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Bataan rising to MPBL challenge

BALANGA, BATAAN — The last time Jojo Lastimosa experienced an 11-game winning run was more than two decades ago when he was still playing for the Alaska Milkmen and became part of their grand slam run.
One of the 40 Greatest Players in the PBA, the former Rookie of the Year and 10-time PBA champion is now cherishing the moment while enjoying the longest winning streak posted by any team in the Maharlika Pilipinas Basketball League (MPBL) and his team, the Bataan Risers-Zetapro, is not done yet.
“You can never get contented,” Lastimosa told this writer. “You cannot be satisfied and you continue to aspire and see how far you can go.”
After losing their debut game, the Risers had won their last 11 games, capped by their 77-60 triumph over the Pasay Voyagers late Saturday night here.
The Risers had kept a hold of the solo lead of the 26-team cast of the fastest growing regional amateur basketball league put up by Senator Manny Pacquiao with PBA legend and former MVP Kenneth Duremdes serving as commissioner.
Throughout the winning run, Lastimosa was able to get huge contributions from his old reliables — ex-pros Pamboy Raymundo and Byron Villarias, former Alab player Rob Celiz, promising players Jeepy Faundo and Vince Tolentino and homegrown players led by former PBA scoring champion Gary David, Gio Espuelas and Al Carlos among others.
But can the Risers go the extra mile?
“I have no aspirations that we will go undefeated in all of our remaining games. You just have to hope for the best. I still felt there are still some room for improvement and we want to value the learning we get from each game more than anything else,” added Lastimosa.
Bataan is undoubtedly in a zone, but its campaign has yet to reach the halfway stretch of this long and grueling campaign. The team has 13 more games in the elimination round. The Risers have yet to face the big dogs in the tournament, including the San Juan Knights-Go-For-Gold and the Muntinlupa Cagers-Angelis Resort among others.
They’re on a roll and home fans were savoring the moment. The Risers have remained undefeated at home even though it’s noticeable it’s always a struggle for teams making buckets at the People’s Center where matches were all played in a low-scoring affair.
“The rims are hard, so the bounce of the ball every time you take a shot has a big effect to the game. But we’re not complaining. We’re 5-0 here,” added Lastimosa.
Even David, Villarias and Tolentino admitted the struggle playing at the People’s Center.
“Maybe, our advantage is we’ve been practicing at this venue. But it’s really hard to shoot here,” added Villarias.
David, who made a living knocking down every basket throughout his career, knew they have to adjust to the playing atmosphere at home.
“You just have to get used to it and find ways to win,” he added. “But the fans were the reasons why we continue to play good here.”
Tolentino had a more frank argument.
“You cannot question the winning record at home. We’re 5-0 even though we were struggling shooting the ball. Not only us, but all the teams playing here. At the end of the day, it’s finding ways to win and we were finding ways doing it.”
 
Rey Joble is a member of the PBA Press Corps and Philippine Sportswriters Association.
reyjoble09@gmail.com

Enemy is within

There’s no doubt about it now. The Timberwolves have to get rid of Jimmy Butler, and fast. True, he’s the National Basketball Association’s best two-way player not named Kawhi Leonard. And, true, he’s the engine that drives the offense for head coach Tom Thibodeau. On the other hand, he’s also an unabashed, unapologetic agitator who stands as the single biggest obstacle to progress in the near term and, most importantly, beyond.
On paper, Butler’s an acknowledged powerhouse deserving of his All-Star tag. Against the Celtics the other day, he posted stats that highlighted his competitiveness. That said, he also proved to be a model of inefficiency, needing 23 shots to score 21 points and going zero of eight from the three-point arc en route to posting a game-worst minus-19 line. Little wonder, then, that the Timberwolves could not break 100 and wound up absorbing a 17-point loss.
Considering the uneven showing, Butler would have been better off ruminating in silence while on the bench heading into the final buzzer. Instead, he saw fit to celebrate the outcome with Celtics fans at the TD Garden, waving his towel as if he were part of the winning contingent instead of the single biggest reason for the Timberwolves’ setback. It’s a display of recalcitrance that pro hoops followers have continually seen from him since he made known his desire to be traded. And it carried over into his post-match interview, when he announced his intention to miss games on his whim and fancy moving forward.
Will the Timberwolves be appreciably worse on the court without Butler? Probably, since he eroded any negotiating leverage they had by telegraphing his objectives. Then again, they don’t have a choice. He’s making things worse by the day, poisoning the situation with his “I’m the man” stance with one foot out the door. It has certainly turned Karl-Anthony Towns — on whom they just invested $180 million — into a deflated presence.
At this point, Timberwolves owner Glen Taylor should step in and point Butler towards the exit. Never mind the protestations of Thibodeau, whose job is on the line and would personally be better served by keeping the status quo. Else, the rest of the season will go the way of the first eight games: an up-and-down struggle in which their worst enemy is within.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

From the Front Page: Military takes over Customs, business leaders react

Amid expectations of a slower inflation rate moving towards the end of 2018, BSP Deputy Governor Diwa C. Guinigundo said another rate hike is still on the table, saying “we need to maintain our vigilance with a strong tightening bias.” The BSP estimates 2018 inflation to settle at 5.2% before easing to 4.3% next year.

Despite this, the ASEAN+3 Macroeconomic Research Office says Philippine economic growth prospects remain strong. To sustain its robust growth, authorities should pay attention not only to inflation, but also to tightening global financial conditions and rising trade tensions when recalibrating policy to respond to risks and maintain stability.
Bad debts held by big banks grew 8.4% year-on-year in August, with non-performing loans reaching P112.94 billion. A faster 17.9% increase in total loans, however, means that the share of soured debt to total loans dropped 0.12 percentage points to 1.34%, a more manageable level for lenders.
In the real estate sector, these big banks still have room to grow as exposure levels are still well below the 20% limit set by the central bank. Real estate loans and investments accounted for 13% of universal and commercial bank portfolios as of the end of June — fairly manageable, the central bank said.
President Rodrigo R. Duterte’s decision to place the Bureau of Customs under military control drew flak from public servants questioning its constitutionality. Business leaders generally welcomed the move to clean up Customs, but were wary of a possible “lack of business sense” at the helm.

Philippines slips in Doing Business rank

By Elijah Joseph C. Tubayan
Reporter
THE PHILIPPINES managed to improve its score in the World Bank’s annual report that tracks economies’ competitiveness in ease of doing business, but its rank slipped as reforms to streamline transactions and strengthen stakeholder rights were offset by a drop in “getting credit” metrics, increased layers for import inspection and higher tax registration costs.
The World Bank’s Doing Business 2019 report, themed: “Training for Reform” and released on Wednesday evening, placed the Philippines at 124th out of the 190 economies tracked, down 11 places from 113th last year.
The Finance and Trade departments promptly challenged the results, expressing “strong objections” as they argued that the report’s findings on the Philippines in the “getting credit” indicator that weighed heavily on the country’s overall ease of doing business performance ignored data from its largest credit bureau “as its (World Bank’s) methodology prescribed”.
It is not the first time the Philippines has questioned the report. In November 2015, the Finance department wrote the World Bank to express “grave concerns” on the 2016 report’s “glaring flaws and inconsistencies” as the country’s rank fell to 103rd spot from an adjusted 97th place. This, the department had argued, did not reflect improvements in terms of business facilitation.
In this latest report, the Philippines’ ease of doing business overall score actually improved to 57.68 this year from 56.32 last year, as there were three reforms introduced, from two reforms the previous year. The score reflects an economy’s position vis-a-vis the best regulatory practice. A score closer to 100 indicates a more efficient business environment and stronger legal institutions.
The economies’ competitiveness was measured across several indicators, namely: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Labor market regulation data were not included in this year’s report, the World Bank clarified.
Quezon City was the report’s benchmark for the Philippines.
“In the Philippines, minority investor protections were strengthened by increasing shareholders’ rights and role in major corporate decisions and clarifying ownership and control structures,” the World Bank said in a statement.
“The Philippines issued new rules for companies listed on its stock exchange. Shareholders can now approve the appointment and dismissal of the auditor and companies must establish an audit committee composed exclusively of board members,” the report added.
“In the area of Starting a Business, the Philippines simplified tax registration and business licensing processes, but increased tax registration costs.”
The World Bank also took note of improvements in the Philippines’ risk management practices in the construction sector.
However, it noted that the Philippines made trading more difficult this year.
“Trading across borders was made more difficult by increasing the number of inspections for importing, thereby increasing the average time for border compliance,” the report said.
The top 10 economies in the Doing Business 2019 are New Zealand, Singapore, Denmark, which retained their first, second and third spots, respectively, for the second consecutive year, followed by Hong Kong, South Korea, Georgia, Norway, United States, United Kingdom and Macedonia.
“East Asia and Pacific region has made significant progress in enabling entrepreneurship and private enterprise. As the reform momentum continues building up in the region, those economies which lag behind have the opportunity to learn from the good practices adopted by their neighbors,” Rita Ramalho, senior manager of the World Bank’s Global Indicators Group, said in a statement.
‘GROSSLY INACCURATE’
The Department of Finance (DoF) and the Department of Trade and Industry (DTI) issued a statement late Wednesday saying that the report was inaccurate as it did not take into account a larger dataset in gauging individuals and firms’ access to credit.
“We demand that the World Bank review the Philippines’ rating, and make a correction immediately given our country’s increases in the Ease of Doing Business (EODB) scores, which was, unfortunately, offset by the grossly inaccurate and understated findings in the Getting Credit indicator of the Report,” the statement read.
The DoF also wrote to World Bank country director for Brunei, Malaysia, Thailand, and the Philippines to challenge the report’s methodology.
The DoF said that the World Bank only used data from BAP Credit Bureau Inc., which has the smallest database of 1.7 million borrower-entrepreneurs. It said that the report should have also covered other credit bureaus such as the TransUnion Information Solutions, Inc., and Microfinance Information Data Sharing Inc., which holds the information of 13.7 million debtors.
The Getting Credit score slid to 5 from 30 last year, even as it said that credit for micro, small and medium enterprises grew 19% — which is the fastest in the region, according to the Finance department.
“While the World Bank has taken governments to task by fostering an enabling environment characterized by efficient business regulations, so must the World Bank exercise responsibility and greater transparency in its methodology.”
“This correction should be done soon as the Report could unduly compromise the Philippines’ standing among the investment community and negatively impact the country’s development, considering that this document is widely used as a reference by investors and survey organizations. As a highly respected institution, the World Bank has a responsibility to ensure that an economy is not unduly disadvantaged and that its report reflect the realities on the ground,” the statement added.
Nevertheless, the government acknowledged the need to further enhance access to credit, noting the right of borrowers to access their data, online access to credit information by banks and financial institutions, and credit scores.
Moreover, the DoF and DTI said that they will lead a communication campaign to promote recent reforms to streamline business transactions to boost the competitiveness ranking, such as the Bureau of Internal Revenue’s Revenue Memorandum Order setting a 30-day timeframe for the registration of the books of accounts, and the removal of some unnecessary requirements to secure a certification of registration; Quezon City’s One-Stop Shop; the Land Titling Computerization Project; the recently enacted Ease of Doing Business act that shortens the mandated processing time of transactions with the government; and the Personal Property Security Act which are expected to directly impact the competitiveness ranking.
“Since the start of the Duterte administration, government agencies have been hard at work in implementing initiatives to increase the country’s competitiveness.  We believe we are on the right track, and expect upward trajectory in our competitiveness ranking,” the statement read.

