How PSEi member stocks performed — May 14, 2021
Here’s a quick glance at how PSEi stocks fared on Friday, May 14, 2021.
PHL stocks to rise further on eased restrictions
STOCKS are expected to climb this week after the government eased quarantine restrictions in Metro Manila and its nearby provinces of Bulacan, Cavite, Laguna, and Rizal on the back of lower daily coronavirus cases in the country.
The Philippine Stock Exchange index (PSEi) went up by 32.96 points or 0.52% to close at 6,269.36 on Friday. Meanwhile, the broader all shares index declined by 7.02 points or 0.18% to end at 3,850.98. Week on week, the PSEi gained 10.65 points from its 6,258.71 finish on May 7.
AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said Friday was “the most interesting trading day due to the increased volatility” in the market. He said bargain hunters held off as they were expecting the weakness of the market after restrictions were extended until the end of the month.
“Buyers waited until selling pressure had subsided and prices were significantly lower, which coincidentally was right before trading ended,” Mr. Mangun said via e-mail on Friday. “Dismal economic figures, which were released [last] week, also contributed to the deterioration of the sentiment.”
President Rodrigo R. Duterte approved the recommendation of an interagency task force to place National Capital Region and the provinces of Bulacan, Cavite, Laguna and Rizal under a general community quarantine with heightened restrictions from May 15 to 31, presidential spokesman Herminio L. Roque, Jr. said in a statement on Thursday night.
Meanwhile, the country’s gross domestic product (GDP) fell by an annual 4.2% in the quarter ending March. This marked five consecutive quarters of GDP decline, marking the longest recession since the Marcos era.
“With the further easing of restrictions, we may see the market to recover somehow but it will continue its [volatility] after the release of strong US inflation figures last week,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Saturday.
“Any [sustained] inflationary pressures from the US will affect the global market including the Philippines,” Mr. Pangan added.
The US producer price index (PPI) rose 0.6% in April after surging 1.0% in March, Reuters reported. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March.
Meanwhile, AAA Southeast Equities Mr. Mangun said the recent downward trend of the PSEi may continue “until investors gain confidence that the economy would roar back to life.”
“[It] will only happen once the public health threat has been neutralized, mainly by developing herd immunity through mass vaccination. The PSEi’s next major support is at 6,000 which it could test in the coming trading days,” he said.
“Despite the lower prices, we encourage investors to start taking positions as the potential long-term upside of prices outweigh the potential downside risks in the short term,” Mr. Mangun added. — Keren Concepcion G. Valmonte with Reuters
Peso to strengthen vs dollar on remittances, central banks’ policies
THE PESO is expected to continue strengthening versus the dollar this week on expectations of continued easy monetary policy from the US central bank and the Bangko Sentral ng Pilipinas (BSP), as well as bets of improved remittance data.
The local unit closed at P47.81 per dollar on Friday, strengthening by 0.5 centavo from its P47.815 finish on Wednesday. Trading was suspended on Thursday in view of Eid’l Fitr.
Week on week, the peso also gained 4.5 centavos from its P47.855-per-dollar close on May 7.
The peso’s Friday finish was its best in more than four years or since Sept. 15, 2016, when it closed at P47.695 a dollar.
The local unit appreciated on Friday due to the continued weakness of the dollar against other currencies, a trader said in a text message.
The dollar weakened on signals from the US Federal Reserve that there would be no imminent move to tighten monetary policy, Reuters reported.
Federal Reserve Board member Christopher Waller on Friday said rates would not increase until policy makers see above target inflation for a long time or an excessively high inflation.
Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion attributed the peso’s strength last week to the BSP’s decision to continue supporting the economy by keeping interest rates low.
The BSP maintained the overnight reverse repurchase rate at a historic low of 2% on Wednesday. Both the lending and deposit rates were also kept at 2.5% and 1.5%, respectively.
For this week, Mr. Asuncion expects the peso to sustain its climb versus the dollar on expectations of upbeat remittance data.
The BSP is set to release March remittance data on Monday, May 17. Latest data showed cash remittances increased 5.1% to $2.477 billion in February from a year earlier, ending two consecutive months of annual contraction.
Mr. Asuncion said the market is also waiting for April balance of payments (BoP) data, which is scheduled for release on May 18, Tuesday.
The country’s BoP position in March stood at a $73-million deficit, a reversal of the $448-million surplus seen a year earlier but improving from the $2.019-billion gap in February.
This week, the trader expects the local unit to appreciate further and trade within the P47.50 to P47.75 levels versus the dollar, while Mr. Asuncion gave a forecast range of P47.65 to P47.95. — L.W.T. Noble with Reuters
Senate committee studying options to boost GUIDE funding
By Vann Marlo M. Villegas, Reporter
A SENATE committee is seeking to give Congress the option to increase the assistance to be provided to businesses affected by the pandemic, beyond the P10 billion currently being considered in current legislation.
Senator Sherwin T. Gatchalian said the senate banking committee retained the P10 billion to be provided to government financial institutions to assist businesses affected by the pandemic under the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.
“P10 billion pa rin siya (It’s still at P10 billion) because that’s the available cash and then Congress can add more,” Mr. Gatchalian, the vice chairman of the committee on Banks, Financial Institutions and Currencies, said in a phone interview.
“Ang importante dito (The important thing is), the special holding company (proposed in GUIDE) will be incorporated and then after that, Congress, because of its power of the purse… can add more,” he added. “So if it deems necessary to add more capital, it can add more capital.”
Mr. Gatchalian said the panel is hoping to sponsor the bill to the plenary session this week.
The committee also wants to waive transaction fees and documentary stamp tax for micro, small and medium enterprises seeking to borrow from government financial institutions.
“That’s approximately 20% of the borrowing cost, so malaking bagay ‘yan na mawe-waive siya (It would be a big thing if those were waived),” he said.
The measure will also authorize the incorporation of a special holding company that will invest in “strategically important companies,” or those employing many workers with extensive supply networks.
“The government now can invest in those companies for purposes for retaining employment, retaining their employees and for purposes of stabilizing the company until the pandemic ends,” he said.
GUIDE legislation provides P10 billion to government banks as assistance to businesses, with P2.5 billion allocated to the Development Bank of the Philippines and P7.5 billion to the Land Bank of the Philippines.
The amount will be invested in a special holding company which will lead the rehabilitation of distressed firms.
Mr. Gatchalian in March said the Senate is looking into increasing the P10 billion, calling it “miniscule” relative to the economic losses suffered by businesses.
The House of Representatives approved the GUIDE bill on third and final reading in March.
Congress will resume session on Monday and will adjourn on June 5.
Refinery output in 2020 falls on plant shutdowns
REFINERY OUTPUT in 2020 fell 42% to 5,504 million liters (ML) following refinery shutdowns by Petron Corp. and Pilipinas Shell Petroleum Corp., the Department of Energy (DoE) said in a report.
Petron temporarily halted operations at its 180,000 barrels per day (bpd) Bataan refinery in May, while Shell announced in August that it will be permanently closing its 110,000-bpd refinery in Batangas.
“Based on the actual reports of the local refiners… 2020 refinery production output of 5,504 ML was significantly down by 41.8%… Average refining output for the period was 15.04 ML per day,” the DoE-Oil Industry Management Bureau (OIMB) said in its year-end report which was posted on the energy department’s website last week.
The OIMB said it received notices of shutdown from Petron and Shell who cited lower fuel demand due to the public health emergency. Both companies said “there will not be any supply disruption as supply will be restored by finished product imports.”
The OIMB said Shell’s decision to permanently shutter its oil refinery has reduced the industry’s maximum distillation capacity to 180,000 bpd.
Shell said its Tabangao refinery will close due to weak regional refining margins, which worsened as a result of “demand destruction from the global health emergency.”
Last year, crude oil exports rose by more than 150% to 402 ML in 2019. “The increase is attributed to exported excess crude oil of Pilipinas Shell due to its closure, or conversion of its refinery,” the OIMB said in its report.
Refinery capacity utilization in 2020 stood at 33.6%, against 2019’s 58.8%.
Crude oil imports declined 45.7% to 5,238 ML in 2020 due to the idling of the refineries.
In its report, the OIMB said that Petron and Shell’s refineries accounted for 40.6% or 21,301 MB (thousand barrels) of the industry’s storage capacity.
“The remaining country storage capacities of 24,006 MB or 49 import terminals are capable to receive imported finished petroleum products while the 7,090 MB or 130 depots are distribution facilities or networks and owned by various downstream oil players,” the OIMB said. — Angelica Y. Yang
Gov’t agencies improve budget usage in April
GOVERNMENT AGENCIES raised their cash utilization rates to 89% in April, up from 63% a year earlier, according to the Department of Budget and Management (DBM).
The DBM said the National Government, local governments and state-owned firms used P1.082 trillion of the P1.219 trillion worth of notices of cash allocation (NCAs) issued to them in the first four months of the year, leaving P136.57 billion unused.
NCAs are a quarterly disbursement authority from the DBM issued to agencies, allowing the later to withdraw funds from the Treasury to support their spending needs.
“This improvement in NCA usage rate is an indication of the government’s faster cash utilization to mobilize its programs and projects,” Asian Institute of Management Economist John Paolo R. Rivera said via Viber on Sunday.
“This may have something to do with government taking steps to make improvements in its social amelioration programs, efforts to curb the impact of the pandemic, and execution of other pressing initiatives to boost spending during the ECQ (enhanced community quarantine) to at least mitigate its negative impact on the economy,” Mr. Rivera added.
Line departments used 85% or P699.97 billion in NCAs released to them as of April.
The Joint Legislative-Executive Councils recorded the top utilization rate of 97%, followed by the Energy department with 96%.
After the government placed Metro Manila and nearby provinces under lockdown last month, it provided one-time cash aid to affected poor households of P1,000 per person, up to P4,000 per household. The emergency cash aid program had a total budget of P23 billion.
The DBM had released P3.613 trillion or 80.2% of this year’s P4.5-trillion spending plan as of April. — Beatrice M. Laforga
GOCC regulator backs proposed dividend hike
THE Governance Commission for Government-Owned and -Controlled Corporations (GOCCs) said it supports a proposal to increase the dividend contributions of state-owned firms to 75% of their net profit from 50% currently.
“Governance Commission fully supports the joint efforts of the Executive and the Legislature to arrive at a stimulus package that provides substantial support to the economy in the midst of the pandemic, without compromising the government’s long-term debt sustainability,” the commission said in an e-mail last week.
“In these extraordinary times, the role of GOCCs as significant tools for economic development indeed becomes even more paramount,” it added.
Economic managers and legislators are currently working to finalize a third stimulus package to help the economy recover from the economic downturn. However, the Department of Finance (DoF) stipulated that any additional spending not exceed the deficit cap equivalent to 8.9% of gross domestic product.
The Department of Budget and Management has said that possible sources include early remittance of dividends from GOCCs and realignment of budget funds.
To fund the stimulus package, the DoF proposed last month to amend Republic Act No. 7656, which will increase the minimum dividend contribution of GOCCs to the National Government to 75% of earnings from 50%.
The DoF said these changes will cover the profits of GOCCs starting 2020.
BusinessWorld asked the council to comment on the impact on government revenue of the proposal but it had not responded at deadline time.
GOCCs remitted P21.44 billion in dividends to the Treasury in the first quarter of 2021. — Beatrice M. Laforga
House tax panel girds for ‘painful’ showdown on military pensions
THE HOUSE Committee on Ways and Means said its priorities on resuming session Monday include grappling with out-of-control pension liabilities for military and uniformed personnel (MUP).
In a statement Saturday, Committee Chairman Jose Ma. Clemente S. Salceda said: “MUP pension reform will be painful but crucial. It’s some pain now or very big pain in the future. The unfunded pension liabilities, according to the GSIS, amount to some P9.6 trillion based on 2019 data. It’s a serious threat to our economic prospects in the long term.”
Pension reform proposals are contained in House Bill No. 9271, or the Fiscal Framework for Military and Uniformed Personnel (MUP) Pensions.
Four tax other measures processed by the committee are up for plenary debate: House Bill 6135 or the proposed law Establishing The Fiscal Regime For The Mining Industry; House Bill 7881, or the proposed Ease of Paying Taxes Act; House Bill 6765, or the proposed Digital Economy Taxation Act of 2020; and a “general tax amnesty (measure) with automatic exchange of information.”
Mr. Salceda said priority legislation in the area of tax enforcements are measures addressing the illicit tobacco trade; sugar tax violations; agricultural trade anomalies; and the use of economic zones for smuggling.
Improving the tax payment process is expected to involve more Bureau of Internal Revenue use of Public Private Partnerships and overseas development assistance.
Mr. Salceda said the committee is also looking to work with the Department of Finance (DoF) on the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
“The DoF committed to an IRR date of May 17. I hope we get it by then, because CREATE is only really as good as implementation,” he said.
The House of Representatives overall is also pushing for the immediate passage of the proposed P405.6-billion economic stimulus package, known as the Bayanihan to Arise as One Bill or Bayanihan III. The bill has been approved by the House Committees on Social Services; Economic Affairs; and Ways and Means. It is up for referral to the Committee on Appropriations.
In a statement Sunday, Majority Leader Martin G. Romualdez said: “We only have three weeks to pass this vital measure that will help our fellow Filipinos who are all affected by the pandemic, and we are confident that before we adjourn, we will be able to pass the measure.”
Bayan Muna Representative Carlos Isagani T. Zarate said in a radio interview Sunday that with the passage of the bill, talks on how to fund it need to move forward. “We are looking at the NTF-ELCAC budget (National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) which could be discontinued by the executive to (generate) savings… there are also other large funds in infrastructure, in the Build, Build, Build. Those are not needed by our countrymen but food is.”
Legislators are also looking into increasing the dividend remittances of government-owned and -controlled corporations (GOCCs) as another funding source. A bill proposed by Mr. Salceda would revise the current law to temporarily increase GOCC dividends to 75% from 50%.
Mr. Romualdez said: “the House of Representatives will continue deliberating Resolution of Both Houses (RBH) Number 2 to amend the restrictive economic provisions of the Constitution.”
House Committee on Constitutional Amendments Chairman Alfredo A. Garbin, Jr. said it will push for this measure’s passage in plenary. The proposed changes are meant to revitalize the economy after the pandemic by inserting the phrase “unless otherwise provided by law” to economic provisions of the Constitution. This will give lawmakers authority to legislate the relaxation of economic restrictions.
“We still have seven interpellators. Hopefully before sine die adjournment, we will be able to vote on the measure on third reading,” Mr. Garbin said. — Gillian M. Cortez
No basis for proposed adjustments to rice import tariffs, farmers say
THE justification for lowering of tariff rates on imported rice under Executive Order (EO) No. 135 has no basis and is “deceptive,” because there is no current shortage of imported rice, the Federation of Free Farmers (FFF) said.
Raul Q. Montemayor, FFF National Manager, said in a statement Sunday that the EO amounts to a “cruel joke” on farmers, noting that importers are already free under Republic Act No. 11203 or the Rice Tariffication Law to import rice from any country as long as quarantine regulations.
“Aside from Vietnam and other ASEAN countries, we have been consistently importing from nine other countries, including India and Pakistan, and more recently China. Similarly, there is no urgent need to augment our rice supply,” Mr. Montemayor said.
“The Philippine Statistics Authority (PSA) pegged our March 1 national rice inventory at 2.08 million metric tons (MT), or only 4.5% lower than last year. This stock level will have already been augmented by the recent dry season harvest,” he added.
Late Saturday, the President’s spokesman Herminio L. Roque, Jr. announced that President Rodrigo R. Duterte signed EO 135 which lowered the tariff on rice imports to 35% from 40% for one year.
According to Mr. Roque, the move to lower rice tariffs is to “diversify the country’s market sources, augment rice supply, maintain affordable prices, and reduce pressure on inflation.”
In a separate statement Sunday, Samahang Industriya ng Agrikultura Chairman Rosendo O. So said the decision to lower rice tariffs should also have been evaluated by the Senate and the House of Representatives.
“EO 135 was issued while everyone else was working on the pork tariff compromise,” Mr. So said.
FFF’s Mr. Montemayor said that unlike pork, there is no emergency to be addressed in terms of rice supply. He also noted the timing of issuing EO 135 over the weekend, just before the resumption of Congress on May 17.
“This is another slap in the face of the legislature. The power of the President to adjust tariffs is an authority delegated by Congress to allow the executive primarily to address urgent problems when Congress is not in session,” Mr. Montemayor said.
PORK IMPORTS
On Saturday, Mr. Roque also announced that Mr. Duterte signed EO 134, which sets the tariff on pork imports within the minimum access volume (MAV) quota at 10% for three months and up to 15% in the following nine months. The order also sets the tariffs of pork imports exceeding the MAV quota at 20% for three months, rising to 25% in the succeeding nine months.
EO 134 increased the tariff rates set by EO 128, signed on April 7, which had lowered the tariff of pork imports within the quota to between 5% and 10%; for imports beyond the quota the rates were set at between 15% and 20%.
Before EO 128, in-quota pork imports paid 30% tariff while out-of-quota pork was charged 40%.
Mr. Duterte also signed EO 133, which raised the MAV allocation to 254,210 MT from the previous ceiling of 54,210 MT, and Proclamation No. 1143, which declared a state of calamity due to the African Swine Fever (ASF) outbreak.
Edwin G. Chen, Pork Producers Federation of the Philippines, Inc., said in a mobile phone message that the government still has a lot of work to do to help pork producers.
“There is still a lot of work (to be done) like the Agricultural Commodity Examination Area (ACEA) inspection facility and the use of calamity funds by local government units in controlling ASF,” Mr. Chen said.
He also cited the need for “strict biosecurity protocols for (animals) coming in for repopulation. Backyard hog raisers as well as commercial hog farms should adopt an elevated biosecurity protocol before we allow them to repopulate (their herds) to avoid recurrence and resurgence of ASF,” he added.
Jesus C. Cham, Meat Importers and Traders Association president, said in a mobile phone message that the adjustment in tariff rates will most likely result in higher retail prices.
“With the compromise raising duty rates and lowering MAV plus, going forward we will see higher landed costs. New arrivals will be subject to higher duty. Also, looser quarantine restrictions may see more demand and consumption. There will be more upward pressure on prices,” Mr. Cham said.
“Landed cost in the next three months will increase by 5%. I believe this can still be accommodated at current retail prices. After three months another 5% is added. However, this will happen around the ‘ber months.’ So, the outlook is increased demand and reduced supply. By that time the market will be more accepting of higher prices,” he added. — Revin Mikhael D. Ochave
Prioritizing the integrity agenda in times of uncertainty
Second of two parts
The difficulties of dealing with the pandemic have aggravated current integrity issues while presenting new ones for emerging markets all over the world. The emerging markets perspective of the EY Global Integrity Report, which surveyed more than 1,700 employees across all levels of large organizations in 21 emerging market countries, reveals that corruption and fraud remain major threats to long-term success for businesses in the wake of remote working conditions and regulatory scrutiny following the New Normal.
The Global Integrity Report, conducted by global market research agency Ipsos MORI, presented relevant insights into the ethical challenges the organizations faced. By considering how the respondents dealt with areas of risk, businesses may gain insights about how to overcome some of the challenges to post-pandemic recovery.
In the first part of this two-part article, we discussed the first of four key areas identified by the Integrity Report: prioritizing corporate integrity and encouraging the use of whistleblower channels. In this second part of the article, we discuss the need for an increased focus on data protection and cybersecurity, and the need to address integrity issues in third party service providers.
INCREASING FOCUS ON DATA PROTECTION AND CYBERSECURITY
Remote working during the pandemic has heightened the risk of cyber breaches, with more cyber criminals exploiting weak networks and targeting unsuspecting employees. The year 2020 saw a spike in ransomware and cyberattacks, infecting networks with malware and even selling fake COVID-19 treatments through phishing e-mails.
Data breaches can result in devastating financial and reputational consequences for an organization, making it imperative to prioritize data protection. The EY report encouragingly shares that 55% of emerging market companies address this by offering employee training on how to prevent security breaches, a higher value than the 45% of companies doing so in developed markets. Should a security breach occur, 42% have an incident response plan in place. Moreover, as much as 86% even share confidence that they are doing everything they can to protect the data of their customers.
With such high stakes, organizations should consider building a data privacy and protection framework guided and supported by the board. The increasingly sophisticated nature of cyberthreats and strict regulations result in the need to implement industry-leading practices and raise the bar to protect sensitive data. Companies can improve vigilance and identify issues by utilizing the latest technology, strengthening their virtual infrastructure, and raising cybersecurity and digital risk awareness among stakeholders. In addition, companies must consider developing thorough diagnostics scans, strong monitoring frameworks and incident response strategies.
ADDRESSING INTEGRITY ISSUES IN THIRD-PARTY SERVICE PROVIDERS
Though it is no mean feat to uphold integrity within an organization, external factors such as third-party partners can undermine existing efforts. The reputation of a retailer, for instance, will suffer greatly if one of its suppliers engages in malpractice, exploits loopholes, pays bribes, or engages in other similarly unethical behavior. These acts tarnish the reputation of the partnered retailer and subjects them to the high likelihood of financial loss, heavy penalties, or legal ramifications.
The integrity report reveals that emerging market companies are aware of this particular threat, but with only 35% showing confidence that their third-party partners operate with integrity. Businesses cannot afford to place just their supply chain partners under scrutiny — sources of third-party risk can be found in distributors, joint-venture partners, contractors and consultants. However, despite the added challenge of restricted operations, remote working and limited mobility, 31% of emerging market companies address this risk through training and processes that highlight third-party due diligence.
These challenging times pose an increased possibility of lapses in conducting due diligence, impeding internal reference checks, physical site visits and informal discussions that help identify potential gaps in conduct. However, this also gives companies the opportunity to reframe how they assess third-party risk. Digital solutions can be leveraged to streamline the assessment process, such as using data analytics to automate risk scoring and using automated dashboards for more efficient monitoring.
CHAMPIONING A CULTURE OF INTEGRITY
Risks to integrity have existed before and will persist beyond the pandemic. Employees may be tempted to risk the easy path regardless of accountability, cyberthreats increase in complexity and potential to expose vital data, and third-party risk creates more points of vulnerability in growing ecosystems.
The report proves that emerging market companies recognize these threats and are making progress in addressing them, but there is still much to do. Businesses must expand their scope of focus past traditional aspects of integrity such as fraud, corruption and bribery, and must include measures in environmental, social and governance (ESG) criteria. With more customers prioritizing businesses with ethically sound practices, it is more important than ever to champion a culture of integrity not just because it is the right thing to do, but to also create long-term value.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.
Roderick M. Vega is a Partner and the Forensic and Integrity Services (FIS) Leader of SGV & Co., and Dennis F. Antonio is an FIS Senior Manager of SGV & Co.
Terror list may affect future peace negotiations
By Kyle Aristophere T. Atienza, Reporter
and Bianca Angelica D. Añago
PEACE advocates and political analysts on Sunday said labeling consultants of the National Democratic Front of the Philippines (NDFP) terrorists could affect peace talks with Maoist rebels in the future, beyond President Rodrigo R. Duterte’s term.
“Attacking those who have been openly negotiating in peace talks is not only counterproductive, but it is a blatant and disappointing expression of bad faith and insincerity,” Pilgrims for Peace said in a statement at the weekend.
“The inclusion of peace consultants and negotiating panel members on the designation list undermines the atmosphere of goodwill and trust needed to pursue peace negotiations,” it added.
The government has labeled 19 members of the Communist Party of the Philippines and its armed wing terrorists, according to an order published in newspapers on Thursday.
The Anti-Terrorism Council also issued a separate order labeling 10 members of Mindanao-based militant groups terrorists.
The first list includes peace consultants Vicente P. Ladlad, Rafael Baylosis, Adelberto A. Silva, Wilma Tiamzon and Benito Tiamzon.
The council said it had found probable cause based on “verified and validated information” that the 19 Maoist rebels were involved in “planning, preparing, facilitating, conspiring and inciting the commission of terrorism.”
They were also said to have recruited people to their group, which the country’s Anti-Terrorism law prohibits.
These people face criminal charges, apart from existing ones that have been filed in court against many of the suspects, Justice Undersecretary Adrian Ferdinand S. Sugay told reporters last week. The state may also seize their assets, he added.
Communist Party of the Philippines founder and NDFP chief political consultant Jose Maria C. Sison on Saturday said the passage of Anti-Terrorism Act of 2020 would be a “nail in the coffin” of the peace negotiations.
The law expanded crimes against terror that critics said could be used to violate human rights and stifle dissent. It is under review by the Supreme Court after a lawsuit questioning its legality was filed.
Peace talks with Maoist rebels resumed in Aug. 2016 after a five-year impasse. Mr. Duterte ordered the release of jailed NDFP consultants and declared an indefinite unilateral cease-fire.
A year later, he ended negotiations after the two camps accused each other of cease-fire violations.
“I don’t think there is only one nail in the coffin,” Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo de Manila University Policy Center, said in a Facebook Messenger chat.
“The aggressive attitude of this administration toward persons and groups that it perceives to be a member of the New People’s Army (NPA) or NPA sympathizers is a huge contributing factor in the public anxiety toward the Anti-Terror Law of 2020,” he added.
Mr. Yusingco said the government seems to have abandoned peace talks “given the rampant and reckless red-tagging campaign, the open declaration of eliminating the NPA before the end of the President’s term, and the patently strong social media operations of this administration against alleged communists.”
He also questioned the standards used by the state council in making the list. “What is the process and what are the standards? The act of designation is obviously a purely unilateral exercise on the part of the council.”
Mr. Yusingco said the the terror list could affect future administrations in negotiating peace with communist rebels.
“The security sector has a big say in this paradigm shift,” he said. “Right now, the military and the police are obviously keen to get rid of the NPA.”
The political analyst said the hawkish mindset could continue if Mr. Duterte’s anointed presidential candidate wins next year. “But a chief executive elected from the ranks of the opposition is also not a guarantee that a genuine peace-building approach will be adopted by the government.”
Mr. Sison, and one of those tagged, last week said his wife and he were not bothered by the label.
He said the listing was arbitrary, dubious and inconsistent with statements made by “evil minions” the council’s task force.
Both resolutions were signed by council Chairman Salvador C. Medialdea and National Security Adviser and council Vice Chairman Hermogenes C. Esperon, Jr.
Some congressmen slammed the terror lists, which they said were arbitrary and devoid of due process.
The Public Interest Law Center of the Philippines last week said the council’s move to enforce the new Anti-Terror law, which it said is void, is self-destructive. It added that the law’s failure to give parties legal remedies, grave violations of due process and its ambiguity would be “brought to fore.”
DoH reports 5,790 more infections, 19,191 total deaths
THE DEPARTMENT of Health (DoH) reported 5,790 coronavirus infections on Sunday, bringing the total to 1.14 million.
The death toll rose by 140 to 19,191, while recoveries increased by 7,541 to 1.07 million, it said in a bulletin.
There were 54,904 active cases, 1.4% of which were critical, 93.3% were mild, 2.1% did not show symptoms, 1.9% were severe and 1.23% were moderate.
The agency traced the low tally to fewer samples from laboratories on Friday.
It said 14 duplicates had been removed from the tally, 10 of which were tagged as recoveries and one as death. Ninety recoveries were reclassified as deaths.
About 11.8 million Filipinos have been tested for the coronavirus as of May 14, according to DoH’s tracker website.
The coronavirus has sickened about 163.2 million and killed 3.4 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.
About 141.5 million people have recovered, it said.
The Health department on Saturday reported 10 more people infected with the more contagious variant first detected in India, bringing the total to 12.
Of the 10, one was a seafarer from Belgium who arrived in Manila from the United Arab Emirates on April 24. He finished his quarantine on May 13.
The nine others were among 12 Filipino crew members of MV Athens Bridge who got infected. Four of the nine were admitted at a hospital in the capital and were in stable condition, while the rest were in an isolation facility.
The Maritime Industry Authority in a statement on May 7 said MV Athens Bridge left India on April 22 and arrived in Vietnam, where the crew members got tested.
The Philippine Coast Guard received a request from the vessel’s captain on May 6 for a medical evaluation of the two crew members needing medical attention. The vessel was then 12 nautical miles west of Corregidor Island.
DoH said all of the close contacts of the first two patients with the variant from India had completed their quarantine. It said a sample from one of the three close contacts of the second case in the plane had tested negative for the Indian variant.
The agency said 13 more people had been infected with the coronavirus variant first detected in the United Kingdom, bringing the total to 967.
Seven more people also got infected with the variant first detected in South Africa, bringing the total to 1,109.
One more patient got infected with the variant first detected in the Philippines.
DoH said the variant first found in the Philippines is not a variant of concern. “This variant is currently being investigated and information continually collected to determine its public health implication.“ — Vann Marlo M. Villegas