How PSEi member stocks performed — June 24, 2022
Here’s a quick glance at how PSEi stocks fared on Friday, June 24, 2022.
US ban fuels Djokovic’s Wimbledon motivation
LONDON — Defending champion Novak Djokovic says he will be extra motivated to claim a fourth successive Wimbledon title as it could be his last Grand Slam action of the year.
The 35-year-old Serb missed the Australian Open after being deported for not having been vaccinated against COVID-19 and will not be allowed to compete at the US Open for the same reason.
Those decisions have severely impacted Djokovic’s hopes of winning the most Grand Slam titles, with Rafa Nadal now holding the record on 22, compared to Djokovic’s 20.
With Australia enforcing strict entry criteria, it is likely that Wimbledon could be Djokovic’s last Grand Slam event until next year’s French Open.
“As of today I’m not allowed to enter the States under these circumstances. I’m aware of that. That is an extra motivation to do well here,” he told reporters on Saturday.
“Hopefully I can have a very good tournament, as I have done in the last three editions. Then I’ll just have to wait and see. I would love to go to States.
“But as of today, that’s not possible.”
Should Djokovic retain the title he would be only the fourth man in the modern era to win four successive Wimbledon crowns.
It would also put him level with Pete Sampras on seven Wimbledon titles, one behind record holder Roger Federer.
“I would love to be in a position to fight for another trophy,” top seed Djokovic said.
“Pete Sampras, winning his first Wimbledon, was the first tennis match I ever saw on the TV. So, of course, there’s a lot of connection to this tournament.
“Pete has won it seven times. Hopefully, yeah, I can do the same this year.”
Even if Djokovic wins he will lose the 2,000 ranking points he is defending from last year, following the ATP and WTA decision to strip the tournaments of points in the wake of the ban on players from Russia and Belarus. Read full story
Djokovic was also prevented from defending 2,000 points in Melbourne, but says he is not overly concerned.
“My priorities are different now,” he said.
While respecting Wimbledon’s stance, Djokovic said he feels it is unfair that Russian players, including world number one Daniil Medvedev, are not competing at the grasscourt major.
“I understand both sides. It’s really hard to say what is right, what is wrong. But in my heart as an athlete, putting myself in a position where someone would ban me from playing because of these circumstances, and I have not contributed to that, I wouldn’t think that’s fair,” he said.
“Let me remind you that back in the 90s, from 92 to 96, any athlete from Serbia was not allowed to compete on the international stage in any sport. At that time I was too young, but I know athletes that were competing at that time.
“I know how it affected their lives. Many of them have left their sport because four years is a very long time.” — Reuters
Kvitova surges past Ostapenko to claim Eastbourne crown, Fritz wins men’s title
TWICE Wimbledon champion Petra Kvitova geared up for this year’s tournament in style as she sailed past former Roland Garros winner Jelena Ostapenko 6-3 6-2 to capture the WTA 500 Eastbourne International crown on Saturday.
It was a 29th career title and the first in more than a year for the 32-year-old Czech as she underlined her status as an outside contender for Wimbledon, which begins on Monday.
Kvitova was flawless on serve and surged into an early lead, racking up 18 winners on the back of some superb ball-striking against Latvian defending champion Ostapenko, who was on a nine-match winning streak in Eastbourne.
“My serve was working, but still I needed some breaks, or I’m playing a tiebreak, which is always 50-50,” said Kvitova.
“I know that Jelena is playing well here on grass, the defending champion, so I was really prepared for that fast, aggressive game which she really played.”
The former world number two was truly tested only once during the 77-minute encounter, saving five break points in a marathon 12-minute game at 2-1 in the second set.
Wimbledon 25th seed Kvitova takes on Italian Jasmine Paolini in the first round at the All England Lawn Tennis Club, while 12th seed Ostapenko faces France’s Oceane Dodin.
However, Ostapenko cast doubt on her fitness ahead of that encounter after she pulled out of the Eastbourne doubles final with a right toe injury.
Ostapenko and her partner Lyudmyla Kichenok were due to face Aleksandra Krunic and Magda Linette, who were crowned champions following the walkover.
In the men’s final, American Taylor Fritz clinched his second title of the year with a hard-fought 6-2 6-7(4) 7-6(4) win over compatriot Maxime Cressy in the final of the ATP 250 event.
Third seed Fritz, who also lifted the trophy in 2019, started brightly and took advantage of Cressy’s shaky serve, breaking the 25-year-old twice in the opening stages to take the first set.
The two big servers were neck-and-neck for much of the second set before Cressy raised his game in the tiebreak, relying on his trusted net play to force a decider.
The more seasoned Fritz, however, came up trumps when it mattered them most, edging Cressy in the third set breaker to add to his Indian Wells title from March and boost his chances at Wimbledon.
Fritz, seeded 11th at the grasscourt major, goes up against Lorenzo Musetti of Italy in the first round, while Cressy will be hoping to pull off an upset against world number nine Felix Auger-Aliassime. — Reuters
Unpredictability
In the wake of the Nets’ unceremonious exit in the first round of the 2022 Playoffs, seven-time All-Star Kyrie Irving didn’t waste any time declaring his intent to stay in the fold. Following a tumultuous campaign that saw him burn rubber for only 29 games for a cacophony of reasons, his words appeared to be a welcome development. After all, a commitment from the mercurial talent looked like a godsend to a front office that reeled from his inability to consistently perform the job from which he drew a $33.3-million salary.
As things turned out, conventional wisdom couldn’t have been more wrong. Ostensibly, the Nets themselves have figured revisiting their arrangement with Irving is the best move to make in the wake of his contract demands. Even as he has proven to be a part-time player, he’s bent on securing a fully guaranteed four-year extension worth a whopping $256 million. The problem isn’t his skill set, which admittedly counts him among the top 15 players in the National Basketball Association. It’s his unpredictability. There’s a reason he has suited up in black and white in only 113 of 126 matches over the last three years, and this reason gives both owner Joe Tsai and general manager Sean Marks pause.
Were things in a vacuum, the Nets would most likely ship Irving to effect addition by subtraction. Unfortunately, he has an ace in teammate Kevin Durant, with whom he has a close relationship. Certainly, he’s the reason the surefire Hall of Famer signed up with them in 2019. And, yes, he’s banking on the threat of both of them leaving to coax them into opening their war chest for him. So far, they’re not budging. And, so far, neither is he; in fact, he has evidently given them a list of preferred destinations should they decide on taking the sign-and-trade route.
Bottom line, the Nets and Irving are playing chicken and waiting to see the other blink. Needless to say, the situation will come to a head on June 29, the deadline for him to either opt in or opt out of his existing contract. In either case, an extension isn’t out of the question. That said, the latter option would indicate his openness to leaving. And in the face of his incalculable decision making, it’s in the cards regardless of the fact that he risks losing millions upon millions by taking it. Remember, he didn’t bat an eyelash while he saw close to $20 million go down the drain because of his refusal to be vaccinated against the COVID-19 virus. He also didn’t think twice in castigating Nike for what he deemed to be the unauthorized release of the latest edition of his signature shoe; said move now has him about to bid goodbye to a lucrative endorsement deal.
There’s something to be said about Irving being a tantalizing prospect for a better future, but ultimately falling short of expectations. If nothing else, his experience with the Cavaliers, the Celtics, and the Nets have shown it time and again. True, the Lakers can’t wait to grab him should he opt out of his contract. Then again, doing so smacks of desperation. They should be careful what they wish for; they just might get it.
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.
SpaceX launch of PHL operations expected to be delayed past June
THE LAUNCH of the first gateway connecting the Philippines with the Space Exploration Technologies Corp. (SpaceX) satellite network has been delayed beyond June, with the company yet to firm up the site for its gateway, the Department of Trade and Industry (DTI) said.