11th Foreign Investment Negative List bares ‘modest’ gains in easing restrictions

MALACAÑANG on Wednesday finally issued the government’s closely watched list of sectors in which foreign participation is regulated, showing sectors where restrictions have eased including teaching in “higher education levels.”
For at least two foreign business leaders, however, the long-awaited list could do only so much in improving the Philippines’ attractiveness to foreign direct investments (FDI).
President Rodrigo R. Duterte signed Executive Order No. (EO) 65, which provides the 11th Regular Foreign Investment Negative List (FINL), on Oct. 29, three years and five months after the previous list — under EO 184 — was promulgated.
The Duterte administration hit the ground running on this point soon after it assumed office in mid-2016, with Finance Secretary Carlos G. Dominguez III telling a gathering of Japanese businessmen during Mr. Duterte’s visit there in October that year that the government “will be opening areas to investments that have been administratively limited, and this will be done in May 2017.”
Noting that the previous 10th FINL had kept virtually adopted the preceding list of domestic activities and sectors restricted to foreign participation, foreign business leaders had then asked the government to “make the next FINL less negative.”
In November last year, Malacañang issued Memorandum Order No. 17, directing agencies of the Executive branch to “take immediate steps to lift or ease existing restrictions on foreign participation” in eight sectors and activities, namely: private recruitment; practice of professions where allowing foreign participation will redound to public benefit; contracts for construction and repair of locally funded public works; public services “except activities and systems that are recognized as public utilities such as transmission and distribution of electricity, water pipeline distribution system and sewerage pipeline system”; culture, production, milling processing and trading — except retailing — of rice and corn and acquiring these grains “and by-products”; teaching at higher education levels; as well as retail trade and domestic trade enterprises.
Noting in a press statement on Wednesday that the Philippines is one of the most restrictive countries in the Association of Southeast Asian Nations (ASEAN) towards foreign direct investments, Socioeconomic Planning Sec. Ernesto M. Pernia, director-general of the National Economic and Development Authority (NEDA), said the latest FINL “will help raise the country’s competitiveness and allow us to be closer to parity with other ASEAN member-states by opening up more areas for foreign investment into the country, particularly those that will introduce new technology and stimulate innovation.”
MORE FOREIGN PARTICIPATION ALLOWED
EO 65 added areas where up to 100% foreign participation will now be allowed, namely:

