Drilon: Carpio’s appointment as next chief justice still possible
Senator Franklin M. Drilon — BW FILE PHOTO
SENATE MINORITY Leader Franklin M. Drilon, in a statement on Tuesday, said it was still possible for Senior Associate Justice Antonio T. Carpio to be nominated as the next chief justice after the retirement of Chief Justice Teresita De Castro in October.
>> See full story on <https://goo.gl/2qVP9V>
Business leaders tackle federalism in forum
BUSINESSMEN on Tuesday raised concerns on the proposed shift to a federal form of government and the tax system under the draft Charter crafted by the Consultative Committee (ConCom) to Review the 1987 Constitution. — Arjay L. Balinbin
>> See full story on <https://goo.gl/TS1E6q>
OPPOSITION MEMBERS will file another case questioning the validity of the contract signed by the Cebu City government with Gokongwei-led Universal Hotels and Resorts Inc. for the P18 billion Kawit Island development project. A Regional Trial Court (RTC) has denied the temporary restraining order sought by councilman Amilo Lopez of Barangay Busay to stop the joint venture agreement signed by Mayor Tomas R. Osmeña. Judge Generosa G. Labra of RTC Branch 23 in Cebu City ruled that the action being sought has been rendered moot and academic with the formal signing of the agreement last Aug. 17. Vice Mayor Edgardo C. Labella, a member of the opposition, said the battle is not yet over because the court has yet to decide on the main petition. “The case still remains; of course it is subject for deliberation by the court. I don’t see any problem if TRO has not been granted,” he said. Another opposition member, Councilor Jose C. Daluz III, said, “I expected that. It has been mooted when the mayor signed the contract. We now improve our complaint to questioning now the validity of the contract.” — The Freeman
ILOILO CITY — A new firm has bagged the franchise to operate the Small Town Lottery (STL) within the province of Iloilo.
Red Subay Gaming Corp. is now preparing to operate beginning September.
Romel Duron, one of the company’s incorporators who comes from Iloilo, said they received the approval from the Philippine Charity Sweepstakes Office (PCSO) on Aug 20.
“From Aug. 20, we were given 15 days to pay or put up the performance bond equivalent to one month presumptive monthly retail receipts (PMRR) plus 25% authorization pay totaling to P138,736,000,” Mr. Duron said.
The firm’s PMRR is P111 million.
Red Subay, which means red ant in Ilonggo, is a newly-formed company headed by Octavio Antonio Marasigan as chief operating officer and with incorporators from Luzon and Mindanao.
Aside from Messrs. Duron and Marasigan, the other incorporators are Nehru Ampatuan, Noel Virtucko, and Anthony Pe.
PCSO-Iloilo Manager Janette Oberio-Lloyd has confirmed the authority to operate given to Red Subay, saying they received the PCSO board resolution last week.
She said the operation will commence once the firm has settled its bonds and other requirements at the PCSO central office.
Mr. Duron said with a legal STL operator in the province, they are hoping that illegal gambling will be minimized.
“As much as possible, we want to eliminate the illegal gambling because that is the purpose of STL, to counter jueteng and others,” he said.
He also appealed to the Philippine National Police and the local government units to help them combat illegal operations.
The PCSO suspended the operation of former STL franchisee Eagle Crest Gaming and Holding Corp. effective May 10, 2018 as it failed to attain and/or remit its PMRR. — Louine Hope U. Conserva
ZAMBOANGA CAO
AGRICULTURE SECRETARY Emmanuel F. Piñol said the government stands to earn as much P2 billion in annual revenues if it “legalizes rice smugglers” in the southwestern part of Mindanao.
In a post on his Facebook page Wednesday, Aug. 29, Mr. Piñol explained that legalizing these operators means giving them proper documentation and imposing minimal tariffs on them to make them legitimate rice importers.
The agriculture chief said these smugglers are actually paying “tara” or bribe money for their illegal activities.
“When the rice supplies coming in through the Southern Islands are charged with tariffs and duties, documented, inspected by Quarantine Officers and the needed volume controlled,” he said, it will no longer be considered smuggling, but legal importation of rice.
