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Small businesses not exempted from anti-trust rules — experts

EVEN AS large and family-run companies dominate the Philippine business landscape and small enterprises face high barriers of entry, anti-trust rules should not necessarily “protect” the latter, industry experts said on Friday.

“Competition law is not protecting small businesses. The goal is not to say, they don’t need to face up SM in the marketplace. But you go to the field, you know the rules, if you’re good some of you will grow,” Michael Schaper, deputy chair of the Australian Competition and Consumer Commission, said during a panel discussion on the second day of the Manila Forum on Competition in Developing Countries in Makati City on Friday.

The panelists acknowledged the importance of micro, small and medium enterprises (MSMEs) in catering to markets unserved by large conglomerates to give consumers more product choices. However, they said the competition regulator shouldn’t give them special treatment.

“You don’t need a competition law to protect them. Our focus is access to mentorship, money, and market. If an entrepreneur will not have access to these three, it would be impossible to succeed,” Presidential Adviser for Entrepreneurship Jose Maria A. Concepcion III said.

“There are many ways to enter, and this is what entrepreneurship is all about. The creativity and innovation,” he added.

He said however that the anti-trust body should not put the clamps on the digital environment, which is MSME’s point of entry amid large firms’ dominance in the market.

“What’s important is we should not regulate a changing landscape. I look forward to the digitalization of market. Us, large corporations compete for market dominance. In the meantime, many of our MSMEs, they will be hit in this massive competition from the big boys. The barriers to entry are created by ourselves,” said Mr. Concepcion.

“What is our chance for the MSMEs? To allow MSMEs in the supply chain…let us allow the digital economy to run its course,” he added.

Established brick-and-mortar businesses will be forced to likewise adopt the digital innovations of MSMEs, he said.

“The market is still the ultimate test. If you’re innovative enough, you can deal with the Samsungs of the world, so the balance it’s pretty tough. I think that’s important. But don’t overregulate to kill innovation as well,” Tony Fernandes, AirAsia group chief executive officer said.

Erlinda Medalla of the Philippine Institute for Development Studies however said that other sectors should still support small firms through providing more access to finance and skilled labor.

“The rules to be applied are the same whether big or small. It’s going to be fair, no bias there. The important thing is that there is free entry. But you have to encourage start-ups, to provide access to finance, and skills which is not anti competitive,” she said.

She added that small enterprises do not need exemptions from the competition law despite having less capital for compliance costs.

According to Mr. Schaper, small businesses have less capacity to compete with large firms in dealing with legal snags. He added that MSMEs are more likely to spend on product development than bankrolling lawyers for legal purposes.

Stella Luz A. Quimbo, commissioner at the anti-trust body Philippine Competition Commission, said that only 11% of MSMEs are aware of the Philippine Competition Act or Republic Act No. 10667, citing a survey by the Asian Institute of Management.

“Small businesses usually soldier on. If you get someone to undercut you, or use a dirty trick, you are rarely likely to go to a competition regulator. The cost, the time, the effort is big,” said Mr. Schaper.

The least that regulators could do is to have legal solutions communicated in a “quick, straightforward manner.”

“They’re not necessarily looking for legal solutions, what they’re looking for are answers in plain language, what practical outcomes that can be implemented easily,” he added. — Elijah Joseph C. Tubayan

DPWH lists 6 road projects as its PPP priorities

THE DPWH has identified six priority public-private partnership (PPP) projects for this year.

DPWH Undersecretary for Planning and PPP Maria Catalina E. Cabral said in a statement that priority projects this year, expected to decongest major highways in Luzon and Mindanao, include the Central Luzon Link Expressway (CLLEX) Phase 2; Quezon-Bicol Expressway (QuBEX); Batangas City-Bauan Toll Road Project; Davao-Digos Expressway; Tarlac-Pangasinan-La Union (TPLEX) Extension; and Delpan-Pasig-Marikina Expressway.

Ms. Cabral said the CLLEX Phase 2, a 35.7-kilometer extension of the existing CLLEX Phase I from Cabanatuan City and San Jose City, is now under procurement of Transaction Advisory (TA) Services and Feasibility Study (FS).

The feasibility study of the around 180-kilometer QuBEX will be completed by third quarter of 2018. The project will start at Pagbilao, Quezon and will end at Maharlika Highway in San Fernando, Camarines Sur.

