Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1888

Residential property price growth further slows in Q4 – BSP data

A VIEW of residential condominium buildings in Mandaluyong, Metro Manila, Aug. 22, 2016 — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

Housing prices nationwide rose at a much slower pace in the fourth quarter of 2023, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The Residential Real Estate Price Index (RREPI) rose by 6.5% year on year in the October-to-December period. This was much slower than the 12.9% expansion in the third quarter and the 7.7% growth in the same period a year earlier.

This was also the slowest growth in residential property prices since the 2.6% in the second quarter of 2022.

House prices up 6.5% in Q4 2023On a quarterly basis, nationwide home prices contracted by 3.6%, ending two quarters of growth.

Joey Roi H. Bondoc, associate director for research at Colliers International Philippines, said the quarter-on-quarter contraction in prices may have been due to a slower take-up in the fourth quarter.

“This is probably due to some end-users and investors, especially those that depend on Overseas Filipino Worker (OFW) remittances, having to factor in other expenses due to the holiday season and other big-ticket purchases including cars,” he said in an email.

The RREPI tracks the average price changes of residential properties across different housing types and locations. This provides the central bank with insights into the property market, which is regulated due to bank exposure.

BSP data also showed that the prices of single-detached/attached houses rose by an annual 9.5% in the fourth quarter, slower than the 16.8% expansion in the previous quarter and the 10% growth a year ago.

Prices of townhouses grew by 4.9% in the October to December period, easing from 9.3% in the third quarter but a turnaround from 6.8% decline in the same period in 2022.

Prices of condominium units went up by 4.1% in the fourth quarter, slower than the 8.3% and 12.9% posted in the third quarter of 2023 and fourth quarter of 2022, respectively.

On the other hand, prices of duplex units dropped by 33.5%, a reversal of the 57.7% growth in the July-September period and 42.9% expansion in fourth quarter of 2022.

OUTSIDE NCR
Meanwhile, residential property prices in the National Capital Region (NCR) increased by 4.3% in the fourth quarter, slower than the 12.3% in the previous quarter and 16.1% a year ago.

In contrast, residential property prices in areas outside NCR (AONCR) jumped by 7.8%. This was a faster clip than the 4.5% in the same period a year earlier but slower than the 14.3% in the third quarter.

In the fourth quarter, residential and real estate loans granted for all types of new housing units spiked by 30.5% year on year, despite elevated interest rates.

Housing loans in NCR and AONCR increased by 38.5% and 26.6%, respectively.

By type, most of the loans were used to purchase single-detached/attached houses and condominium units (both at 42.6%), followed by townhouses (14.7%.)

“Much of the loans are still cornered by NCR, Central Luzon, Calabarzon, Western Visayas, Central Visayas, and Davao region. This is expected given that developers have also been aggressively launching massive horizontal and vertical projects in these regions,” Mr. Bondoc said.

“We expect these regions to dominate in terms of real estate loans, especially once developers launch the residential projects that they have lined up within their master-planned communities,” he added.

BSP data also showed the average appraised value of new housing units in the Philippines stood at P89,042 per square meter (sq.m.) in the last three months of 2023.

The average appraised value in NCR was P134,178 per sq.m., while the average appraised value in AONCR stood at P65,186 per sq.m.

For the rest of the year, Mr. Bondoc expects a continued increase in property prices.

“We see the rise in residential prices being driven by horizontal projects including house-and-lot and lot-only developments. Single detached and attached units, for instance, remain popular among OFW investors and households that receive remittances from Filipinos working abroad,” he said.

However, he does not see a substantial increase in condominium prices amid the “tepid pre-selling market,” particularly  in Metro Manila.

“Developers have taken a more cautious stance in terms of their pre-selling condominium launches in Metro Manila and this is likely to result in slower turnover of condominium units in the next three to five years,” he said.

“Developers have been offsetting the lukewarm demand in Metro Manila by launching massive and expansive projects outside of the capital region,” he added.

S&P Global keeps Philippine GDP growth outlook for 2024, 2025

People are seen enjoying the view at Manila Bay, March 27, 2024. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

S&P Global Ratings maintained its gross domestic output (GDP) forecast for the Philippines this year and 2025, as it expects the country to be among the top performers in the region again.

“The economy’s growth is likely to improve over the next two years. As inflation moderates further, we forecast real GDP growth to about 6% for 2024 and 2025, compared to the 5.6% for 2023,” S&P Global Ratings Director Nikita Anand said in a webinar on Wednesday.

The credit rater sees Philippine GDP averaging 5.9% this year and 6.2% in 2025, the same as the forecasts it gave in November.

Both forecasts are still below the government’s 6.5-7.5% and 6.5-8% growth targets for 2024 and 2025, respectively.

“Although low relative to the Philippines’ recent history, this is actually one of the higher growth rates in the region as forecasted at the moment,” S&P Global Ratings Senior Economist Vincent Conti said.

“Our outlook is for the Philippines to do relatively well compared to the region, but kind of a little bit under where growth has been in the recent few years. Especially outside of the COVID-19 (coronavirus disease 2019) years,” he added.

With the 5.9% GDP growth forecast, the Philippines is expected to be the second-fastest growing economy in the region this year, behind only Vietnam (6.1%). It is ahead of Indonesia (4.9%), Malaysia (4.3%), Thailand (3.9%) and Singapore (2.2%).

For 2025, the Philippines also has the second-fastest projected growth in the region, after Vietnam (6.7%).

Last year, the economy grew by a weaker-than-expected 5.6%, failing to meet the government’s 6-7% goal.

Mr. Conti said that the economy is still feeling the impact of elevated inflation and weaker investments.

“Last year’s high inflation is likely to still weigh on consumption this year as last year’s prices would have eaten into disposable income and savings,” he said.

“The second headwind is the deceleration of investment last year, which we continue to expect to decelerate even further this year and that’s really due to the lagged impacts of the rate hikes. Investment is also going to be weighed by the aforementioned slower consumption,” he added.

S&P Global maintained its inflation forecast for the Philippines at 3.4% this year, slightly lower than the Bangko Sentral ng Pilipinas’ (BSP) 3.6% projection this year.

The credit rater sees inflation settling at 3.2% in 2025, in line with the BSP’s expectation.

“We’re already seeing inflation drop back into the BSP’s target range, where we expect that to continue to be the case for this year… that gives the BSP some leeway to be able to consider starting to cut rates,” Mr. Conti said.

“We also believe policy rates could decrease in 2024 as inflation stays moderate. Our base case is a 75 basis-point (bp) reduction in the second half of this year,” Ms. Anand added.

The BSP has kept its benchmark interest rate at a near 17-year high of 6.5% for three straight meetings. It raised borrowing costs by 450 bps from May 2022 to October 2023.

BSP Governor Eli M. Remolona, Jr. earlier said he expects to begin cutting rates “in the next few meetings.”

The Monetary Board is scheduled to meet on April 8.

Exporters cite job creation potential of Tatak Pinoy Act

CITEM

The Philippine Exporters Confederation, Inc. (Philexport) said that the Tatak Pinoy Act can help generate jobs for Filipinos and develop lagging industries.

In a statement Wednesday, Philexport President Sergio R. Ortiz-Luis, Jr. said that the export community welcomes the passage of Republic Act (RA) No. 11981, as similar efforts to encourage the purchase of Filipino products have mostly “fizzled out.”

“Particularly commendable is that RA 11981 enshrines private sector representation. For the first time, they thought of putting up a platform to really put together the government and the different industries to ensure sustainability of effort,” Mr. Ortiz-Luis said.

“It makes us happy that at least we have a vehicle to be able to address this. There have been a lot of laws passed lately whose value is debatable, but this law is surely of benefit to the country,” he added.

He said that in the short term, the law tackles low-hanging fruit such as job generation, by complementing the projects led by the Department of Trade and Industry.

“Later on, more projects can be identified for medium- and long-term development under the Tatak Pinoy Act,” he said.

“We have many industries that need to be developed that are not being developed, such as the bamboo industry,” he added.

Signed on Feb. 26, the law aims to develop a Tatak-Pinoy Strategy to support local industries “from the time of development to market expansion and to associate the Filipino brand with high-quality products.”

“The law aims to elevate the standard and competitiveness of Philippine products and services by fostering stronger collaboration between government agencies and the private sector,” Philexport said.

The law also calls for the establishment of the Tatak Pinoy Council, which will be chaired by the Trade secretary and co-chaired by the National Economic and Development Authority and Finance secretaries.

“The Council is tasked to implement the program’s initiatives and ensure that Philippine products and services are highlighted in international exhibitions and strategic retail placements,” the organization said.

Under the law, the government will also allot funding to businesses and provide them incentives, such as expedited processing of permits and certifications, over a 10-year period.

“The government is hoping that by passing RA 11981, it will improve the country’s ranking in the Atlas of Economic Complexity, which measures a nation’s capacity to make more complex products,” Philexport said.

“The Philippines currently ranks 33rd out of 133 countries in terms of the level of sophistication of export products,” it added. — Justine Irish DP Tabile

ODA projects should be targeted for procurement streamlining – think tank

DOF.GOV.PH

NATIONAL government agencies need to ensure that the preparatory stages for projects funded with official development assistance (ODA) are streamlined to avoid delays, according to a think tank attached to the House of Representatives.

“To address delays inherent in procurement processes, a comprehensive approach encompassing legal resolutions, administrative streamlining, and sound financial planning and management, among others, may be necessary,” the Congressional Policy and Budget Research Department (CPBRD) said in a report.

Delayed implementation of ODA-financed projects  increases the financial burden on the government, which depends on ODA for low-cost financing, the CPBRD said.

“In addition to the opportunity cost, the government may also incur additional commitment fees, extra interest, higher foreign exchange differentials, and even penalties due to significant project implementation delays,” it added.

According to the National Economic and Development Authority’s (NEDA) 2022 ODA portfolio report, combined disbursements for project and program loans fell to $4.82 billion from $5.52 billion in 2021.

Citing NEDA reports, the CPBRD said that procurement is one of the major concerns in implementing ODA projects. Other issues include budget flow, site conditions and availability, institutional support, and force majeure.

The active ODA portfolio at the end of 2022 consisted of 106 loans worth $30.2 billion and 320 grants amounting to $2.2 billion.

“In 2022, ODA projects executed by the Bureau of Customs (BoC), Department of Agriculture (DA), Department of Agrarian Reform (DAR), Department of Education (DepEd), Department of Energy (DoE), Department of Health (DoH), and Department of Transportation (DoTr) encountered procurement difficulties in acquiring project consultants, contractors for civil works, and suppliers of goods, which eventually resulted in implementation delays,” it said.

“While recognizing that procurement is just one facet influencing project implementation, it significantly contributes to the overall success and timeliness of government projects,” the think tank added.

The Asian Development Bank, the Philippines’ largest ODA provider, accounted for 33% of th portfolio, followed by Japan, the World Bank, China, and South Korea. — Beatriz Marie D. Cruz

EU rules favor garments from countries that source their own textiles, PHL exporters say

Image via IndustriALL Global Union/Flickr/CC BY-NC-ND 2.0

Export markets like the European Union favor garments from countries that source their own textiles internally, to comply with Rules of Origin (ROO) regulations, exporters said.

As such, the government needs to help establish a commercial-scale textile factory to help supply wearables exporters, especially those shipping to the EU, according to Robert Young, trustee for the textile, yarn, and fabric sectors of the Philippine Exporters Confederation, Inc. (Philexport).

He said such a factory would be vital if the industry is to achieve its revenue target for the year of $1 billion.

“Just one will be enough; we have to quickly start something so that these foreign investors will follow suit,” he said. “Garments, once they’re there, can be a lifesaver to any economy, just like in Bangladesh, Vietnam, India, Laos, and Cambodia.”

Mr. Young, who is also the president of the Foreign Buyers Association of the Philippines, said that Philippine garments exported to the EU are subjected to a 12% or higher duty due to the strict ROO requirements.

“They (EU) prefer that the fabric we use is sourced from the Philippines. So this is one way of saying the Philippines has to produce its own fabric,” he said.

“Which, as everybody knows, is not possible because we do not have the textile industry in the Philippines right now to be used for these products for exports, and therefore, we have to import,” he added.

He said Philippine garments that enter the EU market are duty-free, as provided by the Generalized Scheme of Preferences Plus (GSP+). However, because of the ROO regime, Philippine garments that use imported fabric do not qualify for zero duty.

“Building a pilot factory to produce our own fabric or textile is thus imperative, especially as the revival of negotiations for the country’s bilateral free trade agreement (FTA) with the EU is expected to also prescribe the same ROO on textile usage for exported garments,” he added.

Last week, the EU and the Philippines announced the resumption of negotiations for an FTA after being halted in 2017 due to concerns raised by the EU over the policies of the former Philippine government. The FTA is expected to increase bilateral trade by 6 billion euros.

The Philippines participates in the EU’s GSP+, a special incentive arrangement for low- and lower-middle-income countries. It charges zero duty on 6,274 Philippine-made products.

Mr. Young said that due to the ROO, the industry only expects to hit 80% of its $1 billion revenue target for the year.

“We underperform now. How will we perform if we are not allowed to use imported materials? There is another way to use the imported material, but we have to buy from an FTA country that has a bilateral agreement with the Philippines. We have to look for these kinds of countries,” he said.

The EU currently accounts for 10% of the country’s export receipts of garments, textiles, and apparel, while the US remains the main export destination. Other top export destinations are Australia, Canada, and Japan.

“The industry group has been requesting the government submit a derogation letter to the EU to allow the country to use imported fabric and qualify for zero duty while the pilot factory is not yet built,” Mr. Young said. — Justine Irish DP Tabile

PHL household food waste falls sharply to nearly 3 million tonnes a year — UNEP

REUTERS

PHILIPPINE households wasted nearly 3 million tonnes of food a year, down sharply from 2021 totals, the UN Environment Programme (UNEP) said in a report.

According to the UNEP’s 2024 Food Waste Index Report, Philippine household food waste amounted to 2.95 million tonnes a year, or 26 kilograms (kg) per capita.

The 2024 report finding is 68.35% lower than the 9.33 million tonnes/year reported in 2021.

The Food Waste Index measures the amount of food and its inedible parts wasted in retail, food service, and households.

The household sector worldwide accounted for 60% or 631 million tonnes of wasted food, followed by food service at 28% (or 290 million tonnes) and retail 12% (or 131 million tonnes).

“Not only is this a major development issue, but the impacts of such unnecessary waste are causing substantial costs to the climate and nature,” UNEP executive director Inger Angersen said in a statement.

Philippine per-capita household food waste is also lower than the Southeast Asian average of 70 kilograms.

The UNEP also measured the amount of food waste in three provinces within the Philippines. It reported that Cagayan De Oro had a food waste estimate of 26 kg/per capita in a year, Legazpi at 33 kg/per capita, and Ormoc at 18 kg/per capita.

The report also found out that countries with higher temperatures generate more food waste per capita in households, citing the potential for food to spoil, as well as insufficient cold storage facilities.

“The data confirms that food waste is not just a ‘rich country’ problem, with levels of household food waste differing in observed average levels for high-income, upper-middle, and lower-middle- income countries by just 7 kg per capita,” according to the report.

Household food waste in the Philippines may have declined due to improved distribution facilities like farm-to-market roads and storage, said Ateneo De Manila economics professor Leonardo A. Lanzona.

However, the continued surge food prices is attributed to middleman control of the supply chain, especially in distribution.

“This suggests that the farmers do not have much access to these facilities. The middlemen who distribute these farm products are able to utilize these facilities to their advantage,” Mr. Lanzona said in a Facebook Messenger chat.

Food inflation in February accelerated to 4.8% from 3.3% in January, mainly due to rice prices, according to the Philippine Statistics Authority.

The government should ensure that farmers gain equal access to distribution facilities to ease prices and avoid food waste, according to Mr. Lanzona.

Governments are also urged to engage in public-private partnerships to ensure all stakeholders participate in reducing wastage in the food supply chain, according to the report. — Beatriz Marie D. Cruz

DFA urged to file UN resolution vs China

COURTESY OF BFAR

By John Victor D. Ordonez, Reporter

A PHILIPPINE senator has called on the Department Foreign Affairs (DFA) to file a resolution before the United Nations (UN) General Assembly condemning China’s aggression in the South China Sea.

In a statement, Senator Ana Theresia N. Hontiveros-Baraquel said the resolution should call on China to stop “blatant violence” in Philippine waters.

“I also hope the DFA can gather our neighbors in Southeast Asia, particularly Vietnam and Malaysia, to stand with the Philippines as we face common security threats and assaults by China,” she added.

A Chinese coast guard vessel at the weekend fired a water cannon at a Philippine boat trying to bring food and other supplies to a grounded World War II-era ship at Second Thomas Shoal.

A Chinese People’s Liberation Army Navy helicopter also harassed a team of Filipino scientists at Thitu Island by hovering at a close distance to one of its sand bars, the Philippines said on Tuesday.

Manila later lodged a protest and said the boat was heavily damaged and some crew injured. It then summoned China’s envoy in Manila to protest “aggressive actions” in the South China Sea.

The Philippines will make a significant move on China’s continued aggression at sea, National Security Council (NSC) Assistant Director General Jonathan Malaya told the ABS-CBN news Channel on Wednesday.

President Ferdinand R. Marcos, Jr. is weighing the recommendations of the council at a high-level meeting at the presidential palace, he added.

Mr. Malaya also warned of a possible foreign interference during the 2025 midterm elections in the Philippines in the form of cyber-attacks.

Beijing has warned Manila to act cautiously and seek dialogue, reiterating that the resupply vessels had trespassed into Chinese territory.

“Let us show our troops that we are also taking concrete steps to fight for them in all diplomatic and political avenues available to us,” Ms. Hontiveros said.

In a separate statement, Senate Majority Floor Leader Emmanuel Joel J. Villanueva said he would sponsor a resolution before the Senate floor calling on the DFA to update the chamber on state efforts to deter Chinese aggression in the waterway.

“This latest incident, as well as all other aggressions of China towards our countrymen, is totally inhumane, illegal and barbaric,” he said. “We will file and sponsor a resolution calling on the DFA to take all necessary actions to stop these incidents.”

Tensions between the Philippines and China have worsened in the past year as China’s coast guard continues to block Philippine resupply missions to Second Thomas Shoal.

The shoal is about 200 kilometers from the Philippine island of Palawan and more than 1,000 kilometers from China’s nearest major landmass, Hainan Island.

At the Inter-Parliamentary Union General Debate on March 24, Senate President Juan Miguel F. Zubiri called on the international community to stand with the Philippines in ensuring that international law and freedom of navigation are upheld in the South China Sea.

‘GENTLEMAN’S AGREEMENT’
“Let me emphasize that the Philippines has consistently adhered to the international rules-based order, ensured freedom of navigation in the area and practiced restraint in dealing with the harassment and provocations of our neighbor in the north,” he said in a speech, a copy of which was sent to reporters on Thursday via Viber.

The Philippine Senate has approved a bill that seeks to set up maritime zones and territories in the South China Sea and another that aims to attract investments in local defense equipment manufacturing.

Also on Thursday, former presidential spokesman Herminio “Harry” L. Roque, Jr. said the government of ex-President Rodrigo R. Duterte had entered into a “gentleman’s agreement” with China not to bring construction and repair materials to BRP Sierra Madre, the dilapidated ship at Second Thomas Shoal.

In a Viber message to BusinessWorld, he said the deal involved keeping the “status quo” at the shoal, but did not entail the BRP Sierra Madre’s removal.

The Philippines intentionally grounded the ship in 1999 to assert its sovereignty.

“Since it’s not in writing and not a treaty, it may not bind the administration of President Marcos,” Mr. Roque said.

In a statement on March 23, Chinese Coast Guard spokesman Gan Yu accused the Philippines of transporting construction materials to the grounded ship.

The DFA did not immediately reply to a WhatsApp question whether resupply missions involve bringing building materials to the shoal.

A five-member United Nations-backed arbitral court in 2016 ruled China had violated Philippine sovereign rights in its exclusive economic zone by building artificial islands and failing to prevent its citizens from fishing in the zone.

“It takes a community of nations to preserve and nurture peace, thus, we appeal to the international community to support and stand firm with us in promoting freedom of navigation and adherence to an international rules-based order in the West Philippine Sea,” Mr. Zubiri said.

Seven of 10 Filipinos against ‘Cha-cha’

By Kenneth Christiane L. Basilio

Seven of 10 Filipinos are against a proposal to change the 1987 Constitution, according to the results of Pulse Asia Research, Inc.’s poll this month.

In a statement, the pollster said 74% of Filipinos did not see the need for Charter change (Cha-cha) regardless of timing.

“This opinion is echoed by small to big majorities in the various areas and classes (69% to 82% and 58% to 80%, respectively),” Pulse Asia said.

It added that 8% of Filipinos thought the Charter should be amended now, while another 8% were open to it under the next government.

Pulse Asia said 6% of Filipinos opposed constitutional amendments now but support at some other time under the present government, while 4% were undecided.

Opposition to Charter change increased by 43% from last year.

“This survey is a true eye opener, that’s why we are carefully studying this and not rushing it,” Senate President Juan Miguel F. Zubiri told reporters via Viber. “The Senate will still conduct hearings in Luzon, Visayas and Mindanao to truly see the pulse of the people.”

In the Pulse Asia poll, Filipinos were against measures lifting foreign ownership limits in the Constitution (78%), combining both chambers of Congress (74%), extending the term limits of local and national officials (73%) and shifting to a federal government system (71%).

They were also against measures allowing foreign participation in mass media (71%) and foreign ownership of schools (68%).

The pollster interviewed 1,200 adults on March 6 to 10 for the poll, which had an error margin of ±2.8 points.

The House of Representatives last week approved on final reading a proposal to lift foreign ownership limits in the 1987 Philippine Constitution to boost foreign direct investments.

With 288 congressmen voting in favor, the House agreed to liberalize the country’s public utilities, education and advertising sectors, saying these would benefit from increased foreign capital.

A similar Charter change proposal is pending at the Senate committee level.

The Pulse Asia results disagree with the results of a similar poll released last week by Tangere, which said half of Filipinos support the Charter change push.

“It is possible that others might be using different questions that may be prompting their respondents to say the expected response,” Arjan P. Aguirre, an assistant professor of political science at the Ateneo de Manila University, said in a Facebook Messenger chat.

Surveys are powerful tools that could be used to sway public opinion on a certain issue, he said. “Surveys can be politicized too.”

Hansley A. Juliano, who teaches political science at the Ateneo, said of Tangere: “Their methods are already different and likely uncritically sampled.”

“Tangere is a market research firm whose products are for sale and are part of an ecosystem of corporate marketers and public relations dipping into social science discourse,” he told BusinessWorld via Messenger chat.

Mr. Aguirre said Pulse Asia is “deemed credible by social scientists and academics” because their polls are open to public scrutiny. — with John Victor D. Ordonez

Philippine, US, Japan diplomats gearing up for April summit

PHOTO FROM PHILIPPINE COAST GUARD

Diplomats from the Philippines, United States and Japan have agreed to do advance work on potential cooperation in defense, cyber-security, critical minerals and economic security ahead of a summit at the White House in April, the Philippine Embassy in Tokyo said on Tuesday.

“The three parties agreed to lay the foundation for a successful and productive inaugural trilateral summit in Washington, DC in April 2024, which (Philippine Foreign Affairs) Undersecretary Maria Theresa P. Lazaro said would be a historic meeting,” the embassy said, citing the foreign ministers’ meeting on March 21.

US President Joseph R. Biden is set to host Japanese Prime Minister Fumio Kishida and Philippine President Ferdinand R. Marcos, Jr. at a summit in Washington on April 11 to discuss economic ties and issues in the Indo-Pacific region.

Ms. Lazaro told her foreign counterparts that their countries should have “the peace, stability and prosperity of the Indo-Pacific at the forefront.”

She had met with Japanese Senior Deputy Minister Funakoshi Takehiro and US Deputy Secretary of State Kurt Campbell in Tokyo to discuss strengthening trade and geopolitical issues as well as the safety of seafarers in the Red Sea amid attacks by Houthi rebels.

In his visit to Manila last week, US Secretary of State Antony Blinken said the three-way summit is 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,” he told a news briefing on March 19.

Ties between the Philippines and China have soured amid repeated spats over disputed features within the Philippines’ exclusive economic zone, and Manila has accused China’s coast guard of a policy of aggression. — John Victor D. Ordonez

Philippines, India partner to protect Pinoy seamen in Red Sea

REUTERS

The Philippines and India have agreed to bolster cooperation to protect Filipino seamen amid recent attacks by Houthi rebels in the Red Sea, according to the presidential palace.

In a statement, the Presidential Communications Office said President Ferdinand R. Marcos, Jr. told Indian Minister of External Affairs Subrahmanyam Jaishankar during a courtesy call on Tuesday that security concerns in the Red Sea and Gulf of Aden showed the need for both countries to bolster cooperation in maritime security.

“Maybe we can find something that we can do together to ease the situation at least a little bit until… the conflict becomes less heated,” he told the Indian minister, according to the palace.

At the same meeting, Mr. Jaishankar said Indian Prime Minister Narendra D. Modi has invited Mr. Marcos to visit India.

Mr. Marcos said he wants the visit to take place this year, coinciding with the 75th anniversary of diplomatic ties between the two countries.

The Philippine Migrant Workers Department has required commercial vessels to register a “significant event” when they sail through the Red Sea and Gulf of Aden to protect Filipino seamen following the attacks by Houthi rebels.

Two Filipino seamen aboard the civilian bulk carrier True Confidence were killed during a Houthi missile attack on March 6. Three Filipinos were hurt in the attack.

Last week, the International Bargaining Forum designated the Red Sea and Gulf of Aden as “warlike zones,” urging shipowners to avoid passing through them.

In November, Houthi rebels from Yemen seized an Israel-linked cargo ship in the Red Sea and took 17 Filipino seamen hostage.

Houthi military spokesman Yahya Saree had said the seizure was in response to “heinous acts” against Palestinians in Gaza and the West Bank.

Mr. Marcos thanked the Indian Navy officers aboard the INS Kolkata that rescued the Filipino seafarers caught in the attack.

Meanwhile, the Department of Foreign Affairs said 18 Filipino seafarers aboard an oil tanker that Tehran seized in the Gulf of Oman in January have all returned to the Philippines.

“They were repatriated in batches, including the final group of six seafarers who arrived in Manila last week,” it said in a statement. — John Victor D. Ordonez

DoJ files terrorism charges against 2 suspected NPA financiers

DOJ.GOV.PH

THE DEPARTMENT of Justice (DoJ) announced on Wednesday the filing of extortion and terrorism charges against two alleged finance officers of the Communist Party of the Philippines – New People’s Army (CPP-NPA).

Based on information from the Philippine National Police – Criminal Investigation and Detection Group (PNP-CIDG), Leonor T. Dumlao and Valentin C. Tolentino will be charged with violating the Terrorism Financing Prevention and Suppression Act, the DOJ said in a press statement.

“We will never let even an inch of terrorism’s tyranny sow fear among our citizens, much more let the cowards behind this menace run free. This is a time when we Filipinos should fortify our resolve and show our resilience in fighting this evil,” Justice Secretary Jesus Crispin C. Remulla said.

The accused are being charged as alleged members of the National Finance Commission of the CPP-NPA which extorts money from construction, telecommunications, bus, and mining companies.

Data shared by the National Bureau of Investigation (NBI) and the Intelligence Service of the Armed Forces of the Philippines (ISAFP) showed that the accused possessed a significant amount of money without a definite source of income or purpose.

Backed by search warrants, authorities were allegedly able to discover firearms, ammunition and improvised explosive devices (IEDs) in their possession.

Later, it was also discovered that they were allegedly responsible for creating the National Economic Striking Force of the CPP-NPA which serves as security of the Rebolusyonaryong Buwis sa Kaaway na Uri (RBKU), the DoJ said.

The case will be brought before the Regional Trial Court of Batangas City. – Chloe Mari A. Hufana

SC absolves PhilHealth officials from returning salaries for unlawful position

PHILSTAR FILE PHOTO

THE Supreme Court (SC) has upheld a Commission on Audit (COA) decision disallowing a position created and funded by the Philippine Health Insurance Corporation (PHIC) board, but absolved the concerned officials of liability in returning salaries paid for that new position amounting to over P1.4 million.

In the 19-page SC en banc decision penned by Associate Justice Antonio T. Kho, Jr., the PHIC petitioners were found to have “failed to comply with the requirements of creating a new position” when lawyer Valentin C. Guanio was appointed as “corporate secretary” in 2009.

It upheld COA’s ruling that the PHIC had erred in assuming that it had the autonomy and authority to create the position by virtue of the approval by its board of directors and the PhilHealth president.

“Moreover, the Court has previously held that the PHIC’s fiscal autonomy under RA 7875 is limited in nature,” the SC ruled.

“PHIC cannot find solace in the alleged approval or confirmation by then President Gloria Macapagal-Arroyo of the approval of the creation of the position of corporate secretary and the salaries and allowance for the said position,” it added.

While the SC found that COA “did not commit grave abuse of discretion in disallowing the grant of salaries, allowances, and benefits to Mr. Guanio,” it ruled that he did not have to return the amounts he received for assuming and performing the job of corporate secretary from Sept. 1, 2009 to Dec. 31, 2010 amounting to P1,445,793.69.

Also absolved from returning the amount were PhilHealth officials Lynie S. Arcenas, Willie M. Bumacod, Lilia R. Garrido, and Bibiana T. Cruz whose roles that led to the approval and certification of the amounts as payment for Mr. Guanio’s services were found by the SC to have been done in “good faith.”

To compel the return of the amount, the SC said that under the Madera Rules on Return there must be the process of “first proving bad faith, malice, or gross negligence before holding a public officer civilly liable.”

“The COA Proper has already absolved Atty. Guanio from returning the disallowed amounts that he received as a passive recipient on the basis of good faith,” it pointed out.

“Considering that PHIC no longer raised the matter of Atty. Guanio’s liability in its Petition, the COA Proper’s ruling on this matter is now considered final and immutable,” it added.

Meanwhile, the High Court stated that while the other approving and certifying officers of the PHIC are excused from returning the disallowed amount, this is without prejudice “to the finding of any administrative and/or criminal liability that any of them may have incurred under existing laws and jurisprudence.”

The SC noted that gross negligence for not complying with the requirements under the Salary Standardization Law is a ground for compelling members of the board of directors, along with other officers, to return the disallowed amount. – Chloe Mari A. Hufana

1...1,8871,8881,889...12,666Page 1,888 of 12,666
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube