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US urges Marcos gov’t to resolve de Lima case

PHILSTAR FILE PHOTO

By John Victor D. Ordonez and Kyle Aristophere T. Atienza, Reporters

THE US State Department on Tuesday urged the government of President Ferdinand R. Marcos, Jr. to resolve the last drug trafficking case against former Senator Leila M. de Lima, who was allowed to post bail on Monday after spending almost seven years in jail.

“The United States urges the Philippines to resolve the remaining case against her in a manner that is consistent with its international human rights obligations and commitments,” spokesman Matthew Alan Miller said in a statement.

A Philippine trial court on Monday ordered the release of Ms. de Lima, who was jailed in 2017 on drug trafficking charges that she said were fabricated to muzzle her investigation of then-President Rodrigo R. Duterte’s deadly war on drugs.

In a 69-page order Muntinlupa Judge Gener M. Gito reversed an earlier decision and granted her request for bail while being tried in a final drug case.

Ms. De Lima “should be allowed to post bail as the prosecution was not able to discharge its burden of establishing that the guilt of the said accused is strong,” the judge said in the order dated Nov. 10.

Four witnesses earlier retracted their testimonies against the former lawmaker, all of them claiming to have been coerced into giving false testimonies by the Duterte government.

Two of the three cases against Ms. De Lima have been dismissed and she had sought bail in the one pending case on health grounds.

Her first drug case was dismissed in 2021 and the Ombudsman cleared her of bribery charges for lack of evidence last year.

Another Muntinlupa trial court in May acquitted Ms. De Lima and her former aide in the second drug trafficking case. The court said the recantation by a former prison director who had testified against her created reasonable doubt.

In a post on the X social media platform late Monday, the United Nations (UN) Human Rights Office also called for Ms. de Lima’s remaining drug case to be dropped.

“We are relieved human rights defender and former Senator Leila de Lima has finally been granted bail after over six years in pre-trial detention,” the UN office said.

Amnesty International has said the government had deprived the ex-senator of her right to a fair trial through her arbitrary detention.

Last month, former police Major Rodolfo T. Magleo and former Sergeant Nonilo Arile took back their allegations against Ms. de Lima, saying they were “bothered by their conscience.” Before this, four witnesses recanted their testimonies against her.

Ms. De Lima, 64, faced various charges in 2017 within months of launching a Senate inquiry into Mr. Duterte’s anti-illegal drug campaign, in which thousands of drug users and dealers were killed in police drug raids.

She incurred Mr. Duterte’s ire when, as chairwoman of the Commission on Human Rights, she started a probe in 2009 into extrajudicial killings by the so-called Davao Death Squad in the tough-talking leader’s hometown, where he was the long-time mayor. Mr. Duterte later vowed to “destroy” her.

Mr. Duterte’s drug war is now being investigated by the International Criminal Court for possible “crimes against humanity.”

Political experts have said her detention showed how the government had abused the justice system.

The government estimates that at least 6,117 suspected drug dealers were killed in police operations. Human rights groups say as many as 30,000 suspects died.

IN-FIGHTING

Philippine civil society has stepped up efforts to hold into account perpetrators of human rights violations under the Duterte government, political analysts said.

But it’s too early to say whether Mr. Marcos has totally veered away from his predecessor’s policy direction since he has refused to cooperate with the International Criminal Court.

“This case is just one among many involving human rights defenders currently undergoing trial in our country,” Rommel Yamzon, secretary general of the Philippine Alliance for Human Rights Advocates, said in a Facebook Messenger chat.

“With over a hundred political detainees and prisoners across various facilities, there is still much work to be done to claim an improvement in the human rights situation under this present administration,” he added.

Ms. de Lima’s release comes at a time when the Philippines is boosting security ties with the US and other western democracies in a major shift from Mr. Duterte’s foreign policy.

Arjan P. Aguirre, who teaches political science at the University of the Philippines, said Ms. de Lima’s release does not mean Mr. Marcos is on a liberal path.

“This is more connected to the ongoing tensions within the coalition,” he said via Messenger chat. “The temporary release is part of the ongoing saga of this tension between the Marcos-Romualdez and Duterte-Arroyo factions.”

“After this we can expect another offensive, this time, seeing the Philippine government finally deciding to cooperate with the ICC on its case against Duterte.”

He was referring to the conflict between the camp of Speaker and presidential cousin Martin G. Romualdez and the faction of ex-President Gloria Macapagal Arroyo, who supports Mr. Duterte and his daughter Vice-President Sara Duterte-Carpio.

Mr. Marcos, 66, has veered away from some key policies of his predecessor including standing up to China.

“It is too much to expect President Marcos to support human rights or liberalism,” Maria Ela L. Atienza, who teaches political science at UP, said in a Viber message. But he appears to be trying to distinguish himself from Mr. Duterte in the areas of diplomacy and foreign policy, she said.

“While Duterte faces scrutiny by the ICC, Western countries and international human rights advocates, the Marcos government has been courting the international community and presenting itself as a good global nation,” she added.

Ms. de Lima’s eventual acquittal could bolster the Marcos image and prove that he’s different from Mr. Duterte, she said.

“This may just be a case of the Marcos camp making use of the cards available to them to gain an upper hand in the ongoing feud in the Marcos-Duterte coalition,” WR Numero Chief Executive Officer and President Cleve V. Arguelles said via Messenger chat.

In-fighting within the ruling coalition could even push Mr. Marcos to be an unusual ally in demanding accountability from the Duterte administration. “Admittedly strange, but not unprecedented.”

“After this we can expect another offensive, this time, seeing the Philippine government finally deciding to cooperate with the ICC in its case against Duterte,” he added.

NOTE: This story was corrected

Marcos told to prioritize coastline defense plan

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

PHILIPPINE President Ferdinand R. Marcos, Jr. should prioritize coastline defense projects, political analysts said, as the country focuses on external threats and banks on a civilian strategy amid rising tensions with China.

“They should have the same prioritization as flagship infrastructure projects because coastline defense protects our territorial integrity and water resources,” Terry L. Ridon, convenor of infrastructure think tank InfraWatch PH, said in a Facebook Messenger chat.

The National Economic and Development Authority Board last week approved the third phase of the Philippine Coast Guard’s (PCG) P29.3-billion maritime safety capability project.

The project involves the design, construction and delivery of five units of multi-role response vessels to the coast guard.

The Marcos government should prioritize the project since the Philippines is pursuing a civilian strategy amid tensions in the South China Sea, Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation, said in a Facebook Messenger chat.

“Coast guard diplomacy should prevail since maritime insecurity in the West Philippine Sea has a civilian tincture,” he added, referring to areas of the South China within the country’s exclusive economic zone.

The PCG was under the Department of National Defense before it was transferred to the Office of the President on March 30, 1998 through an order issued by the late President Fidel V. Ramos.

Less than a month later, Mr. Ramos transferred the coast guard to the Department of Transportation and Communications, which was split into two into separate agencies in 2016 through a 2015 law signed by the late President Benigno S.C. Aquino III.

The PCG has since been under the Transportation department.

The House of Representatives in October transferred P1.23 billion worth of confidential funds of five agencies to those involved in the protection of Philippine features in the South China Sea.

Among the agencies that will receive additional funding are the PCG, which is set to receive P200 million for its intelligence activities and ammunition, and the Transportation department, which will get 381.8 million more for the development and expansion of Pag-asa Island Airport.

“PCG’s mandate on maritime security advances the collective action of safeguarding our sea lines of communication and maintaining an intact maritime domain awareness since the country is an archipelagic state,” Mr. Cabalza said.

“The PCG offers a primordial platform for regional interoperability of coast guardians across the Indo-Pacific that includes allies and strategic partners through integrated logistics support,” he added.

The PCG’s Chinese counterpart is not civilian in nature because it is under the Central Military Commission, the highest national defense organization in China, Defense Undersecretary Ignacio Madriaga told a Senate hearing in September.

China has been blocking Philippine resupply missions to Second Thomas Shoal, which is about 200 kilometers from the Philippine island of Palawan and more than 1,000 kilometers from China’s nearest major landmass, Hainan Island. — Kyle Aristophere T. Atienza

Ill-gotten wealth lawsuit vs Marcos couple, Tan junked

SPEC. 4 DINO BARTOMUCCI

By Jomel R. Paguian

THE PHILIPPINE Supreme Court (SC) has upheld the dismissal of another ill-gotten wealth lawsuit against the late dictator Ferdinand E. Marcos, Sr., his estate and cronies including business tycoon Lucio C. Tan involving company stocks worth P41 billion.

In a 62-page decision, the tribunal said the anti-graft court Sandiganbayan correctly dismissed the case after the government failed to prove that the assets were state-owned.

by Mr. Marcos Sr. and his alleged accomplices was inadmissible.

“Even if we apply the comprehensive definition of ill-gotten wealth, the pieces of evidence relied upon by the republic failed to establish all its elements,” the High Court said in the Oct. 3 ruling written by Associate Justice Rodil V. Zalameda.

“It was not shown, through these pieces of evidence, if and how the respondents took undue advantage of their office, authority, influence, connections or relationship,” it added.

The Presidential Commission on Good Government (PCGG) filed the lawsuit in 1987, seeking to recover wealth that the late dictator, his wife Imelda and Mr. Tan allegedly obtained illegally through the liquidation of General Bank and Trust Co. and Mr. Tan’s acquisition of assets through Allied Banking Corp.

PCGG also accused the tycoon of delivering to the Marcos couple a substantial beneficial interest in shares of stocks in Asia Brewery, Inc. in exchange for concessions and privileges for his business ventures.

Mr. Tan also allegedly gave improper gifts, bribes, concessions and guaranteed dividends to the Marcos couple.

PCGG in 2020 estimated the money it sought to recover in the case at P41 billion.

President Ferdinand R. Marcos, Jr. and his sisters Imee and Irene were impleaded as representatives of their father’s estate.

The high court said the testimony of Marcos, Jr. in August 2007 and February 2018, which the state used as evidence, was hearsay.

The younger Mr. Marcos had recounted the meetings between his father and Mr. Tan regarding the alleged interest of the Marcoses in the tycoon’s businesses.

But the tribunal said he did not have personal knowledge of the supposed 60-40 business arrangement or share transfers between and among the various companies tied to the case.

“The court finds that Marcos Jr.’s testimony is hearsay and may not be used to prove the truth of the facts asserted,” the court said.

The affidavit of Rolando Gapud, the supposed financial executor of the Marcos couple, was also deemed hearsay.

“Gapud’s affidavit remains devoid of probative value for purposes of establishing the truth of Gapud’s claims on the alleged 60-40 business arrangement between Marcos and respondent Tan,” it said.

The court likewise dismissed Mr. Tan’s written disclosure in 1986 on the 60-40 business arrangement including the incorporation of holding companies and delivery of deeds of trust, which could not be admitted as evidence since Mr. Tan had not been cross-examined on its contents.

In the same ruling, the court affirmed the Sandiganbayan’s finding that the government failed to substantiate its claim that former Development Bank of the Philippines (DBP) executives Don Ferry and Cesar Zalamea had acquired ill-gotten wealth.

PCGG alleged in its lawsuit that the sale of the controlling interest in the state lender to Mr. Tan’s Sipalay Trading Corp. had caused significant financial losses to DBP because Sipalay Trading was severely undercapitalized.

“The pieces of evidence presented by the republic reveal that their complaint is still anchored on their allegation that respondents Ferry and Zalamea, as DBP officers, acted in bad faith and in conspiracy with respondents Tan, et al. in entering the Sipalay deal,” the court said.

Maharlika CEO dismisses criticisms about appointment 

Rafael D. Consing, Jr. has been named as the chief executive officer (CEO) and president of the Maharlika Investment Corp. (MIC). — COURTESY OF THE PRESIDENTIAL COMMUNICATIONS OFFICE

By Kyle Aristophere T. Atienza, Reporter 

THE NEWLY APPOINTED chief of the Philippines’ first sovereign wealth fund on Tuesday dismissed noise about his qualifications, saying lawsuits filed against him years ago had all been dismissed. 

“All cases filed against me have been dismissed,” Rafael D. Consing, Jr., chief executive officer (CEO) and president of Maharlika Investment Corp., said in a statement released by the presidential palace. 

Economists said a two-decade-old fraud lawsuit that the Supreme Court decided against him could tarnish the reputation of the sovereign wealth fund. 

“Mr. Consing will have to confront specific concerns on his fitness to lead the nation’s first sovereign wealth fund,” Terry L. Ridon, a lawyer who started InfraWatch PH, said in a Facebook Messenger chat. 

To protect the integrity of the multibillion-peso fund, he should say that the cases “clearly had no basis in both fact and law, as various court cases can be dismissed on mere procedural grounds,” he added. 

Mr. Consing in 2000 faced a lawsuit for estafa before an Imus, Cavite regional trial court. The case reached the Supreme Court, which in 2013 ruled against the former banker.

President Ferdinand R. Marcos, Jr. earlier named Mr. Consing, his adviser on investments and economic affairs, head of Maharlika Investment Corp. 

A Palace statement described Mr. Consing as “well-versed in global corporate governance and has had a successful transition from regional investment banking to senior corporate management and government advisory.” 

Under the law that created the Maharlika fund, people convicted of a crime punishable with more than six years in jail or those found administratively liable for offenses involving fraud are barred from becoming board members of the Maharlika fund.  

Also barred are people with a pending administrative, civil or criminal case involving fraud, plunder, corruption, money laundering, tax evasion, or similar crimes involving fund misuse. 

“If you were an investor, would you put your money in a place run by people who were accused of fraud?  Of course, not,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat. 

He said the President should not have been empowered to choose the composition of the Maharlika board. “Unlike the Supreme Court and the Bangko Sentral ng Pilipinas, the MIC is not part of the government.” 

Before Mr. Consing’s appointment, Mr. Marcos suspended the enforcement of the law supposedly to ensure there were enough safeguards. 

The revised implementing rules were released at the weekend, removing requirements for the holder of the post now assumed by Mr. Consing to have an advanced degree in finance, economics, business administration or a related field from a reputable university. 

Enrico P. Villanueva, a senior lecturer of money and banking at the University of the Philippines Los Baños, said it “would have been better from a corporate governance perspective if the board of directors had been selected and approved first.”

“From their ranks, a director or two can be recommended as CEO,” he said in a Facebook Messenger chat. “This way, the CEO is beholden to the board, as should be the case in corporations, and not to the President who directly appointed him.” 

Some economists have said the ruled had failed to address risks concerning the financial stability of contributing state banks — the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LANDBANK). 

Under the law that created the wealth fund, DBP and LANDBANK must contribute P25 billion and P50 billion, respectively, to the fund’s seed capital. The two state lenders remitted the funds to the Bureau of the Treasury in September. 

Marcos leaves for APEC Summit 

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE President Ferdinand R. Marcos, Jr. on Tuesday night left for the 30th Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in California, where he is expected to bring up energy and food security issues. 

“We will be engaging with the leaders of economies of the Asia-Pacific region to agree on how we can achieve food and energy security,” he said in a departure speech. 

The summit will run from Nov. 15 to 17. 

Mr. Marcos said he would push economic inclusion for small businesses, women, indigenous groups and other segments “whose economic potential remains to be unlocked through digitalization and innovation.” 

Meanwhile, Mr. Marcos said he would witness the signing of a number of government-to-government, public-private and business agreements on the sidelines of the APEC summit. 

The deals, which have been under negotiation over the past several months, would cover priority sectors such as nuclear energy, artificial intelligence, health sciences, pharmaceutical manufacturing and satellite connectivity. 

Mr. Marcos said would meet with American business leaders to promote trade and investment opportunities in the Philippines. 

“My economic team and I will be joined by a high-profile business delegation in exploring new and expanding partnerships.” — Kyle Aristophere T. Atienza 

PHL stocks drop as investors await US inflation data

BW FILE PHOTO

By Sheldeen Joy Talavera, Reporter

PHILIPPINE shares continued to decline on Tuesday as investors stayed on the sidelines, awaiting the release of the US inflation report and further dampened by slowed bank lending growth.

The benchmark Philippine Stock Exchange index (PSEi) went down by 5.26 points or 0.08% to close at 6,110.88 on Tuesday, while the broader All Shares Index shed 9.24 points or 0.28% to end at 3,286.28.

“Shares on the Philippine Stock Exchange edged lower as investors cautiously await the release of US inflation data, aware that a big miss in either direction could have major implications for the Federal Reserve’s interest rate plans over the next few months,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar likewise said in a Viber message that shares dropped as cautious investors awaited the US inflation report, as well as the meeting between US President Joseph R. Biden and Chinese President Xi Jinping.

“On the local front, the slowdown in bank lending this September somehow dampened the sentiment,” Ms. Alviar said.

Outstanding loans issued by big banks rose by 6.5% year on year to P11.17 trillion in September, based on preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Monday.

The growth in November is slower than the 7.2% figure in August and was the slowest in 21 months, or since the 4.8% recorded in December 2021. September was also the sixth straight month that loan growth eased.

Meanwhile, Mr. Arce said that investors are also expected to monitor the BSP’s policy meeting on Thursday.

“But the market has likely already priced in the BSP standing pat on rates. Still, investors are keeping an eye on that,” he said.

The central bank raised borrowing costs by 25 basis points (bps) in an off-cycle move last month, bringing the key rate to a fresh 16-year high of 6.5%. The BSP has raised policy rates by 450 bps since May 2022.

A BusinessWorld poll conducted last week showed that 15 out of 18 analysts expect the Monetary Board to keep benchmark interest rates unchanged at 6.5% during its Nov. 16 meeting.

On the other hand, three analysts see the BSP raising borrowing costs by 25 bps to 6.75%.

Almost all sectoral indices dropped on Tuesday. Financials went down by 14.35 points or 0.81% to 1,737.03; services dropped by 10.02 points or 0.67% to 1,466.85; mining and oil lost 49.52 points or 0.51% to 9,506.52; and industrials sank by 35.48 points or 0.41% to 8,572.75.

Meanwhile, property climbed by 15.08 points or 0.57% to 2,619.66, and holding firms increased by 21.43 points or 0.36% to 5,876.45.

Value turnover went up to P2.87 billion on Tuesday, with 361.55 million shares changing hands, compared to the P1.37 billion with 285.31 million issues seen on Monday.

Decliners outnumbered advancers, 104 versus 63, while 45 shares closed unchanged.

Net foreign selling went down to P107.76 million on Tuesday from P270.92 million recorded on Monday.

Peso steady ahead of US CPI

BW FILE PHOTO

THE PESO was steady against the dollar on Tuesday due to market caution ahead of the release of the US consumer inflation report for October.

The peso opened Tuesday’s session at P56.04 against the dollar. Its intraday best was at P56.02, while its weakest showing was at P56.14 versus the greenback.

Dollars exchanged rose to $1.43 billion on Tuesday from $1.18 billion on Monday.

The peso was unmoved on Tuesday as the US consumer price index (CPI) for October is expected to ease, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso closed unchanged as market participants remained cautious ahead of the US consumer inflation report,” a trader likewise said in an e-mail.

Mr. Ricafort added that the peso was unmoved amid a generally weaker dollar and easing US Treasury yields.

This was offset by higher global crude oil prices, he added.

The peso was also supported by the seasonal increase in remittances and hawkish signals from the Bangko Sentral ng Pilipinas (BSP), Mr. Ricafort said.

A BusinessWorld poll conducted last week showed that 15 out of 18 analysts expect the Monetary Board to maintain the target reverse repurchase (RRP) rate at a 16-year high of 6.5%.

Meanwhile, the three remaining economists said the Monetary Board might hike policy rates by 25 basis points (bps) to 6.75% at the Nov. 16 meeting.

The Monetary Board implemented an off-cycle 25-bp rate hike on Oct. 26, ahead of its scheduled meeting. It has raised interest rates by 450 bps since May 2022 to temper inflation.

For Wednesday, the trader said the peso could strengthen against the dollar ahead of a likely softer US producer inflation report.

Both the trader and Mr. Ricafort expect the peso to move between P55.95 and P56.15 per dollar on Wednesday. — Aaron Michael C. Sy

ECCP warns container fee hike to erode PHL competitiveness

BW FILE PHOTO

THE European Chamber of Commerce of the Philippines (ECCP) said the Philippine Ports Authority’s (PPA) proposal to increase storage charges for foreign container cargoes will erode the Philippines’ competitiveness in trade.

“We need to ensure the competitiveness of the market, so if you put taxes and more blocks, that makes trade more difficult. It’s not helping,” ECCP President Paulo Duarte told reporters on the sidelines of an ECCP event on Tuesday.

“The current macroeconomic data is very favorable to the Philippines. So that means we need to continue this path, not to create more blocks. That’s our position,” he added.

Mr. Duarte was referring to the 5.9% expansion in Philippine gross domestic product in the third quarter.

The expansion in the third quarter topped the 4.3% growth posted in the second quarter but was weaker than the 7.7% expansion a year earlier.

The Philippine Exporters Confederation, Inc. (Philexport) sent the PPA a position paper calling for a review of its plan to raise storage charges for foreign containerized cargo presented at a public consultation on Oct. 18.

In particular, the PPA had proposed a 32% increase in charges for import, export, and transshipment containers, and a 150% surcharge on storage rates for refrigerated containers.

The PPA said the fee hike will ensure optimal use of the container yard and encourage immediate withdrawal of containers to keep congestion under control.

Philexport had recommended that the planned rate hike undergo a regulatory impact assessment (RIA), a procedure authorized by the Ease of Doing Business (EoDB) Law.

“The EoDB Act seeks to provide a detailed appraisal of the potential impacts of a new regulation and ensure that this regulation will enhance stakeholders’ welfare, with the benefits exceeding the costs,” Philexport said.

Exporters also said they have yet to receive a copy of the PPA’s proposed order, adding that they were forced to rely on information gleaned from the public consultation held last month. 

Aside from the RIA, Philexport also recommended the exclusion of national and local holidays in counting the days to be charged and indexing the increase to inflation since the last fee adjustment. — Justine Irish D. Tabile

No WHO reply on PHL data lost to hacker raid

PHILSTAR

THE Department of Information and Communications Technology (DICT) said it is still working to determine the extent to which Philippine vaccination data were compromised by a hack on World Health Organization (WHO) databases.

“The WHO would have to reply to us and give us access (before we can investigate). We’re just waiting for the report and the disclosure from the WHO,” Information and Communications Technology Assistant Secretary Renato A. Paraiso told BusinessWorld by phone on Tuesday.

The WHO holds information compiled during the various countries’ coronavirus vaccination drives.

“We reached out to (the WHO) but there are no formal talks. It would really be up to the WHO to disclose whether this particular breach actually happened,” Mr. Paraiso said.

The scale of compromised data is still being determined, he said, adding that the DICT’s priority for now is to confirm the breach and whether Philippine vaccination records were compromised.

“We can confirm that there was a data dump and apparently it was ascertained that it was from the WHO, not from any other source,” he added.

Digital Pinoys national campaigner Ronald B. Gustilo said the alleged breach should serve as a warning to the government to ensure that its agencies are adequately protected from cyberattack.

“If the government fails to equip our agencies with the necessary funding to implement a strong cybersecurity infrastructure, we should expect more cyberattacks in the future,” Mr. Gustilo said. 

Various government agencies have reported cyberattacks this year alone, including the Philippine Health Insurance Corp. (PhilHealth), which was hit by Medusa ransomware which exposed more than 600 gigabytes worth of member data. — Ashley Erika O. Jose

SEC to release digital asset rules next year

By Justine Irish D. Tabile, Reporter

THE Securities and Exchange Commission (SEC) said it hopes to release its guidelines for digital assets next year, after the initial release date was pushed back due to the collapse of cryptocurrency exchange FTX.

“We had been drafting the digital asset offerings and digital asset exchange rules. Now, what hindered us from coming out with that last year was the FTX scandal,” SEC Chairman Emilio B. Aquino told reporters on Friday.

Asked about the new target date, he said: “I think it is safe to say that it will be next year because it is long due. I have always believed in digital technology and financial technology (fintech).”

He said that the FTX collapse led the SEC to review its guidelines as the regulator does not want it to happen in the Philippines.

“Nonetheless, I think it’s inevitable (for crypto to be traded in the Philippines) because as we are talking, I am sure there are offerings being done… so we might as well come out with the regulations and make sure that adequate safeguards are there.”

Mark V. Santarina, senior trader at Globalinks Securities and Stocks, Inc., said that the investor community is “excitedly” awaiting the SEC guidelines for the crypto market.

“Clear regulations not only enhance market trust, protect investors, and stimulate innovation but also position the country as a global and regional leader in crypto regulation, attracting international projects,” Mr. Santarina said in a Viber message.

“These regulations also encourage compliance, reduce conflicts, and support job creation, solidifying the Philippines’ influence in the Southeast Asian cryptocurrency scene,” he added.

He said that it is the SEC’s duty to come up with guidelines that will prevent failures like FTX.

“I am confident that the market is prepared for this development. Notably, major players such as Globe and PLDT’s fintech arm have already ventured into cryptocurrency,” he said.

“This presents increased opportunities for crypto startups, and ensures the protection of retail investors from fraud and crypto scams,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the release of the framework may lead credible and traditional global financial institutions to enter the market.

“(If they) start to offer these type of related investments, that can be a source of trust and confidence for the investing public,” Mr. Ricafort said in a Viber message.

He added that the SEC must address the regulatory mistakes and failures in recent years.

“This will ensure the utmost protection of the investing public especially against scams, fraud, and other unscrupulous practices,” he said.

Mr. Aquino said that the SEC will be looking at “best practices” of other countries, including those of ASEAN neighbors.

“This is important because they have already experienced it … so might as well be able to pick up from them and learn what to put up,” he said.

Ronald Gustilo, national campaigner of a network of digital asset advocates known as Digital Pinoys, said that the target release date for next year is “too far away.”

“The anticipated release date for next year is considered too far away for the crypto community, highlighting the immediate need for SEC intervention to ensure their protection,” Mr. Gustilo said in a Viber message.

“Given the extensive duration it took to finalize the plan, it is expected to encompass measures safeguarding consumers, including harsh penalties for unregistered firms and government authority to confiscate cryptocurrencies used in illicit activities,” he added.

He added that the regulations will help validate crypto businesses and should be designed to minimize market manipulation, fair pricing and security.

“It requires platforms to share pertinent information with investors and crypto holders, aiding them in making informed decisions regarding their digital assets,” he said.

PHL waiting until Dec. for China action on loan for PNR south long-haul railway project

FACEBOOK/PHILIPPINE RAILWAYS INSTITUTE

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES will wait until December for the Chinese government to make a decision on a P142-billion loan to finance the South Long-Haul project, the Department of Transportation said on Tuesday.

“As per the instructions of the DoF (Department of Finance), we are still to await the reply of the Chinese government until end of December,” Transportation Assistant Secretary Jorjette B. Aquino told the House flagship programs and projects committee.

The Duterte government in February 2022 awarded to China Railway Design Corp. a contract to build the Philippine National Railways (PNR) South Long-Haul project. State-owned Export-Import Bank of China however, has not confirmed whether it will approve the loan.

The PNR south-long haul project has yet to receive a loan for the civil works accompanying the project, Ms. Aquino told congressmen.

“We came as far as receiving the short list (of contractors) from the Chinese government to having it bid out and awarding the said contract to a general contractor. However, we have not received the confirmation of the loan… from the Chinese government,” she said.

If the Chinese loan does not go ahead, the department’s planning committee is considering a public-private partnership or tapping official development assistance (ODA) from other countries, Ms. Aquino added.

Transportation Secretary Jaime J. Bautista last week said that the government plans to terminate its deal with a Chinese consortium to construct the project.

The PNR south long-haul project consists of a 560-kilometer rail line that will connect Metro Manila to Southern Luzon. It has been earmarked P3 billion worth of funding in the 2024 national budget.

Rail travelers to and from Bicol are expected to experience a reduction in their trip duration to four hours from the current 12.

Mr. Bautista has said the government is considering tapping ODA from Japan, South Korea, or India to fund three major railway projects — the South Long-Haul, the Mindanao Railway, and the Subic-Clark Railway — to replace Chinese funding.

He said the Philippines could also tap the World Bank, Asian Development Bank and the Japan International Cooperation Agency for funding.

“The instructions from DoF are to look for another funding source on the Subic-Clark railway,” Ms. Aquino told BusinessWorld on the sidelines of the committee meeting. “It’s officially withdrawn as per the Nov. 8 letter by the DoF to the Chinese government.”

The Subic-Clark railway consists of a 71-kilometer rail line connecting the Port of Subic in Zambales to Clark, the site of an international airport.

DoTr seeking clearance to adjust MRT-4 loan terms

DOTR PHOTO

THE Department of Transportation (DoTr) is seeking approval from the National Economic and Development Authority (NEDA) to adjust the loan terms for the financing of Metro Rail Transit Line 4 (MRT-4).

“We will need to get maybe the approval of NEDA because there is a change in plan. There is a change in scope and change in cost,” Transportation Secretary Jaime J. Bautista told reporters on Tuesday.

The DoTr is still working on the detailed engineering design of the project, Mr. Bautista said, adding that the original plan for the MRT-4 was for a monorail with limited capacity.

“The original plan for the MRT-4 was for a monorail, but now we want to change it to a regular light rail configuration. Because the ridership there is quite huge. A monorail would have limited capacity,” he added.

The MRT-4 will cover 12.7 kilometers from Epifanio de los Santos Avenue (EDSA) Ortigas Ave. junction to Taytay, Rizal. It will have 10 stations.

The project is aimed at improving urban mobility and reducing greenhouse gas emissions. Once operational, the MRT-4 is expected to serve more than 400,000 passengers daily, the Transportation department has said.

In July, the Beijing-based Asian Infrastructure Investment Bank said the Philippines is seeking a loan of about $537.4 million for the construction of the railway. — Ashley Erika O. Jose

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