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July government debt hits record P11.6T as state taps local and dollar bond markets

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THE NATIONAL Government’s outstanding debt grew further to P11.61 trillion as of the end of July following a dollar bond issue and further tapping of domestic lenders, the Bureau of the Treasury (BTr) reported Tuesday.

Preliminary data from the BTr indicate that overall debt rose 4% month on month compared with the level booked at the end of June. It was 26.7% higher than the year-earlier total.

The debt stock has risen 21.3% from the end-2020 level of P9.8 trillion.

The government endeavors to maintain a balance of 70% domestic debt and 30% foreign to minimize exposure from external shocks like currency movements.

Outstanding domestic debt rose 2.3% from a month-earlier level to P8.12 trillion at the end of July following the issuance by the BTr of more government securities. Domestic borrowing rose 29.8% year on year and 21% compared with the ending debt balance in 2020.

The portfolio of government securities rose 2.4% from a month earlier to P7.6 trillion.

The government borrows from domestic and foreign sources to plug the budget deficit, which started to widen last year due to spending requirements imposed by the pandemic.

Outstanding external obligations rose 8.2% from a month earlier to P3.5 trillion at the end of July following a dual-tranche dollar bond issue and fluctuations in the value of the peso.

“The impact of both local- and third-currency exchange fluctuations against the US Dollar added P100.66 billion and P3.39 billion, respectively,” it said.

Overall foreign debt rose 20.1% from a year earlier. It has increased 12.6% since the end of 2020.

Foreign loans obtained by the government rose 4% month on month to P1.47 trillion, while the total for global bonds rose 11.4% to P2.02 trillion.

The government issued $3 billion (P149 billion) worth of securities on July 6 — $2.25 billion in 25-year instruments and $750 million worth of 10.5-year bonds. This raised the stock of dollar-denominated securities by 14.3% to P1.53 trillion at the end of July.

Euro-denominated bonds also rose 3.2% to P241 billion largely due to currency fluctuations, while samurai bonds rose 4.5% to P138 billion, and panda bonds were up 3% to P19.43 billion. Outstanding peso global bonds remained unchanged at P85.57 billion.

Debt guaranteed by the National Government rose 1.3% from a month earlier to P444.31 billion at the end of July after it guaranteed more foreign debt.

Guaranteed domestic obligations fell to P242.65 billion from P244.1 billion at the end of June, reflecting the retirement of some debt.

Guaranteed foreign debt rose 3.7% month on month to P201.65 billion.

“The higher level of guaranteed debt was due to the impact of local- and third-currency exchange rate fluctuations against the US dollar amounting to P6.07 billion and P1.25 billion, respectively, it said.

Budget planners have set a P3-trillion borrowing cap for this year.

The government’s outstanding debt is expected to hit P11.73 trillion by year’s end from P9.795 trillion at the end of 2020.

This is expected to rise further to P13.418 trillion at the end of 2022.

Economic managers project the debt stock to be equivalent to 59.1% of economic output by the end of this year, peaking at 60.8% in 2022. — Beatrice M. Laforga

DoF launching online platform for reporting on GOCC obligations

THE DEPARTMENT of Finance (DoF) is set to launch an upgraded online platform for the reporting of debt taken on by government-owned and -controlled corporations (GOCCs).

It said in a statement Tuesday that the GOCCs’ Liabilities Reporting and Processing Tool (GLRPT) aims to help the DoF analyze the debt incurred by state-run firms and their impact on the financial exposure of the National Government.

Finance Secretary Carlos G. Dominguez III said the DoF will ask the Governance Commission for GOCCs (GCG) to include in its performance evaluations compliance in reporting their debt via the GLRPT.

DoF Corporate Affairs Group Director Joanna P. Castillo said the group will train participants in the use of the platform, while the GCG committed to transfer its web-based debt reporting system for integration with the GLRPT.

“The Central Management Information Office (CMIO) of the DoF further developed the system by expanding the GOCC coverage, enhancing the data field and creating a report template,” she said.

Mr. Dominguez, an ex-officio member of the GCG, said the commission should also consider including the findings of other regulators in assessing and rating GOCCs.

