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DoTr deploys 3rd Dalian train for test run

THE Department of Transportation (DoTr) deployed on Wednesday the third of 16 train sets ordered from CRRC Dalian Co. for use in the Metro Rail Transit Line 3 (MRT-3).
After successfully completing its commissioning test that required it to run problem-free for 1,000 kilometers, the new Dalian train is now undergoing its 150-hour validation testing on the MRT-3 line, the DoTr said in a statement.
“The train set will serve MRT-3 commuters from 6 a.m. to 9 p.m., starting today until Feb. 1,” it said.
DoTr Director for Communications Goddes Hope O. Libiran said in early January that an evaluation report after the validation testing must first be produced before a Dalian train may be added to the regular train sets serving the line.
“After validation testing, PNR (Philippine National Railways) shall come up with an evaluation report re: Dalian trains. If PNR endorses that the train set be allowed to run regularly at the MRT-3 mainline, MRT-3 will sign an acceptance document,” she told reporters on Jan. 7.
The PNR has been assigned by the DoTr to conduct the simulation runs of the Dalian trains to ensure every unit’s preparedness to join revenue service at the MRT-3. Since last year, two Dalian trains have so far been deployed: the first on Oct. 27 and the second on Dec. 11.
The Dalian trains are the train sets procured in 2014 by the previous administration but held back from deployment because of compatibility issues.
Last year, the Philippine government arrived at an agreement with CRRC Dalian to make the necessary adjustments on the train sets free of charge. — Denise A. Valdez

DoE seeks broader participation in nuclear agency

THE Department of Energy (DoE) wants the proposed national nuclear policy to involve other government agencies in the Nuclear Energy Program Implementing Office (Nepio), with the Office of the President leading the entity.
“It will involve different departments and agencies, so meaning there will be a chairman for that (Nepio),” Undersecretary Donato D. Marcos said on Wednesday after a forum on nuclear energy.
He said the expanded office would include possibly the Department of Science and Technology, National Power Corp., along with Power Sector Assets and Liabilities Management Corp., Philippine Nuclear Research Institute, Department of Environment and Natural Resources.
Mr. Marcos is the current designated chairman of Nepio, which was set up specifically to come up with the nuclear energy policy. He said he may have to relinquish his position once the expanded office has been set up.
He said the national policy would have three major points, including the inclusion of nuclear energy in the energy mix and as a long-term energy option.
“Second, expansion of Nepio to make it more comprehensive and to ensure all stakeholders are on board,” he said.
“Third, is to make this bill or whatever legislation it requires to be an urgent bill or a priority bill,” he said.
Mr. Marcos said the entity that will take the lead on Nepio would depend on an executive order to be signed by the Office of the President.
Asked about the role of the President, he said: “We are endorsing it because it would be better if Nepio is with the Office of the President.”
“It should be Office of the President run by a commission,” he said.
On Wednesday, the DoE hosted a talk by Michael Shellenberger, president of non-government organization Environmental Progress that claims to be independent of energy interests.
The organization provides “unbiased economic and environmental research to policy makers around the world,” including the US, Japan, Taiwan, South Korea, the Netherlands and Belgium.
He is in the country to meet government officials and visit the Bataan Nuclear Power Plant, which was completed in the ’80s but never became operational.
Mr. Shellenberger and climate scientists and environmentalists have written an open letter to President Rodrigo R. Duterte to urge him to reduce the country’s dependence on fossil fuels by switching to nuclear energy.
“There’s only one way to rapidly grow the economy while reducing air pollution and that’s nuclear energy,” he said, adding that countries such as South Korea, Japan and Taiwan “were able to become rich nations by expanding the use of nuclear energy.”
“The Philippines can do the same. But it will require presidential leadership,” Mr. Shellenberger said. — Victor Saulon

Inflation for low-income households eases further in Dec.