“In fact, this proposal is expected to earn the government an estimated P2-billion in revenues every year. It will also ensure stable rice supply in the ZAMBASULTA Area which is totally dependent on smuggled rice,” Mr. Piñol added.
ZAMBASULTA refers to the Zamboanga Peninsula Region, and the island provinces of Basilan, Sulu, and Tawi-Tawi, which are under the Autonomous Region in Muslim Mindanao.
A day earlier, Mr. Piñol said there is actually no shortage of rice supply from local farms, but the high prices in the market is a result of higher purchase price from farmers due to the shortage in stock from the National Food Authority (NFA) and imported rice. The storms and typhoons which have entered the country have also contributed to a lower number of rice production, according to Mr. Piñol.
A strengthened campaign against smugglers also caused the decreased supply in ZAMBASULTA. TRADING CENTER
Mr. Piñol said regulating rice trading there would also require the establishment of a main trading center in Tawi-Tawi, the southernmost island in the country.
“The Tawi-Tawi Rice Trading Center is expected to give government full control of the illegal rice trading in the ZAMBASULTA Area which for decades now has been operated by smugglers,” Mr. Piñol said, noting that an estimated 200,000 metric tons of rice from Vietnam and Thailand are brought in by smugglers through Malaysia.
“When the local rice industry has been revived, the volume of imported rice which would be allowed to be brought in through the Tawi-Tawi Rice Trading Center will be reduced so as not to adversely affect the local rice farmers,” Mr. Piñol said.
Meanwhile, the House of Representatives Minority bloc blasted Mr. Piñol’s proposal.
The lawmakers, led by Quezon Rep. Danilo E. Suarez, also called for the resignation of the secretary as well as other officials in charge of the rice sector.
“It’s plain stupidity to call for legalization of smuggling of agricultural products,” Deputy Minority leader Alfredo A. Garbin Jr. said in a press briefing.
“If you are the secretary of the Department of Agriculture (DA), calling the legalization of smuggling, that’s plain economic sabotage that will endanger not only our economy, but of course our local farmers,” he added.
Senior Minority Deputy leader Jose L. Atienza Jr. said, “The NFA (National Food Authority) NFA Council, the secretary of agriculture, if you cannot handle the proper provision of food for the Filipino… mag-resign kayong lahat (you should all resign).”
Vice President Maria Leonor G. Robredo, for her part, called for a unified “game plan” among all government agencies involved.
“Isa lang sana iyong plano ng ating pamahalaan — hindi iyong iba ang plano ng Council, iba iyong plano ng Administration, iba iyong plano ng DA as an agency… Ano iyong game plan? Saan tayo patutungo? (There should be a unified plan… what is the game plan? Where are we headed?),” Ms. Robredo said. ZAMBOANGA CITY
In Zamboanga City, 1st District Rep. Celso L. Lobregat called on the local government to lift the declaration of state of calamity given the substantial amount of rice supply arriving in the city.
“If I were to be asked, it should be lifted because we don’t need the state of calamity anymore to buy rice,” Mr. Lobregat said in an interview with the local media.
Last week, the city council declared a state of calamity following weeks of rice supply shortage in the markets due to the intensified crackdown on rice smuggling, delay in the arrival of imported commercial rice, and the off-harvest season.
Emergency funds were used by the city government to purchase rice for distribution to the markets at controlled prices.
However, Vice Mayor Cesar S. Iturralde, chair of the city council, said they are keeping the state of calamity for now as support to the continued monitoring of rice prices.
“Considering there is an improved supply of rice now, we expect that the price will be normalized in a few days,” Mr. Iturralde said. FAO
In another development, the United Nations Food and Agriculture Organization (FAO) has launched the new FAO Country Programming Framework (CPF) 2018-2024 for the Philippines, a six year plan to further develop the country’s agricultural sector and achieve food security.
According to FAO, the growth of the Philippine agricultural and forestry sectors are continuously hampered by limited implementation of technology, degradation of natural resources, and high vulnerability to climate change.
