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Updates on intel fund use sought

PHILIPPINE STAR/ GEREMY PINTOLO

A PHILIPPINE Senator on Tuesday urged law enforcement agencies to brief lawmakers on how intelligence funds have been utilized this year to build intel networks to secure wanted fugitives after a former town mayor and her cohorts accused of coddling illegal gambling outfits fled the country undetected.

“They freely transferred from location to location and even reached our ports,” Senator Sherwin T. Gatchalian said in a statement in Filipino. “What happened to the intelligence network being built by our law enforcement agencies?”

Mr. Gatchalian cited gaps in the intel gathering capacity of these agencies and what he called a “snail-pace process” of filing criminal cases against the former mayor and her cohorts.

“Whether there was collusion or a failure of intelligence, there should be accountability on this issue,” the senator said. — John Victor D. Ordoñez

17 Houthi-held Filipinos still safe

THE DEPARTMENT of Migrant Workers (DMW) on Tuesday said the 17 Filipino seamen held hostage by Houthi rebels since November are still “safe and sound.”

DMW Secretary Hans Leo J. Cacdac during a virtual briefing, assured the public that the 17 people previously aboard MV Galaxy Leader are “safe and sound.”

He said there is already coordination and communication lines with Houthi rebels holding the seafarers..

“We know they are safe and sound. Still at this stage, they are on board the ship. However, we still are coordinating with the Department of Foreign Affairs (DFA) on [their] safe and eventual release,” he said in mixed English and Filipino.

The DFA last year said the 17 Filipinos were among the people held hostage by the Yemeni rebels after seizing their cargo ship in the Red Sea. — Chloe Mari A. Hufana

SC reduces penalty of PCG official

PHILSTAR FILE PHOTO

THE SUPREME COURT (SC) overturned the dismissal of a Philippine Coast Guard (PCG) official, reducing his penalty to a one-month and one-day suspension, and ruling his involvement in procuring supplies for Typhoon Yolanda relief operations as free of dishonesty.

The SC Second Division said the PCG official, who headed the coast guard’s Special Service Office at the time, was guilty of simple misconduct for bypassing the public bidding process in the procurement without approval from the PCG head.

“He is guilty, not of grave misconduct, but of simple misconduct only, as he failed to comply with the requirements of Republic Act No. 9184,” Justice Antonio T. Kho, Jr. wrote in an 11-page decision.

The Ombudsman in 2017 initially found him guilty of serious dishonesty, grave misconduct, and conduct prejudicial to the best interest of the service and ordered his dismissal from office.

The case concerned his disbursement of P500,000 for procuring office supplies and information technology equipment through alleged unjustified public bidding. — Chloe Mari A. Hufana

PSA chief asked to resign

THE HEAD of the Philippine Statistics Authority (PSA) should resign after the government terminated the contract for printing national identification cards, a congressman said on Tuesday.

Bidding officials of the central bank should also be sacked over the initial contractor’s slow production and delivery of National IDs, Bukidnon Rep. Jonathan Keith T. Flores said in a statement.

“I am not satisfied nor appeased by the cancellation of the contract with the supplier of the PhilSys (Philippine Identification System) National ID. There must be investigations by the BSP (Bangko Sentral ng Pilipinas) and DoJ (Department of Justice) to determine accountability and liability,” he said.

“Failed contracts like this erode the credibility of the national government and the agencies concerned,” he added. — Kenneth Christiane L. Basilio

Comelec backs hybrid elections

THE COMELEC office in Intramuros, Manila — PATRICK ROQUE

THE COMMISSION on Elections (Comelec) will support efforts to amend a law that automated the national and local polls, election chief George Erwin M. Garcia said on Tuesday, citing the need to revise the measure to allow the conduct of hybrid elections.

“We will definitely support [it],” he said during Comelec’s congressional budget briefing. “If there is an initiative by Congress to have a hybrid election, we will definitely support it.”

“We will need an amendment because what is stated in [Republic Act No.] 9369 is pure automation, it doesn’t provide for the conduct of two systems, therefore we might encounter problems,” he added.

Comelec in July rejected a proposal to hold hybrid elections for the 2025 polls, citing that it would violate a 2007 law that mandated the conduct of automated election systems. The country first conducted its automated elections in 2010. — Kenneth Christiane L. Basilio

Remove deadline for temporary, improvised plates use, LTO told

THE LAND Transportation Office (LTO) must remove the deadline for the temporary and improvised license plates use until the agency closes its production backlogs, transportation analysts said.

“The government should allow temporary plates, subject to official design, of course, if the agency itself cannot provide the plates,” Nigel Paul C. Villarete, senior adviser on public-private partnership (PPP) at the technical advisory group Libra Konsult, Inc, said in a Viber message to BusinessWorld.

This comes after the LTO ordered on Sunday the extension of temporary and improvised license plates use until Dec. 31 instead of the earlier deadline of Sept. 1.

“[The LTO] should not impose deadlines until such time the agencies can provide the plates. Deadlines may be set after the government is able to provide the plates,” Mr. Villarete said

Senator Francis N. Tolentino said the agency must use the extension to ramp up the production of official license plates.

“They promised to make significant progress. We’ll see what happens on December 31, whether the deadline will be extended further, or if plates will finally be issued,” Mr. Tolentino said in a statement, noting the deadline, which falls on New Year’s Eve, is an “imaginary target.”

“LTO was unable to produce MV (motor vehicles) plates adequately. A very simple process that it had no trouble doing before. Deadline of Dec. 31 should be removed permanently,” Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said in a Viber message.

Car and motorcycle dealers should be allowed to make and issue license plates in accordance with the prescribed standards of LTO, he said.

“In short, sporting the number authorized by LTO once a vehicle is sold and registered. This will be cheaper, and convenient, for vehicle owners,” Mr. Santiago said.

“The LTO has made the right decision to reconsider the apprehension of vehicles using temporary plates, as the backlog of official plates has been the fault of the government,” InfraWatch PH Convenor Terry Ridon said in a message.

Mr. Ridon said the LTO should commit to ensure the timely printing of license plates before apprehending motorists for the use of temporary plates.

However, the agency reiterated that it has already addressed its license plate production backlog for four-wheel vehicles, and is working to ramp up the production of license plates for motorcycles.

“Thousands of license plates remain unclaimed in various motor vehicle dealerships and in a meeting with car dealers last month, the car dealers said their clients are unable to claim the plates despite their repeated message to them,” it said.

Earlier this year, President Ferdinand Marcos, Jr. ordered the LTO to address the backlog of vehicle plates by June next year. — Ashley Erika O. Jose

Strong demand for aviation workers triggers training push

LUFTHANSA TECHNIK PHILIPPINES

THE Department of Transportation (DoTr) said it is studying ways to build up the pipeline of aviation-industry workers due to strong global demand.

Transport Undersecretary Roberto C.O. Lim told reporters on the sidelines of a forum on Friday that the talent shortage is global across multiple aviation trades, including “pilots, air traffic controllers, mechanics, radio specialists, maintenance workers, and ground handling equipment operators.”

He said the shortage is also being felt in the Philippines, where aviation personnel are being offered overseas jobs.

“We should develop our human capital by producing more and also by improving their quality,” he added.

He cited the need for government and established private colleges to produce more talent and modernize the curriculum.

“The curriculum needs to be modernized so that it is responsive to the needs of the industry,” he said.

“And we have engaged the industry to organize ourselves and identify a roadmap of how to fill those gaps,” he added.

He said the training colleges will be able to cover what employers usually teach graduates when they come on board, making the transition to the workforce “more efficient.”

He said that the department is still organizing industry representatives ahead of the release of a roadmap.

“But at least the stakeholders know that the government is there; it recognizes the problem, trying to understand and identify solutions, and trying to be an enabler because the colleges themselves have to do the actual change in the curriculum,” he said.

“So we are still building the roadmap and making sure that we have the Filipino youth that will find it attractive to go into this sector,” he added.

He noted the need for another 250 air traffic controllers.

“We need to fill in that gap because the training of air traffic controllers is long because they need to have the experience,” he added.

He said that the government is also studying an initiative that will help bring back Filipino aviation personnel working overseas, including retirees, who could participate in mentorship programs “to share their valuable knowledge,” he added.

He said the DoTr and Clark International Airport Corp. are studying the creation of an aviation campus and could invite overseas aviation colleges to conduct remote training in the Philippines. — Justine Irish D. Tabile

PHL farm trade deficit widens 13.8% in Q2

REUTERS

THE deficit in the trade of agricultural goods expanded 13.8% year on year in the second quarter to $3.07 billion, according to preliminary data from the Philippine Statistics Authority (PSA).

In a report, the PSA said overall trade — or the sum of exports and imports — rose 14.3% to $6.79 billion during the quarter, against a 14.7% decline a year earlier.

Agricultural exports rose 14.7% to $1.86 billion for the three-month period, accounting for 10.2% of total exports.

Edible fruit and nuts as well as peel of citrus fruit and melons took up the largest share of farm exports, valued at $543.62 million or 29.2% of the total.

Agricultural products shipped to Association of Southeast Asian Nations (ASEAN) countries accounted for 8.8% of total exports at $227.24 million.

The top ASEAN exports were animal, vegetable, or microbial fats and oils and their cleavage products; prepared edible fats; and animal or vegetable waxes amounting to $91.74 million.

Malaysia was the Philippines’ top export market for farm goods during the second quarter, accounting for $95.22 million or 41.9% of all ASEAN farm exports.

It added that trade to the European Union (EU) consisted of 18.6% of overall agricultural exports, amounting to $358.93 million.

“Among the EU member countries, the Netherlands was the country’s top destination of agricultural commodities worth $179.77 million, or 50.1% of the total agricultural exports to EU member countries for this quarter,” the PSA said.

Animal or vegetable fats and oils and their cleavage products, prepared edible fats and animal or vegetable waxes were the top agricultural exports to the region.

The PSA also reported that the import of agricultural goods rose 14.1% year on year to $4.94 billion in the three months to June.

In April, President Ferdinand R. Marcos, Jr. issued Administrative Order No. 20 instructing the departments of Agriculture, Finance, and Trade and Industry to simplify the administrative procedures for agricultural imports, as well as remove non-tariff barriers.

Cereals remained the top agricultural import for the second quarter at 26% of the total, valued at $1.28 billion.

For the period, imports of agricultural goods from ASEAN were valued at $1.86 billion or 16.4% of total imports. Cereals were the top commodities imported from ASEAN.

“Vietnam was the leading supplier of agricultural products to the Philippines among ASEAN member countries,” the PSA said, with $686.60 million.

It added that imports from the EU amounted to $450.29 million or 24.6% of farm imports by value in the quarter.

Spain was the top EU supplier of farm goods, accounting for $122.27 million or 27.2% of overall farm imports.

Meat and edible meat offal were the top imports from the EU, followed by dairy, eggs, honey, and edible products of animal origin. — Adrian H. Halili

Power spot prices fall in August on ample supply

BW FILE PHOTO

ELECTRICITY PRICES at the Wholesale Electricity Spot Market (WESM) fell in August with supply ample in the face of strong demand, the Independent Electricity Market Operator of the Philippines (IEMOP) said.

“Despite the increase in demand, available supply was higher for this specific billing period; hence, there was a wider supply margin mainly because the hydropower plants’ contributions increased from 6.7%…to 10%,” Arjon B. Valencia, manager of corporate planning and communication at IEMOP, said via Viber.

According to preliminary data, IEMOP said the system-wide average price declined 0.4% month on month to P5.94 per kilowatt-hour (kWh) in August.

The operator said that available supply rose 4.5% month on month to 19,718 megawatts (MW). Demand during the period rose 1.4% to 14,186 MW.

WESM prices in Luzon rose 5.5% month on month to P6.24 per kWh.

IEMOP added that supply rose 2.4% from a month earlier to 13,657 MW. Demand rose 0.4% to 10,180 MW.

The average rate in the Visayas dropped 7.6% month on month to P6.93 per kWh.

The grid’s available supply rose 7.7% month on month to 2,268 MW. Demand climbed 4.6% to 1,982 MW.

Mindanao WESM electricity prices fell 27.8% month on month to P3.37 per kWh.

Supply rose 10.9% from a month earlier to 3,794 MW, while demand rose 3.7% to 2,025 MW.

IEMOP operates the WESM, where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera

PHL franchise brands sign P750 million in firm deals at Melbourne trade show

SIX FRANCHISE brands participating in the Franchising & Business Opportunities Expo in Melbourne booked P750 million in firm deals, according to the Philippine Franchise Association (PFA).

“We were able to hit P750 million in terms of closed deals, just for the six brands alone,” according to Sherill R. Quintana, chair of the council of past presidents of the PFA.

She was speaking on the sidelines of the Franchise Asia Philippines 2024 International Franchise Conference on Monday.

The companies that joined the Melbourne expo were Avocadoria, Bench, Cabalen, Miguelitos Ice Cream, Oryspa, and Shawarma Shack, which all have international operations.

“Majority of them are food concepts … leveraging Melbourne being a culinary capital, where the people are into a lot of very curated food concepts,” she said.

The PFA is seeking the government’s support in helping franchise brands go international.

“(We support creating) more global Filipino brands. So far, only about 1% or 1.5% of franchise brands have an international presence,” PFA Chairman Chris Lim said.

“But slowly, with more investment … we want to accelerate that,” he added.

He said that franchise brands from Thailand and Malaysia have been very aggressive in joining international trade shows.

“They bring in big delegations. And that’s partly supported not only financially but as well as connection-wise by their government,” he said.

“So that is something that we’d love to continue working on with the Department of Trade and Industry and with all the PTICs (Philippine Trade and Investment Centers) to help more of our brands go international,” he added.

Ms. Quintana said that PFA brands will also be joining the Fine Food Australia Expo set to take place on Sept. 2-5 at the Melbourne Convention and Exhibition Center. — Justine Irish D. Tabile

Bangsamoro gov’t authorized to enter into foreign-aid deals under new ODA guidelines

@BANGSAMOROGOVT

THE Intergovernmental Fiscal Policy Board (IFPB) approved on Tuesday guidelines authorizing the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to contract its own official development assistance (ODA) funding deals.

The guidelines are expected to help bolster the region’s access to foreign assistance and support its development, the Department of Finance said.

Having separate ODA guidelines for the Bangsamoro could help unlock opportunities for infrastructure development and socioeconomic programs, Finance Secretary Ralph G. Recto, who co-chairs the IFPB, said during the signing.

“Beyond financing, this will provide the BARMM with access to knowledge, technology transfer, capacity-building, and a wealth of experience from experts and development partners around the world,” Mr. Recto said.

Last year, BARMM received $579.83 million in foreign grants and loans to support the region’s peacebuilding and livelihood efforts, according to the National Economic and Development Authority’s 2023 ODA portfolio report.

The region’s share was 5.44% of the P10.65 billion in total ODA received by the Philippines last year.

The approved guidelines authorize the Bangsamoro government to contract loans, either in cash or in kind, from foreign governments or their agencies, instrumentalities, and multilateral institutions or organizations.

ODA guidelines allow the Bangsamoro government to borrow for investment and social, and economic development projects, in the absence of other financial instruments on the capital markets. Such packages must also contain a 25% grant element.

Foreign assistance cannot be used on projects required by law to be handled by the private sector, or for supporting private corporations that have access to commercial credit, according to the guidelines.

It also lists the Bangsamoro government instrumentalities that may participate in the ODA loan process.

The guidelines also detail the procedure for approving BARMM ODA deals, in coordination with the National Government (NG).

Bangsamoro Minister of Finance, Budget and Management Ubaida C. Pacasem, who also heads the IFPB, called the guidelines “a step on the ladder” towards achieving fiscal sustainability

Created under Republic Act No. 11054 or the Bangsamoro Basic Law, the IFPB recommends fiscal policy adjustments and other tax collection measures to the NG to ensure that BARMM’s financial needs are met. — Beatriz Marie D. Cruz

Newly proclaimed ecozones in Iloilo, Batangas valued at P1.05 billion — PEZA

THE Philippine Economic Zone Authority (PEZA) said that the recently proclaimed economic zones by President Ferdinand R. Marcos, Jr. will involve combined investment of over P1 billion.

In a statement on Tuesday, PEZA said that Proclamation Nos. 668 and 670 will result in the creation of an IT (information technology) center in Iloilo and the expansion of the LIMA Technology Center in Batangas, respectively.

“In collaboration with other government agencies and industry partners, PEZA furthers its commitment in eco-zoning the Philippines towards inclusive and sustainable development,” said PEZA Director General Tereso O. Panga.

The first proclamation designated a 200-square-meter site in Iloilo as the Grid IT Center. It involved an initial investment of P193 million and was completed in 2019.

“The new ecozone already expects three companies engaged in the IT-business process management sector to locate, with an estimated P10 million to be invested and 250 workers to be employed,” PEZA said.

Meanwhile, the second proclamation designated an additional 31.35 hectares as the expansion site for LIMA Technology Center. It cost P856 million and is expected to be completed by the first quarter.

“This expansion is expected to further amplify Aboitiz InfraCapital, Inc.’s contributions and better enable PEZA to execute its commitment to sustainable economic progress and national development,” the investment promotion agency said.

According to PEZA, LIMA Technology Center currently hosts 169 locators who invested P100 billion, creating 65,000 jobs.

In a separate statement, PEZA said it signed a memorandum of cooperation and understanding with the Philippine Guarantee Corp. (Philguarantee) on Monday to help facilitate access to financing for investors.

“This allows for more businesses, especially investors and small and medium enterprises, to find greater opportunities in securing financing and managing risks for their operations,” PEZA said.

“Through these efforts, our organization is committed to supporting industrial and economic growth while ensuring a thriving integrated business ecosystem,” Philguarantee President and Chief Executive Officer Alberto E. Pascual said. 

“We are bullish that the integration of PEZA’s investment promotion strategies and digitalization initiatives with Philguarantee’s financial security mechanisms will lead to a stronger and more dynamic business environment,” Mr. Panga said. — Justine Irish D. Tabile