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Manila open to holding joint patrols with ASEAN — DFA

SCREENGRAB FROM PHILIPPINE COAST GUARD FACEBOOK PAGE

THE PHILIPPINES is open to holding joint patrols with its Southeast Asian neighbors amid increasing tensions with China, the Department of Foreign Affairs (DFA) told congressmen on Tuesday.

“If there are proposals from other Association of Southeast Asian Nations (ASEAN) countries, we would be very open to consider them,” Foreign Affairs Secretary Enrique A. Manalo told a House of Representatives hearing on the agency’s 2024 budget.

“In principle, we believe joint coast guard patrols will be useful,” he said. There are no discussions yet with fellow ASEAN members on potential joint patrols, he added.

Mr. Manalo said the Philippines has discussed joint patrols with the United States, Australia, Japan and China.

“We’re not in a war footing [with China],” he said. “What we are doing is trying to protect our sovereignty in our exclusive economic zone through diplomatic and peaceful means.”

He said the ASEAN would resume negotiations for a Code of Conduct on the South China Sea in Manila on Aug. 22 to 24.

“We’re still committed with China to manage our disputes peacefully,” the country’s chief envoy said, citing President Ferdinand R. Marcos, Jr.’s “friend to all” foreign policy.

Mr. Manalo said filing a resolution before the United Nations (UN) General Assembly to call on China to stop its harassment of Philippine vessels in the South China could politicize the situation.

Philippine senators on Aug. 1 adopted a proposal asking DFA to file the resolution at the UN.

But Albay Rep. Edcel C. Lagman said the Philippines does not need to seek the UN General Assembly’s help to enforce a 2016 arbitral ruling by a Hague-based court voiding China’s claim to more than 80% of the sea.

“The decision is already final and executory,” he told the hearing. “The best [thing to do] is to have a meeting with these kindred countries supporting our claim.”

The South China Sea, a key global shipping route, is subject to overlapping territorial claims involving China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam. Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas.

Meanwhile, Mr. Manalo said the agency has no record of China’s claim that the Philippines had committed to pull out the BRP Sierra Madre, the country’s grounded warship at Second Thomas Shoal. “They have never given us a copy of any written agreement.”

DFA is seeking a P24.06-billion budget for next year, 15.37% higher than this year.

PHILIPPINE PIER
Meanwhile, Senator Francis “Chiz” G. Escudero proposed to build a pier and lodging structures for Filipino soldiers and fishermen at Second Thomas Shoal to increase Philippine presence there.

“If we allow ourselves to get bullied, nothing will happen,” he told CNN Philippines in Filipino. “But if we stand up to the bully, they will back off.”

Mr. Escudero said he would propose a P100-million budget for the Department of Public Works and Highways or Philippine Coast Guard to build the pier.

He said assigning the project to these “civilian agencies” would not add to the militarization of the shoal.

The structures would serve as a shelter for soldiers in the rusting World War II-ear BRP Sierra Madre and fishermen stationed in the area during bad weather, he added.

Philippine Coast Guard spokesman Jay Tristan Tarriela on Monday told ABS-CBN News Teleradyo China had every intent to block the supply mission, dismissing claims that the Chinese Coast Guard had allowed one of the two Philippine boats to reach its outpost.

A handful of Filipino troops are stationed on a rusty World War II-era US ship that the Philippines intentionally grounded at the shoal in 1999 to assert its claims.

Mr. Escudero also opposed calls to train civilians and deploy them as soldiers in the disputed water, saying the government should resolve the sea dispute peacefully.

President Ferdinand R. Marcos said last week said he was not aware of an agreement to remove BRP Sierra Madre from Second Thomas Shoal. “And let me go further, if there exists such an agreement, I rescind that agreement now,” he said.

On Monday, the Chinese Embassy’s Deputy Chief of Mission Zhou Zhiyong urged the Philippines to meet China halfway through diplomatic talks and manage their sea dispute.

Armed Forces of the Philippines (AFP) chief Romeo Brawner, Jr. has said China was using its coast guard instead of its Navy force to harass Philippine vessels because “they want to act short of declaring war.”

Mr. Brawner said the Philippines would deploy more ships and aircraft to secure areas of the sea within its exclusive economic zone. The government might tap naval reservists and Filipino fisherfolk to help establish Philippine presence there, he said.

“This proposal is not designed to anger China or bring us closer to the brink (of war),” Mr. Escudero said.

“This is just to give the President flexibility to act as the chief architect of our foreign policy as he deems fit.” — Beatriz Marie D. Cruz and John Victor D. Ordoñez

House committee approves Taxpayer’s bill of rights and obligations

Bureau of Internal Revenue (BIR) staff check the income tax returns submitted by individuals and business owners at the BIR Office in Intramuros, Manila, April 18, 2022. — PHILIPPINE STAR/ RUSSELL A. PALMA

THE HOUSE of Representatives ways and means committee on Tuesday approved a bill that seeks to specify the rights and obligations of Filipino taxpayers.

The proposed Magna Carta for Taxpayers aims to provide “increased protection” to taxpayers by providing a detailed list of their rights and duties.

The chamber approved in August last year House Bill (HB) 4125 or the proposed Ease of Paying Taxes Act, which included taxpayer’s bill of rights, ways and means committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda told the hearing.

HB 4125 was transmitted to the Senate a month later.

“The Senate split the Ease of Paying Taxes [bill to create a] separate taxpayer’s bill of rights so they are asking the House for concurrence to their version of the taxpayers’ bill of rights,” he said.

The Senate approved its version of the bill of rights on July 31, while Senate BIll 224 or the Ease of Paying Taxes bill is being debated in plenary.

“We decided, just for the sake of national interest, to repeat this deliberation [on the taxpayer’s bill of rights],” Mr. Salceda said. “The leadership is predisposed to just concur with the Senate version… so at least we complied with the requirements of the law.”

“We need to safeguard the rights of law-abiding taxpayers,” Eleanor L. Roque, tax principal at P&A Grant Thornton, said in a Viber message. “Generally, law-abiding taxpayers are the ones enduring the difficulties in dealing with tax authorities. The taxpayer’s bill of rights ensures that taxpayers’ rights to due process are observed.”

Internal Revenue Assistant Commissioner Larry M. Barcelo said the measure is a “guiding principle” in formulating tax policies and increasing taxpayers’ awareness of their rights and duties.

He noted that while these rights are provided for in the 1987 Constitution and other laws, these should be consolidated for the benefit of taxpayers, the tax bureau and other agencies.

Under the bill, violators will get a jail term of six years and fined as much as P1.5 million. Those who violate the taxpayer’s right to quality service and assistance will be punished under the Code of Conduct and Ethical Standards for Public Officials and Employees.

The bill also seeks to integrate the taxpayer’s bill of rights and obligations in public and private schools.

Taxpayer’s bill of rights and obligations should also be posted at all offices of revenue authorities, whether printed or digital, and should be both in English and Filipino.

The Senate version of the bill includes a provision creating the Office of the National Taxpayer Advocate to help taxpayers. — Beatriz Marie D. Cruz

Cash program to be expanded by gov’t

PHILIPPINE STAR/EDD GUMBAN

THE GOVERNMENT expects to complete the review of the beneficiaries of its conditional cash transfer program by September, the Social Welfare department said on Tuesday, as it looks at the situation of Filipinos who had not been considered poor before the coronavirus pandemic.

The Department of Social Welfare and Development (DSWD) is looking at 1.4 million families, including 700,000 people who had been tagged as nonpoor before the pandemic, Secretary Rexlon T. Gatchalian told a news briefing.    

“Come the end of September, the reassessment is complete, and what we can do next is start paying them,” he said.

He said the 700,000 people previously tagged as nonpoor had been heavily affected by the pandemic, pulling them back into poverty.    

Another 700,000 people had not been assessed because of pandemic-induced lockdowns, he said. “Combining the numbers, we’re looking at close to around 1.4 Filipino families,” Mr. Gatchalian said.

He said the department is conducting reassessment to ensure the list is filtered.

Mr. Gatchalian said the cash transfer program called Pantawid Pamilyang Pilipino Program (4Ps), accounts for half of the agency’s budget for 2023.

“By the end of the year, after this assessment is done, we believe that we can fully utilize the budget allotted for the 4Ps,” he added.

The program seeks to improve the nutrition and education of “extremely poor households,” especially children aged up to 14 years.

The agency’s poverty database program, which is the basis of 4Ps beneficiaries, will end this year to make way for the full implementation of the community-based monitoring system starting next year, Mr. Gatchalian said.

