Facebook Instagram Linkedin X Youtube
Home Blog Page 8300

Cavite to allow Sangley airport JV to co-own reclaimed part of project

CAVITE PROVINCE will allow its future joint venture (JV) partner for the Sangley Point International Airport to co-own portions of commercial land that will be created by reclamation.

Foreign ownership of land will remain restricted, however, because the province will now require its JV partner to be 51% Filipino-owned or controlled.

“As a result of a policy decision by the province in response to the national security issues that have been raised, it is now required that the JV partner, whether it is a single entity or a consortium, is Filipino-majority owned and controlled,” Sol Castro, Cavite government’s consultant for the project, said at the Pre-Bid/JV Selection Conference held on March 18. A video of the conference has been posted on the province’s official Facebook page.

Lucio C. Tan’s MacroAsia Corp. only had a 40% stake in a previous consortium that negotiated with the province for the airport project, while its foreign partner China Communications Construction Co. Ltd. (CCCC) had a 60% stake.

“The land arrangements are still pretty much the same, which means that land use rights will be made available by the province to the JV partner, or to the airport company. But if you look at the land arrangements under the joint venture development agreement, there are material changes, and these changes I think will benefit the JV partner and the airport company, because it gives the company more flexibility in determining whether it wants to co-own a portion of the commercial land that will be created or that will be formed as a result of the land reclamation,” Mr. Castro added.

Mr. Castro also said that the option to co-own portions of the reclaimed land is “essential” to the project when raising debt financing.

“If (land ownership) is a requirement of the lenders, then it will be considered by the province,” he noted.

He said the 51% Filipino ownership requirement is not enough for a consortium or a private entity to qualify to own land in the country.

“You need to bring that up to 60% to own land in the Philippines,” Mr. Castro added.

“If these conditions are not met, then the province will have title over the land, and the JV partner and the airport company will eventually have perpetual use of the land.”

Under the joint venture development agreement, the JV partner will co-develop and co-own the project with the province. Cavite’s key equity contribution will be in the form of land use rights.

“On the part of the JV partner, its key obligation, which translates to a right as a result, will be to provide the equity investment and raise debt financing. On the basis of these contributions, that will reflect on the ownership of the airport company,” Mr. Castro added.

The airport company is to be created after both parties reach a final investment decision.

“The airport company will be the developer and owner, and it will decide as well on how it will have this new international airport operated, whether it would want to operate that on its own or whether it would grant a concession for the O&M (operation and maintenance) of this airport,” Mr. Castro said.

Cavite’s Public-Private Partnership Selection Committee Legal Officer Jesse R. Grepo said “two companies” have expressed interest in the project “as of March 18.”

The JV partner, according to Mr. Castro, must have developed and built at least one international airport, with a minimum handling capacity of 12.5 million passengers per annum, and at least one land reclamation project — both in the last 20 years.

“The financial qualification requirement that the JV partner must have is a current net worth or a combined net worth, in the case of a consortium, of at least $1.6 billion or roughly around P80 billion,” he said.

The Cavite government has set a May 4 deadline for the submission of proposals.

The province hopes to sign the joint venture and development agreement on or after July 1 this year.

In 2019, only the MacroAsia-CCCC JV submitted a proposal to develop Sangley airport. Other groups that bought bid documents for the project were Metro Pacific Investments Corp.; Prime Asset Ventures, Inc.; Philippine Airport Ground Support Solutions, Inc.; Langham Properties, Inc.; and Mosveldtt Law Offices.

Cavite informed the MacroAsia-CCCC tandem on Jan. 26 of its decision to cancel the notice of selection and award for the Sangley airport project it had issued on Feb. 12, 2020.

Cavite Governor Juanito Victor C. Remulla, Jr. said the “various deficiencies in the submission of requirements to conclude the joint venture agreement” led to the province’s decision. — Arjay L. Balinbin

Surge in PHL infection case count heightens recession risk

THE RISK of recession for the Philippines has risen due to the surging COVID-19 case count, making it likely to be among the worst-performing economies in ASEAN in the first half of 2021, Moody’s Analytics said.

“With additional targeted lockdowns and foreign travel bans imposed recently, the prospects for improved consumer spending and tourism remain gloomy and employment gains in the upcoming months will be limited,” Moody’s Analytics Associate Economist Dave Chia said in a note Monday.

Earlier this month, Moody’s Analytics said it expects the economy to grow 6.3% this year mainly due to base effects from a record 9.5% contraction last year which was the worst in ASEAN.

“We maintain our outlook that the Philippines will be one of the worst-performing economies in Southeast Asia, at least for the first half of 2021,” it said. 

The financial intelligence unit of Moody’s Investors Service said the Philippines is now a laggard in the region in terms of managing the outbreak. It noted that while the Philippines had to impose restrictions again due to the rise in infections, Japan and South Korea are reporting receding case numbers.

