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EEI Corp. awarded P1.79-B contract for Cavitex-Calax link 4 project

EEI Corp. said it has been awarded the P1.79-billion contract for the construction of Cavitex-Calax link segment 4.

In a regulatory filing on Monday, EEI said it received the letter of acceptance issued by CAVITEX Infrastructure Corp. (CIC) for the construction of the 1.2 kilometer, 2×2 lanes expressway connecting CAVITEX and CALAX.

“The Company received the Letter of Acceptance issued by the CAVITEX Infrastructure Corp. for the Construction of the CAVITEX-CALAX Link (Segment 4 Extension) Project for a total contract price of P1,791,542,140.01,” EEI told the stock exchange.

According to CIC, a unit of Metro Pacific Tollways Corp. (MPTC), the segment four project will connect Cavitex or the Manila-Cavite Expressway and Calax or the Cavite-Laguna Expressway.

Established in 1931, EEI has business interests in construction services and the distribution of industrial and machinery systems.

EEI is primarily engaged in the construction of power-generating facilities, oil refineries, chemical production plants, rails, ports, expressways, and high-rise towers.

Its subsidiaries include EEI Ltd., EEI Construction and Marine, Inc., and EEI Power Corp.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

DTI trading company backed to oversee rice imports

AN AGENCY of the Department of Trade and Industry (DTI) should oversee rice imports to comply with the implementing rules and regulations of the Rice Tariffication Law of 2019, the Foundation for Economic Freedom, Inc. (FEF) said.

In a statement on Monday, FEF said the Philippine International Trading Corp. (PITC) has a mandate to import rice “if there is an urgent justification for importing rice.”

“This is a better option because the public perception of the Department of Agriculture is that it should promote the interests of the cultivators rather than the consumers, and DTI is legally mandated to perform the latter,” the organization said.

Congress is currently amending the law to restore the power of the National Food Authority (NFA) to import rice and engage in rice retailing.

The law, or Republic Act No. 11203, privatized the function of importing rice formerly carried out by the NFA. It allowed private traders to bring in their own shipments provided they pay a tariff of 35% on Southeast Asian grain. The rules have since been tweaked to allow such tariffs for rice from any source.

The NFA had been reduced to maintaining an emergency inventory from domestically grown rice.

“The law is being amended because of the perception among our selected policymakers and officials that it has not arrested rising prices,” said the FEF.

“What is not being said is that the soaring rice prices were brought about by exogenous factors that are … beyond the control of the law,” it added.

The factors include the Ukraine-Russian conflict, which resulted in higher fuel, fertilizer, and grain prices; the export ban on non-basmati rice by the Indian government; and the conflict in the Middle East, which put pressure on fuel prices.

“Ironically, the law is being blamed as the culprit behind the rising rice prices. Some legislators and senior officials are offering the solution to bring (the NFA) back to its previous role by granting it again the power to import rice and regulate rice retail trading,” the FEF said.

“This proposal will reverse all the beneficial reforms in the rice policy framework and will reinstate, for the wrong reasons, the previous framework, which was historically prone to governance vulnerabilities and fiscal unsustainability,” it added.

Aside from giving importing duties to the PITC, the FEF said that the government should consider its proposal last year of temporarily reducing the rice import duty to 10% to lower the landed cost of imported rice, which may result in lower wholesale and retail prices.

It added that instead of giving back NFA’s other functions, the agency should instead ramp up its “integral function,” which is to procure palay and build a “buffer stock” for emergency situations.

“Unfortunately, NFA’s previous performance in this role leaves much room for improvement. No one is telling the reason why, though the agency persistently claims that its prize stabilization function should be restored,” the FEF said.

The FEF also asked the Congress to look into the results of studies on how the Rice Competitiveness Enhancement Fund was implemented and how the National Rice Program performed before proposing amendments to the law.

“They should be able to distill lessons and insights learned from these evaluation studies, adopting rigorous methodologies in analyzing empirical data and evidence,” the FEF said.

“Only then can we have a rational and scientific approach to addressing the challenges hounding our rice sector,” it added. — Justine Irish D. Tabile

Rice imports seen undershooting US Agri dep’t estimate for 2025

REUTERS

THE Department of Agriculture (DA) said that it is expecting rice imports in 2025 to come in under the US Department of Agriculture’s (USDA) estimates of 4.2 million metric tons (MT).

“It’s possible that the projections of the USDA would change… we are expecting them to change,” Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa told reporters.

The USDA forecast Philippine rice imports for 2025 to exceed its revised estimate of 3.9 million MT for this year.

