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UnionBank targets bigger take from digital transactions

UNIONBANK is targeting higher revenues from digital transactions.

By Melissa Luz T. Lopez, Senior Reporter
UNIONBANK OF THE Philippines, Inc. is eyeing bigger revenues from digital transactions in the coming years, as they expect investments on technology to improve financial services offered to clients.
UnionBank Chairman Justo A. Ortiz said the bank is eyeing to raise the contribution of digital transactions to as much as a fifth of total revenues coming from an estimated 6-7% share currently.
“We want it to be maybe 20%, at least, of the transactional space,” Mr. Ortiz said in a recent interview. “The balance sheet will still play a role — that’s what banking is about, but that’s a limiting factor. We’re hoping that digital can be a less limiting factor.”
Asked for a target, Mr. Ortiz said this should take the bank about “three to five years.”
The Aboitiz-owned lender is among the banks which have been embracing financial technology the most, with the bank aggressively pouring funds into digital innovations, which even include blockchain and virtual currency.
The bank is set to launch the first automated teller machines meant for digital currencies, which would allow customers to buy and sell digital units for cash.
Aside from this, UnionBank has also set up concept branches called “The ARK,” which offer paperless and all-online services even for over-the-counter transactions. This should also expected to attract more flows into the bank.
“It’s pivotal because it challenges the industry on the customer experience side,” Mr. Ortiz said, noting that UnionBank is also redefining themselves as a technology company.
UnionBank reported a P7.3-billion net income in 2018, down 13% from the P8.4 billion it made the previous year. Mr. Ortiz attributed the lower profits to problems incurred by their thrift banking subsidiary, City Savings Bank, after its partnership with the Department of Education for teacher loans was suspended early last year.
“It should be better than last year. I think it’s still a lot of business as usual, but we spent a lot of money last year on a lot of these different investments, some of them should now start coming through in terms of better expense management,” the company official added.

McDonald’s to roll out more NXTGEN stores

THE EXCLUSIVE franchisee of the McDonald’s brand in the Philippines is focusing on rolling out more NXTGEN stores this year, as part of its continued aggressive store expansion.
Golden Arches Development Corp. (GADC) Managing Director Margot B. Torres said they are “very positive” in terms of growth since the company now has more than 600 stores under its portfolio.
“We will still add more stores…And we’re now at about more than 600 stores, and we will continue with our aggressive growth,” Ms. Torres told reporters during the launch of McDonald’s partnership with online delivery service GrabFood last week.
GADC spent P2 billion for its store expansion last year, which saw the opening of 61 new stores.
While declining to disclose details of their capex for the year, Ms. Torres said the company’s capital spending will mainly finance the rollout of more NXTGEN stores. These new stores feature modern designs, self-order kiosks and facilitate cashless transactions. The first NXTGEN store was launched in October last year, located at McKinley West in Taguig City.
“Now we have almost 25 (NXTGEN) hanggang Boracay, Tagaytay, Southwoods (in Laguna), marami na rin sa Metro Manila, some malls,” Ms. Torres said.
The company is also upgrading existing stores to have NXTGEN features.
“I would link it to the commitment to have a differentiated customer experience and essentially improve service because that will always be what’s important to the brand,” Ms. Torres said.
Asked what risks they expect to see this year, Ms. Torres said they are keeping a close eye on the inflation rate.
“Every year we face inflation which affects consumer confidence and consumer spending, and then the other risk is the food cost increases. Pero hindi sya new, it’s every year. We anticipate that naman,” Ms. Torres said.
GADC is the quick service restaurant arm of tycoon Andrew L. Tan’s Alliance Global Group, Inc. (AGI). The conglomerate also has core interests in property, liquor, and gaming.
The company recently partnered with GrabFood, the food delivery arm of Grab Philippines to expand its online delivery services. GrabFood delivery will now be available in 60 McDonald’s stores in Metro Manila and Metro Cebu. This is further seen to increase to 100 hubs by the end of the year.
The partnership comes amid the growth of McDonald’s delivery platform, which Ms. Torres noted has been growing at a double-digit pace over the last three years.
GADC’s attibutable profit rose by three percent to P991 million in the first nine months of 2018, according to AGI’s quarterly report. Sales revenues grew by eight percent to P20.3 billion, supported by a four percent increase in same-store sales. — Arra B. Francia

Hamilo Coast showroom opens

THE HAMILO Coast showroom was formally opened at Pico de Loro Cove in Nasugbu, Batangas. The showroom features its newest residential project Freia, a premier beachfront condo development with sea and mountain views. Two model units are seen at the showroom, including a two-bedroom unit designed by Budji+Royal. Freia’s three towers will offer 214 two-bedroom units which will all have balconies facing either the sea view of the West Philippine Sea or the mountain view of the Pico Mountains. Hamilo Coast is SM Prime Holdings, Inc. sustainable beach resort township.

Cease and desist order issued vs Kapa-Community Ministry

THE SECURITIES and Exchange Commission (SEC) has barred independent religious firm Kapa-Community Ministry Internationals, Inc. from soliciting investments from the public, since it does not have the necessary license.
In a statement issued Monday, the country’s corporate regulator said it has issued on Feb. 14 a cease and desist order against KAPA, which also operates under the names KAPA Kabus Padatuon (Enrich the Poor), KAPA/ KAPPA, KAPA-Co Convenience Store and General Merchandise, and KAPA Worldwide Ministry.
“It is necessary that a cease and desist order be issued to enjoin KAPA from further offering and selling unregistered securities to the public,” the SEC said.
“Otherwise, to allow KAPA to continue soliciting investments and/or selling or offering for sale securities to the public without the necessary license or permit will operate as a fraud on investors or is likely to cause grave or irreparable injury or prejudice to the investing public.”
The cease and desist order covers KAPA’s partners, officers, directors and officers, representatives, and other persons acting for and in behalf of the organization. The company was also told to remove its promotional presentations and videos posted online.
The commission found that KAPA has been recruiting and encouraging members to donate any amount to the organization in exchange for a 30% monthly return. The members were then given a “Certificate of Membership with Deed of Donation” upon joining.
The religious firm was found to have amassed P7 million from hundreds of investors at some point, according to an investigation by the National Bureau of Investigation in Caraga. Complaints filed with the SEC Enforcement and Investor Protection Department showed that the members were mostly teachers in Bislig City, Surigao del Sur.
The SEC likened the method to a Ponzi scheme since it promises an “exorbitant rate of return with little or no risk at all to the investors.”
This is despite having no authority to solicit investments from the public, as this requires having a secondary license to act as a broker or dealer in securities, an investment house, and a close-end or open-end investment company.
The SEC had advised the public against investing in KAPA back in Oct. 3, 2018, noting that it does not have a license to solicit investments. Following the advisory, the commission received several reports about the group’s intensified recruitment efforts, including videos on Youtube and Facebook featuring KAPA President and Co-founder Joel A. Apolinario.
Mr. Apolinario was later charged with syndicated estafa due to his involvement in the investment scheme, although his case was dismissed for lack of interested parties to pursue the complaint. — Arra B. Francia

GCash eyes MSMEs in Visayas, Mindanao

GCASH is looking to tap more small firms in the Visayas and Mindanao as it eyes increased use of its platform.

