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The purpose of the purpose clause

As businesses strive to survive the economic impact of the pandemic, diversification is one of the options commonly considered. However, before pursuing a new income stream, corporations should check whether a new or additional business activity falls within the limits of its corporate purpose or powers.

Under the Doctrine of Limited Capacity, a corporation can only exercise powers that are express, implied, or incidental to its existence. Express powers are those conferred by law and stated in a company’s Articles of Incorporation (AoI), particularly in the “purpose clause.” The purpose clause generally limits what a corporation can do. Exceptions are implied and incidental powers which can be inferred, necessary, or consequential to the exercise of the express powers.

Ideally, a corporation should operate within the limits of its corporate purpose. Otherwise, acts that go beyond its powers (“ultra vires”), depending on the nature of act, are either void (if illegal), or voidable unless ratified by the stockholders. In exercising its regulatory powers, the Securities and Exchange Commission (SEC) may also impose sanctions such as fines against the corporation for ultra vires acts that affect the public.

In case of doubt, the corporation may seek formal confirmation from the SEC on whether or not a new purpose or activity is covered by its purpose clause. Through two opinions issued, the SEC had the occasion to clarify whether the envisioned additional activities of corporations in connection with retail trade are within the ambit of their corporate franchise. The first involves a repairs and maintenance company contemplating entering the retail trade; the second is a retail company that sought confirmation prior to conducting business via an online platform.

SALE OF SPARE PARTS BY A REPAIR AND MAINTENANCE COMPANY
According to the SEC, the sale of spare parts and other materials necessary for repair services does not fall within the concept of retail trade as it is merely incidental to repair and maintenance services, and not being pursued as an independ ent business. Moreover, the corporation’s sale of motorbikes to the general public is not considered retail if made only: (a) through only a single sales outlet at the existing service center located at the principal office where motorbikes are assembled; or (b) to the government and its agencies. This is in accordance with the Implementing Rules and Regulations (IRR) of the Retail Trade Law.

Moreover, the sale of products to industrial/entity users is not considered retail if the latter use such products to render services to the general public or produce/manufacture goods for sale. Lastly, sales that are limited to qualified employees are not considered retail provided that the products sold are not also offered to the general public.

The determination of whether a proposed sale activity qualifies as retail trade is particularly crucial for corporations with foreign stockholders. Currently, retail trade is generally reserved to Filipinos, and only admits foreign participation upon meeting a substantial investment requirement. Note, however, that there are proposals to liberalize retail trade and these bills are currently pending with Congress.

ONLINE SELLING
Retail companies are now leaning towards the use of electronic channels. As confirmed in a ruling issued by the SEC, retailers need not amend their AoI to engage in online selling.

“Retail trade” is defined as an act, occupation, or calling of habitually selling direct to the general public merchandise, commodities or goods for consumption. The Retail Trade Law does not distinguish retail trade carried through physical stores and those conducted through online channels. As such, for as long as the corporation is authorized to engage in retail, it may do so using any means or mode.

At most, the act of online selling can be considered a new mode of delivering retail services and could  appropriately be considered as necessary or incidental to the powers of the corporation. According to the SEC, it is legal to “stretch” the purpose clause to cover new and unexpected situations, especially those that arise from doubts created by poor craftsmanship, lack of foresight, or occurrence of events that were unforeseeable at the time when the purpose clause was drafted. However, in case the situation is reversed, such as when the proposed business activity is explicitly outside the scope of the purpose clause, or impossible to be impliedly included within the ambit of the purpose clause, the AoI should be amended.

This confirmation from the SEC is relevant and useful in view of the increased number of retail companies intending or currently offering their products online as part of the new normal.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Aimee Rose DG Dela Cruz is a senior manager with the Tax Services Group of Isla Lipana & Co., the Philippine member firm of the PwC network.

(02) 8 845-27 28

aimee.rose.d.dela.cruz@pwc.com

Miami closes in on Finals berth

Behind 20-year-old rookie Tyler Herro’s 37

ROOKIE Tyler Herro — 20 years old — scored a career-high 37 points, Jimmy Butler added 24, and the Heat held off the Boston Celtics 112-109 in Game 4 of the Eastern Conference finals Wednesday night near Orlando, moving Miami within one win of an NBA Finals berth.

Herro made 14 of 21 shots off the bench to continue his dynamic playoff run as the Heat grabbed a 3-1 advantage in the best-of-seven series. Goran Dragic had 22 points, and Bam Adebayo added 20 points and 12 rebounds.

“Just trying to get a rhythm going early,” said Herro, whose 37 points are the second most in a playoff game for a player 20 or younger (Magic Johnson, 42). “Once you see a couple shots go down, the rest of the game is easier for you. Tonight was definitely a good night.”

Jayson Tatum led the Celtics with 28 points, all coming in the second half, and Jaylen Brown had 21. Kemba Walker scored 20, Gordon Hayward did 14, and Marcus Smart had 10 points and 11 assists.

Miami will get the chance to close out the series in Game 5 on Friday (Saturday, Manila time).

Unlike in each of the first three games, when the Heat fell behind by double digits, Miami opened up a 58-46 lead early in the third quarter. Prior to that run, the Heat’s largest lead of the series was eight. Tatum, scoreless on six shots in the first half, came to life with 16 points in the period as the Celtics got within 77-76 entering the fourth.

“I wasn’t aggressive enough,” said Tatum of his slow start. “I had to play better.”

Boston surged ahead for the first time since 11:05 of the second quarter on a Daniel Theis dunk with 8:51 to go in the game. An Adebayo basket and five points from Herro to reach 30 on the night put Miami up 91-85.

“Not too many people get an opportunity to make it this far in the playoffs and be in a game like this, but for him, it’s another day in the office,” said Butler of Herro. “… He’s been doing it all year long. To him, there’s no pressure or anything. He’s just going to keep playing basketball the right way.”

The Heat upped their advantage to 98-90 on Herro’s fifth 3-pointer with 4:09 left. Brown hit a trey and Smart added a layup to get the Celtics within three, but Dragic and Butler each made short buckets to reset the margin to seven.

After Tatum hit a trey, Dragic responded from deep and Herro added a layup to put Miami up by nine with 56.2 seconds remaining. Boston got within three again on a Brown 3-pointer with 16 seconds to go, but free throws by Herro and Butler helped Miami hold on.

Hayward hit a pair of free throws to tie the score at 40 with 3:38 left in the first half. The Heat responded with a 10-4 run to lead 50-44 at the break.

The Celtics committed 11 of their 19 turnovers in the first half.

“We’ve got to do a better job of handling the ball and taking care of it,” said coach Brad Stevens. — Reuters

PBA scrimmages, restart of season get IATF approval

By Michael Angelo S. Murillo, Senior Reporter

Philippine Basketball Association action is set to come back beginning next month after the government approved the league’s request to hold a tournament “bubble” and resume its currently suspended season.

The PBA on Thursday said the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) gave a “provisional approval” for the league to proceed with its planned bubble in Clark City in Angeles, Pampanga, as well as 5-on-5 scrimmages in the lead-up to the resumption.

“We’re happy and we’re ready to go,” said PBA chairman Ricky Vargas in the impromptu online press conference announcing the long-awaited development.

Mr. Vargas, who represents the TNT KaTropa, was joined in the press conference by PBA Commissioner Willie Marcial, Bases Conversion and Development Corp. (BCDA) chief and IATF official Vince Dizon and Clark Development Corporation (CDC) president Noel Manankil.

The league suspended it Season 45 in March when the coronavirus pandemic started to make its presence felt in the country.

Now given the nod to resume, the PBA is preparing to send member teams to Clark City to begin their preparations for the restart, targeted to kick off on Oct. 11.

The first batch of teams will leave on Sept. 28 while the second batch departs the next day.

The teams underwent swab testing this week with the Magnolia Hotshots, Meralco Bolts, Phoenix Fuel Masters, TNT KaTropa and Terra Firma Dyip having their tests on Wednesday and the Alaska Aces, Blackwater Bossing, Northport Batang Pier, NLEX Road Warriors, Rain or Shine Elasto Painters, Barangay Ginebra Kings and San Miguel Beermen on Thursday.

Upon entry to the bubble, the teams will once again go through swab testing and wait for the result at Quest Hotel, the official home of the league during the tournament.

Once they get negative results, the teams can then proceed to do 5-on-5 scrimmages at the official training and games venue — Angeles University Foundation.

The PBA thanked Mr. Dizon, who made the presentation at the IATF which was presided by the task force’s co-chairman Secretary Karlo Nograles, in behalf of the pro league.

The BCDA chief and Mr. Manankil said their respective agencies will do their share in making the PBA restart a success, including providing proper coronavirus testing and ensuring the bubble will be held in a safe environment.

Under the bubble setup, which is similar to that employed in the National Basketball Association, players, coaches, and staff of the teams and the league will be holed up in one location for the duration of the tournament and will be shuttled to and from the hotel and the playing venue.

It will be a compressed tournament for the PBA, lasting only two months and will feature two games daily. And the league expects to crown a champion by the second week of December.

Casimero has a lot going for him against Micah — analyst

By Michael Angelo S. Murillo, Seniuor Reporter

WORLD BOXING ORGANIZATION (WBO) bantamweight champion John Riel Casimero of the Philippines is set to defend his title this weekend against Duke Micah of Ghana in a fight that the Filipino should like his chances in, according to a local fight analyst.

The Casimero-Micah clash is set for Sunday (Manila time) and happening at the Mohegan Sun Arena in Connecticut in the United States.

Ormoc, Leyte native Casimero (29-4, 20 KOs) was supposed to meet undefeated Japanese Naoya Inoue before the coronavirus pandemic cancelled the marquee showdown, leaving Mr. Casimero’s camp to deal with Mr. Micah (24-0, 19 KOs) instead.

For local fight analyst Nissi Icasiano, while Mr. Micah presents a challenge, he is not Mr. Inoue and may have a tough time against a fighter with the experience of Mr. Casimero.

“To me, Mr. Micah doesn’t appear to be a threat like Inoue. Though he got heavy hands, which is something that Mr. Casimero cannot take for granted, Mr. Micah lacks lateral movement, making him an easy target for Mr. Casimero. He moves in one direction and doesn’t have a footwork to offset the pesky and awkward style of the Filipino. It’s interesting as to how Mr. Micah will react if he starts to box backwards, which is something that I haven’t seen from him since 2017 when he started fighting in the United States,” said Mr. Icasiano in an interview with BusinessWorld.

“I am not convinced that Mr. Micah is ready to face a champion like Mr. Casimero who has won titles in three different weight classes. He has yet to possess that much-needed wealth of experience and even the wares to strut on the championship stage. It’s possible that Mr. Casimero can wrap it up within five to six rounds,” he added.

Mr. Casimero, who is signed with Manny Pacquiao’s MP Promotions, has been in the United States since March preparing for his title defense initially against Mr. Inoue.

Despite the long wait though, Mr. Icasiano said he does not see it as a problem because of the kind of work ethic Mr. Casimero and his camp has.  

“I don’t think the long wait will affect Mr. Casimero. He is in great shape since March. He never missed a beat in training camp. Plus, the Filipino has Ángel “Memo” Heredia to monitor the peak of his performance as well as his weight,” the analyst said.

But while Mr. Casimero has a lot going for him in his upcoming fight, Mr. Icasiano cautioned against the Filipino letting his guard down, more so since the outcome of the fight against Mr. Micah could dictate things for him moving forward.

“Though Mr. Micah has nothing to lose on paper, Mr. Casimero is in a must-win situation if he wants to secure a date with Inoue, Luis Nery (Mexico), or Guillermo Rigondeaux (Cuba) early next year,” the analyst said.

Mr. Casimero enters this weekend’s title bout riding a five-fight winning streak, the last one coming in November last year over South African Zolani Tete where he won the WBO bantamweight title by technical knockout in the third round.

Ghanaian Micah, meanwhile, last fought in July 2019, beating Puerto Rican Janiel Rivers by unanimous decision.

Teams preparing to enter PBA bubble in Clark

WHILE they are still awaiting government approval of the Philippine Basketball Association’s  (PBA) request to resume its currently suspended season, the 12 competing teams of the league are already girding for entry into the tournament “bubble” which could happen next week.

As part of their preparations for playing in the bubble which would take place at Clark City in Angeles, Pampanga, teams underwent swab testing this week.

The Magnolia Hotshots, Meralco Bolts, Phoenix Fuel Masters, TNT KaTropa, and Terra Firma Dyid had their tests on Wednesday while the Alaska Aces, Blackwater Bossing, Northport Batang Pier, NLEX Road Warriors, Rain or Shine Elasto Painters, Barangay Ginebra Kings, and San Miguel Beermen had theirs on Thursday.

Following the testing, players and team officials are restricted to their homes for the next five days until their scheduled departure for Clark next week to get going with their scrimmages.

The first batch of teams to leave for the bubble is targeted to do so on Sept. 28, while the second batch departs the next day.

The tournament bubble, now set to begin anywhere between Oct. 9 to 13, however, still depends on the approval of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) of the league’s request to resume its season.

The PBA has already sent letters of request for its return push, the response of which it is expecting anytime soon.

Entering the bubble, league stakeholders admit that it would be a challenge and much sacrifice is expected from them to make the season restart a success.

“It (bubble) will show how professional we are. We have to do our best and show what we can do out of our comfort zone,” San Miguel coach Leo Austria was quoted as saying by the official PBA website.

He was seconded by Alaska coach Jeff Cariaso, saying, “Guys are professionals. For us to be able to continue and go through this conference, they’re gonna have to really sacrifice.”

The league said it will be doing everything it can to ensure that all bases are covered for the bubble setup to make it comfortable to all concerned.

In return, the PBA just wants to get the full commitment of the players, coaches and staff to follow the set of health and safety protocols.

“If we maintain the ‘bubble’ I think there’s nothing to worry about,” said Dr. Raul Canlas, the league’s medical consultant.

Under the bubble setup, which is similar to that employed in the National Basketball Association, players, coaches, and staff of the teams and the league will be holed up in one location for the duration of the tournament and will be shuttled to and from the hotel and the playing venue.

Games will be played at the Angeles University Foundation while the teams will be staying in the nearby Quest Hotel.

It will be a compressed tournament for the PBA, lasting only two months and will feature two games daily. And the league expects to crown a champion by the second week of December.

The league suspended it Season 45 in March when the coronavirus pandemic started to make its presence felt in the country. — Michael Angelo S. Murillo

Local badminton federation supports new variation of the sport

The Philippine Badminton Association (PBA) is throwing its support to a new variation of the sport — air badminton.

Developed by the Badminton World Federation (BWF), air badminton, as opposed to that played indoors, can be played on any surface, be it on sand, grass, or cement.

“Air badminton is the newest game in badminton. It’s our outdoor game. Mainly, the purpose of this is to make badminton more accessible to everyone. Some say badminton is an outdoor sport turned indoor but that is not the case,” Badminton Asia’s Regional Development Officer for South East Asia Ian Piencenaves said in a release.

Air badminton makes use of the airshuttle, which was launched by the BWF last year. It is made of plastic instead of feathers and weighs three grams heavier than the regular shuttle, weighing at eight grams. Moreover, the design of the airshuttle goes with the wind, making the games faster and more dynamic.

Rackets used will be the same with that used for indoors but the string tension must be increased to higher than the recommended 18 to 20 pounds for optimum game play.

Though using the same dimensions of the indoor court, the front area of the court near the net will be a no-zone, prohibiting drop shots.

Another addition air badminton will bring is a triples event, especially in the sand variation.

Seeing the potential of air badminton in the Philippine setting, the PBA said it will be active in promoting the sport in different parts of the country.

“If basketball has 3×3 and volleyball has beach volleyball, this is badminton’s answer to it,” said PBA secretary-general Christopher Quimpo.

“Air badminton can be played on cement, grass, or sand so the venue could be anywhere from the beach, football fields, or even in parking lots,” he added.

In pushing for air badminton, the PBA will distribute airshuttles and the new net system to schools across the country.

The federation is also planning to hold air badminton tournaments down the line. – MASM

US lawmakers seek end to Philippine military aid

By Charmaine A. Tadalan, Reporter

TWENTY-FIVE United States lawmakers have filed a bill that seeks to suspend police and military financial assistance to the Philippines as human rights violations are expected to worsen under the Southeast Asian nation’s expanded anti-terror law.

“Across the Philippines, Rodrigo Duterte’s brutal regime is using the pretext of a so-called Anti-Terrorism Law to ramp up efforts targeting labor organizers, workers and political opponents,” US Rep. Susan Wild said as she introduced the bill in plenary. A video of the session was posted on her Facebook page.

“We cannot ignore these abhorrent abuses, nor allow our foreign assistance to be used for the repression of basic rights and dignity,” she said. Philippine funding will be blocked until it meets a set of criteria on human rights, she added.

Among those who co-sponsored the proposed Philippine Human Rights Act were Reps. Jim Costa, Zoe Lofgren, Debra A. Haaland, Janice D. Schakowsky, Ro Khanna, James P. McGovern, Bobby. Rush, Henry C. Johnson, Jr., Andy Levin and Barbara Lee.

The Philippine law allows an anti-terror Council made up of Cabinet officials to perform acts that are otherwise reserved for courts, such as ordering the arrest of suspected terrorists. It also allows the state to keep a suspect in jail without an arrest warrant for 14 days from three days before.

It also considers attacks that cause death or serious injury, extensive damage to property and manufacture, possession, acquisition, transport and supply of weapons or explosives as terrorist acts.

Presidential spokesman Harry L. Roque, Jr. belittled the measure, saying it probably won’t get passed. He cited the “close friendship” between Mr. Duterte and US President Donald Trump and the cooperation between the two nations.

Philippine senators said the US bill might violate the visiting forces agreement (VFA) between the United States and Philippines.

“The bill will not only be our loss but theirs as well, considering that a major part of the security assistance being extended to the Philippines is used to combat terrorism, which knows no borders and timing,” Senator Panfilo M. Lacson said in a statement.

“They may have to resolve that as a legal issue in their deliberations.”

Senate President Vicente C. Sotto III said the Philippines should reconsider the VFA — a two-decade military deal on the deployment of troops for war games — if the US bill gets approved.

The Philippines got $267.75 million in US military funding between 2016 and 2019, Foreign Affairs Secretary Teodoro L. Locsin, Jr. told the Senate in February. He added that the US had planned to allocate $200 million more in military aid until 2021.

Mr. Duterte suspended Philippine withdrawal from the defense pact amid a global coronavirus pandemic.

Meanwhile, human rights advocates supported the US proposal that was drafted in coordination with Filipino-American community.

“We must condemn it, and do every single thing within our power to stop it,” Shane Larson, senior director for Government Affairs and Policy at Communications Workers of America, said in a statement.

“That starts with mobilizing US lawmakers to approve legislation like the Philippine Human Rights Act,” according to the statement that was also signed by Malaya Movement, the International Coalition for Human Rights in the Philippines and Kabataan Alliance.

The US Senate earlier approved a resolution calling on the Philippine government to release Senator Leila M. de Lima and drop criminal charges against Maria A. Ressa, founder of  news website Rappler which is critical of the government.

The chamber also condemned the Philippine government for state-sanctioned extrajudicial killings by police and other armed individuals in the war on drugs.

Ms. de Lima, a staunch critic of President Rodrigo R. Duterte’s war on drugs who has been detained since February 2017 for drug trafficking, is a “prisoner of conscience, detained solely on account of her political views and the legitimate exercise of her freedom of expression,” according to US Senate Resolution 142.

The lawmaker was indicted for allegedly conspiring to commit illegal drug trading inside the national penitentiary when she was the justice secretary.

The US Senate body also called the arrest of Rappler Executive Editor Maria A. Ressa for cyberlibel and tax-related charges “part of a pattern of weaponizing the rule of law to repress independent media.”

It also called on Mr. Trump to sanction law enforcers and other Philippine officials responsible for drug-related killings and Ms. De Lima’s arrest and detention. These include revoking their US visas and freezing their assets.

US lawmakers also included a provision in their 2020 budget law that bans the entry of Philippine officials involved in Ms. de Lima’s detention.

The Philippines should recognize human rights defenders and their work and allow them to operate freely without fear of reprisal and guarantee press freedom, according to the resolution.

Mr. Duterte on Wednesday defended his deadly war on drugs before the United Nations (UN), accusing some groups of trying to “weaponize” human rights to discredit him.

“The Philippines will continue to protect the human rights of its people especially from the scourge of illegal drugs, criminality and terrorism,” he said in a speech before a virtual roster of world leaders at the UN General Assembly.

Duterte had in the past threatened to cut ties with the UN and European Union, accusing these of interference.

More than 7,000 drug suspects have died under Mr. Duterte’s anti-drug campaign, according to police data, but human rights groups have placed the number at almost 30,000.

Coronavirus cases near 300,000; death toll rises to 5,127

THE DEPARTMENT of Health (DoH) reported 2,180 coronavirus infections on Thursday, bringing the total to 296,755.

The death toll rose to 5,127 after 36 more patients died, while recoveries increased by 580 to 231,928, it said in a bulletin.

There were 59,700 active cases, 86.6% of which were mild, 9.2% did not show symptoms, 1.3% were severe and 2.9% were critical.

Metro Manila reported the highest number of new cases with 802, followed by Laguna with 292, Batangas with 152, Cavite with 144 and Negros Occidental with 87.

Of the new deaths, 15 came from Metro Manila, seven each from Western and Central Visayas, and two from the Calabarzon region, the agency said.

