How PSEi member stocks performed — November 5, 2018
Here’s a quick glance at how PSEi stocks fared on Monday, November 5, 2018.
Philippine Stock Exchange’s most active stocks by value turnover — November 5, 2018
PHL to pursue amendments to open economy
THE GOVERNMENT will immediately pursue amendments to current laws to further open them up to foreign participation after “marginal improvements” were realized in the latest Foreign Investment Negative List (FINL).
Socioeconomic Planning Secretary Ernesto M. Pernia said that the 11th FINL — the Duterte administration’s first — contained only “marginal improvements” and “baby steps” in further increasing foreign ownership in Philippine industries.
“We want to be sufficiently competitive with our ASEAN (Association of Southeast Asian Nations) neighbors. For that to happen there have to be some legislation or changes in some laws, amendments to our laws so more areas and activities can be opened to foreign participation,” Mr. Pernia said in a briefing on Monday.
“I wanted to encourage our legislators. The President also wants to encourage our legislators to liberalize some more so we don’t have to wait for the next round of revisions to this 11th FINL. If there is political will to change our investment milieu to make it more attractive… The word is always as soon as possible,” he added.
Mr. Pernia said that the government will no longer wait for the required two-year period before the next FINL to ease more foreign ownership restrictions, and has put in motion moves to amend special laws.
He cited pending bills in Congress such as the House-approved Bill No. 5828, or amendments to the Public Service Act, seeking to redefine public utilities and take out telecommunications from the industries restricted to foreign ownership; and several bills in both chambers of Congress lowering the paid-up capital threshold for the retail trade to $200,000 from the current $2.5 million under Republic Act No. 8762, or the Retail Trade Liberalization Act of 2000.
“That is the desire of the economic managers and that is what’s needed,” according to Mr. Pernia, a Cabinet-level official who also heads the National Economic and Development Authority (NEDA).
President Rodrigo R. Duterte signed Executive Order No. 65 on Oct. 29 promulgating the 11th FINL, about three and a half years after the previous negative list — which was largely unchanged from the preceding one.
Mr. Duterte’s FINL now allows full foreign ownership in Internet businesses, a category that has been excluded from the category of mass media, which otherwise remains completely barred to foreign ownership and participation; teaching at the higher education levels in non-professional subjects; 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; and wellness centers.
It also increased the foreign ownership cap to 40% on 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), from 25% previously; and private radio communication networks, from 20% previously.
Foreign business chambers have welcomed the more liberal FINL, but said that more needs to be done.
Mr. Pernia said that the FINL’s effects on foreign direct investment may start to be felt next year.
“We expect the total for the year to be greater than that of last year and this is even without the liberalization yet. It will take time for the easing of restrictions to take hold and be absorbed by the foreign investor community,” he said.
“I think next year we should see some fruition (in terms of) foreign investor interest in coming here to invest,” added Mr. Pernia.
FDI hit an all-time high of $10 billion in 2017. In the seven months to July, FDI totaled $6.67 billion, up 52.1% from a year earlier. — Elijah Joseph C. Tubayan
DoF disputes slip in WB rankings by citing credit-driven growth
RISING CREDIT was behind a recent increase in investment, the Department of Finance (DoF) said, by way of disputing the Philippines’ decline in ranking on the World Bank’s ease of doing business list due to weak scores in access to credit.
“Investment growth was made possible by the rapid growth in credit provided by the financial sector,” the DoF said in an economic bulletin on Monday.
Domestic lending grew 15% year-on-year to P11.35 billion at the end of August, equivalent to 64.8% of gross domestic product GDP for the eight months to August.
The DoF noted that credit growth averaged 13.7% over the past six years, and accounted for 56.1% of the economy.
The Finance and Trade departments have challenged the results of the World Bank Doing Business 2019 report, saying it was “grossly inaccurate and understated” and claimed that access to credit as a driver of growth was not properly documented, leading to the decline in the Philippines’ overall ranking to 124th, 11 notches down from the 2018 report.