The government has placed Metro Manila, Bulacan, Cavite, Laguna, and Rizal under the strictest quarantine settings due to the higher case count. The measures are in place between March 29 and April 4.

TOURISM RECOVERY HINGES ON VIRUS MANAGEMENT
The slow pace of vaccination and the increasing infections are threatening the recovery of the tourism industry and could lead travelers to opt for other destinations which they perceive to be safer, analysts said.

“The Philippines will be unable to capitalize on the rebound in tourism if it cannot provide a safe environment for tourists — they will be diverted to other places in Asia if there are persistent questions surrounding safety and flight and accommodation cancellations due to a possible new wave of infections around the corner,” Xiao Chun Xu, assistant director — economist at Moody’s Analytics, told BusinessWorld by e-mail.

Mr. Xu said the Philippines is faring worse than Vietnam and Thailand in terms of handling the crisis and ensuring a tourism industry recovery. He cited Thailand’s effort to negotiate travel bubbles, putting it in the best position to capitalize on the industry’s recovery.

Asian Institute of Management Economist John Paolo R. Rivera said the hospitality industry has been supported by the so-called “staycation” trade, while some open-air sites like Intramuros and parks have opened to the public. Some of these reopenings proved to be short-lived as quarantines were reimposed.

“Given the latest restrictions, the first whose recovery process has been affected are those in the food and beverage sectors as dine-in has been suspended again,” Mr. Rivera said.

Aside from ensuring herd immunity to boost demand, Mr. Rivera said it would be crucial for the government to help the tourism industry build the capacity to tap alternative sources of income.

“It’s all about building trust and confidence among tourists that the Philippines is a safe destination beyond minimum health standards,” he added.

Moody’s Analytics said speeding up the vaccination drive will be key to improving the consumption-driven economy.

“As consumption is a major component of the country’s economic activities, curbing the spread of coronavirus and vaccination are key to its economic recovery,” Moody’s Analytics said.

The Department of Health has reported that 508,332 doses have been administered as of March 23. The government is hoping to inoculate 70 million people by the end of 2021. — Luz Wendy T. Noble

Causes of recent inflation uptick ‘transitory,’ BSP says

THE FACTORS behind the recent uptick in inflation are “transitory,” such as the tightening of the pork supply, but do not indicate the economy to be on a path to reflation, the central bank said.

“Reflation is the act of bringing inflation from very low levels back up to its long-term trend after a period of disinflation and economic downturn. This is not the case,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in an online briefing Thursday.

He said reflation happens when price levels recover after having fallen below their long-term historical average.

Inflation rose to 4.7% in February, exceeding the 2-4% target and the highest level since the 5.1% recorded in December 2018. Food prices surged due to supply disruptions caused by November typhoons and the African Swine Fever outbreak.

“The current uptick in inflation in the Philippines is supply-side and temporary in nature. Accordingly, it requires mainly non-monetary responses such as measures to address domestic food supply concerns,” Mr. Diokno said.

In a note, Moody’s Analytics said demand-pull inflation will likely remain weak until June. Still, it said the situation remains a matter of concern.

“Elevated inflation, a large output gap, a recent resurgence of COVID-19 infections, and limited vaccine availability are all reasons for concern,” Moody’s Analytics said on Monday.

Mr. Diokno said that while non-monetary measures are in place to address the supply-side inflation uptick, he said the central bank will remain accommodative while also watching out for signs for second-round effects such as a clamor for higher wages and higher transport fares.

The central bank expects headline inflation to average 4.2% this year before easing to 2.8% by 2022, factoring in a recovery in oil demand as well as higher food prices.

On Thursday, the Monetary Board maintained its key policy rate at 2% to help support the economic recovery. — Luz Wendy T. Noble

Plastic bag excise tax seen impacting workers, consumers most

WORKERS and consumers are expected to bear the brunt of a proposed P20 tax on plastic carrier bags by weight, a major union said.

Alan T. Tanjusay, spokesman and policy advocacy officer for the Associated Labor Unions-Trade Union Congress of the Philippines, said that the proposed tax, if signed into law, will cause plastic carrier bag manufacturers to pass on the extra costs to consumers or downsize operations.

“If enacted as is, plastics manufacturers will either raise the cost of the plastic and pass the burden to consumers or will cease to manufacture and downsize,” Mr. Tanjusay told BusinessWorld in an e-mail on March 24.

The House Committee on Ways and Means approved an unnumbered substitute bill that will collect a P20 excise tax per kilogram of plastic carrier bags removed from the place of production. The panel is chaired by Representative Jose Ma. Clemente S. Salceda.

Mr. Tanjusay said the substitute bill “failed to justify and articulate why plastic carrier bags are being singled out with an excise tax.”

“We all get the impression that the bill will… (kill) the industry and cut jobs,” he added.

The Federation of Philippine Industries (FPI) described the measure as “discriminatory.”

