest in the country.
Bukidnon is an enigma. It has relatively high yields for rice and corn but its poverty incidence is very high at 53.6% (fifth poorest) not that far from Maguindanao’s. It is higher than the Mindanao’s average of about 36%. The province also hosts large sugar (65,000 ha) and pineapple (24,000 ha) areas as well as poultry farms.
Why is this? Average landholding cannot be the factor as Bukidnon’s average is higher than North Luzon provinces. Are farm costs higher and farm prices lower due to lack of rural roads? Is tenancy high?
A Mindanao expert said that, perhaps, having more corn makes the province more poverty prone. Even if productive, the price swing during the harvest season may be more considerable for corn.
These questions deserve answers from the authorities
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
 
Rolando T. Dy is the Chair of the MAP AgriBusiness and Countryside Development Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.
map@map.org.ph
rdyster@gmail.com
http://map.org.ph

National Security Strategy 2018

The government recently published a National Security Strategy (NSS) for the first time, prepared by the Office of the National Security Adviser (NSA) Hermogenes Esperon and quarterbacked by Undersecretary Vic Agdamag. President Rodrigo Duterte signed the document on May 16, which outlines the administration’s plans for a “secure, peaceful, modern, and prosperous Philippines.
In his message, President Duterte stressed that “We will bolster our position in the community of nations by strengthening diplomatic relations with our traditional allies, engaging non-traditional partners and pursuing an independent foreign policy that gives primacy to our national interest.”
The NSS flows through from the 2017-2022 National Security Policy (NSP) of the Duterte administration. The NSP is a comprehensive document that addresses national security concerns by calling for improvements in defense, intelligence, and law enforcement capabilities to address the communist insurgency, terrorism, violent extremism and protecting the country’s sovereign rights in the South China Sea (SCS).
We’ve named our Exclusive Economic Zone (EEZ) as the West Philippine Sea (WPS) as a protective measure by delineating its boundaries apart and distinct from the rest of the SCS in conformity with UNCLOS. This was acknowledged in the July 2016 landmark ruling of the Permanent Court of Arbitration in The Hague, which China refuses to acknowledge as it continues to claim the SCS in its entirety. President Duterte has pledged to raise the arbitral ruling with China at the right time.
NSS 2018 integrates the country’s major security policies, goals, responsibilities, and courses of action into a roadmap to attain the vision of a better Philippines in all respects for all Filipinos. It’s also a blueprint that points the way to better coordination, cohesion, and synchronization of government functions to improve efficiency and maximize the use of limited resources.
NSS 2018 articulates the national interest, conveys the State’s intentions, and rallies public support for government’s policies and programs. Congressional backing is crucial to its success in terms of enacting necessary legislation in a timely manner and provide appropriate funding.
The landmark document has 7 parts. Chapter 1 introduces the concept of national security and the overarching national security framework that shows the NSP and NSS as inseparable components. Chapter 2 provides an overview of the current strategic environment and highlights our national security priorities to address internal and security threats and challenges.
Chapter 3 discusses the national security framework, core values, and national interests underpinning the NSS. It begins with the definition of national security as “the state or condition wherein the country’s sovereignty and territorial integrity; the people’s wellbeing; core values and way of life; and the State and its institutions are protected and enhanced.”
This chapter cites 12 national security goals as the bases for government action:
• Guarantee public safety and achieve good governance.
• Mitigate the impact of health-related threats.
• Develop a dynamic, inclusive and sustainable economy.
• Achieve food and water security.
• Safeguard and preserve national sovereignty and territorial integrity.
• Heighten consciousness and pride in our heritage, culture and values.
• Promote human and ecological security.
• Achieve energy security.
• Ensure maritime and airspace security.
• Strengthen international relations.
• Provide strong cyber infrastructure and cyber security.
• Improve vital transportation infrastructure and port security.
Chapter 4 introduces two important components that will guide the strategy’s successful and sustained implementation.
First is the combined, balanced, and effective use of the instruments of national power, namely: political and legal; diplomatic; informational; intelligence; economic; military; and law enforcement. It aims to promote comprehensive and shared efforts in addressing current and future threats and challenges. Second is wealth creation and resource generation through: intensified human capital development, passage of national security legislation, appropriate funding for national security and the development of strategic industries.
The attainment of the 12-point national security agenda hinges on the successful execution of the strategic lines of action enumerated in Chapter 5. The action lines are designed to improve our defenses, capabilities, technologies, processes, partnerships and resources. A total of 109 strategic lines of action were identified following careful analysis of the strengths, weaknesses, threats and opportunities of the nation.
Chapter 6 tackles the necessity for an enhanced national security organization to successfully execute the lines of action. As such, the NSS endeavors to reinvigorate and streamline the existing national security structure for effective command and control and utilization of limited human and other government resources, by reorganizing the National Security Council (NSC); its Secretariat; the Cabinet Cluster on Security, Justice and Peace; the National Intelligence Board and the National Intelligence Committee.
The NSS concludes with Chapter 7 with a call for national unity because national security is everyone’s responsibility.
The Executive Summary ends on this note: “The NSS is still in its nascent stage and should be treated as a work-in-progress. Hopefully, this NSS will set the stage for the formation of a national consensus and national will toward the attainment of peace and prosperity across the country. To this end, the support and cooperation of the Filipino people are paramount.”
I have a personal stake in the NSS. Along with my colleagues in the Committee on National Security — Babes Flores, Ed Adan, Chuck Agustin, the late Fr. Archie Intengan, Art Lomibao, Vidal Querol, Enrique Galang — of the Philippine Council for Foreign Relations chaired by Ambassador Joe Romero, we assisted the Office of the National Security Adviser in formulating NSS 2018.
Of particular interest to me all these years has been “credible deterrence” that aims to strengthen our internal and external defenses. President Duterte has to-date approved defense spending to almost P300 billion, or four times more than the previous administration. He’s rolled up his sleeves to ensure that the elements needed to achieve the national security vision are met.
Unity and execution are crucial to success and NSS 2018 points the way forward. It requires from us a keen sense of nationhood; clear sense of common purpose; and a compelling sense of urgency to secure ourselves far into the future. Kayang-kaya kung sama-sama!
 
Rafael M. Alunan Iii served as Secretary of Tourism in the Corazon C. Aquino administration and as Secretary of the Interior and Local Government in the Fidel V. Ramos administration. He currently chairs the Committee on National Security of the Philippine Council for Foreign Relations.
rmalunan@gmail.com
map@map.org.ph
http://map.org.ph

When on-demand economy becomes on-demand culture

By Dennis Ng
IT’S A common experience for any diner in the Philippines: You tell the waitress the item you want to order from their menu, only to have her respond, “I’m sorry, sir. It’s not available.”
This scene — repeated daily across the archipelago — is emblematic of our attitude toward customer service.
If, in other countries, the customer is always right, in the Philippines, the customer is always resigned: She must simply accept however businesses choose to treat him as a fact of life, no different from the traffic that slows our commute or the rain that floods our streets.
Customer service in the Philippines is largely cosmetic.
Yes, front-line service professionals do use a wealth of pleasantries and honorifics, like “mam,” “sir,” or the common compound, “mamsir,” but the experience ends there. You get almost no say in what products or services are provided to you, how they are executed, or even when they will be delivered. Characters in video games may in fact have more choices than consumers in the Philippines.
But things are changing, slowly but surely.
The local media has documented the rise of on-demand platforms in the Philippines, such as short-term lodging marketplace Airbnb and ride-hailing app Uber (which, though gone from the country, has left an indelible mark on consumers).
While coverage on these tech companies has generally been very good, I do believe there is one major fact that has been overlooked. When journalists, and to a lesser extent bloggers, write about these on-demand platforms, they generally focus on how they are disrupting their respective industries.
For instance, they’ll document how Airbnb is affecting the local hotel industry, or how Grab (which acquired Uber in Southeast Asia) is impacting the taxi industry. But innovative companies like these have a much wider impact: They don’t just disrupt their own industries — they disrupt all consumer expectations.
While on-demand companies shift our expectations in several different categories, they have influenced our thought on one most of all: speed of service.
Before Airbnb, we had to content ourselves with booking a room or a home weeks, or sometimes even months, in advance of when we would actually check-in.
Before ride-sharing was introduced, we had to stand in street and catch the attention of passing cabs with the endless waving of our arms, or worse, call a dispatcher to request a taxi that might never come.
With the advent of Airbnb and Grab, we were happy to make spontaneous travel plans, confident we could get a comfortable room wherever we chose, or take our time with our colleagues, friends, or family, knowing there would be no hassle in getting a ride to your next destination.
These companies have triggered an eye-opening thought in Filipino consumers, like the apple that fell before Newton: If we can get a car or a house on-demand, why can’t we other products when we want them, too? This thinking most applies to the world of e-commerce as well as in-store purchases of large items.
When we buy something online, or go to a store to pick up something that cannot fit in a normal-sized vehicle, like a couch, we will wait, and wait, and wait. Check it for yourself: Go to any large e-commerce site that services the Philippines. Their average expected delivery time is more than a week, and that’s being generous. The situation for large, in-store items is just as bleak, and suffers from a kind of popularity tax: The busier a particular store is, the longer your delivery will take. The delivery of your office desk or queen bed may be not scheduled for weeks later, up to even a full calendar month away or more.
Prior to the arrival of the on-demand economy in the Philippines, we would have taken lengthy delivery times as a matter of convenience, but now we rightfully recognize it as a matter of fairness. We pay companies the full price for their products today. How, then, is it fair that we do not get to use these products until weeks later? The exchange of value needs to be far more symmetrical: We should be able to receive and use a product shortly after buying it.
It’s therefore the responsibility of business leaders in the Philippines to do everything in their power to expedite the delivery of their products to meet the growing expectations of Filipino consumers. They must evaluate every aspect of their operations — from how customers place orders to how they pack their products — to see where they can further streamline processes for quicker fulfillment.
As the founder of Mober, I’ve been more than happy to help many Filipino brands offer same-day delivery through our fleet of vehicles, for I know that no company can go it alone: It may very well be called the on-demand economy because it will require us to demand the most of ourselves and how we can serve others.
 
Dennis Ng is the founder and CEO of Mober, a mobile app that enables consumers and enterprises alike to enjoy the benefits of on-demand, same-day delivery.

Boring and predictable

By Tony Samson
In a perfect world for investors and economists a country that is boring and predictable happens to be the best candidate for a lasting investment commitment. Think of Switzerland and Singapore. These two countries hardly make the front pages of international news for wild swings in economic policies, sudden changes in leadership (their sound system seems to have the right speakers), or incidents involving high body counts.
Predictability, which is the first cousin of consistency and dependability in the enforcement of laws and their interpretation by the different agencies of government, generates planning scenarios where the worst case is limited to lower profits, and not the closure of business or the disappearance of the CEO.
The traits of boredom and predictability are ingrained in the rules which include the legal system of contracts and obligations, the business culture of punctuality and high service expectations, and simplicity in dealing with government rules and regulations.
Of course, tourism campaigns veer away from the predictable with their hint of adventure (more fun in the Philippines). They hew closer to the attributes of a blind date by promising variety (surprise me) and the promise of the unexpected. Would you like to have lunch with someone who is introduced as boring and predictable?
Even in a milieu where “disruption” in any seminar title ensures a full house, the source of the grating interruption is expected to come from competition, technology, or the rise of a new business model (like the sharing economy upsetting hotels and taxicabs). Disruption is not expected from the regulatory environment arising from changing bidding rules midstream, favoring one industry player over another, or closing a whole tourist area.
A reputation for predictability is earned. Countries need to display the art of being boring. Their news media do not feature corruption scandals, fraud involving a bank executive, political invectives, unidentifiable corpses on the streets, or even family feuds.
If there are unpleasant events covered, these are only reported when they happen in neighboring countries. Only other countries offer unpleasant surprises. People on the street of boring countries seem to know where they’re going and do not loiter aimlessly or knock on car windows to cadge tips for wiping these with wet rags. And to the question on what there is to do at night? Maybe dining out or watching an old play are on top of the list.
How does a country advertise its lack of excitement, especially of the wrong kind? Can it boast outright of its embrace of ennui? Can someone pitching for an acceptable sovereign risk win with a slogan of “we put you to sleep…soundly”?
The attractions offered by being boring and predictable have hardly been appreciated. Such attributes are seen negatively. Who wants to be described as unexciting and dull?
The ease of doing business implies that when you apply for some government permit (say, to open a restaurant) and you fulfill all the simple requirements in a prescribed format, you can have a ribbon-cutting ceremony in three days and serve your favorite lemon meringue cake. Meeting expectations routinely can be boring. Where’s the challenge of doing business where you need connections and an effective fixer to ease your way? What about pre-operating costs of wining and dining and maybe holding a raffle where everybody goes home happy?
Maybe, there’s too much attention in trying to make the country more exciting. Sure, backpackers like to be surprised. They long for adventure and postings of how big the cockroaches are — they even have teeth.
Never underestimate the power of boredom. Why, when a much-anticipated speech was brief, properly read, almost in a monotonous voice, free of random musings and stray expletives aimed at moving targets, devoid even of too many applause lines, the reception was overwhelming. Four stock trading days of green numbers that followed are reward enough.
Now, we no longer crave for civility and statesmanship. Simple boredom and predictability can be the new normal for the economy. We need to bridge the yawning gap.
 
Tony Samson is Chairman and CEO, TOUCH xda
ar.samson@yahoo.com

House gets lowest satisfaction rating since 2015

A SURVEY by the Social Weather Stations (SWS) showed that net satisfaction for both chambers of Congress slipped in the second quarter of 2018.
SWS’ Second Quarter 2018 Social Weather Survey indicated a “57% satisfied and 17% dissatisfied” result for performance of the Senate, while the House of Representatives (HoR) got 45% satisfied and 20% dissatisfied.
The HoR’s net satisfaction also fell from “good” to “moderate” with a 10-point drop from +35 in March 2018 to +25 in June 2018.
This is their lowest rating since December 2015, which stood at +15.
Net satisfaction in the House fell in all regions, from “good” to “moderate”.
The non-commissioned survey was conducted from June 27-30 with 1,200 respondents nationwide.
Party-list Akbayan Rep. Tomasito S. Villarin said anti-poor policies and issues are to blame for the decline in net satisfaction for congressmen, especially among the marginalized.
“Based on socio-economic classes, it is only the middle and upper classes that were satisfied due to higher disposable income due to reduced personal income taxes and lowered real property transfer taxes. The vast majority of the poor, both urban and rural, is rejecting the House for such anti-poor policies,” Mr. Villarin said in a Viber message to reporters,
He added, “The push for no-election and federalism also contributed to the decline which might translate into a rejection by the electorate of incumbents.”
SENATE
For the Senate, net satisfaction remained “good,” but was “down by 4 points from +45 in March 2018 to +41 in June 2018.”
This is the lowest rating since their good +41 in April 2016.
Senate Majority leader Juan Miguel F. Zubiri said maintaining a “good” rating “shows the importance of the Senate in terms of performance and accountability as well as independence in seeking the truth on many issues.”
Mr. Zubiri cited the Senate “leading the passage of the Strengthened Anti-hazing Law, Free Tertiary Education Law, Ease of Doing Business Act and the landmark Bangsamoro Organic Law to name a few…, as well as our stand against corruption and crime through the different Committee hearings headed by the Blue-ribbon, Health, Public Order and Security, Agriculture and many others.”
Senate President Vicente C. Sotto III, for his part, noted that the latest SWS survey was undertaken when the Bangsamoro law was “in the debate stage.”
Mr. Sotto said he believes that “the trust and confidence of our countrymen will be better in the months to come as far as the Senate is concerned.”
CABINET
Net satisfaction on the President’s Cabinet, meanwhile, was still within the “moderate” range, but fell from “+28 in March 2018 to +25 in June 2018.”
Of the respondents, 43% were satisfied while 18% were dissatisfied with the Cabinet.
This rating is their lowest in two years, since April 2016’s moderate +22.
Presidential Spokesperson Harry L. Roque Jr., in a press briefing in Malacañang on Monday, said, “We will strive to improve the delivery of services but I note also that in the SWS, virtually everyone in government got lower scores.”
He added that discussions on the outcome of the SWS survey “will probably be included in the next agenda meeting,” scheduled on Aug. 6, “on ways and means to communicate better the achievements of the Cabinet.”
The Supreme Court also retained its net satisfaction of “moderate” from March 2018, moving “from +20 (correctly rounded) in March 2018 to +19 in June 2018.” — Gillian M. Cortez

Andaya is new Majority Leader

CAMARINES SUR Rep. Rolando G. Andaya, Jr — CONGRESS.GOV.PH

CAMARINES SUR Rep. Rolando G. Andaya, Jr., assumed the post of Majority Leader of the House of Representatives (HoR) on Monday.
Capiz Rep. Fredenil H. Castro moved to elect Mr. Andaya, in place of Ilocos Norte Rep. Rodolfo C. Fariñas, and faced no objection.
Mr. Andaya then took his oath before the members of the HoR, officiated by Speaker Gloria M. Arroyo.
Following the election, Party-list Akbayan Rep. Tomasito S. Villarin raised that it be clarified who now constitutes the majority and minority blocs.
“Who now constitutes the majority, is it the 184 who voted for the Speaker or is there now a new majority beyond the 184?” Mr. Villarin said.
Mr. Villarin was referring to the 184 affirmative votes that Ms. Arroyo received during her election last July 23.
Based on House Rules, members who voted for the winning candidate for Speaker shall be the members of the majority.
The HoR, however, as of this writing, has yet to settle discussion on whether a new majority should be recognized.
During the proceedings, Mr. Castro, the presiding chair, acknowledged Rep. Danilo E. Suarez as Minority Leader, which was strongly opposed by Marikina Rep. Romero S. Quimbo.
“As far as the minority is concerned based on the voting last Monday, we are organized and we are ready to work,” said Mr. Quimbo, who was among those who abstained during the vote for a new Speaker.
He also pointed out that Mr. Suarez not only signed the manifesto in support of Ms. Arroyo, but also campaigned for her election.
Party-list Ako Bicol Rep. Alfredo A. Garbin, Jr., for his part, maintained the 17-member minority bloc will keep its position, arguing that House Rules “did not change and it will never change the membership status of each and every member regardless of whether you voted for the winning Speaker or did not participate in the election.” — Charmaine A. Tadalan

Eminent lawyer Gatmaitan, 78

LAWYER Andres G. Gatmaitan — WWW.SYCIPLAW.COM

LAWYER ANDRES G. Gatmaitan, senior counsel of the country’s largest law firm, Sycip Salazar Hernandez & Gatmaitan, passed away on July 25 at age 78, his family announced.
Mr. Gatmaitan graduated cum laude at the University of the Philippines, where he also served as editor-in-chief of the university’s student publication, the Philippine Collegian. He was the class valedictorian of the UP College of Law in 1961.
Right after earning his Master of Laws and Doctorate degrees from Yale Law School, he started his career as a lawyer in New York, where he worked as a foreign associate for the Wall Street law firms such as Winthrop Stimson Putnam & Roberts (1962) and Cahill Gordon Reindel & Ohl (1964-1965).
According to his family, he returned to the Philippines to join the Sycip Law firm “(u)pon the invitation of the late Supreme Court Justice Florentino P. Felciano.”
Mr. Gatmaitan also served as chairman of the Pacific Rim Advisory Council for three years. He was a member of the Executive Council of Multilaw and president of the Yale Club of the Philippines.
He is survived by his wife, fellow lawyer Asuncion Yatco, and their eight children.
His family and friends are invited to the memorial service to be held Tuesday, July 31, at the Sanctuario de San Jose in Greenhills starting at 12:00 noon. There will also be a mass at 7:00 p.m. — Arjay L. Balinbin

Peso higher vs dollar amid stock investment inflows, BSP rate remarks

THE PESO strengthened further against the dollar on Monday on the back of equity flows and hawkish statements from the Bangko Sentral ng Pilipinas (BSP).
The peso closed trading at P53.22 to the dollar on Monday, 6.5 centavos stronger than its Friday close.
The peso strengthened immediately at the open to the P53.25 against the dollar. Its intraday high was at P53.19, while its low was P53.32.
Volume declined to $664.5 million from the $794.8 million that changed hands during the previous session.
A foreign exchange trader said the peso strengthened on the back of investor demand.
“Right now, there is some demand for the peso due to equity flow as well as the hawkish statement from the BSP.”
The central bank has been signalling another round of monetary policy tightening to temper inflation expectations.
On Friday, BSP Governor Nestor A. Espenilla, Jr. said that the monetary authority is “ready to follow through” on policy rate hikes in May and June to help bring inflation back to within its 2-4% inflation target range.
Meanwhile, the trader added: “I think the [upward] trend for the peso will continue as the dollar index is correcting downward.”
On Monday, the dollar index was little changed against a basket of six major currencies at 94.717 after declining slightly on Friday, Reuters reported.
“This week, we are expecting big data coming from the central banks in the US, UK and Japan. I think, more or less, market players are taking profit on the dollar,” the trader said.
Meanwhile, another trader attributed the strengthening of the peso to the “lower-than-expected” economic growth data coming out of the US.
“The peso strengthened as US gross domestic product growth data last Friday came out slightly weaker than market expectations, despite being the strongest in four years,” the trader said in an e-mail.
The US economy grew 4.1% in the second quarter, supported by increased consumer spending as well as a rush to ship exports to China ahead the imposition of tariffs.
On Tuesday, the traders are expecting the peso to strengthen, with one of them estimating a range of P53.10-P53.40.
“The peso is expected to continue gaining strength ahead of hawkish expectations from the Bank of Japan’s monetary policy meeting” which might temper the dollar’s safe-haven appeal, the second trader noted. — Karl Angelo N. Vidal

Bourse marks fifth straight session of gains

By Arra B. Francia, Reporter
THE Philippine Stock Exchange index (PSEi) gained for the fifth consecutive session on Monday, fueled by continued foreign buying and window dressing.
PSEi climbed 0.93% or 71.94 points to close at 7,773.32, while the all-shares index went up 0.64% or 29.75 points to finish at 4,645.28.
“Philippine shares rose for the fifth straight session, bucking regional weakness as foreign investors continued their buying spree, amid more second-quarter or first-half corporate earnings disclosures,” SB Equities, Inc. said in a daily market note.
“Despite opening weaker, the foreign flow helped the (PSEi) steadily rise throughout its session and finish on its day high,” it said.
Foreign investors recorded P511 million in net buying on Monday, marking the fourth straight session of such inflows and growing by 37.93% from Friday’s P370.74 million.
Papa Securities Corp. trader Gabriel Jose F. Perez said in an e-mail: “Window dressing and another round of foreign inflows propelled the index 71.94 points to close at 7,773.32. This is the fourth consecutive net foreign buying day since last Wednesday, the longest streak of inflows since… January.”
The PSEi bucked weakness across much of Asia, where Japan’s Nikkei 225 and TOPIX indices slid by 0.74% and 0.43%, respectively, and Hong Kong’s Hang Seng Index, the Shanghai SE Composite Index and the blue-chip Shanghai-Shenzhen CSI 300 gave up 0.25%, 0.12% and 0.17%, respectively.
Locally, five of the six sectoral indices rose: holding firms by 1.69% or 128.25 points to 7,680.62, services by 1.15% or 17.14 points to 1,501.37, industrials by 0.98% or 106.26 points to 10,919.88, property by 0.80% or 30.45 points to 3,820.53 as well as mining and oil by 0.40% or 39.32 points to 9,811.29.
Only financials lost, dropping 1.06% or 20.30 points to 1,881.25.
Trading volume thinned to 1.02 billion shares worth P5.61 billion from 1.29 billion worth P6.22 billion that changed hands on Friday last week.
Stocks that gained slightly outnumbered those that fell, 98 to 91, while 57 stocks steadied.
Fourteen of Monday’s 20 most active stocks ended with gains, including International Container Terminal Services, Inc (up 5.8% to P88.40 apiece); Aboitiz Equity Ventures, Inc. (five percent to P57.75); Universal Robina Corp .(up 3.82% to P136); Ayala Corp. (2.32% to P1,013); GT Capital Holdings, Inc. (2.05% to P994) and Manila Electric Co. (up 0.53% to P380 each).
PSEi-member firms URC and Meralco released their earnings reports on Monday. URC reported a 23% year-on-year drop in net income for the first half, while Meralco’s consolidated core net income rose by seven percent in the same period.
Bank of the Philippine Islands lost 1.09% to P99.90 apiece, while SM Prime Holdings, Inc. shed 0.13% to P38 each.

Nationwide round-up

New Ombudsman vows to probe ‘parking fees’ and delays

THE NEWLY-appointed Ombudsman has vowed to prioritize the “parking fees” flagged by one of President Rodrigo R. Duterte’s former counsels.
“Yes, that is one of my priorities. I would make the necessary announcement on what has to be done,” said Supreme Court Associate Justice Samuel L. Martires, who will head the Office of the Ombudsman beginning Wednesday.
“I will have a meeting with them (Ombudsman officials) on Wednesday when I officially assume office,” Mr. Martires told reporters on Monday.
Edna Herrera-Batacan, a former lawyer of Mr. Duterte, has claimed that she had to pay for “parking fees” to Ombudsman officials to keep a case on hold for resolution.
When asked regarding the possible filing of a case against the former legal counsel of the President, Mr. Martires said, “I just want her to cooperate with us. I told Justice Sandoval (Ombudsman Special Prosecutor Edilberto G. Sandoval) about this and the Overall Deputy Ombudsman Carandang(Melchor Arthur H. Carandang), we should ask or demand Atty. Batacan to identify the officers or employee who received money from her.”
Mr. Martires also said that he would prioritize other “pending cases (and) the issue of inordinate delay, which has been an issue that has been haunting the Sandiganbayan as well as the Supreme Court.”
“I will immediately look into that and the causes for the delay,” he said. — Gillian M. Cortez

Palace says cases against Tulfos ‘should proceed’

THE “LEGAL process should proceed” on the controversial P60-million advertisement deals of former Department of Tourism (DoT) secretary Wanda Tulfo-Teo with her brothers’ Bitag show on government television station PTV 4, Malacañang said on Monday.
“Now, since Ben (Tulfo) said, hindi na sila magbabalik (they will not return the money), so be it. Ang huling deklarasyon po ng Presidente diyan (the previous declaration of the President on that) — and I asked him explicitly — is we will let the legal process proceed…, let those liable be held responsible,” Presidential Spokesperson Harry L. Roque, Jr. said in a press briefing at the Palace.
On the plan of Senator Antonio F. Trillanes IV to file a plunder complaint against the former tourism chief and her brothers, Ben and Erwin, Mr. Roque said: “Well, the matter is in fact within the cognizance already of the Ombudsman. So, that would be treated as a second complaint. But as far as I know, before her retirement, Ombudsman Conchita Carpio-Morales said she had already commenced investigation into this matter.”
In a statement, Mr. Trillanes said, “I intend to file a plunder case against the Tulfo siblings in relation to the P60-million DoT ad controversy.”
He added that he will also call on the Senate Blue Ribbon Committee to act on his resolution “calling for an inquiry into the matter, so we could determine the magnitude of corruption, specifically, how much more of the people’s money was squandered by the previous DoT leadership.” Arjay L. Balinbin

Duterte open to amending Bangsamoro law

PCOO.GOV.PH

MALACAÑANG ON Monday said President Rodrigo R. Duterte is open to amending the Bangsamoro Organic Law (BOL) that he signed last week if there will be complaints from stakeholders.
“[The] President [has said], if you have specific complaints, we are open to discuss these complaints with the view of possibly amending further the law,” Presidential Spokesperson Harry L. Roque, Jr. said in a press briefing at the Palace.
He also said the signing of the BOL “wasn’t really rushed,” because “it’s been there. It has been pending. It took us almost a year to discuss the BOL; there’s been substantial consultations. I note that—you know, the President even called members of the Congress and Senate — if I’m not mistaken — at least three times to the Palace.”
He added, “Nothing is perfect and, of course, the BOL as signed into law is a result of (a) compromise.”
The spokesman said Mr. Dutere is also willing to listen to Moro National Liberation Front (MNLF) leader Nur Misuari.
“He’s reaching out specifically to Nur Misuari, and he is willing to listen to [him],” he said.
He added that the President is willing to “accommodate” some of Mr. Misuari’s “wishes.”
Asked which provisions in the BOL may be amended, he said, “I do not know specifically what he was referring to. But we all know that Sulu traditionally is the bastion of opposition for BOL. So, he is willing to sit down with Sulu and talk about possible amendments.”
On Mr. Duterte’s pronouncement that he wants to talk to the terrorist Abu Sayyaf Group (ASG), Mr. Roque explained: “He is willing to accept surrenderees from the ASG. So what he meant is that ‘surrender and you would be given a new lease on life.’ That’s as far as I understood the totality of what the President said on the basis of the transcripts.”
Malacañang also welcomed the expression of support by the United Nations and the European Union for the BOL.
“We acknowledge for the first time that positive response that we got from the United Nations and the European Union on the signing of the Bangsamoro Organic Law. Of course, we’re one with the whole world in praying that the Bangsamoro Organic Law would pave the way for lasting peace in Mindanao.”
A ceremonial signing of the BOL has been scheduled for Aug. 6, according to Special Assistant to the President Christopher T. Go. — Arjay L. Balinbin