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Weak evidence seen for liberal foreign ownership boosting FDI — economists

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LIFTING foreign ownership restrictions does not necessarily lead to increased foreign direct investment (FDI) or boost economic growth, according to a discussion paper published by the University of the Philippines School of Economics (UPSE).

“Our objective was to address the assertion that lifting foreign ownership restrictions in the Constitution is a necessary condition for improving economic performance and catching up with Vietnam and other ASEAN neighbors. We have discussed the available empirical evidence which in our view provides only weak support for such an assertion,” it said.

The paper was written by UPSE faculty members Toby C. Monsod, Aleli D. Kraft, Cielo D. Magno, Jan Carlo Punongbayan, Orville Jose C. Solon, Elizabeth Tan; UP Los Baños College of Public Affairs and Development faculty member Agustin L. Arcenas; and Florian Alburo and Emmanuel S. de Dios, both UPSE Professor Emeriti.

In March, a bill seeking to lift foreign ownership limits in the 1987 Philippine Constitution was approved on third and final reading by the House of Representatives.

The paper noted earlier arguments for economic charter change, such as the notion that restrictions have resulted in the Philippines lagging its neighbors in terms of FDI.

“The reasoning seems to be that since the Philippines is the only country in the region with foreign equity restrictions in its Constitution, and since it has (subsequently) been receiving the smallest portion of FDI into the ASEAN, then the former must have caused the latter — an obvious post hoc fallacy,” it said.

The restrictions alone were not the main reason behind the distribution of FDIs across the region, the paper said.

“Improvements in the business regulatory environment, combined with improvements in infrastructure, have effects on FDI that dwarf the size of those coming from any change in foreign equity restrictions.”

In 2022, the Philippines posted FDI inflows of $9.2 billion, behind Singapore ($141.2 billion), Indonesia ($22 billion), Vietnam ($17.9 billion), Malaysia ($17.1 billion) and Thailand ($9.9 billion), according to the ASEAN Investment Report.

Cambodia led the laggards at $3.6 billion. Myanmar had $3 billion, Laos $600 million, and Brunei, which had a $300-million net outflow.

“Differences in foreign equity restrictions may help explain some of the observed distribution of FDI from source countries to the ASEAN-5 since 2009, but they cannot be considered as the main explanatory factor and can hardly be called necessary,” the paper said.

“If economic charter change is premised on the necessity of lifting equity restrictions as a condition for improved economic performance, then this could be considered as evidence against it,” it added.

It also cited another paper that showed that improving perceptions of public sector corruption has a much stronger effect on FDIs than just lifting restrictions.

Meanwhile, the paper also cautioned against the assumptions that FDIs are immediately “good for national development and have a net contribution to economic welfare and efficiency.”

“Moreover, there might not be a direct causal relationship between FDI and economic growth per se. The observed relationship may be, simply, that the determinants of FDI happen to be the determinants of GDP growth,” it said.

It also noted that in some cases, FDI could be “counterproductive, even hurting resource allocation and slowing growth.” FDI may be growth-enhancing only when “certain local conditions or absorptive capacities are present.”

“The macro-empirical literature, which focuses on identifying a causal relationship between FDI flows or stocks and aggregate economic growth, finds no or only weak support for the claim that FDI per se accelerates economic growth,” the paper said.

“FDI has on average a detrimental effect on long-term income levels in developing countries, with the ‘growth-limiting effects of FDI exceed[ing] growth-enhancing effects’ in most countries, including the Philippines,” it added. — Luisa Maria Jacinta C. Jocson

Clark food hub feasibility plan due later this year

CLARK International Airport Corp. (CIAC) said it will update the feasibility studies within the year for a food trading hub in Clark City, and expects to award the project to a private-sector partner by late 2025.

The updating of (feasibility) studies will happen this year, as will coming up with the terms of reference for the public tender,” CIAC President Arrey A. Perez said at the sidelines of the Asian Development Bank (ADB) Food Security Forum late Wednesday.

CIAC is working with the ADB in reviewing the feasibility study as well as the terms of reference for the $152-million food hub.

The Clark National Food Terminal project is expected to do away with the need for wholesalers and major retailers to travel to Metro Manila to access produce, Mr. Perez said.

