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MARINA, IMO, World Bank team up to enhance domestic ferry safety, energy efficiency

MARINA

THE PHILIPPINE Maritime Industry Authority (Marina) announced on Monday that it is working with the International Maritime Organization (IMO) and the World Bank Group on a project aimed at improving domestic ferry safety while also incorporating energy efficiency.  

The three organizations started on Dec. 1 a nationwide study on passenger ship safety and energy efficiency in the Philippines.  

“With the maritime transport landscape continuously evolving, the implementation of the ‘Study on the Safety and Energy Efficiency of Domestic Passenger Ships in the Philippines’ is timely and relevant,” Shipyards Regulation Service Director Ramon C. Hernandez said in a statement.  

The study also aims to identify “the most practical and cost-effective options” for reducing the carbon footprint of the domestic shipping sector.  

Marina has previously issued policies aimed at mitigating the environmental damage caused by the shipping industry, including a memorandum circular requiring Philippine-registered ships plying domestic routes to adhere to the Global Sulphur Cap.   

“The regulation requires ships to use fuels with only 0.5% m/m Sulphur content,” Marina said. — Arjay L. Balinbin 

CoA flags Philheath’s release of P321-M interim fund relating to Taal eruption

PHILIPPINE STAR/ MIGUEL DE GUZMAN

STATE AUDITORS have called out the Philippine Health Insurance Corp. (PhilhHealth) for the release of P321.71 million to healthcare facilities in areas affected by last year’s Taal Volcano eruption without proper resolution from its board of directors. 

In its 2020 audit report, the Commission on Audit (CoA) said these funds were released to 131 healthcare institutions in Batangas under the Interim Reimbursement Mechanism (IRM) program.  

“The absence of a board resolution authorizing the release of funds under the IRM renders the same as legally infirm,” CoA said. 

The IRM program is meant for PhilHealth to extend assistance to its members affected by natural disasters, health emergencies, or other unexpected situations.  

The PhilHeath management replied in an audit comment that the release of the IRM was “right and just” as the agency had to act urgently following the calamity. 

The IRM funds were released to the concerned healthcare institutions in Batangas from Jan. 24 to Jan. 28, 2020, accounting for 50% of all pending claims in these facilities.  

However, PhilHealth’s board officially authorized the release of these funds through Resolution No. 2496 that was issued on Jan. 30.   

CoA said the early release of funds was contrary to Republic Act (RA) 7875, or the National Health Insurance Act, as amended by RA 10606, which requires the use of health insurance funds to be subject to laws and existing resolutions.  

Auditors also questioned why 37 out of the 131 medical facilities were granted IRM funding when these were not directly affected by the volcanic eruption, such as those located in municipalities in Batangas’ 4th district and Batangas City.  

These areas were given P116.44 million.    

PhilHealth explained that the 4th and 5th districts of Batangas were covered by the funding as they hosted displaced persons affected by the natural disaster.  

CoA recommended that the PhilHealth management submit necessary documents that authorized their regional office in CALABARZON to release IRM funds, along with a written explanation on why 37 HCIs received funding, and strictly comply with the National Health Insurance Act.  

CoA also flagged the state insurer in its report for making payments worth P14.97 billion under the IRM program to 711 HCIs without any legal basis. — Russell Louis C. Ku 

House probe sought on text scam offering fake jobs 

HOUSE LAWMAKERS from the progressive Makabayan bloc are seeking an investigation of text message scams offering high-paying jobs.  

The group filed House Resolution 2393 asking the House Committee on Information and Communications Technology to probe the matter. 

“It is unfortunate that some quarters take advantage of the (coronavirus) situation by promoting various type of scams,” according to a copy of the resolution.  

Bayan Muna Party-list Rep. Carlos Isagani T. Zarate said in a separate statement that some subscribers claimed that a spike in number of text scams was observed after submitting their phone numbers for contract tracing.  

Senators earlier said that the spam messages could hinder the government’s pandemic response by encouraging a reluctance to share personal information for contact tracing.  

The National Privacy Commission (NPC) has said the groups behind the text scams might belong to an international crime syndicate and called data privacy officers from telecommunication companies to a meeting to address the growing problem. 

The Makabayan bloc said that the NPC along with the National Telecommunications Commission and Department of Information and Communications Technology should “immediately further strengthen their monitoring, safeguard, and regulatory mechanisms” to prevent these messages from harming Filipinos during the pandemic.  

Quezon City Rep. Alfred D. Vargas has filed a similar resolution urging the three government agencies to conduct their own investigations and take legal actions against those involved in the fraudulent activity. — Russell Louis C. Ku 

Basilan Gov. Saliman seeks probe in shooting that killed 1 mayor, another injured 

BASILAN Governor Hadjiman Hataman Saliman asked authorities to create a special investigation team to ensure the speedy resolution of Monday’s drive-by shooting that killed one town mayor of the province and injured another mayor along with his bodyguard.   

In a statement posted on Mr. Saliman’s Facebook page, he condemned the attack “in strongest terms possible” and called on “authorities concerned to thoroughly investigate the incident and bring the perpetrators to justice the soonest time possible.”  

Al-Barka Mayor Darus S. Lajid died on the spot after being shot at by still unidentified men as the group disembarked from a speed boat that ferried them from Basilan to Zamboanga City’s Baliwasan Seaside at around 8 a.m., according to initial reports received by the governor.    

Akbar Mayor Alih A. Sali and one of his bodyguards, meanwhile, were injured and immediately brought to a hospital.   

