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Manila to get 40M free doses under COVAX

By Kyle Aristophere T. Atienza
and Charmaine A. Tadalan, Reporter

THE PHILIPPINES will get as many as 40 million doses of free coronavirus vaccines this quarter under a global initiative that ensures their equal distribution, according to the country’s vaccine czar.

The country’s participation in the World Health Organization’s (WHO) COVID-19 Vaccine Global Access (COVAX) facility was confirmed on Wednesday, Carlito A. Galvez, Jr., chief enforcer of the government’s anti-coronavirus efforts, told an online news briefing on Thursday.

“The COVAX facility already approved the deployment of vaccines in the Philippines,” he added.

The government seeks to start its vaccination drive this quarter, when the first batch of the vaccines are expected to arrive, Mr. Galvez said.

The vaccines that will arrive first would probably be manufactured by Pfizer, Inc., AstraZeneca Plc, Serum Institute of India and Johnson & Johnson, he added.

“With or without COVAX,” COVID-19 vaccines will reach Philippine shores, Mr. Galvez said. “This is through procurement by the National Government.”

The country seeks to buy 148 million doses of coronavirus disease 2019 (COVID-19) vaccines from seven frontrunners in the COVID-19 vaccine race to immunize 50 to 70 million Filipinos this year.

CASE TALLY
The Department of Health (DoH) reported 1,783 coronavirus infections on Thursday, bringing the total to 507,717. The death toll rose by 74 to 10,116, while recoveries increased by 500 to 467,475, it said in a bulletin.

There were 30,126 active cases, 84.8% of which were mild, 8% did not show symptoms, 2.5% were severe and 4.4% were critical.

Quezon City reported the highest number of new cases at 99, followed by Rizal at 83, Manila at 78, Bulacan at 69 and Cavite at 66.

DoH said five duplicates had been removed from the tally, while 15 cases tagged as recovered were reclassified as deaths. Four laboratories failed to submit their data on Jan. 20.

Mr. Galvez said the government might create separate teams to handle coronavirus vaccines and its expanded immunization program to ensure an “uninterrupted focus and rollout of both immunization programs.”

Meanwhile, the Philippine government has secured cold chain storage facilities for COVID-19 vaccines, Mr. Galvez said.

He said the government United Laboratories, Inc. (Unilab), Zuellig Pharma Corp. and the Research Institute of Tropical Medicine (RITM) are among those that will provide the equipment.

Unilab’s cold storage facility has a temperature range of +2 to +8 °C and can store as many as five million doses, Mr. Galvez said.

Zuellig Pharma can accommodate vaccines with temperature requirements ranging from -80 to +25°C, he added.

Mr. Galvez said Zuellig’s +2 to +8°C cold rooms can store as many as 629 million doses, while its -15 to -25°C walk-in freezers can hold as many as 40 million doses. It’s 14 ultra-cold freezers with -80 to -70 °C temperature range can store as many as 6.5 million doses, he added.

He and Health Secretary Francisco T. Duque III on Wednesday inspected three facilities that will store the first batch of vaccines.

The facilities were located at the First Pioneer Distribution Center of Unilab in Biñan City, the RITM in Muntinlupa City and the Zuellig Pharma warehouse in Parañaque City.

At the same briefing, Health Director Ariel I. Valencia said they would bid out the contracts for cold storage facilities and the transportation for vaccine deployment.

AIRPORT PROTOCOL
Also on Thursday, the Department of Health (DOH) proposed to tighten the country’s testing protocols for foreign travelers to ensure the detection of new coronavirus strains, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing.

This, after three co-passengers and the girlfriend of the Filipino infected with the more transmissible COVID-19 variant tested negative upon arrival in Manila, but later tested positive for the coronavirus. Health authorities were still checking if they also got infected with the new variant.

Inbound passengers regardless of country of origin should be tested upon arrival and undergo another swab test five days into their quarantine to ensure they are negative, she said.

A new round of COVID-19 testing should be done before they are allowed to go home, she added.

Inbound passengers are only required to get swabbed at the airport and then quarantined for as long as 14 days at a government-accredited facility while awaiting results. COVID-19 symptoms can appear within five days to two weeks after a person is exposed.

Vaccine czar assures senators’ shots are priced competitively

THE COUNTRY’S vaccine czar met with some Senate leaders on Wednesday to assure them that coronavirus vaccines bought by the government were not overpriced.

Vaccine czar Carlito G. Galvez, Jr. showed senators including Senate President Vicente C. Sotto III a copy of the purchase contracts to prove these are above board, Mr. Sotto told reporters in a Viber group message on Wednesday night.

“Secretary Galvez assured us through the agreements that there will be no room for overpricing by any person, entity or group,” he said.

All payments will go directly from the lending institution, which had safeguards against corruption, to the drug makers, Mr. Sotto said.

Also present at the meeting were Senators Panfilo M. Lacson and Ronald M. de la Rosa and Baguio City Mayor Benjamin B. Magalong, who is in charge of the government’s contact-tracing activities.

President Rodrigo R. Duterte this week said the government could not disclose the prices of the vaccines under the contracts because of nondisclosure rules.

Mr. Sotto said the Senate would hold its third hearing on the government’s immunization program on Friday.

“The hearing will push through and hopefully we will be able to elicit enough information to be able to convince our countrymen that the vaccines no matter what brand will be necessary, for us to defeat the virus,” he said.

Mr. Lacson said their meeting with Mr. Galvez clarified many issues and concerns raised by senators, particularly on the vaccine prices. The lawmakers also agreed not to disclose contract details, he said.

“We advised him to explain in tomorrow’s hearing the same way that he did last night, without violating the terms of the agreement with the vaccine suppliers,” he said in a statement on Thursday. — Charmaine A. Tadalan

DoJ clears Duterte ally accused of violating quarantine restrictions

GOVERNMENT prosecutors have dismissed a complaint against an administration senator accused of violating lockdown rules amid a coronavirus pandemic.

In a 19-page order, the Department of Justice (DoJ) said Senator Aquilino L. Pimentel III did not violate the law when he entered a private hospital in March without notifying authorities that he had the coronavirus.

The lawmaker, a close ally of President Rodrigo R. Duterte, was not obliged to report his illness because he is not a public health official, DoJ said.

The law mandating reporting of certain diseases only applies to officials under the Health department and Research Institute for Tropical Medicine and Epidemiology Bureau, it added.

Mr. Pimentel also did not violate the “noncooperation” clause of the law since he had been unaware of his test results when he accompanied his pregnant wife to the hospital, prosecutors said.

The senator learned about his infection while he was at the Makati Medical Center with his wife Kathryna, who was about to give birth to their child.

Hospital management had called Mr. Pimentel reckless and irresponsible for endangering the health of its staff and adding to the burden of the hospital because it had to quarantine several staff members who had contact with him.

“Senator Koko Pimentel only knew or learned about his condition of being positive for COVID-19 on the same day — March 24, 2020, while he was already at the premises of the hospital,” DoJ said.

Prosecutors also said lawyer Rico Quicho did not have the personality to file the complaint, which was based on news reports deemed “hearsay evidence.”

Mr. Pimentel on Thursday said the DoJ ruling was “unassailable and correct.” “The complaint criminally charged me for violation of non-penal DoH issuances which are not even addressed to me,” he told reporters in a Viber group message.

“How can something noncriminal all of a sudden become criminal when you are not even expected to be knowledgeable or an expert about their contents?” — Charmaine A. Tadalan

Nationwide round-up (01/21/21)

NPC flags WhatsApp’s planned privacy policy changes

THE National Privacy Commission (NPC) has flagged concerns about mobile messaging application WhatsApp, which is planning to implement privacy policy changes that will include sharing user data with third-party companies hosted by Facebook. The Facebook-owned app is adjusting its privacy policy so that users can interact with businesses through the technology, sparking global user concern about data being shared with the social media giant. The NPC said the company has not yet addressed concerns about the scope of data that Facebook and its partner companies will be able to harvest from the messaging app, and if the new policy is mandatory for all users. “While the Commission takes positive note on WhatsApp’s emphatic assurance on its continued end-to-end encryption of messages and calls, we would like to note that encryption is a bare minimum requirement for ensuring data protection,” it said in a statement on Thursday. The commission cited several concerns, including third party involvement in operations, account deletion without notice, use of personal data for advertising, and information gathering through third parties, among others. “The commission is closely monitoring developments and will directly coordinate with WhatsApp to extract specific details on the new policy, as we seek to understand more the data protection measures it currently adopts or will possibly adopt.” WhatsApp has moved its privacy policy update to May 15. — Jenina P. Ibañez

Central bank officials ready to answer complaint on alleged corruption in national ID program

OFFICIALS of the Bangko Sentral ng Pilipinas (BSP), including Governor Benjamin E. Diokno, will face complaints against them relating to an alleged irregular bidding process on materials for the National ID system in a “proper forum.” “As regards the complaint filed with the Ombudsman relative to the procurement for the printing of cards for the National ID System, rest assured that the BSP officials concerned will respond in the proper forum once required in accordance with applicable rules,” the central bank said in a statement on Thursday. The complaint was filed on Wednesday before the Office of the Ombudsman by the Stop Corruption Organization of the Philippines, Inc. (SCOPI), claiming that central bank officials did not undertake “competitive bidding” for the procurement of raw materials that will be used for the ID system. Other respondents include officials from the BSP Security Plant Complex Bids and Awards Committee led by Chairperson Prudence Angelita A. Kasala and Vice Chairperson Marianne M. Santos. Officials from the BSP Banknotes and Securities Printing Department Director Carl Cesar H. Bibat and Acting Production Manager Marianne M. Santos are also named in the complaint. “The BSP supports the rollout of the National ID as it is key to wider financial inclusion that promotes shared economic growth and the financial wellbeing of Filipinos,” the BSP said. Mr. Diokno was discharged from hospital on Wednesday following a Sunday medical procedure relating to a minor head injury. The BSP said he may already preside over the Monetary Board meeting as early as next week. — Luz Wendy T. Noble

PPA contractors to be required to plant trees, mangroves

FIRMS with contracts granted by the Philippine Ports Authority (PPA) will now be required to plant trees and mangroves as part of government efforts to protect the environment. Starting Feb. 2, the PPA’s service and goods providers as well as those involved in port facilities construction and dredging will be required to plant at least 1,000 seedlings for every contract, accreditation, and permit issued by the agency. Port service providers must also plant additional seedlings, including 100,000 for port terminal operators and 500,000 for private operators. Cargo handling and passenger terminal building operators must also plant 50,000, while roll on-roll off operators and harbor pilots must plant an additional 25,000 and 10,000, respectively. “Compliance with the requirements shall be made not later than one year after the issuance of the documents or from the effectivity of this order, whichever comes first,” PPA General Manager Jay Daniel R. Santiago said in a statement. Non-compliance could result in the cancelation or non-renewal of permit or contract. — Jenina P. Ibañez

Regional Updates (01/21/21)

Bacolod, Negros Occidental map out tourism sector’s reopening

NEGROS Occidental province and the independent city of Bacolod have jointly started planning for reopening to tourists, along with possible recovery measures such as tax breaks to help industry players beat up by the coronavirus pandemic. “If you (tourism stakeholders) have any proposal, we are willing to go over them, we are open to that. If we can hear your proposal, I can take it up with the SP (Sangguniang Panlungsod or the city council),” Mayor Evelio R. Leonardia of Bacolod, the province’s commercial center, said during a stakeholders’ meeting on Tuesday organized by the Department of Tourism (DoT). Tourism Secretary Bernadette Romulo-Puyat, who was on a three-day visit to the province this week, said it is important to have localized plans for restarting tourism activities. “As the pandemic affected various regions in different ways, it was evident that there was no ‘one-size-fits-all’ solution to restart tourism. Through regular dialogues and consultations with local government units (LGUs) and stakeholders, we can better understand the situation in the areas and help address the most pressing needs of the constituents,” she said during the meeting. Among the areas that have reopened to domestic travelers are the islands of Boracay and Siargao, Ilocos Region, and Baguio City. Ms. Puyat, who also led the distribution of financial assistance to displaced workers and soft loans to establishments under the government’s COVID-19 response programs, announced that the department has other ongoing projects to help industry players such as subsidies for the RT-PCR testing of tourism employees. Negros Occidental, including Bacolod, has recorded 12,243 coronavirus disease 2019 (COVID-19) cases as of January 20, of which 284 are active. There have been 11,598 recoveries. The province is known for its colonial houses and other heritage sites, beaches and eco-tourism sites. — MSJ

Coca-Cola PHL opens new ‘smart’ distribution hub in Manila

COCA-COLA’S bottling arm in the country has opened a new distribution hub in Manila equipped with a smart logistics system, which will become a model for other centers across the country. In a statement on Thursday, Coca Cola Beverages Philippines, Inc. (CCBPI) said the facility jumpstarts “a series of bullish investments for 2021” in line with expansion plans nationwide. “The new site will also be a testing hub for all process and capability improvements to be rolled out to the rest of Coca-Cola distribution facilities across the country,” the company said. CCBPI Chief Executive Officer and President CEO Gareth McGeown said the distribution center will also open job opportunities for locals of the host area such as in Manila. All the hub’s regular employees are Manila residents. “This pandemic taught us so many things. Value to one’s life, value to family, value to health and safety. We have learned a lot from both our achievements and shortcomings during the pandemic, but we are sure that what will help us more in the coming months are jobs,” Manila Mayor Francisco M. Domagoso is quoted in the statement. “We are optimistic that in one way or another, business will bounce back. So in return for the trust that Coca-Cola is giving us, we (will) ensure that we (Manila government) will be efficient as we overcome the pandemic together.”

Zamboanga City ready for leisure visitors by February

ZAMBOANGA City is ready to reopen its borders to tourists starting February, the local government announced on Thursday. “Leisure and non-essential visits will soon be allowed as Zamboanga City reopens for tourism next month,” the city government said in a statement. Visitors will have to comply with requirements such as negative result of an RT-PCR test for the coronavirus, confirmed booking at an accredited hotel, and authority to enter from the city government, among others. The city’s island destinations, Sta. Cruz and Islas, are also set to reopen. For other information, visit the city’s social media pages or email turimolocal.promotions@gmail.com.

DoF warns against delaying PhilHealth premium hike

THE Department of Finance (DoF) said proposals to defer the hike in premiums for members of the Philippine Health Insurance Corp. (PhilHealth) scheduled for 2021 and 2022 will have an “adverse” effect on the healthcare insurance’s fund.

The Bureau of the Treasury’s Deputy Treasurer Sharon P. Almanza made the remarks at a House of Representatives hearing on PhilHealth premiums.

“The Department of Finance recognizes the intent of the deferment of the direct contributors premium… we would like to emphasize the impact of the national health insurance fund. It will have a very adverse effect on the fund and perhaps the fiscal space of the PhilHealth,” she said.

On Thursday, the House Committee on Health approved House Bill (HB) No. 8316 filed by Speaker Lord Allan Jay Q. Velasco. The bill gives the President the power to defer the increase in premium rates for PhilHealth members.

“In this particular situation, the scheduled increases are actually statutory,” according to Marikina Representative Stella Luz A. Quimbo, speaking at the hearing. She added that the resort to Presidential intervention proposed by the measure is a matter of “expediency.”

In a December speech, Mr. Duterte called for the suspension in contribution increases.

House legislators are also seeking a suspension, citing the effects of the pandemic.

PhilHealth President Dante A. Gierran said at the hearing Thursday that the agency supports the granting of powers to the President to suspend premium increases in times of national emergency, “provided that the scheduled premium contributions can be adjusted in the years following the suspension.”

The House Committee on Government Enterprises and Privatization meanwhile approved HB 8317 which allows the President to suspend scheduled increases in contributions by Social Security System members. The bill was also filed by Mr. Velasco. — Gillian M. Cortez

SSS opposes suspension of scheduled contribution hikes

THE Social Security System (SSS) opposed proposals to suspend any increases in its members’ contributions, adding this will “jeopardize” its ability to provide benefits.

“The SSS respectfully expresses its opposition to the proposals because of its expected financial impact on the financial health of the SSS,” according to SSS President Aurora C. Ignacio, speaking at a House hearing Thursday discussing a bill allowing the suspension of scheduled increases in SSS contributions.

Ms. Ignacio also added that deferring the hike will affect the fund’s ability to provide for pensioners, members, and their beneficiaries.

Ms. Ignacio added that the proposals “tend to weaken rather than strengthen the SSS especially during these difficult times.”

The Social Security Act of 2018 called for contribution increases in 2019, 2021, 2023, and 2025.

On Thursday, the House Committee on Government Enterprises and Privatization approved House Bill (HB) No. 8317 which allows the President to suspend increases in contributions by SSS members. The measure was filed by House Speaker Lord Allan Jay Q. Velasco.

The Committee’s chairman, Parañaque City Representative Eric Olivarez, said a committee report on the approval of HB 8317 will be submitted Monday. — Gillian M. Cortez

BIR streamlines digital accounting system registration process

THE Bureau of Internal Revenue (BIR) said it will no longer require taxpayers to obtain a “permit to use” (PTU) when registering their computerized accounting systems (CAS).

BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular (RMC) No. 5-2021, dated Jan. 8, providing for a simplified registration processes for CAS, computerized books of account and its components, including the electronic storage system (ESS), middleware and other similar systems.

The new circular replaces RMC No. 10-2020.

However, the BIR said other documents are still needed for the registration of such systems, including a sworn statement, sample print-outs of receipts, invoices and books of account, a copy of the audit trail, and completed BIR forms.

It said the application for authority to use CAS or its components is also no longer required when applying to register.

During the registration process, the BIR will also not require demonstrations or pre-evaluation before they can be used. Instead, these platforms will only have to be subjected to post-evaluation by the Revenue District Office (RDO).

Those already holding a PTU for the system do not have to apply again as these will still be considered valid.

If there are major changes or updates to the software, the BIR said taxpayers have to submit a new application for registration, or else the current PTU or registration will be revoked. In case of minor changes, a written notice detailing the changes made must be sent to the RDO or large taxpayers office. — Beatrice M. Laforga

Overstaying cargo disposals generate P1.1 billion — Customs bureau

THE Bureau of Customs (BoC) raised P1.077 billion from the disposal of 3,514 overstaying containers last year as part of an overall port decongestion effort.

The BoC said in a statement Thursday that revenue was generated from auctions involving 1,898 containers, holding items like televisions, tiles and plywood.

It donated the contents of 270 containers while that of 1,346 containers was condemned.

“The significance of these disposition activities is in connection with the ease of doing business in the bureau, as these will also result in the decongestion of ports and yards,” the BoC said.

After the lockdown to curb the spread of coronavirus disease 2019 (COVID-19) starting mid-March, ports started experiencing congestion in early April, putting them at risk of shutting down.

Unclaimed containers piled up in ports, especially in Manila, as factories shut down operations and travel restrictions hampered their ability to move goods.

Customs issued Circular Memorandum Order No. 10-2020 on April 8, 2020, declaring that cargo in ports and yards found to have overstayed more than 30 days from the date of discharge will be classified as abandoned.

Disposals helped make way for incoming shipments of critical goods, including food, medical items and personal protective equipment.

The BoC is authorized by law to donate, declare for official use, or sell at auction seized or abandoned items. Food, clothes, medicine and other goods that are suitable for shelter can also be donated to the Department of Social Welfare and Development. — Beatrice M. Laforga

Pressure on telcos to improve services will continue — DICT

THE Department of Information and Communications Technology (DICT) said the government, including President Rodrigo R. Duterte, will not ease the pressure on telecommunications companies to improve their services.

At a briefing Thursday, DICT Assistant Secretary Emmanuel R. Caintic said the government has “no reason” to stop pushing for better telecommunications services.

“But at the same time, we should do our best, as government also, to alleviate problems with the permits.”

Telcos have cited slow permit approvals for delays to their infrastructure buildout, causing the government to verify the various agencies’ compliance with permit deadlines set out in the Ease of Doing Business Law.

The Palace reported Thursday that internet speeds have improved due to the construction of new communication towers and the installation of fiber optic lines across the country.

At the same briefing, the President’s Spokesman Herminio L. Roque, Jr. presented a report by Ookla, an internet speed testing site, indicating that mobile download speeds improved by 202.4% between July 2016 and December, while fixed broadband speeds rose 297.47% during the same period.

Ookla measured fixed broadband speed at 31.44 megabits per second (Mbps) in December from 7.91 Mbps in July 2016. Meanwhile, mobile download speeds improved to 22.50 Mbps from 7.44 Mbps over the same period.

Mr. Roque also reported a total of 2,939 telco towers were built between July and December.

The President in July 2020 told telcos to improve their services “before December” or risk shutdown.

Mr. Caintic said the DICT is already looking at a joint memorandum circular to “ease up” on the permits needed for the installation of fiber optic cable. He said the department hopes to release the circular by this quarter.

The construction of the national broadband project will start by July, he added. — Kyle Aristophere T. Atienza

No-disconnection policy extension urged for poor power consumers

A SENIOR senator on Thursday called on the Energy Regulatory Commission (ERC) and distribution utilities like the Manila Electric Co. (Meralco) to extend the “no-disconnection” policy for low-income consumers until the end of the general community quarantine (GCQ).

In a statement Thursday, Senator Sherwin T. Gatchalian, who chairs the Senate committee on energy, said that this is “not the time to collect payments since there were many poor consumers who spent for Christmas.”

Two weeks earlier, Meralco’s Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said the company has started to issue disconnection notices to users falling behind on their payments. He said Meralco will be asking households consuming 201 kilowatt-hours (kWh) or more to settle their unpaid obligations this month, while those consuming 200 kWh and below were given until the end of January to pay.

Meralco’s no-disconnection policy on households with typical consumption was supposed to end on Dec. 31, but was extended until the end of January.

“It’s not the time to collect payments from low-income consumers. Christmas has just ended, and many Filipinos celebrated and spent what they could for it. It’s better to loosen the ‘no disconnection policy’ until the quarantine ends,” Mr. Gatchalian said in Filipino.

He also asked for “humanitarian consideration” for users with outstanding power bills.

Meralco’s Mr. Zaldarriaga has said the grace period has been in force for some time and that there was “no recourse on the firm’s part but to collect the overdue payments and consider the viability of their operations.”

BusinessWorld asked the ERC and Meralco to comment specifically on Mr. Gatchalian’s statement, but they had not replied at deadline time.

Meralco has said that it plans to increase its power rates by P0.2744 per kWh this month compared to December levels. Residential customers consuming 200 kWh are expected to pay an additional P55.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Legislator touts P10B potential take from digital services VAT

A PARTY-LIST legislator proposed taxing foreign companies providing digital services, noting the potential to raise up to P10 billion which could go to the government’s pandemic containment efforts.

In a statement, AAMBIS-OWA Party-list Representative Sharon S. Garin said major non-resident foreign corporations who profit from the Filipino market but are not registered with the Bureau of Internal Revenue must also be taxed.

The House of Representatives resumed discussions on House Bill No. 7425 in September the bill proposes the collection of value-added tax (VAT) from digital transactions.

She added that taxation levels the playing field between non-resident foreign entities and Philippines-registered businesses.

“The intention of the bill is to reduce the burden of taxpayers by simplifying payment without compromising accountability,” she said in the statement Thursday.

The bill calls for non-resident digital service providers to collect VAT on services. The threshold for VAT registration for non-resident digital service providers is gross sales of over P3 million.

Ms. Garin said only transnational services and transactions will be covered by the measure. — Gillian M. Cortez

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