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Asia loses its luster in EM scorecard

BANGKOK/SINGAPORE/HONG KONG — By some measures, Mexico and Turkey come out as the most attractive emerging markets (EM) for 2018.

In a Bloomberg analysis based on a range of metrics including growth, yields, current-account position and asset valuations, the two countries score highest among 20 developing economies.

Asian economies occupy the five lowest-scoring positions, including the Philippines which placed 17th, just behind Thailand (16th) and ahead of Indonesia (18th), China (19th) and India (20th).

Mexico and Turkey scored higher because their real effective exchange rates are more competitive than the average of the past 10 years, according to the analysis.

India and China’s valuations are relatively expensive in historical terms.

Their economic growth is unlikely to be as fast as it has been in the past decade, according to estimates.

“If you are on the hunt for something to buy now, Turkey and Mexico stand out because they are relatively cheap,” said Takeshi Yokouchi, a senior fund manager in Tokyo at Daiwa SB Investments Ltd., which oversees the equivalent of $50 billion in assets.

“When political risks ease up, that’s when you want to make an entry, given their solid fundamentals and high yield.”

Turkey’s five-year government bond yields about 13%, while Mexico’s yields 7.5%. Both exceed India’s equivalent rate of about 7.3%, which is the highest among Asian nations covered by the analysis. China’s yields 3.9%.

The study covers 20 of the 24 markets making up MSCI Inc.’s Emerging-Market Index.

Greece is excluded owing to its use of the euro, while Egypt, Qatar and Pakistan are excluded because of data limitations.

The result for each is shown as a Z-score, which measures the relationship of the individual value to the 10-year average.

“Asian countries do look relatively expensive as they have been bought amid strong fundamentals in the region,” Mr. Yokouchi said. “They may not have the potential like Turkey or Mexico to rally big, but Asian currencies and assets are also likely to stay steady from here.”

The Turkish lira is the worst-performing currency against the dollar in the past six months, partly due to lingering political tension with the United States.

The Mexican peso ranked second worst amid the ongoing negotiations on the North American Free Trade Agreement.

The MSCI Emerging-Market Index of shares has rallied 79% since bottoming two years ago, outperforming the developed-market gauge’s 47% advance during the period. — Bloomberg

PNB to raise up to P20B from LTNCD issuance

THE Philippine National Bank (PNB) is planning to raise up to P20 billion by selling peso-denominated long-term negotiable certificates of deposit (LTNCD).

In a disclosure to the stock exchange, the Lucio C. Tan-owned bank said its board of directors on Monday approved the issuance of up to P20 billion peso-denominated LTNCDs in one or more tranches. The offering will still require  approval from the Bangko Sentral ng Pilipinas (BSP).

“The proceeds will be used to extend the maturity profile of the Bank’s liabilities as part of overall liability management, support compliance with required BSP liquidity ratios, and raise long-term funds for general corporate purposes,” PNB said.

LTNCDs are similar to regular time deposits which offer higher interest rates, but the difference is that these cannot be pre-terminated. Being “negotiable” means that these can be traded at the secondary market prior to maturity date.

In October 2017, PNB raised P6.35 billion worth of LTNCDs, the third and final tranche for the bank’s P20-billion long-term note offering since November 2016.

The bank reported a net income of P4.51 billion during the first nine months of 2017, a 20% drop from the P5.67 billion recorded during the same period in 2016. PNB’s earnings in 2016 included one-time gains from the disposal of foreclosed assets, and the sale of its 51% stake in PNB Life Insurance Inc. to Allianz SE, among others.

Shares in PNB fell by 0.9% or 5 centavos to P56.60 each on Monday.

House to go it alone on ‘Cha-cha’

By Minde Nyl R. dela Cruz

THE HOUSE of Representatives is pushing through with constitutional amendments even without the Senate, Speaker Pantaleon D. Alvarez said on Monday, Jan. 22.

