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Marcos solicits infra investment in speech at Singapore conference

PPA POOL PHOTO BY PHILIPPINE STAR/KRIZ JOHNROSALES

PRESIDENT Ferdinand R. Marcos, Jr. invited international investors on Wednesday to take part in the Philippines’ infrastructure program.

“We welcome foreign investors to take advantage of the opportunities presented in our infrastructure program,” he said in a speech at the 10th Milken Institute Asia Conference in Singapore.

“We open our doors to international developers and construction companies who wish to take part in the infrastructure development of our country,” he added.

Mr. Marcos said the government actively encourages public-private partnerships, which “demonstrate our commitment to provide services to our public while delivering goods and returns to our investors.”

The government plans to spend 5.3% of gross domestic product (GDP) or about P1. 29 trillion on infrastructure this year. Infrastructure spending is expected to come in at 5-6% of GDP until 2028.

Mr. Marcos said the government’s “commitment to connectivity is unwavering,” citing projects lined up under the Build, Better, More infrastructure program.

Investors should consider the Philippines considering its “strong (economic) fundamentals,” he said.

He said the Philippines hopes to grow its economy by 6% this year.

“Our growth story is underpinned by strong domestic demand and increasing fixed capital investment as a result of upbeat domestic activity and improved business confidence,” Mr. Marcos said.

“Moreover, the Philippines’ strategic location within Asia, coupled with our membership in regional trade agreements, positions us as a gateway to countless possibilities,” he added, citing the country’s participation in the Regional Comprehensive Economic Partnership. 

“From digital and renewable energy to manufacturing and tourism, we are a nation on the rise, ready to collaborate with partners who see the potential that we hold in the Philippines.”

Mr. Marcos also urged investors to “tap into our increasingly digital economy.”

Citing the country’s “English-speaking workforce that has propelled us onto the global stage,” Mr. Marcos said several data centers already operating in the Philippines including those of Google, Microsoft, Amazon, and Meta, among others. 

“We are the number one country of choice for the delivery of customer support (to) the healthcare services and one of the top destinations for outsourcing overall, second only to India,” he said.

Meanwhile, Mr. Marcos touted the Maharlika Investment Fund, which he said could drive “economic development through strategic investments both domestically and overseas.” 

In the question and answer portion of the event, Mr. Marcos said his government considers the wealth fund as a means of reducing dependence on foreign loans.

“We… started to worry about borrowing,” he said. “Although our borrowing in terms of GDP is not as high as maybe our neighboring countries, we are at about 62.3% up to 63% of GDP… for us that is high.”

“So we need to invest more without increasing our borrowing,” he said. — Kyle Aristophere T. Atienza

ADB approves $303-M PHL flood risk management loan

MISAMIS OCCIDENTAL PROVINCIAL POLICE

THE Asian Development Bank (ADB) said on Wednesday that it approved a $303-million loan to the Philippines to help build resilience against floods and other climate hazards.

In a statement, the bank said that the loan will help “reduce flood and climate risks and protect people and livelihoods in three major river basins in the Philippines, one of the most vulnerable countries to the effects of climate change and disasters caused by natural hazards.”

The loan will finance the first phase of the Integrated Flood Resilience and Adaptation Project. It aims to “upgrade and construct flood protection infrastructure in the Abra river basin in northern Luzon and the Ranao/Agus and Tagum–Libuganon river basins in southern Mindanao.”

“The infrastructure takes into account future climate change impacts and incorporates nature-based solutions such as restoring and reconnecting old river channels for natural drainage and reinforcing riverbanks with mangroves and vegetation,” it added.

The project seeks to help 22 local government units and around 150 barangays improve their climate and disaster risk management systems. It will also finance training programs for building local capacity.

“The project will help strengthen the Philippines’ capacity to perform flood risk management planning by providing training for government officials, installing equipment for weather and river flow monitoring and early flood warning, and introducing an asset management information system,” the ADB said.

“Climate change is expected to raise risks from extreme weather events. These river basin communities are highly vulnerable to climate-related hazards, as we have seen in recent years when typhoons destroyed infrastructure, displaced families, and damaged crops,” ADB Senior Water Resources Specialist Junko Sagara said.

Last year, the ADB extended a total of $2.995 billion to the Philippines in the form of loans, grants, and co-financing programs. This was 7.3% higher than the $2.791 billion committed in 2021.

The bank is earmarking $4 billion worth of loan financing this year, mainly in eight projects and programs. — Luisa Maria Jacinta C. Jocson

PHL to start avocado exports to South Korea this month

LOUIS HANSEL-UNSPLASH

THE Philippines will start exporting Hass avocados to South Korea by the end of September, the Department of Agriculture (DA) said.

The DA said that the initial shipments will come from orchards accredited by the DA’s Bureau of Plant Industry and the packaging operations of Dole Philippines, Inc. in Davao, Bukidnon, and South Cotabato.

“We thank the Korean government for finally approving market access for our Hass avocado exports,” (DA) Senior Undersecretary Domingo F. Panganiban said in a statement.

The DA said that the initial agreement was signed on June 19 and took effect on Sept. 8 for produce harvested during the 2023-2024 season.

“Hass avocados have become popular in Korea as the main nutritional ingredients for salad and sandwiches. They are available at leading retail stores and online markets, in fresh and frozen form, but are mostly from Latin America,” the DA said.

The government initially requested export access for Hass avocados in 2009 but was blocked due to pest concerns.

“The PRA (Pest Risk Analysis) for Hass avocado resumed after the Philippines’ success in securing market access for okra exports to Korea in 2021,” it added.

Additionally, the DA will promote Philippine avocados through its agriculture office in Seoul, in collaboration with Dole Korea Ltd.

Aleli Maghirang, the agriculture attaché in Seoul, said that there is an increasing demand for agricultural products in South Korea, especially those items associated with healthy lifestyles.

Korean consumers are expressing a preference for “food with health and wellness benefits bodes well for Philippine agricultural exporters,” Ms. Maghirang said.

“This presents an opportunity for the DA to encourage the increased cultivation of export winners such as tropical fruit and high-value agricultural products to meet the growing demand of the discerning Korean market for healthy food,” she added.

In 2022, the Philippines produced a total of 20.08 million metric tons of avocado, up 1%, according to the Philippine Statistics Authority.

Other fruit exports are fresh bananas, pineapple, papaya, and mango. The Philippines is the sole exporter of fresh okra to South Korea. — Adrian H. Halili

Filipino-Chinese chamber supports rice tariff reduction

BW FILE PHOTO

THE Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) has declared its support for a reduction in rice tariffs as a temporary measure to address shortages in the commodity.

In a statement, the chamber said it backs the proposed temporary reduction in tariffs on imported rice to between 0% and 10% to stabilize prices and supply.

Last week, Finance Secretary Benjamin E. Diokno proposed to temporarily reduce the 35% rice import tariff to as low as 0%.

“The FFCCCII believes that Secretary Diokno’s proposal to temporarily reduce the said rates … would not only translate to a decrease in rice prices and temper the increasing inflation in food prices, but also address the demand-supply gap,” it said.

It added that the move will “undeniably” mitigate the sharp increase in the price of the staple.

However, FFCCCII said the lowering of the tariff should be coupled with other measures to ensure long-term stabilization of prices.

It also noted the need to address the needs of the broader public before worrying about the effect of imports on the income of domestic farmers.

“At this time of soaring prices and lack of supply of this staple, we need to consider foremost the needs of our consuming public, the over 110 million Filipinos, and support this short-term measure,” FFCCCII said. — Justine Irish D. Tabile

BIR updates list of registered tobacco companies, brands

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE Bureau of Internal Revenue (BIR) said it has updated the list of registered manufacturers, importers, and exporters of tobacco and vapor products.

In a memorandum circular dated Sept. 4, the agency updated the list to also include their corresponding product brands or variants of cigarettes, heated tobacco products, vapor products, and novel tobacco products.

The BIR said this will help “intensify its campaign against illicit tobacco products.”

Registered manufacturers, importers and exporters must register their brands and variants within six months from the date of the release of the circular to avoid penalties for non-compliance.

“Furthermore, the products must comply with the requirement on graphic health warning and affixing of BIR tax stamps except for vapor products and novel tobacco products for which Internal Revenue Stamps Integrated System stamps are not yet available in the system,” the BIR added.

Under the updated list, domestic manufacturers of locally produced cigarettes include Associated Anglo-American Tobacco Corp., JT International Philippines, MPE Tobacco Trading, PMFTC, Inc., Rolyo Cigarette, Inc., Telengtan Brothers and Sons, Inc. (La Suerte Cigar and Cigarette Factory), Vidda Resources, Inc., Yosimite Oriental Supersystem, Inc.

Meanwhile, export manufacturers include PMFTC and Telengtan Brothers and Sons.

Cigarette manufacturers registered with the Philippine Economic Zone Authority are Baisisen Global Corp., Fourthstripe Manufacturing Corp., Gold Tree Tobacco Manufacturing Corp., Golden Leaf Manufacturing International, Inc., Hongcim Int’l Corp., JT International Asia Manufacturing Corp., Magnum Tobacco Manufacturing Corp., Noble Leaf Manufacturing, Inc., OneSubic Premier Manufacturing Corp., Pan Subic Brothers Manufacturing Corp., Prudence Development and Management Corp., Thaitian Cigarette and Tobacco Corp., and TM8 Enterprises, Inc.

The BIR also listed cigarette importers 20 S, Inc., Duty Free Philippines, Gold Tree Import and Export, Inc., Indigo Distribution Corp., JT International Philippines, Kenstand Philippines, Inc., Phil-One Extreme Corp., PMFTC, Inc., Realway International Phil. Corp., Stable East Tobacco Trading Corp., Sunshine Bay Philippines, Inc., Vidda Resources, Inc., and Winning Touch International Marketing, Inc., among others.

The updated list also includes manufacturers and importers of vapor products, importers of novel tobacco products, and importers of heated tobacco products.

The BIR earlier released a revenue memorandum circular which requires importers or manufacturers of raw materials and equipment used to make heated tobacco products and vapor products to apply for an authority to release imported goods.

In May, the BIR filed 69 complaints against tobacco traders for tax evasion amounting to a combined P1.8 billion.

The agency expects to collect P2.64 trillion this year. Of the total, excise tax collections from tobacco products are expected to hit P169.8 billion. — Luisa Maria Jacinta C. Jocson

DoE preparing microgrid auction notice

THE Department of Energy (DoE) said on Wednesday that it is currently designing an auction process for qualified bidders interested in putting up microgrids.

“We have islands that are not connected to the grid, (which need) microgrids,” Energy Undersecretary Rowena Cristina L. Guevara told reporters on the sidelines of the Giga Summit 2023.

She cited the need for rapid implementation, adding: “We will conduct an auction this year of the candidate microgrids.”

Republic Act No. 11646 or the Microgrid Systems Act lapsed into law last year. It was passed to accelerate the electrification of unserved and underserved areas.

The law authorizes the DoE to streamline the competitive selection process for microgrid system provider service contracts.

Under the law, microgrid system providers are not required to obtain a franchise from Congress, but need to apply for an authority to operate from the Energy Regulatory Commission.

“We have 130 islands that are not connected to the grid, but not all (will be included initially) … We are (compiling) the list of those who want to have microgrids,” Ms. Guevara said.

Ms. Guevara said the auction rules are still being designed while the number of contracts to be offered remains undetermined.

“Within the year definitely because we are still designing the auction because there are many (interested parties),” she said.

Microgrid systems are intended to help the government achieve its target of total electrification by 2028.

Microgrids will also help “diversify our energy mix while ensuring a path towards a sustainable, carbon-neutral, and clean energy future and by requiring more energy sources to support the country’s increasing power demand for economic recovery and development,” Ms. Guevara said in her speech at the conference. — Sheldeen Joy Talavera

PPP governing board to set fees for disqualified proponents filing appeals

PPP.GOV.PH

THE Public-Private Partnership (PPP) Governing Board said it is working on guidelines governing appeals filed by prospective proponents who were eliminated at a project’s pre-qualification stages.

According to a notice posted to the website of the PPP Center, the guidelines will “set a fair and appropriate amount of appeal fees for disqualified proponents which shall not discourage potential appellants from challenging the disqualification decision.”

The guidelines are also designed to “dissuade non-serious bidders (from) filing appeals which can impede the procurement process for PPP projects.”

“Proponents who fail to pre-qualify may appeal their disqualification, subject to the rules and prerequisites outlined in implementing rules and regulations (IRR) of the Build-Operate-Transfer Law. One of these conditions is the payment of a non-refundable appeal fee,” it said.

Appeal fees are set at no less than 0.5% of the project cost, according to Section 5.5 of the revised IRR.

“However, during the amendment process of the 2022 IRR, particularly in the inter-agency discussions, some agencies raised concerns about the lack of flexibility of the provision on appeal fees,” it said.

“The revised 2022 IRR removes this lack by not setting the appeal fee at a specific percentage and instead providing that it shall be in an amount approved by the Approving Body pursuant to guidelines to be issued by the PPP Governing Board,” it added.

According to a draft resolution, the appeal fee will vary from 0.75% of the project cost for projects costing P2 billion or less, to 0.10% of the project cost for projects costing more than P200 billion.

The PPP Governing Board is chaired by the National Economic and Development Authority Secretary, with the Finance Secretary acting as vice-chair. Its members include the secretaries of the Departments of Budget and Management, Justice, Trade and Industry, the Executive Secretary, and Private Sector Co-Chairman of the National Competitiveness Council.

The PPP Center acts as the secretariat for the board.

Comment on the guidelines is being solicited as part of the consultation process. The deadline to comment is Sept. 27. — Luisa Maria Jacinta C. Jocson

Estate tax amnesty: A refresher

Estate settlement entails huge tax payments. Prior to the TRAIN Law, the estate tax due was the aggregate of a specific base tax plus an additional 5% to 20% of the amount in excess of a base net estate threshold.

For many Filipinos, this graduated estate tax rate proved a bit steep. Coupled with the lack of information on how to go about settling an estate, and at times, lack of agreement on how to distribute the estate, this resulted in heirs, transferees, and/or beneficiaries opting to leave the estate unsettled. Others, with the expectation of the inconvenience that they could face when they settle their kin’s estate, resort to simulating a sale transaction just to avail of the 6% capital gains tax applicable to sale of real property.

With the passage of the TRAIN Law, the graduated estate tax rates were scrapped and the tax rate was set at a uniform 6%. With the rate reduction, it made more sense to settle the estate than to simulate a sale given that the estate may benefit from the deductions allowed under the law. However, while prospectively, estates would benefit from the reduced rate, unsettled estates are left in no better condition as they face penalties and interest should they decide to undergo the settlement process.

To encourage the processing of unsettled estates, Republic Act (RA) No. 11213, or the Tax Amnesty Act of 2018, was signed on Feb. 14, 2019. This gave estates of decedents who died on or before Dec. 31, 2017, with or without assessments, whose estate taxes remained unpaid or have accrued as of Dec. 31, 2017, the opportunity to settle their tax obligations without having to pay the penalties that had accumulated due to the failure to pay the estate tax on time. Aside from dispensing with the penalties and interest, the amnesty also imposed the 6% estate tax under the TRAIN Law at every stage of transfer of the property.

Notwithstanding the reduction in the estate tax rate and the waiver of the corresponding penalties and interest for failure to settle the estate on time, the Tax Amnesty Act of 2018 imposed certain conditions. For instance, the deductions remain those applicable at the time of the death of the decedent. Meanwhile, if the deductions exceed the value of the gross estate, there is a minimum estate amnesty tax for the transfer of the estate of each decedent in the amount of P5,000. In addition, in case there are properties included in the Estate Tax Amnesty availment which are the subject of a taxable donation/sale, they shall be assessed donor’s tax/capital gains tax/other applicable taxes at the time of the donation/sale, plus penalties, if applicable.

The period to avail of the benefits of the Estate Tax Amnesty Program under RA 11213 was only until June 14, 2021, which is two years from June 15, 2019, the effectivity of the Revenue Regulations No. 6-2019, the Implementing Rules and Regulations (IRR) of RA No. 11213.

Before the expiration, however, the amnesty program was further extended until June 14, 2023 under RA No. 11569. This year, pursuant to RA No. 11956 which lapsed into law on Aug. 5, 2023, the period to avail of the program was further extended for another two years, i.e., until June 14, 2025.

Aside from the extension, RA No. 11956 expanded the coverage of the amnesty program to include estates of decedents who died on or before May 31, 2022, with or without assessment, but whose estate taxes have remained unpaid or have accrued as of May 31, 2022. It also listed in detail the documents that must be submitted to the Bureau of Internal Revenue (BIR) to avail of the estate tax amnesty and allowed payment by installment within two years from the statutory date of its payment without civil penalty and interest.

HOW TO AVAIL
Under the law and the IRR of RA No. 11956 (RR No. 10-2023), within the two-year extended window (i.e., June 15, 2023 to June 14, 2025), the executors, administrators, legal heirs, transferees or beneficiaries must file and pay either electronically or manually, with any authorized agent bank (AAB), Revenue District Office (RDO) through the Revenue Collection Officer (RCO), or authorized tax software provider, a sworn Estate Tax Amnesty Return. The return together with the Acceptance Payment Form (APF) and the complete documents shall be presented to the concerned RDO.

RR No. 10-2013 lists the documents that must be submitted. Nevertheless, in the absence of the required documents, the Commissioner may request alternative documents as may be deemed appropriate.

Within five working days from receipt of complete documents, the concerned RDO will endorse the APF for payment of the estate amnesty tax with AABs, RCOs, or authorized tax software provider, or shall notify the taxpayer in case there is any deficiency in the application. Only duly endorsed APFs shall be presented to and received by the AAB, RCO or authorized tax software provider.

After payment, the duly accomplished and sworn Return and APF with proof of payment and complete documents, must be submitted to the concerned RDO in triplicate.

Proof of settlement of the estate, whether judicial or extrajudicial, need not accompany the return if it is not yet available at the time of filing and payment of taxes, but no electronic Certificate Authorizing Registration (eCAR) may be issued unless such proof is presented and submitted to the concerned RDO. The eCAR, which serves as confirmation that the requisite tax has been paid, is indispensable to transfer ownership of real and personal property.

As emphasized by Congress, the pandemic posed challenges that likely affected the opportunity to avail of the amnesty program. This necessitated the passage of another extension. Still, the pandemic aside, the extension is a welcome measure to help alleviate the financial burden that has been a showstopper for most estate settlements.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.

 

Kathleen C. Galano is an assistant manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

63 (2)8845-2728

kathleen.c.galano@pwc.com

Defense chief says civilian agencies’ intel funds aid in countering threats

DEFENSE SECRETARY GILBERTO ‘GIBO’ C. TEODORO, JR. — SENATE PRIB

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE DEFENSE Secretary Gilberto “Gibo” C. Teodoro, Jr. has justified the need for civilian agencies of government to have their own confidential and intelligence funds (CIF), noting that there could be internal activities conducted to aid the country’s external threats.

“There could be a fusion of external threats through internal activities that are disbursed and we are still validating,” Mr. Teodoro said when he faced the powerful Commission on Appointments (CA) for the confirmation of his interim appointment to the top post of the Department of National Defense (DND).

“[To] take control of your internal economy and internal process and the like, you would need intelligence and confidential funds to monitor and suppress this,” he said further of the need to equip certain government agencies.

Senator Ana Theresia “Risa” N. Hontiveros-Baraquel noted that several civilian and intelligence agencies with anti-crime mandates as well as departments required to work against external threats, will need CIFs.

“I just have the feeling that right now [allocations for CIFs are] too disbursed,” she told the panel.

Lawmakers previously noted the surge in agencies asking for CIFs in next year’s budget.

“What we are doing now in Congress, even in budget debates, is that civilian agencies that will [have] confidential funds are those really mandated to use these funds for national defense, internal security, public safety, and of course intelligence mandates,” Ms. Hontiveros-Baraquel said.

The budget for confidential and intelligence funds next year increased by P120 million to P10.14 billion — P5.28 billion in intelligence and P4.86 billion in confidential funds.

Under the 2024 National Expenditure Program, the Office of the President was given P4.5 billion in intelligence funds, while the Office of the Vice President and the Department Education (DepEd) sought  confidential funds worth P500 million and P150 million, respectively.

The budgets of these three offices breezed through the House Committee on Appropriations without scrutiny, especially on its proposed CIFs.

The Department of Information and Communications Technology (DICT) got confidential funds worth P300 million. The Bureau of Customs will get P30.5 million, while the Department of Foreign Affairs was allotted P5 million in confidential funds.

The Department of Agriculture was allotted P50 million in confidential funds, the DND, P60 million, and the Presidential Security Group, P60 million.

Mr. Teodoro noted that there are no national security issues on Chinese state-owned enterprises and cell towers operating in the Philippines’ power sector and military bases, respectively.

“That’s not so much a problem because we can monitor it and we have default control over it,” he assured the CA panel.

However, Mr. Teodoro submitted that they cannot monitor the entry of workers assigned to infrastructure projects in the country.

He acknowledged that there is a necessity to tighten surveillance of “covert economic activities and information activities that are not commonly seen.”

The CA confirmed Mr. Teodoro’s appointment as Defense chief, a post he had previously assumed during the Arroyo administration.

Green rights group dubs Philippines as ‘deadliest’ in Asia

STOCK PHOTO | Image by kjpargeter from Freepik

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES has remained the deadliest country in Asia for environmental and land defenders for a decade now, according to rights watchdog Global Witness, which noted that 11 of the 16 killings in the region last year happened in the archipelago.

Globally, the Philippines was the fifth most dangerous country for environmentalists in 2022, followed by Colombia with 60 killings, Brazil with 32, Mexico with 31, and Honduras with 14, the group’s latest report said.

Since 2012, a total of 281 defenders have been killed in the Philippines, a third of whom were “linked to defenders speaking out against company operations linked to the mining sector,” Global Witness noted.

Last year, at least 177 environmental defenders were killed, bringing the total to 1,910 since 2012 — a statistics that can be translated to an environmentalist being killed every other day.

“Although the overall figure is slightly lower last year than in 2021, when we recorded 200 killings, this does not mean that the situation has significantly improved,” the report said.

Global Witness said the climate crisis and the increased demand for agricultural commodities, fuel and minerals will “intensify the pressure on the environment” and “those who risk their lives to defend it.”

“Increasingly, non-lethal strategies such as criminalization, harassment and digital attacks are also being used to silence defenders,” it added.

Global Witness noted that President Ferdinand R. Marcos, Jr. has, so far, failed to address human rights violations since he took office in June 2022.

“Instead, he has focused his agenda on business and economic interests, raising continued concerns amongst civil society about an increase in mining and other resource exploitation at the cost of human rights and the safety of defenders,” it said.

The Marcos administration has eased rules for foreign investments in a bid to make the country an investment hub, welcoming foreign investors interested in mining and renewable energy projects, among other critical programs.

It has also created a green lanes program that requires national government agencies to fast-track the approval of necessary permits for investments that it considers strategic, covering projects that involve mining for key minerals such as nickel and copper, which are on demand as rich countries have been on race to manufacture solar panels, wind turbines, electric vehicles, among other technologies critical to a low carbon future.

But environmental watchdogs have warned that pre-investment requirements like environmental impact assessments and consent of indigenous and local communities could be ditched due to the investment program.

Asked about the report, the Department of Environment and Natural Resources (DENR) said it was not in a position to make a comment. “We don’t know the circumstances of each of the cases,” the DENR said in a reply to reporters.

However, it stressed that there are about 2,500 forest rangers, forest protection officers and other personnel at the provincial and community levels “who are also protecting the environment.”

Global Witness has cited the “widespread” criminalization of defenders and rights advocates, “with ‘red-tagging’ — the government practice of accusing activists of communist insurgency — commonly used to silence critics and communities.”

“The fact that the Philippines has remained the worst country in Asia for defenders for a decade now is nothing short of alarming,” Jon Bonifacio, national director of Kalikasan People’s Network, a coalition of green groups, said in a Facebook Messenger chat.

“While there’s been a lot of lip service around human rights and climate justice, the Marcos administration has not bothered to even comment or speak up about the human rights crisis our environmental defenders are going through,” he said.

5M Filipino kids lived in extreme poverty in 2022 — UN report

PHILSTAR FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

A TOTAL of 12.4% of Filipino children have been living in extreme poverty in 2022, the latest policy research working paper released by the United Nations International Children’s Emergency Fund (UNICEF) and the World Bank showed.

The figure is equivalent to around 5.14 million children who live in extreme poverty in the Philippines. Extreme poverty is defined in this context as living on less than $2.15 (about P121) a day.

The report also showed 43% of Filipino children or around 17.8 million were living on less than $3.65 (P206) a day, which is the average poverty line for lower middle-income economies.

Meanwhile, 77.7% or over 32 million Filipino children were living on less than $6.85 (P387) or the poverty line for upper-middle income countries.

The report found that children remain disproportionately affected by extreme poverty, as 15.9% of children globally are living in extremely poor households, against 6.6% of adults.

“Children who are younger than 18 years comprise more than 50% of those living in extreme poverty, although their share of the population is 31%,” UNICEF and the World Bank said.

Globally, 333 million children were living in extreme poverty last year with 829 million of them living below $3.65 per day and 1.43 billion living below $6.85 per day.

Meanwhile, the report also showed that extreme child poverty rates declined to 15.9% from 20.7% between 2013 and 2022.

“While this lifted 49.2 million children out of extreme poverty, this was about 30 million less than what was projected in the absence of COVID-19-related disruptions,” the report said.

East Asia and the Pacific showed the “most significant decrease” in extreme poverty between 2013 and 2022.

“It is more critical than ever that all children have a clear pathway out of poverty — through equitable access to quality education, nutrition, health, and social protection, as well as safety and security,” World Bank Global Director for Poverty and Equity Luis Felipe Lopez-Calva said in a statement.

“The analysis shows that these policy portfolios need to consider both the common and distinct vulnerabilities and deprivations of children living in fragile and conflict prone settings, children in large households, younger children, children in rural settings, children in households where the head has no or little education — as these are more likely than other children to be living in extreme poor households,” according to the report.

FUNDS CUT FOR WOMEN, CHILDREN — LAWMAKER
In the Philippines, a lawmaker sounded the alarm on Wednesday over budget cuts on programs intended for children and women and criticized bigger allocations for agencies’ confidential and intelligence funds.

“We are dismayed by the prioritization of confidential funds, which have historically been prone to corruption, at the expense of crucial programs for women and children. This is a clear reflection of the government’s misplaced priorities,” Party-list Rep. Arlene D. Brosas said in a statement.

Under the P5.768-trillion proposed budget for next year, the government’s Family Planning and Reproductive Health program received zero funding.

The Council for the Welfare of Children suffered a 31.22% decrease to P94.09 million, the Juvenile Justice and Welfare Council’s budget is 45.03% lower to P117.88 million, while the National Authority for Child Care has a P298.49-million budget or a 31.23% decrease.

“These programs play a vital role in safeguarding the rights and well-being of women and children. Slashing their budgets jeopardizes their access to essential services and support systems amid the economic problems plaguing our country,” she said. — with Beatriz Marie D. Cruz

Keep CoA audit memos public — senator

PHILSTAR FILE PHOTO/ SENATE PRIB/JOSEPH VIDAL

By John Victor D. Ordoñez, Reporter

A PHILIPPINE Senator on Wednesday opposed the Ombudsman’s proposal to remove provisions in the national budget requiring the publication of the Commission on Audit’s (CoA) initial reports on government agencies, saying such a change only hinders transparency.

“The non-publication of audit observation memoranda (AOM) by the CoA will only weaken the government’s ability to promptly flag and investigate irregularities involving public money,” Senator Ana Theresia N. Hontiveros-Baraquel said in a statement.

“These audit observations have been historically important in getting to the bottom of issues that involve the misuse of public coffers,” she added.

During a House of Representatives hearing on the Office of the Ombudsman’s budget on Monday, Ombudsman Samuel R. Martires recommended Congress to remove the requirement mandating the CoA to publish audit recommendations of each government agency to “prevent confusion.”

“It is causing confusion because people would read an error in a P10-million project and would think that the government official earned [from the project…but it just] didn’t submit a receipt,” he said.

But on Wednesday, the Office of the Ombudsman clarified that Mr. Martires did not want CoA’s  annual audit report of an agency to be published, noting that only the final audit report should be published since initial reports could still be appealed.

“The Office is fully committed in pursuing its mandate as protectors of the people by ensuring that its processes are fully aligned with integrity, transparency and accountability in public service,” it said.

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