“Why should we single out plastic bags when any carrier bags could also be potential waste items, and unrecyclable? If the spirit for bill is anchored on the premise that it will reduce waste significantly, then it is indeed discriminatory,” FPI told BusinessWorld in an e-mail Monday.

In a separate e-mail on March 24, the FPI said that the measure was also “anti-poor,” since it will lead customers to buy other types of carrier bags at higher prices.

According to the substitute bill, all revenue from the excise tax will be used to support the solid waste management programs of local government units.

An earlier version of the bill, House Bill 178, which sought a P10 excise tax on plastic carrier bags, was approved by the House Committee on Appropriations. — Angelica Y. Yang

PHL accepts mediated process to resolve Thai trade dispute

THE PHILIPPINES agreed to a mediated process to resolve a 13-year trade dispute with Thailand.

The Philippines first complained in 2008 of Thailand’s customs valuation of Philippine cigarette exports. The World Trade Organization (WTO) has since ruled in favor of the Philippines.

The Trade department has been requesting authorization from the WTO to suspend tariff concessions on Thai exports to the Philippines, in retaliation against Thailand for non-compliance with the international organization’s ruling. The Philippines has initiated domestic procedures, with the Tariff Commission in January conducting a public hearing in which it presented 112 proposed product lines on which concessions could be suspended.

In a news conference Thursday, Trade Undersecretary Ceferino S. Rodolfo said that the Philippines agreed to a time-bound process in Geneva to come up with a “comprehensive solution.”

“Gusto natin time-bound ‘yun. (We want a time limit on talks) After a specific date, tama na (it should end). Kung wala pa rin (If there is no result), we go back to the dispute settlement body. We have to make sure that Thailand understands that at any time, we can trigger the process for suspension of concessions. Kaya domestic process, tumatakbo na (that is why our domestic process is moving forward,” he said.

“The Philippines remains ready, following WTO rules and procedures, to initiate the process for suspension of concessions. In particular the domestic processes for this — for instance the Tariff Commission had already undertaken public consultations on the coverage of products or tariff lines which may be subject to a suspension of concessions should a need arise.”

Any point of engagement with Thailand on this matter will be considered progress, Mr. Rodolfo said.

“It’s important that we maintain a credible and realistic threat to trigger a WTO-rules compliant suspension of concession, because that is important for us to be able to forge a comprehensive solution, for example through the facilitator-led process.”

Industry representatives from both the Philippines and Thailand during the Tariff Commission’s public hearing appealed against the potential suspension of tariff concessions, warning of regional supply chain disruptions and increased consumer prices in the Philippines. — Jenina P. Ibañez

How will the CREATE Law affect your 2020 ITR?

And so, it came to pass. The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill, though with vetoed provisions, was finally signed by the President on March 26 as Republic Act No. 11534. After years of waiting for the lowering of the corporate income tax and the rationalization of fiscal incentives, we now have the law just waiting to be published to be effective.

CREATE is peculiar because of its retroactive provisions which will affect the 2020 income tax payable of most corporations. This means that even if the law becomes effective sometime in April, it will still have an impact on 2020 corporate income tax filings. Below are some of the provisions with retroactive effect:

1.  Corporate income tax (CIT) rates of domestic corporations and resident foreign corporations

Effective July 1, 2020, corporate income tax of domestic corporations shall either be 20% or 25%. The 20% rate applies to domestic corporations with a net taxable income not exceeding P5 million AND with total assets not exceeding P100 million. In computing the total assets, the value of the land where the office, plant and equipment are situated during the taxable year is to be excluded.

All other domestic corporations are subject to the 25% corporate income tax rate.

Resident foreign corporations are subject to 25% income tax effective July 1, 2020.

2. CIT of proprietary educational institutions and hospitals

Beginning July 1, 2020 until June 30, 2023, proprietary educational institutions and hospitals which are nonprofit are subject to a tax of one percent (1%) on their taxable income.

3. CIT of nonresident foreign corporations

Nonresident corporations are subject to income tax of 25% of their gross income from the Philippines effective July 1, 2020.

4. Minimum corporate income tax (MCIT)

The MCIT for both domestic and resident foreign corporations has been decreased to 1% from July 1, 2020 until June 30, 2023.

5.  Percentage Tax

Percentage tax on persons exempt from value-added tax under Section 116 of the Tax Code has also been decreased to 1% from July 1, 2020 to June 30, 2023.

With these changes in rates effective July 1, 2020, taxpayers will have to compute their corporate income tax payable differently this year. Considering that we have had previous changes in tax rates, the Tax Code has already prescribed the rules on how to compute income tax if there has been a change in rates. The Tax Code states that taxable income will be computed without regard to the specific date when specific sales, purchases, and other transactions occur. The income and expenses for the fiscal year is deemed to have been earned and spent equally for each month of the period.

