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Cordillera rebel leader captured in Ilocos Norte raid 

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BAGUIO CITY — Cordillera Peoples Democratic Front (CPDF) spokesman Simon Fiaryao Naogsan, Sr. alias “Ka Filiw” was captured after intelligence operatives from the Philippine Army’s 5th Infantry Division and policemen caught him early Monday morning during a raid at a house, he was temporarily taking refuge in Bacarra town in Ilocos Norte.

His capture, Major General Gulliver L. Señires, 5th ID commander said, “is a significant blow to the remaining communist armed movement in Northern Luzon.”

Mr. Naogsan Sr. held various key positions including Executive Committee Member of the Communist Party of the Philippines-New People’s Army Ilocos Cordillera Regional Committee (ICRC), head of Regional Propaganda, and former Secretary of the Kilusang Larangang Guerilla (KLG) for Mountain Province.

The rebel leader, a former government engineer at the Commission on Audit, faces multiple charges of murder and attempted murder filed before the Regional Trial Courts of Ifugao and Mountain Province. He carries a P2.7million reward for his capture.

His arrest, Mr. Señires added, came after the capture of three senior cadres of the ICRC of the CPP-NPA in Conner, Apayao Province, more than a week ago. This shows “the continuous dismantling of the leadership structure of the New People’s Army in the region.”

He added, “the success of this operation is a testament to our troops’ dedication and the community’s unwavering support.”  He further hinted that the information provided by residents was crucial in tracking the rebel leader and ensuring his arrest.   

According to the nongovernment human rights group Ilocos Human Rights Alliance (IHRA),  Mr. Naogsan Sr., already in his late 70s, “was in Ilocos Norte to seek medical attention.”

A team reportedly sent by IHRA to check on Mr. Naogsan Sr. confirmed “he was initially detained at the Bacarra Municipal Police Station but has since been moved to an undisclosed location.”

IHRA is raising concern about Mr. Naogsan Sr.’s “safety and well-being” and is calling “for the immediate disclosure of his location and the protection of his rights, particularly due to his medical condition.” — Artemio A. Dumlao

Ex-Maguindanao governor convicted

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AN ex-Maguindanao province governor was found guilty of graft and malversation of public funds amounting to P393 million by the Philippines’ anti-graft court.

In a 66-page decision promulgated on Oct. 18, the Sandiganbayan Third Division convicted the former Maguindanao governor of graft for disbursing P393 million worth of cash advances to bogus contractors meant for the construction of 22 farm-to-market roads throughout the province in 2009.

“[The accused] committed the offense charged when he approved the numerous disbursement vouchers, entered into MOAs (Memorandum of Agreements), signed other pertinent documents, and made payments to fictitious suppliers and contractors, making it appear the Province of Maguindanao actually implemented the subject… projects, when in fact it did not,” the ruling, penned by Associate Justice Bernelito R. Fernandez, read in part.

“The pieces of evidence clearly show [the former official] deliberately orchestrated fictitious payments to various contractors and suppliers for the infrastructure projects which were not implemented,” the ruling added.

The anti-graft court sentenced the former governor to imprisonment of up to 40 years and was ordered to pay back the P393 million to the Bureau of the Treasury. He was also perpetually disqualified from holding any public office.

State lawyers initially sought to recover P400 million from the former official, but the court ruled that only P393 million was eligible as the remaining P7 million was transferred to the Agrarian Reform department, excluding it from the audit.

The Sandiganbayan, in the same decision, acquitted a government auditor alleged to be in cahoots with the former provincial government, citing lack of evidence against him. — Kenneth Christiane L. Basilio

Flashflood displaces hundreds in upland Cotabato town

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COTABATO CITY — Some 700 villagers were forced to evacuate to high grounds after a large river in the hinterland Magpet town in Cotabato overflowed due to heavy downpour late Sunday.

The local government unit of Magpet and the office of Cotabato Gov. Emmylou Taliño-Mendoza stated in separate reports released on Monday morning that the barangay folks in farming enclaves close to the banks of the Bantac River have relocated to upland areas.

Emergency responders had been dispatched to extend essential relief support, according to Ms. Mendoza.

The flashflood ravaged some 200 hectares of corn and orchard farms, according to barangay officials and personnel of the Magpet Municipal Disaster Risk Reduction and Management Office.

Ms. Mendoza, chairperson of the Cotabato Provincial Disaster Risk Reduction and Management Council, said she has directed the personnel of their provincial agriculture office to assess the damages to crops the flashflood had caused and help affected farmers rehabilitate their flood-stricken farms. — John Felix M. Unson

Mastermind behind Marawi Catholic worship rite bombing arrested

COTABATO CITY — The police arrested the elusive mastermind of the deadly Dec. 3, 2023 bombing of a Catholic worship rite in Marawi City in Lanao del Sur province that left four worshipers dead and injured 43 others.

Arsani D. Membisa, a member of the Dawlah Islamiya terror group, was arrested in Barangay Maria Cristina in Iligan City last Wednesday, the Police Regional Office-Bangsamoro Autonomous Region (PRO-BAR) reported late Sunday.

Brig. Gen Romeo J. Macapaz, director of PRO-BAR, told reporters on Monday that Mr. Membisa, most known as “Lopitos,” was cornered in his hideout in Barangay Maria Cristina by combined agents of the Criminal and Investigation and Detection Group (CIDG) and personnel of the Lanao del Sur Provincial Police Office and the Iligan City Police Office, an operation supported by local officials privy to his presence in the area.

“Vigilant people aware of his exact location provided the information that led to his arrest,” Mr. Macapaz said.

Two cohorts of Membisa were arrested several weeks after they set off on Dec.3, 2023 a powerful improvised explosive device at the Dimaporo Gymnasium inside the campus of the Mindanao State University in Marawi City where a big group of Catholics were hearing mass, killing four worshipers and wounding 43 others.

Local executives in Lanao del Sur have confirmed that Mr. Membisa and his companions are members of the now moribund Dawlah Islamiya, which is fomenting hatred for non-Muslims and tagged in deadly bombings of buses and commercial establishments in Central Mindanao after owners had ignored extortion demands.

Lanao del Sur Gov. Mamintal A. Adiong, Jr. told reporters on Monday that they are grateful to police officials in region 10 and in the Bangsamoro Autonomous Region in Muslim Mindanao and the CIDG for having worked out the arrest of the mastermind of the deadly bombing of Catholic worshipers more than 10 months ago.

“My administration is promoting religious solidarity among Muslims and Christians in Marawi City and in all towns in Lanao del Sur. That incident, for us, was so saddening. The bombers had been arrested and soon they shall have their day in court,” Mr. Adiong said. — John Felix M. Unson

Peso weakens amid Middle East conflict

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THE PESO depreciated against the dollar on Monday amid escalating tensions in the Middle East.

The local unit closed at P57.59 per dollar on Monday, down by 7.9 centavos from its P57.511 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session stronger at P57.45 against the dollar. Its intraday best was at P57.275, while its weakest showing was its closing level of P57.59 versus the greenback.

Dollars traded went down to $1.34 billion on Monday from $1.74 billion on Friday.

The peso declined against the dollar on Monday amid the conflict in the Middle East, a trader said by phone.

The local unit weakened due to the leak of Israel’s plans for attacks on Iran and after a drone exploded near Israeli Prime Minister Benjamin Netanyahu’s private residence, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

Iran has written to the United Nations nuclear watchdog to complain about Israel’s threats against its nuclear sites, foreign ministry spokesperson Esmaeil Baghaei said on Monday at a weekly news conference, Reuters reported.

Israel has vowed to attack Iran in retaliation for a volley of Iranian missiles launched on Oct. 1, leading to widespread speculation that Iran’s nuclear sites could be among Israel’s targets.

The peso was also dragged down by a generally stronger dollar on Monday as odds of Donald J. Trump winning the US presidential election increased, the trader added.

For Tuesday, the trader sees the peso moving between P57.30 and P57.60 per dollar, while Mr. Ricafort expects it to range from P57.45 to P57.65. — A.M.C. Sy with Reuters

Shares inch lower as market waits for fresh leads

REUTERS

STOCKS ended lower on Monday as investors stayed on the sidelines while waiting for fresh catalysts such as firms’ third quarter results.

The Philippine Stock Exchange index (PSEi) inched down by 0.12% or 9.10 points to end at 7,406.63 on Monday, while the broader all shares index dropped by 0.03% or 1.23 points to close at 4,080.29.

The PSEi traded mostly sideways during the session, opening at 7,416.81, just slightly above Friday’s close of 7,415.73. It reached an intraday high of 7,428.02 and a low of 7,386.85.

“The local market closed lower this Monday. Investors took a cautious stance while waiting for new positive catalysts, primarily the corporate sector’s third quarter corporate results. Trading was anemic…,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Philippine shares had a tepid start as equities begin a new trading week, with more earnings scheduled for release in the coming days,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Value turnover went down to P3.3 billion on Monday with 638.33 million shares changing hands from the P6.36 billion with 1.44 billion issues traded on Friday.

Last week marked the start of the third-quarter corporate results season, with Bank of the Philippine Islands and Asia United Bank Corp. both reporting record profits in the period.

Meanwhile, Asia shares dipped in and out of positive territory on Monday, under pressure from weakness in Hong Kong stocks, Reuters reported.

China’s blue-chip index swung between losses and gains in early trade, before turning decisively higher by the Asian afternoon, helped by a rise in technology companies. The benchmark was 0.4% higher, while the Shanghai Composite index gained 0.31%.

That failed to excite Hong Kong markets, however, where stocks fell more than 1%, pushing MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.26%, a step back in sentiment after US stocks posted a sixth straight week of gains on Friday.

Back home, the sectoral indices were mixed. Property dropped by 0.23% or 6.94 points to 2,940.14; services declined by 0.16% or 3.74 points to 2,254.28; and holding firms inched down by 0.07% or 4.76 points to 6,204.23.

Meanwhile, mining and oil went up by 0.45% or 39.32 points to 8,682.55; financials climbed by 0.07% or 1.77 points to 2,423.37; and industrials rose by 0.03% or 3.14 points to 10,032.13.

“Century Pacific Food, Inc. was the top index gainer, climbing 1.57% to P42. Converge ICT Solutions, Inc. was the main index loser, dropping 1.99% to P16.74,” Mr. Tantiangco said.

Decliners outnumbered advancers, 113 versus 104, while 53 names were unchanged.

Net foreign buying went down to P161.44 million on Monday from P173.77 million on Friday. — R.M.D. Ochave with Reuters

RCEF needs P7B from budget after rice tariff reduction — Villar

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SENATOR Cynthia A. Villar said P7 billion needs to be added to the Department of Agriculture’s (DA) proposed budget next year in order to fund the Rice Competitiveness Enhancement Fund (RCEF).

She said RCEF will require P30 billion next year, but as it is supported mainly by tariffs on imported rice, a shortfall is looming after the reduction in tariff rates to 15% from 35%.

At a Senate finance committee hearing looking into the DA’s proposed P178.27 billion next year, Ms. Villar said the government is expected to collect P15 billion in rice import tariffs in 2025.

She said RCEF under current rules needs to disburse P10 billion, while a program providing financial assistance to farmers who own farmland measuring 2 hectares and below will take up P8 billion.

Citing the goal of providing P30 billion to RCEF, she said: “I want the DA to put (a further P7 billion) into the budget.”

Rice tariff collections amounted to about P30 billion last year, according to the Bureau of Customs.

Congress has passed a measure seeking to raise the yearly allocation of the RCEF to P30 billion from P10 billion until 2031. The President has yet to sign it into law.

The measure amends the Rice Tariffication Law of 2019 or Republic Act No. 11203. RA 11203 opened up to private entities the rice import trade, which had previously been dominated by the National Food Authority (NFA), which imported the grain via government-to-government deals.

The private traders instead had to pay a tariff of 35% on their shipments of Southeast Asian grain. The tariff has since been reduced to 15% and applies to rice from all sources.

The 2019 law also restricted the NFA to buying domestic grain to maintain an emergency reserve of rice for use during calamities.

Meanwhile, Ms. Villar said she backed a P50-million budget to establish a rubber institute next year, subject to negotiations at the plenary, and additional funding for the Bureau of Animal Industry by setting up a livestock, poultry and dairy competitiveness fund.

The Senate in August approved on final reading a bill seeking to develop a modernization plan for the livestock, poultry and dairy industries. — John Victor D. Ordoñez

BIR rules DUs, power co-op ineligible to claim input VAT

THE Bureau of Internal Revenue (BIR) said distribution utilities (DUs) and electric cooperatives (ECs) cannot claim input value-added tax (VAT) from generation and transmission charges, ruling these to be pass-through charges.

“The DUs and ECs must issue an invoice to customers, which include the sale and transmission of electricity and ancillary services, including the VAT of generation companies (GenCos) and transmission companies,” the BIR said in a circular issued recently.

“However, the DUs and ECs shall not claim any input from these. The proper claimant of input tax shall be the customers engaged in business based on the invoice to be issued by DUs/ECs.”

The amount invoiced by GenCos and transmission companies, which is included in the invoice issued by DUs and ECs, including the VAT charges, will be the basis of GenCos and transmission companies’ income tax and VAT liabilities.

Retail Electricity Suppliers (RES) also cannot claim input VAT on pass-through charges, the BIR said. The pass-through charges of RES for the sale of power are the transmission and distribution charges.

The BIR noted that a number of government charges will not be eligible for output tax and creditable withholding on VAT and income: energy tax; universal charges; benefits to host communities under EPIRA and Department of Energy Regulations No. 1-94; feed-in tariff allowance; national and local franchise taxes; and real property tax. — Beatriz Marie D. Cruz

IPOPHL readying guidelines for AI use in creative works

REUTERS

THE Intellectual Property Office of the Philippines (IPOPHL) said it is planning to release guidelines that will ensure copyright protections in the application of artificial intelligence (AI) in creative works.

At the Philippine International Copyright Summit on Monday, IPOPHL Director General Rowel S. Barba said many questions need to be cleared up regarding AI use in the creative industries.

“With questions on ethics and law, such as whether AI can be protected with copyright, whether AI works can be original as a derivative of existing copyrighted works, and whether works made with the help of AI should give credit to the software, its developers, and trainers, IPOPHL attempts for answers,” Mr. Barba said.

“We will soon release guidance on this for artists,” he added.

“We are hopeful that the Philippine government will be able to come up with one AI regulation. It appears that the different government agencies are doing their own, but hopefully we’ll be able to integrate and consolidate all of those in one guideline,” he added.

Currently, he said creative works must be the work of a natural person to be eligible for copyright protection.

“We require disclosure in our application form whether or not it was made by a machine or a person. We do not register those made by machines. And we also require disclosure how much percentage was made by AI. These have been the practice over for the past year,” he added.

He said the threshold for accepting works with AI-generated content is now being determined.

Emerson G. Cuyo, IPOPHL Bureau of Copyright and Related Rights director, said that the focus of the guidelines will be on copyright registration.

“Part of the guidelines that we will come up with is particularly focused on copyright registration, similar to what was released by the US Copyright Office sometime in 2010,” Mr. Cuyo said.

“We rely heavily on the disclosure of the applicants … what’s for sure is that works that are wholly generated by AI do not pass the requirement for copyright protection under our law. But for partially generated works, that’s where the confusion is, and that’s where guidance will come in,” he added.

He said technology might help determine which creative works are wholly or partially generated by AI.

“We have to acknowledge that the modern tools of today will be more deeply involved in the creative process in the years to come,” Mr. Barba said.

“We need to come up with solutions to live in harmony with technology and AI,” he added.

OTHER LAUNCHES
Separately, Mr. Barba said that IPOPHL will also soon launch its Copyright Registration Search and Public Domain Registry. 

“This search system will offer a user-friendly way for checking copyright registrations filed in IPOPHL. This will be updated monthly with future plans to slowly include copyright registrations filed in the National Library of the Philippines,” he said.

“In the long run, we hope to create a truly unified, national copyright registry for the Philippines,” he added.

He also said that the IPOPHL is also working on being a designated International Standard Name Identifier (ISNI)-Registration Agency.

ISNI is used globally by libraries, publishers, databases, and rights management organizations.

“We envision a globally competitive creative economy. And to realize this vision, we need to make Philippine creative works more visible to global users and investors,” he said.

“Once IPOPHL is able to issue ISNI to authors, artists, and organizations, they will be more easily found, and their works can be more easily tracked, possibly no less by investors who could provide additional income streams to our artists and expand the creative endeavors of creative companies,” he added. — Justine Irish D. Tabile

BoI sees room to grow for energy efficiency, conservation investments in Mindanao

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THE Board of Investments (BoI) said that it had approved P15.23 billion worth of projects in Mindanao as of September, indicating the need to invite companies in the region to apply for Energy Efficiency and Conservation (EE&C) incentives.

In a statement on Monday, the BoI said it recently held a roadshow in Davao to invite the 26 participants to maximize the benefits of the EE&C Act.

“Efforts to gradually shift to renewable energy should be anchored in a strong partnership between the government, which lays down the policies, and the private sector, which drives economic growth,” BoI Davao Supervising Investments Specialist Emerson Gerongay said.

The EE&C Act authorizes incentives for qualified projects that help businesses lower energy costs, the BoI said.

Mr. Gerongay said that the Philippines is making strides in attracting investment for clean and green projects.

In the nine months to September, the BoI approved P1.35 trillion worth of investments, with renewable energy projects accounting for P1.29 trillion.

“In Mindanao, BoI-approved investments reached P15.23 billion during the same timeframe,” the BoI said.

Under the EE&C Act, self-financed EE&C projects can enjoy income tax holidays and duty exemptions on capital equipment and raw materials.

“As part of the support of the government, we are transitioning to a clean and green economy. This is how we plan to help you in modernizing your current operations by shifting from conventional power source to RE source,” BoI Director Raquel B. Echague said. — Justine Irish D. Tabile

New climate finance goals need fast-tracking — DoF

REUTERS

THE Department of Finance (DoF) said it declared its support for approving before next year the New Collective Quantified Goal on Climate Finance (NCQG), to increase the access to financing of vulnerable countries.

A key part of the Paris Agreement, the NCQG seeks to create a new financing framework that will provide developing countries a “scaled up financing goal” to support their financing needs against climate change.

“We must realize the urgency and value of the NCQG as a framework that will provide much-needed financial support and mobilization to address the evolving needs and priorities of developing countries,” DoF Chief of Staff and Undersecretary Maria Luwalhati C. Dorotan-Tiuseco said during the 2024 High-Level Ministerial Dialogue on the NCQG on Climate Finance on Oct. 9 in Baku, Azerbaijan.

“It is our responsibility to come together and create an NCQG text that genuinely reflects these needs.”

The NCQG calls for a “level of commitment that matches the scale of our ambition, while remaining sensitive to common but differentiated responsibilities, respective capabilities, and national circumstances,” Ms. Tiuseco said.

The high-level meeting was a preliminary event for the 2024 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC (COP29) on Nov. 11-22, also in Baku.

Ms. Tiuseco also cited the need for simplified access to finance, including through multilateral development banks, multilateral funds, and bilateral channels.

She also noted the need to adopt a five-year time frame with a mandatory periodic assessment and review beginning in the third year to reflect country-driven needs assessment.

“We are firm in our stance that climate finance should be new and additional to any ODA that may be provided,” Ms. Tiuseco said. — Beatriz Marie D. Cruz

BIR flags over 400 illegal vape sellers

PHILIPPINE STAR/EDD GUMBAN

THE Bureau of Internal Revenue (BIR) said it identified 408 sellers of illicit vape products, which are either unregistered or whose products do not carry the appropriate revenue stamps.

The BIR carried out nationwide raids on the vape sellers on Oct. 16, BIR Commissioner Romeo D. Lumagui, Jr. said in a statement. It has yet to value the illegal vape products it found.

The BIR found illicit sellers in Manila, San Juan, Makati, Pasay, Las Piñas, and Quezon City.

Outside Metro Manila, illicit retailers and resellers were found in Ilocos Sur, Pangasinan, Benguet, Isabela, Laguna, La Union, Bulacan, Albay, Iloilo, Cebu, Bohol, Leyte, Bukidnon, Misamis Oriental, Surigao del Norte, Butuan, Agusan del Sur, South Cotabato, Davao, Negros Occidental, and Negros Oriental.

Beginning this month, the bureau will be conducting regular raids on illegal vape sellers.

“I have ordered weekly raids against illicit vape retailers, wherever they may be found,” Mr. Lumagui said.

Under Republic Act 11900 or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, “The BIR shall order the immediate recall, ban or seizure from public sale or distribution of vaporized nicotine and non-nicotine products or novel tobacco products not registered with the BIR, including those sold online.” 

Beginning June 1, the BIR required all vape manufacturers and sellers to affix internal revenue stamps on their products to indicate tax compliance.

In the first half of the year, the BIR estimated foregone revenue of around P7.2 billion from seized vape and tobacco products. — Beatriz Marie D. Cruz