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Duterte point man helped POGO reapply for license, Senate told

PHILIPPINE STAR/RYAN BALDEMOR

By John Victor D. Ordoñez, Reporter and Chloe Mari A. Hufana

EX-PRESIDENT Rodrigo R. Duterte’s spokesman in 2023 lawyered for an offshore gaming operator in Porac, Pampanga province that the state has linked to human trafficking, the gaming regulator told senators on Wednesday.

Former palace spokesman Herminio “Harry” L. Roque sought an audience in July 2023 on behalf of Lucky South 99, Philippine Amusement and Gaming Corp. (Pagcor) Chairman and Chief Executive Officer Alejandro H. Tengco told a hearing.

They later met to discuss the Philippine Offshore Gaming Operator’s (POGO) unpaid taxes worth $500,000 (P29 million) in July last year and its application for a license two months later, he added.

“He was not demanding,” Mr. Tengco said in Filipino. “He did not actually pressure me, but as a lawyer, he was probably just accompanying his client.”

Mr. Roque “vehemently” denied lawyering for the POGO, whose hub was raided by law enforcers last month.

“I requested a rescheduling of arrears payment of a lessee and principal of my client Whirlwind Corp., a service provider to Lucky South, then a holder of a valid license from Pagcor,” he said in a Facebook video.

“I did not consent to nor was I informed of my name’s inclusion in any submission by Lucky South with Pagcor concerning license renewal,” he added.

He said he had met with Pagcor officials because he thought Lucky South 99 had fallen victim to estafa.

“As a lawyer, I could not directly engage with the POGO because of a potential conflict of interest and given the soured lease contract between Whirlwind and Lucky South,” Mr. Roque said.

At the Senate hearing, Mr. Tengco showed the organizational chart of the offshore gambling firm, which listed Mr. Roque as being part of “legal.”

Senator Ana Theresia N. Hontiveros, who heads the committee on women and children, invited Mr. Roque to the next hearing. At the same hearing, Pagcor Assistant Vice President Jessa Mariz R. Fernandez said Mr. Roque had also contacted her at least six times to ask about documents needed to renew Lucky South’s gaming license.

Pagcor denied the company’s application in May, she added.

Also on Wednesday, the Senate body committee cited suspended Bamban Mayor Alice L. Guo and her associates in contempt for failing to attend the Senate investigation of illegal POGOs.

Ms. Hontiveros said she would ask Senate President Francis G. Escudero to consider issuing an arrest order against the mayor, whom the committee had also linked to Chinese espionage.

The Senate president earlier said he would approve an arrest warrant against the mayor if the panel sought one.

The National Bureau of Investigation earlier confirmed that Ms. Guo’s fingerprints matched those of a Chinese national named Guo Hua Ping.

On Tuesday, the mayor cited mental health issues for failing to attend the hearing. She has asserted her innocence, insisting that she is a Filipino citizen.

“It’s unfair to those with genuine mental health conditions,” Senator Maria Lourdes S. Binay-Angeles said at the hearing. “Mental health is a serious issue and should not be used as an excuse for dishonesty.”

Mr. Tengco said Pagcor is coming out with guidelines on POGOs. “We’re already banning hubs.”

Finance Secretary Ralph G. Recto on Monday said he would consider recommending the ban of these gambling operations, mostly Chinese firms that operate online casinos, to President Ferdinand R. Marcos, Jr.

Pagcor earlier said the government could lose P20 billion in yearly revenues if POGOs are banned.

Meanwhile, Ms. Guo asked the Supreme Court (SC) to stop the Senate from summoning her to its probe.

In a 78-page petition, the mayor said she had been adjudged guilty of all sorts of crimes, and her rights had been violated.

“Persons invited to appear before a legislative inquiry do so as resource persons and not as accused in a criminal proceeding,” she said. “They should be accorded respect and courtesy since they were under no compulsion to accept the invitation extended before them, yet they did so anyway.”

She named Ms. Hontiveros as the respondent.

Ex-lawmaker convicted of graft

RAWPIXEL

THE PHILIPPINES’ anti-graft court has convicted a former Cagayan de Oro congressman for misusing P3 million worth of public funds in connection with a P728-million fertilizer fund scam.

The ex-lawmaker was found to have redirected P3 million to buy 3,750 bottles of fertilizers from a nongovernment group that were supposed to cost P502,087, according to a state audit.

In a 77-page decision promulgated on July 8, the Sandiganbayan Second Division found the former congressman guilty of one count of graft, sentencing him to face a maximum jail term of 10 years.

He was also barred from holding public office, while his retirement pay was revoked. — Kenneth Christiane L. Basilio

Review of US missiles sought

PHILSTAR FILE PHOTO

A CONGRESSMAN on Tuesday filed a resolution seeking to investigate the geopolitical implications of allowing the deployment of the United States’ Typhon missile launcher from Philippine soil.

“The presence of such advanced weaponry on Philippine soil may escalate tensions in the region and potentially compromise the country’s neutrality in international conflicts,” Party-list Rep. Arlene D. Brosas said in House Resolution No. 1796.

The US brought the mid-range missile system for the annual Balikatan or shoulder-to-shoulder military exercises with the Philippines earlier this year. — Kenneth Christiane L. Basilio

Gov’t told to answer rice suit

REUTERS

THE SUPREME COURT (SC) has given the government 10 days to comment on a lawsuit seeking to stop the enforcement of Executive Order (EO) 62, which cuts tariffs on imported rice to 15%.

“The court, without giving due course to the petition and prayer for a temporary restraining order, required the respondents to file their comments within a nonextendible period of 10 days from notice,” court spokesperson Camille Sue Mae L. Ting told a news briefing on Wednesday.

Farmers’ groups have asked the tribunal to stop the enforcement of EO 62, citing livelihood loss.

The plaintiffs named President Ferdinand R. Marcos Jr., Executive Secretary Lucas P. Bersamin, National Economic and Development Authority Secretary Arsenio M. Balisacan and Tariff Commission head Marilou P. Mendoza as respondents. — Chloe Mari A. Hufana

5 suspects killed in gunfight

KJPARGETER-FREEPIK

COTABATO CITY — Police killed five suspects who allegedly resisted arrest during an inspection for illegal drugs and firearms in Aleosan town, Cotabato in southern Philippines.

A member of the police’s elite Special Action Force also died from multiple bullet wounds during the gunfight, Brigadier General Percival Augustus P. Placer, director of the Police Regional Office-12, told reporters on Wednesday.

The suspects opened fire as policemen from the provincial and municipal governments approached the house they were in, sparking a gunfight.

The owner of the house and his cohorts were killed in the encounter. — John Felix M. Unson

Marcos defends Quiboloy bounty

PCOO

PRESIDENT Ferdinand R. Marcos, Jr. on Wednesday defended the multimillion-peso bounty for church leader and fugitive from justice Apollo C. Quiboloy and his associates, who are facing human and sex trafficking cases.

Mr. Quiboloy’s supporters have questioned the motives of private citizens who offered a P10-million reward for any information that will lead to his arrest.

Mr. Quiboloy and his associates were indicted by a federal grand jury in the United States in 2021 for orchestrating a trafficking operation that coerced girls as young as 12 to have sex with him or face “eternal damnation.”

“Why not? They want to help us bring a fugitive to justice,” Mr. Marcos told reporters in Rizal province. “He is a fugitive. He is hiding from the law. He can question their motives as much as they want but he should show up,” he added.

Two trial courts have ordered the arrest of Mr. Quiboloy on charges of human trafficking, sexual and child abuse.

The Senate has also ordered his arrest for failing to attend a probe of his dealings. — Kyle Aristophere T. Atienza

New PI rules adopted

THE MARCOS government on Wednesday adopted new rules on preliminary investigation (PI) and inquest proceedings to ensure air-tight cases while easing court dockets.

“It’s no secret that our dockets have been heavily burdened with the volume of cases, causing delays in the administration of justice,” President Ferdinand R. Marcos, Jr. said in a speech at the signing of the Department of Justice (DoJ)-National Prosecution Service’s Rules on Preliminary Investigations and Inquest Proceedings at the presidential palace.

“Today, we address this problem by introducing reforms that are a product of the strong collaboration between the Executive and the Judiciary,” he said. 

Justice Secretary Jesus Crispin C. Remulla said the new rules would institutionalize the executive and inquisitorial nature of preliminary investigations, “reinforcing the DoJ’s authority in this domain.”

“The new rules will also enhance prosecutorial functions, empowering them to take a proactive role in the investigation of crimes and ensure efficient case build-up,” he added. — Kyle Aristophere T. Atienza

Senate building cost rises to P25B

CONCEPTUAL PHOTO of new Senate building. — PHILSTAR FILE PHOTO

THE DEPARTMENT Public Works and Highways (DPWH) on Wednesday said construction costs of the new Senate building in Fort Bonifacio, Taguig City have ballooned to at least P25 billion from P8.6 billion, updating its earlier estimate of P23 billion.

“It would reach about P25 billion to P27 billion including the cost of land,” Public Works Undersecretary Antonio V. Molano, Jr. told a Senate committee on accounts hearing.

“To my estimate from the time the project was bid out, it has increased by more or less 20% to 25%,” he said.

Senator Alan Peter S. Cayetano asked the agency to consider inflation in its review of the costs, which he said have jacked up the construction costs of other government projects. — John Victor D. Ordoñez

Anti-drug policy should be health-focused — UP

THE UNIVERSITY of the Philippines Diliman campus in Quezon City. — UP.EDU.PH 

A UNIVERSITY of the Philippines (UP) Diliman-College of Law study has recommended a public health approach to tackle the country’s illegal drug problem, instead of a punitive approach.

“The approach to drug use should be based on public health rather than punitive measures,” UP College of Law Professor Glenda T. Litong told a drug policy summit on Wednesday.

“The public health approach advocates evidence-informed, human rights-oriented and person-centered strategies,” she added.

Health workers should be the first point of contact for drug users and not law enforcers, according to the UP study.

Masood Karimipour, regional director of the United Nations (UN) Office on Drugs and Crime, told the summit the Philippines has made progress in the past two years in having a public health and human rights-based response to the illegal drug problem.

“Criminalization has neither diminished drug use nor deterred drug-related crimes,” UN Philippines Resident Coordinator Gustavo Gonzalez told the summit. “Instead, more and more lives are ruined, not just by the use of drugs in itself, but also by the fallout of counter-productive policies.”

Rehabilitation programs should be holistic, flexible, community-based and should have sufficient funding, according to the UP study. — Chloe Mari A. Hufana

Jollibee job deal signed

THE LABOR department has signed a deal with Jollibee Foods Corp. to allow about 900 poor kids to pursue their studies under a special program.

“Through the training and internship that the company offers, beneficiaries gain hands-on experience in real-world environments, industry-specific skills, professional development and mentorship,” Labor Secretary Bienvenido E. Laguesma said in a statement.

More than 18,000 students were given temporary jobs in the first six months under the program.

Jollibee’s vision is to contribute to nation-building through meaningful employment, especially for poor students, Chief Human Resources Officer Ruth B. Angeles said in the same statement. — Chloe Mari A. Hufana

Peso rises further on Powell comments

IIIJAOYINGIII-PIXABAY

THE PESO strengthened further against the dollar on Wednesday, posting its best close in over a month, following dovish comments from US Federal Reserve Chair Jerome H. Powell.

The local unit closed at P58.32 per dollar on Wednesday, rising by 12 centavos from its P58.44 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish since its P57.97-per-dollar close on May 28.

The peso opened Wednesday’s session weaker at P58.48 against the dollar. It dropped to as low as P58.50, while its intraday best was at P58.30 versus the greenback.

Dollars exchanged inched down to $1.16 billion on Wednesday from $1.18 billion on Tuesday.

The peso was supported by market expectations of a Fed rate cut by September, the first trader said by phone.

“The peso continued to gain following dovish cues from Mr. Powell’s congressional testimony to the US Senate,” a second trader said in an e-mail.

The US is “no longer an overheated economy” with a job market that has cooled from its pandemic-era extremes and in many ways is back where it was before the health crisis, Mr. Powell said in remarks to Congress that suggested the case for interest rate cuts is becoming stronger, Reuters reported.

Mr. Powell in his prepared remarks told US senators that inflation had been improving in recent months and that “more good data would strengthen” the case for looser monetary policy.

The Fed has kept its policy rate in the 5.25% to 5.5% range since July of 2023.

His remarks appeared to show increasing faith that inflation will return to the Fed’s target, contrasting the lack of progress on inflation in the first months of the year to recent improvement that has helped build confidence that price pressures will continue to diminish.

The Fed receives consumer price information for the month of June on Thursday. The consumer price index (CPI) did not rise at all in May, and analysts anticipate another weak reading later this week.

Following Mr. Powell’s comments, investors continued to put a nearly 70% probability on a Fed rate cut in September, something that would likely require changes to the policy statement to be released after the Fed’s July 30-31 meeting.

For Thursday, the first trader expects the peso to strengthen further as the market awaits the release of June US CPI data. The second trader said Mr. Powell’s testimony to the US House of Representatives overnight could also lift the peso.

The first trader expects the peso to move between P58.20 and P58.50 per dollar on Thursday, while the second trader sees it ranging from P58.15 to P58.40. Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort gave a forecast range of P58.25 to P58.45 against the greenback. — AMCS with Reuters

Profit taking snaps PHL shares’ two-day climb

BW FILE PHOTO

PHILIPPINE STOCKS dropped on Wednesday, snapping their two-day climb, on profit taking and amid fears that an early rate cut by the Bangko Sentral ng Pilipinas (BSP) would put pressure on the peso.

The bellwether Philippine Stock Exchange index (PSEi) fell by 1.02% or 67.31 points to close at 6,489.35 on Wednesday, while the broader all shares index declined by 0.79% or 28.20 points to end at 3,510.04.

“The local bourse dropped due to profit taking after two consecutive days of market rally,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Moreover, although the BSP’s rate cut in August was highly anticipated by investors, the possibility that the rate cut may lead to further weakness of the peso to below P59 against the dollar negatively affected sentiment,” Ms. Alviar said.

The peso may breach its record low of P59-per-dollar and even hit he P60 mark if the Philippine central bank cuts rates as early as August, Fitch Solutions’ unit BMI said on Tuesday.

BSP Governor Eli M. Remolona, Jr. has said the central bank could deliver its first rate cut in over three years by next month as they expect inflation to continue easing this semester.

The BSP last month kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting after raising interest rates by a cumulative 450 basis points from May 2022 to October 2023.

The local unit hit its record low of P59 against the dollar in October 2022. It has been trading at the P58-per-dollar range since May as the US Federal Reserve said it could keep rates higher for longer due to sticky inflation in the world’s largest economy.

On Wednesday, the local unit closed at P58.32 per dollar, strengthening by 12 centavos from its P58.44 finish on Tuesday, Bankers Association of the Philippines data showed. This was the peso’s best finish in more than a month or since its P57.97 close on May 28.

“Philippine shares took a breather, slipping below the 6,500 level, following Wall Street’s mixed results,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

All sectoral indices closed lower on Wednesday. Industrials fell by 1.64% or 150.67 to 9,021.85; mining and oil went down by 1.55% or 133.77 points to 8,461.99; property shed 1.02% or 26.29 points to end at 2,541.66; services dropped by 0.92% or 18.80 points to 2,010.81; holding firms retreated by 0.86% or 48 points to 5,531.54; and financials decreased by 0.51% or 10.31 points to 1,992.99.

Value turnover declined to P6.22 billion on Wednesday with 413.15 million shares changing hands from the P6.74 billion with 767.99 million issues traded on Tuesday.

Decliners overwhelmed advancers, 111 versus 62, while 62 names closed unchanged.

Net foreign selling increased to P202.79 million from P16.77 million on Tuesday. — A.E.O. Jose