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Tight power supply conditions forecast for early 2023

PHILSTAR FILE PHOTO

THE Department of Energy (DoE) said red and yellow alerts are likely on the grid in early 2023, under a scenario that assumes the loss of the output of a key power plant in Batangas City.

In a virtual briefing, Energy Secretary Raphael P.M. Lotilla said during a forum organized by the Economic Journalists Association of the Philippines that the power outlook in 2023 is looking “difficult” if the Ilijan gas-fired plant does not operate following the end of its Malampaya gas supply deal.

“But for 2023, the situation is a bit difficult, especially in the summer months. This scenario again assumes that the Ilijan will not be available,” Mr. Lotilla said.

The 1,200-megawatt Ilijan plant is due to start using imported gas after the end of its Malampaya supply deal. Plant operator San Miguel Corp. has said that a liquefied natural gas terminal from which Ilijan plans to tap fuel will be operational by February.

Mr. Lotilla said that conditions in 2023, especially in the dry season, make yellow and red alerts likely.

The DoE, in its presentation, forecast 17 yellow alerts and three red alerts. The red alerts are expected in May and June.

“Capacity usually falls in May and June because of the hydros in Luzon are unavailable to deliver at this particular point,” Mr. Lotilla said.

Yellow alerts are issued when reserves fall below a designated safety margin. Red alerts are issued when the supply-demand balance worsens further, signaling the possibility of rotational brownouts.

Mr. Lotilla said that the department is now addressing the transmission bottlenecks which are keeping about 474 megawatts of stranded capacity from power plants in Bataan from reaching Metro Manila.

“We are now working with the National Grid Corp. of the Philippines to ensure the timely completion of transmission projects,” Mr. Lotilla said.

He said that the NGCP hopes to complete the transmission projects by year’s end.

“Some additional solar power plants will become operational (and be) available in the first quarter,” he added.

The DoE is also working to facilitate the resolution of right of way disputes affecting some projects. — Ashley Erika O. Jose

Cement industry says ‘premature’ to let safeguard measures vs imports expire

PHILSTAR FILE PHOTO

THE cement industry said it requires more time to adjust to competition from imports with the looming expiry of safeguard measures protecting domestic manufacturers on Oct. 22, which the Tariff Commission (TC) did not extend.

Cirilo M. Pestaño, Cement Manufacturers Association of the Philippines, Inc. (CeMAP) executive director, said in a statement on Monday that the safeguard measures help the industry prepare for global competition.

“CeMAP is saddened by the recommendation of the honorable TC to discontinue the implementation of the safeguard measure upon its expiry in Oct. 22, 2022. The requested safeguard measure extension was necessary for adjustment plans to be completed in order for the industry to be ready for global competition,” Mr. Pestaño said.

Mr. Pestaño said the expiry of safeguards against cement imports “jeopardizes” the measures taken by the industry in response to the challenges brought on by the coronavirus disease 2019 (COVID-19) pandemic.

“Terminating the safeguard measures prematurely jeopardizes these efforts (to adjust) and undermines the painstaking work of the cement industry to stay operational during the very difficult months of the still ongoing pandemic, wherein it continued implementing adjustment plan projects, employing workers, and allying with government and economic stakeholders to jumpstart national recovery,” he added.

Following an application to extend safeguard measures, the TC issued its final report dated Oct. 5 concluding that there was no “imminent threat (of) serious injury” and “significant overall impairment” on the domestic cement industry from imports of ordinary Portland Cement Type 1 and Blended Cement Type 1P.

“The commission recommends that the imposition of the definitive general safeguard measure on imports of Ordinary Portland Cement Type 1 and Blended Cement Type 1P no longer be extended,” the TC said.

Safeguard measures are authorized by Republic Act 8800. They are triggered when domestic industry claims it is being unduly harmed by imports.

According to the TC, the request to extend the safeguard measures was rejected because the domestic cement industry “has undertaken and continues to undertake” efforts to adjust versus import competition.

The petition for extension was filed by CeMAP early this year, which was represented by four member firms: CEMEX Holdings Philippines – APO Cement Corp. and Solid Cement Corp.; Holcim

Cement Philippines; and Republic Cement & Building Materials, Inc.

“During the period under review (2019-2021), the domestic industry maintained its market standing, increased its mill capacities, stabilized its manufacturing costs, and improved its profitability. There is no evidence of the existence of an imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future” the TC said.

“The non-extension of the safeguard measure on cement would prevent price increases in both local and imported cement which, in turn, would lead to positive spillover effects on the growth of the construction industry, which has a high contribution to gross capital formation,” it added.

Mr. Pestaño said the threat remains from cement imports.

“The threat of injury to the cement manufacturing industry remains imminent from neighboring exporting countries, who continue to this day to flood the domestic market with imported cement products even with the safeguard measure enforced,” Mr. Pestaño said.

Asked to comment, importer Philcement Corp. President and Chief Executive Officer Eduardo A. Sahagun said that the TC’s decision helps improve the competitiveness of manufacturers.

“I think what is important is that our industries are competitive, not only in the Philippines, but also at least regionally,” Mr. Sahagun said in a mobile phone interview.

“It is also important that the construction projects of the government will not be delayed because we need those to pump prime our economy. It is vital that the proper cement that they need will be available at the time they need it,” he added.

In 2019, the Department of Trade and Industry (DTI) released Department Administration Order (DAO) 19-13 which imposed safeguard measures on the two types of cement for three years after it found that higher cement imports pose a threat of serious injury to the cement industry.

Under the DAO, the safeguard duties ranged from P250 per ton in the first year of implementation, down to P200 per ton this year

The TC in its final report said Type 1 and Type 1P cement imports rose 11.2% to 5.896 million metric tons (MT) in 2020, and16.2% to 6.850 million MT in 2021.

Type 1 and Type 1P cement imports in the first six months also hit 3.5 million MT, up 7% against the three-year average of 3.27 million MT between 2019 and 2021. — Revin Mikhael D. Ochave

Fundamentals of entity characterization in TPD

How much do you know about your family member, friend, colleague, or significant other? Is your characterization of a person reflective of his or her real character? Does your characterization of a person affect how you deal with the person?

These same questions apply in business, particularly in the context of transfer pricing. Your knowledge of the nature of a particular business determines the entity characterization. And in turn, the entity characterization influences the direction and tone of transfer pricing documentation (TPD).

Let’s talk about the fundamentals of entity characterization according to Revenue Audit Memorandum Order (RAMO) No. 1-2019.

WHAT IS ENTITY CHARACTERIZATION?
According to last month’s article, “How FAR are you in transfer pricing documentation?,” one of the key components of a transfer pricing analysis is the functions, assets, and risks (FAR) analysis, wherein the functions performed, assets deployed, and risks assumed by the related parties involved in the controlled transactions are analyzed.

The result of the FAR analysis becomes the foundation of entity characterization, which sums up the overarching relationship of each function, asset, and risk analysis of the entity and sets the direction in having a meaningful comparison of the price or level of income of the entity in a controlled transaction against the price or level of return from a similar independent transaction.

Entity characterization, in a nutshell, answers the question, “What type of entity is the company to the extent of how the economic risks and profits are distributed in a controlled transaction in the industry in which the company operates?”

HOW IS ENTITY CHARACTERIZATION DETERMINED?
The first step of entity characterization is completing the FAR analysis. By establishing the FAR of a company, including the structure and organization, and the extent of control or influence, of its transacting related parties, the entity characterization can be determined, following the Organisation for Economic Co-operation and Development (OECD) transfer pricing guidelines.

The evaluation of a controlled transaction for entity characterization should be based not only on the terms of the agreement but more importantly, on the actual conduct of the controlled transaction between and among transacting related parties. Essentially, substance over form bears material weight in entity characterization.

WHAT ARE EXAMPLES OF ENTITY CHARACTERIZATION?
Some of the commonly used entity characterizations based on the nature of the business activities are listed below.

Manufacturing: full-fledged, contract and toll manufacturer

Full-fledged manufacturers perform all the manufacturing functions, such as research and development (R&D), product planning, raw materials sourcing, manufacturing process, quality control, distribution and logistics, and after sale functions, and bear their associated risks.

Contract manufacturers, on the other hand, perform limited manufacturing functions and produce the product for their principal generally based on pre-agreed quantities and pre-agreed schedules which the principal guarantees to purchase and generally shoulder limited risks.

Toll manufacturers, in contrast to contract manufacturers, perform very limited manufacturing functions for the principal without taking title to the raw materials or finished products and bear limited risks.

Distributor: full-fledged and limited-risk distributor, and commission agent

Full-fledged distributors perform all the sales and distribution functions from marketing to inventory management and bear their associated risks. Limited-risk distributors perform buy and sell functions with limited risks. Commission agents perform as sale representatives, receive commission based on sales and do not take ownership of the products, and bear limited risks.

Service provider: entrepreneurial or full-fledged service provider, and risk mitigated or routine service provider

Entrepreneurial or full-fledged service providers perform all the service functions, from research and development and conceptualization of service to provision of service and warranty, and bear their associated risks. Risk mitigated or routine service providers perform routine support service as dictated by their principal and bear limited risks.

WHY IS ENTITY CHARACTERIZATION IMPORTANT?
By determining the accurate characteristics of the entity’s business, the expected level of price or return by the entity can be known and the selection of reliable comparable can be made.

One cannot compare the price or level of return that a full-fledged manufacturer earns with that of a contract or toll manufacturer. By its very nature, entity characterization is the glue that binds the connection of the benchmarking analysis of the price or return in the entity’s TPD.

For example, a contract or toll manufacturer is expected to maintain a consistent level of profitability because it only carries out production as ordered by a related party and does not perform other functions such as operational strategy setting, product R&D, and sales. Should such a manufacturer suffer losses, it must prove that the losses are not a result of its transactions with a related party but rather a result of justifiable commercial reasons.

WHAT IS THE IMPACT OF ENTITY CHARACTERIZATION IN A TRANSFER PRICING AUDIT?
Typically, a transfer pricing audit evaluates three key items: the characteristics of a company with respect to the controlled transaction, the selection of the transfer pricing method, and the application of the arm’s length principle.

The Bureau of Internal Revenue (BIR) can re-characterize a controlled transaction when the economic substance of a controlled transaction differs from its form or when the arrangements made in relation to the controlled transaction, when viewed in their totality, differ from those which would have been adopted by independent parties behaving in a commercially rational manner.

As emphasized in RAMO No. 1-2019, the need to re-characterize a transaction is based on the rationale that the character of the transaction is derived from the relationship between the parties and is not determined by normal independent conditions. As such, there is potential risk that the controlled transaction may have been structured by the company to avoid or minimize tax.

The perceived potential risk is based on the following perspectives: (a) that the related parties can enter into a variety of contracts and agreements compared to independent parties given that the normal conflict of interest, which exists between independent parties, is often non-existent; (b) that the related parties agree on a specific nature of certain transactions that are rarely or not encountered between independent parties; and (c) that the contracts under a controlled transaction are easily altered, suspended, extended, or terminated according to the overall strategies of the group of related parties to the point that such alterations can be made retroactively.

CAN ENTITY CHARACTERIZATION MAKE OR BREAK YOUR TPD?
Yes. Entity characterization is not just a formality in the TPD. It drives the selection of the transfer pricing method, the identification of comparable companies, and the results of benchmarking analysis.

In view of the BIR’s authority to re-characterize an entity’s controlled transaction under certain circumstances, potentially disputing the appropriateness of the comparable companies and the benchmarking results of the TPD, it is in the company’s best interest to take prudent actions in accurately evaluating its characterization. After all, an incorrect assertion on entity characterization could lead to significant implications during a transfer pricing audit.

Stay tuned for our next article as we continue taking you through the other components of the TPD!

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.

 

Sheena Marie Daño is a director of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

De Lima lawyer debunks Imee Marcos’ claim of house arrest offer since July

OFFICE OF SEN. LEILA DE LIMA/RELEASE

DETAINED former Senator Leila M. de Lima’s lawyer and spokesman on Monday said they were not aware of an offer for house arrest until Sunday when Senator María Imelda “Imee” R. Marcos said it had been on the table since July.

This comes after the former senator, known to be one of ex-President Rodrigo R. Duterte’s fiercest critics, was taken hostage by one of three inmates who tried to escape jail near the Philippine capital on Sunday morning.

After the incident, Ms. Marcos said in a Viber message to reporters: “I strongly urge Sen. Leila de Lima to have the medical checkup she requires, with her own physician, as well as immediately take up the extended home furlough that both the DoJ (Department of Justice) and the PNP (Philippine National Police) offered as early as July.”

“To be candid, we learned that offer only through Senator Imee Marcos yesterday,” Ms. De Lima’s lawyer and spokesman, Filibon F. Tacardon, told ABS-CBN News on Monday, referring to the “extended home furlough.”

“We have not actually received a formal offer for this extended home furlough… and it came to us only yesterday,” he added.

Nonetheless, Mr. Tacardon said they will take the supposed offer seriously.

“We are now ready to discuss the matter of applying for an extended home furlough with (former) Senator Leila de Lima and discuss with her the options available — advantages and disadvantages, that is what I mean when I say we are taking it seriously now,” he said.

The former senator declined the suggestion of President Ferdinand R. Marcos, Jr. to be transferred to another detention center, as disclosed by Interior Secretary Benjamin C. Abalos, Jr. who visited her at the Camp Crame police headquarters in Quezon City after Sunday’s incident.

“What is paramount is the safety of everyone including (former) Sen. De Lima. (Former) Senator De Lima opted to stay at her current facility,” he said in a Facebook post on Sunday, noting that she mentioned feeling safer at the police custodial center.

Mr. Tacardon explained that the initial response of the senator may be due to her unstable mental state at the time.

“We have to understand that the incident was very fresh on her mind. She was clearly traumatized by the incident, and she has not yet processed it,” he said. “But later, she relayed to her defense team some instructions, and immediately, we discussed the possibility of applying for a home furlough instead.”

In Ms. De Lima’s statement on the hostage situation, she said that the hostage-taker was already “determined to die and to take me with him.”

“After being told by the hostage-taker that since his two other companions were already dead, he’s certain he would also be killed and he might just as well also kill me, I consider what happened to me as a near-death experience,” she said.

Meanwhile, a bail hearing for one of the two pending drug trafficking cases against Ms. De Lima on Monday was reset to October 24 as she was exposed to Mr. Abalos, who announced Monday that he tested positive for COVID-19.

At least four key witnesses have retracted their allegations about the former lawmaker’s involvement in the illegal drug trade.

The Ombudsman had dismissed bribery charges against Ms. De Lima, who has been in jail since February 2017, and her former aide as it found no probable cause to indict them.

In February last year, a Muntinlupa court acquitted the top Duterte critic, citing government prosecutors’ failure to prove her involvement in drug trafficking. — Alyssa Nicole O. Tan and John Victor D. Ordoñez

Bills on higher pay for nurses, scholarship for forensic pathologists filed

PHILIPPINE STAR/EDD GUMBAN

A BILL has been filed in the House of Representatives seeking to increase the minimum base monthly salary of nurses in public medical institutions to P63,997 from P36,619 to encourage more licensed practitioners to stay in the country.

Quezon City Rep. Marvin C. Rillo filed House Bill 5276, which proposes to amend the Philippine Nursing Act of 2002’s provision on pay level.

“Our measure will also encourage a greater number of high school graduates to pursue a Bachelor of Science in Nursing degree in college,” Mr. Rillo said. “Once (the bill is) enacted, we expect our measure to help slow down the rapid migration of Filipino nurses to English-speaking overseas labor markets.”

The Department of Health last month said that public and private hospitals need a total of 106,541 nurses to address vacancies.

Meanwhile, a bill that seeks to provide scholarships to medical students who want to work in law enforcement has also been filed.

House Bill 5129, or the Forensic Pathologists Scholarship Act, proposes a scholarships program for the practice of forensic pathology.

“Forensic pathologists are crucial if we want to be able to solve criminal cases quickly,” Ang Probinsyano Party-list Rep. Alfred C. Delos Santos said in a statement on Monday, noting that there are currently only two practitioners in the country.

The proposed measure also covers expenses for medical licensure review and specialization.

Under the bill, the Commission on Higher Education is tasked to establish the program and issue the corresponding implementing rules and regulations. — Kyanna Angela Bulan and Matthew Carl L. Montecillo

Samal bridge detailed engineering design underway; landowners keep up call for realignment

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THE DEPARTMENT of Public Works and Highways (DPWH) and its Chinese contractor have started borehole drilling activities for the Samal-Davao bridge, asserting that the structure’s approved alignment is the most cost-efficient.

“Talking about the other alignment, it is diagonal but the chosen alignment is the shortest and the most cost-effective route,” DPWH-Davao Region Spokesperson Dean I. Ortiz said following a statement released by the department last week.

DPWH said the onshore and offshore drillings are part of the geotechnical investigation mapped out by contractor China Road and Bridge Corp. for the bridge’s detailed engineering design.

The department said the final alignment of the project, which will connect Samal Island to mainland Mindanao through Davao City, was “exhaustively studied with most beneficial effects in terms of technical, financial, economic, environmental and social impacts.”

The Rodriguez-Lucas family, whose properties will be affected by the bridge’s landing site in Samal — including Paradise Island Park and Beach Resort and Costa Marina Beach Resort — have been appealing for a realignment, citing the reefs in the area that they have nurtured.

The family is supported by several groups, including the Save Samal Reefs Alliance, which has called for a suspension of the project to reconsider the alignment.

It said the issue is not just about right of way but “rights of nature.”

DPWH said the project has complied with all requirements, including an environmental compliance certificate. It added that a multipartite team will be monitoring construction while an Environmental Guarantee Fund will be set up for rehabilitation works in affected areas.

Meanwhile, community leaders expressed support for the project during a dialogue on Saturday led by the National Economic and Development Authority (NEDA) and leaders of the provincial and city governments.

Eric P. Obiso, chair of one of the 46 barangays in Samal, said residents had been pushing for a bridge for decades to boost economic growth, and that the reality is there will be an impact on the environment wherever the landing is placed.

“Any project will definitely affect the environment, so wherever we put the bridge will definitely be affected. We have been longing (for a bridge) for a long time and not only the Samaleños but the entire Region 11 (Davao) for sure,” he said during the meeting.

Mayor Al David T. Uy of Samal, formally named Island Garden City of Samal, told NEDA Secretary Arsenio M. Balisacan during the dialogue that majority of residents back the project.

The planned four-lane bridge, funded under a $350-million loan deal with China, will span 3.98 kilometers over the Pakiputan Strait. — Maya M. Padillo

BCDA allocates land for planned virology institute at New Clark City 

BCDA.GOV.PH

THE BASES Conversion and Development Authority (BCDA) has allocated five-hectares at the New Clark City in Tarlac province for a planned Virology Science and Technology Institute of the Philippines.

Aileen R. Zosa, BCDA president and chief executive officer, said in a statement on Monday that the BCDA recently entered into an agreement with the Department of Science and Technology (DoST) for a 50-year use of the land, extendable for another 25 years.

“BCDA recognizes the value of this virology research center in our battle against the coronavirus disease 2019 (COVID-19) pandemic, as well as any other infectious diseases which may endanger us in the future,” Ms. Zosa said.

The DoST has begun its research and preparations for the center while awaiting Congress to pass a bill for its establishment, according to the BCDA.

Several versions of the measure have been filed in both the Senate and the House of Representatives.

BCDA said DoST will submit a comprehensive development plan for the property within six months, which will be assessed for compliance with the New Clark City master plan and design standards.

The planned virology complex will feature an administration building, lecture hall, good manufacturing product building, various laboratories, animal isolation, plant cultivation area, dormitory, power station, and sewage treatment plant. — Revin Mikhael D. Ochave

Senator reiterates push for mental health services in all schools

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE CHAIR of the Senate Basic Education Committee on Monday reiterated his push for the establishment of mental health services in all schools nationwide.

In line with the observance of World Mental Health Day on Oct. 10, Senator Sherwin T. Gatchalian underscored the importance of Senate Bill 379 or the Basic Education Mental Health and Well-Being Promotion Act.

The measure seeks to provide mental health services, emotional, developmental and preventive programs, and other support services to learners and teachers in primary and secondary schools, both public and private.

“Due to the damage caused by the pandemic to our students and teachers, now there is a greater need for services and programs that will take care of their mental health,” Mr. Gatchalian said in Filipino in a statement. “That’s why, with the rise of the education sector, we will also ensure that there will be adequate mental health services in every school in the country.”

The bill proposes to hire and deploy mental health professionals and provide higher salaries for guidance counselors.

Mr. Gatchalian cited that the Philippines only has 4,069 guidance counselors as of June while there are over 28 million learners.

Under Department of Education guidelines, there should be one guidance counselor for every 500 students. — Alyssa Nicole O. Tan

Labor group condemns arrest of member, transport group leader

LABOR group Kilusang Mayo Uno (KMU) has condemned the arrest on Monday of one of its members and a transport group leader over alleged direct assault charges.

In a statement posted on its social media accounts, KMU said its international officer, Kara Taggoaoa, and PASODA-PISTON President Larry Valbuena were arrested by police officers after an arraignment they attended at a Quezon City trial court for a separate robbery case against them.

“This is yet another attack on human rights defenders under the current government,” KMU said in Filipino.

The cases stemmed from an incident during a rally in front of the Commission on Human Rights in 2020, where a police officer claimed they were assaulted by the two.

The bail for their release was set at P36,000 each, according to a copy of the arrest warrant posted on KMU’s Facebook page.

“We condemn the weaponization of the law to silence critics of the government,” the labor group added.

In a separate statement, ACT-Teachers Rep. France L. Castro called on authorities to stop harassing human rights workers in the country.

“Taggaoa and Valbuena are leaders and organizers of workers and jeepney drivers and operators calling for just and decent wages, junking of excise taxes on oil, adequate social services and aid for the poor, and rights defenders of workers,” she said. “They are not criminals.”

Human rights group Karapatan also denounced the arrests saying the right to organize and conduct rallies is protected under the law.

“Exercising the people’s right to conduct assemblies and rallies and to express their opinions freely without threats, even during a public health emergency, are fundamental rights, which should not be criminalized in whatever way by authorities,” it said. — John Victor D. Ordoñez

Rights group calls for mass pardon for low-level offenders 

PHILIPPINE STAR/ JOVEN CAGANDE

A POLITICAL prisoners support group has asked the government to consider releasing low-level offenders to help decongest the country’s jails.

In a statement on Monday, Kapatid convenor Fides M. Lim said the Philippines should immediately adopt steps to grant these prisoners early parole or probation as well as release elderly and sick inmates.

The call came following United States President Joseph R. Biden, Jr.’s recent move to grant a mass pardon for those in jail for marijuana possession, a low-level offense in the US.

“All possible measures should be taken by the government to decisively address the congestion problem, including serious moves similar to US President Biden’s mass pardon initiative,” Ms. Lim said.

The group recognized the government’s release of over 350 inmates from the national penitentiary last month, but urged the Justice department to prioritize the cases of “high-risk” prisoners with illnesses.

“Why include the very elderly in planned releases but shut the door on 83-year old farmer and SELDA member Gerardo Dela Peña who is turning blind after nearly 10 years in prison and is already lined up for release?,” said Ms. Lim, citing the case of a human rights defender who has been detained for murder charges.

Justice Secretary Jesus Crispin C. Remulla told the United Nations Human Rights Council last week that the government aims to release 5,000 prisoners by next year.

He earlier said the national penitentiary in Muntinlupa, which was designed to house 6,000 prisoners, had over 17,000 inmates.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making them the most overcrowded prison system in the world, according to the World Prison Brief.

Many of the country’s jails fail to meet the minimum United Nations standards given inadequate food, poor nutrition and unsanitary conditions, according to Human Rights Watch (HRW).

The Commission on Human Rights has repeatedly flagged the worsening congestion in Philippine jails, more recently spurred by the arrests of suspects in former President Rodrigo R. Duterte’s deadly war on drugs. — John Victor D. Ordoñez 

Coterminous Palace employees, officials extended

THE PRESIDENTIAL Palace on Monday released an order extending until Dec. 31 the term of employees and officials in the Office of the President whose appointments were coterminous with the previous administration.

The memorandum was meant “to prevent disruption in the delivery of government offices,” Executive Secretary Lucas P. Bersamin said in a memorandum order dated Sept. 27.

The appointees will remain until Dec. 31 “unless their appointments are sooner revoked, resignations accepted, replacements appointed, or reappointments issued,” according to the order, which was released on Monday.

In July, Mr. Marcos’ office issued a memorandum extending the term of office of designated officers-in-charge (OICs) of departments, agencies, and bureaus until Dec. 31 this year.

It supplemented an earlier memorandum that designated as OIC the next-in-rank and most senior official in government departments, offices, agencies, and bureaus whose heads had yet to be appointed.

Among Cabinet-level officials, Mr. Marcos has yet to appoint a secretary for the Department of Health. — Kyle Aristophere T. Atienza

P124-B cash aid still being pushed for inclusion in 2023 budget

PHILIPPINE STAR/EDD GUMBAN

A GROUP of progressive party-lists that form part of the minority in the House of Representatives continue to push for the inclusion of a P124-billion fund for cash aid in the 2023 budget, a move supported by public finance experts.   

“We agree that ayuda (cash aid) should be part of the 2023 budget,” Kenneth Isaiah I. Abante, the coordinator of Citizen’s Budget Tracker, said during a forum on Monday organized by the Makabayan bloc.   

Gabriela Party-list Rep. Arlene D. Brosas, a member of the bloc, said the funds would be used to provide a one-time cash aid of P2,000 to 62 million poor and vulnerable individuals.

Ms. Brosas added that a maximum of P10,000 could be given to 12.4 million poor families. 

Mr. Abante said cash aid remains crucial as it supports teachers and other low-income workers affected by the coronavirus pandemic. 

“It’s an important reminder that the pandemic isn’t finished, as we speak there’s around a 15% positivity rate,” he said.   

Zy-za Nadine M. Suzara, a public finance expert and executive director of I-Lead, said the government can afford the cash aid by realigning other funds.  

“We need cash aid because the pandemic is still ongoing,” Ms. Suzara said during the same forum.   

She said the proposed 2023 expenditure program could put more emphasis on people-centered programs. — Matthew Carl L. Montecillo

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