Seal of the Philippine House of Representatives

In a press briefing, Mr. Alvarez said the House will no longer wait for the Senate to join them in a constituent assembly as the term itself does not exist in the 1987 Constitution.

“Ano bang ‘assembly?’ Saan ba nakalagay ’yan sa Constitution? (What ‘assembly?’ Where in the Constitution is it indicated?)” Mr. Alvarez said.

Article 17, Section 1 of the Constitution reads: “Any amendment to, or revision of, this Constitution may be proposed by: (1) The Congress, upon a vote of three-fourths of all its Members; or (2) A constitutional convention.”

Section 2 reads, in part: “Amendments to this Constitution may likewise be directly proposed by the people through initiative upon a petition of at least twelve per centum of the total number of registered voters, of which every legislative district must be represented by at least three per centum of the registered voters therein.”

“Hindi kami mag-aantay. Tuloy-tuloy lang ang public hearing namin (We will not wait. We are just continuously conducting public hearings),” Mr. Alvarez said.

He added: “Hindi, hindi na mangyayari ’yan eh (constituent assembly). Kasi balik pa rin tayo sa letra ng Constitution. Basahin niyo, Article 17, basahin niyo anong nakalagay diyan? At saka proposal lang. Hindi naman ito ordinaryong legislation na sabihin mo bicameral, approved sa ’min (House of Representatives), approved sa Senado, tapos pupunta sa Presidente for his signature. Hindi ganon ang proseso.”

(No, constituent assembly will no longer happen. Because we have to go back to the letter of the Constitution. Read up, Article 17, what was written there? Anyway, that was just for proposal. It’s not an ordinary legislation with bicameral, approved here in the House of Representatives, approved in the Senate, then forwarded to the President for his signature. The process is not like that.)

Asked what mode of constitutional amendment is currently in effect, the Speaker said: “Section 1, number 1. Ang number 2 ay constitutional convention. Ang 3, people’s initiative. May con-ass bang nakalagay dito? … Wala. Votes lang, three-fourths of all its members. (Section 1, number 1. Number 2 is constitutional convention, 3 is people’s initiative. Is there any con-ass indicated here? … Nothing. Just votes, three-fourths of all its members.)”

The Speaker also noted that the Constitution explicitly stated joint voting in approving or revoking the President’s declaration of martial law but the same terms were absent in the provision on amendments and revision.

Article 7, Section 18 of the Constitution stated, in part: “The Congress, voting jointly, by a vote of at least a majority of all its Members in regular or special session, may revoke such proclamation or suspension, which revocation shall not be set aside by the President. Upon the initiative of the President, the Congress may, in the same manner, extend such proclamation or suspension for a period to be determined by the Congress, if the invasion or rebellion shall persist and public safety requires it.”

Asked if the explanation of the framers of the Constitution should be considered, Mr. Alvarez said: “’Yun ang problema sa kanila. Hindi nila gagawin ’yung trabaho nila nang maayos and yet magke-claim sila that this is the best Constitution daw in the world (That is the problem with them. They did not do their jobs well and yet they will claim that this is the best Constitution in the world).”

In a Senate hearing last Jan. 17, one of the framers of the 1987 Constitution,former chief justice Hilario G. Davide, Jr., said that while the present Charter may not be perfect, it was “the best in the world.”

“Kasalanan nila ’yan eh. Itanong mo kay Davide ’yan. O kay Christian [S.] Monsod [another member of the 1986 Constitutional Commission]. Bakit hindi nila kinumpleto ’yan? Trabaho nila ’yon eh tapos ngayon tayo sisihin nila? Dapat sila sisihin niyan,” Mr. Alvarez further stated.

(That is their fault. Ask Davide that. Or Christian Monsod. Why didn’t they complete that? That was their job and now they are blaming us? They should be blamed for that.)

Meanwhile, the House Concurrent Resolution (HCR) 9, which seeks the convening of the Congress into a constituent assembly and was adopted by the House of Representatives on Jan. 16, held no bearing, according to Mr. Alvarez.

“Siguro nagkamali ’yon. Anyway, resolution lang naman ’yon na magko-convene, ibig sabihin, mag-uumpisa para mapag-usapan na ’yung pagbabago, ’yung proposal (Maybe that was wrong. Anyway, that was simply a resolution to convene, meaning to start the discussion on the changes, the proposal),” Mr. Alvarez said.

The said resolution has been transmitted to the Senate and placed in its order of business as of Monday.

During Monday’s session, Senate President Aquilino L. Pimentel III referred the resolution to the committee on constitutional amendments and revision of codes, which is chaired by Senator Francis N. Pangilinan.

The Speaker also thumbed down recommendations to amend only the restrictive economic provisions in the Constitution, saying that doing so would only serve the interest of the businessmen.

“Mayroon ngang suggestion, bakit hindi lang economic provisions ’yung baguhin? Again, gusto nila, ’yung sariling interes lang nila ’yung (masunod), interes ng negosyante. Eh paano naman ’yung interes ng taumbayan? Eh bakit hindi nila bigyan ng opportunity ’yung mga local governments to chart their own destinies? Mag-create man lang sila ng opportunity din sa kanilang lugar,” Mr. Alvarez said.

(There is even a suggestion, why not amend just the economic provisions. Again, what they want is that only their own interest will be followed, the interest of the businessmen. What about the interest of the citizenry? Why not give the local governments the opportunity to chart their own destinies? At least create an opportunity for their own place.)

On Sunday, Jan. 21, business leaders Makati Business Club (MBC), Management Association of the Philippines (MAP), and Financial Executives Institute of the Philippines (FINEX) issued a joint statement urging Congress to prioritize amending the restrictive economic provisions of the 1987 Constitution.

Likewise, Southern Leyte Representative Roger G. Mercado, chair of the House committee on constitutional amendments, said it would be “unwise” to focus on economic provisions.

“[T]he suggestion that this attempt at [C]harter change (Cha-cha) be limited to the economic provisions is unwise, partly because, as the business sector knows, governance issues are also at the core of the medium-term and long-term development goals. To neglect governance is to just partly solve decades-old problems,” Mr. Mercado noted. — with Camille A. Aguinaldo

PSEi to reach 9,500 level this year, says brokerage

By Arra B. Francia, Reporter

RCBC Securities, Inc. sees the market ending at the 9,500 level by the end of 2018, fueled by the continued positive outlook on the Philippine economy.

“We expect that the market will sustain its growth. Our end of the year forecast is 9,500… this can be subject to further upgrading moving forward,” RCBC Securities Research Head Raul P. Ruiz said during the brokerage firm’s annual stock market briefing in Makati City on Monday.

RCBC Securities said the projected 6.7% growth in the Philippine economy is the key reason for the rise in the Philippine Stock Exchange index (PSEi). The company noted the Philippines is also seeing the benefits of having better ties with China, citing higher investments and tourist arrivals from the economic giant last year.

Citing figures from the tourism department, the brokerage said that Chinese tourist arrivals accounted for 14% of the total travelers to the Philippines last year. Chinese tourists ranked third in the most arrivals, following South Korea and the United States.

Investments from China have also started to come in, beginning with President Rodrigo R. Duterte’s visit to the country last year where he secured $15 billion in investments. In comparison, investments from China amounted to only $60 million from 2011 to 2016.

The brokerage firm said this bodes well for the Philippines, citing China’s $9.6-billion investments in Cambodia from 2004 to 2013.

However, RCBC Securities said the PSEi is already expensive, moving above its historical average of 14 price to earnings ratio (P/E), trailing instead a ratio of 18 P/E.

“For so long as the prospects of the economy is better, there is justification for the market to rise further…Other (global) markets also rallied, better than the Philippine market,” Mr. Ruiz said. 

With the rise of the main index, corporate earnings are also expected to increase by 12% in 2018. This is higher than RCBC Securities’ forecast of 9% growth last year.

Ayala Land, Inc. is seen to be one of the top advancers this year, pushing the property sector to jump by 17%. Earnings of holding firms are projected to rise 11%, while consumers stocks will most likely record a 12% uptick.

RCBC Securities’ stock picks include: D&L Industries, Inc., noting its recent partnerships with US-based firms, Puregold Price Club Corp., and Robinsons Retail Holdings, Inc. for consumer stocks, ALI and Vista Land & Lifescapes, Inc. for property, Ayala Corp. and GT Capital Holdings, Inc. for holding firms, Megawide Construction Corp. for infrastructure play, Bloomberry Resorts Corp. for gaming, and EastWest Bank for the banking sector.

RCBC Securities did not choose stocks from the telecom industry due to concerns over the entry of a third player. The mining industry is also expected to be hit by higher mining taxes, while the power and energy sector may be affected by declining electricity selling prices, among others. 

Meanwhile, the brokerage firm said rates hikes in the US may affect the local bourse, as this would prompt the Bangko Sentral ng Pilipinas to increase rates as well. 

RCBC Securities is also cautious on the number of capital-raising activities lined up this year, such as the follow-on offering by the Philippine Stock Exchange, Inc., and P110-billion stock rights offerings by Metropolitan Bank and Trust Co. and Bank of the Philippine Islands, as they could “sap market liquidity, stalling the market’s climb.”

Shenzhen bourse’s investment in PSE faces regulatory hurdles

By Krista A. M. Montealegre,
National Correspondent

THE ENTRY of Shenzhen Stock Exchange into the Philippine Stock Exchange (PSE) faces regulatory hurdles ahead of the plan of the local bourse to tap the equities market.

“On the investment, we are not quite sure if they can meet the timetable kasi for them when they invest internationally, they need the approval of their (Securities and Exchange Commission),” PSE President and Chief Executive Officer Ramon S. Monzon said in an interview last week.

The PSE official announced in October that it is wooing its counterpart in China to invest in the local stock market, a move that may set the stage for the establishment of a Manila-Shenzhen trading link that will give Chinese investors access to shares listed in the Philippines and vice versa.

“May timetable kaming hinahabol so we’re trying to see how we can work that out,” Mr. Monzon said.

The Philippine SEC cleared the P3.16-billion stock rights offering (SRO) of the local bourse involving the sale of up to 11.5 million shares priced at P275 apiece. The deal is set next month.

Of the net proceeds, P1.58 billion will “(service) future corporate debt accessed through bridge financing” for its acquisition of Philippine Dealing System Holdings Corp. (PDSHC).

The PSE has already taken term loan facilities from BDO Unibank, Inc., Bank of Commerce, Metropolitan Bank and Trust Co. worth P1.15 billion, for the acquisition.

The SRO is a necessary step in the PSE’s acquisition of PDSHC, as it will bring down broker ownership to less than 20%. Bringing down the ownership of trading participants in the local bourse is a key feature in securing the SEC’s approval for the merger.

SEC approval for the PSE-PDSHC merger is one of the final steps in closing the deal that began back in 2013, when the PSE proposed to merge the two markets for synergies in operations. To recall, the Philippine Competition Commission approved the merger last December 2017.

The remainder of the SRO proceeds will be used for product development and working capital requirements, as the PSE moves to its new headquarters in Bonifacio Global City, Taguig by the first quarter of 2018.

Hunger up in SWS 4th quarter survey

AN ESTIMATED 3.6 million or 15.9% of Filipino families experienced involuntary hunger at least once in the past three months — a 4.1-point increase from the 11.8% (est. 2.7 million families) in September 2017, the Social Weather Stations (SWS) pointed out in its Fourth Quarter 2017 Social Weather Survey.

December’s 15.9% “is the highest recorded value for hunger since the 17.2% in December 2014,” SWS noted.

“Still, this gives an average hunger rate of 12.3% for all quarters of 2017, 1 point below the 13.3% in 2016,” The polling group added. “This is the lowest annual average hunger rate since 11.8% in 2004, due to the near record-low 9.5% in June 2017.”

The measure of hunger refers to involuntary suffering because respondents (household heads sought by the survey) answer a survey question that specifies hunger due to lack of food to eat.

Respondents were asked, “In the last 3 months, did it happen even once that your family experienced hunger and not have anything to eat? “ Further asked about their experiencing hunger, respondents in their replies varied from “only once” or “a few times” (moderate hunger) to “often” or “always” (severe hunger) in the last three months.

December’s 15.9% hunger is the sum of 12.2% (est. 2.8 million families) who experienced moderate hunger and 3.7% (est. 841,000 families) who experienced severe hunger, SWS said, adding that moderate hunger rose by 2.6 points (from 9.6% in September to 12.2% in December), and severe hunger, by 1.6 points (from 2.1% to 3.7%). SWS noted that moderate hunger and severe hunger have been increasing for the past two quarters.

SWS further noted the rise in hunger alongside, on the other hand, a 3-point drop in self-rated poverty between September and December, 2017. The polling group said this was due to an increase in the incidence of hunger among both the self-rated poor and the self-rated non-poor.

Hunger also rose among the self-rated food poor, going up by 9 points from 19.8% in September to 28.8% in December. It rose by 1.9 points among the Not Food-Poor/Food- Borderline (from 8% to 9.9%).

SWS also found an increase in hunger in all areas, with the 15.9% consisting of 14.7% or an estimated 457,000 families in Metro Manila (a 3-point increase from 11.7% last September); 17.7% or about 1.8 million families in Balance Luzon (a 3.9-point increase); 13.3% or about 589,000 families in the Visayas (a 3.6-point increase); and 15.3% or about 802,000 families in Mindanao (a 5.6-point increase).

The survey was conducted from Dec. 8-16, 2017, using face-to-face interviews of 1,200 adults (18 years old and above) nationwide: 300 each in Metro Manila, Balance Luzon, Visayas, and Mindanao (sampling error margins of ±2.5% for national percentages, and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao).

Hunger infographic

Peso weakens against dollar on US shutdown

THE PESO weakened against the dollar on Monday as the US government shutdown continued.

The local currency finished at P50.835 against the greenback yesterday, losing 11.5 centavos from its P50.72-per-dollar close seen on Friday.

Monday’s finish was also the peso’s worst performance in more than two months since it closed at P50.95-to-the-dollar on Nov. 17.

The local unit traded weaker during Monday’s session, opening at P50.74 versus the dollar, which was also its best showing for the day. Its intraday low, meanwhile, landed at P50.90 against the greenback.

Dollars traded yesterday rose to $868.5 million from the $819.2 million that changed hands on Friday.

“After the one-day pause, dollar-peso continued to trade higher,” a trader said in a phone interview, referring to the peso’s strength on Friday, where it gained eight centavos to close at P50.72.

Despite the US government shutdown, he said the dollar is still more attractive than the local currency despite global risk aversion on the US currency.

“In terms of the local market, the safe haven is still the dollar, therefore the greenback still strengthened,” he said.

Reuters reported Republican and Democratic leaders of the US Senate held talks on Sunday in  order to break the impasse. Reuters quoted Senate Majority Leader Mitch McConnell as saying late on Sunday that an overnight vote on a measure to fund government operations through Feb. 8 was cancelled and would instead be held at 12 p.m. (1700 GMT) on Monday.

“[T]raders are likely consolidating their positions on optimism ahead of immediate resolution of the recent shutdown within the week which might help strengthen the dollar,” a second trader said in an e-mail.

The first trader added: “We saw a bit of profit taking by some market players when the market saw [the peso] on the [low],” also suspecting an intervention from the central bank.

The Bangko Sentral ng Pilipinas sometimes taps the country’s foreign currency reserves to temper the volatility in the foreign exchange market.

For today, two traders expect the peso to move from P50.80 to P51, while another trader gave a slightly wider reading between P50.70 and P51. — K.A.N. Vidal

SSS chief seeks to increase monthly contribution rate this year

SOCIAL SECURITY System (SSS) intends to increase its monthly contribution rate to 14% this year after failing to implement the hike last year.

“We plan to increase it (the contribution rate) by 1.5 [percentage points] from 11%, but we have lost that opportunity when the increase was not implemented last year. For practical purposes, we have to increase it by three [percentage points],” SSS President and Chief Executive Officer Emmanuel F. Dooc said in an interview.

Mr. Dooc said he will send a follow-up letter to President Rodrigo R. Duterte asking him to issue an executive order to tweak the monthly contribution rate as well as the minimum and maximum salary credit.

“I’m going to send a follow-up letter, hopefully this week, to the president and I’ll course it through the secretary of Finance so that I can get his support,” he said.

Aside from adjusting the contribution rates, SSS is also looking at increasing its minimum salary credit to P4,000 from P1,000 as well as its maximum salary credit to P20,000 from P16,000.

The state pension fund previously asked Mr. Duterte to increase its contribution rates, but was unable to do so because it had to wait for the passage of the first tax reform package.

“We feel now that the [tax reform package] will provide relief in the form of lower taxes to our members so they can now afford to pay the extra additional contributions,” Mr. Dooc said.

In January last year, Mr. Duterte approved the monthly pension increase of P2,000, which will be done in two stages. The first P1,000 was already disbursed to pensioners since March.

SSS intends to upwardly adjust its contribution rate by 1.5 percentage points on an annual basis until it reaches 17%.

Currently, the 11% contribution rate is being shouldered by the employer (7.37%) and the employee (3.63%).

Aside from the administrative order that SSS requested from the president, the pension fund could also hike its contribution rate by amending its charter through legislation.

“The amendment empowers SSS through the [Social Security] Commission to adjust the contribution rate once the amendment becomes a law,” Mr. Dooc said, adding that this would take time.

The SSS president added the contribution hike is necessary “to improve the finance of the system and enable us to meet the financial obligations including the pension benefit hike,” adding the contribution hike will prolong the pension fund’s salary life to 2045. — K.A.N. Vidal

Chelsea Logistics taps Japan’s Kegoya to build ships

CHELSEA Logistics Holdings Corp. (CLC) has tapped Japanese firm Kegoya Dock Co., Ltd. for the construction of a roll-on/roll-off (Ro-Ro) passenger ship, as the Philippine company ramps up its fleet expansion.

In a statement on Monday, CLC President and Chief Executive Officer Chryss Alfonsus V. Damuy said the contract with Kegoya Dock includes an option for additional three units to be delivered between 2019 and 2020.

The firm led by Davao-based businessman Dennis A. Uy said the Ro-Ro ship is designed specifically for the Philippine market.

The new ships are expected to modernize the company’s fleet and improve safety and reliability.

“Shipping and logistics business is a long-term business as it takes 2 years to 3 years to acquire new ships. However, once these new vessels are put into operation, they will deliver better cash flows for the Company as the brand new ships have very minimal downtime and very low maintenance costs,” Mr. Damuy was quoted as saying.

At present, CLC has 21 Ro-Ro and passenger vessels, aside from owning 15 tankers, eight tugboats and four cargo ships. Through the 2GO group, CLC has an additional 16 Ro-Ro and passenger vessels.

Last year, CLC acquired Batangas-based passenger and cargo operator Starlite Ferries, Inc. and its subsidiaries. Starlite and its units have 14 vessels, including five new Ro-Ro passenger vessels that were acquired in 2016 and 2017. It uses its Ro-Ro vessels at the ports of Batangas, Calapan, Puerto Galera, Roxas and Caticlan.

PNX-Chelsea Shipping Corp., a fully owned domestic subsidiary, secured three vessels, while another unit Trans-Asia Shipping Lines, Inc. also acquired a cargo vessel with a 700 twenty-foot equivalent unit capacity late last year.

In November 2017, the company had also fully acquired integrated logistics solutions provider Worklink Service, Inc.

“[With] the newly acquired vessels and tugs, and the newly built vessels which are soon to be delivered, [this] will bring Chelsea Logistics another step closer to fulfilling its commitment to growth in order to realize more value for our stakeholders, from the investors to the consumers,” Mr. Damuy said.

Shares in CLC closed 1.31% or 11 centavos lower at P8.31 each on Monday. — Anna Gabriela A. Mogato

Senate concurs with PHL-EU agreement

THE SENATE in a statement on Monday said it has adopted a resolution expressing its concurrence with the ratification of a framework agreement “on partnership and cooperation” between the Philippines and the European Union (EU).

Proposed Senate Resolution No. 570, introduced by Senator Loren B. Legarda, said the Senate had concurred with the ratification of the “Framework Agreement on Partnership and Cooperation between the European Union and its Member States of the one part, and the Philippines, of the other part” signed on July 11, 2012 in Phnom Penh, Cambodia.

According to the resolution, the agreement commits the Philippines and the EU into pursuing dialogue and cooperation on “political matters, justice and security affairs, trade and investment, migration, and other economic development and sectoral issues.”

“The agreement intends to promote sustainable development, particularly environmental sustainability, reduction of the impact of climate change and mitigation of disaster risk, capacity building and technical cooperation initiatives; and exchange of experts in areas of science, technology, statistics, food and drug, and health, among others,” the resolution said.

The agreement would be valid for five years, the resolution said, and would “automatically be extended for successive periods of one year” unless either party notifies the other that it would no longer extend the agreement.

President Rodrigo R. Duterte has been critical of the EU’s stand on his drug war, to the point of expressly rejecting EU assistance to the Philippines.

On the other hand, the resolution noted Mr. Duterte’s ratifying the agreement on Feb. 28 last year, as well as the endorsement of 17 government agencies, including the Department of Foreign Affairs (DFA), the Department of Finance, the Department of Environment and Natural Resources, and the Department of Finance.

Under Article VII, Section 21 of the 1987 Constitution, no treaty or international agreement shall be valid and effective “unless concurred in by at least two-thirds of all the members of the Senate.”

The Senate had also adopted two separate resolutions expressing its concurrence with agreements on social security signed with Germany and Sweden.

The two agreements were signed last year by Mr. Duterte and endorsed by six agencies, led by the DFA.

Sanofi to compensate for ‘death, any other case’

By Camille A. Aguinaldo

FRENCH PHARMACEUTICAL firm Sanofi Pasteur on Monday committed to providing compensation for “death or any other case” among patients who were administered the controversial Dengvaxia vaccine.

Sanofi has also reimbursed to the Department of Health (DoH) P1.16 billion for unused dengue vaccines.

Senators also quizzed incumbent and former DoH officials regarding the process that led to the implementation of the immunization program involving dengue vaccines in 2016.

Senator Richard J. Gordon, chair of the Senate blue ribbon committee, grilled officials of the Disease Prevention and Control Bureau (DPCB) and physicians Maria Joyce U. Ducusin and Mario S Baquilod on the recommendation to include the vaccines in the government’s National Dengue Prevention Program.

Mr. Baquilod said Dr. Rosalind Vianzon, the dengue program manager at the time of the vaccine purchase, told him to make a recommendation which he thereafter submitted to Ms. Ducusin’s office. He also said the rising number of dengue cases at the time also prompted him to issue a document.

It was disclosed that the recommendation document was a requirement for a special allotment order release amounting to P3.5 billion for the vaccine program.

Senator Sherwin T. Gatchalian for his part questioned former health secretary Janette L. Garin for continuing the purchase of the vaccines despite the advice of a technical working group to conduct a pilot testing first.

Ms. Garin said she knew about the proposal for pilot implementation when there was a discussion with other officials regarding four other vaccines proposals for funding. But she said she would have to check with DoH officials regarding the actual document of the technical working group.

For his part, former health secretary Enrique T. Ona testified that he would not implement the government’s anti-dengue vaccine program the way it was handled by his successor while there were still issues about the vaccine.

“It should not have been implemented the way it was done, meaning targeting millions of children, because the basis for the issues that were being raised were still a big question mark,” he said, citing studies too.

He also reiterated his previous statement that the leadership after his term as DoH chief was “solely responsible” for what he called a “major health nightmare in the country today.”

Ms. Garin, the DoH chief at the time the vaccine program was implemented in 2016, insisted that the procurement of the vaccines was not rushed.

Official figure on fatality count in drug war 3,987

By Arjay L. Balinbin

THE Philippine Drug Enforcement Agency (PDEA) and other agencies, in a press briefing at Malacañang on Monday, Jan. 22, reported that there were “only 3,987” killed in the government’s antidrug campaign.

This figure stands in sharp contrast to a recent report by Human Rights Watch claiming about 12,000 suspected drug personalities were killed in President Rodrigo R. Duterte’s drug war.

Joining PDEA at Monday’s press briefing were the Philippine National Police (PNP), Presidential Communications Operations Office (PCOO), and Department of Justice (DoJ) as they presented the latest #RealNumbersPh data on the government’s war on drugs.

PNP spokesman Chief Supt. Dionardo B. Carlos explained that out of 19,568 deaths from July 1, 2016 to Jan. 17, 2018, the rest are “homicide cases” that are of “different motives” or not related to the anti-drug campaign.

“The rest are crimes o krimen na nangyayari sa ating mga lansangan. Iba’t-ibang motibo at ang nakikita po natin dito ay ang pinakamalaki po dito ay personal grudge o heated argument, iyong pag-aaway na nauuwi sa pagkamatay ng isang biktima. Ang isa naman pong dahilan, the top three that we see ay iyon pong personal gain, meron po siyang gustong kunin o meron siyang gustong makuha after that incident kung saan nagkakaroon po ng pagpatay sa isang nagiging biktima.”

(The rest are crimes that took place on the streets with different motives. What we see here is that the dominant one is personal grudge or heated argument which led to killing. Another motive is ‘personal gain,’ when one intends to get something after killing the victim.)

Last December, PDEA reported there were only two drug suspects killed in the agency’s almost 3,000 anti-illegal drug operations since it started leading the campaign in October.

For his part, PDEA Spokesperson Derrick Arnold Carreon explained that one factor that led to the notably small number of deaths is the “presence of media during operations,” as “ordered by Director General Aaron N. Aquino.”

“In fact, now, we are moving into inviting prosecutors and to wear body cameras as well, not only our (agents) but also the media and the prosecutors who will be invited in order to make our operations more transparent, and I believe the same move is also being done with our counterparts in the PNP now with resumption of their operations,” Mr. Carreon added.

PDEA also reported yesterday that Mr. Duterte’s anti-drug campaign has led to 81,919 anti-drug police operations and 199,361 arrested drug personalities.

Mr. Carreon said the figures are based on “the consolidated data from the PNP, the National Bureau of Investigation (NBI), the Bureau of Customs (BoC), and the PDEA.”

The agency also reported that it has “confiscated 2,577.05 kilograms of methamphetamine or shabu, with a street value of P13.24 billion, and an increase of P114.16 million from the previous period last month.”

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