Nationwide round-up

August 5, 2018 | 8:29 pm

Trillanes joins Cayetano-Aquino verbal tussle

SENATOR ANTONIO F. Trillanes IV has joined the fray between former President Benigno S.C. Aquino III and Foreign Affairs Secretary Alan Peter S. Cayetano over the issue of transparency in the South China Sea issue.
In a statement on Sunday, Mr. Trillanes responded to the open letter of Mr. Cayetano addressed to Mr. Aquino, and maintained that the country’s top diplomat knew about the details of his backchannel negotiations with China in 2012 at the height of the Scarborough Shoal standoff.
He also called Mr. Cayetano, a former senator, a “political snake” for only pointing out now the mistakes of the Aquino administration’s response to China.
“Sec. Cayetano has proven to be a political snake. The Panatag standoff happened in 2012 during which time Cayetano was still a loyal ally of the Aquino administration, so obviously, he never saw anything wrong with how PNoy (Aquino) resolved it then,” Mr. Trillanes said.
In his open letter posted on Facebook last Friday, Mr. Cayetano said Mr. Trillanes refused to reveal the purpose of his trips to China when he was pressed by then Senate President Juan Ponce Enrile on the matter during a Senate session back in 2012.
The session was ended after Mr. Trillanes walked out.
Nevertheless, the senator answered the questions raised by Mr. Cayetano last Friday regarding his role as a backchannel negotiator. He said his three-month mission in China was to de-escalate the tension in the shoal and noted that the issue of sovereignty was not discussed.
Even though the negotiations resulted to the reduction of Chinese ships in the area, he added that the refusal of China to remove the remaining ships forced Mr. Aquino to file the arbitration case before the Permanent Court of Arbitration at The Hague, Netherlands.
“Now the question to Cayetano and his boss, (President Rodrigo R.) Duterte, is this: ‘Why didn’t you follow through on our historic victory at the arbitration court?’ Or better yet: ‘Why aren’t you fighting for our sovereignty the way you promised during the campaign?” Mr. Trillanes said. — Camille A. Aguinaldo

De Lima calls for probe on DILG’s anti-corruption, anti-drug program

SENATOR LEILA M. de Lima has called for an investigation into the reported lack of transparency by the Department of Interior and Local Government (DILG) on spendings for its anti-corruption and anti-drug program called the Mamamayang Ayaw sa Anomalya, Mamamayang Ayaw sa Iligal na Droga (Masa Masid). Filed last Aug. 1, Senate Resolution 807 cited the findings of the Commission on Audit indicating that the DILG has already used its P500 million budget for the Masa Masid project, but has yet to submit accomplishment reports. “In the midst of the administration’s controversial campaign against criminality and drugs, disbursement of funds for programs should be transparent and implementers accountable to dispel speculation on the lawfulness of public expenditures,” Ms. De Lima said in a statement. — Camille A. Aguinaldo

Mother’s milk

August 5, 2018 | 8:28 pm

Mothers participate in a breast-feeding event in Manila, one among more than 60 held around the country, on Aug. 5 in a government-backed mass breast-feeding promotional activity aimed at combating child deaths. World Breast-feeding Week is celebrated annually from Aug. 1-7.

Cruise ships lined up for Boracay reopening

August 5, 2018 | 8:28 pm

UP TO eight international cruise ships have already scheduled stops in Boracay island, which is expected to reopen in late October after a six-month closure to address environmental problems. Department of Tourism-Western Visayas (DoT-6) Regional Director Helen J. Catalbas said the cruise ships are lined up from Oct 26 until 2019. “Among them are Royal Caribbean Cruises, Celebrity Cruises and Star Cruises. Each has a capacity of 1,500 to 4,500 passengers, including crews,” she said. Ms. Catalbas said the DoT has already cleared with the Department of Environment and Natural Resources (DENR) concerns on potential damage to underwater reefs. She said the DENR explained that corals thrive in shallow waters, while cruise ships drop anchor in deeper parts of the sea. “So it is not likely that the anchorage of cruise ships for a few hours could cause damage to corals,” she said. Before Boracay’s closure in April, 16 out of the 18 scheduled cruise ships were able to visit the island. Meanwhile, Ms. Catalbas said they are now reviewing the implementation of a reservation system to “control” the number of tourists visiting the island. “Because if we do not implement an advance reservation, there might be too much people coming in and we do not have enough rooms considering that we are still working on the compliance of many other hotels and resorts in the island,” she said. The DENR is expected to release this month its study and recommendations on Boracay’s carrying capacity for tourists. — Louine Hope U. Conserva

Cebu launches revised LGU incentive program as province celebrates 449th anniversary

August 5, 2018 | 8:28 pm

THE ENTIRE province of Cebu, including the independent cities of Cebu and Mandaue, are observing a holiday today, Aug. 6, for its 449^th founding anniversary. — *CEBU PIO*

THE BUDGET for the Our Cebu Program (OCP), an evaluation and incentive scheme for local government units (LGUs) under Cebu province, has been increased to almost P29 million from P9 million, officials announced last week as the province launched the celebration of its 449^th anniversary. The five-year old OCP, now on its “version 2”, has also been revised to make it more development-oriented rather than competition-driven. “Ranking LGUs will not anymore apply this time, but the LGU itself will be measured on its own standard and criteria, which means, it has to compete only to itself,” said Gov. Hilario P. Davide III during the launch. Under the previous OCP system, cash incentives were only given to top performing LGUs as ranked among all of them. Vice-Gov. Agnes A. Magpale, the OCP project manager, said evaluators will now be using the rubric method for assessment in the form of matrix, which interprets and grades an LGUs’ work against its own criteria and standards. There will also be mentors for every LGU to provide technical coaching and assistance, Ms. Magpale added.

Siargao rep says domestic tourists are the main polluters

August 5, 2018 | 8:27 pm

By Maya M. Padillo, Correspondent
AS SIARGAO Island gears up as the pilot site of a joint private-public sector sustainable tourism project, its congressional representative flagged that domestic tourists are the ones mainly in need of lessons on environmental awareness and protection.
Rep. Francisco Jose F. Matugas II of Surigao del Norte’s 1^st District, which covers Siargao, said Filipino visitors have significantly increased in the past year and along with them the amount of garbage at the beaches, including plastic wastes.
He noted that foreign tourists used to comprise up to 90% of arrivals on the island.
“We don’t have problems during that time because foreigners are already educated in terms of garbage disposals. Most of them don’t bring plastics… foreigners are educated with environment hazards and they are very particular on that,” Mr. Matugas said in an interview on the sidelines of the launching of the Juan Effect sustainable tourism project of airline Cebu Pacific in partnership with the Department of Tourism (DoT).
Siargao will be the pilot site of the project, which aims to promote responsible travel. The airline and the DoT will collaborate with local stakeholders for specific environmental conservation action plans.
Mr. Matugas said the tourism office recorded about 600,000 arrivals from January to July this year, and the projection is it will hit the one-million mark by end-2018.
Of these, he added, about 50% are local tourists.
“It’s now 50%-50% (between foreign and local tourists), sometimes its more (local). You can see it on the plane,” he said, referring to domestic flights to Siargao from Manila and Cebu.
The congressman said he is optimistic that with the launching of the Juan Effect program, Siargao would see less waste, particularly single-use plastic.
“We are very happy to have this program… the impact of single-use plastic is very bad,” he said.
Mr. Matugas there is already an ordinance covering the nine town in Siargao to ban single-use plastic.
Two towns, Pilar and Sta. Monica, are already implementing the law, and Mr. Matugas said they are working on full island coverage soon, especially in the main town of General Luna.
“General Luna will follow suit. The problem with Gen. Luna is, it is the tourism hub of Siargao and it is not that easy to implement. We started with the smaller towns,” he said.
Cebu Pacific President and Chief Executive Officer Lance Y. Gokongwei said while tourism has proven to be an economic growth catalyst, it also poses environmental threats.
“Travel and tourism are one of the world‘s economic sectors that produces employment benefits in the related industries and certainly contributes to the country‘s economic growth. But tourism comes with a prize,“ Mr. Gokongwei said during the program launch in Metro Manila.
Tourism Secretary Bernadette Romulo-Puyat, for her part, said, “In the DoT, we see the need to inspire, collaborate, educate, and habitualize our efforts on this advocacy. By inspiring, we engage consumers, making them feel empowered to embrace their role as responsible tourists.”

Davao City police to get top award and best mobile force

August 5, 2018 | 8:26 pm

THE DAVAO City Police Office (DCPO) has been named Best City Police and Best Mobile Force for 2017, and will be receiving the award during the 17^th Police Service Anniversary Celebration slated at the Philippine National Police (PNP) headquarters in Quezon City on Aug. 8. Police Senior Insp. Ma. Teresita Gaspan, DCPO spokesperson, said the city also has 10 other unit awardees. DCPO Chief Sr. Supt. Alexander C. Tagum credited the award to the strong partnership with the city government and the various activities of the police force, including maintaining high police visibility and 24/7 intensified checkpoint operations. “But the struggle to achieve peace and order still continues,” Mr. Tagum said. — Carmencita A. Carillo

Nation at a Glance — (08/06/18)

August 5, 2018 | 8:26 pm

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Main energy sources (by region)

August 5, 2018 | 5:09 pm

By Christine Joyce S. Castañeda, Senior Researcher
Coal accounted for half of electricity generated in the Philippines last year. It is the main source of energy in Luzon and Mindanao. On the other hand, more than half of Visayas’ power requirements is supplied via renewable energy.

ALSO READ:
• PHL to become ASEAN’s most coal-dependent economy by 2030 — ADB
• How reliant is the Philippines on renewable energy?
• PHL announces large-scale renewable projects
• Coal plants’ share in 2017 energy mix expands to over 35%
• DoE studying shift in energy mix to 50% baseload
• Renewables could take up to 60% share with carbon tax, subsidies

The Philippines’ debt-to-GDP ratio through the years

August 4, 2018 | 3:57 am

Debt-to-GDP ratio, which refers to government debt as a percentage of gross domestic product, is one of the closely watched indicators by international credit rating agencies as it demonstrates a country’s ability to pay off its debts. A lower debt-to-GDP ratio is generally perceived as favorable — an indicator of a robust economy — as it shows that a country is producing enough to be able to repay its debts.
From 2016 to 2017, the Philippines’ debt-to-GDP ratio was 42.1%, down from 44.7% in 2015. The 2016-17 ratio is the lowest level since 1996, the earliest year for which comparable data is available.
The Philippine government aims to sustain the yearly downward trend and it expects debt-to-GDP ratio to drop to 38.9% by 2022 when Pres. Rodrigo R. Duterte’s term ends. — via BusinessWorld Research
ALSO READ:
• Debt-to-GDP ratio rises to 56.2% in Q1 ahead of Fed rate hikes
• ADB confident PHL can handle Chinese debt load
• General government debt at 36.4% of GDP
• Debt to remain at ‘prudent levels,’ DBCC says

PHL economy likely slowed in Q2 — Moody’s

August 3, 2018 | 8:02 pm

By Elijah Joseph C. Tubayan, Reporter
PHILIPPINE economic growth may have decelerated in the second quarter weighed down by rising inflation despite robust consumption and investment, Moody’s Analytics said.
The sister company of debt watcher Moody’s Investors Service said gross domestic product (GDP) likely logged a 6.6% growth rate during the April to June period, slower than the 6.8% recorded in the first three months of the year, and a tad slower than the upwardly revised 6.7% in the second quarter of 2017.
It is also below the government’s 7-8% full-year target.
“GDP growth in the Philippines also likely softened a little. Consumer spending is healthy, thanks to steady inflows of overseas worker remittances and a firm labour market. External demand has remained solid but high base effects are at play,” Moody’s Analytics said in its Asia-Pacific Economic Preview dated Aug. 1.
“Consumer spending is healthy, thanks to steady inflows of overseas worker remittances and a firm labor market. Investment has been robust and is likely to remain strong, as the government boosts infrastructure development,” the report stated.
Central bank data showed April and May remittances grew 12.7% and 6.9% to $2.347 billion and $2.469 billion, respectively. Unemployment rate, meanwhile, slightly declined to 5.5% from 5.7% at the start of the second quarter.
Spending for infrastructure and other capital outlays, meanwhile, surged 48.63% to P195.6 billion in the second quarter — a notch higher than the P194.82 billion target for the period — according to data from the Department of Budget and Management.
“External demand has remained solid. Although these factors likely supported 6.6% GDP growth in the second quarter, rising price pressures will need watching,” Moody’s said.
Exports however declined 8.5% and 3.8% to $5.11 billion and $5.76 billion in April and May respectively, Philippine Statistics Authority (PSA) data showed.
Headline inflation hit a five-year high at 5.2% in June, and the six-month average at 4.3% — well above Bangko Sentral ng Pilipinas’ (BSP) 2-4% target band.
BSP Governor Nestor A. Espenilla had already said that the Monetary Board is considering “strong follow-through monetary adjustment” amid heightened inflation expectations with continued pressure on the peso.
The PSA is scheduled to report second-quarter GDP growth on Aug. 9, the same day of the BSP’s rate-setting Monetary Board meeting. The PSA will release July inflation data on Aug. 7.
“Among other things, it is likely that the sharp acceleration in inflation dampened spending and thereby GDP growth in Q2. Once the temporary disruption of the tax reforms have past, 7% GDP growth looks achievable considering the increase in infrastructure spending,” Veasna Kong, economist from Moody’s Analytics, said in an email when asked for further comment.
The Tax Reform for Acceleration and Inclusion law added and raised taxes on various items, while stripping out value-added tax exemptions and lowered personal income taxes, among others.

Fiscal deficit seen to fall below target this year

August 3, 2018 | 8:01 pm

THE Philippines is expected to realize a fiscal deficit of 2.9% of gross domestic product (GDP) this year — slightly below the government’s 3% target — due to the sharp uptick in infrastructure spending, according to HSBC Global Research.
If realized, it would be greater than the actual budget gap of 2.2% of GDP logged in 2017.
“The Philippines has gone from an average deficit of -1.8% of GDP in 2007-2016 to 2.2% in 2017 and is on track to realize 2.9% in 2018 — with most of the increase going to infrastructure,” HSBC said in a research note dated July 31.
The Duterte government has pledged to spend about P8 trillion for infrastructure projects in a bid to grow the economy by 7-8% through 2022.
However, the fiscal deficit is below target so far, at P193 billion in the first semester, 25% higher than the P154.5 billion recorded in the same period last year, but 27% lower than the P264.3 billion target due to better-than-expected revenues.
HSBC warned of further inflationary pressures stemming from the government’s plan to widen the deficit target to 3.2% in 2019.
“The main takeaway is that further fiscal impulse should be expected into 2019, adding to what is already strong growth. Continued fiscal stimulus is likely to slightly delay the return of inflation to the mid-point of the BSP’s target, among other factors, which is partly why we expect the BSP (Bangko Sentral ng Pilipinas) to take decisive, pre-emptive action in its upcoming meeting,” HSBC said.
HSBC said it expects the central bank to raise policy rates by 50 basis points during its meeting on Aug. 9, which would be on top of the two 25 basis point hikes the BSP made in May and June.
The Development Budget Coordination Committee in its meeting last month widened the budget shortfall for 2019 as it seeks to accelerate spending for infrastructure and social programs.
The BSP expects inflation to reach 4.5% this year, and to return to its 2-4% target band by 2019.
Moreover, HSBC also noted the plan to shift to a Federal form of government and the Supreme Court’s ruling to increase internal revenue allotments to local government units (LGUs) may pose as a downward risk to the infrastructure plan.
“(A) recent Supreme Court ruling to increase national revenue allotments for local government units and/or an abrupt shift to Federalism may curb government spending on infrastructure projects in the near-to-medium term,” the report read.
Socioeconomic Planning Secretary Ernesto M. Pernia earlier admitted that such disruption may be possible due to the change in government structure.
Meanwhile, the government will file a motion for reconsideration on the high court’s order, seeking to clarify which taxes will be covered.
The court on July 23, ordered the “automatic release without further action” of LGUs’ “just share” of internal revenues that includes all national government taxes, not just the from Bureau of Internal Revenue, and that the government should implement the ruling prospectively.
Budget Secretary Benjamin E. Diokno said complying with the ruling would cost P160 billion more to the government, but noted that it could devolve some functions from the national government to the local government, to keep the fiscal deficit intact. — E.J.C. Tubayan

DoJ to consider extradition of Napoles, kin upon request of US court

August 3, 2018 | 7:50 pm

JUSTICE Secretary Menardo I. Guevarra on Friday said his department will consider extradition, upon request by a US court, of Janet Lim Napoles and five other relatives who have been indicted in the United States in connection with a $20-million money laundering scheme.
He also confirmed the Bureau of Immigration records which show that a daughter of Ms. Napoles, Jeane Catherine Napoles, left the country on July 27.
Besides Janet Lim Napoles, Jo Christine Napoles, James Christopher Napoles, Reynald Luy Lim and Ana Marie Lim are still in the Philippines.
“Should the US request their extradition and they are not facing any court cases here, we will evaluate and commence the appropriate proceedings,” Mr. Guevarra said in a text message to reporters.
Article 11 of the Philippines’ extradition treaty with the US states that “The Requested State may postpone the extradition proceedings against a person who is being prosecuted or who is serving a sentence in that State.”
In the same provision, it was noted the Requested State may temporarily surrender the person to the Requesting State for the purpose of prosecution.
At present, the Napoles matriarch has pending cases at the Sandiganbayan. Should an extradition request be granted by the DoJ, the US government will have to wait until the conclusion of the case or a sentence, if any, has been served.
“(C)onsidering that an indictment has already been made in US courts, the US government has ways of tracking down the defendants anywhere, including tapping the assistance of the Interpol,” Mr. Guevarra said. — Charmaine A. Tadalan