Facebook Instagram Linkedin X Youtube
Home Blog Page 562

Bicameral budget talks hit deadlock on DPWH funding

Workers are seen in a construction site in Manila. — PHILIPPINE STAR/RUSSELL PALMA

THE SENATE and House of Representatives canceled Monday’s scheduled bicameral conference committee meeting after lawmakers deadlocked over whether to restore funding for the Department of Public Works and Highways (DPWH) in the proposed P6.793-trillion national budget for 2026, amid lingering concerns over corruption in flood control projects.

Senator Sherwin T. Gatchalian, chairman of the Senate Finance committee, described the issue as “deadlocked” but said the chamber remains open to compromise.

“The House had a different opinion. We had a different opinion,” he told reporters, adding that the Senate is reviewing DPWH Secretary Vivencio B. Dizon’s appeal to reverse a P45-billion cut in the agency’s proposed budget. “This is a very technical issue, and it will take time to talk with DPWH.”

Nueva Ecija Rep. Mikaela Angela B. Suansing, who heads the House Appropriations Committee, said no new bicameral meeting had been scheduled, urging lawmakers to act quickly to avoid a reenacted budget for 2026.

She warned that roughly 9,900 infrastructure projects totaling P406 billion could be affected if the cut is retained. “If we assume that 25% of these projects will become unimplementable, that’s already P101 billion wasted,” she said.

The dispute centers on DPWH’s allocation in next year’s spending plan. The Senate trimmed the agency’s budget to P570.8 billion, roughly 8.6% lower than the House’s P624.48 billion, citing concerns over overpriced materials and procurement irregularities.

Earlier, both chambers reduced P255 billion earmarked for flood control projects from the Executive’s proposed P880 billion infrastructure program, following allegations of anomalies in project implementation.

Senators have indicated they are firm on maintaining cuts linked to overpriced construction materials. “The Senate is very firm that it doesn’t want overpriced materials,” Mr. Gatchalian said, citing the need for transparency and fiscal accountability.

Meanwhile, the Marcos administration signaled support for restoring the funds. Palace Press Officer Clarissa A. Castro said President Ferdinand R. Marcos, Jr. is aware of Mr. Dizon’s appeal and stressed the importance of DPWH spending in driving economic growth.

“So, the wish is for [the Senate cut] not to be granted. Nearly 10,000 projects will not be implemented if the budget requested by DPWH is further cut,” she separately told a news briefing.

Mr. Dizon said the P45-billion restoration would not fund flood control projects implicated in corruption but would support roads, bridges and other infrastructure critical to accelerating economic activity.

“In the past quarter, the economy only grew by 4%,” he said during a Sunday briefing with the bicameral panel. “This is largely because of the cut in public expenditure, especially in infrastructure.”

The deadlock comes as Congress races to reconcile its budget differences before the Dec. 22 deadline, which is crucial to prevent a reenacted 2025 spending plan.

Both chambers have emphasized that technical deliberations are still ongoing, with Ms. Suansing noting that “every single day is crucial for our technical teams to be able to finish the bill.”

The P6.793-trillion national budget, the largest in Philippine history, reflects the administration’s focus on infrastructure as a key pillar of its economic strategy, balancing fiscal prudence with the need to sustain development projects.

Both chambers have stressed the need to ensure transparency, proper cost control and accountability in project execution. The outcome of these deliberations will determine whether almost 10,000 projects — including bridges, highways and flood mitigation works — can proceed without delay.

The bicameral conference committee is expected to complete deliberations in the coming days, with President Marcos aiming to sign the final spending plan by Dec. 29. — Kenneth Christiane L. Basilio and Chloe Mari A. Hufana

Malacañang says low inflation, strong reserves to support Philippine peso

BW FILE PHOTO

THE Philippines’ economic managers remain confident the peso will be underpinned by low and stable inflation, ample foreign-exchange reserves and an improving investment climate, Malacañang said on Monday, even as the currency continues to trade near the P59-a-dollar level.

Palace Press Officer Clarissa A. Castro said the Bangko Sentral ng Pilipinas continues to allow the peso to be determined by market forces, while maintaining what the central bank has described as “robust” foreign-exchange reserves.