For the Batangas-Bauang Toll Road Project, Davao-Digos Expressway, TPLEX Extension, and Delpan-Pasig-Marikina Expressway, the DPWH is preparing the terms of reference (TOR) and the estimated budget for the contract (EBC).

The Batangas City-Bauan Toll Road Project is a 10-kilometer road traversing the municipality of San Pascual, Batangas. The 60-kilometer Davao-Digos Expressway will start from Bukidnon-Davao National Highway in Davao City to Digos-Sultan Kudarat Road in Digos City; and the 24.72-kilometer Delpan-Pasig-Marikina Expressway will start in the City of Manila, pass through Makati City, and terminate at Marcos Highway in Marikina City through the Pasig River.

The EBC of TPLEX Extension is also being prepared by the DPWH while its TOR has been transmitted for approval, the agency said. The extension is a 54-kilometer toll road starting from the end of TPLEX Section 3B in Rosario, La Union to F. Ortega Highway in San Fernando, La Union. — Patrizia Paola C. Marcelo

BSP Jan. inflation view exceeds expectations — ING

ING Bank N.V. said the central bank’s “surprisingly high” 3.5-4% inflation estimate has raised expectations that monetary authorities may tighten policy as early as March.

“With such a high January inflation forecast, the market may become worried that inflation will accelerate faster than expected in the coming months,” Jose Mario I. Cuyegkeng, senior economist at ING Bank Manila, said in a report posted yesterday.

On Wednesday, the Bangko Sentral ng Pilipinas (BSP) said inflation likely rose to 3.5-4% in January on the back of higher crude and food prices as well as the higher taxes on selected goods under the new tax reform law.

“The increase in the prices of domestic petroleum products on account of higher global crude oil prices along with higher food prices due to weather-related disturbances could contribute to the rise in inflation for January 2018,” the BSP’s Department of Economic Research said in a statement.

“In addition, higher excise taxes on fuel, sugar-sweetened beverages with the implementation of the TRAIN this month, would lead to additional upward price pressures,” it added, referring to the Tax Reform for Acceleration and Inclusion act, which was passed in December.

The central bank’s inflation estimate for January will likely pick up from December’s 3.3% inflation, and above ING Bank’s forecast of 3.4%.

The January inflation estimate may hit the high end of the government’s full-year target range of 2-4%.

Mr. Cuyegkeng added that January inflation in line with the BSP forecast could raise inflation expectations, spurring the central bank to hike its interest rates “as early as their March meeting.”

“Our base case is for a rate hike at the May meeting,” Mr. Cuyegkeng added.

In a previous report, Mr. Cuyegkeng said BSP could also revise its 3.4% inflation estimate for 2018 in its policy meeting on Feb. 8.

The previous report posted mid-January said the possible full-year inflation forecast revision would reflect the central bank’s assessment of the tax reform’s second-round effects such as a possible increase in minimum fares for public transport and the possible domino effect on wages.

Official inflation data for January will be released on Feb. 6. — Karl Angelo N. Vidal

Philab invests in a US-based genomics company

PHILAB Holdings Corp. is investing P500 million in a US-based genomics company in a deal seen to boost the Philippine-listed company’s bid to expand overseas.

In a statement on Friday, Philab said it has signed a collaboration deal with Veritas Genetics which it described as a “globally known genomics innovator” that screens human DNA through myGenome “whole genome sequencing” (WGS) that helps in assessing risks related to inherited diseases, drug sensitivities, traits and ancestry.

“We are excited to embark on this partnership with Philab and integrate our technology to offer our services in the Asia-Pacific. Whole genome sequencing and interpretation will soon be accessible to everyone,” Mirza Cifric, co-founder and chief executive officer of Veritas Genetics, said in a statement.

The deal “covers Philab’s investment of Php 500M in Veritas” with plans to establish a genomics facility in the future, the statement read. It will also support the holding firm’s plan to expand its operations worldwide starting from the Asia-Pacific region.

“Genetics has come a long way and now we are utilizing the power of genomics in disease prevention and individual treatment. Ultimately our goal is to let individuals have knowledge about their genetic makeup, then they would know how to control and better manage their lifestyle choices,” said Hector Thomas A. Navasero, Philab chairman and chief executive officer.

Philab said the partners would launch a new program on Pharmacogenomics, which it called an “exciting innovation which allows doctors to determine how an individual’s genetic makeup will respond to drugs.”

Mr. Cifric said the collaboration would enable the company to further develop and launch its genome sequencing services, while expanding its footprint in Asia.

On Friday, shares in Philab slipped 3.13% to P4.02 each. — V.V. Saulon

Expansion of acceptable collateral could boost PHL’s ease of doing business rank

THE PHILIPPINES’ Ease of Doing Business ranking could rise by as many as 100 spots into the top 50 when the Secured Transaction Systems bill is enacted, according to the Department of Finance (DoF).

The proposal, filed as House Bill No. 3682, seeks to establish a legal framework for the use of non-traditional collateral for loans, such as accounts receivable, inventory, and intellectual property, among others.

The measure is expected to “encourage more lending to MSMEs and agriculture” since it would also allow the use of crops, livestock and other equipment as loan security.

“The passage of this bill will strengthen the Philippines’ position in the “Getting credit” indicator in the Ease of Doing Business and boost it by about 100 notches—from rank 142 among 190 countries to 42,” the DoF said.

Currently, most banks only accept real estate as loan collateral.

The DoF said that about 31% of production by Philippine family household businesses and 65% of household businesses have no ability to borrow for their expansion needs.

It added that in countries that carried out the reform, lending to micro, medium and small enterprises (MSMEs) grew by 50-100%.

The DoF noted that China’s acceptance of movable collateral released $3.58 trillion worth of lending for MSMEs over four years.

Movable collateral accounts for 45% of commercial lending in China and 30% in Vietnam, according to the DoF.

The DoF said that of the 10 members of the Association of Southeast Asian Nations (ASEAN), seven have secured transactions laws, while five have a universal collateral registries.

The bill is currently up for third and final reading in the House of Representatives, and its counterpart bill in the Senate is set for second reading.

Aside from the legal framework, the bill would also establish a regulated warehousing industry which issues receipts that can be used as collateral by lenders and can be traded by investors and industry players; develop an automated movable collateral registry wherein information on transfers and pledges of collateral can be made and accessed by participants.

The Finance department said that this will “develop the backbone of an efficient commodities market that will stabilize prices and expand transactions.”

Even with the bill pending for approval by Congress, the Land Registration Authority (LRA) has established an automated collateral registry.

The Securities and Exchange Commission is also currently drafting regulations on audit systems to check compliance with regulations. — Elijah Joseph C. Tubayan

Globe says nearing two-million broadband line goal

GLOBE Telecom, Inc. has deployed one million broadband lines, halfway through its goal of two million lines by 2020.

In a statement, the telecommunications company said it deployed more than one million broadband lines in the last two years, enabling more users to stream video content.

In terms of wired broadband facilities, Globe deployed fiber broadband in 12 cities in Metro Manila as well as in 19 provinces. Majority of the company’s fiber build are located in Quezon City, Sta. Rosa and Calamba in Laguna, as well as in Cebu and Davao.

Joel Agustin, Globe senior vice president for program governance, network technical group, said the company’s deployment of massive MIMO (multiple input, multiple output) technology has been working to accelerate the roll out of two million home broadband lines, with speeds of at least 10 Mbps (megabit per second) by 2020.

“The goal is to provide for the growing data service needs of our customers and the company will continue to aggressively roll out broadband lines using latest available technologies such as the massive MIMO,” Mr. Agustin said in a statement.

Globe has set a capital expenditure (capex) of $850 million (around P43 billion) for 2018. — P.P.C. Marcelo

Bargain hunt spurs slight recovery

PHILIPPINE EQUITIES recovered on Friday from three straight days of decline to close above the 8,800 mark, with one analyst attributing the week’s positive end to bargain-hunting by investors.

The Philippine Stock Exchange Index (PSEi) closed at 8,810.75, up by 72.03 points or 0.82%, while the all-shares index finished 5,181.82, up by 50.90 points or 0.99%.

PSEi was down 2.55% on the week but still up 2.95% from 2017’s 8,558.42 finish.