• Internet businesses, a category that has been excluded from the category of mass media, which otherwise remains completely restricted to foreign ownership and participation;

• teaching at higher education levels, provided the subject being taught is not a professional subject (included in a government board or bar examination);

• training centers engaged in short-term high-level skills development that do not form part of the formal education system;

• insurance adjustment companies, lending companies, financing companies and investment houses;

• wellness centers.

The same order increased to up to 40% allowed foreign participation levels in two other sectors, namely:

• contracts for construction and repair of locally funded public works (except those that are foreign funded or assisted and required to undergo international competitive auction), which used to have a 25% foreign equity cap; and

• private radio communication networks, from 20% previously.

NOT ENOUGH
At least two foreign business leaders said the government should do more.
“There are modest gains in the 11th FINL with liberalization in insurance adjustment and slight expansion of practice of professions and foreign ownership in locally funded public works, and private radio communications networks,” Günter Taus, president of the European Chamber of Commerce of the Philippines, said in an e-mailed response to a request for comment.
“Overall, it falls short of the ‘aggressive’ changes pursued by NEDA. Given the directive towards economic liberalization stated in Memorandum Order 2017-16, we were hoping for a much less negative Foreign Investment Negative List,” Mr. Taus wrote.
“With understanding on the limitations of NEDA as part of the Executive Branch, we strongly urge Congress to institutionalize the legal framework for a competitive Philippine economy. Significant of these are amendments to the Public Services Act, to the Retail Trade Liberalization Act, to the Government Procurement Act, to the Investment Restrictions in Commonwealth Act No. 541, and to the Contractors’ License Law. These measures will help establish a level playing field and benefit Filipinos through better quality services at reduced prices.”
For John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, Inc., “[t]he new FINL reflects the first time any administration has seriously sought to shorten the list.”
Saying that “[a]ppearances can be deceptive because the new FINL is a longer document, but it has added more clarity and exceptions”, Mr. Forbes said in a separate e-mail that “the administration can only do so much without repeal of the many restrictions in the laws and constitutional provisions cited in the FINL.”
“Enactment of six bills now in Congress to amend the Public Services Act, the Retail Trade Act, the Foreign Investment Act and three laws to liberalize foreign participation in government procurement, including construction, will make the next FINL shorter,” he added.
“There is also strong support in the business community to remove restrictions of foreign equity from the 1987 Constitution. We urge Congressional leaders to prioritize such reforms that will strengthen the economy, result in more foreign investment, jobs, and competition.”
OTHER EFFORTS
Congress has trained its sights to paving the way for more foreign participation in telecommunications.
The Duterte administration has been pushing for more competition in this sector, with an auction for the selection of the country’s third major telecommunications service provider scheduled on Nov. 7.
Two bills — House Bill No. 5828 which bagged third-reading in September 2017 and Senate Bill No. 1754 which now awaits plenary action in that chamber — seek to amend the 82-year-old Commonwealth Act No. 146, or “Public Service Act,” by differentiating public services from public utility. The measures will narrow the definition of “public utilities” to transmission and distribution of electricity and water, as well as sewerage management.
“All told, these are still marginal improvements in our effort to attract FDIs,” Mr. Pernia said in the Wednesday NEDA statement.
“If we really want to be sufficiently competitive with our ASEAN neighbors, more drastic amendments in our restrictive laws are called for.”
Restrictions to foreign ownership and participation in several local sectors and activities have been blamed by foreign and local economists and businessmen alike for the Philippines’ relatively small FDI haul.
The latest Investment Trends Monitor of the United Nations Conference on Trade and Development said FDI flows to Southeast Asia increased by 18% year-on-year to $73 billion last semester, driven largely by Singapore’s $35 billion, Indonesia’s $9 billion and Thailand’s approximately $7 billion.
In comparison, data from the Bangko Sentral ng Pilipinas (BSP) showed that FDI net inflows to the Philippines rose 42.4% to $5.755 billion last semester from $4.041 billion in 2017’s first half.
The central bank has projected these inflows to hit $9.2 billion for full-year 2018 from the actual $10.049 billion actually received in 2017.
BSP data also show the Philippines’ closest Southeast Asian competitors for FDIs, Thailand and Vietnam, growing inflows by 67.08% to $6.912 billion from $4.137 billion and by 11.84% to $6.99 billion from $6.25 billion, respectively. — Arjay L. Balinbin

Central bank sees inflation easing from October

By Melissa Luz T. Lopez
Senior Reporter
INFLATION likely eased in October, coming from a nine-year high the preceding month, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday, suggesting the possible start of a downtrend as higher oil prices were offset by lower food and electricity costs.
Prices of widely used goods likely rose 6.2-7% last month, the BSP’s Department of Economic Research said Wednesday.
This is slightly slower than the 6.3-7.1% forecast given for September which turned out as 6.7%, the fastest pace seen since February 2009.
At the same time, BSP’s estimate for last month compares to an actual 3.1% recorded in October 2017.
The Philippine Statistics Authority will report latest inflation data on Tuesday.
“Upward price pressures from domestic petroleum prices and water rates in Manila Water (Company, Inc.) and Maynilad (Water Services, Inc.)-serviced areas could be offset by the lower prices of rice and other food items as well as the downward adjustment in Meralco power rates,” the central bank said, referring to the country’s biggest electricity distributor, Manila Electric Co.
The BSP believes that inflation is slowly inching its way down.
If realized, October would break the nine-month ascent observed since the year opened.
The central bank unit sees month-on-month inflation at -0.2% to 0.6%, confirming the government’s expectations that inflation may have peaked last third quarter. BSP officials have said that inflation may have already peaked in September, and will slowly ease back to the 2-4% target range in the coming months.
Prices of widely used goods went up by five percent on average in January-September, an entire percentage point above the full-year target.
Metro Manila concessionaires Manila Water and Maynilad raised utility rates starting October following regulatory approval for rate rebasing, plus a bigger charge to cover foreign exchange differentials.
For oil, the benchmark Dubai crude saw prices climb to four-year highs earlier this month, but later on eased amid increased US stockpiles and as the peso posted some recovery against the dollar.
In an economic bulletin e-mailed on Wednesday, the Department of Finance said the 36% surge in world crude prices as well as the peso depreciation were to blame for higher oil prices last month, while the P2.50 per liter increase in excise tax had a “small impact” on the overall price increase.
Meralco also announced a reduction of P0.0966 per kilowatt-hour in electricity tariffs in customers’ October bill, owing to a lower generation charge.
The recent spike in food prices may have also been clipped following four administrative orders from Malacañang directing the National Food Authority, the Sugar Regulatory Administration and the Department of Agriculture to lift non-tariff barriers and streamline import procedures for rice, sugar, meat and fish. These measures are meant to address supply bottlenecks and, in turn, bring down food costs.
The Monetary Board has raised rates by a cumulative 150 basis points since May, including a back-to-back 50bp increase in August and September, to temper inflation expectations. BSP Deputy Governor Diwa C. Guinigundo said in an interview that another rate hike remains “on the table” for the Nov. 15 policy meeting, although policy makers will remain data-dependent in coming up with their decision.
Some Monetary Board members have signalled that they could pause the tightening cycle should the inflation momentum show signs of easing.
Still, the central bank said it will continue close monitoring of prices and will “undertake necessary measures” to ensure stability.
The BSP expects full-year inflation to clock in at 5.2% before easing to 4.3% in 2019.
State economic managers and central bank officials are banking on an impending shift from a rice import quota system to one that liberalizes importation of the staple to slash retail prices of the grain and shave 0.7 of a percentage point off inflation.

Economic surveillance group maintains expectation of ‘robust’ Philippine growth amid risks