Thus, the corporate income tax will apply on the amount computed by multiplying the number of months covered by the new rate within the fiscal year by the taxable income of the corporation for the period, divided by twelve. For example, if the total taxable income is P120 million for the year, the first P60 million will be multiplied by the old rate of 30% and the remaining P60 million pays 25%, regardless of when the net taxable income was actually earned. Thus, even if all the major transactions happened in the last quarter, the income tax will still be computed following the rules listed above. Since the change in rate happened in the last half of the year, an average rate of 27.5% may be used to determine the tax payable. The actual manner of computation, however, will depend on the instructions of the Bureau of Internal Revenue (BIR).

While everybody is anticipating the change in the tax rates, taxpayers are still waiting for the implementing rules from the BIR to guide them in filing and paying their taxes this year. Questions like what tax returns will be used, how the excess payments like excess percentage tax is to be treated, and whether taxpayers are allowed to amend tax returns after April 15 without paying penalties are commonly asked.

Another question concerns the computation of the interest rate arbitrage. Under the current rules, the taxpayer’s otherwise allowable interest expense is to be reduced by 33% of the interest income subject to final tax. CREATE lowered this to 20% but did not provide for retroactive effect. However, since the lowering of the percentage is tied to the applicable corporate income tax and final tax on interest, taxpayers are asking if they will be allowed to use the lower rate of 20% starting July 1, 2020.

What happens if the law is not yet effective by April 15? Will taxpayers be required to compute and pay taxes under the old rate and file for amendment only after the law becomes effective? Some taxpayers are short on funds due to business reverses that happened in 2020, while some cannot afford to pay more than what is due. Refund or credit of excess taxes are not palatable choices as most companies are in dire need of cash to fund their struggling businesses.

With April 15 drawing near and the imposition of the enhanced community quarantine (ECQ) in the NCR plus, taxpayers are hoping for the extension of filing and payment of the corporate income tax. We laud the BIR in announcing that the RMC allowing the “file and pay anywhere” has been signed. However, with the difficulty in mobility and access to documents which are locked in their respective offices, taxpayers are expecting delays in preparing their income tax returns. Once again, this is a time for the bayanihan spirit to be practiced both by the BIR and the taxpayers. We are all hoping for a smooth and safe filing and payment of annual income tax. Let us continue to help one another in surpassing these challenging times as we all hope that this too, shall pass.

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.

 

Eleanor Lucas Roque is a principal of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Active COVID-19 cases may reach 430,000 without strict lockdown

ACTIVE coronavirus cases in the Philippines may almost quadruple to 430,000 by the end of April if stricter quarantine measures were not imposed, according to the Department of Health (DoH).

Metro Manila and the provinces of Bulacan, Cavite and Rizal were at “critical risk” given the swift rise in infections, while Laguna is at high risk, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Monday.

DoH reported 10,016 coronavirus infections on Monday, the highest daily tally since the pandemic started last year.

Monday’s tally surpassed the 9,838 cases reported on Friday, bringing the total to 731,894, it said in a bulletin.

The death toll rose by 16 to 13,186, while recoveries increased by 78 to 603,213, it said in a bulletin.

There were 115,495 active cases, 95.9% of which were mild, 2.4% did not show symptoms, 0.7% were critical, 0.7% were severe and 0.41% were moderate.

The agency said 14 duplicates had been removed from the tally, while 11 recovered cases were reclassified as deaths. Three laboratories failed to submit data on March 28.

Disease surveillance tool FASSSTER showed that active cases nationwide would probably reach 430,000 by the end of next month if lockdowns were not imposed, Ms. Vergeire said.

Active infections in Manila, the capital and nearby cities could hit 350,000, she added.

Healthcare use in Metro Manila was now at 63% and 58% in the Calabarzon region. Intensive care unit (ICU) occupancy was the “most worrisome,” with use ranging from 70% to full capacity for ICU beds in hospitals within the so-called National Capital Region bubble.

President Rodrigo R. Duterte placed Metro Manila and the provinces of Bulacan, Rizal, Cavite, and Laguna in a “bubble” for two weeks until April 4, allowing only essential travels inside and outside it.

He placed these areas under enhanced community quarantine, the strictest lockdown level, due to a surge in infections.

“This enhanced community quarantine aims to slow down the surge of cases, stop the spread of the variants, allow the health system to recover and of course to protect more lives,” Ms. Vergeire said.

Meanwhile, DoH said people with comorbidities must present medical certificates or prescriptions from physicians before they get vaccinated.

Ms. Vergeire said they should present  their medical certificates issued in the past 18 months or prescription in the past six months at vaccination sites. 

Presidential spokesman Herminio L. Roque, Jr. on Saturday said there would be simultaneous vaccinations of senior citizens and persons with comorbidities along with healthcare workers to speed up the vaccine rollout.

John Q. Wong, founder of health research team Epimetrics, Inc., said there are illnesses that increase a person’s risk for hospitalization or death.

These are chronic respiratory disease, hypertension, cardiovascular disease, chronic kidney disease, malignancies, diabetes and obesity. These are the seven diseases that were prioritized, he said at the same briefing.