The local statistics agency will handle the new system.

Poverty incidence among Filipinos rose to 18.1% in 2021 from 16.7% in 2018, according to the Philippine Statistics Authority. This was equivalent to 19.992 million Filipinos living in poverty.

The government seeks to reduce the poverty incidence rate to 16.4% this year, to 13.2% by 2025 and to 9% by 2028.

In an October 2022 report, the Commission on Audit said 90% of 4.2 million active 4Ps beneficiaries who have been in the program for seven to 13 years remained poor. It warned that most of them might get delisted.

The anti-poverty program received P780.71 billion in funding between 2008 and 2021.

Social welfare experts have said 4Ps should be complemented with other anti-poverty efforts and should never be treated as a standalone program.

President Ferdinand R. Marcos, Jr. earlier asked the Social Welfare department to continue calibrating 4Ps and strengthen other social protection initiatives.

The agency is also implementing the so-called Assistance to Individuals in Crisis Situation program, which Mr. Gatchalian said has used about half of its funding.

He also cited the pension program for senior citizens and supplemental feeding programs at daycare centers. — Kyle Aristophere T. Atienza

Ex-Election chief’s house bombed 

COTABATO CITY — A grenade blast ripped through the residential yard of former Election Chairman Sheriff Abas early on Tuesday, causing panic among his family and neighbors. 

Hours earlier, the chief of the general service office of the Cotabato City government, Pedro Tato, Jr. and his driver were wounded in an ambush by gunmen. 

Investigators were still trying to identify the two men riding in a motorcycle who bombed the house of Mr. Abas, the scion of a big Moro clan in Maguindanao del Norte province.  

Investigators and police ordinance experts collected fragments of the grenade that one of the two suspects had set off at the entrance of his house along Narra Street in Rosary Heights 3. 

Police led by Major John Vincent Bravo were separately investigating the ambush of Mr. Tato near the Cotabato Regional Medical Center. — John Felix M. Unson

POGO owes gov’t P2.2B 

REUTERS

SENATOR Ana Theresia “Risa” Hontiveros-Baraquel on Tuesday scored Philippine Amusement and Gaming Corp.’s (Pagcor) failure to collect P2.2 billion in unpaid dues from a Philippine offshore gaming operator (POGO) that had closed shop. 

“POGO’s don’t have redeeming qualities anymore,” she said in a statement in Filipino. “Money that should have been collected for the nation has turned into stone.” 

The Bureau of Internal Revenue should work with Pagcor in ensuring that the dues are collected, Senator Grace Poe-Llamanzares said in a separate statement. 

“They don’t only cause chaos, they also steal from the nation’s coffers,” she said in Filipino. “If this POGO is a legitimate company, in the first place, then regulators should have a way of finding it and making it settle its liabilities.” — Norman P. Aquino

Higher tourism budget sought 

CHRISTINA G. FRASCO — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE DEPARTMENT of Tourism (DoT) on Tuesday asked congressmen to give it a P15.3-billion budget for next year, citing its big contribution to the Philippine economy. 

DoT is “in dire need of a budget that is equitable to its contribution to the coffers of the national economy,” Tourism Secretary Christina G. Frasco told a House of Representatives budget hearing. 

The agency was given a P2.99-billion budget for 2024, lower than its P3.73-billion budget this year. 

“The reduction in the budget of the department as well as our attached agencies will of course adversely affect the projects that we have forthcoming in 2024,” Ms. Frasco said. 

The Philippines has posted a 66% recovery rate based on international tourist arrivals, according to the Tourism chief.  

House Appropriations senior vice chairperson and Marikina Rep. Stella Luz A. Quimbo said the agency must show that it could “fully absorb” its budget. — Beatriz Marie D. Cruz

DA urged to boost rice stocks 

Workers load sacks of flour in a delivery truck in Manila, July 11, 2022. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE SAMAHANG Industriya ng Agrikultura on Tuesday urged the Department of Agriculture (DA) to start buying palay or unmilled rice from local farmers to ensure ample stocks amid the El Niño threat.  

“Instead of resorting to imports that will only benefit importers and favored traders, the DA, through the [National Food Authority] should start buying palay from our rice farmers,” group Executive Director Jayson H. Cainglet said in a Viber message.  

He said the NFA’s P7-billion budget could buy about 5.6 million bags of palay with a farmgate price of P25 a kilo.  

The Rice Tariffication Law stripped the NFA of its power to import rice and has been reduced to maintaining an emergency inventory from local farmers.   

Earlier, some industry groups urged DA to visit warehouses as they accused rice traders of price manipulation to justify the increase in retail prices.  

“Visiting warehouses sends the wrong signal that there is an ongoing hoarding or shortage of rice,” Mr. Cainglet said. “No less than the President has assured us of enough stocks until the end of El Niño,” Mr. Cainglet said. — Sheldeen Joy Talavera

Locsin works assessed 

DAVAO CITY — The old Davao International Airport (DIA) building in Sasa and the Waterfront Insular Hotel Davao are important cultural properties, according to the Davao Historical Society, citing the National Commission for Culture and the Arts (NCCA). 

An NCAA team visited the city last week to look at the state of the works of the late Leandro V. Locsin, the late national artist for architecture (1990) who designed the buildings, Davao Historical Society Vice President Patricia Melizza Bello Ruivivar told reporters on Monday. 

These properties get priority government funding, protection and incentives for private support such as tax breaks, and a heritage marker, she added. 

Under the National Cultural Heritage Act of 2009, works of a national artist are presumed to be important cultural property, which means these have exceptional cultural, artistic and historical significance. 

“Even if it is not officially declared, it is presumed under the law as long as it was made by a national artist,” Ms. Ruivivar said. — Maya M. Padillo

Baguio councilors buck charter 

BAGUIO CITY — The 15-member Baguio City Council on Monday asked its legal office to draft a petition seeking to nullify the city’s revised charter. 

The revised Baguio City charter lapsed into law on April 11, 2022. 

The councilors have said the new charter puts Baguio at a disadvantage. For one, under the law, locators inside the Camp John Hay reservation are exempted from paying taxes to the city after it was transferred to the Bases Conversion Development Authority. 

Councilor Jose Molintas said some provisions of the new charter do not serve the city’s interests. Last year, the Baguio City Council passed a resolution asking then President Rodrigo R. Duterte to veto the bill. — Artemio A. Dumlao

CAVITEX raising tolls starting Aug. 21 following TRB approval

PHILSTAR FILE PHOTO

THE Toll Regulatory Board (TRB) approved a toll increase for the 14-kilometer Manila-Cavite Expressway (CAVITEX), which is to take effect on Aug. 21.

The decision clears the way to implement a 2017 periodic toll adjustment for the expressway.

Under the toll operation agreement between the TRB, Metro Pacific Tollways Corp. (MPTC) unit Cavitex Infrastructure Corp. and the Philippine Reclamation Authority, CAVITEX toll rates are allowed to be periodically adjusted every three years.

Starting Aug. 21, class 1 vehicles or cars and SUVs traversing CAVITEX from MIAA Exit to Longos, Bacoor will be charged P35, while class 2 vehicles or light trucks and buses and class 3 vehicles or trucks and lorries will have to pay P70 and P104, respectively.

Meanwhile, motorists traveling from Longos, Bacoor to Kawit Toll Plaza will pay P73 for class 1, P146 for class 2, and P219 for class 3. 

“We recognize the impact of the toll increase on public utility vehicle (PUV) drivers. That’s why we are reactivating our Abante Card program to provide some relief during this transition,” MPTC President and Chief Executive Officer Rogelio L. Singson said in a statement.

Under the program, class 1 and class 2 PUV drivers can enjoy the old toll rates for up to three months.

“We believe this program will help alleviate the financial burden on our valued PUV drivers and provide them with a smoother transition during this time. We remain committed to supporting the PUV community and ensuring their continued success on the road,” Mr. Singson said.

To make use of the relief program, operators will have to register for the toll road’s radio-frequency identification payments system.

“Once enrolled, the program will automatically apply the reprieve for a duration of 90 days, starting from the first day of the implementation of the new toll rates,” MPTC said.

MPTC is the tollways unit of Metro Pacific Investments Corp. one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile

Metro Pacific, San Miguel in partnership for P72 billion worth of expressway projects

METRO PACIFIC Tollways Corp. (MPTC) and San Miguel Corp. said they signed a memorandum of agreement to design, build and operate the Cavite-Batangas Expressway (CBEX) and Nasugbu-Bauan Expressway (NBEX) projects, which are valued at P72 billion.

“Together with San Miguel, we envisage a future where our CBEX and NBEX can help pave the way for connectivity and economic growth in the Calabarzon region,” MPTC Chairman Manuel V. Pangilinan said in a statement on Tuesday.

“We look forward to leveraging our respective strengths for the realization of this vital infrastructure project,” he said.

Under the agreement, the two companies will be developing an almost 80-kilometer toll road that will connect MPTC’s Cavite-Laguna Expressway (CALAX) to Bauan, Batangas.

The joint project will encompass the 27.06-kilometer CBEX that will link CALAX Silang (Aguinaldo) Interchange to Nasugbu, Batangas and the 60.9-kilometer NBEX which will connect Nasugbu, Batangas to Bauan, Batangas.

“Our shared commitment to nation-building has led us to this historic collaboration. This collaboration stands as a testament to what we can achieve when we are united in purpose,” San Miguel President and Chief Executive Officer Ramon S. Ang said.

The two companies expect to break ground on the project next year with CBEX and NBEX expected to be completed and operational three years after, or in 2027.

In 2018, MPTC was granted the original proponent status for the 50.4-kilometer Cavite-Tagaytay-Batangas Expressway (CTBEX) project by the Department of Public Works and Highways, some segments of which overlapped with San Miguel’s unsolicited proposal for CBEX and NBEX, which were approved by the Cavite and Batangas governments.

“Both projects share the common goal of connecting the provinces of Cavite and Batangas through Tagaytay City and MPTC and SMC have come together as partners in this significant venture,” MPTC said.

Meanwhile, the two companies said the closing of the deal is subject to completion of certain conditions, which include the execution of procurement approvals and definitive agreements. 

MPTC is the tollways unit of the Metro Pacific Investments Corp. one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile

Easier procurement rules seen curbing underspending   

BUDGET SECRETARY AMENAH F. PANGANDAMAN — COURTESY OF DEPARTMENT OF BUDGET AND MANAGEMENT FACEBOOK PAGE

THE Department of Budget and Management (DBM) said on Tuesday that easier procurement laws, including an upcoming amendment to the procurement law, are expected to curb government underspending in 2024.

At the Development Budget Coordination Committee briefing of the proposed 2024 budget before the Senate finance committee, Budget Secretary Amenah F. Pangandaman said the Government Procurement Policy Board is working on simplifying the law’s implementing rules and regulations to address procurement bottlenecks.

“We are taking steps to address government spending and budget utilization,” M. Pangandaman said.

“We will be presenting our amendments to the Government Procurement Act to the President next week… We don’t have the bill yet, but we have the specific amendments.”

Senator Loren Regina B. Legarda had inquired about possible government underspending continuing into next year.

In his second address to Congress last month, President Ferdinand R. Marcos, Jr. called for changes to the procurement law.

Ms. Pangandaman said the proposed P5.768-trillion national budget for 2024 was optimized to put implementation-ready projects front and center.

The DBM estimates that in the first half, the government had failed to use P170.5 billion in budget allocations.

Ms. Pangandaman said procurement had been hindered by issues like the late delivery of goods due to disqualified bidders, and failure of suppliers and creditors.

Ms. Pangandaman said the DBM has been pressing agencies to procure as soon as possible to ensure the implementation of their flagship programs.

She added that the DBM plans to adopt a government purchase card for government agencies as an alternative payment solution for procuring goods and services.

The card aims to cut the time needed to liquidate government transactions and to promote reduced cash handling by government agencies.

The DBM will also fast-track the issuance of allotment orders to allow agencies to start the execution of programs as soon as the budget becomes effective, Ms. Pangandaman said.

The DBM said in July that it would seek to fully digitize public procurement to expedite the delivery of basic services and reducing costs.

Earlier this month, Ms. Pangandaman said the DBM will review the spending performance of government agencies and require them to submit “catch-up” plans to make up for delayed spending.

The National Government’s budget deficit narrowed 18% to P551.7 billion at the end of June due to the spending slowdown. Government spending rose 0.42% year on year to P2.41 trillion in the first half, missing the spending target by 6.6%. — John Victor D. Ordoñez

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