SC asked to nullify Taguig ordinance

October 28, 2024 | 9:36 pm

Supreme_Court_of_the_Philippines — PHOTO BY MIKE GONZALEZ

A FORMER Associate Justice of the Supreme Court (SC) on Monday asked the high court to nullify an ordinance passed by the Taguig City Council last month that expanded the number of councilor seats in the city to twelve from eight.

Former Associate Justice Dante O. Tiñga said the move was illegal and overstepped the council’s authority.

According to him, the ordinance, enacted on Sept. 16, would increase Taguig’s council seats to a total of 24 across its two councilor districts from 16.

He contended that this adjustment requires a law passed by Congress, as local councils are not empowered to unilaterally increase councilor seats.

He cited three main points: the resolution did not undergo the Constitution’s prescribed three readings, and it lacks the president’s signature. He also cited a decision, in which the SC ruled in the case of Ang Nars Party-List, et al. v. The Executive Secretary (2019), declaring that even a Joint Resolution approved by both Houses of Congress and signed by the President as “void and unconstitutional” as it amended a provision of an earlier law.

The petition also named the Commission on Elections (Comelec) as a respondent for promulgating the ordinance through a resolution, alongside both chambers of Congress for endorsing it via a concurrent resolution.

“The action of the Comelec was based on the Sangguniang Panlungsod ordinance and the sense of the Senate and the House of Representatives via a concurrent resolution. Meaning, we did not act based on capriciousness, arbitrariness, and in a despotic manner but in ensuring that the electorate of the 10 barangays are not disenfranchise[d],” Comelec Chairman George Erwin M. Garcia told reporters in a Viber message.

“In several instances, the SC gave us leeway or elbow room just to ensure equal opportunity for all in the conduct of orderly and peaceful elections.”

Taguig City Mayor Maria Laarni “Lani” L. Cayetano did not immediately respond to a text message seeking comment. — Chloe Mari A. Hufana

Arrest of 3 NDFP consultants meant to spoil peace talks

October 28, 2024 | 9:36 pm

BAGUIO CITY — The negotiating panel of the National Democratic Front of the Philippines (NDFP) claimed that the arrest of three of their consultants by government security forces was deliberate and are meant to “create hostile conditions to obstruct the peace negotiations.”

The arrests of NDFP consultants Simon Fiaryao Naogsan, Sr., Porferio Tuna, Jr., and Wigberto Villarico, the NDFP negotiating panel on Monday said in a statement, “undermine the peace process and violates the basic principles of mutual respect and accountability.”

“These consultants have dedicated their lives to representing the Filipino people’s interests and are integral in the resumption of peace negotiations.”

Their arrest, it added, “serve only to foster growing distrust and heightened tensions at a time when space for dialogue is critical.”

The NDFP negotiating panel stressed that the arrest of the three consultants “is yet another in a string of blatant violations by the Government of the Republic of the Philippines (GRP) of the Joint Agreement on Safety and Immunity Guarantees (JASIG), signed to provide both parties to the negotiations the conducive conditions to engage without the threat of arrest, killing or harassment.”

The NDFP panel rebuked National Security Council Spokesperson Jonathan E. Malaya’s declaration that JASIG is no longer in effect, saying “(the) effectivity of these agreements cannot be simply rescinded through a mere press conference or media statement.”

The NDFP panel insisted that “such agreements are the product of formal negotiations and mutual commitment, rooted in both national and international legal principles, and cannot be undone unilaterally or casually.”

The termination of an agreement like JASIG requires formal procedures as stipulated in the document signed by both parties in 1995, the NDFP panel added.

Mr. Malaya’s declaration that Mr. Villarico is not an NDFP consultant was also refuted by the NDFP Panel, saying, “in fact, Wigberto Villarico is an NDFP consultant, regularly engaged by the NDFP Negotiating Panel as a key representative from the Southern Tagalog region. His role is crucial in representing concerns of farmers and workers in the region and in advancing the substantive items in the negotiations including in the process of drafting the Comprehensive Agreement on Social and Economic Reforms.”

The NDFP Panel also denounced how NDFP consultants and negotiators “(are) repeatedly subjected to arbitrary arrests, extrajudicial killings, and torture,” thus, leading them to believe, “the GRP has made a mockery of its own supposed commitment to peace.”

While the NDFP Panel reiterated its openness to resume negotiations, it said “how can we possibly engage in meaningful negotiations when our negotiators and consultants are subjected to arrests, killings, and torture.”

“This issue is both a practical and political obstacle to the ongoing talks, as it threatens not only the safety of the NDFP consultants, negotiators and staff but also undermines the very foundation of trust and dialogue necessary for any productive peace negotiation to continue,” Julie de Lima, NDFP Negotiating Panel chairperson said. — Artemio A. Dumlao

Customs intercepts smuggled fuel Davao Oriental

October 28, 2024 | 9:36 pm

THE Customs bureau recently seized five trucks carrying around 238,000 liters of smuggled fuel in Davao Oriental.

In a joint operation with the Philippine Army, the Bureau of Customs (BoC) found five lorries carrying 238,000 liters of unmarked diesel on Oct. 22. The BoC had yet to disclose the value of the unmarked fuel.

Customs authorities use a unique chemical marker to indicate that imported and locally refined petroleum products have been paid the appropriate taxes. This would help avoid smuggling and misdeclaration of fuel products.

“Based on the intelligence information from the 10^th Infantry Division, fuel suspected to be unmarked was being smuggled in Tarragona, Davao Oriental. Several tanker trucks were observed in the area, raising suspicion of smuggling activities,” the agency said.

Authorities received reports that a vessel, identified as Aquaman 3, moved offshore following the transfer of fuel into lorry trucks headed toward Mati in Davao Oriental. The lorries were caught at a checkpoint.

Tests conducted on all fuel samples showed a 0% relative marker level, which meant that the fuel products were transported without the proper marking from Customs authorities.

This is referred to as the “paihi” modus, in which larger tankers off-load fuel to smaller vessels to escape tax payments.

Under its Fuel Marking Program, the bureau has marked around 9.89 billion liters of fuel in the first half, translating to P121.72 billion in duties and taxes, according to its mid-year report. — Beatriz D. Marie Cruz

PDEA-BARMM nabs 3 drug den operators

October 28, 2024 | 9:35 pm

COTABATO CITY — Anti-narcotics agents busted three drug traffickers and closed their drug den in an operation in Barangay Rosary Heights 10 in this city on Saturday.

The cohorts Rodrigo P. Pardillo, Sr. and his son, Rodrigo D. Pardillo, Jr., and Jay-Jay B. Apiag are now locked in a detention facility of the Philippine Drug Enforcement Agency-Bangsamoro Autonomous Region in Muslim Mindanao (PDEA-BARMM) at the Pedro Colina Hill Area in Cotabato City.

Gil Cesario P. Castro, director of PDEA-BARMM, told reporters on Monday morning that the three were immediately arrested after selling P149,000 worth of crystal meth (shabu) to their non-uniformed agents and policemen in a tradeoff.

Mr. Castro said the operation was laid with the help of the Cotabato City Police Office and barangay officials. The drug den of the three now detained shabu dealers was immediately locked by PDEA-BARMM agents, now guarded by barangay officials and volunteer community watchmen. — John Felix M. Unson

Suspect in 2019 Laguna murder arrested in Lanao del Sur

October 28, 2024 | 9:35 pm

criminal-handcuffs — STOCK PHOTO | Image by rawpixel.com from Freepik

COTABATO CITY — The Bangsamoro regional police will turn over to the Laguna Provincial Police Office a suspect in the brutal 2019 murder of a resident of Biñan City, arrested by policemen and soldiers in Barangay Buadi Didingun in Taraka, Lanao del Sur last week.

The detained suspect, a Maranao, was implicated in the killing of Karl Laurence Demerey in Biñan City in June 2019.

Two other accomplices, also Maranaos, had been arrested one after another by operatives of the Biñan City Police Office after the incident.

Brig. Gen. Romeo J. Macapaz, director of the Police Regional Office-Bangsamoro Autonomous Region in Muslim Mindanao, told reporters on Monday that the operation was assisted by troops from the Army’s 5^th Infantry Battalion under Lt. Col. Eduard L. Sia-ed.

Mr. Macapaz said the suspect voluntarily yielded when combined personnel of the Lanao del Sur Provincial Police Office and the Taraka Municipal Police Station and soldiers from the 5^th IB arrived at his hideout in Barangay Buadi Didingun and showed him a warrant for his arrest from the Regional Trial Court Branch 152 in Biñan City in Laguna, signed by Judge Jaime F. Banatin.

Mr. Macapaz said they will endorse him, through the police in Laguna, to the court that ordered his arrest. — John Felix M. Unson

Peso recovers on dovish Fed bets

October 28, 2024 | 9:00 pm

THE PESO rose against the dollar on Monday amid expectations that the US Federal Reserve would adopt a dovish stance at its policy review next week.

The local unit closed at P58.225 per dollar on Monday, strengthening by 9.5 centavos from its P58.32 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session weaker than Friday’s close at P58.40 against the dollar. Its intraday best was its closing level of P58.225, while its worst showing was at P58.43 versus the greenback.

Dollars exchanged went down to $1.33 billion on Monday from $1.69 billion on Friday.

The peso recovered against the dollar on expectations of a dovish decision by the Fed next month, a trader said by phone.

Four Federal Reserve policy makers last week expressed support for further interest rate cuts, but appeared to differ on how fast or far they believe any cuts should go, Reuters reported.

Three of them, citing the strength of the economy and an uncertain outlook, expressed a preference for going slow, using words like “modest” and “gradual” to describe their views on the right pace for rate cuts.

The fourth, San Francisco Fed President Mary Daly, said she feels Fed policy is “very tight” and does not believe that a strong economy, as long as inflation continues to fall, should keep the central bank from continuing to reduce rates.

The remarks provide a small taste of what’s expected to be a broad but closed-door debate of the appropriate path for policy at the Fed’s upcoming policy meeting, on Nov. 6-7.

There was also some profit taking after the Bangko Sentral ng Pilipinas intervened when the peso reached the P58.40 level, the trader added.

Lower global crude prices recently also supported the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Tuesday, the trader sees the peso moving between P58 and P58.50 per dollar, while Mr. Ricafort expects it to range from P58.10 to P58.30. — AMCS with Reuters

Philippine shares inch up on companies’ earnings

October 28, 2024 | 9:00 pm

PHILIPPINE SHARES inched up on Monday as more companies released their third-quarter results, although trading volume remained thin as the market stayed cautious ahead of the US presidential vote and the release of key economic data next week.

The Philippine Stock Exchange index (PSEi) rose by 0.39% or 29.01 points to 7,343.24 on Monday, while the broader all shares improved by 0.47% or 18.93 points to end at 4,036.20.

“Philippine shares made another recovery after falling in the red intraday as more earnings continue to trickle in while investors get ready for another trading week ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The PSEi opened Monday’s session at 7,314.42 and dropped to as low as 7,296.03 intraday before recouping its losses at the closing bell.

Companies that released their end-September results on Monday included Manila Electric Co. and BDO Unibank, Inc., among others.

First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message that the PSEi was “flattish… given the peso’s weakness and a string of unknowns like the Philippine third-quarter gross domestic product (GDP).”

The peso closed at P58.225 per dollar on Monday, rising by 9.5 centavos from its P58.32 finish on Friday, according to Bankers Association of the Philippines data.

Meanwhile, the Philippine Statistics Authority will release third-quarter GDP data on Nov. 7.

Markets are also pricing in the possibility of Republican candidate Donald J. Trump winning the Nov. 5 US presidential election, which has pushed up US and local yields, Ms. Ulang added.

Benchmark US Treasury yields climbed to three-month highs last week, reflecting expectations of a potentially less dovish US Federal Reserve as well as possibly increased spending under the next president, Reuters reported.

Bets on Mr. Trump prevailing have risen on prediction markets in recent weeks, with the Republican seen as backing policies including tariffs that could lead to higher inflation.

At 4.23%, benchmark 10-year Treasury yields are up 43 basis points through October.

All sectoral indices ended higher on Monday. Mining and oil rose by 0.89% or 77.14 points to 8,684.12; financials went up by 0.87% or 20.92 points to 2,408.32; industrials climbed by 0.39% or 39.18 points to 9,926.93; property gained 0.28% or 8.17 points to end at 2,857.27; services added 0.2% or 4.50 points to close at 2,246.29; and holding firms inched up by 0.15% or 9.63 points to 6,190.76.

Value turnover declined to P4.13 billion on Monday with 873.27 million shares traded from the P4.2 billion with 729.88 million issues that changed hands on Friday.

Decliners outnumbered advancers, 99 versus 90, while 55 names were unchanged.

Net foreign selling stood at P47.81 million on Monday, a reversal of the P7.61 million in net buying recorded on Friday. — R.M.D. Ochave with Reuters

Korean chamber names curbs on land ownership as key investor concern

October 28, 2024 | 8:34 pm

By Justine Irish D. Tabile, Reporter

THE lifting of foreign ownership restrictions on land will help attract more South Korean investors to the Philippines, the Korean Chamber of Commerce Philippines (KCCP) said.

On the sidelines of the 13^th Arangkada Philippines Forum, KCCP President Joseph Um told BusinessWorld that South Korean companies are constantly comparing the opportunities within the region, especially in the context of conditions in Vietnam, Thailand, and other Asian countries.

“I think foreign ownership of land is something the Philippines still has to open up,” he added.

He said that the Philippines might have already reaped the benefits from even slightly more liberal rules on land.

“Even just partially with some restrictions, which I think the government can study in collaboration with the Congress, I think that will benefit a lot,” he said.

“From what I know, less than 10% (of potential Korean manufacturing investment) is coming in. The others go to Vietnam and other countries,” he added.

He also cited the archipelagic nature of the Philippines, which is less advantageous logistically.

Article 12 of the Constitution limits foreign ownership of land and businesses to 40%, with the remaining 60% set aside exclusively to Filipino citizens or corporations. Company ownership curbs have since been loosened in industries like renewable energy, where 100% investment has been allowed.

The House of Representatives approved a proposal to lift foreign ownership limits in the Constitution. It only covers the liberalization of ownership in public utilities, education and advertising.

Republic Act No. 7652, or the Investors’ Lease Act, allows foreign investors to lease private land as long as the aggregate period of the lease contract does not exceed 50 years, renewable once for a period of no longer than 25 years.

Three bills currently pending at the House of Representatives Trade and Industry Committee seek to extend this term to 99 years, while a similar bill was filed by Senate President Francis G. Escudero on July 2.

The amendments to the Investors’ Lease Act is among the priority bills the Legislative-Executive Development Advisory Council identified for passage within the 19^th Congress.

SOUTH KOREA FTA
Asked for updates to the South Korea-Philippines free trade agreement (FTA), Mr. Um said that the ratification is going slow on the Korean side.

“It is just a matter of time, and I think it is a little slow on the side of Korea, but I heard during South Korean President Suk Yeol Yoon’s visit early this month that they are pushing for within the year.

However, he noted that the ratification of FTA is beyond the president’s control but is in the hands of the National Assembly.

“(Ratification) is not an issue; it is just they simply have many matters to settle. What I want to emphasize is that it is not that they do not want to approve this FTA but that the National Assembly itself has many agendas to settle, and sometimes the ruling party and opposition have many issues to fight on,” he said.

“But this will definitely have (trade benefits) because although it does not cover 100% (of the products we trade), major items are covered, so both countries will benefit, especially the consumer side because that is where they will enjoy reduced tariffs,” he added.

Unresolved flood problems deemed obstacle to reaching upper middle-income status

October 28, 2024 | 8:33 pm

Flood-Stranded commuters — PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES may find it difficult to graduate to upper middle-income status if the government does not solve the problem of flooding, GlobalSource Partners said.

“Despite the government of President Marcos spending about half a trillion pesos on flood control projects in just over two years, and there are about 5,000 of them, nothing seems to have come out of such massive public spending,” GlobalSource Country Analyst Diwa C. Guinigundo said in a brief.

“If this persistent issue of flooding is not addressed and addressed decisively, the Philippines will find it extra difficult to break out of the lower middle-income group.”

The Philippines remained a lower middle-income country with a GNI per capita of $4,230 in 2023, according to the World Bank’s income classification standards. It has remained a lower middle-income economy since 1987.

Gross domestic product (GDP) needs to expand by at least 6% annually in the near term to ensure significant growth in incomes. However, the persistence of natural calamities will continue to hamper growth, Mr. Guinigundo said.

“Natural calamities go with the territory. They challenge the durability of infrastructure and sustainability of economic growth,” Mr. Guinigundo said, noting that Typhoon Yolanda (international name: Haiyan) in 2013 alone cost the Philippines around $13 billion or around 5% of gross domestic product.

“More outlays for flood control will just be dissipated and money allocated for key infrastructure projects will just be wasted because they are likely to be devastated during similar weather shocks.”

The government must establish a robust flood control and management plan — combining both engineering and localized planning best practices — to ensure the proper use of flood control budgets, Mr. Guinigundo said.

“For despite all the public money thrown at so-called flood control, the Philippines has remained on top of the World Risk Report for 2024 for its lack of coping and adaptive capabilities.”

The Philippine risk score rose to 46.91 this year from 46.86 in 2023, remaining the most at-risk country for the 16th straight year, according to the World Risk Index.

As of early Monday morning, deaths caused by tropical storm Kristine (international name: Trami) hit 116, according to the National Disaster Risk Reduction and Management Council.

“Effect on life and property could have been somewhat mitigated if preemptive measures had been taken earlier when PAGASA (the government weather service) warned in its advisory that the tropical cyclone was serious, as it turned out to be. For many cities and provinces, it was the worst in a couple of decades,” Mr. Guinigundo said. — Beatriz Marie D. Cruz

Corn, cassava targeted for yield enhancement

October 28, 2024 | 8:32 pm

THE Department of Agriculture (DA) said on Monday that it is planning to increase the yields of corn and cassava crops to a level sufficient to meet at least 81% of domestic demand.

In a statement, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that by 2025, the DA aims to increase yields for yellow corn to 5.17 metric tons (MT) per hectare, for white corn 2.29 MT per hectare, and for cassava 11.73 MT per hectare.

The Philippines typically imports yellow corn, soybeans, and sorghum as raw materials in the manufacture of animal feed.

“Increasing the production of white corn will provide more options for available food staples, which is essential for achieving food security,” he added.

The DA allocated about P5.32 billion for the National Corn Program next year which will fund planting materials, fertilizer, training, postharvest machinery, and small-scale irrigation projects.

“The program aims to boost production of quality corn, cassava, sorghum, and soybean for food, feed, and industrial use while empowering farmers and stakeholders with science-based interventions and support services,” the DA added.

To increase corn production, the department is pursuing the Corn Production Enhancement Project.

“The project provides seed and fertilizers to eligible farmers, and as of August 2024, we have distributed over 1,700 metric tons of corn seed and nearly 2.9 million cassava seeds, along with almost 6,000 metric tons of fertilizer,” Mr. Tiu Laurel said.

The Philippine Maize Federation, Inc.’s White Corn Industry Roadmap targets increased consumption of white corn and increased domestic supply. — Adrian H. Halili

SEC: Digitalization supports PHL bid to exit ‘gray list’

October 28, 2024 | 8:32 pm

THE Securities and Exchange Commission (SEC) said its digitalization efforts are being undertaken in support of the Philippines’ bid to exit the Financial Action Task Force’s (FATF) “gray list,” which could happen by next year.

“For our part, the SEC will continue investing in digitalizing and optimizing resources to ensure that the reforms we have implemented are sustainable,” SEC Chairman Emilio B. Aquino said in a statement on Monday.

“We will also remain unwavering in our dedication to transparency and compliance, as we build on our gains and work alongside local and international partners to further strengthen our anti-money laundering and combating of financing of terrorism (AML/CFT) efforts,” he added.

In its October plenary, global anti-money laundering regulator FATF kept the Philippines on its list of jurisdictions subject to increased monitoring for dirty money risks. The Philippines has been on the gray list since June 2021.

However, the FATF noted that the Philippines has addressed the remaining deficiencies in the recommended action items to improve its AML/CFT regime.

The FATF is planning to visit the Philippines by February to validate the progress claimed.

“FATF member countries impose restrictions and additional checks, and possibly refusal, of financial transactions with countries in the blacklist. These result in failed transactions, delays, and costs that may be passed on to consumers,” the SEC said.

The SEC has since required a declaration of beneficial ownership to accompany the general information sheets of all corporations.

In 2021, the SEC prohibited the issuance and sale of bearer shares and bearer share warrants to promote transparency and discourage the misuse of corporations for illicit activities.

The commission also invested in technology and human resources to simplify the ease of registration and compliance.

“Looking forward, the SEC is committed to sustaining its AML/CFT reforms through enhanced supervision, continuous audits, and the inclusion of beneficial ownership registry initiatives within its strategic plan for 2023 to 2028,” Mr. Aquino said.

“These measures underscore the SEC’s long-term commitment to protecting the financial system against illicit activities while supporting the Philippines’ journey toward a full exit from the FATF gray list,” he added. — Revin Mikhael D. Ochave

Farm chamber supports more dairy cattle imports

October 28, 2024 | 8:31 pm

dairy farm-cows-cattle — PHILIPPINE STAR/ ANDY ZAPATA JR.

By Adrian H. Halili, Reporter

THE Philippine Chamber of Agriculture and Food, Inc. (PCAF) said it supports efforts to expand the dairy cattle herd via imports, and cited the need to build up the industry’s capabilities in artificial insemination.

PCAF President Danilo V. Fausto said: “I hope we can import more dairy animals to increase our herd and also build up our artificial insemination (AI) program,” he said by telephone.

Mr. Fausto added that the government should also increase the number of AI technicians and capacitate them through incentives.

The National Dairy Authority (NDA) has said that it plans to import dairy cattle for its stock farms. The acclimated offspring of these cattle will then be distributed to dairy farmers.

The Philippines imports the majority of its dairy requirements as domestic production cannot meet demand.

“With those measures, little by little, we hope to increase the share of our production versus the national demand,” Mr. Fausto said.

The NDA is targeting a sufficiency level of 2.66% by 2025. As of June, milk sufficiency was 1.54%.

In a report, the US Department of Agriculture said that Philippine dairy imports are expected to rise to 3.1 million metric tons (MT) in liquid milk equivalent in 2025, amid an expected increase in domestic dairy production to 30,000 MT.

Additionally, Mr. Fausto said that the passage of the Philippine Livestock Industry Development Act could further provide the catalyst to grow the dairy industry.

“(The taxes collected) from the imports of dairy products will be rechanneled directly to the development of the dairy industry,” Mr. Fausto said.

He added that the proposed law would centralize the management of the dairy industry.

“It could also increase the regulatory function of the (NDA),” he said.

The Senate has approved Senate Bill 2558 on third and final reading. It does not yet have a counterpart measure in the House of Representatives.

The NDA aims to increase dairy production to 80 million liters per year by 2028 to increase the share of domestic production to about 5% of dairy demand.