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Four irrigation dams in Cavite to supply potable water to Maynilad

THE Department of Environment and Natural Resources (DENR) said it has cleared four irrigation dams in Cavite to be tapped for potable water.

Undersecretary Carlos Primo C. David said the dams controlled by the National Irrigation Administration (NIA) will supply Maynilad Water Services, Inc.

“One of the dams is already online and we are getting water from that dam, supplying water to Cavite residents. The three others will be supplying within the next few months,” Mr. David said at a seminar hosted by Maynilad last week.

The NIA manages 22 dams in Cavite, where farms are dwindling due to the conversion of much of the land to residential development.

“A small policy innovation that we have signed was to convert all these dams into multi-purpose use. And therefore, companies like Maynilad can now access that water to provide water to their residents,” Mr. David said.

Last year, the DENR announced that it will offer 135 water projects to private investors in 2024 hoping to “increase the number of persons with access to drinking water and generate inexpensive hydropower.”

Mr. David has said that the water projects involve water rights held by NIA.

In February, he said that the department has opened up 112 more water projects for public-private investment involving combined capacity of 100 to 170 million liters per day.

Maynilad serves the city of Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay City, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon.

It supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three 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 an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Toll Board acquires 1.3-hectare property in Pandacan from NDC

SAN MIGUEL CORPORATION FB PAGE

THE Toll Regulatory Board (TRB) said it acquired a 1.3-hectare Pandacan property from the National Development Co. (NDC), on which it plans to build part of Metro Manila Skyway Stage 3 (MMSS3).

In a statement sent over the weekend, the NDC said that it signed with TRB a memorandum of agreement (MoA) and two deeds of absolute sale last week for the acquisition of the property.

The agreement aims to ensure a “smooth and equitable process” for the acquisition and marks the reaching of a consensus that upholds the interests of all stakeholders.

“This agreement reflects our commitment to responsible urban development and community welfare. We extend our gratitude to TRB for their cooperation throughout this process,” said Antonilo DC. Mauricio, general manager of NDC.

“The signing of the MoA underscores our shared commitment to delivering infrastructure projects that benefit the public while respecting property rights and promoting sustainable development,” TRB Executive Director Alvin A. Carullo said.

In total, NDC’s property in Pandacan, Manila, is a single five-hectare parcel that was split into three irregular fragments due to Skyway construction, including the 1.3 hectares acquired by the TRB.

“There were two deeds of sale because one is for the area affected by the main alignment of the MMSS3 Project and the other one is for the area affected by the interconnection structure,” the NDC said.

NDC said that the property is strategic for MMSS3, as a Skyway component sits on the property while there may be plans to build another connector stage.

Asked about the value of the acquisition, the NDC said: “Since it’s a transaction between two government entities, the property valuation can’t be disclosed.”

“We wanted to release this because both parties are now happy with finally concluding this lengthy process because it clears the property up for use in road construction and development for TRB’s joint venture with San Miguel Corp.,” it added.

MMSS3 is an 18-kilometer elevated expressway from Buendia in Makati to the North Luzon Expressway in Balintawak, Quezon City. — Justine Irish D. Tabile

Weak global trade seen hampering PHL recovery

ICTSI

DISRUPTED trade is hindering the economy from returning to its pre-pandemic levels with consumer spending, the main driver of the economy, remaining weak, analysts said.

“The country is susceptible to a decrease in export demand and disrupted supply chains due to subdued global growth and trade fragmentation,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

The impact of the pandemic continues to be felt in weak consumer spending and elevated living costs, Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said in an e-mail.

“In the Philippines’ case, one of the biggest and ongoing structural headwinds against faster consumer spending growth is the damage caused by the pandemic and, subsequently, the global cost of living crisis, on household savings,” he said.

Consumption would have helped expand the economy further if the  government focused on upscaling domestic industries during and post-pandemic, Ateneo De Manila economics professor Leonardo A. Lanzona said.

“Instead, we remain reliant on imports for consumption, remittances for our external funds, and unskilled workers and services as our production sector. On top of this, we have been embroiled with the maritime tensions with China,” Mr. Lanzona said via Messenger chat.

Household consumption, which accounts for more than a quarter of gross domestic product (GDP) growth, expanded 4.6% in the first quarter, the weakest reading since the pandemic. Government spending only grew 1.7%, contributing 0.2 percentage points (ppts) to GDP. 

In its Global Economic Prospects report, the World Bank said global growth is expected to be a half percentage point lower than in the past decade due to geopolitical tensions, fragmented trade, and upside risks to inflation, prompting central banks to delay rate cuts.

To mitigate global trade and policy risks, the Philippines must diversify its exports and bolster domestic demand and infrastructure, Mr. Roces said.

It must also invest in human capital and utilize sound fiscal and monetary policy to minimize risk, he added.

Elevated interest rates will continue to slow private investment in the Philippines, delaying its return to pre-pandemic levels, Mr. Chanco said.

“Private fixed investment has yet to return to pre-COVID levels, and part of the problem is, in our view, the overly aggressive tightening cycle of the BSP (Bangko Sentral ng Pilipinas) in response to a predominantly supply-driven inflationary shock that can’t be corrected by monetary policy,” he said.

The World Bank also noted that the faster-than-expected US growth would benefit exporting economies in the East Asia and the Pacific.

The bank its global GDP growth projection to 2.6% from 2.4% in January amid the US economy’s sustained growth.

However, changes in world food and oil prices pose bigger threats to the Philippines than global trade slowdowns, Foundation for Economic Freedom President Calixto V. Chikiamco said.

“Exports remain a small percentage of Philippine economic growth, and consumption remains the biggest driver of Philippine GDP growth,” he said via Viber.

Net exports of goods and services accounted for 1.2 ppts of GDP growth in the first quarter, according to the Philippine Statistics Authority.

“Global food and oil prices will have a much bigger impact on the Philippines as the country is a major importer of energy and food,” Mr. Chikiamco added. — Beatriz Marie D. Cruz

PHL shipbuilder Propmech bats for incentives, supplier clustering

PROPMECH.COM

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES needs to grant incentives and develop supplier clusters for shipbuilders to help them become competitive exporters, shipyard operator Propmech Corp. said.

The lack of such support is preventing the industry from achieving economies of scale, affecting its export-competitiveness, Propmech Director Glenn Tong told BusinessWorld during a media tour of its Subic freeport shipyard last week.

Apart from Subic, Propmech operates yards in Mandaue City, Cadiz, Negros Occidental, General Santos City, Puerto Princesa, and Zamboanga City.

“Shipbuilding in the Philippines is something that we can develop not only for ourselves but for exports in the future. The government should look into creating high-value products that can be utilized for exports.”

Mr. Tong said the industry will require marine-related businesses like ship repair and maintenance and parts makers to cluster in key areas, simplifying supply chains.

“In other countries, they patronize their own shipbuilders and give them support and locations where they can operate. Over time, they dominate world markets,” he said.

Incentives for shipbuilders are also necessary over the medium term, noting that it will take “some time” for their business to become profitable under present conditions.

Propmech supplied 12 of Philippine Navy’s Multi-Purpose Attack Craft (MPAC) — the company’s flagship vessels — between 2009 and 2019, three of which recently completed comprehensive maintenance and refurbishment work at its Subic facility.

“In this specific batch, they wanted to bring all the equipment back to new,” Mr. Tong said, referring to a batch of three MPACs acquired in 2016.

“We were able to bring the vessels back to new — back to original performance,” he said. “It is more of a return to original form.”

The missile-capable MPACs are “a testament to us being able to build a vessel that no other country was interested in building,” Mr. Tong noted.

Mr. Tong said his company hopes to supply government agencies with more vessels.

“We are talking with the Department of National Defense, the Navy, and the Philippine Coast Guard and other entities to provide some equipment. It’s under negotiation. There are discussions ongoing.”

Propmech said its “versatile” MPACs have been active in the Navy’s counterterrorism and territorial defense mission.

Joshua Bernard Espeña, vice-president at Manila-based International Development and Security Cooperation, said the shipbuilding industry needs to “identifying where the country can establish a niche position in parts of the ship/combat system.”

“While going independent sounds patriotic, it needs to be put into perspective. The global defense industry is vast with relatively more mature industries out there,” he said in a Facebook Messenger chat.

“It should identify where it can niche, perhaps hull design or installation of weapons for small ships like patrol boats or frigates, and eventually consider competing in the global market,” he added. “The Philippines can consider looking into compatible and efficient designs for other parts of maritime platforms.”

Philippine shipyards numbered 124 in 2022, up from 116 in 2021, according to the Maritime Industry Authority.

The shipbuilding industry, which has had to contend with weak domestic demand, also has to deal with expensive electricity and high production costs, being dependent on imports of key materials for making ships such as steel and resin, according to Mr. Tong.

The shipbuilding industry is also vulnerable to shocks like conflict in key global waterways, according to George N. Manzano, a trade expert at the University of Asia and the Pacific.

“Geopolitics (and) trade embargoes can create shocks to the shipping industry and thus indirectly affect shipbuilding,” he said in an e-mail.

It is also among the industries under pressure to employ sustainable and environmentally friendly practices as governments seek to advance the transition to clean energy, he added.

The shipping industry accounted for 1.015 million tons of carbon dioxide emissions globally from 2007 to 2012, according to an International Maritime Organization report.

The government should incentivize shipyards and “make regulation of shipyards and general maritime operations more efficient and simpler,” Mr. Manzano said.

Propmech has over 900 employees, but it said it is threatened by a declining appetite among young people to take on industrial jobs.

“The number of young people who want to do the harder manual labor jobs has gotten less. Everyone wants to work in an office,” Mr. Tong said.

Mr. Manzano said education agencies should work together to make the workforce responsive to the demands of the maritime industry. The government should also support training institutions offering maritime courses and help them adopt shipbuilding curricula in line with international standards, he added.

“Foreign investment can bring in the expertise in terms of training because there could be skill gaps particularly in aspects of more advanced shipbuilding technology,” he added.

BIR urges online platforms to carry only vape products with tax stamps

PHILIPPINE STAR/ RUSSELL PALMA

THE Bureau of Internal Revenue (BIR) issued a warning to online platforms to ensure that vape sellers are duly registered and comply with the tax stamp rules.

“Online platforms should only allow duly registered online sellers with the BIR, to sell vapes online,” it said in a statement.

“The BIR is monitoring both online platforms and brick-and-mortar stores selling vape products for possible violations of BIR regulations on vape products,” it said.

The BIR had required all vape products to bear the internal revenue stamps starting June 1.

The stamps allow the government to distinguish between legitimate and smuggled products.

BIR Commissioner Romeo D. Lumagui, Jr. said that sellers should take down posts or offerings that are non-compliant with the BIR regulations.

“We have been receiving reports that online sellers of vapes are actively selling their products at low prices because they are not paying their taxes. These online sellers of illicit vapes destroy the livelihood of legitimate vape sellers,” he said.

“The BIR protects legitimate businesses and closes illegitimate businesses. Online platforms should do the same.”

Apart from the tax stamps, the BIR reminded sellers to comply with the minimum floor price and other rules.

In March, the BIR seized illicit vape products from a warehouse in Laguna on which P75.7 million in tax was not paid. — Luisa Maria Jacinta C. Jocson

Responsible AI: Transforming risk management in the Philippines

IN BRIEF: 

• The rise of AI in the Philippines signals a transformative shift in risk management practices.

• With AI’s growing prevalence, businesses must adopt responsible AI principles to navigate ethical, security, and transparency risks.

• The integration of AI in various sectors offers both opportunities and risks that require careful management.

As the digital age continues to evolve, artificial intelligence (AI) is rapidly becoming a cornerstone of innovation and efficiency. In 2021, the Philippines launched the National Artificial Intelligence Roadmap, which prioritizes inclusive, resilient, and sustainable development. Furthermore, the President believes that AI can uplift the lives of citizens, drive enterprise productivity, and increase the economy’s competitiveness.

According to a recent study by IBM’s Institute for Business Value, three out of four CEOs think that organizations with the most advanced generative AI (GenAI) are at an advantage, with nearly half utilizing GenAI to guide their strategic decisions. As organizations expand their AI adoption, it is imperative that they adhere to responsible AI practices, which promote the ethical, transparent, and beneficial use of the technology.

AI ADOPTION IN THE PHILIPPINES
AI adoption is evident across multiple Philippine industries, each harnessing its capabilities to enhance operations and manage risk.

• Financial institutions. Some universal banks are leveraging AI for risk assessment, fraud detection, and customer service, utilizing solutions provided by tech giants such as Microsoft.

• Healthcare. Some healthcare platforms are leveraging AI for medical data analysis, improving patient care, and expanding telehealth services.

• Telecommunications. Telecom companies employ AI for network optimization, customer service enhancement, and predictive maintenance.

• E-commerce/Retail. Online marketplaces and retailers utilize AI-driven recommendations and predictive analytics to refine the customer experience and operational efficiency.

AI’S IMPACT ON RISK MANAGEMENT
AI is revolutionizing risk management by offering enhanced data analysis, predictive capabilities, real-time risk assessments, and advanced cybersecurity measures. These technologies enable businesses to identify and respond to risk with unprecedented speed and accuracy.

However, the integration of AI into risk management is not without its challenges. Concerns around data privacy, algorithmic bias and fairness, transparency, and regulatory compliance must be addressed to ensure the responsible use of AI.

• Data privacy and security. AI systems rely on data. There’s a risk that sensitive customer or business information could be exposed, particularly if appropriate cybersecurity measures are not in place.

• Algorithmic bias and fairness. AI systems are only as good as the data they’re trained on. If the data are inaccurate, incomplete, or biased, it can lead to unreliable or discriminatory decisions.

• Lack of transparency. Complex AI models may lack transparency, making it challenging for stakeholders to understand how decisions are made. If the reason behind a decision by AI can’t be explained, it can lead to legal and ethical implications.

• Regulatory compliance. The legal environment for AI is complex, fluid, and still developing. Companies can face risks relating to non-compliance with data protection regulations and other industry-specific laws.

NAVIGATING AI RISKS WITH RESPONSIBLE PRACTICES
Responsible AI covers transparency, fairness, accountability, ethical use, privacy protection, reliability, safety, sustainability, inclusivity, and governance.

To integrate responsible AI into risk management, companies can adopt the following best practices:

• Ethical framework development. Create a comprehensive ethical framework that aligns with regulatory standards and industry-specific best practices.

• Data governance and privacy protection. Implement data governance practices to ensure data privacy and transparency in AI models.

• Transparency and explainability. Make AI outputs understandable and provide justifications for AI-generated decisions.

• Bias detection and mitigation. Conduct thorough bias assessments to identify and mitigate biases in AI models.

• Human-AI collaboration. Augment human expertise with AI, promoting collaboration through accessible interfaces like visualizations and interactive dashboards.

EXAMPLES OF RESPONSIBLE AI IN ACTION
• Banks. Major banks are incorporating AI in risk management, with a focus on fraud detection. Responsible AI usage involves stringent data protections and privacy measures.

• Telecommunications. Providers use AI to manage infrastructure risk and predict outages. Ensuring responsible AI usage means preventing wrongful service denials.

• E-commerce. Some platforms employ AI for product recommendations, with a responsibility to avoid discriminatory biases.

• Health Tech. Certain companies use AI for disease diagnosis, requiring the protection of sensitive health information.

THE TRAJECTORY OF RESPONSIBLE AI IN THE PHILIPPINES
The future of responsible AI in the Philippines includes broader AI adoption, enhanced regulation, and workforce upskilling, among others. With the Philippines set to propose the creation of a Southeast Asian AI regulatory framework to ASEAN in 2026, responsible AI could become a standard in business operations.

As AI becomes more pervasive in the business landscape, its impact on society will be profound, shaping the future of work, influencing broader socio-economic development, and driving positive change. It is therefore imperative for organizations to embrace responsible AI principles in risk management and collaborate with stakeholders to navigate the opportunities and challenges presented by AI-driven innovation.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Christiane Joymiel C. Say-Mendoza and Joseph Ian M. Canlas are business consulting partners of SGV & Co.

SIM registration law has not deterred scams linked to POGOS, says senator

PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter and Chloe Mari A. Hufana

SCAMMERS linked to Philippine Offshore Gaming Operators (POGO) have exploited regulatory failure to implement a 2022 law that mandated the registration of Subscriber Identity Module (SIM) cards, a senator said on Sunday. 

“The National Telecommunications Commission (NTC) should do its job of ensuring effective implementation of the SIM registration law,” Senator Sherwin T. Gatchalian said in a statement after a number of SIM cards used for fraud were found in recent raids of illegal POGO sites. 

“The goal of this legislation is to provide accountability for those using SIM cards and to support law enforcement in tracking perpetrators of crimes committed through phones. Because the NTC has apparently forgotten its responsibility, scammers in the POGO industry continue to use SIM cards unabatedly,” he added.

The NTC did not immediately reply to an e-mail seeking comment.

Mr. Gatchalian was referring to raids conducted against Smartweb Technology Corp. in Pasay City, Zun Yuan Technology in Bamban, Tarlac and Lucky South 99 in Pampanga.

Authorities seized SIM cards with false identities and phones and scripts for scamming during the raid of Zun Yuan’s site in March, Mr. Gatchalian said, adding that these were “used in undertaking love, cryptocurrency and other investment scams.”

The raid of Lucky South’s site earlier this month also yielded phone devices, he said. 

But since the enactment of the SIM Card Registration bill in October 2022, fraudulent activities have risen significantly, said Mr. Gatchalian, who co-authored the measure.

“SIM registration is an important tool in combating online crimes that make use of a phone. The NTC should stop sleeping on its job so we can realize this goal,” he said.

At the weekend, the Presidential Anti-Crime Commission (PAOCC) said it was keeping an eye on 58 banned POGOs.

Its spokesman Winston John R. Casio told reporters some of those based in Pampanga, Cavite, Laguna, Palawan and Cebu might still be operating based on social media monitoring.

The agency is struggling with its lack of manpower, with only 49 agents, he said. There are 43 legal POGOs in the Philippines, according to PAOCC.

Meanwhile, American and British executives said POGO raids would not affect the appeal of the Philippines to investors.

“Most seemed to be surprised at the scale and possible Chinese influence, but most believe the Philippine government will be managing it properly,” American Chamber of Commerce of the Philippines, Inc. Executive Director Ebb Hinchliffe told BusinessWorld in a Viber message.

“Most foreigners wouldn’t have a clue what a POGO is, let alone the issues surrounding them,” he added.

British Chamber of Commerce of the Philippines Executive Director and Trustee Christopher James Nelson said illegal POGOs are a specific crime that British investors do not pay attention to.

Foreign investors are focusing more on the Philippines’ economy, the ease of doing business and key legislation, he added.

He said most foreign investors are more interested in the direction of interest rates and the peso. “What is going to happen with interest rates? Linked to that is where is the peso [going]?” he said by telephone.

Mr. Nelson said the Philippines remains attractive to foreign investors because of its skilled workforce.

A POGO ban is unlikely to dissuade foreign investors, he added.

American Chamber of Commerce adviser Katherine Stuntz said the government of President Ferdinand R. Marcos, Jr. should continue to address the issue of illegal POGOs. “It’s important to consider the broader economic context and other factors shaping investment decisions,” she said in a Viber message.

Economists have said POGOs complicate Philippine efforts against money laundering and may hinder its ambition to become an investment hub.

The country has been on the Financial Action Task Force’s (FATF) gray list of countries under heightened monitoring for dirty money since 2021, partly because of its loosely regulated gaming sector.

Legislators under the past administration passed a law legalizing POGOs by taxing them amid concerns about the social costs of gambling.

The Chinese Embassy in Manila last week issued a statement urging the Philippine government to ban POGOs.

It said the embassy has implicated about 3,000 Chinese nationals in POGO-related crimes since 2019.

Last year, it helped the Philippines in closing five POGO hubs and repatriating about 1,000 Chinese citizens.

“We ppeal to he Philippines to ban POGOs at an early date so as to root out this social ill,” it said in a statement on Friday. “We firmly oppose any baseless ccusation and smearing against China in connection with POGOs.”

Manila winning battle vs China in international community — lawmaker

AN AERIAL VIEW of the BRP Sierra Madre at the contested Second Thomas Shoal on March 9, 2023. — REUTERS

A GROUP of Seven (G7) statement opposing China’s dangerous maneuvers in the South China Sea shows that the Philippines is winning the battle in the international community in its sea dispute with Beijing, according to a congressman.

Beijing has become a “pariah” in the international community due to its attempt to change the status quo in the waterway, Cagayan de Oro Rep. Rufus B. Rodriguez said in a statement at the weekend.

“The G7 declaration of support, together with similar pronouncements from allies of the Philippines in this part of the world… is proof that we are winning the battle against China in the international community,” he added.

The G7 on Saturday called out China for its increasing use of dangerous maneuvers and water cannons against Philippine vessels. It opposed Chinese “intimidation activities” in the South China Sea.

In a communiqué after the G7 Summit in Apulia, Italy, the leaders of the powerful economic bloc raised concerns about the situation in the East and South China Seas, reiterating their “strong opposition to any unilateral attempt to change the status quo by force or coercion.”

“We continue opposing China’s dangerous use of coast guard and maritime militia in the South China Sea and its repeated obstruction of countries’ high seas freedom of navigation,” they said in the statement.

China claims more than 80% of the South China Sea based on a 1940s nine-dash line map, including areas within the Philippines exclusive economic zone.

The Permanent Court of Arbitration in 2016 voided China’s sweeping claims for being illegal.

Beijing has deployed an armada of coast guard and militia vessels in the South China Sea to assert its claims.

“Beijing’s aggression is taking place inside our own 200-[nautical] mile exclusive economic zone,” Mr. Rodriguez said.

China’s coast guard has repeatedly used high-pressure water cannons to dissuade Philippine vessels from entering highly contested areas within the country’s exclusive economic zone including Scarborough Sho and Second Thomas Shoal. — Kenneth Christiane L. Basilio

House to prioritize 2025 budget when sessions resume

PHILSTAR FILE PHOTO

THE HOUSE of Representatives will prioritize the 2025 national budget once Congress resumes sessions next month, Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said on Sunday.

The government of President Ferdinand R. Marcos, Jr. is proposing a P6.2-trillion budget for next year, 7.6% more than this year, he said in a statement.

The Speaker said the Budget department is expected to submit the proposed appropriations after the president’s state of the nation address on July 22. “That is the biggest and most important piece of legislation.”

The House will discuss the budgets of the different agencies from August to October.

House leaders last month said they are looking at increasing the budgets of Defense agencies and the Philippine Coast Guard amid Chinese aggression in the South China Sea.

Tensions between the Philippines and China have worsened in the past year as Beijing continues to block resupply missions to Second Thomas Shoal, where Manila grounded a World War II-era ship in 1999 to assert its sovereignty.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s expansive claims in the waterway for being illegal.

The 19th Congress will open its third and last session next month. — Kenneth Christiane L. Basilio

Speaker says Congress close to amending rice tariffication law

House Speaker Ferdinand Martin G. Romualdez — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Kenneth Christiane L. Basilio

SPEAKER Ferdinand Martin G. Romualdez said Sunday that Congress is on the verge of amending the Rice Tariffication Law, citing how the two chambers have come to resolve contentious issues in the bill.

“It is still ongoing, but it seems that an agreement between the House of Representatives and the Senate is near,” Mr. Romualdez said in a statement.

Previously, Romualdez said senators were deliberating independently of the House but were open to amending the law.

It remains unclear, though, whether or not senators have already agreed to restore the National Food Authority’s (NFA) power to import and sell rice at subsidized prices.

Senator Cynthia A. Villar, who chairs the Senate Committee on Agriculture and Food, previously bucked the proposal in House Bill (HB) No. 10381 to reinstate this power to the NFA.

“The main amendment proposed by HB No. 10381 is bringing back NFA authority to import rice and sell to the market in times of rice emergency, experiencing a shortage and extraordinary or sustained price increase,” said Enrico P. Villanueva, a senior lecturer at the University of the Philippines Los Baños Economics Department. “In principle, such a move can lower retail prices in a short time.”

Earlier, Mr. Romualdez underscored that amending the rice law would make the nation’s staple food cheaper.

In doing so, Mr. Villanueva said the important questions to ask are: “At what price or cost to the nation? [and] is this the optimal way to reduce rice prices?”

In July 2010, the NFA’s debt ballooned to P177 billion from the previous year’s P20.9 billion — an eight-fold increase on the back of government’s focus on subsidizing the prices of the staple grain during the 2008 food crisis.

That food crisis “resulted in the NFA’s frantic sourcing from international rice suppliers” to meet local demand, according to a 2020 report by The Asia Foundation.

HB 10381 seeks to expand the budget for the Rice Competitiveness Enhancement Fund (RCEF) to P15 billion from P10 billion and extend its validity for another six years.

Mr. Villanueva said amendments to the RCEF should be considered the long-term solution in making rice cheaper for Filipinos.

“The RCEF is a long-term solution,” he told BusinessWorld through e-mail.” The premise of [the] Rice Tariffication [Law] is to give consumers access to cheaper rice, with the farmers still protected through tariffs that can also be used to directly compensate them — monetarily or through farm inputs.”

“Amending the Rice Tariffication Law is a crucial step towards ensuring food security and economic stability for our farmers,” said Mr. Romualdez.

Punish cops for EJKs — group

PHILSTAR FILE PHOTO

A HUMAN rights group called on the government on Sunday to hold police and officials accountable for alleged extrajudicial killings (EJK) to encourage more people to come forward and testify against abuses during the past administration’s bloody war on drugs.

“Seeing perpetrators being held to account — investigated and prosecuted at least — would create a safer environment for these victims to speak out,” Carlos H. Conde, a senior researcher at the Asia division of Human Rights Watch, told BusinessWorld via e-mail. “It would be difficult [for victims to testify] if accountability remains practically zero.”

The Philippine Drug Enforcement Agency (PDEA) had reported 6,229 people killed as a result of the anti-drugs campaign, but human rights groups claim the number is above 20,000.

“Many of them still refuse to talk to rights monitors… for fear of their safety. Plus, the state has failed to help and secure them — why would they endanger themselves?” Mr. Conde said of victims’ next of kin or witnesses.

The state should acknowledge that EJKs occur due to government policies enabling the culture of impunity to prevail, Karapatan Secretary-General Cristina E. Palabay told BusinessWorld in a separate email.

Aside from addressing the culture of impunity, the government should offer independent legal assistance, psychosocial support, and witness protection to EJK victims and their families, said Ms. Palabay. — Kenneth Christiane L. Basilio

21 rescued OFWs bound home

PHILIPPINE STAR/WALTER BOLLOZOS

THE 21 FILIPINO seafarers rescued from a bulk carrier attacked by Houthi rebels in the Red Sea last week are set to return to the Philippines on Monday.

Citing information from the Department of Migrant Workers (DMW), Malacañang said on Sunday the overseas Filipino workers (OFWs) were received by Philippine Ambassador to Bahrain Anne Jalando-on Louis on Saturday and “expected to board a flight home Sunday evening.”

Twenty-two Filipinos were onboard bulk carrier MV Tutor, a Liberian-flagged, Greek-owned vessel, when it was attacked by Houthi rebels in the southern Red Sea last week.  One of them “remains missing,” the palace said. “Search operations are underway to locate the missing seafarer,” it added.

The 21 who arrived at the Port of Manama, Bahrain, on Saturday afternoon will be joined by DMW Labor Attaché Hector Cruz.

The Houthis, which are backed by the Iranian government, have been attacking cargo ships in the Red Sea and Gulf of Aden since November in response to what they call as “heinous acts” being committed by Israel in Gaza. — Kyle Aristophere T. Atienza

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