Legislators deprioritize projects to free up space for ‘pork’ — expert

November 14, 2024 | 9:08 pm

LEGISLATORS are sending big-ticket projects to unprogrammed appropriations to free up fiscal space for “pet projects” forcing economic managers to source excess funds from government-owned and controlled corporations (GOCCs), an expert said.

“This has been going on for the past three years and the reason for that is accommodation of pork,” Institute for Leadership, Empowerment, and Democracy Executive Director Zy-za Nadine N. Suzara said in a forum on Thursday.

“What they do is they put all the pork projects in the programmed appropriations, carve out that space from the program budgets of different agencies, put the priority projects in the unprogrammed appropriations, budget increases.”

These include transferred big-ticket projects of the Department of Transportation and the Department of Public Works and Highways.

Among these are the Metro Rail Transit Line 4, the Davao Public Transport Modernization Project, and the North-South Commuter Railway System.

She said the transfer of the Philippine Health Insurance Corp. (PhilHealth) excess funds was “only the tip of the iceberg.”

The Supreme Court recently issued a temporary restraining order (TRO) on the further transfer of the P89.9-billion excess funds to the National Treasury, which petitioners claimed to be in violation of the 1987 Constitution.

The TRO was issued after P60 billion in PhilHealth funds have already been transferred to the Treasury in three tranches since May.

A fourth and final tranche worth P29.9 billion was scheduled to be transferred to the Treasury in November. — Aubrey Rose A. Inosante

Usagi now a super typhoon

November 14, 2024 | 9:07 pm

Typhoon #OfelPH (USAGI — PAGASA.DOST.GOV.PH

TYPHOON USAGI (Local name: Ofel) has intensified into a super typhoon as it is forecast to make landfall over Cagayan or northern Isabela on Thursday afternoon, the state weather bureau announced on Thursday morning.

In an 11 a.m. weather advisory, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) reported that Super Typhoon Usagi now has maximum sustained winds of 185 kilometers per hour (kph) near the center, with gusts reaching up to 230 kph.

The Super Typhoon was estimated to be located at 135 Northeast of Echague, Isabela, moving West Northwestward at a speed of 15 kph.

“Ofel is forecast to move northwestward over the Philippine Sea before making landfall along the eastern coast of Cagayan or northern Isabela this afternoon,” PAGASA reported.

The super typhoon is then projected to move over the Babuyan Channel by Thursday night, where it may make another landfall or pass close to the Babuyan Islands, PAGASA added.

Wind Signal No. 5 has been raised in the northeastern portion of mainland Cagayan, including Santa Ana and Gonzaga, where very strong winds exceeding 185 kph are expected within the next 12 hours.

Wind Signal No. 4 is in effect in Babuyan Islands, the northern and eastern portions of mainland Cagayan (Santa Teresita, Ballesteros, Aparri, Camalaniugan, Buguey, Lal-Lo, Allacapan, Gattaran, Baggao, Peñablanca) and the northeastern portion of Isabela (Maconacon, Divilacan, Palanan).

Wind Signal No. 3 is in effect in Batanes, the rest of Cagayan, the northern, central, and southeastern portions of Isabela, the northern portion of Apayao, and the northern portion of Ilocos Norte.

Wind Signal No. 2 is raised in the western and southern portions of Isabela, the northeastern portion of Quirino, the rest of Apayao, Kalinga, the northeastern portion of Abra, the eastern portion of Mountain Province, the eastern portion of Ifugao, the rest of Ilocos Norte, and the northern portion of Aurora.

Wind Signal No. 1 is in effect for the rest of Isabela, Quirino, Nueva Vizcaya, Mountain Province, Ifugao, Abra, the northern portion of Benguet, Ilocos Sur, the northern portion of La Union, and the northern and central portions of Aurora.

PAGASA also warned of potential storm surges in low-lying or exposed coastal areas of Batanes, Ilocos Norte, Ilocos Sur, Cagayan, including the Babuyan Islands, Isabela, and northern Aurora.

“There is a moderate to high risk of life-threatening storm surge with peak heights reaching 1.0 to 3.0 m in the next 48 hours,” PAGASA said. — Edg Adrian A. Eva

Restore Defense budget — senator

November 14, 2024 | 9:06 pm

BRP-Teresa-Magbanua — PHILIPPINE COAST GUARD PHOTO

CONGRESS should restore the P10-billion cut from the P50-billion budget for the Philippine military modernization program next year to beef up the country’s defenses amid tensions with China in the South China Sea, according to a Philippine senator.

Citing the Revised Armed Forces of the Philippines Modernization Act, Senator Joseph Victor G. Ejercito told the Senate plenary that the government must allot at least P75 billion every year.

“This investment in our national security is an investment to our future, our sovereignty, and most importantly to our men in uniform,” he said.

The proposed P6.325-trillion national budget next year, as approved by the Senate finance committee, earmarked P255.99 billion for the Department of National Defense for next year.

The Department of Budget and Management earlier slashed the P50-billion budget by P10 billion for the Revised Armed Forces of the Philippines Modernization program in 2025.

“We are aiming for is, at least, to have the minimum credible defense posture for the country,” Mr. Ejercito said. — John Victor D. Ordoñez

PHL among Asian countries with highest medical trend rates

November 14, 2024 | 9:06 pm

Hospital-operating room-health worker — REUTERS

THE PHILIPPINES, together with Indonesia, Malaysia, and Vietnam, have reported the highest medical trend rates in Asia, according to the 2025 Health Trends report of Mercer Marsh Benefits, a global company that builds benefits strategies for workplaces.

Per the report, more than half of the markets see trend rates above 10% in 2024 and 2025. Asia leads at 13%, outpacing inflation by five times.

The Philippines, Indonesia, Malaysia, and Vietnam have the highest medical trend rates at 21%, 19%, 15%, and 15%, respectively.

The report defined medical trend as the year-on-year cost increase for claims under a medical plan on a per-person basis. The rate factored in medical inflation, altered treatment mix, utilization patterns, and regulatory changes.

The insurers that were surveyed identified an increase in utilization due to a higher incidence of health conditions (81%), ongoing medical inflation (73%), and changes to more expensive or advanced treatments (73%) as the key contributing factors in the region.

Persistent medical inflation (80%), in comparison, remains the chief driving factor worldwide.

The trends shaping employer-sponsored health plans in Asia, the report also said, are cancer as a major source of claims; a lag in deploying new techniques to maintain affordable plans; and gaps in what employees value against what insurers cover.

Only 26% of insurers in Asia offer preventive screenings by default, compared to 43% globally.

Moreover, while over 40% of the workforce value more support for reproductive health, less than 5% of insurers provide it by default.

Findings from a 2021 Small Business Trends survey by Guidant and the Small Business Trends Alliance suggested that — to make employees stay in the company — businesses should ensure that health benefits are competitive within the industry. This, the survey found, evokes a sense of security in the workplace over the larger competition.

The disparities between insurers and employees in Asia, the Mercer Marsh Benefits report said, requires ongoing dialogues with advisors and insurers so offerings remain relevant and competitive. — Patricia B. Mirasol

Free shipping of relief goods bill hurdles second reading

November 14, 2024 | 9:05 pm

Workers-relief — Workers prepare relief packs in Pasig City, Aug. 13, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

THE House of Representatives on Wednesday approved on second reading a measure seeking to provide free freight services of relief goods to disaster-stricken areas, a proposal seen expediting the delivery of basic goods during times of calamity.

In a voice vote, congressmen approved House Bill (HB) No. 10924, which allows the government to partner with private logistics companies, including carriers and freight forwarders, for the quick delivery and distribution of goods to areas declared to be under a state of calamity.

“This measure aims to provide tax incentives to private and common carriers and provides for a systematic way of delivering goods,” San Jose Del Monte City Rep. Florida P. Robes said during her sponsorship speech of the measure before the House plenary.

The bill provides private logistics companies with a 100% tax deduction on gross income based on the amount of expenses incurred throughout their freight services.

Meanwhile, lawmakers also approved a bill mandating government agencies and companies to establish an employment program for senior citizens, which the bill’s authors see as promoting the employability of the elderly.

The bill would also provide a 25% tax deduction for companies that hire senior citizens.

“The bill proposes incentives for private entities that intentionally employ senior citizens, [which] would include an additional deduction from their gross income equivalent to 25%,” Party-list Rep. Rodolfo M. Ordanes, who sponsored the bill, told the House floor. — Kenneth Christiane L. Basilio

Panel approves stiffer sexual abuse penalties

November 14, 2024 | 9:04 pm

House of Representatives-congress — BW FILE PHOTO

A House of Representatives committee on Wednesday approved a measure that will impose stiffer penalties against sexual abuse.

The House women and gender equality committee will be consolidating House Bills (HB) No. 6971, 7376, and 7537 to impose a maximum fine of P500,000 and a prison sentence of up to six years to those found guilty of sexual abuse, according to a document obtained by BusinessWorld.

“It’s indeed sad to think that in our country, it seems like pleas are not enough [to prevent abuse]. We really need fines and penalties,” Bataan Rep. Geraldine B. Roman, who heads the House women and gender equality panel, said in Filipino.

About 60% of Filipinos have experienced workplace harassment and violence, according to Party-list Rep. Jonathan Clement M. Abalos II, adding that sexual abuse is a continuing yet underreported issue in schools.

The panel accepted an amendment to the measure, which proposes that public officials found guilty of sexual abuse be fined with a maximum of P100,000 and face a six-month suspension in office, while mandating they complete a gender sensitivity and anti-harassment program.

Repeating sex offenders among public officials would face a maximum fine of P200,000, dismissal from office, and disqualification from holding any government post for a period of no less than five years. — Kenneth Christiane L. Basilio

Free vax for senior citizens sought

November 14, 2024 | 9:03 pm

A BILL seeking to provide free vaccines for infectious diseases for senior citizens was filed at the House of Representatives on Monday.

House Bill (HB) No. 11055 proposes that the Department of Health and the Philippine Health Insurance Corp. (PhilHealth) administer free vaccines against flu, whooping cough and herpes, while also including cervical cancer and tetanus vaccines under the suggested health program.

“Many diseases can have severe or even fatal effects on older adults, whose immune systems often become weaker as they age,” Party-list Rep. Wilbert T. Lee, who authored the bill, said in a statement.

“That’s why vaccines are so important to prevent these illnesses, especially if they are made free and more accessible for all our senior citizens,” he added.

The measure’s goal aligns with the 2019 Universal Health Care Law, he said, noting the need to expand healthcare services for the elderly amid their increasing population. — Kenneth Christiane L. Basilio

SMC’s PAREX told to harmonize project alignment with Pasig Esplanade

November 14, 2024 | 9:03 pm

THE Pasig River Expressway (PAREX) project faced new delays as the San Miguel Corp. (SMC) was told to harmonize the project with the government’s Pasig River Esplanade project, according to the Toll Regulatory Board (TRB).

This follows the expected submission of the final engineering drawings of the project by October which SMC has yet to submit, TRB Executive Director Alvin A. Carullo said.

“They have not submitted (the final design). Because it conflicts with the Pasig Esplanade of the DHSUD (Department of Human Settlements and Urban Development), the interagency for the Pasig Development. They have to harmonize the project,” Mr. Carullo told reporters on the sidelines of the Transport Conference 2024 on Thursday.

TRB has also requested the DHSUD to submit the detailed engineering design for the esplanade project to “harmonize” it with PAREX, Mr. Carullo said, noting that the DHSUD has requested the detailed engineering design by end of November.

DHSUD is one of the government agencies in the Inter-Agency Council for the Pasig River Urban Development, which the multi-agency tasked for the Pasig Bigyang Buhay Muli project.

“They need to adjust as per PAREX STOA (Supplemental Toll Operation Agreement). It’s indicated that the proponent is mandated to harmonize. If the government has new or other projects, they are mandated to harmonize,” he said.

To recall, the government inaugurated Phase 1C of the Pasig River Urban Development in June this year.

Earlier this year, TRB said that the construction of the P95-billion PAREX project is expected in 2025 or once the company secures an environmental compliance certificate.

“One of the predicaments right now is the issuance of the ECC (Environmental Compliance Certificate). It is now pending with the DENR (Department of Environment and Natural Resources). Once it’s issued, (the project will move). As to us, what they need to submit is the project’s engineering design coupled with other government permits,” he added.

In March, SMC said it would abandon the 19.37-kilometer, six-lane, all-elevated expressway that traverses Pasig River amid public opposition given its impact on the environment.

However, merely two months after the announcement, the company said it was not abandoning the project and was trying to address concerns for PAREX to move forward. — Ashley Erika O. Jose

BIR seizes illicit cigarettes with P8.5-B tax liability

November 14, 2024 | 9:02 pm

THE Bureau of Internal Revenue (BIR) has confiscated illicit cigarettes with an estimated total tax liability reaching P8.5 billion in factory and warehouse raids in Bulacan and Valenzuela.

“A large criminal enterprise with a factory in Bulacan and three warehouses in Valenzuela City was simultaneously raided last week, uncovering 8.5 B(illion) in tax liabilities,” Commissioner Romeo D. Lumagui Jr. said in a statement on Thursday.

This was the largest operation of the BIR against illicit cigarettes for 2024, he said.

The Bureau said a total of 11.51 million packs of illicit cigarettes were seized during the raid.

“BIR also seized raw materials, cigarette-making machines, and cigarette-packing machines,” it said.

Six Chinese nationals were also apprehended. — Aubrey Rose A. Inosante

‘Mindful parking practices’ bill filed

November 14, 2024 | 9:01 pm

A CONGRESSMAN on Thursday filed a bill seeking to outlaw the “unwholesome” practice of reserving parking spaces by standing at the House of Representatives.

House Bill (HB) No. 11076 seeks to penalize individuals who would stand and loiter in public parking spaces, levying a maximum fine of P10,000 and revocation of driver’s license for repeat offenders.

“This measure seeks to put an end to this practice by prohibiting the reservation of parking spaces through physical occupation by an individual,” Party-list Rep. Percival V. Cendaña said in the bill’s explanatory measure, which he filed on Nov. 14.

The scarcity of parking spaces in the Philippines have led motorists to resort to letting individuals stand on open parking lots to reserve the space, obstructing other cars from parking in it.

The measure mandates that private establishments implement parking policies and list penalties for individuals who would reserve the parking lot. Failure to install a parking policy could lead to a maximum fine of up to P50,000. — Kenneth Christiane L. Basilio

Peso slips vs dollar on concerns over Trump administration’s policies

November 14, 2024 | 9:00 pm

THE PESO slipped against the dollar on Thursday due to market worries over the Trump administration’s potential policies.

The local unit closed at P58.777 per dollar on Thursday, weakening by 4.2 centavos from its P58.735 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session weaker at P58.80 against the dollar. Its intraday best was at P58.75, while its worst showing was at P58.85 versus the greenback.

Dollars exchanged increased to $1.53 billion on Thursday from $1.43 billion on Wednesday.

The peso weakened as the market continued to reel from Donald J. Trump’s 2024 US presidential election win amid risks of higher US inflation, a trader said by phone.

Worries over the Trump administration’s policies also resulted in higher US Treasury yields, which supported the dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Friday, the trader sees the peso moving between P58.55 and P58.85 per dollar, while Mr. Ricafort sees it ranging from P58.65 to P58.85 against the greenback.

The US dollar stood at a one-year high against major peers on Thursday and headed for a fifth straight daily gain fueled by higher yields and Mr. Trump’s election victory in the United States, Reuters reported.

The greenback climbed above 156 yen for the first time since July and was last at 155.85 yen.

Higher trade tariffs and tighter immigration under the incoming Trump administration are projected to fuel inflation, potentially slowing the Federal Reserve’s rate cutting cycle longer term.

These, alongside expectations for deeper deficit spending and higher short term economic growth are lifting Treasury yields, providing the dollar with additional support.

The benchmark 10-year Treasury yield hit 4.483% on Thursday, its highest since July.

The President-elect’s Republican Party will control both houses of Congress when he takes office in January, Edison Research projected on Wednesday, giving him wide powers to push his agenda.

The US dollar index, which measures the currency against six top counterparts including the euro and yen, added 0.2% to 106.69, its highest since early November 2023.

The dollar had dipped briefly on Wednesday after a measure of US consumer inflation met economists’ forecasts, keeping the Fed on track to reduce rates at their meeting in December, though traders saw this as a buying opportunity. — A.M.C. Sy with Reuters

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