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DoF: Aggressive collection effort needed for recovery

DOF.GOV.PH

FINANCE Secretary Carlos G. Dominguez III said the government revenue agencies need to turn in strong performances this year to support infrastructure and healthcare spending, which are critical to the economic recovery.

“Essential to our fiscal consolidation program is the improvement of our revenue collections to meet our expenditure requirements. This year will be critical,” he said at a Bureau of Internal Revenue (BIR) event on Thursday.

“We need to begin outgrowing our debt by restoring our high growth,” he added.

He said the spending priorities are infrastructure modernization, public health, and social services.

“We have to continue procuring vaccines for our people. We need to rebuild the communities damaged by severe weather events caused by climate change.” Mr. Dominguez said.

The BIR collected P2.08 trillion in 2021, up 6.51% year on year, according to Treasury data.

Overall tax collections rose 9.4% to P2.74 trillion last year.

Meanwhile, outstanding debt hit P11.73 trillion at the end 2021, up nearly 20%.

The Department of Finance (DoF) has been preparing a fiscal consolidation program to manage the national debt.

“We have already formulated a program to limit the budget deficit and improve the debt-to-GDP ratio,” Mr. Dominguez said. “This is part of our transition plan for the next administration.”

Rene E. Ofreneo, president of the Freedom from Debt Coalition, has said that the government should manage its spending by tweaking infrastructure investment.

The government needs to reduce big-ticket projects that benefit only a few in favor of community-based programs that help protect citizens against the pandemic and climate change, he said.

Separately, BIR Commissioner Caesar R. Dulay at the same event proposed a review of legislation to increase salaries at the bureau.

“I would like to see, maybe, a review of the salary standardization act so that (BIR employees’) compensation (is) commensurate to their responsibilities and efforts,” he said.

Salaries at the bureau, he said, “pale in comparison” to other government agencies. — Jenina P. Ibañez

Competition regulator flags property developers’ exclusivity deals with internet providers

THE Philippine Competition Commission (PCC) said exclusive internet provider deals entered into by property developers for residents of their communities are not conducive to market competition.

In a statement on Thursday, the PCC said several property developers were sent enforcement advisory letters (EALs) as a result of such arrangements. The letters were sent following complaints by tenants or residents because developers have an exclusive provider or are hindering other ISP operators from installing connections on their premises.

The PCC said eight developers have voluntarily complied with the EALs and have allowed other ISPs into their respective properties. These developers include DMCI Homes, Inc., Vista Residences, Inc., Amaia Land Corp., Avida Land Corp., Urban Deca Homes, Victoria Towers by New San Jose Builders, Inc., CHMI Land, Inc., and Kirkwood Development Corp.

“PCC utilizes EAL as a tool to advise companies to correct competition concerns immediately. Through the enforcement advisory, firms are given the chance to correct their actions and avoid the long process of prosecution,” the commission said.

Arsenio M. Balisacan, PCC chairperson, urged the public to report cases of single-ISP arrangements areas, adding that property developers should allow competition to provide such services.

“As remote work, distance learning, and e-commerce have become part of the new normal, PCC understands the value of consumer choice for fast, stable, and affordable internet connection. The lack of competition in this space forced by exclusivity dealings by property developers is an issue that we are determined to solve,” Mr. Balisacan said.

The PCC said it is planning to issue a joint circular banning exclusive arrangements for internet, telecommunications, and cable TV services.

It added that it has received 104 ISP-related complaints since the creation of an ISP task force in March 2021.

“The lessons of previous abuse of dominance cases filed by PCC should already inform property developers of putting exclusive ISP deals to a stop. Through the EALs, voluntary compliance will add to the firms’ badge of good corporate governance while giving residents the benefit of consumer choice,” Mr. Balisacan said. — Revin Mikhael D. Ochave

China says it won’t exploit Russia-Ukraine war

PHOTO FROM PHILIPPINE COAST GUARD

By Alyssa Nicole O. Tan, Reporter

THE CHINESE Embassy in the Philippines on Wednesday called “crazy and absurd” speculations that China would take advantage of Russia’s invasion of Ukraine to advance its militarization of the South China Sea.

“China will absolutely not use its strength to bully smaller countries, and we never believe in the winner-takes-all approach,” the embassy said in an e-mailed reply to questions. China seeks to “realize a resolution as soon as possible to advance joint development without prejudice to either side’s rights and claims.”

“We hope to work with the Philippines to find ways to properly manage and resolve the issue in the spirit of goodwill and pragmatism,” it added.

The Philippines should mind a potentially bigger militarization of the South China Sea by China as the US and its allies are kept busy by Russia’s invasion of Ukraine, foreign policy experts said at the weekend.

Senator and presidential candidate Panfilo “Ping” M. Lacson, Sr. on Wednesday said Russia’s invasion of Ukraine could embolden China to do the same. He also said the next Philippine president should be an expert war strategist to ward off a potential invasion from other nations such as China.

Close to 700,000 Ukrainians have fled the country since Russia launched a devastating attack by air, land and sea on its neighbor, a European democracy of 44 million people, a week ago.

China abstained from the United Nations Security Council voting on the Ukraine crisis, which shows that it is neither condemning nor condoning the Russian invasion, said Mr. Lacson, a former police chief.

Senior Chinese officials had told senior Russian officials in early February not to invade Ukraine before the end of the Winter Olympics in Beijing, according to senior Biden administration officials and a European official, The New York Times reported this week.

The report indicates that senior Chinese officials had some level of direct knowledge about Russia’s war plans or intentions before the invasion started last week, according to the newspaper.

These claims were speculations without any basis, and were meant to blame-shift and smear China, said Liu Pengyu, the Chinese Embassy spokesman in Washington.

China claims more than 80% of the South China Sea, which overlaps with the exclusive economic zones of Vietnam, Malaysia, Brunei, Indonesia and the Philippines. Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas.

The Chinese Embassy said the sea dispute could be turned into an opportunity and lead to an outcome that could benefit the Philippines and deepen the friendship between the two countries.

“However, some forces are trying to frustrate this good momentum with repeated provocations,” it said. We despise those groundless malicious speculations made by some so-called experts.”

Jaime B. Naval, a political science professor from the University of the Philippines said China could drive away not just Filipino fisherfolk within the Philippine exclusive economic zone “but even our troops stationed on South China Sea reefs or shoals.”

There could also be “not only increased adversarial actions but even possible new measures approximating Scarborough of 2012,” he said in a Facebook Messenger chat.

“China may also resort to more provocative or counteractive measures against powers conducting freedom of navigation in the area,” he added.

More than five dozen Chinese ships remained in disputed areas of the waterway as of Feb. 17, while 39 more had banked near the Union Banks, Simularity Chief Executive Officer Liz Derr told a forum last month.

The Philippines has filed 241 diplomatic protests against China, including 183 last year due to the entry of China’s militia vessels, which it claims are fishing boats, into waters near Thitu Island and Whitsun Reef, according to data from the Foreign Affairs department. 

‘WORLD PEACE’
Mr. Naval cited expectations that China might have more intrusive air and naval sorties near Taiwan.

China claims democratically governed Taiwan as its own territory and has in the past two years stepped up military and diplomatic pressure to assert its sovereignty claims, causing deep concerns in Washington.

On Feb. 28, Taiwan’s Defense Ministry said eight Chinese aircraft including six fighters and two anti-submarine aircraft had flown into its air defense identification zone to the northeast of Pratas Islands at the top end of the disputed seas.

“China has always faithfully fulfilled its international obligations and played a constructive role in maintaining world peace and stability,” the Chinese Embassy said. “China will join hands with the Philippines to properly handle the South China Sea issue.”

Although both countries have yet to reach an agreement, the embassy said the sea dispute should be put in its proper place without affecting their bilateral relationship.

