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2 alleged NPA rebels killed in clash

TWO ALLEGED New People’s Army (NPA) guerrillas were killed by soldiers in a brief firefight in Barangay Cadsalan, San Mariano, Isabela on Monday afternoon. Soldiers from Alpha Company of the 86th Infantry Battalion were on a security patrol to check on villagers’ reports that rebels were foraging for food and asking villagers for money when they were fired upon by an unknown number of rebels. Though unnamed, two rebels were reportedly killed and a shotgun and a cal.22 rifle and spent shells were found where the two fell, the military said. — philstar.com

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Johnson downs Spieth in Northern Trust playoff

NEW YORK — World number one Dustin Johnson hunted down Jordan Spieth with a bogey-free round, and then beat the reigning British Open champion with a birdie at the first playoff hole of the Northern Trust on Sunday.

Johnson downs Spieth in Northern Trust playoff
Dustin Johnson — AFP

Johnson, who started the day three shots behind overnight leader Spieth, set himself up with a monster drive at the first playoff hole and finished off the win with a three-foot birdie putt.

He had tucked his approach in close for an almost-certain birdie, so the writing was on the wall when Spieth was unable to make his long birdie attempt from the fringe.

The two stars had dueled down the back nine at Glen Oaks Club in Old Westbury, New York.

Johnson drained a 17-foot downhill putt for par at the 72nd hole of regulation to force the playoff, and then claimed his first victory since a back injury suffered in a fall forced him out of the Masters in April.

Until the injury, he’d been on a roll in 2017, winning three tournaments to ascend to the top of the rankings.

“I feel the game’s finally back in form like it was leading into the Masters,” Johnson said. “I’m swinging everything really well, got a lot of control over the golf ball and I’m feeling really good.

“Getting a win here today gives me a lot of confidence going into next week and the rest of the playoffs.”

He fired a final round 66 on Sunday for 13-under 267 in the first of four events in the US PGA Tour’s FedEx Cup playoffs.

Spieth closed with a 69. The leading duo were four shots in front of Venezuela’s Jhonattan Vegas, who carded a 65 in the final round, and Spain’s Jon Rahm, who signed for a 68.

Spieth was in control most of the day, and led by as many as five on the front nine.

But he and Johnson were tied for the lead heading to the par-three 17th, where both were in a bunker.

Johnson blasted out to within four feet of the hole. Spieth’s shot skipped 18 feet from the hole — but he stepped up and made the putt to stay tied.

At the next, Johnson was in dense rough off the tee and opted to lay up, leaving him his testing par putt as Spieth two-putted from 75 feet for par.

“I thought that was a fun show,” Spieth said of the back-nine duel. “I was hoping it wasn’t going to be that much fun.”

Spieth opened the door with a double-bogey five at the par-three sixth hole, where he was in the water off the tee.

He bogeyed the ninth before a blemish-free inward run that included back-to-back birdies at 13 and 14.

“I didn’t lose the tournament,” Spieth said. “He won it.” — AFP

An onstage family reunion

DUBBED THE “Elvis Presley of the Philippines,” during his heyday in the 1960s, Eduardo de Mesa Eigenmann (popularly known as Eddie Mesa) comes back to the Philippines to hold his first concert in more than 28 years on Sept. 23 at the Meralco Theater.

SINGER EDDIE MESA (center) will be joined by his children, including Cherie Gil (L) and Michael de Mesa (R), and grandchildren onstage in his first concert in the Philippines in nearly 30 years.

“I feel like I am more excited now doing this [concert] than when I was introduced in showbiz. I am excited. I am really preparing for this. I’m going to be singing a lot of songs, so with God’s grace I get to do it,” Mr. Mesa told the media during a press conference on Aug. 22 in Quezon City.

He added that the one-night performance is “a dream come true” as he will be sharing the stage with his family – his children and grandchildren.

“[We staged this concert] as a tribute to my father, my mother, and Mark [Gil, her brother],” said his daughter, actress Cherie Gil, in the same event.