“Now, more than ever, is the time when we need to focus our investments on agriculture and rural development so that we can move forward and get back on our feet faster than the threats and disasters that jeopardize our food security and that of generations to come,” FAO Representative in the Philippines Jose Luis Fernandez said in a statement. — Reicelene Joy N. Ignacio, Charmaine A. Tadalan,andAlbert F. Arcilla
THE DAVAO City Chamber of Commerce and Industry, Inc. (DCCCII) is strengthening the new generation of business players with the establishment of the Davao City Young Entrepreneurs Association. The group’s initial 10 members, headed by Ingenuity Global Consulting, Inc.’s John Naranjo, will be inducted during DCCCII’s General Meeting on Aug. 31. “Entrepreneurs are getting younger and they now manage their own businesses. The trend now is for young people, usually the third generation millennials to manage their business,” DCCCII President Arturo M. Milan said. Mr. Milan said the new association will be a venue to help scale-up the business concepts of these young entrepreneurs. The association will consist of regular members who have been in business for at least five years, associate members with less than five years experience, as well as aspiring entrepreneurs. A summit is being planned next month wherein members would have an opportunity to pitch their business concepts to investors. — Carmencita A. Carillo
THE P6.773-billion budget of the Office of the President (OP) was approved on Wednesday by the House Appropriations Committee after less than 10 minutes of deliberation with no interpellation.
The Committee also approved in a succeeding hearing the P447.68 million budget of the Office of the Vice-President (OVP), about P100 million less than the previous allocation, with an unresolved appeal from Vice-President Maria Leonor G. Robredo for additional funds.
The OP budget, according to Executive Secretary Salvador C. Medialdea, is 12.32% higher than the P6.03 billion granted under the General Appropriations Act of 2018.
“The increase takes into account the inflation rate, the implementation of the Salary Standardization Law, retrofitting of old buildings, and replacement of worn-out equipment,” Mr. Medialdea said during the hearing.
Of the total, P1.078 billion is intended for personnel services, P5.184 billion for maintenance and other operating expenses (MOOE), and P511.66 million for capital outlays.
Meanwhile, Ms. Robredo said the OVP proposed a small increase from 2018 but instead saw major cuts.
“If you look at this, our budget for 2018 was P543.95 million. We proposed P549 million for 2019. That is just an additional 6 million, but what was recommended by DBM (Department of Budget and Management) is about P100 million less from last year,” Ms. Robredo said during the hearing.
The approved OVP budget includes P94.56 million for personnel services, P350.12 million for MOOE, and P3 million for capital outlays.
Ms. Robredo said the reduction in the budget will affect the OVP’s livelihood assistance program, and asked for at least the restoration of funding to 2018 levels.
“So, we would like to make this appeal… I hope the old budget can be restored. The office has been used to working within our means,” she said, addressing Appropriations Committee chair Karlo Alexei B. Nograles. She also suggested that the extent of the 2019 reduction is unprecedented, and added that the funding she is seeking is “not for operations but for livelihood assistance.”
The OVP, through its Angat Buhay initiative, assists 176 local government units in providing livelihoods, jobs, education, housing, food security and nutrition, universal health care as well as empowerment programs for women.
Mr. Nograles responded: “We’re trying to resolve all these things within our means as well,” and assured the vice-president that the committee will find ways to resolve her funding issues.
Asked to comment on whether the budget cuts are politically motivated, Ms. Robredo declined to speculate, noting that many other government agencies also had their budgets cut.
“It’s hard to speculate because as you know it’s not just the OVP. Many other agencies experienced cuts,” she said.
“Whatever the reason, we are appealing for more funds. If you look at out funding utilization, everything is above board,” she added, claiming a 95% fund utilization level for 2017.
“For 2017, our utilization was 95% so fund usage is not an issue,” she said, adding that the OVP budget is less than the funding allocated for (Congressional) districts. We really plan to appeal the cuts,” she said. — Charmaine A. Tadalan
By Maya M. Padillo, Correspondent
DAVAO CITY — The city government said it will facilitate talks between landowners and developers to establish an economic zone to attract more foreign investors, the development of which is on the wish list of the Davao City Chamber of Commerce and Industry Inc. (DCCCII).
Councilor Danilo C. Dayanghirang, speaking at a media forum, said city officials may act as facilitators to guide the process along.
“There are issues of ownership and rights. If a party does not want a joint venture participation agreement then we cannot force them. As far as the city is concerned, we can facilitate,” said Mr. Dayanghirang, who chairs the city council committee on finance, ways and means, and appropriations.