Both mayors were running in the May 2022 elections.   

Mr. Lajid filed a certificate of candidacy for vice mayor under the national party Lakas Christian Muslim Democrats.  

Mr. Salih was running for reelection under the United Bangsamoro Justice Party, which is affiliated with the Moro Islamic Liberation Front that is currently holding leadership of the Bangsamoro region’s transition.   

The towns of Al-Barka and Akbar are both small municipalities in Basilan, each with a population of over 23,000.  

Basilan is an island province that is part of the Bangsamoro Autonomous Region in Muslim Mindanao. It’s closest point of entry to mainland Mindanao is through Zamboanga City. — MSJ  

Back to school in Metro Manila

PHILIPPINE STAR/ MICHAEL VARCAS

PEDRO Cruz Elementary School in San Juan City was among the 28 public schools in the capital region that joined the second batch for the nationwide pilot run of limited face-to-face classes on Dec. 6. Education Undersecretary Nepomuceno A. Malaluan said in a news briefing Monday that the trial physical reopening of schools in Metro Manila is crucial for the government’s safety assessment given that it is a highly-urbanized and congested district. The Education department will use the pilot run evaluation for recommending the “expanded” implementation of in-person classes across the country starting early 2022.

Abandoning nuclear power would be Europe’s biggest climate mistake

VWALAKTE-FREEPIK

(Last of two parts)

A host of reasons explains the long-term dip in nuclear construction. The Chernobyl accident in 1986 put most projects on hold as regulators reassessed the safety of operations. Many were later scrapped. Then, in the 1990s, as privatization swept the electricity sector, new owners sweated their (often lavish) endowment of assets rather than invest in new plants. What they did build tended to be gas power stations, taking advantage of the surge in cheap and secure (if now depleted) North Sea gas. As nuclear programs ended and supply chains withered, the costs of getting back into the nuclear game rose.

“Politicians have not yet grasped the scale of the problems they have created by failing to think ahead,” says Yves Desbazeille, chief executive of Foratom. His organization estimates that just maintaining nuclear’s proportion of power at today’s levels by 2050 requires the construction of 113 gigawatts on top of the 7.8 gigawatts under construction today. That essentially means replacing everything that currently exists in just two decades.

Restarting the nuclear industry is not the work of a moment, Desbazeille warns. “It takes a long time to set up a program. You have to get the design, license it, find the sites where you can start building.” The high costs and overruns associated with the few existing projects come from the fact they are “first of a kind” designs after decades of inertia.

That’s why Britain’s Hinkley Point project will produce power priced at £92.50 per megawatt-hour in 2012 money — a price that compares unfavorably with the latest UK offshore wind projects, which have come in at below £40 per megawatt-hour.

Nuclear’s payback only comes when countries build a fleet of similar reactors, creating the supply chain that allows for consistent delivery and drives down costs. For instance, South Korea has built reactors programmatically since the 1980s, which is why its costs are close to $2,000 to $4,000 per kilowatt, compared to $8,000 for the UK’s last completed one-off project, Sizewell B, in the 1990s, according to research by the Energy Technologies Institute. Simplification of design and smaller modular designs that can be factory-built might drive down costs further.

Certainty about policy is especially important to reduce the cost of capital, critical in an industry where huge sums are required upfront. Financing represents around 70% of the cost of nuclear per megawatt-hour. Ironically, countries that exit their nuclear programs, like Belgium and Germany, make it harder for those that wish to stay in.

Reigniting investment will not be easy. Many in the industry believe that it will require a level of political engagement not seen since France’s 1970s Messmer plan (conceived after the 1973 oil shock), which created the 58-strong reactor fleet that largely survives today. There are signs that some acknowledge the challenge. Britain’s Prime Minister Boris Johnson and France’s President Emmanuel Macron have both given speeches in the past month calling for a renewal of nuclear investment — the latter signaling a reversal of his predecessor’s plan to cut France’s nuclear output from 70% to 50% of its electricity. A number of central European countries — notably Poland — are planning investments, albeit driven as much by fear of dependence on Russia for gas as by any longer-term climate goal.

But nothing is simple in nuclear politics. If renewal is to happen, many think nuclear must be included in the EU’s “taxonomy” — which classifies energy sources as “green” for investment purposes. However, divisions in the bloc mean that is far from certain. Germany, for instance, has gathered support from Austria, Denmark, Luxembourg, and Spain to oppose such a move.

Ultimately, much depends on whether new nuclear is seen as vital in the battle to reduce emissions. Some think not. Mycle Schneider, editor of the World Nuclear Industry Status Report and a noted critic of the industry, argues that, aside from its cost, nuclear simply takes too long to build in the few years we have available to decarbonize.

“Every euro invested in new nuclear power plants makes the climate crisis worse because now this money cannot be used to invest in efficient climate protection options,” he has said.

Nuclear proponents say the costs of ignoring it could be higher. The only zero-carbon alternatives are carbon capture, which has yet to be proved at scale, and renewables, which pose as-yet-unsolved intermittency problems. Desbazeille is skeptical that variability can be solved by storage technology. “It is a fairy tale that we are building enough storage to back up renewables,” he says. “In total there is just 24 minutes of storage in the EU.”

*****

If politicians are to be convinced to back nuclear, Paul Bossens thinks public opinion must endorse it, too. After a decade on the road with his presentation, he feels the mood is now changing, perhaps impelled by the hard choices of the climate debate.