Mr. Wong said there are about 14.1 million non-elderly adult Filipinos with underlying conditions.

About 656,331 people have been vaccinated against the coronavirus as of March 27, DoH said.

About 9.5 million Filipinos have been tested for the coronavirus as of Mar. 27, according to DoH’s tracker website.

The coronavirus has sickened about 127.8 million and killed 2.8 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization. About 103 million people have recovered, it said. — Vann Marlo M. Villegas

DoH says one-week strict quarantine won’t stop virus spike

THE WEEKLONG strict lockdown in Manila, the capital and nearby cities and provinces is unlikely to slow coronavirus infections in the long term, according to the Health department.

The stricter restrictions would only lower cases during the week until April 4, Alethea De Guzman, director of the Department of Health’s (DoH) Epidemiology bureau, told a televised news briefing on Monday.

“It’s possible for cases to rise again once the enhanced community quarantine is lifted,” she said in Filipino.

Coronavirus infections in the Philippines more than doubled in the past two weeks, Ms. De Guzman said.

The strict lockdown would go to waste and would have little to no effect if people failed to observe health protocols, get tested early and isolate themselves after developing symptoms, and cooperate with contact tracers, she added.

Presidential spokesman Herminio L. Roque, Jr. said the government would take into account the effect of the strict quarantine on hunger and state capacity to give cash aid.

“It is very sensitive because if we will only consider the aspect of lowering COVID-19 (coronavirus disease 2019) numbers, more people might die from hunger,” he said at the same briefing in Filipino.

Meanwhile, the government still has more than P20 billion left in its anti-pandemic funds that could be used to subsidize Filipinos affected by the weeklong lockdown in Metro Manila and nearby provinces, the Budget department said.

It still has 23 billion in unused funds under the country’s second stimulus law, Budget Secretary Wendel A. Avisado told a televised news briefing.

He said the financial aid would be enough to cover 22.9 million low-income people for two weeks.

The amount is lower than what was given under the first stimulus law, which provided households at least P5,000 to P8,000 in cash aid, Mr. Avisado said. He declined to elaborate.

“We surmise that something worse can happen after one week so based on our projection, this will tide them up until the time that the government makes adjustments in the current state of quarantine,” he said.

President Rodrigo R. Duterte or his executive secretary would be the one to disclose the details of the aid, the Budget chief said. — Kyle Aristophere T. Atienza

Gov’t takes delivery of 1M CoronaVac doses from China

THE PHILIPPINES on Monday took delivery of about a million doses of CoronaVac it bought from Chinese drug maker Sinovac Biotech Ltd., according to the presidential palace.

President Rodrigo R. Duterte received the vaccine doses at a military airbase in the capital region.

The vaccines are on top of 25 million doses that the National Government from Sinovac, vaccine czar Carlito G. Galvez, Jr. said in a statement.

“The arrival of these vaccines is great news as we are beginning to see the fruits of our negotiation efforts after months of hard work to provide vaccines for our people,” he said.

“This is but the first of the many other doses we have negotiated in order to achieve our goal of herd immunity,” he added.

Senator Christopher Lawrence T. Go, Health Secretary Francisco T. Duque III and Chinese Ambassador to the Philippines Huang Xilian also attended Monday’s rites.

“We are expecting the delivery of around 1.5 to 4 million of the remaining procured doses from Sinovac by April and May 2021 together with the additional 979,200 AstraZeneca vaccine doses from the WHO-led COVAX facility,” Mr. Galvez said.

The vaccines would be deployed to Metro Manila, Cebu, Davao and other areas facing a spike in coronavirus infections, presidential spokesman Herminio L. Roque, Jr. told a televised news briefing on Monday. — Kyle Aristophere T. Atienza

SC urged to speed up cases

THE BUSINESS community on Monday asked the Supreme Court (SC) to speed up cases by requiring courts to comply with deadlines in resolving these, which they said would help boost the economy.

In an e-mailed statement signed by 22 business organizations under the Financial Executives Institute of the Philippines (Finex), they said court rulings “guide businesses in their future commercial relations and transactions and profoundly affect how businesses move forward.”

The speedy resolution of legal disputes would prove that companies could rely on the Philippine judiciary to uphold the law, regulations and contracts upon which businesses are built.

They also cited a 2020 World Bank study showing that the Philippines had the second-longest period to resolve cases among 10 member countries of the Association of Southeast Asian Nations.

The business groups urged the tribunal to strictly require all courts to adhere to the 1987 Constitution, which says court cases must be resolved within a year, unless shortened by the high court to a year for lower collegiate courts and to three months for other lower courts.