DCCCII President Arturo M. Milan, at the same forum, said the business chamber is trying to convince two landowners with property located in the 2nd District, near the city’s airport and seaport, to agree to a joint venture arrangement.
Mr. Milan said major developers have expressed interest in the project, which would be the city’s first industrial ecozone.
“There are landowners and there are also prospective developers, but because of the high value of raw land in the city now, developers no longer want to buy land because it will take up all their capital. What they want is a joint venture. They will develop the zone and the participation of the landowners will be their equity in the corporation,” he said in English and Filipino.
The DCCCII President said the city will become more competitive with an ecozone.
“We are competing with Cagayan de Oro, Cebu and Calabarzon. Here, we don’t have an ecozone to offer,” he said.
Mr. Dayanghirang said one possible solution is to adjust zoning ordinances to reclassify some remote areas for industrial use.
He added, “In the Mandug area there is this Special Area Development Plan, which has been granted by the city and that is why the Lorenzos are allowed to put industrial activities there even if it is an agricultural area. And in Tigatto, there is a massive development there by the Alcantaras going to Cabantian.”
Another option for the city given the limited contiguous space available is to link up with neighboring provinces, the councilor said.
“The approach should be via a Davao Gulf Development Area,” he said, making development more comprehensive.
“Whether we like it or not, we cannot stop here in Davao… We need to look at the entire Region 11 as one of the key result areas for development,” he said.
THE House of Representatives on Wednesday passed on third and final reading a measure institutionalizing the government’s cash transfer program, known as the Pantawid Pamilyang Pilipino Program (4Ps).
Voting 196-6, the chamber approved House Bill 7773, or the proposed 4Ps Act, which mandates cash transfers that will ensure that the poor keep their children in school and report for regular health checks, among other interventions thought to support development.
The law calls for cash-transfer coverage of up to 60% of extremely poor households, as determined by the Philippine Statistics Authority.
Households eligible for the program will be selected through a standardized targeting system, administered by the Department of Social Welfare and Development (DSWD). Participants will also be covered by the National Health Insurance Program.
Prior to the law mandating the cash transfers, the 4Ps originated as a flagship program under President Gloria M. Arroyo, a one-time secretary of social welfare.
Under the proposed law, qualified household-beneficiaries will be entitled to a P2,200 conditional cash transfer per month for the health and education expenses of a maximum of three children or a total of P26,400 per year. Beneficiaries are subject to revalidation every three years.
The cash transfers will be accessed through authorized government depository banks or in the case of other localities, through rural banks, thrift banks, cooperatives, and institutions accredited by the Bangko Sentral ng Pilipinas.
The proposed law also provides for loan assistance once a beneficiary completes skills training required by the bill.
Conditions for participation include regular preventive health checkups for children between zero and five years old; and deworming treatments at least twice a year for children between one and 18 years old.
At present, there six Senate Bills proposing to institutionalize the 4Ps, which remain pending at the committee level. — Charmaine A. Tadalan
THE United States is making a pitch on behalf of US companies seeking to participate in the government’s ambitious infrastructure program.
US Assistant Secretary of State for Economic and Business Affairs Manisha Singh said she told a forum in Japan, attended by over 100 US and Japanese firms, that the US can enhance its longstanding partnership with the Philippines by helping develop its infrastructure.
She said participants showed “great interest” in contributing to the Philippines’ ‘Build, Build, Build’ program.
“The United States has a very long standing partnership with the Philippines. And I really think that now is the time to strengthen further and expand that partnership,” Ms. Singh said at the American Chamber of Commerce of the Philippines, Inc.’s Wednesday luncheon in Makati City.
“We want the Philippine government to know there are many alternatives we’re looking to fulfil the infrastructure needs. We certainly hope that you would look to the United States as a very positive alternative. That its very much in your interest to explore,” she added.
Participation in Philippine infrastructure is part of a broader “Free and Open Indo-Pacific” strategy which includes the Indian Ocean, Southeast Asia, Australia, and New Zealand.
The US hopes to boost honest government in the region and aid the nations involved in resisting threats to their sovereignty.
The US has committed about $113 million for its initial investment in the region. Among its priority areas for funding are infrastructure, energy, cybersecurity and finance.
“Our US Indo-Pacific strategy and the Japanese interest in the region is a perfect complement to that Build, Build, Build in the case of a need for better infrastructure, for better cybersystems, for energy development. US and Japanese companies are very well positioned to provide these needs,” Ms. Singh said, noting that a standing committee has been established to identify infrastructure priorities in the region.
For energy development, she said the US is planning to invest nearly $50 million this year on new programs to help US firms in the region.
“We want a sustainable future here in the Philippines and part of that is building an energy infrastructure that citizens can rely on,” Ms. Singh said.
Ms. Singh also cited the Trump administration’s Better Utilization of Investment Leading to Development (BUILD) bill as a driver to streamline funding access by countries in that the US calls the “Indo-Pacific” region.
The primary purpose of the law is the creation of a new development finance institution that merges the credit authority of both the Overseas Private Investment Corp. and the US Agency for International Development.
The OPIC aids US companies in emerging markets.
The BUILD bill is being harmonized by both chambers of the US Congress, and is expected to more than double OPIC’s current maximum contingent liability from $30 billion to about $60 billion and enable it to expand its international credit portfolio.
The government estimates the need for a total of $26 trillion to develop the Indo-Pacific region by 2030.
“And again we return to the private sector as the entities who can provide these needs. And American companies really are the ones who are going create sustainable conditions for your infrastructure needs moving forward,” Ms. Singh added. — Janina C. Lim
THE Department of Transportation (DoTr) has authorized private entities to open motor vehicle inspection centers.
Department Order (DO) 2018-019 of the DoTr issued on Aug. 10 sets guidelines for establishing private inspection centers, including standards for financial capacity and track record in vehicle inspection.
The new DO will be implemented 15 days after its publication in the Official Gazette and/or in a general circulation newspaper.
It said the DoTr is granting authority to “Filipino natural and juridical persons or entities to conduct the MVIS (motor vehicle inspection system) testing as a requirement for renewal of registration, which shall be valid for a period of five years from the issuance of an Authorization Certificate and renewable for another five years.”
The private motor vehicle inspection centers will come into three classes, specializing in inspecting light-duty vehicles and motorcycles. The third class is the mobile MVIS category to serve remote areas.
The DoTr said privatization of motor vehicle inspection centers will help the Land Transportation Office (LTO) implement Memorandum Circular No. RTL0MC-02402.
“In recent years, there has been a significant growth in the number of new vehicles registered in the LTO which consequently requires additional Motor Vehicle Inspection Centers to accommodate them in a timely manner. Accordingly, Filipino natural and juridical person or entities that are qualified…may be authorized,” it said.— Denise A. Valdez
THE Court of Tax Appeals (CTA) ruled in favor of taxpayers in disputed tax cases worth over P6.2 billion in 2017, the Supreme Court said.
In its Judiciary Annual Report 2017, the SC said cases ruled in favor of taxpayers involved disputed liabilities of P6,229,407,073.01.
Awards to the government, meanwhile, were worth a combined P5,435,153,153.53.
The awards include P2.28 billion in successful refund claims, while denied claims amounted to P1.46 billion.
Assessments against taxpayers that were upheld amounted to P3.97 billion, slightly higher than the P3.95 billion worth of cancelled assessments.
Sought for comment, Lina P. Figueroa, a tax principal at P&A (Punongbayan & Araullo) Grant Thorton, said the rulings were not economically significant.
“It shouldn’t affect the normal goings-on of the economy because CTA cases are decided on a regular basis so it’s not unusual,” she said.
She also said rulings in favor of taxpayers are understandable as such petitioners will have assessed their cases thoroughly before filing claims with the CTA.
“You don’t go to the CTA if you think you have a weak case because the CTA decides on the basis of documents, facts and the law. The CTA really scrutinizes the cases,” Ms. Figueroa added.
She added the Bureau of Internal Revenue (BIR) typically has “little time to go over these documents.”
Under the tax code, the BIR Commissioner has 120 days to grant a claim for refund or issue a tax credit certificate for creditable input taxes. If the claim for refund was fully or partially denied or not acted upon by the Commissioner, the taxpayer may bring the case to CTA within 30 days. — Vann Marlo N. Villegas