PHILIPPINE economic growth prospects remain strong despite inflation challenges and external headwinds, the ASEAN+3 Macroeconomic Research Office (AMRO) said in a statement late Tuesday that showed projections were maintained from a previous report.
AMRO said its press statement reflected the “preliminary assessment” after its annual consultation visit to the Philippines last Oct. 15-24.
“The Philippine economy is expected to continue its robust growth, expanding by 6.5% in 2018 and 6.4% in 2019, broadly in line with its potential,” AMRO lead economist Siu Fung Yiu was quoted as saying.
“However, the economy is facing challenges from rising inflation; wider, tightening global financial conditions and an escalation of the ongoing global trade tensions,” he added.
“Thus, the authorities should strive to maintain the overall policy direction, while recalibrating the policy mix to maintain stability and guard against risks.”
AMRO’s estimates were kept from the Oct. 8 issue of its Regional Economic Outlook report.
They compare to the government’s downward-adjusted 6.5-6.9% full-year 2018 target and 7-8% for 2019 until 2022.
AMRO’s economic growth forecasts also compare with the World Bank and International Monetary Fund’s (IMF) 6.5% and 6.7% for 2018 and 2019, respectively, and the Asian Development Bank’s 6.4% and 6.7% for those years.
Economic growth clocked 6.3% last semester, compared to 6.6% in 2017’s first half, following a slower-than-expected six percent in the second quarter that was blamed on weak agriculture and export performance, and elevated inflation.
The overall rise in prices of basic goods averaged a nine-year-high five percent in the nine months to September, well past the government’s 2-4% target band for 2018.
AMRO said that GDP growth “is expected to pick up in the second half and to continue to expand robustly in 2019, driven by both consumption and an ambitious investment program to close the massive social and physical infrastructure gaps.”
“Going forward, inflation is expected to peak in the last quarter of 2018 and trend downward toward the middle of the target range in 2019,” it added, noting that inflation was caused by a combination of supply-side “shocks” and “robust” domestic demand.
“Amid the strong prospects for economic growth, near term challenges need to be properly addressed. The major challenges include uncertainty surrounding inflation such as rising inflation expectations, a higher-than-expected minimum wage increase; and a volatile external environment including the spillovers from the ongoing US-China trade conflict and higher interest rates in major economies,” the regional surveillance group said.
“To sustain high and stable growth over the long term, monetary policy should be appropriately tight to anchor inflation expectations and curb second round effects…. To further mitigate the impact of supply-side factors on inflation, non-monetary measures such as rice tariffication also need to be implemented in a timely manner,” the statement read, referring to plans to replace the current rice import quota system with one that liberalizes importation of the staple.
A return to a regular importation scheme is expected to slash retail prices of the grain by P7 per kilogram and shave 0.7 of a percentage point off inflation.
AMRO said that the Bangko Sentral ng Pilipinas’ cumulative 150-basis point hike since May, so far, is “commendable.”
It also welcomed efforts to strengthen hedging functions in the foreign exchange market, fortify macrofinancial surveillance systems and to develop more macroprudential measures.
Moreover, “[t]he enormous efforts taken by the government to push infrastructure investment and social spending will serve the country’s long-term development objectives well.”
At the same time, AMRO shared the IMF’s concern in cautioning the government to watch its budget deficit as it prods infrastructure spending. “[F]iscal policy should be calibrated to help contain inflation pressure and support the external position, through a reprioritization of expenditure,” it said. — Elijah Joseph C. Tubayan

Transport dep’t seeks jeepney fare hike review

THE Department of Transportation (DoTr) will ask the Land Transportation Franchising and Regulatory Board (LTFRB) to review the jeepney fare hike approved two weeks ago in the face of receding world crude oil prices.
“We will recommend for the LTFRB to review the fare increase. In the meantime, however, since there is already a decision, LTFRB can still implement the increase pending the review,” DoTr officer-in-charge Undersecretary for Road Transport Mark Richmund M. de Leon said in a statement on Wednesday.
The LTFRB on Oct. 18 approved a P10 minimum fare for public utility jeepneys in the National Capital Region as well as Regions 3 and 4 in response to a petition from transport groups affected by rising oil prices earlier this year and the weakening of the Philippine peso. The P2 hike — which incorporates a provisional P1 increase implemented in July — will be implemented starting Nov. 2.
The DoTr noted the price of fuel has been going down three weeks in a row.
“Nung diniscuss ‘yung price increase sa LTFRB, ang presyo ng gasolina per barrel, $82. Ngayong ina-award… ‘yung presyo per barrel, $76 (When the petition for price increase was being discussed in the LTFRB, the price of gasoline per barrel was $82. Now that it has been granted, the price per barrel is $76],” Transportation Secretary Arthur P. Tugade said in a press briefing on Wednesday.
He noted that, under the current system, having to hold consultations every time there is a fare hike petition can result in a situation wherein decisions are made when conditions that warranted the fare increase in the first place have lapsed.
The transportation chief noted the case for the aviation sector, wherein airlines are allowed to adjust air fares based on a regulator-approved matrix that sets the limit for fare increases vis-a-vis movements of global jet fuel price.
“I want rate increases to be predicated on a predetermined matrix,” Mr. Tugade said.
Sought for comment, LTFRB Chairman Martin B. Delgra III said in a mobile phone message that the board will consider the DoTr’s suggestion, and that the proposal for a matrix for fare increases “would be favorably considered.”
“Review of current policy and processes, consultation with stakeholders and concerned government agencies and protocol on frequency of fare adjustments may be some factors to be considered,” Mr. Delgra said. — Denise A. Valdez

New Customs chief sworn in, vows reforms

PRESIDENT Rodrigo R. Duterte has officially sworn into office retired Armed Forces chief Rey Leonardo “Jagger” B. Guerrero as the new head of the Bureau of Customs (BoC), replacing Isidro S. Lapeña after P11 billion worth of shabu, or methamphetamine hydrochloride, was found last August to have entered the Philippines under his watch.
Mr. Duterte administered the oath of office to Mr. Guerrero on Tuesday at the Presidential Guest House in Davao City.
Also in the same day, Mr. Duterte swore in Mr. Lapeña as Director-General of the Technical Education and Skills Development Authority (TESDA) at the Philippine Air Force Brigadier General Benito N. Ebuen Air Base in Cebu.
Mr. Guerrero, following his retirement from the military, was appointed in April as head of the Maritime Industry Authority (MARINA).
Mr. Duterte instructed Mr. Guerrero in his new role to “double the zealousness” in performing his mandate of ridding the BoC of corruption, while noting that the retired general was a “good and honest” man.
He also ordered the replacement of Customs personnel with the Armed Forces.
During a turnover ceremony on Wednesday at the Customs headquarters in Manila, Mr. Lapeña said in a speech that he was true to his words to stop corruption in the BoC under his watch, noting that he has already relieved several Customs personnel who were found to be colluding with traders or who failed their collection targets under his one-strike policy.
The former Philippine Drug Enforcement Agency chief also noted his initiatives to cut red tape through the electronic valuation system, as well as anti-smuggling efforts and measures to reduce human contact on Customs transactions.
“I looked back at what I said during my assumption speech, and I thank all the men and women (who) went on board with me because the records showed I was able to deliver what I promised back then in my 14 months as your commissioner,” Mr. Lapeña said.
“I will leave the Bureau of Customs knowing that I have done the right things the right way. There may have been lapses in the systems and operations, but with what I told you 14 months ago, to do away with “tara” and stop the practice of “no pasalubong,” no-gift and no-take policy, these are the same policies that I have also followed,” he added.
Mr. Lapeña was appointed in August last year, replacing now Bureau of Corrections chief Nicanor E. Faeldon, also a military man, following the controversy on the entry of P6.4 billion worth of shabu found in a Valenzuela warehouse.
Mr. Guerrero in his turnover speech said he pledges to build the trust of the public with the BoC and commits to stop corruption.
“As I take the helm of the BoC, expect that the efforts against corruption will be both decisive and unrelenting, as I focus on addressing systemic weaknesses, implementing stronger internal safeguards, enhancing integrity systems and building capabilities and capacities of our law enforcement,” he said.
“We must regain the trust of those whom we serve, and we start by building trust between and among us. Without trust, we will not be able to make change happen, or rebuild our credibility in our reputation,” said the new BoC chief.
Tax experts interviewed for this story said the President’s order to replace Customs staff with military men may reduce collusion between the Customs and traders, although they may lack the technical expertise in Customs functions.
“They may be tougher and it may improve compliance, but they don’t know the work of tax professionals. It’s a political move,” a tax expert said in a phone interview who requested not to be named.
They added that corruption would still be possible under the watch of the military, and may have no significant impact on revenue collection.
“There would probably still be corruption, but maybe lower. However with the lack of experience in tax collection, it’s still vague how it will improve tax collections,” he said.
Another tax expert said Customs’ revenue performance may not be directly attributable to Mr. Lapeña’s efforts, but rather due to the weak peso against the US dollar, a high value-added tax take from high prices of imported oil, and a boost in capital goods imports.
The BoC raised P434.6 billion as of September, up 34% from the P323.8 billion in 2017’s comparative nine months, beating its P417.5 billion target by four percent.
The bureau’s nine-month revenues are equivalent to 74.76% of a P581.29-billion full-year target.
The bureau’s collections were also 20.58% of the P2.11-trillion overall state revenues recorded in the January-September period, and 22.93% of the P1.90-trillion tax revenues that grew 16% year-on-year.

Palace stands by Finance chief

By Arjay L. Balinbin
Reporter
MALACAÑANG on Wednesday said Secretary Carlos G. Dominguez III of the Department of Finance (DoF) “continues to enjoy the trust and confidence” of President Rodrigo R. Duterte amid calls for his resignation.
“Some quarters have been asking for the resignation of Finance Secretary Carlos Dominguez. The Palace finds no reason or basis for such call,” Presidential Spokesperson Salvador S. Panelo said in a statement on Wednesday, Oct. 31.
The Manila Times reported on the same day that the “Coalition Against Corruption (CAC)” is calling for the resignation of Mr. Dominguez because “the DoF has not shown any visible initiative to curb corruption” in the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC), “despite President Duterte’s declared war on corruption.”
But according to Mr. Panelo, “Secretary Dominguez continues to enjoy the trust and confidence of President Rodrigo Roa Duterte.”
He noted that “as one of the President’s trusted economic managers, he steered our economy to become one of the best-performing growth leaders in the region and continues to perform remarkably.”
“Revenue collections reached new record-highs during his stewardship, including the highest first quarter tax effort we have ever achieved in the past 25 years. We expect Secretary Dominguez to maintain his superb work ethic for the rest of his stint in the Department of Finance,” Mr. Panelo added.
As for the issues surrounding the BoC, Mr. Panelo said: “Secretary Dominguez is aware of what is happening in the bureau. The corruption in the BoC is complex, and the Secretary does not need to be blunt just to exhibit what he does to address it. He was in touch with former BoC Chief Isidro Lapeña, and he is slated to meet with the new Customs head Rey Leonardo Guerrero regarding the bureau’s operations.”

Rosita out of PAR as gov’t takes stock of damage

RESCUERS worked with bare hands and shovels to try to free 23 people trapped under earth and rubble on Wednesday, after Typhoon Rosita (international name Yutu) dumped heavy rains on the northern mountainous region, triggering floods and deadly landslides, Reuters reported.
Apart from determining the death toll in the wake of Rosita, which left the Philippine Area of Responsibility (PAR) on Wednesday, the government has also reported more than P100 million in damage to agricultural crops.
According to the Department of Agriculture (DA), 99.82% of the damage was attributed to rice, at P112.01 million affecting 7,429 hectares and 4,917 farmers in Benguet, Ifugao, Kalinga, Mt. Province, Aurora, Pampanga, Nueva Ecija, Tarlac, and Zambales.
Damage to 19 hectares of high value crops such as cabbage, broccoli, potato, tomato, garden pea, bell pepper, lettuce, carrot and snap beans amounted a production loss volume of 4 metric tons valued at P199,079.
For his part, Presidential Spokesperson Salvador S. Panelo said in a statement on Wednesday, “The President has directed all government agencies to immediately respond and undertake measures to help the victims and families and to rehabilitate the typhoon ravaged areas, including the clearing and repairing of roads that have become inaccessible or impassable.”
He added, “Efforts to look for survivors are currently ongoing and we pray for the rescue of those still trapped or missing.”
President Rodrigo R. Duterte will visit the affected areas soon, accompanied by his Cabinet, Mr. Panelo said.
The Department of Budget and Management (DBM), for its part, has released P662.5 million to cover the needs of those affected by typhoon Rosita.
The funds were released to the Department of Social Welfare and Development (DSWD), which will deliver family food packs, relief supplies, cash or food-for-work programs, as well as provide shelter assistance.
Budget Secretary Benjamin E. Diokno said the fund release will also be for the “forthcoming typhoons that may enter the PAR in the last two remaining months of the year.” — reports by Reuters, Reicelene Joy N. Ignacio, Gillian M. Cortez, and Elijah Joseph C. Tubayan

Memorandum order out on regulation of sale of firecrackers

PRESIDENT Rodrigo R. Duterte has directed the Philippine National Police (PNP) and other concerned agencies to “strictly implement” existing laws, rules and regulations on firecrackers and pyrotechnic devices.
Through Memorandum Order (MO) No. 31 on Oct. 29, Mr. Duterte orders the PNP, in coordination with other concerned agencies and the local governments, to conduct inspections to ensure that manufacturers, distributors, retailers and users of firecrackers and pyrotechnic devices are in compliance with the government’s safety guidelines.
The order also directs the PNP to “confiscate and destroy prohibited pyrotechnic devices and firecrackers like Picollo, which is “the top cause of firecracker-related injuries.”
The President’s MO 31 also noted that licenses and permits of those found in violation of existing laws, rules and regulations will be “cancelled or revoked.”
“Suspend the processing of new licenses and permits for the manufacture, sale, and distribution of firecrackers and pyrotechnic devices pending review of existing licensees’ and permittees’ compliance with laws, rules and regulations,” the order also read. — Arjay L. Balinbin

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