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Duterte issues EO on coordinating antidrug campaign

By Arjay L. Balinbin
Reporter
PRESIDENT Rodrigo R. Duterte has signed an order institutionalizing the Philippine Anti-Illegal Drugs Strategy (PADS), which the Dangerous Drugs Board (DDB) formulated to address the drug problem in the country.
Signed on Oct. 29, Executive Order No. 66 noted that DDB’s PADS “outlines the balanced efforts of the government to strengthen its campaign against prohibited drugs and their precursors, and contribute to international efforts to counter the worldwide illegal drug problem.”
Hence, this order directs all government offices, departments, bureaus, agencies and offices, including government-owned or -controlled corporations and state universities and colleges, to “implement the PADS in accordance with their respective mandates.”
These agencies are also directed to submit to the DDB, as the lead agency in the implementation of the program, their respective implementing and operation plans.
The agencies mentioned, including Local Government Units (LGUs), “shall formulate and adopt their respective Drug-Free Workplace Programs, and conduct authorized drug testing among their respective officials and personnel….”
In its Oct. 15 statement, the DDB said PADS “will serve as the framework of action in ensuring drug abuse prevention and control in line with the current priorities of the Duterte Administration.”
“As emphasis is given to the supply reduction efforts including aggressive law enforcement to address the drug problem in the Philippines, we also highlight the importance of treatment and rehabilitation, reintegration and continuum of care for drug users. This concept is given importance through the ‘whole of nation’ approach which we have continuously advocated,” DDB Chairman Secretary Catalino S. Cuy said in the statement.

DFA: Kidnapped Filipino seafarers in Nigeria released

THE seven Filipino seafarers who were kidnapped last month in Nigeria have been released, the Department of Foreign Affairs (DFA) reported late Tuesday.
In its report to Foreign Affairs Secretary Teodoro L. Locsin, Jr., the Philippine Embassy in the Nigerian capital of Abuja said the 12 crew members of the Swiss-owned MV Glarus, including the Filipinos, were released on Sunday, Oct. 28.
Ambassador to Nigeria Shirley Ho-Vicario said the Filipino seafarers are now in Zurich, Switzerland, awaiting to be flown back home.
The MV Glarus was on its way to Port Harcourt, Nigeria on Sept. 22 when it was intercepted by armed men who kidnapped the 12 crew members.
On Wednesday, the Philippine Embassy in Abuja also advised Filipinos in Nigeria, especially the 3,000 residing in Lagos, to remain vigilant as violent clashes between police and protesting members of the Islamic Movement continued. Ms. Ho-Vicario said no Filipino has been harmed amid that development.
According to a Reuters report, police forces opened fire at Shi’ite Muslim protesters who were demanding the release of their leader Ibrahim Zakzaky. At least 24 protesters were reported killed, but the military said only three people were killed, and four soldiers were wounded. — Camille A. Aguinaldo

SC upholds indictment of Grace Padaca, 2 others for graft, malversation

THE SUPREME Court (SC) affirmed the indictment of former Isabela governor Grace Padaca and two others for graft and malversation of public funds.
The charges involve a P25 million fund given to a foundation for the implementation of a provincial rice program. The high court has directed the Sandiganbayan to continue the necessary proceedings on the case.
In an Aug. 8 decision, the graft court’s Second Division dismissed the consolidated petition of Ms. Padaca, manager Dionisio Pine of private foundation Economic Development for Western Isabela and Northern Luzon Foundation, Inc. (EDWINLFI), and Municipal Councilor Servando, who is also the chairman of EDWINLFI. They sought to nullify the Office of the Ombudsman’s finding of probable cause for the filing of graft and malversation of public funds and the Sandiganbayan’s denial of their motion to recall the arrest warrant on them.
The case involved the Provincial Government of Isabela’s procurement of a P35 million loan from the Development Bank of the Philippines for the funding of the Priority Agricultural Modernization Project of Isabela. However, P25 million of the loan was released to EDWINLFI.
The SC stated that it agreed with the Sandiganbayan’s ruling that “no grave abuse of discretion amounting to lack or excess in jurisdiction” can be linked to the Ombudsman’s finding of probable cause against the petitioners as it is grounded on “substantial basis.”
The high court also said there is no grave abuse of discretion on the part of the Sandiganbayan in its denial of the appeal by the accused to recall the warrants for their arrest as it “aptly limited its determination of probable cause to resolve whether arrest warrants should be issued against the petitioners.”
“In sum, there is no cogent reason to disturb the Ombudsman’s finding of probable cause and the Sandiganbayan’s denial of Soriano and Pine’s Omnibus Motion….[T]he Court cannot and will not nullify the Ombudsman’s factual findings on the sole ground that the complainant does not agree with such findings,’” the decision read.
In its investigation, the Ombudsman found out Ms. Padaca involved the services of EDWINLFI in managing the rice program without “due regard to the rules on government procurement” and despite there being no memorandum of agreement ratified by the Sangguniang Panlalawigan.
It also noted that the affiliation of Mr. Soriano and the provincial government’s legal officer Johnas M. Lamorena with EDWINLFI cast suspicion on the regularity of the transaction.
ECHIVERRI CLEARED
In another ruling, the Supreme Court (SC) affirmed the Sandiganbayan’s acquittal of former Caloocan City mayor Enrico R. Echiverri and two others from graft charges and falsification of documents.
In a resolution dated Oct. 1, the SC dismissed the petition of the Office of the Ombudsman which assailed the Sandiganbayan’s ruling in favor of Mr. Echiverri for failure “to sufficiently show” that the graft court gravely abused its discretion in granting the demurrer to evidence filed by Mr. Echiverri, former city accountant Edna V. Centeno and former city budget officer Jesusa C. Garcia.
The high court affirmed the Sandiganbayan’s grant of respondents’ demurrer to evidence, as the evidence presented by the prosecution showed that Mr. Echiverri was authorized to enter into the concerned city development projects.
The SC added that the projects “strictly underwent the required procurement process, thereby eliminating the possibility that it was entered into by respondents with manifest partiality or with gross inexcusable negligence” that resulted in damage to the local government.
“In this light, the (graft court) also correctly ruled that Centeno and Garcia did not commit any falsification in certifying that funds were available for the subject infrastructure project(s),” the high court said in part. — Vann Marlo M. Villegas

Sister Fox to leave PH on Nov. 3

By Vann Marlo M. Villegas
THE LEGAL counsel of Australian missionary Patricia Fox said the nun will leave the country on Nov. 3 following the Bureau of Immigration’s denial of the extension of her temporary visitor’s visa.
In a statement, her lawyer said Ms. Fox is compelled to leave “under strong protest.”
“We will not allow the government to forcibly expel Sr. Fox out of the country given her stature as a respected missionary nun and human rights defender neither will we give them the wicked pleasure of gloating over this injustice,” the statement read, adding: “Sr. Fox will leave the Philippines with a clear conscience that she has done nothing wrong and illegal during her 27 years of stay in the country. She is and will always be loved by the Filipino people.”
The BI (Bureau of Immigration) previously denied Ms. Fox’s application for the extension of her missionary visa and required her to apply for a downgrade to a temporary visitor’s visa.
She was granted the temporary visitor’s visa on Oct. 24 with 59-day validity starting from the expiration of her missionary visa on Sept. 5. It will expire on Nov. 3.
Ms. Fox’s legal counsel added that she will continue her missionary and human rights work. “She will continue to stand for the oppressed and speak about injustices against the Filipino people.”
“She intends to come back (to) the Philippines as soon as President Duterte is out of power and another government more receptive of dissent and who recognizes missionary and human rights work is in place.”
Ms. Fox has a pending petition for review before the Department of Justice (DOJ), assailing the deportation case issued by the BI against her.
Ms. Fox was arrested on April 16. President Rodrigo R. Duterte has admitted that she ordered the investigation of Ms. Fox for “disorderly conduct.”

Palace calls reported P25 wage hike for NCR ‘unofficial’

MALACAÑANG said the reported P25 minimum wage increase for Metro Manila is not yet official and remains under review, after labor and employer representatives claimed knowledge of information contained in the National Capital Region (NCR) wage order ahead of its release.
In a statement on Wednesday, Presidential Spokesperson Salvador S. Panelo said that National Wages and Productivity Commission (NWPC) has yet to review the wage order drafted by the Regional Tripartite Wages and Productivity Board for the NCR after the wage board completed its deliberations on Tuesday.
“As of today, Oct. 31, the reported P25 wage hike for minimum wage workers has yet to be approved by the National Wage and Productivity Commission (NWPC). Therefore, the figure being disseminated is not official,” Mr. Panelo said.
The Department of Labor and Employment (DoLE), the RTWPB-NCR, and the National Wages and Productivity Commission (NWPC) have not confirmed that the wage order will call for a P25 wage hike.
On Tuesday, Employees Confederation of the Philippines (ECoP) Acting President Sergio R. Ortiz-Luis, Jr. told GMA News that the RTWPB-NCR approved a minimum-wage increase of P25.
In a phone interview with BusinessWorld, Mr. Ortiz-Luis said that information on the NCR wage board’s decision was relayed to him by the employers’ representatives of the RTWPB-NCR.
“I was just told by our representative in the wage board that they have already made a decision,” Mr. Ortiz-Luis said.
When asked if this was a reasonable amount for employers, Mr. Ortiz-Luis reiterated, “We will respect what the board decides.”
On the other hand, Associated Labor Union-Trade Union Congress of the Philippines Spokesperson Alan A. Tanjusay said in a briefing on Wednesday that the NCR-Wage Board failed to recognize the needs of minimum wage earners in the region.
“The board failed its mandate to balance labor and capital,” he said.
The labor coalition estimates that a P335.07 wage hike is needed for workers to earn a living wage, challenged ECoP to release a computation showing how workers can survive with a P25 wage increase.
Anakpawis partylist Representative Ariel Casilao said in a statement on Wednesday that a P25 increase is not enough to offset rising inflation.
The Anakpawis representative also said that in 2015, NCR establishments had a combined profit of P903 billion pesos while still paying their workers an average of P530.
“Raising the minimum wage in NCR to P750 will cost P133 Billion which is just 14.6% of their profits,” he said.
DoLE said in an advisory on Wednesday that it will announce the new NCR wage order on Monday, laying out the extent of the wage increase beyond the current P512. — Gillian M. Cortez

Liquidity growth slowest in nearly three years

By Melissa Luz T. Lopez
Senior Reporter
MONEY SUPPLY growth eased anew in September to post its slowest pace in almost three years, the central bank said, as bank lending also cooled at a time of higher interest rates.
Domestic liquidity or M3, the broadest measure of money in an economy, expanded by 9.7% year-on-year, slower than the 10.4% pace logged in August, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday. By face value, money supply totalled P11.2 trillion.
This is the slowest M3 growth logged since December 2015, and is the first time in nearly three years that the increase was in the single-digit level. Month on month, money supply rose by a modest 0.1%.
Funds from local sources grew by 14.5% that month, decelerating from a 15% increase posted in August as loans to the private sector eased, the central bank said in a statement.
Meanwhile, net claims on the government went up faster at 11% from 8.7% the previous month. This reflected increased borrowings made by the national government.
Net foreign assets in peso terms even dropped by 0.7% from a year ago, milder compared to a 1.3% contraction posted in August to reflect lower gross international reserves maintained by the BSP.
Dollar reserves dropped to a seven-year low of $75.161 billion in September due to lower gold valuations and as the BSP used the stash to defend the currency during the daily peso-dollar trading.
Meanwhile, foreign assets maintained by banks picked up due to higher loans as well as investments in debt papers, the central bank added.
The BSP introduced back-to-back rate increases worth 50 basis points (bp) each during their August and September meetings in order to rein in inflation expectations. This brought the key policy rate to 4.5%, the highest level in nearly a decade.
Despite the slower increase, the central bank said that overall liquidity conditions “remain supportive of the country’s growth requirements,” with economic managers targeting faster growth during the second semester in order to realize the downward-revised 6.5-6.9% target for 2018.
LENDING GROWTH PALES
Growth in approved credit lines also eased in September to mark its slowest pace in nearly two years.
Bank lending went up by 17.4% during the month, still robust but slower than the 18.9% increase in August. If reverse repurchase deals are included, total loans were 16.3% higher versus an 18.4% climb the month prior.
This is the slowest growth logged since December 2016, where bank lending posted a 17.3% increase.
Bulk of the loans were extended for production activities, which surged by 17.2% from a year ago versus the previous month’s 19.1% spike.
Lending to the construction sector continued to see the biggest rise at 36.4%, just as the government’s aggressive infrastructure spending push picks up pace.
Other industries which received additional funding are financial and insurance activities (31.4%); wholesale and retail trade, repair of motor vehicles and motorcycles (22.5%); manufacturing (20.6%); and real estate (15.8%).
Meanwhile, lending for administrative and support services activities was halved, while credit lines for other community, social and personal activities and professional, scientific and technical
activities went down by 12% and 11%, respectively.
Reversing the trend is consumer lending, which posted a faster 17.9% growth in September versus 15.8% a month ago. This came amid higher auto, credit card and salary-based loans which offset declines in other types of household borrowings.
The central bank said they will remain watchful over credit and liquidity growth to ensure price and financial stability.

Initial rice import shipments of 47,000 MT arriving by Dec. 1

THE 47,000 metric tons (MT) of rice awarded to bidders in the latest import auction will arrive by Dec. 1, Agriculture Secretary Emmanuel F. Piñol said.
The 47,000 MT shipment represents the volume awarded to bidders at the auction for the first batch of 250,000 MT out of 750,000 MT authorized for import this year by the National Food Authority (NFA) Council.
The government failed to make a full award of the volume authorized because many bids failed to meet the posted reference prices.
“The first arrival will be the volume bid out under the G2P (government-to-private) arrangement of 47,000 (MT). [NFA Officer-in-Charge] Tom Escares said deliveries are expected between Nov. 15 and Nov. 30,” Mr. Piñol told reporters.
He said the new auction for the unawarded 203,000 MT is scheduled for Nov. 6. Volumes awarded at that re-bid will arrive “between Nov. 30 and Dec. 16.”
He added that shipments from the remaining 500,000 MT will be arriving starting the end of 2018 until February, in time for the lean months.
“We will have enough buffer stock,” Mr. Piñol added.
The 203,000 MT will be imported through government-to-government (G2G) agreement.
“By the end of 2018, the expected buffer stock is 134 days… or over four months’ demand,” he said, adding that the calculation includes rice held by households.
He added that the Department of Trade and Industry plans to oversee the import of a further 80,000 MT.
The DA, along with the DTI and NFA, have implemented a suggested retail price (SRP) scheme covering well-milled, regular-milled and premium rice.
“There are fears it might affect the prices of palay (domestically-grown unhusked rice) but you have to understand that the NFA is ready to procure… We would prefer if traders not corner the palay market because the government will be able to build up its inventories for 2019,” Mr. Piñol said. — Reicelene Joy N. Ignacio

Yields on term deposits go up

YIELDS fetched on term deposits climbed anew this week as the central bank reduced the amounts offered during Wednesday’s auction.
Demand for the short-term placements softened to P81.663 billion, sustaining a downtrend from the P100.813 billion in bids received a week ago but still higher than the adjusted P70-billion offering for the term deposit facility (TDF).
Appetite eased across the three tenors on Wednesday, accompanied by higher returns sought by banks.
The seven-day tenor saw the biggest decline in bids from market players, which came ahead of the long weekend for All Saints’ Day and All Souls’ Day.
The week-long deposits shored up P44.325 billion in offers, down from P53.642 billion last week although still higher than the P40 billion the Bangko Sentral ng Pilipinas (BSP) wanted to sell. In turn, rates sought by banks rose to average 4.7249% compared to 4.7196% a week ago.
The 14-day papers also saw softer demand worth P23.425 billion, above the P20 billion on the auction block but down from last week’s P28.506 billion. Players pushed rates higher to average 4.7631%, coming from a narrow range of 4.7-4.8% and up from 4.7553% previously.
Tenders for the 28-day instruments also eased this week, going down to P13.913 billion from P18.665 billion received a week ago. This matched a reduction in the offer amount to P10 billion from P20 billion during the Oct. 24 exercise.
As a result, the average yield climbed to 4.8798%, hovering close to the 5% ceiling rate set by the central bank. Banks asked for rates ranging from 4.8-4.938%, which led to an average that is higher than the 4.8493% fetched last week.
The TDF has been the central bank’s primary instrument to capture excess money supply and influence short-term rates in the financial system. Through the weekly auctions, the BSP can bring market and interbank closer to its desired range by setting the standard for short-term instruments using the margins that they pay to banks for these placements.
Higher TDF placements prod banks to also raise interest rate margins for their products, benchmarked on the 4-5% interest rate corridor of the central bank.
For next week, the central bank is hiking its total offer under the term deposit facility to P100 billion — P50 billion for the seven-day tenor, P30 billion for the 14-day instruments, and P20 billion for the 28-day deposits. — Melissa Luz T. Lopez

Robinsons Bank to raise P3.5B via LTNCDs

By Karl Angelo N. Vidal
Reporter
ROBINSONS BANK Corp. is set to raise P3.5 billion through issuance of long-term negotiable certificates of deposit (LTNCD) next year to fund the expected growth of its lending segment.
In a text message, Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said the Gokongwei-led bank is set to offer LTNCDs with an issue size of P3.5 billion.
The long-term notes will be offered in the first half of the year, which will constitute the second tranche of its P5-billion LTNCD program approved by the central bank.
Mr. Sarte added that the proceeds of the fundraising activity will be used “to fund the expected growth of our lending business.”
In the first half of the year, the commercial bank saw its net profit surge to P201.8 million, up 33.9% from the same period last year.
This was driven by the expansion of its loan book, which grew 43.5% to P59.7 billion year-on-year.
In July, the bank raised P1.78 billion from the first tranche of its long-term notes program, which will mature in 5.5 years and carry an interest rate of 4.875% to be paid quarterly.
Like regular time deposit offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
A number of banks have been raising additional capital ahead of tighter requirements from the central bank under the international Basel 3 standards, which will take effect next year.
Other lenders such as Philippine Bank of Communications, Metropolitan Bank & Trust Co. and Rizal Commercial Banking Corp. also offered LTNCDs recently to support their funding needs.
Robinsons Bank is licensed as a commercial lender and is the 19th biggest in the industry in asset terms as of end-June.
The lender is looking to scale up to be a universal bank and eventually go public.

China loan for Subic-Clark rail may not be ready by Xi visit

THE Department of Transportation (DoTr) said a commercial agreement with China for the Subic-Clark Railway may not be ready for signing when Chinese President Xi Jinping visits next month.
The DoTr said it has yet to receive a shortlist of turnkey contractors to which the Philippines will issue its request for proposals.
“As soon as we receive it, everything will be ready, including bid documents, and the joint bids and awards committee with the BCDA (Bases Conversion and Development Authority) has been organized,” DoTr Undersecretary for Railways Timothy John R. Batan said in a briefing on Wednesday.
He said the target is to have the agreement signed within the year or early next year with construction starting immediately after.
Mr. Batan noted that Mr. Xi is expected to sign in November the loan agreement for the Philippine National Railways (PNR) South Long-Haul Project, which will extend the train line to Bicol.
The loan scheduled for signing in November will fund the hiring of the PNR South Long Haul project management consultant, the services of which were initially procured this month, he added.
Mr. Batan told reporters after the briefing that the project management consultancy for PNR Bicol is worth P14 billion, with other components of the project expected to be finalized and awarded by the first quarter of 2019
He said the consultancy loan currently represents “roughly 70% to 80% of the contract price.”
On the Subic-Clark Railway project, Transportation Secretary Arthur P. Tugade said the Philippines needs to wait for the pool of nominees from the Chinese government, because it is a China-funded project.
“When a project is Chinese-funded, those who want to be involved must come from a list of nominees for accreditation from the Chinese government. We’re now at the stage where we are waiting for the nominated consultants for the feasibility study. When they finish the list of three nominees, we will do a bidding. The winner will do the feasibility study and come up with the data and details for the engagement,” he said.
Mr. Tugade also said he believes time is still sufficient to meet the 2021 timetable for completing the Subic-Clark Railway.
The Subic-Clark Railway Project is a P50.03-billion, 71.13-kilometer project approved by the National Economic and Development Authority (NEDA) Board in April. The PNR South Long Haul is a P151-billion, 581-kilometer railway that is expected to be partially open in 2022.
Both projects were presented for China loan financing when senior government officials visited that country in August. — Denise A. Valdez

Peso climbs to two-month high

THE PESO strengthened against the dollar to reach a two-month high as market players prepare for remittance coverage for the long weekend.
The peso ended the shortened trading week at P53.535 versus the greenback on Wednesday, slightly stronger than the P53.59 finish on Tuesday.
This was the peso’s best showing in nearly two months or since it ended at P53.46 on Sept. 3.
The peso traded stronger the whole day, opening the session at P53.55 a dollar. It climbed to as high as P53.50, while its intraday low stood at P53.58 versus the US currency.
Foreign exchange traders said the peso climbed even as it traded within a tight range.
“We saw agent banks bid around the P53.50 level, so it provided liquidity for the market ahead of the anticipated remittances for the long weekend,” the trader said in a phone interview.
“Market players were looking at the inflation figure to peak probably in the fourth quarter,” a second trader added.
The central bank earlier indicated that inflation has likely peaked in the third quarter of the year and is expected to begin moderating.
“Due to this, some players lightened up their long dollar positions,” the second trader noted.
The trader also suspected possible flows during Wednesday trading, which supported the peso.
“Probably, the flows were for the secondary offer of [San Miguel Corp.] That’s possible.” — K.A.N. Vidal

Bulacan airport must attract airlines without gov’t aid — Diokno

THE GOVERNMENT will take no action to ensure that airlines will operate out of the proposed Bulacan International Airport, signalling that the project needs to convince carriers to transfer to the new facility on its own commercial merits.
The government, through the Department of Transportation, is currently negotiating the concession contract with the project’s original proponent, San Miguel Corp. (SMC).
Budget Secretary Benjamin E. Diokno said that in keeping with policy, there will be no government guarantees in airport projects.
“Our condition is very clear that there will be no commitment on the part of the government to transfer flights from Clark or NAIA (Ninoy Aquino International Airport) to Bulacan. They have to compete to make the airport better, more attractive so that airline companies will voluntarily relocate to Bulacan,” Mr. Diokno said in a briefing on Wednesday.
The National Economic and Development Authority (NEDA) Board approved SMC’s unsolicited proposal for a P735-billion airport in Bulacan in April. However it is still subject for another round of evaluation for questions on its financial viability, after the concession terms have been formed.
The project involves the construction, operation, and maintenance of a 2,500-hectare airport in Bulakan, Bulacan, that includes an 8.4-kilometer airport toll road. The airport’s capacity is estimated at 100 million passengers a year.
Since the project is an unsolicited proposal, it needs to undergo a Swiss challenge under which other parties can make counter-offers which the original proponent has the right to match.
Mr. Diokno said that the government is currently fast-tracking the construction and rehabilitation of 28 airport projects in total.
“In line with the administration’s ambitious ‘Build, Build, Build’ program, 28 airport projects for construction,rehabilitation,upgrade are listed in the Department of Transportation’s (DOTr) priority agenda. Of the 28, three international airport projects — Lal-Lo, Puerto Princesa, and Mactan-Cebu — and four domestic airport projects — Tuguegarao, Calbayog, Ozamis, and Naga — have already been finished,” he said.
He noted that the Clark International Airport expansion project is expected to be completed in June 2020.
“These projects are projected to upgrade the country’s aviation industry, and will ensure greater regional accessibility. In the long run, this will propel sustained economic growth through the improved and more convenient movement of people and products, and generate quality jobs for Filipinos,” said Mr. Diokno.
He also said that 20 out of 42 airports nationwide have been rated to accommodate evening flights.
He said that the government aims to finish the construction, rehabilitation, and night-rating of airports before 2022.
“All the (airport) projects there will be finished within our term. We have a program of doing all within the President’s term,” Mr. Diokno said. — Elijah Joseph C. Tubayan

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