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Omicron dominant, says Philippine health chief

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THE HIGHLY mutated Omicron variant has now dominated Philippine coronavirus infections, its health chief said, as the country breached 3 million cases on Tuesday.

The Philippines was now at critical risk for COVID-19 transmission spurred by the highly mutated Omicron variant, which has replaced Delta as the dominant strain, Health Secretary Francisco T. Duque III said at a taped Cabinet meeting with President Rodrigo R. Duterte aired on Monday night.

“Based on the latest run of our whole genome sequencing, 60% were positive for the Omicron variant,” he said in Filipino. “That is the dominant variant now, whereas before it was Delta.”

The Southeast Asian nation posted 28,007 coronavirus infections on Tuesday, the third-highest daily tally since the pandemic started, according to data from the Department of Health (DoH). This brought the total to more than three million.

The death toll hit 52,511 after 219 more patients died, while recoveries increased by 4,471 to 2.79 million, it said in a bulletin.

More than 44% of 58,409 samples tested on Jan. 9 tested positive for the virus, the agency said. This is way above the 5% threshold set by the World Health Organization.

DoH raised the risk classification after the country’s average daily tally for the past week increased almost eight times, Mr. Duque said. He added that 60% of the sample sequences they have conducted were positive for Omicron.

But Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Tuesday the Delta variant was still circulating.

“The epidemic curve is indicative of Omicron,” she said. “But our genome sequencing still shows the Delta variant is circulating.”

Epidemiologist John Wong, who is a member of DoH’s technical advisory group, told the same briefing there was not enough sequencing in the country to confirm if the current surge was driven by Omicron.

“We are not calling Omicron mild. It’s milder than Delta,” said Edsel Maurice T. Salvana, an infectious disease physician and also a member of the group.

He said the Delta variant is three times “more likely to land you in the hospital compared with Omicron.” “But Omicron can still land you in the hospital.”

Mr. Duque said coronavirus infections for the past two weeks had grown almost 38 times, while the average daily attack rate had increased to 10.47. He added that Metro Manila, Calabarzon and Central Luzon were also at critical risk from the virus.

The country is struggling to contain a fresh surge in infections spurred by the highly contagious Omicron variant, which experts said could exhaust the country’s health system.

DoH said there were 181,016 active cases, 5,521 of which did not show symptoms, 170,873 were mild, 2,863 were moderate, 1,464 were severe and 295 were critical.

The agency said 99% of the cases occurred from Dec. 29 to Jan. 11. The top regions with new cases in the past two weeks were Metro Manila with 15,256, Calabarzon with 5,861 and Central Luzon with 3,064 infections.

It said 8% of the deaths occurred this month, 1% in December, 2% in November and 12% in October.

DoH said 64 duplicates had been removed from the tally, 52 of which were recoveries and one was a death, while 184 recoveries were relisted as deaths. Twelve laboratories failed to submit data on Jan. 9.

The Health department has shortened to five days the quarantine period for COVID-19-stricken health workers who are fully vaccinated and don’t show symptoms.

Health advocates have criticized the new quarantine rule, saying it might only put more staff and patients at risk.

A total of 6,595 or 7.2% of about 92,000 healthcare workers in Metro Manila were under quarantine, Health Undersecretary Leopoldo J. Vega told a separate news briefing at the presidential palace.

“We are seeing that some hospitals are closing down services like elective surgeries and diagnostics to cover health workers who are in isolation and under quarantine,” he said in Filipino. Some hospitals had been forced to stop other services to focus on COVID-19 needs, he added.

The country seeks to vaccinate more people amid the new infection wave.

Vaccine czar Carlito G. Galvez, Jr. said the government aims to vaccinate as many as 90 million people by the end of the second quarter. The government missed its goal last year of fully vaccinating at least 54 million people.

“Our objective is to vaccinate 90 million Filipinos,” he said at the taped Cabinet meeting. “Out of this number, we still have to give 28 to 30 million people their first vaccine dose.”

Mr. Duque noted that despite the infection spike, severe and critical cases were lower than what was observed during the surge triggered by the Delta variant in September.

At the meeting, Mr. Duterte said the state has a duty to restrain unvaccinated citizens from going out.

“We have every right to restrain them,” he said. “We cannot wait for a law,” he added, noting the Congress was on recess and passing a bill would take time. Mr. Duterte urged the public anew to get vaccinated. — Norman P. Aquino and KATA

FDA OK’s generic version of Pfizer’s pill vs coronavirus

THE LOCAL Food and Drug Administration (FDA) has approved the generic version of Pfizer, Inc.’s anti-coronavirus pill, its chief said on Monday night.

FDA Director-General Oscar G. Gutierrez, Jr. said the agency had approved the compassionate special permit application for Paxlovid, which will be sold under the brand name Bexovid.

The drug, a combination of nirmatrelvir and ritonavir, is prescribed to patients aged 12 and older who have mild to moderate infection, he said.

He added that Bexovid, which was first authorized for use in the United States, could reduce the risk of hospitalization or death by 89% when the treatment is taken within three days after symptoms occur, and 88% within five days.

Mr. Gutierrez said the drug would be available to government hospitals once the local supplier, Biocare Lifescience, Inc. starts delivery.

He said it’s up to the Health department to determine how the generic drug will be made available to patients. He said the country was still in talks with Pfizer for the emergency use authorization for the Paxlovid.