The concert, Sing Us Your Song Again: The Music and Legacy of Eddie Mesa, is produced by Ms. Gil’s My Own Mann Productions,

Mr. Mesa has three children with his wife, actress Rosemarie Gil, all of whom are seasoned actors: Evangeline Cheryl Rose Gil Eigenmann (Cherie Gil), Michael Edward Gil Eigenmann (Michael de Mesa) and Raphael John Gil Eigenmann (Mark Gil). Mark Gil passed away in 2014 due to liver cancer.

The offspring of Mark – Gabby Eigenmann, Sid Lucero, and Andi Eigenmann – as well as Michael – Geoff and Ryan – also became well-known actors.

Ms. Gil said the Eigenmanns will share the stage with their patriarch, either by dancing, singing along, or telling stories about Mr. Mesa.

Expect songs from the King of Rock and Roll as well classic songs from the 1950s and other contemporary songs as he is joined on stage by Pilita Corrales, Christopher de Leon, Edgar Mortiz, Tirso Cruz III, Ciara Sotto, and the Hotlegs.

“My father’s voice has not changed,” said Ms. Gil noting that as a singing pastor in California, Mr. Mesa has never stopped singing.

The concert will be directed by Bert de Leon with musical direction by Mel Villena.

Sing Us Your Song Again: The Music and Legacy of Eddie Mesa will be held on Sept. 23, 8 p.m., at the Meralco Theater, Pasig City.

Tickets are available at TicketWorld. – Zsarlene B. Chua

Senate 4-day workweek bill to be filed today

The Senate is following the lead of the House of Representatives, which approved last week House Bill 6152, which seeks to increase working hours while shortening the work week to four days.

MRT commuters
People wait in line at the Trinoma MRT station as they head to work in this file photo taken on December 06, 2015. MICHAEL VARCAS/PHILIPPINE STAR

The chairman of the Senate Committee on Labor, Employment and Human Resources Development, Joel J. Villanueva, said he will be filing the senate version today, Aug. 29.

The bill authored by Mr. Villanueva calls for a compressed workweek arrangement where “the employee may opt to reduce the number of days dedicated to work, provided that the worker maintains the minimum number of rendered hours required. Compressed workweek arrangement will not only reduce cost of work transit, but also enable employees to allocate more time for other personal and social obligations, thus further encouraging work-life balance.”

The bill also limits work to 48 hours a week.

Furthermore, the bill allows “an employer to accommodate the uniqueness in the backgrounds and capacities of its employees without compromising their productivity. Workplace flexibility therefore allows both employer and employee to find a mutually beneficial arrangement of work that works best for both parties.”

Similar to the House Bill 6152, the Senate Bill amends Article 83 of the Labor Code of the Philippines, which stipulates that “the normal hours of work of any employee shall not exceed eight hours a day.” As for the House version, the implementation of the compressed workweek scheme is optional. The public hearing on the Senate version will begin on Sept. 13.

The chairman of the Philippine Chamber of Commerce and Industry, Sergio R. Ortiz-Luis, Jr. raised the possibility of business disruption should the legislation pass. He noted the difficulty of scheduling deliveries between enterprises that will opt to implement the shortened workweek and those that will adhere to the normal five-day workweek schedule.

Mr. Ortiz also said productivity may suffer as working for more than eight hours a day may be too much for some employees.

Mr. Ortiz said that his organization has been consulted regarding the matter and has made its objections clear. However, he is interested to study the new version of the bill to judge its feasibility.

The Chairman of the Federation of the Philippine Industries Jesus L. Arranza said in a telephone interview that the scheme might be counter-productive as it will entail a major behavioral change in workers accustomed to a five-day workweek. He suggests further dialogue between the lawmakers and the private sector before the scheme is fully implemented. “Planning without working is futile but working without planning is fatal,” he said.

In addition, the President of Employers Confederation of the Philippines Donald G. Dee said that he doubts “if many companies will support” the scheme.

“I really don’t understand the objective of this bill. It is bad for the health of the workers. It is disadvantageous for their family life and it will affect productivity,” he said. Mr. Dee also noted that the scheme will have no effect on businesses.

