Home Blog Page 6084

Bayanihan II extension, military pension up for deliberations as House hybrid plenary sessions resume  

THE HOUSE of Representatives is set to resume plenary sessions under a hybrid set-up on Monday after a two-week suspension due to the imposition of enhanced community quarantine (ECQ), the strictest lockdown level, in Metro Manila.  

Sessions will be held from 2 to 5 p.m. with only House leaders and a limited number of secretariat personnel physically present inside the session hall, according to a memorandum issued by Secretary General Mark Llandro L. Mendoza.    

Other members will attend plenary sessions through video conferencing in Zoom.  

House Speaker Lord Allan Jay Q. Velasco said the lower chamber will have to “work double time” to pass pending measures.  

Among possible bills that could be tackled would be House Bill 9654, a priority measure of President Rodrigo R. Duterte providing for a unified system for the separation, retirement, and pension of military and uniformed services personnel.   

Other pending measures include House Bill 9538, which seeks to extend the validity of stimulus funds under the Bayanihan II law to Dec. 31, and the Hidilyn Diaz Act that would provide tax relief for winnings of local athletes who compete in international sports competitions.   

“We will tackle as many bills and resolutions as possible to make up for the time lost during the ECQ,” Mr. Velasco said in a statement on Sunday.  

During the two-week suspension, committee hearings proceeded through videoconference.    

ACT-CIS Party-list Rep. Eric G. Yap, chair of the House appropriations committee, said in a phone interview on Saturday that hearings and deliberations on the 2022 national budget will also be held through a hybrid set-up.  

“Those who are in the province who cannot attend [physically] can join via Zoom and then the agencies who can come [to the hearings] will be physically present,” he said in a mix of English and Filipino.  

Budget hearings are set to start on Aug. 26 once Congress receives the 2022 National Expenditure Program from the executive department.    

Mr. Yap also said that the recent audit reports by the Commission on Audit (CoA) will not have any effect on the speed of budget deliberations, adding that they will probe agencies on how their allocated 2022 budget will be utilized in light of these findings.  

This comes after the Department of Health, among other agencies, came under fire after state auditors flagged deficiencies worth over P67 billion in their handling of pandemic funds due to non-compliance of government procedures. — Russell Louis C. Ku 

NBI findings on PNP-PDEA shootout expected this month 

PHILIPPINE STAR/ MIGUEL DE GUZMAN

ALMOST SIX months after the alleged misencounter between national police and anti-drug forces, Justice Secretary Menardo I. Guevarra said the National Bureau of Investigation (NBI) “hopes” to submit its final report on the probe by the end of the month.   

“The NBI hopes to submit its final report to the DoJ (Department of Justice) by the end of this month,” Mr. Guevarra said in a Viber group message to reporters on Sunday.   

“The NBI has almost completed its investigation and is waiting for just one remaining critical report,” he added.   

Mr. Guevarra said the NBI is still waiting for the result of the digital forensic examination of the mobile phones of police and Philippine Drug Enforcement Agency (PDEA) operatives involved in the shootout before it concludes its investigation.   

“A lot of material evidence is expected to be mined from these devices,” he said.   

He explained that the process took so long due to “the tedious process of obtaining cyber warrants,” and because “forensic investigators have had to examine meticulously an average of 22,000 pages of text messages, call logs, videos, and pictures per mobile phone.”   

On Feb. 24, 2021, the national police and PDEA operatives were to carry out an anti-drug operation along Commonwealth Avenue in Quezon City, which instead led to a shootout between the two forces. Two policemen, one PDEA agent, and one informant died in the gunfight.  

On May 14, the anti-drug operation of the two forces in a Quezon City mall again almost led to a shootout.   

Three days after, national police chief Guillermo T. Eleazar said they have crafted unified guidelines and protocols with PDEA to establish better communication and coordination, especially during anti-illegal drug operations. — Bianca Angelica D. Añago  

Charges filed vs onion smugglers caught in Subic, Davao ports 

BUREAU OF CUSTOMS

THE BUREAU of Customs (BoC) filed three criminal cases against importers and customs brokers involved in smuggling P29.236 million worth of onions last month, it said in a press release over the weekend. 

The BoC filed the first complaint against Thousand Sunny Enterprise and its customs broker for misdeclaring shipments of P7.3 million of fresh red onions on July 1 and July 6 at the Port of Subic.  

Customs also filed a case against Duar Te Mira Non-Specialized Wholesale Trading for illegal importation and failure to fully declare P20.22 million worth of onions on July 9 and 13 at the Subic port as well.  

The bureau also filed a complaint against CBJ Consumer Goods Trading and the broker who handled the transaction where 2,500 bags of onions worth P1.72 million were misdeclared on July 29 at the Port of Davao.  