Officials said the World Bank did not access data from the Philippines’ largest credit information database, thereby hurting the country’s score.
“Despite the rapid growth of credit, the World Bank Ease of Doing Business Survey 2019 wrongly gave the Philippines lower ratings in its Getting Credit Indicator compared to its 2018 survey. The reason is the failure of the World Bank’s survey team to gather data from three credit rating bureaus which would have raised the population coverage of credit information of the country to a level above the 5% benchmark. This led to the Philippines dropping in the rankings,” according to the economic bulletin.
The World Bank has yet to respond to queries at deadline time.
“Compared with neighboring Asian countries, the Philippines has among the highest real growth in credit provided by the financial sector,” the DoF said.
It said the Philippines posted the second-highest rate of credit growth of 11.4% in 2017, behind the 12.6% of Singapore — which was ranked the world’s second most competitive economy.
Vietnam posted 8.1% credit growth, while China came in at 6.9%.
From 2012 to 2017, the Philippines’ average credit growth was the fourth-highest at 20.2%, compared with China at 30.7% Vietnam at 23.3% and Singapore at 22.5%.
“Credit growth is sustainable; it is supported by a similarly rapid growth in bank deposits,” the DoF said.
Bank deposits rose 13% to P12.45 billion in the eight months to August. It averaged 12.9% annually since 2011, and accounted for 75.3% of GDP as of August 2018, up from 55.4% in 2011.
Despite rapid credit growth, the loan-deposit ratio remained “manageable,” at 75.3% according to the DoF. — Elijah Joseph C. Tubayan
Gov’t may need to cut spending to tame inflation — ANZ
THE government should consider reducing its planned spending as another route to temper inflation, ANZ Research said, as softer domestic demand could ease price pressures.
In a special report published yesterday, ANZ Research said the government can pursue a different approach to reduce consumer price growth apart from addressing supply concerns for food and fuel.
“A tighter fiscal stance via reduced spending would go a long way in durably lowering inflation and resolving other imbalances, including a wider current account deficit and sustained high credit growth,” ANZ chief economist Sanjay Mathur said in the report.
Inflation has averaged 5% in the nine months to September, well above the original 2-4% target range. It touched a nine-year peak of 6.7% in September, which ANZ said was roughly 65% driven by food prices.
Mr. Mathur said the government’s decision to suspend the second tranche of fuel excise taxes for 2019 plus the proposed rice tariffication law – which will remove import quotas to bring in cheap rice from overseas – are expected to temper inflation in 2019.
“However, whether these developments will be sufficient to durably lower inflation is unclear at this juncture,” ANZ added.
“The role of domestic demand is evident from the broadening out of inflation from goods to services in recent months, presumably via higher wages.”
A “more neutral” fiscal stance should bode well for the country, with ANZ noting that a reduction in government expenditure worth 0.2% of GDP is “unlikely to have a significant impact” on overall growth prospects.
“In our view, the expansionary fiscal policy is diminishing the impact of monetary tightening, which in magnitude mirrors that in Indonesia,” ANZ said. “Therefore the risk is that sustained fiscal spending eventually over-burdens monetary policy, forcing a more aggressive response than needed.”
The International Monetary Fund concurs, saying in September that the Philippines should target a more modest budget deficit by shaving off allocations for “non-priority” spending and in the process reduce risks of overheating.
The IMF said the Philippines should keep the fiscal deficit at 2.4% of gross domestic product (GDP), unchanged from the 2017 level and lower than the government’s 3% ceiling for 2018. The budget deficit was 2.3% of GDP during the first half.
The government has been pushing for a wider budget deficit to accommodate increased spending on infrastructure, with big-ticket items under the “Build, Build, Build” program in mind.
Budget Secretary Benjamin E. Diokno said the programmed deficit ceiling remains “reasonable,” noting that cutting spending targets mid-year could even do more harm as agencies may become reluctant to disburse funds.
Apart from trimming state spending, ANZ also flagged the need to plug the current account deficit and temper credit growth, which comes at a time of heavy importations as well as rising interest rates. — Melissa Luz T. Lopez
Regulated barter scheme wins support from Sabah gov’t
REGULATED barter between southwestern Mindanao and neighboring countries is expected to get rolling by next year with the state government of Sabah in Malaysia ready to open its borders to the trade by January, according to an official of the Mindanao Development Authority (MinDA).
Assistant Secretary Romeo M. Montenegro, MinDA deputy executive director, said Sabah’s chief minister recently announced that the Malaysian state is ready to resume commercial activity with minimal restrictions on commodities.
“If there are some restrictions on certain items, by next year we are looking at a better flow of commodities via barter trade with that announcement,” Mr. Montenegro told the media.
Barter has long been practiced between Mindanao’s Zamboanga-Basilan-Sulu-Tawi-Tawi (ZAMBASULTA) area and the neighboring territories of Malaysia and Indonesia.
Mr. Montenegro said a memorandum of understanding (MoU) on Non-Convention Sized Shipping (NCSS) is also expected to be signed to regulate vessels carrying goods for barter.
“These are the wooden vessels that are being used now. At this stage, they are not regulated and registered, but when the MoU of NCSS is signed, then they will be considered a standard mode of transportation allowed by four of 10 countries of ASEAN (the Association of Southeast Asian Nations),” he said
“Congruent to that is the need for these vessels to be registered,” he added.
On the side of the Philippines, the Department of Trade and Industry, with support from MinDA, is now drafting the implementing guidelines for Executive Order (EO) No. 64-2018, signed on Oct. 29 by President Rodrigo R. Duterte.
EO 64 directs the revival and promotion of barter trade in Mindanao along with the creation of the Mindanao Barter Council.
“These are considerable allowances to the barter trade arrangement… to allow the people of Tawi-Tawi (for example) to be able to source commodities (in Sandakan, Sabah) because if they are forced to source out commodities from mainland Zamboanga, they are more expensive,” he said.
Meanwhile, in Zamboanga City, the business chamber has expressed support for the revival of barter trade.
“We are supporting the revival of the barter trading and we are one of those pushing for its revival,” Pedro Rufo N. Soliven, president of the Zamboanga Chamber of Commerce and Industry Foundation Inc. (ZCCFI) said.
He noted that barter is a unique commercial activity that benefits the ZAMBASULTA region.
“It is an ancient commercial practice in the southern Philippines which had its peak during the 70s up to the mid-80s,” Mr. Soliven said. — Maya M. Padillo and Albert F. Arcilla
DoH backs higher tobacco tax to fund universal health care
THE Department of Health (DoH) on Monday said it is seeking higher tobacco taxes to increase funding of the Universal Health Care (UHC) bill, which will cost around P257 billion in the first year of implementation.
“Taking into account the existing budget, the funding gap is estimated to be around P164.04 billion,” Health Secretary Francisco T. Duque III said in a briefing on Monday.
“Additional revenue from the proposed increase in tobacco taxes are an important means to lessen or address precisely the funding gaps.”
The DoH said it backs a proposal to increase the excise tax on tobacco products to P90 per pack from the current P32.50.
He said increased taxes can reduce smoking prevalence to 15.7% from 21.6% of the population and ultimately reduce smoking-related illnesses.
“Estimates show that if tobacco taxes are pegged at P90, around 1 million tobacco-attributable deaths could be averted,” Mr. Duque said.
Mr. Duque cited a recent Pulse Asia survey which found that 67% of the population approved of an increase in the tax on cigarettes and that 64% will support politicians in favor of raising the tax.
The same survey also found that 40% of the respondents who are current smokers support higher taxes.
The UHC bill was approved on third reading in both chambers of Congress and is up before the Bicameral Conference Committee.
World Health Organization representative to the Philippines, Dr. Gundo Weiler, said the government’s Universal Health Care legislation was a step in the right direction.
“It’s really great,” Mr. Weiler said, adding: “There will be economic returns for the population. We know that for every dollar a country invests into UHC, there will be a 140% return to the economy (in the form of) savings.” — Charmaine A. Tadalan
Bill proposes Boracay tax relief, grants to offset continued business restrictions
A BILL granting tax relief to businesses and monthly cash assistance to residents affected by continuing restrictions on business in Boracay island has been filed at the House of Representatives.
House Bill 8537, which if passed will be called the Boracay Cleanup Shutdown Assistance and Ecological Sustainability Act, also proposed to establish a fund to support a master plan for the Boracay-Malay-Caticlan area. Malay is the municipality with jurisdiction over Boracay while Caticlan is the district of Malay hosting the main jetty port to the resort island from Panay.
1-CARE Rep. Carlos Roman L. Uybarreta filed the bill in response to the tourist arrival restrictions imposed on the island since it reopened last Oct. 26.
“With all these limitations, the financial health of Boracay businesses, employees, and residents will certainly be troubled this year and in 2019,” Mr. Uybarreta said in a statement, Monday.
According to the Department of Environment and Natural Resources (DENR) and the Department of Tourism (DoT), Boracay island has been assigned carrying capacity of 19,200 people per day. Net of permanent residents, this amounts to 6,405 visitor arrivals. The Tourism department, ahead of the island’s reopening on Oct. 26 after a six-month cleanup, said only 157 establishments were accredited to operate.
The bill proposed to allow an extraordinary operating loss deduction, which is equivalent to 50% of the operating loss recorded in 2018.
The one-time deduction will cover businesses operating on the island as well as in Malay itself.
Mr. Uybarreta also proposed that the Department of Social Welfare and Development (DSWD) extend a P700 monthly cash grant to every household member under the Pantawid Pamilyang Pilipino Program (4P)and P500 to non-4P members of households whose monthly income is less than P20,000.
He proposed a Boracay Sustainability Fee of P20 charged to every airplane or ship passenger traveling to and from the island.
The Boracay Ecological Sustainability Fund will be managed by a council, led by the Secretaries of Environment and Natural Resources and Tourism, local executives and representatives of the business and civil society sectors. — Charmaine A. Tadalan
Reminders to top withholding agents
Taxpayers have checked the most talked-about list in the Philippine taxation scene today, and have noted whether they have been included, retained, or delisted therefrom. Taxpayers who were recently included in the list may have marked their calendars too, in order not to miss the commencement of their new obligation. Needless to say, the list being referred to is the list of top withholding agents (TWAs) who are obliged to withhold on their purchases of goods and services beginning November 1, 2018. For the new ones on the list, be forewarned that the resolve to withhold tax on purchases of goods and services is often easier said than done. Being aware of the responsibility is just the tip of the iceberg. More challenges are attached to your responsibility to withhold.
Any income payment whose nature is not specifically identified in Section 2.57.2 of Revenue Regulations No. 2-98, as amended, shall be classified either as a purchase of a good or service. Services include, among others, telephone charges (net of overseas communications tax), insurance premiums, service charges, and other charges considered as income of the service provider. Goods pertain to tangible personal property, such as office and pantry supplies, office equipment, and furniture and fixtures. Note that TWAs must withhold the tax on their purchases of goods and services from regular suppliers. A regular supplier of goods and services is one with whom a taxpayer has had at least six transactions, either in the previous or current year, or constituting a single purchase amounting to at least P10,000.
From a brief purchase of sticky notes and pens to a food catering service contract spanning two years, the core issue of the regular supplier test is the monitoring mechanism that must be adopted, especially by companies with voluminous and diverse transactions. As a conservative approach, some companies withhold tax from their payments to their suppliers of goods and services without checking the frequency of the purchases from the latter. In addition, the archiving of documents to prove that the purchases are casual ones, i.e., not from regular suppliers or a single purchase amounting to less than P10,000, has to be tightened. It can be gleaned from various Court of Tax Appeals (CTA) cases that the court meticulously checks the supporting documents of a taxpayer who claims that its purchases are casual ones which are, thus, not subject to 1% or 2% withholding tax. The court does not miss any detail, from the description of the purchase on the official receipt or lack thereof, to the date of the transaction. In a 2005 CTA case, among the pieces of evidence required to be presented in court is the Semestral List of Regular Suppliers (SRS). A purchase from a supplier not indicated therein is deemed as a casual purchase of a good or service. The SRS is required to be submitted by TWAs every July 31 of the current year and Jan. 31 of the following year to the Revenue District Office having jurisdiction over the TWA’s principal place of business.
The withholding of taxes on employee reimbursements is, likewise, left unresolved to this day. How do you withhold the taxes from company expenses paid by employees through cash, such as lodging, meals, transportation, representation, and other items frequently purchased that are of relatively small value and necessary for the business? When it comes to these types of purchases, the obligation to withhold is often administratively difficult to comply with. Some companies have issued corporate credit cards to their employees to eliminate the need to withhold taxes on expenses during business travel. We all know, however, that not all purchases can be paid for with credit cards. As a result, some companies end up shouldering the withholding taxes on these purchases. It is high time that the Bureau of Internal Revenue issues guidelines on easing the process of withholding the taxes on reimbursements. After all, one of the characteristics of a sound tax system is administrative feasibility.
Confusion lies as well on the withholding of tax on payments to government-owned and controlled corporations (GOCCs), agencies, or instrumentalities. Some taxpayers mistakenly believe that payments to government corporations are exempt from withholding tax, just because they are owned by the government. Payments to GOCCs, however, are subject to withholding tax, except for payments to the Government Service Insurance System, the Social Security System, the Philippine Health Insurance Corp., and local water districts.
Basically, all expenses of a TWA are subject to withholding tax, except those paid through company-issued credit cards and payments to entities such as general professional partnerships, cooperatives, business/civic leagues, and entities that are exempt from income tax or under income tax holiday. Pursuant to Revenue Memorandum Circular No. 8-2014, withholding agents shall require entities claiming exemption to provide a copy of a valid, current, and subsisting tax exemption or ruling which must explicitly recognize the grant of tax exemption, as well as the corresponding exemption from withholding tax.
The withholding of tax is not as linear as it sounds because, in some cases, the willingness to withhold tax and the means to do so are in utter disconnect. Familiarizing yourself with the twists and turns of withholding tax and being armed with the relevant regulations and industry practices would go a long way. Congratulations for being included in the list of top withholding agents. You, together with the ordinary withholding agents, are instruments for the prompt remittance of taxes to the government. With your help, incremental government revenue from monthly withholding tax remittances are to be expected.
Taxes to the nation are like fuel to cars. Fuel is only one of the things needed for a car to run; a good driver is still indispensable. No matter how full the tank is, if the driver is not good, the passengers will not reach their destination. Similarly, no matter how many taxes we remit, if the government is not true to its promises, our diligence in remitting taxes would be for naught. So while you continue to meet your obligation as withholding agents, join me in praying that every peso remitted contributes to the improvement of our beloved nation. There are bumps and potholes on the road ahead as a TWA, but we can hope that the bumpy ride is worth it, and hope further that this is not blind optimism.
Ma. Anneth Soledad Mirano is a senior of the Tax Advisory and Compliance Division of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.
PAO mulls upgrading Dengvaxia cases to murder
By Vann Marlo M. Villegas
THE PUBLIC Attorney’s Office (PAO) is considering upgrading its Dengvaxia-related complaints from reckless imprudence resulting in homicide to murder, PAO Chief Persida V. Rueda-Acosta said on Monday.
“Pinag-aaralan po ng panel ng PAO, ng lawyers, na kung alam nila na nakamamatay ang Dengvaxia, aba’y hindi lang kapabayaan lang ito, ito po ay isang murder (PAO lawyers are looking into [the premise that] if they [those behind the inoculation program] know Dengvaxia can cause death, this is not just negligence, this is murder),” Ms. Acosta told reporters.
“Kaya pinag-aaralan po kung magmu-move po ang PAO special panel na mag-motion na mai-upgrade ang kaso from reckless imprudence resulting (in) multiple homicide sa murder po (That’s why this is being studied, if the PAO special panel will file a motion to upgrade the case from reckless imprudence resulting in multiple homicide to murder),” Ms. Acosta added.
She also noted that the vaccine manufacturer Sanofi Pasteur Inc. issued a declaration in 2015 stating the risks of the anti-dengue vaccine.
Former health secretary Janette P. Loreto-Garin and 38 others are facing a total of 27 complaints for reckless deaths attributed to the Dengvaxia inoculation.
Also charged are government officials involved in the implementation of the mass vaccination program and Sanofi Pasteur as well as Dengvaxia distributor Zuellig Pharma Corporation.
Health Secretary Francisco T. Duque III is also among those charged in two of the 10 complaints in the third batch which included the death of Senior Police Officer 2 Vicente Arugay, Jr. The cases against Mr. Duque include obstruction of justice.
“May isang linggo na ibinigay ako sa panel of lawyers, sa special lawyers natin para aralin mabuti kung sinu-sino sa tatlumpu’t walo, sa tatlumpu’t siyam ang dapat makasuhan ng murder dito (I have given the panel of lawyers, special lawyers, one week to study who among…the 39 accused should be charged with murder),” Ms. Acosta said.
The first batch of nine complaints is up for resolution at the Department of Justice (DoJ). Ms. Acosta said: “Magmo-motion ka lang for upgrading. Nando’n naman ‘yung mga dokumento na e. Di bahala prosecutors kung i-a-upgrade nila (You will just file a motion for upgrading. The documents are already there. It is up to the [DoJ] prosecutors if they will upgrade it).”
Ms. Garin has submitted her counter-affidavit on the second batch of complaints, claiming “there is absolutely no probable cause” to hold them for trial for reckless imprudence resulting and violation of the Anti-Torture Act.
Ms. Garin had said there were already plans for the implementation of the immunization program before she became health secretary, adding that the procurement of Dengvaxia “underwent a thorough process.”
“By no stretch of imagination can the children of complainants whose deaths are allegedly caused by the Dengue Vaccine be considered as persons placed under investigation or held in custody in order for the Anti-Torture Act to apply,” Ms. Garin said in her counter-affidavit.
She added, “The instant complaint must therefore be dismissed for lack of probable cause, for insufficiency of evidence to support the allegations, and for lack of merit.”
2019 polls to determine federalism push: analyst
THE 2019 midterm elections will determine the fate of President Rodrigo R. Duterte’s federalism agenda, an analyst sought for comment said.
Malacañang also on Monday issued Memorandum Circular (M.C.) No. 52 creating the Inter-Agency Task Force on Federalism and Constitutional Reform, which is directed to “liaise” with Congress to “address the roadblocks to constitutional reform.”
The task force will be composed of the Interior Secretary as Chairperson and the Justice Secretary as Vice-Chairperson. Members of the task force are the heads of the Office of the Cabinet Secretary, Presidential Management Staff, Presidential Communications Operations Office, Office of the Presidential Spokesperson, Presidential Legislative Liaison Office, Office of the Political Adviser, Commission on Higher Education, Development Academy of the Philippines, and University of the Philippines Law Center.
Sought for comment, social science assistant professor Marlon B. Lopez of the Mindanao State University-Tawi-Tawi College of Technology and Oceanography said the 2019 midterm elections will serve as “a test for the Duterte administration whether it would secure a supermajority” in both chambers of Congress, which would also “affect the administration’s push for the federalization of the Philippines.”
“It is a campaign promise, so the administration will really deliver federalism,” Mr. Lopez said, adding that the legacy of the Duterte administration is “founded on, number one, the formation of the Bangsamoro region and, number two, the federal constitution.”
Of the proposed Bangsamoro region, “It’s like a step towards federalization, because I can see that the formation of the Bangsamoro is an experimental stage for the country’s federalization,” Mr. Lopez said. — Arjay L. Balinbin
Nograles takes oath as new Cabinet Secretary
FORMER Davao City 1st District Rep. Karlo Alexei B. Nograles took his oath yesterday as the new Cabinet Secretary, replacing Leoncio B. Evasco, Jr. who is running for Bohol governor in the 2019 polls.
In a statement, Mr. Nograles said: “I thank President Duterte for welcoming me to his Cabinet. As a fellow Mindanaoan and kapwa probinsyano, I hope to contribute to government efforts to bring development to the regions through different programs that place an emphasis on providing more economic opportunities outside Metro Manila.”
Speaker Gloria Macapagal-Arroyo said in her statement, “I am sure he will do very well in his new position, and that he will be a valuable member of the President’s team. I wish him all the best!” — A.L. Balinbin and C.A. Tadalan
PNP sticks to 10% rule on hiring policewomen
By Vince Angelo C. Ferreras
THE Philippine National Police (PNP) will stick to the 10% rule on the number of women officers in the total police force, despite the call of a lawmaker to double that number.
“Actually, yang 10% sobra pa. Kaya we want to limit, hindi naman dinis-discriminate natin yung police women. But then marami na rin kasi kaming policewomen and they are doing administrative work, sila ang nasa opisina, most of them. Pero marami rin tayong nagagamit sa labas (Actually, that 10% rule is more than enough. That’s why we want to limit, not because we are discriminating our policewomen. But we have many of them now and they are doing administrative work. However, there are also many of them deployed in the field),” PNP Chief, Director-General Oscar D. Albayalde, said at a press briefing on Monday, Nov. 5.
According to Republic Act 8851, the PNP shall prioritize the recruitment and training of women who shall serve in the women’s desk. Pursuant to this requirement, the police shall reserve 10% of its actual recruitment, training, and education quota for women.
On Sunday, Surigao del Sur Rep. Johnny Pimentel called for an increase to 20% in the hiring of policewomen. “In other jurisdictions with strong child protection systems, whenever a young girl is taken in for any reason, male officers cannot just put her in a police car. They have to call…a female officer to accompany the child,” he said.
The lawmaker added, “There’s no reason why the PNP cannot do this now. We already have Women and Children Protection Desks headed by female officers in all police stations.”
The PNP Chief, for his part, said, “Marami kasing restrictions sa babae. Kapag nag-asawa siya o nabuntis ‘yan. Lalo ngayon may maternity leave. So imagine, hindi sila magagamit (in) that span of time. Pero we follow the 10% rule, minsan pa nga umaabot tayo ng 12% eh (There are lots of restrictions [when it comes to hiring] women. When they get married or are on the family way. Especially now that there is [an expanded] maternity leave. So imagine, they cannot be tapped for assistance in that span of time. But we follow the 10% rule and sometimes we even reach 12%), ” said Mr. Albayalde.
Jean Enriquez, executive director of the Coalition Against Trafficking in Women, said the current rule is against the provision of the Magna Carta for Women which states there shall be an incremental increase in the recruitment and training of women in the police force, legal services, and social work services availed of by women who are victims of gender-related offenses.
“The objective of that is that women, who were victims of violence and other related offenses, would be able to avail of gender responsive services. Even the 20% is far from the target since the enactment of (the) law,” Ms. Enriquez said in a phone interview with BusinessWorld.
“Ang importante kasi na duty bearers ang officials and rights of women are protected by the state (It is important that our officials are duty bearers and the rights of women are protected by the state),” she added. “The maternity benefits for employees are a duty of the government. If the law requires that, then the government should be the one to first act.”
Mr. Albayalde assured the PNP does not tolerate sexual abuse by its officers towards suspects. “We will never tolerate these things to happen. We want to assure the public on that and we will not show mercy on these kind of acts sa aming mga tauhan (on our people),” he said.
“Pero ito (But this) does not reflect, please lang, this single act (of rape by policemen) does not reflect the general behavior and discipline that we have in the Philippine National Police.”