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Peso climbs to three-month high

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THE PESO climbed to a three-month high against the dollar on Tuesday on expectations of softer US consumer price index (CPI) data for February.

The local unit closed at P55.31 per dollar on Tuesday, strengthening by six centavos from its P55.37 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s strongest close in more than three months or since its P55.30-per-dollar finish on Dec. 7.

The peso opened Tuesday’s session weaker at P55.42 against the dollar. Its worst showing was at P55.51, while its intraday best was at P55.30 versus the greenback.

Dollars exchanged rose to $1.13 billion on Tuesday from $1.09 billion on Monday.

“The peso strengthened ahead of a likely softer US consumer inflation report overnight,” a trader said in an e-mail.

The dollar was also mostly weaker ahead of the US CPI release as it could affect the US Federal Reserve’s next move, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between P55.15 and P55.40 per dollar, while Mr. Ricafort sees it ranging from P55.25 to P55.45. — AMCS

Philippines says it spotted 50 Chinese ships within EEZ in South China Sea

SCREENGRAB FROM PHILIPPINE COAST GUARD FACEBOOK PAGE

THE PHILIPPINE military on Tuesday said it had spotted about 50 Chinese vessels within the country’s exclusive economic zone (EEZ) in the South China Sea, many of them surrounding the disputed Scarborough Shoal.

Five Coast Guard ships, 18 maritime militia vessels and 10 fishing boats from China were seen near the shoal, which is a traditional fishing ground, AFP spokesperson Francel Margareth Padilla told a news briefing, citing monitoring data as of 4 p.m. on March 11.

Six Chinese fishing vessels and one coast guard ship were spotted at Second Thomas Shoal, and one coast guard ship and six fishing boats near Thitu Island, she added.

Ms. Padilla said the Armed Forces of the Philippines (AFP) would continue its rotation and resupply mission to all features in the western section of the country’s exclusive economic zone in the South China Sea.
After the rotation and resupply mission at Patag and Lawak stations on Feb. 18 to 21, the military’s Western Command [conducted] another mission at Rizal Reef and Likas station on March 3 to 6, she said.
“The next rotation and resupply at Pag-asa (Thitu), Kota, Panatag and Parola will be conducted in the first week of April,” she added.

The Philippine vessels were part of a regular mission to deliver food and other supplies to Filipino troops stationed at a grounded World War II-era ship at Second Thomas Shoal.

China, which claims more than 80% of the South China Sea, has ignored a 2016 ruling by a United Nations-backed tribunal that voided the claim for being illegal.

Last week, two Chinese Coast Guard and four maritime militia vessels harassed and blocked Philippine Coast Guard (PCG) vessel BRP Malabrigo while it was en route to Scarborough Shoal, Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, said in an X post.

The Chinese ships “repeatedly employed dangerous swarming and bow-crossing maneuvers over 21 hours starting after midnight 7 March,” he added.

At least four Philippine Navy officers were injured early this month after China’s coast guard fired water cannons at one of two wooden civilian boats used in a resupply mission for Filipino troops at a remote outpost in the South China Sea, according to the Philippine National Security Council.

The water cannons from two Chinese Coast Guard vessels shattered the windshield of Unaizah Mae 4, causing minor injuries to at least four personnel on board, it said.

It also accused a Chinese coast guard vessel of executing “dangerous maneuvers” against the escort ship, leading to a minor collision that resulted in “superficial structural damage” to the hull of the Philippine Coast Guard vessel.

The incident happened while President Ferdinand R. Marcos, Jr. was in Melbourne for a three-day summit between Australia and Southeast Asian nations. On March 4, he vowed to push back if China continues to violate Philippine sovereignty and sea rights.

Meanwhile, the Philippine Navy said it is set to take delivery of two guided missile corvettes being built at the HD Hyundai Heavy Industries shipyard in South Korea.

“The first corvette will be coming in during the second semester of next year,” navy spokesman John Percie Alcos told the same briefing.

They have been training officers who will man the new ship, he said.

Mr. Marcos told Australia’s Parliament on Feb. 29 he would not allow any foreign power to take “one square inch” of the country’s territory, and that Manila was firm in defending its sovereignty.

“I will not allow any attempt by any foreign power to take even one square inch of our sovereign territory,” he said in a speech.

Australia and the Philippines started their first joint sea and air patrols in the South China Sea in November, aimed at countering an increasingly assertive China, which claims the entire sea as its own.

The South China Sea is a conduit for more than $3 trillion (P168.5 trillion) worth of ship-borne commerce each year and is a major source of tension between the Philippines and China. — Kyle Aristophere T. Atienza

Manila: China proposals to ease sea tensions contrary to its interests

AN AERIAL VIEW shows the BRP Sierra Madre on the contested Second Thomas Shoal, locally known as Ayungin, in the South China Sea, March 9, 2023. — REUTERS

THE PHILIPPINES’ Department of Foreign Affairs (DFA) on Tuesday said it had received proposals from China to ease tensions in the South China, but these went against the Southeast Asian nation’s interests.

“While a few proposals were deemed somewhat workable, many of the remaining Chinese proposals were determined, after careful study, scrutiny and deliberation within the Philippine government, to be contrary to our national interests,” it said in a statement. “In no way did the Philippine government ignore China’s proposals.”

The DFA was responding to a Manila Times news report quoting an unnamed Chinese official who had claimed China’s proposals to settle tensions in the waterway were “met with inaction” by Manila.

China had presented 11 concept papers on possible solutions to ease tensions in the South China Sea, which the Philippine government allegedly ignored, according to the story published on Monday.

The DFA said the agreements to settle differences in the South China Sea must abide by the Philippine Constitution, the United Nations Convention on the Law of the Sea and a 2016 arbitral award voiding China’s claims on the waterway.

The Philippine government had also presented counterproposals, which China rejected, the DFA said.

China claims more than 80% of the South China Sea based on a 1940s map, which a United Nations-backed arbitration court voided in 2016.

The Philippines has been unable to enforce the ruling and has since filed hundreds of protests over what it calls encroachment and harassment by China’s coast guard and its vast fishing fleet.

Tensions in the South China Sea have intensified after incidents of the Chinese coast guard firing water cannons at Philippine vessels and blocking resupply missions to a dilapidated World War II-era ship at Second Thomas Shoal.

Chinese President Xi Jinping last week called on his country’s armed forces to coordinate preparations for military conflicts at sea and help in the development of the maritime economy.

In December, the Philippine Senate passed on third and final reading a bill that seeks to boost the country’s defense program through investments in local defense equipment manufacturing.

“Instead of considering the Philippine counterproposals, however, the Chinese side presented its own counterproposals, which again did not reflect our interests, especially on issues such as the South China Sea,” the DFA said.

Meanwhile, China said any plan for resource exploitation in the South China Sea should not involve countries outside the region, as the Philippines counts on the United States and its allies for gas and oil exploration.

“The exploration of resources in the South China Sea should not harm China’s territorial sovereignty and maritime rights and interests and no one shall draw forces outside the region into the issues,” the Chinese Foreign Ministry spokesman, Wang Wenbin, told a news briefing in Beijing on Monday, based on a transcript.

Philippine Ambassador to the US Jose Manuel “Babe” D. Romualdez earlier said Manila was “working closely with our allies, not only the US but also Japan and Australia” to exploit gas and oil in the South China Sea.

It’s part of a broader plan to reduce energy costs under the government of President Ferdinand R. Marcos, Jr., who has veered away from his predecessor’s pivot to China, Bloomberg News reported.

“Relevant countries should not undermine China’s territorial sovereignty and maritime rights and interests in their effort of exploring resources in the South China Sea,” Mr. Wang said. “Drawing forces outside the region into the South China Sea issue will only complicate the situation.”

Mr. Romualdez, a cousin of Mr. Marcos, earlier said the Philippine government might invite US companies to invest in the exploration. It is also in talks with other claimants like Vietnam, he said.

The Philippine Supreme Court in January last year voided a 2005 state oil exploration deal with China and Vietnam.

The agreement between the state oil agencies of Vietnam, China and the Philippines violated the 1987 Constitution, which lawmakers now seek to amend.

The Philippines’ only indigenous source of natural gas, the Malampaya gas field, is expected to run dry in 2027, a crisis that experts said could result in 12 to 15 hours of daily brownouts across the main island of Luzon.

Reed Bank, which falls within the Philippines’ exclusive economic zone, could hold up to 55.1 trillion cubic feet of natural gas and up to 5.4 billion barrels of oil, according to the United States Energy Information Administration. — John Victor D. Ordoñez and Kyle Aristophere T. Atienza

Agencies told to limit seaman deployment to hotspots

A container ship crosses the Gulf of Suez towards the Red Sea before entering the Suez Canal, April 24, 2017. — REUTERS

THE PHILIPPINE government on Tuesday said it would limit the deployment of Filipino seamen to vessels that sail through known global hotspots after a recent missile attack by Iran-backed rebels on a cargo ship in the Gulf of Aden.

“Manning agencies are following the directive of the government to limit the presence of Filipino seafarers or [give] them the option to refuse,” Foreign Affairs Undersecretary Eduardo A. de Vega told a news briefing at the presidential palace.

Houthi rebels attacked the Barbados-flagged bulk carrier M/V True Confidence on March 6 while in the Gulf of Aden, killing two Filipino crew members whose bodies were yet to be recovered.

“Houthi attacks occur practically daily on ships traversing the area,” Mr. De Vega said. “And this is the first time we’ve had Filipino injuries or casualties.”

He said the Department of Migrant Workers in mid-February updated its list of “warlike and high-risk areas” to include the Yemeni coast.

“Under such classification, in a war-like operation area, the seafarers have to be given the right to refuse sailing, with repatriation at company cost and compensation equal to two months of wages,” he added.

“If they continue to go, they have to have a bonus equivalent to their basic wage or double compensation, obviously, also for death and disability benefits.”

Other high-risk areas include the Gulf of Guinea near Liberia-Ivory Coast and the Sea of Azov and Kerch Strait in Eastern Europe.

The Northern Black Sea Region, all ports in Ukraine, and the Black Sea are still considered high-risk areas after Russia’s invasion of Ukraine.

Mr. De Vega said they expect more Filipino sailors to decline opportunities in areas where Houthi attacks have been persistent.

“The statistics show they are declining because there are few Filipino seafarers now aboard ships plying the route,” he said. 

Each of the 13 Filipino crew members who survived the missile attack on Mar. 6, including three who were still in hospital, were given P55,000 in cash aid, Mr. De Vega said.

Meanwhile, the Israel Embassy in Manila offered its condolences to the families of the Filipino seamen who died and the government of President Ferdinand R. Marcos, Jr.

“During these trying times, we express our solidarity with the Philippines and join in condemning terrorism,” it said in an e-mailed statement.

“The attacks by the Houthis on vessels in the Red Sea and the Indian Ocean violate the freedom of navigation, threaten the welfare of seafarers and impact the shipment sector, supply chains and prices of oil,” it added.

The Houthis, which are backed by the Iranian government, have been attacking cargo ships in the Red Sea and Gulf of Aden since November in response to what it calls “heinous acts” by Israel in Gaza. — Kyle Aristophere T. Atienza

House panel OK’s bill boosting social enterprises

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A PANEL of the House of Representatives approved on Tuesday a substitute bill consolidating measures to promote the growth of social enterprises as a means to alleviate poverty in the country.

In approving the unnumbered substitute bill, the House Committee on Ways and Means intends to enhance social enterprises’ poverty-alleviating capabilities by offering a tax deduction.

“The bill aims to provide the framework for the implementation of national poverty reduction through social entrepreneurship, integrating its programs into the overall poverty reduction strategy of the government,” Bukidnon Rep. Jose Manuel F. Alba told the committee.

The panel recommended granting social enterprises an additional deduction equal to 25% of total salaries and wages paid to employees.

Social enterprises in this context refer to organizations that employ manpower from the marginalized sectors in their business operations. Under the bill, social enterprises are mandated to invest back “at least 60% of net revenues into sustaining their social missions” to qualify as such an enterprise.

“This is not an ordinary business, it is a business that supports a particular social mission — which is to address poverty in our country,” said Mr. Alba.

He said the measure also includes hybrid financing models as well as opportunities that could help stimulate the development of social enterprises by “mandating the government to allot resources” to promote its growth.

The panel noted in their discussion the need for the government to support the capacity-building programs of social enterprises so that they may further generate jobs which also aid in reducing poverty.

“Social enterprises will be treated with a more special concern because we see the importance of multiplier effect that social enterprises can provide to micro, small, and medium enterprises (MSMEs) in terms of job generation and poverty alleviation,” Department of Trade and Industry Liaison Mikaela Sulit told the panel. — Kenneth Christiane L. Basilio

Agri-machinery plant under way

INITIAL work to build an agriculture machinery assembly plant that aims to boost farming in the Philippines has begun through a P1.6-billion partnership between the Department of Agriculture (DA) and the Korea Agricultural Machinery Industry Cooperative (KAMICO).

In a statement on Tuesday, the DA said that the parties have accomplished the prerequisites needed to establish the center, including site visits in Cabanatuan City in Nueva Ecija and Tiaong in Quezon and meetings with concerned local government units for terms and conditions.

“This is the result of the memorandum of understanding (MOU) signed last year between DA and KAMICO that aims to set up the Korea Agricultural Machinery Manufacturing Cluster in the country,” said Agriculture Secretary Francisco P. Tiu Laurel, Jr.

The initial project investment of $30 million (P1.6 billion) has three phases, with the last phase involving technology transfer, cooperative production, and domestic supply and export promotion. 

“Ultimately, the project aims to set the standard for agricultural machinery and equipment that will be made available to Filipino farmers, and subsequently exported to other agricultural countries,” the department said.

The project, besides boosting local production, is also aimed at boosting employment and promoting specialization among Filipino technicians.

Mr. Tiu Laurel said that President Ferdinand R. Marcos, Jr., who witnessed the MOU signing last year, acknowledged that the partnership between the Philippine government and KAMICO would boost local food production.

“(Mr. Marcos) also recognized the importance of mechanization, stressing that it would result in better yield, lower production cost, and more competitive Filipino farmers,” he added.

For its part, the DA committed to extend assistance to KAMICO through its relevant agencies to help with the project’s realization.

KAMICO, which has 700 company members to date, aims to boost production and income in developing countries through agricultural machinery. — Justine Irish D. Tabile

DBM warns against ‘fund fixers’

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THE DEPARTMENT of Budget and Management (DBM) warned against individuals or groups who claim to have the power to influence government fund releases.

“In view of the numerous reports that certain individuals/organized groups have been claiming to have the capacity or influence to facilitate the release of funds, all government entities, from the executive, legislative and judicial branches, including local government units (LGUs), are again reminded that upon submission of requests for fund releases to the DBM, the same are acted upon consistent with pertinent laws and established procedures and budgeting rules and regulations,” the Budget Secretary Amenah F. Pangandaman said in a circular dated March 7.

The DBM said it does not authorize any person or group to facilitate or expedite fund releases. It also does not solicit requests for any fund release.

It also urged government agencies to regularly advise their respective clients or stakeholders to rely only on official DBM channels.

“We strongly advise all national government agencies, LGUs, and all others concerned to refrain from entertaining or transacting with private individuals/organized groups of dubious character and be cautious of individuals introducing themselves as DBM employees,” it added.

The department also said it directly deals with agency heads and local chief executives or their authorized representatives, who must be organic personnel of the government entity concerned.

The DBM is in charge of releasing funds under the National Government’s annual budget to its respective agencies.

Last year the department issued a similar warning against individuals or groups claiming to effect fund releases. — Beatriz Marie D. Cruz

Senate OK’s Negros Island region

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THE PHILIPPINE Senate on Tuesday approved on third and final reading a bill seeking to establish the Negros Island to streamline the delivery of basic services to the island.

Twenty-two senators unanimously approved Senate Bill No. 2507, which also aims to boost Negros Island’s local government autonomy.

Under the bill, the island will be composed of the provinces of Negros Occidental, Negros Oriental and Siquijor, their municipalities and cities, and Bacolod City.

“The creation of the Negros Island Region (NIR) represents a monumental step for our communities encompassing both governance and socioeconomic development,” Senator Francis N. Tolentino told the Senate floor on Tuesday.

Senate President Juan Miguel F. Zubiri said the measure would make it easier for residents to apply for identification cards, certificates or permits.

He said Negros Occidental residents today have to travel to Iloilo to apply for these, while those from Negros Oriental have to go to Cebu for the same purpose. 

“At its core, the NIR aims to streamline the delivery of essential government services fostering a more efficient and responsive administration,” Mr. Tolentino said. — John Victor D. Ordoñez

Moro fronts to secure plebiscite

COTABATO CITY — Local government units and leaders of two Moro fronts that have separate peace accords with Malacañang have given their assurance to help the police and military secure the April 13, 2024 plebiscite for the creation of eight new Bangsamoro municipalities in Cotabato province.

The chairperson of the Cotabato Provincial Peace and Order Council, Gov. Emmylou Taliño Mendoza, Bangsamoro Regional Labor Minister Muslimin G. Sema, who is chairman of the Moro National Liberation Front, and leaders of the Moro Islamic Liberation Front in the province separately announced that they shall together help the Commission on Elections facilitate the plebiscite.

The eight towns being proposed shall be named Pahamudin, Kadayangan, Nabalawag, Old Kaabacan, Kapalawan, Malidegao, Tugunan and Ligawasan.

The democratic exercise is a requisite for the setting up of the eight towns that shall cover 63 Bangsamoro barangays in different towns in Cotabato, which is under Region 12, as proposed by the 80-seat regional parliament of the Bangsamoro Autonomous Region in Muslim Mindanao.

“All MNLF field commanders in these Bangsamoro barangays, also known as the Bangsamoro SGA (Special Geographic Area) had been directed to support the April 13 plebiscite security efforts of the police and the Philippine Army,” Mr. Sema, chairman of the MNLF’s central committee, said. — John Felix M. Unson

Jailed filmmaker’s group freed

Filmmaker Jade C. Castro (left), along with his colleagues (from right) Dominic Ramos and Noel Mariano, faced the public on Tuesday in Cubao, Quezon City, following their release from detention. — PHILIPPINE STAR/MICHAEL VARCAS

THE REGIONAL Trial Court (RTC) Branch 96 in Catanuan, Quezon ordered the release of a filmmaker and his friends after granting their motion to quash arson charges over the burning of a minibus last Jan. 31. Film director Jade Francis C. Castro and his three friends were released on Monday.

In a 16-page decision, Judge Julius Francis R. Galvez ruled that “police personnel of the MPS Catanauan, Quezon did not validly arrest the four accused thru a hot pursuit operation pursuant to Section 5 (b), Rule 113 of the Revised Rules of Criminal Procedure.”

In quashing the Information brought before the court, the judge absolved Mr. Castro and his companions Ernesto T. Orcine, Noel C. Mariano, and Dominic V. Ramos, citing that their arresting officers had no “personal knowledge of the facts indicating that the persons to be arrested have committed the crime charged.” — Chloe Mari A. Hufana

House will not allow political amendments in ‘Cha-cha’

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THE SPONSOR of economic Charter change (“Cha-cha”) in the House of Representatives told the plenary on Tuesday that no political amendments will be sneaked into the measure aimed only at opening the economy to foreign investors to generate up to 130,000 jobs annually and boost energy production, among other public service improvements.

Cagayan de Oro Rep. Rufus B. Rodriguez, who sponsored the Resolution of Both Houses (RBH) No. 7, said the proposed amendments to the Charter will only contain economic provisions and that no other articles of the 1987 Constitution will not be changed.

“The four corners of our resolution in the Committee Report 985 is definite, specific, and clear,” Mr. Rodriguez said. “Only three economic amendments, it will never happen that there will be any political amendments (inserted to RBH No. 7).”

He added that the phrase “unless otherwise stated by law” will only be added to Articles 12, 14, and 16 of the Charter — sections that limit the participation of foreign investors in public utilities, educational institutions, and the advertising industry.

The addition of the said phrase to Articles 12, 14, and 16 will allow Congress to have the needed “flexibility unlike what we have in the Constitution right now.”

Mr. Rodriguez, who also chairs the House constitutional amendments, said opening the economy to foreign investors will allow the generation of 40,000 to 130,000 jobs annually, citing a report from the National Economic Development Authority.

If passed by both chambers of Congress, Mr. Rodriguez also sees it possible that the entry of foreign investment “will be able to lower electricity costs.”

He also said that liberalizing the domestic economy does not necessarily mean that foreign investors will now have total control of the industries they are involved in.

“Congress will now determine what will be the percentages in the opening up of our public utilities,” he said. “However, this will be lodged in Congress to decide what the safeguards are, what the investment ratio, and standards to protect national security [are].”

Mr. Rodgriguez also asserted that there will be no bicameral conference if economic “Cha-cha” by both chambers of Congress generates “¾ votes in the Senate and ¾ votes in the House.”

“If the senate secures ¾ vote approving RBH No. 6 in the Senate, and we at the House of Representatives will approve with ¾ vote RBH No. 7, then there is a meeting of the minds of the two Chambers,” he said. “Therefore, this will be transmitted to the Comelec for a plebiscite to be conducted (within) 60 days upon commission (extending) up to 90 days.”

The government is expected to spend around P12 to P28 billion to hold the “Cha-cha” plebiscite. — Kenneth Christiane L. Basilio

Senate panel issues show cause order vs Quiboloy

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A SENATE panel has issued a show cause order against televangelist Apollo C. Quiboloy to explain why he should not be arrested for consistently failing to appear before its probe into alleged sex trafficking and rape accusations against him.

“You (Mr. Quiboloy) are hereby ordered to show cause within a non-extendible period of 48 hours of this order why you should not be ordered arrested and detained at the Office of the Sergeant-At-Arms,” read the order signed on Tuesday by the Senate Committee of Women, Children, Family Relations and Gender Equality chairperson Senator Ana Theresia N. Hontiveros-Baraquel and approved by Senate President Juan Miguel F. Zubiri.

Mr. Zubiri had sent a copy of the order to media via Viber.

Ms. Hontiveros-Baraquel said the Kingdom of Jesus Christ (KOJC) Church founder failed to attend the Jan.23, Feb. 19 and March 5 hearings of the panel. She earlier cited him in contempt for failing to appear before senators.

In an audio recording posted on Facebook on Monday, Mr. Quiboloy gave 17 conditions before he would attend the Senate inquiry, which included requiring witnesses to unmask and show their faces, reveal their real names and valid IDs, and for him to cross-examine all witnesses including Ms. Hontiveros-Baraquel.

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

Meanwhile, in the House of Representatives, the Legislative Franchises Committee approved a measure seeking to revoke the broadcasting franchise of the televangelist’s media outfit, Sonshine Media Network International (SMNI), which is operated by Swara Sug Media Corporation.

According to House Bill No. 9710, SMNI violated Sections 4, 10, 11, and 12 of the franchise which are related to ethical news coverage; the sale of the company to other entities without informing Congress; failure to offer at least 30% of its stocks to Filipinos; and failure to submit an annual operations report before the government, respectively.

The same committee also cited Mr. Quiboloy in contempt as he repeatedly snubbed congressional summons to attend House panel hearings on alleged violations of his media outfit.

Deputy Speaker and Quezon Rep. David C. Suarez on Monday said that “pastor Quiboloy has to respect the legislative process of Congress as “he was invited, and he was asked to present himself so that he can clarify issues regarding the investigations being conducted by the committee on franchise.”

The panel has directed the House Sergeant-at-Arms to coordinate with the Philippine National Police to bring Mr. Quiboloy before the panel to answer the allegations propped against SMNI.

Congressmen previously criticized Mr. Quiboloy’s broadcast network for allegedly spreading false information about House Speaker Ferdinand Martin G. Romualdez and his travel expenses. — John Victor D. Ordoñez and Kenneth Christiane L. Basilio