“The majority of the population is not against nuclear as a solution to the climate, but they are afraid to say it,” he says. “There’s still a lot of social pressure against it, and if you say you are pro, the loudest voices still say: ‘You are a bad guy, it is dangerous.’”

Recent polls in Belgium give some credence to this claim. A survey by broadcaster RTL in September showed 47% of Belgians are against the phaseout and only 30% favor it. A majority favor keeping nuclear in the energy mix. Germany has seen similar results — albeit with a majority, if a narrowing one, still favoring the phaseout.

Pro-nuclear activism may be a minority activity — Bossens’ pressure group 100 Terawatt Hours (a reference to Belgium’s annual electricity consumption) counts its membership in dozens, not thousands. But he thinks it’s a force multiplier having non-industry participants speaking up in favor of atomic power.

“People always assume anyone pro-nuclear must be funded by the industry,” he says. “When you tell them you are just a private citizen, they almost fall off their chair.”

The pro-nuclear movement is morphing in other ways, too. Historically, it has tended to put its case dryly, as if arguing on the facts alone is the way to change people’s minds. Appeals to emotion have been left to its opponents. Now organizations such as Mothers for Nuclear, a group founded by two nuclear workers in the US but with a base in Europe, seek explicitly to appeal to feelings as well as reason.

It presents nuclear’s dense energy output (the factor that keeps its physical footprint small) as a pro-nature choice, helping to preserve pristine landscapes and habitats for future generations. “We think it’s possible to be positive about both nature and humanity,” says its European director, Iida Ruishalme, a Finnish cell biologist who lives in Switzerland. “We want our children and their children to have the energy to lead a fulfilling life.”

It is a bold turnaround, associating nuclear with nature in this way. Early anti-nuclear movements grew out of another mothers’ movement, Women Strike for Peace, whose opposition to atmospheric testing was that atomic fallout was poisoning their children. When Rachel Carson published her seminal environmentalist tract Silent Spring in 1962, she located her motivation for investigating humankind’s “tampering” with nature in the development of atomic science.

Going from believing nuclear is dangerous to thinking that it’s vital is a big jump. And proponents don’t have that long to convince the public. Every day brings nuclear power’s ultimate demise a step closer. And even the most powerful appeals may not be enough to derail Belgium’s phaseout.

On a drizzly day a few weeks ago, on a concourse in front of Brussels Central railway station, Bossens and his colleagues convened a “Stand Up for Nuclear” rally to trumpet their opposition to the phaseout. (Stand Up is a loose coalition of pro-nuclear bodies from around the world convened by the American pro-nuclear campaigner Michael Shellenberger.) A ragged group of about 200 people gathered to listen to short speeches by activists from 11 countries, including the US and South Korea.

Among the speakers was an activist from Finland, Tea Toermaenen. Her frustration was evident. “It is infuriating to see other countries shutting down nuclear plants prematurely when we know that extending the life of existing plants is one of the most cost-effective things we can do for the climate,” she said. “The people of Belgium deserve better leaders. You have been let down.”

BLOOMBERG OPINION

Matter of platform or persona?

VECTORJUICE-FREEPIK

At the 47th Philippine Business Conference and Expo last month five presidential candidates presented what they would do in the first 100 days in office if elected president. I deduced that what they would focus on in their first 100 days as president is what they perceive to be the most serious concerns of the voters.

Here are the policies and programs of the five presidential candidates:

Vice-President Leni Robredo: Recovering from the COVID-19 pandemic through wider and more effective healthcare programs and energizing the economy through a stimulus package for micro, small, and medium size enterprises (MSMEs).

Senator Panfilo Lacson: Laying the foundation of a clean government, restoring confidence in government, funding fully the Universal Health Care Act, supporting the MSMEs, and expanding agriculture.

Senator Manny Pacquiao: Putting corrupt officials in jail, implementing a housing program for informal settlers, reducing loans.

Manila Mayor Isko Moreno: Reinforcing the health system, rehabilitating the economy by providing jobs, business and career opportunities, and reducing petroleum and electricity taxes.

Senator Bong Go has made known publicly his intention to withdraw from the presidential race. Whatever he said in the conference has become irrelevant.

Former Senator Bongbong Marcos did not participate in that conference. I glean from his latest advertisement that his platform is to unify the people to bring about prosperity and a bright future.

The presidential race in 2016 proved that winning is not just a matter of platforms and presenting them to as many people as possible. In spite of the fact that Davao Mayor Rodrigo Duterte declared his candidacy for the presidency just days before  a survey conducted by the Social Weather Stations (SWS) in late 2015, and that he still had no platform of government at the time of the survey, the results showed him as the most preferred candidate.

Presidential aspirants Grace Poe, Jejomar Binay, Manuel “Mar” Roxas, and Miriam Defensor-Santiago had been presenting their respective platforms from the time they declared their candidacies for the highest office of the land months before the survey. In fact, shortly after he was sworn in as vice-president in 2010, Binay made known publicly his intention to run for president and boasted of his capability to raise the people from the depths of poverty by hinting that what he had done for Makati he could do for the entire country if he were the president.

Binay, Poe, and Roxas conveyed their respective messages not only to the entire Metro Manila voting population but had taken their campaigns to the Visayas and Mindanao. They used mass media extensively to convey their message to the people. Binay presented to the public his solutions to the problems of poverty, Poe her program of inclusive growth and good governance, and Roxas his message of straight path governance. Santiago presented her programs of tax system reform and government efficiency improvement to university students.