The Ilocos Region, Central Luzon, Zamboanga Peninsula, Soccsksargen region reported one death each. One returning migrant worker also died, it said.

More than 3.2 million people have been tested for the virus, DoH said.

Meanwhile, business groups asked the government to suspend the Data Privacy Act, which protects patient confidentiality during the pandemic, to save part of the P5-billion budget for contact tracing.

“Reverse the process by encouraging infected people to come out in the open,” four business groups said in a Sept. 21 letter to an inter-agency task force against the coronavirus.

“We emphasize that COVID is not a disease that we should be ashamed of. In fact, we need to treat voluntary disclosures as heroes and life savers.”

Representatives from the Philippine Chamber of Commerce and Industry, Philippine Silk Road International Chamber of Commerce, Employers Confederation of the Philippines and Philippine Exporters Confederation, Inc. signed the letter.

They said P1 billion in funding could instead go to repurposing schools in Metro Manila as quarantine facilities.

National Privacy Commissioner Raymund E. Liboro in a statement said there was no scientific basis backing the naming of infected individuals as an effective public health response.

“Science and medical ethics dictate that publicly naming COVID-infected individuals does not help in decreasing the transmission of infection and is counterproductive,” he said.

He said data privacy helps build trust with patients, who will then provide more accurate information.

“The call by certain business quarters to suspend the Data Privacy Act  to publicly identify COVID-positive individuals is anti-poor, bereft of science and ethics,” he added. — Vann Marlo M. Villegas and Jenina P. Ibañez

Anti-graft court failed to fast-track cases vs officials — World Bank

THE COUNTRY’S anti-graft court has failed to fast-track trials against high-ranking state officials in the past four decades partly due to limitations of the Philippine Ombudsman, according to the World Bank.

In a report on government effectiveness and transparency released on Wednesday, the multilateral bank said special anti-corruption courts would fail without political commitment.

“Without such a commitment, the potential for improvements through purely technical approaches is marginal at best, leading to a gap between the beautiful laws on the books and the weak implementation on the ground,” the World Bank said.

Results on the ground have not materialized in the Philippines, it added.

The Philippines’ Sandiganbayan is the oldest specialized anti-corruption court in the world, the lender said, noting that it has been operating since 1979 without interruption.

The court was created to expedite corruption cases against high-ranking government officials. It exclusively handles corruption cases involving a sufficiently large amount of money.

The Office of the Ombudsman, where complaints are filed, brings cases to the Sandiganbayan after investigation.

“The main declared rationale in creating Sandiganbayan was to expedite anti-corruption cases,” the multilateral bank said. “They have struggled to meet that objective.” 

It cited “substantial inefficiencies and delays in deciding anti-corruption cases, in part due to limitations at the Office of the Ombudsman.”

Justice institutions across the world should improve their performance in the fight against corruption both inside and outside their offices, it said.

“The global report highlights the importance of complimenting the traditional methods of dealing with corruption with advanced ones like GovTech and e-procurement to address corruption, even in the most challenging and fragile environments,” Ed Olowo-Okere, World Bank global director for governance, said in a statement.

Meanwhile, the Supreme Court on Thursday said it has no funding for so-called judges-at-large under its budget for next year. The Judiciary budget for next year, as proposed under the National Expenditure Program, removed funding for judges-at-large.

The 2020 national budget provided P126.47 million for 50 judges, but the budget item was not carried in its P43.54 billion allocation for 2021, according to Court Administrator Jose Midas P. Marquez.

Senate Minority Leader Franklin M. Drilon questioned the lack of funding, arguing that it is unconstitutional.

“I think we should make sure that… that these are not budget items that the judiciary should not plea for because this is a matter of right,” Mr. Drilon said during the hearing.

“They are entitled to this. Hindi naman tama yan because that is part of the fiscal autonomy outlined in our constitution that we would be violative of the constitution.”

The 1987 Constitution provided, under Section 10 of Article 8, that the salary of the Chief Justice, Associate Justices and judges of lower courts should be fixed and should not be decreased. — Beatrice M. Laforga and Charmaine A. Tadalan

Congressman seeks to postpone 2022 elections

A CONGRESSMAN on Thursday asked election officials to consider deferring the national elections less than two years from now, which effectively extends President Rodrigo R. Duterte’s six-year term, if the coronavirus disease 2019 (COVID-19) pandemic drags on.

Pampanga Rep. Mikey Arroyo, son of former President Gloria Macapagal Arroyo who is an ally of Mr. Duterte, told a House of Representatives budget hearing that coronavirus fears might affect voter turnout.

Commission on Elections Chairman Sheriff M. Abas said the President and Congress should decide on the matter. He added that the election body had created a committee that will prepare for 2022 elections in case the pandemic continues.

The six-year term of Mr. Duterte, who is barred by law from seeking reelection, will end in 2022.

Party-list Rep. Arlene Brosas said she and other minority lawmakers would oppose any moves to postpone the elections.

The 1987 Constitution, the fruit of an uprising that ended the dictator Ferdinand E. Marcos’s two-decade rule, bars term extensions, she said by telephone.

Also during the hearing, Comelec spokesman James Jimenez urged congressmen to restore their original budget so they can buy more voting machines. The Budget department more than halved the agency’s budget for next year to 14.565 billion.

The poll body might allow the online filing of certificates of candidacies of politicians, Comelec Deputy Executive Director Bartolome J. Sinocruz, Jr. told the hearing. — Kyle Aristophere T. Atienza

Regional Updates (09/24/20)

Akbayan asks SC to cite DENR for contempt over Manila Bay project

AKBAYAN CITIZENS’ Action Party asked the Supreme Court to cite the Department of Environment and Natural Resources (DENR) in contempt for dumping crushed dolomite along Manila Bay to create a “white sand” effect. In its motion-in-intervention, Akbayan said DENR’s project violates its continuing mandate to rehabilitate the bay. The party cites the ecological impact and health hazards of the material. “In truth, the artificial beach enhancement project does nothing to enhance the environmental integrity of Manila Bay. What is worse is the high probability that this costly cosmetic project might actually do more harm than good, both to the coastal marine environment and the residents of the Manila Bay area,” it said. In a separate motion, Akbayan asked the court to allow it to intervene and immediately convene the Manila Bay Advisory Committee headed by the chief justice. — Vann Marlo M. Villegas

Iloilo City reverts to stricter quarantine rules

MAYOR JERRY P. Treñas has ordered the implementation of stricter quarantine protocols starting Friday even as Iloilo City’s lockdown status has yet to be changed by the national inter-agency task force handling the coronavirus response. “We need to think fast, decide fast and act fast,” he said in a statement on Thursday, citing the recommendation of the city’s own coronavirus disease 2019 (COVID-19) local task force. “We will put into place all protocols for GCQ (general community quarantine) under our Executive Order,” he said, while awaiting approval and an official announcement from the national team, which has sole authority for quarantine level declarations. The city is currently under the more relaxed modified GCQ. The protocols include the reimposition of liquor ban, curfew from 8 p.m. to 4 a.m., prohibition of social gatherings “of any kind.” Barangay officials are also ordered to step up monitoring of people in their communities who are showing COVID-19 symptoms for immediate referral to health authorities for isolation and testing. The entire city hall office is closed from Sept. 23-25 as all workers undergo testing. As of Sept. 22, the city recorded 2,062 cases with 1,590 recoveries and 36 deaths. Of the 436 active cases, 105 are in hospital while 274 are in a quarantine facility.

Corn farmers affected by pest, Taal eruption get assistance

AGRICULTURAL INPUTS worth  P1.14 million were recently distributed to corn farmers affected by the fall armyworm pest and the Taal Volcano eruption in CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon) Region. The Department of Agriculture (DA) regional office said the inputs included hybrid glutinous corn seeds, hybrid yellow corn seeds, fertilizer, insecticides, and fall armyworm pheromone lure. The aid is under the DA’s regional corn and cassava program that aims to boost production and improve the income of farmers. Citing the United Nations-Food and Agriculture Organization, the DA said pheromone traps can determine the presence and build-up of the fall-armyworm pest in a specific area. Fall armyworm larva feeds on corn, rice, and other crops. The pest was first reported in June 2019 in Piat, Cagayan Province. — Revin Mikhael D. Ochave

Nationwide round-up

Anti-red tape office reports over 60% resolution rate

THE ANTI-RED Tape Authority (ARTA) on Thursday said over 60% of 3,964  cases filed have been resolved. In a briefing on Thursday, ARTA Director General Jeremiah B. Belgica said 2,425 complaints were closed, meaning the agencies concerned “followed, released, and streamlined” their system. Mr. Belgica said they are working to close the remaining cases. For “worst case scenarios,” Mr. Belgica said ARTA will file cases against erring officials before the Ombudsman, adding that a set of complaints will be brought on Friday. He declined to name the officials. ARTA also presented new guidelines on issuing permits considering new health protocols, including reduction of the required signatories and allowing e-signatures. — Gillian M. Cortez 

Ex-Ombudsman Morales disagrees with Martires’ SALN policy

OMBUDSMAN SAMUEL R. Martires should prioritize the concerns of the public, not of politicians, his predecessor said on Thursday. “If it turns out that the SALN (State of Assets, Liabilities, and Net Worth) has been weaponized by the requester or if the person who requested it uses it against the morals of public policy, the person whose SALN was requested can file a case against the requester. It is the concern of the politician to fault the request if the requested SALN is being used against morals or public policy,” former Ombudsman Conchita Carpio-Morales said in an interview over ANC. The former anti-graft chief said that Mr. Martires’ order to tighten public access to the records of public servants goes against a Constitutional principle that ensures transparency among government officials. “It goes against the principle of the Constitution that public office is a public trust,” she said. — Kyle Aristophere T. Atienza

Sea dispute won’t be resolved anytime soon — Roque

THE PHILIPPINE government does not expect an immediate resolution of the South China Sea dispute despite President Rodrigo R. Duterte invoking the Hague ruling in its favor during his first United Nations (UN) address early this week. Palace Spokesperson Harry L. Roque, in a briefing on Thursday, said the longtime dispute involving several countries is not likely to get settled soon. “We will for the time being set this aside because I don’t think the resolution of the territorial dispute is forthcoming in our lifetime,” he said. In the meantime, the Duterte administration will focus on trade and investment ties, Mr. Roque said. At Tuesday’s UN General Assembly, Mr. Duterte cited the arbitral win of the Philippines and said any attempt to undermine it will be rejected. This was the first time Mr. Duterte publicly acknowledged the ruling. — Gillian M. Cortez 

Rapid antigen test kit set for pilot use

THE USE of rapid antigen test kits for the coronavirus disease 2019 (COVID-19) will be piloted in Baguio City, which is set to partially reopen to domestic tourists on Oct. 1. The COVID-19 national inter-agency task force issued Resolution No. 73 on Thursday allowing the use of the antigen test kits for domestic tourists, visitors with essential travel, and contacts of confirmed COVID-19 patients in areas with a clustering of cases. “The Department of Health, the Department of Tourism, and the World Health Organization are enjoined to continue providing assistance to the City of Baguio for this undertaking,” the resolution said. In a briefing on Thursday, Palace Spokesperson Harry L. Roque said rapid antigen test kits have a faster turnaround time and are cheaper than RT-PCR testing, currently the only recognized accurate procedure. — Gillian M. Cortez

Group appeals for release of political prisoner with sick 3-month child

A SUPPORT group for families of political prisoners again appealed for the temporary release of detained activist Reina Mae Nasino on “humanitarian grounds” after her three-month old child tested positive for coronavirus disease 2019 (COVID-19). “We call on the government to extend compassion for Reina Mae and her baby girl, River. Let her take care of her sick child. The lethal COVID-19 poses serious threats, especially for a nearly 3-month-old baby who wasn’t able to be breastfed enough after being separated from her mother less than two months ago,” the group KAPATID said in a statement. Ms. Nasino, currently detained at the Manila City Jail Female Dormitory, gave birth on July 1 and was separated from her baby in August following a Manila court order that denied her plea to breastfeed her daughter for a year. — Kyle Aristophere T. Atienza

Biodiversity bureau appeals for help in bird protection as migration season starts;  warns vs hunting, avian flu threat

PAMBC-DAVAO REGION

THE ENVIRONMENT department’s Biodiversity Management Bureau called on the public to help protect passing birds as the southward migration season starts. At the same time, the bureau warned against getting in contact with the birds, both live and dead, as some species could be carriers of avian flu, which poses a threat to the country’s poultry industry. Environment Assistant Secretary Ricardo L. Calderon said in an advisory. Mr. Calderon, director of the biodiversity bureau, also reminded the public of the penalties against hunting these migrating birds as provided under Republic Act 9147, the Wildlife Resources Conservation and Protection Act. Violators face imprisonment of two to four years, and fines of up to P300,000. The southward migration starts in September and the birds take the northern path back to their breeding grounds by March. “These birds stop briefly along wetlands — swamps, marches, intertidal and coastal areas, rivers, ponds, lakes, as well as forests throughout the country, to rest and refuel… We call on the public to help protect these birds,” Mr. Calderon said.

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