CIAC hopes to conduct the public tender for the food hub by next year, Mr. Perez said, with awarding possibly by the third or fourth quarter of 2025.

The proposed national food hub would be built on a 64-hectare site inside the Clark Civil Aviation Complex, Mr. Perez said last year. 

The food hub would also house cold storage facilities, as well as key services like research and quality control, warehousing, food processing, international shipping, marketing services, and trading for domestic and foreign markets.

It will also be linked to a railway connected to Subic port.

The hub will also be near the sites of cargo companies FedEx and UPS, as well as satellite agri-trading hubs in northern Luzon.

The complex’s logistics access will give producers “the ability to send their products all over the Philippines and even in international markets,” Mr. Perez said. — Beatriz Marie D. Cruz

Tourism, creative industries named priorities in e-commerce dev’t plan

THE Department of Trade and Industry (DTI) said the E-Commerce Philippines 2024-2028 Roadmap will focus on growing the e-commerce ecosystem in the tourism, creative, food and agribusiness, transportation, and logistics industries.

In a statement, the DTI said the E-Commerce Promotion Council meeting it conducted on April 8 was looking at ways to expand the international footprint of Philippine products and services.

“Representatives from both the government and private sector within the e-commerce ecosystem attended the meeting, including those from digital platforms, e-marketplaces, digital payments, and telecommunication companies,” the DTI added.

In particular, the DTI said that the roadmap will emphasize building trust between online customers and sellers.

“By achieving this, we can foster a more complex economic landscape, enhance connections, and establish stronger relationships,” Trade Secretary Alfredo E. Pascual said. 

The DTI also expects the recently signed Republic Act No. 11967, or the Internet Transactions Act of 2023, to support the roadmap’s objectives, with its draft implementing rules and regulations (IRR) already nearing completion.

Undersecretary Mary Jean T. Pacheco told reporters on Thursday that the target release of the IRR is sometime in April, pending a review of public comment.

Ms. Pacheco said questions have been raised concerning consumer-to-consumer transactions, trust marks and online business databases.

On Dec. 5, President Ferdinand R. Marcos, Jr. signed the Internet Transactions Act, which aims to protect online consumers and merchants engaged in internet transactions. Under the law, an e-commerce bureau will be created within six months. — Justine Irish D. Tabile

DBP approves P3-B loan for Mandaue City Hall

BW FILE PHOTO

THE Development Bank of the Philippines (DBP) has approved a P3-billion loan for the construction of a new Mandaue City Hall.

The building is expected to be eight storeys high and will have “green building features,” it said in a statement on Thursday.

“It will be constructed on a 4.3-hectare property in downtown Mandaue City and will house government frontline offices, satellite offices, as well as executive and legislative offices,” the DBP said.

The bank said the loan was granted under its Assistance for Economic and Social Development for Local Government Units Financing Program.

As of Jan. 31, the bank had approved P108.2 billion in loans for 378 accounts under the program. Total loan releases amounted to P33 billion.

“DBP is ready to work with more LGUs in their pursuit of various initiatives designed to accelerate infrastructure build-up and boost socio-economic development in their respective localities,” DBP President and Chief Executive Officer Michael O. de Jesus said. — Luisa Maria Jacinta C. Jocson

Education, labor policy reforms seen needed for young PHL workforce

PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE GOVERNMENT must enhance science education and review labor policies to suit the changing needs of the young workforce, analysts said.

Leonardo A. Lanzona, an economics professor at the Ateneo De Manila, said the government, alongside the private sector, needs a strategy to upskill workers.

“Improving science education in basic and tertiary levels should be a good start so that we do not simply implant the technology but also absorb and adapt it to suit our specific conditions,” he said in a Messenger chat.

John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said labor laws and policies require review to accommodate the changing preferences of young workers. 

“Gone are the days when employees are tied to their seats, depending on job/tasks. There should be more job flexibility but greater accountability,” he said in a Viber message.

Labor lawyer Jose G. Matula said young workers must also be allowed to participate in unions to address economic and social challenges.

“A multifaceted strategy that includes enhancing education and nutrition, adjusting economic policies to support workers’ well-being, and strengthening the role of unions is essential for the Philippines to fully leverage its young workforce,” Mr. Matula said via Viber.

Mr. Matula, also the president of the Federation of Free Workers, said union membership could allow the working population to negotiate higher wages and fair labor practices.

“The overall objective must be to maximize the demographic dividend, similar to what the other more developed Asian countries have done before,” Mr. Lanzona said.

The Philippines has one of the youngest working populations in the region,  the ASEAN+3 Macroeconomic Research Office (AMRO) said.

In a Regional Economic Outlook, AMRO said Cambodia, Laos, Myanmar and Indonesia have also yet to hit peak levels for its working-age populations.

The Philippines’ own working age population is expected to peak by 2051, the last of the ASEAN+3. Less than 10% of the Philippine and Lao working populations are aged 55 and up.

In the Philippines, Thailand and Vietnam, seniors active at work are mostly self-employed in agricultural and live in rural areas, AMRO said.

On the other hand, working-age populations have peaked in China, Japan, Singapore, and Malaysia.

Lower fertility rates have been observed in Asia in recent years, due to higher female labor participation, advancements in family planning and education, and better living standards.

Aging is viewed as an economic risk in most ASEAN+3 economies, citing a decline in the labor force, contracting economic output, low productivity, and reduced savings.

“Aging impacts savings at the aggregate level, which means that the real equilibrium interest rate would have to adjust in response to the changes to demand and supply for savings,” according to the report.

On inflation, having a dominantly aging population influences consumption, with older people spending more on services and younger ones spending on goods.

“Rapid aging can exacerbate fiscal vulnerabilities across the region’s economies. Moving forward, demand for healthcare services, pensions, and other elderly care facilities will increase across ASEAN+3,” according to the report.

Marcos bars state cars from using sirens, blinkers

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/RYAN BALDEMOR

PRESIDENT Ferdinand R. Marcos, Jr. has banned sirens, blinkers and other signaling devices among state vehicles, saying these are a traffic hazard.

Their use has been rampant, causing traffic disruptions and unsafe road and traffic environments, he said in Administrative Order No. 15 dated March 25.

“All government officials and personnel are hereby prohibited from utilizing sirens, blinkers and other similar gadgets that produce exceptionally loud or startling sounds,” he said.

The late President Benigno S.C. Aquino III banned sirens and traffic counterflows when he came to office in 2010, but the practice became prevalent under his successor Rodrigo R. Duterte.

Mr. Aquino was frequently late for his appointments after getting stuck in heavy traffic because he refused to use them to set a good example.

He has also traded the official black presidential limousine for a white SUV in going to his official functions.

Mr. Marcos said these gadgets may only be used “under exigent or emergency circumstances or situations or to ensure the expedient and safe passage of emergency responders.”

Exempted from the ban are vehicles of the Armed Forces of the Philippines (AFP), National Bureau of Investigation, Philippine National Police (PNP), fire trucks, hospital ambulances and other emergency vehicles.

The Transport department and other agencies will review and update policies in line with the presidential fiat. Unauthorized and improper use of signaling devices will be punished.

The order was issued as the Philippine government tries to ease traffic jams in Manila and nearby cities, as well as in other urban centers given their economic costs.

Traffic congestion in the capital region costs the Philippine economy at least P3.5 billion daily or P1.27 trillion annually, Mr. Marcos said at a traffic summit on Wednesday, citing a study by the Japan International Cooperation Agency.

He has also regulated the issuance of protocol license plates to government officials, citing increasing complaints on unauthorized use.

In Executive Order No. 56 also dated Mar. 25, Mr. Marcos cut the classes of government officials entitled to use protocol license plates to 12 from 14, amending the order issued by then President Gloria Macapagal Arroyo in 2005.

Included in the list are the President with a No. 1 plate, Vice-President (No. 2), Senate President (No. 3), Speaker (No. 4), chief justice (No. 5), Cabinet secretaries (No. 6), senators (No. 7), congressmen (No. 8) and Supreme Court justices (No. 9).