The FDA said these medicines are not a substitute for vaccines even if they can help in the fight against COVID-19.

Paxlovid could be prescribed more broadly as an at-home treatment to help reduce illness severity, hospitalizations and deaths, as well as cut the probability of infection after exposure among adults, according to Pfizer’s website.

“It has demonstrated potent antiviral in-vitro activity against circulating variants of concern, as well as other known coronaviruses, suggesting its potential as a therapeutic for multiple types of coronavirus infections,” it said.

The antiviral drug has the potential to save patients’ lives, reduce the severity of COVID-19 infections and eliminate up to nine out of 10 hospitalizations, Pfizer said in November.

“Given the continued global impact of COVID-19, we have remained laser-focused on the science and fulfilling our responsibility to help healthcare systems and institutions around the world while ensuring equitable and broad access to people everywhere.”

The US has authorized the emergency use of Pfizer’s Paxlovid and Merck’s molnupiravir and allocated for shipment to states, but the supply is tight and the rollout varies from state to state, according to the National Public Radio (NPR) website.

Right now, the drugs are just for patients at the highest risk of developing severe COVID-19 illness. People with weakened immune systems including transplant patients and older adults are especially vulnerable. Many of the hundreds of thousands of people testing positive for the coronavirus would not be candidates for the treatments, it said.

The US Department of Health and Human Services had allocated about 65,000 treatment courses of Paxlovid and 300,000 courses of molnupiravir to states and programs around the country last week, but many had not made it to their destinations, NPR said on Dec. 31.

That hasn’t stopped patients from asking for them, however. The US FDA authorized the pills for emergency use just before Christmas.

Meanwhile, the Philippine FDA was evaluating two product applications for self-administered COVID-19 test kits, Mr. Gutierrez said. The Department of Health will soon issue guidelines on their use.

Several government officials have backed the use of personal test kits as the government struggles to contain a fresh surge in infections. — Kyle Aristophere T. Atienza

Solon calls on automated elections oversight committee to probe alleged Comelec hack

AN OVERSIGHT committee composed of members of Congress and the Commission on Elections (Comelec) should convene to investigate the alleged hacking incident of the poll body’s system, a solon said Tuesday. 

Samar Rep. Edgar Mary S. Sarmiento said that under Republic Act No. 8436 or the Automated Election Law, Congress has authority to look into the alleged data breach to determine if the automated system is free from manipulation and wholesale cheating.

“We need to know the basis of the story. If there was a hacking incident, we need to know if this is serious enough that the poll results can be manipulated electronically,” he said in a statement. 

Section 27 of the law provides an oversight committee composed of members from Comelec, the Senate, and the House of Representatives. 

“The oversight committee may hire competent consultants for project monitoring and information technology concerns related to the implementation and improvement of the modern election system,” the law states.

As of May 2021, records show the committee’s Senate panel is chaired by Senator Maria Imelda Josefa “Imee” R. Marcos, sister of presidential candidate Ferdinand R. Marcos, Jr.

Its members are: Senators Ronald M. dela Rosa, Francis N. Tolentino, Maria Lourdes Nancy Binay, Franklin M. Drilon, Risa N. Hontiveros, and Francis N. Pangilinan.

The House panel is composed of: Representatives Elpidio F. Barzaga, Jr., Juliet Marie D. Ferrer, Ronnie L. Ong, Edgar R. Erice, Joseph Stephen S. Paduano, and Argel Joseph T. Cabatbat.

Meanwhile, Senator Panfilo M. Lacson, who is running for president in the May elections, said he had his own “in-house Comelec-accredited cyber-security team” conduct an investigation to gather initial information while waiting for confirmation from the poll body and the Department of Information and Communications Technology. 

“Finding out who was or were responsible is already material information just to establish the motive and who will benefit from the alleged hacking,” he said in a statement. 

The technology news team of Manila Bulletin reported on Monday that a hacker’s group managed to breach the Comelec’s system last Saturday, downloading files that included usernames and PINS of vote-counting machines. 

Comelec Spokesman James B. Jimenez, who was reportedly informed of this incident immediately, said that they are currently validating if Comelec systems have been compromised.

“The fact, however, is that such information still does not exist in Comelec systems simply because the configuration files — which includes usernames and PINs — have not yet been completed. This calls into question the veracity of the hacking claim,” he said in a statement late Monday.

“Considering that ‘news’ like this could potentially damage the credibility of the elections, the Comelec stands ready to pursue all available remedies against those who, either deliberately or otherwise, undermine the integrity of the electoral process,” he said.

Senator Emmanuel “Manny” D. Pacquiao, Sr., who is also running for the top seat, called on the Senate electoral reforms committee to immediately conduct a probe on the incident. 

OPPOSITION
Vice President Maria Leonor “Leni” G. Robredo, the opposition presidential candidate, and her running mate Senator Francis “Kiko” N. Pangilinan expressed alarm over the reported hacking. 

“We are alarmed by the news of an alleged hacking of Comelec servers. We ask the Comelec to immediately confirm if it happened and the extent of the compromise involved,” the tandem said in a statement.

President Rodrigo R. Duterte’s office has also expressed concerns about the report. 

“We will await any update to be pronounced by the Comelec regarding this. Of course, we are concerned,” Mr. Duterte’s acting spokesman, Karlo Alexei B. Nograles, said in a regular news conference.

“Obviously, we’re also worried about this if this is true,” he said when asked by reporters to comment on the issue.

The May 9 elections cover national and local positions — including the president and vice president, Congressional seats, provincial governor, and city/municipal mayors. — Jaspearl Emerald G. Tan, Alyssa Nicole O. Tan, and Kyle Aristophere T. Atienza  

Ex-DICT chief denies free WiFi program was ‘botched’

DICT.GOV.PH

THE P1.3-billion national free WiFi project succeeded before he left office, the former acting chief of the Department of Information and Communications Technology (DICT) said on Monday, after the House of Representatives approved the blue ribbon committee’s report suggesting that there should be charges filed against him over the “botched” project. 

Eliseo M. Rio, Jr. — who was appointed DICT undersecretary in 2016 and served as acting secretary from Oct. 2017 to June 2019 — said he has not received a copy of the panel’s report.

“…When I left DICT on May 22, 2020, the program was doing well. It was a Program in partnership with UNDP (United Nations Development Programme), a UN body that has helped Philippine development programs since 1946 and was never tainted by corruption issues,” Mr. Rio told BusinessWorld via Viber. 

“It was ‘botched’ AFTER I left DICT,” he added. 

Representative Michael Edgar Y. Aglipay, committee on accountability chair, recommended that Mr. Rio be charged for violating the Code of Conduct for Public Officials and the Anti-Graft and Corruption Act. 

The panel also recommended the filing of charges relating to the alleged undervaluation of imported IT equipment. 

“I will face whatever charges that would be leveled against me, but since I partnered with UNDP, they should also press charges against UNDP. See how ridiculous that would be,” he said. — Jaspearl Emerald G. Tan 

Panglao town picks up vaccination drive after typhoon Odette

MUNCIPALITY OF PANGLAO FACEBOOK PAGE

VACCINATION against the coronavirus has started to regain momentum in Panglao, the main tourism island of Bohol which was among the provinces hit hardest by typhoon Odette, internationally known as Rai, in mid-December. 

The Panglao municipal government is holding daily inoculation activities this week starting Tuesday and called on those who are still unvaccinated as well as those who missed their scheduled second dose. 

The vaccination is being held at the Panglao Cultural Center except Thursday when the venue would be at the Rural Health Unit.

These buildings were among the government facilities that were reconnected to power service on Jan. 6 since typhoon Odette, which made its 5th of nine landfalls in Bohol on Dec. 16, left the entire province without electricity. 

The vaccination drive resumed on Jan. 6 at the cultural center for booster shots.

Bohol was among the first tourism destinations to lift the negative coronavirus test result requirement for fully-vaccinated visitors in late October. It was also among the first provinces to vaccinate practically 100% of its tourism sector workers. — MSJ

Bicol hospital closes out-patient section to prepare for COVID surge, offers teleconsultation

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ONE of the main government-owned hospitals in Bicol is temporarily closing its out-patient department starting Jan. 12 and moving consultation services to its telemedicine facility in preparation for another surge of coronavirus cases.

The Bicol Regional Training and Teaching Hospital (BRTTH) issued an advisory late Monday saying that it will not accept “all walk-in and referred patients” beginning Wednesday as it anticipates “another possible surge of COVID-19 (coronavirus disease 2019) cases due to highly infectious Omicron variant.”

“All patients seeking OPD (Out-Patient Department) consult are advised to contact the BRTTH Telehealth Project for appropriate guidance and counselling on their specific health-related concerns.”

The telehealth service maybe accessed through mobile phone or its Facebook page.

BRTTH, located in Legazpi City in Albay province, is a tertiary-level hospital with an official bed capacity of 250, but can operate with up to 450 beds. 

Bicol Region had 1,553 active coronavirus cases as of Jan. 10 out of the total 53,204, based on data from the Department of Health’s COVID-19 tracker site. 

Of the active cases, 365 were in Albay, including 43 new patients recorded on Jan. 10.

The province has so far recorded 11,184 confirmed cases, with 299 deaths and 10,520 recoveries. — MSJ 

Pharmally exec released from Senate custody after contracting COVID-19

OFFICE OF SENATE SGT OF ARMS

THE PRESIDENT of a company under probe for alleged anomalies in multi-billion pandemic supply contracts was released from Senate custody Tuesday after testing positive for coronavirus with mild symptoms. 

“Yes, (she) was released at 12:15 a.m. this morning to be with her mother, with the understanding that she will be available when needed by the Senate,” Senate Sergeant-at-Arms Rene C. Samonte said in a text message. 

“I was told they will proceed to the residence in BGC, to complete her isolation and quarantine,” he said. 

Pharmally Pharmaceuticals Corp. President Twinkle Dargani was ordered detained at the Senate in October, together with her brother, Pharmally Corporate Secretary and Treasurer Mohit Dargani, and Pharmally Director Linconn Ong, after they were cited in contempt for refusing to provide documents subpoenaed by the Senate blue ribbon committee. 

The Dargani siblings started detention on Nov. 14 after they were caught at the Davao International Airport on board a chartered plane that was bound for Malaysia.

Senate President Vicente C. Sotto III and Senator Richard J. Gordon, Sr., who chairs the committee, agreed to her release for humanitarian reasons, citing the concern of Ms. Dargani’s mother over her mental health. 

Mr. Samonte noted that Ms. Dargani will no longer be put under close watch. 

The Senate is under lockdown until Sunday after at least 46 employees and two senators tested positive for the virus. — Alyssa Nicole O. Tan 

A strategic plan for the Philippine economy

FREEPIK

(Part 3)

Despite the long-term view that a strategic planning exercise normally assumes (at least three to five years and even as long as a decade), as an exception I will begin with the short-term outlook for the Philippine economy (the next 12 to 18 months) and identify the immediate measures that have to be taken by the next Administration to sustain all the beneficial ongoing programs of the Duterte Administration and add new ones that will be directed to reducing the poverty rate by 2023 to the 16.2% already attained in 2019.

I am convinced that in two years, even before we finally graduate from low-middle income status to upper-middle income, we can bring down the poverty incidence from the 23% at the end of 2021 to the 16% level. I would advise leaders of the public and private sectors to change their focus and not to be obsessed with whether the GDP will grow at 5%, 6% or more. As I mentioned in our Mission statement, it is about time we give more importance to reducing poverty than to attaining a high rate of economic growth, although admittedly a minimum level of growth is always necessary to generate the resources to combat poverty.

In 2022, we can implement fully the social market strategy suggested by our Mission and Vision statements. We can allow existing market forces, together with already established government intervention, to guarantee at least a 6% to 7% GDP growth rate for the full year. OFW remittances, growing next year at least at 5% annually; BPO-IT revenues also growing at 3% to 5%; the Build, Build, Build program accounting for 5% to 6% of GDP and fully spent as lockdowns become a thing of the past; the demographic dividend resulting in a large domestic market generating a 7% increase in consumption expenditures, which account for some 70% of GDP — all these are guaranteed to deliver the 6% to 7% GDP growth rate for 2022. What Government has to do is to make sure that this increase in GDP really trickles down to the poor are enumerated below.

First and foremost, the Government must be ready to make full productive use of the significant increase in Internal Revenue Allotment (IRA) that will be received by the heads of Local Government Units (LGUs). As a result of the Mandanas-Garcia Ruling of the Supreme Court in 2018 (and confirmed in 2019) the IRA is programmed to increase by 55% in the 2022 budget, reaching P1.08 trillion or 4.8% of the country’s GDP compared to 3.5% in 2021. As mentioned by Ndiame Diop, World Bank Country Director from Brunei, Malaysia, Philippines, and Thailand: “We look at the implementation of the Mandanas-Garcia ruling not just as a transfer of resources but an opportunity to strengthen decentralization and improve social services delivery in the Philippines. If this ruling leads to better coordination in planning and implementation across levels of government, taking into account the capacity and needs of LGUs, it could improve the lives of people and communities especially those that are far from the country’s economic growth centers.”

As is being done in the Department of Agriculture, headed by Secretary William Dar, there are enlightened members of the present Cabinet who are already addressing the significant risk that the transition process could lead to a large gap in service delivery, as a lack of coordination between the national and local government and weak implementation capacity could delay the transition towards increased decentralization. As World Bank Economist Kevin Cruz advised the present Government (which advice should be taken seriously by the “presidentiables” and their respective prospective Cabinet appointees): “The national government should clearly define re-devolved functions and communicate these clearly to both national government agencies and local government units. The authorities need to ensure that the development goals of the national government and local governments are well aligned, and that service delivery gaps are minimized, particularly during this unprecedented crisis. This will require the national government and local government units to review the division of labor between national government agencies and local government units in re-devolving functions, while keeping fiscal and absorptive capacity in mind.” The units of the National Government most responsible for providing technical assistance to the LGUs in the devolution process are the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), the Department of Finance (DoF), and the Development Academy of the Philippines (DAP).

To give the highest priority to poverty alleviation and eradication, all sectors of society should cooperate to ensure that this unique addition to available funds in the hands of the LGUs will be spent productively for the benefit of the less privileged Filipinos. It must be pointed out that this increase of IRA funds available to LGUs will be over and above the P20 billion for disaster relief that will be made available once President Duterte signs the 2022 budget right after Christmas. The P7-billion contingent fund as a supplement to the 2022 budget and the savings of various agencies from their 2021 budgets, which could be realigned, could also be used for calamity response. As regards the additional IRA funding, all efforts should be exerted to implement the following recommendations:

• Channel the increase in IRA towards local government’s COVID-19 response efforts to mitigate budget execution risks while providing much needed support to local constituents. The LGUs should be made aware of the importance of spending a large part of their budgets on health-related facilities and the hiring of more medical personnel such as nurses and other health workers, ensuring reasonably high wages to attract them away from the urban centers or from seeking employment abroad. The same can be said of public-school teachers especially at the elementary school level.

• Focus the efforts in coordinating the respective roles of National Government agencies, the private business sector, and civil society to lend immediate support to the localities in the Visayas and Mindanao that have suffered most from the fury of the Typhoon Odette (international name: Rai). President Duterte declared a state of calamity in 31 provinces in six of the country’s 17 regions (Mimaropa, Western Visayas, Central Visayas, Eastern Visayas, Northern Mindanao, and Caraga). A good number of these provinces have poverty incidences much higher than the national average. A large part of the calamity funds and the additional IRA funds to the LGUs should be spent rebuilding roads, bridges, and other infrastructure that have been damaged by the typhoon. There should also be significant funding that will be made available to households, especially in rural areas, to rebuild their homes as well as facilities used for micro-, small-, and medium-scale enterprises. The devolved functions of the Department of Agriculture to the local counterparts should especially focus on farm-to-market roads, irrigation systems, and post-harvest facilities destroyed by Odette. All these construction and rehabilitation activities will generate a great deal of employment for local labor that can immediately address the lack of incomes in many poverty-stricken areas. In a sense, we can consider the tragedy of Odette as a blessing in disguise for the national effort to reduce poverty.

• At the National Government level, there should be a continuation and even acceleration, if possible, of the practice of the Department of Public Works and Highways (DPWH; under the leadership of former Secretary Mark Villar) to spend most of the budget of DPWH in the countryside rather than in urbanized areas. More than ever, the Build, Build, Build program should be concentrated in the rural areas, and especially in those regions that suffered the most damage from the typhoon. An added qualification to this policy is the even greater focus on those remote areas that are very attractive to domestic tourists, such as Siargao, Bohol, Palawan, Mindoro, and other top tourist destinations that were badly hit by the super-typhoon. They should be made ready as quickly as possible for the big surge* in domestic tourism that is expected to happen in 2022 as the pandemic is put under reasonable control due to the attainment of a higher population immunity to COVID-19.

Beyond 2022, additional measures that should be taken apropos the Mandanas-Garcia ruling have been recommended by the World Bank officials:

• Providing capacity building support to local government units to improve their implementation capacity and overall service delivery;

• Addressing inequality among LGUs by providing targeted support to poor local governments that lack proper capacity and resources; and,

• Strengthening citizen’s capacity to demand accountability through measures like citizen participation in budgeting and expenditure processes; public hearings on budget information; civic monitoring of intergovernmental transfers; monitoring of local service provision; and social audits.

These more medium-term strategies should keep the academe and private think tanks like the University of the Philippines, the Ateneo de Manila University, De La Salle University, the Asian Institute of Management, the Center for Research and Communication, the Institute of Corporate Directors and many others busy in lending their help in the capacity building of LGUs to make more productive use of their respective increased IRA allotments. I suggest that some exemplary LGUS like those of Pasig City, Bataan Province, Batangas Province, La Union Province, and a few other well-run LGUs be held up as role models to be emulated by the others still trying to build up their respective capacities to benefit their constituencies as a result of the Mandanas-Garcia ruling.

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

The cross-cutting challenges in disaster resiliency

MACROVECTOR-FREEPIK

Time and again, nature teaches humanity the inextricable symbiosis between the environment and human existence, most recently in the aftermath of typhoon Odette (international name: Rai), one of the worst superstorms to hit the Philippines. The National Disaster Risk Reduction and Management Council tallied over 400 reported casualties of which 77 have been validated. More than 83,000 families are being sheltered in evacuation centers, and over 45,000 more in other facilities.

The Department of Agriculture estimates P9 billion in crop damage and agricultural commodity losses across 11 affected regions. The Department of Public Works and Highways (DPWH) gave an estimate of over half a billion pesos in damaged roads, bridges, and even flood structures.

Killer typhoons like Odette have repeatedly blown down critical infrastructure that carry the services that are indispensable to our daily lives. Amidst the calamity of the series of extreme weather events that have been hitting our country, addressing the vulnerabilities and building the resiliency of the power and energy, telecommunications, and transportation infrastructure should be prioritized in every community. The fast restoration of these services is critical to rescue and relief operations in every emergency situation.

When there is no electricity, no cellphone signal, and all roads are impassable, there is complete paralysis of the system which results in emergency response teams being delayed in reaching calamity victims. Each day that any of these services is down affects the operations of the other and will be a debilitating handicap as the devastated regions struggle to rebuild their ruined communities amidst a sputtering economy and this increasing surge of the Omicron variant of COVID-19.

Here again arises the need for an all-of-society collaboration to have an honest assessment of the weaknesses exposed by the magnitude of Odette’s destruction. Anticipating more of these occurrences, there should be a more integrated approach that builds and continuously strengthens cross-agency and cross-industry disaster resilience, and seamless protocols for quick disaster response and restoration of disrupted power and telecommunications services.

The power and energy sectors are already seriously challenged to meet current consumer demand — which will even increase as more people are relying on digital technologies to run their businesses, and these technologies become their main medium to connect with others for daily activities. This further prompts an integrative approach to sustainability and resilience that goes beyond calamity response and is actually more critical for the country’s economic rebound.

This is where the private sector can take a pro-active role in offering partnerships as investors and technology providers that government should welcome and encourage — the consumers in the ecosystems of private enterprises are, after all, the same constituents that government is mandated to serve.

The huge burden of financing the rebuilding of regions devastated by typhoon Odette can be carried substantially by the private sector through Public Private Partnership, which have proven to be the most successful strategy as seen in the Build, Build, Build infrastructure projects. This frees up government funds for other important public services such as health and education.

In the crafting of new strategies and solutions, policy gaps will always be revealed which, if agency level regulations will not suffice, will need legislative and even executive action. This is another dimension of building sustainability and resilience that requires leaders with the cerebral prowess to understand, analyze, and act correctly based on scientific data and expert counsel from industry and affected stakeholders.

The aftermath of typhoon Odette accentuated the interlinking functions of transport infrastructure, power and energy, and telecommunications — three highly complex sectors, with their own range of nuanced problems, that will need to work out immediate and long-term solutions that are customized to the local dynamics of the communities and their local governments. It is really the local government that will need to lead in the frontlines of disaster mitigation, that should again integrate with other jurisdictions as calamities do not stop at borders. The private sector players who are already serving customers across contingent cities and municipalities will need to re-engineer their resiliency building programs to have adequate cross-border linkages that are ready to be mobilized.