Yet the survey showed that 48% of Metro Manila voters preferred Duterte over all of them. Binay, whose bailiwick of Makati is in the heart of Metro Manila, and who was once chairman of Metro Manila Development Authority, was preferred by only 18% of the area’s voters. Poe fared better, she being the choice of 22% of Metro Manila voters. Roxas had only 7% of Metro Manila voters favoring him.

In the Visayas, where Roxas, Poe, and Santiago come from, Duterte was the choice of 40%. Roxas was a poor second with a 20% preference. Davao Mayor Duterte got the votes of half of the Mindanao population.

Of the ABC income group voters, 62% named Duterte as their choice for president. Binay was the choice of only 16%, while Ms. Poe was the preference of only 13%. Roxas’ rating was 6%. Santiago’s was 3%.

Duterte leading in the polls in all areas and socioeconomic classes implied that the candidate’s persona is a bigger factor than his platform. I use the word “persona” instead of “personality” because “persona” is defined in the Cambridge Dictionary as “the mask or appearance one presents to the world.” In other words, persona is the type of character that a person seems to have that is different from his real character. Personality is “individuality existing in itself” or the set of personal attributes that makes the real person.

In 2016, Binay ran under the slogan “Gaganda ang buhay kay Binay” (Life will get better under Binay), citing his governance of the financial capital of the Philippines as basis of that claim. The slogan seemed to have worked for him as he topped the polls for a long time, until his bitter political enemies twisted the slogan into something like “gumanda ang buhay ng mga Binay nung namuno sila sa Makati” (the life of the Binays became better when they led Makati).

While having had only modest accomplishments as a senator, Poe topped the polls by projecting herself as the one to carry on what her adoptive father, the late Fernando Poe, Jr. (FPJ), had started. But when asked just what FPJ had started, she was stumped. She started to slide down in the polls ranking from then on.

Roxas presented himself as President Noynoy Aquino’s “anointed” and the “Toll patrol of the Straight Path.” His rivals for the presidency did not bother demolishing or distorting that image as it never catapulted him to the top spot in the polls anyway.

Santiago portrayed herself as the superior mind among all the presidential candidates as she had the highest academic achievement, being the only one with a master’s degree, from the prestigious School of Law of the University of Michigan at that, plus research fellowships in Oxford and Cambridge. Superior mind but sick body, her detractors pointed out. That she was gravely ill was public knowledge.

When Duterte joined the presidential race, he depicted himself as the “The game changer” and the “Fearless and relentless buster of crime syndicates.” It was an image in sharp contrast to the “laidback president” persona of then incumbent President Noynoy Aquino. The image got Duterte elected president.

The present presidential aspirants also told the attendees of last month’s business forum the image they project for themselves. Here are their respective images:

VP Robredo: A leader who marched and worked alongside people and fought for their dreams of a country they deserve; a public servant who did what she could with the limited power and resources available to her to uplift the lives of the people.

Sen. Lacson: Experienced in governance, leader, honest.

Sen. Pacquiao: One who truly loves the country and the Filipino people and is dedicated to improving their lives that they may not experience the suffering he went through.

Mayor Moreno: Harbinger of true and meaningful change.

Based on his earlier and current commercials, former Sen. Marcos projects the image of the unifying leader who will work non-stop to bring about prosperity and a bright future.

Do these images reflect the true personality of the candidates? The next survey results will tell us what the voters think.

 

Oscar P. Lagman, Jr. had worked for a public opinion/market research firm, an advertising agency, and taught marketing subjects in three graduate schools.

Kill coal is kill growth agenda

When the “phase out” of coal power became “phase down” at the recent United Nations Climate Change Conference in Glasgow (COP26), the climate alarmism movement took it as the defeat of their “last chance to save the planet” narrative. Their next move was to target individual countries.

HOUSE RESOLUTION 2361
In the Philippines, House Resolution No. 2361 was introduced on Nov. 16 by Pampanga Rep. Juan Miguel “Mikey” M. Macapagal Arroyo hastening the “Philippines’ transition to 50% renewable energy [RE] sources by 2030.” The existing target under the National Renewable Energy Program (NREP) 2020–2040 is 35% RE in the power generation mix by 2030 and 50% by 2040. So Mr. Arroyo and the kill-coal lobbyists want to hasten the transition by 10 years.

This and related proposals like the Asian Development Bank’s acquire-retire-coal scheme to be replaced by RE, especially intermittent solar and wind, are impractical and based on emotion, not reason. Below are four quantitative reasons why.

HIGH COAL GENERATION, LOW SOLAR + WIND GENERATION
One, coal provided up to 57% of total power generation in the country as of 2020, solar + wind provided only 2.4%. In the first 10 months of 2021 in the Luzon-Visayas grids, coal provided 55% while solar + wind generated only 2.9% share. If we persist in having more intermittent unstable and weather-dependent energy, we will have daily Earth Hours soon.

Two, generation capacities of other indigenous energy are limited. From 2010 to 2020, natural gas generation was flat at 19,500 gigawatt-hours (GWH); geothermal, flat at 10,000 GWH; and hydro, flat at 7,000+ GWH. The main reason the Blackout Economics agenda of the RE lobby did not happen is because coal generation has expanded big time, from 23,300 GWH in 2010 to 58,200 GWH in 2020 (see table 1).

MORE COAL, MORE GROWTH
In the next table below, I computed the decadal averages of energy consumption in Petajoules (1 PJ = 277.78 GWH) and GDP growth of selected countries.

Three, countries that expanded their coal consumption and did not significantly raise their solar + wind share have fast or high GDP growth. Examples are China, India, S. Korea, Indonesia, Taiwan, Vietnam, Malaysia, Thailand, and Philippines. Japan is the exception for some reason/s.

Four, countries that shrank their coal consumption and significantly raised their solar + wind share have slow and anemic GDP growth. Examples are the US, Germany, UK, Italy, Spain, France, and the Netherlands. Exceptions in Europe and have relatively fast growth are Kazakhstan and Turkey, they expanded their coal use instead. Russia and Poland have shrunk their coal use but they did not significantly increase their solar + wind share, they experienced modest growth (see table 2).

Of course, there are other factors that contribute to fast or slow growth of countries but for this paper, we want to see if the desire of the RE lobby will be useful or not for developing countries like the Philippines. The above numbers show that the answer is no. The RE lobby is useless in pushing the Philippines and other developing countries in their desire to have sustained growth and uplift millions of their people from poverty.

TRANSMISSION WOES IN NEGROS AND NGCP MONOPOLY
My Nov. 15 column discussed the high power prices in Negros provinces after the National Grid Corp. of the Philippines (NGCP) Negros-Cebu submarine cable was damaged this June by Department of Public Works and Highways (DPWH) dredging and re-channeling activities in Amlan, Negros Oriental. Transmission was cut by half to only 90 MW and market prices in the alternative transmission Negros-Panay shot up to P7.70/kwh in the July billing; P7.55/kwh in August; down to P3.42/kwh in September, when the submarine cable was fixed.

Both NGCP and DPWH assumed zero liability for the higher cost of electricity for two months in Negros Occidental and Oriental. All congestion costs were passed on to consumers and generation companies (gencos). The DPWH or its contractor should have liability insurance to handle these cases but the NGCP went chummy friendly with DPWH. And the Energy Regulatory Commission (ERC) did not penalize NGCP for not going after DPWH and its contractor. ERC went chummy with NGCP. Shame.

COMPETITION UNDER EPIRA IS WORKING
Updated data show that the Electric Power Industry Reform Act (EPIRA) of 2001 or RA 9136 is working for the consumers via more competition, more choices. The registered electricity players in the Luzon-Visayas grids alone as of Nov. 26, data from IEMOP:

The Wholesale Electricity Spot Market (WESM) now has 281 members: 143 gencos, 71 electric cooperatives (ECs), 47 directly connected customers, and 20 private distribution utilities (DUs) and local government utilities.

The Retail Competition and Open Access (RCOA) program has 1,970 participants: 1,834 contestable customers, 59 retail metering service providers, 37 national retail electricity suppliers (RES), 25 suppliers of last resort (SOLR), 15 local RES.

Medium to large customers can choose whether to stay with their ECs or DUs, or become contestable customers and choose their own RES with customized power supply, services and pricing.

GREEN OPTION IS AVAILABLE
Instead of pushing for mandatory transition to RE by restricting and later killing coal plants, RE advocates and lobbyists can walk the talk by joining the Green Energy Option Program (GEOP) under the Renewable Energy Act of 2008. Consumers enter into supply contracts with RE suppliers (i.e., only RE will be supplied, no fossil fuels) which are registered with the Central Registration Body (CRB). The CRB processes the GEOP switch request by the consumers and RE gencos will supply the needs of the customers.

Registration of RE suppliers started on Dec. 3 and the switch to GEOP will start by Jan. 3, 2022. More GEOP customers and participants, more RE will be supplied, less demand for fossil fuels. People walk their talk, no need for legislated RE mandates and political noise and drama.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

In aid of legislation

“Public office is a public trust” is enshrined in the 1987 Philippine Constitution. Congress plays a crucial role in upholding accountability and the system of checks and balances in both executive and judicial branches of the government.

An investigation in aid of legislation is indeed necessary to avoid any possible tax evasion, smuggling, graft and corruption or money laundering, especially in government procurement or spending of taxpayer’s money during a pandemic.

The Senate Committee on Accountability of Public Officers and Investigations (Blue Ribbon) presided by Senator Richard “Dick” J. Gordon conducted its 15th public hearing on Friday, Nov. 26, on the 2020 Commission on Audit (CoA) Report and other issues related to budget utilization of the Department of Health (DoH), especially its expenditures related to the fight against the coronavirus disease 2019 (COVID-19).

While the investigation is far from over, the Senate Blue Ribbon already released an initial report and filed cases against those who are responsible for the procurement of the alleged overpriced face masks, face shields, and other medical supplies.

In the last 14 hearings, due diligence has been underscored as mandatory and indispensable for any government agency and/or officials in spending public funds even during a state of emergency. While the Bayanihan to Heal as One Law (Bayanihan I) allows an “expeditious” manner of procurement, the Government Procurement Reform Act or Republic Act (RA) 9184 must not be totally disregarded in the exercise of due diligence.

Unfortunately, the Data Privacy Act (RA 10173) and the Bank Secrecy Law (RA 1405) have been invoked by the officers of Pharmally Pharmaceutical Corporation to evade providing information to verify the facts and uncover the truth. Although the National Privacy Commission has already issued an official statement clarifying that the Data Privacy Act cannot be invoked in refusing to submit subpoenaed documents, the Senate Blue Ribbon has yet to secure required financial documents to expedite the investigation.

The Philippines is among the three countries in the world that have ultra-strict bank secrecy laws. The other two countries are Lebanon and North Korea. This has to be repealed or lifted especially during fraud investigations whether on tax evasion or graft and corruption cases to prosecute violators particularly corrupt public officials who have been inadvertently benefiting from the bank secrecy.

