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Fight corruption for efficient governance

JESUS MONROY LAZCANO-UNSPLASH

TO ENSURE further development in the country, it’s imperative to address the challenges now besetting the National Government. Among the major issues it is currently facing is corruption.

This perennial problem continues to impede economic growth, breeding social inequality, and eroding public confidence. Effective law enforcement, transparent governance, and robust anti-graft measures are necessary to combat corruption. To prevent it, institutions must be strengthened, and a culture of integrity be fostered.

Among the causes of corruption are poverty and inequality. These issues remain amid the country’s economic growth. Basic utilities, good healthcare, education, and employment are still inaccessible to many Filipinos. Hence, the government must prioritize taking actions on mitigating poverty and funding social programs.

A sound policy environment is also crucial to weed out corruption in public office. This is by way of enacting or amending laws to strengthen the legal foundation for fighting corruption in government. Legislation that outlaws unethical activity, lays forth precise standards for moral conduct, and shields informants from prosecution falls under this category. Strictly enforcing these regulations is essential to prevent wrongdoing.

The Philippines’ Ombudsman has been involved in several high-profile corruption lawsuits, including the Priority Development Assistance Fund (PDAF) scam, Disbursement Acceleration Program (DAP) controversy, and the Maguindanao massacre cases. These involved the misappropriation of government funds for development projects, the misuse of resources by the executive branch, political corruption, and abuse of power. The Ombudsman played a crucial role in investigating and prosecuting those involved, leading to the conviction of several individuals, including prominent political figures.

The Ombudsman oversees guaranteeing transparency and accountability in the executive branch. It can bring legal action before the Sandiganbayan court and investigate allegations of corruption against public servants and authorities. Apart from promoting good governance and urging actions to stop corruption, it also performs a preventive role, having the authority to start asset recovery procedures, seize, and forfeit money that was illegally obtained.

Also, the Ombudsman keeps an eye on how well government organizations are performing to make sure they adhere to law and moral principles. To combat corruption and advance openness, it takes part in public advocacy and education. What’s more, it helps in developing a culture of integrity and good governance by holding public servants accountable and encouraging moral behavior.

Meanwhile, independent audit organizations play a crucial role in guaranteeing transparency in government spending. To ensure that financial statements, transactions, and records adhere to legal requirements as well as accounting standards, they inspect them. To evaluate the efficacy, economy and efficiency of government initiatives and activities, they also carry out performance audits.

Their critical role doesn’t stop there. They also evaluate and point out instances of non-compliance with rules and regulations pertaining to financial management and spending. By spotting anomalies and making suggestions for enhancement, they also discover and stop fraud and corruption. To improve openness and public accountability, they generate audit reports that offer an unbiased evaluation of government spending and financial management. Independent audit institutions check on the executive branch by making public servants responsible for the management of the peoples’ fund.

 

Juan “Yuan” Santos, serves as territory manager and sales representative at BusinessWorld Publishing Corp. He is the president of both the Rizal Technological University (RTU) – Kalipunan ng Mag-Aaral at Pampublikung Pangangasiwa (KAMAPPA) and the RTU College of Arts and Sciences Graduate Program Students Association (CAS-GPSA).

Saripay eyes climate insurance for MSMEs

SARIPAY, the financial arm of GrowSari, Inc., is looking at offering climate risk insurance to micro, small and medium enterprises (MSMEs) including mom-and-pop stores and other small businesses that use its online payment platform, its top official said.

“We are looking at insurance as one of the opportunities that store owners can buy [to] protect themselves against future calamity,” Saripay General Manager Sandeep Bhalla told BusinessWorld in a Zoom interview on March 15.

Mr. Bhalla said MSMEs can protect inventory and recover losses from rains and typhoons.

Saripay offers MSMEs such as mom-and-pop stores, pharmacies and small side eateries short-term loans and cashless payments through a business wallet.

It offers ELista, a “buy now, pay later” financing service that MSME owners can use for inventory purchases.

Mr. Bhalla said the company is also considering using its partner-stores as outlets where customers can receive local payments. He added that they want partner stores to open bank accounts.

Saripay expects to increase the number of stores that use its QR (quick response) code service to as many as 75,000 in the next 12 to 18 months from 30,000 now. It also sees its buy now, pay later service growing by 50% this year.

GrowSari and Saripay users get a free QR code that allows stores to accept digital payments from customers. About 70,000 stores have access to Saripay’s buy now, pay later service.

Mr. Bhalla said Filipino consumers are not yet fully cashless and are still learning about digital money. Smartphone access remains an issue for some, he added. — Aubrey Rose A. Inosante

Arts & Culture (03/20/24)


Women artists, Charlie Co at the Ateneo Art Gallery

TO MARK the annual celebration of March as Women’s Month, the Ateneo Art Gallery recently unveiled “Matrix II: Women Artists from the Collections of the Ateneo Art Gallery and Ambeth R. Ocampo.” The first iteration in 2002 was held in the modest spaces of the Ateneo de Manila University’s Special Collections Building, featuring 17 women artists. This second iteration has 50 artists, selected from the university museum’s permanent collection. It also coincides with the exhibit “The World According to Charlie Co: Drawings, Paintings, Sculptures and Mixed Media Works” at the second floor of the gallery. Following its first mounting in 2020, guests can look forward to seeing added works from Charlie Co’s personal collection. The exhibits are on view until Aug. 3. For more information, visit www.ateneoartgallery.com or e-mail aag@ateneo.edu.


Ilusorio, Montesclaros in piano benefit concert

BANTU PH is presenting an evening of classical music at the Asia Pacific College (APC). The concert, called Cuatro Manos: A Cultural Duet, features two internationally acclaimed concert pianists: Mariel Ilusorio and Inna Montesclaros. The concert will be held at APC’s Auditorium on March 23 at 4 p.m. Proceeds will be for the benefit of Bantu PH’s programs for underprivileged youth. To extend support, visit the Cuatro Manos official website, https://cuatromanos.apc.edu.ph/, or message the APC Facebook Page.


Jürg Casserini featured at Galerie Hans Brumann

THE ENTIRE month of March will see artist Jürg Casserini featured in an exhibit titled “Swiss Connection,” at Galerie Hans Brumann. Located at the lower ground floor of the Legaspi Parkview Condominium in Makati City, the space is the temporary home to Mr. Casserini’s Bangka series, which shows how battered pieces of the local fishing boat come together, with the vivid colors of the flotsam naturally preserved by seawater. The artist also saw potential in the waste product of copper smelting. There are also pieces of driftwood reworked into sculptures. Mr. Casserini is joined by painter Jörg Stäehli and piña-seda artist Samantha Aragon-Kaspar. To know more about the artists and their works, visit https://www.facebook.com/galeriehansbrumann/.


Haegue Yang to launch book and hold lecture

THE MUSEUM of Contemporary Art and Design (MCAD) Manila will be hosting a public lecture by Korean artist Haegue Yang on March 23, 3 p.m., at the Roosevelt Function Room in Las Casas Filipinas de Acuzar, Quezon City. The launch of the book Haegue Yang: The Cone of Concern will follow at 4:30 p.m. While both events are open and free to the public, visitors must RSVP via mcad@benilde.edu.ph due to limited space. Ms. Yang, who lives and works in Berlin and Seoul, is known for her unique interweaving of conceptual language and aesthetic vocabulary. Her new book is a documentation of her exhibition of the same title. Those attending the event are eligible for a 10% discount upon purchase of the book.


Mixed media exhibit benefits charity ministries

“HEART in Art,” an exhibit for the benefit of GCF Mercy and Operation Compassion Ministries, is ongoing until March 31 at the ARTablado, Level 3 Veranda, Robinsons Galleria, Ortigas. It is a collaborative effort of multiple generations of artists using mixed media. All individual pieces dig deep into faith experiences, marking the first attempt for this community of artists from the Greenhills Christian Fellowship to work as a team through art. The artists are Addie Cukingnan, Ana Abigail Araneta, Aileen Espinosa Cura, Doris Disuanco, Flordz Perona, Gina Guerrero-Roldan, Naomi Banal, Jet Rai, Jimmy Tayag, Josiah Bien Sebastian, Ofemia Sy Tan, Rommel Yazon, and Tot Ligot.


Katherine Lacson to lecture on comfort women

AS PART of the 2nd Roderick Hall Memorial Lectures series, Breaking the Silence, Shifting Perspectives: Evolving Narratives and Representations of Filipino Comfort Women will tackle yet another historical narrative. This time, Katherine G. Lacson’s free lecture, presented by Ayala Foundation’s Filipinas Heritage Library, will explore how the stories of Filipino comfort women evolve over time. It will be held on March 23 at 2 p.m., in both Ayala Museum in Makati and via Zoom. For more details and to register, visit the Filipinas Heritage Library website.


UP Alumni Awards 2024 calls for nominations

THE UNIVERSITY of the Philippines Alumni Association (UPAA) has announced the deadline of April 1 for the submission of nominations to the UPAA Distinguished Alumni Awards 2024. UPAA President Robert Aranton invites sectors and groups to identify UP alumni nominees who are “everyday heroes or unsung achievers making a difference through their quiet work in obscure areas of the country or foreign territories.” For nomination forms, contact the UPAA Secretariat at Ang Bahay ng Alumni, Magsaysay Ave., UP Diliman, Quezon City, or e-mail upaa.awards2024@gmail.com.


Gurudev Sri Sri Ravi Shankar holds meditation session

TO SPREAD the word about achieving peace of mind, humanitarian leader and spiritual teacher Gurudev Sri Sri Ravi Shankar will conduct a meditation session in Manila on April 5, 6 p.m., at The Fifth at Rockwell, Powerplant Mall, Makati. The event, called “In Joy with Gurudev Sri Sri Ravi Shankar,” may help eliminate stress, bolster mental health and well-being, and build resilience through evidence-based breathwork and meditation techniques. To purchase tickets, which cost from P500 to P800, visit www.artofliving.org or follow Art of Living PH @artoflivingph on Instagram, and Art of Living Philippines on Facebook.

BankCom posts higher net earnings in 2023

BANKCOM.COM.PH

BANK of Commerce (BankCom) saw its net income rise by 55.67% last year amid higher revenues.

The San Miguel Corp. affiliate recorded a net profit of P2.802 billion in 2023, up from the P1.8 billion posted in the prior year, its financial statement showed. The lender noted this was its highest annual net income since 2008.

In the fourth quarter alone, BankCom’s net earnings more than doubled to P791.07 million from P311.58 million a year prior on higher revenues from its lending business, investment securities and fees from investment banking group deals.

The bank’s full-year performance translated to a return on equity and a return on assets of 9.52% and 1.25%, respectively.

BankCom’s net interest income rose by 24.16% to P8.3 billion from P6.682 billion on the back of higher earnings from loans and investment securities amid elevated yields.

Its net interest margin was at 4.28%, up from 3.73%.

BankCom’s gross revenues grew by 22.9% to P9.98 billion from P8.12 billion in 2022 on the back of higher service charges, fees, and commissions, and trading gains.

“These are on account of investment banking deals in 2023, which delivered substantial fees for the bank; the recovery of its trading and investment securities business, and a rise in gains coming from the foreclosure, and sale of properties and equipment and foreclosed assets,” BankCom said.

Other income stood at P1.68 billion, 17% higher than P1.43 billion a year prior.

Meanwhile, operating expenses increased by 10.41% to P6.24 billion in 2023 from P5.65 billion in 2022.

This brought its cost-to-income ratio to 0.62% last year, down from 0.68% in 2022.

The bank’s total loans and receivables went up by 4.26% to P109.57 billion from P105.09 billion, driven by corporate loans.

Its nonperforming loan (NPL) ratio stood at 1.54%, down from 2.10% a year prior. Meanwhile, NPL cover was at 93.21%, up from 89.05%.

The bank set aside provisions of P78.84 million in 2023, down 52.56% from P166.21 million in the previous year.

On the funding side, total deposits rose by 5.47% to P185.91 billion in 2023, driven by a 7% increase in current and savings account or CASA deposits to P164.24 billion.

The lender’s loan-to-deposit ratio was steady at 70%.

BankCom’s assets increased by 6.51% to P231.67 billion at end-2023.

Total capital rose by 10.06% to P30.85 billion. Its capital adequacy ratio and common equity Tier 1 ratio stood at 19.88% and 19.09%, respectively.

BankCom’s shares went down by 27 centavos or 4.16% to close at P6.22 apiece on Tuesday. — A.M.C. Sy

Globe Telecom, Inc. to hold 2024 Annual Meeting of Stockholders virtually on April 24

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How PSEi member stocks performed — March 19, 2024

Here’s a quick glance at how PSEi stocks fared on Tuesday, March 19, 2024.


Philippines drops in Global Opportunity Index

The Philippines slipped five places to 91st place out of 130 countries in the 2024 edition of the Global Opportunity Index (GOI) by nonprofit think tank Milken Institute. The index assesses various factors such as economic, financial, institutional, and regulatory aspects to assess the country’s attractiveness to foreign investors. Among its peers in the East and Southeast Asian region, the country ranked third lowest.

 

Philippines drops in Global Opportunity Index

Stocks drop as market awaits Fed policy meeting

BW FILE PHOTO

PHILIPPINE SHARES slipped on Tuesday on last-minute profit taking and as investors were cautious ahead of the US Federal Reserve’s policy meeting.

The Philippine Stock Exchange index (PSEi) dropped by 0.07% or 4.86 points to close at 6,848.43 on Tuesday, while the broader all shares index retreated by 0.12% or 4.41 points to end at 3,566.48.

“This Tuesday, the local market dropped by 4.86 points (-0.07%) to 6,848.43 due to last-minute profit-taking,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“Investors seem to be cautious ahead of the Federal Reserve’s policy meeting given that the US producer price index (PPI) data last Friday was higher-than-expected. This resulted in a sideways movement of the market for Tuesday’s session,” he added.

The Fed is meeting to review policy on March 19-20. Markets widely expect the US central bank to keep its target rate unchanged at 5.25-5.5% for a fifth straight meeting and maintain a hawkish tone as data released last week showed that inflation in the world’s largest economy remains sticky.

A report from the Labor department showed the PPI for final demand rose 0.6% in February after advancing 0.3% in January, Reuters reported. Economists had forecast the PPI would climb 0.3%.

In the 12 months through February, the PPI shot up 1.6% after advancing 1.0% in January. The report followed news that consumer prices increased strongly for a second straight month in February.

“Investors await guidance on monetary policy as the Federal Reserve starts its two-day meeting on Tuesday. Concerns arise from recent inflation reports, suggesting the central bank may signal prolonged higher interest rates,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Philippine shares softened ahead more economic data and the release of Nvidia’s inaugural AI (artificial intelligence) conference,” Mr. Limlingan added.

The majority of sectoral indices closed lower on Tuesday. Mining and oil declined by 1.31 points or 108.25 points to 8,111.38; holding firms went down by 1.16% or 76.12 points to 6,441.21; services retreated by 0.24% or 4.49 points to 1,808.91; and industrials inched down by 0.23% or 20.66 points to 8,832.92.

Meanwhile, property climbed by 1.73% or 47.99 points to 2,819.45, and financials rose by 0.21% or 4.36 points to 2,047.85.

“Among the index members, Converge ICT Solutions, Inc. was at the top, climbing 3.16% to P9.14. Bloomberry Resorts Corp. lost the most, dropping 8.7% to P10.50,” Mr. Plopenio said.

Value turnover declined to P5.79 billion on Tuesday with 897.73 million issues switching hands from the P6.3 billion with 2.21 billion shares traded on Monday.

Decliners beat advancers, 114 versus 84, while 48 names closed unchanged.

Net foreign buying stood at P244.88 million versus the P23.73 million in net selling seen on Monday. — Revin Mikhael D. Ochave with Reuters

Peso sinks as Bank of Japan exits negative-rate regime

BW FILE PHOTO

THE PESO sank against the dollar on Tuesday following the Bank of Japan’s (BoJ) move to exit its negative interest rate policy regime.

The local unit closed at P55.92 per dollar on Tuesday, weakening by 34 centavos from its P55.58 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session weaker at P55.68 against the dollar. Its worst showing was at P55.95, while its intraday best was at P55.67 versus the greenback.

Dollars exchanged went up to $1.31 billion on Tuesday from $1.01 billion on Monday.

“The peso continued to weaken after the first policy rate hike from the Bank of Japan,” a trader said in an e-mail.

The Bank of Japan ended eight years of negative interest rates and other remnants of its unorthodox policy on Tuesday, making a historic shift away from a focus of reflating growth with decades of massive monetary stimulus, Reuters reported.

The shift makes Japan the last central bank to exit negative rates and ends an era in which policy makers around the world sought to prop up growth through cheap money and unconventional monetary tools.

In a widely expected decision, the BoJ ditched a policy put in place since 2016 that applied a 0.1% charge on some excess reserves financial institutions parked with the central bank.

The BoJ set the overnight call rate as its new policy rate and decided to guide it in a range of 0-0.1% partly by paying 0.1% interest on deposits at the central bank.

The central bank also abandoned yield curve control, a policy that had been in place since 2016 that capped long-term interest rates around zero.

The peso slumped against the dollar on Tuesday ahead of the Fed’s meeting, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

The US central bank will hold a policy meeting on March 19-20. The Fed raised its target rate by 525 basis points from March 2022 to July 2023 to the 5.25-5.5% range.

For Wednesday, the trader said the peso could drop further amid hawkish Fed bets.

The trader sees the peso moving between P55.80 and P56.05 per dollar on Wednesday, while Mr. Ricafort expects it to trade from P55.90 to P56. — AMCS with Reuters

Blinken says US to defend Philippines vs armed attack in South China Sea

U.S. Secretary of State Antony Blinken shakes hands with Philippines' Secretary of Foreign Affairs Enrique Manalo, at the Sofitel Hotel in Manila, Philippines, March 19, 2024. — REUTERS/EVELYN HOCKSTEIN/POOL

By Kyle Aristophere T. Atienza, Reporter

US SECRETARY of State Antony Blinken on Tuesday said the United States stands by its “ironclad” commitments to defend the Philippines against an armed attack in the South China Sea.

“These waterways are critical to the Philippines, to its security, to its economy, but they’re also critical to the interests of the region, the United States and the world,” he said at a joint press conference in Manila with his Philippine counterpart Enrique Manalo.

Mr. Blinken said the 1951 Mutual Defense Treaty between the two nations extended to armed attacks on the Philippine armed forces, public vessels and aircraft, including those of its coast guard anywhere in the South China Sea.

He said defense ties with the Philippines were “extraordinary” and would only grow further, though Washington’s expanding alliances were not aimed at China. 

Mr. Blinken said China’s actions in the South China Sea had triggered a wider international reaction, and the United States was engaged in intense diplomacy to reaffirm international law.

“We have a shared concern about (China’s) actions that threaten our common vision for a free open Indo-Pacific, including in the South China Sea and in the Philippines exclusive economic zone (EEZ),” he said.

During a meeting with Philippine President Ferdinand R. Marcos, Jr. later in the day, Mr. Blinken said US-Philippine ties are “more than rock solid” and an “absolute priority” of the Biden administration.

“I think Secretary [Manalo] said it so well: Our relationship is [on a] hyperdrive,” he told the Philippine leader, based on a press pool video. “That is so true, we see it across every domain.”

Last year, Mr. Marcos succeeded in pushing Washington to clarify the extent of the security commitment.

Mr. Blinken also said economic ties with the Philippines would expand, offering to support Philippine manufacturing as US companies diversify their supply chains.

Last week, the US Commerce secretary visited the Philippines and said US companies had pledged more than $1 billion in investments in the country.

Philippine Foreign Affairs Secretary Enrique Manalo said the challenge ahead was how to sustain and further elevate relations with the US, which he thanked for its support over recent altercations with China in the South China Sea.

The meeting came as the White House said President Joseph R. Biden would host Japanese Prime Minister Fumio Kishida and Mr. Marcos at a summit in Washington on April 11 to discuss economic ties and issues in the Indo-Pacific region.

Mr. Blinken said that arrangement was “a very important platform” for peace. “(It) is not designed against anyone, but in service of realizing a common vision for the future to the benefit of people in all of our countries.”

Ties between the Philippines and China have soured amid repeated spats over disputed features in the Philippine’s exclusive economic zone, and Manila has accused China’s coast guard of a policy of aggression.

Beijing, which claims sovereignty over almost the entire South China Sea, has maintained Philippine vessels are intruding into its territory.

China’s Foreign ministry spokesperson Lin Jian said the United States had no right to interfere in disputes between Manila and Beijing, and China would take action to defend its territory.

“Military cooperation between the United States and the Philippines should not harm China’s sovereignty and maritime rights and interests in the South China Sea, let alone be used to prop up the Philippines’ illegal position,” she told a news briefing.

The dispute coincides with a key improvement in military ties between the Philippines and United States in the past year, with Manila nearly doubling the number of its bases accessible to US forces, including three new sites facing Taiwan.

Their annual military exercises have widened lately to include joint air and sea patrols over the South China Sea and close to Taiwan, which China has seen as provocations.

Mr. Blinken’s remarks “further increase the Philippines’ confidence that the US will be there to support its claims in the South China Sea,” Gary Ador Dionisio, dean of the De La Salle University – College of Saint Benilde School of Diplomacy and Governance, said in a Facebook Messenger chat.

The Philippines is now one of the most visited countries in Southeast Asia by top American officials, he pointed out.

‘REAL MOTIVE’
The US sees the Philippines as a possible source of inputs, especially in semiconductors, as it boosts its manufacturing base while reducing dependence on China, Randy P. Tuaño, dean of the Ateneo de Manila University School of Government, said via Messenger chat.

“They should explore areas of commercial cooperation that will not only serve the interests of both sides but will provide the Philippines with more options amidst China’s ability to weaponize economics,” Don Mclain Gill, who teaches international relations at De La Salle University, said via Messenger chat.

Mr. Blinken’s return to Manila after almost a year was met with protests near the presidential palace, with groups accusing the US of fanning conflicts in the world.

“Today, our so-called main ally is actively fanning proxy wars and conflicts in various parts of the world,” Raymond Palatino, secretary-general of Bagong Alyansang Makabayan, said in a Messenger chat.

“The country’s assertion of sovereignty in the West Philippine Sea against China’s aggression should not involve the opportunistic meddling of a former colonizer whose real motive is to preserve and expand its imperialist hegemony in the Asia-Pacific region,” he added.

Joseph P. Purugganan, convenor of Trade Justice Pilipinas, sees the April 11 summit as “further consolidation of the Biden administration’s efforts to strengthen alliances to advance US economic interests and to sidestep China’s.”

He said the US is highly vulnerable to China’s access and control over critical raw materials that are vital to its manufacturing ambitions.

“It has to build these alliances, secure critical mineral agreements and enter into partnerships in order to ensure that supply chains that are vital to its interests are not disrupted and it can maintain advantage in manufacturing goods such as electric vehicles,” he said via Messenger chat.

The White House said Mr. Marcos and Mr. Biden would meet separately to “review the historic momentum in US-Philippine relations and discuss efforts to expand cooperation on economic security, clean energy, people-to-people ties, and human rights and democracy.”

“The increased anxiety of Japan regarding China and the Philippines’ reorientation back to the US against Chinese interests is a ripe opportunity for American foreign policy, and Washington would definitely like to have both on board,” Hansley A. Juliano, a political science lecturer at the Ateneo, said via Messenger chat. — with Reuters

House body OK’s higher tax deductions for firms that hire senior citizens

PHILIPPINE STAR/MIGUEL DE GUZMAN

A HOUSE of Representatives committee on Tuesday agreed to increase to 25% from 15% the tax deductions for companies that hire senior citizens, despite objections from the Bureau of Internal Revenue (BIR).

During a ways and means committee hearing, congressmen said the government should increase the tax on gambling corporations to offset the estimated losses from the proposed tax incentives.

“Why don’t we focus on gambling and gaming corporations as a potential source of extended government revenue?” Party-list Rep. Erwin T. Tulfo told the hearing in mixed English and Filipino.

Aside from the tax deduction, the substitute House bill also seeks to waive the fees on police, National Bureau of Investigation, village and medical clearances for senior citizen jobseekers.

Seniors are also entitled to get birth and marriage certificates and proof of identification free of charge.

The government stands to forego P25.87 billion in yearly revenues because of the higher tax deductions, Donaldo M. Boo, chief tax specialist at the National Tax Research Center, told congressmen.

“The bureau respectfully objects as there is a possibility that our revenue-generating power will be eroded,” BIR lawyer Ron Mikhail Uy told the hearing.

He said the House should retain the 15% tax deduction. “Considering that there is already an existing 15% deduction, may we propose that we retain the original percentage?”

Albay Rep. Jose Maria Clemente S. Salceda said he estimates P3.4 billion in foregone revenue from the tax deductions, much lower than the BIR’s P26-billion estimate.

“The revenue estimates are excessive,” Mr. Salceda, who heads the committee, told BusinessWorld by telephone in Filipino.

The BIR earlier said retailers that plan to honor expanded discounts for senior citizens and persons with disabilities could not claim tax deductions under the law.

Agencies including the Trade department are drafting a joint administrative order increasing the discount entitlement for seniors who buy basic goods.

Under the Expanded Senior Citizens Act of 2010, stores may only claim discounts as tax deductions based on the cost of the goods sold or services rendered.

The law gives seniors a 20% discount and exemption from value-added tax on medicines, hospital fees, medical supplies, fares, hotel, lodging, restaurant meals, theater admissions and funeral services. They also get a 5% discount on water and electricity bills. — Kenneth Christiane L. Basilio

Senate urged to probe resorts within protected areas

THE CHOCOLATE Hills in Bohol. — BOHOL.GOV.PH

A PHILIPPINE senator on Tuesday filed a resolution seeking to investigate land use agreements involving the country’s protected areas amid reports of resorts being built within the Chocolate Hills in Bohol province and Mount Apo Natural Park in central Mindanao.

Senate Resolution 976, by Senator Cynthia A. Villar called on the Senate to look into illegal construction activities within protected environmental areas.

Ms. Villar asked the Senate to probe in aid of legislation the management practices, status of land use agreements and protection mechanisms within these areas.

She also cited the need to probe reports of illegal logging and quarrying in the Upper Marikina River Basin Protected Landscape, which she said could worsen flooding in Rizal and Marikina.

The Chocolate Hills and Mount Apo are United Nations Educational, Scientific and Cultural Organization world heritage sites.

Both are protected areas under the National Integrated Protected Areas Systems Act of 1992.

Last week, the Department of Environment and Natural Resources said it had ordered the closure of the resort within Chocolate Hills in September for operating without an environmental compliance certificate.

A video of the Captain’s Peak Resort, which is in the middle of the hills, went viral on social media last week, drawing flak from environmental groups and advocates.

On Monday, Senator Rafael T. Tulfo told the Senate plenary that mountaineering groups had reported several resorts operating within the Mount Apo National Reserve, citing the need to investigate why these were being allowed.

“It is deemed essential to examine the management practices… the adequacy or absence of protection mechanisms provided to each of the country’s protected areas,” Ms. Villar said in the resolution.

“[This is] to ensure that the original intentions and wise foresight in their establishment are not undermined, thereby securing a sustainable future for the present and future generations.”  John Victor D. Ordoñez