Senior Adviser for the American Chamber of Commerce John D. Forbes, on the other hand, declined to comment. “I will need to read the whole bill and consult with an expert before commenting,” he said. — Mario M. Banzon

Drug surrenderee falls in buy-bust operation

A DRUG surrenderee earlier tagged by the Philippine Drug Enforcement Agency as a member of a local drug syndicate was caught in a buy-bust operation in his house over the weekend. Hillside resident Arjhay Fedelino “Chester” Simeon, 21 years old and unemployed, sold a plastic sachet containing suspected shabu worth P1,000 to an undercover agent prompting his arrest. He is now detained at the Baguio City Jail and will be facing a case for violation of Section 5 (Sale of Dangerous Drugs), Article II of the Comprehensive Dangerous Drugs Act. — philstar.com

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Remains of all missing sailors recovered from US warship

SINGAPORE — Divers have recovered the remains of all 10 US sailors who went missing after their warship collided with a tanker off Singapore, the US Navy said Monday.

The remaining eight sailors were retrieved by divers searching flooded compartments of the USS John S. McCain, it said, after the discovery of two bodies was announced last week.

The guided-missile destroyer collided with an oil tanker as it headed for a routine stop in the city-state on Monday last week, leaving a gaping hole in the vessel’s hull and flooding it with water.

It was the second such deadly accident in two months after a US destroyer collided with a cargo ship off Japan in June, and the fourth accident involving an American warship in the Pacific this year.

The US Navy’s Seventh Fleet, to which the warship belonged, said in a statement that “divers have now recovered the remains of all 10 USS John S. McCain sailors.”

The sailors were aged between 20 and 39.

The navy found the remains of missing sailors inside sealed sections of the damaged hull of the warship, which is moored at Singapore’s Changi Naval Base.

“The incident is under investigation to determine the facts and circumstances of the collision,” the statement added.

Aircraft, divers and vessels from Australia, Indonesia, Malaysia, Singapore, and the United States joined a search-and-rescue operation for the missing sailors over an area of about 5,500 sq. km. (2,124 square miles) around the crash site.

The collision sparked a multinational search and rescue operation off Singapore but it was called off after several days, and authorities shifted their focus to flooded parts of the ship.

The accident prompted the navy to begin a global investigation and remove the commander of the Japan-headquartered Seventh Fleet, the centerpiece of the US military presence in Asia.

The Seventh Fleet, headquartered in Japan, operates as many as 70 ships, including the US navy’s only forward-deployed aircraft carrier, and has about 140 aircraft and 20,000 sailors. — AFP and Reuters

Despite scoreless game, James Yap happy to finally beat ex-team Star

JAMES YAP didn’t mind playing a scoreless game as long as his team wins.

Despite scoreless game, James Yap happy to finally beat ex-team Star
James Yap had another scoreless game for the first time since last season’s Governors’ Cup, but Rain or Shine won its third consecutive game. — REY JOBLE

In last season’s Governors’ Cup, the two-time Most Valuable Player failed to score, but his team, the Star Hotshots, went on to beat the GlobalPort Batang Pier.

The veteran swingman had another zero output, but was happy with the turnout of the match as his new team, the Rain or Shine Elasto Painters were finally able to end the Hotshots’ dominance.

Prior to this game, Rain or Shine was 0-4 against Star since the much celebrated trade between Messrs. Yap and Paul Lee was finalized.

“I’m happy to finally win one over my former team, Star. We’re zero-four against them so we need to win three more,” said Mr. Yap. “But I’m glad we finally won one.”

Mr. Yap played less than 10 minutes as he watched his other teammates stepping up and making balance contributions.

Jericho Cruz put up 18 points, the same number of output produced by the Elasto Painters’ import, J’Nathan Bullock while Gabe Norwood and Raymond Almazan, who came back from a tour of duty with Gilas Pilipinas in the FIBA Asia Cup in Lebanon, tallied 15 and 13 points, respectively,

For Mr. Yap, he doesn’t mind seeing limited minutes nor having another scoreless game as long as the team continues to win.

The Elasto Painters had extended their winning streak to three to improve their record to 4-2.

Mr. Yap added that games like this one where Rain or Shine lost its 20-point lead, but stayed tough and preserved a win, was a great learning experience for the squad.

“Games like this one will toughen us up,” added Mr. Yap. “For me, this is a good learning experience to test our character.” — Rey Joble

Ayala breaks ground on P20-billion Davao township

By Carmelito Q. Francisco,
Correspondent

DAVAO CITY — Companies behind the newest township development in the city, the Azuela Cove, hope to complete the project within the next 10 years.

Azuela Cove-Ayala
Artist’s rendering of Azuela Cove, a waterside community by Ayala Land and Alcantara Group. — www.ayalaland.com.ph

At the launch of the 25-hectare mixed-use project located at what used to be the plywood plant of the Alcantara Group, Enrique B. Manuel, Jr., Ayala Land, Inc. assistant vice-president, said the company is set invest P20 billion in the project as it takes advantage of the city emerging to become the “most lucrative market” in the Visayas and Mindanao.

The project, he said, will also help make the city “the most vibrant city centers in the Southeast Asian Region” as the developer has also brought St. Luke’s Medical Center to set up a 250-bed hospital in the project.

“This huge capital outlay is expected to provide more opportunities for the city,” he said, adding that the project is expected to create about 13,000 jobs over time.

The first phase of the project, including the hospital, is expected to be operating by 2022.

The Alcantara Group is known for building 11 residential communities in Mindanao including Ladislawa, Woodridge Park, Las Terrazas and Northcrest. Ayala has established 55 grown centers and 22 estates all over the country.

Ayala also has a presence in the city with its anchor project Abreeza Estate which includes the Abreeza Mall, Seda Hotel, Alveo and Avida residential towers and a BPO corporate center. It has invested around P15 billion in the city in the last eight years and eyes another P10 billion in the next two to three years.

“We are projecting a P20-billion investment in the next 8-10 years to activate Azuela Cove,” Mr. Manuel said in an interview.

Ayala Land is also bringing to the city, through the project, its exclusive condominium brand, the Ayala Land Premier. The builder is working on getting the necessary permits so it can sell it to the upscale market.

“We are confident that the market is ready for our project (even when the prices are more expensive than the present projects in the city),” he told BusinessWorld after the launch.

Aside from the hospital and the high-end condominium development, Azuela Cove — placed under the Aviana Development Corp. — will also feature key amenities like a soccer field that meets international standards and a 2,000-square-meter tent city, which can accommodate about 1,500 events for concerts and other outdoor events.

Another component will be a retail outlet of about 2,000 square meters that will offer new brands and new dining establishments. — with Carmencita A. Carillo

Hitman’s Bodyguard tops lowest US box-office weekend in 3 years

HAMPERED BY a hurricane and a high-profile boxing match, weekend box-office results in North America were the slowest in nearly 16 years, allowing previous leader The Hitman’s Bodyguard to hold its top spot with an unimpressive $10.1-million take.

SAMUEL L. JACKSON (L) and Ryan Reynolds star in The Hitman’s Bodyguard.

Harvey, the deadly hurricane-turned-tropical storm, led to some theater closings in Texas, while Floyd Mayweather’s much-hyped bout against Irishman Conor McGregor proved to be one of the biggest pay-per-view shows in history, Variety.com noted.

That left the overall weekend box office around $65 million, its lowest since a weekend shortly after the Sept. 11, 2001 terror attacks.

Weighing on the box office was Floyd Mayweather’s boxing victory over Conor McGregor Saturday night.

“It drew people away from the movies,” said Paul Dergarabedian, senior analyst at ComScore. The match was shown in 481 theaters and generated $2.4 million in ticket sales, but the movie industry doesn’t benefit from that, he said.

The low weekend box office will seal this August as one of the weakest on record. Through Sunday, the month was down about 36% from a year earlier. And with no new big releases on tap, the coming Labor Day weekend doesn’t look to offer much relief from a summer that’s proved a disappointment for the film industry, with North American revenue slumping more than 13% through last Sunday, according to ComScore.

“It’s been a brutal month,” Dergarabedian said.

Of three films opening in wide release, Weinstein Co.’s Leap! was the only one to make the top five, placing third with revenue of $5.02 million. The movie features Elle Fanning in an animated comedy as the voice of the orphan girl Felicie, who dreams of becoming a ballerina. She leaves her rural home for Paris, where she bluffs her way into the Grand Opera house.

The movie had already generated $58 million internationally before its domestic release and was forecast by BoxOfficeMojo to earn $5.2 million this weekend. It scored 37% positive reviews at RottenTomatoes.com.

The martial arts feature Birth of the Dragon, released through the Blumhouse label BH Tilt, placed 8th with $2.5 million. BH Tilt and a unit of World Wrestling Entertainment, Inc. acquired the movie after its premiere at the 2016 Toronto Film Festival.

The picture is a homage to the movie that made Bruce Lee famous, with a modern day twist that sets the fighting in San Francisco in the 1960s. Philip Ng plays an up-and-coming Lee, who battles his Kung Fu master Wong Jack Man. Just 14% of critics liked the movie, according to RottenTomatoes.

Sony Corp.’s faith-based drama All Saints failed to make the top ten, generating sales of $1.6 million. It had been forecast by Hollywood Stock Exchange to generate $3.8 million after opening in fewer than 1,000 locations. Featuring John Corbett as Michael Spurlock, a salesman turned pastor, the movie is based on a true story of a fight to keep the doors of tiny church open.

TOP MOVIES
Hitman saw its estimated three-day take drop by about half from its $21.4 million opening a week earlier, industry Web site Exhibitor Relations reported.

The film tells the story of a famous bodyguard (Ryan Reynolds) hired to protect a notorious hitman (Samuel L. Jackson) who is about to testify in a high-profile trial. Salma Hayek plays Jackson’s wife.

In second place for the weekend was Warner Bros.’ horror flick Annabelle: Creation, part of the popular Conjuring franchise. The film, starring Stephanie Sigman, Talitha Bateman, Miranda Otto and Anthony LaPaglia, took in $7.4 million, adding to its worldwide gross of more than $1 billion.

Fourth place went to Wind River, another Weinstein production, at $4.4 million, improving on its 10th place finish last week. It stars Jeremy Renner and Elizabeth Olsen as federal agents trying to solve a murder on an Indian reservation in Wyoming.

Bleecker Street’s Logan Lucky, Steven Soderbergh’s first film since his self-proclaimed retirement four years ago, also took in $4.4 million. The film stars Channing Tatum, Adam Driver and Riley Keough in an unconventional heist comedy set at a NASCAR race.

Rounding out the top 10 were: Dunkirk ($4 million); Spider-Man: Homecoming ($2.7 million); Birth of the Dragon ($2.5 million); The Emoji Movie ($2.4 million); Girls Trip ($2.3 million). – Bloomberg/AFP

Dangers beyond Marawi

The S. Rajaratnam School of International Studies (RSIS) of Nanyang Technological University of Singapore publishes the research findings of their fellows on various topics of regional and global import. The publications also come as briefs to which that I fortunately subscribe. I sometimes post these briefs on my Facebook page.

One brief that I feel compelled to write about and quote extensively is on the Marawi City Siege (No. 153/2017 dated 22 August 2017, “The Siege of Marawi City: Some Lessons”) by Jasminder Singh & Muhammad Haziq Jani. The brief makes worrisome points that must goad our government and people to action from national to local levels, and we as communities and individuals.

The brief states that as “the Western Mindanao Command closes in on the dwindling number of IS militants in Marawi, various terrorist tactics learned from the wars in Iraq and Syria are being replicated to worsen the conflict in southern Philippines and spread IS influence in the region.”

Our AFP has recaptured most of Marawi back at the time of the brief’s publication (Aug. 22). The siege highlighted some weaknesses. One is the AFP’s “lack of familiarity with urban warfare and the terrain.” “(I)t missed the deadline for retaking Marawi fully or wiping out terrorism from Mindanao by June 2017.”

Why the PNP SAF, better trained in urban warfare, was not used still has to be explained. Was it lack of comprehension of the nature of urban warfare; a lack of coordination within government; or was it another of the vexing turf battles fought within government? A yes to any one of these is already troublesome. A yes to all is disastrous.

Messrs. Singh and Jani believe that for the Maute and other terrorist groups in Mindanao, Marawi’s loss will not be a setback. It will be the beginning of bolder military moves to briefly “capture territory to demonstrate their fighting capability and rally support for the so-called Islamic State (IS) in the region, especially in the wake of IS military defeats in Iraq and Syria.”

“Terrorists like the Mautes have different conceptions of victory from professional militaries,” the authors write. IS strategists “aim to turn the residents of Marawi against the military, the government, and countrymen; expose the state’s inability to protect its citizens; and slowly weaken the state’s resolve to secure its peripheral territories.”

These objectives are achieved when they have managed to trap the AFP in protracted battles, create humanitarian crises with evacuations and displacement of people, drawing limited government and private funds into relocation and rehabilitation programs away from key development programs. This lack of progress on the economic and social fronts further underscores government’s weaknesses.

The Maute strategy is two pronged.

“Firstly, instead of fighting in the jungles and hills, ISP drew the military into an urban environment which they had prepared for in advance.” This was done earlier by an MNLF faction in Zamboanga. The ISP “pulled deeper into Marawi” making the fighting “much harder and forced the military into bombing houses to clear sniping positions and tunnelled strongholds.”

The terrorist hoped that the AFP would be blamed for the destruction. They planted the seeds of this with a few posts in social media. Meanwhile, Marawi has been devastated, evacuations centers filled up, complaints rising, and all these will get bigger when the evacuees return.

The Mautes have resorted to the use of improvised explosive devices (IEDs) within buildings. “Every surviving building has to be cleared by the military, and the Mautes, learning from IS in Syria and Iraq, have turned this to their advantage. As a result, the closer the military gets to a victory, the bloodier the battlefield becomes.”

The tactic targeted the morale of the soldiers and their families and communities. Hostages add pressure on the military which is forced to clear houses systematically, enhancing the terrorists’ advantage of time.

The Mautes resorted to “suicidal” attacks. They charged out into clusters of soldier to lob grenades losing their lives. “Such attacks are termed as istishhad (Arabic: martyrdom operations). They are viewed as heroic acts, to gain another narrative advantage against a powerful enemy. The person who carries out such an act will be celebrated by terrorists and their supporters as shahid or a martyr.”

“On July 22, the Commander of the Western Mindanao Command, Lt. Gen. Carlito Galves had predicted that the terrorists in Marawi City were planning to conduct suicide bombings inside and outside the city.”

This observation must not be taken lightly. Possible terrorist bombings have been a seriously considered probability for some years now. I think that many of the rumors of bombs planted in malls, transport hubs, and other public places where many people gather were scattered by the terrorist themselves in an attempt to get people inured to the rumors. The rumors when not realized tend to make people careless. When this happens, the actual bombings will be perpetrated.

Suicide bombings are game-changers for terrorism in Mindanao. Continued suicide bombings “could demoralize the troops, terrorize the population, create further instability in the state and delegitimize the political leaders.”

For terrorist strategists, “human ‘smart bombs’ are cheap, use low-technology, require little training and are difficult to stop.” Suicide bombers can “reach their targets with ease.” They “compensate for the asymmetry of a powerful” AFP and PNP, “and can have the desired negative and disastrous psychological impact” on the nation.

The Mautes were considering using hostages not just as human shields but also as suicide human bombs against the military, complicating hostage rescue, by strapping bombs on non-combatants, terrorizing everyone else.

“While this could be seen as an act of desperation, this tactical innovation, if implemented, would draw out the conflict much longer and make it increasingly bitter for the non-Muslims in Mindanao and the rest of the Philippines,” wrote the authors.

“ISP’s anti-Christian tactics in Marawi — holding them hostage, executing them, destroying their places of worship and schools, and distributing videos of their atrocities — were obviously meant to provoke Christians and sow inter-religious discord, while at the same time win support from extremists.” I am glad Christian leaders moved fast to neutralize this.

It is necessary to assess the impact of the battle on the AFP and the PNP, the government, Philippine society, and the region. A government victory in Marawi does not ensure peace, security, and stability anywhere in the country. “More needs to be done to neutralize the militants and address the factors that have allowed them to grow into a political and military menace.”

IS-aligned terrorists in the region learned well from the Middle East experience. Small numbers can cause great physical and social damage, especially when they are committed, suicidal, to their cause. “Marawi can herald the start of a new ISP approach to capture territory opportunistically, sow inter-religious discord and create a volatile environment that would draw fighters from the region and beyond,” conclude Singh and Jani.

What Singh and Jani call possibilities have a high probability of happening.

We have to seriously prepare for at least containing, or better yet, averting these. It starts with how our people regain faith in the ability of our government and society to take care of those who were badly affected; in restoring Marawi at the shortest possible time, with the involvement of Christians, Muslims and other Lumads alike; and in our society’s ability to ensure progress and prosperity for our people.

Is our government prepared and ready for these tasks? Are we as a people prepared and ready for these trials?

Mario Antonio G. Lopez is a member of Manindigan! a civil society group that helped topple the Marcos Dictatorship.

maglopez@gmail.com

Ex-mayor cleared of malversation in ‘honest mistake’

THE SECOND Division of the anti-graft court Sandiganbayan has acquitted former Malimono, Surigao del Norte mayor Clemente Sandigan, Jr. of malversation in connection with the alleged misuse of the ‘pork barrel’ of Sen. Robert Barbers in 2004. In its 27-page decision promulgated on Aug. 22, the Second Division said the prosecution failed to prove that Sandigan pocketed the P700,000 fund from the Priority Development Assistance Fund of the late former senator. — philstar.com

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Second tax package to target eco-zone tax holiday loopholes

PACKAGE TWO of the comprehensive tax reform program will eliminate a loophole that allows companies to shift expenses in order to maximize profits earned by projects enjoying tax holidays.

Finance Undersecretary Karl Kendrick T. Chua said that some firms abuse the tax holidays granted to them by investment promotion agencies such as the Board of Investments (BoI) and the Philippine Economic Zone Authority (PEZA), among others.

“If I am a conglomerate or a business there’s a line that is subject to income tax holiday and so I don’t pay tax. And then there’s a line or project that is subject to the regular (rate). So what is keeping me from moving my expenses from the project that has income tax holiday to the regular so that I can pad my expenses?” Mr. Chua told reporters on the sidelines of the Economic Journalists Association of the Philippines Economic Forum last Friday.

“So that is the leakage, an example that happens when you have a dual system,” he added.

Some income tax holidays given by PEZA involve the exemption of accredited firms from the 32% corporate income tax, and instead paying a lower 5% special tax on gross income. Tax perks under the BoI involve the exemption from taxes and duties on imported spare parts, wharfage dues, and tax credits, among others.

Mr. Chua said that the Finance department is currently reviewing data on these incentives generated by the Tax Incentives Management and Transparency Act, to determine whether benefits from the fiscal perks are reinvested in the Philippines.

He said earlier that the review will be completed within the third quarter, and will be submitted as a proposal to Congress by the fourth quarter.

The first package remains pending with the Senate committee on ways and means.

The department said it is ready to handle simultaneous deliberations when the second package is submitted.

The package, which is expected to be revenue neutral, would leave the government P500 billion in foregone corporate income tax by reducing the top rate from 32% to about 25%, but will be compensated by the same amount by withdrawing some tax perks according to Mr. Chua.

“It’s offsetting. What we recover is going to be used to reduce the corporate tax rate for it to be balanced and fair. So that’s the idea. There would be no (additional) revenue, or little,” he said.

Finance Secretary Carlos G. Dominguez III has said that the fiscal incentives will be performance-based, and targeted to firms that reinvest their tax savings in the Philippines, generating more jobs and taxes. — Elijah Joseph C. Tubayan