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UK briefing touts PHL growth, admits headwinds

ECONOMIC managers pitched British investors in London by citing the Philippines’ strong economic outlook and pace of reforms, despite recent difficulties with inflation.
“Our growth performance for the first semester of this year was below expectations, hampered by elevated inflation and supply issues. Like the rest of the economies in the world, the Philippines is not exempted from challenges,” Finance Secretary Carlos G. Dominguez III said in a speech before about 300 British executives on Tuesday during the London leg of the Philippine Economic Briefing, a copy of which was distributed to reporters.
“But what differentiates our economy from many is the decisiveness, the extent, and the pace by which we are implementing policy and infrastructure reforms. We remain one of the best-performing economies in the region and our outlook is strong,” he added.
He also noted the government’s “decisiveness” to push medium to long-term reforms such as the Tax Reform for Acceleration and Inclusion (TRAIN) law that lowered personal income taxes while raising and adding levies on fuel, tobacco, automobiles, minerals, and sugary drinks, among others.
He also noted complementary anti-red tape measures such as the Ease of Doing Business act, which requires government offices to shorten their processing times, as well as the national ID system. He also noted the “continued liberalization of foreign ownership in business,” as embodied in the upcoming Foreign Investments Negative List being reviewed by the President, which is expected to be more welcoming to foreign ownership.
Gross domestic product (GDP) grew 6% in the second quarter from 6.6% a year ago and in the first quarter this year, closing at a 6.3% growth in the first semester versus 6.6% in the comparable period in 2017 — below the government’s 7-8% target range.
“At the moment, the Philippine economy is experiencing elevated inflation rates. We have determined that the sources of inflationary pressure have been the spike in food prices, sharp rise in international oil prices and an adjustment in the peso’s exchange rate,” he added.
Inflation in August accelerated to 6.4% from 5.7% a month earlier and 2.6% a year earlier. In the eight months to August inflation averaged 4.8%, well above the central bank’s 2-4% target range.
This week, the peso also depreciated to a fresh 12-year low ahead of expected rate hikes from the Federal Reserve and the Bangko Sentral ng Pilipinas.
Mr. Dominguez also said that the government remains “on course” towards reaching its medium-term goals, which include reducing poverty incidence to 14% by 2022, from 21.6% in 2015. It also aims to ramp up infrastructure spending to 7.4% of GDP over the next four years from 5.6% last year.
“Our growth target is consistent with projections of multilateral institutions and global think tanks. With higher public investment, we are confident our growth target is achievable,” Budget Secretary Benjamin E. Diokno said at the same event.
“Government spending will remain sustainable, and supportive of economic growth and development,” he added, noting that the country’s “sound, prudent and sustainable economic blueprint” will ensure that UK firms invest in a “bright spot.”
He said the debt ratio to gross domestic product was 36.6% in 2017, well below the 60% threshold deemed “fiscally sound.”
Mr. Dominguez also touted the government’s second package of tax reforms reducing corporate income tax rates and streamlining fiscal incentives
“The rationalization of our fiscal incentives, in turn, will create a level playing field for our enterprises and attract new players to compete. The accretion of so many incentive schemes through the uncoordinated action of legislators and economic zones in the past has produced something near chaos,” he said.
“While other countries give incentives for a limited period, the tax incentives handed out now by law in the Philippines are in lieu of all taxes, both national and local, and apply forever, even if the firm no longer produces a net positive benefit for the country,” he said, noting some $5.6 billion worth of incentives were awarded, with some $800 million possibly lost due to transfer pricing abuse.”
The House of Representatives approved on final reading House Bill 8083 on Sept. 10, which seeks to cut the corporate income tax rate gradually from 30% currently to 20% by 2029, via a two-percentage-point reductions every other year starting 2021.
Fiscal incentives will be limited to industries identified in the Strategic Investments Priority Plan (SIPP) that meet performance standards. Redundant incentives will be repealed, but the government will retain and harmonize some perks in a single menu, including: a three-year income tax holiday, after which applies a special income tax rate of 18% starting 2021, and possibly 13% by 2029; deductions for labor, research and development, training, and infrastructure development costs; and some customs duties exemptions.
Also at the briefing were Socioeconomic Planning Secretary Ernesto M. Pernia, Trade Secretary Ramon M. Lopez, Transportation Secretary Arthur P. Tugade, Public Works and Highways Secretary Mark A. Villar, Tourism Secretary Bernadette Romulo-Puyat, Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo, and Bases Conversion and Development Authority President and Chief Executive Officer Vivencio B. Dizon. — Elijah Joseph C. Tubayan

House suspends mining tax hearing pending further talks

THE House Committee on Ways and Means on Wednesday deferred consideration of the proposed mining tax reform as the positions of the Department of Finance (DoF) and the mining industry are currently irreconcilable.
The committee was due to consider approval of the unnumbered substitute bill that will increase the current effective tax rate imposed on mining firms to 21% from 11%, much higher than the industry proposal for a rate of 13%.
“It seems there is a deadlock now. The mining industry is submitting a proposal which is different from the stand of the DoF,” Rep. Johnny Ty Pimentel of the second district of Surigao del Sur, a committee member, said during the deliberations.
The bill, “An Act Establishing the Fiscal Regime For Mining Industry,” in its latest version, proposes a 5% royalty for all mining operations, regardless of the mineral product.
The 5% royalty is currently levied only on mining operations within Mineral Reserves; but, as proposed, will be applied outside Mineral Reserves, in increments from 3 to 5% within five years of enactment.
Chamber of Mines of the Philippines (CoMP) Chairman Gerard H. Brimo said the 5% royalty on top of all other taxes, such as the 4% excise tax, average 1.7% local business tax, among others is “very punishing.”
“That brings a total imposition on gross revenues, payable whether a mining company makes money or not, to close to 12%, and I can categorically say without any doubt that is the highest in the world,” Mr. Brimo said.
The CoMP proposed to instead impose varying rates depending on the type of mineral product and to distinguish between those operating in and out of mineral reserves.
The DoF said it has reservations about such a scheme, but signalled that it is willing to accept an effective rate close to its own number.
“What we’re looking at is an effective tax rate which is approximate to what we have proposed. If it’s not as high, something very close to that,” Finance Assistant Secretary Teresa S. Habitan told BusinessWorld.
Since the two sides are not “close” she asked the committee for time to find common ground in the form of a taxation rate that “more or less” represents a “common unhappiness level.”
Given the distance between both sides’ positions, Mr. Pimentel recommended that the panel hold another meeting to accordingly find a compromise between the government and the mining industry.
The committee had earlier set an ultimatum for the DoF to submit a new draft with inputs from the mining sector and threatened to proceed with its own draft. — Charmaine A. Tadalan

Gov’t support seen needed to help education system adjust to AI, IBM executive says

By Denise A. Valdez
DEALING with the emergence of artificial intelligence (AI) and the threat of job losses should be a greater concern for the government in addressing key reforms to the education system, an executive from IBM Philippines, Inc. said.
In a P&A Grant Thornton forum on AI impact on businesses in Makati City, IBM Philippines Chief Technology Officer Lope A. Doromal, Jr. said students need to be trained as early as possible to adapt to the evolving industry which itself is adjusting to AI.
“Obviously there’s a lot of mathematics and science involved in AI, and I think there is some way to go in terms of getting our students some of the skills needed to help them in their AI journey,” he said.
Mr. Doromal said he believes any job that focuses on memorization is in danger of becoming obsolete.
“The problem with that statement is our education system is still geared toward memorizing things. We need to teach our students to become creative. It’s easy to research things nowadays. You don’t need to memorize many things as long as you know how to find those pieces of information. What’s important is critical thinking, putting these pieces of information together,” he added.
In an interview after the forum, Mr. Doromal said the growing penetration of AI in various companies and industries has started to appear threatening to some business leaders and workers. He said their impression was of “man versus machine” because of the tendency to represent the phenomenon as a process of replacing human resources.
He said this should not be the case, and that AI should be seen as an aid in improving the work processes across industries and a driver for the enhancement of human talent.
“As we automate things, we need to start looking for people to move up the value chain and make them more productive in other parts of the organization. It doesn’t mean that people will lose their jobs, it just means that their jobs will transform into something more productive,” he said.
He said since an AI-dominated work environment is “probably inevitable,” the government must begin looking at how it educates people to allow them to move up the value chain.
“The threat that AI poses is that it can potentially displace some of the jobs that are sort of repetitive, that don’t really require creativity, critical thinking…. To anticipate that, the government also needs to start looking at how do we now train our people so that they can move up the value chain,” he said.
Mr. Doromal said computers, mobile phones and the Internet were once seen as threats as well, but simply displaced technologies like typewriters and landline telephones and were eventually perceived as more helpful than harmful.
“I think the same thing will also happen with AI. It will make us more productive. It will allow us to do our jobs faster, better. And hopefully it will give us more time to enjoy other things rather than just working,” he said.

