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Low-cost housing target set at 1M units/year

PHILIPPINE STAR/ BOY SANTOS

THE Department of Human Settlements and Urban Development (DHSUD) said it hopes to augment the affordable housing stock by 1 million homes a year, including those built by the private sector.

The target was set to address the housing backlog, estimated at 6.5 million homes, the department said.

Secretary Jose Rizalino L. Acuzar said on the first day of the 30th National Developers Convention that President Ferdinand R. Marcos, Jr. has issued a directive to implement the ‘Pambansang Pabahay Para sa Pilipino’ program.

“Kailangan gumawa ng gobyerno, sa utos ni Presidente Marcos, ng 1 million houses a year para matapos ang backlog ng housing (The government, on President Marcos’ orders, needs to build 1 million homes per year to clear out the housing backlog),” Mr. Acuzar told reporters.

The program focuses on affordable and accessible homes in selected areas, with the goal of clearing up the backlog before Mr. Marcos steps down. The program will require P1 trillion to realize at a cost of P1 million per home, which will need to be subsidized.

The DHSUD proposes a subsidy budget of P36 billion a year to cover the difference between commercial mortgage rates and the expected preferential interest for home buyers of 1%.

“The intention is to bring interest rates to 1%, so that’s where the interest subsidy will come in. The market rate that we’re looking at for this marginalized sector is 6%,” Human Settlements Undersecretary Roberto Juanchito T. Dispo said.

“The subsidy (of) P36 billion, will cover the 5%, so effectively it be just down to 1%,” Mr. Dispo added.

DHSUD also plans to tap the private sector to participate in the Pambansang Pabahay program.

“The idea is not to be dependent fully on the government. The idea is to tap the private sector to participate in this program,” particularly banks, Human Settlements Undersecretary Henry L. Yap said on the sidelines of the event.

“Private banks have already signified their intention but it’s not yet in writing. But for government institutions (we have signed) memoranda with many of them,” Mr. Yap said.

“We’ve been going around talking to the developers. They have expressed their support for this project. The SHDA (Subdivision and Housing Developers Association) is one of the housing organizations that we’ve been meeting with and many of them have expressed support,” Mr. Yap said. — Justine Irish D. Tabile

Gov’t signals slowdown on devolution, LGUs to take over health, welfare first

PHILSTAR FILE PHOTO/ RELEASE JBROS CONSTRUCTION CORP.

THE National Government said the functions it will immediately devolve to local government units (LGUs) are local infrastructure projects, basic healthcare, social welfare, and agricultural extension.

The so-called “small-ticket” items to be shed by the National Government point to a prioritization of activities to be handed over to LGUs rather than a full-scale devolution by 2024, which was the timetable set by the previous administration, amid concerns over whether LGUs are properly equipped to take responsibility for such functions.

The Committee on Devolution (ComDev), which is overseeing the process, said a technical working group has been formed to study extending the transfer period for more intricate functions.

“The devolved functions are… core expenditure responsibilities, and that is where the functions must be devolved,” Finance Secretary Benjamin E. Diokno was quoted as saying in a statement.

The ComDev met on Monday to discuss the implementation of the Supreme Court’s Mandanas-Garcia ruling, including amendments to Executive Order (EO) No. 138, issued by the previous administration, which set the devolution timeline.

Under EO No. 138, functions currently performed by the National Government that enjoy funding of P234.4 billion should be fully devolved to LGUs by 2024.

Before the ComDev meeting, the Department of Budget and Management (DBM) had called for a deferral of the transfer of infrastructure and other “big-ticket” items to LGUs, because they require specialized expertise. It proposed a devolution period for such items of 2025-2027.

“Devolution should be contingent on the LGU, development priorities, capacity, and availability of resources. Devolution should be transitioned based on magnitude, technical requirement, and nature of programs, projects and activities,” Interior and Local Government Secretary Benjamin Abalos, Jr. was quoted as saying.

“Moving forward, we will continue to strengthen coordination and extend necessary assistance to empower our LGUs in accordance with the Local Government Code and the Mandanas-Garcia ruling,” added Budget Secretary and Committee Chair Amenah F. Pangandaman. “We believe that effective devolution will be achieved if our LGUs are fully capacitated, both technically and financially.”

Also on the agenda during Monday’s meeting were updates on the submission and evaluation of Devolution Transition Plans (DTPs), as well as a review of the functions, services, and programs, activities and projects for full devolution.

“This is another crucial step towards our goal of pursuing full devolution and our manifestation of collective efforts towards fulfilling the marching order of the President to get this moving,” said Ms. Pangandaman. “So far, we continue to set important things in motion with the updates on the submission and evaluation of the National Government Agency (NGA) DTPs.”

At the time of the meeting, the DBM had received 18 out of 20 expected DTPs. Those of the Department of Health and the Commission on Population and Development (POPCOM) have been approved.

National Economic and Development Authority (NEDA) Secretary and POPCOM Board Chairman Arsenio M. Balisacan reiterated the overriding goal of achieving equity in the devolution process.

“An important contribution of the proposed amendment is the clarification and the guiding principles that might clear certain instances… so we can ensure that everyone, regardless of their place of residence, has equal opportunity for equal economic or social opportunities,” Mr. Balisacan said.

“With the Mandanas ruling now in effect, NEDA will work to improve national, regional, and local coordination, and we will need to strengthen our efforts at the subnational level,” he added in a Senate committee hearing on Wednesday. “This entails supporting the implementation of the devolution policy, strengthening activities, and providing support to LGUs in development planning.”

The Mandanas ruling granted LGUs a larger share of the national taxes by expanding their 40% cut of “internal revenue,” narrowly interpreted by previous governments to mean the collections of the Bureau of Internal Revenue, to also include revenue from Customs duties and other National Government collections.

As a result of the ruling, LGU allocations rose 37.89% to P959 billion in 2022, with the LGUs’ take based on National Government collections from three years prior. However, because government revenue took a hit from the pandemic in 2020, the allotment for next year is estimated to fall 14.47% to P820 billion.

“The ComDev agreed to form a technical working group to consider the inputs of the LGU leagues and convene after two weeks to approve the draft amendatory EO,” according to a statement issued by the DBM.

“The secretariat will continue to engage with the stakeholders in the next two weeks to finalize the draft for presentation to the President.”

The ComDev is composed of the DBM, NEDA, the Departments of Finance and Interior and Local Government, the Executive Secretary, the League of Provinces, Cities, and Municipalities of the Philippines, the Liga ng mga Barangay sa Pilipinas, and the Union of Local Authorities of the Philippines. — Diego Gabriel C. Robles

Further P11.56B released for healthcare worker allowances

THE Department of Budget and Management (DBM) said it released a further P11.56 billion to the Department of Health (DoH) to fund the health emergency allowance claims of public and private healthcare workers between January and June.

The Special Allotment Release Order (SARO) was approved on Wednesday for the One COVID-19 allowance (OCA) of over 1.6 million eligible government and private-sector health workers who were on duty in the first half of the year, the DBM said.

“Our healthcare workers deserve all the support and assistance from their government. They’ve been risking their lives to save and protect our people amidst this still prevailing pandemic. This is the least we can do for them,” Budget Secretary Amenah F. Pangandaman was quoted as saying.

According to the DBM, the P11.56 billion will cover the unfunded maintenance and other operating expenses (MOOE) amounting to P18.72 billion owed to 2.6 million approved claimants by the DoH from January to June.

The P18.72 billion includes P3.75 billion for personal services (covered healthcare workers who are government employees) and P14.98 billion for MOOE (for nonpermanent government healthcare workers and private healthcare workers).

Some P7.92 billion was released on Feb. 14 to cover 995,671 claims. Of this total, P3.42 billion was for MOOE, and P4.5 billion for personal services.

OCA is authorized by DoH Special Provision No. 14, or Benefits for COVID-19 Workers, as provided for by the 2022 General Appropriations Act, the DBM said.

At an online forum on Tuesday, DoH Officer-in-Charge Maria Rosario S. Vergeire said the department hopes to start disbursing the money by next week.

Republic Act No. 11712, or the Public Health Emergency Benefits and Allowances for Health Care Workers Act, replaced the SRA with a Health Emergency Allowance, with the latter now determined by risk exposure.

On Monday, the DBM also released a SARO amounting to P1.04 billion to cover the SRA of eligible public and private health workers who were involved in the pandemic containment effort between Sept. 15, 2020 and June 30, 2021.

However, OCA accumulated over the past years to about P64 billion, which has not been released in the absence of requests for funding to the DBM. — Diego Gabriel C. Robles

Marcos: Private help needed to ‘green’ economy

PRESIDENT Ferdinand R. Marcos, Jr. called on the private sector to help in the “greening” of the economy, calling the building of resiliency to climate change a top administration priority.

Government agencies, private companies, non-government organizations, and the academic community must work together “to steer our practices and systems towards a greener direction,” Mr. Marcos said at a forum organized by the Department of Environment and Natural Resources (DENR).

“I have always believed that there is no greater shared responsibility than the care of our environment,” he said.

“Let us identify each sector’s unique and shared challenges, bolster cooperation and gather information and priorities for possible inclusion in the DENR’s policy agenda and to be included in the multi-year roadmap for programs, activities and projects,” he added.

Participants at the DENR-hosted event are expected to provide their input on climate and disaster resilience policy.

“We ensure that the initiatives we will take will enable us to become smarter, more responsible, more sustainable in all that we do,” Mr. Marcos said.

At the United Nations General Assembly last month, Mr. Marcos urged that developed nations provide financing to poorer countries to address the “historical injustice” of climate change, which is thought to have been caused by the countries that industrialized early.

Mr. Marcos also asked them to transfer adaptation technology to vulnerable nations like the Philippines. — Kyle Aristophere T. Atienza

Senator floats proposal to refund power bill cost-of-capital charge

PHILSTAR FILE PHOTO/ SENATE PRIB/JOSEPH VIDAL

THE Energy Regulatory Commission (ERC) has been asked to consider ordering a refund of a cost-of-capital charge on electricity as a means of offsetting the impact of rising power bills.

Senator Ana Theresia N. Hontiveros-Baraquel said in a statement that the weighted average cost of capital (WACC) charge, which compensates power companies for the interest on funds they need to borrow to build power projects, could be another means of providing relief for power users.

She issued the statement after the ERC announced the reset of transmission wheeling rates, which the regulator said is likely to reduce transmission charges.

Transmission wheeling rates are the direct charge for the use of the grid network that delivers electricity.

“The beginning of the reset process is good news for fairer transmission wheeling rates which are part of our monthly electricity bill,” Ms. Hontiveros said. “But why have one piece of good news, when we can have two? Let us also start the process of refunding consumers for the unreasonably high 15% weighted average cost of capital being unduly collected since 2015.”

Ms. Hontiveros has been calling for the refund since 2019, calling the charge “outrageously excessive” compared to corresponding rates in Indonesia (2.3%) and Thailand (7.2%).

Ms. Hontiveros also urged the ERC to alter the WACC rate structure in light of expenses claimed by the National Grid Corp. of the Philippines (NGCP) and other entities, which were questioned during previous Senate investigations, including a P369 million spending item for entertainment and P672 million for public relations in 2017 and 2018.

“Previous flawed policies have allowed the NGCP to fork over billions to their shareholders at the expense of power consumers,” she said. “It is time for the consumer to benefit from the new decisions of the ERC.”

Also on Wednesday, Senator Sherwin T. Gatchalian said that the reset of power transmission rates by the ERC, delayed for 10 years, could provide some respite to consumers.

“ERC’s review of transmission rates is long overdue. I have long been following up on this from the ERC,” he said. “I’m confident that this would lower transmission rates and ultimately residential bills.”

Mr. Gatchalian also said the decision will enhance consumer confidence in the fairness of electricity charges. — Alyssa Nicole O. Tan

USDA raises PHL rice import forecast to 3.4 million MT

REUTERS

PHILIPPINE rice imports are expected to rise to 3.4 million metric tons (MT) in the July 2022-June 2023 period, the US Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) said, upgrading its previous forecast of 3.3 million MT.

“Rice is a highly political crop in the Philippines, and supply sufficiency is very important for the government. Lower-income consumers can subsist even on rice with minimal viand,” the FAS said in a report.

In the nine months to September, the Bureau of Plant Industry (BPI) said its estimate for rice imports was 2.91 million MT.

According to the USDA report, the FAS forecast for milled rice production was also cut to 11.98 million MT from 12.41 million MT over its forecast period due to the damage caused by Typhoon Karding (international name: Noru).

According to the Department of Agriculture, farm damage inflicted by the storm was P3.12 billion so far.

Rice was the most affected crop with losses worth P2.05 billion and the volume of lost production at 134,205 MT, spanning 163,162 hectares.

“Typhoon Noru made a landfall on Sept. 25 and destroyed rice crops ready for harvest in Central Luzon, most especially in Nueva Ecija, the country’s rice granary,” according to the report.

“To compensate for the expected rice supply shortfall, (we) forecast increased rice imports to 3.4 million MT,” it added.

It also cited the need for more imports due to a 3% drop in yields amid rising fertilizer prices.

“The fertilizer price data from the Fertilizer and Pesticides Authority shows fertilizer prices have increased significantly, although urea prices have tapered off a bit since May 2032… fertilizer exports to the Philippines have declined, which has pushed rice prices up,” it added.

The agency also estimated rice consumption to hit 15.6 million MT.

The FAS forecast corn imports to come in at 1.7 million MT, higher than its earlier projection of 900,000 MT. It said inbound shipments are expected to have risen after the issuance of Executive Order (EO) No. 171.

EO 171 extended lower tariffs on corn and other commodities to the end of the year.

“It modifies favorably the market access for corn… the corn minimum access volume for 2022 is still at 216,940 MT. Among feed millers and animal farmers, corn is still the most preferred energy source if available,” the FAS said.

It also projected corn production during its forecast period to decline to 7.9 million MT from 8.3 million MT, also driven by low fertilizer application due to soaring prices.

“The production decline is a combination of area harvested and yield declines,” it added.

Corn feed consumption is expected to increase by 400,000 MT to 7.5 million MT, according to the report.

“Additionally, broiler production is expected to rebound by 2% in 2023, which should nudge corn consumption upward,” it added. — Luisa Maria Jacinta C. Jocson

DPWH signs tunnel engineering deal with Japanese ministry

PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Public Works and Highways (DPWH) said on Wednesday that it signed a cooperation deal with Japan’s Ministry of Land, Infrastructure, Transport and Tourism involving tunnel engineering and road infrastructure development.

Public Works Secretary Manuel M. Bonoan said the deal will “open many opportunities for strategic partnership and collaboration to support current efforts of the administration of President Ferdinand R. Marcos, Jr.”

This will “strengthen mutual cooperation, business relations, and capacity development in relation to the construction and operation & maintenance (O&M) of road tunnels and related facilities in the ongoing Davao City Bypass Construction Project and the proposed Dalton Pass East Alternative Road Project,” the department said in a statement.

The Davao City bypass is a 45.5-kilometer road project funded by Japanese official development assistance (ODA) via a special terms for economic partnership loan from the Japan International Cooperation Agency (JICA).

The department said the project will “mitigate congestion in Davao City, with the travel time between barangay Sirawan in Toril District, Davao City and barangay J.P. Laurel in Panabo City of one hour and 44 minutes via the Pan-Philippine Highway Diversion Road to be reduced to 49 minutes via the Davao City Bypass.”

Meanwhile, the Dalton Pass East Alternative Road Project runs for 23 kilometers with 6.06 kilometers of tunnel sections across three municipalities in Nueva Vizcaya and Nueva Ecija.

The DPWH said JICA is the Philippines’ largest bilateral ODA partner with ongoing development cooperation projects nationwide in infrastructure development, disaster risk reduction, health, education, and agriculture. — Arjay L. Balinbin

House adds P77.5 billion to 2023 budget bill

PCOO

THE House of Representatives approved on Wednesday an additional P77.5 billion for the 2023 General Appropriations Bill (GAB), with augmented allocations for health, education, transportation and other social services.

The extra allocations were added during the period of amendments prior to the ratification of the 2023 GAB, Speaker Martin G. Romualdez said in a statement.

Agencies receiving additional funding were the Department of Health at P20.25 billion, the Philippine General Hospital P500 million, the Department of Education’s classroom building program P10 billion and its special education programs P581 million.

Also added was P10 billion for the Department of Public Works and Highways’ water system projects in underserved barangays.

Another P12.5 billion was added to the budget of the Department of Social Welfare and Development’s Assistance programs, with P5 billion going to the Individuals in Crisis Situations program, P5 billion to the upgraded senior citizen pension and P2.5 billion to the sustainable livelihood program.

Department of Transportation programs to address the rising cost of fuel, such as the fuel subsidy program, Libreng Sakay and bike lane construction were also granted an additional P5.5 billion.

A total of P5 billion was added to the budget for training and scholarship programs of the Technical Education and Skills Development Authority, P5 billion to the Commission on Higher Education’s Tulong Dunong Program, and P5 billion to the livelihood and emergency employment programs of the Department of Labor and Employment.

The national broadband project of the Department of Information and Communications Technology was given an additional P1.5 billion, while the Commission on Elections’ new headquarters project got P500 million.

Some P300 million was granted to the Philippine National Police for training while P250 million went to the Department of Trade and Industry to support the creative industries as mandated by Republic Act 11904.

The Energy Regulatory Commission got an additional P150 million, the Office of the Solicitor General P147 million and the National Electrification Administration P50 million.

 “I’m pleased that the House-approved version of the General Appropriations Bill responds to the most urgent needs of Filipinos,” Mr. Romualdez added. “We need to ensure that social services are sufficient for the greater good of our countrymen, especially those in dire need of basic social services to survive.”

Party-list Representative Elizaldy S. Co, who chairs the Appropriations Committee, said that the additional allocations were sourced from programs that can be implemented in later years. — Kyanna Angela Bulan

Low NEDA review threshold seen deterring investment in local projects

PHILSTAR FILE PHOTO

INVESTORS seeking to build local government transport infrastructure are deterred by the low threshold for triggering mandatory National Government review, a feature of the Build-Operate-Transfer (BOT) law, a Senate committee hearing heard.

“No foreign investor would endeavor to enter because there seems to be a legal obstacle here… While (local government units) have autonomy, in reality they do not have it because projects costing P200 million, for instance, would have to go through the NEDA-ICC (National Economic and Development Authority – Investment Coordination Committee),” Senator Francis N. Tolentino said at a budget hearing for NEDA at the Senate Finance Committee.

Mr. Tolentino said the National Government’s limited knowledge of local conditions also delays projects and discourages participation by private-sector partners.

“You have two options: either we do away with the P200 million cap or raise the bar. Because for a highly urbanized city, the need for an effective system of transport can be answered by the LGU,” he added. “They can have their own transportation system without the intervention of the National Government… Can’t we just raise the cap?”

At the same hearing, Socioeconomic Planning Secretary Arsenio M. Balisacan said the recently amended implementing rules and regulations (IRR) of the BOT Law encourage private sector to collaborate with the LGUs.

“What we are doing right now is to improve the processes and making sure that these public investments and public infrastructure programs proceed smoothly,” Mr. Balisacan said.

“For example, the first thing we have done recently is amending the BOT IRR to encourage the private sector to be more involved with public infrastructure. That would open up doors for involvement, even LGUs, in public infrastructure development,” he added.

Mr. Balisacan said NEDA will revisit the BOT to review the P200 million threshold, and will work with Congress via the Legislative Executive Development Advisory Council.

In amending the BOT, Senator Juan Edgardo M. Angara said the process of adjusting thresholds should be indexed to inflation.

“We should amend it and we should (require) indexation every five years or something like that,” he said.

President Ferdinand R. Marcos, Jr. cited amendments to the BOT Law as priority legislation. He has called on LGUs to be open to public-private partnerships for their projects.

“I think this is the way forward, and I encourage all our (LGUs) to be open to the possibilities of PPPs,” he said in a meeting with the League of Cities of the Philippines in Malacañang two months ago.

“There’s ODA (official development assistance), there’s private sector (financing), joint ventures … Local governments generally cannot do it by themselves. We have to find partners… we have to find investors. You’re used to that.”

The Supreme Court’s Mandanas ruling granted LGUs a larger share of the national taxes, as well as a larger share of responsibilities.

As a result of the ruling, LGU allocations saw a 37.89% increase to P959 billion in 2022, reflecting National Government income from three years prior. However, because of decreased revenue collections in 2020 due to the pandemic, the allotment for next year is estimated to decrease by 14.47% to P820 billion. — Diego Gabriel C. Robles

The growing popularity of the Board of Investments

Recently, there has been a growing interest from the Registered Business Enterprise (RBE) in the Information Technology and Business Processing Management (IT-BPM) sector to register with the Board of Investments (BoI) because of the need to maintain flexible work arrangements, specifically the ability to allow employees to Work From Home (WFH). On Sept. 14, the Fiscal Incentives Review Board (FIRB) announced that the IT-BPM RBEs will be allowed to continue offering WFH to 100% of the workforce with incentives intact if they transfer their registration to the BoI.

The official guidance was released through FIRB Resolution No. 026-22 issued on Oct. 4, allowing direct transfers to the BoI up to the end of this year. RBEs must simply signify to their current Investment Promotion Agency (IPA) their intention to transfer to the BoI. The IPA is to prepare an endorsement to the BoI containing the registration details, remaining tax incentives, and status of compliance with registration terms and conditions. Once endorsed and approved, the BoI will issue a Certificate of Registration indicating the remaining tax incentives the project is eligible for. The current cost-benefit analysis required for new projects no longer applies to the transferee RBEs. To further ease the transition, the current IPA will remain responsible for monitoring the compliance and availment of incentives of the transferee RBEs and submit a report to the BoI.

There are about 2,000 IT-BPM firms registered with Philippine Economic Zone Authority (PEZA) that may transfer to the BoI. It is truly commendable that the government has made it as painless and efficient as possible.

While the spotlight has been on the IT-BPM sector lately, it is worth noting that the BoI caters to other industries and accepts new registrations as well, not just transferees.

Now, let’s talk about the qualifications for BoI registration, available incentives, and registration procedures for a new enterprise applicant.

QUALIFICATIONS FOR BOI REGISTRATION
The BoI, an arm of the Department of Trade and Industry (DTI), is an incentive-granting agency in charge of promoting investment. To avail of BoI incentives, prior registration must be obtained.

To register with the BoI, the proposed business activity of a new applicant must be listed in the Strategic Investment Priorities Plan (SIPP) which is grouped into three tiers.

Under the 2022 SIPP, all activities listed in the 2020 Investment Priority Plan (IPP) are retained and included under Tier I, whereas, the activities proposed to be included under Tier II are industrial value chains, green ecosystems, health, defense, and food security-related activities. Finally, under Tier III, the proposed activities include those that accelerate the transformation of the economy primarily through the application of research and development, and attracting technology investments. It also includes activities involving the production of equipment, parts, and services that embed new technologies.

The tier will determine the extent of the incentives that may be granted based on a combination of both the location and industry priorities. The SIPP further provides the specific requirements that applicants must satisfy to qualify for registration.

For instance, if the applicant is a call/contact center, similar to PEZA, the BoI requires the enterprise to put in a minimum investment of $2,500 per seat to qualify for registration. This amount covers the cost of equipment (hardware and software), office furniture and fixtures, building improvements and renovation, and other fixed assets except land, building and working capital. If equipment is to be leased, the cost should be converted to assets at commercial interest rates and amortized over a five-year period. If equipment is proposed to be consigned, the same should have an assigned value to be considered as part of the project cost.

INCENTIVES AVAILABLE TO BOI-REGISTERED ENTERPRISES
Once registered with the BoI, the enterprise is entitled to fiscal and non-fiscal incentives granted under the Omnibus Investments Code of 1987 (Executive Order (EO) No. 226), as amended by the CREATE law.

RBEs are eligible for an Income Tax Holiday (ITH) of four to seven years depending on location and industry. An ITH of three years is available for expansion projects on incremental sales.

After the ITH period, an export enterprise has the option to avail of the 5% Special Corporate Income Tax (SCIT) or be subject to the regular corporate tax rate with Enhanced Deductions (ED) for 10 years. On the other hand, a domestic market enterprise can only avail ED for five years.

Other fiscal incentives include VAT exemption on imports and zero percent VAT on local purchases of goods and services that are directly and exclusively used in the registered project or activity (for export enterprises only); a customs duty exemption on imports of capital equipment, raw materials, spare parts and accessories directly and exclusively used in the registered project or activity; and exemption from all local government imposts, fees, licenses and taxes during the original ITH period.

On the other hand, non-fiscal incentives include the unrestricted use of consigned equipment, employment of foreign nationals, simplified customs procedures, and access to bonded manufacturing warehouses.

With the passage of the CREATE Law, which aims to provide uniform incentives for IPAs, the BoI now offers the same incentives as other IPAs like PEZA. One major advantage of BoI, perhaps the most important one as discussed above, is the flexibility of location. Enterprises do not need to locate in a Special Economic Zone to enjoy the incentives.

REGISTRATION PROCEDURES WITH THE BOI
The registration process may vary depending on whether the applicant is a Micro Enterprise, Small Enterprise, or a Regular Enterprise, as classified in the Citizen’s Charter of the BoI.

Generally though, the enterprise applicant must fill out the application form and must make sure that all documentary requirements in the checklist are complete. Once the Project Evaluation and Registration Division (PERD) formally accepts the application, the enterprise will then pay the filing fee and wait for the Notice of Board Action. If approved, the enterprise must submit the pre-registration requirements and pay the registration fee. Thereafter, the enterprise will receive the Certificate of Registration.

Under normal circumstances and after the submission of all the required documents, registration with the BoI can be completed within two weeks if it is a Micro/Small Enterprise, or within two months if it is a Regular Enterprise.

Compared to some IPAs, the BoI has fewer registration requirements. Some of them are a 15-year financial projection and schematic diagram of the activity being registered.

Taking advantage of the BoI’s growing popularity and flexibility in terms of work location, the Philippines could end up attracting more investment and position itself as a viable investment destination.

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.

 

Christian Grimaldo is a manager at the Client Accounting Services department of Isla Lipana & Co., a Philippine member firm of the PwC network.

UN fails to pass decree on Philippine human rights

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE UNITED Nations Human Rights Council dealt victims of human rights violations in the Philippines a serious blow by failing to pass a resolution that would ensure continued scrutiny of the country’s rights situation, Human Rights Watch said on Wednesday.

“The council will end its 51st session in Geneva on Oct. 7 without taking action on the Philippines, despite dire expressions of concern from the UN human rights office, civil society organizations and families of victims of abuses,” the global watchdog said in an e-mailed statement.

The 2020 Human Rights Council resolution on the Philippines required the UN Office of the High Commissioner for Human Rights to monitor and report on the Philippine rights situation through 2022.

A September report by the high commissioner’s office highlighted prevailing rights violations and recommended continued monitoring and reporting to the council.

But council member states and donor countries that supported the 2020 resolution and the ensuing Philippine-UN Joint Program did not press for a 2022 resolution, Human Rights Watch said.

“The UN Human Rights Council’s failure to act on the Philippines is devastating for both the victims of human rights abuses and civil society groups that seek to uphold basic rights,” said Lucy McKernan, Geneva director at Human Rights Watch.

“The end to council scrutiny of the Philippines reflects especially poorly on the European and other concerned governments, led by Iceland, that had banded together in 2020 to support a resolution and the UN Joint Program that sought real improvements on the ground,” she added.

The program was designed to institutionalize human rights reforms in the Philippines in the face of “catastrophic rights abuses” during the war on drugs started by then President Rodrigo R. Duterte in 2016.

“Instead of creating a commission of inquiry to investigate the thousands of extrajudicial killings, the Human Rights Council in 2020 settled on providing the Philippines ‘technical cooperation’ and ‘capacity building’ that, while valuable, did not advance accountability for grave crimes,” Human Rights Watch said.

The three-year program has not gotten beyond its preliminary phase, facing unnecessary obstacles from the Philippine government, including attempts to undermine civil society participation, it said. Without a commitment to the program from the administration of President Ferdinand R. Marcos, Jr. and the political backing offered by a Human Rights Council resolution, the UN Joint Program is unlikely to make much progress, it added.

“Since Marcos took office on June 30, there has been no letup in drug war killings or other human rights violations,” the watchdog said. The Third World Studies Center of the University of the Philippines has reported 90 drug-related deaths under the new government.

‘PROGRESS’
On Oct. 3, unidentified gunmen killed radio journalist Percival Mabasa, in Las Pinas City near the Philippine capital. He was the second journalist killed since Mr. Marcos became president.

But Justice Secretary Jesus Crispin C. Remulla said the Philippines is exerting efforts to improve its human rights situation.

During a meeting with Nada Al-Nashif, the United Nations (UN) Acting High Commissioner for Human Rights in Geneva on Tuesday, the Justice chief said the Southeast Asian nation would continue to engage constructively with the UN and international community, the Department of Foreign Affairs said in a statement posted on its website.

The Justice chief underscored progress in state efforts to strengthen domestic human rights mechanisms, it said. The UN official recognized government efforts to enhance accountability and ensure a human rights-based approach to drug control, it added.

Mr. Remulla cited state efforts to decongest jails with the release last month of more than 350 inmates including the sick and elderly.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making it the most overcrowded prison system in the world, according to the World Prison Brief. Many of the jails in the country fail to meet the minimum United Nations standards given inadequate food, poor nutrition and unsanitary conditions, according to Human Rights Watch (HRW).

Last month, the Office of the UN High Commissioner for Human Rights issued a report saying the Philippine probe into human rights violations in connection with its deadly drug war lacked transparency.

“Transparency and public scrutiny in investigative processes and outcomes remain a challenge,” it said in a 16-page report dated Sept. 6. 

Philippine Solicitor General Menardo I. Guevarra said last week the government would pursue legal remedies to block an investigation by the International Criminal Court (ICC) of the government’s anti-illegal drug campaign.

He earlier told the Hague-based tribunal that the alleged murders of drug suspects in police raids were not crimes against humanity because these were not “attacks against the civilian population.” — Norman P. Aquino and John Victor D. Ordoñez

Long-time Marcos aide totally out of his administration

PHILIPPINE STAR/KRIZ JOHN ROSALES

PRESIDENT Ferdinand F. Marcos, Jr.’s long-time aide on Wednesday said he had completely left the government, saying he wanted to spend time with his family.

“I confirm that I have completely exited the administration of President Bongbong Marcos, after having spoken to him at length about my wish to spend most of my time with my family,” ex-Executive Secretary Victor D. Rodriguez said on Facebook. It was “a very personal decision that was happily made.”

He quit as executive secretary amid a sugar fiasco in which some senators blamed him for failing to communicate his boss’ import policy. Several agriculture officials resigned after the president vetoed a Sugar Regulatory Administration order to import 300,000 metric tons of sugar amid rising prices and tight supply.

His replacement, Executive Secretary Lucas Bersamin on Tuesday said Mr. Rodriguez was no longer part of the Cabinet, adding that he wasn’t aware of a presidential order that made him presidential chief of staff.

Mr. Rodriguez earlier said he had resigned as executive secretary but would stay on as presidential chief of staff, a new position created through an administrative order supposedly signed by the president.

Mr. Marcos on Tuesday reappointed 10 Cabinet members whose nominations the Commission on Appointments bypassed last week.

The presidential palace later said Press Secretary Trixie Cruz-Angeles and Commission on Audit Chairman Jose C. Calida, who were not reappointed, have quit their jobs.

Information and Communications Technology Secretary Ivan John E. Uy and Election Commissioner Nelson J. Celis also were not reappointed.

Mr. Marcos likely chose not to reappoint them given congressional resistance, said Francisco A. Magno, who teaches political science and development studies at De La Salle University.

“This reflects the loss of trust by the chief executive in their continued stay in office,” he said in a Facebook Messenger chat.

People get appointed to government positions because the president trusts them, Jean Encinas-Franco, a political science professor at the University of the Philippines, said in a Messenger chat. “Qualifications are secondary.”

She said factions among Cabinet members are expected.

“Malacañang is a snake pit,” Antonio Gabriel M. La Viña, former dean of the Ateneo de Manila University School of Government, said in a Messenger chat. “It always has been regardless of the administration. Only the fittest, brightest, smartest and the most hardworking survive.”

In his post, Mr. Rodriguez noted his “continued silence” on issues, adding that all communications between him and Mr. Marcos were “absolutely privileged, something which I shall continue to honor.”

“I have been ridiculed, maligned and subjected to baseless and unfair commentaries on all conceivable platforms, but I take solace in the legal aphorism ‘Men in public life may suffer under a hostile or unjust accusation; the wound can be assuaged with the balm of a clear conscience,’” he said. “I will continue serving as a private citizen as best as I can. Let us support President Bongbong Marcos and the Philippines,” he added in Filipino.

Senate President and Commission on Appointments Chairman Juan Miguel F. Zubiri last week said they failed to tackle the appointments of the 15 for lack of time.

Lawmakers went on a monthlong break on Oct. 1. — Norman P. Aquino and Kyle Aristophere T. Atienza

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