Government institutions should follow the discipline espoused by Environmental, Social, and Governance (ESG) standards, which has already been implemented by the most successful and largest private enterprises as a guiding metric of their organization’s sustainability and responsibility beyond their commercial sphere of operation. This is a relatively new set of ethics spurned by the need to act on evolving social and environmental issues.

At the receiving end are the people whose welfare and security are the prime responsibilities of the national and local government — the people who are the consumers that the private sector must gain trust and satisfy in a co-beneficial relationship. This is a customer-centered or, more aptly, a stakeholder focused service that we need not just in times of crisis but as part of our institutional value system.

The most successful companies of the world all have visionary leaders with the professionalism and extraordinary proficiency needed in their specialized fields of business, leaders that live a work ethic that guarantees performance and success in their ventures. It’s these qualities of leadership that we must look for and demand from the leaders we elect in the next government.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

It’s not necessary to trash the environment to extract metals needed for renewable energy

FREEPIK

The use of renewable energy systems, such as solar panels, wind turbines, electric cars, and hydrogen fuel cells, will minimize greenhouse gas emissions and reduce global warming. But use of these systems has to increase — and they require a lot of metal.

The World Bank estimates that about three billion tons of metals like graphite, lithium, and cobalt will be needed by 2050 to supply enough systems to keep the global temperature rise below 2°C, a goal of the 2016 Paris Climate agreement. In comparison, only about one billion tons of metals would be needed by 2050 to satisfy current usage of renewable energy systems.

Since Canada has abundant resources of most of the metals needed, can it become a global leader in the supply of materials needed for renewable energy systems?

It could, but the increase in the physical, energy, and water footprints associated with extraction of these metals to meet the metal demand could negate any gains made by the use of renewable energy systems.

Some say it’s not possible to reconcile these two goals and we must make difficult choices and unfair decisions. The alternative is to find ways to adapt to global warming.

But this ignores a few things, such as the technology developments that could reduce the carbon footprint of extraction, the potential of a reorganization of the metal supply chain, and the possibility of a closer relationship between society and the metals it uses.

Can we change mining technology to reduce its footprint? There is an active community of researchers that says yes. Here are some current avenues of investigation:

Bacteria have been interacting with minerals for more than two billion years, decomposing the minerals and allowing the metals to dissolve into water. As a result, a mineral microbiome has evolved that could be used to develop natural ways of extracting metals and to clean up mine waste.

Greenhouse gas emissions at mining operations currently account for about 10% of global emissions. That percentage will increase if we try to meet metals demands using current methods. Some operations are implementing renewable energy systems in efforts to further reduce this emission level.

Autonomous systems, some electrified, are in use at some mines, but there is more potential. One possibility is a large number of small machines — a swarm that behaves like an ant colony. This could enable targeted metal extraction with a far smaller footprint.

Metal extraction generates enormous amounts of information on the actual behavior of a mining operation. Machine learning algorithms could find patterns in these data and use them to guide improvements to the operations and increase the recovery of mineral resources.

These are big ideas that will take time to fully develop. But we believe that a reorganization of the metal supply chain and better connections between society and the metals it uses can more quickly lead to sustainable metal supply. The first step is to unwrap the mineral resources industry to make it more transparent, visible and available to anyone.

The links in the metal value chain are suppliers who perform different services.

A mining company is one collection of suppliers. But an interesting alternative is a network consisting of several sources of metals such as mines, scrap metal, electronic waste, mine tailings and wastewater — all connected to processing plants, refineries, manufacturers, and the related suppliers of materials and services.

Networks within networks are possible, and flexibility is required. One network might specialize in processing tailings to extract metals, another on processing mineral concentrates, and another may be solely focused on recycling metals from scrap. Ownership and operation of any part of a network would be open to a company, group or community that has the knowledge and expertise.

Most innovation in the mining industry takes place among suppliers, and the presence of different suppliers in a network would be advantageous. A combination of competition among suppliers to take part in a network, and collaboration among suppliers in those networks, would promote innovation.

Many opportunities exist for the public to contribute to a flexible open metal supply network. Barriers to entry do exist, but they aren’t insurmountable, and there are advantages to removing them.

For example, in Canada, many mineral deposits are located on Indigenous lands. Parts of a network related to these mineral deposits could be operated/financed by a mining company or group of companies owned by an Indigenous community.

Some of the metals needed for renewable energy systems reside in small deposits that are geographically dispersed. Rare earth metals used in the magnets of motors in electric cars are one example. It’s too expensive to develop a mine for these deposits, but a flexible open network that uses services only as needed might be able to do economically.

Recycling is another source of metals, but the combinations of materials in some products makes it difficult to separate the metals in them.

This calls for some innovation in processing. But the logistics of recycling are cumbersome, especially for clunky items containing metals such as an aircraft engine, an electric car or a few thousand disk drives. An open network that includes communities and logistics specialists in partnership with advanced recycling operations could be a sustainable source of metals.

Reuse or refurbishment of devices that contain metals is also possible as part of the circular economy. Co-ordination between device users and manufacturers would be required. But an open network of partnerships can accomplish this.

