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PSEi loses steam before close on profit taking

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE SHARES closed less than a point higher on Tuesday, with the main index testing the 7,100 level before succumbing to profit taking at market close.

The benchmark Philippine Stock Exchange Index (PSEi) added 0.005% or 0.38 point to close at 6,984.63. The broader all-share index gained 0.21% or 8.25 points to 3,786.30.

The PSEi reached as high as 7,109.75 before losing steam at the end of trading.

“The benchmark index traded strongly above 7,000 for most of the session until it succumbed to sharp market-on-close selling that pushed the PSEi below its major resistance to end the day just a slight notch above yesterday’s close,” Juan Paolo E. Colet, managing director at Chinabank Capital Corp., said in a Viber message.

The market closed only slightly higher as investors turned cautious, said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc.

“Most gains were wiped out in the final minutes due to profit taking,” he said in a Viber message. “Investors also took a cautious stance due to the lingering uncertainties in the United States economy.”

“The market rallied intraday, even breaching 7,000 as investors remained hopeful that the Bangko Sentral ng Pilipinas will continue with its monetary policy easing moving forward in light of the country’s improved inflation situation and the likelihood of monetary policy easing by the Federal Reserve,” he added.

Luis A. Limlingan, head of sales at Regina Capital Development Corp., in a Viber message said local shares closed flat as traders await US consumer price index and producer price index reports due later this week.

Back home, the market’s sectoral indices were mixed. Property increased by 1.87% or 52.76 points to 2,861.99, while services added 0.99% or 21.76 points to 2,220.19. The industrial index gained 0.18% or 17.45 points to 9,280.67.

On the other hand, financials lost 1.7% or 37.33 points to 2,152.92, while mining and oil shed 0.61% or 48.56 points to 7,891.89. Holding companies dropped by 0.3% or 17.57 points to 5,817.51.

Value turnover improved to P7.26 billion from P7.12 billion, while shares traded fell to 776.85 million from 804.4 million.

Advancers beat decliners 111 to 82, while 65 stocks were unchanged. Net foreign buying fell to P759.26 million from P1.03 billion.

“The repeated failure to close above 7,000 should caution investors that there is a fairly high risk of a pullback from current levels,” Mr. Colet said.

Peso advances versus dollar amid caution

THE PESO rose against the dollar on Tuesday amid market caution and profit taking ahead of the US inflation data release for August and the scheduled presidential debate.

It closed at P56.385 a dollar, 13.5 centavos stronger than its P56.52 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened at P56.45 against the dollar. It strengthened to as much as P56.35 and weakened to as low as P56.59 against the greenback.

Dollars exchanged rose to $1.57 billion from $1.22 billion on Monday.

The dollar weakened amid some profit-taking ahead of US inflation data for August, a trader said by phone.

The trader also said there was some market caution due to the upcoming US presidential debate overnight.

A mixed labor report on Friday failed to make a clear-cut case on whether the Federal Reserve would deliver a regular 25-basis-point (bp) rate cut or an outsized 50 bps one at its Sept. 17-18 policy meeting. Traders were waiting for Wednesday’s US consumer price index report.

Markets are fully pricing in a 25-bp cut next week, with a 50-bp cut priced in at 30%, down from as high as 50% on Friday, the CME FedWatch tool showed.

For 2024, traders expect 110 bps of easing, up from about 100 bps from the remaining three meetings.

The dollar index, which measures the US currency against six rivals, was at 101.59, down 0.06%.

Investor focus will be on the highly anticipated televised US presidential debate later on Tuesday that could weigh heavily on the November election.

Investors expect the greenback to rise in the event of a Donald Trump victory, as tariffs would prop up the currency, and higher fiscal spending would boost interest rates.

Meanwhile, Wednesday’s inflation report is expected to show inflation easing to 2.6%, while on a monthly basis, it is expected to remain unchanged at 0.2%.

Lower crude oil prices also supported the peso, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Brent futures were up 1.1% or 78 cents to settle at $71.84 a barrel, while US West Texas Intermediate (WTI) crude gained 1.5% or $1.04 to $68.71.

On Friday, Brent and US diesel futures closed at their lowest prices since December 2021. WTI closed at its lowest price since June 2023 and US gasoline futures closed at their lowest level since February 2021.

The trader expects the peso to trade between P56.10 and P56.60 a dollar, while Mr. Ricafort sees it moving from P56.30 to P56.50. — Aaron Michael C. Sy

Work ongoing for new Dumaguete, Zamboanga, Siargao airports — DoTr

CAAP PHOTO

THE Department of Transportation (DoTr) is looking to develop six greenfield airports, including ongoing projects in Zamboanga, Dumaguete, and Siargao.

Transportation Secretary Jaime J. Bautista said at an aviation forum that preliminary work is ongoing for those three airports, including land acquisition activities.

New airports are also being studied for Masbate, Naga, and Pangasinan, he added.

“For the greenfield airports that we are planning, one is Zamboanga airport. We will move the Zamboanga Airport from its present location to a location 15 kilometers away,” Mr. Bautista said.

Land acquisition for the Zamboanga airport is expected to take between two and three years, Mr. Bautista said, with construction to last another five years.

“We’re already working on land acquisition,” he said.

The development of Dumaguete airport, meanwhile, will be expedited by a funding deal reached with the Export-Import Bank of Korea (Korea Eximbank), Mr. Bautista said.

The Department of Finance (DoF) signed a P13.15-billion loan agreement with Korea Eximbank to finance the new Dumaguete airport.

The DoTr is also working to complete land acquisition for the Dumaguete project, which will rise on a 197.55-hectare site in Bacong, Negros Oriental.

“We signed a loan agreement with the DoF a month ago. And we’re now fast-tracking the acquisition of the land. We have downloaded funds to the municipal government of Bacong so they can continue land acquisition,” he said. 

Mr. Bautista said the department is also looking at the development of a new Siargao airport.

Mr. Bautista said the DoTr is now working with various local government units (LGUs) in Siargao to bring the project forward.

“All these will take maybe three to five years for us to implement. In the meantime, we are in the process of expanding and modernizing all the other airports in the country,” he said. 

Regional airport modernization will be pursued alongside the privatization of Laguindingan International Airport in Northern Mindanao and the New Bohol-Panglao International Airport, he said.

“For the privatization of other airports, we are now working closely with the ADB (Asian Development Bank) World Bank, and the IFC (International Finance Corp.),” he said.

Projects to be pursued as public-private partnerships (PPPs) next year are the modernization and rehabilitation of airports in Basco, Batanes; Busuanga, Coron, Palawan; Cauayan City, Isabela; Tuguegarao City, Cagayan; Bacolod City; Calbayog and Catbalogan Samar; Catarman, Northern Samar; Ormoc, Leyte; Davao City; General Santos City and Surigao City.

The ADB is assisting the DoTr in evaluating how to proceed with upgrading, expanding or constructing the airport projects, he said.

The DoTr has just completed its biggest PPP project, the takeover of the San Miguel-led New NAIA Infrastructure Corp. of the operations and maintenance of Ninoy Aquino International Airport starting Sept. 14.

The deal was touted as the fastest PPP project to progress from submission to investment coordination committee approval to concession agreement signing. — Ashley Erika O. Jose

Senate ratifies CREATE MORE bicam report

PHILSTAR FILE PHOTO

THE SENATE late Tuesday adopted and ratified a bicameral conference committee report on the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to lower taxes on domestic and foreign companies to 20% from 25%.

“We have come up with a piece of legislation that seeks to promote a more attractive investment climate by improving our tax incentives framework for registered business enterprises,” Senator Sherwin T. Gatchalian, who sponsored Senate Bill No. 2672 or the Senate’s version of CREATE MORE, told the plenary Tuesday evening, after legislators sitting in conference committee approved the reconciled version earlier in the day.

“It also aims to clarify and streamline existing rules and policies concerning the granting and administration of fiscal incentives.”

Earlier in the day, a House legislator had announced that the bicameral conference committee harmonizing the Senate and House versions of a key tax reform bill had agreed to adopt provisions in the House bill regarding fuel value-added tax (VAT) refunds and local taxes on economic zone locators, a House legislator said.

In a statement, Albay Rep. Jose Ma. Clemente S. Salceda said Senate representatives on the panel agreed to adopt his proposal to allow fuel suppliers serving tax-exempt entities to be eligible for tax refunds. They also agreed to allow local government units to set the local tax for registered business enterprises (RBEs) at up to 2% of gross income.

Mr. Salceda in late August rejected a Senate provision on value-added tax, saying it allows tariff- and VAT-free imports of petroleum products by international carriers. He also cited ambiguities in the provision on local taxes charged to RBEs, which he said could deter manufacturing investment.

“The House accepted all the Senate’s revisions,” Mr. Salceda added.

The bicameral conference committee’s approval of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill is a “big win for manufacturing,” according to Mr. Salceda, saying that the agreed-upon legislation resolves inconsistencies in the value-added tax clauses of the CREATE Act of 2021.

Ambiguities in the CREATE Act and its implementing rules and regulations led to misinterpretations in the law’s application, he said.

“It’s… a big win for manufacturing. We resolved their VAT issues, which cost some 120,000 jobs over the past three years,” Mr. Salceda said.

“We also addressed high power costs with the additional or enhanced deductions, basically making power cheaper by around P3 per kilowatt-hour (kWh) for manufacturing,” he added.

He said high power costs “are an existential threat to Philippine industries” as the government cannot afford to subsidize them.

RBEs are provided with a 100% deduction on power expenses incurred in a taxable year, from 50% previously, according to the CREATE MORE bicameral conference committee report.

The measure also addresses the changing global investment climate, such as China’s decline as a global manufacturing hub and the increase of fuel prices due to conflict in the Middle East, Mr. Salceda said. “In this regard, we cannot afford to bungle our tax treatment of investors.”

Under the measure, RBEs with a capital stock of over P15 billion will be granted VAT zero-rating on local purchases, VAT exemption on imports, and duty exemptions on imports of capital equipment, raw materials, spare parts and accessories.

The bill also proposes a cap of 2% on RBE local taxes based on gross income. RBEs will also be allowed to have a work-from-home setup for up to half of their workforce without losing their incentives. — Kenneth Christiane L. Basilio and John Victor D. Ordonez

China investments projected at P4.6B over rest of 2024 — PEZA

THE Philippine Economic Zone Authority (PEZA) said it is expecting applications within the year for six expansion projects by Chinese locators valued at around P4.6 billion.

In a social media post, PEZA Director General Tereso O. Panga said the projections stem from PEZA’s first investment mission to China, which ran between Sept. 4 and 10.

“This recent PEZA mission to China will reinforce Chinese investors’ serious interest to further invest in the Philippines,” Mr. Panga said on Tuesday. 

“Among the Chinese foreign direct investment commitments that we have secured were expansion projects of existing registered business enterprises (RBEs) for filing within the year,” he added.

The list includes C&U’s new building and production line that will increase its daily output for industrial bearings to 500,000. It will require an investment of P2.72 billion.

Huading is also investing P1 billion in an additional 1.3-hectare production facility at the Suntrust Ecotown Tanza.

Another commitment secured during the mission was Bocheng’s P700-million investment for the construction of a three-storey building for the production of plastic injection moldings at LIMA Estate.

Meanwhile, Tide Solar is investing an additional $3 million (P169.2 million) for the construction of another solar panel manufacturing facility in Anflo Industrial Estate.

The investment promotion agency also received commitments from Mass Power for the construction of a four-storey building and Boamax for the relocation of its electric vehicle battery charging pile equipment manufacturing operation from China to the Philippines.

During the mission, PEZA also conducted investment fora in Shanghai and Dongguan in Guangdong Province, where it developed investment leads from 11 Chinese companies.

PEZA, together with other investment promotion agencies (IPAs), also joined the 24th China International Fair for Investment and Trade (CIFIT) in Xiamen.

“The Philippine delegation participated in CIFIT to attract more trade and investments from China,” Mr. Panga said.

CIFIT featured business-to-business sessions, which were attended by Fujian Fuchuan Yifan New Energy Equipment, SciTech Pharma, Xiduoduo Group Co., Ltd. and six more companies involved in green ore processing, automotive manufacturing, and e-commerce.

“The IPAs look forward to hosting soon these new investments in the Philippines,” he added.

In the eight months to August, PEZA approved P2.02 billion worth of investment from China and Hong Kong, up from P769 million approved a year earlier.

“There are now 189 Chinese RBEs in PEZA, which have generated P47.3 billion in investment and 46,501 direct jobs,” Mr. Panga said. — Justine Irish D. Tabile

Shinhan Bank agrees to help PHL attract investment from S. Korea

REUTERS

THE Board of Investments (BoI) has entered into a partnership with South Korea’s Shinhan Bank, Co., Ltd. to attract more Korean investment to the Philippines.

“We are very excited about the collaboration between the BoI and Shinhan Bank to attract investments from South Korea as we await the ratification of the free trade agreement (FTA) between our countries,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said in a statement on Tuesday.

“Partnerships like this are crucial in maximizing the benefits of the FTA. What’s most important is working together to fully realize those advantages,” he added.

According to the BoI, the Philippines is interested in attracting South Korean investment in renewable energy, critical minerals processing, and electric vehicle and battery manufacturing.

South Korean companies are also being invited to look into high-technology agriculture, semiconductors and electronics, and advanced manufacturing.

Seongeun Jang, head of Shinhan’s Global Business Promotion Division, said South Korean firms are seeking opportunities in Southeast Asia, with the Philippines identified among the region’s most attractive destinations.

“Shinhan Bank has a strong commitment to providing tailored financial solutions and local market insights to Korean companies through close collaboration with the BoI, ensuring their successful expansion into the Philippine market,” Mr. Jang said. 

“Our goal is to enhance economic exchanges between the two countries and contribute to creating new growth engines,” he added.

The memorandum of understanding (MoU) provides that both parties collaborate in investment promotion initiatives such as investment missions, business matching activities, information exchanges, and investor meetings.

In a separate statement, the BoI said that it also signed an MoU with BDO Unibank, Inc. to jointly organize investment seminars, promotion missions, and business matching activities.

Under the MoU, a platform containing guidelines for doing business in the Philippines, industry information, investment projects of interest, and investment promotion programs will be set up.

“Our goal is not just growth, but we aim to transform the Philippine economy. What matters most is the path we take to achieve this, and that means empowering the private sector with market-based tools,” Mr. Rodolfo said.

“This is why our partnership with the country’s largest universal bank is so crucial to us,” he added.

The partnership marks the first MoU signed by the BoI with a Philippine bank for investment promotion.

“It is our hope that this collaborative initiative with the Department of Trade and Industry and BoI to promote more investment will further fuel and drive the growth of the Philippine economy,” BDO Executive Vice-President and Group Head for Institutional Banking Group Charles M. Rodriguez said.

“We look forward to the successful execution of our initiatives,” he added. — Justine Irish D. Tabile

Retired general appointed chairman of BCDA board

THE Bases Conversion and Development Authority (BCDA) said it appointed Retired Police General Thompson C. Lantion as the new chairman of its board of directors.

In a Facebook post on Tuesday, the BCDA announced the appointment of Mr. Lantion, who was the secretary general of the Partido Federal ng Pilipinas.

He will be replacing former defense secretary Delfin N. Lorenzana, who held the post for near three years.

Serving as defense secretary between 2016 and 2022, Mr. Lorenzana also held directorships at Heritage Park Management Corp., Fort Bonifacio Development Corp., North Luzon Railways Corp., and the Subic-Clark Alliance for Development Council.

He also held positions at Bonifacio Estate Services Corp., Bonifacio Global City Estate Association, Bonifacio Arts Foundation, Inc., Filinvest BCDA Clark, Inc., and the Philippine Japan Initiative for CGC, Inc. Under Mr. Lorenzana, BCDA booked a P3.7-billion net profit last year, up 20.6%. — Justine Irish D. Tabile

PAGCOR expecting nearly 2,000 slot machines for Casino Filipino

THE Philippine Amusement Gaming Corp.’s (PAGCOR) casinos trading under the Casino Filipino brand will receive around 2,000 new slot machines by mid-September, the regulator said on Tuesday.

PAGCOR Chairman and chief executive Alejandro H. Tengco said at a forum: “As we prepare for the planned privatization of PAGCOR casinos, we intend to increase their value by modernizing our gaming facilities and equipment to make them more attractive to potential investors.”

The new slot machines are expected to enhance Casino Filipino’s profitability.

According to PAGCOR, 3,341 new slot machines overall have been ordered for Casino Filipino sites. The first batch, consisting of 1,968 units, will be arriving within the week.

PAGCOR has said it plans to begin privatizing government-operated casinos by May 2025. Some 45 Casino Filipino properties will be included in the sale.

Mr. Tengco also noted that more integrated resorts will be opened in key destinations over the next few years.

PAGCOR reported that gross gaming revenue (GGR) rose 32.32% in the second quarter, led by the electronic games (e-Games) business.

Revenue generated by the e-Games segment rose 525% to P30.85 billion, PAGCOR said.

Licensed casinos generated P49.48 billion in the second quarter, providing the second-largest contribution to GGR. — Beatriz Marie D. Cruz

Egg industry dev’t program to feature storage projects

THE Department of Agriculture (DA) said it will pursue storage, processing, marketing, and waste management projects for the egg industry.

“The Egg Industry Development Project (EIDP) is aimed at sustaining the growth of the egg industry by providing support for modernization; overcoming challenges in the egg sector; and ensuring biosecurity and availability of healthy eggs,” the DA said in a memorandum circular.

The DA said eligible beneficiaries for cold and dry egg warehouses are Farmer’ Cooperatives and Associations (FCAs) located in major producing regions with experience in executing such projects. Funding of P50 million may be granted.

Eligible FCAs seeking to establish an egg processing facility may be allocated between P5 million and P50 million.

FCAs and local government units (LGUs) in major producing regions may also be granted up to P30 million in market support for small-scale egg producers. The uses for such funds include delivery vehicles and other logistics items.

Eligible FCAs are those that can assist poultry farmers in waste management and are endorsed by LGUs.

The projects will be overseen by the Livestock Locally Funded Project Steering Committee and supported by DA livestock agencies and regional field offices.

The program’s technical working group will review and evaluate proposals for facilities.

“To ensure sustainability, DA shall lead the promotion of the egg products and crafting of an inter-agency agreement with the various government agencies, LGUs and relevant stakeholders to utilize eggs in feeding programs and calamity programs,” the DA said.

It added that program participants will have access to the KADIWA store network. — Adrian H. Halili

Transport dep’t urged to abandon stalled foreign-funded projects to save on fees 

THE Department of Transportation (DoTr) must make prompt decisions on abandoning stalled foreign-funded projects to save on commitment fees, a senator said.

“We have a lot of foreign assisted projects, and I think it is high time to decide whether we are going to continue or stop these projects for good. Because there are stalled projects that were funded pending review, and we continue to pay commitment fees. It is time to cut our losses,” Senator Maria Lourdes Nancy S. Binay told the Committee on Finance on Tuesday.

The Senate flagged the continued payments on projects that have been delayed or remain under review, like the Cebu Bus Rapid Transit (BRT) line.

The DoTr is seeking a budget of P180.89 billion for 2025 to fund flagship rail, aviation, maritime, and road projects.

“The Cebu Bus Rapid Transit phase one is ongoing, we just encountered problems on one station because of the complaint of the provincial government,” Transportation Secretary Jaime J. Bautista said.

Mr. Bautista said the Cebu BRT phase 1 will be operational within the year as construction is nearly complete.

The Cebu BRT forms part of the DoTr’s flagship initiatives outlined in the National Expenditure Program for 2025.

The DoTr has said that the timeline for the launch of the Cebu BRT’s full operations has been pushed back to 2027.

The Cebu BRT is a 13.8-kilometer line with 17 stations, one terminal and one depot.

Once completed, the Cebu BRT system is expected to serve up to 160,000 passengers a day.

“There is another project, the EDSA greenways, it is the same. The payment of commitment fees continues while we are still reviewing the projects being implemented. It is a loss,” she said.

Mr. Bautista said the EDSA Greenways project is now undergoing review by the National Economic and Development Authority, which must sign off on the expected change in cost.

The P8.79-billion EDSA Greenways involves the construction of elevated walkways at four mass transit stations — Balintawak station of Light Rail Transit (LRT) Line 1, Cubao station of Metro Rail Transit Line 3 (MRT-3), Guadalupe station of MRT-3, and Taft station of MRT-3 and LRT-1.

The project was initially set for completion in 2022, and been pushed back to November. Further delays are expected.

“For EDSA Greenways, there are issues on the right of way, specifically the relocation of utilities. Because of that there will be an increase in cost,” Mr. Bautista said. — Ashley Erika O. Jose

VP Sara snubs House committee as 2025 budget hearing resumes

VICE-PRESIDENT SARA DUTERTE-CARPIO FACEBOOK PAGE

By Kenneth Christiane L. Basilio, Reporter

VICE-PRESIDENT Sara Z. Duterte-Carpio on Tuesday pulled a no-show to the scheduled resumption of the congressional briefing on the Office of the Vice President’s (OVP) spending plan, drawing the ire of lawmakers looking to question its proposed P2.02-billion budget.

In a letter, dated Sept. 10, Ms. Duterte-Carpio reiterated that her office will defer to the discretion of the House of Representatives, leaving it to the chamber to decide on the 2025 OVP budget. The letter was addressed to Speaker and Leyte Rep. Ferdinand Martin G. Romualdez and Party-list Rep. Elizaldy S. Co, chairman of the appropriations committee.

“We defer entirely to the discretion and judgment of the Committee regarding our budget proposal for the upcoming year,” the letter read in part. Not one official from the OVP attended the congressional hearing.

In a statement, Mr. Co said the panel will recommend that some OVP funds for social services be transferred to line agencies, such as the Department of Social Welfare and Development, and the Department of Education.

Citing the poor track record of the Vice President in handling public funds, as seen in the P125-million confidential and intelligence funds (CIF), Mr. Co reconsidered whether to grant the OVP P2 billion for next year.

“Amid all these funds misuse and apparent corruption, should we still entrust her with another P2 billion in 2025?” he said in a statement. “Now, should we give her P2 billion that she claims the OVP will use to help the poor? We should give this instead to the right agency.

Party-list Rep. Raoul Danniel A. Manuel recommended to slash the OVP’s budget to P128 million from P2 billion, citing redundancies in the office’s proposed spending plan with other government agencies.

Teodoro A. Casiño, chairperson of political group Bagong Alyansang Makabayan, told BusinessWorld before the budget briefing that “almost 80% of the OVP’s budget is for projects that are not under the purview of the office.”

The OVP has a P2-billion budget under the 2025 National Expenditure Program, an 8% increase from the P1.9 billion budget for this year.

SECOND CHANCE
The House appropriations committee, which oversees matters concerning the government’s spending, deferred the OVP’s budget in late August after she refused to answer the inquiries of congressmen directly, opting to instead repeat a canned response.

In the Aug. 27 hearing, the Vice President was asked by the panel to explain P73.3 million of the P125-million OVP CIF in 2022, flagged by state auditors due to the lack of documents supporting the spending.

In 2022, the OVP reportedly spent P125 million within 11 days back, generating controversy among the public. Ms. Duterte-Carpio did not answer questions about the secret funds, noting the 2025 OVP budget request did not include CIF funds.   

“Even though we gave the Office of the Vice President a second chance… to explain the budget… she decided to boycott us,” Deputy Minority Leader and Party-list Rep. France L. Castro said in Filipino.

“I don’t recall any government agency or executive branch ever boycotting Congress during budget hearings and deliberations.”

The absence of OVP officials from the hearing was deemed as “unconstitutional” anew by Manila Rep. Bienvenido M. Abante, Jr., asserting Congress’ power of the purse.

“My goodness, without the presence of any of the officers and officials of the Vice President, we are facing a blank wall here,” he told congressmen in the same hearing.

“Being a collegial body, as given the mandate by the Constitution to brief and ask questions concerning the budget, the fact that the head of the agency is not here today, is… I think unconstitutional,” he added.

PARLIAMENTARY COURTESY
Party-list Rep. Rodante D. Marcoleta argued the panel should instead exercise parliamentary courtesy to Ms. Duterte-Carpio, a congressional privilege traditionally extended to the Office of the President and the OVP.

“I have observed a tradition. The tradition is the two highest positions of government, namely the Office of the Vice President and the Office of the President, are not traditionally subjected to questions. I have observed this for so long a time,” Mr. Marcoleta said.

He sought to terminate the proceedings on the OVP budget, but his motion was rejected with 45 panel members voting against the motion. This outnumbered three votes in favor of the motion to end the OVP budget briefing.

Accountability should be prioritized over the House’s parliamentary courtesy to the country’s top executive officials, Hansley A. Juliano, a political science lecturer at the Ateneo de Manila University, said in a Facebook Messenger chat.

“The best recourse they have is to void or decide on their own what the appropriate budget for the OVP will be if Ms. Carpio will not cooperate,” he said.

EO places irrigation agency under President’s office

PHILIPPINE STAR/BOY SANTOS

PHILIPPINE President Ferdinand R. Marcos, Jr. has issued an executive order (EO) placing the National Irrigation Agency (NIA) under the Office of the President from the Department of Agriculture (DA).

Under EO No. 69, which was signed on Sept. 5 and released on Tuesday, the irrigation agency would be transferred to the Office of the President to “streamline and rationalize the functional relations of agencies… in order to promote coordination, efficiency and coherence within the bureaucracy,” based on a copy of the order uploaded to the Official Gazette.

The agency had been under the Office of the President since it was established in 1963, before being moved to the DA in 1992.

“Irrigation management and development are vital towards achieving food security and ensuring infrastructure development in the country, which are among the Administration’s priority initiatives,” according to the EO.

Philippine Senators have chided the NIA for slow progress in state irrigation efforts, as they also raised concerns about rigged public bidding in carrying out its projects.

NIA Administrator Eduardo G. Guillen has said his agency only completed 68% of its national irrigation development commitments as of last year, servicing an estimated 2.11 million hectares, with 1.1 million hectares yet to be irrigated.

Mr. Marcos also ordered the Governance Commission for government-owned or -controlled corporations to study the reorganization of the NIA board of directors.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. welcomed what he described as a “strategic move” to attain a modern and more productive farm sector.

“Under normal circumstances, NIA should be under the DA,” Secretary Tiu Laurel said in a statement.

“However, given the urgent need to irrigate over a million hectares of land to boost agricultural productivity, especially for rice, President Marcos made a strategic—possibly a game-changing—move that would ensure that NIA receives the substantial funding necessary to fulfill this crucial mandate swiftly.”

Mr. Tiu Laurel said the transfer will address the urgent need for substantial funding to irrigate approximately 1.2 million hectares of land. He noted that the DA had proposed a budget of P512 billion for next year, which includes plans to roll out more irrigation projects. This was however reduced to P200 billion in the National Expenditure Plan for 2025.

In transferring the NIA, Mr. Tiu Laurel said the government is aiming to mobilize additional funds to accelerate irrigation projects and improve agricultural outcomes. This is expected to “significantly” enhance food production, particularly rice.

Under next year’s proposed P6.352-trillion national budget, P24.6 billion will go to irrigation services.

In his third address to Congress, the President pushed for more irrigation dams and bulk water projects to ensure sources of usable water for local communities.

A farmers group, however, questioned the intention of the NIA transfer. “If the goal is to advance the irrigation system to help ensure the country’s food security, why move it?” Bantay Bigas Spokesperson Cathy L. Estavillo said in a Viber message in Filipino.

“He could direct the NIA to fulfill its mandate and programs, such as ensuring that funds are used for irrigation canal development and implementing free irrigation for all Filipino farmers.”

She added that, the privatization of dams has intensified, benefitting only private entrepreneurs and foreigners. — John Victor D. Ordoñez with reports from Adrian H. Halili

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