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DTI sets sights on No. 2 position within ASEAN for attracting FDI

PHILIPPINE STAR/ MICHAEL VARCAS

THE Philippines will seek to become a top two destination within the region for foreign direct investment (FDI) by 2028, Trade Secretary Alfredo E. Pascual said.

“Our dream target is to (have) the second highest FDI in ASEAN,” Mr. Pascual said in an interview with ANC on Monday. 

He said the projections are based on the results of government investment promotion missions overseas.

In a separate interview on the sidelines of the Asian Regional Conference in Support of Accelerated Life Sciences Innovation on Monday, Mr. Pascual said that the numbers suggest there is a basis to aspire to higher FDI.

“As of now the total is $71 billion… So, it is possible to aspire to be at a higher level,” he said, citing the combined value of investment leads generated by the Department of Trade and Industry (DTI) and the Board of Investments (BoI).

Mr. Pascual said that for this year, 16 big-ticket projects worth $1.2 billion are expected to flow in, nine of which are already operational.

He said that the remaining seven are registered with the BoI or the Philippine Economic Zone Authority and are awaiting implementation.

In total, he said 15 projects are being processed via the BoI’s Green Lane.

Some of the proposed projects are not registered but covered by “letters of intent or memoranda of understanding with their local partners, so it’s (only) a matter of time the investment (is realized),” he said. — Justine Irish D. Tabile

Gov’t rice dealer subsidy good for ‘only a few sacks’

PHILIPPINE STAR/EDD GUMBAN

By Adrian H. Halili, Reporter

RICE RETAILERS said that the P15,000 in cash aid to compensate them for complying with price controls on the grain is equivalent to a few 25-kilogram sacks of rice.

Rosie B. Quinquin, a rice retailer at Mega Q Mart in Quezon City, said the subsidy is likely to run out before the temporary price controls expire.

“Baka mga ilang sako ng bigas lang ang mabibili nun, hindi nga ata tatagal ’yun sa amin (It might buy a few sacks of rice, and won’t last long), she told BusinessWorld.

Another rice seller said retailers are also dealing with higher market rents, making selling rice a losing proposition.

“Kung kukwentahin, parang kukulangin dahil sa lahat ng mga babayarin dito hindi siya makukuha sa P15,000,” Jennifer A. Tomas said.

The retailers said a 25-kilogram sack of rice costs between P2,000 and P2,500.

“I-ilang sako lang ang mabibibili nun, kasi sa P2,000 pataas mga seven na sako lang ang mabibili ko, pero mahigit pa kasi sa P2,000 ang isang sako (I can only buy seven sacks at P2,000 but less so if the price is more than P2,000), Ms. Tomas said.

Last week, the government issued Executive Order No. 39, which temporarily capped rice prices at P45 per kilo of well-milled rice and P41 for regular-milled.

The Department of Social Welfare and Development (DSWD) meanwhile, was ordered to disburse up to P15,000 in cash aid to small rice retailers.

Both Ms. Quinquin and Ms. Tomas said that they have yet to receive the subsidy.

Geny F. Lapina, an economist from the University of the Philippines-Los Baños, said some rice retailers may end up not receiving the subsidy.

“Given the tight fiscal space… you cannot give it to everyone, so (they) should prioritize the poorest,” Mr. Lapina said in an online briefing.

He added that the government should also aid to poorer farmers and households.

Also on Monday, the DSWD distributed the subsidy to 337 beneficiaries, which had been listed by the Departments of Trade and Industry and Agriculture. The recipients are from Pateros, Navotas, and Parañaque City.

About 15 rice retailers received the subsidy in Pateros, 161 in Navotas, 129 in Parañaque, and 32 in Zamboanga del Sur.

El Niño impact could result in 10-15% sugar output decline — SRA

REUTERS

RAW SUGAR production could decline by 10-15% depending on the severity of the ongoing El Niño, though the official production estimate of 1.85 million metric tons (MT) remains above year-earlier levels.

The estimates were contained in the Sugar Regulatory Administration’s (SRA) Sugar Order No. 1, covering the 2023-2024 crop year.

The SRA said the El Niño has been determined by the government weather service to be active throughout most of the crop year, which runs between Sept. 1, 2023 and to Aug. 31, 2024.

Official weather projections put the peak of the El Niño at late 2023 and early 2024.

SRA Administrator Pablo Luis S. Azcona told reporters last week that sugar production could benefit from an estimated 3,000-hectare increase in land planted to sugar cane.

Sugar production dropped to about 1.8 million MT, in the recently concluded crop year, from 2.1 million MT a year earlier.

The sugar regulator said that 100% of domestic market sugar production will be allocated to millers.

“SRA may from time to time adjust the percentage allocation/distribution to other classes of sugar in accordance to its power and function and to establish domestic, export and reserve allocations,” it said.

It added that total domestic withdrawals from inventory for the crop year are estimated at 2.2 million MT. — Adrian H. Halili

Senate approves salt industry revival measure on 3rd reading

PHILIPPINE STAR/EDD GUMBAN

THE SENATE approved on third reading on Monday a priority bill outlining measures designed to revive the salt industry.

At Monday’s plenary session, the vote was 22 in favor with no abstentions and no votes against for Senate Bill No. 2243, which will lead to the drafting of a Philippine Salt Industry Development Roadmap.

The bill also seeks to promote investment in salt industry development programs, as well as in research and development into new salt production technology.

The bill proposes to establish a national salt council responsible for preparing the five-year salt industry roadmap.

If passed, the measure would reclassify salt as an agricultural product, giving the Department of Agriculture jurisdiction over the industry. The salt industry is currently being overseen by the Department of Environment and Natural Resources.

Senator Cynthia A. Villar, who wrote the bill and heads the committee on agriculture, has said that the salt industry should be developed as an export enterprise and as a means for fisherfolk to supplement their income.

The bill, which is one of the 20 priority measures before Congress, aims to reduce reliance on imported salt.

The House of Representatives passed its version of the measure on May 29. — John Victor D. Ordoñez

Nomura downgrades PHL 2024 growth forecast  

PHILIPPINE STAR/ MICHAEL VARCAS

THE Philippines is expected to post gross domestic product (GDP) growth of 5.8% in 2024 due to weak external demand, elevated inflation, and high interest rates, Nomura Global Markets Research said.

The forecast downgrades to a previous estimate of 6.3%. The new projection is also below the government’s growth target of 6.5-8% next year.

“The revision to our 2024 GDP forecast reflects weakening external demand, led by China, Europe and the US, while persistently high inflation weighs on household purchasing power and consumption spending,” Nomura Global said in a research note written by analyst Euben Paracuelles.

Nomura Global said that 5.8% still reflects a slight improvement from a likely 5.3% expansion this year due to higher public infrastructure spending.

It had earlier slashed its Philippine growth forecast to 5.2% for this year from 5.5%. The projection is below the 6-7% government GDP target for this year.

The economy grew by a slower-than-expected 4.3% in the second quarter, from 6.4% in the first quarter and 7.5% a year earlier.

This was the weakest reading in over two years, bringing average growth to 5.3% in the first half.

“However, private investment faces strong headwinds from high interest rates and weak business sentiment,” Nomura Global said.

Nomura Global also expects the current account deficit to hit the equivalent of 4.1% of GDP this year, before easing to 3.7% in 2024.

This reflects “weak export growth, rising capital goods imports due to infrastructure projects and higher food imports to address domestic shortages, at a time when prices are likely to rise as a result of El Niño and protectionist measures by large food exporters, particularly on rice,” Nomura Global said.

The central bank reported a current account deficit of $4.3 billion in the first quarter, equivalent to 4.3% of GDP, up from $4 billion a year earlier. The current account deficit is projected to hit $15.1 billion, or 3.4% of GDP, this year.

Meanwhile, Nomura Global also raised its Philippine inflation projection to 5.9% for this year from 5.3% previously. It also hiked its 2024 inflation forecast to 3.6% from 3.1%.

“This takes into account the higher-than-expected outturn in August but also the fact that food price inflation risks are materializing early,” it said.

Inflation unexpectedly accelerated for the first time in seven months in August, as food and transport costs rose. Headline inflation accelerated to 5.3% in August from 4.7% in July, ending six months of decline.

Inflation in the seven-month period averaged 6.8%, still above the central bank’s revised 5.6% full-year forecast.

The Bangko Sentral ng Pilipinas (BSP) is unlikely to end its policy pause despite stronger August inflation.

“We maintain our forecast for BSP to leave its policy rate unchanged at 6.25% over the next few months, but see a rising risk of the BSP resuming its hiking cycle,” Nomura Global said, adding that the BSP will likely maintain its hawkish stance.

The Monetary Board last month paused for a third straight meeting, keeping its key policy rate at a near-16 year high of 6.25%. From May 2022 to March 2023, the central bank hiked benchmark interest rates by 425 basis points.

“A continued surge in food and energy prices and a deeper global growth slowdown are downside risks to growth,” Nomura said.

On the other hand, higher foreign direct investment, more structural reforms and accelerated implementation of infrastructure programs may boost economic growth. — Keisha B. Ta-asan

Closed season looms for sardines in November

PHILSTAR FILE PHOTO

THE closed season in the sardine fishery will run from Nov. 15 to Feb. 15 next year, according to the Bureau of Fisheries and Aquatic Resources (BFAR).

The BFAR said that the National Fisheries and Aquatic Resources Management Council had approved the adjustment of the closed fishing season for sardines around the Zamboanga Peninsula.

“Starting this year, the waters of the East Sulu Sea, Basilan Strait, and Sibuguey Bay will be closed to sardine fishing,” BFAR said in a statement.

It added that this would coincide with the implementation of the closed fishing season for small pelagic fish, including sardines in the Visayan Sea.

The previous closed season ran from Dec. 1 to March 1.

“Our policies are continuously subjected to reviews and assessments. If scientific researchers find our measures in need of improvement, then we commit to modifying our programs based on scientific evidence,” BFAR Director Demosthenes R. Escoto said.

BFAR said its Administrative Circular No. 255 from 2014 calls for closed seasons to be “constantly monitored to ensure the sustainability and conservation of sardines.”

Sardine fishing is also banned in northern Palawan between Nov. 1 and Jan. 31, while the closed fishing season for herring and mackerel in the Visayan Sea declared for the Nov. 15-Feb. 15 period.

The Department of Agriculture has said that it is set to import about 34,000 metric tons of fish to curb shortages during the closed fishing season. — Adrian H. Halili

Ban lifted on poultry from US state of South Dakota

ARTEM BELIAIKIN-UNSPLASH

THE Department of Agriculture (DA) said it lifted the ban on imports of poultry products from the US state of South Dakota.

Now cleared for import are domestic and wild birds and their products, including poultry meat, day-old chicks, eggs and semen, according to a memorandum order signed by Undersecretary Domingo F. Panganiban.

The DA had initially barred poultry from the US state last year due to an outbreak of H5N1 Highly Pathogenic Avian Influenza.

“Based on the official report of the USA in the World Organisation for Animal health (WOAH), all HPAI reported events in the State of South Dakota have ended with resolved status and no additional outbreaks are reported,” the agency said.

The DA said the risk of contamination from the imports of poultry meat, day-old chicks, eggs and semen is negligible.

The Philippines imported 249.37 million kilograms of chicken, 197.76 million kilos of duck meat, and 114.42 million kilos of turkey in the seven months to July, according to the Bureau of Animal Industry.

An estimated 86.14 million kilograms of chicken were imported from the US, as well as 94,407 kilos of duck, and 89,421 kilos of turkey. — Adrian H. Halili

Prescription period: A taxpayer’s defense

As taxpayers may be aware, the tax audits conducted by the Bureau of Internal Revenue (BIR) involve a tedious and long process. Taxpayers dedicate plenty of time and effort in retrieving documents and presenting reconciliations to address the BIR’s findings. However, there are instances wherein the taxpayers would later discover that there was actually no point in proceeding with a BIR audit, because the BIR no longer has the right to audit the taxpayer due to prescription.

Court rulings have established prescription as a valid grounds for rejecting audit findings. As a refresher, what is the defense of prescription? 

Prescription can be raised by a taxpayer when the BIR conducts or issues assessment notices beyond three years from the deadline of filing of the tax return as fixed by law or the actual date of filing of the tax return, whichever is later.  This is the regular prescription period. When the BIR raises the issue of fraudulent or false return, or non-filing of tax returns, the applicable prescription period is 10 years from discovery. 

There have been cases in the past in which the BIR brought up the use of the longer 10-year prescription period, as the BIR’s assessment was issued only after the regular three-year period. However, it will be noted that the 10-year period cannot be readily used by the BIR.

In one case involving the sale of real property, the BIR alleged that the taxpayer submitted an inaccurate tax return by reflecting a sale price at less than fair market value, thereby allowing it to apply the 10-year period. However, the taxpayer explained that it was compelled to sell the property at less than market value to minimize losses. The court ruled that the BIR failed to show that the taxpayer filed fraudulently with intent to evade the payment of the correct amount of tax. 

There was also another court case involving a taxpayer engaged in real estate, in which the sale was not recorded in the 1998 financial statements but in 2000.  Here, the BIR claimed that the taxpayer filed a fraudulent tax return in 1998. The BIR also sought to apply the 10-year prescription period; however, the court held that the error committed by the taxpayer stemmed from the wrong application of the rules for recognizing revenue for installment payments, and is not an indication of their intent to evade payment.

In the above case, the court further explained that if there really was an intent to evade payment, the taxpayer would not have reported the transaction and subsequently paid the income tax, albeit in the wrong year.

In another case, the BIR alleged the taxpayer filed a false or fraudulent return after the BIR compared third-party data with the taxpayer’s declaration in its VAT returns. However, the court, considering the circumstances, explained that it did not find enough evidence to prove fraud or intentional falsity by the taxpayer.

A recent case featured an argument raised by the BIR that it did not lose its right to assess the taxpayer for deficiency value-added tax (VAT) and expanded withholding tax (EWT), which had prescribed under the three-year period, by reason of the taxpayer’s non-filing of another return involving the documentary stamp tax, a type of tax that is different from VAT and EWT. In this case, the court was unconvinced by the BIR’s assertion that the taxpayer’s non-filing of the DST return should trigger the 10-year assessment period for all its deficiency tax liabilities. According to the court, a plain reading of the relevant Tax Code provisions would show that the prescriptive periods are reckoned from the last day of each return for each type of tax.

The above cases are just few examples of situations wherein a court decided in favor of the taxpayer after not applying the 10-year prescription period. It will be noted, in summary, that fraud is a question of fact that should be alleged and duly proven. Fraudulent intent to evade the payment of taxes, considering that the same is accompanied by legal consequences, cannot just be presumed.

The defense of prescription available to the taxpayer must be recognized and respected. It is anchored on the rationale that tax assessments should avoid the conduct of the tax audit or investigation for an unreasonable length of time. The taxpayers should have a feeling of security against unwarranted audits that will result in unnecessary time and effort on the part of the taxpayers.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Lorenzo V. Matibag is a manager of the Tax Advisory & Compliance Practice Area of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing firms in the Philippines, with 29 Partners and more than 1000 staff members.

Tweet us: @GrantThorntonPH

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US Navy aircraft deployed to monitor Philippine resupply mission — AFP

AN AERIAL VIEW of the BRP Sierra Madre at the contested Second Thomas Shoal on March 9, 2023. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

THE UNITED STATES Navy deployed its aircraft to monitor the Philippines’ resupply mission to its troops manning the grounded and dilapidated BRP Sierra Madre in Second Thomas Shoal (Ayungin Shoal) of the South China Sea last week, amid an increasingly aggressive presence of Chinese vessels in the area.

In a televised news briefing, Armed Forces of the Philippines (AFP) Spokesman Medel M. Aguilar said they were “aware” that assets from the US Navy were monitoring the resupply mission, which China tried to block through dangerous maneuvers.

“I am aware other countries are monitoring. They are helping us… in increasing the level of our monitoring for maritime domain awareness,” he said. “These assets belong to countries such as the United States.”

On Friday, Chinese Coast Guard (CCG) and maritime militia vessels maneuvered dangerously close to two Philippine Coast Guard (PCG) vessels escorting boats contracted by the Philippine Navy to deliver food and other supplies for troops stationed on the World War II-era ship deliberately grounded in the shoal.

In the course of that incident, reports said that a P-8A Poseidon reconnaissance plane from the US Navy was spotted overhead. A Black Hawk helicopter and an unidentified white aircraft were also seen.

But the presence of the Poseidon plane was not coordinated with the PCG.

“On the part of the Philippine Coast Guard, we are not aware (of the US Navy deployment). We never made a coordination with the US government to carry out this overflight as the resupply operation was ongoing,” PCG spokesperson for the West Philippine Sea Jay Tarriela told CNN Philippines.

China, on the other hand, deployed intelligence, surveillance, and reconnaissance (ISR) capabilities during the resupply mission, in an apparent attempt to boost its South China Sea narrative, Mr. Aguilar said.

“We also monitored the entry of China’s ISR capability — perhaps for their narrative when they talk to their people… because for now, what is dominating the environment are those that are coming directly from sources other than China,” he added.

Geopolitical analysts said the presence of US assets during the resupply mission is a welcome development, noting that it might have helped tame China’s aggression.

A US aircraft was also seen during the successful Aug. 22 resupply mission, which was a follow-up activity after only one of the two resupply boats was able to deliver items to BRP Sierra Madre on Aug. 5 due to China’s dangerous maneuvers and use of water cannons.

“The success of the Philippines’ resupply mission on Sept. 8 can also be attributed to the presence of US Navy aircraft as China sees the presence of its rival in the contested waterways,” Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation, said in a Facebook Messenger chat.

“This is a positive and welcome step that illustrates both allies working and coordinating together quite effectively in such critical areas,” Don Mclain Gill, who teaches foreign relations at the De La Salle University, said via Messenger chat.

Mr. Gill said normalizing such presence may “not only establish cooperation as a norm in the West Philippine Sea but also a precedent for more comprehensive kinds of coordination during resupply missions.”

Last week, before the Sept. 8 mission was made known to the public, Defense Secretary Gilberto “Gibo” Teodoro, Jr. said the US Navy aircraft have been conducting freedom of navigation operations on their own.

STRATEGIC PARTNERSHIPS
The US and its allies, including Australia, have increased their presence in the Indo-Pacific region amid an increasingly belligerent China, which has ramped up its aggression in Philippine waters through provocative actions that stop short of a war.

Last week, Australian Prime Minister (PM) Anthony Albanese signed a strategic partnership agreement with Philippine President Ferdinand Marcos, Jr. during his visit to Manila.

The strategic partnership deal helps ensure “peace in the Indo-Pacific, amid continuing security challenges particularly in the West Philippine Sea,” Stratbase ADR president Victor Andres C. Manhit said in a statement.

Mr. Albanese’s visit — the first by an Australian PM in two decades — “is a landmark initiative that highlights the central geopolitical value of the Philippines in the Indo-Pacific region,” he added.

The US and Australia, along with several other countries, have vowed to make the Indo-Pacific region “free and open” amid what they describe as authoritarian threats.

The two countries, in particular, have been worried about China’s aggression in the South China Sea, which is believed to contain massive oil and gas deposits and through which billions of dollars in trade passes each year.

China claims the South China Sea almost in its entirety using a 1940s map that a United Nations-backed tribunal said has no basis, placing itself in conflict with the Philippines, an American treaty ally, and three other ASEAN members — Malaysia, Brunei, and Vietnam.

Beijing recently released a 2023 version of its standard map, featuring a 10-dash line, whose predecessor, a 9-dash line, has been invalidated by the Permanent Court of Arbitration after Manila filed a protest in 2016.

Arroyo tries to reel Duterte back into national politics

SENATOR BONG GO OFFICIAL FACEBOOK PAGE

FORMER PRESIDENT Gloria Macapagal-Arroyo has encouraged ex-president Rodrigo R. Duterte to take an active role in Philippine politics when they met recently — a photo of which has circulated and stirred speculations on social media.

Seen in the photo of that meeting were former senator and 2022 vice presidential candidate Vicente C. Sotto III, Mr. Duterte’s former executive secretary Salvador Medialdea and Senator Christopher Lawrence T. Go.

In a statement, Mr. Go said Ms. Arroyo invited Mr. Duterte to the “informal” meeting through one of her staff members.

The senator added that since the invitation coincided with Mr. Duterte’s visit to Manila for a medical check-up, Mr. Sotto also grabbed the opportunity to meet with the former president who hails from Davao.

Earlier, Ms. Arroyo also met with former Vice President Maria Leonor “Leni” G. Robredo in a social dinner with “mutual friends from Bicol.”

“We chatted about Bicol politics,” Ms. Arroyo said in a statement about their meeting last week.

Fault lines emerged within the ruling coalition following an alleged House leadership dispute in May involving Ms. Arroyo, a known power broker in Philippine politics, and House Speaker Martin G. Romualdez, a cousin of President Ferdinand R. Marcos, Jr.

Ms. Arroyo was a key backer of the political alliance between Mr. Marcos and then vice presidential candidate Sara Duterte-Carpio during the 2022 campaign.

Mr. Marcos is seen veering away from the foreign policy of his predecessor, Mr. Duterte, who led a pivot to China in 2016 in exchange of investment pledges, few of which have since materialized.

Mr. Duterte has criticized the Philippine leader’s decision to expand the country’s 2014 Enhanced Defense Cooperation (EDCA) with the US, which China has also opposed. — Kyle Aristophere T. Atienza

Tulfo backs confidential funds for DMW

By John Victor D. Ordoñez, Reporter

WHILE CONFIDENTIAL and intelligence funds (CIF) of non-security and defense agencies are under tough scrutiny, a senator said on Monday that the Department of Migrant Workers (DMW) deserve such funding to help its crackdown on illegal recruiters preying on overseas Filipino workers (OFWs).

“If other government agencies can be given these confidential funds, why not the DMW since they need these more,” Senator Rafael “Raffy” T. Tulfo told a Senate hearing on the DMW budget for 2024 and proposed an initial P25-million CIF for the department.

“Other agencies are given hundreds of millions of pesos [in confidential funds], so to be fair we should give the DMW since I see the need to do so,” said Mr. Tulfo.

“There are so many illegal recruiters and illegal recruitment agencies that must be hunted down… There are so many scammers who are victimizing OFWs,” he added.

DMW Officer-in-Charge Hans Leo J. Cacdac told the same hearing that his agency’s surveillance division can only shut down illegal recruitment firms, but does not have the authority to conduct arrests.

Last week, Senate President Juan Miguel F. Zubiri said that their special oversight committee plans to transfer confidential funds from civil service offices to intelligence and defense agencies, noting these bodies would need them to bolster national security.

Senator Joseph Victor “JV” G. Ejercito said more intelligence funds must be given to the Armed Forces of the Philippines and the Philippine Coast Guard amid rising tensions with China.

Senators Aquilino Martin “Koko” D. Pimentel III and Ana Theresia “Risa” Hontiveros-Baraquel had questioned why Vice-President Sara Duterte-Carpio needed P500 million in CIF, much larger than the Defense department’s request of only P87 million and the National Intelligence Coordinating Agency’s P1 million.

‘LEGAL CONCERNS’ OVER CIF
On Monday, the lady senator urged the Vice President to address legal concerns surrounding her CIF last year instead of attacking critics.

“If you’re so confident about those confidential funds, then defend them publicly,” Ms. Hontiveros-Baraquel said in a statement. “Given the significant responsibility of government officials, I demand a shred of competence when it comes to fiscal matters.”

Ms. Duterte had directed her fury at the senator and ACT Teachers Party-list Rep. France Castro for scrutinizing her proposed CIF totaling P650 million.

Ms. Castro questioned why the Office of the Vice President (OVP) spent P125 million in confidential funds last year, when her predecessor — former vice president Maria Leonor “Leni” G. Robredo — did not have such in the OVP’s budget in 2022.

In a statement, Ms. Duterte attacked her critics and praised her backers, but gave little explanation on why the OVP and DepEd had requested confidential funds worth P500 million and P150 million, respectively, for 2024.

Earlier, she said her CIF was allotted for the “safe, secure and successful implementation” of her office’s socioeconomic projects, intelligence gathering and projects supporting the Office of the President. — with Kyle Aristophere T. Atienza

Ombudsman: Corruption cases increasing

FREEPIK

By Beatriz Marie D. Cruz, Reporter

OMBUDSMAN Samuel R. Martires told Congress on Monday that corruption cases are increasing as they exist in “all government agencies” and are particularly rampant in some, including the Bureaus of Immigration (BI) and Customs (BoC).

“If you are talking about incidents of corruption, if it is increasing, it is increasing,” Mr. Martires told the House Appropriations Committee during the hearing on the budget for his office.

His statement was uttered in response to the issue raised by Party-list Rep. Marissa P. Magsino about immigration officers allegedly involved in extortion schemes like the offloading of overseas Filipino workers (OFWs) as well as illegal recruitment and human trafficking.

“A major concern of our OFWs is the recurring offloading of OFWs at the point of departure caused by our immigration officers on suspicion of involvement in illegal recruitment and human trafficking,” Ms. Magsino said.

Yet, out of 32,000 cases of offloaded OFWs, only 472 were found to be victims or human trafficking and illegal recruitment, said the congresswoman.

In response, Mr. Martires said the Office of the Ombudsman cannot disclose any further information about its investigation of government officials and its alleged corrupt practices in monitoring illegal recruitment and human trafficking.

However, he recognized that corruption cases in “all government agencies” keep increasing. “Corruption is becoming an endemic in the Philippines,” Mr. Martires said.

“We have to introduce, as I have always been saying, a subject from kindergarten until college on God-centered values formation,” Mr. Martires told the committee deliberating on the P5.05-billion budget sought by his office. In terms of confidential funds, the Ombudsman is seeking P51.47 million for next year.

Meanwhile, Mr. Martires also called to abolish the Procurement Service of the Department of Budget and Management (PS-DBM), which he cited for serious corruption cases.

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