BoC said the importers and brokers violated provisions under the Customs Modernization and Tariff Act, the Republic Act no. 10845 or the Anti-Agricultural Smuggling Act of 2016, as well as certain guidelines for importation of agricultural commodities issued by the Department of Agriculture.  

“BoC remains committed in taking action against violators of customs laws, rules and regulations in order to protect the government’s revenue and uphold public interest,” the statement read.  

Customs confiscated P10.169 billion worth of smuggled goods from its 557 operations in the first half. — Beatrice M. Laforga 

MPIC distributes AstraZeneca vaccines to local governments 

AN INITIAL 2,500 doses of AstraZeneca vaccines, donated by the MVP Group of Companies through PLDT-Smart Foundation, are delivered to General Santos City on Aug. 17. The vaccines will be inoculated through St. Elizabeth Hospital, a part of the Metro Pacific Hospital Holdings, Inc.’s network of medical facilities. — ST. ELIZABETH HOSPITAL FACEBOOK PAGE

METRO PACIFIC Investments Corp. (MPIC) and PLDT, Inc. are giving and initial 50,000 doses of AstraZeneca vaccines to five local governments, with the cities of General Santos and Davao in Mindanao the first to receive their share.   

“We know that our local executives have been very busy 24/7 and remain at the frontlines as the COVID-19 (coronavirus disease 2019) pandemic continues to endanger lives, especially with new variants arising… we understand that the situation calls for ‘all-hands-on deck’,” MPIC Chairman Manuel V. Pangilinan said during last week’s virtual turnover ceremony for the initial 5,000 doses allocated to Davao City.   

MPIC, in a statement Friday, said the vaccine donation is intended to augment the ongoing vaccination efforts of the government through the supply of 2.6 million doses purchased by the private sector.   

The three other local government beneficiaries are Bacolod City in the Visayas, and Malabon and Navotas in Metro Manila.   

“We join you in our common goal to attain herd immunity as soon as possible. We pray that the pandemic may end soon, but while we might still have a long way to go before we can truly revert to normal, be assured of our support to make the way less painful for our countrymen,” Mr. Pangilinan said.   

MPIC said a second batch of 50,000 AstraZeneca doses are expected to arrive early next year. The group has yet to identify the beneficiaries.     

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — MSJ

Davao investment conference expands focus on manufacturing, BPO sectors  

DAVAO’S BUSINESS community is putting focus on the promotion of manufacturing and outsourcing services among the emerging investment opportunities in the region while continuing to strengthen growth in agribusinesses.   

“Davao has become ripe for many types of investments and despite the pandemic, Davao Region posted a 7.6% contraction, beating the national average which was a 9.6% contraction. During the pandemic, industries continue to thrive and are still operating. “Damosa Land, Inc. First Vice President Ricardo F. Lagdameo said during last week’s virtual launch of the Davao Investment Conference 2021. 

Mr. Lagdameo, chair of this year’s conference, said manufacturers in light industries and business process outsourcing (BPO) firms are among the growing number of investors in the regions.    

“Whether it is a major hospitality project in Davao de Oro, an agribusiness project in Davao Occidental, manufacturing operation in Davao del Norte, tourism project in Davao Oriental, energy project in Davao del Sur, or the numerous real estate opportunities across the region, Davao Region has something for a wide array of investors,” he said. 

Three webinars are lined up in the next two months to discuss the developments and opportunities in various industries in the region while the main Davao ICON 2021 event is set for Nov. 11 and 12. — Maya M. Padillo

Emerging fiscal risks: Not a black swan, but a grey rhino

I am pleased to share with readers excerpts from a note sent September 2020 to subscribers of GlobalSource Partners upon the release of the Development Budget Coordination Committee’s Fiscal Risk Statement (DBCC FRS). Christine Tang and I, assisted by Charles Marquez, are their Philippine Advisers.

The 2020 DBCC FRS (https://www.dbm.gov.ph/wp-content/uploads/DBCC_MATTERS/FiscalRiskStatement/Fiscal-Risks-Statement-2021-for-Circulation.pdf) expounded on the impact of the COVID-19 pandemic on government’s fiscal health over the medium-term. Below are our key takeaways of fiscal risks to keep watch on over the medium-term. (Verily, the finance/economic team of the next administration have their work cut out for them!)

1. The DBCC expects the National Government debt-to-GDP ratio to swell from below 40% last year to 53% this year due to the emergency borrowings made to finance the suddenly wider budget deficit. The debt ratio will continue to climb with “moderate risk” of exceeding 60% as soon as next year. A reversal to a downward path for the debt ratio depends on GDP growth and the fiscal deficit returning to their pre-crisis averages over the medium-term.

The higher debt will need closer monitoring as it translates into much higher annual gross financing needs, exceeding 10% this year and next. Rollover risks are partly mitigated by looser monetary policies everywhere that will keep interest costs low, with the foreign currency share making up only about a third of total National Government debt, a portion of which is held by residents. The Philippines also has a robust external payments position that provides fundamental support to the currency.

2. National Government revenues, forecast to fall to 13.6% of GDP this year or 2.7ppt below the pre-crisis level, will not return to pre-crisis levels in the foreseeable future. Following the declaration of a state of emergency, government was able to secure more than P100 billion (0.5% of GDP) in unprogrammed revenues from public corporations in the form of dividends. This amount is one-off, with non-tax revenues expected to be lower by 1% of GDP by next year. The passage of CREATE lowering corporate income taxes will further erode tax revenues with compensatory inflows from the rationalization of fiscal incentives expected to be pushed back. No new taxes are likely under the current economic crisis, especially with the administration in its penultimate year.

3. With lower revenues, the fiscal space for discretionary spending is expected to shrink further. Even before the pandemic, the National Government was already grappling with how to deal with (a.) ballooning pension costs of military and uniformed personnel, estimated at P114 billion (about 0.6% of GDP) and growing by 3-4% annually, and, (b.) a Supreme Court ruling (Mandanas case) requiring increased annual transfers to local government units amounting to 0.9% of GDP starting 2022. Moving forward, interest payments on the larger national debt will take up an increasing share of the budget (from 9.5% in 2019 to 12.9% by 2022) which however is well below the 30% share recorded in the mid-2000s. On the other hand, some cutback in infrastructure spending may already be seen in programmed disbursements falling to 4.5% of GDP by 2022 from over 5% next year. Proposals to address (a.) and (b.) will gain more urgency to enable government to do more to hasten post-crisis recovery.

4. Fiscal risks from other parts of the public sector have likewise risen due in part to off-budget financing of COVID-19 expenses. Social security institutions were the first to see surpluses reverse to deficits (close to 0.5% of GDP this year) due to substantially higher medical and unemployment insurance payouts, while the aggregate surplus position of frontline local government units is expected to halve this year (from 1.3% of GDP in 2019) and further deteriorate next year to 0.5% of GDP. Government financial institutions (GFIs), in addition to providing debt moratoriums and other temporary relief measures, are also being tapped to finance the post-crisis recovery effort with the financial impact of developmental lending and guarantee activities dependent on safeguards that will be put in place during program design. Other major corporations, particularly in the transportation (aviation, ports) and energy sectors, have also seen revenues from operations drop with economic contraction.

Although most of these represent contingent liabilities that may never materialize, some parts would require major reforms to correct structural defects and avoid recurring National Government subsidies, equity infusion or advances for debt service. (At risk of requiring more government support at this time, is the health insurance agency which aside from a spike in COVID-related payables, will see revenues drop with corporate bankruptcies and higher unemployment to the detriment of universal healthcare goals.) Even before the pandemic, government had outstanding guarantees on public corporations’ debts and contractual obligations equivalent to 3.3% of GDP which it was servicing through “advances” amounting to 1.4% of GDP in 2019. Over the last 10 years, net budgetary flows to the corporate sector have been negative, ranging from 0.1% to 0.6% (2019) of GDP.

Local government units would separately need attention considering their high dependence on National Government transfers for operating income (60%) and with anticipated increases in revenues from the Mandanas ruling likely short-lived given the COVID-19 shock to the National Government’s own revenues.

5. Contingent liabilities associated with contractual obligations under public-private partnership (PPP) projects likewise need monitoring as the risks are expected to be correlated with the state of the economy, with the downturn adversely affecting projects’ revenue flows and/or proponents’ balance sheets, thus potentially impacting project viability. Based on the 41 projects for which information is available, a worst-case outcome involving termination payments will cost government the equivalent of 1.7% of 2020 GDP although an assessment of contingent liabilities based on project-specific probable risk factors yield an estimate that is only a tenth of that.

6. Aside from GFIs, government also has explicit (through deposit insurance) and implicit guarantees over the rest of the banking sector that require closer monitoring of individual and system-wide bank risks as asset quality and profitability deteriorate with weakened economic prospects. The risks are mitigated by ample capital buffers and increased provisioning for bad loans. Going into the crisis, the capital adequacy ratio of the big universal/commercial banks stood at 16% (consolidated basis) with high-quality Tier 1 capital at 14%, well above the BSP (Bangko Sentral ng Pilipinas) and BIS (Bank for International Settlements) prescribed thresholds of 10% and 8%, respectively. These banks have also increased loan loss provisions by 64% in the year to July, providing over 1.2x coverage for bad loans slightly up from below 1.1x at end-2019. While the risk of system-wide stress is low, it would nonetheless be impossible to discount problems at the individual bank level, especially those that have not developed strong credit disciplines. Separately, operational risks associated with cybercrimes have also gained prominence.

BOTTOMLINE VIEW
Thanks largely to successive reforms since mid-2000 to strengthen public finances, the National Government was well-positioned to respond to the crisis and is able moving forward to assume a greater role in driving economic recovery without sacrificing fiscal sustainability. The challenge of course is to optimize the use of scarce fiscal resources to generate immediate employment creating economic growth that can be sustained over the medium to long term. Moderately high sustained growth will help to lower the debt ratio through higher tax revenues (and lower primary deficit) and a more positive growth-interest rate differential. To this end, more urgent reform action is also needed to increase the efficiency of public spending and investments, including in addressing the imbalance between transfers to local government units and devolved functions.

At the same time, a more deliberate and comprehensive analysis of fiscal risks associated with needed new programs to hasten economic recovery and job creation, e.g., by providing liquidity to distressed firms, would help in managing and mitigating these risks over time and avoid abrupt and harmful threats on fiscal sustainability. Lastly, with the pandemic’s harsh impact especially on the poor and with elections less than a year away, fiscal sustainability also requires extra vigilance on the part of economic managers to ensure that new social programs are not just timely and targeted but temporary.

 

Romeo L. Bernardo was finance undersecretary during the Cory Aquino and Fidel Ramos administrations.

romeo.lopez.bernardo@gmail.com

Data

RAWPIXEL.COM-FREEPIK

This is the year of data.

Every year, the World Bank releases its World Development Report, which discusses the most pressing development issues in the world. This year is no exception as the whole report is dedicated to an issue that plays a central role in development but remains overlooked and unappreciated: data. Aptly titled “Data for Better Lives,” it discusses the “unprecedented growth of data” and “explores the tremendous potential of the changing data landscape to improve the lives of poor people.”

Coincidentally, 2021 marks the 25th anniversary of Action for Economic Reforms and is the year that we launched our Data-Driven Development (3D for short) Program. The 3D Program is all about data: promoting a culture conducive to data and evidence, and making them the foundation for responsive local governance and active citizen participation. At its core, the 3D Program advocates human-centered data-driven development by harnessing the power of participatory systems design thinking in the utilization of data and technology for evidence-based solutions.

This comes at an opportune time. First, the Supreme Court’s Mandanas Ruling is expected to increase internal revenue allotments for local government units (LGUs) by 30%, starting 2022. Data-driven approaches can (and should) be used to inform LGUs to direct such resources towards local development.

Second, the COVID-19 pandemic has revealed gaps in the government’s response, particularly due to weak data infrastructure. Without timely data on cases, disadvantaged groups and underlying priorities, the government was unable to provide the needed support, and had to launch an ambitious data collection effort at a time when such efforts are difficult and overdue.

Third, the implementation of the Philippine Identification System Act is being fast-tracked to properly identify and target beneficiaries for safety net programs. Moreover, the Community-Based Monitoring System Act now requires all LGUs to regularly collect disaggregated data for designing policies and monitoring impact over time.

Amidst these developments, key challenges remain. The problem stems from a culture that places little importance on data as an instrument for open and participative governance. Without an understanding of their constituents through data, National Government and LGUs will be unprepared for catastrophic events, unable to create policies that respond to the people’s needs. The confluence of these measures and events provides a strong basis to advocate human-centered data-driven development in the Philippines.

How does AER envision this to happen? Through the generous support of the United States Agency for International Development (USAID) and the European Union, AER is partnering with 14 LGUs, 11 state universities and colleges (SUCs), as well as over 20 civil society organizations (CSOs) around the Philippines to implement data-driven approaches to governance and participation.

Within the project, we have three major components, namely the Data Lab, the Policy Lab, and Partnerships.

The Data Lab focuses on the “data to evidence” arm. Here, we promote high-quality data collection, state-of-the-art data management, and rigorous data analytics to ensure that raw data are transformed into insightful evidence.

The Policy Lab focuses on the “evidence to policy” arm. Here, we engender evidence-based policymaking, and use the evidence to inform local policies and programmatic interventions.

The Partnerships arm leads the “Data and Tech Alliance for Development” (DATA4Dev) Coalition, a national multi-stakeholder coalition of LGUs, SUCs, and CSOs, with a local chapter in each of our project sites.

We are just getting started. There are more, exciting initiatives in store for the next two years (and beyond), and we look forward to inviting everyone to be part of this data-driven initiative. Echoing the World Bank’s mantra of “data for better lives,” we say that data-driven development is simply about harnessing better data to inform better policies that shape better lives.

 

Laurence Go (@golaurencego) is the Data Lead for the 3D Program and a fellow of Action for Economic Reforms. He finished his economics PhD at the Wharton School, University of Pennsylvania and is currently a postdoctoral researcher at the Universitat Autònoma de Barcelona. For more details on the 3D Program, visit the webpage: www.aer.ph. For the USAID project, visit https://collabdev.aer.ph and for the EU project, visit https://ph3d.aer.ph.

What Filipinos really think about China’s territorial grab

RAWPIXEL.COM-FREEPIK

The position of presidential candidates on China’s territorial grab in the West Philippine Sea will largely determine who resonates strongest to the voting public. For many, it is the deciding factor on who they will vote for.

The West Philippine Sea dispute and our relationship with China are among the issues that matter most to the voting public. It is among our people’s festering concerns along with the failing economy and joblessness, the manner by which COVID’s negative outcomes are being handled, and corruption in government. The difference, however, is that the West Philippine Sea issue is the only one that touches on national patrimony and sovereignty. It is the concern in which voters are emotionally invested.

What is the national sentiment on the Duterte administration’s handling of the West Philippine Sea dispute? The Social Weather Station (SWS) provided the answers in a recently concluded briefing organized by the Stratbase Institute.

A national survey was conducted from June 23 to 26 to capture the public’s sentiment on the subject. SWS gathered responses from 1,200 respondents across the country. The sample set yields a margin of error of just +/- 3% on total results and +/- 6% for area-specific results. The following were the outcomes:

Question 1: The Philippine government is not doing enough to assert its rights on the country’s territories in the disputed waters. Agree or disagree?

An overwhelming 47% of respondents agreed that the government is not doing enough, while 24% thought the contrary. This gives us a net agreement rate of 23%.

Interestingly, Metro Manila, Luzon, and Mindanao have the strongest sentiments about the issue, with net agreement rates of 25%, 24%, and 24%, respectively. The sentiment was only 17% in the Visayas.

Analysts believe that lower agreement rate in the Visayas is due to their geographic location. See, the island of Palawan blocks the Visayan island cluster from the West Philippine Sea, thus insulating Visayan fishermen from Chinese patrols and acts of aggression. In contrast, the threats are clear and present for those living in the western seaboard including the Ilocos region, Zambales, Mindoro, Palawan, Zamboanga, and Sulu.

Question 2: The Philippines should form alliances with other countries to defend the Philippine’s territorial and economic rights in the West Philippine Sea. Agree or disagree?

The sentiments were strong for this question too. A whopping 69% of respondents agreed that the Philippines should forge international alliances to protect its rights while only 10% disagreed. This yields a national net agreement rate of 59%. Metro Manila respondents felt the strongest about forging international alliances as it posted a net agreement rate of 67%. It was 59%, 57%, and 55% for Luzon, Visayas and Mindanao, respectively.

Question 3: How important is it for the Philippine government to build structures on the vacant islands of the West Philippine Sea to assert its rights. Important or not important?

Again, the sentiments were convincing as 69% said it was important while only 10% said it was not. This gives us a national net agreement rate of 59%.

Question 4: Respondents were asked to rank which measure they think the Philippine government must adopt in order to effectively secure our rights over the West Philippine Sea.

Seventy-seven percent of respondents said that the military capabilities of the Philippines needed to be to strengthened; 65% said that the Philippines must conduct joint maritime patrols and military exercises with other countries; 57% said that the Philippines must fully implement the terms of the Visiting Forces Agreement and Enhanced Defense Cooperation Agreement; 39% said that we must establish a code of conduct among ASEAN countries; and 38% said that we must bring up the issue to the United Nations.

Question 5: Is there adequate protection of fishermen’s rights, our natural resources, and Philippine territory?

To this, the national sentiment was “tepid,” as SWS describes it. In other words, the sentiment is positive but weak. Those from Luzon felt government’s efforts to protect our rights are “barely adequate.” Those from the Visayas and Mindanao thought government’s efforts are adequate. The sentiment reflects President Duterte’s strong support in the south.

Question 6: Has the Philippines benefited from President Duterte’s friendship with China?

Metro Manila and Luzon do not think the friendship has benefitted the country as both geographical blocks registered a net approval rating of –4% each. The Visayas clocked-in a net approval rating of zero while Mindanao resoundingly agreed with +22%. Again, this reflects Mindanao’s support for Mr. Duterte.

Trust towards China is poor in Metro Manila and Luzon but slightly better in Visayas and Mindanao.

This sums up the sentiment towards government in relation to China’s territorial grab. The results suggest that the public is generally dissatisfied.

* * * * * * *

The reality is that we are quickly losing large swaths of Philippine territory to China. Duterte’s policy of Appeasement and Accommodation has effectively enabled and abetted China’s territorial grab. What’s worse is that China has accelerated its invasion, taking advantage of President Duterte’s last year in office. Earlier this year, it asserted its claim over our Julian Felipe Reef, stating that it is part of Nansha Islands (Spratly Islands) which it insists are within its territory. Beijing’s newest claim is well within the Philippine’s exclusive economic zone.

Even if our President seems to be playing for China’s team, we, the citizens, are not hopeless. We can — no, we must (!) continue to resist and show our disapproval on the state of affairs. What better way to do this than to shun Chinese made products in favor of Philippine-made goods? A conscious act on our part can support and strengthen Filipino industries whist making a dent on China’s war chest, however small.

Simply look at the bottom of every product you buy — if it says “Made in China” or “PRC,” choose a Philippine-made alternative instead, even if slightly more expensive. If one is not available, choose one made in the ASEAN or a friendly country.

Think about it — if the 22 million households in the Philippines refuse to purchase P4,000 worth of Chinese products per month, and instead purchase Philippine made alternatives, we effectively channel P1.056 trillion ($21.12 billion) a year to Filipino enterprises instead of handing it over to China. As we know, the money we pay for goods purchased from China is what they use to harass our fishermen and build islands in our territories.

Until we elect a President who defends Philippine sovereignty in word, action, and policy, the best we can do is resist. 

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

Transparency in government

Huwag mong sundin ’yang CoA. P***** i** ’yang CoA-CoA na ’yan. Wala namang mangyari diyan (Do not follow CoA. The CoA is a son of a b****. Nothing will happen there),” President Rodrigo Duterte said at a late night “Talk to the People” session recorded from Davao City (philstar.com, Aug. 17).

Duterte was bristling about the end-December 2020 annual report of the Commission on Audit’s (CoA) dated July 30 this year, and released on Aug. 11, which cited the Health department’s alleged deficiencies in handling the funding for the coronavirus 2019 (COVID-19) pandemic response, including its supposed failure to obligate and disburse billions of pesos at yearend. In its 302-page iteration of documentation and procedural lapses, the CoA flagged the Department of Health (DoH) for not complying with existing laws and regulations in managing some P67.323 billion in COVID-19 response funds.

Asked the morning after why Duterte had to curse CoA for merely performing its mandate, Presidential Spokesman Harry Roque replied at a press conference: “That’s just his style. You can’t teach an old horse new tricks and people have accepted him for how he is. That’s why he is elected despite the fact that we know his style” (Ibid., philstar.com). Translation: it’s all the fault of those people who elected him.

But it was honest and true of the newspapers that quoted the rantings of the President in toto, including the asterisked cuss words. The TV news of course blipped out the offensive language, but the blips shouted it all out anyway. The audience trembled. He was really angry!

Hindi lang ito pati ’yung DILG (Department of Interior and Local Government) may nababasa ako, pati ’yung kay Secretary (Carlito) Galvez, mayroon din (It’s not just this, I also read something about the DILG, with Secretary Galvez, that was) flagged, puro (too much) flagged, flagged, flagged down. Stop that flagging, God damn it,” the Chief Executive said, addressing the state auditors who also clarified that the report on the DoH did not say it found links to corruption (Manila Bulletin, Aug. 17).

“It’s less of an accounting question. It’s more of a governance question,” Institute for Leadership, Empowerment and Democracy Executive Director Zy-Za Suzara told ANC’s Rundown. “It is more of a leadership and management question on the part of Secretary Duque and the other officials of the DoH,” she said. Suzara said the DoH didn’t seem to show any sense of urgency in releasing funds to battle the COVID-19 pandemic (ABS-CBN News, Aug. 12).

And it was not the first time that Health Secretary Duque has been accused of having no sense of urgency and of inefficiency in the fight against the COVID-19 pandemic. In April 2020, 14 senators signed Senate Resolution No. 362 against Duque, citing the health chief’s “lack of foresight and inefficiency” as ground for his removal from office (ABS-CBN News, April. 16, 2020). Senators particularly cited the DoH’s lack of transparency with the real statistics of those affected by the virus, and the delayed reactions and remedies to the alarming evident surge of cases and deaths in the pandemic which was peaking then. The DoH was chastised for its lack of an integrated plan and unexplained bias in not immediately banning travel to and from China at the start of the pandemic.

President Duterte defended Duque back then and definitively declared that he would keep him as Secretary of Health. While the inefficiencies of Duque were not dissected, his management style seemed to have been condoned and reinforced by the continuance of secrecy and restraint in releasing information to the general public on the status and handling of the then-rampaging COVID-19 pandemic. The lack of transparency was mainly what the Senators did not like. But charges against Duque were perhaps deemed untimely by even the Ombudsman, who might have thought management style and transparency were not fungible bases for judgment of a government official in a critical position at a critical time.

Yet, transparency was the indefatigable issue. In mid-June 2020, Dr. Tony Leachon announced he was no longer a Special Adviser to the National Task Force on COVID-19 (under Chief Implementer Secretary Carlito Galvez, Jr.), saying he was forced to vacate the post after two Cabinet officials were displeased when he publicly criticized the Department of Health, saying it has “lost focus” on its priorities in containing COVID-19 infections revealed gaps in the government’s response measures (CNN Philippines, June 17, 2020).

“Time and again, I was asked not to speak about my independent views, but I think it would be helpful to the country,” Leachon told CNN Philippines’ Newsroom Ngayon with a somber voice. “(Leachon) has long been calling on authorities to release real-time, granular data on infections, which he said will allow local officials to quickly respond and curb possible infections. He also lamented what he called the department’s unreliable and delayed reporting of confirmed COVID-19 cases, which is supposed to shape state policies, CNN commented (Ibid.).”

Redux today, when the CoA is told to shut up about the DoH. “Stop that flagging, God damn it. You make a report, do not flag. Do not publish it, because it will condemn the agency or the person that you are flagging,” Duterte said (ABS-CBN News, Aug. 17). Why did he add: “’Wag naman sige kayo flag nang flag, flag nang flag. Tapos wala namang na-preso, wala namang lahat (Do not flag and flag. Then no one will go to prison anyway, nothing will happen” (Ibid.).

Per Article IX-D of the 1987 Philippine Constitution, the duty of CoA is to “examine, audit and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property owned or held in trust by, or pertaining to, the government… submit(ting) annual reports to the President and the Congress on the financial condition and operation of the government… and recommend(ing) measures to improve the efficiency and effectiveness of government operations.” Nowhere does it say that the CoA should pre-clear its annual audit reports of government agencies with the President or with the agency concerned before such report is released. The Commission on Audit (Filipino: Komisyon ng Pagsusuri) is an independent constitutional commission established by the 1987 Constitution of the Philippines.

But the CoA (as all government agencies should) must be transparent to the public not only with regards to its internal governance and operations, but, more importantly, in the conveyance of their deliverables to the public. In the term of President Benigno Simeon “PNoy” Aquino III, the General Appropriations Act of FY 2012. Section 93 institutionalized the Transparency Seal provision to enhance transparency and enforce accountability of all National Government agencies. All official websites shall display a Transparency seal vouching for the truthfulness and accessibility of information about various administrative and governance compliance of the agency, including “(vi) status of implementation and program/project evaluation and/or assessment reports.” In compliance with Section 93.vi, the CoA publishes its annual audit reports and recommendations on its website, https://www.coa.gov.ph. The Transparency Seal links to a page within the agency’s website which contains an index of downloadable items for the public Right to Information.

“A pearl buried inside a tightly shut shell is practically worthless. Government information is a pearl, meant to be shared with the public in order to maximize its inherent value.

“The Transparency Seal, depicted by a pearl shining out of an open shell, is a symbol of a policy shift towards openness in access to government information. On the one hand, it hopes to inspire Filipinos in the civil service to be more open to citizen engagement; on the other, to invite the Filipino citizenry to exercise their right to participate in governance. This initiative is envisioned as a step in the right direction towards solidifying the position of the Philippines as the Pearl of the Orient — a shining example for democratic virtue in the region.”

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Taliban impose some order around airport

A MAN pulls a girl to get inside Hamid Karzai International Airport in Kabul, Afghanistan, Aug. 16. — REUTERS

KABUL — Afghanistan’s new Taliban rulers imposed some order around chaotic Kabul airport on Sunday, making sure people formed orderly queues outside the main gates and not allowing crowds to gather at the perimeter, witnesses said.

There was no violence or confusion at the airport as dawn broke on Sunday, said the witnesses. Although it was early, there were long lines forming, they said.

Australia ran four flights into Kabul on Saturday night, evacuating more than 300 people, including Australians, Afghan visa holders, New Zealanders, US and British citizens, Prime Minister Scott Morrison said.

On Saturday, the United States and Germany told their citizens in Afghanistan to avoid traveling to Kabul airport, citing security risks as thousands of desperate people gathered trying to flee.

At least 12 people have been killed in and around the single-runway airfield since last Sunday, NATO and Taliban officials said. Some were shot and others died in stampedes, witnesses have said. The Taliban’s swift takeover of Afghanistan has sparked fear of reprisals and a return to a harsh version of Islamic law the Sunni Muslim group exercised when it was in power two decades ago.

Crowds have grown at the airport in the heat and dust of the day over the past week, hindering operations as the United States and other nations attempt to evacuate thousands of their diplomats and civilians as well as numerous Afghans. Mothers, fathers and children have pushed up against concrete blast walls in the crush as they seek to get a flight out.

Switzerland postponed a charter flight from Kabul on Saturday because of the chaos at the airport.

Army Major General William Taylor, with the US military’s Joint Staff, told a Pentagon briefing that 5,800 US troops remain at the airport and that the facility “remains secure.” Mr. Taylor said some gates into the airport were temporarily closed and reopened over the past day to facilitate a safe influx of evacuees.

A Taliban official, speaking to Reuters on Saturday, said security risks could not be ruled out but that the group was “aiming to improve the situation and provide a smooth exit” for people trying to leave over the weekend.

Mr. Taylor said the United States in the past week has evacuated 17,000 people, including 2,500 Americans, from Kabul. He said in the past day 3,800 people were evacuated on US military and chartered flights.

President Joseph R. Biden will provide an update on Sunday on the evacuation of American citizens and refugees from Afghanistan, the White House said.

The president is to speak at 4 p.m. EDT (2000 GMT), after meeting with his national security team to hear intelligence, security and diplomatic updates on the evolving situation in Afghanistan, the White House said.

Taliban leaders are trying to hammer out a new government after their forces swept across the country as US-led forces pulled out after two decades, with the Western-backed government and military crumbling

Mr. Biden has come in for severe criticism over the situation in Afghanistan, including from former President Donald Trump, who called it “the greatest foreign policy humiliation” in US history, even though Trump’s administration had negotiated the withdrawal that triggered the collapse.

“Biden’s botched exit from Afghanistan is the most astonishing display of gross incompetence by a nation’s leader, perhaps at any time,” Mr. Trump told a boisterous rally in Alabama.

In Qatar, which is hosting thousands of evacuees until they can enter a third country, Afghans who fled described in interviews with Reuters despair at leaving behind loved ones while facing their own uncertain future. — Reuters

Harris arrives in Singapore, kicking off Southeast Asia visit

REUTERS/CAROLINE CHIA

US Vice President Kamala Harris arrived in Singapore on Sunday, her first trip to Southeast Asia under the Biden administration amid a cloud over the handling of American troop withdrawal from Afghanistan.

Ms. Harris is scheduled to meet with Prime Minister Lee Hsien Loong on Monday, and hold a joint news conference with him. She will also participate in a roundtable focused on supply chain resilience.

The vice president on Friday said issues stemming from a global chip shortage are “very real.” The limited supplies have continued to cause production delays for the auto and consumer electronics industries in the US and the White House has for months engaged with industries and lawmakers on ways to alleviate the crisis, without much effect so far.

Singapore has sought to increase its chip-making talent and manufacturing capability. The vice president is expected to discuss areas of cooperation including pandemic response and the digital economy during the visit, Singapore Foreign Minister Vivian Balakrishnan had said. Discussions on green economy and cybersecurity issues are also anticipated.

The White House has gone on the diplomatic offensive in Asia after years of passive US engagement. Southeast Asian leaders will be looking for Harris to reassure them of America’s role as a major trading partner that offers a reliable security presence against Beijing’s assertiveness in areas like the South China Sea.

Harris will next head to Vietnam, the first time a sitting American vice president has visited since the war ended in 1975.

The US has been criticized for the chaos in Afghanistan as it withdraws troops from the country. President Joseph R. Biden has stood by his decision, and said American intelligence assessments didn’t foresee such a rapid advance by the Taliban and collapse of the Afghan military, prompting the US to race to evacuate its citizens and Afghans who aided US troops.

Ms. Harris will receive intelligence briefings on Afghanistan during her trip and will be in regular communication with the White House, officials have said. — Bloomberg

Australian PM defends lockdown strategy

REUTERS

MELBOURNE — Prime Minister (PM) Scott Morrison defended on Sunday Australia’s lockdown strategy for tackling the coronavirus, saying it would stay until at least 70% of population is fully vaccinated, as daily infections break records.

Sunday’s 914 cases of the highly infectious Delta variant surpassed the previous high of 894 a day earlier.

“You can’t live with lockdowns forever and at some point, you need to make that gear change and that is done at 70%,” Mr. Morrison said in a television interview on the Australian Broadcasting Corp.

Lockdowns are a key element of the federal government’s strategy to rein in outbreaks until the 70% percent level is reached, with borders being re-opened gradually when the figure climbs to 80%..

But they are taxing the patience of many.

Police arrested hundreds of people on Saturday during anti-lockdown demonstrations in Sydney and Melbourne, the capitals of the two most populous states, New South Wales and Victoria, which are under a strict lockdown.

Victoria, in its sixth lockdown since the start of the pandemic, recorded 65 locally acquired cases on Sunday, taking the tally in its current outbreak to 440 active cases.

“We are throwing everything at this,” said Martin Foley, the health minister of the southeastern state.

New South Wales saw 830 new infections on Sunday, despite stepped-up efforts, and the Australian Capital Territory, home to the capital, Canberra, had 19. Nationwide, the tally of active cases stands at nearly 12,000.

Just about 30% of Australians older than 16 have been fully vaccinated, health ministry data showed on Saturday. This is mainly because the Pfizer vaccine is in short supply and the AstraZeneca vaccine provokes public unease.

The pace has picked up recently, as supplies increase and Delta spreads. A Newspoll this month for The Australian newspaper showed that 11% of respondents would flatly refuse vaccination.

In New South Wales, at least 57% of those eligible have received one dose, while 30% are fully vaccinated.

“If our community keeps getting their vaccines the way they are, New South Wales will look pretty good by October, November,” said state Health Minister Brad Hazzard.

Despite a third wave of infections from the Delta variant, Australia’s COVID-19 numbers are relatively low, with just under 44,000 cases and 981 deaths. — Reuters