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Credit rating a factor in corporate tax cuts — DoF

PRESERVING the Philippines’ credit rating will be a consideration when cutting corporate tax rates in the second round of tax reform, with the elimination of incentives to help offset foregone revenue, the Department of Finance (DoF) said.

“We are going to reduce the corporate income tax (CIT) rate from 30% to 25% over time. But we will do this responsibly, meaning we will only do this once we find savings from incentives that are redundant, or not contributing to the economy,” Finance Undersecretary Karl Kendrick T. Chua said at a the Davao City Chamber of Commerce and Industry conference on Friday.

“We’re doing our best to keep our investment-grade credit rating very competitive,” he added.

“We have to maintain fiscal sustainability. Once investors see that a country’s finances are unsustainable, interest rates go up. Government would pay P30 billion more in interest and principal debt payments,” Mr. Chua said, adding that payments on household loans could increase by P100 billion overall.

The DoF submitted to Congress Package 2 of the Tax Reform for Acceleration and Inclusion (TRAIN) program on Jan. 16 that featured a 1% reduction in the corporate tax rate provided that the government collects 0.15% of gross domestic product (GDP), or about P26 billion, from streamlining tax incentives given to firms.

However, these conditions were not present in House Bill No. 7458 as filed by Reps. Dakila Carlo E. Cua, Aurelio D. Gonzales, Jr., and Raneo E. Abu on Wednesday.

HB 7458, a copy of which was given to BusinessWorld by the office of Mr. Cua, cuts the 30% corporate income tax annually starting January 2019 without any conditions, provided that the rate does not go below 20%.

Key features of the bill that do mirror the Finance department’s proposal were the repeal of tax holidays given by Investment Promotion Agencies that do not fall under the Strategic Investments Priority Plan; the designation of the Fiscal Incentives Review Board — chaired by the DoF — to be the overall administrator of tax perks, a five-year cap on incentives, and the disallowance of transfer pricing, among others.

The Philippines currently holds a “BBB” rating from Fitch and S&P, and a “Baa2” from Moody’s, which all are a notch above investment-grade.

Mr. Chua said that the government gave out a total of P300 billion worth of tax breaks, including the involving VAT, in 2015.

“If we collect P130 billion, we would cut (tax rates) by 5%. I’m just asking for P130 billion out of P300 billion. So I’m not removing incentives totally,” he said.

Mr. Chua did not respond to requests for specific comment on the House bill.

The bill follows the enactment of TRAIN, or Republic Act No. 10963 — consisting of cuts to personal income, estate and donor taxes, removal of some VAT tax exemptions, increase in taxes for automobiles, fuel, tobacco, minerals, and a new tax on sugar-sweetened beverages and cosmetic procedures — which was approved by President Rodrigo R. Duterte on Dec. 19.

Sought for comment, Tax Management Association of the Philippines President Raymund S. Gallardo meanwhile opposed the conditional cut of the corporate income tax rate as the government may not implement it promptly.

“This might bring apprehension that if the condition is not met, the condition might not be effected. The 1997 Tax Code provided for a transition to taxing income at 15% of the gross income if certain conditions are met. This was never implemented as the conditions were never met or simply not pursued,” Mr. Gallardo said in a mobile phone message yesterday.

“A reduction in CIT rate dependent on a condition is not a tax policy or rule that is certain, which is one of the factors considered important by foreign investors most especially. Policy changes affecting existing tax incentive structure should be evaluated independently from the issue of reducing the CIT Rate. The reduction should not inexorably tied to a condition which in effect is tantamount to a zero-sum game,” he added.

Senate ways and means committee chairperson Juan Edgardo M. Angara said that the panel has yet to set a date for the filing of the bill, as it is currently focused on the estate and general tax amnesty bill — a measure to shore up complementary revenues for TRAIN.

“We’re still talking (with DoF). The lines are always open. But they know we’re busy with the amnesty. We’re in touch with them on the amnesty now. We’re polishing it off,” Mr. Angara said in an interview last week.

Asked what Senate’s main concerns are about the second round of tax reform, he said: “It’s not just the revenue implications but also the issue of jobs, jobs produced, what kind of jobs, do they generate high incomes, was there an improvement in the local economy, was there technology transfer, did it help develop in other development areas, did the roads improve? All those metrics of development we’ll be looking at.” — Elijah Joseph C. Tubayan, Camille A. Aguinaldo

US spending bill reauthorizes GSP

THE signing of the US Omnibus Spending Bill on March 23 provided continued authorization for that country’s Generalized System of Preferences (GSP), benefiting Philippine exporters, the Department of Trade and Industry (DTI) said.

“We wish to thank the US government for the timely renewal of the GSP program, as Philippine exporters will continue to benefit from enhanced market access to the United States under GSP,” Trade Secretary Ramon M. Lopez said in a statement issued over the weekend.

The DTI said the previous GSP program in force since 2015 expired at the end of 2017.

GSP programs allow beneficiary countries to export products to the US without duty.

The program now runs through 2020 after President Donald J. Trump signed the Omnibus Spending Bill. The legislation provides for refunds on duties charged on for goods shipped during the period when the program had expired.

The US GSP program covers a total 5,057 products, some 47.7% of the 10,600 total US tariff lines. Of these, about 3,500 are available to all beneficiary developing nations while least-developed countries can ship an additional 1,500 products without duty.

GSP exports account for about 18% of Philippine exports to the US, valued at $1.59 billion.

Top GSP exports to the US include telescopic sights for rifles, spectacle lenses other than glass, new pneumatic radial tires made of rubber, nonalcoholic beverages not including those from fruits and vegetables, and electrical machinery and equipment parts.

“This is important not only in ensuring advantages for our exporters but equally critical, to heighten the Philippines’ advantage as location for manufacturing these products,” Trade Policy Undersecretary Ceferino S. Rodolfo said in the statement.

The Philippines has had initial talks with the United States for a bilateral trade agreement. — Janina C. Lim

Gov’t to tout reforms, building program in 5th WTO review

THE government expects to highlight progress in economic reforms as well as its aggressive infrastructure program when the World Trade Organization (WTO) conducts its fifth trade policy review.

“This fifth trade policy review will be an opportunity not only to highlight the country’s impressive economic growth but also to share critical policy reforms and aggressive infrastructure program being undertaken by the Duterte administration,” Trade Secretary Ramon M. Lopez said in a statement over the weekend.

The review will take place in Geneva on March 26 and 28.

The previous review conducted in 2012 touched on the country’s stalled investment potential, among other issues, which was blamed on infrastructure bottlenecks.

“It also signals that the Philippine government is actively engaging the international community, self-confident in the policies we are implementing,” Mr. Lopez added.

The review in Geneva follows last year’s visit by the WTO secretariat to the Philippines to gather more information for the Report on Philippine Trade Policy to be presented at the meetings.

The third-party report was supplemented by a counterpart Philippine Government Report submitted in December.

Ahead of the Geneva meeting, these reports are farmed out to member countries that can raise further questions or comments on the Philippines.

Twenty-two countries including US and China have submitted questions that range from the country’s tariff structure, restrictions on investments, import licensing requirements, the rice tariffication process as well as those indirectly related to trade such as gender equality and visa availments.

The Philippines has responded to these queries in writing.

“The review process, while allowing other WTO members to seek clarification on our domestic policies, presented a good opportunity for national agencies to reflect internally on our trade and investment regime in the context of our commitment to the WTO and more importantly our greater objective to make trade more inclusive so that, as President Rodrigo R. Duterte has clearly and repeatedly articulated, no one is left behind,” Undersecretary Ceferino S. Rodolfo said.

Mr. Rodolfo, who will lead the Philippine delegation, will be joined by senior officials of the Departments of Trade and Industry, Agriculture, Foreign Affairs, Finance, Labor, the Board of Investments, the National Food Authority, the Food and Drug Administration, the Intellectual Property Office and officials dealing with government procurement.

The WTO, of which the Philippines has been a member since 1995, conducts periodic trade policy reviews of member economies.

For developing countries like the Philippines, the review is conducted every six years. — Janina C. Lim

US sees trade deals shoring up Asian strategy

THE United States views trade deals to be critical to its overall strategy in the Asia-Pacific, and considers the Philippines to be among the countries where trade agreements would be advantageous, the Department of Trade and Industry (DTI) said.

Trade Secretary Ramon M. Lopez told reporters in a mobile phone message: “Learned that USTR (United States Trade Representative) Amb. (Robert E.) Lighthizer has acknowledged in a recent US Congressional hearing that… having an FTA with… countries in the Pacific such as Japan, Malaysia and Vietnam” are key to the US strategy in the region and that pursuing increased trade with the Philippines is also “a reasonable first step” in pursuing this approach.

“I believe that this is a good indication we will be able to elevate the quality of our trade ties with the US, going beyond the current GSP arrangements,” Mr. Lopez added.

The US and the Philippines have been in talks for a bilateral trade agreement — the first taking place during President Donald J. Trump’s visit to the Philippines for the 31st Association of Southeast Asian Nations (ASEAN) summit in November.

Under the 1989 bilateral Trade and Investment Framework Agreement (TIFA), the United States and the Philippines have several agreed to cooperate in customs administration and trade facilitation protocol, and stopping illegal transshipments of textiles and apparel, among others.

According to the USTR, goods and services trade with the Philippines were worth $27 billion in 2016, with exports at $10.8 billion and imports at $16.2 billion. — Janina C. Lim

Tax Appeals Court rules against firm in condominium deposits case

THE Court of Tax Appeals (CTA), sitting en banc, upheld on Wednesday a P559-million tax collection ruling by the Bureau of Internal Revenue (BIR) against Manila-based G&W Architects, Engineers and Project Consultants (G&W).

The 20-page resolution reversed the CTA First Division’s previous decision which cancelled G&W’s expanded withholding tax (EWT) and documentary stamp tax (DST) deficiencies from 2004 that amounted to P559,725,024.90, which had a 25% surcharge for late payment and 20% interest per annum until fully paid.

According to G&W, its use of pooled owner’s funds in the construction of condominium units on behalf of the owners is “tax-exempt because it does not constitute a taxable sale, exchange, or disposition of real property” hence it is “not subject to creditable withholding tax (CWT), capital gains tax (CGT), value-added tax (VAT) and DST,” except the P15 on its contractual agreement.

The CTA en banc, however, agreed with CTA First Division Presiding Justice Roman G. Del Rosario’s dissenting opinion which pointed out the arrangements in the contracts of W&G and its clients are not different from a contract to sell, therefore making their transactions a taxable sale of a condominium unit.

“Furthermore, records disclosed petition’s contemporaneous and subsequent acts that point to contract of sale/contract to sell,” the resolution said. It added:

“Petitioner even applied for and was granted Licenses to Sell the condominium units by the Housing and Land Use Regulatory Board (HLURB, thereby tacitly admitting that it was engaged in the selling of condominium units.” — Dane Angelo M. Enerio

Senate, House reconcile electric cooperative resiliency bills

THE SENATE and the House of Representatives have reconciled their versions of proposed legislation that will allocate state funding for emergency and resiliency initiatives of the country’s 122 electric cooperatives, the Senate’s energy committee said in a statement during the weekend.

“With this reconciled version of the bill, we will create a culture of resiliency in our electric cooperatives and will be responsive to their needs in the aftermath of natural disasters,” said Senator Sherwin T. Gatchalian, the principal sponsor of the Electric Cooperatives Emergency and Resiliency Fund Act (ECERF), as he presented the bicameral conference report before the Senate.

He said the measure, once approved by the President, would provide reliable power to “tens of millions of Filipinos nationwide.”

Mr. Gatchalian, the chairman of the Senate energy panel, said both chambers of Congress harmonized provisions of Senate Bill No. 1461 and House Bill No. 7054.

The legislation will appropriate an initial amount of P750 million for the purpose, carved out from the P7-billion budget of the National Disaster Risk Reduction and Management Council.(NDRRMC) for electric cooperatives (ECs).

“The amount shall be immediately released to the National Electrification Administration Quick Response Fund for proper release to qualified electric cooperatives,” said Mr. Gatchalian, the author and the primary sponsor of the bill’s Senate version.

He noted that the ECs would no longer have to pass on the reconstruction costs of their damaged infrastructure from natural calamities directly to their more than 11 million consumers.

Mr. Gatchalian said a subsequent budget allocation would be included in the General Appropriations Act under the Electric Cooperatives Emergency and Resiliency Fund (ECERF).

“The allocation of the fund shall be exclusively for the restoration or rehabilitation of the electric cooperatives’ damaged infrastructure after a fortuitous event,” he said.

The amount should not be used for the conversion of a calamity loan into a grant, he added. He said the bill requires ECs to submit to the National Electrification Administration (NEA) their respective vulnerability and risk assessments, resiliency compliance plans, and emergency response plans every year as part of the requirements to access ECERF.

NEA has been mandated to receive funds, materials or equipment intended for the restoration and rehabilitation of the electric cooperatives’ infrastructure that was damaged by natural calamities.

Mr. Gatchalian said he was confident that the ECERF Act would be signed by President Duterte before his third State of the Nation Address in July.

GOCC subsidies decline 27% in January; NIA gets P426 million

SUBSIDIES for government-owned and -controlled corporations (GOCCs) declined 27.17% in January, the Bureau of the Treasury (BTr) said.

The government’s cash operations report for January shows remittances of P922 million to state-owned firms, down from P1.27 billion a year earlier.

The January total was also sharply lower compared with the P31.23 billion recorded in December.

Seventeen out of the 49 GOCCs received subsidies in January, down from 19 recipients a year earlier.

The National Irrigation Administration (NIA) was given P426 million, or about half of the total.

This was followed by the Philippine Health Insurance Corp. with P119 million, or 12.91% of the total.

The Philippine Children’s Medical Center and the Philippine Heart Center also received P78 million and P72 million, respectively.

Subsidies are granted to state-led financial and non-financial institutions to cover operational expenses that are not supported by their respective revenues.

The government is budgeting P188.93 billion for GOCC subsidies this year, up 26.12% from the 2017 budget.

The government remitted a total of P131.09 billion to state corporations last year, or 13.88% short of the target. — Elijah Joseph C. Tubayan

Unlocking more possibilities for women in ASEAN

The Philippines is thought to be a bit ahead in gender parity in the region. According to the Global Gender Gap Index, the Philippines is ranked 7th out of 145 countries — the highest-ranked country in the Asia-Pacific and the only one to make it into the top 10 worldwide. Studies have found that 37% of senior management and board positions are held by women – ranking the Philippines also in the global Top 10. According to the index, Filipino women are also more active in starting a business than men (51%). Globally, the Philippines has the smallest gender gap among business owners, with a split of 55% male against 45% female.

While the statistics provide a positive picture of female empowerment in business circles, the Philippines can still improve further the role of women in the work force where there are gaps in education, skills, social standing and even geography. This is a finding in a recent EY report titled “Can ASEAN move forward if women are left behind?”

The report is particularly relevant and timely, given the recent 50th anniversary of the Association of Southeast Asian Nations (ASEAN) as well as the creation of the ASEAN Economic Community. Among the major insights contained in the report include the observation that ASEAN economies are increasingly recognizing the reality that to genuinely achieve sustained economic growth, it is vital to invest in gender parity and women. Studies have shown that doing so can contribute significantly toward building greater capacity and a higher quality work orce to drive further economic growth. Yet, the degree of investment in women across ASEAN remains disparate and gender parity champions see that there is still a collective need to ensure that hard-won gains on achieving gender parity are not lost amid a fast-changing environment.

Ambassador Delia D. Albert, SGV Senior Adviser, who participated in the study says: “The ASEAN region is still dominated by many gaps. There are horizontal gaps that consist of development gaps between and among the member countries, as well as gender equality gaps. There are also the vertical gaps between women who are well-educated and have better access to leadership roles and those who have fewer possibilities and are stymied by economic and social circumstances. These gaps hinder the possibilities for leadership roles.”

To that end, governments play an important role in working with corporations to ensure that women have equal opportunities. “In view of the varying stages of development and systems in the 10 member countries of ASEAN, different types of support may be considered according to the needs of each individual country,” adds Ambassador Albert.

The report looks at three specific areas on which policy makers can focus to create a more conducive labor market where women can thrive:

SUPPORT FOR MATERNITY AND CHILD CARE BENEFITS
First, governments can seek to mandate the minimum amount of support that women receive at the workplace, particularly in areas such as maternity leave and child care.

Across ASEAN, provisions for maternity leave are generally well laid-out but further enhancements can be considered. Other than the Philippines, Myanmar and Vietnam, governments in the ASEAN generally do not pay fully for maternity leave. Singapore and Thailand adopt a hybrid approach whereby the government pays for a portion of the maternity costs.

Encouragingly, Senate Bill No. 1305 or the Expanded Maternity Leave law, was passed on third and final reading in the Philippine Senate in 2017. Once enacted into law, it will upgrade the current maternity benefits provided to mothers under existing laws, such as extending the maternity leave granted to female employees in both the public and private sectors to 120 days, paid leave, as well security of tenure, among others.

To motivate companies to grant female employees more maternity benefits, ASEAN member governments can consider providing partial subsidies to alleviate cost pressures in the form of cash reimbursements or enhanced tax deductions, or directly to employees. Countries that enjoy high levels of female work force participation can also consider making provisions for paternity leave to enable men to co-share child care at home.

Policies to improve child care access and quality are just as critical in helping women to join, remain or re-enter the work force after giving birth. ASEAN countries can consider establishing subsidized child care infrastructure to support mothers, which is particularly important in the developing markets where child care options are limited, and a significant percentage of women may not be formally employed or are agricultural-based.

Another alternative is to provide subsidies or enhanced tax deductions to help companies offset the costs of running child care centers at the workplace. For higher-educated women, other forms of tax relief to encourage mothers to remain in the work force, such as tax deduction on a certain percentage of child care fees incurred or special tax rebates, will be helpful.

INVESTMENT IN TARGETED TRAINING
The second area that governments can focus on is to encourage the private sector to invest in capacity-building and leadership opportunities for women through training and skills upgrading.

In the ASEAN, incentives to encourage training are typically across the board, and not many are targeted at the needs of women throughout their life cycle in the labor force. In the less developed ASEAN countries such as Indonesia and the Philippines, where large populations of women lack basic vocational skillsets that allow them to participate actively in the labor market, governments should advocate training programs that are specific to women from the unskilled to skilled level.

For example, the Philippine government provides cash support for a pilot skills training program whereby participating women will be trained in a wide range of skills including basic computing, business skills, baking and dressmaking.

INCREASE AND ENABLE ACCESS TO FINANCING AND RESOURCES
Based on a World Bank Report, Expanding Women’s Access to Financial Services, women-owned small and medium-sized enterprises represent 30% to 37% of all firms (approximately 8 million to 10 million) in emerging markets, requiring between $260-320 billion a year in funding and capital.

We should note that public and private sector efforts and investments continue to open markets to women entrepreneurs across the entirety of the ASEAN. For example, in the Philippines, legislation such as the law on Gender and Development (GAD) has been a big boost in empowering women to work outside of the home. Under the GAD Budget, government entities must allocate 5% of their total budget to address the needs of working women, such as day cares to allow working mothers to keep their children close by. Progressive legislation such as this can help more women professionals and staff to work full time while raising a family.

The Philippines also has the Magna Carta for Women, which is a comprehensive women’s rights law that aims to eliminate discrimination against women by granting them equal access to work opportunities, further supporting the dual roles that women are expected to play in society.

ACCEPTING TECHNOLOGY
With the rise of disruptive technologies, automation is impacting and eliminating roles in sectors where there is a high rate of employment of women, such as agriculture, garments and textiles (especially in the developing ASEAN countries), health care, manufacturing, services, retail, and food and beverage.

Based on the report, ASEAN in transformation: How technology is changing jobs and enterprises, by the International Labor Organization, women in the Philippines and Vietnam are twice as likely to occupy jobs at high risk of automation as their male counterparts. What this points to is the imperative to ensure that girls and women in ASEAN have access to quality education and training that are relevant and matched to market demands now and into the future.

Women provide a source of talent needed to propel economic growth and prosperity across ASEAN. For the less developed ASEAN countries, working on the foundation to support women participation in the work force is key. Governments and corporations should collaborate to advance the role of women in the work place. Perhaps, the Philippines can take the lead in sharing its best practices in gender parity and women empowerment with the other ASEAN member economies that may be struggling to unlock possibilities that would uplift the women in their work force. Only by safeguarding the future of women in the ASEAN can we likewise ensure the continuing resilience of the region’s cultures, economies and communities.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

J. Carlitos G. Cruz is the Chairman and Managing Partner of SGV & Co.

61 back House move on talks with Reds

A RESOLUTION backed by 61 congressmen has been filed urging President Rodrigo R. Duterte to resume peace negotiations with communist rebels.

House Resolution (HR) 1803, filed on March 22, is introduced by Tawi-Tawi Representative Ruby M. Sahali, Bayan Muna party-list Representative Carlos Isagani T. Zarate and 56 other lawmakers including from Mindanao.

Mr. Zarate said in a statement: “Peace negotiations should continue even if both sides have not yet ceased armed hostilities. That is precisely why peace talks must proceed because the two sides are at war. The no cease-fire, no peace talks policy being pushed by the militarists elements in the Cabinet practically negates the inherent purpose of a peace negotiation. It harks the nation back to Marcos’s failed military or militarist solution.”

The motion argued that peace negotiations under Mr. Duterte were “the farthest advance in the 25-year peace talks between the GRP (Government of the Republic of the Philippines) and the NDFP (National Democratic Front of the Philippines),” with the drafting of the Comprehensive Agreement on Social and Economic Reforms (CASER) and the Comprehensive Agreement on Political and Constitutional Reforms (CAPCR).

“(C)ontinuing the peace talks would benefit the Filipino people, most of whom are poor peasants and workers, as the agreements on agrarian reform and national industrialization may address their issues and concerns and help provide relief for their economic hardships,” the resolution also said.

The resumption of peace talks would “forge substantive agreements that will resolve the root causes of the nearly five-decade old armed conflict,” it added.

The resolution further noted Mr. Duterte’s openness to resume talks, in the light of negotiations thus far between the government and rebel panels in Norway.

Mr. Duterte terminated the talks on Nov. 23 last year with Proclamation 360. This was followed by Proclamation 374 which declared the Communist Party of the Philippines (CPP) and New People’s Army (NPA) as terrorists, despite the repeal during the Ramos administration of the Anti-Subversion Law outlawing the party. The rebels have continued to push for the talks despite this setback. — M.N.R. dela Cruz

San Miguel takes Game Two to level finals series

By Michael Angelo S. Murillo
Senior Reporter

THE defending champions San Miguel Beermen pulled even in their best-of-seven PBA Philippine Cup finals series with the Magnolia Hotshots, taking Game Two, 92-77, on Sunday night at the Mall of Asia Arena.

Suffered a major meltdown late in the opener of the finals of the season-opening Philippine Basketball Association tournament last time around, the Beermen made sure they were on top of things in Game Two even when the Hotshots were throwing another spirited challenge to level the series at one game each.

The Hotshots got off to a fast start as Ian Sangalang and Paul Lee had their guns slinging to help their team to an 11-6 lead in the first six minutes of the opening quarter.

But Arwind Santos and the Beermen eventually found their strides, tying the score at 11-all before seizing the quarter, 19-17, after the opening 12 minutes.

In the second quarter San Miguel continued to build on the momentum it garnered to finish the first canto, extending its lead to 12 points, 35-23, with 5:52 to go on the back of steady outside sniping, particularly Marcio Lassiter.

Magnolia managed to cut its deficit into half, 35-29, a minute and a half later but it would not go any closer than that as San Miguel put its foot down and claim a 48-35 lead by the halftime break.

San Miguel opened the third quarter with back-to-back triples to set its biggest lead at that point of 19 points, 54-35, with a little over 10 minutes remaining.

The Hotshots immediately stopped the bleeding with two successive three-pointers of their own after.

The Beermen held a 60-46 advantage at the halfway point of the frame.

It was a cushion they would only pad on to as Alex Cabagnot asserted himself on the offensive end, scoring and facilitating.

San Miguel had a 75-57 advantage when the smoke cleared entering the payoff quarter.

Magnolia started the last quarter with an 11-0 blast, trimming its deficit to just seven points, 75-68, with 8:22 left.

The Beermen though would string up 10 straight points to give themselves more breathing space, 85-68, in the next four minutes.

Magnolia tried to fashion out another comeback but none would come as San Miguel held on for the series-leveling victory.

Mr. Santos led the way for the Beermen with 24 points and eight rebounds with Mr. Lassiter adding 16 markers.

Mr. Cabagnot had 15 points and eight assists while June Mar Fajardo finished with 12 points and 13 rebounds.

Mark Barroca, meanwhile, paced Magnolia with 18 points followed by Mr. Lee with 13.

“We learned our lesson from the last game. Credit to the players because they really showed strong resolve to take this game,” said winning coach Leo Austria, referring to their meltdown in Game One where the rug was pulled from under them despite leading by as much as 20 points at one point

“Magnolia is a strong team and they will continue to fight back. And we just have to be ready,” he added.

The PBA Philippine Cup Finals takes a break to give way to the observance of Holy Week and resumes on April 1 for Game Three at the Smart Araneta Coliseum.

Group argues for impeachment, not resignation, in bid vs Sereno

ANOTHER INSTITUTION has added its voice to calls urging due process in efforts to remove Chief Justice Maria Lourdes P.A. Sereno.

Apart from her much anticipated impeachment by the House of Representatives, Ms. Sereno also faces a quo warranto petition by the government’s lawyer urging the Supreme Court (SC) to void her appointment for allegedly failing to submit complete requirements for her post.

The Center of Excellence in Governance (CEG) in a statement said it “expresses its great concern in the current efforts to compel Chief Justice Maria Lourdes P.A. Sereno to immediately resign.”

CEG said Ms. Sereno’s forced resignation “would effectively deprive her of the legal process mandated by our Constitution for resolving complaints filed against her.”

“Such a process serves to protect not only the rights of the Chief Justice, but more importantly — the legitimacy and effectiveness of our institutions of public governance,” it added.

CEG called on “legislators in both houses of Congress…to be circumspect in the exercise of their respective roles in the impeachment process.”

“We enjoin them to utilize impeachment proceedings as an opportunity to strengthen, rather than weaken, our democratic institutions,” the statement also said.

The statement identified as signatories CEG Acting Chair Rex C. Drilon II, and Francisco F. del Rosario, Jr. and Francis G. Estrada, the respective chairpersons of the Institute for Solidarity in Asia and Institute of Corporate Directors, also of the CEG.

A number of groups, including the Integrated Bar of the Philippines and party-list coalition Makabayang Koalisyon ng Mamamayan (Makabayan), have also expressed their concern regarding efforts to oust Ms. Sereno through means other than impeachment.

Both groups have submitted their interventions arguing that impeachable officials such as Ms. Sereno can only be removed through that process. — Dane Angelo M. Enerio

Limit ban on political dynasties to succession, Senate leader says

By Camille A. Aguinaldo

SENATE PRESIDENT Aquilino L. Pimentel III on Sunday said the “most practical” measure to prohibit political dynasties was to simply focus on term succession and to ban any relative form succeeding an incumbent elective official.

“In my experience, this is the most practical anti-political dynasty provision: to focus on the succession. Let’s prohibit any relative of an elected official to succeed him or her. For me, it’s reasonable to prohibit up until two degrees of relationship,” he said in a radio interview.

“This is most likely where government funds and resources (are) being used in order to prepare a relative (to) attract voters and widen the possibility of winning,” he added.

Mr. Pimentel’s remarks came after a bill seeking to ban political dynasties was approved in the Senate committee level. The proposed measure centered on banning close relatives of an incumbent elected official from succeeding the incumbent or running for different positions simultaneously.

The Senate leader said he has already exhausted all scenarios on anti-dynasty reforms back when he headed the Senate committee on electoral reforms and people’s participation.

According to him, political families could still circumvent the bill as they have dodged term limit rules by passing the government position from one relative to another.

“What if two siblings with no elective positions decided to run for mayor and vice mayor and then they both won? How would we tell if they used their government position to hold office if they were both outsiders?” he said.

Mr. Pimentel said he believed that focusing on the succession prohibition would be the most practical and reasonable measure, which could be accepted by Congress.

He also warned that a measure targeting “fat dynasties” or families with members holding simultaneous government positions may not become a law.

“We will not have a law with the many issues, the many debates, and the many combination and permutation that cannot be captured into words,” he said.

He said he would raise his concerns on the proposed measure at the plenary when Congress resumes session in May.