The GCG said last month that it will improve its online monitoring system and review its process for assessing GOCCs after the DoF in mid-June criticized it for weak oversight.

Mr. Dominguez had noted that some assessments made by the commission “contrast sharply” with the conclusions reached by other regulators, while several GOCCs were given high ratings even if they did not comply with accounting and reporting standards.

He said the results of the Insurance Commission’s review on state-run firms was not in line with the assessment of the GCG.

He said wide variances in evaluation could cause confusion among GOCCs and lead to errors in policymaking.

GOCCs have remitted P51.7 billion in dividends to the national treasury as of Aug. 13. — Beatrice M. Laforga

Peso climbs versus dollar

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THE PESO strengthened versus the greenback on Tuesday on the back of an expected slowdown in economic activity following the extension of strict restriction measures in Metro Manila and the dovish tone of the US Federal Reserve during last week’s Jackson Hole symposium.

The local unit closed at P49.76 per dollar, gaining 19.5 centavos from its P49.955 finish on Friday, based on data from the Bankers Association of the Philippines.

The market was closed on Monday in observance of National Heroes’ Day.

The peso opened Tuesday’s session at P49.83 per dollar. Its weakest showing was at P49.87, while its intraday best was at P49.65 versus the greenback.

Dollars traded dropped to $848.73 million on Tuesday from the $922.6 million seen on Friday.

The peso appreciated as Metro Manila remained under the modified enhanced community quarantine (MECQ), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“This could still slow down economic activities, including imports,” Mr. Ricafort said in a text message.

The Palace last week said Metro Manila, Bataan, and Laguna will remain under MECQ until Sept. 7 to prevent the spread of the virus amid a new wave of cases.

Infections rose by 13,827 on Tuesday, bringing the total active cases to 145,562, based on data from the Department of Health. The country registered its highest daily tally of 22,366 on Monday.

Meanwhile, a trader attributed the peso’s strength to risk-off sentiment after Fed Chairman Jerome H. Powell failed to give a specific timeline for the central bank’s plan to taper their asset purchases at the Fed’s Jackson Hole symposium on Friday.

Mr. Powell said there has been clear progress toward maximum employment and that he was of the view that if the US economy evolved broadly as anticipated, “it could be appropriate to start reducing the pace of asset purchases this year,” Reuters reported.

For Wednesday, Mr. Ricafort expects the local unit to move from P49.65 to P49.85 per dollar, while the trader gave a forecast range of P49.60 to P49.85. — LWTN with Reuters

Shares rise after last-minute bargain hunting

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PHILIPPINE shares closed higher on Tuesday on last-minute bargain hunting after trading in negative territory for most of the session as the country logged record coronavirus disease 2019 (COVID-19) infections on Monday.

The Philippine Stock Exchange index (PSEi) gained 68.82 points or 1.01% on Tuesday to close at 6,855.44, while the all shares index climbed 21.47 points or 0.51% to 4,225.58.

“Philippine shares climbed on the combination of window dressing and the latest MSCI rebalancing to bargain hunt at closing. In addition, sentiment got a boost as overseas equities edged higher on Monday led by tech stocks,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Last-minute buying sent the local market higher,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a separate Viber message. “For most of the day, however, the market was in the negative territory, plunging as low as 6,651.01. This came as investors priced in the wider economic losses brought by the extension of the strict quarantine measures in the National Capital Region and in other areas of the country. COVID-19 worries also weighed on sentiment amid the continuous surge in our daily new cases…”

Metro Manila and other areas will remain under modified enhanced community quarantine until Sept. 7, the Palace announced last week.

The Health department reported a record 22,366 infections on Monday, bringing the country’s tally to 1,976,202. Active cases stood at 148,594.

The World Health Organization on Tuesday said the more transmissible Delta variant of COVID-19 is now the dominant variant in the Philippines.

Most sectoral indices posted gains on Tuesday except for financials, which shed 9.61 points or 0.66% to finish at 1,427.71.

Meanwhile, industrials rose 202.17 points or 2.05% to 10,049.93; holding firms climbed 114.92 points or 1.70% to 6,875.80; mining and oil went up by 99.54 points or 1.09% to close at 9,224.98; services gained 16.15 points or 0.91% to end at 1,773.61; and property inched up by 1.06 points or 0.03% to 3,094.98.

Value turnover surged to P14.85 billion on Tuesday with P2.92 billion issues switching hands from the P6.86 billion with 1.62 billion issues traded on Friday.

Decliners overwhelmed advancers, 120 against 65, while 55 names closed unchanged. Net foreign buying dropped to P306.96 million on Tuesday from P631.26 million on Friday.

“The attention of local players [will be] directed to the release of Markit PH PMI (Purchasing Managers’ Index) manufacturing [on Wednesday],” Regina Capital’s Mr. Limlingan said.

The country’s PMI stood at 50.4 in July, slipping from the 50.8 reading in June but still above the 50 neutral mark that separates contraction from expansion. — K.C.G. Valmonte

AmCham confident Creative Industries bill will get approved

TOPDRAWANIMATION.COM

THE AMERICAN Chamber of Commerce of the Philippines (AmCham) said it is encouraged by the progress made in Congress to pass a bill on the development of the creative industry, which it said would raise the industry’s competitiveness in Southeast Asia.

“With inclusion of the bill in the House’s list of priorities, we are optimistic that the bill will be reported out to plenary and approved soon,” AmCham Philippines Executive Director Ebb Hinchliffe said.

The chamber said a Creative Industries Act would support the growth of the sector and its contribution to the Philippine economy.

“Passage of the legislation creating strong institutional bodies, plans, and incentives at the national and local level is crucial to achieving the Philippine goal of becoming the top creative economy in the ASEAN region in terms of size and value by 2030.”

Speaker Lord Allan Jay Q. Velasco at the opening of the third regular session pushed for institutions to prop up the creative economy. The bill has been approved by the House Special Committee on the Creative Industry and Performing Arts and the appropriations committee, while Senate deliberations have started. 

“Business groups anticipate filing of the committee report on the measure, with the Trade Committee Chairman’s (Senator Aquilino Martin L. Pimentel III) commitment to shepherd the bill to passage,” AmCham said.

The chamber recently formed its first creative industries committee, which will discuss the bill and the industry’s largest subsectors, including advertising, animation, design, film, and software.

AmCham and several industry groups released a creative industry policy brief in November 2018, which recommended the passage of the bill. — Jenina P. Ibañez

DoF to support shift to low-carbon energy production

THE DEPARTMENT of Finance (DoF) said it will seek financing sources and develop programs that will attract investment for the shift away from carbon-intensive energy.

“The DoF is fully intent on mobilizing financing for climate change mitigation. We are establishing a sustainable financing ecosystem to synergize investments from both the public and private sectors, and we look forward to building, very soon, green social projects that will have a lasting and permanent impact on the environment,” Finance Assistant Secretary Paola Sherina A. Alvarez said in a forum Tuesday.

She said the DoF is exploring all possible instruments with the potential to shift investment in favor of renewables during the transition away from coal.

“What we don’t want to have is a scenario where you set a moratorium on coal but don’t provide foundational policies that will help the environment be more conducive to investment,” she said.

Ms. Alvarez said the government is working with the Asian Development Bank on a Coal Replacement Fund that will support the acquisition of coal-fired power plants in Mindanao and eventually elsewhere in the Philippines to provide momentum to the shift to renewables.

The initial goal is to set up a fund to acquire all power plants in the region and eventually shut them down while the generating capacity of the Agus-Pulangi hydropower plant is upgraded.

“The shift to renewable clean energy sources and green technologies and the adoption of modern, and low-carbon approaches to help mitigate this climate crisis, will make our economy more resilient, and our growth more sustainable,” she said.

Aside from financing, Ms. Alvarez said the government will also collaborate more with international partners and the private sector to achieve the country’s climate change mitigate goals.

She said $121 billion worth of total investment is needed between 2020 and 2040.

