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PHL must strengthen Judiciary or risk losing reform gains, lawyer says

NILO T. DIVINA, founder and managing partner of Divina Law, discussed the importance of an effective Judiciary in enabling tax and governance reforms during the BusinessWorld Forecast 2026 forum at the Grand Hyatt Manila, Nov. 25 — J. LEGASPI COMPUTER GRAPHICS

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINES risks squandering the economic gains promised by recent tax and governance reforms unless it strengthens judicial credibility and modernizes regulatory frameworks, according to one of the country’s top lawyers, underscoring the growing importance of legal certainty amid corruption probes and policy noise.

Nilo T. Divina, founder and managing partner of Divina Law, said the country’s competitiveness hinges not only on recent legal reforms but also on whether courts and enforcement agencies can ensure accountability in high-profile investigations such as the alleged flood control scam.

“Without a [dependable], effective judiciary, these reforms mean nothing,” he told the BusinessWorld Forecast 2026’s Fireside Chat in Taguig City on Tuesday.

The climate-vulnerable country has been probing a massive graft scandal involving flood mitigation projects since July, which has dampened its third-quarter growth report and negatively impacted its local currency and stock market.

Mr. Divina noted that recent moves by the Ombudsman to fast-track cases send “confidence not just in the market but to every Filipino,” but cautioned against announcements that may prematurely signal outcomes.

Despite political controversies and governance challenges, Mr. Divina said the Philippines could still see an economic rebound provided policymakers, businesses and the legal community stay aligned on transparency and the rule of law.

“We’re a good country; we’re good people,” he said. “If we’re together, we are in for a rebound, a recovery. We deserve it.”

REFORM CREDIBILITY
Ensuring due process and consistent prosecution will help anchor investor sentiment at a time when transparency issues threaten to overshadow reform gains, he said.

Mr. Divina added clearer enforcement mechanisms have become as important to foreign investors as tax incentives, especially as the Philippines competes with neighbors offering faster dispute resolution and predictable regulation.

Among the tax measures passed during the Marcos administration was the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), meant to attract high‑impact investments, spur growth of existing businesses and draw in new ones. The current public works scandal has, however, dampened the possible economic gains from recent legal reforms, including CREATE MORE.

To strengthen reform credibility, Mr. Divina urged the government to accelerate digitalization, which he said would reduce bureaucratic discretion and shrink opportunities for graft.

He also called for greater public disclosure of how funds are allocated and spent, arguing that transparency and oversight could ease long-standing concerns about leakages in infrastructure programs — a key plank of the Marcos administration’s growth strategy.

Looking ahead, Mr. Divina said the Philippines must update outdated laws to keep pace with global economic trends, particularly in digital commerce and artificial intelligence.

He also pushed for modernization of the Data Privacy Act to clarify disclosure rules, platform liability and digital commerce standards, saying clearer regulations would help position the Philippines as a “trusted haven” for tech investors.

Congress begins talks to open P6.793-T budget bicam to public

BW FILE PHOTO

THE House of Representatives and the Senate have begun talks to iron out rules for opening the joint congressional discussions on the proposed P6.793‑trillion national budget for 2026 to the public, in a bid to quell distrust in the budget process.

Lawmakers are expected to convene the bicameral conference committee (bicam) on the budget bill in the second week of December, Nueva Ecija Rep. Mikaela Angela B. Suansing said. The Senate is expected to approve its version of the proposed spending plan next week.

This gives the Executive about three weeks to review the reconciled and ratified version of the budget, which President Ferdinand R. Marcos, Jr. must sign before end-December. Otherwise, the current budget will be re‑enacted.

“We’re starting to coordinate, the Congress and the Senate, on the rules of the bicam,” Ms. Suansing, who heads the House Appropriations Committee, told reporters. 

Moves to open the bicam to the public form part of fresh reforms introduced by lawmakers amid a corruption scandal that has rocked the Philippines that has so far sapped business confidence, affected markets and stunted economic growth.

Ms. Suansing said there was no longer a need to approve a House resolution making the bicameral conference committee transparent, as lawmakers would already include it in the congressional body’s guidelines.

“I believe there’s no need for a resolution to… actualize that. It’s already there in the rules we’re building,” she said.

The Senate has passed a resolution in August to open joint congressional budget talks to the public, but the House has yet to adopt a counterpart proposal. Efforts to publicize the bicam have been supported by the House leadership, including Speaker Faustino “Bojie” Dy III.

Ms. Suansing said the House also passed its version of the budget bill with “no insertions,” citing efforts to improve the budgeting process by publicizing efforts to amend the proposed spending plan, which was previously made by a group of select lawmakers behind closed doors.

The lower chamber had earlier slashed around P255 billion worth of funding originally intended for flood control works under the Public Works department, rechanneling the amount towards education, health and food sectors.

“There are no hidden things that were included,” she said. “I can vouch for it.”

Lawmakers are deliberating the 2026 spending plan against the backdrop of the multibillion-peso flood control controversy that has drawn closer-than-normal scrutiny amid calls to make the budget process more transparent. — Kenneth Christiane L. Basilio

House not liable in 2025 budget mess, Co claims

PHILSTAR FILE PHOTO

A RESIGNED lawmaker at the center of a brewing political scandal that has hit the Marcos administration said the House of Representatives had no role in the 2025 national budget mess, stressing the chamber “faithfully adhered” to the executive’s spending plan.

In a letter addressed to President Ferdinand R. Marcos, Jr., former Party-list Rep. Elizaldy S. Co said it was the Senate that derailed this year’s spending plan.

“None of our Senate counterparts adhered to Your Excellency’s campaign promise of food and health legacy and other basic concerns,” Mr. Co, who headed the House Appropriations committee, said in the letter, shared on his Facebook page on Wednesday.

This year’s P6.326‑trillion national budget has been hit with allegations of fund diversions, blank line items by the executive, and concerns over outsized public works allocations, prompting multiple lawsuits filed at the Supreme Court against the spending plan.

Mr. Co alleged it was then-Senate President (SP) Francis G. Escudero who called for P145 billion in reallocations to the Department Public Works and Highways (DPWH), threatening to delay the 2025 budget’s approval at the bicameral conference committee level until March 2025.

“I repeatedly warned SP Chiz of the Senate’s very large DPWH allocations because it would exceed education. But he doesn’t want to give way,” he said.

The Office of Mr. Escudero did not immediately reply to a Viber message seeking comment. — Kenneth Christiane L. Basilio

77 officials blocked from traveling

OFFICE OF THE OMBUDSMAN PHILIPPINES FACEBOOK PAGE

THE Office of the Ombudsman restricted 77 government officials and personnel, including several lawmakers, from traveling abroad as they face scrutiny for alleged involvement in the flood control kickback scheme.

“We requested assistance from the Bureau of Immigration to hold 77 people under fact-finding investigation under FTRO (Foreign Travel Restriction Order),” Ombudsman Jesus Crispin C. Remulla told a press briefing on Wednesday.

Mr. Remulla said the sought-after FTRO is part of the Ombudsman’s mandate to prevent individuals under investigation from leaving the country without authorization.

The measure, he said, aligns with existing rules requiring government officials to secure official travel clearance before departing for abroad.

“It is something that we need in our legal system. Hindi pwedeng takas lang nang takas (They can’t just keep running away),” he added.

Mr. Remulla did not identify the individuals covered by the request.

The move comes a week after the Ombudsman filed a malversation and two graft charges against former Party-list Rep. Elizaldy S.Co, several Department of Public Works and Highways officials, and the board of directors of Sunwest Construction firm.

The charges stem from the allegedly substandard P289-million road dike project in Naujan, Oriental Mindoro — the first case brought before the Sandiganbayan linked to flood control corruption scandal. — Erika Mae P. Sinaking

BSP issues ASEAN, Festivals coins

PRESIDENT Ferdinand R. Marcos, Jr. is joined by Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. during the presentation of the 10-peso ASEAN coin and Philippine Festivals Commemorative Coin Series in Malacañan Palace. — PPA POOL

PRESIDENT Ferdinand R. Marcos, Jr. received a series of commemorative coins from the Bangko Sentral ng Pilipinas (BSP) on Wednesday, spotlighting the Philippines’ upcoming chairmanship of the Association of Southeast Asian Nations (ASEAN) and the country’s rich festival culture.

At a ceremony in Malacañan Palace, BSP Governor Eli M. Remolona, Jr. and Deputy Governor Mamerto E. Tangonan presented Mr. Marcos with the 10-peso ASEAN 2026 Commemorative Circulation Coin.

