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Duterte hopes to reform AFP pensions by 2022

PRESIDENT Rodrigo R. Duterte wants to fast-track the establishment of a new pension scheme for military personnel and have it set up before he steps down from office.
Finance Secretary Carlos G. Dominguez III said that economic managers, together with officials of the Defense, Interior and Local Government, and Transportation departments met with Mr. Duterte last week to present the blueprint for the new pension fund for the military.
“We laid out to them the problem and the way to solve the problem. But we have to sit down together to work out the mechanism for solving this problem — which will involve turning over some of the real estate assets of the organizations to be able to set up a fund for the retirement which we are recommending be managed by the GSIS (Government Service Insurance System) separately from the current (pension fund),” Mr. Dominguez told reporters.
“The President asked us to move forward quickly and we have to make another presentation to him on the progress by the end of August,” he said.
The new fund as drawn up will continue the full benefits granted to current pensioners, while those currently in the service will be eventually required to pay monthly contributions to the pension fund, similar to the system for civilians, while new service members will be placed under a new pension regime.
“We hope not to leave the next administration with this problem because the last admin[istration] left us with this problem with no plan. At least we have a plan,” Mr. Dominguez said.
Budget Secretary Benjamin E. Diokno has said that the problem began during the Ramos administration, but no one since then has addressed it. He called the imbalance between the benefits due and the pension’s resources the “elephant in the room.”
Currently, military retirees’ monthly benefits are funded solely by government budget allocations, which take up two-thirds of the Department of National Defense’s budget, a share which is expected to grow further.
The monthly payouts to pensioners are indexed to the salaries of those in active service, which means that benefits will grow alongside increases in military salaries.
“It’s not sustainable over the long run. It’s already taking a toll because you cannot get it out of your budget. So far it’s affordable but pretty soon it won’t be affordable. So we are just anticipating a large problem,” he said.
The economic managers earlier targeted a new pension fund set up by 2019, which they said would cost P7 to P9 trillion. — Elijah Joseph C. Tubayan

Suggested retail price scheme for rice, other goods in the works

THE Department of Agriculture (DA) said it is expecting to impose a suggested retail price (SRP) scheme for basic agricultural commodities including rice and livestock products.
Agriculture Secretary Emmanuel F. Piñol told reporters on Wednesday that the DA will meet with stakeholders to finalize the price matrix for the SRPs.
“I will have to meet with the stakeholders maybe on Friday,” he said, adding that he hopes to release an SRP table soon after.
Mr. Piñol noted that the DA will be focusing on selected commodities, especially for livestock products where prices are volatile.
The DA and the Department of Trade and Industry (DTI) aired plans to impose SRPs on rice in April amid increasing prices due to the depletion of the low-cost rice inventory held by the National Food Authority.
Undersecretary for Operations Ariel T. Cayanan said that the DA is also hoping to tame volatility in some commodities which cannot be placed under an SRP regime, where alleged profiteering takes place at the level of processing.
“The processor can just slap on an increase in the price but the producers can’t hide it. But (producers) are the true stakeholders here.” — Anna Gabriela A. Mogato

Gov’t may need to finance natural gas infrastructure

THE GOVERNMENT may end up funding some components of the natural gas infrastructure as the required capital may be too large for a private company to undertake, an Energy official said.
“We believe that some portions of the infrastructure required to develop a downstream natural gas industry might have to be shouldered by the national government because the private sector might not be willing to undertake that investment,” said Leonido J. Pulido III, assistant secretary at the Department of Energy (DoE).
Mr. Pulido was referring to the transmission, distribution and supply of natural gas to power plant consumers — or what is called the downstream industry. He was reacting to proposed legislation at the Senate that seeks to develop that segment.
Introduced by Senator Francis G. Escudero, Senate Bill 765 calls for the development of the downstream natural gas industry, consolidating for the purpose all laws relating to the transmission, distribution and supply of the fossil fuel.
“What the Senate bill lacks would be to provide for some sort of funding mechanism for very critical, very large-scale projects such as pipelines that our third-party investors might not be willing to undertake,” Mr. Pulido said.
He also said that based on the DoE’s initial review of the proposed legislation, the department is recommending the inclusion of the development of the midstream industry or the importation of liquefied natural gas (LNG) in the bill.
He said the inclusion would provide an opportunity for the integration of the DoE’s department circular on the downstream natural gas industry, which was issued last year.
Mr. Pulido also proposed the provision of incentives not only to encourage investors to enter into the midstream portion of the natural gas value chain but also to sway existing petroleum-fueled facilities to convert to natural gas-fired power plants.
“We also would like to take that as an opportunity to put provisions that will address the growth of other sectors. Currently, the way it’s written, [the bill] focuses on power generation, and of course, the DoE wants to push for the use of natural gas in other sectors — transportation, industrial and so on,” he said.
In June 2017, Energy Secretary Alfonso G. Cusi said his department was looking at the construction of a common LNG receiving and distribution infrastructure, which he said could make the country an “LNG hub” for Southeast Asia.
He said the facility would cost around P100 billion for completion by 2020. The timeline should give the country enough lead time and safeguard it ahead of the anticipated depletion of the Malampaya gas find starting in 2024.
He said the facility would have an initial 200-megawatt (MW) power plant, storage, and liqeufaction and regasification units. The plant’s output is aimed to served the country’s economic zones, he added.
Mr. Cusi is in Japan this week to encourage natural gas companies in Japan to invest in the Philippines’ LNG hub project.
To date, natural gas from the Malampaya gas field off the coast of Palawan fuels five gas-fired power plants in Batangas province with a combined capacity of 3,211 MW.
Natural gas, said to be the cleanest fossil fuel, is usually transported through a pipeline, but if the deposit is large and the market is overseas, the gas may be liquefied for ease of shipping and moved via specialized tankers. Imported LNG is then regasified or reverted to its former state in the country of destination. — Victor V. Saulon

Pepsi bottler fined P11.8-M over unauthorized wells

THE Department of Environment and Natural Resources (DENR) has imposed a P11.8 million fine on Pepsi Cola Products Philippines, Inc. (PCPPI) for operating deep well pumps AT its Muntinlupa plant without permits.
In an order dated Tuesday, the National Water Resources Board (NWRB), a DENR agency, said it raised the penalty from P11.58 million initially.
The deep wells were discovered after a DENR task force and the Philippine National Police raided PCPPI’s plant last week.
The raid led to a partial closure of the facility’s operations.
NWRB Litigation and Adjudication head Archie Edsel C. Asuncion in a statement on Wednesday said that the increase in the fine stems from a P1,000 per day charge associated with the deep wells’ operations, which ran from Jan. 10, 2013 to June 11.
Undersecretary for Solid Waste Management and Local Government Unit Concerns Benny D. Antiporda in the same statement said the six deep well pumps were sealed to prevent further depletion of the groundwater.
“The sealing was done after the raiding team disconnected the riser and submersible pumps of the deep wells from the power supply and computer box,” he added.
Sought for comment, PCPPI told BusinessWorld that it cannot disclose further details of its ongoing case with NWRB.
“We are still in discussion with the Board and working on finding a speedy resolution on this issue,” the company said. — Anna Gabriela A. Mogato

Manage software assets to manage cyber threats

Software licenses comprise a huge chunk of the annual IT costs of an organization. However, in most cases, they are also investments that are improperly managed and tracked. As a consequence, a majority of organizations fails to realize the optimum benefits from these software licenses. In fact, due to their intangible nature, software licenses are often neglected or utilized only for their basic purpose.
With the huge pressure on IT management to cut down costs and rationalize IT expenditures, there is a growing trend to institutionalize a process that aims to manage software licenses. This process, known as Software Asset Management (SAM), has been established as part of the broader scope of IT Asset Management (ITAM) to integrate the policies, processes, technology, and people for managing software assets.
Aside from the more obvious reason of minimizing legal and contractual risks that may arise from the use of unlicensed software, companies who have implemented SAM across their organization have reaped huge benefits particularly in the areas of cost control and IT security.
With an effective SAM in place, an organization gains better understanding and visibility of its software environment, thereby minimizing redundant license purchases. For example, it is in better position to identify excess entitlements, which enable it to reallocate resources more efficiently to address future requirements almost on a real-time basis.
Furthermore, companies can obtain valuable insights to work towards standardization and identify if their existing software portfolio aligns with their business needs and direction. Better budget predictability is also established while unplanned significant license purchases are minimized. Another subtle benefit of SAM is gaining more negotiating power with software vendors by taking advantage of volume discounts.
With respect to IT security, SAM supports the logic that you can’t protect what you do not know. Hence, organizations must make it an imperative to have visibility over the assets they want to secure. A 2013 study by a global software company noted that 63% of unlicensed or pirated software contains malware programs. The proliferation of pirated software in the Internet coupled with poor SAM practices (e.g. indiscriminate download and installation of software) expose organizations to various security risks.
SAM is a critical aspect of an organization’s security program particularly because software is a primary target of cyber criminals. Often, the intrusion goes unnoticed for a long period and it is very difficult to trace the infection back to its source. With the growing threats to IT security, various regulations have been issued to ensure that an effective SAM is in place to mitigate the risks. One good example would be Circular No. 833 issued by the Bangko Sentral ng Pilipinas (the central bank of the Philippines that functions as the country’s central monetary authority) which provides additional guidelines on software acquisition for BSP Supervised Financial Institutions (BSFIs). The specific regulation mandates BSFIs to establish formal guidelines and procedures on the installation, use, maintenance, and retirement of acquired software.
Implementation of SAM depends on the size and complexity of the IT software environment of the organization. It can vary from adopting manual spreadsheet monitoring to sophisticated tools capable of doing license management, inventory and discovery, and data center management. Other SAM tools can even expand the scope to include mobile device management (MDM).
However, SAM is not only about selecting the appropriate technology. More importantly, it involves defining and establishing the right policies, procedures, and organizational structure to support the organization’s SAM operating model. Organizations who have yet to adopt SAM or even those that have SAM process in place can benchmark their SAM program against industry standards such as ISO 19770-1, CMMI, etc. The primary objective is not to gain certification or become the best in class but to be able to establish and sustain an optimal SAM program relative to the company’s assessment of the associated risks and rewards.
While SAM is a relatively new practice in the Philippines, the rise of various cloud technologies has changed the entire SAM landscape, making it even more complex yet essential. There are even IT vendors that offer programs with focus on software discovery and inventory, and high-level SAM maturity assessment.
SAM, as part of ITAM, must integrate policies, processes, technologies and people to effectively manage software assets. Hence, management must take the initiative in fully operationalizing governance for SAM. Chief Technology Officers must include SAM in their annual list of priorities. Ideally, companies must also have IT personnel who are well-versed in software license rights and limitations, as this would allow them to maximize the benefits from their software assets.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Mark Aurelius V. Bantay is a manager with the Forensics Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728 local 3236
mark.aurelius.bantay@ph.pwc.com

Peso weakens anew vs US dollar

THE PESO weakened due to ongoing trade tensions between the US and China.

THE PESO slid against the dollar on Wednesday as investors remain wary about trade tensions overseas and amid the decision of the local central bank to raise its interest rates.
The local unit ended the session at P53.48 against the greenback, four centavos weaker than the P53.44-per-dollar finish on Tuesday.
The peso opened the session stronger at P53.33 versus the greenback. It rose to as high as P53.31, while its intraday low stood at its closing rate of P53.48.
Dollars traded declined to $650 million from the $733.7 million tallied the previous day.
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said the local unit slid against the dollar on the back of continued market concerns over the trade spat between the United States and China.
“The market is still wary about the US-China posturing on equal trade,” Mr. Asuncion said in a text message on Wednesday.
Meanwhile, a trader noted the peso closed “relatively flat” despite being “generally stronger” within the day ahead of the Bangko Sentral ng Pilipinas (BSP) rate decision.
The local monetary authority raised benchmark rates by 25 basis points effective June 21. BSP Governor Nestor A. Espenilla said the rate-setting Monetary Board decided to hike as inflation expectations “remain elevated” this year.
“We’re also seeing more volatility in the exchange rate, which potentially adds to the dynamics on inflation that we need to be careful about,” Mr. Espenilla said.
May inflation accelerated to a fresh five-year high of 4.6% from the 4.5% logged in April. However, this was lower than the 4.9% expected by the market.
“After the rate hike, however, the market reaction was muted on the offshore peso market mainly because the move was already expected,” another trader said.
Michael L. Ricafort, head of the Economics and Industry Research Division of Rizal Commercial Banking Corp., said the BSP’s decision to hike rates, along with the slight decline in the US government bond yields, “could somewhat be positive for the peso.”
For Thursday, the second trader expects the peso to move between P53.30 and P53.50 versus the dollar, while the first trader and Mr. Asuncion gave a slightly wider forecast range of P53.20-P53.50. — K.A.N. Vidal

Shares near bear territory on overseas tensions

LOCAL EQUITIES tumbled on Wednesday, moving closer to bear territory amid rising tensions between the United States and China.
The benchmark Philippine Stock Exchange index (PSEi)extended its losing streak to a fifth day, dropping 0.69% or 50.99 points to 7,261.62 Wednesday, June 20. This is the lowest close since March 27, 2017, when the market finished at 7,245.97.
The broader all-shares index lost 0.48% or 21.49 points to 4,460.22.
“After peaking at 9,078 in January this year, the PSEi closed in the bear territory today after the trade tension between the US and China worsened this week. Investors have turned risk-averse towards the equities market since the trade rift between the two largest economies won’t do anything good for the global growth,” Timson Securities, Inc. trader Jervin S. de Celis said in a mobile message on Wednesday.
The PSEi will officially enter bear market territory should it close at 7,246.896, or a 20% drop from its record high of 9,058.62 recorded last Jan. 29.
Foreign funds continued to exit the market, with net foreign outflows reaching P772.56 million, slightly lower than Tuesday’s P867.92-million net sales.
Regina Capital Development Corp. Managing Director Luis A. Limlingan said local and regional developments kept the market on the sidelines, “with minimal value turnover and very few investors wanting to take a risk.”
Investors were also being cautious ahead of the Bangko Sentral ng Pilipinas’ meeting. The local central bank raised rates anew Wednesday, June 20, following a similar move in May in a bid to arrest future inflation and keep local yields competitive.
The Monetary Board raised policy settings by another 25 basis points (bp) during their fourth review for the year, the BSP announced after the market’s close. Rates now stand at 4% for the overnight lending rate, 3.5% for the overnight reverse repurchase rate, and 3% for the overnight deposit rate.
“I also think that investors would choose safer havens like bonds now that we are in an environment where most central banks are raising rates,” Mr. De Celis said.
The mining and oil sector was the lone sub-index that managed to eke out gains, rising 0.24% or 23.71 points to 9,706.84.
Holding firms led the decline, dumping 0.99% or 72.09 points to 7,179.16, followed by services which slipped 0.55% or 8.07 points to 1,436.35. Industrials shed 0.42% or 44.52 points to 10,509.51; financials went down 0.42% or 7.63 points to 1,808.40; while property dipped 0.29% or 10.64 points to 3,547.60.
Some 1.7 billion issues switched hands for a P5.33-billion turnover, slowing from the previous session’s P6.89 billion. Decliners trumped advancers, 103 to 92, while 45 issues closed flat.
Timson Securities’ Mr. De Celis said it is still unclear when the sell-off will end, given the continued exit of foreign investors from emerging markets. — Arra B. Francia

Aquino, Abad charged over DAP controversy

THE OFFICE of the Ombudsman has indicted former president Benigno S. C. Aquino III and former budget secretary Florencio B. Abad in connection with the controversial Disbursement Acceleration Program (DAP) midway into Mr. Aquino’s administration.
Ombudsman Conchita Carpio-Morales approved on June 14 the resolution, dated May 22, after finding probable cause for Usurpation of Legislative Powers.
In the resolution, the Special Panel partially granted a motion for reconsideration (MR) filed by Carlos Isagani T. Zarate, Renato Reyes, Benjamin Valbuena, Dante LA Jimenez, Mae Paner, Antonio Flores, Gloria Arellano and Bonifacio Carmona, Jr.
The Special Panel also denied Mr. Abad’s MR to reverse the Ombudsman’s decision on his criminal and administrative liabilities.
“(A) re-evaluation of the case establishes that the individual actions of respondent Aquino and respondent-movant Abad showed a joint purpose and design to encroach on the powers of Congress by expanding the meaning of savings to fund programs, activities and projects under the DAP,” the resolution said, as quoted in a statement by the Ombudsman.
The DAP, implemented through the National Budget Circular (NBC) 541, authorized the withdrawal of P72 billion in “unobligated allotments of agencies with low levels of obligations as of 30 June 2012.”
Certain provisions of the program had been flagged by the Supreme Court as unconstitutional, prompting Mr. Aquino to vent publicly on the ruling while his congressional allies threatened then Chief Justice Maria Lourdes P.A. Sereno with impeachment.
“It will be recalled that in 2014, the Supreme Court declared unconstitutional the following acts committed in pursuance of the DAP: (1) withdrawal of unobligated allotments from the implementing agencies; and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year without complying with the statutory definition of savings contained in the General Appropriations Act; and (2) the cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive Branch,” the Ombudsman’s statement said.
“Abad’s act of issuing NBC (National Budget Circular) 541 cannot be viewed in a vacuum. The evidence on record shows that an exchange of memoranda between (Aquino) and (Abad)] precipitated its issuance. Verily, without the approval of the said memoranda by respondent Aquino, NBC 541 would not have been issued,” the statement also said, citing the resolution.
The Ombudsman also cited “marginal notes” by Mr. Aquino on a memorandum dated June 25, 2012, which “specified his unqualified approval… to consolidate fiscal year 2012 savings/unutilized balances and its realignment…and… to withdraw unobligated balances of national government agencies for slow-moving projects/expenditures as of 30 June 2012 and its realignment.”
“Such marginal notes show meaningful discussion between respondents and not mere reliance of a superior on a subordinate,” the resolution noted further.
“It is thus clear that respondent-movant Abad sought the approval of respondent Aquino on both the request for authority to pool savings to fund the DAP and the request for omnibus authority to pool savings/unutilized balances. In both instances, respondent Aquino knowingly gave his approval. His approval prompted the issuance of NBC 541 which directed the withdrawal of unobligated allotments and unreleased appropriations and their declaration as savings, which is contrary to law,” the resolution cited by the Ombudsman’s statement also said.
The Ombudsman further noted that, “Under Article 239 of the RPC, the penalties of prision correccional in its minimum period and temporary special disqualification shall be imposed upon an executive or judicial officer who shall encroach upon the powers of the legislative branch of the Government, either by making general rules or regulations beyond the scope of authority, or by attempting to repeal a law or suspending the execution thereof.” — Charmaine A. Tadalan

Trade chief Lopez : Wage hike ‘dangerous’

By Arjay L. Balinbin, Reporter
TRADE SECRETARY Ramon M. Lopez on Wednesday said a wage hike is “dangerous” for the economy because of its impact on prices of basic goods, adding that companies may be forced to lay off employees.
Medyo dangerous po iyon (That is a bit dangerous); but I guess, just to address certain considerations, pinag-uusapan naman po iyon sa mga (that is being discussed by the) Regional Tripartite Wage Boards. But I would say medyo delikado po iyon (that’s a bit dangerous). Nevertheless, so let them handle the wage increases. What we’re saying… the more sustaining solution for wage increases would be more jobs to be created and more investments to come in — that’s the solution to increase wages,” Mr. Lopez said in a press briefing at the Palace.
Kasi ang problema ho natin sa wage hike (Our problem with the wage hike), [it is] mandated — again, we are referring to regional, not national. Even if we’re regional, there are of course… the reality is that, hindi po lahat (not all [regions] are) wage earners,” he also said.
Pag nag-increase tayo diyan, tataas ang cost; pag tumaas ang cost, baka ito rin magtulak ng presyo, tumaas ang presyo ng mga bilihin. And of course ang tatamaan, buong sambayanan, hindi lang iyong wage earners (If we increase the [wages], the cost will also increase, and it may also cause the increase in prices of commodities. And of course, everyone will be affected, not only the wage earners). So those who did not benefit from the wage hike will also get affected,” he said further.
He likewise said this may also have a direct impact on the employment. “Baka mabawasan ang (It may decrease) employment,” Mr. Lopez said.
Mr. Lopez pointed out that if the Filipino people are “successful in maintaining industrial peace, that there is peace and order, rule of law, no corruption, good business environment, investment should come in, create more jobs, and that will drive up wages.”
The official likewise noted that if there is going to be an increase in workers’ wages, it should be “minimal.”
“There can be consideration because of the inflation. So if you ask me, there can be a minimal adjustment. But that should not be more than what is necessary — maybe that’s the point — because you will really create a strong pressure on inflation. But again, it’s not for me, it’s not a national policy, we will let the Regional Tripartite Wage Board handle the different economic situation in the different regions,” he said.
For Mr. Lopez, the better way to increase workers’ wages is through “skills training.”
“[That] will make workers marketable,” he said. “Panawagan ko sa labor, gawing kooperatiba lahat ng actions natin. Para mas maraming investors. Wag nating takutin ang investors. At pakita natin may industrial peace. Ang mga Pilipino willing magtrabaho, masipag, magagaling, gusto pang mag training, kasi yun po ang importante eh. Para marketable tayo bawat isa. Doon tataas ang sweldo natin. Kesa humingi tayo ng wage increase.”
(I urge the labor sector to be cooperative in their actions, so that more investors will come in. Let us not scare the investors. Let us show them that there is industrial peace in the country, and that Filipinos are willing to work, [they are] industrious, excellent, and want to be trained because these are important for us to become marketable. Our salaries will increase that way instead of our demanding a wage increase.)
Sought for comment, Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesperson Alan A. Tanjusay said in part: “Mr. Lopez has forgotten that he is working in government to benefit and ensure the welfare of the people and protect not just the interest of capitalists and employers. Our wage rate is so small and inadequate that it needs constant adjustment for workers to cope and live with rising cost of living. If we do not raise their wages, workers and families will become impoverished and poor.”
“When poverty will become massive, there will be anarchy and chaos in the country and Mr. Lopez should be the first to be fed to the hungry. With a public official like Mr. Lopez in government, there will be widespread poverty and massive poverty,” Mr. Tanjusay also said.

BIR warns of impostor harassing offices

THE Bureau of Internal Revenue (BIR) in a “notice to the public” on Wednesday said it has received reports that “an individual impersonating or representing himself as (Deputy Commissioner) Arnel SD. Guballa of the Operations Group or a member of his staff has been making telephone calls to certain offices in various Revenue Regions.”
“Consequently, everyone is hereby warned to be cautious when confronted with such calls and advised to be vigilant by confirming the identity of the supposed caller at the Office of the DCIR for Operations at (632) 924-3242,” the BIR said.

Roque: Bill on fake news unconstitutional

By Camille A. Aguinaldo
PRESIDENTIAL spokesperson Harry L. Roque, Jr. on Wednesday said he opposes the passage of a bill penalizing government officials who create or spread fake news, saying the proposed measure may be used to target government officials in the opposition.
“This is my question: will high government officials allied with the administration be tried in court if they violate this law? Chances are, in our history, as long as you’re allied with the government, you will not be tried in court. Who will be tried if we’re going to have a law like this? Government officials in the opposition,” he said in Filipino during the Senate hearing on the proposed measure.
Senator Paolo Benigno A. Aquino IV, a minority senator, immediately sought clarification from Mr. Roque and asked whether his statements indicated that the Duterte administration would use the bill against members of the opposition.
“Mr. Secretary, you’re speaking as the alter ego the President. You’re saying that no ally of the President will be tried but only the opposition?” the senator asked.
“It’s a possibility. Please, I was just illustrating that the law is unconstitutional because it will violate the fundamental freedom of expression because it could be used as a tool for persecution against the opposition. It’s very stringent as a spokesperson, I’m even voicing my concern for the opposition….I’m not saying that this is the policy of the Duterte administration,” Mr. Roque replied.
Senate Bill No. 1680, filed last Feb. 6 by Senator Grace S. Poe-Llamanzares, seeks to amend Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees in order to penalize government employees who publish or disseminate false news or information on any platform. They are also prohibited from publishing their personal opinion during their working hours.
Mr. Roque clarified that he testified in the Senate hearing in his capacity as a former constitutional law professor and defender of press freedom. He said the official position of the Executive branch on the bill was: “We respect the sole prerogative of Congress to enact legislation.”
He reiterated that the bill was unconstitutional, saying that even fake news was covered under the constitutional freedom of expression. He also said it was the obligation of all Filipinos, not only government officials, to uphold the truth.
“Even fake news is protected. Why? We’re not saying that we resort to fake news. But it’s important that there should be a free marketplace of ideas. Free speech is given protection because our assumption is that the people have enough understanding as long as they have access to free market of ideas. They can identify themselves which is the truth or a lie,” he said.
For his part, Senator Antonio F. Trillanes IV, chair of the Senate committee on civil service, government reorganization and professional regulation, maintained that the bill was meant to remind public officials of their responsibility as they were given a higher standard on upholding the truth.
“This is what we want: if you are a public official, you should understand more, you should know what is fake news or not. If you do that, that should not be done by a public official,” he said.

Carpio to decline chief justice nominations

SENIOR Associate Justice Antonio T. Carpio on Wednesday said he would decline all nominations for chief justice over his vote in the Supreme Court’s (SC) decision that removed Maria Lourdes P.A. Sereno from the post.
“I have to be consistent with my position that the quo warranto is not the proper way to remove a sitting member of the court, so I don’t want to benefit from that decision (on) which I disagreed,” Mr. Carpio said in an interview with ANC’s Headstart on Wednesday.
Ms. Sereno’s appointment was voided last May 11 when the SC voted 8-6 in favor of Solicitor-General Jose C. Calida’s quo warranto petition which accused her of incomplete submission of her Statements of Assets, Liabilities, and Net Worth (SALN) to the Judicial and Bar Council (JBC). Ms. Sereno’s reversal plea was dismissed with finality on Tuesday, June 19.
Mr. Carpio, who is currently Acting Chief Justice, was one of the dissenters in the case.
Despite his dissenting opinion, he said, “as head of the institution right now, although temporary, I will have to implement that decision of the court — that there’s a vacancy. So we will open it for applications.”
According to him, “if you decline a nomination then your name will not be included in the list submitted to the President.”
“(President Rodrigo R. Duterte) has to choose from the list of nominees by the JBC. He cannot choose outside of the list,” he explained in the interview.
Asked why the post is no longer important, Mr. Carpio pointed out: “I’m about to retire so I don’t hunger for any position at this point.”
Mr. Carpio will step down next year on Oct. 26 when he reaches the mandatory retirement age of 70, in compliance with Article VIII, Section 11 of the 1987 Constitution.
He said, “If you are a Chief Justice, you have only (one) vote, same as the vote of an Associate Justice. And it doesn’t mean because you are Chief Justice the other justices will follow you — (as) you’ve seen (with Ms. Sereno’s case.)”
“They will follow you if your ponencia — your decision — is correct, is convincing, it’s powerful. That’s when they’ll follow you, not because you’re Chief Justice.”
The high court announced on Tuesday the 90-day vacancy period for the post of chief justice, in accordance with Article VIII, Section 4, Paragraph 1 of the 1987 Constitution. — D.A.M.Enerio

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