“Investments, technology and capacity building are needed to scale up, and speed up energy transition,” she added.

The Energy department has imposed a moratorium on new coal-fired power plant projects and allowed foreign investors to fully own geothermal plants.

The Philippines aims to reduce its greenhouse gas emission by 75% by 2030 according to its Nationally Determined Contribution under the Paris Agreement on Climate Change.

The Philippines is one of the world’s most disaster-prone countries, hit by typhoons, earthquakes and volcanic eruptions, which cause P177 billion worth of losses in public and private assets annually. — Beatrice M. Laforga

BFAR reports successful trials at tilapia intensive hatchery in Laguna   

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THE first trials at the tilapia intensive hatchery in Los Baños, Laguna have been successful, according to the Bureau of Fisheries and Aquatic Resources (BFAR).

BFAR said in a statement that its regional office in Calabarzon achieved a 95% hatching rate at the facility.

It added that the hatchery, the second of its kind in the region, can produce 300,000 fry in three to five days and has six fry trough and hatching jars.

After the trial run, the BFAR said it hopes to complete four hatchings per month.

“With 95% hatching rate and 80% survival of fry, the hatchery can produce around 960,000 fry in a month. In order to achieve this, more breeders will be required,” the BFAR said.

BFAR National Director Eduardo B. Gongona said the hatchery project seeks to put forward a model hatchery that can increase production at minimum costs.

“As part of BFAR’s Tilapia Commodity Program, the tilapia intensive hatchery project is expected to secure sustainable supply of fry/fingerlings, eventually helping our tilapia farmers,” Mr. Gongona said.

According to the BFAR, hatchlings are uniform in size and promise quicker returns for farmers.

“Tilapia intensive hatchery is a type of artificial breeding of tilapia in which eggs are collected from the mouths of the female breeders, incubated in the artificial incubation system facility where they are placed in jars until hatched and become swim-up fry for further rearing,” the BFAR said.

“This technology differs from other types of hatchery wherein the breeders spawn naturally in the breeding units and eggs are incubated and hatched in the mouths of female breeders, then released from the mouths as swim-up fry,” it added.

In 2016, the BFAR adopted the intensive hatchery farming system of a US company, Aqua Farming Technology, Inc. Facilities using the system have since been set up in 13 regions.

The BFAR said fry and fingerling production was 208.35 million in 2020, according to reports from regional offices and national centers.

“The emergence of more tilapia intensive hatcheries around the country means more sources of fry and fingerlings in the coming years, eventually achieving the goal to supply annual demand of 2.1 billion tilapia fingerlings,” BFAR said. — Revin Mikhael D. Ochave 

WHO confirms Delta local transmissions in PHL

PHILIPPINE STAR/ MICHAEL VARCAS

THE WORLD Health Organization (WHO) on Tuesday said the Delta variant of the coronavirus is now the dominant strain in the Philippines, as the country has been posting more than 10,000 infections daily with a record high of over 22,000 on Monday.

“With these numbers, we are in community transmission of the Delta variant,” WHO Representative to the Philippines Dr. Rabindra Abeyasinghe told a virtual news briefing.

“This situation is not entirely surprising,” he said. “What we are seeing in the Philippines is not unique. It is being seen in other countries.”

The Health department in a statement said 69% of 748 samples sequenced as of Aug. 27 were carriers of the highly contagious Delta variant.

“Delta variant cases showed steady increase and constituted a greater percentage in the recent sequencing runs compared to the Beta and Alpha variants,” it said.

The Department of Health (DoH) reported 13,827 coronavirus infections on Tuesday, bringing the total to 1.99 million. On Monday, the country posted its highest daily number of cases at 22,366.

Eight laboratories out of the 279 accredited facilities did not submit data on Aug. 29.

Health Undersecretary Maria Rosario S. Vergeire, in a separate news briefing, said coronavirus disease 2019 (COVID-19) cases in the country could peak in mid-September due to the Delta variant.

DELTA
The Delta variant was present in all 17 regions in the country, except for the Bangsamoro region, Ms. Vergeire said.

The Bangsamoro minister of health, however, earlier said the absence of a recorded Delta variant in the region may just be due to limited testing.

Most of the Delta cases were detected in the regions of Calabarzon, Central Luzon, and the National Capital Region, she added.

Ms. Vergeire said the percentage of samples that tested positive for the Delta variant rose to 56% in August from 6% in June.

“This coincides with the start of a steeper rise in the number of cases in July.”

Ms. Vergeire said the country had a daily average of 17,013 coronavirus cases from Aug. 24 to 30, 14% higher than 14,886 from Aug. 17 to 23. It is also 32% higher than the 12,818 from Aug. 10 to 16.

Ms. Vergeire said the national positivity rate increased to 26.3% from the 18.6% recorded in the first week of the month.

The Health official said the capital region Metro Manila, Calabarzon, Cagayan Valley, Cordillera, Central Luzon, Northern Mindanao, Ilocos Region, Central Visayas, Davao Region, Western Visayas, Soccsksargen, and Caraga were at high-risk classification COVID-19.

The country is still at a high-risk classification, she said, noting that the majority of regions in the country have moderate to high-risk healthcare use rate.

Active cases in Metro Manila decreased, Ms. Vergeire said. More than 51% of active cases in the country came from other provinces, she added.

Nationwide, the death toll rose on Tuesday to 33,448 after 118 more patients died, while recoveries increased by 16,759 to 1.81 million, the Health department said in a bulletin.

There were 145,562 active cases, 95.9% of which were mild, 1.4% were asymptomatic, 1.1% were severe, 0.99% were moderate and 0.6% were critical.

The agency said 172 duplicates were removed from the tally, 153 of which were recoveries. It added that 37 recoveries were reclassified as deaths.

Meanwhile, Mr. Abeyasinghe said there is not yet enough evidence to prove that the Delta variant can be transmitted through air.

“The evidence we have is that the Delta variant, although more transmissible, is still largely transmitted in aerosols,” he said. “It’s not an airborne transmission.”

TRAVEL BAN
In another development, Mr. Duterte approved late Tuesday the recommendation of an inter-agency task force to extend the travel ban on India, Pakistan, Bangladesh, Sri Lanka, Nepal, United Arab Emirates, Oman, Thailand, Malaysia and Indonesia until Sept. 5.

“These travel restrictions form part of the pro-active measures to slow down the rising number of COVID-19 cases, stop further spread of variants, and increase the country’s existing healthcare capacity,” Palace Spokesman Herminio L. Roque, Jr. said in a statement.— Kyle Aristophere T. Atienza

President defends medical supply deals under senate probe 

By Kyle Aristophere T. Atienza, Reporter 
and Alyssa Nicole O. Tan 

Philippine President Rodrigo R. Duterte has defended his former economic adviser Michael Yang, who had been linked to the illegal drug trade, after the Chinese businessman was implicated in another controversy involving the Budget department’s procurement of overpriced medical supplies.   

Mr. Yang is back in the headlines after Senator Richard J. Gordon played a Radio Television Malacañang video in a Senate hearing last week showing him introducing officials of Taiwan-based Pharmally International to Mr. Duterte in March 2017.  

Pharmally’s local subsidiary, Pharmally Pharmaceutical Corp., bagged about P8.68 billion worth of pandemic-related medical supply contracts last year.  

“Michael Yang has been in business for 20 years, he started in Davao,” Mr. Duterte said in taped Cabinet meeting. “Hindi iyan ang Instik na kinukunan ko ng pera (That is not the Chinese from whom I get money).”  

The President said the Davao-based businessman had been present in his official meetings with former Chinese Ambassador Zhao Jianhua.  

Bakit ako magduda? Bakit ako magsabi na drug lord siya? (Why would I have doubts? Why would I say he’s a drug lord)?” the President asked, adding that the Chinese diplomat stayed at Mr. Yang’s residence when he came to Davao.   

In March 2019, former police official Eduardo P. Acierto accused the President and his former police chief, now Senator Ronald M. Dela Rosa, of blocking a potential investigation into Mr. Yang’s alleged involvement in the country’s illegal drug trade. In the same month, the Presidential Palace announced that Mr. Yang was no longer economic adviser of the President since his contract expired in Dec. 2018.   

Kaibigan ako ng China, sasabihin sa akin ang totoo (I am a friend of China, they would tell me the truth),” Mr. Duterte said, noting that the Chinese government would not allow Mr. Yang to enter the Philippines if he was involved in the illegal drug trade.  

In a public speech last year, the President said Mr. Yang was first introduced to him in 1999 by a Maranao tribe leader named Randy Usman.  

Senators have questioned why Pharmally, which was registered with the Securities and Exchange of Commission in 2019 with a paid-up capital of only P625,000, was awarded government contracts worth billions when it had yet to establish the required track record.   

Senator María Imelda Josefa “Imee” R. Marcos earlier said leaders of Pharmally “have active criminal cases in Taiwan” for alleged manipulation of stocks.  

In the same Cabinet meeting, the President also defended Chinese suppliers getting pandemic contracts, saying he was in touch with Chinese business people to secure investments for the country.  

“I thought we are inviting investors? That is why I went to China several times, for them to come and help us,” he said.  

The President also admitted that he had instructed the Health department to skip public bidding for the procurement of personal protective equipment (PPE) during the onset of the pandemic last year. 

“I was the one who instructed (Health Secretary Francisco T.) Duque. I want it done immediately,” he said in mixed English and Filipino.   

PERSONAL ATTACKS
Meanwhile, the tough-talking leader waged personal attacks against Senator Richard J. Gordon, Sr. and other senators for grilling former Budget undersecretary Christopher Lloyd Lao, who signed the Pharmally deals, in previous senate hearings.  

The President also accused Mr. Gordon of ‘Sinophobia’ for focusing on Mr. Yang’s links to Pharmally.  

State auditors, in their 2020 audit reports released recently, flagged several government agencies for irregularities and deficiencies in their handling of pandemic funds. The Department of Health had one of the highest funds in question.   

Mr. Gordon, reacting to Mr. Duterte’s tirades, said the President should question those involved in the controversial deals and not the Commission on Audit nor the Senate panel.   

“I don’t understand our President, he said he was against corruption,” Mr. Gordon said. “You cannot hide that there is a problem. How can you ignore that? Why are you covering your eyes and blaming others?” 

The senator also took a jab at the President saying he “forgives” him for the insults because personal attacks are only done by the weak.  

Mr. Gordon, who chairs the Blue Ribbon Committee which is conducting the probe, said Senator Christopher Lawrence T. Go may be the “common denominator” among “dubious characters” involved in the medical supply deals.   

Mr. Gordon said he did not want to investigate a colleague, but if evidence points to Mr. Go, then he will do so. “There may be some explanations to be made by Senator Bong Go.”  

In a privilege speech on Tuesday, Mr. Go, a long-time aide of the President, denied any involvement in the deals nor working closely with the personalities being questioned.  

He reiterated a previous statement that Mr. Lao “did not directly report to me nor did he ever serve as my aide.”  

Senator Panfilo M. Lacson, who was also attacked by the President, said the country’s leader seems to be in “panic mode.”  

“The video showing Michael Yang, a Chinese national who had a signed contract as a presidential consultant, receiving a one-peso-a-year remuneration from the government and very casually introducing high officials of the controversial Pharmally Corp. is telling to say the least,” said Mr. Lacson in a statement on Tuesday.  

Senate President Vicente C. Sotto III, in a separate statement, said negligent government officials and employees must be made accountable to stop “sloppy jobs” that waste public funds.  

“We can’t just sit back and watch the meltdown in government services. We need to hold liable those who have been failing in their jobs,” Mr. Sotto said.   

PPE PURCHASE IN 2022
Meanwhile, Senate President Pro Tempore Ralph G. Recto on Tuesday said the Health department should publish the specifications and volume of PPEs to be purchased in 2022 to draw in Filipino suppliers.  

“Make public the details. As they say, sunlight is the best disinfectant,” said Mr. Recto in a statement. “There is a capable and competent local PPE manufacturing sector whose products, if patronized by their own government, will save jobs and save lives.”  

The DoH is planning to buy 758,700 sets of PPE at an average cost of P1,079 each, said Mr. Recto, citing the 2022 proposed national budget submitted to Congress. 

“The Philippine-made medical-grade masks are being exported. What is loved by other countries should not be officially snubbed here,” he said.   

Mr. Recto also urged the DoH to “shun the trend” of designating the Department of Budget and Management’s Procurement Service or the Philippine International Trading Corp. to do the procurement for them, especially since health authorities know best the quality needed to keep medical workers safe.  

The senator also note that the 2021 General Appropriations Act and the 2022 New Expenditures Program have a section allowing early procurement activities for anticipated projects, which will help lessen delays.  

  

MWSS proposes revisions on water service connections, billing guidelines  

PHILSTAR

THE REGULATORY office of the Metropolitan Waterworks and Sewerage System (MWSS) has proposed several revisions on water service connections and billing scheme guidelines.   

Francis Eduardo P. Ayapana, Jr., supervising public utilities regulation officer, said in a virtual briefing on Tuesday that the MWSS seeks to revise provisions in the Customer-Oriented 2013 Implementing Rules and Regulations, which apply to Maynilad Water Services, Inc. and Manila Water Co., Inc.    

Mr. Ayapana said the proposed revisions involve the disconnection and reconnection of water service, and the rate classification and billing scheme for small-scale or home-based businesses and high-rise and other multiple dwellings.    

One of the proposed changes is to disallow the disconnection of a customer after presenting proof of payment that all delinquent accounts have been settled.  

According to Mr. Ayapana, the current provision only provides that disconnection will not proceed if the customer has proof of payment for all delinquent accounts, and does not have the clause “subject for disconnection.”    

“Delinquent accounts shall mean those accounts which have remained unpaid for a period of 60 days after due date, or after the lapse of the date agreed upon by the parties and/or the non-fulfilment of the conditions in the agreed settlement,” he said.    

“Under the proposed revision, customers only need to settle the bill that has already exceeded the 60 day-period despite having multiple unpaid bills. However, we still urge customers to pay all remaining bills before the 60-day period,” he added.     

Another proposed revision is to ban disconnection on the days of Christmas Eve, Christmas Day, New Year’s Eve, New Year’s Day, Holy Wednesday, Maundy Thursday, and Good Friday. Also, no disconnection will be conducted after 6 p.m.; and payment and reconnection are allowed even during weekends and holidays.    

The current provision mandates that “actual disconnection shall not be implemented on Fridays, Saturdays, Sundays, local and/or national holidays, or the day immediately preceding local and/or national holidays to give the customer sufficient time to settle the account during regular working days.”   

Further, Mr. Ayapana said MWSS seeks to revise the time it takes to restore service connection during an erroneous disconnection, or the disconnection of non-delinquent accounts.    

Under the proposed revision, the concerned water provider shall restore service connection within 12 hours upon time of discovery, adding that the time shall start upon the receipt of complaint.    

The current provision directs concerned water concessionaires to restore the service connection within 24 hours from time of discovery.    

Another proposed revision is the grant of a discount equivalent to the customer’s daily average consumption for the past three months for every hour of delay if the service connection is not restored within 12 hours.    

“Under the revised provision, the customer shall not be entitled to a discount if the concessionaire can show proof of reconnection in case no responsible person is available to acknowledge the reconnection of the service connection,” Mr. Ayapana said.    

Further, Mr. Ayapana said a proposed revision is the inclusion of sewer charge in terms of the prevailing commercial tariff rate under the rate classification and billing scheme for small-scale businesses.    

The planned change would read: “The succeeding cubic meters of water consumption in excess of the first 30 cubic meters shall be imputed with the prevailing commercial tariff rate inclusive of sewer charge; but customers reclassified under semi-business shall not be charged with sewer charge.”    

Other proposed revisions of the MWSS include the addition of barbershops, beauty shops, and eateries among customers under the rate classification of small-scale and home-based businesses, and specifying the definition of condominiums under the billing scheme and rate classification for high-rise and other multiple dwellings as provided by Republic Act No. 4726 or The Condominium Act. — Revin Mikhael D. Ochave  

DFA seeks additional fund to address passport backlog  

DFA.GOV.PH

THE DEPARTMENT of Foreign Affairs (DFA) has asked Congress to consider an additional P53.37-million fund to address the backlog on up to four million passport applications.    

The department proposed a P21.051-billion budget for 2022 during the hearing at the House of Representatives Tuesday, 5.43% lower than the P22.26-billion allocation this year.   

DFA Assistant Secretary Myla Grace R. Macahilig asked the House to consider including some items in the proposed 2022 budget that was removed by the executive department as the agency originally proposed a P39.08-billion allocation for next year.   

Funding for the establishment of temporary off-site passport service sites were among the funds that DFA asked Congress to consider inserting to the proposed 2022 budget.  

This comes after Marino Party-list Rep. Macnell M. Lusotan asked DFA officials on plans regarding backlogs on the issuance and renewals of passports after DFA Secretary Teodoro L. Locsin, Jr. revealed that there was a backlog of three to four million passport applications.  

“That’s in part because there is a flood of applicants, but it’s also due to venue capacity limitations brought about by lockdowns. We opened new consular offices, but there are no funds to continue their operations. We have to open more temporary offsite sites. While the rent is free, setting up costs money,” Mr. Locsin said.  

DFA Undersecretary Brigido D. Dulay said that Mr. Locsin ordered the agency to put up an additional 10 to 20 temporary off-site passport processing sites to address the backlog.   

VFA 
Lawmakers from the Makabayan bloc, meanwhile, asked what the changes are in the terms and conditions of the revised Visiting Forces Agreement (VFA) with the United States after President Rodrigo R. Duterte recalled the abrogation of the military deal last July.  

Mr. Locsin said it was mainly “clarifications of procedures” in the agreement’s implementation such as the handling of criminal jurisdictions in cases involving American military personnel, and transmittal of notification and communications through diplomatic channels, among others.  

Gabriela Women’s Party-list Rep. Arlene D. Brosas said that the updated provisions would need to undergo ratification by Congress.   

She also said in a separate statement on Tuesday that the modifications should be scrutinized to ensure that it does not prompt more cases of violence perpetuated by US soldiers. — Russell Louis C. Ku  

House bill exempting medical oxygen from taxes approved on 3rd reading 

PHILSTAR/THE FREEMAN

A PROPOSED law that will provide tax exemption for emergency medical supplies, including oxygen, was approved by House legislators on third and final reading Tuesday.  

House Bill 8895 or the Public Health Emergency Tax Exemption Act seeks to exempt from any government tax the manufacture, sale, importation, and donation of critical medical products during public health emergencies by private firms.   

It also exempts from taxes the procurement, sale, importation, distribution, and administration of critical medical products during public health emergencies by government units.    

The bill also requires the secretaries of Finance and Health to compile a list of supplies needed for the prevention, control, and treatment of COVID-19 (coronavirus disease 2019), which will enjoy exemptions from taxes related to their sale, manufacture, or import.   

It also permits the Finance chief, upon the recommendation of the secretaries of Health and Trade and Industry, to suspend the threshold on required export sales, to allow manufacturers to sell to the domestic market.   

The measure passed the House Committee on Ways and Means on March 4. Substitute provisions were also added by the committee on Aug. 23 after the President requested Congress on Aug. 9 to exempt manufacturers of medical-grade oxygen from government taxes.   

The revised bill was then passed by the House Aug. 25 on second reading.    

Gabriela Women’s Party-list Rep. Arlene D. Brosas said in her vote explanation speech that the measure may have a negative impact on the competitiveness of local manufacturers of medical goods who are experiencing losses due to the COVID-19 pandemic.   

“In the end, what we need to focus on is ensuring that we have our own national industries, specifically on the manufacture of goods and commodities. By doing so, we can face the pandemic head on without having to beg for importation,” she said. — Russell Louis C. Ku