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WFH or Incentives? The IT-BPM dilemma

Last month, the Philippines adopted the 10-Point Policy Agenda on Economic Recovery to accelerate and sustain economic recovery from the COVID-19 pandemic through Executive Order (EO) No. 166. Among the principles laid down by EO No. 166 is the resumption of economic and social activity, removal of age-based restrictions on mobility, and the further expansion of public transport capacity.

Consistent with the objective of further reopening the economy, the Fiscal Incentives Review Board (FIRB), through Memorandum Circular 2022-018, denied a request by the Philippine Economic Zone Authority (PEZA) to extend the government’s authorization of remote work for Information Technology-Business Process Management (IT-BPM) companies.

It must be noted that FIRB Resolution No. 19-21, dated Aug. 2, 2021, allowed registered business enterprises (RBEs) in the IT-BPM sector to continue implementing work-from-home (WFH) arrangements without adversely affecting their fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law until March 31, 2022. Further, on Oct. 15, 2021, the FIRB issued Resolution No. 23-21, denying the request of PEZA and its enterprises to be exempted from the WFH arrangement under Resolution No. 19-21 which required that the number of employees working remotely must not exceed 90% of the total workforce.

With the denial of an extension, IT-BPM employees were required to return to work in the registered sites starting April 1, 2022. While RBEs are not barred from continuing to implement WFH arrangements past that date, they must however give up the tax incentives they are currently enjoying. The dilemma now for RBEs is which side to take — employee convenience, productivity, and morale, or revocation of tax incentives such as an income tax holiday or a 5% special corporate income tax in lieu of all taxes, such as the value-added tax (VAT), income tax, and local business tax.

Section 309 of the CREATE Law provides the condition precedent to avail of the tax incentives. It states that a qualified registered project or activity under an Investment Promotion Authority administering an economic zone or freeport must be exclusively conducted or operated within the geographical boundaries of such a zone or freeport. An RBE may also conduct or operate more than one qualified registered project or activity within the same zone or freeport under the same IPA. Any project or activity conducted or performed outside the geographical boundaries of the zone or freeport is not be entitled to the tax incentives unless such a project or activity is conducted or operated under another IPA.

Noncompliance with the conditions prescribed under FIRB Resolution Nos. 19-21 and 23-21 will result in the suspension of the income tax incentives on the revenue corresponding to the months of noncompliance. Recently, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 39-2022 prescribing the manner of payment of penalties relative to violations incurred by RBEs under the IT-BPM Sector on the conditions prescribed regarding WFH arrangement. The RMC requires RBEs to compute the penalty in the manner illustrated in the circular, and pay the penalty within 30 days after the due date prescribed for the payment of income tax. If the deadline is missed, administrative penalties will be imposed as if the RBE were paying the regular corporate income tax rate of 20% or 25%.

While PEZA may grant applications for hybrid work setups until Sept. 12, 2022, this measure, being temporary, does not really address the problems of the IT-BPM sector. It must be noted that based on current studies, employees prefer WFH to working on-site, so it has become more difficult for the sector to comply with the work on-site directive.

To allow employees to continue with the WFH arrangements, the IT-BPM sector is considering various options. These include (1) deregistration from PEZA, (2) downsizing of PEZA operations, (3) transfer of registration with another IPA, and (4) retaining registration to continue to avail of other incentives.

DEREGISTRATION FROM PEZA
This option is available to IT-BPM companies that see the WFH set-up as a long-term arrangement.

IT-BPM RBEs that opt to deregister with PEZA will lose their tax incentives and will be subject to the regular corporate income tax (RCIT) of 25%, VAT, and local taxes. Other factors to be considered are the need to relocate business operations to non-PEZA locations, payment of import duties and taxes on imports, payment of VAT on local purchases, and registration updates with various government agencies.

The lost tax incentives may be compensated for by reduced lease payments, utilities, and administrative expenses.

Deregistering from PEZA means that the RBE will be considered a regular corporation and will no longer be subject to mandatory administrative, compliance, and reportorial requirements under the PEZA Law.

DOWNSIZING OF PEZA OPERATIONS
Some IT-BPM companies have various PEZA-registered sites. To meet the on-site percentage requirement, some RBEs are planning to downsize their PEZA sites by delisting some of their registered activities. RBEs may also consider retaining their PEZA sites where their employees can comply with the work on-site requirement and creating a new entity that will conduct the business operations of the delisted activities.

The remaining PEZA-registered sites will continue enjoying the tax incentives while the new entity will be subjected to regular tax rates.

TRANSFER OF REGISTRATION WITH ANOTHER IPA
The implementing rules and regulations (IRR) of the CREATE Law provides that qualified expansions, entirely new projects, or existing registered projects or activities prior to the effectivity of the CREATE Law, may register and avail of incentives subject to the criteria and conditions set forth in the Strategic Investment Priorities Plan (SIPP) in effect at the time of application, and performance review by the FIRB. The IRR provides that the application for a qualified expansion project or activity must be approved by the FIRB or concerned IPA, based on the level of capital invested.

Some IT-BPM companies are looking at the possibility of transferring and registering their activities from PEZA to another IPA which does not require work to be performed at specific registered sites. With the rationalization of incentives under CREATE, RBEs are now entitled to the same set of incentives. However, IPAs that do not administer ecozones or freeport zones do not require that their registered RBEs operate within a specific site. Thus, the option to transfer of registration to another IPA is available.

RETAINING REGISTRATION TO CONTINUE TO AVAIL OF OTHER INCENTIVES
The penalty for noncompliance with the on-site requirements is equivalent to paying the regular corporate income tax of 20% or 25%.

Although they stand to lose the incentives for income tax, some RBEs are considering retaining their PEZA registration to continue availing of other tax incentives such as VAT zero-rating on their local purchases of goods and services which are directly and exclusively used in the registered activity and importations and exemption from local business tax. Thus, some RBEs are considering retaining their PEZA registration and paying the penalty while availing of the VAT zero-rating incentives.

In summary, IT-BPM companies should consider the various factors involved in choosing which path to take, balancing both recovery from the economic impact of the pandemic and maintaining the welfare of their employees.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Neptali G. Maroto is a manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Duterte gov’t told to seize Marcos bank accounts

PRESIDENTIAL MUSEUM AND LIBRARY

By Kyle Aristophere T. Atienza, Reporter

A PARTY-list group on Monday asked the Finance department to seize the bank accounts of the administrators and beneficiaries of the estate of the late dictator Ferdinand E. Marcos for failing to pay billions of pesos in taxes in the past two decades.

In a letter to Finance Secretary Carlos G. Dominguez III and Internal Revenue Commissioner Caesar R. Dulay, the Akbayan Party-list, founded by victims of the late strongman’s martial rule, said seizing the bank accounts of the Marcoses would help the government collect their unpaid estate taxes, which have ballooned to P204 billion due to interest and other penalties.

“By garnishing the bank accounts, the Republic of the Philippines can immediately get the P204-billion unpaid estate tax debt of the Marcoses, which could go a long way during this pandemic,” it said.

Akbayan said demand letters issued by the Bureau of Internal Revenue in the past showed that the tax assessments had become final and executory.

“Clearly, the above persons are delinquent taxpayers, and it is incumbent upon the government to collect immediately the total amount due,” it said, referring to the late dictator’s immediate family members — his wife Imelda, son Ferdinand “Bongbong” and daughters Imelda “Imee” and Irene — and the estate administrators.

“We appeal to the Department of Finance and BIR to send notices of garnishment to all banks in the Philippines and proceed from there in recovering the funds due the Filipino people,” it added.

Marcos, Jr.’s lawyer Victor D. Rodriguez did not immediately reply to a Viber message seeking comment.

Akbayan said the law does not stop the tax agency from seizing the bank accounts of the Marcos family. “We are also aware that no temporary restraining order or injunction may be issued against the BIR.”

“Upon receipt of the warrant of garnishment, the bank shall turn over to the BIR commissioner so much of the bank accounts as may be sufficient to satisfy the claim of the government,” Akbayan said, citing the country’s tax law.

Michael Henry Ll. Yusingo, a lawyer and a research fellow at the Ateneo de Manila University Policy Center, said the BIR must explain to Congress why it has failed to collect the taxes.

“The erring officials must be penalized,” he said in a Facebook Messenger chat, noting that this sets a bad precedent and emboldens tax evaders.

Political analysts and historians have decried an alleged effort to revise the country’s history about the late dictator by putting him in a good light.

Marcos, Jr. is leading in presidential opinion polls. His sister Imee is a senator, while their mother Imelda had been a congresswoman who represented their hometown in Ilocos Norte for most of the time since she came back to the Philippines three decades ago.

His son Sandro is seeking to represent Ilocos Norte in Congress, a position that his grandmother held for more than 20 years.

“Civil society must not relent in making sure the Marcos estate tax is collected and that the proper history of the Marcos dictatorship, including the Martial law period, is written in our textbooks, regardless of whoever is in the administration after the elections,” Mr. Yusingco said. “We cannot just rely on our political class to attain this objective for us.”

Legal experts including former Supreme Court Justice Antonio T. Carpio worry that the government would never recover the dictator’s ill-gotten wealth if his son becomes president.

Former Presidential Commission on Good Government (PCGG) Commissioner Ruben Carranza earlier said President Rodrigo R. Duterte should do more than ask the country’s tax agency why the taxes have remained unpaid for decades.

Mr. Carranza, who now works as a senior expert at the International Center for Transitional Justice, was involved in a Supreme Court case where $678-million in Swiss deposits of the Marcos couple were found to have been illegally obtained.

He earlier said the late strongman’s son is aware of his family’s stolen wealth because he has been a key administrator of the Marcos estate since his father died in exile in the US in 1989.

He said Mr. Marcos was already 40 years old when the PCGG — created in the 1980s to recover ill-gotten assets of his father and his cronies — discovered in 1998 the $2 million worth of assets deposited by his late father with Merrill Lynch Securities in New York in 1972 under the Panamanian corporation Arelma S.A.

Mr. Carranza said it was the son who answered questions about the content of the Swiss bank accounts during court proceedings.

The dictator stole as much as $10 billion (P522 billion) from the Filipino people, according to government estimates, earning him a Guinness World Record for the “greatest robbery of a government.”

Comelec exempts some gov’t officials from firearm ban

PHILIPPINE STAR/ WALTER BOLLOZOS

By John Victor D. Ordoñez

THE COMMISSION on Elections (Comelec) has allowed senior government officials and their bodyguards to carry firearms during the election period, exempting them from the election gun ban, according to its chairman.

“I don’t want a senior government official to get injured or lose his life from an armed assailant simply because he cannot defend himself with his own fireman due to the gun ban,” Comelec Chairman Saidamen B. Pangarungan told a news briefing on Monday.

Among those exempted were the vice-president, lawmakers, magistrates, bureaucrats and election officers who have a license to own a gun. The president is already exempted from the gun ban, he added.

Mr. Pangarungan said Comelec changed the gun ban rules promulgated last year due to the large volume of requests for exemptions.

Under an order issued on Nov. 10 last year, only policemen, soldiers and other law enforcers deputized by Comelec may carry guns during the election period.

Election Commissioner George Erwin M. Garcia earlier said the election body would decentralize the filing and processing of applications for exemption to its regional offices.

The amendment also allows the Comelec chief to place election areas of concern under the agency’s control.

Meanwhile, exit polls on the first day of overseas voting on Sunday have gone viral on social media.

“If the exit poll will undermine the integrity of the election process, that will be the subject of investigation,” Mr. Garcia told the same briefing. He said people should focus on the official results after the May 9 elections.

One post on Twitter claimed former Senator Ferdinand “Bongbong” R. Marcos, Jr. dominated the first day of overseas voting in Hong Kong.

“It will be difficult If we believe all of these, which trend online and maybe a way to influence [voting],” he said in Filipino. “What is important is our citizens vote based on their conscience and free from influence.”

A Facebook post of a Filipino voter based in Singapore claiming she had received a pre-shaded ballot also went viral. “We haven’t received any report on this post even from our officials based in Singapore, and therefore it is fake news,” Mr. Garcia said.

In a Facebook post, the Philippine Embassy in Singapore said it was aware of an incident where one “spoiled ballot” was inadvertently given to a voter during Monday’s election, which it called an “isolated incident.”

Election Commissioner Marlon S. Casquejo said Comelec plans to double the five vote counting machines in Hong Kong due to the influx of voters during the first overseas voting on Sunday.

He said three of 92 overseas posts failed to start the election on Sunday due to coronavirus lockdowns and transportation issues.

“The opening of polls was generally peaceful and successful, except for some issues that were unavoidable due to coronavirus situations,” he told the briefing.

Also on Monday, the National Citizen’s Movement for Free Elections (Namfrel) called on Filipinos to monitor all phases of the election process to ensure transparent, free and fair elections.

In a statement, Namfrel said citizens need not join political parties or election watchdogs to become election observers. “Any Filipino can be a citizen election observer.”

“Active vigilance, critical engagement, and assistance to the Comelec as it prepares for the polls, and citizens’ observation of the process are assurances that will help dispel fears of cheating during the vote count and manipulation in the coming elections,” it said.

Philippines records 1,906 coronavirus cases from April 4-10 

PHILSTAR

The Philippines recorded 1,906 coronavirus infections from April 4 to 10, 29% lower than a week earlier, the Department of Health (DoH) said on Monday. 

DoH also posted 428 new deaths, 31 of which occurred this month, 65 in March, 45 in February and 51 in January. There were 164 deaths in 2021 and 72 more in 2020. 

There were no new critical cases but the agency said 707 severe and critical coronavirus patients or 12.6% of total admissions were staying in hospitals. 

DoH said 542 or 18.4% of 2,951 intensive care unit (ICU) beds had been used as of April 10, while 4,045 or 16.4% of 24,689 non-ICU beds were occupied. 

It added that 66.65 million people had been fully vaccinated against the coronavirus as of April 10, while 12.48 million people have received booster shots. — Kyle Aristophere T. Atienza 

1 dead, 44,500 displaced as storm Agaton hovers over the Visayas islands

DPWH REGION-8 OFFICE

AT LEAST one person was reported dead and another missing while more than 44,500 people have been displaced as storm Agaton, with international name Megi, dumped rains in central parts of the Philippines over the weekend, the national disaster management agency reported on Monday.  

Work and classes were suspended in at least 78 towns and cities as rains triggered flooding and landslides, especially in areas that were already getting isolated rains and thunderstorms in past weeks.  

In Cebu City, the regional center of Central Visayas, Mayor Michael L. Rama declared a state of calamity Sunday night.  

The tropical storm has weakened into a tropical depression as of Monday morning, according to state weather agency PAGASA, but heavy rainfall warnings remained up over the entire Visayas, including the western provinces of Negros Occidental, Iloilo, and others within Panay Island.   

Moderate to heavy rains were also expected in Bicol provinces, located in the southern part of Luzon.   

Sea travel remained suspended on Monday in central and eastern parts of the Visayas as well as northeastern parts of Mindanao. 

There were 3,049 passengers and cargo service workers stranded across 38 ports in Bicol, the Visayas islands, and northeastern Mindanao, based on the Philippine Coast Guard’s monitoring report as of Monday morning.   

About 70 road sections and bridges were affected, of which five national roads in Eastern Visayas were still closed to all types of vehicles as of Monday, according to the Department of Public Works and Highways.  

Power supply in parts of at least 15 towns and cities were cut off, according to the national disaster council’s report.  

Telecommunications services provider Globe Telecom, Inc. said power failure affected access to calls, text and data connectivity in several towns in the Visayas, particularly in the provinces of Leyte, Southern Leyte, Bohol, and Cebu. Globe said it would offer free call services and set up free charging stations in the affected areas.  

Agaton is forecast to “slowly loop” until Tuesday in the vicinity of northeastern portion of Leyte and the southern portions of Samar and Eastern Samar before emerging over the Philippine Sea” by Wednesday.   

PAGASA said Agaton may further weaken by Wednesday evening “as it becomes assimilated within the circulation of Malakas,” a severe tropical storm located east of the Philippines but not expected to affect the country. — Marifi S. Jara and Arjay L. Balinbin 

Number coding scheme lifted this week starting Tuesday

MMDA

THE NUMBER coding scheme has been lifted this week starting April 12, the Metropolitan Manila Development Authority (MMDA) announced Monday.   

The agency said this is in consideration of the observance of Holy Week when people usually travel to their hometowns or holiday destinations.   

In the past two years, mobility restrictions prompted by the coronavirus pandemic were in effect.  

“We are suspending the number coding scheme on Tuesday and Wednesday to provide the public unhampered mobility by allowing them to use their vehicles going to the provinces,” MMDA Chairman Romando S. Artes said during an inspection at the Parañaque Integrated Terminal Exchange on Monday.   

Mr. Artes, along with transport officials, noted the already higher than usual passenger volume at the transport hub.  

Formally called the Modified Unified Vehicular Volume Reduction Program, the number coding scheme bans vehicles with plates ending in 1 and 2 from roads on Mondays, 3 and 4 on Tuesdays, 5 and 6 on Wednesdays, 7 and 8 on Thursdays, 9 and 0 on Fridays from 5-8 p.m.  

It is automatically lifted during official holidays.  

CODING EXPANSION
Meanwhile, Senator Emmanuel Joel J. Villanueva on Monday called on MMDA to consult economic managers on the proposed expansion of the number coding scheme to ensure businesses and workers will not be negatively affected. 

“People want to go back to work as we are reopening the economy,” Mr.  Villanueva, chair of the Senate Labor, Employment and Human Resources Development Committee, said in a statement.  

MMDA, following multi-stakeholder consultations last month, said last week that it is planning to expand the coding scheme hours, currently in effect from 5-8 p.m., to include morning rush hours. 

Several other recommendations on easing vehicular flow in the capital region are also under consideration.  

The senator also called on businesses and government offices to fully implement the law on telecommuting or work-from-home to help decongest roads. — Marifi S. Jara and Alyssa Nicole O. Tan

Senator calls on embassies, consulates to extend voting hours for overseas Filipinos 

A SENATOR on Monday called on diplomatic offices to extend the voting hours for overseas Filipinos following complaints as the month-long absentee voting started on April 10.   

“Let’s not wait for a last-minute scramble to implement remedies,” Senator Imelda “Imee” R. Marcos, who chairs the Senate Committee on Electoral Reforms and People’s Participation said in a statement.  

She said the extended hours is particularly important for working Filipinos abroad.   

“The immediate solution is to extend voting hours at our embassies and consulates, while the logistical challenges of setting up more voting precincts still have to be sorted out by the Comelec (Commission on Elections),” she added.  

Election Commissioner Marlon S. Casquejo said in a briefing on Monday that they have already issued an advisory to foreign offices to accommodate voters who are already at the site but have yet to cast their ballot by the end of office hours.   

“There is an advisory we have sent to embassies that if at the end of the voting hours there are still voters in the polling centers, voting will continue,” he said.  

However, embassies and consular offices still have discretion on whether they can implement extended work hours.  

“We also have to balance our host country, because if the host country does not allow such kind of extension, then we really have to abide,” Mr. Casquejo said, adding that they will send another advisory on the matter.   

Ms. Marcos said her office has received feedback and complaints on the absentee voting process from Filipinos in Hong Kong, the United States, Italy, New Zealand, Saudi Arabia, and the United Kingdom.  

Last week, groups of overseas Filipinos warned of possible voter disenfranchisement due to lack of information dissemination from the foreign offices, delayed receipt of mail-in ballots, and limited voting sites and hours.   

There are almost 1.7 million registered overseas Filipino voters. Absentee voting, which will be mainly by post in most countries and in-person in a few areas, will be open until May 9. — Alyssa Nicole O. Tan with a report from John Victor D. Ordoñez 

SC orders anti-graft court to drop case vs former first gentleman citing lack of evidence

PHILSTAR

THE SUPREME Court (SC) has granted the appeal of former first gentleman Jose Miguel T. Arroyo to drop a graft charge against him in a case related to the procurement of secondhand choppers by the police force in 2009.  

In a decision dated Dec. 1 but made public on April 10, the High Court’s special third division said the alleged conspiracy between public officers and Mr. Arroyo had not been proven by the prosecution.  

The High Court ordered the Sandiganbayan, a special tribunal handling graft and corruption trials, to drop the case information filed against Mr. Arroyo over his alleged involvement in the irregular procurement of three helicopters amounting to P105 million.

“The prosecution has a duty to establish at the preliminary investigation level that there is a reasonable belief that Arroyo connived with public officers to commit the offense charged against him,” the court said in a ruling written by Retired SC Associate Justice Rosmari D. Carandang.   

“Otherwise, the Sandiganbayan cannot take cognizance of the case and put Arroyo on trial and the court cannot blindly follow the prosecutor’s certification as to the existence of probable cause.”  

The SC noted that the Office of the Ombudsman and the Sandiganbayan committed grave abuse of discretion in finding probable cause against Mr. Arroyo due to insufficient evidence.  

The Office of the Ombudsman said the irregular transaction cost the Philippine National Police and the government P34.6 million.  

The High Court last year affirmed the anti-graft tribunal’s order for the Anti-Money Laundering Council to disclose bank records related to the procurement of the alleged secondhand choppers that were priced as new units.  

In a separate dissenting opinion, SC Associate Justice Marvic M.V.M Leonen said the High Court should not “interfere with the Office of the Ombudsman’s exercise of prerogatives, unless there is clear showing of grave abuse of discretion.”  

Mr. Leonen added that Mr. Arroyo’s appeal to the High Court should be considered moot because the Sandiganbayan already rejected his motion for judicial determination of guilt. 

“The evidence on record engenders the reasonable belief that petitioner may have committed the crime and that he should stand on trial,” he said. ” There being no clear showing that respondent (Sandiganbayan) and the Office of the Ombudsman acted with grave abuse of discretion, this court should not interfere with their findings of probable cause.” — John Victor D. Ordoñez 

Solon tells outgoing Duterte: Focus on farmers, agri sector needs 

BW FILE PHOTO

PRESIDENT Rodrigo R. Duterte’s administration should focus on agricultural workers and sustainable food production as it prepares to step down in less than three months, a lawmaker said.  

“I would strongly advise President Duterte and his team to focus on agricultural jobs and farmer income, as well as stable and cheap food production, in the final lap of his term,” Albay Rep. Jose Maria Clemente S. Salceda, chair of the House Ways and Means Committee, said in a statement on Monday.  

“That’s the area where we will get the most socioeconomic returns.” 

Mr. Duterte is set to end his six-year term on June 30. 

“We particularly need to look at agriculture, where most jobs are ‘part-time’. 3.7 million out of the 7.2 million workers in the agriculture sector are part-time. So, they’re probably not earning enough,” the solon said, referring to data released in March.   

The lawmaker also suggested three ways to generate more jobs in agriculture while reducing food prices at the same time.   

“We have to defend from existing threats, such as ASF (African Swine Fever) and avian flu, expedite the introduction of hybrid rice seeds especially in typhoon areas, and accelerate the rollout of training and other programs on biosafety, natural and artificial pest control, and more climate-resilient farming. We also have to take measures to ensure that irrigation will be adequate during this year’s dry season,” Mr. Salceda said.   

“Second, we need higher value in crops that are labor-intensive. That will create new jobs and new sources of income. That’s coffee, cacao, abaca, and heirloom varieties of rice and other cereals.” 

“Third, we need agri-entrepreneurship, so that farmers can take care of the business side of things when they are done with cropping. That means food preservation facilities and training, packaging, and other value-adding processes,” he added.  

Mr. Salceda also said that the missing link in the country’s farm-to-market approach is the infrastructure, including processing and cold storage facilities as well as cyber infrastructure that would allow farmers to sell their goods online.  

“We have already made moves to that end, as the Agri-Agra Credit amendments are about to be enacted into law,” he said.   

“I am particularly hopeful that it will increase private lending to value-added in agriculture. But the public sector needs to increase outlays in agri value-added as well.”  

House Bill (HB) No. 6134 seeks to amend the Agri-Agra Credit Act of 2009, which directs banks to allocate 15% of their loan book to the agriculture sector, with a 10% quota set for agrarian reform beneficiaries.  

The bill has passed third reading in both chambers of Congress.  

“What President Duterte’s team can do towards this paradigm is to ensure that Agri-Agra credit reform is enacted within his term, Secretary (Willam D.) Dar is able to generate a comprehensive report on the problems in agri value chains, and the DA (Department of Agriculture) and the DPWH (Department of Public Works and Highways) are able to map out how to link farms to processing facilities, for the next administration’s reference,” Mr. Salceda said. — Jaspearl Emerald G. Tan 

Magdalo rep challenges anti-communist task force to prove Robredo-NPA link 

THE REPRESENTATIVE of a party-list of former military officers on Monday challenged the government’s anti-communist task force to prove their accusation that Vice-President Maria Leonor “Leni” G. Robredo, whom the group is supporting for president in the May elections, is connected with the New People’s Army (NPA).  

“I am one of the former soldiers aligned with the Robredo camp. And I can say with certainty, we also do not want a coalition with the NPA,” Magdalo Para sa Pilipino Rep. Manuel DG. Cabochan III said in a statement.   

The NPA comprise the armed fighters of the Communist Party of the Philippines.  

“We are clearly against it… But there is no coalition with the NPA in the first place,” he said.   

Mr. Cabochan said he is ready to give up his congressional seat if the National Task Force on Ending Local Communists Armed Conflict (NTF-ELCAC) can prove their allegation.   

“Now, if the NTF-ELCAC can show proof today, aside from fake witnesses, that there is a coalition between the NPA and the Robredo Camp, I will resign as the incumbent representative and nominee of the Magdalo Party-List,” he said.   

The Magdalo party-list, which represents retired soldiers, was founded by Samahang Magdalo in 2010. Samahang Magdalo is connected to the Magdalo Group, which led the Oakwoad mutiny and the Manila Peninsula siege that both sought to oust former President Gloria Macapagal-Arroyo.   

Former Colonel Ariel O. Querubin, who was a colleague of Mr. Cabochan in the Magdalo Group, said in a statement last week that he will not back Ms. Robredo after being told by senior police officers and representatives from the NTF-ELCAC that her group was associated with the NPA.  

Mr. Querubin, together with former police and military officials have said they will support the presidential bid of the late dictator’s son, Ferdinand “Bongbong” R. Marcos, Jr.    

SENATORIAL CANDIDATES
In the Senate race, Senator Ana Theresia “Risa” N. Hontiveros-Baraquel, who is seeking reelection, promised support for workers and the end of contractualization if she wins another term. 

She plans to push for the Balik Trabahong Ligtas Bill, which aims to give public and private sector employees additional benefits such as life insurance.  

Ms. Hontiveros, who earlier filed the Security of Tenure Bill, also pointed out the need to remove the so-called “endo” or “5-5-5” system, wherein workers’ contracts are terminated before they reach the minimum period that makes them eligible for certain benefits.   

“It’s time for endo or 5-5-5 to end,” she said in a statement. “Let us give job security and corresponding benefits to every Filipino.”  

Meanwhile, human rights lawyer Jose Manuel “Chel” I. Diokno, who is running for a senate seat, expressed his disappointment over the Philippine National Police’s failure to investigate the alleged rampant smuggling of agricultural products into the country.   

“This is the kind of organized crime that our law enforcers should be prioritizing,” he said, noting that this has led to revenue loss and adverse effects on the livelihood of local farmers and fishermen. 

If elected, Mr. Diokno plans to provide free legal assistance in every barrio, or remote communities.  

He will also push for an independent commission to investigate abuses allegedly committed or instigated by persons in authority.   

In this way, he said, cover-ups will be avoided and all violators of the law will be equally penalized. — Jaspearl Emerald G. Tan and Alyssa Nicole O. Tan 

Eastern Conference play-in set: Cavs at Nets, Hornets at Hawks

BROOKLYN Nets forward Kevin Durant (7) takes a three-point shot in the fourth quarter against the Indiana Pacers at Barclays Center. — REUTERS

THE BROOKLYN NETS won their regular-season finale on Sunday and secured the best seed in the National Basketball Association (NBA) Eastern Conference play-in tournament this week.

The Nets finished the season 44-38 after fending off the Indiana Pacers, 134-126. As the No. 7 seed in the East, they will host the No. 8 Cleveland Cavaliers on Tuesday evening to begin the play-in tournament.

The Atlanta Hawks and Charlotte Hornets both won their regular-season finales on Sunday to cement themselves as the Nos. 9 and 10, respectively, in the East. The Hawks (43-39) will host the Hornets (43-39) on Wednesday evening.

The winner of Brooklyn-Cleveland will advance to the playoffs and face the second seed (either Milwaukee or Boston) in the first round. The loser will host the winner of Atlanta-Charlotte on Friday to determine who draws the top-seeded Miami Heat in the opening round.

Brooklyn had an identical record to Cleveland after the Cavs beat Milwaukee on Sunday. But the Nets earned home-court advantage for Tuesday by virtue of winning the regular-season series, made possible by their 118-107 win over the Cavs on Friday.

The Western Conference play-in tournament schedule was finalized before Sunday’s action. The No. 7 seed Minnesota Timberwolves will host the No. 8 Los Angeles Clippers on Tuesday night. The No. 9 New Orleans Pelicans will host the No. 10 San Antonio Spurs on Wednesday night.

The play-in finals for both conferences are set for a Friday night doubleheader. — Reuters

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