“In these uncertain times brought about by the ongoing pandemic, it is crucial that we strengthen our economy’s backbone by ensuring continuity and certainty in our commercial affairs,” they said. — Bianca Angelica D. Añago

Nationwide round-up (03/29/21)

Lawyer Cuevas named new high court en banc clerk

LAWYER Marife M. Lomibao-Cuevas was sworn in as new Clerk of Court En Banc of the Supreme Court on March 25, replacing Edgar O. Aricheta who retired on the same day. Prior to joining the Supreme Court, she was a litigation lawyer of the Cuevas Law Office from 1996 to 2000. She later served as court attorney in the office of former Chief Justice Reynato S. Puno from 2000 to 2010. She was an attorney in the Clerk of Court En Banc from 2010 to 2019 and subsequently became the deputy clerk. Ms. Cuevas finished Political Science from the University of the Philippines Diliman, and obtained her Juris Doctor degree from the Ateneo de Manila University School of Law.

Labor group slams denial of P100 wage hike petition

A LABOR group slammed the decision of the government to reject a nationwide P100 wage hike petition aimed at helping workers affected by the pandemic. In a statement on Monday, Defend Jobs Philippines said the recent decision made by the National Wages and Productivity Commission (NWPC) “is nothing but a heartless, insensitive and inconsiderate anti-workers decision as it has decided on technicalities instead of the merits, grounds and humanitarian considerations.” The labor group filed the petition earlier this month. The NWPC-Regional Tripartite Wages and Productivity Board in the National Capital Region, in its Board Resolution No. 1, said it cannot grant the across-the-board P100 increase in minimum wages as it does not have the authority to grant the petition. Minimum wages are set per region. Defend Jobs said it is studying the possible filing of an appeal on the resolution. — Gillian M. Cortez

Foreign parents of Filipinos now allowed to enter PHL

FOREIGN parents of Filipino nationals can now enter the country as they have been included in the list of exemptions under the travel ban from March 22 to April 20, the Bureau of Immigration (BI) announced on Monday. The foreign parents, however, must be traveling with their Filipino child and have valid visas. “If they are traveling alone, they will not be allowed entry even if they hold valid visas as the rules provide that they must be traveling with their Philippine spouse or children,” BI Commissioner Jaime H. Morente said in the press statement. He also clarified that foreign seafarers arriving via seaports are also exempted from the travel ban as long as they have the required crew list visa. “We welcome the exemption of foreign seafarers from the travel ban as the Philippines is one of the countries in Asia that has opened a ‘green lane’ for these sailors,” he said. — Bianca Angelica D. Añago

House to look into prohibition of anti-parasitic drug for animals as COVID treatment

THE House of Representatives will look into the prohibition of an anti-parasitic drug used on animals to treat and prevent the coronavirus disease 2019 (COVID-19). Quezon Rep. Angelina DL Tan, chair of the health committee, said on Monday that the panel will conduct an inquiry on March 30 regarding the use of Ivermectin in treating the COVID-19 patients. The Food and Drug Administration (FDA) earlier warned against the use of the drug given to animals to prevent parasite infestation. The FDA said it is monitoring trials from other countries regarding its COVID-19 use, some of which do not show any positive results. 1-PACMAN Party-list Rep. Enrico A. Pineda, who filed the resolution for the inquiry, said the FDA should consider that some studies show the effectivity of the medicine for some COVID-19 patients. “While we understand the prudence being exercised by the FDA, this is quite an unprecedented international health emergency. There are actual studies and publications endorsing the effectivity of Ivermectin as treatment for those infected by the COVID-19 virus. Perhaps we should do more exhaustive studies before dismissing what could potentially be a life-saving drug,” Mr. Pineda said.  The FDA on Monday said it could grant a special compassion permit for Ivermectin’s use as a COVID-19 treatment but no applications have been submitted for this purpose. — Gillian M. Cortez

Senate committee OK’s honorarium for SK members, other changes

A SENATE panel has approved the amendments to the Sangguniang Kabataan (SK) Reform Act of 2015, including the provision of honorarium to youth members. The changes are contained in Senate Bill 2124 filed by Senator Juan Edgardo M. Angara, chair of the committee on youth. “The issue of honoraria or in this case, the lack of it, has been cited as one of the main reasons why fewer people want to join the SK. We recognize the importance of getting the youth involved in local governance and how this experience contributes to their development as future leaders so we should provide them with all the support we can give,” Mr. Angara said in a statement Monday. Once signed into law, SK members, secretaries, and treasurers will be given a monthly stipend. Under the current law, only chairpersons of the youth representative group are entitled to honoraria as they are ex-officio members of the village council. The bill also proposes that the appointed treasurer shall have an educational or career background in the fields of business administration, accountancy, finance, economics or bookkeeping. SK funds will also be used for student stipends, sports and wellness projects, skills training, on-the-job assistance, cash-for-work, environment conservation, calamity preparedness, and capacity building. A maximum of 15% of the funds shall be allotted for the training of the youth council’s members. “The work of improving our SK system must continue. The SK, appropriately reformed and capacitated, remains relevant and much-needed. The youth should be given a place in the everyday business of building our nation and serving our people,” Mr. Angara said. — Vann Marlo M. Villegas

Regional Updates (03/29/21)

A dozen MRT tellers, cash assistant positive for COVID-19

THE management of Metro Rail Transit (MRT) Line 3 announced on Monday that 12 of its tellers and a cash assistant have tested positive for coronavirus disease 2019 (COVID-19). “Twelve tellers and a cash assistant tested positive for COVID-19. The 12 tellers who tested positive are assigned at the Santolan, Ortigas, and Cubao Stations,” MRT-3 said in a statement on March 30, the last day of its operations for the week in observance of the Lenten Season. “We will be suspending our operations for our scheduled Holy Week maintenance shutdown, which starts tomorrow (March 30),” it said. The management said close contacts of the positive personnel have been placed under quarantine while waiting for the results of their swab tests. “Since last year, MRT-3 has been implementing measures to minimize contact between station personnel, especially tellers and passengers,” it said. “All MRT-3 tellers and station personnel wear full personal protective equipment  (face mask, face shield, gloves, and gowns) to avoid contact between themselves and passengers,” the management added.

WORKPLACE CHECK
Meanwhile, the Department of Labor and Employment (DoLE) said it will conduct intensified workplace inspections this week after the strictest quarantine level was imposed in Metro Manila and the four neighboring provinces of Bulacan, Cavite, Laguna, and Rizal. In a virtual briefing on Monday, Labor Secretary Silvestre H. Bello III said he has ordered “an intensified and thorough business inspection nationwide.” Mr. Bello said 55,000 inspectors will be working overtime to check 60,000 establishments. “We will expect not later than Wednesday for the report of the inspectors,” he said. — Arjay L. Balinbin and Gillian M. Cortez

MWSS directs water concessionaires to suspend disconnections during lockdown

THE REGULATORY office of the Metropolitan Waterworks and Sewerage System (MWSS) instructed the two Metro Manila water concessionaires to suspend all service disconnection activities while the capital region is under the strictest form of quarantine. MWSS Chief Regulator Patrick Lester N. Ty said in a statement on Monday that east zone concessionaire Manila Water Co., Inc. and west zone provider Maynilad Water Services, Inc. were directed to stop disconnections from March 29 to April 4. Mr. Ty, in a mobile message to BusinessWorld, said the suspension order will be carried on if the lockdown level is extended by the national government. “The suspension of service disconnection activities is valid during the entire ECQ (enhanced community quarantine) period and extension of any,” Mr. Ty said. At the same time, Mr. Ty called on local government units (LGUs) to allow the meter readers of both water concessionaires to continuously conduct meter reading and billing operations. “This request for local government unit cooperation and assistance will enable the concessionaires to bill their customers based on actual water consumption, and help minimize billing complaints that may abound if the customers were to be billed based on average consumption,” Mr. Ty said. Nestor Jeric T. Sevilla, Jr., Manila Water Corporate Strategic Affairs Group Head, told BusinessWorld in a mobile phone message that the company will comply with MWSS’ order, adding that Manila Water customers are urged to use online channels for bill inquiries and payments during the period. “We will continue with our meter reading activities as much as allowed by the LGUs,” Mr. Sevilla said. Maynilad Head of Corporate Communications Jennifer C. Rufo also confirmed that it will follow MWSS’ directive. Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave 

Apo View Hotel temporarily stops operation

THE Apo View Hotel in Davao City, managed by Global Comfort Group Corp. that is behind the Eurotel and Icon hotel brands, is temporarily stopping operations starting March 31 due to the coronavirus pandemic’s impact. The management made the announcement through the hotel’s Facebook page, where it said, “As the risk of the pandemic is continuously rising, the management has decided to temporarily cease its operation effective March 31, 2021 until further notice as we continue to support the nation’s effort to combat the spread of COVID-19.” Hotel Manager Leah S. Adolfo, in a text message, said operations will resume when the crisis situation improves. Last year, Apo View Hotel kept its rooms open for frontline health workers. Global Comfort Group also maintained more than 400 rooms in other parts of the country to frontliners. — Maya M. Padillo

International Alert flags extremist threat to 2022 elections in Bangsamoro

AN extremist group that recently attacked communities in Maguindanao province could be positioning to disrupt the 2022 elections in the Bangsamoro region, peacebuilding organization International Alert Philippines warned. Members of the Bangsamoro Islamic Freedom Fighters (BIFF) — a breakaway group from the Moro Islamic Liberation Front (MILF) that signed a peace deal with the government and has been at the forefront of the new region — have assaulted at least four towns in Maguindanao, displacing over 9,000 families composed of about 47,000 individuals. Government forces have launched air and ground offensives against the militants led by Kagi Karialan, but International Alert said both the military and the MILF “will need to show greater resolve in neutralizing the BIFF and other extremist groups before the elections.” “This may be an effort to demonstrate the Karialan group’s superiority over other extremist groups in the area and hence gain more recruits and support, or it can be part of a ‘slow burn’ or a gradual yet deliberate escalation of violence that leads to a major political battle before or during the 2022 elections,” International Alert Philippines Senior Peace and Conflict Adviser Francisco Lara, Jr. said in a statement on Monday. The non-government organization noted that the conflict is made more complex by familial ties among MILF and BIFF members. Among the affected towns is Datu Saudi Ampatuan, where a Joint Peace and Security Team composed of government forces and former MILF combatants is being set up. “We are exhausting all available assets to neutralize the terrorists who are responsible for the conduct of atrocities in central Mindanao,” said Maj. Gen. Juvymax Uy, commander of the Joint Task Force Central, said in a statement on Sunday.

POLITICIANS
International Alert said the BIFF “will continue to be a threat, despite the unceasing military campaign against it and reports of surrenders among its members, as it continues to receive funding from other armed groups, including ISIS. The group also receives protection money from local politicians, businessmen, and violent entrepreneurs involved in deadly shadow economies.” “Many politicians are interested in seizing control of the BTA (Bangsamoro Transition Authority) and the BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) if elections are held as scheduled in 2022. Others are aware that the MILF is also planning to field candidates against them in their local bailiwicks,” Mr. Lara said. The BARMM, as provided under the Bangsamoro Organic Law, is scheduled to hold local and national elections along with the rest of the country in May 2022. There are pending bills in Congress calling for an extension of the BTA, currently composed of multi-sector appointees who serve as members of the region’s parliament. — MSJ

Masbate fishing boats heading to Visayas now required to have ASF inspection clearance

ALL LOCAL fishing boats coming from the island province of Masbate heading to Visayas are now required to have an African Swine Fever (ASF) inspection clearance as part of the government’s initiative to curb the spread of the virus. Agriculture Secretary William D. Dar signed a memorandum order on March 25 that mandates all fishing boats from Masbate to undergo checks and obtain clearance for prohibited commodities such as live swine or pork products. “The current ASF infected zones in the towns of Aroroy and Milagros in Masbate pose a significant threat to the disease free areas in the Visayas regions and provinces due to its geographical proximity as well as the frequent fishing and trading practices between to and from these areas,” Mr. Dar said in the memorandum. Mr. Dar said the ASF inspection clearance will be presented by the boats at the port of transit in Visayas. “The Bureau of Animal Industry – Veterinary Quarantine Station Region 5 in coordination with BFAR, PCG, Department of Agriculture (DA) regional field office, and local government office will facilitate the inspection and issuance of ASF inspection clearance,” he said. Further, Mr. Dar said the Bureau of Fisheries and Aquatic Resources and the Philippine Coast Guard have been instructed to issue a certificate of clearance and local transport permit only to fishing boats that have obtained the ASF inspection clearance. DA data show that as of March 19, ASF is present in 12 regions across the country and has resulted in the culling of 450,019 hogs since its detection in Aug. 2019. As a result, the DA projected earlier in the year that the country faces a pork supply deficit of 400,000 metric tons. Meanwhile, data from the Philippine Statistics Authority (PSA) showed that the country’s hog inventory as of Jan. 1 fell 24.1% year on year to 9.72 million heads. Prices of pork sold in Metro Manila earlier this year reached more than P400 per kilogram, prompting government to impose price caps. ASF is a severe and highly contagious hemorrhagic viral disease in pigs. However, it poses no health risks to humans. — Revin Mikhael D. Ochave 

Justice dep’t looks into Laguna labor leader’s killing as possible EJK

THE Department of Justice (DoJ) will conduct an initial assessment on whether the killing of union leader and labor rights activist Dandy Miguel on Sunday night in Laguna is a potential case of extra-judicial killing (EJK). “Like what we did in the Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon) deaths, we’ll do a preliminary assessment first. If there’s any indication that Miguel’s death had something to do with his being a labor leader, the AO 35 (Administrative Order 35) committee will include his case for investigation,” Justice Secretary Menardo I. Guevarra told reporters on Monday. DoJ’s AO 35 committee is designated to investigate potential cases of extra-judicial killings. Mr. Guevarra said the preliminary probe will push through this week despite the strict quarantine rules imposed in Metro Manila and four nearby provinces, including Laguna. Several labor groups have expressed disappointment with the conduct of a preliminary assessment and said they do not have the “luxury of time” given the rampant killings of activists. According to the Calamba City Police, Mr. Miguel was found dead on the spot in Barangay Canlubang, Laguna around 8:45 p.m. on Sunday after being gunned down by a still unidentified man on board a motorcycle. The victim was the vice chairperson of Pagkakaisa ng Manggagawa sa Timog Katagalugan, president of Lakas ng Nagkakaisang Manggagawa ng Fuji Electric-OLALIA-KMU, and a national council member of Kilusang Mayo Uno (KMU). His death came three weeks after the Calabarzon raids that left nine activists dead. — Bianca Angelica D. Añago

1...8,2998,3008,301...14,244Page 8,300 of 14,244
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube