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Farm growth fuels Q2 GDP hopes

FARM OUTPUT last quarter turned around from a year-ago decline, growing faster than January-March’s expansion due to the past year’s low base, the Philippine Statistics Authority (PSA) reported on Tuesday ahead of its gross domestic product (GDP) report tomorrow.

PSA said value of agricultural production — which has historically contributed a 10th to GDP and a fourth to the country’s jobs — grew by 6.18% in the second quarter, faster than the preceding three months’ 5.28% pace and turning around from the 2.21% contraction recorded in April-June 2016.

The second quarter took the farm sector’s first-half growth to 5.71%, also a turnaround from the 3.39% contraction recorded in 2016’s first six months.

The Department of Agriculture had earlier given a five-percent growth estimate for second-quarter farm output growth.

Farm sector expansion is now expected to have added impetus to second-quarter GDP growth — which Socioeconomic Planning Secretary Ernesto M. Pernia has estimated to approach seven percent — together with bigger state spending, continued recovery of merchandise exports and strong household consumption.

The crops subsector, which contributed 50.75% to total farm production value last quarter, grew by 11.72%, compared to a 4.98% year-ago drop.

In terms of volume, palay — which contributed about 17.55% to total value of farm output — grew 11.72% annually to 4.15 million metric tons (MT), while corn — which contributed 4.31% — surged 45.97% to 1.33 million MT.

Farm growth fuels Q2 GDP hopes

 

Second-quarter performance made palay and corn output grow by 12.06% to 8.569 million MT and by 30.7% to 3.696 million MT, respectively, last semester.

In a separate July-round Rice and Corn Situation and Outlook report released also yesterday, the PSA said the fourth quarter may see a 3.58% hike in palay output to 7.263 million MT, making production this semester grow 6.76% year-on-year. Palay output is now projected to grow by 9.058% to 19.224 million MT this year from 2016’s 17.627 million MT.

The PSA gave third- and fourth-quarter projections for corn output: a 1.23% dip to 2.63 million MT and 2.04% drop to 1.693 million MT, respectively. Corn output is now expected to fall by 1.55% this semester but still grow 11.08% for the full year. The PSA blamed projected contraction this semester on “frequent rainfall during growth stages” of the grain and “farmers’ apprehension of the peace-and-order situation in the Autonomous Region in Muslim Mindanao”.

Last quarter also saw value of production of fisheries (16.84% of the total), livestock (16.38%) and poultry (16.02%) drop 2.93% and 1.38%, as well as increase by 8.36%, respectively.

Sought for his own projection of farm output performance this semester, Rolando T. Dy, executive director of the University of Asia and the Pacific’s Center for Food and Agri-Business, said in a mobile phone message yesterday that growth will likely slow “to a maximum of four percent”, still building on last year’s low base as the sector recovered from an earlier prolonged El Niño-induced dry spell. — Janina C. Lim

Remittances in June biggest in three months

By Melissa Luz T. Lopez
Senior Reporter

MONEY SENT HOME by overseas Filipino workers (OFWs) — a driver of household spending that contributes more than 73% to gross domestic product (GDP) — grew faster in June to hit a three-month high amid strong deployment, the central bank said yesterday.

Cash remittances grew by 5.7% to reach $2.467 billion that month, rising 5.7% from the $2.334 billion posted in June 2016. It also picked up by 6.8% from May’s $2.31-billion inflow and is the highest since the record-high $2.615 billion in March, according to data of the Bangko Sentral ng Pilipinas (BSP).

In a statement, the central bank said the bigger remittances came on the back of steady growth seen in amounts sent by land-based OFWs that rose by 3.8% to $1.9 billion, coupled with a 13.3% jump from those working at sea.

For that month alone, cash transfers from Filipinos in the United States and the United Arab Emirates posted the biggest increases, each contributing 1.9 percentage points to growth.

June inflows brought the first-semester tally to $13.813 billion, up 4.7% from $13.192 billion recorded in 2016’s comparable six months.

The BSP attributed the steady growth in remittances to “stable” demand for workers, with 1.14 million OFWs deployed as of end-June.

One analyst said Filipinos likely chose to send more money home to help their families meet school-related expenses as classes opened in June, and as they sought to get more out of their earnings with the weaker peso.

“We estimate the peso to have depreciated by 1.4% in June alone. This may have probably induced OFWs to take advantage of the stronger US dollar vis-à-vis the peso by remitting more,” said Angelo B. Taningco, economist at Security Bank Corp.

“I think remittance growth could rise further in the subsequent months on the back of a peso depreciation and steady demand for OF workers abroad.”

The peso traded around P49 to the greenback earlier that month, but has hovered weaker than P50 to the dollar since June 20.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, added that the robust growth in remittances likely fueled faster GDP growth last quarter. The government is scheduled to report second-quarter GDP data tomorrow. “This robust increase… continuously supports household consumption and consequently boosts domestic investment. Looking at Q2 GDP growth, the sustained increase of remittances more likely quickened the anticipated uptick in domestic economic expansion.”

The BSP expects remittances to git a record-high $28 billion this year, four percent more than last year’s $26.9 billion.

Remittances in June biggest in three months

Economic managers pitch PHL opportunities to investors in Singapore

ECONOMIC MANAGERS of President Rodrigo R. Duterte flew to Singapore this week to woo more foreign firms to invest in the Philippines, branding the country as Asia’s “next economic powerhouse” with fresh opportunities for growth, particularly in infrastructure.

Finance Secretary Carlos G. Dominguez III, Socioeconomic Planning Secretary Ernesto M. Pernia and Budget Secretary Benjamin E. Diokno, as well as Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. made the case before a group of investors in Singapore on Tuesday, the government’s Investor Relations Office (IRO) said.

Executive Secretary Salvador C. Medialdea also joined the team of technocrats.

The top Philippine officials assured the foreign business community that gross domestic product (GDP) growth will remain on an upward trend, approaching or hitting the 7-8% annual target set by the government over the next five years compared to 2010-2015’s 6.2% average.

The Cabinet members specifically pitched the P8.44-trillion ($170 billion) infrastructure spending plan as the biggest pocket of opportunities for businesses to cash in.

“Upgrading infrastructure is seen to boost economic productivity and enhance connectivity that will cut down the cost of doing business,” Mr. Diokno said in a separate statement yesterday, describing the “Build, Build, Build” blueprint as the “boldest” plan that the country has ever laid out.

Having more investments in the Philippines spells additional jobs and capital to support business expansion and opportunities for locals.

FUND RELEASES ‘ON THE DOT’
Mr. Diokno also allayed fears of slow disbursements and low absorptive capacity among state agencies, noting that underspending has been trimmed to 3.6% of the total budget versus 12.8% in 2015.

For the first semester, fund releases have been “practically on the dot,” the Budget chief said.

Apart from infrastructure, gains made via higher spending on social services and stronger household spending should help fuel economic growth momentum, alongside increased factory output, real estate and other construction activities, wholesale and retail trade, tourism and business process outsourcing sales, the IRO said.

Such support is expected to keep the Philippines in the ranks of Asia’s fastest-growing economies and will bring the country to upper-middle-income status by 2022, as targeted by the current administration.

For his part, the central bank’s Mr. Espenilla said that the Philippines can “sustain high growth supported by sound macroeconomic management” and can withstand global volatilities with its “domestic sources of resilience.”

The current administration targets robust economic growth that will in turn translate to lower poverty and unemployment rates among Filipinos by 2022, when Mr. Duterte ends his six-year term.

The government hopes to trim by 2022 the poverty incidence to 14% from 21.6% in 2015 and unemployment rate to 3-5% from 5.5% last year. — Melissa Luz T. Lopez

Higher metals prices boost value of PHL output

THE Mines and Geosciences Bureau said the value of metals produced in the first half rose 4.27% from a year earlier, after miners obtained higher prices for their output.

In a report sent to journalists on Tuesday, the bureau said the value of metals output in the six months to June totaled P50.81 billion, up from P48.73 billion in the same period last year.

“The upside during the period, despite the listless mine output of the metals with the exemption of MNCS (mixed nickel-cobalt sulfide), was the more favorable metal prices year on year,” the report said.

“Nickel ore went up to $4.39 per pound from $3.92 per pound while precious metals gold and silver enjoyed an improvement of 1.69% and 9.91%, respectively,” the report added while noting that prices were primarily driven by stronger demand from China’s infrastructure and manufacturing sectors coupled with supply disruptions from the world’s key copper and nickel mines.

Gold accounted for 45.04% or P22.89 billion, up slightly from P22.69 billion a year earlier as prices of the yellow metal rose to $1,238.46 per troy ounce from $1,217.85 a year earlier.

The Masbate Gold Project of Filminera Mining Corp./Philippine Gold Processing and Refining Corp. and OceanaGold Philippines, Inc. in Cagayan Province were the country’s major gold producers, accounting for 56% of the total output, or 6,471 kilograms produced during the period.

Contribution of nickel ore directly shipped and mixed sulfides followed with 36.32% or P18.45 billion, followed by copper with 17.63%, or P8.96 billion  

The value of directly shipped nickel ore declined to P8.37 billion with output at 8.64 million dry metric tons (DMT).

The value of mixed nickel-cobalt sulfide surged to P10.08 billion on production of 46,444 DMT.

The remaining 1.01%, or P0.51 billion, was shared by silver and chromite. — Janina C. Lim

Central bank likely to hike rates within 2017 as inflation picks up

By Melissa Luz T. Lopez,
Senior Reporter

THE Bangko Sentral ng Pilipinas (BSP) will still have to raise interest rates by yearend to keep up with faster inflation, analysts at BMI Research said, as they expect prices to rise by as much as 4% later this year.

The Fitch Group unit has said that the central bank is likely to hike rates once within 2017, although lower than the two increases it was previously projecting.

If realized, the projected increase of 25 basis points (bp) would be the first in three years since September 2014.

This will be followed by another 25bp hike in 2018, the research firm said, taking the cue from BSP Governor Nestor A. Espenilla, Jr. who has said the monetary authority is in no rush to tighten its policy stance.

“Inflation in the Philippines inched up to 2.8% year-on-year in July, from a downwardly revised 2.7% in the previous month, and we expect price pressures to continue to rise over the coming months for several reasons,” BMI said in a report released yesterday.

The BSP kept borrowing rates steady during its review last week, noting that inflation remains benign and with domestic activity fairly robust. It kept the overnight lending rate 3.5%, the overnight reverse repurchase rate at 3%,  and the overnight deposit rate at 2.5%. Reserve requirement ratios imposed on banks were likewise kept steady.

This, even as it raised its full-year inflation forecast to 3.2% from 3.1% previously to factor in the uptrend in global crude prices. As of July, headline inflation averaged 3.1%, well within the 2-4% target band.

Apart from inflation, BMI analysts pointed to robust loan growth — which clocked in at 19% in June — alongside higher public spending on infrastructure and the tax reform program which could push prices upward, enough to warrant the BSP’s intervention.

“Taken together, these factors inform our forecast for inflation to rise to 4.0% by the end of 2017,” the research unit added.

Introducing higher interest rates could likewise ease further capital outflows, as investors would not have to flee to other markets as margins in the Philippines pick up as global interest rates trend higher. Otherwise, foreign funds will likely head for the exit.

“While the BSP could certainly keep rates low to facilitate the government’s expansionary fiscal plans, this would risk further capital outflows and jeopardise macroeconomic stability,” BMI Research said.

Mr. Espenilla has said that the central bank would not have to move in sync with the Federal Reserve even after the two rate hikes introduced by the US central bank during the first half of 2017, noting that domestic inflation and other local indicators remain to be their biggest concern more than global developments.

He also said the recent weakness of the peso should not be a cause of alarm, as the BSP remains armed with enough buffers to prevent a “free fall.”

On Monday, analysts at ANZ Research said “intensifying” imbalances in the economy, particularly the robust pickup in bank lending and the widening gap in external trade, have been weighing on the exchange rate, which may be addressed through monetary policy tweaks.

PXP Energy revives talks with Chinese counterparts

By Victor V. Saulon, Sub-Editor

PXP Energy Corp. had talks “fairly recently” with counterparts in China ahead of the lifting of a moratorium on oil exploration in the West Philippine Sea, the chairman of the company said on Monday.

“Mukhang mas (It looks more) hopeful based on the statements made by the government, principally [Foreign] Sec. [Allan Peter S.] Cayetano. Hopefully we could push it forward,” PXP Energy Chairman Manuel V. Pangilinan told reporters on the sidelines of Tuesday’s signing of a joint venture between a firm that he also chairs and a local water district.

He was referring to the secretary’s pronouncements that the country would have a more open relationship with China ”that sets the more friendly context” under which the company should be able to push the discussions forward. 

He declined to say when the discussions took place or whether these were with the Chinese government or with China National Offshore Oil Corp. (CNOOC), the company that PXP Energy and its partners had initially held talks with.

“These are ongoing [talks]. It’s good to keep [these] under wraps,” Mr. Pangilinan said. “Let’s leave it at that. These are very private discussions.”

“The first step for us is, there’s a moratorium, right? So we cannot do anything in the concession area. So the first order of the day is to lift the moratorium,” he said. “But even if the moratorium is lifted, can we send our boats there and oil rig. We have to talk to the Chinese.”

He confirmed that his group had talks with Chinese counterparts, and described the tone of the discussions as “good, positive.”

Mr. Pangilinan’s comments come after the Department of Energy (DoE) said a new contracting round was planned for petroleum and coal as it hopes to create wealth for the industry to fund more energy development projects.

Last month, DoE officials said they were targeting December as the launch of the contracting round, the sixth time that the department will be holding a transparent and competitive system of awarding service contracts for petroleum and coal prospective areas. The move is hoped to result in the discovery of new energy reserves.

The department said the areas to be offered include parts of the West Philippine Sea, Sulu sea and areas around Palawan island. In the fifth round, the DoE offered 11 areas with a total scope of about 4.8 million hectares.

PXP Energy directly and indirectly owns 77.5% of Forum Energy Ltd., a London-listed company whose main asset is a controlling interest in offshore exploration Service Contract (SC) 72 west of Palawan island in the disputed seas. SC 72 is covered by the decision handed down by the Permanent Court of Arbitration in The Hague in the Netherlands on July 12, 2016.

The court ruled that Reed Bank, where SC 72 lies, is within the Philippines’ exclusive economic zone as defined under United Nations Convention on the Law of the Sea.

On March 2, 2015, the DoE placed SC 72 under force majeure because the contract area falls within the disputed area, which was the subject of the arbitration process.

Under the terms of the force majeure, exploration work at SC 72 is suspended from Dec. 15, 2014 until the DoE notifies Forum Energy that it may continue drilling. 

The Philippines is pressed to find new natural gas reserves as the Malampaya field off Palawan island is expected to begin running out by around 2022 to 2024. The natural gas project is said to deliver up to 20% of the country’s electricity requirements.

Senate tackles today Uber’s suspension with LTFRB officials

By Patrizia Paola C. Marcelo

THE Senate is set to hold a meeting today, Aug. 16, with officials of the Land Transportation Franchising and Regulatory Board (LTFRB) amid the latter’s order suspending Uber Philippines (Uber Systems, Inc.) which the agency upheld after denying the company’s motion for reconsideration (MR).

Uber had suspended its operations as of Tuesday morning but was back on the road by about noontime after it had filed a motion for reconsideration on the month-long suspension order.

But by the end of the day, LTFRB denied the motion, thereby keeping its order in effect.

The LTFRB on Monday suspended Uber’s accreditation of Uber, following what the LTFRB deemed a violation of its July 26 order directing ride-sharing platforms or transport network companies (TNCs) to stop accreditation and activation of its transport network vehicle service (TNVS).

“We do not say the MR to be invalid. The issue is whether the Order will stand. Yes it will stand as it is,” LTFRB Chairman Martin B. Delgra III said in a press conference yesterday.

“While we are in the process of treating the MR, the Order still stands,” Board Member Aileen Lourdes A. Lizada for her part told reporters.

In contrast, when Uber filed its first motion for reconsideration regarding the July 26 order, the LTFRB did not implement accordingly the said order.

Mr. Delgra said on Tuesday: “[Uber] said that ‘we are still accepting applications.’ From their own statement, they already had violated the July 26 (order)…The July 26 order was very clear, that even the acceptance of applications (is not allowed).”

In an Aug. 2 hearing, Uber explained that they only accepted applications but did not accredit or activate the said applications. But this was disputed by the LTFRB in its order by Tuesday night denying the motion for reconsideration.

LTFRB said Uber motorists caught on the road will be fined P120,000 and their vehicles impounded for three months.

Mr. Delgra also said Uber’s reactivation on Tuesday was “akin to contempt.”

“Don’t challenge us too much, don’t tie our hands. Show some kind of respect to the board, show some respect to government,” Ms. Lizada, for her part, said.

LIZADA: ‘BE PATIENT’
Ms. Lizada said they will review Uber’s accreditation and continue with the technical working group (TWG) meetings.

She also said following Uber’s denied motion, “We want them to comply with the terms and conditions of their accreditation, and…even their business design says that they will comply with policies of LTFRB.”

Ms. Lizada also said she was aware of concerns among the riding public. “Be patient. We know your concerns…Trust us that we’re doing the right thing,” she said, adding: “There are TNCs who have approached us for accreditation.”

Uber, for its part, said in a statement following its denied motion: “We are disappointed with the LTFRB’s decision to deny our Motion for Reconsideration, and will comply with the Order. We look forward to urgently resolving this matter, and thank the public for its support over the last 24 hours.”

GRAB: NO ‘PREDATORY PRICING’
For its part, Grab Philippines (MyTaxi.PH, Inc.) asked its patrons for patience given Tuesday’s “unique situation,” with increased demand in bookings due to the suspension of Uber.

Grab Philippines country head Brian Cu said in a press conference on Tuesday that they saw a 10-15% increase in rides and a “larger jump in requests” that they were not able to fill.

“We ask the patrons of ride-sharing to bear with us as there has naturally been an increase in bookings made in the Grab platform,” a statement by the company also said in part.

Mr. Cu said the company has placed a surge cap of 1.4x (1.4 times the original fare for Grab trips).

“We’re not going to take this as an opportunity to cut down on incentives or increase prices,” he also emphasized.

“We are not going to do any types of predatory pricing, I want to assure the riding community of that,” Mr. Cu added.

SENATE TO MEET WITH LTFRB
Senators also weighed in on this matter, with Senator Ralph G. Recto saying in his statement a hearing will be called today by Senator Grace Poe, who heads the Senate committee on public services.

“LTFRB should give the public a tunnel-end vision on when this crisis will end. And most important, it should shorten the length of the tunnel, so that Uber can comply easily,” Mr. Recto also said, adding: “Again this is a standoff that needs to be arbitrated and refereed.”

“The LTFRB has a budget of P535 million this year. It should show taxpayers that it deserves every peso it gets,” Mr. Recto said further.

Senator Sherwin T. Gatchalian, for his part, said in his statement the suspension order “goes too far. It puts the burden of punishment on the shoulders of commuters who have already suffered enough.”

He added: “I am urging LTFRB to lift is accreditation ban and begin processing new TNVS applications from Grab, Uber, and other platforms. The primary goal of LTFRB should be to promote public safety and convenience.”

“During the Senate hearing, Grab and Uber demonstrated with clear evidence that demand for TNVS continues to surpass the existing supply of drivers. It is the government’s responsibility to the commuting public to ensure that this demand is adequately met.”

For his part, Paolo Benigno A. Aquino IV cited a previous Senate hearing on TNVS, where he said a consensus was reached with LTFRB. “I thought we were all on the same page to put our commuters first and to create a new regulatory framework for TNVS and taxis,” he said in his statement.

Senator Francis N. Pangilinan, in his statement, said in part: “As regulators, the LTFRB should be enabling and empowering, not prohibiting of the available technology that has in a way helped solve the lack of reliable, safe, and comfortable means of transportation for the Filipinos.”

“Let Uber operate pending resolution of the issues. We are willing to join any initiative at the Senate that would look into this matter,” he added.

Ms. Poe in her statement confirmed today’s “urgent meeting” at the meeting with LTFRB officials. She said the order “does not solve the problem, but further exacerbates the problem of having an utter lack of safe, reliable, and convenient transportation options for our people.

“The issue is not about road worthiness but one that involves a mere administrative violation, which should have merited a corresponding administrative penalty. The penalty should not further prejudice the public and place the riders’ wellbeing at risk by limiting their options,” Ms. Poe also said.

PALACE BACKS LTFRB
Malacañang for its part threw its support behind the LTFRB’s order, saying that Uber “unduly challenged” the board’s policies.

Presidential Spokesperson Ernesto C. Abella said that while the Palace “affirms” the benefits of services offered by TNCs like Uber, LTFRB was just implementing its job in “regulating common carriers.”

Mr. Abella, quoting the same words from the LTFRB order, said there must be a “balance” between “innovation and laws.”

“I said we do empathize with traveling public. It affects everyone, including us at times,” he said.

“On the other hand, that’s exactly why we wish that the LTFRB and the Uber situation should be completed as soon as possible. It should be addressed and resolved as soon as possible. It (Palace) understands the situation and therefore will support LTFRB,” Mr. Abella added. — with Ian Nicolas P. Cigaral

NBI files drug rap vs nine over P6.4-billion shabu shipment controversy

By Kristine Joy V. Patag
Reporter

NINE individuals, including two traders, tagged in the P6.4-billion illegal drugs shipment controversy now face drug charges at the Department of Justice (DoJ).

NBI
Edd Gumban/PHILIPPINE STAR

The National Bureau of Investigation (NBI) on Monday, Aug. 14, filed charges against businessman Chen Ju Long also known as “Richard Chen” and Dong Yi Shen aka “Kenneth Dong,” broker Mark Ruben G. Taguba II, Li Guang Feng aka “Manny Li,” Fidel Anoche Dee, Chen I. Min, Jhu Ming Jyun, Teejay A. Marcellana and Eirene May A. Tatad.

The nine are accused of violating Section 4 (Importation of Dangerous Drugs and/or Controlled Precursors and Essential Chemicals) of Republic Act 9165 or the Comprehensive Dangerous Drugs Act of 2002.

The NBI Anti-Organized and Transnational Crime Division (AOTCD) filed the 15-page letter complaint on Monday, but a copy was released to reporters only yesterday.

Messrs. Li, Dong, and Taguba, meanwhile, are facing a separate complaint for alleged violation of the Republic Act 9280 or the Customs Brokers Act of 2004.

“Subjects, through their indispensable cooperation, caused the importation of five wooden crates from China,” the NBI complaint reads.

Based on the results of the NBI probe, a shipment containing methamphetamine hydrochloride or “shabu” was seized by authorities in the Chen-owned warehouse of Philippine Hongfei Logistics Group of Companies in Valenzuela City.

The shipment, with the label of other commodities such as shoes and cosmetics, contains cylinders packed with a total of 605 transparent plastic bags of shabu.

Mr. Chen then tapped Mr. Li, a Chinese businessman, for the release of the shipment which is one of the latter’s businesses in the Philippines.

“[Mr.] Li approached [Mr.] Dong, and sought his help to find a broker who will handle the importation of clients,” the NBI recalled in its complaint. Through Mr. Dong, Mr. Taguba — who faced both houses of the Congress for their respective inquiries — and Mr. Marcellana acted as brokers.

Ms. Tatad, for her part, owns EMT Trading, which was said to be used by Messrs. Taguba and Marcellana as importer or consignee for the shipment. However, two Taiwanese nationals, Messrs. Min and Jhu, were identified by Chinese authorities as the real owners of the said shipment.

Mr. Dee, identified as the consignee of the delivery, was arrested by authorities upon receiving the shipment.

Mr. Taguba, in his testimonies before the House of Representatives and the Senate, claimed that five major officials of the BoC took bribes to facilitate his shipments. He identified them as Deputy Commissioner for Intelligence Group Teddy Raval, Manila International Container Port (MICP) District Collector Vincent Philip Maronilla, Customs Intelligence and Investigation Service (CIIS) Director Neil Estrella, MICP-CIIS District Intelligence Officer Teodoro Sagaral and Import Assessment Service (IAS) Director Milo Maestrecampo.

In a related development, Justice Secretary Vitaliano N. Aguirre II, together with NBI Deputy Director Vicente De Guzman, presented Mr. Dong to the media late afternoon yesterday, following his arrest by the NBI at the Senate where he attended Tuesday’s hearing on the controversial shipment.

Mr. Aguirre said the NBI “found out that he [Mr. Dong] has a pending warrant.”

“The case is for a rape under the Regional Trial Court of Parañaque,” Mr. Aguirre also said, adding: “At this point, we don’t have details of the case. The warrant was just issued last June 30, 2017.”

Mr. De Guzman, for his part, said the rape case is a “distinct and separate case as against the drug case that the Senate is hearing.”

“This is the personal case of [Mr.] Dong,” Mr. De Guzman added.

The NBI official said it is the NBI’s duty to do a background check on personalities involved in controversial cases, which led to the arrest of Mr. Dong yesterday at the Senate probe.

Mr. Dong’s lawyer, Karla Denise Frias, for her part, said her client is not hiding from the authorities on the case. She cited that “pending motions in court” on the said arrest of Mr. Dong.

Apart from Mr. Dong’s arrest on Tuesday, Senate blue-ribbon committee chairman Senator Richard J. Gordon briefly suspended the hearing into the smuggling of P6.4 billion worth of crystal meth or shabu to try and convince Customs Commissioner Nicanor E. Faeldon to respond to questioning by Senator Antonio F. Trillanes IV.

It was Mr. Faeldon’s first appearance at the inquiry after missing the last hearing when he was hospitalized for heart issues.

After Mr. Gordon’s opening statement, Mr. Trillanes asked Mr. Faeldon if there is corruption in the Bureau of Customs.

When Mr. Faeldon asked for 30 seconds to reply without interruption, Mr. Trillanes cut him off saying the question could be answered with a “Yes” or “No.”

Mr. Faeldon then clammed up, saying it would be “pointless for me to answer” questions from Mr. Trillanes, whom he accused of spreading “baseless” accusations and judging him in media.

Mr. Gordon appealed to Mr. Faeldon several times and then called a recess to speak to him privately when the Customs chief said he would answer questions from other senators except Mr. Trillanes.

The hearing resumed when Mr. Faeldon agreed to respond to Mr. Trillanes. — with a report by interaksyon.com

DoJ rejects complaint against dead Parojinogs

A COMPLAINT filed by police forces against slain Ozamiz City Mayor Reynaldo Parojinog, Sr. and his wife Susan Parojinog was rejected by default by the Department of Justice (DoJ) following the Revised Penal Code (RPC).

parojinog
Photo from Reynaldo Parojinog, Sr.’s Facebook page

Article 89 of the RPC cites that “criminal liability is totally extinguished by death of the convict,” but the Philippine National Police-Criminal Investigation and Detection Group Northern Mindanao (PNP-CIDG) issued a complaint against the deceased Parojinog couple.

In their complaint, the PNP-CIDG alleged that the Parojinog couple violated Republic Act (R.A.) 9165 or the Comprehensive Dangerous Drug Act of 2002, R.A. 10591 or the Comprehensive Firearms and Ammunition Regulation Act, and R.A. 9516 on Illegal Possession of Explosives.

The complaint is dated Aug. 11, almost two weeks after the bloody raid at the Parojinog residence in Ozamiz City last July 30. The Ozamiz mayor and his wife, together with 14 others, were killed in the course of that raid.

Police said they were implementing a search warrant issued by the Quezon City Regional Trial Court when they were shot at from the direction of the Parojinog home, prompting them to open fire.

Police thereafter seized several packs of suspected shabu, a caliber 5.7×28 Fredericksburg pistol, three rifle grenades, 58 live ammunition of caliber 5.7, a total of P362,440 in various denominations and one Lockvault diplomat model. The confiscated illegal drugs and firearms were the basis of the complaint against the slain couple.

In a related development, Ozamiz City Police Chief Inspector Jovie Espenido yesterday appeared at the Department of Justice (DoJ) for a hearing on the multiple murder and arbitrary detention complaint filed against him and three others in connection with that raid.

Others named respondents in the complaint are Chief Inspector Glyndo Lagrimas, Senior Police Officer 4 Renato Martir, Jr., and Police Officer 1 Sandra Louise Nadayag.

Investigating Prosecution Attorney Loverhette Jeffrey Villordon gave Mr. Espenido and the other respondents until August 29 to submit their counter-affidavit. — Kristine Joy V. Patag

Youth Commission to appeal for SK elections to push through

THE NATIONAL Youth Commission (NYC) will make an appeal to lawmakers to allow the elections for the Sangguniang Kabataan (SK), as well as the barangays, to proceed this year so that the youth sector can have “representation” in the creation of policies affecting them, NYC Chairperson Cariza “Aiza” Y. Seguerra said on Tuesday.

Both chambers of Congress are considering the postponement of the barangay and SK elections until May 2018.

In a press briefing at Malacañang, the NYC chief, when asked if the commission has plans to call on solons to permit the SK election to happen, said: “Of course.”

“Sa totoo lang po nalulungkot po ang National Youth Commission sa balitang yan because may ilang taon na rin po, wala pong tumatayo na SK chair at SK council (To be honest, the National Youth Commission is saddened by that news because it’s been years since an SK chair and SK council were elected),” the NYC chairperson said.

Ms. Seguerra claimed that “reforms” have been introduced to the SK to prevent a repeat of problems in the past such as conflicts in schedule between school and job obligations and the alleged influence of so-called “traditional politicians” or trapos to the young community representatives.

“So sana po kung ayaw nila ituloy ang barangay [election], maiintindihan namin. Pero sana kahit ‘yung SK naman. Sana po ‘yung SK ibigay na samin, (If they do not want the barangay election to push through, we understand that. But we hope they would allow the SK poll to happen).”

NYC was created under the administration of Fidel V. Ramos in 1995 through Republic Act (RA) No. 8044 or the “Youth in Nation-Building Act.” Under Section 6 of the law, NYC acts as “the policy-making coordinating body of all youth-related institutions, programs, projects and activities of the government.”

Last year President Rodrigo R. Duterte signed a law postponing the elections for barangay and SK officials to prevent the supposed proliferation of drug money at the barangay level, the smallest political unit under the Philippine government system.

In March, dismissed Interior Secretary Ismael D. Sueno reportedly disclosed that Mr. Duterte is pushing for a measure seeking not only to suspend the barangay and SK polls, but one that would give the President the power to appoint village chiefs.

But many lawmakers opposed such proposal, with some saying it is “unconstitutional” for Mr. Duterte to handpick new barangay officials.

The Commission on Elections has already started printing official ballots for the scheduled October 23, 2017 barangay and SK elections, and at the same time conducting public hearings around the country regarding the possible postponement. — Ian Nicolas P. Cigaral

DoJ arrests two for allegedly duping people to donate to Yolanda victims

By Kristine Joy V. Patag
Reporter

TWO individuals were arrested by government authorities for allegedly tricking people into donating to Yolanda victims, the Department of Justice (DoJ) bared on Tuesday.

In a statement yesterday, Justice Secretary Vitaliano N. Aguirre II said Desiderio T. Estinozo and Nestor O. Lehetemas were arrested by National Bureau of Investigation (NBI) Anti-Fraud Division Operatives in Malate, Manila for fraud.

“Based on the information provided to us by the NBI, the subjects are the alleged perpetrators of fraudulent acts involving around €100,000.00 or Php 6,000,000.00,” Mr. Aguirre said in the statement.

According to the DoJ, Messrs. Estinozo and Lehetemas hacked the email addresses of the Philippine Partnership for the Development of Human Resources in Rural Areas or PhilDHRRA, a network of Non-Government Organizations (NGOs), and Fundacion InteRed, a Spanish NGO, both of which are raising funds for Typhoon Yolanda-affected areas.

The agreement between the agencies said that Fundacion InteRed will provide funding for the project of PhilDHRRA that will help in repairing and rehabilitating damaged structures in three (3) island barangays in Guiuan, Eastern Samar.

But the DoJ said the suspects “were able to cause an amendment to the Memorandum of Agreement to facilitate a change in the banks involved in the fund transfer arrangement from the bank account of PhilDHRRA to the account of DTE Construction and Development Corporation in Cebu City.”

The DoJ also said a case for Estafa was filed against DTE Corporation and its president.

The warrant of arrest was issued by Davao City Regional Trial Court Branch 17.

Messrs. Estinozo and Lehetemas were brought to the NBI Headquarters in Manila for booking procedures.

Mr. Aguirre for his part said: “I commend the efforts exerted by our NBI agents involved in this case for their arrests of the respondents. Now we can make the wheels of justice move faster.”

Makati court orders Rufino-Prieto firm to vacate Mile Long property

By Kristine Joy V. Patag
Reporter

THE MAKATI Metropolitan Trial Court (MeTC) Branch 61 on Tuesday issued a Notice to Vacate to Sunvar Realty Development Corporation to leave the Mile-Long property along Amorsolo Street in Makati City.

Quoting a part of the dispositive portion of the resolution by the Makati MeTC Branch 61, Sheriff IV Robert T. Bautista issued a three-page Notice to Vacate that reads: “Ordering defendant Sunvar Realty Corporation and all those claiming rights under them, natural and judicial to vacate the premises they respectively occupy, particularly the subject premises described and covered by plaintiff’s Transfer Certificate Title No. (458365) located between Dela Rosa and Arnaiz Street in Legazpi Village, Makati City.”

“You are hereby given a period of three days from receipt thereof to surrender the possession of the above-described property with all the improvements existing thereon or vacate the premises within such given time, after which the undersigned will place the petitioner in actual and physical possession thereof to duly satisfy the Writ of Execution,” Mr. Bautista added.

Solicitor-General Jose C. Calida in a statement yesterday said he is ordering “Sunvar Realty, and all other tenants claiming rights under it, to surrender to the possession of the Mile-Long Property following the CA Resolution dated 14 August 2017.”

Part of the said CA resolution of the Former Fifth Division, Manila, reads: “Accordingly, a Writ of Execution is hereby issued to implement the Decision dated June 10, 2015 of the [Makati MeTC Branch 61] .”

“The said CA Resolution remanded the case back to Makati RTC Branch 141 and directed the sheriff to execute the 10 June 2015 Decision of Makati MeTC Branch 61, which ordered Sunvar to vacate the Mile Long property,” the OSG noted in a statement.

Mr. Calida, in a statement last July 28, claimed the Rufino-Prieto-owned real-estate firm continued to illegally occupy the government-owned commercial property without due payment to the government.

“Sunvar occupied the Mile-Long property on February 28, 1982. The lease agreement expired on December 31, 2002. Sunvar continued to occupy the property despite the expiration of the lease,” said a statement by the Office of the Solicitor-General (OSG), which also quoted Mr. Calida as saying:

“Since 2003 or for the last 14 years and 7 months, you have been squatting, illegally using and occupying the Mile-Long Property. Despite notices, Sunvar continued to remain in possession and collect millions of rentals from its tenants.”

Mr. Calida, yesterday, posted in his Twitter account a photo of him “executing” the said Notice to Vacate.

Sunvar, also July 28, released a statement to the media that disputed Mr. Calida’s allegations as well as his chronology of the Mile Long lease.

The company said it had entered into a P16.8-million sub-lease agreement with the government and renewed that lease in 2002 for another 25 years. “Sunvar likewise tendered payment of rentals for the extended period,” the company said.

Despite this, the National Power Corp. (Napocor), which originally leased the property to the the Technology Resource Center Foundation, Inc. (since dissolved and its functions assumed by the Philippine Development Alternatives Foundation [PDAF]), “informed PDAF of the non-renewal of the sub-lease….Sunvar responded that Napocor and the government must honor the lease agreement contract,” Sunvar’s statement said.

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