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Cuy appointed to DDB, Año as OIC to DILG

PRESIDENT Rodrigo R. Duterte has appointed former Department of Interior and Local Government (DILG) officer-in-charge Catalino S. Cuy as the new chairman of the Dangerous Drugs Board (DDB), and retired Armed Forces chief Eduardo M. Año as the new officer-in-charge of the DILG.

Mr. Cuy assumes the post formerly occupied by Dionisio R. Santiago and Benjamin P. Reyes, who were both relieved by Mr. Duterte for contradicting his view on the scope of the country’s drug problem.

Mr. Duterte took offense, in particular, with Mr. Santiago’s statement that the 10,000-bed rehabilitation center in Nueva Ecija was a mistake and a waste of money. The facility was built in 2016 through funding from Chinese real estate billionaire Huang Rulun.

The new DDB chief will have a brief term until July 4 this year, as shown by a copy of his appointment letter released to the media on Friday, Jan. 5.

Mr. Año, for his part, takes over the position of former interior secretary Ismael D. Sueno who was fired by Mr. Duterte in April last year due to corruption allegations. Being recently retired, however, Mr. Año cannot yet be given a full appointment.

The President signed the appointment papers of Messrs. Cuy and Año on Thursday, Jan. 4. — Arjay L. Balinbin

Duterte accepts son’s resignation as Davao vice-mayor

PRESIDENT Rodrigo R. Duterte “has already accepted this afternoon the resignation of Davao City Vice-Mayor Paolo (Z.) Duterte,” presidential spokesman Harry L. Roque, Jr. confirmed on Friday, Jan. 5.

The younger Mr. Duterte announced his resignation on Christmas Day before the Davao City Council, citing personal and other issues. His resignation follows some three months after he and brother-in-law Manases R. Carpio were implicated by opposition Senator Antonio F. Trillanes IV in a so-called Davao Group operating in smuggling and drug trafficking. Days after Mr. Duterte’s resignation, he and Mr. Carpio sued Mr. Trillanes in a Davao court.

In a letter to Mr. Duterte by Executive Secretary Salvador C. Medialdea dated Friday, Jan. 5, Mr. Medialdea said, “On behalf of President Rodrigo Roa Duterte, this is to inform you that your resignation is hereby accepted, effective immediately.”

Mr. Duterte’s sister, Davao Mayor Sara Z. Duterte, and Officer-in-Charge Catalino S. Cuy of the Interior Department were also furnished copies of Mr. Medialdea’s letter.

Grab files petition for 5% fare increase

GRAB Philippines (MyTAXI.PH, Inc.) has filed a petition for a 5% fare increase in response to the increase in excise taxes for fuel, among others, under the new tax reform program.

The ride-sharing company filed on Friday, Jan. 5, with the Land Transportation Franchising and Regulatory Board (LTFRB) a petition to increase its P10 to P14 per kilometer charge to P11 to P15 per kilometer, and increase its P2 per minute charge to P2.10 per minute, to compensate Grab drivers for impending price increases in fuel and spare parts from higher excise taxes.

“The content is 10 centavos increase per minute so the current cap on per minute is P2, so we’re asking P2.10. The current cap per kilometer is P10-P14, we’re asking for P11-P15 per kilometer. It’s only small, but the reason for doing this is because our drivers need to be able to take home enough pay for their livelihoods, with the TRAIN [Tax Reform for Acceleration and Inclusion] law and the implementation of the TRAIN law,” Grab Philippines communications head Leo Emmanuel Gonzales told reporters after the filing of the petition.

Mr. Gonzales said fares have not been adjusted since the imposition in December 2016 of fare caps on transport network companies (TNCs) by the LTFRB, while prices of commodities and demand for Grab services have increased.

“Since December 2016, the first time LTFRB put a cap on our fares, demand has increased as of December by 30%, just this December… You can imagine the increase of demand, and yet the fares have not yet been adjusted. Prices of commodities have also increased. We just feel that it’s just fair and right, this petition to slightly increase the fares. We hope through our petition the Board can see that what we’re asking is just right,” Mr. Gonzales told reporters.

On Wednesday, Grab Philippines country head Brian P. Cu announced the company’s plan to file a petition for a fare increase. Mr. Cu said that a full-time Grab driver spends between P800 to P1,100 on fuel a day. With the new tax reform law, he said a driver faces a 5% rise in gas expenses and about a 2-3% increase in spare parts costs.

Excise taxes are estimated to increase by P2.50 per liter for diesel, and P7 per liter for gasoline.

A spokesperson for ride-sharing company Uber Philippines (Uber Systems, Inc.) said that the company currently has no plans to increase fares.

“No plans at this time. But we will monitor impact on driver earnings,” Catherine Avelino, head of communications for Uber, said in a text message. — Patrizia Paola C. Marcelo

CA rules against Mary Jane Veloso’s deposition in case against alleged recruiters

THE Court of Appeals (CA) has reversed a resolution by a local court allowing the deposition of convicted drug trafficker Ms. Mary Jane F. Veloso against her alleged recruiters Ms. Maria Cristina P. Sergio and Mr. Julius L. Lacanilao.

Ms. Veloso is unable to personally testify in the illegal recruitment case against Ms. Sergio and Mr. Lacanilao because of her continued detention in Yogyakarta, Indonesia, where she was scheduled for execution in 2015 until a last-minute stay that year.

She was apprehended in Indonesia in April 2010 after she was found in possession of 2.6 kilograms or 2,600 grams of heroin in her luggage. Possession of drugs is penalized by death under Indonesian laws.

Judge Anarica J. Castillo-Reyes of Nueva Ecija Regional Trial Court (RTC) Branch 88, in a resolution dated Aug. 16, 2016, ordered the taking of Ms. Veloso’s testimonies in Indonesia, but this was challenged by Ms. Sergio and Mr. Lacanilao.

The CA, in a ruling on Jan. 4, Thursday, said “the circumstances in this case call for the application of Rule 119” of the Revised Rules of Criminal Procedure which “categorically states that the conditional examination of a prosecution witness (Ms. Velos, in this case) shall be made before the court where the case is pending.”

This is in recognition of the constitutional right of confrontation and cross-examination of Ms. Maria Cristina P. Sergio and Mr. Julius L. Lacanilao, the two accused in the illegal recruitment case filed by the parents of Ms. Veloso.

“The respondent Judge has committed grave abuse of discretion when it granted the Motion for Leave of Court to Take the Testimony of Complainant Mary Jane Veloso by Deposition Upon Written lnterrogatories,” said the CA decision penned by Associate Justice Ramon M. Bato, Jr. and concurred by Associate Justices Manuel M. Barrios and Renato C. Francisco.

“We are not unmindful of the gravity of the offenses charged against the petitioners. Likewise, We are not oblivious of the sad and unfortunate fate that befell Mary Jane,” the decision stated.

A lawyer of Ms. Veloso said the CA ruling is “both frustrating and ironic.”

“We are disappointed that the taking her material testimony is being prevented by our own courts, the Court of Appeals in particular, upon the motion of the accused illegal recruiters’ defense team,” lawyer Edre U. Olalia of the National Union of People’s Lawyers (NUPL) said in a press statement. NUPL stands as the private prosecutors and Philippine counsel for Ms. Veloso.

Mr. Olalia insisted that “no fundamental right is violated” should Ms. Veloso testify in writing as the “counsel will be present when her disposition is taken in Indonesia in the presence not only of the same Philippine judge hearing the case” and “other concerned judicial and consular officials of the Philippines and Indonesia.”

“Given the novelty of the legal situation involving two jurisdictions and her circumstances of being detained in a foreign land unable or disallowed to go home as yet, her deposition would shed light on the truth, the whole truth and nothing but the truth,” Mr. Olalia added. — Minde Nyl R. Dela Cruz

Globe holds 2018 capex budget steady at $850 million

GLOBE Telecom, Inc. has set aside a capital expenditure (capex) budget of $850 million (P42.37 billion) for 2018, unchanged from a year earlier, primarily to meet demand for bandwidth-intensive content.

In a statement, the telecommunications company said the capex budget was approved by its board.

Globe President and CEO Ernest L. Cu told reporters in October that the company may keep capex unchanged in 2018.

“Majority of the company’s capex for 2018 is geared to meet customer demand for more bandwidth-intensive content, which, in turn, will support the revenue momentum of our data-related services”, Mr. Cu said in the statement.

Mr. Cu said capital spending for the year is intended to finance the delivery of fast Internet service to two million homes by 2020.

Part of the capex will also be used for the deployment of multiple-input, multiple-output (MIMO) technology to expand and enhance its long-term evolution (LTE) network.

Globe began deployment of LTE sites using the 700 MHz band in June 2016, after the company and PLDT, Inc. teamed up to buy the telecommunications assets of San Miguel Corp. for P69.1 billion.

In 2017 Globe’s capex budget rose $100 million to finance expansion of its mobile data network.

Globe chief financial officer (CFO) Rizza Maniego-Eala told reporters in October that Globe could issue retail bonds in 2018.

Globe’s attributable profit in the first nine months of 2017 was P12.99 billion, up 11% year-on-year, following a 6% increase in revenue to a record P95.14 billion.

It registered a 7% increase in mobile revenue in the nine months to P73.1 billion, led by strong uptake of mobile data. Home broadband revenue grew 8% to P11.7 billion, driving the company’s customer base to 1.26 million subscribers by the end of September. — Patrizia Paola C. Marcelo

NEDA lists rice-growing areas expected to be competitive under tariff scheme

THE National Economic Development Authority (NEDA) said it expects 39 rice-growing areas to remain competitive on a cost basis when rice moves to a tariff system for imports when quantitative restrictions (QR) are lifted.

Citing a study by its Agriculture, Natural Resources and Environment Staff (ANRES), NEDA said in a statement that the competitive areas have a P4 per-kilo cost advantage over Thai and Vietnamese rice imports which will be levied a 35% tariff.

“Rice per kilogram in these areas will be P4 cheaper compared with Thai and Vietnamese rice. And these provinces can produce about 73% of the total food requirement of the country,” Socioeconomic Planning Secretary Ernesto M. Pernia said.

The growing areas where production costs are deemed competitive are: Nueva Ecija, Kalinga, Pampanga, Bataan, Biliran, Bulacan, Zamboanga del Sur, Isabela, Bukidnon, Nueva Vizcaya, Laguna, Pangasinan, Lanao del Norte, Aurora, Compostela Valley, Albay, Leyte, Zamboanga Sibugay, Negros Occidental, South Cotabato, Camarines Sur, Zamboanga City, Sultan Kudarat, Sorsogon, Cavite, Palawan, Antique, Iloilo, Aklan, Surigao del Sur, Capiz, Masbate, Catanduanes, Eastern Samar, Northern Samar, Basilan, Western Samar, Guimaras, and Maguindanao.

NEDA said growing areas have the potential to increase their yields through increased use of hybrid seed and more advanced farm management practics.

NEDA also proposed upgrades to the irrigation system, further mechanization, increasing infrastructure connectivity and boosting farm credit to increase yields across the board.

ANRES also noted that seven provinces had yields better than the national average of 4 metric tons (MT) per hectare (ha.), though costs are higher. It did not list these areas.

Of the areas deemed competitive on cost, 14 had yields averaging 3.5 MT/ha., or below the national average. These are Palawan, Antique, Iloilo, Aklan, Surigao del Sur, Capiz, Masbate, Catanduanes, Eastern Samar, Northern Samar, Basilan, Samar, Guimaras, and Maguindanao.

The QR on rice imports is a special privilege granted by the World Trade Organization (WTO), which has been extended three times since it was first imposed in 1995. In April 2017, before the termination of the WTO Special Treatment on rice, President Rodrigo R. Duterte issued Executive Order No. 23 retaining the Minimum Access Value (MAV) level of 805,200 MT and extending the lower tariff rates imposed on some commodities for three years or until the Agricultural Tariffication Law is amended.

NEDA is pushing for the amendment of Republic Act No. 8178 or the Agricultural Tariffication Act of 1996 to pave the way for the removal of the QR on rice imports and the imposition of the 35% tariff rate instead.

“The revenue from the 35% tariff can be used to supplement available government funds to develop the agriculture sector and bring it at par with our ASEAN counterparts,” Mr. Pernia said.

CA affirms ruling against martial-law victims in claims against Marcos estate

THE Court of Appeals (CA) on Wednesday, Jan. 3, denied for lack of merit a motion for reconsideration filed by a coalition of victims of human rights violation during the martial-law regime of the late dictator Ferdinand E. Marcos.

The resolution penned by Associate Justice Normandie B. Pizarro and concurred by Associate Justices Samuel H. Gaerlan and Jhosep Y. Lopez read in part: “This Court finds no new or substantial matter that would warrant a reversal or modification of our July 7, 2017 decision affirming the assailed disposition.”

The group of martial-law victims, represented by Mses. Priscilla Mijares, Loreta Ann P. Rosales, Hilda B. Narciso Jr., and Mariani Dimaranan SFIC, and Mr. Joel C. Lamangan had earlier filed a petition calling for the recognition of the Class Action No. MDL 840 filed before the Hawaii District Court.

The Hawaiian Court ruled that the complainants should be given $2 billion worth compensation from the estate of the late Mr. Marcos.

The CA reiterated its previous ruling that “the categorization or classification of the claimants into three (3) subclasses is a tacit recognition that no common question of law and fact exists between/among the claimants,” and added that MDL 840 was “improperly lodged as a class suit.”

Likewise, the judgment of the Hawaii Court gave “no opportunity for the Marcos Estate to confront each and every claimant,” the CA stated.

The CA also noted that the ruling “was filed under the Alient Tort Statute (ATS), also called Alient Tort Claims Act (ATCA)” which based the decision upon a different law, “presumably the Torture Victim Protection Act.”

“This invalidates the disposition considering that a decision that does not conform to the form and substance required by the Constitution and the law is void and deemed legally nonexistent,” the CA decided. — Minde Nyl R. Dela Cruz

Grab seeks fare hike

RIDE-APP company Grab Philippines on Friday, Jan. 5, petitioned the Land Transportation Franchising and Regulatory Board (LTFRB) for a fare hike.

“The content is 10 centavos increase per minute so the current cap on per minute is P2, so we’re asking P2.10. The current cap per kilometer is P10-P14, we’re asking for P11-P15 per kilometer. It’s only small, but the reason for doing this is because our drivers need to be able to take home enough pay for their livelihoods, with the TRAIN law and the implementation of the TRAIN law. The increase of excise taxes in gasoline has this effect on TNVS transport. We will not ask this if not for the benefit of our drivers,” Grab Philippines (MyTAXI.PH, Inc.) Ph Public Affairs Head and Spokesperson Leo Gonzales told reporters.

“Since December 2016, the first time LTFRB put a cap on our fares, demand has increased as of December by 30%, just this December, eh that was last year pa. You can imagine the increase of demand, and yet the fares have not yet been adjusted. Price of commodities have also increased. We just feel that it’s just fair and right, this petition to slightly increase the fares. Hopefully, through our petition, the Board can see that what we’re asking is just right.”

Peso among “most stable” in Asia despite losses in 2017, says DoF

THE Department of Finance (DoF) said the peso remained among the “most stable” currencies in Asia and “finished strongly” in 2017 despite a 0.5% depreciation against the dollar.

The peso capped 2017 below the 50-per-dollar level — clawing back losses after staying within that territory to fall to multi-year lows for the most part of the second half of 2017 — to close at P49.85 against the greenback on Dec. 29, the year’s last trading day. In 2016, the local currency’s finish was P49.60 per dollar.

“The Philippine peso finished strongly in 2017 with a slight 0.5% depreciation and moved within a tighter band compared to other Asian currencies,” the Finance department said in its latest economic bulletin released on Friday.

In arguing that the peso was among the “most stable”, the DoF cited volatility measures used by Bloomberg that showed the average volatility for Asian currencies was 1.5% while the peso’s “deviation from the mean averaged 0.9%.”

“The most stable were the Vietnamese dong (0.29%), HK dollar (0.3%), Indonesian rupiah (0.44%) and the Philippine peso (0.9%),” read the bulletin.

With the 0.5% loss against the dollar last year, still the peso was Asia’s third worst performer for 2017 after the Hong Kong dollar, which lost 0.75% against the greenback, and the Indonesian rupiah which depreciated by 0.61%.

Economic managers of the Duterte government had earlier pencilled in an assumption of P48 to P50 against the dollar for 2017. For 2018 to 2022, the interagency Development Budget Coordination Committee (DBCC) assumes an exchange rate of P49 to P52 against the dollar, adjusting it from an earlier projection of P48-P51. Budget Secretary Benjamin E. Diokno had said in December in the wake of the Dec. 22 DBCC meeting that “a peso depreciation is actually favorable to our fiscal position.”

On the average, Asian currencies rallied by 4.97% against the dollar with the gains led by the Korean won (11.48%), the Malaysian ringgit (9.80%) and the Thai baht (9.10%).

“The peso avoided hefty appreciation that occurred elsewhere in Asia and boosted export competitiveness amid the recovery of global markets. The 12 Asian currencies appreciated by almost 5% in stark contrast to three currencies that depreciated slightly,” the DoF said.

The peso’s finishing “strongly” in 2017 was “due to sustained strong macroeconomic fundamentals backed by prudent fiscal and monetary policy and continuing economic reforms,” the DoF said.

“This occurred as the legislature passed the first package of tax reforms, the BSP (Bangko Sentral ng Pilipinas) adopted foreign exchange liberalization measures and the Fed continued monetary policy normalization,” said the DoF.

The tax reform program overhauls the 20 year-old national tax code, cutting personal income tax rates, estate and donor’s taxes; removing some value-added tax exemptions; raising excise taxes on fuel, automobiles, coal, and minerals; introducing a sweetened beverage tax and a cosmetic procedure tax; and, raising taxes on foreign currency deposit units, documentary stamps, stock transactions, and capital gains outside the stock exchange.

The BSP meanwhile also raised the amount of dollars that Philippine residents may purchase from the banking system without supporting documentation for legitimate transactions from $120,000 to $500,000 for individuals and $1 million for corporates.

“Sustaining the country’s good macroeconomic fundamentals is essential to maintaining stable currency markets. Likewise, reform programs (e.g., forex liberalization) create an environment more beneficial to economic growth,” said the DoF. — with report from Elijah Joseph C. Tubayan

Travellers signs management contract for Hotel Okura Manila

TRAVELLERS International Hotel Group, Inc. has chosen Japanese luxury hospitality chain Hotel Okura Co., Ltd. to operate a 191-room hotel within the country’s first integrated resort, the listed company told the stock exchange on Friday.

Travellers International, owner and operator of Resorts World Manila (RWM) in Pasay City, said it had formalized an agreement with the Japanese firm to operate Hotel Okura Manila, which is planned to have its soft opening in the fourth quarter of 2018.

“The Philippines, especially Manila, is a very promising market considering the nation’s gross domestic product (GDP) and population size, both of which are growing fast. The local hotel business is benefiting from these and other favorable trends,” Travellers International quoted Okura President Toshihiro Ogita as saying.

Hotel Okura Manila is set to join RWM’s portfolio of international hotel brands, which include Marriott Hotel Manila and the soon-to-open Sheraton Manila Hotel and Hilton Manila.

Travellers International also said Remington Hotel, RWM’s value-for-money offering, will be rebranded Holiday Inn Express.

The signing of the agreement with Okura was held at the Marriott Hotel Manila, and was attended by Mr. Ogita and Hidetoshi Ishimaru, corporate executive officer of Okura and Yeonhang Chua, senior advisor, InterAsia Links Co.

Kingson Sian, Travellers International president and chief executive, represented the listed company along with Bernard Than Boon Teong, chief financial officer and Georgina A. Alvarez, chief legal and corporate services officer.

“Having worked closely with Mr. Kingson Sian, we are confident that we will receive their full support as a reliable partner to operate the hotel. We will leverage the group’s expertise in traditional Japanese hospitality to make Hotel Okura Manila a much-beloved hotel among both local and foreign visitors,” Mr. Ogita said.

Travellers International said Okura plans to expand its growing portfolio to 100 properties worldwide, with focus on Asia. It said Hotel Okura Macau opened in 2011, followed by the opening of The Okura Prestige Bangkok and The Okura Prestige Taipei in 2012.

It also said Okura plans to open Okura brand hotels in Cappadocia, Turkey in 2019, Manila, Phnom Penh, Ho Chi Minh City and Yangon in 2020, and Taichung, Taiwan in 2021.

“Hotel Okura aims to strengthen the bond with promising markets including the Philippines. To enforce its commitment, Hotel Okura has made a donation of 100,000 USD to the Philippine Red Cross for natural disaster recovery in 2018,” it also said.

On Friday, Travellers International rose 0.74% in early afternoon trading to P4.08.

Philippines tops Mastercard Asia-Pacific consumer confidence survey

CONSUMER confidence across the Asia-Pacific region will be positive in the first half of the year, with Philippine respondents singled out as the most optimistic, driven by “rising economic growth” among others, Mastercard said.

“The findings from the latest index reveal that consumer confidence in Asia Pacific bubbles with youthful optimism stemming from rising economic growth, a soaring travel industry and greater intra-regional economic cooperation in the region,” the latest Mastercard Index of Consumer Confidence revealed.

The results of Mastercard’s index, disclosed to reporters via e-mail on Friday, showed that consumers aged above 30 posted a 6.3-point jump in optimism, while confidence rose five points in people 30 years old and below.

The trend of rising optimism started in the latter half of 2016.

In addition, Mastercard noted that the millennial consumers, aged 18 to 30, are very confident about the next six months. However, consumers aged 30 and above have a ”tempered outlook towards the future.”

“These lifts are reflected across buoyant consumer sentiment towards the stock market, employment and economic performance,” the statement added.

Meanwhile, the Philippines booked the highest level of optimism among its Asian peers as it scored 94.5 points.

Other emerging economies in the region such as China, Cambodia and Myanmar also scored high on optimism, with 92.2 points, 92.2 points and 91.7 points, respectively.

“High levels of optimism in emerging markets can be attributed to infrastructure investments which are seen to drive more opportunities for jobs and upward social mobility.”

Developed markets such as Taiwan, Malaysia and Japan were more pessimistic, logging 44.2 points, 45.9 points and 51 points, respectively.

The Mastercard Index of Consumer Confidence is the most comprehensive and longest-running survey of its kind in the region, with over 20 years of consumer confidence indices collected from over 200,000 interviews. — Karl Angelo N. Vidal

BPO network, groups kick off campaign for safer workplace

By Maya M. Padillo, Correspondent

DAVAO CITY — The BPO Industry Employees Network (BIEN) along with progressive groups AnakBayan-Southern Mindanao Region (SMR), Kilusang Mayo Uno-SMR, Nonoy Librado Development Center and the Church-Labor Solidarity Network in Dava,o started a campaign on Friday for safe work places dubbed #SafeWorkplacesNow outside the burned NCCC Mall following the deaths of SSI workers and one NCCC Mall employee.

“Safe workplace must be ensured now! We do not want another workplace tragedy where workers will die as they try to earn a living,” public relations officer Jupiter L. Delda told media.

The groups are also calling for the immediate passage into law of the occupational safety and health (OSH) bill (HB 64 and SB 1317) to increase penalties and criminalize violations or non-compliance of safety standards that imperil workers.

“The BIEN Philippines supports the immediate passage of the Senate Bill 131 and House Bill 64 for stricter compliance the companies para mapatawan ng kaso ang mga employers na hindi compliant sa health and safety standards ng manggagawa,” Mr. Delda said.

BIEN along with the Nonoy Librado Development Center and the Church-Labor Solidarity Network conducted an independent fact finding mission on December 29 until January 4 this year.

Mr. Delda cited instances pointing to violations of OSH standards, saying survivors of the fire did not participate in any fire drills, in the course of their work.

They also found out that fire alarms were not functioning and there were no emergency lightings to guide the evacuees towards the fire exits, Mr. Delda pointed out.

Based on their initial fact-finding mission, BIEN deemed that both research NOW SSI and NCCC be held accountable for these apparent lapses.

“Despite the fact that Davao City has been boosting…its most well-trained fire fighting and rescue team in the country, testimonies from families who witness the fire reveal otherwise,” he also said.

They are also calling for the scrapping of the Philippine Economic Zone Authority (PEZA) and holding the said agency accountable for this tragedy.

Mr. Delda said NCCC has been accredited by PEZA and the information technology special economic zone (PEZA-SEZ) because it houses a BPO company. He said: “In fact where BPO companies exist (these) are almost always accredited by PEZA-SEZ. This is because a BPO industry is a favored industry by the government….”

The press conference was simultaneously held in Quezon City led by BIEN together with the Center for Trade Union and Human Rights, Church People Workers Solidarity, Institute for Occupational Health and Safety, Ecumenical Institute for Labor Education and Research and KMU and Gabriela Women’s Party.