Trade Secretary Ramon M. Lopez told reporters on the sidelines of the recently-concluded Manufacturing Summit that the timeline for the Philippine launch of SpaceX, which is controlled by Elon Musk, has slipped beyond the original target, which was sometime within the term of President Rodrigo R. Duterte.
The gateway links the internet service to low-earth orbit (LEO) satellites, a network known as Starlink, also operated by SpaceX.
“(The first gateway) might not make it (by the end of the Presidential term),” Mr. Lopez said, noting that the site and construction plans have not been finalized.”
Mr. Lopez could not give an estimate for the SpaceX investment, saying that the company has made no such disclosures.
The DTI had estimated that the first SpaceX gateway will be operational before the end of President Rodrigo R. Duterte’s term on June 30.
It added that the entry of SpaceX was accelerated by the passage of the amendments to the Public Service Act (PSA), which relaxed the restrictions on full foreign ownership of telecommunications, shipping, airline, railway, and subway businesses. These industries were previously subject to a 40% foreign equity cap under the 1987 Constitution.
Separately, Mr. Lopez also told reporters that the private sector-led Center for Artificial Intelligence, which took in funding of about $20 million, will be inaugurated by the second half.
For budget reasons, “We decided to make this private-sector led. Our partners have just decided to inaugurate the center towards the second half of this year,” Mr. Lopez said.
An earlier timeline for the center’s launch also slipped because of the impact of the national elections.
“This is one center that can help upgrade and push for more innovation, make use of AI tools for enterprises to really upgrade their competitiveness. At the same time, this can create more exposure for our data scientists, those educated in preparation for AI and data science… will have a (venue) to excel (for the benefit of) the industry and improved innovation,” Mr. Lopez said. — Revin Mikhael D. Ochave
Gatchalian calls debt management higher priority than fuel excise freeze
A SENATOR tipped to chair the chamber’s Ways and Means Committee in the 19th Congress said he considers sovereign debt management more important than revenue-eroding measures like a suspension of fuel excise taxes, which would impair government efforts to reduce such debt.
“We have just recovered from the pandemic and we still have a lot of debt,” re-elected Senator Sherwin T. Gatchalian said in a statement over the weekend, noting that a large portion of the government’s expenses will go to debt incurred to purchase coronavirus disease 2019 (COVID-19) pandemic vaccines.
“This must be prioritized to strengthen the so-called economic fundamentals and so that we can borrow even less if needed,” he added.
At the end of April, National Government debt was at a record P12.76 trillion, up 0.7% from the end of March.
However, Mr. Gatchalian said the Senate can still explore ways to relieve the burden of high fuel prices in hearings, adding he was open to allowing legislators pushing for the excise tax suspension to air their arguments.
“This is my perspective… I want to see if they have a different computation and analysis, so we can listen to it to know whether (their proposals) will help or not. We want to look at the situation as a whole,” he said.
The suspension of excise taxes on petroleum would result in as much as P131.4 billion in foregone revenue in 2022, reducing the funds available to support the recovery, the Department of Finance (DoF) has said.
In an Oct. 20 memorandum to Finance Secretary Carlos G. Dominguez III, Undersecretary Antonette C. Tionko recommended that the suspension of excise taxes on fuel products be “appropriately studied” as the foregone revenue “may affect the government’s budget for COVID-19 recovery measures.”
The senator has called for consultations to discuss the impact of higher fuel prices.
The Energy department has told legislators mechanisms should be set up under Republic Act 8479 or the Downstream Oil Industry Deregulation Act to determine the cost breakdown of fuel. Mr. Gatchalian said it may take time to make oil prices more transparent through such an unbundling of costs.
As an immediate solution to the continuing oil price hike, the senator proposed an expansion of the cash aid program to P3,000 monthly for jeepney drivers and P1,000 monthly for tricycle drivers over the next five months.
He said this will cost about P4 billion, against the P150 billion in foregone revenue should the excise tax be suspended.
“We can also expand the Libreng Sakay (free ride) program of the government, so those who stop plying their routes or plying the roads can be contracted by (the) government to serve the riding public,” he added. — Alyssa Nicole O. Tan
NIA may open 50 irrigation projects to PPP
THE National Irrigation Authority (NIA) said it has prepared a list of 50 projects that may be opened up to public-private partnerships (PPPs), including hydropower and floating solar power facilities.
In a statement over the weekend, NIA said: “At present, NIA has 50 potential irrigation projects for PPP nationwide (including) major or big-ticket multipurpose projects with hydropower component that can have potential floating solar power farms, and small river irrigation projects (SRIPs) or medium-sized dams with reservoirs that have the potential (to host) floating solar power farms and/or mini-hydro power plants,” the NIA said.
With power generation, irrigation, and climate change mitigation and adaptation infrastructure projects eligible for PPPs, “NIA sees partnership with the private sector (as) an opportunity to gain improved efficiency and project implementation processes in delivering services to the public, especially our farmers.”
According to the NIA, some of the potential major multipurpose projects for PPP include the Balog-Balog Multipurpose Project (hydropower component) in Tarlac; the Ilocos Sur-Ilocos Norte-Abra Irrigation Project in Region 1; the Panay River Basin Integrated Development Project in Capiz, the Ilaguen Multipurpose Irrigation and Power Project in Isabela; and the Balintingon Multipurpose Project in Nueva Ecija.
“Irrigation development in the Philippines is very slow at 2% of the potential irrigable area of about 1.3 million hectares annually due to lack of budgetary support to fast-track implementation of big-ticket multi-purpose projects; slow phase of project preparation due to failure of local consultants to deliver necessary outputs like feasibility studies and detailed engineering designs; and conversion of developed irrigated areas to other land uses like residential, industrial and other purposes,” the NIA said.
“With PPP’s focus on reduced costs, better risk allocation, faster implementation, improved services and possible generation of additional revenue, the NIA top management officials calls on the private sector (to make) much-needed investments in Philippine agriculture,” the NIA said. — Revin Mikhael D. Ochave
DoF wants trust fund to be sole source of financing for coco farmer insurance, warns against ‘double-dipping’
FINANCE Secretary Carlos G. Dominguez III said the coconut trust fund needs to be the sole disburser of financing for coconut farmer health and crop insurance, citing the danger of duplication should other funds be used to support such benefits.
“As the Trust Fund Management Committee, we need to ensure that there is no double-dipping of funds, that the crop and health insurance coverage to the coconut farmers should only come from the coco levy trust fund,” Mr. Dominguez was quoted as saying in a Department of Finance (DoF) statement. The remarks were delivered at a June 16 meeting.
Mr. Dominguez chairs the Trust Fund Management Committee (TFMC), which oversees how coconut levy funds are used.
He also urged the TFMC in the next government to also ensure that insurance funds are “commercially viable and therefore sustainable.”
Republic Act No. 11524 created the Coconut Farmers and Industry Trust Fund (CFITF), which aims to raise coconut output, bring farmers out of poverty, and modernize the industry.
Budget Undersecretary Kim Robert C. de Leon said that the Department of Budget and Management will review budget proposals by the Philippine Crop Insurance Corp. (PCIC) and the Philippine Health Insurance Corp., and other agencies receiving allocations from the CFITF to ensure no duplication of funding.
Under the CFITF, P200 million is allocated to the PCIC every year for crop insurance for coconut farmers, while P500 million is allocated every year for health and medical programs for coconut farmers and their families.
In order for crop insurance coverage to be sustainable, Mr. Dominguez said that premiums charged by the PCIC should consider factors such as geographical and weather-related risks, and reinsurance options with the private sector, “in order to reduce the financial burden on the coconut levy trust fund.”
During the meeting, the Bureau of the Treasury (BTr) reported that the TFMC received from Land Bank of the Philippines (LANDBANK) a certificate of indebtedness, with a total principal amount of P1.12 billion at a fixed interest rate of 1.75% in connection with the sale of United Coconut Planters Bank (UCPB) shares.
LANDBANK received nearly P300 billion in additional assets after its merger with UCPB earlier in March.
The BTr also reported that the TFMC also received P102.74 million from the sale of disputed UCPB shares and rights.
These shares were classified by the Presidential Commission on Good Government as Coconut Levy Assets under the control of the CFITF.
Funds from these disputed shares will be transferred to an escrow account, or a third party, pursuant to the Implementing Rules and Regulations of Sections 9 to 11 of the CFITF, which states that non-cash levy assets may be disposed of pending dispute, provided that the proceeds are held in escrow. — Tobias Jared Tomas
Tugade expresses confidence in DoTr successor Bautista
TRANSPORTATION Secretary Arthur P. Tugade said on Sunday that he is confident that his successor, former Philippine Airlines (PAL) President and Chief Operating Officer Jaime J. Bautista, will run the department efficiently when he takes over after the current government’s term expires.
“I personally know my successor, Jimmy Bautista. We have long years of association and friendship. His professionalism, experience, dedication, and hard work will certainly augur well in his being the Secretary of Transportation,” he said in a statement.
“To the best of my abilities and capabilities, I shall assist in however way asked and needed,” he added.
He said that the department’s transition team is currently working to ensure a “smooth, full, and transparent transition.”
“President-elect Ferdinand R. Marcos, Jr. has decided. We must fully trust and support his decision.”
Mr. Bautista spent more than 25 years working at PAL, serving as the airline’s president twice, between 2004 and 2012 and again between 2014 and 2019. While working for the national carrier, he held a variety of positions, including vice-president for finance and chief financial officer.
Separately, lawyer and former journalist Cheloy E. Garafil was chosen by Mr. Marcos to be the next chairman of the Land Transportation Franchising and Regulatory Board.
He currently serves as service director at the House of Representatives Committee on Rules, and was formerly a prosecutor for the Department of Justice and State Solicitor for the Office of the Solicitor General.
Mr. Marcos also tapped businessman Christopher S. Pastrana to serve as general manager of the Philippine Ports Authority.
“(Mr.) Pastrana, a successful businessman in the transportation field, brings with him decades of experience in various aspects of aviation, logistics, and public maritime transport,” Mr. Marcos said in a statement.
Mr. Pastrana currently serves as president and chief executive officer of the supply and logistics conglomerate CAPP Industries, Inc.
He also chairs the Archipelago Philippines Ferries Corp., which operates ferries under the brand name FastCat. — Arjay L. Balinbin
A new chapter for Philippine sustainability reporting
In the last few years, a growing number of companies have been publishing sustainability reports and have started integrating environmental, social and governance (ESG) considerations into their strategic frameworks because of regulatory developments and increasing demand from investors and customers.
Locally, a key driver for sustainability reporting is Memorandum Circular No. 4, series of 2019, issued by the Securities and Exchange Commission (SEC) in 2019. This requires publicly-listed companies (PLCs) to submit an annual sustainability report under a “comply or explain” approach. The SEC recognized the relevance of ESG disclosures not only to support global and local sustainability goals, but also to encourage transparency and accountability from companies by requiring public disclosure of their sustainability performance.
After a year of implementation, we conducted a review on how listed firms responded to the mandate. We then published a report containing a review of listed companies’ 2020 sustainability reports, known as “Beyond the Bottom Line 2nd Edition: Sustainability Landscape in the Philippines.”
IMPROVED QUALITY AND COVERAGE
The number of reviewed sustainability reports increased from 73 in 2019 to 118 in 2020. Consistent with the 2019 review results, the 2020 review revealed that 66% still applied the SEC’s template, while 52% released stand-alone, glossy sustainability reports and 53% included sustainability content in their annual reports, which shows that PLCs are gradually adopting more formats than just using the SEC’s template. The most widely adopted (79%) standard remained the Global Reporting Initiative (GRI) Standards.
However, there was a notable increase in the use of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations (41%), which suggests that listed companies are recognizing the need to identify potential impacts of climate change to their businesses and mitigate climate risks. Companies in the construction and power & utilities industries covered most of the TCFD disclosures, showing their awareness of their exposure to the adverse impacts of climate change. Meanwhile, holding firms and listed companies in the banking, mining, retail and transportation industries had some climate-related disclosures, whereas the food, beverage and tobacco companies had little to none.
Only 10% of the listed firms we reviewed obtained limited assurance, and 56% did not disclose their sustainability vision and strategies or provided only high-level statements of intent relating to sustainability. Sixty-two percent disclosed their materiality assessment process, while biodiversity-related topics like watersheds, marine and International Union for Conservation of Nature Key Biodiversity Areas (IUCN/KBA) remained the least reported. Knowing that the Philippines is one of the most megadiverse countries globally, biodiversity loss is a crucial issue. This makes it imperative for companies to report on biodiversity, especially for industries with direct impact such as mining and power & utilities.
Overall, there has been improved quality and coverage in the 2020 sustainability reports compared to the previous year, and ESG disclosures are expected to improve further especially since the “comply or explain” approach ended in 2021. We also anticipate changes in the global and local reporting landscape to address the call to harmonize sustainability reporting standards and frameworks.
The IFRS Foundation, through the International Sustainability Standards Board (ISSB), has released the first two exposure drafts of the IFRS Sustainability Standards Disclosures. Comments on the exposure drafts are due on 29 July 2022, and we are expecting the official publication of these standards before 2022 ends.
POLICY LANDSCAPE OF SUSTAINABILITY REPORTING
Sustainability reporting is just one of the growing regulations that aim to accelerate sustainable development in the country. The growing concern over ESG risks, compounded by the impacts of the COVID-19 pandemic, are driving stronger sustainability efforts from the government and companies.
The government has developed and released several policies and frameworks to support decarbonization and the transition to a cleaner energy source through climate funding and action plans. Multiple regulatory and reporting developments are underway to address ESG issues: sustainable finance, extended producer responsibility (EPR), sustainable mining, and biodiversity protection. Investors are also paying more attention to ESG and are saying they are now attaching greater importance to companies’ ESG performance because of the pandemic, as revealed in EY’s 6th Institutional Investor Survey.
Despite the current gaps in ESG disclosures as observed in the 2020 review, we see a potential acceleration in the incorporation of ESG considerations into corporate strategies and investment on resources as companies begin to realize that gains from their sustainability efforts outweigh the related costs and are not just an added expense to the business.
BEYOND COMPLIANCE
Currently, the SEC only requires listed companies to submit sustainability reports, but this will soon be extended to other types of corporations, as they have announced in several webinars. Considering the multiple, fast-paced global and local developments around ESG, businesses should reinforce their sustainability journey as soon as possible and consider the following actions:
• Define sustainability governance at the management and board levels
• Integrate sustainability into the enterprise risk management system and corporate strategies
• Invest in systems and processes that will support reliable and timely ESG reporting
• Obtain third-party assurance on ESG disclosures
• Keep tabs on the developments around sustainability reporting standards, especially on the IFRS Sustainability Standards Disclosures
• Build internal capacity to support the organization’s sustainability thrust
Sustainability reporting is one of the best ways to boost stakeholder confidence as it demonstrates transparency and accountability. However, it is not enough for companies to produce sustainability reports for compliance purposes alone.
Instead, determining material ESG issues for the business is essential to disclosing relevant information to stakeholders and to manage the risks these issues bring. A company’s sustainability journey may also entail business model changes, portfolio rebalancing and investments in new technologies and capabilities. Thus, corporates should start realigning their resources and strategies and understanding what they need to ensure accurate and timely ESG disclosures.
Bold sustainability commitments and goals with defined metrics will be necessary to drive impactful actions that help accelerate the country’s sustainable development.
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.
Benjamin N. Villacorte is a partner from the Climate Change and Sustainability Services team of SGV & Co.
All eyes on Marcos as ICC drug probe reboot eyed
ALL EYES are on incoming President Ferdinand R. Marcos, Jr. and his commitment to human rights after a request by the International Criminal Court (ICC) prosecutor to resume the investigation into alleged crimes against humanity by his predecessor in the Philippine government’s war on drugs, political analysts said at the weekend.
The ICC probe is unlikely to prosper if Mr. Marcos allows his alliance with presidential daughter and incoming Vice-President Sara Duterte-Carpio “to take precedence over everything else,” said Dennis C. Coronacion, who heads the University of Santo Tomas Political Science Department.
“The next administration has sent mixed signals regarding how it will deal with the matter,” he said in a text message. “These contradictory statements tend to confuse the public.”
He said incoming Justice Secretary Crispin C. Remulla had sent signals that the government would not cooperate with the ICC probe, citing the country’s functioning justice system.
On the other hand, Mr. Marcos did say that he “would like to see a high level of accountability on the aspect of human rights,” Mr. Coronacion said.
The ICC’s Office of the Prosecutor has sought to reopen the probe into President Rodrigo R. Duterte’s anti-illegal drug campaign months after it was halted upon the Philippine government’s request.
In a 53-page request to the ICC pre-trial chamber, ICC Prosecutor Karim Ahmed Khan said the Philippine government had not shown that it has investigated crimes related to the campaign.
He said the chamber should issue an order on an “expedited basis.” It should “receive any further observations it considers appropriate from victims and the government of the Philippines,” he added.
The ICC prosecutor’s request to resume the probe is a “booster shot for accountability,” Human Rights Watch (HRW) said on Saturday.
“The government has not been serious about justice for these crimes while the victims’ families grieve without redress and those responsible face no consequences,” Maria Elena Vignoli, senior international justice counsel at the global human rights watchdog, said in a statement.
Philippine government data released in June 2021 showed that at least 6,117 suspected drug dealers had been killed in police operations as of April 2021. Human rights groups estimate that as many as 30,000 suspects have been killed.
Mr. Khan said the information about cases taken from the dockets of national and regional prosecution offices in the Philippines “does not demonstrate that concrete and progressive steps have been or are being taken by the competent national authorities.”
He said the Philippines had failed to show that “any individual has been investigated for ordering, planning, or instigating any of these killings, nor is there any indication that the domestic authorities are investigating the alleged systemic nature of these and other killings.”
The ICC probe might threaten the “united front,” said Maria Ela L. Atienza, a political science professor at the University of the Philippines, referring to Mr. Marcos’ campaign promise of unity. He ran in tandem with Ms. Carpio and both won the May 9 elections by a landslide.
She said the human rights stance of the son and namesake of the late dictator would be closely monitored given violations committed during his father’s two-decade authoritarian rule. “Many are wary that the son may replicate the record of the father.”
Ms. Atienza also noted that a number of Duterte officials and allies would continue to serve under the Marcos government.
“We will see if they will continue to defend Duterte’s war on drugs or will take on a different stance under the new administration,” she said in a Viber message.
Mr. Marcos has named Mr. Duterte’s Justice chief Menardo I. Guevarra solicitor general, the government’s chief lawyer.
Mr. Guevarra on Sunday said the Department of Justice should have been given enough time to produce results first, noting that Mr. Khan’s move to lift the probe suspension was premature.
“I respect his view but I think he should have waited for our efforts to bear some fruit,” he said. “An investigation of this magnitude and complexity cannot be finished in a few months.”
‘UNCOMFORTABLE’
The ICC suspended its investigation of the drug war in November as the Justice department and other agencies started looking at 52 cases recorded from 2016 and 2021.
The DoJ had only brought five of the 52 cases, which involved about 150 police officers, to court since it started its investigation in 2021.
Analysts said the European Union would probably continue to exert pressure on the Philippine government to respect human rights.
Cooperating with the ICC presents an “uncomfortable choice” for Mr. Marcos, the Gabriela Women’s Party said at the weekend.
He would be perceived as a leader who condones human rights violations if he blocks the ICC probe, exposing the “stubborn reign of impunity under the new presidency,” it said.
Anakpawis Party-list National President Ariel B. Casilao dared Mr. Marcos to give way to the ICC investigation.
“We challenge Marcos, Jr. not to block the ICC probe on Duterte and to recognize the Rome Statute and International Humanitarian Law,” he said in a statement. “Duterte’s crime was not simply ‘war on drugs,’ but state terrorism where he used the state machinery to sow terrorism among the Filipino people.”
The presidential palace at the weekend called the state’s anti-illegal drug campaign a success “that saw a massive dip in crime incidents attributed to drug abuse.”
Mr. Duterte’s spokesman, Martin M. Andanar, told the ICC, which investigates and tries people charged with genocide, crimes against humanity, war crimes and aggression, to “let these efforts of the Philippine government run their course.”
“If Marcos, Jr. gives Duterte protection in the ICC probe, he will only prove that he is not worthy to be president,” Mr. Casilao said.
Bayan Muna Rep. Ferdinand R. Gaite welcomed the ICC prosecutor’s move. “We look forward to its conclusion the soonest possible time for the sake of giving justice to the victims of this crime against humanity,” he said in a statement.
“Years have already passed after these killings, the prolonged and still continuing suffering of their families in seeking justice should now be put to an end.”
Mr. Duterte, whose six-year term ends on June 30, has asked his successor to continue his anti-illegal drug campaign.
Arjan P. Aguirre, who teaches political science at the Ateneo De Manila University expects Mr. Marcos to “use his popularity to repel any pressure from civil society.” — Norman P. Aquino, Alyssa Nicole O. Tan and Kyle Aristophere T. Atienza
AFP spokesman to head Marcos Jr.’s Presidential Security Group
PRESIDENT-ELECT Ferdinand R. Marcos, Jr. has chosen a military spokesman as the head of the Presidential Security Group (PSG), according to the Armed Forces of the Philippines (AFP) Public Affairs Office.
“AFP spokesperson Colonel Ramon Zagala will be designated acting PSG commander and acting senior military assistant at the same time,” Jorry L. Baclor, chief of AFP’s public affairs office, said by telephone on Sunday. “According to him, it will be effective on June 30.”
“He will perform both designations in acting capacity,” he added.
Mr. Zagala will replace outgoing PSG Commander Randolph G. Cabangbang.
The AFP recently activated a security team for incoming Vice-President and presidential daughter Sara Duterte-Carpio.
The security team, which is not attached to the PSG, was activated after Ms. Carpio requested “that a security unit separate from the [PSG] be created and be assigned” to her and her family.
The Vice Presidential Security and Protection Group, which was activated on June 24, will “ensure the safety and security of the vice-president of the Philippines and her family,” the AFP said in a statement on June 25.
Ms. Carpio in a statement last week said the request was made in anticipation of “future elections” and the possibility of “strained relations” between the president and vice-president.
“This AFP initiative also highlights the importance of having an independent group that will provide all Philippine vice-presidents with the necessary security and protection,” she said.
The activation of the separate security group for the vice-president would resolve the matter of continuity in security for all vice-presidents of the Philippines, Ms. Carpio added.
“It may be expected to solve the challenges if, in future elections, the vice-president and the president face the misfortune of having strained relations.” — KATA