The presentation was also attended by ASEAN National Organizing Council Representative Aian Caringal and Department of Foreign Affairs Assistant Secretary Ana Marie L. Hernando.

The coin, which features a woven pattern, rice stalks, waves and a balangay boat, is embedded with a QR code that provides information about ASEAN 2026, highlighting the Philippines’ leadership in steering regional initiatives next year.

Mr. Marcos also received a preview of the 12-coin series of 100-peso Philippine Festivals Silver Commemorative Coins, set to be released starting January 2026.

Each coin will spotlight one of the nation’s signature festivals, including the Sinulog in Cebu City, Kadayawan in Davao, MassKara in Bacolod, and the Giant Lantern Festival in Pampanga, among others. — Chloe Mari A. Hufana

QC is most bike-friendly city

QUEZON CITY emerged as the Most Bike-Friendly City in this year’s Mobility Awards.

QUEZON CITY (QC) emerged as the Most Bike-Friendly City of 2025, after it earned a gold rating in category, during the fourth year of the Mobility Awards.

It was followed by Iloilo City and Marikina City, the Institute for Climate and Sustainable Cities said in a media release.

Quezon City also snagged the inaugural Pedestrian-Friendly City special award, which spotlights cities that made significant investments in walkable streets, safer pedestrian crossings and accessible sidewalks among others. It garnered a silver rating under the category.

“These dual wins, both for cycling and pedestrianization, show our city’s commitment to people-oriented mobility,” Quezon City Government Assistant City Administrator for Operations Alberto H. Kimpo was quoted as saying.

“We are at the forefront of changing lifestyles, changing behaviors, and hopefully addressing the biases [against] mobility in our nation.” — CAT

ICC urged: Consider Duterte’s health

FORMER PRESIDENT RODRIGO R. DUTERTE — INTERNATIONAL CRIMINAL COURT / COUR PÉNALE INTERNATIONALE

A PHILIPPINE lawmaker on Wednesday called on the International Criminal Court (ICC) to consider the frail health of ex-President Rodrigo R. Duterte when it decides on his temporary release request.

In a statement, Party-list Rep. Roberto Gerard L. Nazal, Jr. said the tribunal’s appeals chamber should act with “humanitarian compassion” toward Mr. Duterte, whom he described as an “elderly detainee facing health challenges.”

“We are praying for a decision that balances justice with humanitarian compassion, and one that will help put closure on an issue that has divided our country,” he said.

Mr. Duterte, 80, was arrested by Philippine authorities and flown to The Hague, Netherlands in March for alleged crimes against humanity linked to his deadly drug war that has defined his six-year term.

His lawyer had since sought his interim release from the ICC’s detention center, wishing for his temporary freedom while the case is still ongoing. Tribunal hearings typically last years.

His appeals ruling is set for Nov. 28, Friday.

Police say 6,200 suspects were killed in anti-drug operations that often ended in shootouts, but rights groups estimate the toll of Mr. Duterte’s crackdown to be over 30,000, many of whom were slain under suspicious circumstances by masked men.

Mr. Nazal acknowledged that Filipinos await the tribunal to deliver long-hoped justice for the alleged killings perpetrated under Mr. Duterte’s rule but said that “justice is not vengeance.”

“Many still wait for justice. And we must never diminish that pain, nor forget the cost of silence,” he said. “However, we must also remember that justice is not vengeance, and that compassion is not weakness.”

Mr. Duterte, whose six‑year term empowered the police to act on drug claims, remains a divisive yet popular figure in the Southeast Asian nation, with supporters arguing his anti‑drug campaign was necessary to curb rising criminality. — Kenneth Christiane L. Basilio

DHSUD to build 705,000 houses by 2028

PHILSTAR FILE PHOTO

THE Department of Human Settlements and Urban Development (DHSUD) said that it is seeking to complete about 705,000 housing provision by 2028, in order to complete its 1.1 million target.

“The target is 1.1 million by 2028, so there is still a balance of about 705,000,” Senator Sherwin T. Gatchalian, who heads the Finance committee, told the plenary.

Senator Jose “Jinggoy” P. Estrada questioned the DHSUD over the backlog in government housing construction.

“The government aims to build 1 million houses per year, totaling 6 million units by the end of the term of President Marcos,” he added.

Mr. Gatchalian said that the agency had to revise its targets to 200,000 housing projects each year due to budgetary constraints.

“They had to revise their targets. I think 1 million is very ambitious, and they have to be realistic with the budgetary constraints,” he said. “One million per year seems like it was a very big challenge.”

He added that the agency has only completed 438,000 housing projects in the last three years.

Out of the completed housing projects, 314,000 were from indirect housing, and 113,000 were for housing provisions.

Mr. Gatchalian said that the delay was caused by the failed design of the 4PH or Pambansang Pabahay Para sa Pilipino program and lower budget allocation.

“In the past, the design wasn’t hitting the market that they needed the most, which created delays in the implementation,” he added. “I think the design is the top reason why it hasn’t reached 1 million per year.”

The 4PH program is the government’s flagship housing initiative to address the country’s housing backlog. — Adrian H. Halili

AC Health, Iloilo local government to expand hemodialysis treatment

AYALA Healthcare Holdings, Inc. partnered with the Iloilo Provincial Government and Healthway Medical Network to establish dialysis centers in Iloilo’s district and provincial hospitals.

AYALA Healthcare Holdings, Inc. (AC Health) has entered into an agreement with the Iloilo Provincial Government and Healthway Medical Network to establish dialysis centers in Iloilo’s district and provincial hospitals to improve access to hemodialysis treatment in the region.

Under the partnership, Department of Health (DoH)-compliant dialysis centers with 8 stations each will be established at all 12 district hospitals and the provincial hospital to meet the current demand across the province.

“We look forward to helping Iloilo build a more resilient and inclusive health network for Ilonggos,” AC Health President and Chief Executive Officer (CEO) Paolo Maximo F. Borromeo said in a statement on Wednesday.

The provincial government will provide hospital space, while AC Health and Healthway Medical Network will handle outfitting, equipment, and operational management, adhering to DOH standards. Implementation will happen in phases, with ongoing monitoring of financial and clinical performance to ensure the centers operate effectively.

“Our team is prepared to deliver the infrastructure, equipment, and day-to-day management needed to run these facilities sustainably,” Healthway Medical Network President and CEO Jaime “Jimmy” E. Ysmael said.

Dialysis services in Iloilo remain largely centered in Iloilo City, forcing many patients from distant municipalities to travel frequently for treatment. With over 50,000 residents needing regular dialysis, provincial officials say the new centers aim to meet this critical health demand.

“Our district hospitals serve as the first point of care for many families, and this partnership ensures they are equipped to meet the needs of patients with chronic kidney diseases,” Iloilo Vice Governor Nathalie Ann Debuque said.

The partnership also plans to increase treatment capacity, implement standardized care protocols, and collaborate with PhilHealth and local aid programs to lower costs for patients.

“Progress is not just about buildings rising or roads getting paved, it is about people living better and stronger. More progress for Iloilo is not just development — it means healthier, prouder, and more resilient Ilonggos,” Iloilo Governor Arthur R. Defensor, Jr. added. — Alexandria Grace C. Magno

Baguio local government begins blockchain use for transparency

BAGUIO CITY — The Baguio City government said it has started uploading important and confidential documents to its new blockchain system to improve transparency and protect official records.

Baguio City Administrator Vittorio Jerico L. Cawis said this giant leap to greater transparency aims to keep key government papers secure and harder to tamper with.

The system, created in partnership with BayaniChain Tech Inc. (BYC), will store financial documents, bidding records, and infrastructure reports.

Officials said this will help make information easier for the public to access while ensuring its accuracy.

Mayor Benjamin B. Magalong said blockchain will make government records tamper-proof and more open to the public, helping prevent corruption and build trust between citizens and the local government.

Management Information Technology Division Chief Francis L. Camarao explained that blockchain is a digital system that stores information in a transparent and hacking-resistant way.

Mr. Magalong also signed an agreement with BYC to officially adopt the technology.

The project, Mr. Cawis explained, is part of Baguio’s commitment to the Open Government Partnership, a program that promotes honest and accountable governance. It also supports the city’s long-term goal of becoming a more livable, inclusive, and creative city by 2043. — Artemio A. Dumlao

House panel approves extension of estate tax amnesty to 2028

BW FILE PHOTO

A HOUSE of Representatives committee approved a proposal extending the estate tax amnesty to 2028, citing the need to encourage the settlement of outstanding estate tax liabilities.

The House Ways and Means Committee approved an unnumbered substitute bill consolidating five measures to extend the estate tax amnesty to Dec. 31, 2028, which would require taxpayers to make an initial payment of at least 25% of their outstanding balance.

Legislators said the Bureau of Internal Revenue (BIR) will set the settlement percentage schedules for the remaining balance over up to two years.

Heirs of properties of individuals who died on or before Dec. 31, 2024 will be eligible to avail of the estate tax amnesty, according to a copy of the substitute bill presented during the committee hearing.

“This would give Filipinos the opportunity to settle family documents and property, which can then be used for personal or economic purposes,” Marikina Rep. Romero Federico S. Quimbo, who heads the House tax panel, said in a statement after the bill hurdled the committee. “This will also expand the country’s tax base.”

The estate tax amnesty extension is among President Ferdinand R. Marcos, Jr.’s legislative priorities.

The Department of Finance (DoF) was pushing for an extension to June 30, 2028 instead of the end of that year, Director Maria Karla L. Espinosa said at the same hearing.

She said the DoF also wanted no changes to the coverage expansion, which would now cover those who died on or before December 2024.

“So there will be no expansion of the coverage,” Ms. Espinosa said. “However, (Finance Secretary Frederick D. Go) did mention that we will submit to the wisdom of Congress if they decide to extend the coverage.” — Kenneth Christiane L. Basilio

PPA expects to beat cargo volume, passenger traffic targets for 2025

PHILIPPINE STAR/ WALTER BOLLOZOS

THE PHILIPPINE Ports Authority (PPA) said cargo and passenger traffic this year have been stronger than expected, with targets expected to be exceeded when demand peaks in the fourth quarter.

“PPA remains positive that it will meet its yearend targets. If current trajectories hold, the PPA is confident that it will exceed its target for the year,” the PPA told BusinessWorld via Viber.

The port regulator is targeting cargo throughput of 301.47 million metric tons (MT), while container volume is anticipated to top eight million twenty-foot equivalent units (TEUs) by year’s end.

“The cargo outlook remains favorable, supported by robust demand for construction materials (amid) ongoing infrastructure projects. Growth in mining activities and rising exports of raw minerals are expected to sustain consistent bulk shipment volumes throughout the year,” the PPA said.

For the third quarter, the PPA tallied 83.34 million metric tons of cargo, up 4.7% from a year earlier.

Container traffic for the three months to September increased 11.11% to 2.2 million TEUs, while passenger volume hit 17.41 million, down 7.25% from a year earlier.

Container traffic growth will be driven by efficiency enhancements and modernization, the PPA said, with public-private partnerships and the continued expansion of domestic shipping fleets key drivers of sustained container volume growth across the major ports.

For this year, PPA expects passenger traffic to hit 85.41 million, up 8.37%.

“With the Christmas season approaching, passenger volumes are expected to swell as travelers head to their home provinces. Accordingly, the PPA ports are fully prepared to accommodate this anticipated surge,” the PPA said.

Despite the decline in the third quarter passenger numbers, the PPA remains optimistic about hitting 2025 targets, with domestic tourism expected to pick up towards the end of the year, it said.

“Strong domestic tourism demand, coupled with the sustained performance of the cruise sector, provides a solid foundation for continued growth towards the end of 2025,” he said.

In the nine months to September, the PPA tallied 231.57 million metric tons of bulk cargo volume, up 6.18%, while container traffic rose 11.54% to 6.38 million TEUs.

Preliminary PPA data showed that passenger volume in the first nine months rose 4.27% to 63.06 million.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said port traffic usually picks up in the fourth quarter due to the seasonal increase in business activity towards the end of the year.

“Passenger volumes also peak, as more Filipinos go to provinces for holidays,” he said.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said listed port operators are headed for a strong fourth quarter,

“If trends hold, 2025 could be a strong year for Philippine-listed port operators. Additional growth over coming years will depend on how well they capture expanding trade flows, manage costs, and strategically deploy new capacity,” Mr. Arce said.

For the first nine months, International Container Services, Inc. (ICTSI) attributable net income increased 18.81% to $751.56 million.

Asian Terminals, Inc. (ATI) logged attributable net income of P4.26 billion, up 34.38% from a year earlier.

“The environment appears generally supportive: global trade is holding up, and domestic maritime commerce appears to be recovering from earlier headwinds. That said, downside risks remain — particularly global demand softness or currency volatility — which could hinder volume growth or translate to weaker earnings if not managed carefully,” Mr. Arce said. — Ashley Erika O. Jose