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Nationwide round-up

2 top PhilHealth execs resign

TWO TOP officials of Philippine Health Insurance Corporation (PhilHealth) have resigned amid investigations of irregularities marring the state insurer.

On Wednesday, PhilHealth President Ricardo C. Morales and Senior Vice President for legal sector Rodolfo B. del Rosario Jr announced separately their resignation from their respective posts.

Mr. Morales, in a radio interview with DZMM on Wednesday, said he will submit  his resignation letter to Executive Secretary Salvador C. Medialdea following a recommendation from President Rodrigo R. Duterte, who appointed him, that it would be best to step down because of his ongoing battle with cancer.

“Ngayong umaga (This morning) I have to file it,” he said.

Mr. Del Rosario, in a social media post, said he already filed his irrevocable resignation.

Mr. Del Rosario, also an appointee, is already under a six-month suspension imposed by the Ombudsman against him and several other PhilHealth officials for alleged links to cases of anomaly prior to the recent separate probes by Congress and a special task force formed by the President.

Mr. Duterte, in a speech earlier this week, said he will dedicate his remaining term in office prosecuting those involved in corrupt activities within PhilHealth. — Gillian M. Cortez 

Religious leaders latest to file petition vs anti-terrorism law

A GROUP of religious leaders filed the 28th petition before the Supreme Court questioning the legality of the Anti-Terrorism Act.

In a 36-page petition, the Association of Major Religious Superiors in the Philippines under the Roman Catholic Church said the Anti-Terrorism Act is unconstitutional because the broad law impedes and negatively affects the mission of the church.

Petitioners claimed that it is their duty to have “preferential option for the poor” and reaching-out to them as members of the church can make them suspected “terrorists” under the law which took effect July 18.

“As the Christian faithful aids those perceived to be ‘terrorists,’ the Christian faithful may themselves also be branded as ‘terrorists’ even if clearly they are not,” the lawsuit read.

The religious leaders also raised concern on the provisions authorizing warrantless arrests and detention of suspected terrorists.

The Anti-Terrorism Act considers attacks that cause death or serious injury, extensive damage to property and manufacture, possession, acquisition, transport and supply of weapons or explosives as terrorist acts.

It also allows the government to detain a suspect without warrant of arrest for 14 days from three days under a previous law.

The Anti-Terrorism Council formed under the law is made up of Cabinet officials, which can perform acts reserved for courts, such as ordering the arrest of suspected terrorists.

The court will hold oral arguments over the petitions filed against the law “on the 3rd week of September, at the earliest,” according to the court’s Public Information Chief Brian Keith F. Hosaka.

The Office of the Solicitor General asked the court to cancel holding the oral arguments claiming it is not mandatory and suggested alternative modes due to the coronavirus pandemic. — Vann Marlo M. Villegas

DoLE launches mental support app for overseas workers in Macau

THE DEPARTMENT of Labor and Employment (DoLE) has launched a mental healthcare mobile app to assist overseas workers in Macau who have been affected by the coronavirus global pandemic.

“The app, dubbed ‘Kumusta, Kabayan,’ is an electronic health monitoring system designed to improve the well-being of OFWs (overseas Filipino workers), especially during the current coronavirus pandemic,” DoLE said in a statement on Wednesday.

The app is part of the Health Connection Project for overseas workers in the region.

The project, which will be implemented until December, aims to improve the well being of Filipino workers in Macau, especially those who are experiencing physical and mental health challenges because of the coronavirus crisis. — Gillian M. Cortez 

ARTA to streamline paperwork for OFWs, recruiting agencies

THE Anti-Red Tape Authority (ARTA) said it is preparing to streamline the process for deploying overseas Filipino workers (OFWs), after consulting with the agencies overseeing the current process.

ARTA met online last week with the Philippine Overseas Employment Administration (POEA), Department of Labor and Employment, Technical Education and Skills Development Authority, Overseas Workers’ Welfare Administration, and the International Labor Affairs Bureau.

POEA had presented its processes for licensing employment agencies that deploy land-based workers and seamen.

ARTA Director-General Jeremiah B. Belgica said that the accreditation of manpower agencies and the rest of the OFW deployment process will be streamlined without compromising safety.

“Streamlining neither mean(s) removing all safety measures nor completely deregulating a system. It simply means that we need to restructure the process to retain the requirements and steps truly necessary and eliminate those which are redundant and simply baseless in law or in practice,” he said.

OFWs are losing their jobs during the coronavirus disease 2019 (COVID-19) pandemic, with 135,000 repatriated as of Aug. 15. Among these, 52,600 are seafarers and 82,651 are land-based workers.

The Labor department in June said that it expects around 400,000 OFWs to be displaced by the pandemic.

The Asian Development Bank said that it estimates a worst-case scenario of a 20.2% decline in remittances, or $5.789 billion in lost remittances, assuming global economies normalize after a year of pandemic containment efforts. — Jenina P. Ibañez

Government urged to release Murang Kuryente subsidies

A CONSUMER group is seeking the immediate grant of subsidies on some universal charges in electricity bills, a year after a law granting such relief was passed.

Republic Act No. 11371 or the Murang Kuryente Act provides a P208-billion subsidy to cover the universal charges for stranded contract costs and stranded debts paid for by consumers. The funds come from the net proceeds of the government’s share from the Malampaya Natural Gas Project. It will also pay for the anticipated shortfalls or deficits incurred from settling such obligations.

The subsidy allocation was not included in the 2020 national budget, as the implementing rules and regulations (IRR) of the law were only passed in April. As a result, the subsidies will be released next year, according to Power Sector Assets and Liabilities Management (PSALM) Corp.

But Laban Konsyumer said the IRR “should not be a condition precedent to the entitlement of all end-users to an immediate reprieve” granted by the law.

“The consumers have nothing to do with the proper disposition of the Malampaya funds, which are essentially, the responsibility of the implementing agencies,” it said.

Victorio A. Dimagiba, the group’s president, told BusinessWorld that the government must refund those charges that were collected from consumers since the effectivity of the law. The Murang Kuryente Act was signed on Aug. 8, 2019.

In a petition filed with the Energy Regulatory Commission (ERC), the group asked the government to stop collecting the two universal charges, which the law also orders.

At present, PSALM is not recovering stranded contract costs but is still collecting the P0.0428 per kilowatt-hour stranded debts. The application to collect the latter was approved before the Murang Kuryente law was passed, and it will still be collected until the end of its corporate life, according to the ERC.

In the Department of Budget and Management’s proposed National Expenditure Plan for next year, it was planned that PSALM, which assumed stranded contract costs and stranded debts from the National Power Corp. (Napocor), will receive P8 billion as payment for the said bill components.

Stranded contract costs are “the excess of the contracted cost of electricity under eligible IPP (independent power producer) contracts over the actual selling price of the contracted energy output of such contracts,” the IRR defined.

Meanwhile, the stranded debts are those unpaid financial obligations of the Napocor which have not been liquidated by the proceeds from the sales and privatization of its assets.

PSALM cannot file for new applications to collect these charges from consumers until the government subsidy is exhausted. — Adam J. Ang

Rice tariffication alleged to have cost farmers P40 billion in lost income

RICE FARMERS lost P40 billion worth of income due to rice tariffication, to the benefit of importers and traders, who realized a P57.5 billion windfall during the first year of Republic Act No. 11203 or the Rice Tariffication Law, according to the Federation of Free Farmers (FFF).

According to a study conducted by the FFF and allied groups, farmer mainly absorbed the impact of low palay prices, whereas traders could shift their sourcing to imports.

The FFF said that two million tons of imported rice arrived during the first seven months of the law’s effectivity.

“Palay prices nosedived from an average of P22.04 per kilogram in September 2018 to P14.40 in October 2019,” the FFF said. Palay, or unmilled rice, is the form in which rice farmers sell their harvest, while imported rice is typically milled into various varieties.

Proponents of the law touted it as a means of bringing down prices, slowing inflation, and allowing poor consumers to buy the staple for less.

The FFF claimed that the promised drop in prices to benefit the poor was not realized.

“Importers brought in mostly higher quality rice that sold at a higher price and gave better profit margins. Up to 85% of total rice imports were of the 5% brokens grade instead of the cheaper 25% brokens that the National Food Authority (NFA) previously imported,” the FFF said.

The FFF also alleged that rice importers saved P2.5 billion in tariffs after not declaring the true value of their imports to the Bureau of Customs.

The Department of Agriculture (DA) had yet to comment on he study at deadline time.

Taking effect in March 2019, the law permitted unrestricted imports of rice, with Southeast Asian grain paying a tariff of 35%. The tariffs fund the Rice Competitiveness Enhancement Fund (RCEF), which helps farmers access seed, farm machinery, credit, and farm know-how. — Revin Mikhael D. Ochave

Wholesale price growth of building materials in NCR picks up in July

THE wholesale price growth of construction materials in Metro Manila picked up in July, according to the Philippine Statistics Authority (PSA), likely reflecting the restart of major building projects after the easing of some quarantine restrictions.

The PSA said Tuesday that the construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) grew 1.8% year on year in July, against a 1.2% rise in June and 3% in July 2019.

Wholesale prices reflect bulk purchases by building firms participating in major projects like infrastructure works. Retail prices reflect activity in smaller segments like the do-it-yourself (DIY) market.

Meanwhile, growth in the construction materials retail price index (CMRPI) eased to 1.1% in July, against 1.2% a month earlier and also in July 2019.

The acceleration in the CMWPI was driven by the price pickup in the following materials: tileworks (16.8% in July from 16.5% in June); lumber (4.4% from 3.9%); concrete products and cement (3.6% from 0.8%); hardware (3.6% from 3.2%); and electrical works (1.9% from 0.9%).

Slower price increases were noted in sand and gravel (1.1% from 1.3%); galvanized iron sheets (1.1% from 1.5%); painting works (0.5% from 0.9%); and PVC pipes (3.6% from 6.8%).

Commodities where price growth was unchanged from the previous month were glass and glass products (7.1%) and doors, jambs, and steel casement (0.1%).

Price growth in asphalt and machinery and equipment rental was flat.

Prices for plumbing fixtures and accessories/waterworks declined 0.4%, against a 0.5% decline a month earlier. Similar trends were noted for fuels and lubricants (-7.2% from -10.5%).

Plywood prices declined 0.7% from -0.4% previously while those for reinforcing and structural steel retreated 0.4% after a month-earlier gain of 0.4%.

At the retail level, slower growth in the CMRPI was driven by the following commodities: carpentry materials (0.8% from 1.1%); painting materials and related compounds (1.5% from 1.8%); and tinsmithry materials (1.2% from 1.4%).

Retail price growth accelerated for electrical materials (1% from 0.8%) and miscellaneous construction materials (1.1% from 0.9%).

Masonry and plumbing materials maintained their growth rates in July compared to June at 1.3% and 0.5%, respectively.

“The data shows a nascent turnaround in demand for materials after months of slowdown in construction activities due to the lockdown. However, the demand may mostly be coming from firms handling the infrastructure projects of the government, so there could be an unsteady gain in the index as some private activities slowly return,” said Security Bank Corp. Chief Economist Robert Dan J. Roces in an e-mail.

The economist added that construction activity may face higher overhead expenses as new protocols on testing and quarantine are implemented, while the launch of new projects may be delayed to next year.

In a separate e-mail, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said a quick rebound in construction activity is not likely with overall business activity expected to be subdued in the coming months due to reduced incomes.

“(This) could mean that current trends of relatively modest price movements will be present until a meaningful economic recovery is achieved,” Mr. Mapa said.

Metro Manila — along with the provinces of Cavite, Laguna, Rizal, and Bulacan — switched back to a relaxed form of lockdown starting Aug. 19 after reverting to strict quarantine for two weeks. — Michelle Anne P. Soliman

Government debt stock seen at P12 trillion by end-2021

THE NATIONAL government’s outstanding debt is projected at P11.982 trillion by the end of 2021 with more borrowing in the works next year to fund enlarged spending commitments due to the pandemic, though the rate of expansion will not match this year’s pace.

Outstanding debt is expected to rise to P10.16 trillion by the end of 2020 from P7.731 trillion in 2019, with additional borrowing seen at P3.736 trillion and principal repayments P1.32 trillion this year, according to the latest Budget of Expenditures and Sources of Financing (BESF) report.

Of the total, 68% or P6.914 trillion will be sourced from domestic sources.

In 2021, additional borrowing is expected to total P3.48 trillion and principal repayments P1.718 trillion, with domestic creditors accounting for 71% of that year’s debt stock.

Outstanding debt climbed to P9.054 trillion at the end of June.

Economic managers estimate that the country’s debt stock will rise to 53.9% of gross domestic product this year, 58.3% in 2021 and 60% in 2022.

BORROWING MIX REVISED
A separate BESF document indicates that the government has revised its borrowing mix to 74:26 in favor of domestic sources from 70:30 previously.

By 2022, the borrowing mix is expected to shift to 80:20 in favor of domestic sources. — Beatrice M. Laforga

Agriculture to keep rural poor afloat; urban poor seen more distressed 

ACTING SOCIOECONOMIC Planning Secretary Karl Kendrick T. Chua said demand for agricultural products will sustain the rural poor, while their urban counterparts will suffer disproportionately because of the pandemic-induced slowdown in business.

In a Senate hearing Wednesday, Mr. Chua said the urban poor are more likely to have lost jobs and other sources of income.

He said the “majority of the poor” in rural areas will be less affected because they are tied to agriculture.

“We continue to see positive growth in agriculture production, our food supply is very good and prices are low. I think the urban poor are affected more (while) the rural poor are less affected and are possibly still holding up,” he told the lawmakers.

He said the government’s cash handouts may have prevented some of the poor from falling deeper into poverty.

“This pandemic is going to highlight inequality,” he added.

The disparity highlights the need to promote more balanced regional development, Mr. Chua said, providing better opportunities regardless of location, such as with the “Balik Probinsya” program.

He said economic planners remain confident of achieving their goal of reducing the poverty rate to 14% by 2022, which was the target before the pandemic set in.

“We entered this crisis on a very strong economic, fiscal and social footing. Not only did our poverty significantly decline, we also saw the lowest (rate) of unemployment and underemployment rate in our history so I think despite the problems we are facing with COVID, our strong foundation and track record will help us get back on track the soonest possible time.

The poverty rate declined to 16.7% in 2018 from 23.5% in 2015.

Meanwhile, the unemployment rate rose to 17.7% in April.

The National Economic and Development Authority is currently updating the government’s medium-term economic development blueprint, known as the Philippine Development Plan 2017-2022, to account for the impact of the pandemic on the economy. — Beatrice M. Laforga

Unintended PE due to COVID-19 crisis

As the world continues to grapple with the pandemic, cross-border transactions are not spared from the impact of restrictions on human mobility. For tax purposes, such travel restrictions could result in the inadvertent creation of a taxable presence for a foreign employer or principal, or what is called a permanent establishment (PE) in treaty parlance.

At the outset, it is crucial to properly determine whether a non-resident foreign corporation (NRFC) has a taxable presence in the Philippines since it provides the basis for a legitimate exercise of the government’s taxing authority. In applying the tax treaties entered into by the Philippines with other countries, an NRFC’s business profits from Philippine sources are generally not subject to Philippine income tax unless there is a PE to which such profits are attributable.

Under Philippine tax treaties, a PE is generally defined as a fixed place of business through which the business of an enterprise is wholly or partly carried out. A PE could also arise without a fixed place of business if there is a construction site, employees or agents performing services or concluding contracts in the other country.

Undoubtedly, the PE issues due to the COVID-19 crisis need to be resolved. In response, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 83-2020 providing guidelines on the unintended creation of a PE due to the travel restrictions and quarantine measures imposed by the Philippine government to address the crisis.

The issue of individuals exercising their employment outside of their home country was discussed in last week’s article. In this article, I will cover the Home Office PE, Construction PE and Dependent Agent PE issues under the RMC.

HOME OFFICE PE
A fixed place PE under Philippine tax treaties must be established with a certain degree of permanency. The fact that an enterprise has a certain amount of space at its disposal used for its business activities is sufficient to constitute a place of business for PE purposes.

The BIR recognizes that an NRFC’s employees in the Philippines due to travel restrictions may need to work at home to comply with the strict home quarantine measures imposed by the government and not as a requirement of the NFRC. With this, the BIR is of the view that working from home would not create a PE of the NRFC because the business activity lacks certain degree of permanency and the home office is not at the disposal of the NFRC.

As further explained in the RMC, it would be different if even after the crisis, the home office is continuously used to carry out the business of the NRFC and employees are required by the NRFC to work at home. In this case, the home office may be considered to be at the disposal of the NRFC and deemed a PE.

CONSTRUCTION PE
Generally, a building site, construction, assembly, installation project or related supervisory activities, existing for a given period (generally six months or 183 days) may constitute a PE.

With the pandemic, most construction activities except for essential ones have been put on hold. Under the RMC, the BIR considered no stoppage of work for this type of PE. As such, the period of work interruptions is included in computing the duration of the project to determine the existence of a PE. This is based on the OECD Commentary which states that a site should not be regarded as ceasing to exist when work is temporarily discontinued.

It should be noted though that the work disruptions brought about by the crisis are beyond anyone’s expectation or even imagination. Realistically, the work interruptions are unpredictable, and it may take years to attain normalcy since there is no established cure nor effective vaccine for COVID-19 yet. Given this uncertainty which represents “force majeure,” I think the BIR should reconsider its position and exclude the duration of work interruptions during the quarantine period for PE purposes.

DEPENDENT AGENT PE
The presence of a dependent agent of the NRFC in the Philippines may create a PE.  Generally, a person acting on behalf of the NRFC (other than an independent agent) would constitute a PE if such person has and habitually exercises an authority to conclude contracts in the name of the NRFC.

The RMC clarified that if an NRFC’s employee, partner or agent continues to stay in the Philippines due to the travel restrictions, his presence will be disregarded for PE purposes. As such, his continued presence in the Philippines shall be excluded in counting the days of the NRFC’s presence.

The period in which the authority to conclude contracts is exercised is also a key factor in PE determination. To illustrate, the RMC discussed the case of an employee of a Japanese company (JPCo) who was in the Philippines for a two-week vacation. As part of his duties, he has authority to conclude contracts on behalf of the Japanese company. Unfortunately, he was unable to return to Japan due to the travel restrictions and was forced to habitually conclude contracts on behalf of JPCo while he was stranded in the Philippines. In this situation, the BIR held that JPCo has no PE in the Philippines. If not for the travel restrictions, the employee would have been regularly performing his duties in Japan. In contrast, a PE would exist if the employee had concluded contracts on behalf of JPCo in the Philippines before the COVID-19 crisis or if he continues to do so after the lifting of the travel restrictions and quarantine measures.

In a nutshell, the BIR clarified that the effects of COVID-19 do not result in the creation of a PE if the following requirements are met: (a) the NRFC had no PE in the Philippines before the travel restrictions due to COVID- 19; (b) there are no changes in the circumstances except the extended stay of the NRFC’s employee or agent in the Philippines due to travel restrictions; and (c) the employee or agent will leave the country as soon as circumstances permit.

The markets continue to be very volatile given the current bleak economy. Thus, taxpayers are seeking tax relief to keep them financially afloat. This RMC is a welcome step as it provides guidance on PE and relaxes certain rules. However, since the crisis is far from over, I hope that the BIR and Philippine Legislature continue to hear their grievances for relief to survive in this difficult time.

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

 

Sylvia B. Salvador is a director at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

sylvia.r.salvador@pwc.com

LA Clippers set franchise records in routing of Mavericks, 154-111

Murray, Jokic keep Nuggets alive versus Jazz

PAUL GEORGE and Kawhi Leonard made sure the Los Angeles Clippers had short memories in Game 5 of their Western Conference first-round series against the Dallas Mavericks on Tuesday night near Orlando.

After blowing a 21-point lead and losing on an overtime buzzer-beater in Game 4, the Clippers responded early and often behind George and Leonard, setting franchise playoff records for most points, 3-pointers and shooting percentage in a 154-111 win.

George bounced back from three straight sub-par performances against Dallas to score 35 points, and Leonard finished with 32 points and seven rebounds for the Clippers, who took a 3-2 lead in the best-of-seven series.

Montrezl Harrell added 19 points and 11 rebounds off the bench for Los Angeles, which shot 63.1% from the floor and 22-for-35 (62.9%) from 3-point distance.

Game 6 is Thursday night.

Mavericks star Luka Doncic finished with 22 points and eight rebounds. He had 43 points, 17 rebounds and 13 assists and hit the game-winner in overtime for the Mavericks in Game 4.

Tim Hardaway Jr. scored 19 points, Trey Burke had 15 and Maxi Kleber finished with 12 for the Mavericks, who were without 7-foot-3 forward Kristaps Porzingis.

Porzingis, who averaged 20.4 points and 9.5 rebounds during the regular season, missed his second straight game due to a sore right knee.

The Clippers shot 16-for-24 from the floor and forced seven turnovers in the first quarter while building a 19-point lead.

Leonard scored 11 points during a 19-0 run during the middle part of the period that turned a 16-9 deficit into a 28-16 lead with 4:46 left.

Dallas never got back within single digits.

Landry Shamet, Reggie Jackson and Maurice Morris Sr. sank 3-pointers during the closing minutes of the opening quarter to stretch the lead to 41-22 entering the second.

Dallas coach Rick Carlisle was ejected for arguing with officials midway through the third quarter.

NUGGETS ALIVE VS. JAZZ
Jamal Murray had 42 points, eight rebounds and eight assists, while Nikola Jokic had 31 points, as the Denver Nuggets stayed alive with a 117-107 victory over the Utah Jazz in Game 5 of their Western Conference first-round series near Orlando on Tuesday night.

Murray scored 33 in the second half alone, while Michael Porter Jr. had 15 points in the game and Jerami Grant added 13 to help the Nuggets rally. Denver now trails 3-2 in the series.

Donovan Mitchell scored 30 points, while Mike Conley and Jordan Clarkson had 17 each and Rudy Gobert had 11 points and 12 rebounds for Utah. Joe Ingles added 13 and Royce O’Neale scored 10.

The game was tied 101-all with under four minutes to play when Murray took over. He hit a fadeaway off an offensive rebound, drained a 3-pointer and hit two step-back jumpers to put Denver ahead 110-101 with 1:20 remaining.

Mitchell split a pair of free throws and Gobert dunked to pull Utah within six at 110-104, but Murray passed to Jokic in the corner, and his 3-pointer with 23 seconds left put Denver back up 113-104.

Mitchell banked in a 3-pointer with 18.8 seconds remaining, but Grant hit four free throws in the final 14 seconds to seal it.

Down 81-69 in the third quarter, the Nuggets went on a 13-3 run, led by Murray, who had 11 of those. His spinning layup with 35 seconds left made it 84-82, but Gobert’s dunk put the Jazz ahead 86-82 heading into the fourth.

Jokic hit a 3-pointer to open the fourth, and Porter’s turnaround jumper put Denver ahead 87-86 with 10:13 left, its first lead since early in the second quarter.

The teams traded small runs, with the Nuggets taking a four-point lead and Utah responding to go up by two. Grant hit a 3-pointer to put Denver up 101-98, and a layup by Conley and free throw from Gobert tied it with 3:46 left.

Clarkson heated up in the second quarter, scoring 11 of his points and hitting a trio of 3-pointers to help the Jazz take a 63-54 lead at halftime. — Reuters

PBA to strictly monitor conduct of team workouts

By Michael Angelo S. Murillo, Senior Reporter

OFFICIALLY back to doing activities after being inactive for nearly half a year because of the coronavirus pandemic, the Philippine Basketball Association (PBA) said it would strictly monitor the teams to make sure that the league’s push to resume is a success.

On Tuesday PBA teams began doing modified team workouts which were done under the guidance of health and safety protocols crafted by the league and approved by authorities tasked to lead the country’s fight against the spread of the coronavirus.

It marked the first time that the teams gathered as a “collective” for on-court training since the PBA decided to suspend its Season 45 on March 11.

Included in the protocols set for the teams are for players and team personnel to undergo a series of swab testings; players are expected to abide by the “closed circuit” method that has them confining their travel as much as possible to home-to-practice facility and back; and during workouts, to be overseen by a designated health officer, players must observe proper distancing (only four players at a time) and hygiene.

Also, facilities to be used by the teams must undergo hospital standard disinfection and thoroughly sanitized after being used.

Teams that began their workouts on Tuesday were the Barangay Ginebra San Miguel Kings, Rain or Shine Elasto Painters, Blackwater Bossing, Alaska Aces, and San Miguel Beermen.

The TNT KaTropa, meanwhile, were set to drive to INSPIRE Sports Academy in Calamba, Laguna, on Wednesday where they would be holed up as a team for three weeks to train.

The rest of the field are expected to begin their team workouts anytime this week.

For PBA Commissioner Willie Marcial, to see the league back in the swing of things is a welcome development, especially since the resumption of activities took a while to happen because of the strict requirements needed to get approval and the varying quarantine conditions.

He was quick to say, however, that getting some activities in was just the start of a long process that the league has to go through if an October restart of Season 45 is to happen.

In relation to this, Mr. Marcial said the league would do everything it can to have the process back as seamless as possible.

“We will be having surprise inspections. We already have teams that will be going around, observing and taking videos of the team workouts. We also have player logs. And if we see any violation they will be fined accordingly,” said Mr. Marcial at the online Philippine Sportswriters Association Forum on Tuesday where he was a guest along with PBA Chairman Ricky Vargas.

A medical committee, led by renowned physician Dr. Raul Canlas, has also been set up to function as the center of information when it comes to the health and wellness of the players.

Also at the forum, Mr. Marcial shared that the league is looking at mounting a bubble like that done in the National Basketball Association to host all the matches if ever PBA Season 45 resumes.

The NBA resumed on July 31 at the ESPN Wide World of Sports Complex in Orlando, Florida, after suspending its own season for four months and is proving to be successful as not one case of the coronavirus has been reported to date.

For the planned PBA bubble, among the places being considered for it are the Smart-Araneta Coliseum in Quezon City, Clark in Pampanga and the Inspire Sports Academy in Laguna.

Also being considered as locations are Batangas and Subic, Zambales.

“We have been talking to different people for possible bubble locations. I will lay everything to the board so we can decide which is the best option to take,” Mr. Marcial said.

UST athletic director steps down amid bubble controversy

RIGHT in the midst of an investigation on the alleged training bubble held in Sorsogon by the University of Santo Tomas (UST) men’s basketball team, the school’s athletic director, Fr. Jannel Abogado, O.P., stepped down from his post.

In a report by The Varsitarian, the official publication of UST, on Wednesday, it was said Mr. Abogado had submitted his resignation as head of the Institute of Physical Education and Athletics (IPEA) and was accepted by school administration.

Mr. Abogado was at the helm of the institute beginning 2017 and will be replaced by Fr. Ermito de Sagon, O.P., who was UST’s athletic director in the past, holding the post for 16 years.

The resignation of Mr. Abogado came amid ongoing investigation on the alleged training bubble of the Growling Tigers in Capuy, Sorsogon, hometown of coach Aldin Ayo, beginning in June when most of the country was still under stricter quarantine setup.

In the supposed training bubble, the Tigers were reportedly preparing for Season 83 of the University Athletic Association of the Philippines targeted to begin early next year.

Mr. Abogado was brought to the fore when a supposed waiver, asking parents of the athletes to allow their children to join the training, bearing his name circulated on social media.

The alleged training bubble, if proven to be true, was in direct violation of government health and safety protocols put out as mitigating measures against the spread of the coronavirus.

As per existing regulations, sports activities, including training, are widely prohibited at this point of the pandemic.

The supposed UST bubble was brought to light as news of former captain CJ Cansino being cut from the team following a disagreement with coach Aldin Ayo in Sorsogon came out last week.

Cansino has since moved on, hooking up with the University of the Philippines while Mr. Ayo has not said much on the issue.

Meanwhile, later on Wednesday, UST officials were set to meet University Athletic Association of the Philippines executives and members of the body created by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases to look into the matter.

In the meeting, UST is expected to present the status of its internal investigation from which the UAAP management and government authorities will base their decision from before handing out possible penalties.— Michael Angelo S. Murillo

United City partners with Monte’ Athletics for kits, merchandise

NEW Philippines Football League entrant United City Football League recently unveiled its home and away kits for the 2020-2021 season done in partnership with Monte’ Athletics.

United City, which took the place of three-time champion Ceres-Negros FC in the PFL, will be parading the kits when they plunge into action in the league and in the AFC Cup.

Eric Gottschalk, co-founder of United City, said they are very excited with the newly forged partnership with Monte’ Athletics, which also covers the club’s merchandise, ranging from replica jerseys to branded face masks, through Monte’ Athletics’ online store on Lazada.

“I’m very happy to announce that Monte’ Athletics will be the official kit supplier of UCFC for the 2020 season. We chose them as we want to stay true to our mission of supporting football in the Philippines; and this should also include its stakeholders, the local community. We were right away convinced of the premium quality of the high-performance range of the Monte’ products, so it was an easy decision to partner with them for our inaugural season,” said Mr. Gottschalk.

Monte’ Athletics is a sportswear store whose office is located in Antipolo City.

Mr. Gottschalk said much collaboration went into the design of the kits, with the brand and the players coming up with the design while also incorporating a logo which was part of a public design competition voted by the fans.

Since officially coming on board the PFL in July, United City has steadily taken form.

It has re-signed the core of the Ceres squad, led by Stephan Schrock, Bienvenido Maranon, and recently named a new coach in British-Australian Trevor Morgan.

United City said it recognizes that it has big shoes to fill taking the place of Ceres but is determined to make its own mark.

For fans who are interested in purchasing the official United City Home and Away replica jerseys, they will be available at the Monte’ Athletics online store on Lazada starting Sept. 1. The club will also announce additional retail and online partners in the Philippines on a later date. — Michael Angelo S. Murillo

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