NIA completes irrigation project in Davao region

THE National Irrigation (NIA) Authority said it inaugurated the newly-rehabilitated and Japan-funded P104.294 million Mal River Irrigation System (Mal RIS) in Davao del Sur.
“Mal RIS, whose water sources come from Mal River in Matanao, is expected to provide timely and reliable irrigation service to 2,635 hectares of agricultural land in the municipalities of Matanao, Kiblawan, and Hagonoy in Davao del Sur, benefiting 3,720 farmers and their families,” NIA said in a statement.
NIA Deputy Administrator Romeo G. Gan said: “The rehabilitation of Mal RIS will translate into efficient operation and maintenance, and eventually optimization of the benefits derived from this irrigation system.”
The NIA also turned over Irrigators Association (IA) Buildings and Support Facilities in the municipalities of Matanao and Kiblawan, respectively.
“The new building which will house the IA Office will serve as a conducive workplace where meetings can be held, records and documents can be secured, and a place where different agencies can coordinate with the IA. The post-harvest facilities will ensure quality of rice produced, thus, gaining a higher price for the commodity and eventually increasing the farmers’ income,” Mr. Gan said.
Meanwhile, the NIA said that it is hoping to venture beyond its core mission to develop hydroelectric and floating solar power projects and reposition large dams as agri-tourism destinations. — Reicelene Joy N. Ignacio

Senator warns quarrying ban may make inflation worse

THE suspension of quarrying operations in eight regions may worsen inflation, Senator Francis G. Escudero warned on Wednesday.
In a statement, Mr. Escudero said the Department of Environment and Natural Resources’ (DENR) policy may increase the prices of construction materials, such as cement and aggregates, which could hinder the government’s Build, Build, Build infrastructure program.
He warned of possible shortages in construction materials as well.
“Amid the government’s efforts to control inflation, here is a policy decision from one agency that will erase whatever few gains they have made at reining it in,” he said.
“The basic problem is this will have inflationary tendencies on cement and aggregates, and will impinge upon the administration’s ‘Build, Build, Build’ project, not to mention that [the ban is] sweeping and clearly arbitrary,” he added.
He said the DENR should have conducted instead the safety and geohazard evaluation first given that the mining and quarrying firms hold operating permits issued by the department.
The DENR on Sept. 21 released a memorandum suspending quarrying operations in the Ilocos region, Cagayan Valley, Central Luzon, Calabarzon, Bicol region, Central Visayas, Northern Mindanao, Davao region, and Caraga.
Environment Secretary Roy A. Cimatu has said the suspension will be enforced until the review and assessment of quarry operations are completed.
Mr. Escudero also called on the DENR to address the problem soon by adding more teams that will inspect hundreds of quarries all over the country.
He also said that while he fully understood Mr. Cimatu’s decision to prioritize the safety of communities near quarries, a balance must be struck to mitigate the economic implications of the policy as well.
“They should form 50, 80, 100, 200 inspection teams. They should inspect within one week. If someone has violations, close them down. But don’t close [everything] immediately while inspections have not yet started. That seems to be a wrong policy,” Mr. Escudero said.
“Everyone knows that when prices increase in this country, it is difficult to bring back the previous level of prices even if you [increase] supply,” he added. — Camille A. Aguinaldo

DoLE may lift Micronesia OFW deployment ban

THE Secretary of Labor said that he is looking into the possible lifting of a deployment ban of Overseas Filipino Workers (OFWs) to the Federated States of Micronesia, imposed earlier this month by the Philippine Overseas Employment Authority (POEA) earlier this month.
“I asked (POEA Administrator Bernard P.) Olalia and if there is any basis to lift the ban,” said Department of Labor and Employment (DoLE) Secretary Silvestre H. Bello III.
The labor secretary explained that the issue regarding the total deployment ban covering the Federation is not solely in DoLE and POEA’s hands, adding that the Department of Foreign Affairs (DFA) needs to make a determination that work conditions have improved.
On Sept. 4, the POEA issued Governing Board Resolution No. 5 which notes that the DFA recommended a total deployment ban of OFWs to the Federation “unless it settles the unresolved cases and improves working conditions of OFWs.”
In 2017 the DFA issued reports that OFWs employed at Chuuk State Hospital have not been receiving wages.
POEA issued Advisory No. 6 Series of 2017 noting that the Federation government “made no effort to improve working conditions and guaranteeing the timely payment of salaries and benefits of workers.”
The 2017 advisory of the POEA also announced the blacklisting of Chuuk State Hospital, barring it from recruiting OFWs.
Mr. Bello said that he has received information that there is only one OFW complaining of non-payment of wages about which he is still waiting further communication.
Upon verifying whether there is only one complainant, Mr. Bello said “We will definitely order the lifting of the ban.”
He added an employment ban is too drastic a response for only one complainant.
POEA reported that there are around 2,000 OFWs who are working in the Federation. — Gillian M. Cortez

Proclamation grants ecozone status to DM Wenceslao’s Aseana 3 building

PRESIDENT Rodrigo R. Duterte issued a proclamation on Tuesday designating as a Special Economic Zone the Aseana 3 Business Process Outsourcing (BPO) Building at the Aseana Business Park in Parañaque City.
Signed on Sept. 25, Proclamation No. 592 cites as its authority “the Special Economic Zone Act of 1995, as amended by the Republic Act (RA) No. 8748, and upon the recommendation of the Board of Directors of the Philippine Economic Zone Authority (PEZA).
It added: “I, Rodrigo Roa Duterte, President of the Republic of the Philippines, do hereby create and designate a building to be known as the Aseana 3 BPO Building…as Special Economic Zone (Information Technology Center)…”
The building has a gross floor area of 47,834.24 square meters on a 3,139 square-meters site along Aseana Avenue corner Macapagal Boulevard, Aseana City in Parañaque City, according to the proclamation.
Aseana 3 is a project of the property and construction firm D.M. Wenceslao &Associates, Inc. (DMWAI).
According to the DMWAI website, Aseana 3 is a 14-storey building “designed to cater to the Business Process Outsourcing (BPO) industry.” — Arjay L. Balinbin

Asia’s oil deficit seen widening by 2025

SINGAPORE — Asia’s oil deficit will widen to 35 million barrels per day (bpd) by 2025, up about 30 percent from the current 27 million bpd, amplifying global trade flow imbalances, a senior executive at French oil and energy group Total said on Tuesday.
At the same time, Europe’s imports will be stable at 10 million bpd, while exports from North America and the Middle East will increase, said Thomas Waymel, the company’s president of trading and shipping.
The United States will export shale oil, but its refineries will continue to import medium and heavy sour grades, Waymel said during the Asia Pacific Petroleum Conference (APPEC) in Singapore.
Regulatory changes like IMO 2020, which will cap sulfur content in ship fuel, will be another driver for growth and changing trade flows, he said.
“The fuel oil flows will be reduced. At the same time, the shipping industry will need distillates … so Europe and Singapore will attract more distillates,” Waymel said.
New trade flows might emerge for high sulfur fuel oil either in coker capacity or power plants switching back from coal or gas to high sulfur fuel oil.
Light sweet crude will be more in demand, while heavy sour grades will need to be processed by complex refineries, he said.
“Regulatory changes will dramatically affect an increase in flows of both crude and products. It should also have positive impact on freight rates which is finally good news for ship owners,” he said — Reuters

PET grants 25% shading threshold in VP recount

By Vince Angelo C. Ferreras
THE SUPREME COURT, sitting as the Presidential Electoral Tribunal (PET), has granted an appeal by Vice-President Maria Leonor G. Robredo to lower the ballot shading threshold from 50% to 25% in the manual recount of votes for the 2016 vice-presidential contest.
At the time, Commission on Elections had calibrated vote counting machines to read even ovals with 25% shading. However, the PET was not immediately informed of this new rule, in contrast to the poll body’s following a 50% shading threshold in the 2010 general elections.
In a 21-page resolution last week and conveyed to the opposing parties last Tuesday, PET cited Comelec’s 25% voting threshold in the 2016 elections.
Mrs. Robredo confirmed that PET had already made a decision last Sept. 18, but it was only yesterday afternoon that both parties were informed. Her occupancy of the vice-presidency is being challenged by her rival in 2016, former senator Ferdinand R. Marcos, Jr., who is also pushing for the 50% voting threshold.
“From the foregoing, for the purposes of the 2016 national elections, the fifty (50%) shading threshold was no longer applied. It is likewise clear however that a new threshold had been applied,” a portion of the resolution stated.
Mr. Marcos had selected three pilot provinces for the manual recount of votes: Iloilo, Negros Oriental, and Ms. Robredo’s home province of Camarines Sur. The recounting in these provinces started on April 2.
Lawyer Beng Sardillo, a member of Ms. Robredo’s legal team which presided over her press conference on Wednesday, said they are expecting the vote recount to be finished by November or December.
But Ms. Robredo’s lawyer Romulo B. Macalintal said he expects another hearing following the vote recount. “The Presidential Electoral Tribunal will conduct a hearing, through the appointed hearing commissioners, where the parties will submit their evidence,” he said.
Mr. Macalintal added, “We consider the resolution as a very significant legal and political victory on our part. And this will greatly boost the morale of our supporters, who were so worried with the reported reduction of Robredo’s votes due to this highly controversial threshold issue.”
“We can already assure the public that the true results of the elections will confirm that our Vice-President Robredo was the duly elected Vice-President, in a clean and honest election, and that Marcos’ protest, from the very, very start, has no visible means of legal or factual support,” Mr. Macalintal also said.
For her part, Mrs. Robredo said, “Para sa akin, iyong value ng desisyon hindi lang sa protest na ito, kundi sa lahat ng election cases, kasi it was overemphasized in the decision na kapag electoral cases, ang pinakamahalaga talaga, iyong intent ng voters.” (For me, the value of the decision is not only on this protest [case] but on all election cases, because it was overemphasized in the decision that when it comes to electoral cases, the most important [consideration] is the intent of the voters.)
The Marcos camp was sought for comment as of this reporting.

Can’t deny D&I: Why diversity and inclusion matter

Diversity and inclusion (D&I) are increasingly becoming a business priority. In a time of great changes and disruption, business leaders are pressured to keep up by attracting and retaining the best talent, serving their customers better, and increasing their stakeholders’ trust — all of which are benefits that D&I can offer.
Numerous social changes have drawn the attention of business leaders towards D&I. More than ever, the general public is more vocal about social justice issues, engaging in political discussions, and fighting for social change. Popular movements such as Me Too, Pride, and Black Lives Matter — to name a few — were formed to support women, the LGBT+ community, and African-American minorities. With the pervasiveness of social activism, D&I has become a reputational risk that businesses cannot simply ignore.
Business, talent, and societal challenges are among the tremendous forces working together that reshape how leaders run their businesses. Our world grows increasingly complex and polarized by the day, thereby making D&I a key imperative of modern-day business. Those who embrace it are more ready to respond to an ever-changing world and are in the best position to reap the growth opportunities and benefits offered by a diverse and inclusive workforce.
THE BENEFITS OF D&I
There are proven benefits to building a diverse and inclusive workforce. D&I helps businesses address challenges and leverage opportunities around talent, customers, and investors.

1. Attracting and retaining talent

Globally, the war for talent is increasingly competitive. Talent with the right skills is even more difficult to attract and retain. PwC’s 20th Global CEO Survey shows that 77% of CEOs are concerned about the availability of key skills and see it as a threat to their business goals.
In a competitive labor market, employees are increasingly looking for organizations whose values are aligned with theirs. PwC’s 2017 Inclusive Recruitment Survey shows that employers’ attention to D&I is a key consideration of potential talent when looking for work. Some 54% of women and 45% of men surveyed said that they research a company’s D&I policies before deciding to accept a position. This is also true for LGBT+ and millennial talent. Based on PwC’s Out to Succeed Survey, more than 80% agree that policies on diversity, equality, and inclusion are critical factors in deciding to work for a specific employer. Locally, some companies are responding to this by offering benefits for partners of their LGBT+ employees.
It can be reasonably concluded that organizations which do not prioritize D&I are unable to fully maximize the vast talent pool in the market. It also proves that D&I is a powerful brand differentiator that can help businesses become an employer of choice.
Embedding D&I in organizational recruitment, retention, and development policies will help businesses expand their horizons, allowing them to look for the best talent even in the most unexpected places, and to retain them whoever and wherever they are.

2. Closer to customers

There are increased expectations from the public for businesses to mirror the diversity of the society that they serve. Failing to do so hinders organizations from fully understanding and addressing their customers’ evolving needs.
Businesses are starting to acknowledge how a diverse and inclusive workforce allows them to win the trust of different communities, provides opportunities to understand customers better, and enables them to create more targeted products and services. In fact, a 2018 LinkedIn report shows that 49% of surveyed employers are focusing on diversity to better represent customers.
D&I also nurtures customer loyalty. Businesses have started to advocate social change to address the more socially and politically-conscious consumer. Case in point: with the growing spending power of LGBT+ consumers and allies, some organizations have responded by creating more inclusive and LGBT+ friendly marketing campaigns.

3. Enhancing trust

Disclosures on diversity and inclusion are becoming more and more important to shareholders and investors. These stakeholders want to ensure that they are investing in businesses with stable reputations.
An organization’s transparency about D&I, no matter how bad or good its track record is, enhances the trust of stakeholders. To this end, numerous global companies (including tech giants Google and Apple) have started publishing diversity and inclusion reports on their corporate websites.
MOVING FORWARD WITH D&I
To move forward with D&I requires businesses to realize that diversity and inclusion are two different concepts that must go hand in hand.
Diversity brings together individuals of different backgrounds, experiences, culture, and preferences. Inclusion cultivates a workplace environment where individuals can be their true selves, where they feel that they belong and are supported, and where their contributions are valued.
It is not enough to prioritize workforce diversity alone. Businesses must also foster an inclusive culture where people feel welcomed, valued, and accepted for who they are. Neglecting inclusion to prioritize diversity may lead to disappointing effects that can undermine an organization’s D&I efforts.
For organizations that are about to start their D&I journey, embedding D&I in the culture should come first. To make this happen, organizations need a D&I program that will propel culture, behavior, and consequently, processes.
To build a D&I program, organizations must:

1. Understand the facts of today — Initiate a continuous process to understand what is happening in your organization. Gather, analyze, and share data to determine your baseline on D&I and identify improvement opportunities.

2. Develop an inspirational strategy — Create a business-focused vision and strategy for D&I that is action-oriented and widely-communicated.

3. Engage leadership — Engage leadership around an inspirational D&I strategy. Hold leaders accountable for D&I results. Make D&I a sustainable C-suite priority fundamental to the success of the business.

4. Create sustainable movement — Execute D&I strategy across all elements of your business and talent ecosystem. Monitor progress.

A successful D&I program will not happen overnight. For many organizations, there is still a long way to go. Realizing the full benefits of D&I requires a good understanding of an organization’s workforce mix and the ability to align it with business strategy. Nevertheless, the benefits from D&I make the journey worthwhile and acting now will surely result in greater long-term gains.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Louise Margareth O. Luarca is a senior associate with the Management Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728
louise.margareth.luarca@ph.pwc.com

Red October plot a fantasy from Tom Clancy — Senator

SENATORS ON Wednesday weighed in on an alleged “Red October” destabilization plot involving the political opposition, with the minority leader dismissing the alleged plot as a “fantasy tale taken from a Tom Clancy thriller.”
But at the House of Representatives, its leader, citing her experience as Philippine president, gave President Rodrigo R. Duterte’s claim of such a plot the benefit of the doubt, saying he is “working from good information.”
TOM CLANCY
In a statement, Senate Minority Leader Franklin M. Drilon said of Mr. Duterte’s ouster claim, “This opposition-communist ‘Red October’ destabilization plot is a discredited fantasy tale taken from a Tom Clancy thriller and being peddled by those who undermine our democracy to justify the declaration of a so-called revolutionary government.”
The Hunt for Red October is one of many espionage thrillers by best-selling author Tom Clancy. The book was adapted into a film in 1990 starring Hollywood stars Sean Connery and Alec Baldwin.
“This is an old familiar tune and it sounds like a broken record,” Mr. Drilon also said. “We in the Liberal Party strongly deny being part of any destabilization plot. We adhere to the rule of law and the supremacy of the 1987 Constitution.”
For his part, Senator and LP president Francis N. Pangilinan said those who give the President false intelligence reports must be fired.
“Billions are spent on intelligence funds for fabricated information….Instead of finding solutions to the worsening crisis in the price of rice and the economy, ways are being made to divert attention from the real problem of the country,” Mr. Pangilinan said in a statement.
In a media interview during his visit in a Sulu military camp last Monday, Mr. Duterte said “some soldiers” in the military are conniving plotting with the opposition to overthrow him.
“Diyan ako naghihinakit sa kanila, ‘yung mga sundalo na ‘yan. Hindi na bale magalit sila sa akin, wala ‘yon. But to go into cahoots with the kalaban… Ako isa lang ako eh,” Mr. Duterte said. (That’s my misgiving to them, those soldiers. Never mind if they’re angry at me, that’s nothing. But to go into cahoots with the enemy,…I’m just one.)
For his part, Senator Panfilo M. Lacson said, “There’s nothing unusual. While the President is very supportive and consistently at that, upon his assumption, with the all the goodwill he gave to the Armed Forces, he cannot have 100% or absolute support from all the soldiers and officers.”
Mr. Lacson, an alumnus of the Philippine Military Academy and former chief of the National Police, also said, “The AFP (Armed Forces of the Philippines) should be conducting loyalty check by way of counter-intelligence and other built-in mechanisms available to them, even without being directed by the President.”
Senator Gregorio B. Honasan II, for his part, said, “The mandate of the AFP is stay in the center. Loyalty check is a direction….I am not in favor of exposing the strengths and weaknesses of our systems, our institutions to temporary flaws.”
“We should trust all our institutions….They should not do what we did in 1986,” Mr. Honasan also said, referring to the military breakaway in the People Power Revolution in which he took part.
‘GOOD INFORMATION’
But for her part, former Philippine president and present House Speaker Gloria Macapagal-Arroyo on Wednesday said, “You know let me just say, again going from my experience as President, the President usually has access to information that not all of us have access to.”
“So if the President believes that there is a threat, he is working from good information. So we should believe whatever (he says),” the Speaker added.
Opposition groups including the Magdalo party identified with Senator Antonio F. Trillanes IV have criticized Mr. Duterte’s claim of a destabilization plot against him.
Also on Wednesday, the Department of Justice (DOJ) on Wednesday submitted its reply to the Makati City Regional Trial Court (RTC) Branch 148, regarding Mr. Trillanes’s comment on the DoJ’s motion for the issuance of arrest warrant and hold departure order (HDO) against him.
The prosecution said the affidavit submitted by Col. Josefa C. Berbigal is “not accurate, if not downright false,” as she only mentioned that she received Mr. Trillanes’s application form and asked him to read a statement which contained a general admission of guilt.
“She did not categorically state having received a narration of fact by Trillanes of his involvement/participation in the Oakwood Mutiny on July 7, 2003 and the Peninsula Manila Hotel Incident on November 29, 2007, as required in the application form,” the reply read.
The DoJ also said that the affidavit of former defense undersecretary Honorio S. Azcueta — regarding the discussions by the Department of National Defense (DND) Ad Hoc Amnesty Committee on the amnesty applications — was belied by the Records Division of the DND as there were no minutes of the said deliberation.
“As it were and as it is, accused and his witnesses conveniently disregarded this requirement of submission of narration of facts of their involvement in the crimes of coup d’etat and rebellion,” the DoJ said.
For his part, Justice Secretary Menardo I. Guevarra told reporters that the government is not singling out Mr. Trillanes, adding that it is “natural” to start the review of the granting of amnesty with him, in connection with the 2003 Oakwood Mutiny, 2006 Marine Standoff, and 2007 Manila Peninsula Siege.
“We cannot take away that risk that (his accomplices are) found to be deficient or noncompliant with the requirements for the grant of amnesty, then any other person who might have not complied may suffer the same situation of Senator Trillanes. But for now, we are dealing with his particular case so we’re focusing our attention on that (first),” Mr. Guevarra said.
“We’re not saying that the government is picking on him and being selective, it just so happened that he’s the most vocal and he’s the leader of the pack, so to speak. So it was just natural, if not logical, to start with him,” he added.
On Sept. 25, Judge Elmo M. Alameda of Makati RTC Branch 150 issued an arrest warrant against Mr. Trillanes in connection with his rebellion case from the 2007 Manila Peninsula Siege. The Senator, however, posted P200,000 bail the same day.
President Rodrigo R. Duterte on Aug. 31 issued Proclamation No. 572 voiding the amnesty granted to Mr. Trillanes in 2011. — Camille A. Aguinaldo, Vann Marlo M. Villegas, and Charmaine A. Tadalan

SWS: Nearly half undecided on police claims of resistance

By Camille A. Aguinaldo Reporter
NEARLY HALF of Filipinos are undecided on the truthfulness of police claims of resistance (“nanlaban”) by drug suspects, according to a second-quarter survey by the Social Weather Stations.
The noncommissioned Second Quarter 2018 Social Weather Survey showed 47% of respondents saying they are “undecided,” while 26% say the police are not telling the truth (13% definitely not telling the truth, 14% probably not telling the truth, correctly rounded), and 27% say police are telling the truth (17% probably telling the truth, 9% definitely telling the truth, correctly rounded).
The net opinion of the truthfulness of the police slightly improved to net zero, compared to the -1 in September 2017. It was at -20 when SWS first asked the question in December 2016.
The survey also showed that net truthfulness of the police’s nanlaban claims was lowest in Metro Manila at -25, followed by Balance Luzon at -6, Visayas at -4, and Mindanao at +31.
Some 96% of Filipino respondents maintained that drug suspects must be captured alive, a point higher than the 95% recorded in September 2017. Metro Manila was the most dominant with the said opinion, followed by Balance Luzon, Visayas, and Mindanao, the survey also added.
Meanwhile, some 86% said it was important for the police to capture drug suspects alive. This opinion was most expressed in Visayas, followed by Mindanao, Balance Luzon, and Metro Manila.
The June survey also noted that President Rodrigo R. Duterte received a net lower satisfaction rating among those who believe that the police claims were definitely untrue at +3, compared to the +77 net rating among those who believe the police are definitely telling the truth.
The same pattern was found among respondents when asked of their level of satisfaction with the administration in its campaign against illegal drugs. Those who do not believe the police had a +41 net satisfaction rating, while those who believed the police had +77.
The Second Quarter SWS survey was conducted on June 27-30 via face-to-face interviews of 1,200 adults nationwide with sampling error margins of ±3% for national percentages and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao.

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