If we want to use renewable energy to keep the atmosphere cool, then mining processes and our current relationship with metals must change. Governments should implement policies that encourage those changes. Industry can also contribute by encouraging business partnerships and engagement with communities and other interested parties.

 

W. Scott Dunbar is a professor and head of Department of Mining Engineering, University of British Columbia. He receives funding from the Natural Sciences and Engineering Research Council of Canada (NSERC) under a Discovery Grant and from the Social Sciences and Humanities Research Council of Canada (SSHRC) under an Insight Grant. Davide Elmo is an associate professor, Rock Mechanics, University of British Columbia. He receives funding from NSERC and MITACS. John Steen is an EY Distinguished Scholar in Global Mining Futures, University of British Columbia. He owns shares in various mining companies as part of a personal investment portfolio. He currently receives research funding from a wide range of industry and government sources including NSERC, MITACS, Canadian Digital Technology Supercluster, EY, Vale, Rio Tinto, Teck, Allonia, FL Smidth and the Project Management Institute.

Leniency for Participants in Anti-Competitive Agreements

Section 35 of Republic Act No. 10667, otherwise known as the Philippine Competition Act (PCA), provides that the Philippine Competition Commission (PCC) shall develop a Leniency Program (Program) for a participant in an anti-competitive agreement as provided in Section 14(a) and 14(b) of the PCA. On Dec. 27, 2018, the PCC issued the Rules of the Leniency Program of the Philippine Competition Commission (Rules). The PCC created the Leniency Committee which is empowered to perform all necessary acts in order to implement its Rules.

BENEFITS OF THE PROGRAM
The PCA and its Rules allow any entity that participates or participated in a violation of Section 14(a) or 14(b) thereof, i.e., price-fixing, bid-rigging, output restriction, and market allocation, to avail of “leniency” in the form of either: (a) immunity from suit; or (b) exemption, waiver, or gradation of fines (“reduction of fines”) in exchange for the voluntary disclosure of information regarding such violation, subject to certain requirements. The PCC will allow only one beneficiary of immunity from suit and one beneficiary of reduction of fines for each reported violation. The limitation is meant to ensure that members of a cartel will race to the PCC and disclose the existence of the anti-competitive agreement to obtain the benefits of the Leniency Program.

Immunity from suit includes immunity from (a) administrative, (b) criminal liability arising from violations of Sections 14(a) and 14(b) of the PCA, and (c) immunity from civil actions initiated by the PCC on behalf of affected parties and third parties.

The benefit of immunity from suit is available until it is granted to an entity. Hence, in case the first qualified entity is only granted reduction of fines, the second qualified entity may be granted immunity from suit if it submitted the Marker Request Form prior to the start of a fact-finding or Preliminary Inquiry, or at the discretion of the PCC if the Marker Request Form was submitted after the start of the fact-finding or Preliminary Inquiry, subject to the following conditions:

(a) At the time the entity comes forward, the PCC has not received information about the activity from any other source i.e., from an entity that has been granted conditional immunity from suit;

(b) Upon the entity’s discovery of illegal activity, it took prompt and effective action to terminate its participation therein;

(c) The entity reports the wrongdoing with candor and completeness, and provides full, continuing, and complete cooperation throughout the investigation until finality of any and all administrative case(s), as well as civil case(s) initiated by the PCC on behalf of affected parties and third parties; and,

(d) The entity did not coerce another to participate or to continue participating in the activity, and clearly was not the leader in, or the originator, of the activity.

The benefit of reduction of fines only applies to the administrative penalty that may be imposed by the PCC. Further, an entity that is not eligible for the benefit of immunity from suit may be considered for the benefit of reduction of administrative fines.

The PCC may also grant Conditional Leniency subject to the entity’s continuing, full and genuine cooperation with the PCC until finality of any and all administrative case(s), as well as civil case(s) initiated by the PCC. If no investigation is ongoing, conditional leniency may be granted if: (a) the information or evidence enables the PCC to carry out a targeted investigation on an alleged anti-competitive agreement; or (b) the entity provides the PCC with a sufficient basis for initiating adjudication through the filing of a Statement of Objection under the Rules; if investigation is however ongoing, conditional leniency may be granted if the information and evidence provided add significant value to the same.

PROCEDURE
Any entity, or any current or former director, officer, trustee, partner, employee, or agent of a juridical entity who may be liable for violations of Sections 14(a) and 14(b) of the PCA may apply for leniency, by requesting a “Marker” from the PCC. Such a Marker protects the entity’s place in the queue for applicants under the Program. No fee is imposed on such request. Thereafter, an initial period of 30 days is granted to the subject entity to gather and submit information and evidence relating in particular to the following:

(1) The entities involved in the alleged anti-competitive agreement;

(2) The affected product(s) or service(s);

(3) The affected geographic area(s) or territory(-ies);

(4) The duration of the alleged anti-competitive agreement;

(5) The reasons why the entity is eligible under the Program;

(6) The nature of the alleged anti-competitive agreement; and,

(7) Information on any past leniency applications with the PCC and other competition authorities outside the Philippines in relation to the alleged anti-competitive agreement.

Notably, if the entity fails to submit the information and evidence within the allowed period, the succeeding entity in the Marker queue that timely submits the information shall be considered for the benefit of immunity from suit or reduction of fines, as the case may be.

Joint applications between or among parties (entities) to an anti-competitive agreement shall not be considered. However, two or more directors, officers, trustees, partners, employees, or agents of the same juridical entity that is a participant to an anti-competitive agreement may jointly apply.

In case of denial of an application for leniency or a revocation of the grant of conditional leniency by the Leniency Committee, the aggrieved entity may file an appeal with the Leniency Appeals Committee.

CONFIDENTIALITY AND OTHER PROTECTIONS
The identity of an entity applying for leniency and of those who have been granted leniency, conditional or otherwise, shall be confidential and will not be disclosed by the PCC unless the PCC determines that such an entity’s testimony or a sworn statement is necessary for the administrative or civil case filed by the PCC.

In cases where the application for leniency is denied or where the entity notifies the PCC that it will withdraw its application prior to the denial or grant of conditional leniency, any self-incriminating information and documents provided shall not be used against the entity or any of its current and former officers, directors, trustees, partners, employees, and agents who have come forward to the PCC. Such circumstances shall not, however, preclude the PCC from initiating or continuing an investigation on the basis of independently obtained information and documents or from using the same as evidence. In cases where the application is considered abandoned prior to the denial or grant of conditional leniency and there is no written notification made by the applicant, the documents and information submitted may be used by the PCC as it deems necessary.

Acts of reprisal or retaliation (i.e., removal, discharge, demotion, suspension, threats, harassment, or any form of retaliation in the terms and conditions of employment, agency, or engagement) are prohibited and may be penalized. Any entity that commits any form of reprisal or discrimination against anyone cooperating or furnishing information, documents, or data to the PCC in connection with an investigation or proceeding being conducted, shall, after due notice and hearing, be penalized in accordance with the 2017 Rules of Procedure of the PCC.

Further, should the PCC find it necessary, the PCC may refer any entity granted leniency, conditional or otherwise, to the Witness Protection, Security and Benefit Program of the Department of Justice (DoJ) under Republic Act No. 6981, or any other witness protection program available with the DoJ or other law enforcement agency.

The success of the PCC’s Leniency Program shall be a deterrence to the proliferation of cartels and shall aid in the uncovering and prosecution of existing ones. Thus, the benefits under the Program are designed to ensure cooperation from current and former cartel participants who possess information and/or evidence necessary for a productive investigation, case build up and prosecution of violations of Sections 14(a) and 14(b) of the PCA.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

John Frederick E. Derije is a senior associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Davao Branch.

(6382) 224-0996

jederije@accralaw.com

HK unveils further steps to curb virus spread, boost vaccinations

REUTERS
People walk past closed bars in an empty Lan Kwai Fong nightlife area, following tighter restrictions to curb the spread of coronavirus disease (COVID-19) in Hong Kong, China, Jan. 9, 2022. — REUTERS/TYRONE SIU

HONG KONG — Hong Kong (HK) will shut kindergartens and primary schools and start offering COVID-19 vaccines for children from the age of five, the city’s leader said on Tuesday, as the financial hub grapples with an increase in coronavirus infections.

Certain passengers meanwhile will be banned from transiting through Hong Kong for a month, Bloomberg News reported, citing unnamed people familiar with the matter.

It comes as the Chinese-ruled city has seen some local transmissions of the Omicron coronavirus variant after three months of no local coronavirus cases at the end of last year.

Chief Executive Carrie Lam told reporters in a weekly media briefing that kindergartens and primary schools must stop face-to-face classes from Friday until after the Lunar New Year at the beginning of February to prevent transmissions of the fast-spreading Omicron variant.

Schools had mostly resumed in-person classes late last year after months of online teaching.

Children over five will be able to get the Chinese-made Sinovac vaccine, Ms. Lam said. Authorities have cleared the other vaccine available in Hong Kong, made by Germany’s BioNTech, for children aged 12 and older.

“I am optimistic and confident we can overcome the situation,” Ms. Lam said.

Separately, Bloomberg News said Hong Kong’s international airport was set to ban transit by passengers from 150 designated high-risk places from Jan. 15 to Feb. 14, citing the unnamed sources.

The ban will not apply to diplomats, government officials, athletes and staff participating in the Winter Olympics, which open on Feb. 4 in Beijing, according to the report.

The city’s Transport and Housing Bureau did not immediately reply to a request for comment. Ms. Lam did not mention new air transit rules during her press conference.

Hong Kong had already banned passenger flights from Australia, Canada, France, India, the Philippines, Pakistan, Britain and the United States in early January.

‘MOST UNFORTUNATE’
Hong Kong is far behind other developed cities with its vaccination campaign. Less than 75% of eligible people have had a first dose, while just under 70% have had a second one. About 8% have received a third.

The city saw a three-month streak of no local coronavirus transmission until the end of last year. There have since been more than 40 local transmissions of the Omicron variant, with more than 4,000 people considered close contacts sent into government-mandated quarantine, Ms. Lam said.

Ms. Lam said the government would also launch a new anti-epidemic relief fund, with details to be announced on Friday. The government had at least HK$4 billion ($513 million) available for new economic relief measures, she said.

Ms. Lam said a disciplinary investigation was still going on into the behavior of 13 senior government officials who attended a birthday party for a delegate to China’s legislature.

Two of the party guests tested positive for the coronavirus.

According to the latest findings, more than 200 people attended the party and the number might grow, Ms. Lam said.

“This is the most unfortunate event because of the large number of people involved,” Ms. Lam said, adding the officials should have complied with her appeal for people to avoid large gatherings. — Reuters

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