Also exempted are the presiding justice of the Court of Appeals, Court of Tax Appeals, Sandiganbayan and Solicitor General (No. 10), the chairmen of constitutional commissions and Ombudsman (No. 11) and chiefs of the Armed Forces and national police (No. 14).

Cabinet undersecretaries (No. 12) and trial court judges (No. 16) were removed from the list.

The use of protocol license plates by authorized officials will be recommended by the Land Transportation Office (LTO) and approved by the Department of Transportation, based on the list of officials with equivalent ranks.

Although the associate justices of the appellate and tax courts and anti-graft court may use protocol license plates, it should not be “construed to authorize all other officials with equivalent rank,” according to the order.

Exempted officials may be given as many as two pairs of protocol license plates, while the President, Vice-President, Senate president, Speaker and chief justice may have three pairs.

Protocol license plates may not be transferred to unauthorized people or vehicles.

The Transport department will keep a registry of protocol license plates issued to all officials or cars and enforce the rules.

Executive Secretary Lucas P. Bersamin signed the twin orders. — Kyle Aristophere T. Atienza

US to hold more patrols with allies in disputed sea

THE BRP SIERRA MADRE, a marooned transport ship which Philippine Marines live in as a military outpost, is pictured in the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea. — REUTERS

A UNITED STATES security official on Thursday said Washington is expected to hold more patrols with allies in the South China Sea.

The Philippines, US, Japan and Australia recently held joint naval drills within Manila’s exclusive economic zone (EEZ) in the waterway. China responded by holding its own naval patrols.

“This is about freedom of navigation,” White House National Security Communications Adviser John Kirby said at a briefing in Washington, based on a statement sent by the Philippine presidential palace.

“It’s about adherence to international law. It’s about proving the simple point that we and our allies will fly, sail and operate wherever international law permits us to do and it does in the South China Sea, and we did,” he added.

“You can look forward to additional opportunities for us to conduct those kinds of maritime patrols. But they are really about reconfirming a simple principle about international maritime law in international waters.”

Mr. Marcos arrived in Washington on Wednesday night for a three-day visit including his three-way summit with US President Joseph R. Biden and Japanese Prime Minister Fumio Kishida.

At the weekend, Washington, Tokyo, Canberra and Manila held joint military drills within the Philippine EEZ in the South China Sea.

China conducted surprise combat patrols on the same day, with the People’s Liberation Army (PLA) Southern Theater Command saying “all military activities that mess up the situation in the South China Sea and create hotspots are under control.”

Mr. Kirby said there’s no reason for China to “overreact” to these joint drills.

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

The shoal is 240 kilometers off the coast of the Philippine province of Palawan and is about 900 kilometers from Hainan, the nearest major Chinese landmass.

Second Thomas Shoal, Luconia Shoals, Scarborough Shoal, Vanguard Bank, and Thitu Island were the five features most frequented by patrols of the Chinese Coast Guard last year, according to the Asia Maritime Transparency Initiative.

In March, China had warned Manila to “be prepared to bear all potential consequences” if it “insists on going its own way.”

Mr. Kirby said the US has been “watching those tensions with great concern.” “We again urge the People’s Republic of China to abide by the 2016 ruling.”

He was referring to the decision of a United Nations-backed tribunal in the Hague that voided China’s claim to more than 80% of the South China Sea.

He said Mr. Biden had “made our concerns known about Chinese activities in the South China Sea” during his recent telephone call with Chinese President Xi Jinping.

Mr. Marcos and Mr. Biden were set to hold a separate meeting after the trilateral summit.

“We denounce the trilateral summit as a US-led move to bring the region closer to war in order to maintain US hegemony and thwart China’s ambitions as a rival power,” P1NAS spokesman Antonio Tinio said in a Facebook Messenger chat.

Japan under Mr. Kishida is undergoing a military buildup unseen since World War II, while the Philippines under Mr. Marcos has enabled the expansion of US military presence in the region, he added.

“We call for a truly independent foreign policy that will uphold our sovereign rights against the illegal and violent encroachments of China and repudiate the war-mongering of the US.”

Before flying to Washington, Mr. Marcos said in his departure speech that one of the main goals of the summit is “to keep the peace in the South China Sea and the freedom of navigation (there).”

He said he would reiterate “the importance of upholding the rule of law and preserving the rules-based international order in the Indo-Pacific region.” — Kyle Aristophere T. Atienza

Jeepneys to go on strike starting April 15 vs modernization

PHILIPPINE STAR/WALTER BOLLOZOS

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

PHILIPPINE jeepney drivers and operators on Thursday declared a transport strike across the country starting Monday to again oppose the government’s transport modernization program that will eventually phase out decrepit jeepneys.

“The series of hearings on the public utility vehicle modernization program in Congress has not yet concluded, and our petition against it is still pending in the Supreme Court,” PISTON Deputy Secretary-General Ruben Baylon said in a statement. “However, the regime is already rushing the takeover of livelihoods of drivers and small operators.”

President Ferdinand R. Marcos, Jr. On Wednesday said there would be no further extension of the April 30 deadline for jeepneys to consolidate into cooperatives and corporations.

The consolidation deadline lapsed on Dec. 31, 2023, but public utility vehicles (PUV) had been allowed to keep operating until Jan. 31 this year. The President extended the deadline to April 30.

Last year, Mr. Marcos had said the government would not extend its Dec. 31 deadline for consolidation. More than 1,900 unconsolidated jeepney and UV Express routes were at risk of being wiped out.

PISTON said its members would continue to ply their routes in Metro Manila despite the ban. It said their demand extends beyond another deadline extension and calls for the scrapping of the franchise consolidation requirement and the entire modernization program.

“Putting the cart before the horse, the route plan for jeepneys should precede consolidation,” transportation expert Rene S. Santiago told BusinessWorld in a Viber message. “The administration should certify as urgent the pending bill on jeepney modernization if it is serious in achieving public transportation modernization without killing livelihood.”

Mr. Santiago said the government should invest in fixed public transport infrastructure such as simple passenger waiting sheds, mode interchange and layover areas for public transport and digitalization. “Virtual consolidation is much better than corporatization or collectivization.”

Federation of Free Workers (FFW) President Jose Sonny G. Matula in a Viber message said the strike would inconvenience workers who rely on public transportation but “understands the position of the drivers at risk of losing their source of income.”

The labor group also urged the Supreme Court to consolidate petitions questioning the legality of the modernization plan.

The government has been trying to get jeepney operators to consolidate into either a cooperative or corporation since June 2023. They will eventually be required to buy expensive modern jeepneys.

Meanwhile, Senator Mary Grace N. Poe-Llamanzares urged the Land Transportation Franchising and Regulatory Board (LTFRB) to release the list of public transportation routes with consolidated PUVs before April 30, saying delays would burden commuters.

“We can’t just leave our commuters scampering for rides, especially under this extreme heat,” she said in a statement. “Were there substantial efforts to reach out to the drivers and operators to help them get into the program?”

Ms. Poe-Llamanzares said the LTFRB should be transparent on whether the dialogues with transport groups had eased concerns about loans and other financial aspects of their consolidation.

More than 300 public utility jeepney routes and 76 UV Express routes in Metro Manila alone have not been consolidated, according to the LTFRB website. About 76% of jeepneys nationwide have consolidated.

In a video message sent to reporters via Viber, Senator Maria Imelda “Imee” R. Marcos called for more consultations between the LTFRB and transport stakeholders to iron out funding issues.

“We all want new transportation vehicles, but the problem is we need to know where to get funds for these,” she said in Filipino. “There are a lot of issues, and we really need to discuss these.”

Last month, the Supreme Court dismissed a petition filed by jeepney drivers and an operators’ group against the jeepney modernization program, saying it should have filed the plea before a trial court.

LTFRB Chairman Teofilo E. Guadiz III told congressmen in January about 38,000 jeepney drivers could lose their jobs once the modernization program takes effect.

Think tank IBON Foundation said PUV fares could increase by as much as P50 in the next five years if the modernization takes effect.

Speaker sees economic, security gains in boosting PHL-US-Japan cooperation

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

THE TRILATERAL summit would result in deeper collaboration between the Philippines, the United States, and Japan, paving the way for regional stability and economic development, House Speaker Ferdinand Martin G. Romualdez said on Thursday.