“The Bangko Sentral ng Pilipinas allows the exchange rate to be determined by market forces,” she told a news briefing. “We continue to maintain robust reserves.”

The peso has breached the P59-a-dollar mark several times since November and slid to a record low of P59.22 on Dec. 9. Analysts have linked the weakness partly to soft investor sentiment amid a widening graft scandal that has weighed on local confidence.

A weaker peso raises the cost of imports such as fuel, food and raw materials, adding pressure to inflation and squeezing household and business budgets. Still, authorities said inflation remains subdued and is expected to stay within target over the next two years, helping support domestic demand.

Inflation eased to 1.5% in November from 1.7% in October and 2.5% a year earlier, bringing the year-to-date average to 1.6%.

Ms. Castro also pointed to the country’s investment-grade credit rating as an anchor for the peso’s outlook. Standard & Poor’s has reaffirmed the Philippines’ “BBB+” rating with a positive outlook, citing low and stable inflation among the economy’s strengths.

“A high credit rating signals investors’ strong vote of confidence in President Ferdinand R. Marcos, Jr.’s leadership,” she said.

To reinforce confidence, the Marcos administration is moving to ease investment bottlenecks, including the temporary suspension of Bureau of Internal Revenue field audits following taxpayer concerns over letters of authority and mission orders. The government also plans to streamline regulations that hinder investment.

Ms. Castro cited reforms aimed at boosting productivity and foreign direct investment, including the Public-Private Partnership Code, Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and Capital Markets Efficiency Promotion Act.

Authorities are also fast-tracking the rebuilding of infrastructure and communities hit by recent calamities to restore economic activity.

She added that the government is pursuing accountability over flood control anomalies, with more arrests expected before yearend.

Allegations that billions of pesos earmarked for flood mitigation were misused have intensified scrutiny of procurement and oversight, weighing on investor sentiment as the Philippines competes for capital amid tighter global financial conditions. — Chloe Mari A. Hufana

Maoist rebels announce holiday truce

BW FILE PHOTO

THE Communist Party of the Philippines (CPP) on Monday said that its armed wing would observe a unilateral holiday ceasefire, placing Maoist rebels on a defensive posture amid continuing clashes with government forces in the countryside.

In a statement, the CPP said units of the New People’s Army (NPA) would refrain from launching offensive operations from Dec. 25 to 26 and again from Dec. 31 to Jan. 1 to mark the Christmas and New Year holidays, as well as the group’s anniversary celebrations. Despite the truce, it said its fighters would remain on “high alert.”

“This temporary ceasefire order is being issued in solidarity with the Filipino people as they conduct simple celebrations of their traditional holidays, amid grave social and economic conditions,” it said.

During the ceasefire periods, NPA units were ordered to stay vigilant and ready to respond if necessary. “All Red commanders and Red fighters must remain on high alert… and must be ever ready to maneuver or counter-attack, when necessitated by the situation.”

The Department of National Defense dismissed the announcement as a “sad propaganda stunt,” saying the Armed Forces of the Philippines (AFP) would continue its security operations throughout the holidays.

“Military duties are not subject to pause or seasons,” the Defense department said in a statement, adding that troops would remain focused on protecting communities and maintaining peace and order.

The NPA has been fighting the government for more than five decades, making it one of the world’s longest-running insurgencies. However, the movement has significantly weakened since its peak in the 1980s.

Armed communist fighters have dwindled to about 780 from about 25,000 at the height of the rebellion, according to government data released earlier this month.

Military spokeswoman Colonel Francel Margareth Taborlupa said the AFP would continue lawful security operations to prevent armed groups from taking advantage of the holiday period to regroup, rearm or threaten public safety.

The CPP said the ceasefire was declared without expectations from the government. CPP Chief Information Officer Marco Valbuena said authorities were free to respond as they see fit.

“The temporary ceasefire was unilaterally declared by the CPP, with no expectation of any positive or negative response,” he said in an e-mailed reply to questions.

Last year, Presidential Peace Adviser Carlito G. Galvez, Jr. said the Marcos administration remained optimistic about forging a peace agreement with the communist movement, a goal that has eluded several administrations. — Kenneth Christiane L. Basilio

Senate passes bill creating digital budget portal to boost spending transparency

BW FILE PHOTO

THE Senate on Monday approved on third and final reading a measure that will boost transparency in government spending by establishing a digital budget portal accessible to the public.

