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Nationwide round-up

Jeepney drivers ask High Court to void transport suspension policies

A GROUP of jeepney drivers asked the Supreme Court to nullify several transport policies that suspended their operations during the lockdown due to the coronavirus pandemic. In its 65-page petition, members and officials of the National Confederation of Transport Workers Union questioned before the Supreme Court the issuances of the Land Transportation Franchise and Regulatory Board (LTFRB), Department of Transportation, and the inter-agency task force (IATF) handling the pandemic response. They asked the court to conduct oral arguments on the lawsuit. The respondents are Health Secretary and IATF chairperson Francisco T. Duque III, Cabinet Secretary and IATF co-chair Karlo Alexei B. Nograles, LTFRB Chairperson Martin B. Delgra; and Transport Secretary Arthur P. Tugade. The union said the government officials “arbitrarily and unreasonably confiscated” their right to work, and failed to establish the connection between the prohibition and mitigation of the effects of the outbreak. They also questioned the agencies’ authority to issue the questioned policies. The lockdown, which suspended all public transport operations, was imposed mid-March. Modernized public utility jeepneys were allowed to resume operations on June 22 while traditional jeepneys on June 28. “Clearly, this is a form of discrimination against traditional jeepneys without establishing sufficient distinction among the other PUVs (public utility vehicles) mentioned,” the petitioners said. — Vann Marlo M. Villegas

Duterte asks telecom firms to ‘do a better job’

PRESIDENT RODRIGO R. Duterte called on telecommunication companies to “do a better job” in delivering internet services given the higher demand for digital connectivity amid the coronavirus crisis. “May I just appeal to these telecommunications, can you do a better job?” He said in his Monday night address. Mr. Duterte previously lashed out at telecommunication firms for the country’s poor connection, which is among the slowest and most expensive in the world. Companies, on the other hand, pointed to government red tape for the slow expansion of infrastructure such as setting up cell towers. The President has since softened his tone and recently ordered local government units to improve the ease of doing business. “Let the telcos do their job, allow them to build the structures, towers if you may, so they can allow this,” he said. — Gillian M. Cortez

BuCor told to explain delay in medicine procurement for inmates

JUSTICE SECRETARY Menardo I. Guevarra is awaiting the Bureau of Corrections’ (BuCor) explanation on the delay of medicine procurement for prisoners in 2019 that was flagged by state auditors. “I will certainly look into this,” Mr. Guevarra told reporters in a Viber message. “I’ll wait for the BuCor explanation.” The Commission on Audit (CoA) reported that BuCor’s procurement process exceeded the maximum allowable time of three months. CoA said prisoners “were deprived of the much needed medical care due to long procurement processing of drugs and medicines requirement” of the New Bilibid Prison Hospital, Correctional Institute for Women, and Reception and Diagnostic Center. “It should be noted that medical care for PDLs (persons deprived of liberty) as part of the mandate of the Bureau requires the effective and efficient safekeeping of the inmates,” CoA said. BuCor cited the “GCTA (Good Conduct Time Allowance) fiasco” as the reason why medicine projects were not prioritized, according to CoA. The GCTA controversy in 2019 was prompted by news on the early release of convicted rapist and murderer Antonio Sanchez due supposedly to good conduct.  In the same year, the prison chief was sacked over the illegal release of heinous crimes convicts and was replaced by Gerald Q. Bantag. — Vann Marlo M. Villegas

UP-OCTA Research team cautions vs industries’ return to 100% capacity operations

THE UNIVERSITY of the Philippines (UP)-OCTA Research team cautioned against allowing industries to return to operations at 100% capacity, saying the country’s coronavirus outbreak is not yet under a manageable level. “The curve is only beginning to flatten… but still not in the ideal to release restrictions,” UP-OCTA researcher Butch Ong said in a Malacañang briefing Tuesday. He explained that while the curve — determined by the hospital utilization rate versus the number of positive cases — is improving, there is still a high probability for a sudden increase. “Now that we see that the hospital utilization rate is going down already, our curve in a way is flattened… but it can still increase at any time,” Mr. Ong said. He added that the only way the curve can be controlled is maintaining a reproduction rate of around 0.5. The country’s reproduction rate is at 0.7. Mr. Ong said the suggestion of Trade Secretary Ramon M. Lopez to allow some industries to operate at 100% capacity should be accompanied by strict health protocols. “If the minimal health standards cannot be guaranteed, then we should not be at 100%,” he said. — Gillian M. Cortez 

Duterte is not resigning, his spokesperson says

PRESIDENT RODRIGO R. Duterte will carry on with his term until 2022, according to his spokesperson, despite the country’s leader saying he has offered to resign after expressing frustration over corruption. “I offered to resign as President… kasi nagsasawa na ako (because I am sick of it),” Mr. Duterte said in a Monday night televised talk. On Tuesday, Palace Spokesperson Harry L. Roque said during his daily briefing, “Mukhang hindi naman dahil gagamitin nga niya iyong natitira niyang dalawang taon para linisin ang gobyerno (It looks like he will not because  he will use the remaining two years to clean the government).” Mr. Duterte also said on Monday that he will ask Congress to help fight corruption. He previously called on lawmakers to create oversight committees to help address anomalies in government. — Gillian M. Cortez

Slower recovery expected for countries faltering on COVID-19

ECONOMIC recovery in the Asia Pacific will take divergent paths, with countries failing to contain their outbreaks such as India and the Philippines expected to take longer to revive, S&P Global Ratings said.

S&P Global said the result might be a so-called “K-shaped recovery” with the charts of some economies tracking downward while the rest show gains.

“Emerging markets in the region, including India and the Philippines, continue to struggle to contain the outbreak and its economic impact,” it said in a note Tuesday.

Even economies that had contained the virus earlier are also facing setbacks with case counts rising again in the absence of a vaccine, S&P Global said.

“The longer economies operate at a subnormal levels, the sharper the pain and credit impact across corporates, households, and governments,” it said.

Last week, S&P said it expects Philippine gross domestic product to contract by 9.5% this year, downgrading from the minus 3% estimate it issued in June and the minus 4.5% to minus 6.6% range provided by the government. S&P expects the Asia-Pacific economy to contract by 2% in 2020 as the pandemic lingers on.

“Another obstacle for a stronger economic recovery is households’ repayment capacity, which is also weakening. The blow to employment and household incomes could take longer to… restore in many markets,” it said.

In the Philippines, the jobless rate was 10% in July, narrowing from the record 17.7% in April but still much higher than the year-earlier 5.4%, according to the Philippine Statistics Authority. The July rate is equivalent to around 4.571 million jobless workers.

More than 195,000 overseas Filipino workers have also been repatriated as of Sept. 27.

“We expect employment to return to pre-COVID trends only by 2022, at the earliest, in most cases. This will put a lid on wages, drag on consumer spending, and keep inflation low across the region, S&P Global said.

Even with no end to the pandemic in sight, relief measures like temporary tax cuts, wage subsidies, and loan moratoriums have been tapering off and will mean banks, businesses, and households will need to “make hard decisions,” S&P Global said.

On the monetary side, S&P expects central banks have no choice but to “keep policy exceptionally easy” as credit becomes harder to come by.

“For some emerging markets, the challenge will be to maintain sufficient support and policy credibility at the same time,” it said.

The Bangko Sentral ng Pilipinas has reduced benchmark policy rates by 175 bps, reducing the overnight reverse repurchase, lending, and deposit facilities to record lows of 2.25%, 2.75%, and 1.75%, respectively.

According to a BusinessWorld poll last week, 14 out of 15 economists expect the Monetary Board to keep rates steady Thursday to leave some ammunition in reserve in case the recovery lags, while also allowing prior easing moves to cycle through the financial system.

In terms of ratings, S&P Global said negative rating actions “have tapered for the region in the past quarter with no defaults by rated issuers.”

“However, the net negative outlook bias worsened to nearly one-fifth of ratings. Consequently, the likelihood of downgrades and defaults persists,” it said.

S&P affirmed its BBB+ long-term credit rating with a stable outlook for the Philippines in May, projecting a recovery next year. — Luz Wendy T. Noble

Power sector ordered to offer more grace periods after Bayanihan II passage

THE Department of Energy (DoE) has ordered the extension of grace periods and staggered payment schemes for power after the government maintained its declaration of a state of calamity due to the global coronavirus pandemic.

Republic Act No. 11494, or the Bayanihan to Recover as One Act (Bayanihan II), requires the entire electricity value chain — from generation companies to power utilities — to offer at least a 30-day grace period and allow installment payments of electricity bills falling within the period of a community quarantine.

The advisory dated Sept. 23 covers fuel and resource suppliers, generation companies, independent power producers, the state-owned Power Sector Assets and Liabilities Management Corp., the National Grid Corp. of the Philippines, the Independent Electricity Market Operator of the Philippines, and retail electricity suppliers.

Energy Secretary Alfonso G. Cusi urged consumers “who are able to pay” to settle their bills within the original due dates.

“(T)o lessen the impact and help manage the cash flow in the energy supply chain, we reiterate our earlier call for the immediate and proportionate remittance of payments received to the respective creditors and suppliers,” he said.

The DoE appealed to local government units to provide the same extensions in the payments of applicable taxes, fees, and dues by owners of energy facilities.

The Energy Regulatory Commission has yet to issue a similar advisory to distribution utilities for their customers.

The first Bayanihan law also required the industry to offer grace periods and staggered payment schemes. Currently, electric utilities are still implementing the installment set-up for arrears incurred during the lockdown period until the end of the year. — Adam J. Ang

National ID rollout to focus on areas with few active COVID-19 cases

THE GOVERNMENT will focus on 32 provinces and cities with low active case counts for the coronavirus when pre-registration for the National ID system starts next week, economic planners said.

In an online briefing Tuesday, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the government has narrowed down the priority provinces to minimize the risk of further spreading coronavirus disease 2019 (COVID-19).

“With respect to the 32 priority provinces, we are looking at those with low number of active cases of COVID-19 kasi (because) we want this initiative to be safe for both the public and then also for the PSA (Philippine Statistics Authority) personnel,” she said.

At the same briefing, Interior and Local Government Undersecretary Jonathan E. Malaya said the 32 areas are: Ilocos Sur, La Union, Pangasinan, Cagayan, Isabela, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales, Batangas, Cavite, Laguna, Quezon province, Rizal, Albay, Camarines Sur, Masbate, Antique, Capiz, Iloilo City, Negros Occidental, Bohol, Cebu City, Negros Oriental, Leyte, Compostella Valley, Davao del Sur, Davao del Norte, Davao Occidental and Tawi-Tawi.

“We will proceed with the rollout of pre-registration this first week of October, tuloy tuloy na po ito (we will proceed until) we are able to initially register 5 million pre-registrants and 5 million registrants before the end of the year and the rest of the country will be done next year,” Mr. Malaya added.

Ms. Edillon said in a text message after the briefing that full registration, which includes biometrics, will still depend on the status of the pandemic.

“The target is to start it next week. Actually, for the pre-registration, the target is to cover up to 9 million heads of household; of course, it will have to be recalibrated depending on the COVID situation in the area,” she said.

She said the plan is to have heads of household pre-register without requiring them to give biometrics such as fingerprints and iris scans out of safety considerations.

Pre-registration, however, will yield more data on socio-demographics ahead of full registration, she said.

She said the data to be gathered could include bank accounts, to make distribution of government aid and other cash transfers easier.

The National ID program, formally known as the Philippine Identification System, has been given a P4.1-billion budget for next year, according to the Budget department.

The government wants to register 40 million heads of household next year and another 40 million in 2022, to cover “most” Filipinos before the administration’s six-year term ends.

The program was authorized under Republic Act No. 11055 passed in August 2018. — Beatrice M. Laforga

Accommodation industry restarts Oct. 1 with ‘safe staycation’ campaign targeted at locals

By Zsarlene B. Chua, Senior Reporter

HOTELS AND RESORTS in many areas will be allowed to accept guests again starting Oct. 1, with the Department of Tourism (DoT) hoping to restart operations geared towards domestic holidaymakers with a “safe staycation” campaign.

“We welcome the approval of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) to permit ‘staycations’ or a minimum of an overnight stay for leisure purposes in GCQ (general community quarantine) areas. This decision adds to the DoT’s drive to slowly but safely resume tourism in the country and finally bring back jobs to our workers in the industry,” Tourism Secretary Bernadette Romulo-Puyat said in a statement.

The IATF-EID approved staycations in September for cities and destinations under GCQ, a looser form of lockdown, starting next month. Ms. Puyat then signed an administrative order allowing staycations “for persons of all ages, except those with underlying medical conditions,” on Sept. 29.

Metro Manila and Cebu City are among the locations under GCQ.

The DoT guidelines require each staycation guest to present a negative result from a rapid antigen test “conducted on the same day of check-in,” and that the accommodations must secure a certificate of authority to operate for staycations from the tourism department prior to accepting guests.

A rapid antigen test, according to the World Health Organization, is a type of rapid diagnostic test that detects the presence of viral proteins (antigens) expressed by the COVID-19 (coronavirus disease 2019) virus via a sample from a person’s respiratory tract. It takes about 30 minutes for the test results to appear and such tests are said to be best used to identify acute or early infection.

The tourism establishments are also required to follow guidelines on guest handling including the maximum number of guests per room, as well as health and safety standards for ancillary establishments.

The tourism department may also allow guests to use ancillary facilities such as gyms, swimming pools, restaurants, and other food and beverage outlets, except for bars which remain prohibited in GCQ areas.   

“As safety remains the DoT’s top priority, establishments that will offer staycation services will be strictly monitored. They will be required to keep a record of occupancy and submit it every 10th of the month to the relevant DoT regional office and local government unit tourism office for data analysis purposes,” Ms. Puyat said.

Staycation packages must also be “appropriate for the present market demands and conditions,” and must “strictly adhere to the existing health and safety guidelines” of the tourism department, the Department of Trade and Industry, and the Department of Health and rules and regulations imposed by the local government where the establishment is located.

Transactions must be contactless and cashless to promote minimal physical contact among staff and guests.

It should be noted that prior to the administrative order, Ms. Puyat said that hotels and accommodations which serve as quarantine facilities for returning overseas Filipinos (ROFs) and overseas Filipino workers (OFWs) cannot offer staycations though they can apply to shift from being a quarantine facility into a staycation one.

Accommodation establishments are also limited to 50% occupancy.

According to the Bureau of Quarantine website, there are 312 establishments which are currently in use as quarantine facilities.

While quarantine establishments are allowed to apply to offer staycations, some such as Golden Phoenix Hotel Manila, opted to remain a quarantine hotel.

“For the meantime, (Golden Phoenix will remain) a quarantine hotel but if (Metro Manila) will transition to MGCQ (modified general community quarantine, the loosest form of quarantine in the Philippines) I will suggest to management that we separate the area or floors for quarantine and for staycations. If (DoT) will allow that,” Christine Urbanozo-Ibarreta, director of sales and marketing of Golden Phoenix Hotel Manila, said in a virtual interview Monday.

Ms. Urbanozo-Ibarreta said that they have a lot of returning overseas Filipinos and overseas Filipino workers quarantining in their hotel, located near SM Mall of Asia in Pasay City, and “we are okay for the meantime [with that market].”

“OFWs and the ROFs are more sustainable income providers than staycations. With staycations, you take a calculated risk,” Margie Munsayac, VP for sales and marketing at Bluewater Resorts, said in an interview.

Both Ms. Munsayac and Ms. Urbanozo-Ibarreta noted that guests undergoing quarantine stay longer than those having staycations. Current guidelines, they say, allow quarantine guests to stay for three days and two nights while they wait for the results of their COVID-19 tests.

As one of the industries which suffered the most under the pandemic, hotels, according to Ms. Munsayac and Ms. Urbanozo-Ibarreta, expect a recovery by the second half of 2021, largely sustained by the domestic market.

The Hotel Sales and Marketing Association — which Ms. Munsayac chairmans while Ms. Urbanozo-Ibarreta serves as president — recently held a September SOS sale featuring deals at more than 120 hotels and resorts. The vouchers, on sale until Sept. 30, are valid until September 2021. This sale, they said, was to jumpstart the recovery of the embattled sector and encourage travelers to plan ahead and travel when they think it’s safe to do so.

The sale was successful and might be an annual event, according to Ms. Urbanozo-Ibarreta.

Senate panel debates red-tape curtailment powers beyond emergency period

A SENATE committee on Tuesday weighed the President’s legal authority to expedite the issuance of permits and sanction officials who fail to do so in deliberations over a bill seeking to endow the Anti-Red Tape Authority (ARTA) with the power to issue subpoenas or find respondents in contempt.

The Committee on Civil Service, Government Reorganization and Professional Regulation was discussing Senate Bill No. 1844, and how ARTA’s powers stem from Presidential authority.

The bill states that the President has sufficient power to suspend and dismiss government officials for unjustifiably blocking the progress of applications, but minority senators sought to clarify whether such powers apply only to states of emergency.

“This bill is a recognition of that executive power, except we have given him the power to suspend licenses, which may be pursuant to certain laws, just to suspend temporarily during the period of emergency,” Minority Leader Franklin M. Drilon said.

The bill also allows the President to suspend or waive requirements in securing documents at times of emergency.

In its position paper, ARTA proposed the grant of subpoena and contempt powers already exercised by other constitutional bodies.

The ARTA needs to “make the bureaucracy effective. It’s not a law and order problem, it’s not a matter of making ARTA a quasi-judicial body, power to issue subpoena, cite contempt, employ underground agents, assets,” Mr. Drilon said.

Sa akin, ang ARTA ay dapat tumulong sa bureaucracy (In my view, ARTA is there to help make the bureaucracy more effective),” he aid.

Senator Sherwin T. Gatchalian expressed support for the grant of powers to ARTA.

“The creation of ARTA is a good step in fighting red tape… without giving him the right power and tools, it will be inutile,” he said during the hearing.

“That’s why, I’ve read the position paper of ARTA and I agree on their recommendations especially giving them subpoena and contempt powers.”

The measure was filed after President Rodrigo R. Duterte last week consulted Congressional leaders on amendments to the Ease of Doing Business Law.

The American Chamber of Commerce of the Philippines (AmCham) said it recommends a sunset clause to ensure policy continuity should the state of emergency be lifted.

“We’re concerned about the sunset because hopefully, the state of emergency will end sooner or later, but what is the accomplishment of having suspended something during the state of emergency that doesn’t continue,” AmCham Senior Advisor John D. Forbes said in the hearing. — Charmaine A. Tadalan

14 swine fever outbreaks reported in Mindanao

THE PHILIPPINES has logged 14 new African Swine Fever (ASF) outbreaks, according to the latest report by the Bureau of Animal Industry (BAI).

In the latest report to the World Organization for Animal Health, BAI Director Ronnie D. Domingo said that an additional 7,518 pigs were culled due to the new outbreaks.

Among ASF-affected areas, Magsaysay, Davao del Sur accounted for 1,536 of the culled animals, followed by Magpet, North Cotabato with 1,345 and Sta. Cruz, Davao del Sur at 1,198.

At the low end of the cull totals were Makilala, North Cotabato (45), followed by Davao City (59), and Glan, Sarangani (81).

Other areas where ASF was also detected were Sta. Maria, Jose Abad Santos, Bansalan, and Matanao, Davao del Sur; Panabo City, Davao del Norte; and President Roxas, Arakan, and Kidapawan City, North Cotabato.

In a virtual briefing Tuesday, Mr. Domingo said that as of Sept. 18, around 344,888 hogs have been culled as a precautionary measure since the disease first surfaced in the Philippines in 2019.

He added that backyard raisers that surrender their hogs will receive P5,000 per head as indemnification.

Separately, Mr. Domingo said the national pork inventory in cold storage was estimated at 46,249 metric tons (MT) as of Sept. 21, including about 37,848 MT worth of imports.

Mr. Domingo said inventories were higher than the year-earlier total of 39,120 MT.

“The country has enough pork,” Mr. Domingo said.

Mr. Domingo said the dressed chicken inventory in cold storage was 73,127 MT on Sept. 21, with imported chicken accounting for 39,484 MT. — Revin Mikhael D. Ochave

EU notes low GSP+ utilization by electronics industry

REUTERS

A TRADE official from the European Union (EU) said Philippine electronics exporters need to maximize the trade perks they are entitled to in shipping products to Europe, noting that the industry is using only a little over half its entitlements.

Trade Counsellor Maurizio Cellini of the EU Delegation to the Philippines said electronics exporters have been benefiting from the EU’s Generalized Scheme of Preferences Plus (GSP+).

Under GSP+ 6,274 Philippine products enjoy zero-tariff entry to the European Union provided the country adheres to 27 core international conventions that include human and labor rights, environmental protection, and good governance.

“Take advantage of the EU GSP+, which as you know backs labor and environmental sustainability and respect for human rights — and invest in the sector especially on high value products,” Mr. Cellini said at a SEIPI webinar on Tuesday.

He said that the Philippine electronics exports sector must invest in micro and nano technology to retain a competitive advantage.

“(Electronics remain) the top-traded goods between the Philippines and the European Union,” he said, noting that the electronics industry had a GSP+ utilization rate of 56% last year.

“We all know very well that electronics, and particularly semiconductors, and their value chain underpin innovation and competitiveness in all major sectors of the economy.”

The European Parliament has asked the European Commission to start the process for temporarily withdrawing GSP+ in the Philippines, after the government failed to improve the human rights situation.

Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said without GSP+, the cost of Philippine electronics exports will be higher compared with other countries enjoying the incentive.

“As such we will be more expensive,” he said in a mobile message on Tuesday.

He said during the webinar that the industry is still experiencing a contraction due to the pandemic.

“There are challenges that we need to overcome: the stability of the supply chain, the (lack of) public transportation,” he said. — Jenina P. Ibañez

NEA says P9B needed for full electrification

THE National Electrification Administration (NEA) said it needs a P9-billion budget to help achieve the target of full national electrification by 2022.

“NEA will appreciate a favorable action from Congress as initiated by the Power Bloc for the restoration of the original request for subsidy if only to fast track the national government’s Total Electrification Program,” NEA Administrator Edgardo R. Masongsong said in a statement late Monday.

Last week, House legislators belonging to the so-called Power bloc filed a resolution seeking to restore the P9 billion for next year, following a redirection of budget funds to the pandemic containment effort.

The government recommended a P1.8-billion budget for NEA in 2021, against the agency’s P10.8-billion proposal.

The proposal includes P1.6 billion for the Sitio Electrification Program and P200 million for an emergency and resiliency fund for electric cooperatives.

According to NEA, the Budget department-proposed electrification fund will only energize 1,085 rural villages or sitios. About 12,000 villages, equivalent to 1.7 million households, are still without access to electricity.

The NEA’s proposed budget will energize 3,915 more sitios, as well as “enhance” the grid connections of 74 barangays while also funding 13 submarine cable projects, the Power bloc said.

“To be able to fully and effectively implement the directive of President Duterte as well as to finally provide access to electricity for all Filipinos, the NEA should be given the full amount it has proposed,” they said in their resolution. House Resolution No. 1245 was written by Philreca Party-list Representative Presley C. De Jesus, APEC Rep. Sergio C. Dagooc, Recoboda Rep. Godofredo N. Guya, and Ako Padayon Pilipino Rep. Adriano A. Ebcas.

The NEA, which is tasked with energizing the countryside, has brought power to 123,726 rural villages, or 84% of its targeted 147,989 households, as of June. This is equivalent to 13.85 million consumer connections. — Adam J. Ang

True COVID-19 global death toll may be way over one million

THE WORLD officially recorded 1 million deaths from coronavirus disease 2019 (COVID-19) in one of the most sobering milestones of the pandemic, but the real tally might be almost double that.

Actual fatalities from the worst outbreak in a century may be closer to 1.8 million — a toll that could grow to as high as 3 million by the end of the year, according to Alan Lopez, a laureate professor and director of the University of Melbourne’s global burden of disease group. The coronavirus’s rapid spread and ability to transmit in people who show no signs of the disease have enabled it to outrun measures to accurately quantify cases through widespread diagnostic testing.

“One million deaths has meaning by itself, but the question is whether it’s true,” Mr. Lopez said in an interview before the tally was reached. “It’s fair to say that the 1 million deaths, as shocking as it sounds, is probably an underestimate — a significant underestimate.”

Even in countries with sophisticated health systems, mortality is difficult to accurately gauge. Tens of thousands of probable COVID-19 deaths in the U.S. weren’t captured by official statistics between March and May, a study in July found, frustrating efforts to track and mitigate the pandemic’s progression.

The dearth of accurate data undermines the ability of governments to implement timely strategies and policies to protect public health and promote economic recovery. If the mortality from COVID-19 reaches 3 million as Mr. Lopez predicted, it would rank the disease among the world’s worst killers. An undercount in deaths could also give some people a false sense of security, and may allow governments to downplay the virus and overlook the pandemic’s burden.

NO SYSTEM
India has confirmed more than 6 million COVID-19 cases, but accounts for only about 95,000 of the 1 million reported deaths worldwide, according to data collected by Johns Hopkins University. The country, which has the highest number of infections after the U.S., lacks a reliable national vital statistics registration system to track deaths in real time.

Meanwhile, in Indiana in the U.S. researchers found that although nursing home residents weren’t routinely tested for the virus, they represented 55% of the state’s COVID-19 deaths.

“Yes, cases are reported daily everywhere, but as soon as you get to the next tier down, like how many were admitted to hospitals, there have just been huge gaps in the data,” said Christopher J. Murray, director of the Institute for Health Metrics and Evaluation at the University of Washington in Seattle. Medical data, including duration of illness and symptoms, help to ascribe a probable cause of death, he said.

Patients with heart disease, diabetes, cancer and other chronic conditions are at greater risk of dying from COVID-19. Some governments, including Russia, are attributing the cause of deaths in some of these patients to the pre-existing condition, raising questions about the veracity of official mortality data.

WHO GUIDELINES
In July, Russia recorded 5,922 fatalities due to COVID-19. At least 4,157 other deaths were linked to the coronavirus, but not included in the tally because of how the nation defines such deaths. Overall, it recorded 29,925 more deaths in July than in the same month of 2019.

The WHO laid out guidance for classifying coronavirus deaths in June, advising countries to count fatalities if patients had symptoms of the disease regardless of whether they were a confirmed case, and unless there was a clear alternative cause. A COVID-19 fatality should be counted as such even if pre-existing conditions exacerbated the disease, said the organization. The U.S. Centers for Disease Control and Prevention released similar guidelines.

Still, it may take health workers certifying deaths time to adopt the methodology, the University of Melbourne’s Lopez said. His research has received funding by Bloomberg Philanthropies, set up by Michael Bloomberg, founder and majority owner of Bloomberg News’ parent Bloomberg LP.

“Doctors often are learning as they go along, so they’re not certifying all the deaths that are due to COVID as COVID deaths,” Mr. Lopez said.

Although the pandemic has altered mortality patterns worldwide, not all of the changes are a direct result of the pandemic, he said. Physical distancing measures may have reduced road fatalities and deaths caused by influenza. In Japan, which has been scrutinized for its lack of widespread testing and relatively lax containment efforts, deaths fell by 3.5% in May from a year earlier even as COVID-19 cases peaked.

“The pandemic actually works in contradictory ways to affect mortality,” Mr. Lopez said.

Likewise, the economic cost of the pandemic    which may top $35.3 trillion through 2025 — will be driven more by changes in people’s spending patterns than number of deaths and government-mandated “lockdown” measures, according to Warwick McKibbin, a professor of economics at the Australian National University and a non-resident senior fellow at the Brookings Institution in Washington.

“We estimate this outbreak is going to cost tens of trillions to the world economy,” Mr. McKibbin said in an interview. “The change in economic outcomes is caused by individuals changing their behavior, not because the government mandated a shutdown.”

Worldwide, the growth in the number of daily deaths has eased since spiking in March and April, helped by improved medical care and ways to treat the disease. But as resurgences flare in Europe and North America ahead of winter and the flu season, COVID-19 fatalities may rise sharply again. It took nine days for cases in the U.K. to double to 3,050 in mid September, compared with the previous doubling time of five weeks, the COVID-19 patients between ages 75 to 84 are 220 times more likely to die from the disease than 18-to-29-year-olds, according to the CDC. Seniors over 85 years have a 630 times higher risk of dying. The older age of fatal COVID-19 cases has made some people think “they’re old people, they’re going to die anyway,” said Michael Osterholm, an epidemiologist and director of the Center for Infectious Disease Research and Policy at the University of Minnesota.

“Critics say, well, ‘They’re old people anyway mostly. They’re going to die anyway.’”

“I have a really hard time with that,” Mr. Osterholm said in an interview. “That’s an unfortunate and very sad way to come to understand this pandemic. Many of those people who died are very important loved ones to so many of us that it’s hard to just dismiss it as it’s just a number.” — Bloomberg

Trump made $427M from The Apprentice

PRESIDENT Donald Trump earned $427 million from his role on the television show The Apprentice, and that program’s success also projected the false image of a successful real estate mogul, which eventually helped him win the White House, according to a new report by the New York Times.

Trump earned $197 million directly from the The Apprentice over 16 years, plus an additional $230 million from the licensing deals, sponsorships and seminars that came with his elevated profile, according to a New York Times report that looked at more than 20 years of the President’s tax records.

The cash infusion rescued his personal finances that were struggling as losses mounted from his Atlantic City casinos. He used the proceeds from his reality television star fame to finance a shopping spree of golf resorts, but then those lost money too, the newspaper reported on Monday night.

The Times first reported on Sunday that Trump had avoided paying income taxes for several years thanks to aggressive tax deductions and millions of dollars in losses from his golf course and casino businesses to offset his tax bills, while presenting himself as a billionaire real estate magnate.

Some of Trump’s years hosting The Apprentice on NBC were among the few years he reported positive tax income, the Times report said. Over the years, he made so much he paid a total of $70.1 million in income taxes, which was later refunded after Trump used an aggressive accounting move to offset that income with losses from his casinos. That refund is now under audit at the Internal Revenue Service (IRS), the newspaper said.

Judd Deere, a White House spokesman, told the Times that the latest article was “yet another politically motivated hit piece full of inaccurate smears” appearing “before a presidential debate.” — Bloomberg

Credit assistance programs available for exporter-MSMEs 

Micro, small, and medium enterprises (MSMEs) that have been affected by COVID-19 can avail of lending programs that aim to provide additional funds and loan restructuring under more flexible terms and conditions. — BW FILE PHOTO

Banks have lending programs designed to assist Filipino micro, small, and medium enterprises (MSMEs) that have been affected by COVID-19, reminded panelists in the Department of Trade and Industry-Export Marketing Bureau’s bank credit assistance webinar. 

“In good times, MSMEs have been the backbone of the economy,” said Rustico Noli D. Cruz, vice-president at the Development Bank of the Philippines (DBP) and head of its Program Development and Management I Department. “In bad times, give MSMEs more credit than they deserve—support and provide safety nets for them.” 

Government initiatives have been enacted to support this backbone threatening to be crushed by COVID-19. Among them are the I-RESCUE Lending Program of the Land Bank of the Philippines (LBP) and the RESPONSE (REhabilitation Support Program ON Severe Events) Program of DBP.

I-RESCUE
I-RESCUE is a lending program that aims to provide additional funds and loan restructuring under more flexible terms and conditions to eligible SMEs, cooperatives (co-ops), and microfinance institutions (MFIs). 

The interest rate for the Rehabilitation Credit Program for SMEs is 5% per annum fixed for 3 years. The penalty rate is 24% per annum with a flexible mode of payment. The interest rate for the Rehabilitation Credit Programs for Cooperatives and MFIs is the same. The penalty rate for co-ops, however, is 3% per annum with a 180-calendar day grace period. For MFIs, it’s 24% per annum with a 60-calendar day grace period.

The Rehabilitation through Loan Restructuring program has an interest rate similar to the above programs. Penalty is waived.

Applications are evaluated based on product viability and the 5Cs (character of borrower, capacity, capital, collateral, and conditions of market), said Generoso David, assistant vice-president and head of LBP’s Program Management Department 2. Borrowers are also entitled to other types of LBP assistance such as training. “We have a lot of lending programs for SMEs. These two are the most crucial for those coping with COVID-19,” he said.

The availability period for I-RESCUE is up to December 31 this year.

RESPONSE
RESPONSE likewise provides funding assistance to support MSME growth recovery and competitiveness. Eligible borrowers are public and private institutions. 

Up to 95% of the actual need is provided. The interest rate is fixed for 5 years; fees and other charges are waived. Loan deferment and loan restructuring are available for existing buyers. All projects are eligible except for those in the bank’s negative list (such as illegal activities). 

Mr. Cruz shared that DBP has newly approved loans of P1.04 billion. It also has a payment moratorium of up to six months to 726 borrowers totaling P21.04 billion. 

He remarked, however, that the bank welcomes Republic Act No. 11494, or the Bayanihan to Recover as One Act (Bayanihan II), because its resources are not inexhaustible. The said Act expands financial assistance packages to distressed sectors and small businesses. “We are rationalizing lending programs to maximize how to help the needs of priority sectors,” he said.

Forty-five working days is the standard processing time for loan approval for both LBP and DBP. Expect a shorter wait for smaller loans and less complex projects.

SECTOR-SPECIFIC ASSISTANCE
While LBP considers farmers and fisherfolk its high-valued borrowers, the bank also has programs that benefit other sectors, such as education. 

Its ACADEME Lending program, for instance, offers loans to schools at minimal interest rates. It also allows schools to give loans to students to discourage dropouts. Its I-STUDY program, meanwhile, targets students directly through its study now, pay later scheme. 

Another program—geared toward inventors with startups—is the iTECH lending program. “This is for inventors who would like to commercialize their invention. If we provide funding to commercialize these ventures and (we could use their inventions), it would be a great help to the country,” said Mr. David.

Both Mr. David and Mr. Cruz added that their respective banks are amending some of their lending programs in order to allow eligible MSMEs to borrow money sans collateral.

“We’re coming up with guidelines for collateral. It depends on the assessment of a project,” said DBP’s Mr. Cruz. “We offer loans without collateral if viability is high, in compliance with the Bayanihan law.” — Patricia B. Mirasol