DAVAO CITY — GCash is looking at tapping more micro, small and medium enterprises (MSMEs) in the countrysides of the Visayas and Mindanao as it wants to increase usage of the system.
Officials of Mynt or Globe Fintech Innovations, Inc., which operates GCash, said it is launching a system which will enhance the penetration of GCash in the countryside, noting this will also enhance the tourism industry.
Although he did not want to preempt the program that the company will launch in March, Reyner Villasenor, vice-president for corporate communications at Mynt, said over the weekend that the plan is to enhance the penetration rate of the platform to reach areas that are supposed to be underserved or unbanked by financial institutions.
In December last year, the platform expanded its reach in Boracay, a top tourist destination in the country, by tapping vendors who sell ice cream and other goods through the use of quick response (QR) codes that are printed on the merchants’ shirts.
“Chinese and other tourists who wanted to buy from these merchants need only to scan the QR codes to pay,” said Mr. Villasenor as he singled out Chinese tourists because Ant Financial, which owns about 45% of Mynt, is the subsidiary of Chinese giant company Alibaba. Of the remaining shares, about 45% is owned by Ayala-led Globe Telecom, Inc. and the remainder is owned by its parent company Ayala Corp.
At present, of about 60,000 merchant partners of GCash, about 2,200 are in the city and that GCash officials said there is a huge potential for expansion because the use of smart mobile phones have expanded.
He added that the influx of Chinese tourists in the country will also enhance the expansion of the use of GCash especially in the tourism industry. “Chinese tourists usually go to merchants that are recognized by Unionpay, Alipay (the financial technology platform of Ant Financial) or Wechat,” he added.
In the GCash platform, merchants can be paid both through the use of QR code for offline purchase as well as online.
Joseph Albert Lim, Mynt vice-president for Financial Institutions and Strategy, said the expansion is aligned with the broad partnership of GCash with other financial institutions like banks.
“At present, it is easier to move cash between GCash and its partner banks,” said Mr. Lim as GCash has partnered with about 30 banks for fund transfer as part of the Instapay strategy of the Bangko Sentral ng Pilipinas.
Mr. Lim said instead of lining up in banks to send cash to relatives, clients can use the GCash platform to transfer funds for free through accounts of the receivers in banks. — Carmelito Q. Francisco

A gift that keeps on giving

Resident Evil 2
PlayStation4/Windows
RESIDENT EVIL was an instant hit when it came out in 1996. Its first on-screen text was cryptic, if awkwardly put together. “Enter the survival horror.” The words likewise spoke the truth, and to the point where they introduced a whole new genre in the industry. They set the tone on what the game wanted to do in a way no other release was hitherto able. It was less about breezing through enemies and more about rationing supplies and equipment. It was about grittily plodding on in a hostile, alien environment. It was about atmosphere and tension, about unsettling gamers with both anticipation and actual experience.
Parenthetically, Resident Evil 2 followed in its predecessor’s footsteps just two years later, and how. In fact, it proved superior in every conceivable manner, ultimately becoming the most successful entry in the series (and possessing timeless virtues that have allowed Capcom to green-light a remake a full two decades since it first made its way to store shelves). Considering how high Resident Evil director Shinji Mikami initially set the bar and how much work then went into it, its positive reception came as no surprise.
Resident Evil 2 pits you against an unending tide of zombies and biological horrors. It carried with it much of the same motifs as the original, but was set in a larger environment, with newer and tougher enemies, off a more relatable setting. It boasted of better set pieces, creepier environments, and a larger emphasis on character and story while still keeping all the endearing quirks and, yes, clunkiness of the original. Small wonder, then, why fans viewed the game with fondness over the years, and why news of the remake had them elated and, at the same time, apprehensive.
Released late last month, the update of Resident Evil 2 keeps plenty from its namesake while reimagining significant parts to present a whole new experience altogether. The main course remains, but ingredients — among them enemies, puzzles, and items — have been changed, with the end-view of appealing to longtime fans of, as well as newcomers to, the title. And the good news is that it does everything it sets out to do spectacularly. Running off the same game engine that propelled Resident Evil 7, it runs smoothly and looks and sounds great to boot, with very little slowdown on the PlayStation 4 as well as on lower-end rigs.
Where Resident Evil 2 truly stands out, though, is in its gameplay. It represents a return to form by straying from the series’ more recent preference for action and emphasizing its survival horror roots. Bullets are scarce, zombies are tough and do a lot of damage, and tight corridors and entryways compel you to weigh the pros and cons of fight or flight. While most other games would emphasize cleaving through enemies, it instead forces you to think tactically about your choices and making you live with your decisions. Is using ammo to bring down a couple of zombies justified when there are more lurking in the next room? Can you dodge certain enemies instead of fighting them? Do you dare risk a shorter but more dangerous route just to save you a few minutes of backtracking?
At the very least, you’re not unprepared for the threats you face in Resident Evil 2. While most old enemies return, so do the veritable list of weapons main characters Leon S. Kennedy and Claire Redfield have access to. And they’re just as effective with the new over-the-shoulder aiming mechanics. Most enemies, while tough, stagger if hit in the proper spots. A zombie can easily take several bullets to the chest, but will wind up incapacitated by a hit to the kneecap. A good shot to the head will stun them and allow you some time to skirt past. Knives and grenades are handy when you get grabbed, and herbs and first-aid sprays can be used to replenish your health should you ever get bitten, punched, or otherwise mangled by the monstrosities that have overrun the Raccoon Police Department.
With the return of old-school gameplay comes old-school obstacles. While often cryptic and borderline ridiculous, puzzles are fun to solve even as they require you to explore nooks and crannies. Exploration becomes the key to progression and, if nothing else, keeps you moving. The remake’s plot isn’t far removed from that of the original; it remains goofy overall, but nicely provides the impetus for fleshing out side characters more. That said, parts of the story come off as disjointed. The A and B scenarios are still present, but feel less connected than their original incarnation, what with some bosses and key events being recycled for both versions of the story. Enemies and bosses also seem able to take more damage, and if you’re new to the series, you’re liable to find yourself frustrated after being locked out of supplies or wasting ammunition. Thankfully, the greater challenge is balanced by the gameplay.
All told, Resident Evil 2 is survival horror par excellence, bringing the finest in the series up to 2019 standards. And with Capcom slated to ramp up support via the release of additional content, it promises to be a gift that keeps on giving. Highly recommended.
THE GOOD:
• The epitome of survival horror
• Looks, sounds, and plays great, with no apparent slowdowns or lags
• A ton of content and unlockables to keep completionists interested, with the two characters and their respective A and B scenarios having just enough variations to warrant multiple playthroughs
THE BAD:
• Disjointed narratives between scenarios
• Tougher enemy constitutions and placements
• Overall tone of the story can feel uneven and jarring
RATING: 9.5/10

Groundbreaking for Idesia Dasmariñas homes

P.A. ALVAREZ Properties & Development Corp. (P.A. Properties) and Hankyu Hanshin Properties Corp. (HHPC) recently broke ground for the first batch of houses at the Idesia Dasmariñas in Cavite. P.A. Properties and Hankyu are jointly developing the residential community, which will feature 167 housing units in Phase 1. The units and amenities are set to be completed by May 2019. A lion and dragon dance was staged to bring good luck to the project. “We are excited to be able to build high-quality houses in Dasmariñas,” Reynaldo Ascaño, P.A. Properties senior executive vice president, said in a statement.

Philippines still among top remittance recipients

Philippines still among top remittance recipients

Unions urge gov’t to follow rules on foreign workers

LABOR GROUPS called President Rodrigo R. Duterte “irresponsible” for ignoring rules governing the employment of foreigners in the Philippines, particularly Chinese workers.
In a statement on Monday, Federation of Free Workers (FFW) Vice President Julius C. Cainglet said that Mr. Duterte’s statements are “irresponsible” with the president does not comprehend the impact on the Filipino work force.
“We have laws that govern employment of foreigners and yet there he goes giving a blanket authority to just allow them to work in the country without regard for our laws and without regard to Filipino workers,” Mr. Cainglet said.
On Sunday, Mr. Duterte said in a campaign speech that he cannot “kick out” Chinese workers who are in the country without the required permits, noting that beijing could expel the 300,000 Overseas Filipino Workers (OFWs) in China.
“(I) cannot just say, ‘Leave. I will deport you.’ What if the 300,000 are suddenly kicked out?,” he said in a speech on Sunday.
The influx of Chinese workers was discussed in a Senate hearing last week. Last year, Department of Labor and Employment (DoLE) Undersecretary Ciriaco A. Lagunzad III said in a Senate hearing that Chinese workers often enter the Philippines using tourist visas.
Nagkaisa Labor Coalition Spokesperson Renato B. Magtubo said in a statement on Monday that the President’s reasoning cannot be justified.
“Making an unfounded fear the basis of his argument not to implement our laws on employing foreign nationals… is a dereliction of duty on the part of the President and his labor secretary,” Mr. Magtubo said.
The Trade Union Congress of the Philippines (TUCP) said that Chinese nationals should abide by the law if they are looking to work in the Philippines.
“(I)f there are specializations and skills unavailable in the labor market, these should be given to foreign workers who must apply for Alien Employment Permits (AEP) from DoLE and work permits from the Bureau of Immigration (BI). We clearly reiterate that TUCP is not against the entry of foreign workers, but of the adverse impact on our very own workers who are being deprived of potential employment and livelihood opportunities,” TUCP President and Congressman Raymond C. Mendoza said in a statement on Monday.
Mr. Mendoza added that DoLE and BI need to patch up flaws in the system for issuing work permits for foreign workers.
“There is no coordination between the DoLE and BI. And this is where the problem thrives. Each agency issues permits allowing foreigners to stay and work here using different criteria,” he said.
The Department of Justice (DoJ) and the Bureau of Immigration (BI) “will take their cue” from the President but added that the entry of foreign workers will be monitored.
“The DoJ/BI will take the cue from the chief executive. I understand the President’s statement to mean that illegal aliens already in our country should be given an opportunity to comply with our immigration laws and thus legitimize their stay,” Justice Secretary Menardo I. Guevarra told BusinessWorld.
“Based on news reports, the President has apparently given a signal to exercise some liberality. So I’ll discuss the government’s next moves with the BI,” he added.
Mr. Guevarra, on the other hand, said that the DoJ and the BI will continue to control the entry of foreign workers if they cannot prove that they have skills that cannot be filled by Filipinos.
“We shall ensure that measures to control the unmitigated entry into our country of unskilled and non-technical alien workers in the future shall continue to be strictly enforced,” he said, adding that these measures include devoting more resources for screening, monitoring, and intelligence operations.
The BI’s new and stricter rules, which will require foreign applicants to submit additional documents, in issuing special working permit (SWPs) and provisional working permits (PWPs) to foreigners intending to work in the country would also be another measure but “have yet to be adopted after due consultations with the DoLE (Department of Labor and Employment),” the justice secretary also said.
The BI issues special working permits to foreigners who plan to work in the country for six months while provisional working permits are issued to foreigners with pending applications for pre-arranged employment visas.
During an inquiry by the Senate committee on labor and employment development on Nov. 26, DoLE said that the BI issued SWPs to 119,840 foreigners from 2015 to 2017, most of which were given to Chinese who work for Philippine Offshore Gaming Operators.
Labor Secretary Silvestre H. Bello III said in a Senate hearing on Feb. 21 that DoLE issued a more than 169,000 alien working permits, permits issued to foreigners working for more than six months, 85,486 of which were given to Chinese nationals.
Senator Joel J. Villanueva, who chairs the Senate committee on labor, employment and human resources development, said the rules are there to protect jobs for Filipinos and the rights of the workers regardless of nationality.
“The bottom line is enforcement of laws to protect workers’ rights and our Filipino first policy. There are illegal Filipino workers abroad and we should aim to help them become legal workers. And it is the same as what we are doing here. We want legal workers,” he said in a text message.
Senate President Vicente C. Sotto III said foreigners must be subject to deportation as a consequence for violating Philippine laws.
“Deportation is a consequence if laws are violated by foreigners,” Mr. Sotto told reporters in a text message.
Sen. Francis N. Pangilinan said the government “should not be afraid of China” and should fear instead the anger of unemployed Filipinos while special treatment is given to Chinese workers.
“Uphold the rule of law and without fanfare deport these illegals. The administration should not be afraid of China in the face of hundreds of thousands of their citizens working here illegally. What it should fear is the anger of millions of our people who remain jobless while we give special treatment to these Chinese illegals,” he said in a statement on Monday.
The Senate committee on labor, employment and human resources development has been conducting hearings into the influx of foreign workers. Senators have raised concerns that the jobs the Chinese nationals were filling deprived Filipinos of employment opportunities. — Gillian M. Cortez, Vann Marlo M. Villegas, and Camille A. Aguinaldo

New department eyes ₱1-trillion budget, squatter housing focus

THE LAW creating the Department of Human Settlements and Urban Development (DHSUD), which President Rodrigo R. Duterte signed on Feb. 14, will be followed by another proposed bill which will seek to address the housing needs of around 2 million informal settler families nationwide, according to Housing and Urban Development Coordinating Council (HUDCC) Chairman Eduardo D. del Rosario.
Mr. Del Rosario told BusinessWorld in a chance interview at the Palace last week that with the creation of the DHSUD, the next area of focus will be “addressing the housing needs” of Filipinos, especially the poor.
“For a start we are planning to come up with a proposed bill which we will call Republic Act on the Development and Production of Housing Units Nationwide to target around 2 million informal settler families nationwide,” he added.
“If that is pursued and become a Republic Act, we are envisioning to have a budget of P50 billion per year for 20 years; because to construct 2 million housing units, we need P1 trillion more or less. In the next four to 20 years, we are targeting that,” Mr. Del Rosario explained.
Asked to comment, Presidential Spokesperson Salvador S. Panelo said in a chance interview at the Palace on Feb. 20 that the proposal could move forward if the funding is there. “Kung meron bang pondo eh bakit naman hindi (If it can be funded then why not?),” he said.
Lawyer and Ateneo Policy Center research fellow Michael Henry Ll. Yusingco said via e-mail on Feb. 25: “I think Filipinos are aware that there have been extensive housing projects before that are now virtual ghost towns. So any bold declaration, specifically one that calls for spending trillions of pesos, will automatically raise alarms in the minds of many Filipinos.”
Mr. Yusingco also said it should be better explained how the funding levels came to be determined. “Was there a study done? Were public consultations conducted? Was a comprehensive survey on housing and home ownership done? I am more interested to know if the projections are supported by comprehensive research and study,” he said. “We have seen how big-ticket projects can be susceptible to graft and corruption, how much more those which are not evidence-based?”
“If there is research and evidence to support the numbers claimed, then government has the responsibility to discuss this with the public. This will definitely increase our confidence in the purported plans for the new department. Remember that with one word, the President can accelerate the implementation of this vision, as he has done with the Build, Build, Build program after growing impatient at the seemingly lack of urgency shown by his underlings,” he added.
Mr. Yusingco said further that helping the public understand why such a target is necessary to eliminate homelessness in the country “will even be a bigger boost for the housing department’s plans.”
“Help us understand what needs to be done to meet this goal and show us how we can contribute to its success. I truly believe more Filipinos now want to be part of the solution than merely waiting for government to do its job,” he explained.
Professor Maria Ela L. Atienza, who chairs the University of the Philippines’ Department of Political Science, said via e-mail that “it is important to consider the causes of having informal settlers.”
“The issue of having informal settlers also cannot be solved simply by just building housing units for the homeless informal settlers but also making sure that the areas where the housing units are built are environmentally safe, culturally appropriate for the settlers, sustainable livelihood opportunities are available, easily accessible and with basic facilities like water and electricity,” she added.
“There should also be community building and basic public services like health centers, day care centers and schools with the necessary staff. If only housing units are built, without the basic infrastructures, services, and livelihood opportunities, beneficiaries will abandon their houses or there will be very few takers. This is usually the case with many resettlement communities far away from places of work and without basic facilities and infrastructures. People refuse to live there.”
Ms. Atienza added that a sufficiently large budget is needed.
“This is similar to popular laws like the Universal Health Care Law… and free tuition for (state) colleges and universities. They are needed and definitely will win popularity points but the practical questions are: (1) Will there be sufficient funding? (2) How will this be implemented?”
“Public housing must be incorporated in the economic and investment planning of the government if the area becomes a genuine priority. Given the current priorities (Build, Build, Build and intelligence spending) of the administration as well as the squabbling between the executive and legislative branches over the national budget, funding this housing program may not be given a clear priority… However, even if there is ample funding for this ambitious plan, this has to be sustained and prioritized not just by the current administration but also succeeding administrations. Accountability mechanisms must also be in place as these projects are prone to corruption and abuse. At the same time, the beneficiaries as stakeholders must also be part of participatory processes that will ensure accountability of all stakeholders but also participatory management,” she said. — Arjay L. Balinbin

DoE solicits comment for draft rules on right-of-way relocation

THE Department of Energy (DoE) has set a Thursday deadline for comment on a draft circular that will set the guidelines on how electric cooperatives will be compensated in cases when their distribution or sub-transmission lines are to be relocated to give way to government construction projects.
The draft circular is a follow through of a joint circular issued by the DoE and the Department of Public Works and Highways (DPWH) that took effect on July 27, 2017.
In that circular, jointly issued by the DoE, the DPWH, and the National Electrification Administration (NEA), electric cooperatives (EC) are given a year to remove or relocate any improperly placed facility in the government’s right-of-way area, subject to compensation.
“After the lapse of the prescribed one-year period, the NEA shall demand from the concerned EC (electric cooperative) to relocate an Obstructing Facility at its own expense. Otherwise, the NEA, with the assistance of the DPWH, shall relocate the Obstructing Facility at the expense of the EC, including the imposition of legal sanction, if any,” the 2017 circular states.
The DoE said “notwithstanding the positive effect caused by the issuance of JC1 (Joint Circular, No. 01), there is a need to issue a new Circular to facilitate the relocation of Obstructing Facilities that still exist after the lapse of the aforesaid one (1) year period.”
The draft circular will create an inter-agency task force for the final implementation of Section 13 of the joint circular previously issued by the DoE and DPWH.
The task force is empowered with functions to coordinate, integrate, supervise, monitor and evaluate the carrying out the provisions of the circular. It will be chaired by the DoE undersecretary for power, with DPWH and DoE assistant secretaries as vice-chairpersons. A representative of NEA is a member of the task force.
Under the draft circular, NEA is directed to submit within the prescribed period an inventory of all obstructing facilities nationwide. Based on the inventory, the task force will demand that the concerned EC immediately remove the obstructing facilities from the government’s right-of-way.
The affected EC will then submit to the appropriate DPWH office its relocation plan to determine the proper compensation. Within 15 days, NEA will certify whether it agrees with the EC on the cost estimate.
Only ECs that submitted their relocation plan by April 30, 2019 are entitled to receive compensation, provided that all relocation activities do not go beyond Dec. 31, 2019. — Victor V. Saulon

House adopts Senate version of proposed cash transfer law

THE House of Representatives has adopted the Senate version of a bill institutionalizing the government’s national poverty reduction program, which is known as the Pantawid Pamilyang Pilipino Program (4Ps).
Senate Bill No. 2117, or the Pantawid Pamilyang Pilipino Program Act, tasks conditional cash transfers with “improv(ing) the health, nutrition and education” of poor households. The bill was approved on third reading in the Senate on Feb. 4.
The cash transfers will be provided for a maximum of seven years, but may be extended upon the recommendation of the National Advisory Council. The measure will authorize the Department of Social Welfare and Development (DSWD) to use a standardized targeting system, as determined by the Philippine Statistics Authority (PSA), in selecting household-beneficiaries.
If enacted, the DSWD will grant the following cash transfers to beneficiaries: at least P300 per month per child enrolled in day care and elementary school and at least P500 per month for a 10-month school year for those in junior high school.
Students enrolled in senior high school are entitled to a cash transfer not lower than P700 per month. Currently, education grants range only from P300-500. The education grant may be given to up to three children, aged 3-18 years old, in every household.
The measure will also feature a P750 monthly health and nutrition grant, up from the P500 the DSWD currently grants under the program. Section 8 of the bill provided that the health grant is “a fixed amount and does not depend on the number of members in the household.”
All qualified beneficiaries shall also be automatically covered in the National Health Insurance Program.
The bill also outlined conditions that qualified recipients must comply with such as, availment of pre- to post-natal services for pregnant women, regular and health and nutrition services for children, aged zero to five years old; and deworming pills for those aged one to 14 years old, among others.
Households will also be required to have children aged three to four years old attend day care or a pre-school, children between five and 18 years attend elementary or secondary classes and least one responsible person must attend family development sessions conducted by the DSWD once a month.
Noncompliance may be grounds for termination of the cash grants, subject to assessment by the DSWD. Failure to comply for one year may result in the household’s removal from the program. — Charmaine A. Tadalan

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