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Doubts on federalism

Finance Secretary Carlos G. Dominguez III met with some members of the Consultative Commission (ConCom) on the government’s proposed change to federalism. He asked, “Who is going to pay for the national debt? Who is going to pay for the military? Who is going to pay for the [Department of Foreign Affairs] and the central bank? I mean if it needs additional capital, who is going to put it up?” (philstar.com Aug. 7, 2018). And the ConCom’s response was, “the sharing with the local governments or the states will be after those expenses” (Ibid.).
“But you know, when I read the draft, it doesn’t say so there. It just says 50%,” Dominguez said. Not clear.
At the Senate hearing last week on the ConCom’s proposed draft charter, Dominguez told senators that while the Duterte administration’s economic team has no official position yet regarding federalism, he agrees with Socioeconomic Planning Secretary Ernesto Pernia on the potential fiscal risks of the proposed change in form of government. Pernia had stressed that while federalism could unlock economic benefits, it could also spell disaster for some regions not prepared for such a transition and “wreak havoc” on the country’s balance sheet (Ibid.).
When asked how much budget was needed for the proposed shift to federalism, Pernia said, “Our rough estimate is P120 billion but this is just the direct cost, there will be indirect costs like disruptions and other things” (CNN Philippines Aug 8, 2018). Dominguez admitted he is also confused about the proposed shift to a federal form of government, as senators pressed more for how much the transition would cost (Ibid.).
Sen. Francis Escudero questioned why is there even a P90-million information campaign for federalism, when even the country’s economic managers are confused about the proposed shift (Ibid.). And aside from the ConCom’s version, the House Committee on Constitutional Amendments and the ruling party PDP-Laban have different versions of the proposed federal charter.
Would you then vote against the shift if the draft federal constitution is presented for ratification now, the senators asked. Dominguez said, “Absolutely” (Ibid.). And that was what drew the ire of ConCom member and San Beda Graduate School of Law Dean Father Ranhilio Aquino. “If (Duterte) favors federalism let him sack Dominguez and Pernia or command them to keep their traps shut. Freedom of expression does not apply to Cabinet officials in respect to policy,” Fr. Aquino said (philstar.com Aug 9, 2018).
“Enough of double-talk. If the President is now cool to federalism let him give the order to abandon the federalist ship. Then all of us fools who wrote the draft and defended it with all our might will know that we have been taken for a ride — for a very expensive ride — but we shall at least have the chance to abandon ship before it is scuttled!” he said.
Fr. Aquino’s subjective reaction jolts more than Secretaries Dominguez’s and Pernia’s objective and candid cost-benefit analysis of federalism. Why does the Reverend Father cry out for their blood, for speaking their minds? “Sack Dominguez and Pernia,” he says with such vehemence to Duterte — the ruling “god” that wants us to convert to federalism.
But why, in the first place, has the ConCom developed into that shackle of justifying and pushing for federalism, when it was supposed to be an independent “consultative” assembly that could come out, for or against, the concept of federalism as would be applicable and workable for our country?
And in this seeming mind-set of working towards what Duterte wants instead of what is good for the people, the ConCom (e.g., Fr. Aquino) will be ready to “jump ship” (leave Duterte?) and reverse themselves on their 100% conviction that federalism is the only way to go for 109+ million Filipinos. What emerges here is the specter of professionals — academicians, lawyers, economists, businessmen, and other enlightened “consultants” who have sold their people down the river for the edited and tailored draft of a federalist charter promised by Duterte when he was still campaigning.
In a poll conducted from June 15 to 21, Pulse Asia found that 67% of Filipinos are against Charter change, an increase of 3 percentage points from 64% in March 2018. Of this, 37% said they do not want to amend the charter now and in the future, while 30% expressed openness to altering the constitution sometime in the future but not now. Three quarters of Filipinos (74%) have “little/almost no/no knowledge at all” about the current constitution, and 62% of Filipinos are not in favor of replacing the present unitary system of government with a federal one (philstar.com July 16, 2018).
A separate Social Weather Stations’ poll conducted March 23 to 27, however, showed that 34% favored the federal system of government while 29% expressed opposition to it, and 34% were undecided about the matter. Of the 1,200 respondents, 75% only learned about the federal system during the conduct of the poll (Ibid.).
Clear as day that Filipinos are still in the dark about federalism.
With some of Duterte’s own men now expressing doubts about its viability and soundness, it cannot be rushed and ratified to seal in the self-serving advantages preemptively claimed by some of those in present power and influence.
When in doubt, don’t!
 
Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.
ahcylagan@yahoo.com

Business chambers caution on federalism

BUSINESS GROUPS in a joint statement on Sunday, Aug. 12, supported the call by economic managers of the Duterte administration to “weigh carefully” the costs and risks in the government’s planned shift to a federal system.
“We, the undersigned business organizations, appeal to our legislators to weigh carefully the costs, risks and uncertainty associated with the proposed monumental shift to a federal system of government,” said the joint statement by the Cebu Business Club, Employers Confederation of the Philippines, Financial Executives Institute of the Philippines, Makati Business Club, Management Association of the Philippines, Philippine Chamber of Commerce and Industry Inc., and Philippine Exporters Confederation Inc.
The statement also said, “Accordingly, we echo the concerns of fiscal and economic experts about the ambiguous provisions on the division of revenue and expenditure responsibilities between the proposed federal government and its federated regions.”
“Reports indicate an alarming cost to the would-be multi-level government under a federal system. Preliminary estimates range from P72 billion of the Philippine Institute for Development Studies (PIDS) to P130 billion of the National Economic Development Authority (NEDA). The fiscal deficit is estimated to reach 6.7% of the gross domestic product, which is way beyond the sustainable 3 percent target of our fiscal managers—a prudential limit also observed by the European Union for its member countries.”
“We worry about the dire consequences that such fiscal imbalance could have on the economy and the flagship Build, Build, Build program of the current administration.”
The statement also said, “We commend the economic managers in the Department of Finance, the Department of Budget and Management, National Economic and Development Authority, Bangko Sentral Ng Pilipinas, as well as the researchers in the Philippine Institute of Development Studies for their transparency in openly sharing their analysis and airing their concerns to the public. We support and join their call for a more detailed analysis of the fiscal impact of federalism to serve as basis for the deliberations in Congress.”
“As always, the business community stands ready to work with our political and economic leaders to bring about sustained and inclusive economic growth in the country.”
According to a statement from the Department of Finance last Friday, Finance Secretary Carlos G. Dominguez III said in part that, “based on the fiscal provisions of the draft federal Charter, the federal government would incur a deficit of 6.7 percent, which may result (in) a credit rating downgrade for the Philippines, which currently enjoys an investment-grade rating.”
This means “the Federal government will have to cut its expenditure program by P560 billion,” Mr. Dominguez also said in the statement.
“This means the national government may have to lay off 95 percent of its employees, or reduce the funds for the ‘Build Build Build’ program by 70 percent, or a combination of both,” he added.
Mr. Dominguez, at a Senate appearance last Wednesday where he was joined by Budget Secretary Benjamin E. Diokno and Socioeconomic Planning Secretary Ernesto M. Pernia, flagged the possible cost of a federal system under the proposed federal charter submitted by the Consultative Committee (Con-Com) to Review the 1987 Constitution.
But in his statement, Mr. Dominguez also qualified, “we never stated that we are against federalism. Rather, with respect to the fiscal provisions of the proposed Constitution, there are ambiguous provisions on revenue assignment and there are no provisions on expenditure assignment.”
For his part, Senate President Pro Tempore Ralph G. Recto also on Sunday said the shift to a federal form of government should undergo a “fiscal responsibility check” to determine whether the government can handle the costs.
“It’s like a four-way test. What is the cost to implement it? Do we have the money for it? Do we have to raise tax or impose fees or create savings or borrow money? What is the per capita burden it will impose?” he said in a statement.
He said the country’s economic managers should not be left out from the discussions since they “provide a reality check if a proposal is financially feasible and fundable.”
“Especially now when our debt needle is moving up. Of course when the(re) are expenditures, we should ask the people who manages the government’s money,” he said.
Senator Sherwin T. Gatchalian has filed a resolution directing the Senate to look into the potential economic impact of federalism.
Mr. Gatchalian said Senate Resolution No. 823, filed on Aug. 7, will look into the economic risks and opportunities, impact on regional economic growth, additional fiscal costs of the shift to federalism, effects on investments due to emerging issues on the imposition of additional taxes, administration of incentives, and repercussions on ease of doing business in the country. — with a report by Camille A. Aguinaldo

Job fair launched to complement ‘Build, Build, Build’ infra program

AROUND 17,000 jobs vacancies were offered Sunday, Aug. 12, at the “Jobs, Jobs, Jobs” Caravan led by government agencies under the Duterte administration’s “Build, Build, Build” infrastructure program.
The job fair, held 8:30 a.m. to 4:30 p.m. at the SMX Convention Center in Pasay City, was attended, among others, by Finance Secretary Carlos G. Dominguez, Budget Secretary Benjamin E. Diokno, and Trade Secretary Ramon M. Lopez, as well as Public Works Secretary Mark A. Villar, Transportation Secretary Arthur P. Tugade, and Labor Secretary Silvestre H. Bello III.
Most of these officials form part of the economic cluster of President Rodrigo R. Duterte’s Cabinet. At Sunday’s job fair, they represented their agencies which were identified as the lead departments in that event. Also in attendance were President/CEO Vivencio B. Dizon of the Bases Conversion and Development Authority and Communications Secretary Martin M. Andanar.
According to updates by the Department of Labor and Employment (DoLE) and the Department of Transportation (DoTr), 17,159 vacancies were offered at the job fair from 40 employers and contractors operating under the “Build, Build, Build” program.
In his remarks as of 2:00 p.m. Sunday, August 12, Mr. Villar said “Natutuwa kami na as of now, 3,000 na po ang uma-attend sa ‘Jobs, Jobs, Jobs’…. Makikita niyo po marami ay nabigyan ng trabaho.” [We are happy that, as of now, 3,000 attended the “Jobs, Jobs, Jobs”….You can see that many were given jobs].
DoLE’s update as of 1:30 p.m. said a total 2,665 applicants registered at the job fair, with 27 hired on the spot and 206 shortlisted.
Mr. Lopez, for his part, cited a number of big construction players under which 500 were hired on the spot.
Mr. Bello, in turn, said, “[W]e are prioritizing yung mga kababayan natin na na-repatriate…. ‘Yung mga Saudi, ‘yun ang aming tina-target upon strict orders of the President na lahat ng na-repatriate nating manggawa galing sa Saudi ay mabibigyan ang first break sa programang ‘Build, Build, Build’ ng ating Pangulo.” (We are prioritizing our repatriated workers….Those from Saudi [Arabia], they’re our target, upon strict orders of the President that all our repatriated workers from Saudi [Arabia] will be given the first break in the “Build, Build, Build” program of our President.)
For his part, Mr. Tugade said, “Ang mga taong gusto magtrabaho at magempleyo sa mga riles, sa mga subway, ay kukuha ng class program at kukuha ng certification. Bago mag-o-operate ang subway, uumpisahin namin ang training.” [“Those who want to be employed in the railway and subway projects under ‘Build, Build, Build’ will get a class program and a certification. Before the subway will operate, we will start training”].
A social-media statement by DoTr said in part that the job fair was open to, among other skilled workers, “engineers, architects, carpenters, welders, and other (workers with) construction-related skills. The other jobs available include support staff in the fields of accounting, finance, Information Technology (IT), customer service, etc.”
Mr. Villar said the Caravan will be the first of many the government plans to bring around nationwide.
“‘Yung mga projects ng ‘Build, Build, Build’ nationwide, actually mas marami pa sa probinsya. Heto po ang unang job fair pero magkakaroon ng marami pang job fair sa iba’t ibang lugar,” he said. (The projects under the ‘Build, Build, Build’ [program] nationwide, actually there are more [vacancies to be offered] in the provinces. This is the first job fair but there’ll be more job fairs elsewhere around the country).
Mr. Diokno, for his part, said his agency is exploring options to keep the infrastructure program, including turning over the “inactive budget” of the Department of Public Works and Highways to next year’s funding.
Pinag-aaralan namin lahat ng options including their inactive budget nu’ng 2018 dahil marami pang proyekto nu’ng 2017 at 2018 na hindi pa nagagawa. Pag ina-add mo ‘yun sa 2019, napakalaki pa rin ng budget,” the budget chief said, amid the House of Representatives’ suspension of hearings on the proposed 2019 budget. with Janina C. Lim and Gillian M. Cortez

Malacañang tells public to stay alert as 961 areas hit by flooding

MALACAÑANG ON Sunday reminded the public to “stay alert and safe” amid flooding and heavy rains in various parts of the country, especially in Metro Manila and parts of Luzon. “Sa mga lugar na nakakaranas pa rin ng pagbaha, hinihikayat po namin kayo na manatili sa mga evacuation centers na inihanda ng inyong lokal na pamahalaan [For those in areas that are still flooded, we urge you to stay in the evacuation centers designated by the local government units],” Presidential Spokesperson Harry L. Roque, Jr. said in a statement on Sunday, Aug. 12. Citing data from the National Disaster Risk Reduction and Management Council, Mr. Roque said 961 areas were reported to have experienced flooding. These are in Regions I (Ilocos), III (Central Luzon), CALABARZON, MIMAROPA, VI (Western Visayas), X (Northern Luzon), Cordillera Autonomous Region, and the National Capital Region. — Arjay L. Balinbin

17 towns, 1 city in Pangasinan on alert as San Roque Dam releases water

RESIDENTS in 17 towns and parts of one city in Pangasinan have been put on alert as the San Roque Dam started spilling operations at 2:00 a.m. Sunday, Aug. 12. The Provincial Disaster Risk Reduction and Management Council (PDRRMC) issued the warning to areas along the Agno River, namely: the towns of San Manuel, San Nicolas, Tayug, Asingan, Sta. Maria, Rosales, Villasis, Sto. Tomas, Alcala, Bautista, Bayambang, Mangatarem, Urbiztondo, Aguilar, Bugallon, Lingayen, and Labrador; and parts of San Carlos City. As of 9:00 a.m. yesterday, the San Roque Dam had four gates open with water level at 281 meters above sea level (MASL), breaching the normal high water level of 280 masl. Spillway gate discharge was at 298 MASL. The National Power Corporation (NPC), in its dam monitoring, said while alert was up, the water discharge was not expected to cause flooding in the warning zones.
BENGUET
Meanwhile, in Benguet, two dams — the Ambuklao Dam in Bokod and the Binga Dam in Itogon — were at “critical” level as of Sunday morning. The NPC said spilling operations “might cause extensive flooding in cultivated land and residential areas” in the two towns.
MONSOON RAINS
Weather bureau PAGASA, in its 4:00 a.m. Sunday weather update, said monsoon rains and thunderstorms were expected over Luzon and parts of the Visayas until Tuesday, and possible Wednesday. PAGASA Weather Specialist Meno Mendoza said they are also monitoring another tropical storm, with international name Leepi, located 2,230 kilometers east of northern Luzon, although it is not expected to enter the Philippine area.

Tons of trash

Workers collect trash washed up by strong waves along the Manila Bay shore as the southwest monsoon, intensified by tropical storm Karding (international name: Yagi), brought rains and floods in the National Capital Region over the weekend.

Iloilo City proposes legalizing ‘barkers’ as public transport dispatchers

THE ILOILO City government is proposing to train “barkers” and accredit them as authorized dispatchers of transport organizations. The city’s Anti-Barker Ordinance, under Regulation Ordinance 2014-94, defines a barkers as a person “who calls for, facilitates, induces or convinces commuters to board a particular preferred public utility vehicle (PUV)…for the purpose of extracting an amount from the driver.” The Public Safety and Transportation Management Office (PSTMO) is implementing the ordinance, and those apprehended are jailed for a minimum of three months to a maximum of six months. PSTMO head Jeck Conlu said with the proposal, which is still subject to public consultation, barkers will be given training on how to facilitate the parking and loading of passengers, and the send-off of the PUV. “The accreditation will come on the later part. While we are doing the apprehension, we do the consultative meeting,” he said. The accredited dispatchers will be designated at loading and unloading areas, particularly in congested areas. Iloilo City Mayor Jose S. Espinosa III said he wants a holistic study to eradicate the barkers. “We will take it into consideration and have the study on how to go about this. Because it might not solve the problem but might only aggregate the situation,” he said. — Louine Hope U. Conserva

Symbolic Balangiga bells to be returned by US, Malacañang confirms

MALACAÑANG ON Sunday confirmed that the United States will soon return the Balangiga bells, which were taken as a war booty by members of the US army during the Philippine-American War in 1901 from the Catholic church in Balangiga, Eastern Samar.
“We have been informed of the announcement by the US Department of Defense about the Balangiga bells,” Presidential Spokesperson Harry L. Roque, Jr. said in a statement on Sunday, Aug. 12.
He added: “We welcome this development as we look forward to continue working with the United States Government in paving the way for the return of the bells to the Philippines.”
Eastern Samar Representative Ben P. Evardone cheered the news saying the bells “rightfully belong to us as a symbol of freedom and justice.”
“I hope that they will be returned to us in time for the 127th anniversary of the Balangiga Encounter Day on September 28. The return will hopefully finally erase the remaining irritant or vestiges of the Philippine-American War,” Mr. Evardone added.
Northern Samar Representative Raul A. Daza, for his part, said the bells’ return “would, finally, rectify a grievous historical wrong inflicted by the Americans not only on the Samareños but rather on the Filipino nation.”
Mr. Daza also said, “After the many false hopes raised by past U.S. administrations, I hope this development is for real… The bells are not merely religious relics. They are an eloquent symbol of the courage and patriotism of the Filipino. They also are a reminder to the present generation of Filipinos that now, as in the past, they should and can resist foreign domination in any form.” — Arjay L. Balinbin

Health facility in Marawi relocation site to be set up

SEVERAL PRIVATE sector groups have partnered with the military to build a health facility in Barangay Sagonsongan, where the largest relocation site in war-torn Marawi is situated. The benefactors are the Makati Medical Center (MMC) Foundation, Solid Group, Inc., Philippine Disaster Resilience Foundation (PDRF), US Philippines Society (USPS), Project Handclasp Foundation, and the MVP Tulong Kapatid CSR Council. The Armed Forces of the Philippines (AFP) will provide Philippine Navy ships and Philippine Air Force planes to ferry the MyHouse modular structure, and medical equipment and supplies. The AFP and the MMC Foundation will be the lead project proponents. Once set up, the RHU will be turned over to the Marawi City and Lanao del Sur provincial governments.

DTI-ARMM steps in to curb food shortage, rice price inflation after fire in Sulu

THE DEPARTMENT of Trade and Industry (DTI) office in the Autonomous Region in Muslim Mindanao has stepped in to curb what it tagged as “a massive price inflation of rice and shortage of food supply” in the island province of Sulu. In a statement last week, the DTI-ARMM said price ceilings have been set and monitoring activities are ongoing through its Sulu office in coordination with the Sulu Provincial Local Price Coordinating Council (LPCC) and the local government. “Recently, Malaysian rice traders who have sold rice higher than the normal price due to the closure of backdoor trade were advised to strictly observe the price ceiling set by the Sulu Provincial LPCC,” DTI-ARMM said. It also urged consumers to report “abusive traders” to the Rice Price Control Task Force at telephone number 0916-359-3394. A fire on July 24, considered the worst on the island since the 1970s, affected about 26,000 residents in the capital Jolo. The damage is estimated at P35 million with around 3,000 houses destroyed.

Nation at a Glance — (08/13/18)

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

Slaughter holds latest title with significance

By Michael Angelo S. Murillo
Senior Reporter
EXPERIENCING his fair share of missed big moment opportunities in the Philippine Basketball Association (PBA), the significance of their latest title is not lost to Barangay Ginebra San Miguel Kings center Greg Slaughter.
Completing the dethronement of erstwhile PBA Commissioner’s Cup champions San Miguel Beermen, 4-2, with a 93-77 victory in Game Six of their best-of-seven finals series on Aug. 8, the Kings completed a turnaround to their campaign that saw them reversing a 1-5 start to becoming a champion of the midseason PBA tournament.
Champion Kings coach Tim Cone gave a lot of props to his seven-foot center Slaughter, referring to him as the “difference maker” in the series for his ability to defend San Miguel’s June Mar Fajardo and how in the process it changed the way the Beermen played.
Mr. Slaughter, however, chose to deflect the credit but nonetheless said he is very proud and happy for what they have accomplished.
“We pulled this is off as a team. Everybody stepped up. Everybody put their egos aside. Everybody played their role and we got it done,” said the former Ateneo player following their Game Six victory.
He went on to say that when he got injured in 2016 and eventually missed the Philippine Cup finals against the Beermen, it was hard for him since he felt he could have helped in said series.
“In 2016 when I tore my ACL, It was tough as I missed a lot of opportunities. We played San Miguel in the finals and we weren’t able to beat them when I was out,” he said of the series where Barangay Ginebra was ousted in five games, 4-1.
In the Philippine Cup this season, the Kings also fell to the Beermen but in the semifinals in five games, 4-1, as well.
So for his team to exorcise the ghosts of those earlier defeats to San Miguel with him in tow and healthy is an amazing feeling, he said.
“I’m just glad we’re able to win this championship. After such a long conference, we had a tough start going 1-5, and now we’re here. It’s very fulfilling,” said Mr. Slaughter, who averaged 13.3 points and 7.5 rebounds, apart from showing his ability to defend Mr. Fajardo in single coverage, en route to finishing second to teammate Scottie Thompson in the finals most valuable player voting.
“We showed what we can do when we’re complete and we’re able to stop San Miguel,” he added.
Now holding another title, which he considers as the “best” to date for him, the goal of the team is to continue rolling.
“That’s what we are working for. We are a confident team and we feel we should be up there with the top teams in the PBA,” Mr. Slaughter said.
Next up for Mr. Slaughter and the Kings is the PBA Governors’ Cup where they are the two-time defending champions.
The last conference of the PBA season opens shop on Aug. 17.