“Last year they projected 3.9 million MT, while we only imported 3.6 million MT. Early this year they projected 4.1 million MT, then they lowered it again to 3.9 million MT,” he added.

As of May 2, the Philippines had imported 1.6 million MT of rice, according to the Bureau of Plant Industry.

The USDA said that the import forecast for 2025 was based on an assumption of continued growth in consumption.

“The Philippines is expected to again be the largest global rice importer,” it said.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. has described the USDA estimate as a “worst case scenario,” as the DA expects domestic production to increase.

The DA is projecting that palay or unmilled rice production to exceed 0 million MT.

The DA is also expecting a “more destructive” La Niña, which will follow an El Niño, which is thought to be weakening.

PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), the government weather service, said that there is a 62% chance of La Niña occurring during June to August.

“It is possible that (La Niña) would occur towards the end of the year, where there will be stronger storms. By that time, we will have harvested for the wet season,” Mr. De Mesa said.

He added that once La Niña sets in later this year, the dry season planting for rice will be affected.

“It starts in October-November… So, it might have an impact later,” he said.

The La Niña phenomenon typically brings cooler average sea temperatures and above-normal rainfall.

He added that the average loss to agriculture during typhoons is about 500 to 600 thousand MT.

“Palay is typically affected by flooding, because losses are greater if flooding and typhoons are severe,” he said

The DA said it’s for La Niña focus on areas historically affected by the weather phenomenon. — Adrian H. Halili

German companies report positive sentiment in next 12 months

PHILSTAR FILE PHOTO

MOST German businesses in the Philippines expressed optimism about business conditions in the next 12 months as the economy, investment, and employment improve.

In the German-Philippine Chamber Commerce and Industry (GPCCI) Spring 2024 survey, 61% of the 70 participants said that they are confident in business developments for the next 12 months, while 35 participants said they remain confident about current business conditions.

“It’s encouraging to see such confidence from businesses involved in German-Philippine relations, forecasting a bullish local economy,” GPCCI President Marie Antoniette Mariano said in a statement on Monday.

“This optimism surely points to a thriving environment in the Philippines for both investment and job creation over the next 12 months,” Ms. Mariano added.

In the survey, 55% of the companies said that they expect the economy to improve over the next 12 months, while 61% and 44% said that they expect employment and investment, respectively, to improve.

However, the results of the Spring 2024 survey showed a decline in business sentiment, as the Fall 2023 survey had returned a 68% rate of optimism for business conditions in the next 12 months.

Meanwhile, German businesses in the Philippines have identified the country’s economic policy conditions as the primary challenge in doing business in the Philippines.

“(This is) due to complex regulations, frequent policy changes, and extensive bureaucracy creating an unpredictable environment,” the GPCCI said.

Rounding up the top three risks identified by the participants are high energy prices and supply chain disruptions and inadequate infrastructure, as these impact profit margins, operating costs, and operational efficiency.

“To capitalize on the current economic optimism, it’s imperative that the Philippine government work closely with businesses to resolve these identified challenges,” says GPCCI Board Director and Policy and Advocacy Chairperson Marian Norbert Majer.

“Addressing these issues can help create a more predictable and favorable business environment and ensure that this bullish momentum translates into substantial outcomes that will help the Philippines attain sustained economic growth,” Mr. Majer added.

Asked what makes it hard for companies to diversify, the German businesses cited increased legal and regulatory issues, difficulties in finding suppliers and business partners, and high costs.

Despite this, more than half, or 55%, of the companies said that they are prepared to handle international crises and geopolitical risks.

“Our network continuously assesses the resilience of German companies’ supply chains at their international locations, aiming to significantly mitigate the risk of future disruptions, such as transport interruptions or the sudden loss of production facilities,” said GPCCI Executive Director Christopher Zimmer.

“We see that our respondents in the Philippines are actively enhancing the resilience of their operations by expanding supplier networks and venturing into new markets,” he added. — Justine Irish D. Tabile

Invoicing requirements under EoPT Act

In our earlier article, “Removal of the 5-Year Validity of Receipts and Invoices,” I explained that the Philippine tax system is mostly driven by supporting documents and that the deductibility of allowable expenses and claiming of input value-added tax (VAT) rely heavily on valid invoices. With the implementation of the Ease of Paying Taxes (EoPT) Act, changes are now in effect in the way taxpayers provide proof for their sales and purchases.

One of the many changes under the EoPT Act is that the invoice takes the place of the official receipt as the primary document to evidence the sale of services. An invoice shall now be the primary supporting document for both sales of goods and services. Taxpayers, especially service providers, should adapt to these changes.

The Bureau of Internal Revenue (BIR), through Revenue Regulations (RR) No. 7-2024, which took effect on April 27, laid down the new rules of invoicing brought about by the EoPT Act.

VALIDITY OF MANUAL AND LOOSE-LEAF OFFICIAL RECEIPTS
Taxpayers, especially service providers, can no longer issue manual or loose-leaf official receipts to support their sales of services upon the effectivity of RR No. 7-2024. Issuance of official receipts for the sale of services starting April 27 will not be considered evidence of sales of services; taxpayers who issued the same as the primary supporting document will be penalized.

Now what shall be done with the existing official receipts? Taxpayers have two options in this case.

The first option is to use the existing official receipts as a supplementary document that will be issued to customers upon the collection of the sale of services. Taxpayers opting for this should, however, stamp the words “THIS DOCUMENT IS NOT VALID FOR CLAIMING OF INPUT TAX” on the face of the OR. This is proof that taxpayers cannot and should not use an official receipt as the primary supporting document for claiming input VAT on purchases of services.

Alternatively, taxpayers may convert the remaining official receipts to Invoices. If this option is chosen, taxpayers should strike through the word “Official Receipt” on the face of the printed receipt and stamp the words “Invoice,” “Cash invoice,” “Charge invoice,” “Credit invoice,” “Billing invoice,” “Service invoice,” or any name describing the transaction, so long as the word “Invoice” is indicated. Converted official receipts are valid for claiming input VAT until Dec. 31, 2024, and thereafter may be used only as supplementary documents. The conversion of official receipts to invoices does not require approval from the BIR, but taxpayers doing this should submit an inventory of unused official receipts, indicating the number of booklets and corresponding serial numbers, within thirty (30) days from the effectivity of RR No. 7-2024, or until May 27, 2024.

VALIDITY OF ORS ISSUED BY CASH REGISTER MACHINES (CRMS), POINT-OF-SALE (POS) MACHINES, AND E-RECEIPTING OR ELECTRONIC INVOICING SOFTWARE
Like taxpayers issuing manual official receipts, those taxpayers using CRMs, PoS machines, and e-receipting/electronic invoicing software may also change the word “Official Receipt” to any name describing the transaction, so long as the word “Invoice” is indicated. This reconfiguration is only considered a minor system enhancement; hence, taxpayers need not notify the BIR and they do not need to reaccredit their sales software or system or reapply for a new Permit to Use (PTU). However, the serial number of the renamed invoice should just continue the last series of the previously approved official receipt; hence, taxpayers should notify the BIR office which has jurisdiction over the place where machines are used, indicating the starting serial number of the converted invoice.

Since the reconfiguration of the software is considered a minor system enhancement, the BIR only gave taxpayers employing CRM, PoS machines, and e-receipting/electronic invoicing software until the effectivity of RR No. 7-2024 to comply with the changes. Hence, if you now purchase from a seller that uses CRM, PoS machines, or e-receipting/electronic invoicing, make sure that you are issued an “invoice,” otherwise you cannot claim the input VAT on your purchase of services.

VALIDITY OF ORS ISSUED BY COMPUTERIZED ACCOUNTING SYSTEMS (CAS)
The system reconfiguration of CAS, or computerized books of account (CBA), unlike CRM, PoS, and e-receipting/electronic invoicing software, is considered a major system enhancement. The reconfiguration will affect not just the invoicing system but the whole timing of reporting of output VAT on sale of services; hence, there is a need to surrender the previously issued acknowledgement certificate (AC) or PTU, which will require the taxpayers to apply for a new AC. The required annex of the AC should indicate all branches (if applicable) that are using the system and the sets of series of invoices to be used by each of the branches.

Since the reconfiguration is regarded as a major system enhancement, the BIR gave taxpayers until June 30, 2024, to effect these system enhancements. As early as now, the taxpayers should start reconfiguring their CAS/CBA to reflect the changes in the timing of reporting revenue — upon rendition of services and not upon collection — especially for service-oriented taxpayers. Taxpayers should be in the process of collating the necessary documentation required to secure a new AC. If the taxpayers find that the needed enhancements cannot be made by June 30, they can request an extension by seeking approval from the Regional Director or Assistant Commissioner for Large Taxpayers. Those taxpayers who obtain such approval have six months from the date of the effectivity of RR No. 7-2024, or until Oct. 27, 2024, to make the necessary enhancements.

INVOICES UNDER RR NO. 3-2024 TRANSITORY PROVISIONS
In all cases above, if the taxpayer collects on the services it rendered prior to the effectivity of the regulations, a corresponding invoice must be issued in order for the purchasers to validly claim the input VAT on their purchase of services.

DIFFERENCES IN THE TRANSITORY PROVISIONS OF THE EOPT ACT AND RR NO. 7-2024
The transitory provisions of the EoPT Act provided taxpayers with six months from the effectivity of the implementing rules and regulations (IRRs) or until Oct. 27, 2024, to comply with the changes particular to VAT and percentage taxes; this covers the invoicing requirements. This leaves lingering questions.

Did the issuance of RR No. 7-2024 shorten the period provided under the EoPT Act for taxpayers to comply with these changes in the VAT and percentage taxes? Should the manual/loose-leaf official receipts and those issued by CRM, PoS machines, and e-receipting/electronic invoicing software still be valid until six months from the effectivity of the IRR and not upon the effectivity of RR No. 7-2024? Should taxpayers using CAS/CBA be given more time to comply with the system enhancements required, not just until June 30, 2024?

I surely hope the BIR will release an issuance on the alignment of the transitory provisions of RR No. 7-2024 and the EoPT Act. I believe that our taxpayers are willing to comply with the provisions of the EoPT Act, but they need more time to effect these changes. I know and I believe that the BIR is one of the supporters of the Ease of Doing Business Act, and alignment is truly in line with easing the taxpayers’ transition to the new law.

Overall, RR No. 7-2024, among others, sheds light on the taxpayers’ questions about the major changes brought about by the EoPT Act, albeit with hanging questions still. Valid supporting documents really play a pivotal role in the Philippine tax system. With the implementation of the EoPT Act, taxpayers substantiate their sales and purchases a little differently. As we navigate these changes, it becomes imperative for taxpayers to adapt swiftly and ensure compliance with the evolving regulations to avoid paying unnecessary penalties.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Runell Alvyn V. Sarmiento is a senior in charge from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

PSEi rises on bargain-hunting, BSP policy bets

BW FILE PHOTO

PHILIPPINE SHARES rose on Monday on bargain hunting, the latest foreign direct investments (FDIs) data and expectations that the central bank will extend its policy pause for a fifth straight meeting this week.

The benchmark Philippine Stock Exchange index (PSEi) went up by 1.41% or 92.32 points to end at 6,604.25 on Monday, while the broader all shares index climbed by 0.88% or 30.63 points to close at 3,507.76.

“The local bourse jumped by 92.32 points (1.41%) to 6,604.25, attributed to bargain hunting following two consecutive days of market decline,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. “Additionally, strong February FDI data bolstered sentiment.”

FDI inflows climbed by 29.3% to $1.364 billion in February from $1.055 billion in the same month a year ago, Bangko Sentral ng Pilipinas (BSP) data showed.

This was its highest level in 26 months or since the $2.662-billion net inflows recorded in December 2021.

“The market’s resilience and subsequent upward trajectory can be attributed to the prevailing sentiment that the BSP would opt to leave its benchmark rates unchanged. This provided a sense of stability and reassurance to investors and traders alike,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan added in a Viber message.

“Market sentiment was further bolstered by speculation that the BSP’s may potentially shift towards a dovish monetary policy stance. This speculation gained traction primarily due to the disappointing household consumer spending data unveiled in the first-quarter GDP (gross domestic product) results,” he added.

A BusinessWorld poll conducted last week showed 17 out of 19 analysts expect the BSP to maintain its policy rate at a 17-year high of 6.5% for a fifth straight meeting at its May 16 review.

Meanwhile, Philippine GDP expanded by 5.7% in the first quarter, faster than the 5.5% expansion logged in October-December 2023.

However, this was slower than the 6.4% growth seen in the first quarter of 2023 and was below the 5.9% median forecast of 20 economists in a BusinessWorld poll.

This also fell short of the government’s 6-7% full-year economic growth target.

All sectoral indices ended higher. Services rose by 3.19% or 61.84 points to 1,999.14; financials surged by 2.7% or 54.26 points to 2,060.78; property went up by 0.91% or 22.10 points to 2,437.62; mining and oil climbed by 0.63% or 57.90 points to 9,153.47; industrials added 0.25% or 23.32 points to end at 9,100.80; and holding firms increased by 0.1% or 5.92 points to 5,844.97.

Value turnover rose to P11.04 billion on Monday with 949.4 million shares changing hands from the P3.67 billion with 424.84 million issues traded on Friday.

Advancers beat decliners, 118 versus 74, while 49 issues were unchanged.

Net foreign buying stood at P3.33 billion on Monday versus the P348.64 million in net foreign outflows seen on Friday. — R.M.D. Ochave

Peso sinks to over 18-month low before key US data, BSP meeting

BW FILE PHOTO

THE PESO sank to an over 18-month low against the dollar on Monday, inching closer to the P58 level, before the release of US producer inflation data and expectations of dovish comments from the Bangko Sentral ng Pilipinas (BSP) at their policy meeting this week.

The local unit closed at P57.86 per dollar on Monday, weakening by 44 centavos from its P57.42 finish on Friday, Bankers Association of the Philippines data showed.

This was the peso’s worst finish since its P58.19-per-dollar close on Nov. 10, 2022.

The peso opened Monday’s session at P57.63 against the dollar. Its intraday best was at P57.59, while its weakest showing was at P57.87 versus the greenback.

Dollars exchanged rose to $1.13 billion on Monday from $1.03 billion on Friday.

“The peso depreciated significantly amid expectations of a strong US producer inflation report [on Tuesday],” a trader said in an e-mail.

The dollar consolidated against other major currencies on Monday as traders waited for US inflation data that could help determine whether the Federal Reserve could lower borrowing costs in 2024 and by how much, Reuters reported.

Recent softer-than-expected US labor market data and a Federal Reserve that ruled out further interest rate rises saw traders price in more easing from the Fed this year.

Markets are pricing in around an 80% chance of a rate cut by the Fed’s September meeting, with about 40 basis points (bps) of cuts in total expected in 2024, LSEG data showed.

Comments by Fed officials last week varied as some rate-setters debated whether interest rates were high enough. A jump in consumers’ inflation expectations, revealed in a survey on Friday, could further complicate the conversation.

With recent data indicating an economy that is slowing slightly from the robust growth seen in 2023, investors are looking to confirm how sticky inflation is.

The market will have a chance this week, with US inflation readings in the form of the producer price index on Tuesday followed by the consumer price index on Wednesday.

The dollar index, which measures the US currency against a basket of six others, was little changed at 105.30, following its first weekly rise in three weeks last week.

Meanwhile, the dollar has crept up again against the yen after a 3% decline at the start of the month, its steepest weekly percentage drop since early December 2022, after two bouts of suspected intervention by Japanese authorities to strengthen its currency.

The peso was also dragged down by expectations of dovish comments from the BSP at its rate-setting meeting on Thursday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A BusinessWorld poll conducted last week showed 17 of 19 analysts expect the Monetary Board to maintain its policy rate at a 17-year high of 6.5% for a fifth straight meeting on Thursday.

On the other hand, one analyst expects the BSP to cut rates by 25 bps, while another sees the central bank raising rates amid elevated inflation.

The BSP hiked borrowing costs by 450 bps from May 2022 to October 2023.

For Tuesday, the peso will likely remain weak ahead of the US inflation reports, the trader said.

The trader sees the peso moving between P57.75 and P57.80 per dollar, while Mr. Ricafort expects it to range from P57.75 to P57.95. — A.M.C. Sy with Reuters

Philippines says it will block Chinese reclamation at disputed Sabina Shoal

PHILIPPINE COAST GUARD

THE PHILIPPINE Coast Guard (PCG) will keep its presence at the disputed Sabina Shoal in the South China Sea to prevent China from carrying out reclamation activities in the area, its spokesman said on Monday.

The PCG has been effective in deterring China from doing small-scale reclamation, spokesman Jay Tristan Tarriela told a news briefing on Monday. It had not documented any activity from the Chinese vessels present at Sabina Shoal since it deployed its multi-role response vessel there in mid-April, he added.

He said the Coast Guard had to make sure it was able to prevent “China from carrying out a successful reclamation [at] Sabina Shoal,” which Manila calls Escoda.

Located within the Philippines’ exclusive economic zone, the shoal is the rendezvous point for vessels carrying out resupply missions to Filipino troops stationed on a grounded warship at Second Thomas Shoal, where Manila and China have had frequent maritime run-ins.

China has carried out extensive land reclamation on some features in the South China Sea, building air force and other military facilities, causing concern in Washington and around the region.

“China does not want to get caught,” Mr. Tarriela said.

China’s Foreign Ministry urged the Philippines to stop making irresponsible remarks and to stop trying to mislead the international community.

The Philippine Coast Guard on Saturday said it had deployed a ship to Sabina Shoal, accusing China of building an artificial island amid an escalating sea row, adding that two other vessels were in rotational deployment in the area.

Since the ship’s deployment in mid-April, the coast guard said it had discovered piles of dead and crushed corals dumped on the sandbars of Sabina Shoal, altering their sizes and elevation.

“China has indisputable sovereignty over the South China Sea islands and the adjacent waters,” the Chinese Embassy in Manila said in a statement on Sunday.

China claims almost all of the vital waterway, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam. A United Nations-backed tribunal based in the Hague in 2016 ruled that China’s claims had no basis under international law, a decision that China has rejected.

‘ALARMED’
Meanwhile, Stanford University’s Gordian Knot Center for National Security Innovation said China deployed a huge force to Scarborough Shoal ahead of a Philippine civilian mission to the traditional fishing ground in the South China Sea.

Four coast guard vessels and 26 large militia ships from China are expected to be on blockade on Tuesday morning, Gordian Knot Center fellow Raymond M. Powell said in an X message.

“This will be by far the largest blockade I’ll have ever tracked at Scarborough,” he said. “China seems determined to aggressively enforce its claim over the shoal, of which it seized control from the Philippines in 2012.”

Despite the heavy presence of Chinese vessels in the area, Atin Ito Coalition said its  second civilian supply mission to Scarborough Shoal would proceed on May 14-17.

The activity is a “legitimate exercise of Filipino citizens’ right to movement within our own territory,” Atin Ito co-convenor and Akbayan Party President Rafaela David said in a statement.

“China’s actions are failing to intimidate Filipinos. Instead, they are only uniting and inspiring us to go further in defending our rights,” she said.

“Atin Ito shall press forward with our peaceful voyage undeterred by any intimidation,” Ms. David said. “We will sail with determination, not provocation, to civilianize the region and safeguard our territorial integrity.”

About 100 boats will join the mission, which also aims to install markers or buoys at Scarborough Shoal.

The group’s civilian convoy to waters near Second Thomas Shoal was cut short in December after being tailed by Chinese vessels. A small supply boat carrying volunteers managed to reach Lawak Island to deliver supplies to Filipino fisherfolk.

Mr. Tarriela told DZBB radio the Philippine Coast Guard would protect the civilian convoy.

Also on Monday, he Philippine Foreign Affairs department said it would look into reports of “illegal and unlawful activities” by diplomatic officials and take necessary action in line with existing laws and regulations.

Its statement, which did not mention China, followed Friday’s call by the Philippine National Security adviser for Chinese diplomats to be expelled over an alleged leak of a phone conversation with a Filipino admiral about the South China Sea.

The Philippine National Security Council (NSC) chief has ordered intensified safeguarding of features within the country’s exclusive economic zone in the South China Sea after reports of island reclamation by China, NSC spokesman Jonathan Malaya said in a regular program on state TV.

“The National Security Council is alarmed by this.”

The Philippines under President Ferdinand R. Marcos, Jr. launched a transparency initiative in February last year to expose Chinese aggression at sea including the use of water cannons, dangerous maneuvers and swarming tactics.

Mr. Marcos on Monday led the Philippine Air Force’s (PAF) command conference for the second quarter, underlining the importance of keeping its programs in line with territorial defense.

“The President gave his guidance and instructions on some of the proposed programs to further strengthen the PAF as it defends the country’s sovereignty, territory and development,” Presidential Communications Office Secretary Cheloy Velicaria-Garafil told reporters in a Viber message.

In a separate statement, the air force said it gave the President insights and recommendations “to further strengthen the country’s airpower capability to effectively guard and defend our nation from various emerging security challenges, including enhancing our capabilities for disaster response.” — Kyle Aristophere T. Atienza with Reuters

Manila to close a portion of Roxas Boulevard on Sundays to aid exercise

PHILSTAR

By Chloe Mari A. Hufana

THE MAYOR of Manila City on Monday signed an ordinance blocking cars along the Roxas Boulevard highway every Sunday morning to promote exercise among residents and reduce air pollution in the area.

Under the local law signed by Mayor Maria Sheilah “Honey” H. Lacuna-Pangan, a portion of the highway, both north and southbound, from Padre Burgos Avenue to Quirino Avenue will be closed to all vehicles from 5-9 a.m. on Sundays.

It aims to promote health and wellness and introduce a pollution-free fitness program in the capital through jogging, running and cycling.

“The concerned City Hall departments will all be hands on deck and will notify the buildings, businesses, residents and offices along Roxas Boulevard so they can participate and make the needed adjustments to their Sunday schedules in May and June,” Ms. Lacuna said in a statement on Monday.

The capital aims to advance tourism by promoting the natural beauty of Manila Bay, “its world-famous view and the enduring architectural design” of the highway and the bay, according to a copy of the ordinance.

Ira F. Cruz, a transport advocate and director of AltMobility PH, said the city should extend the hours for car-less Sundays.

He noted that Pasig City’s so-called “People’s Street” initiative imposes at least 12 hours of road closures, with Emerald Avenue in the village of San Antonio closed the longest from Saturday to Sunday.

“In Valenzuela, the local government reverted Fatima Avenue permanently for the people,” he said in a Viber message. “We hope this starts a trend among Philippine cities to start prioritizing the needs of people over motorists.”

Rene S. Santiago, a founding member of the Transportation Science Society of the Philippines, said the effect of the Roxas Boulevard closure on vehicle traffic would be minimal.

Light motor vehicles can be diverted to parallel service roads along the highway and other streets, while heavy motor vehicles will be rerouted to main roads, such as Taft Avenue.

The Metropolitan Manila Development Authority (MMDA) urged motorists to use Quirino Avenue, Maria Orosa Street, Kalaw Avenue, M.H. del Pilar Street and Bonifacio Drive to avoid the closed portion of Roxas Boulevard.

The ordinance was proposed by Manila Councilor Philip Salvador H. Lacuna, who said it is aligned with the Philippine National Guidelines on Physical Activity of 2010 issued by the Department of Health.

It is also in line with a Supreme Court ruling promoting environmental awareness about Manila Bay and to make it an integral part of a livable and walkable city.

Philippines won’t abolish anti-communist task force

ARMY and civilian local executives inspect the military-type firearms turned in by 10 members of the New People’s Army before they pledged allegiance to the government in a simple rite in Maramag, Bukidnon. — PHILIPPINE STAR/JOHN FELIX M. UNSON

THE PHILIPPINE government on Monday said it would not abolish its anti-communist task force even after the Supreme Court ruled that branding people communists threatens Filipinos’ basic rights.

The National Task Force to End Local Communist Armed Conflict (NTF-ELCAC), which is known for tagging activists and other government critics as communists, had helped weaken guerilla fronts of the local Maoist movement, the National Security Council (NSC) said in a statement.

“The NTF-ELCAC has been the game changer in the battle against the New People’s Army (NPA) and their allied and front organizations,” NSC spokesman Jonathan E. Malaya said in the statement.

Because of the task force, the armed wing of the Communist Party of the Philippines faced significant losses with its last remaining nine guerilla fronts having only about 1,000 members now, he said.

“Leftists clearly don’t want us to win against the CPP-NPA-NDF (National Democratic Front),” Mr. Malaya said, accusing them of being “anti-peace and anti-development.”

Human Rights Watch (HRW) has urged the government of President Ferdinand R. Marcos, Jr. to “abandon red-tagging, including eliminating the abusive task force promoting the practice.”

The Supreme Court on May 8 said red-tagging and guilt by association threaten a person’s right to life, liberty or security, as it granted a writ of amparo sought by a former party-list lawmaker whom the military had accused of being a member of the Communist Party.

The Iloilo Provincial Peace and Order Council had accused activist and former Bayan Muna Party-list Rep. Siegfred D. Deduro of being a member of the CPP-NPA.

Posters were put up around Iloilo City with his photo, tagging him a criminal, terrorist and a communist.

Mr. Malaya said Mr. Marcos will “never abandon” a task force that he himself chairs and “that has been very successful in bringing peace and development to remote areas.”

He said the President had ordered the group in a recent meeting to enforce an amnesty program for former rebels and boost financial support for a program that seeks to implement socioeconomic projects for former conflict-ridden communities.

HRW said red-tagging or red-baiting, which started in the country in the 1960s to fight communist insurgency, has targeted leaders and members of activist, human rights, religious, indigenous and environmental groups.

It said the practice worsened after then President Rodrigo R. Duterte issued an order that created the NTF-ELCAC.

“The task force has become the main agency behind red-tagging of leftist activists along with journalists, indigenous leaders, teachers and lawyers,” it said.

United Nations experts have cited a “broader trend of so-called red-tagging of human rights defenders, journalists, rural communities and legitimate organizations perceived as threats or enemies of the state.” — Kyle Aristophere T. Atienza

Sea lanes bill hurdles special committee

BW FILE PHOTO

By John Victor D. Ordoñez, Reporter

A SENATE bill seeking to establish Philippine sea lanes in the Balintang Channel, the Celebes and Sulu Seas, and other waterways has hurdled the Special Committee on Maritime and Admiralty Zones.

As tension heats up between the Philippines and China over disputed territories in the South China Sea, Senator Francis N. Tolentino, the special committee chairman, was set on sponsoring the Committee Report of Senate Bill No. 2665 before the plenary on Monday.

The Committee Report, dated May 8, seeks to define Philippine Archipelagic Waters along the axis lines connecting the Philippine Sea, Balintang Channel and the South China Sea.

A second axis would fall within the Celebes Sea, Sibutu Passage, Sulu Sea, Cuyo East Pass, Mindoro Strait, and the South China Sea.

A third axis would lie within the Celebes Sea, Basilan Strait, Sulu Sea, Nasubata Channel, Balabac Strait and the South China Sea.

The measure also bars foreign ships and aircraft from conducting war games and other military exercises within the sea lanes.

“Foreign ships or aircraft shall refrain from any activity other than those incidental to continuous, expeditious and unobstructed transit unless rendered necessary by force majeure or by distress, in which case such shall be subject to Philippine approval, when appropriate,” read a copy of the bill.

Foreign civilian ships and aircraft that conduct unauthorized fishing, research, and unloading of goods within Philippine sea lanes would be liable to jail time of six months to two years or a fine of $1.2 million or both depending on a Philippine court’s ruling.

The master of the ship or the captain or the aircraft would face the penalties.

“It is hereby the declared policy of the state to ensure the protection of its maritime domain and to safeguard the sovereignty of the state and the integrity of national territory,” the bill stated.

Gov’t, firms to offer 8,000+ jobs

Applicants look at job postings at a job fair in Manila. — PHILIPPINE STAR/EDD GUMBAN

THE DEPARTMENT of Budget and Management (DBM) has approved the creation of over 4,000 contractual positions to expand the implementation of the government’s conditional cash transfer program.

A total of 4,265 Project Development Officer II positions were created under the Department of Social Welfare and Development’s (DSWD) field offices, Budget Secretary Amenah F. Pangandaman said.

This would support the DSWD’s Pantawid Pamilyang Pilipino Program (4Ps), which provides cash transfers to the poorest households to address key issues like health, education and nutrition.

Meanwhile, job hiring platform Bossjob and over 120 companies will offer more than 4,000 jobs in July at the SMX Convention Center, Pasay City on July 13 and 14.

The event will be with Philippine Dragon Media Network (PDMN) as the 2nd Fil-Chi Job Fair to offer more inclusivity for multilingual job seekers. Interested parties may visit www.filchi-jobfair.com or follow the event’s official Facebook page.

On the part of the government, the contractual positions seek to increase 4Ps staffing, in which one officer would be tasked to handle 300 households. This would ensure that direct attention is given to each beneficiary.

“Supporting the 4Ps is crucial in inclusive development, empowering families, and breaking the cycle of poverty in the Philippines,” said Ms. Pangandaman. “With this move, we are also generating employment opportunities, which in some ways, help stabilize our economy.”

Budgetary support for the new positions would be sourced from the DSWD’s available funds, as well as the appropriations under the 2024 national budget.

As of Aug. 31 last year, the program hit 90.38% of its 4.4 million target beneficiaries, serving nearly four million households in 41,676 villages nationwide.

The DBM previously approved the creation of 12,637 4Ps implementing positions, with 5,291 working as “case managers” for its beneficiaries.

The government seeks to lower poverty incidence to 16.4% this year, 13.2% next year, and 9% by 2028.

On the other hand, Bossjob said its event in July offers careers in food and beverage, e-commerce, construction, financial services, mining and energy, and business process outsourcing (BPO), among others.

It would conduct workshops for attendees to equip them with skills to navigate the job market and guide them in their careers.

An advice desk, mock interview booth, and career photo booth will be at the two-day event to aid the attendees. Government agencies, such as the Philippine Health Insurance Corporation (PhilHealth), Social Security System (SSS), and Pag-IBIG, will also have their own assistance booths.

“This year’s Merged 2024 Job Fair is about establishing profound connections between industries and talent,” Bossjob Country Manager Kimberly Chen said in a statement. — Beatriz Marie D. Cruz and Chloe Mari A. Hufana

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