China, it added, is aware that each country has its own claim and position. “Stressing only one side’s claims and imposing one’s own will on the other is not a proper way for neighbors to treat each other.”

The Chinese Embassy also noted that since President Rodrigo R. Duterte took office in 2016, relations have continued to improve, with both countries working together to overcome the pandemic, promote development and revitalization and cooperate to resolve sea disputes.

Mr. Duterte only started speaking about Philippine sovereignty in the waterway last year, close to the end of his six-year term as president. For most of his term, the tough-talking leader had allowed Chinese fishermen to illegally fish in the South China Sea and followed through with a so-called appeasement policy, according to Jay L. Batongbacal, director of the University of the Philippines Institute for Maritime Affairs and Law of the Sea.

The Chinese Embassy noted that China’s relations with the Philippines, had always brought cooperation and friendship, not colonization and war. In contrast, the United States invaded the Philippines many years ago and still has military presence in the country, it added.

“China stays committed to the path toward peaceful development and the building of a community with a shared future for mankind,” it said. “We will continue to firmly oppose all hegemonies and power politics and resolutely uphold the legitimate rights and interests of developing countries, especially small and medium-sized countries.”

“China and the Philippines should stay committed to an independent foreign policy and contribute to the stability and prosperity of the region,” it added.

COVID infections fewer than 1,000 for second day

PHILSTAR

THE PHILIPPINES on Thursday reported 989 coronavirus infections — the second straight day the tally fell below 1,000 — bringing the total to 3.66 million.

The death toll hit 56,538 after 34 more patients died, while recoveries rose by 1,349 to 3.56 million, the Department of Health (DoH) said in a bulletin. It said 4.5% of 27,143 samples from Feb. 28 tested positive for coronavirus disease 2019 (COVID-19), which is within the World Health Organization’s threshold.

Coronavirus tests in February were fewer than in January, when the heavily mutated Omicron variant spurred a spike in infections.

Of 50,458 active cases, 463 did not show symptoms, 45,510 were mild, 2,773 were moderate, 1,415 were severe and 297 were critical.

The agency said 89% of new cases occurred on Feb. 18 to March 3. The top regions with cases in the past two weeks were Metro Manila with 192, Calabarzon with 111 and Central Visayas with 101 infections. It added that 32% of new deaths occurred in February and 9% in January.   

Four duplicates were removed from the tally, three of which were reclassified as recoveries, while 26 recoveries were relisted as deaths. Five laboratories failed to submit data on March 1.

DoH said 25% of intensive care unit beds in the country and in Metro Manila were occupied.

The agency was “prepared for the worst-case scenario” after the lockdown in the capital region and 38 other areas was eased to the lowest alert level, Health Secretary Francisco T. Duque said on Wednesday.

“Before we decided to deescalate, we made an analysis of the capacity of the healthcare system of the country, regionally and locally,” he said.

The Philippines is aiming to vaccinate more people as it reopens the economy.

The government would boost vaccination efforts as it further relaxes restrictions in 39 areas under Alert Level 1, Health Undersecretary Myrna C. Cabotaje said this week.

She said the government would improve its house-to-house vaccination efforts and boost information drives to encourage more people to get vaccinated.

Ms. Cabotaje said the government aims to conduct its fourth national vaccination drive on March 10 to 12. The government missed its goal of injecting five million doses during its last national vaccination drive.

She said some Filipinos did not see the need to get a booster shot, while others doubt its usefulness. Only about 10 million people have received a top-up shot.

Government data showed that 93% of healthcare workers, 62.82% of seniors and 92% of seriously ill people have been fully vaccinated.

The agency on Tuesday said it would stop reporting daily coronavirus infections starting March 7.

The agency would issue weekly bulletins instead, Health Undersecretary Maria Rosario S. Vergeire told a televised news briefing.

She said the agency would keep the COVID-19 tracker on its website, but it would eventually be updated weekly.

“As to the case numbers, if it’s mild, we treat it like it’s part of our lives,” Ms. Vergeire said. “We live with the virus, we focus on the critical.”

The Philippines, which was among the hardest hit by COVID-19 in Southeast Asia, endured one of the longest lockdowns in the world.

President Rodrigo R. Duterte locked down the main island of Luzon in mid-March of 2020 to contain the virus that was first detected in Wuhan, China. — KATA

Monitoring team cites socio-economic programs, 4 other key measures for future of Bangsamoro peace

BANGSAMORO.GOV.PH

THE ROLLOUT of socio-economic programs in sync with the decommissioning of former armed combatants is one of five key measures to sustain gains in the new Bangsamoro region, the independent Third Party Monitoring Team (TPMT) said in its latest report released on Thursday. 

“Decommissioning is perhaps the most challenging part of the normalization process,” the TPMT said in its 7th Public Report covering the period Nov. 2020 to Jan. 2022.

Under the decommissioning process, the Moro Islamic Liberation Front (MILF) that signed a peace deal with the government in 2014 committed to turn over weapons in phases, to be complemented by development and social service programs for rebel camps and communities. 

“All these (socio-economic support projects) have been rather slow in coming… this is something which really should be addressed,” TPMT Chair Heino Marius said at the report launch and press briefing held in Pasig City and virtually.

TPMT said “little progress” was made in these areas of the normalization track, citing the “absence of agreed policing, lack of clarity on socio-economic packages for decommissioned combatants, and slow progress on camps transformation.” 

The MILF pledged to decommission 40,000 combatants. As of end-2021, about 12,000 or about 30% have been decommissioned with another 14,000 already listed. Of those listed, 7,200 were scheduled to be disarmed in 2021 and 6,800 this year.  

The Joint Normalization Committee (JNC), in a meeting on Feb. 24, approved a framework proposed by the United Nations Development Programme for the development of MILF communities outside of the six identified MILF camps.

“This is not the first time that we are including MILF communities outside the six previously acknowledged MILF camps,” said Wendell Orbeso, director of the JNC Secretariat Heads Office of the Presidential Adviser on Peace, Reconciliation and Unity. 

“As a matter of fact, the Task Force for Decommissioned Combatants and their Communities, for example, has been implementing livelihood programs and projects in MILF communities within and outside the six previously acknowledged camps and BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) core territory,” said Mr. Orbeso. 

OTHER MEASURES
The other measures underscored by the TPMT are:  

● Immediate passage of pending priority legislations, which include the Bangsamoro codes on revenue, elections, local government, and indigenous peoples;

● Fully utilize the National Government–Bangsamoro Government Intergovernmental Relations Body, which is tasked to strengthen coordination between the national and regional administrations; 

● Swift and efficient implementation of the amnesty program through the National Amnesty Commission; 

● Strengthen security systems to prevent violent incidents arising from clan wars, land and other resource conflicts, and violent extremism. 

“With the extension now in place, the Bangsamoro Transitional Authority has more time to accomplish its priority tasks,” TPMT said.

“The decision to extend the transition phase is also an opportunity for the Parties to jointly reflect on what has been achieved to this point, and to adjust and refine the way the (peace) process is implemented.” — Marifi S. Jara

DoT reports over 47,000 tourist arrivals since border reopening

BOHOL.GOV.PH

OVER 47,000 tourists arrived in the Philippines since the reopening of borders on Feb. 10, with foreigners comprising more than half, according to the Department of Tourism (DoT).

Tourism Secretary Bernadette Romulo-Puyat said in a briefing on Thursday that 47,715 international visitors were recorded to have entered the country as of Feb. 28.

Of the total, 45% or 21,409 were balikbayans or returning Filipinos, and 55% or 26,306 were foreign tourists. 

“We didn’t expect that there would be (foreign) tourist arrivals because normally, the tourists would arrive during the winter months or school break in their countries,” Ms. Puyat said. 

Americans topped the list, followed by nationals from Canada, United Kingdom, South Korea, Australia, Vietnam, and Germany. 

The tourism chief added that many hotels are already fully-booked and have been rehiring former employees who were laid off due to the coronavirus disease 2019 (COVID-19) pandemic. 

“We talked with different hotels and local government units of various tourist destinations. They said that many employees are being rehired because many tourists are already going to the destinations or the hotels. Many hotels are fully-booked already. This is a good sign, and they are rehiring,” Ms. Puyat said. 

Since Feb. 10, the Philippines has allowed the entry of fully-vaccinated foreign travelers from visa-free countries. They are also no longer required to undergo quarantine as long as they present a negative RT-PCR test within 48 hours prior to departure from the country of origin. 

The tourism sector contributed 12.7% to the country’s economy in 2019, and an uptrend was expected prior to the COVID-19 outbreak. — Revin Mikhael D. Ochave

SC to pilot test digital payment system in 20 courts with Unionbank as partner

SUPREME COURT PIO

A DIGITAL payment system for court and other legal fees will be pilot-tested by the Supreme Court (SC) in 20 first-level courts nationwide with Aboitiz-led UNIONBANK of the Philippines, Inc. as partner financial institution.

In a circular signed by Court Administrator Raul B. Villanueva, the High Court directed the pilot sites to post instructions on the cashless payment system on their respective court bulletins using English and the local language in their area.

The Supreme Court entered into an agreement last year with Unionbank to develop an electronic payment system for the judiciary. It was launched last year, initially covering small claims cases.

The e-payment system will be open to account holders of any bank.

“It (ePayment) is aimed at streamlining the processes of assessment and payment of court fees, increasing accessibility of the public to judicial services, increasing transparency and accountability, and providing the Supreme Court with efficient accounting and auditing mechanisms,” it said. 

The Supreme Court has fast-tracked the adoption of digital systems during the coronavirus pandemic, including online filings and hearings as well as the Bar Examinations. 

In another bulletin on Thursday, Associate Justice Alfredo S. Caguioa announced that the 2022 Bar exams will return to a four-day schedule. It was done over two days last year.

“The Court, in a move towards some level of normalcy, has decided that the 2022 Bar Examinations will revert to being taken on four non-consecutive days, but within a two-week period of the month to be announced in a separate bar bulletin,” he said.

Chief Justice Alexander G. Gesmundo last week said the high court plans on digitalizing future exams to take full advantage of technological advancements.

Meanwhile, the High Court on Wednesday released new rules on expediting criminal and civil actions before first-level courts, which amended the 1991 Revised Rule on Summary Procedure and 2016 Revised Rules on Small Claims Cases.

“The new Rules recalibrates, reconciles, and harmonizes the coverage of the Revised Rule on Summary Procedure and Small Claims cases following the enactment of Republic Act (RA) No. 11576, which expanded the jurisdictional amount cognizable by the first level courts to ₱2,000,000.00 for civil actions monetary claims,” the court said in a statement posted on its website. — John Victor D. Ordoñez 

Pacquiao woos barangay leaders with standardized pay; local politicians express support in Marcos, Robredo sorties

PRESIDENTIAL aspirant Senator Emmanuel D. Pacquiao, Sr. on Thursday said he will seek the standardization and regularization of the salary of village-level  officials and personnel if he wins as the country’s next leader.

Mr. Pacquiao also promised set benefits for workers and officials of barangays, the smallest administrative cluster under the Philippine political system.

Barangay officials, composed of a chairman and council members, are elected. Other barangay-level workers such as those in health teams work on a contractual basis or as volunteers who are given an allowance at varying rates.

Under the Local Government Code of 1991, barangay officials are compensated in the form of an honorarium of at least P1,000 per month for the chairman and P600 for others.

The senator’s proposal is based on a bill he authored, Senate Bill 1956 or the Barangay Officials Salary 2 Standardization Act of 2020, which seeks to amend the Local Government Code.

The bill remains pending at the committee level.

Under the proposed measure, barangay officials will be declared as regular government employees, making them entitled to a 13th-month pay and other regular benefits. 

There are 42,044 barangays nationwide, based on Philippine Statistics Authority data. 

FRONTRUNNERS
Meanwhile, the two leading presidential candidates separately visited two big provinces in southern Luzon on Thursday, with local politicians attending their campaign rallies to express support.

The late dictator’s son, Ferdinand “Bongbong” R. Marcos, Jr., and his running mate Davao City Mayor Sara Duterte-Carpio visited the western towns of vote-rich Batangas province and held a main rally in Balayan town. 

Batangas Gov. Hermilando I. Mandanas and Vice Governor Jose Antonio “Mark” Leviste II endorsed the tandem at the campaign rally in Balayan.

In his message at the rally, Mr. Mandanas parroted the tandem’s unity call. “We shouldn’t fight against each other. We should be united.”

There are about 1.8 million registered voters in Batangas.

Mr. Marcos’ main rival, Vice President Maria Leonor “Leni” G. Robredo, won in Batangas in the 2016 vice-presidential race.

Also on Thursday, Ms. Robredo visited two big towns in Oriental Mindoro. 

She and her running mate Sen. Francis “Kiko” N. Pangilinan were welcomed in Pinamalayan City by youth supporters wearing her signature color, pink. 

Ms. Robredo also visited a fisherfolk community that is a beneficiary of her office’s livelihood programs. 

The opposition candidate’s team held a people’s rally in Calapan City, the province’s capital. The slate was welcomed by district representative and House Deputy Speaker Antonio “Doy” C. Leachon, a known ally of President Rodrigo R. Duterte.

Mr. Leachon was named as spokesman of the PDP-Laban faction headed by presidential candidate Senator Emmanuel D. Pacquiao last year.

Colmenares
In the Senate race, human rights lawyer Neri J. Colmenares said on Thursday that if he wins a seat in the upper chamber, he will prioritize measures that seek to remove the value-added tax (VAT) on oil, water, and electricity.

“The Makabayan Bloc has long pushed to declare as VAT-exempt oil, water, and electricity through different Congresses, with House Bill (HB) Numbers 245, 249, 256, and 481 as their most recent versions in the 18th Congress,” he said in a mix of English and Filipino. 

Mr. Colmenares previously served as a representative of Bayan Muna, one of the party-lists under the Makabayan bloc. 

He added that he welcomes the move of private concessionaires Maynilad and Manila Water to cancel the VAT on water bills, but hopes that it will be institutionalized in other areas as well as the oil and electricity sectors. 

“These taxes drive up the prices of goods and services, making them harder to obtain, lowering incomes and stunting the growth of the economy. We cannot spur economic activity when costs are prohibitive due to taxes like VAT,” he said. 

Mr. Colmenares is running under the 1Sambayan opposition coalition, which supports the Robredo-Pangilinan tandem. — Alyssa Nicole O. Tan, Kyle Aristophere T. Atienza, and Jaspearl Emerald G. Tan

Party-list system continues to be hijacked by political clans, big businesses — election watchdog

ABOUT seven out of every 10 party-list groups participating in this year’s elections have been hijacked by big businesses and political clans, election watchdog Kontra Daya said on Thursday.

In a statement posted on its Facebook page, the group said it has flagged at least 120 out of 177 accredited party-list groups for “being identified with political clans and big businesses, as well as for having incumbent local officials, connections with the government and military, unknown or unclear advocacies and representations; and pending court cases and criminal charges (included being implicated in pork-barrel scams).” 

Kontra Daya, which translates to ‘against fraud’, conducted a study where it found at least 44 party-list groups controlled by political clans; 21 with ties to big businesses; 34 represented vague advocacies; 32 have ties with the government or the military; 26 have incumbent local officials among their nominees; and at least 19 have pending criminal charges and court cases.

Kontra Daya conducted a similar study in the 2019 party-list elections, where about 50% of the groups were flagged under the same categories.

“As in the past election cycles, Kontra Daya’s team of researchers analyzed the profiles of the 177 party-list groups, focusing on their declared advocacies, track record in public service and background of their party-list nominees,” it said. 

The Party-List System Act provides that elected officials from these groups must belong to “marginalized and underrepresented sectors, organizations and parties and who lack well-defined political constituencies but who could contribute to the formulation and enactment of appropriate legislation that will benefit the nation as a whole.” 

Party-list nominees constitute 20% of the total number of members of the House of Representatives.

The election watchdog urged the Commission on Elections to explain why the party-list system has become dominated by questionable groups. 

Comelec has yet to issue a response to these findings. — John Victor D. Ordoñez 

EU turns over P27-M IT equipment to Bangsamoro gov’t

BARMM

THE BANGSAMORO Autonomous Region in Muslim Mindanao (BARMM) recently received P27 million worth of computers and other equipment through a European Union (EU)-supported program for improving the regional government’s day-to-day operations and delivery of public services.

“We recognize the importance of evidence-based planning, decision-making, and strategic communication in this crucial stage of the transition period in BARMM,” Christoph Wagner, Head of Cooperation of the EU Delegation to the Philippines, said in a statement released on Thursday.

The equipment, including computers, laptops, printers, and other peripherals, were funded under the Support Bangsamoro Transition (SUBATRA) Programme, which is intended to strengthen institutional capacities within the new region.

“As we develop the capacities of our workforce with support from SUBATRA, we also equip them with tools that enable them to deliver their tasks efficiently and contribute to the success of the transition period,” said SUBATRA Programme Director Mohajirin Ali, who is also director-general of the Bangsamoro Planning and Development Authority.

Abramovich puts Chelsea soccer club up for sale as clamor for sanctions grows

LONDON — Russian businessman Roman Abramovich said on Wednesday he would sell Chelsea Football Club, 19 years after buying it and setting the team on a path to sporting glory, and promised to donate money from the sale to help victims of the war in Ukraine.

Amid growing calls for Abramovich to be hit by sanctions after Russia’s invasion of its neighbor, the metals magnate said in a statement that a sale was in the best interests of the reigning European and world soccer champions.

“In the current situation, I have therefore taken the decision to sell the club, as I believe this is in the best interest of the club, the fans, the employees, as well as the club’s sponsors and partners,” he said.

Abramovich said he would not ask for loans he has made to the Premier League club — reported to total £1.5 billion ($2.0 billion) — to be repaid to him and the sale would not be fast-tracked.

He has told his aides to set up a charitable foundation which would receive all net proceeds from the sale.

“The foundation will be for the benefit of all victims of the war in Ukraine,” Abramovich said in a statement.

“This includes providing critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery.”

Swiss business tycoon Hansjoerg Wyss told a newspaper that he was considering buying Chelsea from Abramovich who over the weekend said he was stepping back from running the club but made no mention of any plans to change its ownership.

“Abramovich is currently trying to sell all his villas in England. He also wants to get rid of Chelsea quickly now. I, along with three other people, received an offer on Tuesday to buy Chelsea from Abramovich,” Blick quoted Wyss as saying in an interview published on Wednesday.

TROPHY HAUL
Abramovich bought the West London club in 2003 for a reported £140 million and his investment contributed hugely to the most successful era in the team’s history as they won five Premier League titles, five FA Cups and the Champions League twice.

His purchase of the club helped transform the landscape of English football with Chelsea breaking the stranglehold of Manchester United, Arsenal and Liverpool.

They beat Brazilian side Palmeiras last month to become FIFA Club World Cup champions for the first time, having defeated Manchester City to become European champions last season.

“A seismic moment” was how BBC presenter and former England striker Gary Lineker described the announcement ahead of coverage of Chelsea’s FA Cup fifth-round tie at Luton Town.

Chelsea fans at Kenilworth Road chanted the Russian’s name before kickoff.

The 55-year-old, who has Israeli and Portuguese citizenship, became one of Russia’s most powerful businessmen by earning fabulous fortunes after the 1991 break-up of the Soviet Union. Forbes has put his net worth at $13.3 billion.

Since Moscow’s invasion of Ukraine, Britain has imposed sanctions on 12 members of the Russian and Belarusian elite, including Russian President Vladimir Putin, and at least 12 banks and companies.

British opposition Labour leader Keir Starmer asked Prime Minister Boris Johnson on Wednesday why there had not been sanctions against the Chelsea owner. Johnson, speaking in parliament, said he could not go into details on specific cases.

But Foreign Secretary Liz Truss has warned that she has drawn up a “hit list” of Russian oligarchs, and said the government would impose new sanctions on them every few weeks.

The Financial Times said the government was also making plans to seize property owned by Russian oligarchs.

David Davis, a veteran lawmaker in Johnson’s ruling Conservative Party, said the sale should be blocked however until Abramovich can prove the source of his wealth.

“We should do everything to prevent him selling off his UK assets,” Davis said on Twitter.

Abramovich said the decision to sell had been incredibly difficult.

“I hope that I will be able to visit Stamford Bridge one last time to say goodbye to all of you in person,” he said.

Abramovich turned his back on life in London in 2018 when the British government delayed renewing his visa following the attempted assassination of a former Russian double-agent in England, which it blamed on Moscow.

“It has been a privilege of a lifetime to be part of Chelsea FC and I am proud of all our joint achievements,” he said.

“Chelsea Football Club and its supporters will always be in my heart.” — Reuters

Lukaku seals FA Cup win on seismic day for Chelsea

LUTON, England — On a seismic day in the history of Chelsea Football Club it was perhaps fitting that Romelu Lukaku, their record signing, scored the winning goal in a 3-2 FA Cup fifth-round victory at second-tier Luton Town on Wednesday.

For most of a damp evening at Kenilworth Road it seemed the European and world champions were going to suffer a humiliating exit, hours after Russian businessman Roman Abramovich announced he was putting the club up for sale.

But Lukaku, the epitome of Chelsea’s spending power in the 19 years of Abramovich ownership, slid in to convert Timo Werner’s low cross in the 78th minute.

News of Abramovich’s decision, amid growing calls for him to be hit by sanctions after Russia’s invasion of Ukraine, had the packed crowd abuzz before kickoff.

The Chelsea fans chanting his name were silenced after two minutes when Luton defender Reece Burke planted a textbook glancing header into the corner from a corner.

Saul Niguez leveled after 27 minutes, but an intrepid Luton side restored their lead before half time as Harry Cornick beat Chelsea keeper Kepa Arrizabalaga.

Luton looked capable of holding on for a giant-killing but Werner equalized in the 67th minute after being picked out by a lofted pass from Ruben Loftus-Cheek.

Chelsea dominated the second half and Lukaku, out of favor of late despite his near 100 million-pound ($134 million) price tag, had the final say as the London side rebounded from losing on Sunday’s League Cup final tomove into the last eight.

Luton’s squad has a combined value of less than 20 million pounds, according to website transfermarkt, compared to Chelsea’s near one billion and Chelsea’s three scorers alone were signed for a total of around 160 million pounds.

Lukaku was bought twice with Abramovich’s money. He was sold for 28 million pounds to Everton in 2014 and bought back for more than three times that figure.

Such eye-watering figures are why Abramovich’s announcement on Wednesday sent shockwaves through English football.

Manager Thomas Tuchel, who just over a year ago became the 11th full-time manager in the Abramovich era, said he had found out the news not long before the kickoff.

“We heard the rumors throughout the day and the TV is on in the hotel and the guys talk about it, so yeah it is big news,” the German told the BBC.

Asked if it was the right decision, Tuchel added: “I think every decision he takes is the right decision. It’s his choice, it’s his club, and it’s not on me to comment.”

Despite all the distractions, the game itself was a classic Cup tie with Luton, a club on the up again after tough times, giving Chelsea a mighty scare. — Reuters

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