“The historic meeting… marks a significant milestone in regional diplomacy as it reaffirms the Philippines’ role as an essential ally in promoting stability, security, and economic development across the Indo-Pacific,” Mr. Romualdez said in a statement.

Leaders of the three nations are expected to discuss how they can boost their economic ties as well as their maritime cooperation amid increasing tensions in the South China Sea, over which China has made an encompassing claim.

“The main intent of this trilateral agreement is for us to be able to continue to flourish, to be able to help one another, and of course to keep the peace in the South China Sea and the freedom of navigation,” President Ferdinand R. Marcos, Jr. said in his speech before departing for Washington. D.C.

The Philippines is a key player in the Indo-Pacific region given its strategic significance, Mr. Romualdez said.

The South China Sea is a conduit for global commerce as more than $3 trillion worth of trade passes through the waterbody annually.

Beijing has grown more assertive in its claim, deploying its vessels by the scores even within the Philippines’ exclusive economic zone, despite a 2016 arbitral ruling that China’s claim to almost the entirety of the South China Sea has no legal basis.

“The ability of nations to navigate freely is essential for trade, communication, and regional security,” Mr. Romualdez said.

Commenting on the trilateral meeting, Ateneo de Manila University Political Science Lecturer Hansley A. Juliano said the summit is rooted in the need to ensure that Manila will remain closely tied to the United States, representing their interests in the Indo-Pacific region.

“The big challenge here is that the US and Japan are still mostly relying on Official Development Assistance and military presence to keep the Philippines onside, especially now that there is once again a genuine external threat to their borders and interests within the Asia-Pacific,” he told BusinessWorld in a Facebook Messenger chat.

There is a possibility for the Philippines to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership due to the trilateral talks, a move seen as enhancing the “market access of Philippine goods beyond ASEAN and the Regional Comprehensive Economic Partnership,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said.

The potential economic and strategic benefits from the summit are most welcome, Filomeno S. Sta. Ana III, Action for Economic Reform coordinator, said. “But at the same time, I hope that these talks are not meant to exacerbate geopolitical tensions in the region.” — Kenneth Christiane L. Basilio

Vaping alarms health experts

ARTHURHIDDEN-FREEPIK

THE ONSET of lung injury among the Filipino youth is cause for alarm, health experts said, as vape and e-cigarettes become more freely available in the market.

The Philippines is at risk of developing a lung injury epidemic in the near future due to the increase of young Filipinos starting to develop a vaping habit, Maricar B. Limpin, a pulmonologist and tobacco cessation expert, said Thursday.

“Approximately one out of every seven Filipino youths aged 13 to 15 are now using vapes,” she said in a statement.

The vape industry is aggressively targeting Filipino youth, enticing them to use tobacco and e-cigarette products at a young age.

“This alarming trend is not a coincidence but a result of the tobacco industry’s calculated marketing tactics targeting the youth,” Ms. Limpin said. 

A 16-year-old was the Philippines’ first recorded medical case of e-cigarette or vape-associated lung injury (EVALI), a medical condition caused by the inhalation of vape products, she said in a roundtable forum discussing the effects of vaping in the country.

“With how accessible vapes are, tobacco is now an issue for children… and the growing EVALI cases are proof,” Riz Gonzales, Tobacco Control Advocacy Group of the Philippine Pediatric Society chairperson, said in a statement.

The country has recorded seven Filipinos sick with EVALI so far, with young Filipinos consisting most of the cases, she added.

“The primary problem with EVALI is that it causes people to have difficulty breathing, chronic coughs, and be easily exhausted,” Ms. Limpin said.

Repeated use of e-cigarettes and vaping products could lead to irreversible lung damage, Ms. Gonzales said.

“When you heat the e-liquid, they don’t produce just gas, rather they produce a compound of aerosol containing dangerous byproducts,” she said.

She added that vaping is not safer than smoking, contrary to how the vape products are being marketed. “Vaping is equally harmful as smoking,” she said. — Kenneth Christiane L. Basilio

Pasig court denies Quiboloy plea

PHILSTAR FILE PHOTO

A PASIG City regional trial court has ordered the arrest of wanted televangelist Apollo C. Quiboloy and his alleged accomplices for qualified human trafficking, denying his legal team’s motion to suspend legal proceedings against him.

In a three-page order dated April 11 and sent to reporters via Viber by the office of Senator Ana Theresia N. Hontiveros-Baraquel, the tribunal said there was no basis to suspend issuing an arrest warrant against them.

“This court, after personally examining the information and its supporting documents, finds probable cause for the arrest of all the accused. Let warrants of arrest be issued against them,” Rainelda H. Estacio-Montesa, acting presiding-judge of the trial court, said in the order.

A Davao City trial court issued an arrest order against Mr. Quiboloy earlier this month as it found probable cause to do so.

“These arrest warrants herald the efficiency of our criminal justice system, echoing the strong resolve of the State and our society to hold accountable individuals who transgress the Rule of Law, regardless of their social status or wealth,” Justice Secretary Jesus Crispin C. Remulla said in a statement.

He noted that the charges against Mr. Quiboloy are non-bailable under the Anti-Trafficking in Persons Act of 2003. His co-accused last week surrendered while some had posted bail.

The evangelist earlier claimed that the United States government plans on having him assassinated instead of seeking his extradition.

Mr. Quiboloy, who was former president Rodrigo R. Duterte’s spiritual adviser, had been indicted in a California district court on Nov. 10, 2021, and a federal warrant had been issued for his arrest.

The Philippine Senate earlier issued an arrest order against him for failing to attend its probe on human trafficking and sexual abuse. — John Victor D. Ordoñez

Privatizing casinos poses dilemma

KAYSHA-UNSPLASH

PRIVATIZING the operations of state-owned casinos will reduce the government’s income sourced from the gambling industry and can be seen as “counterproductive” for the Philippine Amusement and Gaming Corporation (PAGCOR), according to a congressman who has been pushing for a separate regulatory gaming commission.

Selling off state-run casino franchises owned by PAGCOR would be counterproductive as it contributes more than 50% of its revenues to government’s coffers, Cagayan de Oro Rep. Rufus B. Rodriguez told BusinessWorld in a Viber message.

However, PAGCOR is hard-pressed to sell off its casino franchises because of stiff competition with privately-owned casinos.

“Casino Filipino branches can’t compete head-on with casinos in integrated resorts,” PAGCOR Assistant Vice President for External Communications Catalino B. Alano, Jr. told BusinessWorld through Viber.

PAGCOR is seeking to transition to become a gambling regulatory body should it successfully privatize its casinos. “PAGCOR wants to become a pure regulator,” Mr. Alano said.

The state’s gambling and gaming regulatory agency is looking to completely privatize its state-run casinos by 2028 as its role as operator and regulator of the gaming industry conflicts with its mandate.

“The fact that PAGCOR is an operator and at the same time regulator of casinos… and other betting activities is irregular and considered by some as anomalous,” Mr. Rodriguez said.

Noting PAGCOR’s conflict of interest, Mr. Rodriguez filed House Bill (HB) No. 10171 to create a separate regulatory gaming commission, a move seen to boost the competitiveness of the country’s gaming industry.

“The gaming industry will be better off as there will be no more conflict of interest with PAGCOR,” he said. “Having an independent, administrative regulatory body… that will exercise supervision and control over all casinos… allows for more effective government… and monitoring of gaming operators.”

Commenting on HB No. 10171, Mr. Alano said:  “We need to see first how the bill intends to separate the regulatory and operations aspects.”

Making PAGCOR abide under the current terms of its nation-building initiatives would make state-run casinos unprofitable, he said.

The state gaming regulator allocates a part of its budget to nation-building programs such as funding Philhealth and the Philippine Sports Commission, reparations to Filipinos wrongly convicted of crimes, and disaster relief operations, he added.

“The mandated contributions to nation-building also hurt Casino Filipino’s bottom line,” he said. “It is not right for PAGCOR to subsidize casino operations using earnings from other segments like licenses and fees, electronic games.”

PAGCOR Chairman Alejandro H. Tengco said in a planning conference last year that it allotted P56.2 billion for nation-building initiatives in 2024. — Kenneth Christiane L. Basilio

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