Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 6213

Peso may drop vs dollar on virus fears, budget data

THE PESO may continue to depreciate versus the greenback this week on rising concerns due to the local transmission of the Delta variant of the coronavirus disease 2019 (COVID-19) and ahead of the release of latest budget balance data.

The local unit closed at P50.235 per dollar on Friday, slipping by 1.5 centavos from its P50.22 finish on Thursday, based on data from the Bankers Association of the Philippines.

It also retreated by 15.5 centavos from its close of P50.08 per dollar on July 9.

The peso weakened due to risk-off sentiment after the Health department reported the local transmission of the more infectious Delta variant of COVID-19, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said.

Health Undersecretary Maria Rosario S. Vergeire on Friday said there were 16 new patients that were sick with the Delta variant. Among them, 11 were locally transmitted cases, with six detected in Mindanao.

Authorities have imposed stricter restriction measures in Cagayan de Oro and Misamis Oriental to prevent further spread of the highly infectious variant.

Another factor that caused the peso to weaken last week was Fitch Ratings’ revision of its outlook for the Philippines to “negative” from “stable,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

Fitch last week revised its outlook for the Philippines but kept its investment grade “BBB” rating for the country. A “negative” outlook means the country could get a rating downgrade within the next 12 to 18 months.

For this week, the exchange rate could be affected by the upcoming budget deficit data, RCBC’s Mr. Ricafort said.

The Bureau of the Treasury will release its June cash operations report on Friday, July 23.

In May, the government’s budget deficit narrowed to P200.3 billion from the P202.1-billion shortfall a year earlier. However, it widened by nearly five times from the P44-billion fiscal gap in April.

For the first five months, the fiscal deficit increased by 0.7% to P566.2 billion.

Meanwhile, UnionBank’s Mr. Asuncion said rising concerns over the spread of the Delta variant in the country may continue to affect the peso.

For this week, Mr. Ricafort gave a forecast range of P49.90 to P50.40, while Mr. Asuncion expects the peso to move within a tighter band of P50 to P50.40 per dollar. — L.W.T. Noble

Ports authority seeking bidders for 2 port expansion projects

THE PHILIPPINE Ports Authority (PPA) is seeking bidders for the expansion of Abra de Ilog Port in Occidental Mindoro and San Andres Port in Quezon.

The Abra de Ilog Port Expansion Project has an approved budget of P523.06 million, according to PPA’s invitation to bid.

The PPA wants the project completed within 660 days from the receipt by the successful bidder of the notice to proceed.

The agency said the auction format will be open competitive bidding using non-discretionary “pass/fail” criteria.

The PPA’s bids and awards committee will conduct a pre-bid conference on July 21.

It said the committee secretariat must receive the bids on or before Aug. 3 at 1 p.m.

Meanwhile, the San Andres Port Expansion Project has an approved budget of P183.25 million. It is targeted for completion within 450 calendar days from the receipt by the successful bidder of the notice to proceed.

The format will also be open competitive bidding using a non-discretionary “pass/fail” criteria.

A pre-bid conference will be conducted on July 21.

The PPA’s bids and awards secretariat must receive the bids on or before Aug. 3 at 9 a.m.

The PPA completed 27 port projects last year, accelerating infrastructure projects during the pandemic.

The PPA expects passenger volume of around 25 million-27 million between 2021 and 2023, way below the pre-pandemic traffic levels of nearly 84 million passengers annually. — Arjay L. Balinbin

RE generators say industry competitive, market abuse unlikely

ACENERGY.COM.PH

RENEWABLE ENERGY (RE) developers said there is sufficient competition in the industry to make market abuse unlikely, noting that any pricing issues that have emerged are due largely to capacity constraints.

The Developers of Renewable Energy for AdvanceMent, Inc. (DREAM) industry association made the remarks at a forum organized by the competition regulator.

“We have enough players in the industry to avoid market abuse,” DREAM President Jose M. Layug said Saturday at a Philippine Competition Commission (PCC) event.

“Particularly during times where there’s a lot of supply, market concentration is limited. In other words, there is inability on the part of the generators to control the market.”

Although there are market leaders, the entry of small players has widened ownership in power generation, he said. The Herfindahl–Hirschman Index, which measures market concentration, indicates that the industry has a sufficient number of entrants to avoid such abuse, he added.

The PCC is conducting an investigation into the industry following recent power outages on the Luzon Grid and whether they were the result of collusion. The PCC is working with the Energy Regulatory Commission (ERC), which ordered generation companies to explain the interruptions. 

Energy Secretary Alfonso G. Cusi said his department is also looking into claims of sabotage.

The grid was placed on red alert after a series of unscheduled power plant outages, causing a spike in market prices.

Mr. Layug, who is a former Energy undersecretary, said that the country needs to build more transmission and distribution lines, along with more power plants, noting the increase in prices when supply is down.

“That’s why we’ve been pushing government to make power plant construction and development more efficient,” he said.

PCC Chairman Arsenio M. Balisacan said more work needs to be done in defining the roles of the PCC and ERC in regulating competition in the energy sector.

“I think that there… are places that are available for better coordination between the two regulators. In fact, we have signed a tripartite memorandum of agreement (MoA) — DoE, ERC, and PCC — toward improved coordination and exchange of information,” he said.

“So far with respect to the brownout case that was brought up to the commission by the Office of the President, we’re using that MoA… to get that sharing of information.” — Jenina P. Ibañez

Co-ops: Supply issues caused higher power prices

THE PHILIPPINE Rural Electric Cooperatives Association, Inc. (Philreca) said that electricity rates rose in June due to supply issues and not the failure of electric cooperatives (ECs) to procure power through competitive bidding.

“The sudden spike in electricity prices last month is not because there is a failure for ECs to conduct CSPs (competitive selection processes). This is more of a supply concern… We only conduct CSPs and enter to power supply agreements depending on our long-term projected needs — and not more than that,” Philreca told BusinessWorld in an e-mail last week.

“We cannot just purchase or enter into contracts that will result to more than what we need so as to avoid purchasing from the market because this would result in higher prices for electricity,” it added.

Advocacy group Laban Konsyumer, Inc. (LKI) called on ECs to enter into power supply agreements with generation companies (gencos) through CSPs following the recent surge in wholesale electricity spot market (WESM) prices.

In a July 11 statement, LKI President Victorio Mario A. Dimagiba said that high spot market prices “greatly affected” ECs that bought more from the WESM, which in turn burdened consumers in the form of higher electricity rates.

“Batelec II, the largest EC in the Philippines, implemented an increase of P1.87 per kilowatt-hour (kWh). Penelco, the EC of Bataan, implemented an increase of P1.54/kWh. In PELCO II (located in) Pampanga, the rate hike was P2.50/kWh. What’s surprising is the extent of the WESM exposure of all these electric cooperatives,” he said.

“Considering the examples of ECs in Bataan, Batangas, and Pampanga that bought more than 30% of their power from the WESM, this meant that uncontracted capacities are available. ECs should conduct tender offer(s) and invite gencos to enter into power supply agreements via the CSP,” Mr. Dimagiba added.

The Independent Electricity Market Operator of the Philippines estimated the average spot market price at P6.53 per kilowatt hour in June, down from P7.66 in May.

Philreca, whose members number 121 ECs, said entering into contracts through CSPs is a long-term commitment of up to 20 years.

“What happened in the last months is not really because we lacked the initiative to conduct CSPs — this is really because there was a lack of supply, and we were forced to buy from the market temporarily,” the organization said.

Philreca said procuring power via CSPs can result in stable electricity prices as long as the contracted generation companies provide the committed amounts, and that they do not undergo unplanned outages or maintenance work.

Between May 31 and June 2, the Luzon grid was placed under a series of yellow and red alerts following forced plant outages, thinning reserves, and as demand rose due to high temperatures.

The system operator declares a yellow alert if reserves fall below ideal levels. The yellow alert shifts to a red alert if the supply-demand balance worsens, triggering rotating brownouts. — Angelica Y. Yang

SC affirms CoA ruling on PSALM refund

THE SUPREME Court (SC) has affirmed an order by the Commission on Audit (CoA) seeking a P5-million refund from officers and payees of the Power Sector Assets and Liabilities Management Corp. (PSALM) which the commission had disallowed.