INFLATION, as experienced by low-income families, further eased in December, driven by a slowdown in price increases in food and utilities, the Philippine Statistics Authority (PSA) said.
The consumer price index (CPI) — a measure of the average rate of change in the retail price of a basket of goods and services — showed inflation for the bottom 30% of households decelerating to 7.2% in December from the revised 8.3% in November, though it was higher than the 3.7% growth recorded in December 2017.
The December result brought the average annual inflation for the bottom 30% to 7.2% in 2018, against 3% in 2017.
The CPI for the bottom 30% income segment reconfigures the model basket of goods, putting a heavier weight on food, beverages, and tobacco (FBT) as well as other necessities as these are thought to more accurately capture the spending patterns of the poor.
Inflation in the heavily-weighted food, beverages and tobacco index decelerated to 8.1% in December from 9.3% in November. Likewise, the food-alone index slowed to 7.1% from 8.3% previously.
The PSA also noted that relative to their annual rates in November, slower upticks were recorded in the following food items: rice (7.8% from 9.7%); corn (1.2% from 3.4%); eggs (3% from 3.1%); fish (10.5% from 11.3%); fruits and vegetables (8.7% from 10.4%); meat (5.6% from 6.2%); and “miscelleneous” foods (5.9% from 6%).
Slowdowns in price growth were also seen in the fuel, light and water index (5.3% from 8.2%); and services (3.6% from 3.7%). On the other hand, stronger price growth was observed in housing and repairs (5.5% from 5.4%), and “miscellaneous” (2.4% from 2.3%) while that of clothing was steady at 3.1%.
Inflation for the bottom 30% segment in the National Capital Region slowed to 4.8% in December from the previous month’s 6.2%. Likewise, those living outside of Metro Manila posted slower inflation at 7.3% from 8.3%.
Sought for comment, Michael L. Ricafort, economist at the Rizal Commercial Banking Corp., noted that even with inflation for the bottom 30% being higher than the headline inflation in December 2018 (at 5.1%), “the easing trend is still a positive signal as this could increase their purchasing power with lower prices of basic commodities especially food and transportation.”
“Higher inflation for the lowest 30% of households in terms of income may reflect the fact that food and other basic commodities such as rice (amid shortage of cheap rice [from the National Food Authority] earlier in 2018) as well as transportation eat up a bigger share of their incomes compared to households with higher incomes (with more muted impact by inflation), thereby reflecting the fact that higher prices of basic commodities have more pronounced adverse impact on their purchasing,” he said.
“Higher prices of cigarettes/tobacco/sin products, sweetened beverages partly on higher excise taxes also have a higher adverse impact on their purchasing power, as expenditure on these account for bigger shares on their incomes, compared to households with higher incomes,” he added. — Carmina Angelica V. Olano

Cheaper medicine for every Juan

Last year, the government’s initiative to reform the tax system kicked off when Republic Act 10963 or the “Tax Reform for Acceleration and Inclusion” (TRAIN) Law took effect. To promote a healthy lifestyle and provide better health care for Filipinos, the TRAIN Law amended provisions in the National Internal Revenue Code on value-added tax (VAT), expanding the list of VAT-exempt transactions to include sale of drugs and medicines prescribed for diabetes, high cholesterol, and hypertension starting Jan. 1.
By way of implementing guidelines, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 25-2018 on Dec. 21 to cover the identification and sale transactions of VAT-exempt drugs and medicines. On that same day, a Joint Administrative Order was signed by coordinating government agencies mandated to implement this VAT exemption policy, namely the Department of Health (DoH), Food and Drug Authority (FDA), Department of Finance (DoF), and the BIR.
Under the RR, the VAT exemption shall apply to sales made by manufacturers, distributors, wholesalers and retailers of the identified drugs and medicines beginning the first day of 2019. However, the importation of these drugs and medicines shall remain subject to VAT under Section 107 of the Tax Code.
Further, the joint order clarified that the VAT exemption granted to persons under RA No. 7432 (otherwise known as the Senior Citizens Act of 1992) and RA No. 7277 (also known as the Magna Carta for Persons with Disability) shall not be covered by the guidelines. This means that senior citizens and persons with disabilities (PWD) shall continue to enjoy VAT-exemption and a discount of 20% on their medicine purchases, regardless of whether or not such medicines are for diabetes, high cholesterol and hypertension, and whether or not they have been identified as VAT-exempt medicines by the implementing agencies.
To commence implementation, the FDA is tasked to come up with a list of VAT-exempt drugs and medicines. The list shall be provided to the DoH and BIR 30 days prior the beginning of every quarter, and thereafter be posted in the BIR website through a revenue memorandum circular. Any update, such as registration of new and/or additional drugs and medicines, as well as deregistration of those previously published by the FDA, shall likewise be posted in the BIR website. Consequently, any sale of drugs and medicines excluded from the FDA list shall be subject to applicable VAT unless purchased by a senior citizen or PWD.
On the side of DoH, it is mandated to ensure the affordability and accessibility of medicines that promote the health and well-being of Filipinos. Specifically, the DoH is tasked to institute a drug price monitoring and regulation system under the Universally Accessible Cheaper and Quality Medicines Act of 2008. As coordinating agency, the DoF shall monitor the revenue impact of the VAT exemption.
To document the transaction, a VAT-exempt invoice must be issued by the seller in accordance with the invoicing requirements of the Tax Code and other applicable regulations. In addition, the word “VAT-EXEMPT” must be indicated prominently on the issued invoice.
Any person who violates the provisions of RR No. 25-2018 shall be punished with a fine of not more than P1,000 or suffer imprisonment of not more than six months, or both, in addition to payment of the required tax, if any. Complaints for non-compliance or violations of the Regulations may be filed with the BIR thru ecomplaints@bir.gov.ph.
Having taken the initial step of exempting medications for the three most dreaded diseases among Filipinos, the TRAIN Law is on its way to boosting the Philippine health care system. With the right momentum, the current tax reform program aims to upgrade 704 local hospitals and 25 new rural and urban health units to disaster-resilient facilities, build 15,988 new barangay health stations and 2,424 new rural health units and urban health centers.
Many are now hoping that with the exemption from VAT of these drugs and medicines, the government will also consider the possibility of broadening the regulation’s coverage to include other kinds of pharmaceutical products. In this way, the rising cost of consumer goods, which many Filipinos attribute to the enactment of the TRAIN law, could somehow be compensated with improved health benefits.
In these times when the cost of health care is exorbitant and inaccessible, the expression, “Mahirap magkasakit” rings truer than ever for an ailing body and an empty pocket. The implementation of the VAT exemption on covered drugs and medicines finally brings good news from the tax reform law. We can now see that tax policies are being formulated not only to raise state revenue, but more relevantly, to improve the quality of public health care by making it cheaper for everyone.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Iris Kristine D. Lacebal is a manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.
(02) 845-27 28
iris.kristine.d.lacebal@ph.pwc.com

House revises bill on age for criminal liability

By Charmaine A. Tadalan, Reporter
AMID the backlash to its bill on criminal liability, the House of Representatives on Wednesday approved on second reading an amended version of that bill lowering the age of “social” responsibility to 12 years old, from the originally proposed age of nine years old the chamber had earlier passed.
Via voice vote, the chamber approved House Bill No. 8858, amending anew Republic Act No. 9344, or the Juvenile Justice and Welfare Act of 2006, which currently provides that children aged 15 years old and above but below 18 years old are exempt from criminal liability.
“It was the consensus of all the members of Congress,” Justice committee chair Salvador C. Leachon of the 1st district of Oriental Mindoro told reporters in a briefing following the approval. “When we got more than majority of the members, we decided to have it to 12 years old, instead of the original proposal of nine years old.”
Also among the amendments was the provision ensuring funding for the construction of more “Bahay Pag-asa” youth-care facilities, in addition to the 58 existing.
During his interpellation on Tuesday evening, Bukidnon-3rd District Rep. Manuel F. Zubiri said the measure might not be properly implemented by local authorities due to the lack of such facilities. “The problem is…the authorities in place, not all but in a lot of areas, might or will misinterpret the law and will put our children’s lives at risk or in danger,” he said.
“Due to the lack of infrastructure or facility of the agencies involved, our children will end up in the slammer, or in jail whether temporarily or permanently.”
The bill provided that children aged 12 years old and above, but below 18 years old, are exempt from social liability, unless the child acted with discernment.
Mr. Leachon argued the measure will not imprison covered children, but will subject them to mandatory confinement should they commit serious crimes such as rape, murder, parricide, homicide, robbery with homicide, and violation of dangerous drugs, among others.
If enacted, the bill will also subject children in conflict with the law to penalties two degrees lower than that prescribed by law. In cases of imprisonment, the duration will be reduced to two-thirds of the total period and only up to 12 years for those sentenced to life imprisonment.
It was provided that said children shall be deemed “neglected,” under the Presidential Decree No. 603, and shall therefore be placed in a Bahay Pag-asa.
The measure will also impose mandatory counseling or intervention programs for parents. “Failure of such parents to undergo mandatory intervention, unless prevented by a lawful cause, shall be a ground for imprisonment for at least thirty days but not more than six months,” section 7 of the bill stated.
Moreover, the bill will also penalize any person or syndicate exploiting children to commit a crime with reclusion temporal, if the crime is punishable by imprisonment of six years or less, or reclusion perpetua, if more than six years.
ALTERNATIVE PROPOSALS
The amended House bill is also being considered by the senators, as they study alternative proposals to the bill.
“The challenge now is how to retain vulnerable children in school. One way is to incentivize class attendance by offering them free meals,” Senator Grace S. Poe-Llamanzares said in a statement.
On the Bahay Pag-asa facilities, Senator Panfilo M. Lacson said in a radio interview and in a statement that “There are provinces that may not be able to build, much less maintain, such facilities. Funding for this is no joke. It may run to tens if not hundreds of millions of pesos. It should be the national government that provides the budget for this.”
For his part, Senator Sherwin T. Gatchalian said, “I am sure we can find the money to fund the construction and operation of the required 114 Bahay Pag-asa. P2.04 billion is minuscule compared to the questionable P75 billion insertion for DPWH (Department of Public Works and Highways) projects which was deleted by the Senate in its version of the 2019 budget.”
Senator Richard J. Gordon, chair of the Senate committee on justice and human rights, said, “The children used in the commission of crimes can be used as witness against the persons using them. We need to ensure their safety. Most of the time, syndicates tell the children, ‘don’t point to us, if you do, I will not give you drugs or I will shoot you.’ Those are the threats and it worsens the problem.”
Responding to the backlash to the House bill, Presidential Spokesperson Salvador S. Panelo said in a statement, “Evidently, the legislative proposal is being drowned by the critics and detractors of the administration. They simply have not read the provisions of the bill hence their opposition is based either on blissful ignorance or pretended misinformation.”
Mr. Panelo also criticized United Nations Special Rapporteur Agnes Callamard for her statement calling the House bill “just shameful.”
“We find it shameful that United Nations Special Rapporteur Agnes Callamard has again dipped her fingers on the domestic affairs of our country,” Mr. Panelo said, using Ms. Callamard’s words. “What is ‘dangerous and potentially deadly’ is her intrusive and ignorant theorem on how a sovereign state deals with its problem with criminality.”
‘CHILDREN INVOLVED IN RAPE’
Philippine National Police Chief Director-General Oscar D. Albayalde, for his part, said in a press briefing on Wednesday, “Kung hindi ako nagkakamali, (there are) a total 12,139 minors involved sa crimes ranging from rape, robbery, theft, and also peddling of illegal drugs.” (If I’m not mistaken, [there are] a total of 12,139 minors involved in crimes ranging from rape, robbery, theft, and also peddling of illegal drugs).
He added: “We should be concerned na sa murang pag-iisip, nai-involve ang mga bata sa rape. Well, mas marami pa ‘yung na-involve sa rape kaysa sa peddling of illegal drugs.” (We should be concerned that at a young [age], children are involved in rape. Well, there are more involved in rape than in peddling of illegal drugs).
For his part, Justice Secretary Menardo I. Guevarra said on Wednesday, “Upon the request of the Office of the President, we submitted yesterday our position on the issue of lowering the age of criminal responsibility.”
“We’ll leave it to the Malacañang to process our recommendation and make it known.” with Camille A. Aguinaldo, Arjay L. Balinbin, Vann Marlo M. Villegas, and Vince Angelo C. Ferreras

Deliberating the Hanjin Debacle

Jan. 8 was a jaw-dropping date when the government, the financial and investment community, and the labor sector learned about the painful announcement made by Hanjin Heavy Industries and Construction Corp. Philippines that it was filing for bankruptcy before a Philippine Court due to lingering liquidity problems.
Created in 2006 and based in Subic Bay which hosted the biggest US naval Pacific base outside the mainland, Hanjin has a shipyard that builds container ships and a variety of commercial vessels used for oil, gas and other heavy industries. It was established in 2006 as a subsidiary of South Korean shipbuilder Hanjin Heavy Industries and has produced more than a hundred vessels for its different global customers.
Considering Hanjin’s solid track record of building huge vessels, its impending rehabilitation or liquidation came as a big and shocking surprise. With the data coming in, it appears that Hanjin has defaulted on its loans ( some even without collateral!) worth about $400 million. Major banks include BDO Unibank, RCBC, LANDBANK, BPI and Metrobank. These are institutions which ordinary citizens transact with on a daily basis.
RESCUE OPTIONS
Reactions from different sectors were loud and clear but all with a unifying theme: CONCERN. Government immediately took a stand with President Duterte and Defense Secretary Delfin Lorenzana mentioning a possible government takeover by making the latter a possible investor within the context of a rehabilitation plan which will be issued by the Olongapo Court, having jurisdiction over the matter.
The DTI also chimed in by saying that their department will link with potential investors to help as ordered by the Court. On the other hand, happy to note that the banks have agreed not to step on one another’s toes in the name of competition when it signified its unified resolve to help the embattled company rather than engage in a rat race to seize its assets.
EXTERNAL IMPACT
The Bangko Sentral did its part by assuring us that the effect of the Hanjin debacle to the banking system is negligible because the exposure of the aforementioned banks is only 0.24% of all loans in the system.
While there is deep concern about the overall economic effects of the bankruptcy of Hanjin, one must not forget the social and monetary costs to the employees of the shipyard — about 30,000 of them. Around 7,000 or more have been laid off so far. Their interests — wages and benefits — should be considered in the judicial process of rehabilitation. A lot of fierce debates as to who shall be preferred in the long line of payments are happening, but surely, social justice principles shall guide the court in its decision.
LEGAL BLUEPRINT TO HANDLE OBLIGATIONS
By now, the focus should be with rehabilitation proceedings under the Financial Rehabilitation and Insolvency Law (FRIA). The policy of this law is to encourage the debtors and creditors to resolve and adjust competing claims and property rights. Fairness, timeliness, transparency, and effectivity of the rehabilitation or the liquidation shall be the order of the day. If rehabilitation is not achievable, then a rational and orderly liquidation of the assets of Hanjin and the settlement of their obligations shall be done. This is for the ultimate protection of all of its stakeholders. As the process is summary and non-adversarial, ease in commercial discussions shall be facilitated and decision making, hopefully quicker.
The efficacy of this judicial remedy under the FRIA will be put to a test. Considering the high stakes, it is greatly recommended that we monitor the procedure very closely and critically. If the public maintains its interest, then we can be fairly assured of a good, reasonable and commercially astute result.
 
Ariel F. Nepomuceno is a management consultant on strategy and investment.

BOL vote questioned in Cotabato City

By Tajallih S. Basman, Correspondent
COTABATO CITY-Mayor Cynthia Guiani-Sayadi said on Wednesday said she will file an election protest over the local result of the Bangsamaro Organic Law (BOL) plebiscite in her city.
The “yes” vote has been reported to have won, signaling the inclusion of the city, with its sizable Christian population, in the new autonomous region that will be formed on the watch of leaders of the Moro Islamic Liberation Front.
In a phone interview, Ms. Sayadi said her protest will be based on “the discrepancies in the plebiscite results,” which Commission on Elections (Comelec) Spokesperson James B. Jimenez described as a “clerical error.”
“It’s clear to me this is a manifest error….It will be properly ventilated by the National Board of Canvassers,” Mr. Jimenez said in a teleconference with reporters on Wednesday.
Ms. Sayadi, who campaigned for the non-inclusion of Cotabato City in the future Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), said, “They can say that it is a clerical error but we can also use that as an argument. We will see what the Comelec has to say about it.”
The certificate of canvass submitted indicates that only 39,024 cast their votes in Cotabato City, contrary to the 61,676 counted during the actual canvass at the ORG Compound.
“The total number of voters is only 30,000 plus, that is not the actual figures,” said Ms. Sayadi.
“That is only one of the grounds we will file,” she added.
Ms. Sayadi also noted the reported cases of massive disenfranchisement of voters, harassments in Christian areas, and other forms of intimidation, which she said resulted in the low voter turnout.
Cotabato City has 113,751 registered voters, based on Comelec data, and the turnout was only 54%.
The certificate of canvass transmitted to the National Plebiscite Board of Canvassers (NPBOC) in Manila shows a total of 61,676 ballots cast, with 36,682 yes votes and 24,994 no.
Meanwhile, in Isabela City, where there are 71,124 registered voters, the unofficial canvass result as of 4:00 p.m. Wednesday indicates 22,441 votes for “no” and 19,032 for “yes.”
Isabela is located within the island province of Basilan, which is part of the existing ARMM. Isabela, however, is under the administrative jurisdiction of the Zamboanga Peninsula region. — with Gillian M. Cortez

House approves on 2nd reading bill on medical marijuana

THE House of Representatives on Wednesday approved on second reading the bill legalizing and regulating the use of medical marijuana, a measure supported by Speaker Gloria Macapagal-Arroyo.
The chamber, via voice voting, approved House Bill No. 6517, or the proposed Philippine Compassionate Medical Cannabis Act.
Ms. Arroyo, co-author of the bill, had previously said she personally used a “pain patch” to treat pain in her cervical spine, whenever she is in a country that allows the use of medical cannabis.
If enacted, the bill will mandate the Department of Health and the Philippine Drug Enforcement Agency to monitor and regulate implementation of the law.
It specified that patients qualified to undergo such medication are those diagnosed as having “debilitating medical condition,” and those prescribed to receive “therapeutic or palliative benefits.”
Among others, debilitating medical conditions include cancer, glaucoma, multiple sclerosis, damage to the nervous system of the spinal cord, epilepsy, HIV/AIDS, post traumatic stress disorder, or rheumatoid arthritis.
Physicians prescribing medical marijuana must have a “bona fide” relationship with the patient and must be licensed by the PDEA.
Moreover, the bill will prohibit qualified patients to possess and smoke cannabis in any mode of public transport or public space, operate any motor vehicle, aircraft or motorboat while under the influence.
Offenders of the bill will be fined P50,000 to P100,000 or higher, upon the discretion of a court where a case on such violation is filed.
Further, the measure will also authorize public and private research on the use of medical cannabis. Charmaine A. Tadalan

Senate blocks funding for CCTV project with China

By Camille A. Aguinaldo, Reporter
THE Senate has blocked in the proposed 2019 national budget the P20 billion Chinese-funded Safe Philippines Project, whose commercial contract was signed during the Manila visit of Chinese President Xi Jinping last November.
In a statement, Senate President Pro Tempore Ralph G. Recto said the Senate version of the budget bill, which reached third reading approval last Monday, added a “block payment” provision. He said this guides the release of funds for overseas development aid and other foreign-funded activities.
He said the provision under the unprogrammed funds section of the budget bill stated that: “No amount appropriated herein shall be utilized for any project intended for public video surveillance and communication system with suppliers or service providers that are considered as serious risks to national security or interest or are involved in cases regarding information leakage, computer or network hacking, and other forms of cyber espionage, whether in the Philippines or in other countries.”
Another provision enumerated a list of foreign-assisted projects that could be funded in 2019 but excluded the Safe Philippines Project.
The project in question is an emergency response and video surveillance system, which uses CCTV cameras to be installed in Metro Manila and Davao City. Its commercial contract was signed between the Department of Interior and Local Government (DILG) and Chinese firm International Telecommunications Construction Corp. (CITCC) last Nov. 20, as witnessed by President Rodrigo R. Duterte and Mr. Xi.
Mr. Recto said the project was “lacking in studies, consultations, validation.”
“We have asked for documents from the lead appraisal authority, the NEDA (National Economic Development Authority), and they cannot provide us any. It’s thin and it looks rushed. Usually the documentation for a project this size is voluminous. In this case, almost nothing could be given,” he said in a statement.
He also said the alarming trend of the executive bloating the public debt by agreeing to donor-driven loans “must be slowed down, more so if the process lacks transparency.”
The Senate leader also clarified that he was not against an emergency response system which uses Information and Communications technology, but only emphasized that Filipinos deserve well-studied and transparent programs.
“What the Filipinos people do not need is one whose evaluation and approval was hastily done, lacks transparency, no consultations, no independent appraisal, is a tied loan and a donor-driven expenditure,” Mr. Recto said.
The Senate leader has also sought an inquiry into the project, citing national security and data protection concerns.

Daraga mayor rushed to hospital after arrest

DARAGA MAYOR Carlwyn Baldo was rushed to the hospital due to an asthma attack soon after he was arrested on Tuesday afternoon for alleged possession of illegal firearms. Mr. Baldo is the alleged mastermind in the killing of AKO Bicol Party-list Representative Rodel M. Batocabe last December. According to the Police Regional Office V, Mr. Baldo was brought to the UST Hospital in Legazpi City at 12 midnight. Philippine National Police Director General Oscar D. Albayalde said the decision on whether Mr. Baldo will be put on medical detention will depend on the findings of the medical team and the doctor. “(I)t will depend kung sinong (on the) medical team po ‘yan. ‘Yung (The) physician po ang magsasabi kung kailangan mag-stay sa hospital (will determine if a hospital stay is necessary),” Mr. Albayalde told reporters in a press briefing on Wednesday. In another development on the Batocabe slay, the police reported the recovery on Wednesday of the .45-caliber pistol used by the main gunman, Henry Yuson, in the murder. The pistol was found in a fishpond in Barangay Busay, Ligao City in Albay. Mr. Albayalde also said that three of the suspects applied to be under the witness protection program. “Meron kasi dun sa anim na suspects, ‘yung tatlo (Of the six suspects, three) are applying for witness protection program and it will depend on the court,” he said. — Vince Angelo C. Ferreras

The ghosts of fascism haunt Europe again

By Ferdinando Giugliano
THE rising tide of extremist parties across Europe has presented mainstream political forces with a dilemma: Should they reject any alliance in the name of decency? Or should they succumb to pragmatism, in the hope of taming their opponents?
Look around the continent, and you will see that this second route is becoming increasingly acceptable. Last week in Spain, the center-right Popular Party and the liberal Ciudadanos formed a coalition government in Andalusia thanks to the votes of Vox, an anti-immigrant, anti-feminist organization. The unlikely trio ended 36 years of socialist control of the region. The political price was to bring back from the cold the extreme right in Spain for the first time since the death of the military dictator Francisco Franco in 1975.
The two mainstream parties will no doubt say that it was Vox compromising with them — and not the other way round. Ciudadanos refused to negotiate with Vox, leaving the dirty work to the PP. The hard right party had to climb down from an initial list of proposals, which included expelling 52,000 undocumented migrants. The final deal includes a much vaguer commitment to “prevent the threat of Islamic fundamentalism,” as well as measures to promote local traditions, including flamenco.
For their part, Ciudadanos and the PP are insisting that they will focus chiefly on a revamped economic agenda, eliminating corruption, redirecting wasteful spending and slashing taxes. Andalusia is the one of the least competitive regions in Europe, according to some EU rankings, and could do with some fresh thinking.
However, the toxic support from Vox puts Spain’s mainstream parties much closer to the path trailed by Sebastian Kurz, the Austrian chancellor, who chose to strike a government deal with the far-right Freedom Party. Austria has since taken a much stricter line on immigration, rejecting the open border approach championed by German chancellor Angela Merkel, toughening border controls and cracking down on benefits for foreigners. This move attracted criticism but appears to have paid off electorally: Kurz’s People Party (the OVP) has risen in the polls at the expense of its more extremist ally. Other politicians have gone in a different direction. In the Netherlands, after the 2017 general election, all parties chose to place a cordon sanitaire around Geert Wilders’ Party of Freedom.
The two Spanish parties start from opposite positions to each other. Part of the PP’s electoral base shares concerns about immigration with the far right. For Ciudadanos, the deal is harder to explain to its voters. The recently formed Spanish party is considering an alliance for the forthcoming European Parliament elections with En Marche!, the centrist movement that swept Emmanuel Macron to power in France. Macron sees himself as the nemesis of euroskeptic, anti-immigrant forces. If his potential allies start making deals (if only indirectly) with the very forces they claim to oppose, how can Europe’s more moderate political parties maintain a coherent identity?
These questions will possibly intensify after May’s European elections. The vote will probably produce a clamor of different voices in parliament, making it impossible for the center-right and the socialists to govern together as they have done traditionally. Reaching out to the hard right in an effort to draw some of its sting may look like an answer, but it’s an incredibly risky strategy for a continent that has tried to keep extremists out of power since the traumas of the 1920s and 1930s. After nearly a century, the ghosts of the past are back to haunt Europe.
BLOOMBERG
 
Ferdinando Giugliano writes columns and editorials on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of the Financial Times.

Police ordered to solve ambush on Cebu town mayor in 2 weeks

THE LOCAL police have been directed to resolve the failed murder attempt on the mayor of San Fernando town in Cebu last Tuesday, which is suspected to be politically-motivated. Philippine National Police (PNP) Director General Oscar D. Albayalde, in a chance interview with reporters on Wednesday in Manila, said San Fernando Mayor Lakambini G. Reluya, who is running for reelection in May, herself has indicated that she believes that politics is behind the ambush. Ms. Reluya was riding across Talisay City going to Cebu City on Tuesday night when still unidentified gunmen shot at her van multiple times. The mayor’s husband, Barangay Chairman Ricardo Reluya Jr., and two of their companions died on the spot. Ms. Reluya and two others were wounded. “First of all, what we can do here is to intensify our investigation… and I gave the provincial director there and the chief of police two weeks to solve this case,” said Mr. Albayalde in mixed Filipino and English. Meanwhile, Malacañang on Wednesday said the PNP has been ordered to monitor election hotspots in the country following the Reluya attack. Presidential Spokesperson Salvador S. Panelo, in a statement, said, “During election period, political rivalry is fever pitch resulting in the upsurge of election-related violence. This unfortunate and standard norm cannot continue and the culture of violence that has characterized the electoral process will have to end.” He also urged the public to be vigilant, and “put to notice law enforcement authorities on any brewing electoral violence between and among the candidates and their followers in their respective localities.” — Vince Angelo C. Ferreras and Arjay L. Balinbin

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