Home Blog Page 506

Auto body makers tout safety, air quality benefits in proceeding with PUV upgrades

BW FILE PHOTO

THE Automotive Body Manufacturers Association of the Philippines (ABMAP) said it supports the Department of Transportation’s (DoTr) decision to go forward with modernizing the jeepney fleet, citing the need to improve safety and air quality.

“We commend Secretary (Vivencio B.) Dizon’s commitment to moving forward with modernization. The transition to Euro 4-compliant vehicles is a necessary step to ensure road safety, reliability, and improved air quality,” ABMAP Executive Director Edgar Manuel.

The DoTr, under Mr. Dizon, its new Secretary, has decided to proceed with the Public Transport Modernization Program (PTMP), but cited the need to resolve snags like vehicle financing and route rationalization.

“Our members are ready to support operators and cooperatives in acquiring modern, high-quality vehicles that meet global standards,” Mr. Manuel added.

Mr. Dizon has said that the program has achieved an 86% consolidation rate under former Transportation Secretary Jaime J. Bautista, the process by which smaller operators are combined to make them more viable entities in terms of acquiring and operating modern jeepneys.

“We need to understand the issues very well. Masalimuot ang mga issues (the issues are complex), hindi lang naman ’yan simpleng pagpapalit ng mga sasakyan (it’s not as simple as replacing the vehicles),” Mr. Dizon said on the sidelines of the turnover of DoTr leadership on Monday.

Introduced by the DoTr in 2017, the PTMP requires public utility vehicles (PUVs) to meet emission standards and form cooperatives to facilitate efficient fleet management.

“ABMAP believes this initiative will provide long-term benefits for drivers, passengers, and the transport industry as a whole,” Mr. Manuel said.

“We understand the concerns of some stakeholders, but modernization is not about eliminating traditional jeepneys — it’s about improving them. We need a transport system that ensures a better commuting experience for all Filipinos,” he added.

ABMAP has said that the issues regarding financing and vehicle selection can be “resolved through constructive dialogue and collaboration.”

It added that the focus must be on refining the program’s guidelines, expanding financing options, and ensuring a smoother transition, and not on suspending the program. — Justine Irish D. Tabile

New ADB president takes office

BW FILE PHOTO

THE Asian Development Bank (ADB) said its new president, Masato Kanda, assumed office on Monday.

In a statement, the bank said Mr. Kanda, former special advisor to Japan Prime Minister Shigeru Ishiba and a former Vice Minister of Finance, succeeded Masatsugu Asakawa.

He will serve as the ADB’s 11th president and takes on the unexpired term of Mr. Asakawa, which ends on Nov. 23, 2026.

“I am deeply honored to take on the role of ADB president at this important moment for our region,” Mr. Kanda said.

“With the trust of our 69 members and strong support of our dedicated staff, I am committed to advancing ADB’s mission to promote sustainable, inclusive, and resilient growth,” he added.

Mr. Kanda said the ADB will respond to pressing development challenges and ensure that it will remain the “partner of choice for the region.”

Mr. Kanda had been vice minister of finance for international affairs, at which post he oversaw market interventions to shore up a weak yen in 2024.

The chairman of the ADB Board of Governors, Fabio Panetta, said the new president brings a wealth of experience and fresh perspective to leading the bank.

“His proven track record in navigating complex financial challenges and fostering international cooperation makes him the ideal leader to guide us as we build upon our strengths and seize emerging opportunities,” Mr. Panetta said. 

“I am ready to harness the collective expertise within our organization and work closely with our partners to drive transformative change, especially for those most in need,” Mr. Kanda said.

“Our focus will be on pragmatic actions that deliver real results, ensuring that our support creates lasting improvements in the lives of people throughout Asia and the Pacific,” he added.

Mr. Asakawa assumed the ADB presidency on Jan. 17, 2020, and announced his resignation effective Feb. 23, 2025.

The ADB in September said lending for the Philippines is projected at $24 billion between 2024 and 2029. — Aubrey Rose A. Inosante

BSP says gold operations part of its core functions

BW FILE PHOTO

THE Bangko Sentral ng Pilipinas (BSP) said it uses gold sales to manage foreign exchange reserves, after the Palace rejected allegations from former President Rodrigo R. Duterte that the gold was being stolen.

“The country’s gross international reserves (GIR), including gold, are held and managed solely by the BSP in order to maintain the international stability and convertibility of the Philippine peso and meet any foreseeable net demands on the Bangko Sentral for foreign currencies.”

“The country’s GIR is not used for any other purpose other than meeting the country’s forex requirements.”

Mr. Duterte had alleged that President Ferdinand R. Marcos, Jr. is “stealing gold reserves.”

Presidential Communications Office Undersecretary Claire A. Castro said at a briefing on Monday that the palace is taking these allegations seriously and would like to dispel “fake news.”

“Did (Mr. Duterte) not have any economic experts telling him about the regular activities of the BSP?” Ms. Castro said.

The BSP said buying and selling gold is “part of its core functions.”

“When the BSP sells gold, the proceeds revert to and stay within the GIR,” it added.

The central bank reported that reserves stood at $106.84 billion in 2024, up 3%.

“Similar to other central banks, the BSP maintains a portion of its reserves in gold as part of the country’s GIR mostly to hedge against/offset movements in the market price of other assets. It buys or sells gold to maintain an optimum level for this purpose, not too much, not too little. This follows basic portfolio-management principles.”

“Gold prices tend to move in the opposite direction of other assets. Therefore central banks hold some gold as a hedge against price declines in other assets in the reserves. However gold can be volatile, earn little interest, and (entails) storage costs, so central banks don’t want to hold too much.” — Luisa Maria Jacinta C. Jocson

PHL to export 66,000 MT of raw sugar next month

FACEBOOK.COM/VICTORIASMILLINGCOMPANY

THE PHILIPPINES will export 66,000 metric tons (MT) of raw sugar to the US next month, the industry’s regulator said.

The Sugar Regulatory Administration (SRA) agreed to deliver two boatloads of 33,000 MT each to maximize the savings on freight, instead of the initial decision to ship 60,000 MT, Administrator Pablo Luis S. Azcona said at a briefing, citing input from traders.

Mr. Azcona said segments of the industry, including farmers, oppose sugar exports to the US because it buys the commodity at a lower price.

“Sugar is bought by traders at US prices, which is about P1,000 less than domestic price. That’s why farmers complained,” Mr. Azcona said.

To address farmers’ concerns, the SRA, in Sugar Order No. 2, will give traders who procure raw sugar from farmers at domestic prices “will be given priority” in future government import programs.

The SRA has come up with a list of traders who will be participating in the 66,000-MT export program — the soon-to-be-issued SO No. 3.

“The farmers said the SRA and government can do whatever they want as long as the farmers do not have to subsidize exports,” he said.

He said all exports will consist of sugar initially purchased from farmers at the domestic price.

Mr. Azcona said the Department of Agriculture will likely oversee the export program to address the US quota allocation for 2025.

He noted that the Philippines has the third-largest US quota for raw sugar, a status that it wants to maintain.

The new arrangement calls for traders to absorb the losses from selling at the US price, to be offset by any gains they may realize from imports.

Traders in the program will be allowed to import 2.5 kilograms of refined sugar for every kilogram of raw sugar exported. The 66,000 MT export shipment implies plans to import 165,000 MT of refined sugar.

“The exporters export at a loss and they make it back with imports,” he added. — Kyle Aristophere T. Atienza

Cigarettes owing P6.4B in taxes face destruction

BOC PHOTO

THE Bureau of Internal Revenue (BIR) started destroying seized cigarettes representing P6.4 billion in unpaid taxes this week in Pampanga. In a statement on Monday, the BIR said it will destroy 14.3 million packs of cigarettes at 12 sites between Feb. 24 and 28.

“This initiative is a testament to our commitment to uphold the law and deter illicit activities. This is the rational next step from the nationwide raids we conducted since 2022 and the filing of the criminal cases against these individuals and corporations,” Commissioner Romeo D. Lumagui, Jr. said.

The first day of the nationwide destruction of illicit cigarettes and cigarette-making equipment was held at Digama Waste Management Services in Porac.

The BIR said the destruction of the illicit products seeks to highlight the public health risks posed by cigarettes from unknown sources in the absence of quality control and regulation.

The BIR has criminally charged the parties in possession of these cigarettes as part of its campaign against tax evaders.

The BIR on Feb. 17 filed a tax evasion case against operators of a facility following a raid. The most recent operation resulted in the seizure of products that evaded P8.54 billion in taxes.

Mr. Lumagui on Feb. 20 estimated foregone revenue in 2024 from the illicit cigarette trade at P30 billion to P40 billion.

“The destruction of illicit goods is a crucial step in maintaining the integrity of our revenue collection, protecting the health of our citizens, and safeguarding the interests of legitimate businesses who properly file and pay the correct taxes due to the government.” Mr. Lumagui said.

In a separate statement, the Philippine Tobacco Institute (PTI) expressed its support for the exercise while calling for a dedicated task force to oversee operations against traders of illicit cigarettes and counterfeit tobacco products.

“The PTI fully supports these enforcement efforts and remains committed to collaborating with government agencies to eliminate illicit trade,” the PTI said in a statement on Monday.

The group said this destruction of these counterfeit and tax-evading products shows the BIR is acting “to protect the integrity of the tobacco industry” — which contributes to the excise tax collection annually and supports health and social services programs.

“A dedicated task force focusing on enforcement, prevention, and intelligence-sharing would strengthen the government’s ability to disrupt illicit networks and hold offenders accountable,” it said.

It also noted that the illicit trade is detrimental to the government’s revenue, and the livelihood of farmers, manufacturers and retailers. — Aubrey Rose A. Inosante

When related party transactions and transfer pricing issues surface during tax assessments

When companies work together, each party contributes its unique strengths and skills to achieve common goals. These collaborations, whether they involve sharing resources, providing financial assistance, or leveraging each other’s expertise, help the entire group thrive.

While these contributions among related parties are indeed undeniable benefits of being a member of a group of companies, they can be problematic during a tax audit by the Bureau of Internal Revenue (BIR). Related party transactions (RPTs) are generally considered a red flag by the BIR. In fact, in the background section of Revenue Regulation (RR) 19-2020, which requires the submission of Information Return on Transactions with Related Parties, the BIR states that transactions with related parties have been subject to abuse by taxpayers intending to evade taxes by concluding transactions between them at unreasonable prices. It further states that significant risks arise when RPTs are not conducted at arm’s length. The BIR has to protect the tax base, and it is, therefore, fair enough on the BIR’s part to require proper disclosures of RPTs and ensure that these RPTs are conducted at arm’s length.

From my experience in handling BIR tax audits, below are some related party transactions that have been commonly questioned by the BIR.

1. Services rendered by non-resident foreign corporations

Examples of these are management services such as the services rendered by the groups’ head of operations or head of finance. Another example is the marketing services of the head office in pursuing and winning global clients.

Although the BIR will normally not inquire about the pricing policy of these purchases, the BIR normally construes these services as rendered in the Philippines, and hence, subject to final withholding taxes and withholding VAT.

For cases like these, the taxpayer and its foreign related party should be able to document the nature of these services clearly in their contracts, invoices, and other supporting documents. If possible, a transfer pricing document can be presented to show the nature of these transactions.  In cases where these transactions are recurring issues during tax audit and the taxpayer has difficulty in explaining the nature and exemption from tax, if any, it is highly encouraged that an International Tax Affairs Division (ITAD) Ruling be secured from the BIR. In cases where a tax exemption or a lower tax rate under a tax treaty has been availed of by the non-resident, then a Request for Confirmation (RFC) shall be submitted to the BIR. In these ways, it will be much easier to explain to the BIR the taxability of these income payments to non-resident related parties.

2. Services rendered to non-resident foreign corporations

A significant number of companies in the Philippines have an arrangement where the Philippine entities sell or render, primarily or exclusively, their products and services to their non-resident foreign related parties.

During a tax audit, the BIR normally inquires about the pricing policy, such as the mark-up rate imposed by the Philippine taxpayer on their related parties, and recomputes the sales that should have been earned by the Philippine taxpayer.

As an example, if the mark-up rate of a BPO company is 5% of cost and expenses, the BIR will pick up the total of cost and expenses from the taxpayer’s books and multiply it by 105% to come up with the sales or revenue per tax audit. The excess of the sales or revenue per the BIR’s re-computation over the actual amount declared in the income tax return and VAT return will result in undeclared sales or revenue subject to deficiency income tax and VAT.  In recent months, the BIR, during tax audits, has been requiring taxpayers to submit the transfer pricing documentation (TPD) covering the services rendered to foreign related parties.

Apparently, the contracts, invoices, and computations are not sufficient for some BIR officers to come up with the analysis on related party transactions. Taxpayers who have not prepared their TPD are forced either to pay penalties or rush to prepare TPD. On the other hand, taxpayers who have prepared their TPD have generally had much easier dealings with these kinds of issues during tax audit.

3. Allocation of expenses or reimbursement-at-cost

Normally these are expenses incurred by related parties for the benefit of the group. Examples of these are software subscriptions and other technology costs, and allocation of rent and utilities for an office space leased by a related party occupied by two or more related parties. In some sense, it may be referred to as a pass-through cost because the related party was only an agent between the taxpayer and the third-party service provider. However, depending on the specific facts and circumstances of each case, the party initially paying the expenses on behalf of the group should charge an appropriate arm’s length markup for its function in arranging and paying for the acquired services on behalf of its related parties.

The issues herein normally include whether the reimbursement received is considered income subject to taxes. Revenue Memorandum Circular (RMC) No. 76-2020 states that it is necessary to submit to the BIR a formal written agreement/contract to prove that these are legitimate expenses, in addition to other documents to substantiate the same (e.g., receipts, proof of payment, etc.). To prove that the transaction is legitimate and necessary is one thing, and to prove that the transaction has been conducted at arm’s length is another thing.

The above transactions are just a few examples of the transactions between related parties. There are many more, such as the use of brands, use of know-how and technology, and the grant of loans or advances, etc., which are normally employed by groups of companies to maximize their operations. These groups should not be disheartened though when related party transactions are questioned during a tax audit as the BIR is also protecting the tax base. Considering the risks and costs of a tax audit, there are several ways to manage these risks, such as confirming the tax consequences of the arrangements through an ITAD Ruling or Request for Confirmation. The role of transfer pricing documentation should also not be played down because those who prepare it now might reduce the burden when the tax audit comes.

Let’s Talk TP is an offshoot of Let’s Talk Tax, 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.

 

Marie Fe F. Dangiwan  is a partner from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Philippine, Japan ministers agree to further enhance defense partnership

DEFENSE SECRETARY Gilberto C. Teodoro, Jr. and his Japanese counterpart Gen Nakatani tackle regional security issues during the latter’s visit to Manila. — DEPARTMENT OF NATIONAL DEFENSE OFFICIAL FACEBOOK PAGE

By Adrian H. Halili and John Victor D. Ordoñez, Reporters

THE PHILIPPINES and Japan on Monday agreed to further deepen defense ties in the face of an “increasingly severe” security environment in the Indo-Pacific region.

Philippine Defense Secretary Gilberto Eduardo Gerardo C. Teodoro, Jr. and Japanese Defense Minister Gen Nakatani met in Manila to tackle regional security issues, including the maritime situation in the East and South China Seas.

“The security environment surrounding us is becoming increasingly severe and that it is necessary for the two countries as strategic partners to further enhance defense cooperation and collaboration to maintain peace and stability in Indo-Pacific,” Mr. Nakatani said through an interpreter.

He added that the Philippines and Japan have agreed to deepen cooperation on military exchanges, establish a high-level strategic dialogue among its military and deepen information sharing.

“A lot of enhancements and discussions have been done to move forward our already robust defense relationship and alliance,” Mr. Teodoro told a joint news briefing.

Enhanced partnership with Japan would help in “resisting any unilateral attempt to reshape the global order” by China or other countries, he said. “This partnership is proof of the common desire to have a free, open and prosperous Indo-Pacific.”

Philippine President Ferdinand R. Marcos, Jr. also met with Mr. Nakatani later in the day and told him he hopes to find more “common ground” to build on existing defense and security partnerships between their countries.

“Japan and the Philippines have worked closely for so many decades,” the President told him during a courtesy call in Malacañang, based on a transcript sent to reporters by his office via Viber.

“I hope that with the many changes that occurred in our region, that [with] your visit, we will be able to discuss some of those anticipated changes that we are looking at in view of strengthening the relations between Japan and the Philippines,” he added.

“Japan and the Philippines have been making great developments in the area of defense and security cooperation by the leadership and partnership between your excellency and Prime Minister [Shigeru] Ishiba,” Mr. Nakatani told Mr. Marcos.

Security ties between the two US allies have strengthened in the past two years as Japan and the Philippines share common concerns over China’s increasingly assertive actions in the region.

Last year, Manila and Tokyo signed a landmark military pact allowing the deployment of their forces on each other’s soil.

The agreement is the first of its kind to be signed by Japan in Asia and coincides with increased Chinese assertiveness in the South China Sea, where Beijing’s expansive claims conflict with those of several Southeast Asian nations.

A United Nations-backed tribunal in 2016 rejected China expansive claims in the waterway for being illegal. China has ignored the ruling.

Japan and China have repeatedly faced off around uninhabited Japanese-administered islands that Tokyo calls the Senkaku and Beijing calls the Diaoyu.

The Philippines and China have also clashed in the South China Sea around disputed shoals and atolls that fall within the Southeast Asian nation’s exclusive economic zone.

Mr. Nakatani visited military bases in northern Philippines on Sunday, including a naval station that houses a coastal radar that Japan donated as part of its 600-million-yen ($4 million) security assistance in 2023.

Manila was one of the first recipients of Tokyo’s official security assistance, a program aimed at helping boost deterrence capabilities of partner countries.

In December, the two countries signed a second security deal in which Japan agreed to provide the Philippine Navy rigid hull inflatable boats and additional coastal radar systems.

China’s increasing assertiveness in the South China Sea has prompted the Philippines to seek more foreign defense agreements.

“The new defense development between Manila and Tokyo looks promising, Chester B. Cabalza, founding president at Manila-based think tank International Development and Security Cooperation, said in a Facebook Messenger chat.

”It gives sense to deeper friendship in advancing a maritime rules-based order to promote a free and open Indo-Pacific region,” he added.

Michael Henry Ll. Yusingco, a fellow at the Ateneo de Manila University Policy Center, said that a technology cooperation between the two nations is expected to boost the Philippines’ defense skills and equipment.

“The experience of working with Japanese defense personnel will only elevate our forces’ fighting [abilities],” he said via Messenger chat.

He added that a stronger alliance with Japan could provide “some degree of shelter” to the Philippines against increasing geopolitical rivalries in the region. “It’s not the long-term protection we want, but given our limited resources, alliances like this one are an important and necessary shield we rely on.” — with Reuters

US exempts PHL security funding from foreign aid freeze imposed by Trump

RAWPIXEL

THE US has exempted security assistance to the Philippines worth $336 million from its foreign aid freeze, the Department of Foreign Affairs (DFA) said on Monday.

“The Philippines has been informed of the waiver issued to a portion of the US foreign military financing for the Philippines,” Foreign Affairs spokesperson Ma. Teresita C. Daza told reporters in a WhatsApp message.

US President Donald J. Trump’s government would continue to provide funding for security and counternarcotics programs to other countries, including $336 million of such aid to the Philippines, Reuters reported last week.

Mr. Trump earlier ordered a 90-day pause on existing and new foreign development assistance pending review to ensure they are aligned with his “America First” policy.

Last year, the US extended $500 million in aid for the modernization of the Armed Forces of the Philippines and Philippine Coast Guard.

“Both countries are committed to the treaty alliance and to efforts to further strengthen our defense cooperation and interoperability,” Ms. Daza said. “We will continue to engage the US government on the importance of our bilateral work in supporting our shared goals and priorities.”

Earlier, Foreign Affairs Secretary Enrique A. Manalo met with his US counterpart Marco Rubio to discuss bilateral coordination in addressing Chinese actions in the South China Sea.

The Philippines has signed foreign defense agreements with countries like the US, Japan and Canada amid frequent clashes with China at sea.

China claims sovereignty over almost the entire South China Sea, a vital waterway for more than $3 trillion of annual ship-borne commerce, putting it at odds with Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

The DFA said other topics discussed included increasing economic cooperation on infrastructure, critical minerals, information technology and energy, including through civil nuclear cooperation. — Adrian H. Halili

Philippines, Palau agree to boost fishery and maritime links

PRESIDENT Ferdinand R. Marcos, Jr. welcomes Palau President Surangel Samuel Whipps, Jr., at the presidential palace on his first day of visit to Manila. — NOEL B. PABALATE/PPA POOL

PHILIPPINE President Ferdinand R. Marcos, Jr. and Palau President Surangel Samuel Whipps, Jr. on Monday vowed to pursue deeper cooperation in the fishery, maritime, social security and labor sectors between their countries.

“We have also discussed the framework of our fisheries cooperation to improve our fishing and aquaculture sectors through the sharing of best practices and technologies, capacity-building initiatives as well, development of fisheries infrastructure and cooperation for international market compliance,” the Philippine President told a joint news briefing in Malacañang.

He said Manila and Ngerulmud are finalizing a labor cooperation deal for the more than 4,000 Filipino workers in Palau and a social security agreement that would guarantee them social benefits.

Both countries also vowed to pursue deals on technical and vocational training for their labor forces, Mr. Marcos added. The two leaders also vowed to work on conservation and cooperation on illegal, unreported and unregulated fishing practices.

They also discussed more partnerships in health, human resource development and agriculture.

The Palau President is in the Philippines for a two-day visit to discuss ties in fisheries, trade and investment and labor, among other areas of cooperation.

“Our growing trade relations are an undeniable indicator of meaningful opportunities in Philippines-Palau economic relations,” Mr. Marcos said.

Mr. Surangel said the Bureau of Fisheries and Aquatic Resources and Palau’s Ministry of Aquaculture, Fisheries and Environment had signed a deal to promote fishing ventures and cooperation in development fishing infrastructure against illegal fishing.

“Now more important than ever, we must collaborate in navigating the geopolitical issues and pressures that we face, especially the existential threat that we face with climate change,” he told the same briefing.

“We are here, of course, to further strengthen that bond in agriculture and healthcare, and provide business opportunities. And we encourage Filipinos to invest in Palau.” — John Victor D. Ordoñez

Gov’t urged to plan ahead of anticipated heavy traffic amid road and bridge works

Vehicles and motorcycles are stuck in traffic along EDSA in this file photo. — PHILIPPINE STAR/WALTER BOLLOZOS

A LAWMAKER on Monday urged the Public Works department and Metro Manila Development Authority (MMDA) to craft plans to manage the expected heavier traffic as bridges in the Philippine capital undergo repairs this year.

In a statement, Manila Rep. Rolando M. Valeriano said the Department of Public Works and Highways (DPWH) should also reveal how they plan on doing maintenance work on flood control projects in the National Capital Region (NCR).

“DPWH has yet to present to the House Committee on Metro Manila Development how they and MMDA will manage the massive collateral impact on traffic and the daily lives of NCR residents and businesses, considering there are at least 19 other bridges DPWH has programmed this year in NCR,” said Mr. Valeriano, who heads the House Metro Manila panel.

A 2018 Japan International Cooperation Agency (JICA) study showed that traffic congestion in Metro Manila costs the Southeast Asian nation P3.5 billion a day.

At least 17 bridges are set for repairs, including the Guadalupe Bridge connecting Makati and Mandaluyong, which will undergo anti-earthquake reinforcement. Two bridges will also be replaced, according to the lawmaker.

“The seismic retrofitting of Guadalupe Bridge is the most important. P600 million is budgeted for that, with the JICA loan component at P342.589 million and the National Government counterpart funding at P258.262 million,” he said.

“There are also dozens of preventive maintenance works and flood control projects the DPWH has listed for 2025. We must see from DPWH how they will manage all of these and make sure they get it all done,” he added.

The MMDA in early February met with President Ferdinand R. Marcos, Jr. to discuss the government’s five-year traffic management plan as well as plans to start rehabilitation of the Epifanio de los Santos Avenue (EDSA) by March.

MMDA Chairman Romando S. Artes said the five-year Comprehensive Traffic Management Plan includes upgrading traffic regulation and enforcement, developing a traffic management database, upgrading the traffic signal system, and improving intersections and traffic corridors.

Manila was the 14th most congested city in the world, with an average travel time of 32 minutes, according to the latest edition of the TomTom Traffic Index.

The index assessed cities and metropolitan areas across 62 countries by their congestion and travel times and how many hours commuters stuck in traffic have lost. — Kenneth Christiane L. Basilio

DoTr to privatize key projects

Commuters line up at the Main Avenue station of the EDSA bus carousel in Quezon City, July 18, 2022. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE DEPARTMENT of Transportation (DoTr) will continue to prioritize the privatization and modernization of key transport projects, according to the newly minted Transportation chief.

“This is critical [privatization of transport projects] because I think that is the way to go. Sec. [Bautista] can be assured that we will really push that forward,” Transportation Secretary Vivencio B. Dizon said in a media release on Monday.

Mr. Dizon has been appointed as the new Transportation secretary following the resignation of Jaime J. Bautista as Transportation chief, effective Feb. 21.

Mr. Dizon said the privatization of transport projects both in road transport and railway infrastructure is crucial to ensure efficient services to commuters.

For instance, the feasibility study for the operations and maintenance of the EDSA Busway is expected to be completed in the next few months, the DoTr said, adding that the project is expected to be awarded by 2026.

While the terms of reference for the planned bidding of the operations and maintenance (O&M) contract for Metro Rail Transit Line 3 (MRT-3) are now being finalized, DoTr said.

Meanwhile, the Transportation department said programs like the Public Transport Modernization Program will push through.

The modernization program started in 2017, aiming to replace traditional jeepneys with units that have at least a Euro 4-compliant engine to cut pollution

“In pushing through with modernizing the country’s public transportation, the transport chief emphasized that the government needs to find ways to help drivers and operators affected by the program,” the agency said. — Ashley Erika O. Jose

PAOCC files case vs POGO workers

PRESIDENTIAL ANTI-ORGANIZED CRIME COMMISSION

TWENTY foreign nationals apprehended last week at a Philippine offshore gaming operator (POGO) hub in Parañaque City are now facing complaints for qualified trafficking, the Presidential Anti-Organized Crime Commission (PAOCC) said on Monday.

“We have already subjected the foreign nationals operating the POGO hub here at the Parañaque Integrated Terminal Exchange (PITX) to inquest proceedings,” Undersecretary Gilbert DC. Cruz told reporters in Filipino.

“We have filed cases against 20 foreign nationals, and we have also gathered complainants. Additionally, we have witnesses, including three Vietnamese nationals who were actually workers at the POGO,” he added.

The arrested foreign nationals are facing qualified trafficking complaints because “they were the ones facilitating operations,” PAOCC said noting they committed multiple violations including presenting incomplete documents.

Apart from foreigners, there are also two Filipinas facing inquest proceedings.

Mr. Cruz said they were also working in the POGO hub, and they pointed out the bosses who ran the illegal gaming operations.

Last Thursday, PAOCC raided the ATI building in front of PITX, arresting at least 453 individuals, including 137 Chinese nationals, amid President Ferdinand R. Marcos, Jr.’s total POGO ban directive.

PAOCC reported that 319 of the individuals arrested inside the building were Filipinos.

Additionally, those taken into custody included three Vietnamese, two Malaysians, two Thais, an Indonesian, and a Taiwanese.

During his third State of the Nation Address in July last year, Mr. Marcos ordered a total ban on POGOs, citing their involvement in illicit activities such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, torture, and even murder.

Under Executive Order No. 75, signed by the President on Nov. 5, all POGOs, including “internet gaming licensees,” were mandated to cease operations by Dec. 31 last year. — Chloe Mari A. Hufana