The commission ordered the refund in 2009 because PSALM violated CoA Circular 89-300 released in 2006 that required receipts for reimbursement of Extraordinary and Miscellaneous Expenses (EMEs) instead of only the certificates of expenses issued by the claimants.

The P5-million EME reimbursements for 2008 and 2009 were covered only by certificates instead of receipts.

In its decision dated April 27 and made public on July 15, the court dismissed PSALM’s claim that the CoA circular does not apply to government-owned and -controlled corporations (GOCCs), which are regulated under the Government Appropriations Act.

The act allows GOCCs to reimburse EMEs on the basis of certificates in the absence of receipts.

However, the high court held that the CoA circular “applies to all GOCCs, GFIs (government financial institutions) and their subsidiaries.”

The court further clarified that the CoA circular overrides the General Appropriations Act’s grant of authority to GOCCs to disburse EMEs covered by certificates from the claimants in the absence of receipts.

The circular’s intent is to ensure that EME disbursements of GOCCs, GFIs and their subsidiaries do not constitute “irregular, unnecessary, excessive, extravagant, or unconscionable government expenditures.” — Bianca Angelica D. Añago

FINEX backs passage of proposed financial consumer protection law

UNSPLASH

A PROPOSED LAW to protect financial consumers has received the backing of the Financial Executives Institute of the Philippines (FINEX).

FINEX said in a statement Sunday that Congress needs to pass the legislation to “strengthen the Philippine financial ecosystem for the long-term good of our country” and protect consumers as financial products and services grow more complex.

The proposed Financial Consumer Protection Act is expected to protect consumers, who are adopting more digital services during the pandemic.

It also authorizes financial regulators such as the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, and Insurance Commission to draft and oversee the implementation of consumer protection rules.

The legislation passed on third reading in the House of Representatives in June 2020 and is at committee-level deliberations in the Senate. — Bianca Angelica D. Añago

The inestimable value of reliable accounting for estimation transactions

This challenging period during the COVID-19 pandemic has made demand for reliable and transparent financial reporting rise even higher. The increasing uncertainty in accounting for complex business transactions requires not only present information, but in certain cases, also requires estimation in order to be properly accounted for in the books of account and sufficiently reported in the financial statements.

This pandemic has added a layer of uncertainty to an entity’s ability to achieve its long-term goals, requiring management to implement more frequent reviews of financial budgets and forecasts in assessing the valuation of corporate assets. In many respects, management applies estimation in financial accounting and reporting, posing unique challenges. For example, in accounting for the acquisition of a business, management estimates the valuation of assets and liabilities acquired and, in the process, must determine what information will be used and where such information will be sourced. Management also has to have a robust process for ensuring that the estimation transactions are processed and accounted for consistently, including the determination and application of the appropriate methodology especially when there are various acceptable approaches in the industry. While it is true that accounting estimation is not a new concept in management and financial reporting, it has become complicated yet inestimably valuable in this period of uncertainty.

Given such challenges, management can only put its best foot forward by using its deep experience and knowledge of the industry and exercise sound judgment based on the available information to properly measure and report these transactions in the books.

A PRUDENT EXERCISE OF JUDGEMENT
Management needs to exercise sound judgment in accounting for and recording estimation transactions based on the latest available information at the time the estimate is made.

To exercise prudence of judgment when dealing with estimation transactions, management needs to use the most up-to-date information about the transaction, select the most appropriate measurement method, and gather other relevant data in supporting the assumptions to be used in arriving at the estimate.

To make the most reasonable estimate, management must also ensure that there are appropriate controls in place within the financial accounting and reporting process. The entire financial accounting and reporting process generates the financial statement amounts, making it necessary to establish the appropriate and sufficient controls to ensure that the output from processing estimation transactions is reliable. This process includes the necessary risk assessments and related activities necessary to ensure adequate financial statement disclosures. These estimated amounts largely drive what should be recorded in the books and disclosed in the financial statements.

Management also needs to identify areas in the estimation process that are prone to error, and thus increase the risks of material misstatement and unreliable information in financial reporting. It must revisit the previous bases of accounting for estimates especially when the data and assumptions used are highly dependent on macroeconomic factors and thus are subject to frequent changes and would require regular reassessment. It will also need to be conscious of potential biases to ensure that it continues to objectively evaluate all required information when arriving at the estimates. It is likewise important to remember that anything that has been proven and accepted in the past may no longer be relevant considering the changing business landscape and business outlook.

ACCOUNTABILITY FOR ESTIMATIONS
Top management and those charged with governance bear the responsibility of formalizing and approving the estimation process. At times, management may need the assistance of experts particularly for more complex estimates. However, this does not relieve it of its responsibility to carefully evaluate the work of experts. The same is true in the selection of an appropriate financial accounting and reporting policy that will be used for such transactions, assessing the need to change from previous years’ assumptions and addressing the potential impact of the changes on certain financial reporting assumptions. The process to be used will depend on the level of risk and the nature of the estimate. Any significant changes in assumptions and models from previous years must be fully supported and the basis of the change should be documented.

Management may further need to thoroughly document the rationale behind the selection of estimation models and assumptions among various alternatives. This is to respond to any questions from users of the financial statements by showing the bases and processes that led to the amounts and disclosures. The more complex the estimate is, the more structured the process and risk assessment is expected to be.

WHAT’S NEXT FOR MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE
The adoption of new and complex accounting standards as well as the evolving business landscape increases the demand for sound financial reporting that maximizes the use of available external information to produce reliable estimates. At the same time, management needs to ensure that it is still able to satisfy the information needs of stakeholders and users of financial statements. It will also need a robust assessment of all inputs used and strong justification behind the selection among various models in accounting for estimation transactions.

Beyond just compliance, management must consider how the disclosures help users of financial statements better understand the relevance of the estimate and its impact on the financial statements — from having adequate to reasonable disclosures. A robust risk assessment for estimates should be part of entity-level controls as it will set the tone for how transaction level controls will be set. For more complex and significant estimates, management and those charged with governance need to revisit their processes and controls and address the related risks identified on the estimation transaction.

Management must have its own stand-back approach to revisit and assess the effectiveness of the processes that are in place. This should enable it to accordingly revise the processes based on the evaluations done.

RISING TO THE CHALLENGE
The use of reliable estimates in financial reporting has become increasingly complex because of the pandemic. It is quite likely for regulators and other users of the financial statements to scrutinize and challenge financial statement estimates, as the estimation of these values are judgmental in nature. Accordingly, this would require closer collaboration between management and those charged with governance to ensure reliable and transparent financial reporting.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Benigno F. Leongson is an Assurance Partner of SGV & Co.

Government told to ban unneeded travel in metro

PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza, Reporter

HEALTH experts asked the government on Sunday to ban nonessential travel to and from Manila, the capital and nearby cities to stop the spread of a more contagious Delta coronavirus variant.

“We recommended that we place the National Capital Region (NCR) and surrounding provinces in a bubble,” Fredegusto Guido P. David, a research fellow at the OCTA Research Group from the University of the Philippines, said in a Facebook Messenger chat.

This would let the government keep the general lockdown in Metro Manila or even relax it to a modified general quarantine as long as the Delta variant from India is kept out, he added.

“We hope to prevent Delta from coming in so we can prevent lockdowns in NCR.”

The Health department on Friday said 16 more Filipinos had been infected with the Delta coronavirus variant, bringing the total to 35. 

Five of the 16 were returning migrant Filipinos, while 11 were locals, the agency said in a statement on Friday.

One of the workers arrived in the Philippines on April 26 from the United Kingdom and has since recovered after a 14-day quarantine. Two arrived in the Philippines on June 15 from Qatar and have also recovered. Information on the other two were still being verified. 

Of the 11 local cases, six were detected in Northern Mindanao, two in the National Capital Region and two in Western Visayas. 

All of them have recovered, except for one patient from Metro Manila who died after being rushed to the hospital on June 28, DoH said.

One other patient who was initially tested in the metro but had an address in Central Luzon has also recovered.

Of the 11 cases, nine had tested positive between June 23 and 28, while two tested positive on May 27, the agency said.

Of the 35 cases, 33 have recovered.

The Department of Health (DoH) reported 5,411 coronavirus infections on Sunday, bringing the total to 1.5 million.  The death toll rose to 26,714 after 117 more patients died, while recoveries increased by 5,439 to 1.43 million, it said in a bulletin.

There were 47,190 active cases, 91.9% of which were classified as mild, 1.9% were asymptomatic, 2.7% were severe, 1.88% were moderate and 1.6% were critical.

DoH said 15 duplicates had been removed from the tally, 10 of which were tagged as recoveries and one as a death. Eighty-two recoveries were reclassified as deaths. Four laboratories failed to submit data on July 16. 

A Metro Manila bubble “would allow economic activity in the National Capital Region to remain undisrupted while protecting it from outside sources of the Delta variant,” Mr. David said. The Delta variant “poses a threat to our public health, economic recovery and growth trajectory and overall momentum to end the pandemic,” said John Paulo R. Rivera, an economist at the Asian Institute of Management.

Preventive instead of reactive health measures ensure that “the Philippines is on its way to sustain improving economic conditions,” he said.

With the expected implementation of tighter quarantine restrictions to control the spread of the Delta variant and other coronavirus strains in the country, “economic pickup would remain relatively slower, as this would also delay and prevent the additional measures to further reopen the economy,” said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“The risk of additional lockdowns and travel restrictions would also be a potential drag on economic recovery projects,” he said in a Viber message.

Boosting vaccine rollout would help mitigate this risk and justify additional measures to reopen the economy, Mr. Ricafort said.

Quezon City posted 116 coronavirus cases from July 11-17, according to the latest report by OCTA. Manila had 86 cases, Makati City 63 cases and Pasig City 56 cases.

Forty-eight people got infected with the coronavirus, 44 cases in Parañaque and 42 in Las Piñas. Calamba and Santa Rosa, Laguna had 40 and 39 cases, respectively. Bacoor, Cavite had 48.

Meanwhile, the OCTA report flagged the “very high” use of intensive care unit (ICU) beds in Davao City in southern Philippines, where 96% of ICU beds had been used from July 11-17.

The city posted 225 coronavirus cases during the period.s The use rate of ICU beds in Iloilo City, which had 88 new cases, was also “very high” at 96%, according to the report.

OCTA said Laoag, Mariveles, Lapu-Lapu City and Cebu City had the highest coronavirus infection rates during the period. Laoag in northern Philippines had  a “very high” infection rate of 1.83 and “very high” 40.03 incidence rate, it said. Mariveles, Bataan in central Luzon also had an alarming infection rate of 1.83 and an incidence rate of 47.08. Lapu-Lapu City in the central part of the country also had a “very high” infection rate of 1.62 and moderate incidence rate of 9.68. Cebu City had an Infection rate of 1.4 and an incidence rate of 9.68, it said.

The Philippines on Saturday took delivery of about 1.6 million more doses of the vaccine made by Janssen Pharmaceuticals, Inc. The shipment was donated by the United States through the World Health Organization-led global initiative for equal access. The US has donated about 3.2 million vaccines to the Philippines.

Vaccine czar Carlito G. Galvez, Jr. earlier said about 16.42 million doses of vaccines were expected to arrive next month.

Critics tell Duterte: Vice president not immune from suits

PRESIDENT Rodrigo R. Duterte’s possible vice presidential win next year won’t protect him from lawsuits, according to a congressman.

A vice president “is impeachable but not immune from suit,” Party-list Rep. Carlos Isagani T. Zarate said in a statement on Sunday.

Former Vice President Jejomar C. Binay, who lost to Mr. Duterte during the 2016 elections, had to face corruption charges, said the lawmaker, who is also a lawyer.

At the tail-end of Mr. Binay’s vice presidency, the Ombudsman filed plunder charges against him at the Sandiganbayan over alleged overpricing of a parking building at the Makati City Hall.

At that time, constitutional expert and former Supreme Court Justice Vicente V. Mendoza said Mr. Binay did not have immunity since the acts were committed when he was still Makati mayor and because a sitting vice president does not have “multifarious duties and powers” like the President.

Mr. Duterte earlier said he might seek the vice presidency when his six-year term presidential term ends next year to protect himself from potential lawsuits.

“A vice president has no immunity from suit,” Edre U. Olalia, president of the National Union of People’s Lawyers, said in a separate statement. “That is rewriting the Constitution, the law and even jurisprudence.”

“Only the President is immune from suit and this is not even spelled out in the present 1987 Constitution — unlike in the 1973 Marcos Constitution — but only recognized in prevailing jurisprudence,” he said.

“His statement is a false self-assurance just to pander himself and his allies,” Mr. Zarate said of Mr. Duterte. “He knows that no such immunity is given to a vice president. He is aware of this truism just like he knew then in 2016 while campaigning for the presidency that he will not really jetski himself to the Spratlys.”

Lawyer and former Congressman Neri J. Colmenares said the President’s plan to run for vice president to escape imprisonment after his term ends is :shameless and legally insane.”

Voters should not vote for Mr. Duterte for his “self-serving personal interest,” he said in the same statement.

The International Criminal Court’s (ICC) Office of the Prosecutor earlier asked the Hague-based tribunal’s pre-trial chamber to probe alleged crimes against humanity committed in Mr. Duterte’s deadly war on drugs.

Former ICC prosecutor Fatou Bensouda has said there’s a link between the recent drug war-related killings and the killings in Davao City when Mr. Duterte was still mayor.

The presidential palace has said the government would not cooperate with the ICC on any investigations.

Mr. Duterte at the weekend accused his critics of trying to scare him with threats of legal cases. He also ranted against the ICC.

“If they insist on trying me on the basis of that wrong statute which we appended illegally because there was no publication, I would go to the Constitution which says that no person shall be deprived of life, liberty, or property without due process of law, so I will transfer that phrase in my case — I was deprived of a due process,” he said.

Meanwhile, more than 20 governors on Sunday backed the call of a PDP-Laban faction for Mr. Duterte to run for vice president next year.

Mr. Duterte, chairman of the ruling party, should seek the vice presidency so he could help his successor oversee pandemic response programs started by his administration, they said in a statement.

“For us, the strategy the administration is using to fight the pandemic is succeeding, given the fact that infections and deaths are fewer compared to some neighboring countries,” the governors said.

“However, the virus will not go away in the immediate future. The President’s successor will thus need the guiding hand of his vice president in the war against COVID-19 (coronavirus disease 2019).”

They also said Mr. Duterte should continue to have a say in the implementation of infrastructure projects.

The Philippines ranked 52nd out of 53 countries in terms of pandemic response, according to Bloomberg’s coronavirus resilience ranking, where the government scored poorly in vaccine rollout, among other things.

The country got a score of 45.3, ahead of Argentina, which ranked last on the list with a score of 37. — Kyle Aristophere T. Atienza

Flights to and from Iloilo to continue as mayor decries national gov’t order for a strict quarantine level

FLIGHTS TO and from the Iloilo International Airport will continue despite the strictest quarantine level imposed by the national government until end-July, Iloilo City Mayor Jerry P. Treñas announced over the weekend.

“Commercials flights and trips will not be stopped as far as the city is concerned,” he said in a statement.

The mayor also said it will not further restrict people’s mobility by requiring the use of quarantine passes.

Mr. Treñas, along with Iloilo Governor Arthur Defensor, Jr., have been lobbying for an easing of their areas’ lockdown level, citing the adverse impact on the economy.

However, the national task force handling the coronavirus response on Friday ordered an enhanced community quarantine (ECQ) in the province as well as in the independent city following the detection of coronavirus delta variant cases in Antique, a province that is within the same region.

Mr. Treñas, in another statement, said the order is “most unfair” considering the improved coronavirus situation in the city, but “he cannot do anything but accept the (task force’s) resolution.”

He cited that the delta variant that was detected in May 27 was in Pandan, Antique, “a good 6 hours road trip from Iloilo City”; there is no report of any variant in Iloilo City; and cases in the city are currently “20% lower” than last month.

“With all these reasons and more, I find the lockdown of Iloilo City unjustified and unfair to my people. 500,000 Ilonggos or a portion thereof will go hungry for the next two weeks,” he said.

Mr. Treñas said the city government is preparing to open community kitchens to assist those who will be most affected. — MSJ

Tropical storm Fabian not expected to bring heavy rains 

TROPICAL STORM Fabian, located northeast of Luzon in northern Philippines, is seen to strengthen into a severe tropical storm category but not expected to bring heavy rains as it stays away from the country’s landmass, weather bureau PAGASA said on Sunday.

However, Fabian and a low pressure area west of Basco, Batanes are enhancing the southwest monsoon, causing rains in some areas until Monday.   

“Palawan, Occidental Mindoro, Zambales, and Bataan will experience monsoon rains in the next 24 hours,” the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said in its 11 a.m. bulletin on Sunday.

As of 10 a.m., the tropical storm was located 1,100 kilometers (kms) northeast of extreme northern Luzon.

It was moving in a northwest direction, with maximum sustained winds of 65 kms per hour near the center, gustiness of up to 80 kms/h, and packing winds of up to 400 kms from the center.

“Fabian will remain far from the Philippine landmass throughout the forecast period. The tropical cyclone is forecast to move north northwestward and will exit the Philippine Area of Responsibility on Monday evening or Tuesday morning,” PAGASA said.

It said the forecast scenario indicates an unlikely hoisting of typhoon signals in any part of the country.

“Further intensification is expected for the remainder of the forecast period, with Fabian reaching severe tropical storm category by tomorrow afternoon. It is likely to reach typhoon category by Tuesday,” PAGASA said.

SC upholds condonation of admin charge vs Caloocan mayor over pork barrel fund, but not the criminal complaint

PHILSTAR

THE SUPREME Court (SC) has affirmed the 2016 decision of the Court of Appeals (CA) dismissing the administrative case against Caloocan City Mayor Oscar G. Malapitan over the questionable use of P8 million of his discretionary funds when he was a congressman.

In its decision promulgated on April 28 and published on July 15, the Supreme Court agreed with the CA that “since the act constituting the administrative offense was allegedly committed in 2009, and (Mr. Malapitan) was reelected in 2010, the condonation doctrine would still apply.”

The case involved P8 million in the 2009 Priority Development Assistance Fund, also known as the pork barrel, which used to be distributed to members of the House of Representatives. Mr. Malapitan served the maximum three three-year terms as Caloocan representative from 2004 to 2013.

In 2015, the Office of the Ombudsman filed a criminal complaint for graft and corruption against Mr. Malapitan and six officials of the Department of Social Welfare and Development, including then secretary Esperanza I. Cabral for approving the use of the congressman’s pork barrel fund for the programs of the Kaloocan Assistance Council, Inc.

The Ombudsman later added the administrative charge for “grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of service” against Mr. Malapitan.

The CA dismissed the administrative charge, citing the condonation doctrine. The Ombudsman then brought the case before the high court.

The Supreme Court previously explained that the condonation doctrine provides that a public official cannot be removed from his current position “for an administrative misconduct committed during a prior term, since his re-election to office operates as a condonation of his past misconduct.”

The High Court abandoned the doctrine on April 12, 2016 when it decided that the doctrine violates the 1987 Constitution, which states that “public office is a public trust” and so elected local officials should still be administratively liable for misconduct during a prior term even if they are elected to a new term or to another elective post.

However, this applies only to administrative charges.

As such, the Supreme Court said Mr. Malapitan is “absolved only of administrative liability based on the condonation doctrine,” and that it does not make any pronouncement on the criminal complaint against him.

Mr. Malapitan became mayor in 2013 and is currently serving his third and last consecutive term allowed under the Constitution. — Bianca Angelica D. Añago 

1...6,2126,2136,214...12,670Page 6,213 of 12,670
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube