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Shares rebound as net inflow of hot money rises

SHARES advanced on Monday ahead of the release of the March inflation report and as hot money net inflows grew in February.

The benchmark Philippine Stock Exchange index (PSEi) climbed by 10.33 points or 0.14% to close at 7,163.21 on Monday, while the broader all shares grew by 8.95 points or 0.23% to 3,797.54.

“Philippine shares were slowly bought up as investors speculated on the latest inflation print that will be released tomorrow, while other recent economic data painted a better picture of the economy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Foreign portfolio investments, also called hot money because of the ease by which these funds enter and exit the economy, yielded a $274-million net inflow in February, up from the $14.6 million recorded the previous month and a turnaround from the $40.4-million net outflow seen in the same month in 2021, central bank data released on Friday showed.

Meanwhile, analysts said headline inflation likely accelerated in March as the surge in global oil prices amid the Russia-Ukraine war caused faster increases in food and transport costs.

A BusinessWorld poll of 18 analysts yielded a median estimate of 4% for last month’s inflation, nearer the upper end of the central bank’s 3.3% to 4.1% projection.

If realized, this would be faster than the 3% in February and would match the upper end of the 2-4% target of the BSP. Still, it would be slower than the 4.5% seen a year earlier.

The Philippine Statistics Authority will release March inflation data on Tuesday.

“Helping in Monday’s climb is the anticipated decline in fuel prices, which in turn tempers inflation expectations,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Fuel companies said pump prices will be rolled back on Tuesday, with Cleanfuel, Petro Gazz, Pilipinas Shell, and Seaoil announcing a decrease of P2.30 per liter for gasoline and P1.85 per liter for diesel.

Most sectoral indices ended in the green except for holding firms, which retreated by 18.47 points or 0.27% to 6,810.15.

Meanwhile, mining and oil soared by 177.62 points or 1.43% to end at 12,557.48; industrials added 80.87 points or 0.83% to 9,824.33; property went up by 24.13 points or 0.72% to 3,333.58; services improved by 2.33 points or 0.12% to 1,941.40; and financials inched up by a point or 0.05% to end at 1,684.76.

Value turnover went down to P3.87 billion with 1.33 billion shares changing hands from the P5.40 billion with 15.20 billion issues seen on Friday.

Advancers outnumbered decliners, 96 versus 83, while 56 names were unchanged.

Foreigners turned net buyers with P202.58 million versus the P683.69 million in net selling seen on Friday. — R.C.S. Agustin

Peso strengthens, tracks stock index gains

BW FILE PHOTO

THE PESO appreciated versus the greenback on Monday to track gains in the stock market and with players already pricing in faster inflation.

The local unit closed at P51.38 per dollar on Monday, gaining 29 centavos from its P51.67 finish on Friday, based on data from the Bankers Association of the Philippines.

The peso opened the session at P51.60 versus the dollar, which was also its weakest showing for the day. Meanwhile, its intraday best was at P51.31 against the greenback.

Dollars exchanged declined to $1.208 billion on Monday from $1.33 billion on Friday.

The peso appreciated on Monday as it tracked gains in the stock market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The benchmark Philippine Stock Exchange index rose by 10.33 points or by 0.14% to close at 7,163.21 on Monday, while the broader all shares index also increased by 8.95 points or 0.24% to 3,797.54.

Mr. Ricafort said market sentiment improved as global oil prices have declined from the highs seen at the beginning of the Russia-Ukraine war.

Oil rose above $105 a barrel on Monday as concern about tight supply arising from the war in Ukraine and the lack of an Iranian nuclear deal persisted despite countries releasing oil from strategic reserves, Reuters reported.

Last week oil prices slid by 13%, their biggest weekly fall in two years, after US President Joseph R. Biden announced the largest-ever US oil reserves release.

Meanwhile, a trader in an e-mail said the peso appreciated as the market has already factored in faster inflation and anticipate more hawkish signals from the central bank.

A BusinessWorld poll of 18 analysts yielded a median estimate of 4% for March inflation, nearer the upper end of the central bank’s 3.3% to 4.1% projection.

If realized, this would match the upper end of the 2-4% target of the Bangko Sentral ng Pilipinas (BSP) and would be faster than the 3% in February.

The Philippine Statistics Authority will report March inflation data on Tuesday.

BSP Governor Benjamin E. Diokno last week signaled the key policy rate could reach up to 2.75% by next year.

The central bank has kept its key rate untouched for the 11th straight meeting last month despite warning that its inflation target might be breached this year due to surging global oil prices brought by the Russia’s invasion of Ukraine.

For Tuesday, Mr. Ricafort gave a forecast range of P51.25 to P51.50, while the trader expects the local unit to move within P51.30 to P51.50 per dollar. — L.W.T. Noble with Reuters

SIPP draft lists ‘green’ projects, R&D as eligible for incentives

FREEPIK

A DRAFT of the Strategic Investment Priority Plan (SIPP) retains all the priority industries listed in the 2020 plan while creating two other tiers for “green” industries and research and development (R&D) activities, among others.

The draft, which was released to the media by House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda, remains unsigned but appears to be set for implementation via executive order (EO). The draft itself that Mr. Salceda released appears to be set to go out initially as a memorandum order to be issued by the Office of the President (OP), over the signature of Executive Secretary Salvador C. Medialdea.

The latest version of SIPP will be a companion document to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and seeks to identify the industries to which the government hopes to attract investment by offering tax incentives.

According to the draft, Tier I consists of industries included in the 2020 version of the SIPP. The 2020 SIPP was carried over as a transitional list pending the release of a new SIPP that conforms to the provisions of CREATE, which took effect in April 2021.

Tier II was defined as activities “that are supportive of a competitive and resilient economy and will fill in gaps in the Philippines’ industrial value chains, which are critical in promoting green ecosystems, ensuring a dependable health system, achieving robust self-reliance in defense systems, and transforming industrial and agricultural sectors to being modern, competitive, and resilient,” according to the draft.

Tier III will include activities which are “supportive of the acceleration of the transformation of the economy primarily through the application of research and development (R&D) and attracting technology investments.” The tie also proposes to incentivize equipment and parts manufacturing and services related to new technologies, as well as the commercialization of R&D.

A draft foreword to the SIPP that was to go out in the name of Trade Secretary Ramon M. Lopez listed the Tier I projects as follows: various manufacturing activities including agro-processing projects; strategic services; healthcare and disaster risk reduction management services; mass housing; infrastructure and logistics projects including public-private partnerships entered into with local governments; innovation drivers, innovative business models, environment or climate-change-related projects; and energy.

Tier I also incentivizes export activities and other projects granted incentives by special laws.

According to a draft message that was to go out in the name of President Rodrigo R. Duterte that was attached to the draft SIPP, the President expressed hope that the plan will allow the Philippines to “attract more investments that will help propel economic recovery beyond the pre-pandemic levels while promoting sustainable inclusive growth, which will put us back on track towards upper-middle income country status in the long term.”

CREATE is the second package of the Comprehensive Tax Reform Program. It reduces the corporate income tax rate to 20% from 30%, and makes fiscal incentives more time-bound and performance-based.

According to Mr. Lopez of the Department of Trade and Industry, the Palace is due to receive a draft EO this week to implement the SIPP.

“The details of the executive order have been finalized also by the technical working group, and the draft EO on SIPP will be transmitted to OP this week,” Mr. Lopez said in a Viber message. — Jaspearl Emerald G. Tan

Chamber wants next gov’t to focus on agriculture

PHILIPPINE STAR/ MICHAEL VARCAS

THE NEXT government needs to grant priority status of agriculture and education, according to the Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII).

FFCCCII President Henry Lim Bon Liong said agriculture and education form the basis of the rise to power of the US and China.

“I think all candidates should prioritize (agriculture and education),” Mr. Lim Bon Liong said in a television interview on Monday.

He expressed hope for continuity with the approach taken by the Duterte administration, especially its decision to seek friendly relations with China and other neighbors.

“We support whoever will be the duly elected president. But, as far as the different candidates are concerned, the federation is looking at a candidate that will continue the legacy of President Duterte in dealing with our neighbors,” Mr. Lim Bon Liong said.

He expressed the hope that the two candidates leading the surveys, former Senator Ferdinand R. Marcos, Jr. and Vice-President Maria Leonor G. Robredo take a similar approach to China relations.  

“Both Mr. Marcos and Ms. Robredo are acceptable to us. But, of course, hopefully both of them will have the same stand of trying to get as (many) possible concessions from our giant neighbor, China,” Mr. Lim Bon Liong said.  

Mr. Lim Bon Liong said that the country is expected to be “back to normal” soon if drastic quarantine restrictions do not return.

“Right now, with Alert Level 1, a lot of people are going back to work. We are fully open and we are back to business. Those that we have temporarily laid off, we are getting them back already. We hope that the government will not go back to Alert Level 2 or 3,” Mr. Lim Bon Liong said, referring to the quarantine settings with more restrictive caps on mobility and capacity of business establishments.

“As long as we are under Alert Level 1 or we can go to Alert Level 0 that would be even be better. I think we will be back to normal pretty soon,” he added. — Revin Mikhael D. Ochave

Gov’t seeking to revive Korean visitor market

PHILSTAR

THE Department of Tourism (DoT) said it is targeting a recovery in arrivals from South Korea in order to drive the tourism industry’s recovery.

In a statement on Monday, the DoT said it met with the South Korean travel industry and regulators between March 28 and April 1 in a bid to increase visitor traffic from there.

The Philippine delegation included representatives from Philippine Airlines and Cebu Pacific Air, Inc., which met their counterparts from Asiana Airlines, Inc. and South Korean low-cost carriers Air Seoul, T’way, Jin Air, Jeju Air, and Fly Gangwon. The delegation also met with the South Korean Ministries of Foreign Affairs and Trade, Industry and Energy.

“The Philippines is more than ready to welcome our Korean tourists. Our entry requirements are one of the safest and most relaxed in Asia. It is understandable that some may still be reluctant to travel amid the pandemic but let me reassure you that the Philippine government and tourism industry have instituted measures to keep everyone safe,” Tourism Secretary Bernadette Romulo-Puyat said during a meeting with the South Korean travel industry on March 30.  

Ms. Puyat said that 97% of the Philippines’ tourism workers and other stakeholders are vaccinated.

“With the majority of the country’s tourism workers being fully vaccinated, we have begun rolling out our booster shots for added protection. We hope that these efforts will help entice visitors to return, especially now that we have developed many new tourism circuits catering to the interests of tourists in this new era of travel,” Ms. Puyat said.

According to the DoT, visitor arrivals from South Korea amounted to 1.98 million in 2019, making it the Philippines’ leading source of tourists.

Since the borders reopened on Feb. 10, the Philippines has tallied 5,551 visitors from South Korea.

“Other than its natural beauty, the lure of the Philippines to South Korean tourists can be partly attributed to the proximity of the Philippines, which takes only three and a half hours by air. The emergence of low-cost carriers, resulting in frequent flights and reasonable travel costs, and good quality of service have also attracted Korean tourists to the Philippines,” the DoT said.

In a television interview, Ms. Puyat said that the Philippines has logged 176,857 visitor arrivals since it reopened its borders on Feb. 10 with eased quarantine requirements for vaccinated travelers.

She said the top source of visitors since the reopening are the US, Canada, and the UK.

“The requirement to enter the Philippines is to be fully vaccinated and have either a negative reverse transcription-polymerase chain reaction (RT-PCR) test 48 hours before going here or negative lab-based antigen test 24 hours before departure,” Ms. Puyat said. — Revin Mikhael D. Ochave

Anti-counterfeiting activities planned for rest of Philippines

THE National Committee on Intellectual Property Rights (NCIPR) said it will expand its activities to the rest of the country soon in order to address what it considers to be the proliferation of counterfeit goods.

According to the Intellectual Property Office of the Philippines (IPOPHL), which is one of the 15 members of the NCIPR, the next target area will be Baguio.

IPOPHL Deputy Director General Teodoro C. Pascua said in a virtual press conference on Monday that planned activities in Baguio include inspections and possible raids of establishments selling counterfeit items.

“We are going out. We are reaching out to the other outskirts. We are focusing on Metro Manila first because this is the center (of counterfeiting),” he added.

IPOPHL has announced that the NCIPR seized P24.9 billion worth of counterfeit goods in 2021, against P9.8 billion in 2020.

Mr. Pascua noted that sellers of counterfeits have taken advantage of ease-of-doing-business rules.

“Our desire to facilitate business sometimes is also being abused by these counterfeiters,” Mr. Pascua said, without elaborating.

Mr. Pascua disclosed that the National Bureau of Investigation executed a search warrant in Greenhills Shopping Center in San Juan on Monday, while the Bureau of Customs conducted a raid in an unspecified location.

Greenhills Shopping Center was listed among the 35 physical markets known for counterfeiting and piracy in the 2021 Review of Notorious Markets for Counterfeiting and Piracy issued by the US Trade Representative.

The report found that sellers of counterfeit goods in the mall are growing bolder in displaying the items compared to previously, when they were more discreet. — Revin Mikhael D. Ochave

Clarifications on tax treatment of PAGCOR, its licensees and contractees

Under its Charter, the Philippine Amusement and Gaming Corp. (PAGCOR) was given the mandate to regulate, operate, authorize, and license games, particularly casino gaming. Through this mandate, PAGCOR is expected to generate revenue for the government’s socio-civic and national development programs, as well as help promote the tourism industry.

Not known to everyone, PAGCOR paid a staggering P5.2 billion worth of taxes to the Bureau of Internal Revenue (BIR). This amount represents the 5% franchise tax on PAGCOR and its Licensees/Proponents based on its annual audit report for the year 2020 posted on PAGCOR’s website.

In a bid to collect correct and complete taxes, the BIR issued last March 29 Revenue Memorandum Circular (RMC) No. 32-2022 with the purpose of clarifying the tax treatment of PAGCOR and its licensees and contractees on their income derived from gaming/casino operations and from other related services.

Below is a summary of the RMC:

TAX TREATMENT OF PAGCOR

a. Income from gaming operations

PAGCOR’s income from its operation and licensing of gambling casinos, gaming clubs and other similar recreation or amusement places, and gaming pools are subject to 5% franchise tax in lieu of all taxes.

These incomes include, among others: income from its casino operations; income from dollar pit operations; income from bingo operations, including all variations thereof; and income from mobile bingo operations operated by PAGCOR with agents on commission basis, provided that the agent’s commission income shall be subject to regular tax and consequently, to withholding tax.

The 5% franchise tax shall be in lieu of other direct and indirect taxes like income tax and value-added tax (VAT). In short, PAGCOR is exempted from corporate income tax (CIT), VAT, and other direct or indirect taxes.

b. Income from other related services

On the other hand, income from “other related operations/services” shall be subject to CIT, VAT, and other applicable taxes under the Tax Code.

These incomes include, but are not limited to: regulatory/license fees from licensed private casinos; regulatory/license fees from private bingo operations, including all variations thereof; regulatory/license fees from private casino gaming, internet sports betting, and private mobile gaming operations; regulatory/license fees from private poker operations; regulatory/license fees from private junket operations; regulatory/license fees from SM demo units; regulatory/license fees from all other electronic derivatives of brick-and-mortar games regulated by PAGCOR; and income from other necessary and related services, shows, and entertainment.

Likewise, PAGCOR’s other incomes that are not connected with the above operations are also subject to CIT, VAT, and other applicable taxes under the Tax Code.

Constituted as a withholding agent, PAGCOR shall withhold the appropriate taxes on compensation given to its employees and on income payments to local and foreign suppliers. Moreover, PAGCOR must also collect a qualifying fee from players and remit the same in accordance with the existing laws and regulations.

TAX TREATMENT OF PAGCOR’S LICENSEES

a. Income from gaming operations

PAGCOR’s licensees’ income from the operation of casinos shall be exempt from regular CIT upon payment of the 5% franchise tax since the law is clear that said exemption inures and extends to their benefits.

For VAT purposes, however, the exemption extends only to those individuals or entities that have contracted with PAGCOR; hence, PAGCOR contractees and not licensees. As such, the licensees’ revenue from gaming operations, involving sale of goods and/or services in the course of trade or business, are generally subject to VAT. But should the licensees be contracted with PAGCOR in connection with the latter’s gaming operations, then the sale of goods and/or services performed with PAGCOR in relation to such gaming operations is subject to 0% VAT.

b. Income from other related services/operations

Income realized by PAGCOR’s licensees from other related services/operations shall be subject to regular CIT, VAT, and other applicable taxes under the Tax Code.

TAX TREATMENT OF PAGCOR LICENSEES LOCATED IN ECOZONES/FREEPORTS

a. Income from gaming operations

Income from gaming operations shall be subject to 5% franchise tax. For VAT purposes, the sale of goods and/or services in the course of trade or business is generally subject to VAT. However, if the Licensees are also contracted with PAGCOR in connection with the latter’s gaming operations, then the sale of goods and/or services performed with PAGCOR in relation to such gaming operations is subject to 0% VAT.

b. Income from registered other services/operations

For licensees that are located in ecozones/freeports, their income realized from services/operations that are duly registered with their concerned Investment Promotion Agency (IPA) shall be subject to either 5% gross income tax (GIT) or income tax holiday (ITH), whichever is applicable.

Under the 5% GIT, the licensees are exempt from regular CIT and VAT. On the other hand, under ITH, they are exempt from regular CIT but subject to VAT.

c. Income from unregistered other services/operations

Income realized from related services/operations that are not duly registered with the concerned IPA shall be subject to regular CIT, VAT, and other applicable taxes under the Tax Code.

TAX TREATMENT OF PAGCOR CONTRACTEES

a. Income from contract with PAGCOR

PAGCOR contractees’ revenue derived from their contract with PAGCOR in connection with the latter’s gaming operations shall be exempt from regular CIT upon payment of the 5% franchise tax. However, for VAT purposes, the goods they provided to and/or services they performed for PAGCOR in relation to such gaming operations are subject to 0% VAT.

b. Income from non-gaming revenues or from other related services

These incomes are subject to regular CIT, VAT, and other applicable taxes under the Tax Code.

REMITTANCE OF THE 5% FRANCHISE TAX

The 5% franchise tax shall be payable directly to the BIR, specifically to the concerned Revenue District Office (RDO) where the licensee is registered. This franchise tax is different and distinct from the license/regulatory fees paid by licensees to PAGCOR.

All concerned taxpayers are enjoined to be guided accordingly.

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

 

Nikkolai F. Canceran 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

Top Philippine, Chinese envoys discuss sea row

PHILIPPINE COAST GUARD PHOTO

THE TOP Philippine and Chinese diplomats discussed their countries’ sea dispute at the weekend, with China saying they should not let differences affect bilateral relations.

“The two sides should remove disturbances calmly and properly manage differences and not let them affect the overall situation of China-Philippines relations,” Chinese State Councilor and Foreign Minister Wang Yi said in a Facebook post on Monday.

Philippine Foreign Affairs Secretary Teodoro L. Locsin, Jr. went to Tunxi, China on Sunday to speak with his Chinese counterpart on the sea dispute after tensions over China’s intrusion into Manila’s exclusive economic zone in the South China Sea.

China claims more than 80% of the waterway based on a 1940s map that overlaps with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines. Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas.

It has refused to honor a 2016 ruling by a United Nations-backed tribunal that voided its claim.

Both Mr. Locsin and Mr. Wang agreed that maritime issues should be placed in an “appropriate position in bilateral relations,” according to the Chinese Foreign minister.

The Philippine Coast Guard last month said a Chinese vessel’s close distance maneuver had risked a collision near the Scarborough shoal. China said the Philippines should respect its sovereignty over the shoal.

The Philippines later summoned Chinese Ambassador Huang Xilian over its navy’s intrusion in the Sulu Sea.

The vessel had reached the Cuyo Group of Islands in Palawan province and Apo Island in Mindoro, it said in a statement. Philippine Navy vessel BRP Antonio Luna challenged the ship, which responded by saying it was exercising innocent passage.

China violated international law when People’s Liberation Army Navy electronic reconnaissance ship ignored orders from the Philippine Navy for them to leave immediately, the Philippine Foreign Affairs department said.

Its movements did not follow a track that could be considered continuous and expeditious, lingering in the Sulu Sea for three days it added.

In 2019, a Chinese aircraft carrier, the CV-16 Liaoning, had also passed through the Philippines’ Sibutu Passage — a narrow sea lane between the main island of Tawi-Tawi and Sibutu Island — without notice.

“We hope that the Philippine ships will earnestly respect China’s sovereignty and rights and interests, abide by China’s domestic law and international law and avoid interfering with the patrol and law enforcement of the China Coast Guard in the above-mentioned waters,” Chinese Foreign Ministry spokesman Wang Wengbin had said.

The Philippine Coast Guard said it was the fourth time in 10 months since May last year that Chinese Coast Guard ships had sailed too close to Philippine vessels, a “clear violation of the 1972 International Regulations for Preventing Collisions at Sea.”

The shoal, which the Philippines calls Panatag, is about 120 nautical miles (nm) west of Luzon island and within the Southeast Asian nation’s 200 nm exclusive economic zone.

Mr. Wang said China sees the Philippines as a priority in its neighborhood diplomacy, which explains why its policies toward the country has always remained friendly. 

“China is ready to speed up the construction of key infrastructure projects with the Philippines, continue to provide COVID-19 (coronavirus disease 2019) vaccine assistance and enhance public health cooperation according to the need of the Philippines,” he said.

During the meeting, Mr. Locsin said Philippine-China relations have become increasingly mature, while bilateral practical cooperation has achieved historic results, benefiting both sides, according to the Chinese Foreign Ministry.

China is “committed to independence and peaceful development,” by promoting the development of other countries in the region, he was also quoted as saying.

China was the Philippines’ biggest source of imports in the first 11 months of last year as it shipped $24.6 billion worth of goods to the country, government data showed.

It was also the second-biggest export destination, receiving $10.6 billion in goods from the Philippines. — Alyssa Nicole O. Tan

Comelec to burn defective ballots

PHILIPPINE STAR/ MICHAEL VARCAS

THE COMMISSION on Elections (Comelec) will burn defective ballots for this year’s elections, according to an election commissioner.

“We will burn the defective ballots in front of members of the media, representatives of political parties, candidates and citizen’s arms,” Election Commissioner George Erwin M. Garcia said in a news briefing on Monday. “We will still print testing ballots for final testing and sealing and then reprint defective ballots.”

There are about 178,000 defective ballots and 320,000 ballots for verification as of Monday, he said.

Comelec last week said it had finished printing 67.4 million ballots for the May 9 national and local elections before the April 25 target.

Meanwhile, Mr. Garcia said the second presidential debate on Sunday had improved from last month’s debate.

“This debate really showed the capabilities and qualifications of each candidate,” he said in Filipino. “Their positions and platforms were more clearly expressed.”

Meanwhile, Senator Mary Grace Poe-Llamanzares, who heads the committee on public services, said cash aid distribution to public drivers and operators should be exempted from the election ban.

“We call on the Commission on Elections to expedite its decision on the appeal by the Land Transportation Franchising and Regulatory Board for exemption to allow it to continue the distribution,” she told reporters in a Viber message.

“Our public utlity vehicle drivers and operators have waited long for the cash aid that we have funded in the annual budget to bring succor to our people in times of distress,” she said. — John Victor D. Ordoñez and Alyssa Nicole O. Tan

Palace: Duterte’s spiritual adviser can defend himself

Quiboloy (right) conversing with Philippine President Rodrigo Duterte (left) — PCOO

THE PRESIDENTIAL palace on Monday said President Rodrigo R. Duterte’s spiritual adviser should defend himself in court after a United States paralegal said she had helped smuggle members of his religious group into the United States.

“We reiterate that Pastor Apollo C. Quiboloy of the Kingdom of Jesus Christ is a private individual,” the president’s spokesman Jose Martin M. Andanar said in a statement. “He can defend himself in court.”

Six of the nine defendants have been arrested, including Maria de Leon, who confessed that she had participated in a scheme with members of the church for eight years, providing residency and citizenship to its members through fraudulent marriages.

The three other members were believed to be in the Philippines, including Mr. Quiboloy, Mr. Duterte’s long-time friend and spiritual adviser.

A 74-page indictment in November cited a labor trafficking scheme where church members were allegedly brought to the US using fraudulently obtained visas and forced to solicit donations to a bogus children’s charity.

Prosecutors said the donations were used to pay for the “lavish lifestyles” of church leaders.

Mr. Quiboloy and two other defendants recruited females aged 12 to 25 as personal assistants who were required to prepare Mr. Quiboloy’s meals, clean his residences and have sex with him as part of their so-called “night duty,” according to the US Justice department indictment.

Ferdinand S. Topacio, Mr. Quiboloy’s lawyer, has denied all charges and called the victims “polluted witnesses who are disgruntled members with axe to grind against the pastor.”

He also warned the public that “any libelous statements” against Mr. Quiboloy would be “dealt with to the fullest extent of the law.”

The US and the Philippines have an extradition treaty that was signed in Nov. 1994. In March, the Philippine Justice department said it had yet to receive an endorsement from the Foreign Affairs department on the possible extradition of the religious leader to the US. — Alyssa Nicole O. Tan

Senator asks all schools to start physical classes 

SEN. WIN GATCHALIAN FB PAGE

A SENATOR on Monday sought the quick resumption of limited face-to-face classes amid the country’s so-called high learning poverty. 

All schools should start limited physical classes as the first step to solve the impact of the coronavirus on the education sector, Senator Sherwin T. Gatchalian, who is running for reelection, said in a statement.  

“We need to focus on the recovery of the education sector to ensure that our students learn properly,” he said in Filipino.  

More than 2.6 million students in 10,206 of 14,396 nominated schools started limited face-to-face classes last month.   

Mr. Gatchalian, who heads the Senate basic education committee, said he would refile a bill that seeks to start a learning recovery program through system-wide tutorial sessions.  

The program will cover learning competencies under Language and Mathematics for Grades 1 to 10, and Science for Grades 3 to 10. It also seeks to prioritize Reading. Reading, writing and number skills will be prioritized among Kindergarten students.  

Mr. Gatchalian cited a joint report by the United Nations International Children’s Emergency Fund with the United Nations Educational, Scientific and Cultural Organization and the World Bank that  showed less than 15% of 10-year-old children in the Philippines could  read or understand a simple story.    

This translates to a learning poverty of more than 85%, slightly lower than the World Bank estimate of 90% last year. In 2019, learning poverty in the Philippines was estimated at 70%. — Alyssa Nicole O. Tan 

Robredo, Ka Leody, Domagoso tackle the green energy question

PHILSTAR FILE PHOTO

THREE presidential candidates on Sunday laid down their plans on expanding the country’s use of renewable energy sources to help mitigate the global climate crisis, but an environmental advocacy group pointed out the need for aspiring future leaders to be more well-versed with the different options and transition issues. 

During the second presidential debate of the Commission on Elections (Comelec), Vice-President Maria Leonor “Leni” G. Robredo said she plans on using more liquefied natural gas and stressed the need for the country to be carbon-neutral. 

“It is really clear that we need to be carbon-neutral, so we need to prepare how to transition from being fossil fuel-dependent,” said Ms. Robredo. “What the experts suggest is using liquefied natural gas.” 

She noted that the country should be carbon-neutral by 2050. 

Department of Energy data show that in 2020, the country’s power mix consisted of 57% coal-fired, 21% renewable energy, 19% natural gas, and 2% oil-based. 

The Philippines’ transition plan has set a target of a more balanced energy mix by 2040 with 50% from green energy. 

Labor Leader Leodegario “Ka Leody” de Guzman also expressed his stance of doing away with coal-fired power plants and noted that there is already a law for green energy adoption.   

The Renewable Energy Act of 2008 aims to accelerate the exploration and development of different renewable energy sources such as solar, hydro, wind, and geothermal. 

Manila Mayor Francisco “Isko” M. Domagoso, for his part, put focus on solar energy. 

“I will adapt on what Germany and Netherlands is doing right now: agrivoltaic system,” Mr. Domagoso said, referring to the combined use of land areas for agricultural production and power generation.  

“This is adaptable within the geography of our country because we are a tropical country. We have so much sun and we can harness the power of the sun to produce energy.” 

Greenpeace, an independent environmental group, commended Comelec for including climate issues on the debate agenda. 

Greenpeace Campaigner Khevin Yu said “some of the answers last night showed us that our future leaders still have misconceptions on what a genuine renewable energy transition looks like.” 

In a statement released Monday, Mr. Yu said, “Now that the gates of electoral discourse have opened up to environmental issues and renewable energy, it is our future leaders’ responsibility to study and make informed decisions in addressing the climate crisis.” 

NEXT DEBATE
Meanwhile, Election Commissioner George Erwin M. Garcia said the second presidential debate on Sunday showed improvements from the first held last month. 

“This debate really showed the capabilities and qualifications of each candidate,” he said during a Laging Handa briefing on Monday. “Their positions and platforms were more clearly expressed.” 

The presidential debate was held at the Sofitel Harbor Garden Tent in Pasay City. There was no live audience except for the companions of the candidates and members of the media. 

During the debate, candidates were asked a general question per segment and in each succeeding portion, the candidates were divided into groups of three to debate on a topic. 

Mr. Garcia noted that the next Comelec-organized debate on April 23 will be in town-hall format, which will allow ordinary citizens to directly ask candidates questions. 

He also reiterated that Comelec may push for Congress to pass a law making the presidential debates mandatory in the next elections.  

In the first two debates, nine of the 10 presidential candidates participated.  The late dictator’s son and namesake Ferdinand “Bongbong” R. Marcos was the only absentee on both events. — John Victor D. Ordoñez with reports from Kyle Aristophere T. Atienza, Alyssa Nicole O. Tan, and Jaspearl Emerald G. Tan 

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