Stock prices fall on infection spike, lack of leads

April 19, 2021 | 9:00 pm

PSE Trading Floor — COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

PHILIPPINE shares went down on Monday as investors remained on the sidelines on the lack of positive catalysts amid the continued surge in coronavirus disease 2019 (COVID-19) cases in the country.

The Philippine Stock Exchange index (PSEi) declined by 35.05 points or 0.54% to close at 6,459.76 on Monday, while the all shares index went down by 12.49 points or 0.31% to 3,969.02.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco attributed the PSEi’s decline to a “lack of catalysts amid lingering pandemic worries.”

“The surge in our country’s COVID-19 cases remains unabated, in turn weighing on our economic outlook, while factors that could spur investor optimism are yet to be seen,” Mr. Tantiangco said in a Viber message.

COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said the market continues “to see pressure from selling action.”

“COVID-19 threats continue to plague market sentiment and only allow for some sporadic and isolated rallies,” Mr. Barredo said in a separate Viber message. “The PSEi was down along with India and Indonesia, but did not sync with the advances/recoveries seen in most other Asian markets.”

The Health department reported 9,628 new cases on Monday, which brought the tally to 945,745. Active cases were at 141,375.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan meanwhile said investors opted to put their money in the US market instead.

“Investors continued to pile up stock in the US following the country’s strong earnings from the blue chips and sound economic data, supporting economic recovery,” Mr. Limlingan said in a Viber message.

Majority of the PSE’s sectoral indices closed in the red on Monday, except for mining and oil, which gained 91.51 points or 1.02% to finish at 9,062.76; and financials, which improved by 0.21 point or 0.01% to 1,393.53.

Meanwhile, holding firms fell by 39.60 points or 0.59% to 6,577.28; industrials lost 44.83 points or 0.52% to end at 8,562.65; property went down by 16.77 points or 0.52% to 3,182.54; and services inched down by 6.20 points or 0.43% to close at 1,435.91.

Value turnover went down to P4.89 billion with 6.26 billion shares switching hands on Monday, from the P5.67 billion seen on Friday with 6.77 billion issues traded.

Philstocks Financial’s Mr. Tantiangco said trading “remained anemic” because investors remained on the sidelines due to “elevated risks.”

Decliners outnumbered advancers, 119 against 81, while 47 names closed unchanged.

Net foreign selling jumped to P704.45 million on Monday from the P522.31 million seen on Friday.

“The Philippine index remains in a corrective trend seeing next support between 6,400 and 6,200 while resistance stands between 6,600 to 6,700,” COL Financial’s Mr. Barredo said. — Keren Concepcion G. Valmonte

Gov’t won’t back down on lifting mining ban

April 19, 2021 | 8:24 pm

THE GOVERNMENT said it will not give in to pressure to reconsider Executive Order (EO) No. 130, which lifted the moratorium on new mining agreements, citing the need to generate new revenue due to the pandemic.

“Hindi natin pinagtutuunan ng pansin ang ganyan dahil marami tayong problema ngayon sa ating bansa. Kailangan natin ng pagkukuhanan ng pondo at ito ang isa sa mga paraan para tayo makaahon. (We are not paying attention to those calling for the EO to be withdrawn because the country is facing many problems. We need to find a source of funds and this is one path to recovery),” Environment Undersecretary Jonas R. Leones said in a Laging Handa briefing Monday.

According to Mr. Leones, funds generated by new mining agreements can be used for the coronavirus disease 2019 (COVID-19) containment efforts and to provide financial assistance to the poor.

He added that EO 130 is one of the initiatives taken by the government to address its financial challenges during the public health emergency.

On April 14, President Rodrigo R. Duterte signed EO 130, which also authorizes the government to review active mining deals for possible renegotiation. The EO amends an order issued by former President Benigno S. C. Aquino III in 2012, which froze the grant of new mining agreements.

Opposition to the EO has centered on claims that it will negatively affect the environment and indigenous communities.

Mr. Leones said there are 100 mining projects in the pipeline with the potential to generate P21 billion in revenue for the Treasury.

“We can use the country’s resources to generate the necessary income for our economy,” Mr. Leones said.

Mr. Leones added that the upcoming mining agreements consist of Phase 1 which includes 35 mining projects ready to be implemented soon, with 65 projects in Phase 2.

In a mobile phone message, Mines and Geosciences Bureau (MGB) Director Wilfredo G. Moncano said Phase 1 projects can be expected to start within months and are at a stage of obtaining the requirements set out before proceeding with extraction.

Mr. Moncano said Phase 2 projects are those that can mobilize by next year, with proponents having passed milestones like the Declaration of Mining Project Feasibility.

Ronald S. Recidoro, Chamber of Mines of the Philippines executive director, said in a mobile phone message that large investments have been made in three projects that are in the pipeline — the Tampakan Copper Project of Sagittarius Mines, Inc.; the King-King Copper-Gold Project of the Nationwide Development Corp. and St. Augustine Gold & Copper Ltd.; and the Silangan Copper and Gold Project of Philex Mining Corp.

“We are already looking at over $4 billion in capital expenditure, with over P40 billion in local government unit (LGU) taxes, P20 billion in social development projects, and P15 billion paid to indigenous peoples as royalties,” Mr. Recidoro said.

“Of course, this will not come immediately, or in one go, but it will be spread over the life of the mining project. But to get this significant amount of revenue spread over years, and spent in the remote areas that need it most, is definitely a plus,” he added.

Philex Mining Public and Regulatory Affairs Head Francis Joseph G. Ballesteros, Jr. said in a mobile phone message that the company is still looking for a business partner for its Silangan project in Surigao del Norte.

“We are still aggressively on the lookout for a business partner for Silangan. Perhaps, with this new EO 130, investor interest will be encouraged. We hope that we can accomplish this within the year,” Mr. Ballesteros said.

In 2020, the MGB estimated that the value of the metallic mining industry’s output rose 1.13% to P132.21 billion, of which nickel ore and its by-products accounted for 51.8% or P68.48 billion; gold 36% or P47.60 billion; copper 11.25% or P14.88 billion; and the combination of silver, chromite, and iron P1.26 billion.

Philex Mining is one of the three Philippine units of Hong Kong’s First Pacific Co. Ltd., the two others being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Maynilad response on revised water deal terms pending

April 19, 2021 | 8:21 pm

JUSTICE SECRETARY Menardo I. Guevarra said the government panel reviewing the water concession contracts is waiting for Maynilad Water Services, Inc. to indicate its acceptance of the contract terms signed by Manila Water Co., Inc. last month.

In a mobile message Monday, Mr. Guevarra said “a copy of the revised (concessionaire agreement) with Manila Water has been sent to Maynilad.”

“The government review panel is now awaiting Maynilad’s response as to whether the same agreement is acceptable to its principals,” he added.

Mr. Guevarra said there is no deadline for Maynilad to respond, “but we are sure that this is top priority for Maynilad.”

Maynilad Spokesperson Jennifer C. Rufo confirmed in a mobile message that Maynilad has received the copy of the revised contract signed by Manila Water.

“We appreciate and support the objectives that (the) government has expressed in amending the contract,” she said.

However, Ms. Rufo added that it is unlikely for Maynilad to have exactly the same agreement with that of Manila Water, “because Maynilad is differently situated compared to Manila Water.”

Maynilad is the water provider of 17 cities and municipalities in the West Zone of the Metropolitan Manila area, while Manila Water services 23 cities and municipalities in the East Zone.

Ms. Rufo said she has no specific details on Maynilad’s talks with the government, but confirmed that “formal communications have commenced, and we are eager to conclude the talks at the soonest possible time.”

Some of the notable changes in the revised agreement with Manila Water are that corporate income tax cannot be passed on to customers, foreign currency differential adjustments will no longer be implemented, and caps or limits will be imposed on increases in standard rates for water and wastewater.

Manila Water also agreed to a tariff freeze until Dec. 31, 2022 to assist poor customers and aid the economic recovery after the coronavirus disease 2019 (COVID-19) pandemic. — Bianca Angelica D. Añago

Marked fuel program raises over P218 billion in tax as of mid-April

April 19, 2021 | 8:20 pm

DUTIES AND TAXES collected from marked fuel products amounted to P218.1 billion as of April 15, counting back from the launch of the fuel marking program in 2019, the Department of Finance (DoF) said.

The volume of taxed fuel was 22.4 billion liters, over the Sept. 4, 2019 to April 15 period, the DoF said.

The fuel marking program has yielded P190.18 billion in Customs duties and P27.87 billion in tax collections since its launch.

Marked diesel products accounted for 60.7% or 13.6 billion liters of the total, followed by gasoline with a 38.7% share and kerosene at less than one percent.

Some 74% of the fuel marked by volume was in Luzon, 21% in Mindanao and the rest in the Visayas.

The program deters fuel smuggling by injecting the products with a special dye to signify tax compliance. The absence of the dye is deemed prima facie evidence that the fuel was smuggled.

The government started collecting in September 2020 a fuel marking fee of P0.06884 per liter, inclusive of value-added tax, on all manufactured, refined or imported petroleum products.

The fee was imposed after the one-year program for subsidized fees ended. Oil companies will now have to shoulder the costs over the next four years.

The DoF has estimated that revenue foregone due to oil smuggling was between P20 billion and P40 billion a year. — Beatrice M. Laforga

ERC sets capacity, market share limits for grids

April 19, 2021 | 8:20 pm

THE ENERGY Regulatory Commission (ERC) has released its caps for installed generating capacity and market share limitations for the national and Luzon, Visayas and Mindanao grids.

In a resolution posted on its website, the ERC set the IGC of the national grid this year at 23.42 million kilowatts (kW), with 15.97 million kW allotted for the Luzon grid. Meanwhile, the IGCs of the Visayas and Mindanao were set at 3.38 million kW and 4.07 kW, respectively.

“IGC is the sum of maximum capacity of the generation facilities which are connected to a transmission system or distribution system that forms part of a particular grid,” ERC Commissioner-in-Charge Floresinda G. Baldo-Digal told BusinessWorld in a mobile message Monday.

The ERC also set the IGC limits for the Luzon, Visayas and Mindanao grids at 4.79 million kW, 1.01 million kW, and 1.22 million kW, respectively.

“The installed generating capacity (IGC) limit is the market share limitation (MSL) that a company or related group can own, operate or control per grid and national grid pursuant to the Electric Power Industry Reform Act and its Implementing Rules and Regulations,” Ms. Digal said.

The MSLs for the Luzon, Visayas and Mindanao grids are at 30% each, but the level for the national grid is 25%.

The next adjustment of the caps is due by March 15, 2022 and “every year thereafter as the need arises,” the ERC said.

The commission also explained that it is implementing the resolution in line with its mandate to promote fair competition, and ensure consumer protection.

The resolution was signed by ERC Chairperson and Chief Executive Officer Agnes VST Devanadera and four commissioners. — Angelica Y. Yang

Exporters advised to adjust to Mexico labeling rules on sugary foods

April 19, 2021 | 8:18 pm

FOOD COMPANIES exporting products with high sugar content to Mexico are being urged to remove cartoons from labels to comply with the country’s new anti-obesity rules.

The Department of Trade and Industry (DTI) export marketing arm said it has advised exporters and would-be exporters to follow Mexico’s new product labeling guidelines on food and drinks with high sugar, fat, salt, and calorie content.

The regulations went into effect on April 1 and are designed to make the goods less appealing to children.

“Under the new rules, manufacturers are prohibited to use children’s characters, animations, cartoons, celebrities, athletes, pets, and interactive elements, such as visual games or digital downloads in the packaging of said food products,” DTI said in a statement Monday.

Mexico in 2016 declared an epidemiological emergency due to high rates of diabetes and obesity in its population. A third of Mexican children and adolescents, UNICEF said last year, are overweight or obese.

Mexico’s regulations requiring health risk labels on some processed food and drinks packaging took effect in October last year. The rule had earlier prompted major international food companies to ask for a delay.

Food and drinks must have front-of-pack warning labels if added sugar or saturated fat is at least 10% of the calories of the product, if trans fat is at least 1% of the calories of the product, or if sodium exceeds one milligram per calorie.

The labels of sugary drinks must also warn that excessive consumption could increase the risk of diabetes, obesity, cancer, and cardiovascular disease.

“Apart from following the new guidelines, we advise exporters to offer tasty yet healthy breakfast and snack alternatives to the Mexican market,” DTI Undersecretary for Trade Promotions Abdulgani M. Macatoman said. — Jenina P. Ibañez

NEA Q1 loans to power cooperatives hit P102M

April 19, 2021 | 8:18 pm

THE NATIONAL Electrification Administration (NEA) said it disbursed P102.4 million worth of loans to five electric cooperatives (ECs) in the first quarter, mostly for the capital expenditure (capex) and working capital needs of two utilities.

In a statement Monday, the NEA said P59.5 million went to Davao del Norte Electric Cooperative, Inc. and the Camarines Sur III Electric Cooperative, Inc. (Casureco III).

The remaining P42.9 million consisted of calamity loans to Casureco III, Marinduque Electric Cooperative, Inc., Oriental Mindoro Electric Cooperative, Inc., and Quezon I Electric Cooperative, Inc.

“These ECs availed of the calamity loans for the repair and rehabilitation of their respective power distribution systems and other facilities that were damaged by typhoons Quinta, Rolly, and Ulysses last year,” NEA said.

NEA’s calamity loan is payable over 10 years, with a grace period of one year at an interest rate of 3.25%.

This year, the agency has set a lending target of P500 million to support the electrification projects of ECs. The total excludes calamity loans.

In 2020, 20 ECs borrowed P439.98 million from the NEA, with the bulk of the funds going to capex and working capital. Some P311.90 million went to 12 ECs, while P128.08 million went out as calamity loans. — Angelica Y. Yang

Agriculture chamber backs price ceiling on imported pork to deter profiteers

April 19, 2021 | 8:17 pm

THE PHILIPPINE Chamber of Agriculture and Food, Inc. (PCAFI) said it supports the imposition of price ceilings on imported pork products, which will be allowed entry at lower tariffs, to ensure that the tariff savings are passed on to consumers.

At a House hearing Monday, PCAFI President Danilo V. Fausto said Executive Order (EO) No. 128 issued by President Rodrigo R. Duterte is designed to lower prices of pork products overall to between P215 and P222 per kilogram, though there is no guarantee importers will take the savings from lower tariffs for themselves as profit.

“What I’d like to propose if possible is to impose a price ceiling for imported pork so that the importers who will benefit from the tariff reduction pass this on to the consumer, not to their pockets,” he said.

He added this is “just to make sure that the suffering of hog raisers (from greater import competition) will benefit the consumer and not the importer.”

On Monday, the House Committee on Agriculture and the Committee on Trade and Industry held a joint hearing on rising food prices.

Agriculture Secretary William D. Dar said during the same hearing that the Department of Agriculture will study the proposal of the PCAFI.

EO 128 reduced pork tariff rates from 30% for imports within the minimum access volume (MAV) quota and 40% for imports beyond the MAV to 5% and 15% respectively. The move is meant to lower prices of pork products overall by expanding supply.

The National Economic and Development Authority (NEDA) said lowering tariffs will result in P13.5 billion worth of foregone revenue for the government but will ultimately produce savings of over P61 billion for consumers.

“Kung titingnan natin ang (If we look at the) savings in terms of consumer expenses, expenditure ng pork, we would be saving for the consumers P61.5 billion if they are able to buy pork at P215 or P220 per kilo,” NEDA Undersecretary Mercedita A. Sombilla said at the hearing.

Ms. Sombilla’s estimates were similar to those reported by the Federation of Economic Freedom on Sunday, which expressed support for the pork tariff reduction.

Marikina City Rep. Stella Luz A. Quimbo said her own estimates indicate that the revenue foregone will only be P1.56 billion based on Bureau of Customs pork imports data from 2020.

“If you reduce the tariff from 30% to 5%, the loss is about P1.56 billion because the imports from 2020 were 76,000 metric tons,” she said at the hearing.

She added that since tariff reduction will be accompanied by an increase in the MAV quota from 54,000 metric tons (MT) to 404,000 MT, the government could realize a gain of P4.36 billion. — Gillian M. Cortez

On to the tax audit period

April 19, 2021 | 8:16 pm

Physical exhaustion, sleepless nights, and anxiety are among the words that some might use to describe the experience of taxpayers and their accountants in this tax season just concluded, an ordeal heightened by the effects of the pandemic and lockdowns.

Thinking about the tax filing season, I remember Sisyphus, from Greek mythology, who was made to push a boulder up a hill, only for it to roll down every time he approached the top, condemning him to repeat this action for all eternity. I hope taxpayers do not compare their burden to that of Sisyphus.

HEAVY IS THE HEAD THAT WEARS THE CROWN…
Bewildered by the rapid surge of COVID cases, the government reacted by implementing another strict lockdown in a bid to quell the spread of the virus. As the nation continues to grapple with safety and travel restrictions, speculation and calls for the extension of the April 15 deadline grew louder.

The Bureau of Internal Revenue (BIR) heeded the taxpayers’ calls, but it answered in a different manner. By releasing Revenue Memorandum Circular (RMC) No. 46-2021, the BIR allowed for a “pseudo-extension” of the filing of income tax returns. While the deadline remained April 15, taxpayers were given the opportunity to file a “tentative” Annual Income Tax Return before the deadline. They may then amend their tentative returns on or before May 15, 2021. If the amendment results in the additional payment of taxes, there will be no penalty, while any resulting overpayment may be carried over as credit against tax due in the succeeding period.

While the RMC provided a bit of relief for taxpayers during the tax filing season, a number of problems and mishaps loom on the horizon. Some mistakes can be expected due to the hasty preparation of tax returns just to meet the April 15 deadline. Hence, while the April 15 filing season may be over, taxpayers should revisit the income tax returns they have filed. Caution is warranted to avoid possible tax exposure in future audits by the BIR.

While the RMC could be seen as far from perfect, it is an unalterable fact that the government needs the taxes to address the effects of the COVID-19 pandemic, among other problems — a challenging dilemma, to be sure. Indeed, heavy is the head that wears the crown.

ONCE MORE UNTO THE BREACH, DEAR FRIENDS
With the April 15 filing season now over, what should the taxpayers look forward to? Do recall that the BIR did not do away with some of their audits and assessments during the tax filing season. With the pandemic far from over and with the government’s ever-increasing need for more funds, taxpayers might expect more active assessment cases and BIR audits in the foreseeable future.

In relation to tax assessment cases, the BIR recently issued RMC No. 52-2021 which paused the runtime on the statute of limitations on assessment and collection of taxes while the Enhanced Community Quarantine (ECQ) was in effect, including any extensions thereof and for 60 days thereafter. RMC 52-2021 applies to those in areas within the “NCR Plus Bubble” and other locations under ECQ.

With the suspension of the running of the statute of limitations, taxpayers hope that they will be allowed more breathing room for the meantime, as the April 15 filing has just come and gone and amendments to tax returns loom.

This could also open an opportunity for taxpayers to prepare and ensure that their records and supporting documents are kept intact and are readily available once the BIR conducts its audit. Needless to say, for taxpayers, preparing for the fast-approaching BIR assessment season is key to avoid any lopsided assessments.

As a new chapter of the taxpayers’ journey unfolds, which may or may not be filled with surprise and which may either be for the better or for the worse, taxpayers and accounting professionals alike, all equally positioned and burdened by this pandemic and forced to adapt in this era of ever-changing government policies, can take heart in Shakespeare’s Henry V: “Once more unto the breach, dear friends, once more.”

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.

John Patrick L. Paumig is an associate from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Philippines to resume use of AstraZeneca

April 19, 2021 | 8:02 pm

SENIOR citizens got inoculated with AstraZeneca shots against the coronavirus during a vaccination drive in Quezon City on March 31. — PHILIPPINE STAR/ MICHAEL VARCAS

By Vann Marlo M. Villegas and Kyle Aristophere T. Atienza, Reporters

THE PHILIPPINES will resume using AstraZeneca Plc’s coronavirus vaccine for people below 60 years old, health authorities said on Monday, noting that the benefits outweigh the risks.

The Department of Health (DoH) had approved the recommendation of the local Food and Drug Administration (FDA) to continue the use, Undersecretary Maria Rosario S. Vergeire told an online news briefing.

“The benefits outweigh the risks,” she said, adding that guidelines on the use of the vaccines would be issued.

People especially those taking blood thinners would be asked to take extra precautions.

The Philippines suspended the use of the AstraZeneca vaccine for people below 60 years after European regulators found possible links between the shot and rare cases of blood clots.

Local health authorities earlier said they had not received reports of blood clots.

The Philippines in March took delivery of 525,600 doses of AstraZeneca vaccines under a global initiative for equal access.

CASE TALLY
The Department of Health (DoH) reported 9,628 coronavirus infections on Monday, bringing the total to 945,745.

The death toll rose by 88 to 16,048, while recoveries increased by 9,266 to 788,322, it said in a bulletin.

There were 141,375 active cases, 96.9% of which were mild, 1.5% did not show symptoms, 0.5% were critical, 0.7% were severe and 0.43% were moderate.

The DoH on April 2 reported the highest daily tally of 15,310 cases since the pandemic started last year.

The agency said 16 duplicates had been removed from the tally and 19 recovered cases were reclassified as deaths. Four laboratories failed to submit data on April 17.

About 10.5 million Filipinos have been tested for the coronavirus as of April 18, according to DoH’s tracker website.

The coronavirus has sickened about 142 million and killed three million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 120.6 million people have recovered, it said.

More than 1.4 million coronavirus vaccines have been given as of April 18, according to the presidential palace. Presidential spokesperson Herminio “Harry” L. Roque, Jr. told a televised news briefing on Monday 198,534 Filipinos have been fully vaccinated, while 1.27 million have received their first shot.

He said about 1.16 million health workers have been vaccinated against the coronavirus. Of the total, only 198,543 received their second dose.

Mr. Roque said 573,700 Metro Manila residents have gotten the shots, 68, 522 of whom received their second dose. He said 68% of intensive care unit (ICU) beds for coronavirus patients in the country have been used.

About 49% of isolation beds have been used and more than 50% of ward beds were already occupied. More than 80% of ICU beds in Metro Manila have been used.

The FDA earlier said 16 out of about 200 million people vaccinated with the AstraZeneca drug had reduced platelet counts.

The findings mostly applied to females aged 60 years old and below, FDA Director-General Enrique D. Domingo had said.

Vaccine czar Carlito G. Galvez, Jr. earlier said the country would take delivery of almost a million more doses of AstraZeneca vaccines this month. But the shipment was postponed due to global supply problems.

Manila was using diplomatic channels to get the doses as soon as possible, he added.

The Philippines initially received half-a-million doses of the AstraZeneca vaccine, which it had used together with Chinese-made CoronaVac since it started vaccinating Filipinos on March 1.

The vaccine is 70% effective after the first dose, according to the FDA.

Palace denies state failure as civic pantries offer free food

April 19, 2021 | 8:01 pm

THE PRESIDENTIAL palace on Monday rejected criticisms that the rise of community pantries across the country is proof of state failure to help Filipinos amid a coronavirus pandemic.

The give-and-take hubs are just a display of what’s “best in us during the worst of times,” presidential spokesperson Herminio “Harry” L. Roque, Jr. told an online news briefing on Monday.

“It is part of the psyche to help one another. I don’t see that as a condemnation of government.”

A community pantry offers free food such as rice, noodles and canned goods for free, while accepting donations from those who can afford these.

Former Vice President Jejomar C. Binay, Sr. on Sunday said communal pantries have sprouted in Metro Manila and other regions due to the government’s dismal response to the pandemic.

Senator Panfilo M. Lacson also said the emergence of pantries is a sign of desperation among the people.

Mr. Roque admitted that the distribution of cash aid to poor families in the capital region and nearby provinces had been slow. He said only about P4 billion of the P23-billion fund had been distributed.

Ana Patricia Non, the person behind the initiative, said the pantries were set up due to the government’s poor pandemic response and failure to subsidize more Filipinos affected by lockdowns.

“While this is a form of help for our countrymen affected by the lockdown, it is also a manifestation of government failure,” she said by telephone in Filipino.

The initiative is not a charity but a form of collective resistance and mutual aid, said Herbert Docena, a sociology professor from the University of the Philippines.

“This is a humanitarian response,” he said by telephone. “It’s really people saying that they are not just going to watch and sit down as the government fails to have an efficient response amid the pandemic.”

“It’s not a way of condoning the governments’ negligence, it’s a way of protesting it,” he added.

Senator Grace S. Poe-Llamanzares said the rise of pantries is a wake-up call for the government to do more to address the needs of Filipinos during the health crisis. — Kyle Aristophere T. Atienza

Gov’t to rely on own military to protect territory, Palace says

April 19, 2021 | 8:00 pm

THE PHILIPPINES must rely on its own military to protect its territories, the presidential palace said on Monday, amid a swarm of Chinese ships in reefs claimed by the Southeast Asian Nation in the South China Sea.

The Philippines lost two isles despite a Mutual Defense Treaty with the United States, presidential spokesperson Herminio “Harry” L. Roque told a televised news briefing. “We didn’t get any help,” he said in Filipino.

Lawmakers, analysts, and former government officials have been urging President Rodrigo R. Duterte to strengthen alliance with the US, Japan and Australia to protect its territorial rights.

While Manila strives to maintain its cooperation with Australia, Japan, India and its Southeast Asian peers, the country still must rely on its own capability, Mr. Roque said.

“We need to stand on our own two feet. In the end, we have to assert our national interest and that is what our President is doing,” he added.

Muntinlupa City Rep. Rozzano Rufino B. Biazon earlier said Manila should participate in the United States’ maritime drills in the South China Sea to deter China’s military expansionism.

Meanwhile, Mr. Roque said Mr. Duterte is not bothered by rumors that some active and retired generals have withdrawn support from him due to his inaction.

“The President knows that he is faithful to the Constitution and he knows that our soldiers also respect our Constitution.”

A Twitter user at the weekend claimed a Viber group supposedly composed of almost 500 members was discussing the withdrawal of the military’s support for the country’s top leader.

The allegations are hearsay, Mr. Roque said.

The Philippine military on Sunday dismissed the rumors.

Military chief Cirilito E. Sobejana in a statement said the Armed Forces of the Philippines (AFP) is a professional organization committed to safeguard democracy and protect its democratic institutions.

The AFP also refuted the circulation of a message online about various foreign “warplanes” taking off and landing in Clark Airbase, dismissing it as fake.

No such landings or taking off of aircraft from other countries are taking place, it said, adding that the AFP was on normal alert.

It said it would focus on its constitutional mandate and said all soldiers, airmen, sailors and marines are “firmly behind the chain-of-command.”

Defense Secretary Delfin N. Lorenzana also denounced the rumor, calling it “fake news.”

The Philippines through the Department of Foreign Affairs (DFA) last week fired off another diplomatic protest against China after authorities spotted a swarm of Chinese vessels, including six war ships within its waters in the South China Sea.

The Philippine task force also said more than 200 Chinese ships were scattered in waters within its exclusive economic zone. About 15 vessels either manned by Chinese militia, the People’s Liberation Army Navy or the Chinese Coast Guard had also been spotted at the Scarborough Shoal.

The Philippines last month and early this month filed diplomatic protests against China over the presence of fishing boats, suspected to be manned by Chinese maritime militia, at a Philippine-claimed reef in the South China Sea.

Mr. Duterte sees no need to use force against the Chinese vessels occupying Whitsun Reef, his spokesperson Mr. Roque told an online briefing early this month.

Mr. Duterte thinks the sea dispute could be resolved through peaceful means, he said. The Philippines would continue to assert its legal victory at an international tribunal in 2016, he added. — Kyle Aristophere T. Atienza