But will Congress repeal the Bank Secrecy Law which might expose alleged ill-gotten wealth?

As the investigation continues, several deficiencies, material misstatements and undisclosed information were cited. These would have been prevented if concerned government agencies were more strenuous and tax information was required to check the veracity of financial documents submitted without compromising ease of doing business.

In incorporating a company, the Securities and Exchange Commission (SEC) must require a Tax Identification Number instead of passport number, latest income tax return, and bank statement as proof of financial capacity of incorporators/shareholders. Further, basic due diligence must be done before approving articles of incorporation particularly on affiliate companies with the same directors, foreign investors or dummy incorporators and use of offshore accounts or illegal sources of capital.

Mandatory audit and investigations of government contractors and suppliers must also be conducted before issuing tax clearance, which is required to join government bidding.

Evidently, the role of Certified Public Accountants (CPAs) has been highlighted once again like in previous cases involving tax evasion, graft and corruption, and other fraudulent activities. Needless to say, the accountants and auditors are equally responsible for filing fraudulent tax returns or audited financial statements with material misstatements.

Section 253 of the tax code provides automatic revocation or cancellation of a certified public accountant (CPA) license upon conviction of tax evasion. However, this does not apply to accountants and auditors working for individuals or companies violating the tax code.

The Bureau of Internal Revenue must include both accountants and auditors who prepared and audited the financial statements and fraudulent tax returns, in filing tax evasion case/s against offenders. This will send a strong message to everyone, especially CPAs, that violating the tax code is a serious civil and criminal offense.

Further, Section 253 of the tax code includes that, “if the offender is a public officer or employee, the maximum penalty prescribed for the offense shall be imposed and, in addition, he shall be dismissed from the public service and perpetually disqualified from holding any public office, to vote and to participate in any election.”

For foreigners doing business in the Philippines, they shall be deported immediately after serving the sentence without further proceedings for deportation if found guilty of tax evasion.

In spite of these, tax evaders and offenders seem fearless and heartless, while others even aspire for higher government positions.

The Senate Blue Ribbon has an immense responsibility to shed light on all these allegations by continuing the investigation in aid of legislation and enact laws which will uphold the constitution, i.e., “PUBLIC OFFICE IS A PUBLIC TRUST.”

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.

 

Raymond “Mon” A. Abrea is member of the MAP Ease of Doing Business Committee, Founding chair and senior tax advisor of Asian Consulting Group and co-chair of Paying Taxes – EODB Task Force. He is trustee of Center for Strategic Reforms of the Philippines — the advocacy partner of the BIR, Department of Trade and Industry (DTI), and Anti-Red Tape Authority (ARTA) on ease of doing business and tax reform.

map@map.org.ph

mon@acg.ph

Myanmar’s ousted leader Suu Kyi sentenced to four years in prison

AUNG SAN SUU KYI — REUTERS

MYANMAR’s deposed leader Aung San Suu Kyi was sentenced to four years in jail on Monday on charges of incitement and breaching coronavirus restrictions, a source familiar with the proceedings said, in a case critics dismissed as a farce.

President Win Myint was also sentenced to four years in prison, the source, who spoke on condition of anonymity, said, as the court delivered its first verdicts against civilian leaders detained in a Feb. 1 military coup.

Myanmar has been in turmoil since the coup against Ms. Suu Kyi’s democratically elected government sparked widespread protests and raised international concern about the halt to tentative political reforms following decades of military rule.

Nobel peace prize winner Ms. Suu Kyi, 76, has been detained since the coup along with most senior leaders of her National League for Democracy (NLD) party. Others are abroad or in hiding and no party spokesperson was available for comment.

Rights group Amnesty International said the charges against Ms. Suu Kyi were bogus and described the jail sentence as the latest example of the military’s determination to eliminate all opposition and suffocate freedoms.

“The court’s farcical and corrupt decision is part of a devastating pattern of arbitrary punishment that has seen more than 1,300 people killed and thousands arrested since the military coup,” the group’s deputy regional director for Campaigns, Ming Yu Hah, said in a statement.

The military has not given details of where Ms. Suu Kyi has been detained and it was not immediately clear if the sentencing would mean any immediate change in her circumstances.

The trial in the capital, Naypyitaw, has been closed to the media and the junta’s public information outlets have not mentioned the proceedings. Ms. Suu Kyi’s lawyers have been barred from communicating with the media and public.

Ms. Suu Kyi faces a dozen cases that include multiple corruption charges plus violations of a state secrets act, a telecoms law and COVID-19 regulations, which carry combined maximum sentences of more than a century in prison.

Ms. Suu Kyi and co-defendant Mr. Win Myint received jail terms of two years for incitement and the same term for breaches of coronavirus protocols. They had denied the charges. 

‘ILLEGAL POWER GRAB’
Ms. Suu Kyi’s supporters say the cases are baseless and designed to end her political career and tie her up in legal proceedings while the military consolidates power.

Her jailing had been widely expected.

“I don’t expect anything out of this broken justice system,” said Maw Htun Aung, a deputy minister in an opposition parallel government, told Reuters.

The junta says Ms. Suu Kyi is being given due process by an independent court led by a judge appointed by her own administration.

Ms. Suu Kyi, the daughter of the hero of Myanmar’s independence from British colonial rule, spent years under house arrest for her opposition to military rule but was freed in 2010 and led her NLD to landslide victory in a 2015 election.

Her party won again in November last year but the military said the vote was rigged and seized power weeks later. The election commission at the time dismissed the military’s complaints of vote fraud.

The international community has condemned the violence in Myanmar since the coup, and Western states have demanded Ms. Suu Kyi’s release.

Matthew Smith, chief executive of the Fortify Rights group, said the sentencing was “part of a widespread and systematic attack on the civilian population” and called for the immediate release of Ms. Suu Kyi and other political prisoners.

The group ASEAN Parliamentarians for Human Rights said no-one was fooled by the outcome of the trial.

“Since the day of the coup, it’s been clear that the charges against Aung San Suu Kyi and the dozens of other detained MPs, have been nothing more than an excuse by the junta to justify their illegal power grab,” it said in a statement. — Reuters

Bad weather hampers rescue efforts at Indonesian volcano

SUMBERWULUH, Indonesia — Indonesia’s Mt. Semeru volcano continued to spew hot clouds of ash on Monday, days after a powerful eruption killed 15 people and left dozens more missing.

The tallest mountain on the island of Java erupted dramatically on Saturday, shooting a towering column of ash into the sky that blanketed surrounding villages.

Aerial footage of the affected areas showed roofs jutting out of an ashen landscape, while on the ground, military officers, police and residents dug through mud with their hands to extricate victims.

The death toll rose to 15 by Monday, while 27 people remain missing, Indonesia’s disaster mitigation agency said in a statement.

The volcano erupted again on Monday morning, Indonesia’s Center for Volcanology and Geological Hazard Mitigation (PVMBG) confirmed via its Twitter account, warning of continued seismic activity.

“Semeru is one of the most active volcanoes in Indonesia. Before and after the Dec. 4 eruption, it will continue to be active,” Liswanto, the head of the Semeru Volcano Observatory told Reuters.

As some anxious residents returned to their homes to check on belongings and livestock, Liswanto urged people to keep a safe distance.

“People need to be more vigilant because the potential threat is still there,” he added.

In the Sumberwuluh area, rescue teams battled poor weather to retrieve victims from the rubble.

“We were looking for nine people reported missing in this village and thank God we found [the bodies of] three victims,” said Estianto Hendriantono, chief of the local search and rescue effort. “The challenge for the evacuation was that they were trapped under logs and rocks, and the soil was still hot.”

On Facebook, people have posted photos of their missing relatives, with public pleas for any information about their whereabouts.

Complicating logistics and rescue efforts, lava flows from Saturday’s eruption destroyed a bridge connecting two areas in the nearby district of Lumajang with the city of Malang.

Public kitchens and health facilities have been set up for more than 1,700 people who have been displaced.

A trauma healing team to work with children affected by the eruption has been dispatched, CNN Indonesia reported, while hundreds of aid packages, including rice, blankets and clothes and other basic necessities have been sent to the area.

Semeru is one of more than 100 active volcanoes in Indonesia, a country that straddles the Pacific Ring of Fire, an area of high seismic activity that rests atop multiple tectonic plates. — Reuters

COVID shots are finally arriving, but Africa can’t get them all into people’s arms

FREEPIK

SEKENANI, Kenya — When a group arrived at the Sekenani health clinic in rural Kenya for their COVID-19 vaccines recently, staff told them there were no doses left and that they should come back soon.

For some, it meant a long wasted journey on foot and a day away from their cattle herds.

Yet Narok county, where the clinic is located, was not short of vaccines; nearly 14,000 doses were sitting in a fridge in the nearest town, 115 km away. A mix-up with county officials meant Sekenani did not get enough, two health workers said.

“We had to say sorry. It’s not a good feeling, when somebody comes and they want the vaccine, and we don’t have it,” clinician Mike Nalakiti, 27, told Reuters.

The small failure in a village 270 km southwest of the capital Nairobi is an illustration of the challenges African nations now face as they battle COVID-19: Even though vaccine supplies are finally ramping up, getting needles into arms is proving the hard part.

Successful vaccination campaigns in Africa are vital to ending the pandemic globally, health experts say. The continent’s low inoculation rates encourage viral mutations like the new Omicron variant spreading across South Africa, which has prompted another spate of international travel bans.

Only 102 million people, or 7.5% of the continent’s population, are fully vaccinated, according to the World Health Organization, which warned vaccine inequity will prolong the pandemic.

African governments have been crying out for higher vaccine deliveries this year, but production constraints and hoarding by richer countries severely limited supplies until recently.

Shortages of funds, medical staff and equipment, as well as vaccine hesitancy, were already hobbling inoculation campaigns in some parts of Africa. The anticipated surge, comprising millions of jabs in the coming weeks, could expose those weaknesses further, experts warn.

About 40% of vaccines that have arrived so far on the continent have not been used, according to data from the Tony Blair Institute for Global Change, a policy think-tank.

The rate of vaccine use will have to rise four-fold to keep up with expected supply in coming months, the institute says.

“We are all, like you, very concerned that countries are not picking up the vaccines. The uptake is not as we would have loved to see,” head of the Africa Centers for Disease Control and Prevention John Nkengasong said.

FRIDGES AND MOTORBIKES
Vaccination rates vary widely across Africa, a continent of well over a billion people, and some health systems in relatively small nations and in North Africa are having more success.

Cape Verde, an archipelago nation off West Africa with a population of about 600,000, has vaccinated nearly 65% of adults, rivaling some European countries.

In Democratic Republic of Congo, a restive country in Central Africa with a population of nearly 90 million, the number is 0.1%.

In some ways, Kenya is doing relatively well. East Africa’s largest economy has received nearly 5 million doses in the past two weeks after months of slow supplies.

On Dec. 1, it vaccinated a record 110,000 people and aims to maintain that rate for the next 30 days, said Willis Akhwale, head of the government’s COVID-19 vaccine task force. That would bring the total vaccinated to 10 million out of a population of 47 million, he said.

Yet in the rural Sekenani clinic at the edge of the famous Maasai Mara Game Reserve, where elephants and lions roam, challenges abound.

The clinic started offering COVID-19 vaccinations four weeks ago. It keeps running out of doses and has only one reliable fridge, which is also used for routine immunizations, said clinical officer Gerald Yiaile.

Staff need motorbikes to take vaccines to the community, semi-nomadic livestock herders from the Maasai ethnic group who struggle to afford transport for healthcare, he said.

He applied to local authorities for funds for mobile vaccination and has not heard back.

“We have been forced to ask the community to come to us instead of us going to them,” Mr. Yiaile said.

NOT ENOUGH MONEY
African nations scrambled to ready their health systems earlier this year as global vaccine-sharing scheme COVAX began delivering doses in small quantities months after wealthy countries began inoculations.

Cash-strapped countries were short of cotton wool, fridges, face masks and trucks.

COVAX deliveries were then disrupted after COVAX’s major supplier India halted vaccine exports. The pause gave countries time to improve vaccination rollout without being inundated. They did so to differing degrees.

The GAVI vaccine alliance, a co-leader of COVAX, initially did not prioritize investing in the ultra-cold chain equipment needed for mRNA shots like Pfizer’s because it expected the bulk of doses to be the cheaper and easier-to-administer AstraZeneca shots produced in India, Reuters reported in September.

As vaccine deliveries to Africa soar, absorption of large volumes is expected to represent a major challenge for many poor countries, particularly because a substantial volume will be from Pfizer, GAVI said in internal documents prepared for its board meeting last week and seen by Reuters.

Even Kenya, which has the ultra-cold chain capacity to store 3 million Pfizer doses, is worried its cold chain will get constrained by the influx, threatening its routine immunization program, Mr. Akhwale said.

Cameroon in Central Africa had 244 vaccination centers at the start of its vaccine rollout in April, and now has 1,000, said Njoh Andreas Ateke, deputy head of the immunization program.

But health workers and officials say that power outages and lack of staff have compromised vaccines.

The country has one refrigerated truck suitable to transport vaccines, said Leonard Kouadio, UNICEF’S health section head in Cameroon. It needs at least 2,500 more fridge temperature gauges and more trucks to increase distribution, he added.

Mali, one of Africa’s largest and poorest countries, has two refrigerated trucks to carry vaccines long distances. Some health workers fled their posts in the north because of insecurity caused by an Islamist insurgency, said UNICEF health program manager in Mali, Abdoul Gadiry Fadiga.

The country expects to receive about 3.5 million doses between now and the end of March, more than double the number it has received since inoculations began, Fadiga said.

Mali has enough cold chain capacity to deal with the initial rush of doses until March, Fadiga added, but it still needs 288 fridges and freezers for its full rollout, only 10 freezers of which had arrived.

Funds have been slow to materialize. The World Bank has approved $9.8 billion for emergency health responses, including for vaccine deployment, in developing countries globally, but so far only $4.4 billion has been disbursed.

Mali and Cameroon await support.

A World Bank official said disbursements were happening “very fast.”

REACHING OUT
Even when help arrives it can backfire. Donors have sometimes sent African nations vaccine batches nearing expiration, in some cases rendering them unusable.

Countries desperate for vaccines, including South Sudan and Congo, had to send some back because they could not distribute them in time. Namibia warned last month it may have to destroy thousands of out-of-date doses.

South Africa asked Johnson & Johnson and Pfizer to delay delivery of vaccines because it had too much stock.

A key difficulty in administering vaccines is community skepticism, sometimes driven by religious belief and mistrust of Western drug companies and their own governments. Insufficient education about COVID-19 vaccines enables rumors to spread.

That can be the result of local staff and budget shortages, health workers from across the continent told Reuters.

Ethiopia is worried that vaccines might expire before they are used due to low demand, and is trying to overcome vaccine hesitancy through outreach to communities via local religious and civil society groups, said Muluken Yohannes, a senior adviser to Ethiopia’s health ministry.

“Currently, developed countries … have satisfied their vaccine needs. As a result, they are pushing leftover vaccines … to developing countries. However, the golden period to absorb these vaccines has already passed,” he said.

Kenya has ramped up its vaccine rollout with social media and television and radio ads promoting vaccines. Posts on the health ministry Twitter feed urge pregnant and breastfeeding mothers to get vaccinated.

Not everyone gets the message. Nicky Theron, 20, who works at a clothing shop in the town of Talek, is five months pregnant and scared of the jab. She doesn’t follow any government Twitter accounts.

“I have never heard of anybody who is pregnant receiving the vaccine,” she said.

Some feel they could be persuaded if someone came to explain in person.

Julius Tuyioto, who herds livestock on arid plains in southern Kenya, hears the government warn of the dangers of COVID-19 on the radio. But the disease hasn’t hit his community; he says it doesn’t feel real.

“There is no civic education on why we should be vaccinated. No one is telling us,” Mr. Tuyioto told Reuters outside his mud brick home in Narok County, to the chime of goat bells.

Last month, the government sent vaccines by motorbike to the nearest primary school, five kilometers away, he said. But he did not hear about it until the third and final day, when it was too late for him to go. — Reuters