“The index closed above 8,800 today as local investors picked stocks at bargain prices after the sudden dip in global equities that started on Tuesday,” Jervin S. de Celis, equities trader at Timson Securities, Inc. said in a message.

Thursday saw the Dow Jones Industrial Average up 37.32 points or 0.14% at 26,186.71, while the S&P 500 Index slipped by 1.83 points or 0.06% to 2,821.98 and the Nasdaq Composite Index sank by 25.62 points or 0.35% at 7,385.86.

“Philippine markets managed to carve out substantial gains after several days of being sold down with US stock indexes, switching between gains and losses as concerns about a pick-up in inflation and rising bond yields fostered emerging volatility on Wall Street,” Mr. de Celis noted, adding that “the all-time high this week was also taken advantage to liquidate shares since our market is already trading at high valuations”.

The PSEi last Jan. 29 marked its ninth peak for 2018 at a 9,058.62 finish before it embarked on a three-day decline.

Major bourses elsewhere in Asia were a mixed bunch, with Japan’s Nikkei 225 and Topix Index as well as Hong Kong’s Hang Seng Index slipping by 0.90%, 0.33% and 0.12%, respectively, while the Shenzhen-Shanghai CSI 300 Index and the MSCI AC Asia Pacific rose by 0.60% and 0.20%, respectively.

All local sectoral indices ended Friday with gains, led by mining and oil that increased by 212.7 points or 1.79% to 12,083.05, followed by industrials that advanced by 121.04 points or 1.02% to 11,891.59, holding firms that went up by 90.86 points or 1.01% to 9,007.76, property which rose by 36.35 points or 0.91% to 3,993.89, services which added 11.89 points or 0.69% to 1,718.11 and financials which edged up by 3.59 points or 0.16% to 2,223.55.

Friday’s list of 20 most active stocks saw only three that fell: Vista Land & Lifescapes, Inc.; Security Bank Corp. and Metro Pacific Investments Corp. that fell by 2.90% to P6.70 apiece, 0.73% to P243.40 and by 0.62% to P6.46 each, respectively.

Stocks that gained were led by the likes of SM Investments Corp.; SM Prime Holdings, Inc.; Ayala Land, Inc.; Semirara Mining and Power Corp.; Jollibee Foods Corp.; Megaworld Corp. and San Miguel Corp. that increased by 0.59% to P1,030 apiece, 1.23% to P36.95, 1.10% to P45.85%, 1.74% to P37.90, 2.37% to P294, 1.22% to P4.96 and by 4.90% to P152 each.

Stocks that gained outnumbered those that lost 123 to 72, while 58 others were unchanged.

Friday saw 3.08 billion shares worth P7.851 billion change hands, compared to Thursday’s 2.748 billion issues worth P7.34 billion.

Foreigners remained predominantly sellers for a sixth straight day, marking Friday with P978.262-million net sales that were nevertheless 28% smaller than Thursday’s P1.359 billion. — with inputs from P. P. C. Marcelo

Transition plan approved for independent successor to PEMC

A TRANSITION plan for the creation of an independent market operator (IMO) for electricity trading has been approved by the board of directors of the Philippine Electricity Market Corp. (PEMC).

“This has been long overdue; it has been delayed for more than a decade. Now is the best time to usher in its independence as provided in the law,” Energy Secretary Alfonso G. Cusi said in a statement.

The move is line with Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) that calls for the creation of the IMO.

The new entity will take over from PEMC the management and operation of the Wholesale Electricity Spot Market (WESM), the country’s centralized venue for buyers and sellers to trade electricity as a commodity where its prices are based on actual use, or demand, and availability, or supply.

PEMC said: ““In light of this development, the IMO will be incorporated as a non-profit company which is independent of the government and industry participants. On the other hand, PEMC shall remain as the governing body of the spot market with board of directors composed of participant representatives and independent members.”

The creation of the IMO comes after Mr. Cusi in July created a transition committee that will come up with the way forward for WESM after he called for the resignation of PEMC’s previous board members. He gave the committee seven months from Aug. 1, 2017 to complete the task.

PEMC said the activities for the transition include a special meeting among market participants on Feb. 6, 2018 for the constitution of the corporation’s membership. A special board meeting will also be held to finalize and approve the amendments to PEMC articles of incorporation and by-laws.

It said the selection of IMO company incorporators and initial board members will be based on the submissions of the PEM board and the PEMC transition committee.

“By the second quarter of 2018, PEMC and the IMO shall enter into an operational agreement to formalize turnover of the use of the Market Management System (MMS) and other trading platforms as well as the transfer of market operations functions. Alongside these milestones, personnel placement and employment for the two companies will be completed in June,” PEMC said.

WESM has been operated by PEMC since June 2006. Under its rules, the market operator should have been an independent entity after a year of operation. Electricity trading began in Luzon in June 2006 and in the Visayas in December 2010. — Victor V. Saulon

Peso strengthens on profit-taking, remittances

THE peso recovered against the dollar on profit-taking, closing at its high with the US unit’s value taking a hit from surging remittances.

The peso ended yesterday’s session at P51.45 against the dollar, compared with P51.58 on Thursday.

The peso opened weaker at P51.63, falling to an intraday low of P51.76, before rallying at the close.

Volume rose to $1.12 billion from $878.15 million on Thursday.

“Although the dollar was strong overnight, we saw some profit-taking in the afternoon session,” a trader told BusinessWorld over the phone, adding that there was “some good selling from remittances.”

Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines, said: “The peso appreciated [yesterday], as investors locked in the dollar’s recent gains ahead of key US labor data.”

January US nonfarm payrolls are due for release late Friday, with the market consensus centered around an increase of up to 180,000 jobs from 148,000 jobs in December.

Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, said: “It seems investors are looking at other stories like the up and coming strength of the eurozone’s economy.”

Despite the peso’s recent weakness, the central bank has said that the currency is supported by healthy fundamentals.

“The peso is not expected to melt down because the underlying economic fundamentals of the economy are healthy,” central bank governor Nestor A. Espenilla, Jr. said, citing the”manageable” balance of payments (BoP) deficit.

The balance of payments (BoP) position was a $917-million surplus in December, a reversal from the $214-million deficit in December 2016, and the $44-million deficit booked in November.

The December surplus trimmed the full-year 2017 deficit to $863 million from the $1.78 billion seen in the previous month.

“The BOP deficit is very manageable and is but a reflection of an economy that’s growing rapidly in a way that is sustainable,” Mr. Espenilla said.

The country’s central banker added that the peso is far from any foreign exchange crisis, given the country’s large gross international reserves (GIR) as well as the investment-grade rating.

Preliminary data from BSP showed the country’s GIR totalled $81.467 billion last December, up from November’s $80.309 billion and $80.691 billion logged in December 2016.

“We are very far from any foreign exchange crisis given our large GIR buffer and secondary buffers as well as investment grade-rating that guarantees ready market access for any official and commercial financing requirement.”

In December, credit rating agency Fitch Ratings upgraded the country’s issuer default rating to “BBB” from “BBB-” with a “stable” outlook, a notch above the minimum investment grade and is aligned with the ratings earlier given by Moody’s Investors Service and S&P Global Ratings. — Karl Angelo N. Vidal

SWS: crime victimization rises to 7.6% but 2017 average a record-low 5.6%

VICTIMIZATION by any of the common crimes cited by the Social Weather Stations (SWS) rose 1.5 points from 6.5% in September last year to 7.6% in the polling group’s Fourth Quarter 2017 Social Weather Survey.

In contrast, however to this rise in reported crimes, the annual average for 2017 was a record-low 6.1% — 2.1 points below the 8.2% average in 2016. This is due to the record-low 3.7% quarterly victimization rate in June 2017, SWS said.

An estimated 1.6 million or 7.1% of families lost property to street robbery (pickpocket or robbery of personal property), burglary (break-ins), or carjacking — a 1.3-point increase from the 5.8% (est. 1.3 million) in September 2017, and the highest property crime rate since the 10.9% in June 2016.

Yet the resulting annual average on property crimes for 2017 was a record-low 5.6%, due to the record-low property crime rate of 3.1% in June that year.

The December survey also found 0.8% (est. 188,000) of families with members hurt by physical violence within the past six months — 0.3 point above the 0.5% (est. 115,000) in September 2017, and the highest since the 0.9% in June 2016.

STREET ROBBERIES, BREAK-INS
Despite lower 2017 averages, street robberies rose in Metro Manila by 3 points to 10.3% in December and in the Visayas by 1 point to 5%. But street robberies fell in Balance Luzon by 0.3 point to 3.7% and in Mindanao by 1 point to 2.7% in December.

Break-ins also fell 1 point in Mindanao to 2.3% in December, but rose in Metro Manila by 1.3 points to 5.3%, in Balance Luzon by 1.6 points t o 3.3%, and in the Visayas by 2 points to 3.7%.

Despite lower 2017 averages, fear of burglaries rose Balance Luzon (10 points 64% in December), Metro Manila (2 points 70%), and Mindanao (2 points to 47%), and remained steady in the Visayas (52% in September 2017 to 53% in December).

Apart from the figures on street robberies, fear of unsafe streets fell in Metro Manila (10 points to 54% in December) and Mindanao (7 points to 35%), remained steady in the Visayas (52% in September to 53% in December), but rose in Balance Luzon (3 points to 51% in December).

The survey found that among the 4.6% who have been victims of street robbery, 52% are men while 40% are women. Among men, victimization by street robbery rose by 19 points from 33% in September 2017.

Among women, victimization by street robbery fell by 20 points from 62% in September. This brings the 2017 average victimization by street robbery among women to 50.0%, 2.7 points above the 47.3% annual average in 2016. This is the highest since the 52.5% annual average in 2006.

Still more men (61%) than women (11%) have been victims of physical violence, according to the survey. SWS said this has been the trend since March 2005, with the exceptions of June 2011 and September 2016.

Victimization by physical violence among men rose by 3 points from 58% in September 2017. On the other hand, the proportion of women victimized by physical violence fell by 19 points from 30% in September.

FAMILY SAFETY
The December 2017 survey found that 57% of Filipino adults nationwide said the safety of their family is better now compared to six months ago, 36% said it is the same as before, and 6% said it is worse now.

Compared to September 2017, those who said their family safety is better now increased by 7 points from 50%, those who said it is same as before was unchanged from 36%, and those who said that is worse now decreased by 8 points from 14%.

By area, the proportion of those who said their family safety is better now compared to six months ago is highest in Mindanao at 71%, followed by Metro Manila at 63%, Visayas at 59%, and Balance Luzon at 47%. It rose by 11 points in Visayas, 10 points in Metro Manila, 7 points in Mindanao, and 4 points in Balance Luzon.

By locale, it rose by 9 points among urban dwellers to 62% in December, and 6 points among rural dwellers to 53%.

By class, it rose by 12 points among class E to 52% in December, 6 points among class D to 58%, and 2 points among classes ABC to 51%.

By sex, it rose by 10 points among women ,to 58% in December, and 4 points among men, to 56%.

By age group, it rose by 15 points among 35-44 year olds, to 61% in December, 8 points among 45-54 year olds to 53%, 6 points among 25-34 year olds to 56%, 5 points among 18-24 year olds to 61%, and 2 points among 55 years old and up to 57% in December.

By education, it rose by 12 points among non-elementary graduates to 61% in December, 9 points among elementary graduates to 55%, 5 points among high school graduates to 58%, and 2 points among college graduates to 56%.

DRUG ADDICTS, CARNAPPING
The proportion of those reporting many drug addicts in their neighborhood fell by 12 points in Metro Manila, from 62% in September 2017 to 50% in December 2017. However, it rose by 3 points in the Visayas to 43% 3 points in Mindanao to 30%, and 11 points in Balance Luzon to 45%.

For three consecutive quarters since June 2017, none of the sample in Mindanao reported being victimized by carnapping. It was 0.8% in March 2017.

In contrast, carnapping in Metro Manila rose by 1.1 points from zero in September to 1.1% in December. Families victimized by carnapping also rose in Balance Luzon by 1.1 points to 1.5%, and in the Visayas to 1.8% in December after three consecutive quarters of zero reports from March to September.

The survey was conducted from December 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).

Aquino, Abad, Garin charged for election spending on Dengvaxia

By Minde Nyl R. Dela Cruz

THE Volunteers Against Crime and Corruption (VACC) and former Department of Health (DoH) consultant Francis Cruz on Friday, Feb. 2, filed a joint complaint-affidavit before the Commission on Elections against former president Benigno S.C. Aquino III and officials of the DOH for alleged election offense in connection with the procurement of the controversial Dengvaxia vaccine.

Aside from the Mr. Aquino, former budget secretary Florencio B. Abad and former health secretary Janette P. Loreto-Garin were also named respondents.

VACC and Mr. Cruz said the respondents violated the Omnibus Election Code for using P3 billion in public funds in the procurement of the Dengvaxia vaccine and implementation of the Dengue Immunization Program, 45 days before the 2016 general election.

The complainants accused Mr. Aquino of using public funds “to further the candidacies of his partymates (in the Liberal Party), especially those vying for the presidential, vice-presidential and senatorial post(s), or otherwise influence or entice the voters to throw their support or vote for the candidates for president, vice-president and senator of his party in the May 2016 elections, contrary to sec. 261 (o) of said law.”

Section 261 (o) of the Omnibus Election Code prohibits the use of public funds for an election campaign.

VACC and Mr. Cruz also accused the respondents of violating Section 261 (v) which prohibits the release of public funds 45 days before the election.

“In the case of other DOH officials, they are liable for being involved, directly or indirectly, in the first round of implementation of the Dengue Immunization Program on April 4, 2016 or during the election ban,” the complaint-affidavit read.

The complainants said that “some DOH officials may have conspired with Aquino III, Abad, and Garin in the commission of the aforestated election law violations” and added that they “should also be investigated.”

Other past and present DoH officials also named in the complaint are undersecretaries Ma. Carolina Vidal-Taiño, Gerardo V. Bayugo, Lilibeth C. David, and Mario C. Villaverde; assistant secretaries Lyndon L. Lee Suy, Nestor F. Santiago; financial management and service director Laureano C. Cruz; officer-in-charge directors Maria Joyce U. Ducusin and Mar Wynn C. Bello; DoH directors Leonita P. Gorgolon, Rio L. Magpantay, and Ariel I. Valencia; Philippine Children’s Medical Center director Julius A. Lecciones; retired DoH undersecretary Nemesio T. Gako; resigned DoH undersecretaries Vicente Y. Belizario Jr. and Kenneth Y. Hartigan-Go; and resigned head executive assistant to then Secretary Garin, Yolanda E. Oliveros.

The Dengue Immunization Program began in April 2016, aimed at immunizing public schoolchildren aged 9 and above. In November last year, however, Sanofi Pasteur issued a warning that the vaccine should only be administered to patients who have previously contracted dengue, otherwise the vaccine could risk exposure to a more severe strain of the virus.

Sol-Gen: Ombudsman’s impeachment solution to impasse on Carandang’s fate

SOLICITOR-GENERAL Jose C. Calida in a statement on Friday suggested Ombudsman Conchita Carpio-Morales’s impeachment as “an obvious solution to the seeming impasse” over the suspension of her Overall Deputy Ombudsman (ODO) Melchor Arthur H. Carandang.

Ms. Morales is defying Malacañang’s suspension last Monday of Mr. Carandang, who had been investigating the alleged hidden wealth of President Rodrigo R. Duterte and his family, partly on the basis of information by the Anti-Money Laundering Council not authorized, however, by the council.

Ms. Morales, for her part, cited a 2014 Supreme Court ruling (Gonzales v. Office of the President) declaring “unconstitutional the administrative disciplinary jurisdiction of the President over deputy ombudsmen,” as she noted.

Mr. Calida in his statement said: “When the Ombudsman inhibited and left her ODO to decide in her stead, a procedural, legal, and ethical vacuum was created. The Constitution states that ODO is not an impeachable officer. The Ombudsman cannot also discipline the ODO for acts committed in a case where she inhibited herself as she will contradict herself. Neither can the ODO be disciplined by the other Deputy Ombudsmen due to lack of legal basis. This legal and ethical vacuum was not contemplated by the Supreme Court’s 2014 Gonzales decision. A deeply divided SC may have favored Deputy Ombudsman Emilio Gonzales then, but who will now discipline ODO Carandang who was acting under Ombudsman Morales’ fiat?”

He added: “There is an obvious solution to the seeming impasse. Section 2, Article XI of the Constitution states, “The President, the Vice-President, the Members of the Supreme Court, the Members of the Constitutional Commissions, and the Ombudsman may be removed from office, on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust.” — with M.N.Dela Cruz

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