With 17‑0-0 vote, the chamber passed Senate Bill No. 1506 requiring all government agencies to upload and regularly update budget documents, including contracts and procurement records, on a digital platform.

“If you look at this transparency measure, if the current investigation were not happening, I think it would have no chance [of being approved],” Senator Paolo Benigno “Bam” Aquino IV, who authored the measure, said in a statement after its approval.

The bill is among President Ferdinand R. Marcos, Jr.’s legislative priorities, which he elevated last week alongside other transparency reforms as his government faces widespread allegations of corruption. — Kenneth Christiane L. Basilio

DFA: No Filipinos in Bondi shooting

BONDI BEACH — BW FILE PHOTO

THERE were no confirmed Filipino casualties in a mass shooting in Australia, the Department of Foreign Affairs (DFA) said on Monday following an incident that killed at least 15 people on Dec. 14.

The DFA said the Philippine Consulate General in Sydney is coordinating with Australian authorities to verify whether any Filipino nationals were affected by the incident at Sydney’s Bondi Beach, as emergency operations continued at the scene.

“The Consulate is coordinating with Australian authorities to verify whether any Filipino nationals were affected,” it said in a statement. “As of this time, there are no confirmed Filipino casualties.”

The attack, which occurred on Hanukkah, or the Jewish “festival of lights,” was called a terrorist attack by Sydney police. It was Australia’s deadliest mass shooting in almost 30 years. — Chloe Mari A. Hufana

BIR to destroy 448,000 vapes

THE Bureau of Internal Revenue on Monday began the destruction of over 448,000 unregistered and illegal vape products at its head office in Quezon City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE BUREAU of Internal Revenue (BIR) on Monday led the simultaneous nationwide destruction of illicit vape products as part of its efforts to halt the illegal trade of excisable goods.

The agency began the destruction of 448,494 units of illicit vape products with an estimated excise tax liability of P1.34 billion, inclusive of penalties. It will continue over the next three days.

“The government does not — and will not — tolerate the sale of vape and vapor products without the full and proper payment of excise taxes, as evidenced by the excise tax stamps that must be affixed to every vape product sold,” Commissioner of Internal Revenue Charlito Martin R. Mendoza said in a statement.

The BIR said it has seized a total of 742,778 units of illicit vape products, translating to P2.73 billion in estimated tax liability, inclusive of penalties.

These were found to be in violation of excise tax laws due to nonpayment of excise taxes, non-affixture of internal revenue stamps, and non-registration of vape brands.

“… the absence of excise tax stamps tells us that these distributors and sellers undermined and evaded government oversight of these sin products, including our authority to monitor, regulate, and control their sale and distribution,” Mr. Mendoza said.

BIR continues to conduct enforcement operations as mandated by Section 6(C) of the National Internal Revenue Code of 1997, as amended, and implemented through duly issued Mission Orders.

The destruction of seized vape products is being carried out in accordance with Sections 224, 225, and 279 of the Tax Code, as implemented under Revenue Regulations Nos. 14-2024 and 16-2024, and other related BIR issuances governing the seizure, forfeiture, and disposal of excisable goods.

“We will continue to seize, destroy, and permanently remove unstamped vape products from the market to ensure that no one profits by placing consumers at risk,” he said. “Our enforcement actions will be more intensified, coordinated, and uncompromising to protect public health, uphold the law, and safeguard legitimate government revenues,” Mr. Mendoza said. — Aaron Michael C. Sy

Mary Jane Veloso clemency urged

DEATH-ROW prisoner Mary Jane Veloso, incarcerated for alleged drug trafficking in 2010, is emotional upon seeing her parents, and two sons inside the Correctional Institute for Women in Mandaluyong City on Wednesday, following her arrival after nearly 15 years of detention in Indonesia. — PHILIPPINE STAR/MIGUEL DE GUZMAN

A LAWMAKER on Monday filed a resolution urging President Ferdinand R. Marcos, Jr. to grant clemency to a Filipina drug convict who was narrowly spared from execution in Indonesia, citing humanitarian grounds.

House Resolution No. 583 seeks a clemency for Mary Jane F. Veloso, who was arrested in Yogyakarta in 2010 after being found with 2.6 kilograms of heroin concealed in a suitcase. She said she was an unwitting drug mule, but she was convicted and sentenced to death.

She was repatriated to the Philippines in December last year after Indonesia and Manila signed an agreement transferring her custody.

“Granting clemency is not a disregard of the law. It is a humanitarian act clearly recognized by our Constitution,” Party-list Rep. Sarah Jane Elago, who authored the measure, said in a statement.

Indonesia had indicated it would respect any decision made by the Philippines, including if she was given clemency. — Kenneth Christiane L. Basilio

NICA still monitoring mining exec

JOSEPH C. SY — GFNI.COM.PH

THE Philippines’ intelligence agency is still monitoring a mining company executive previously embroiled in an identity falsification charge on national security grounds.

The National Intelligence and Coordinating Agency (NICA) is keeping an eye on Global Ferronickel Holdings Inc. Chairman Joseph C. Sy, whose Filipino citizenship was questioned by the Bureau of Immigration (BI) and was detained in August, its director Ferlu J. Silvio said.

The Court of Appeals (CA) ordered Mr. Sy’s release in September, after it upheld a lower court ruling ordering his immediate release, recognizing him as a Filipino citizen.

“This case was dismissed for lack of probable cause,” Mr. Silvio told senators. “[But] from an intelligence standpoint, the existence of prior investigations remains relevant for longitudinal risk assessment and interagency awareness.”

Senator Ana Theresia N. Hontiveros-Baraquel said Mr. Sy’s ties to the mining industry and allegations questioning his Filipino citizenship should be examined by the Senate, which had earlier investigated dismissed mayor Alice L. Guo. She was accused of being a Chinese spy with links to crime syndicates, and a trial court sentenced her to life imprisonment in November after finding her guilty of human trafficking.

“This case reflects a broader pattern that this Senate has already begun to uncover,” she said in a statement. “We have seen foreign fugitives, economic criminals, and syndicate-linked individuals exploit weaknesses in our documentation systems.”

Mr. Sy, who attended the Senate hearing, invoked his right to “remain silent,” citing a pending case against him.

“Because of my ongoing case in CA, I apologize for I have to invoke my right to remain silent,” he told senators.

“Our agency continues to monitor Joseph Sy in coordinating with partner agencies strictly within the bounds of laws, and such monitoring is precautionary in nature and aimed at detecting potential foreign interference risk,” said Mr. Silvio.

Lawmakers are seeking to toughen Philippine anti‑espionage laws amid a deepening territorial dispute with Beijing in the South China Sea, which has stirred growing concern. Authorities earlier this year arrested several Chinese nationals suspected of spying on military bases and government facilities.

In the same hearing, the BI said it is moving to cancel the Philippine passport and initiate deportation proceedings against Mr. Sy.

BI Commissioner Joel Anthony M. Viado told the Senate Committee on Justice and Human Rights at a hearing on Monday that Mr. Sy shares the same fingerprints as a Chinese national named Chen Zhong Zhen.

Mr. Viado said records also indicate that Mr. Chen had admitted that he is also Mr. Sy. “He is not Filipino. As a matter of fact, Mr. Chen Zhong Zhen has an admission on record that he is Joseph Sy. One and the same person,” he said in a mix of English and Filipino.

Mr. Sy, who appeared at the Senate hearing, declined to confirm whether he is the same individual as Mr. Chen. He also refrained from answering several questions from senators, including details such as his birthplace and educational background.

Mr. Sy was the chairman of listed mining company Global Ferronickel Holdings, Inc. (FNI). He has reportedly taken a leave of absence following the recent allegations.

FNI did not immediately reply to an e-mail seeking comment.

The Senate inquiry follows allegations of false identity against Mr. Sy, including claims that his son holds both Chinese and Philippine passports and two birth certificates bearing different parental details.

In February 2015, an earlier deportation case against Mr. Sy was dismissed by the BI after his Philippine citizenship was presumed based on documents submitted at the time.

However, Mr. Viado said the dismissal was based on preliminary, or prima facie, evidence, which the agency later reassessed following additional verification.

“The basis for the dismissal was a presumption of his being a citizen due to the evidence presented. But this evidence is only prima facie. It can be overturned by contradictory evidence or by challenging the credibility of the initially presented evidence, which we were able to do later on,” he said. — Kenneth Christiane L. Basilio and Vonn Andrei E. Villamiel

3 cadets finish Australia training

BAGUIO CITY — Three cadets from the Philippine Military Academy (PMA) have successfully completed their academic and military training at the Australian Defense Force Academy (ADFA), marking another milestone in the growing defense cooperation between the Philippines and Australia.

Cadet First Class Charles Wandag Cayangao, Cadet First Class Nathanjan Barcelon Llasos, and Cadet First Class Kyle Rondobio Lanza, who all belong to the PMA Siklab-Laya Class of 2025, graduated on Dec. 11, highlighting PMA’s continuing efforts to develop globally competent officers for the Armed Forces of the Philippines (AFP).

They were deployed to Australia on Jan. 13, 2023, to undergo a three-year education and training program under the Philippines-Australia defense cooperation framework.

Mr. Llasos is set to return to Australia for an additional eight months of officer training at the Royal Military College-Duntroon.

Mr. Cayangao, 23, from Tanudan, Kalinga, earned a Bachelor of Science degree with majors in Physics and Aviation. He was recognized as the Best Performing ADFA International Trainee Officer in Fitness and received a Commanding Officer Military Commendation, reflecting his strong performance in both physical and military training. He chose to join the Philippine Navy, citing his desire to challenge himself beyond his familiar environment.

Mr. Llasos, 22, from Legazpi City, Albay, completed a degree in Computing and Cybersecurity and also received a Commanding Officer Military Commendation. He selected the Philippine Army as his branch of service, viewing it as a path where he can make a direct contribution on the ground. His upcoming training at Royal Military College-Duntroon is expected to further enhance his leadership skills in a multinational setting.

Mr. Lanza, 23, from Alabel, Sarangani Province, graduated with a Bachelor of Science degree with majors in Aviation and Geography. He opted to serve in the Philippine Air Force, motivated by his longstanding aspiration to become a pilot and contribute to national security through air power. He expressed his intention to give back to the AFP and the country after completing his training.

PMA officials said the graduation underscores the Academy’s commitment to producing professionally competent and globally exposed officers who can operate effectively with partner armed forces.

As PMA continues to strengthen security cooperation with like-minded nations such as Australia, similar international education and training opportunities are expected to prepare future AFP leaders to serve the nation with skill, character, and global awareness. — Artemio A. Dumlao

Bulacan airport contractor remains committed to project — San Miguel

SAN MIGUEL CORP.

SAN MIGUEL CORP. (SMC) said land development for the New Manila International Airport (NMIA) in Bulacan is ongoing, with contractor Boskalis Westminster still on board.

“SMC has committed hundreds of billions of pesos to build a major international gateway that will benefit the country for generations. We remain fully committed to completing this project responsibly and in accordance with global best practices,” the company said in a statement on Monday.

In October 2020, SMC said it selected Dutch firm Royal Boskalis Westminster NV, through Boskalis Philippines, Inc., to undertake land development work for the project, which will be built along the coast of Bulakan municipality, Bulacan.

“Boskalis continues to support the NMIA development and remains engaged with SMC in our technical and advisory role. We are aligned in ensuring that all works meet internationally recognized standards,” Boskalis said.

SMC said the project’s land development complies with global standards for infrastructure projects, with international lenders, specifically the International Finance Corp. (IFC), signing off on the project plans, which are compliant with the IFC’s environmental and social performance standards in terms of design, monitoring, risk mitigation, and community safeguards.

“These requirements exceed typical local regulations and ensure that all development works meet the highest global standards. Very few projects in the Philippines operate under this level of environmental and social commitment and compliance,” it said.

The company added that the development follows extensive hydrological studies, independent engineering reviews, and ongoing environmental monitoring, plus long-term flood mitigation measures for nearby communities.

SMC President and Chief Operating Officer Ramon S. Ang has said that SMC chose Boskalis to help ensure the airport project is developed properly and sustainably, adding that the Dutch company will prepare the site to withstand large earthquakes,  typhoons, and the rise of sea levels.

Also on Monday, SMC dismissed online claims questioning the project’s progress and viability as inaccurate and misleading.

“Some claims circulating online are inaccurate and misleading. These can create unnecessary confusion for the public and concern among stakeholders. We encourage anyone with questions about the project to raise them through proper channels, where they can be discussed transparently and with access to verified technical information,” it said.

SMC said it asked Meta Platforms, Inc. (formerly Facebook, Inc.) to review anonymous pages spreading such information.

In September, SMC disclosed a P471.12-million disbursement for the NMIA project, bringing total spending from the bond proceeds to P16.91 billion at the time, leaving a balance of P2.82 billion.

SMC closed 2.52% higher at P81.50 on Monday. — Alexandria Grace C. Magno

NAIA operator announces biometric gates for Terminal 3, dining upgrades

STOCK PHOTO | Image by Rawpixel.Com from Freepik

NEW NAIA Infra Corp. (NNIC), which operates Metro Manila’s main airport, said it will install biometric Immigration e-Gates at Ninoy Aquino International Airport (NAIA) Terminal 3 and upgrade its dining and lounge offerings.

In a statement on Monday, NNIC said it will install 78 biometric immigration e-Gates in phases, with some gates now operational at Terminals 1 and 3 for international flights.

“Delivered and funded by NNIC as part of its airport modernization program, the rollout allows new technology to be implemented more quickly at the country’s main gateway,” NNIC said. 

The e-Gates allow eligible passengers to clear immigration in about 20 seconds through biometric checks and document scans, cutting congestion at peak times without weakening border security.

“The platform is powered by Amadeus, a global travel technology company that provides advanced solutions to airports, airlines, and border authorities worldwide, supporting secure and seamless passenger processing across major international hubs,” it added.

NNIC will also open two food halls at Terminal 3. The 6,200-sq.m. Tambayan Food Hall seats up to 2,000 guests with 17 Filipino brands, and the 6,801-sq.m. Mezzanine Food Hall seats 600 guests with 22 restaurants and cafés. It is also launching a Food Village (airside).

It will also open a Dignitaries Lounge at Terminal 3 for up to 61 VIPs.

The company added that similar upgrades for passengers and systems are in the works at other terminals.

“This shows how this partnership with the government is delivering improvements that the public can actually see and feel. As we enter the new year, we look forward to continuing this work and building on what is already in place,” NNIC President Ramon S. Ang said.

The NAIA public-private partnership has sent over P57 billion in remittances to the government so far. — Alexandria Grace C. Magno

Palay estimates point to Q4 output drop; corn production expected to improve

PHILIPPINE STAR/ KJ ROSALES

PRODUCTION of palay (unmilled rice) in the fourth quarter could decline 2.9% year on year, with corn output estimated to increase 2.7% year on year, according to estimates based on the standing crop, the Philippine Statistics Authority (PSA) said.

As of Nov. 1, the PSA estimated fourth-quarter palay output of 7.02 million metric tons (MMT). The projection, if borne out, would come in below the 7.15-MMT forecast issued by the PSA in October.

The PSA said harvest area is likely to contract 3.91% year on year to 1.72 million hectares, with the yield per hectare expected to improve to 4.07 MT from 4.04 MT previously.

According to the PSA, as of Nov. 1,  1.10 million hectares or 63.8% of the estimated area planted to rice had been harvested, producing 4.61 MMT.

Of the total standing palay of 961.07 thousand hectares, 45.9% were at the maturing stage, 36.8% vegetative, and 17.3% reproductive.

Corn output is projected at 1.98 MMT in the fourth quarter, up 2.59% from the same quarter last year. The October estimate had been 2 MMT.

The corn harvest area is expected to rise 0.53% to 601.09 thousand hectares, while yield per hectare could improve to 3.30 MT, up 2.17% from a year earlier.

The PSA said as of Nov. 1, 303.32 thousand hectares or 50.5% of the area planted to corn had been harvested, yielding 1.11 MMT.

Of the total standing crop remaining of 544.58 thousand hectares, 46.2% was in the vegetative stage, 27.9% maturing, and 25.9% reproductive. — Vonn Andrei E. Villamiel

1...561562563...14,244Page 562 of 14,244
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube