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PhilRice says DBM-proposed budget for 2021 points to 5% decline in funding

THE Philippine Rice Research Institute (PhilRice) said Monday that its prospective budget of P621 million for next year represents a 5% decline in funding levels for this year.

“This 2021, the budget suggested to us by the DBM (Department of Budget and Management) is about P621 million. Nag decreased po ‘yan ng 5% (It’s reduced by 5%) relative to the previous year,” PhilRice Director John C. de Leon said during the hearing of the House committee on the North Luzon Growth Quadrangle.

The P621-million budget includes P267 million for personal services and P354 million for maintenance and other operating expenses. No funding is set aside for capital outlays.

Mr. De Leon was not able to explain why the 2021 budget is 5% lower, but said that the proposal is still being finalized.

“Hindi pa po final ‘yung aming tier 1 budget. Sabi ng DBM maybe they will add some more dahil po dinadagdagan nila kami ng tao but the (allotment for) personal services, hindi po. Kaya if titignan po natin yung aming budget, parang dumadami ‘yung tao, pero ‘yung budget hindi naman nadagdagan, (The tier 1 budget is not yet final. The DBM told us we might get more because we have increased staff, though personnel services funding has not increased)” he said.

For tier 2, PhilRice is seeking P6.03 million for 2021, P6.35 million for 2022 and P6.71 million for 2023 as “support to emergency food production and availability intervention.”

PhilRice hopes to increase the palay harvest and rice yields and to make more milled rice available for communities near its facilities, while preventing food scarcity.

“Sabi ko nga po hindi kami nagpo-produce ng rice but kung magpe-persist ‘yung COVID (coronavirus disease 2019) struggle, makatulong man lang kami sa mga barangay na malapit sa bawat station sa pamimigay nila ng rice (We are not rice producers ourselves but if the coronavirus persists we hope to at least supply rice to our host communities),” Mr. De Leon said.

PhilRice, an arm of the Department of Agriculture, is tasked with developing high-yielding and cost-reducing technologies for farmers.

Baguio Representative Mark O. Go expressed support for the budget proposal.

“I’m more interested na dagdagan ang pondo ninyo sa aspetong research and development. Doon talaga ‘yan eh diba. Kailangan natin ‘yung pondo na ‘yan para lalo tayong maka-develop ng mga variety ng mga bigas o rice na talagang mag-i-increase ng productivity, (I am more interested in adding funding to R&D because that’s the real mission… to develop rice varieties that will raise productivity)” he said.

Mr. De Leon added that as of this week, about two million bags of seed were distributed to beneficiaries of the Rice Competitiveness Enhancement Fund (RCEF).

RCEF aims to help farmers deal with the influx of imported rice as a result of the Rice Tariffication Law. The program has a budget of P10 billion annually between 2019 and 2024. — Genshen L. Espedido

Reconciling the Condominium Act and the NIRC for tax exemption

Well settled is the rule that tax exemptions are construed strictissimi juris against the taxpayer and liberally in favor of the government. As a result, exemptions must be shown to exist clearly and categorically, and supported by clear legal provisions. In other words, one who seeks an exemption must justify it by words “too plain to be mistaken and categorical to be misinterpreted.” Thus, the burden of proving that one is tax-exempt rests on the taxpayer.

This rigid standard for claiming tax exemption seems to imply that any doubt respecting a taxpayer’s claim for exemption should always result in a denial.

However, this is not always the case. The principles above will apply only when the taxpayer is clearly subject to the tax being levied against him. The reason is obvious: it is illogical and impractical to determine who are exempted without first determining who are covered by the provision. Thus, unless a statute imposes a tax clearly, expressly and unambiguously, what applies is the equally well-settled rule that the imposition of tax cannot be presumed. In fact, in case of doubt tax laws must be construed strictly against the government and in favor of the taxpayer.

A law will not be construed as imposing tax unless it does so clearly and expressly, if the tax law does not impose a tax but the Bureau of Internal Revenue (BIR) issuance does, the latter is void. This legal principle is one of the reasons why the Supreme Court (SC) invalidated Revenue Memorandum Circular (RMC) No. 65-2012, in a case recently released on June 17, 2020.

RMC No. 65-2012 provides that association dues, membership fees, and other assessments/charges collected by a condominium corporation from its tenants form part of its gross income. Consequently, these are income payments or compensation for beneficial services it provides to its members and tenants. Thus, subject to income tax and value-added tax (VAT). Moreover, since a condominium corporation is subject to income tax, payments made to it are also subject to applicable withholding taxes.

According to the SC, RMC No. 65-2012 invalidly declares that the amounts paid as dues or fees by members and tenants of a condominium corporation form part of its gross income; thus, it is subject to income tax, VAT and withholding tax.

The SC reasoned that a condominium corporation is not designed to engage in activities that generate income or profit. Citing the case of Yamane vs. BA Lepanto Condominium Corporation, the Court elucidated that even though the corporation is empowered to levy assessments or dues from unit owners, these amounts collected are not intended for incurrence of profit by the corporation or its members, but to shoulder the multitude of necessary expenses that arises from the maintenance of the condominium project.

Moreover, while a condominium corporation enjoys the powers of ownership, it is prohibited by law from transacting properties for the purpose of gainful profit.

The High Court went on to discuss the nature of condominium corporations under Republic Act (RA) 4726 (The Condominium Act), explaining that the collection of association dues, membership fees, and other necessary assessments/charges is purely for the benefit of the condominium owners. It is a necessary incident to the purpose to effectively oversee, maintain, or even improve the common areas of the condominium as well as its governance.

Evidently, the nature of condominium corporations and the purpose for which the fees and dues are collected are the primary factors considered by the Court in concluding that in collecting the said fees and dues, condominiums are not engaging in trade or business.

Furthermore, the High Court categorically declared RMC No. 65-2012 as void since it expanded, if not altered the list of taxable items in the law. It noted that the definition of gross income under the Tax Code, as amended by the Tax Reform for Acceleration and Inclusion (TRAIN Law), does not include association dues, membership fees, and other assessments/charges collected by condominium corporations as sources of gross income.

Hence, RMC 65-2012 is void, pursuant to well-established rule that in case of conflict between the law and the implementing rule, the law shall prevail.

Another issue tackled in the case was whether assessment dues, membership fees and other assessments/charges are subject to income tax, VAT and withholding tax.

For income tax, the SC ruled that association dues, membership fees, and other assessments/charges are not subject to income tax because they do not constitute profit or gain. They are collected purely for the benefit of the condominium owners and are the incidental consequence of a condominium corporation’s responsibility to effectively oversee, maintain, or even improve the common areas of the condominium as well as its governance.

In relation to this, it should be noted that withholding tax may be imposed only when there is income, active or passive. Having established that the assessment dues, membership fees, and other assessments/charges are not considered income, but are collected to shoulder the multitude of necessary expenses that arise from the maintenance of the Condominium Project, then it is not subject to withholding tax.

For VAT, the SC clarified that association dues, membership fees and other assessments/charges are not subject to VAT because they are not mentioned in Sections 106, 107, and 108 of the Tax Code.

However, this reasoning appears to be inconsistent with the earlier pronouncement of the SC in CIR vs. SM Prime Holdings, Inc., where it held that the enumeration of services subject to VAT under Section 108 is not exhaustive. The words, “including,” “similar services,” and “shall likewise include,” Indicate that the enumeration is by way of example only. This apparent contradiction might confuse taxpayers as to which services are subject to VAT. The author submits that the ruling in CIR vs. SM Prime Holdings, Inc., is controlling, considering that one of the issues raised therein is whether the enumeration in Section 108 is exhaustive in coverage.

Going back to the VAT portion of the case, the SC added, that when a condominium corporation manages, maintains and preserves the common areas in the building, it does so only for the benefit of the condominium owners. Therefore, it cannot be said to be engaged in trade or business, thus, the collection of the fees and dues is not a result of the regular conduct or pursuit of a commercial or economic activity, or any transactions incidental thereto.

Likewise, the condominium corporation is not rendering services to the unit owners for a fee, remuneration or consideration, since the fees and dues it collected form part of a pool from which it must draw funds in order to bear the costs of maintenance, repair, improvement, and other administrative expenses.

It should be emphasized, however, that the TRAIN Law now expressly exempted from VAT the said fees and dues collected by condominium corporations.

The impact of this recent development on condominium corporations cannot be discounted. There is a likelihood that condominiums that paid taxes under the void RMC may file a claim for tax refund for the illegally collected tax. However, is this remedy still available to them?

In Accenture, Inc., vs. CIR, it was ruled that when the Supreme Court decides a case, it does not pass a new law, but merely interprets a pre-existing one. It is elementary that such interpretation constitutes part of the law from the date it was originally passed, since the Court’s construction merely established the contemporaneous legislative intent that the interpreted law carried into effect.

Thus, the Court’s interpretation of the Tax Code’s provision exempting from income tax, VAT and withholding taxes the fees and dues collected by a condominium corporation is considered part of the law from the time of its enactment. Consequently, following High Court’s pronouncement in CIR vs. San Miguel Corporation, that the declaration of a tax regulation as invalid and no effect rendered the collection of taxes thereunder baseless, and thus illegal, the invalidation of RMC No. 65-2012 rendered as illegal the collection of taxes thereunder.

This gives the concerned condominiums the right to request the return of such illegally collected taxes under Section 204 and 229 of the Tax Code, as amended. However, not all taxes paid may be refunded, as claims for refund of erroneously or illegally collected taxes should be filed within two (2) years from the date of its payment.

To reiterate, the burden rests upon the taxpayer to prove entitlement to his claim for refund. For refunds are akin to tax exemptions and are strictly applied against the claiming party.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Peter Irish R. de Leon is an associate of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

US patrols in South China Sea not linked to VFA, says Locsin

THE Philippines’ top diplomat on Monday said the presence of three US Navy aircraft carriers in the South China Sea had nothing to do with President Rodrigo R. Duterte’s decision to keep a military agreement with Washington on the deployment of troops for war games.

Three American aircraft carriers were patrolling the Indo-Pacific waters for the first time in nearly three years, a massive show of naval force in a region roiled by spiking tensions between the US and China, the Associated Press reported on June 12.

The patrol of the three warships, accompanied by Navy cruisers, destroyers, fighter jets and other aircraft comes as the US escalates criticism of China’s response to the coronavirus pandemic, its moves to impose greater control over Hong Kong and its island-building activities in the disputed waterway.

“No,” Philippine Foreign Affairs Secretary Teodoro L. Locsin, Jr. told the ABS-CBN News Channel when asked if the US patrols were linked to Mr. Duterte’s decision to suspend the termination of the visiting forces agreement.

“The United States is exercising its freedom of navigation in the South China Sea,” he said. “That’s an international right.”

Mr. Duterte this month suspended the termination of the deal “in light of political and other developments in the region,” according to its Department of Foreign Affairs (DFA).

The suspension of the 21-year-old pact is effective for half a year and may be extended by six more months, DFA told the US Embassy in a letter dated June 1.

The agreement provides the legal framework for the temporary presence of US troops in the Philippines.

Mr. Duterte in February officially informed the US he was ending the pact after the US visa of his former police chief who enforced his deadly war on drugs and who is now a senator was revoked. It was supposed to take effect in August.

The President suspended his decision to abandon the pact because “he saw that the tensions in the South China Sea were getting in the way of a united response to the COVID-19 crisis,” Mr. Locsin said.

He also said his agency and the Defense department were not behind Mr. Duterte’s decision.

“He saw the tensions in the South China Sea are getting in the way of a united response to the COVID,” Mr. Locsin said. “Having a rise in military tension in the South China Sea was not helping anybody. He just called and said ‘Suspend it.’”

“What it does is it lowers the tensions in the South China Sea” he said “The American side won’t feel that they have their backs to the wall and the Chinese will be actually, I believe relieved that the Americans will feel that way so we can then concentrate on COVID,” he added.

Meanwhile, he would have the time to work on arrangements in place of the defense pact, Mr. Locsin said.

Mr. Duterte has sought deeper trade and investment ties with China since he became president in 2016, in contrast to his predecessor who sued Beijing at an international tribunal and won. Critics have accused him of gambling with Philippine sovereignty in the process. — CAT

Coronavirus cases near 31,000; death toll reaches 1,177

THE Department of Health reported 630 new coronavirus infections on Monday, bringing the total to 30,682.

The death toll rose to 1,177 after eight more patients died, while recoveries rose by 250 to 8,143, it said in a bulletin.

Of the new cases, 467 were reported in the past three days, while 163 were reported late, the agency said. There were now 63 laboratories licensed to test COVID-19 samples.

Health Undersecretary Maria Rosario S. Vergeire said laboratories were regularly reporting their inventory of supplies so they can prepare better.

Zoning has also allowed laboratories to help each other when the capacity of one of them decreases because of operational issues, she said.

Also yesterday, the presidential palace said there was no decision yet whether to relax the lockdown in Manila and nearby cities, where infections were mostly concentrated, by July.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

It’s too early to tell whether Metro Manila’s lockdown should be relaxed further into a modified general community quarantine, Presidential Spokesman Harry L. Roque said at a news briefing.

He said science would dictate the decision on the capital region’s lockdown.

The lockdown in most parts of the country has lasted 100 days, longer than any country and leading to criticisms that it had been ineffective in slowing infections.

“The government has developed a ‘framework’ to balance people’s health and the economy,” Mr. Roque said.

He said the rise in cases and the slowing death rate were not unusual. The world is experiencing a “new and dangerous phase” of rising global infections, Mr. Roque said, citing the World Health Organization.

On June 18, 180,000 cases were reported globally, the highest daily tally. — Gillian M. Cortez

Kanlaon emits steam; 136 quakes recorded in the past 24 hours

STATE volcanologists are closely monitoring Kanlaon Volcano on Negros island in central Philippines after it emitted white steam-laden plumes 200 meters into the sky.

At least 136 earthquakes were recorded in the volcano, part of the so-called Pacific Ring of fire — a major area in the basin of the Pacific Ocean where many earthquakes and volcanic eruptions occur — in the past 24 hours, the Philippine Institute of Volcanology and Seismology (Phivolcs) said on its website.

The volcano was at Level 1, meaning it was in an abnormal condition and had entered a period of unrest, the agency said in an 8 a.m. bulletin on Monday.

Four of the 136 earthquakes were at magnitude 3.2 to 4.7, it said.

Intensities 2 to 5 were felt in La Carlota and Bago City in Negros Occidental and Canlaon City in Negros Oriental.

Phivolcs said sulfur dioxide emission was at an average of 438 tonnes a day on June 13.

Lower and mid-slopes of Kanlaon seem to have subsided as magma leaves the volcano’s underground reservoir, it said.

The agency said lower slopes of the volcano’s southeastern flanks have been subsiding, while mid-slopes have been swelling since April.

“These parameters indicate that hydrothermal or magmatic activity is occurring beneath the edifice,” it said.

The four-kilometer radius of the permanent danger zone is off-limits to the public given the risk of sudden steam-driven eruptions, Phivolcs said.

Civil aviation authorities should advise pilots to avoid flying close to the volcano’s peak, it added. — Vann Marlo Villegas

Local gov’ts blamed for cash aid delays

THE Social Welfare department blamed strict validation procedures by local governments for delays in the distribution of government cash aid to low-income households affected by the lockdown amid a coronavirus pandemic.

Some beneficiaries also live in remote areas where there are security threats, making it difficult to reach them, Social Welfare Undersecretary Danilo Pamonag told the House good government committee.

He added that 1,324 social welfare staff had to be self-quarantined and 19 later tested positive for the coronavirus after being exposed.

About 17.6 million families have received emergency subsidies worth P99.6 billion, Mr. Pamonag said. He added that 1,560 local governments out of 1,624 have completed their payouts.

Mr. Pamonag said about five million families who did not receive cash aid for the first tranche would be accommodated for the second tranche of the program. This will bring the number of beneficiaries to 23 million families, he added. — Genshen L. Espedido

Regional Updates (06/22/20)

Bohol holds ceremonial reopening of tourism in COVID-free Panglao; airport still closed

A CEREMONIAL reopening of tourism establishments in Panglao was held June 22, but the local government has yet to give clearance for the resumption of flights at the Bohol-Panglao International Airport.

The ceremony was marked by a turnover of booklets containing guidelines of new operating protocols in four different tourism sectors — accommodation establishments, land and water tourism transport, dine-in restaurants, and tourism-related activities — by Panglao Mayor Leonila P. Montero to Bohol Governor Arthur C. Yap.

Bohol is being eyed by the national government as a model site for the relaunching of the tourism industry amid the continued threat of the coronavirus disease 2019 (COVID-19).

Panglao, an island off the Bohol mainland, has no COVID-19 active cases as of June 21 data from the provincial government.

The entire Bohol province currently has 17 active cases, all of whom are returning residents or overseas Filipino workers (OFWs) who have been under isolation since arrival.

Mr. Yap said while the local government’s long-term goal is to boost agriculture as the main economic driver of the province, tourism will remain an important livelihood source.

“In Bohol, our income is driven by two things — OFW and tourism. The third to a lesser degree, which we hope to correct in the coming year is the income we are deriving from agriculture, which we hope to bring up,” he said in his speech during the ceremony.

He said the lockdown in the past three months and the COVID-19 crisis in general gave the province time and space “to think about what we gave importance to in tourism” and how they can do things better in terms of environmental protection.

Also during the event, the new Panglao Tourism Office was launched, located near the docking area for water tourism transport facilities, where a “One Entry and One Exit Policy” will be enforced. — Marifi S. Jara

DoTr assures Mindanao railway pushing through despite Davao City mayor’s call to ‘de-prioritize’ project

THE DEPARTMENT of Transportation (DoTr) has given assurance that the delayed Mindanao railways project will be rolled out despite a recommendation from Davao City Mayor Sara Duterte-Carpio to remove the project from the government’s priority list for now.

“De-prioritization does not mean cancellation. The project will continue. I believe the Office of Mayor Sara Duterte already received our letter,” Transportation Assistant Secretary Eymard D. Eje, who handles the Mindanao cluster project implementation and special concerns, said in a Viber message.

BusinessWorld learned that Ms. Duterte-Carpio presented the city’s position paper on deferring the construction of the railway’s first segment — spanning the cities of Davao, Tagum, and Digos — during the regional Infrastructure Development Committee’s 2nd quarter meeting held June 9 through video conference.

The National Economic and Development Authority’s (NEDA) Davao Region office, in a statement, confirmed the position paper that cited several concerns: unresolved alignment issues between the railway and other priority projects such as the Davao City Bypass Road; still unsigned loan agreement between the Philippines and China, which will fund the project through an official development assistance loan; and potential insufficient ridership to cover operating costs.

The infrastructure committee has endorsed the paper to the Regional Development Council (RDC) for further deliberation.

Mr. Eje, on the other hand, said they have already addressed the issues raised by the Davao mayor in a letter.

He explained that the alignment issue between the railway and the bypass can be resolved as the road design is flexible enough to adjust to the train’s path.

The government last week signed an P18.5 billion loan agreement with Japan for the supplemental financing of the second phase of the bypass construction.

The loan with China for the railway, Mr. Eje said, is expected to be signed “soon.”

The transport official also noted that the government will acquire a 40-meter wide right-of-way along the train line as reserve area for possible expansion into a dual-track system in the future.

He also noted that the DoTr pushed for the dual-track, electric train as recommended by the RDC, but the NEDA Board made the final decision to initially construct a single-track, diesel-fueled system.

Mr. Eje said the feasibility study for the first phase of the Mindanao Railway Project (MRP) indicates that the train system will have enough patronage to support operations.

The MRP, with an estimated cost of P82.9-billion for the 102-kilometer first segment, is among the first priority projects listed under the Build, Build, Build program of the administration of President Rodrigo R. Duterte, father of the Davao mayor. — Maya M. Padillo

Baguio City will be pilot area for DA’s urban agriculture project

BAGUIO CITY has been named pilot area for the urban agriculture project of the Department of Agriculture (DA), intended to contribute to food security in urban areas across the country amid the coronavirus disease 2019 (COVID-19) pandemic.

Agriculture Secretary William D. Dar and Baguio City Mayor Benjamin B. Magalong signed a memorandum of understanding on June 19 for the city’s implementation of the urban agriculture initiative under the DA’s Plant, Plant, Plant program.

Under the agreement, the regional and local offices of the DA and its attached agencies will provide crop and poultry inputs while the city government will identify the farm sites and designate an urban agriculture project focal person.

The Baguio government will also endorse the program to the private sector for possible participation.

“By adopting Baguio City for the urban agriculture project, it is hoped that agricultural tourism could be developed in the city to further promote the importance of agriculture and to urge its people to engage into urban gardening,” the DA said.

The agreement between the DA and the Baguio City government came after the House of Representatives committees on agriculture and food, and food security passed a bill on June 17 that seeks to institutionalize community gardens and urban farming for additional sources of food.

Under the lead House Bill 3412 authored by Negros Occidental Rep. Jose Francisco B. Benitez, local government units are tasked to find and develop idle government and/or private lands. — Revin Mikhael D. Ochave

National gov’t to evaluate, send assistance to Cebu City as COVID cases rise

AS THE number of coronavirus cases continues to spike in Cebu City, the national government is sending a team to evaluate and assist in curbing the outbreak, said Palace Spokesperson Harry L. Roque.

In a briefing on Monday, Mr. Roque said the National Task Force (NTF) is giving closer attention to Cebu City, where there are now more than 4,000 positive cases of the coronavirus disease 2019 (COVID-19)

Mr. Roque said the NTF will hold a week-long evaluation of the “ground level response” of the local government starting Monday. A “special Visayas Deputy Implementer” will also be appointed along with the establishment of an operation center in the city.

Cebu City is currently the only area in the country placed under the strictest quarantine policy.

It’s neighboring Talisay City was initially placed under a similar protocol, but the provincial and municipal governments’ appeal for a less stringent category has been approved by the national government. — Gillian M. Cortez

Over 4,500 buses, modern jeepneys added to Metro Manila public transport

MORE THAN 3,000 buses and 1,500 jeepneys were deployed Monday in the National Capital Region under the second phase of the government’s transportation revival plan, according to the Metro Manila Development Authority (MMDA).

In the first phase last week, only 1,500 buses were given authority to operate in the capital where most businesses were already allowed to reopen, which left thousands of workers faced with commuting strains.

In briefing Monday, MMDA Spokesperson Celine A. Pialago said adjustments were made on the routes for public transportation, trimming it to 31 from 96.

“Old jeepney routes will instead be used as city bus routes,” she said.

The Land Transportation Franchising and Regulatory Board (LTFRB) said last Sunday that an initial 15 jeepney routes will be opened on June 22. An additional nine will be launched on the 24th, and another 10 on the 26th.

The old jeepneys have yet to be allowed to resume operations. — Gillian M. Cortez

Nationwide round-up

Executive, legislative branches working out extension of President’s emergency powers

THE PRESIDENTIAL Palace on Monday said the executive department is collaborating with legislators for the passage of a law that will extend the President’s emergency powers for response measures on the coronavirus disease 2019 (COVID-19) crisis. The existing law, known as the Bayanihan to Heal As One Act, will expire on Wednesday, June 24. Palace Spokesperson Harry L. Roque, in a briefing, said they are still “ironing” out details of the bill before Congress holds special sessions to pass the extension. The two branches of government are also addressing the administration’s proposed economic stimulus package that will help both workers and businesses affected by the COVID-19 outbreak. “Nakikipag-ugnayan po ang ating Department of Finance at ang economic team natin sa parehong kapulungan ng Kongreso para po plantsahin iyong isang stimulus package at saka iyong renewal ng emergency powers (The Department of Finance and the economic team are working together with both chambers of Congress to iron out details of the stimulus package and renewal of the President’s emergency powers),” he said. — Gillian M. Cortez

Gov’t rushes to bring home remains of 282 OFWs

THE DEPARTMENT of Foreign Affairs (DFA) is expediting the arrangement of cargo flights to bring home the remains of 282 Filipinos in the Kingdom of Saudi Arabia, including 50 who died from the coronavirus, after the Philippine government was given a 72-hour deadline. “How fast were going to do that? We need a flight to get there. We’re getting a cargo flight even as we speak,” Foreign Affairs Secretary Teodoro L. Locsin, Jr. said in an interview over ANC on Monday. Labor Secretary Silvestre H. Bello III on Sunday said the Saudi Arabian government has given only 72 hours to bring home the deceased Filipinos. Mr. Locsin said Saudi Arabian Ambassador Abdullah Al Bussairy had assured him the remains will not be cremated ahead of the flight. “There was a fear going around that they will dispose the bodies, and he said ‘No, we don’t do that. We’re a Muslim country. We don’t cremate. The bodies are all intact and we are ready to help you bring them home,’” he said. Foreign Affairs Assistant Secretary Eduardo Martin R. Meñez said the repatriation of remains may take weeks. “Repatriation of remains from KSA is not a simple process (sometimes taking weeks or months in regular circumstances),” he told reporters over phone message Monday. He noted also that some of the deaths may be due to natural causes, but were not repatriated due to the pandemic. “With a Filipino community of over 800,000, there is a large probability that many of the 282 died of natural causes (or perhaps even some victims of crime) but could not be repatriated because of the COVID situation.” — Charmaine A. Tadalan

DTI investigating PWD card abuse

THE DEPARTMENT of Trade and Industry (DTI) is investigating the reported abuse of identification cards for persons with disability (PWD), who are entitled to discounts and other benefits under Philippine law. “Abuse of privilege in any law ruins the spirit behind it. Such discount is solely meant for actual persons with disability. DTI, through the Fair Trade Enforcement Bureau (FTEB), is currently investigating the matter,” Trade Secretary Ramon M. Lopez said in a press release on Sunday. The issue first circulated on social media with an alleged influential family having all its members as PWD cardholders while restaurant owners have also complained about fraudulent use of the special ID. Persons with psychosocial, learning, visual, orthopedic, and hearing disabilities as well as mental and chronic illnesses may avail of the card, based on Republic Act No. 10754. Holders may use the card for discounts and exemptions from value added tax for certain products and services, including those offered at restaurants, hotels, recreational centers, as well as for medical services and medicine purchases. Mr. Lopez said individuals should not abuse the use of the cards, especially while restaurants try to keep their businesses afloat during the coronavirus pandemic. Trade Undersecretary for Consumer Protection Group Ruth B. Castelo said the DTI will file the appropriate charges against those proven to have used fake PWD cards. Related complaints may be reported to the National Council on Disability Affairs, National Bureau of Investigation, or Presidential Anti-Corruption Commission. — Jenina P. Ibañez

PhilHealth boss says ‘inefficiencies’ inevitable in a ‘large corporation’

PHILSTAR

THE HEAD of the Philippine Health Insurance Corp. (PhilHealth) defended the agency saying “inefficiencies” are expected for a “large corporation” following reports of a P154 billion loss amid continued corruption allegations against its officials. “We are a large corporation. Everyday, we process about 50,000 claims and in 16 regional offices, 120 branches…. some of them manually… sa laki ng (given the large) volume of transactions, may inefficiencies ‘yan (there will be inefficiencies),” PhilHealth President Ricardo G. Morales said in a briefing on Monday. PhilHealth is a government-owned and controlled corporation attached to the Department of Health. Mr. Morales also said has been no P154 billion loss as confirmed by the Commission on Audit. “They could not find, could not substantiate this P154 billion loss in the financial statements submitted by PhilHealth from 2013 to 2017,” he said. Mr. Morales also took exception to corruption allegations, noting that accusations of anomalous activities in PhilHealth have existed even before he assumed the agency’s top post last year. — Gillian M. Cortez

Judges’ group denounce ‘abusive attacks, criticisms’

THE PHILIPPINE Judges Association (PJA) condemned the “abusive attacks and criticisms” against courts, judges, and the judiciary as a whole following a Manila court’s ruling convicting Rappler Chief Executive Officer Maria A. Ressa and former researcher Reynaldo Santos, Jr. for cyber-libel. “The Philippine Judges Association is saddened by how the judiciary is being dragged and vilified just because a decision was rendered in a manner not acceptable to the parties therein,” the group said in a statement signed by its president, Judge Felix P. Reyes. “The attacks on the judiciary are so vicious that they may lead to the public losing faith and respect in our judicial system,” it added. PJA reminded the public that courts “settle controversies on the basis of facts and law,” adding that when a party loses a case, it can avail of legal remedies provided by the law. “This kind of system makes people rely upon our courts with substantial certainty; it encourages the resolution of disputes in courtrooms rather than on streets,” PJA said. “Abusive criticisms and unfounded innuendoes hurled against courts and judges erode the public’s trust and confidence on the very situation tasked to protect the people’s rights.” — Vann Marlo M. Villegas

Foreign chief says DoJ still assessing damage cost for 22 fishermen hit by Chinese vessel

THE DEPARTMENT of Justice has yet to determine the compensation that will be demanded for the 22 Filipino fishermen in the June 9 sinking of their boat after colliding with a Chinese vessel, Foreign Affairs Secretary Teodoro L. Locsin, Jr. said. “They got justice. China acknowledged Chinese fishing company’s fault. Question is collecting damages yet to be determined,” Mr. Locsin said in a social media post Monday. “I trust only SOJ (Secretary of Justice Menardo I.) Guevarra to tell me how much, how paid and if we must file a case in Chinese court for the enforcement of NOT even a legal judgment.” The incident left 22 Filipino fishermen abandoned at sea until they were rescued by Vietnamese crewmen. The incident also prompted both states to conduct an investigation, which later found the Chinese company liable. Justice Secretary Menardo I. Guevarra, for his part, has given directives to the concerned provincial unit to assess the cost of the damage even as he noted the DoJ was not tasked to determine the amount. “I don’t remember that the DoJ was tasked before to determine the amount of compensatory or other civil damages, but since Secretary Locsin mentioned it, we’ll be very happy to help,” Mr. Guevarra told reporters over phone message Monday. “Through Undersecretary Adrian Sugay, I have already given instructions to the provincial prosecutor’s office nearest the place of residence of the fishermen concerned to gather the necessary information.” — Charmaine A. Tadalan

DoST launches poultry livelihood program

THE DEPARTMENT of Science and Technology (DoST) has launched a program that provides additional livelihood for communities affected by the coronavirus disease 2019 (COVID-19) crisis. In a statement on Monday, the DoST’s Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (PCAARRD) said it will implement its “Manok at Itlog sa Pamayanan” initiative that focuses on raising duck, native chicken, and commercial broilers and layers. The project will be implemented in the regions of Central Luzon, CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), Western Visayas, Zamboanga Peninsula, Davao Region, and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and General Santos City). The project coincides with an ongoing DoST-funded program where duck farmers are given access to a new duck breed called ItikPINAS, which also provides avenues for duck egg production and marketing. To help ensure market access, duck eggs produced from DoST projects are distributed to COVID-19 affected communities and frontliners in selected areas. Meanwhile, the DoST-PCAARRD said that when quarantine restrictions are lifted, the project of duck eggs and day-old ducklings distribution will shift to distribution of day-old ducklings to communities. “Qualified farmers or at least 10 families per region will be selected from the six implementing regions of the project and will be given ducklings to start or augment their duck raising and egg production business,” the agency said. — Revin Mikhael D. Ochave

Marcial determined not to let time spent in boxing go to waste

HAVING INVESTED much time and effort doing the sport of boxing, Filipino amateur boxer Eumir Felix Marcial said he is determined for these not to go to waste, including doing well in the Olympic Games and establishing a steady professional career after.

Speaking to Tiebreaker Vods’ The Hit List on Sunday, Mr. Marcial, 24, shared that where he is right now in boxing is a direct result of a lot of sacrifices and hard work on his part, and something he intends to continue building on moving forward.

“My journey in boxing has not been easy, having to juggle training and studies at one point. As much as I wanted to, I never really experienced what other teens experienced like going to the fields and playing and going to the river to swim because I had training,” said the Zamboanga native in Filipino.

“My father was strict when it came to training and he was really pushing me hard. But it was all worth it because I am here right now,” he added.

Mr. Marcial is having it solid in the past year, booking a spot in the Tokyo Olympic Games, which unfortunately was pushed back to next year because of the coronavirus disease 2019 (COVID-19) pandemic.

He also has seen his boxing stock rise considerably with many professional promoters looking to sign him to lucrative deals.

But despite the attention he has been getting from pro boxing promoters, Mr. Marcial made it known that representing the country in the Olympics is foremost in his mind, and went on to say that even if he eventually becomes a professional he is willing to continue competing for flag and country.

“Olympics is my dream and I’m really working hard to do well there. And even if I turn pro I still want to compete for the country in events like the Southeast Asian Games, Asian Games, World Championships and Olympics. I have been with the national team for a long time now and I know the feeling of representing the country and I want to continue experiencing that,” he said.

“Which is why I ask those who are interested to get my services as a pro to allow me to continue representing the country,” he added.

Right now, International Boxing Association (AIBA) rules allow pros to compete in events it sanctions like the Olympics.

While he has yet to officially name the promoter he is signing with, Mr. Marcial said he had a chance to talk with Filipino boxing legend Manny Pacquiao and his MP Promotions, and liked what he heard.

“Senator Manny is also a Filipino and he knows what boxers like me go through. He really wants to help fighters get out of poverty,” he said.

He further said other promotions from abroad have reached out to him as well and they are currently evaluating their offers.

In the event he does turn pro, the middleweight fighter said one of his dream fights is against Canelo Alvarez but admits at this point it would be a long shot since he has yet to start his professional journey.

Mr. Marcial, however, is watching the Mexican’s fights and said he is learning a lot from them.

Apart from Mr. Marcial, another Filipino boxer who has qualified for the Tokyo Games to date is female flyweight fighter Irish Magno. — Michael Angelo S. Murillo

Webb Simpson wins RBC Heritage at Harbour Town

LOS ANGELES — Webb Simpson birdied three of his final four holes to emerge with victory at the PGA Tour’s tightly contested RBC Heritage in South Carolina on Sunday.

The 34-year-old father of five made sure it was an extra special Father’s Day by recording his seventh career win on the tour after his bogey-free 64 saw him finish on a combined 22-under-par 262, a stroke clear of Mexico’s Abraham Ancer (65).

At one point early on it looked like play might have to be completed on Monday after thunderstorms forced a two-hour and 45-minute delay but rain and lightning then gave way to sunshine at the Harbour Town course on Hilton Head Island.

“It was a crazy day. Honestly, I’m speechless right now,” said Simpson, who started the day in a four-way tie for first.

“It looked like we weren’t going to finish but we went back out.

“It was a really long day on the golf course. I didn’t really get going until [noon] and then the putts started going in and I was getting confident.

“It’s amazing to be standing here right now,” added Simpson, who won the 2012 US Open on Father’s Day, and the 2018 Players Championship on Mother’s Day.

Ancer pushed him close, the Mexican’s long putt on 18 to force extra holes coming up short as the sun set.

Daniel Berger (65), last week’s winner at Colonial, and Englishman Tyrrell Hatton (66) finished tied for third a shot further back on 20-under 264.

American Nick Watney withdrew after testing positive for COVID-19 prior to the second round on Friday.

Next up on the schedule is the Travelers Championship from June 24–27 at TPC River Highlands in Cromwell, Connecticut, another event where fans are not allowed to attend. — Reuters

PHL among inaugural winners at FIBA Esports Open

By Michael Angelo S. Murillo, Senior Reporter

THE FIRST-EVER staging of the FIBA Esports Open concluded last Sunday with the Philippines among the inaugural winners.

A three-day event that started on June 19, the FIBA Esports Open 2020 featured 17 national teams split into regional groups and competed in different conferences.

Team Philippines, or “E-Gilas,” ruled the Southeast Asian conference, sweeping Indonesia in their five-game series.

Also emerging as winners were Italy (Europe Conference), Argentina (South America Conference), Saudi Arabia (Middle East Conference) and Australia (Oceania Conference).

E-Gilas, composed of Aljon “Shintarou” Gruzin (point guard), Rial “Rial” Polog Jr. (shooting guard), Custer “Aguila” Galas (small forward), Rocky “Rak” Brana (center/power forward), Philippe “Izzo” Alcaraz Herrero IV (center), Clark “Clark” Banzon (power forward) and Al “Alt” Timajo (center/power forward), capped its dominant performance in the tournament by beating its Indonesian counterpart, 71-35, in game five on Sunday.

The 36-point win took the Philippines’ average margin of victory to 32.8 points for the series.

The Filipino e-gamers found themselves in a tight contest early on in game five but once they found the leverage they were looking for they never looked back on their way to the big win.

Rial top-scored for the Philippines, finishing with 25 points, followed by Shintarou with 15 points to go along with five assists.

“Many congratulations on the 5-0 sweep! Thank you, Team Pilipinas! SBP is very proud of you all! Keep on playing and improving for future FIBA Esports tournaments. Remain humble but hungry. Laban Pilipinas! Lakad Matatag!” said Al Panlilio, Samahang Basketbol ng Pilipinas president, in a statement following E-Gilas’ dominant showing at the Esports Open.

Also with Team Philippines were coach Nielie “Nite” Alparas, and team manager Richard Brojan.

The FIBA Esports Open 2020 was angled to add further dimension to FIBA as an organization while also affording the basketball community some action after activities were halted by the coronavirus disease 2019 (COVID-19) pandemic.

Other teams which competed in the inaugural tournament were Austria, Brazil, Cyprus, Latvia, Lebanon, Lithuania, New Zealand, Russia, Spain, Switzerland and Ukraine.

At the FIBA Esports Open 2020 each team consisted of seven players, five on the court and two reserves. Games were played remotely on NBA 2K using the Pro-AM mode and allowing full customization of player avatars, uniforms and arena designs.

The entire FIBA Esports Open 2020 series was produced from the brand-new FIBA Esports Studio located in Riga, Latvia.

NBA worried but ‘resolute’ about restart as virus spreads

THE National Basketball Association is concerned about the growing number of coronavirus cases in Florida but intends to go ahead with its plan to restart the season in a “bubble” in the state, ESPN reported Sunday.

Florida has experienced record number of daily diagnoses of COVID-19 the past three days, with Saturday’s number of new cases at 4,049 — a single-day record. The NBA plans to host players at The Walt Disney World Resort near Orlando, Florida, where 22 teams with playoff chances will finish the regular season. The postseason will follow at the same site.

ESPN said commissioner Adam Silver recently held a conference call with NBA team executives and addressed the Florida outbreak. The report said Silver was “resolute but somber” and was confident that keeping players together in the bubble would help prevent coronavirus outbreaks.

The league is “closely monitoring the data in Florida and Orange County and will continue to work collaboratively with the National Basketball Players Association, public health officials and medical experts regarding our plans,” NBA spokesman Mike Bass said.

Orlando, located in Orange County in Central Florida, hasn’t been hit as hard by the coronavirus as South Florida. Still, players expressed concern that non-NBA employees, such as the housekeeping or dining staff, could introduce the virus into the bubble, according to the report.

“While we take some solace in knowing our players will not travel commercially to get to Orlando, that access to the campus is severely limited and, of course, all of the other health and safety protocols in place, the numbers will keep our attention,” Michele Roberts, executive director of the National Basketball Players Association, told ESPN. “If necessary to add further restrictions respecting those third parties having access to the campus, we will seek to implement them.”

On Tuesday, the league issued a 113-page guide that outlined health protocols and other procedures that will be in place in Florida. The teams are expected to arrive in the second week of July for an abbreviated training camp, with play resuming July 30.

The league has been on hiatus since March 11 because of the coronavirus pandemic. — Reuters

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