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Moody’s Analytics downgrades PHL growth outlook for 2021

MOODY’S ANALYTICS downgraded its growth outlook for the Philippines for 2021 to 6.2% from its 7.8% estimate issued last month, citing the government’s tepid fiscal response which may result in a recovery weaker than it could have been.

“The 2021 forecast has been revised downward because there has been a smaller fiscal policy response than we had previously assumed,” Steve Cochrane, chief Asia-Pacific economist at Moody’s Analytics, said in an e-mail Monday.

Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) allocated an additional P165 billion for the country’s pandemic response. It followed the P275 billion provided by RA 11469 or Bayanihan I to address the economic crisis. In total, the government’s fiscal response is equivalent to about 3.9% of gross domestic product (GDP), according to a policy tracker maintained by the International Monetary Fund.

Meanwhile, Moody’s Analytics upgraded its 2020 GDP outlook to minus 8.2%, against the earlier forecast of minus 9.2%, citing some improvements seen in manufacturing and trade.

“Manufacturing is rebounding a little better than expected. Further, exports, which had been following an uncertain path, improved quite a bit in September, and with trade picking up globally and in Southeast Asia, trade should add some support to economic growth,” Mr. Cochrane said.

The Monthly Integrated Survey of Selected Industries reported that factory output, as measured by the Volume of Production Index, contracted by 8.4% year on year in September, according to the Philippine Statistics Authority (PSA). This represented an improvement from the decline of 9% in August.

Merchandise exports rose 2.2% to $6.22 billion in September following a 12.8% year-on-year drop in August, the PSA said. This is the first month of expansion in exports since the 2.8% seen in February, before the coronavirus disease 2019 (COVID-19) outbreak became a pandemic.

In the third quarter, Moody’s Analytics said GDP likely contracted 6%, a less drastic decline than the minus 9.2% median estimate from a BusinessWorld poll of 19 economists last week. In the second quarter, which included the weeks when the lockdown was at its most strict, the contraction was a record 16.5%.

Mr. Cochrane said the easing restrictions will pave the way for the economy to gradually pick up.

“We should be able to characterize the economy as beginning its recovery some time in the third quarter, perhaps in late August. So far, the fourth quarter looks like it is continuing the recovery, and 2021 will look better as well.”

The government expects the economy to contract between 4.5% and 6.6% before bouncing back with growth of 6.5% to 7.5% next year.

The PSA will report third-quarter GDP data on Tuesday, Nov. 10. — Luz Wendy T. Noble

Typhoon damage to power co-ops hits P369.821M

THE estimated cost of damage sustained by electric cooperatives due to Typhoon Rolly (international name: Goni) has climbed to P369.821 million, according to the National Electrification Administration (NEA) on Monday.

It said 1.3 million affected households or 62.68% have had their power restored, leaving some 780,597 households still without access to electricity, many of them in the Bicol region.

The NEA reported that power has been restored in 14 municipalities in Camarines Norte and Sorsogon as of Monday afternoon.

The power situation in Masbate, including Ticao Island, and the Calabarzon Region is normal, according to the NEA.

In a separate advisory, the National Grid Corp. of the Philippines said that its transmission lines and facilities are operating normally.

METRO MANILA’S DISTRIBUTION UTILITY
Asked about the impact of Typhoon Rolly on Manila Electric Co., Meralco Head of Utility Economics Lawrence S. Fernandez said power supply and demand both fell.

“For a few days, both supply and demand were affected. They were both reduced by Typhoon Rolly pero after that, nag normalize (but after that, they have since normalized),” Mr. Fernandez said in a briefing Monday.

“On the supply side, there were several power plants that were affected… Nagbaba sila ng output (they reduced output) in preparation for the arrival of the typhoon. On the demand side, bumaba rin sa Meralco system (it also fell within the Meralco system) for a few days as Typhoon Rolly passed through the Meralco service area,” he added.

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

Pandemic restrictions on restaurants seen driving more coffee consumption at home

THE constraints imposed by the pandemic on restaurant operations will force more consumers to prepare coffee at home, providing an opportunity for brands to sell more via groceries, according to Fitch Solutions Country Risk & Industry Research.

Consumers are also looking to spend less, limiting their purchases to essentials like groceries, which will make supermarkets the new battleground for coffee companies competing for space in their customers’ shopping carts, Fitch Solutions said.

“Within the coffee segment, this will play out with the substitution of on-trade coffee with coffee bought through retail channels,” it said in a report Monday.

The changes in consumer behavior will benefit not only instant coffee makers but also producers of premium coffee as higher-income individuals opt out of cafes, Fitch Solutions added.

“Between 2020 and 2024, coffee consumption is projected to increase from 3.9 kilograms per capita in 2020, to 5 kilograms by 2024,” it said.

Prospects for the coffee industry are also supported by estimated household spending on coffee of about $352 in 2020, much higher compared with Malaysia ($240) and Indonesia ($137).

Coffee is widely consumed across all income brackets, with instant coffee accounting for about 90% of the market.

“Breaking this down, coffee is the most popular non-alcoholic drink purchased through the mass grocery retail channel, accounting for approximately 43% of total non-alcoholic drinks spending. This is followed by fruit and vegetable juices, which account for a further 31%,” Fitch Solutions said.

By 2024, coffee as a proportion of total non-alcoholic drinks spending is expected to grow to 44%.

The country’s large young adult population could boost the outlook of spending on coffee products, it said. More than 35.1 million or nearly a third (32%) of the population are aged between 20 to 39.

“We classify this group as the trendsetting generation, who are earning incomes and have larger discretionary spending levels. These consumers are more likely to spend on more speciality and more premium products,” Fitch Solutions said.

It noted the growing middle-income population of the Philippines — those with annual disposable income of more than $10,000. It estimated this population at 4.5 million households, which Fitch Solutions expects to rise to 8 million by 2024.

“This target market will be key to supporting sustainable growth in spending on coffee products over the next five years,” it said. — Luz Wendy T. Noble

DoF’s Dominguez says tax not a factor in closure of PHL refineries

FINANCE Secretary Carlos G. Dominguez III said refinery closures in the Philippines are not a response to the tax regime but rather are a global phenomenon triggered by changing oil-industry economics.

“Another refinery closing — it’s not about the fiscal environment but rather the ability to compete with larger integrated end-to-end refineries with petrochemical complexes,” Mr. Dominguez III told reporters via Viber over the weekend.

He cited the recent move of Royal Dutch Shell to close down its refinery in Convent, Louisiana as an example of industry migration out of the refining business due to weak oil demand.

“The economics of oil refining are drastically changing,” he added.

According to Reuters, the Shell refinery in Convent is the largest such facility in the US and is due to shut down this month, after the company failed to find a buyer.

The Philippines’ remaining oil refinery, run by Petron Corp., announced late last month a planned closure due to heavy losses and the unfavorable tax regime.

House Ways and Means Chairman and Albay Representative Jose Ma. Clemente S. Salceda said that demand remains the industry’s main problem, but added that legislators are willing to review the tax regime to address concerns raised by the refining industry.

“I am open to the idea of looking into whether there are inequities in the tax system in favor of importers as opposed to local refiners. The Committee is guided by the principle of pari passu (on an equal footing) in taxation, so we try not to make distinctions unless they are supremely justified by the common good,” Mr. Salceda said in a Viber message Sunday.

He said he supports the continued operations of refiners for energy security reasons, but said the various issues faced by the industry need to be worked out.

“I’m open to hearing more about this problem. I can make a call when I see the numbers from both DoF (Department of Finance) and concerned private sector parties. If there is a violation of pari passu, and the economic impacts far outweigh potential revenue losses, we can perhaps figure out a solution,” he added.

Petron President and CEO Ramon S. Ang has said the group might close the refinery “very soon” if the tax playing field is not leveled between refiners and importers.

Oil refiners are subject to 12% input value-added tax (VAT) on crude oil imports, which they refine and sell on as refined products. Refined products are also subject to 12% output VAT and excise tax.

Importers only need to pay VAT once as well as excise tax on their shipments of refined products.

Mr. Dominguez has said there is no need to change the tax laws because the closure of the refineries has more to do with the industry’s exposure to adverse oil price movements.

“We note that in the refinery business, there may be market and timing issues — such as importing crude at a high price, then after refining, world crude prices might be lower, thus, refining margins could be lower. On the other hand, an importer, who imports finished products can sell these products right away, making him less vulnerable to oil price movements. It’s actually a supply chain issue rather than a tax issue,” he said late last month.

“We don’t need to change our tax laws on this. It’s happening worldwide, refinery margins are getting squeezed,” he added.

Petron’s refinery closure poses a setback to energy security, according to Fernando L. Martinez, chairman and CEO of Eastern Petroleum, in a text message last week.

“However, the existing and projected world oil surplus will keep both the supply and price situation in check to the benefit of consumers thereby neutralizing any possible supply gap for the country,” Mr. Martinez added.

In August, Pilipinas Shell Petroleum Corp. said it will shut down its refinery in Batangas province due to worsening conditions in the industry due to the decline in fuel demand due to the pandemic.

Pilipinas Shell will instead convert its facility into an import terminal so it can continue to supply the local market.

Petron is also considering turning its refinery into an import terminal. — Beatrice M. Laforga with Angelica Y. Yang

Gov’t extends deadline to pay taxes owed to LGUs to Dec. 19

THE deadline to pay taxes, fees and charges to local government units (LGUs) has been extended again to Dec. 19 to provide some relief from the pandemic.

In a statement Monday, the Department of Finance (DoF) said it issued Department Circular No. 003-2020 moving the deadline to Dec. 19 for payment of all taxes, fees and charges due on or beyond Sept. 4 with no interest, surcharges or penalties.

Finance Secretary Carlos G. Dominguez III said the guidelines are authorized by Republic Act (RA) No. 11494 or the Bayanihan to Recover As One Act (Bayanihan II).

The circular also suspended until Dec. 19 the counting of the period to pay local taxes, fees, and charges as well as the period for the redemption of real properties sold or forfeited at public auction.

If an LGU had extended the deadline even before Bayanihan II took effect, the DoF said the deadline will be moved to Dec. 19. Meanwhile, further extensions beyond the set date will have to be in line with RA 7160 or the Local Government Code.

“As for local tax delinquencies prior to the effectivity of Bayanihan II on Sept. 15, all payments shall be due and demandable upon the expiration of the Dec. 19 deadline,” the DoF said.

Interest, penalties and surcharges will be charged after the deadline has passed.

At the height of the lockdown in April, the government also extended the payment deadline for local taxes, without interest or penalties, as part of the first relief package under RA 11469 or the Bayanihan to Heal as One Act.

The DoF said the new relief measure aims to ease the burden of households and businesses severely affected by the coronavirus pandemic.

The circular asked LGUs and local treasurers to inform the taxpayers of the new dates. They also need to reconfigure the electronic information systems to incorporate the new deadline.

Local treasurers have also been told to postpone administrative or judicial actions they were planning to conduct while the law is still in effect.

Taxpayers who want to settle their fees early can also do so as LGUs were ordered to accelerate implementation of electronic payment systems.

The Bureau of Local Government Finance (BLGF) can provide technical help to LGUs in implementing the new guidelines. The BLGF will also monitor compliance. — Beatrice M. Laforga

Farmers seek bigger say in agri modernization

FARM ORGANIZATIONS asked Agriculture Secretary William D. Dar to consult more extensively to guide the implementation of Republic Act No. 8435, or the Agriculture and Fisheries Modernization Act (AFMA).

In an open letter, 58 leaders of various agricultural organizations, such as the United Broilers Raisers Association, Samahang Industriya ng Agrikultura, the Philippine Chamber of Agriculture and Food, Inc., and the Federation of Free Farmers, said the lack of consultation by the Department of Agriculture (DA) does not meet its obligations under the law.

They said that under the law, stakeholders must be consulted in the formulation and the implementation of the Agriculture and Fisheries Modernization Plan.

“This means the participation in making budget requests and full transparency in program implementation. This would entail the designation of clear performance targets and quantifiable and verifiable impact indicators and the conduct of up-to-date monitoring and impact assessment,” they said.

They said they were not consulted on the AFMA, which tackles issues like food security, poverty alleviation, income enhancement, global competitiveness, and sustainability.

The agricultural groups said one of the components of the AFMA that was not implemented was a national information network (NIN) with industry data, modeled on a system in place in the US.

They said, NIN will provide information and marketing services such as data on supply, demand, price and price trends, as well as market forecasts.

“It is the reason for the disconnect between farmgate and retail prices for agricultural commodities. It is also why issues such as unfair trade and smuggling have not been addressed,” they said.

They added that other AFMA provisions not implemented were the establishment of Strategic Agriculture and Fisheries Development Zones and Agro-Industry Modernization Credit and Financing Programs.

“The first step is to follow the law and implement AFMA. That is the only way to effectively gain the trust and respect of stakeholders,” they added.

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said last week that the agriculture sector has not reflected improvement commensurate to its level of funding.

Mr. Chua added that the performance of the farm sector is hindered by restrictive policies that slow competition and productivity.

The Department of Budget and Management approved a budget of P66.4 billion for the DA in 2021. — Revin Mikhael D. Ochave

The significance of the Electronic Commerce Act during the pandemic

Twenty years ago, RA 8792 (the Electronic Commerce Act) was signed into law. The government was preparing for the digital age as the world moved on to information and technology-based means of communication. It is safe to say that the progress towards using information technology for business did not escalate the way it was predicted. The cost involved in ensuring integrity of electronic documents has been one of the challenges of the business sector and the government in transforming to fully IT-based operation. Before the pandemic, the business sector relied on face-to-face interaction, including inquiries, follow-up and manual submission of reporting requirements to the government. The latter still uses traditional means of communication when sending notices to taxpayers as well. For signatures on reports submitted to the government, wet-ink signatures on documents have been consistently and strictly required.

Earlier this year, due to the pandemic, most of the government offices we deal with, such as the Board of Investments (BoI), the Philippine Economic Zone Authority (PEZA), the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC) and even some Local Government Units (LGU), resorted to the use of e-mail as the main mode of communicating with clients. Memorandum circulars (MC) were issued to address the challenges in sending and receiving reporting requirements while working remotely. For instance, the SEC issued MC No. 10 series of 2020 to facilitate the receipt of submission of reporting requirements of corporations and other entities. The MC allowed submission by electronic mail (e-mail) and the use of electronic signature, as defined by RA 8792, for the reports and files. It was evident that the issuance was a temporary solution to the enhanced community quarantine (ECQ) being implemented at that time as companies were still required to ensure that reports be accompanied by wet-ink signatures of authorized signatories, with hard copies of the documents to be filed after the quarantine.

Recently, in an apparent move towards long-term reliance on Information and Communication Technology (ICT) for receiving and sending documents via electronic means, SEC MC No. 28 highlighted the validity and enforceability of electronic data messages based on RA 8792. Fundamentally, the MC aims to facilitate and expedite the transmission and receipt of official communications and enhance their integrity for all transactions with the SEC. To achieve this, security measures such as Multi-factor Authentication (MFA) are mandatory, including the use of mechanisms, such as One-Time Personal Identification Number (OTP) systems or two-step verification by a Software-based Authenticator.

The MC requires corporations, partnerships, associations, and individuals to formally designate an official and alternate e-mail and cellphone number for their transactions with the SEC. These entities and individuals are given 60 days from the date of effectivity of the circular to comply with the submission. For future applications and for those with pending applications, such information must either be indicated upon filing of registration forms or submitted within 30 days from the issuance of the certificate of registration, license, or authority. The MC further requires that beginning Feb. 23, 2021, the information should be included in the General Information Sheet (GIS) or Notification Update Form (NUF) regularly filed with the SEC; otherwise such documents will be considered incomplete.

The e-mail addresses and cellular phone numbers will be under the control of the corporate secretary, the person charged with the administration and management of the corporation sole, the resident agent of the foreign corporation, the managing partner, the individual, or their duly authorized representative. These requirements mean additional responsibilities for corporate secretaries and authorized representatives because under Section 8 of the MC, companies must use the official and alternate e-mail addresses for transactions, applications, letters, requests, papers and pleadings under the jurisdiction of, or for consideration by, the Commission. “The Commission may likewise send notices, letter-replies, orders, decisions and/or other documents through the e-mail addresses and there is a presumption that these notices are deemed received by the entities on the date so sent by the SEC. Service of notice through this process shall be considered compliance with the notice requirement of administrative due process.” Thus, these e-mail addresses and cellular phones must be strictly monitored to avoid prescription of the reglementary period required to respond to the notices, orders and similar documents sent by SEC.

While the MC entails additional work for corporate secretaries, authorized representatives, and practitioners like us dealing with the SEC, this is definitely a welcome development. These types of issuances ensure everyone’s safety while bringing into mainstream the online means to communicate. Establishing the use of information technology as the means to communicate will maximize the resources of both the government and private sector.

We are looking forward to other government agencies to follow suit and institutionalize the use of information and communications technology defined under RA 8792. Other government agencies may also establish clearer rules and remove any cloud of doubt on the validity of documents filed electronically and use of electronic signature.

On a related note, I think we can all agree that the time has come to apply the provisions of the two-decade-old law, especially in terms of using electronic signatures. While some government agencies receive and recognize reports, letters, and requests affixed with electronic signatures, there are several instances where filing was refused, and taxpayers were required to refile using another copy with wet-ink signatures on the document.

We hope that due consideration be given on Sections 8 and 9 of the Electronic Commerce Act on the legal recognition and presumption relating to electronic signatures in formulating memorandums and circulars relevant to the submission of electronic documents and the use of information-technology based communications.

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.

 

Gemmalu O. Molleno-Placido is a senior 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

Philippines to vaccinate 25M citizens next year

THE PHILIPPINES will try to order 50 million coronavirus vaccine units for 25 million Filipinos next year, according to its vaccine czar.

The government is in talks with embassies in other countries for a government-to-government arrangement for vaccine supplies, Carlito Galvez, Jr., who is also the chief enforcer of the state’s anti-coronavirus efforts, told an online news briefing on Monday.

He said preparations and planning for the national vaccination program could take six months.

The “best case scenario” is having vaccines available by May to July through COVID-19 Vaccines Global Access (COVAX) facility and bilateral agreements.

The bulk of the vaccine orders is likely to arrive by the end of 2021 or early 2022, Mr. Galvez said, citing potential supply problems as rich countries try to buy much of the production.

COVAX, co-led by Gavi, the Vaccine Alliance, Coalition for Epidemic Preparedness Innovations and the World Health Organization, aims to ensure availability of COVID-19 vaccines to all countries.

Mr. Galvez said frontliners, essential workers, vulnerable and poor communities as well as areas that are the epicenter of the pandemic would be prioritized for immunization.

The Department of Health (DoH) reported 2,058 coronavirus infections on Monday, bringing the total to 398,449.

The death toll rose by 108 to 7,647, while recoveries increased by 182 to 361,784, it said in a bulletin.

There were 29,018 active cases, 82.7% of which were mild, 9.4% did not show symptoms, 5% were critical and 2.8% were severe.

Rizal province reported the highest number of new cases at 103, followed by Davao City and Maguindanao at 81 each, Quezon City at 77 and Cavite at 76.

DoH said four duplicates had been removed from the tally, three of which were changed to “recovered.” Thirty-three cases previously tagged as recovered were reclassified as deaths.

Nine laboratories failed to submit their data on Nov. 8., it added.

About 35.8 million people have recovered from the coronavirus worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

ROAD MAP
Meanwhile, the presidential palace said the government would try to finish its vaccine procurement program by early next year after Mr. Duterte approved the vaccine road map last week.

His spokesman Harry L. Roque said the coronavirus disease 2019 (COVID-19) vaccines roadmap was approved by President Rodrigo R. Duterte last Thursday.

Under the plan, the vaccine orders, shipment and storage must be finished by March, he said.

Mr. Roque said the government would try to forge bilateral vaccine arrangements with China, Russia, the United Kingdom, Japan, South Korea, India, Israel, Germany and members  of the Association of Southeast Asian Nations (ASEAN).

The government may also have tripartite agreements with the US, Britain and Indonesia, he said. Multilateral agreements for pooled vaccine purchase with other ASEAN countries and the Asian Development Bank, World Bank, World Health Organization and other international groups may also be used.

Mr. Duterte last month said the government had funds to buy coronavirus vaccines, but it needed more so the entire population of more than 100 million could be inoculated.

He said he would look for more funds so all Filipinos could be vaccinated. The President said he was okay with vaccines developed either by Russia or China.

Mr. Duterte said he had spoken with outgoing Russian Ambassador Igor A. Khovaev and was told that Russia intends to set up a pharmaceutical company in the Philippines that will make the vaccines available here.

He said soldiers and the police would be among the first ones to be vaccinated, along with poor Filipinos.

Also on Monday, the Department of Foreign Affairs said almost 8,600 migrant Filipinos came home from the Middle East, Asia-Pacific region and Europe in the first week of November amid a pandemic that has sickened 50.8 million and killed more than 1.3 million people worldwide.

Of the total stranded workers, 6,947 came from the Middle East, 948 from the Asia-Pacific region and 693 from Europe, the agency said in a statement. This brings the total beneficiaries of the government’s repatriation program to 245,954 Filipinos as of Nov. 8 since it started in February. Of the total, 166,492 were land-based overseas Filipino workers, while the rest were seafarers.

The department also helped bring home Filipinos for various medical reasons and victims of human trafficking.

“Despite the pandemic, the DFA also successfully completed the medical repatriation of overseas Filipinos from Cuba, Brunei, Pakistan and Bahrain,” it said.

“Victims of trafficking-in-persons from Damascus, Syria were also repatriated this week through the efforts of our Philippine Embassy in Damascus.”

In its latest report, the agency said 11,400 migrant Filipinos in 82 countries and regions have been infected with the coronavirus, 3,200 of whom were being treated, 7300 have recovered and 828 died. — Vann Marlo M. Villegas, Gillian M. Cortez and Charmaine A. Tadalan

Brazil envoy served with complaint for ill treatment of aide

THE DEPARTMENT of Foreign Affairs (DFA) has served a complaint to the Philippine envoy in Brazil who was recalled after mistreating her Filipino domestic helper, Foreign Affairs Secretary Teodoro L. Locsin, Jr. said on Monday.

“The charge was served on her at 8:25 a.m. today,” he said in a social media post, referring to former Philippine Ambassador to Brazil Marichu B. Mauro. “I sent a memo to the President on it.”

Mr. Locsin said the DFA hearing panel’s report and charge will be reviewed by the Board of Foreign Service Administration and by him. “It shouldn’t take too long.”

On Oct. 30, he formed a fact-finding team that investigated Ms. Mauro after President Rodrigo R. Duterte gave his consent.

The team included Philippine Consul General in Sydney Ezzedin H. Tago, former Philippine Ambassador to the Netherlands Jaime B. Ledda, Philippine Ambassador to Oman Narciso T. Castañeda and lawyer Ihna Alyssa Marie Santos of the Human Resource Management Office.

Mr. Locsin did not specify the charges recommended against Ms. Mauro, who was seen repeatedly berating, slapping and pulling the ear of a female member of her household staff in a video compilation.

The worker had since returned to her home province in South Cotabato, where she had undergone a 14-day quarantine period for the coronavirus. She also received financial and legal aid from the DFA and Senator Juan Miguel F. Zubiri.

Mr. Zubiri earlier said Ms. Mauro violated provisions of the Code of Conduct and Ethical Standards for Public Officials and Employees, Revised Penal Code and the Domestic Workers Act.

Mr. Locsin recalled the diplomat for questioning over the incident.

Presidential spokesman Harry L. Roque earlier said Mr. Duterte wanted justice for the worker as part of his campaign to protect migrant Filipino workers.

Mr. Roque said the DFA could recommend administrative and criminal charges against Ms. Mauro depending on the results of its probe. — Charmaine A. Tadalan

Marcos wants justice out of election case

LOSING vice presidential candidate Ferdinand R. Marcos, Jr. and the Office of the Solicitor General have asked Associate Justice Mario Victor F. Leonen to inhibit himself from his election protest, citing bias.

In a 21-page motion, the son of the late dictator Ferdinand E. Marcos asked the high tribunal to re-raffle the case to another justice.

Mr. Leonen, an appointee of ex-President Benigno S.C. Aquino III and who presides over the case, “displayed palpable bias and partiality against the entire Marcos family,” he said, citing the justice’s dissenting opinion on his father’s burial case.

“Given the fact that the Supreme Court is a collegial body, it would be unfair and unjust for the other members of this esteemed tribunal to be tainted by the apparent impropriety of Associate Justice Leonen,” Mr. Marcos said.

The court, sitting as the Presidential Electoral Tribunal, resolves election cases involving the President and vice president.

Mr. Marcos accused the magistrate of trying to delay the case by ordering the Commission on Elections and Solicitor General to comment on the tribunal’s authority to annual an election result or order special polls.

“We have to do something because it’s very clear that Justice Leonen has prejudged this case, is hostile to me and to my family,” Mr. Marcos told an online news briefing on Monday. “If Justice Leonen continues to sit as the justice in charge, for sure, it will be delayed.”

Lawyers of Vice President Maria Leonor G. Robredo criticized the plea. “While we’re all for the dismissal of the case, it is unfortunate that Ferdinand “Bongbong” Marcos, Jr. again resorts to attacking a Supreme Court magistrate,” lawyers Beng Sardillo and Emil Marañon said in a statement.

They said the Mr. Marcos’s motion is another “mind-conditioning game” meant to attack the integrity of an institution “to force them to give in to his desires.”

“May we remind Mr. Marcos that it’s already 2020,” the lawyers said. “This is no longer the period of his father’s reign of terror where they can do anything they want. Stop acting like a spoiled brat who cries when he doesn’t get his candy.”

In a separate motion, Solicitor General Jose C. Calida said Mr. Leonen inaction for 11 months proves his partiality against Mr. Marcos, citing his “expressed disdain” toward the Marcos family.

Mr. Marcos filed the protest in June 2016 after narrowly losing to Vice President Maria Leonor G. Robredo, claiming there was fraud.

A resolution released in October last year showed that Ms. Robredo’s lead against Mr. Marcos in the pilot provinces of Camariñes Sur, Iloilo, and Negros Oriental rose by about 15,000 votes after the initial recount. — Vann Marlo M. Villegas and Kyle Aristophere T. Atienza

Bill vs child marriage approved

The Senate on Monday approved on third and final reading a bill that seeks to outlaw child marriages in the Philippines.

With 21 yes votes, no negative and abstention, the chamber passed Senate Bill 1373, which seeks to protect children from abuse and other forms of exploitation.

“The issue of child, early and forced marriages is one that is largely invisible to us here in Metro Manila, but it is a tragic reality for scores of young girls who are forced by economic circumstances and cultural expectations to shelve their own dreams,” Senator Risa N. Hontiveros-Baraquel said during Monday’s session.

Under the measure, people who arrange a child marriage will be jailed for as long as 10 years and fined at least P40,000.

A violator who is an ascendant, stepparent or guardian of the child will be jailed for as long as 12 years and fined at least P50,000. — Charmaine A. Tadalan

Nationwide round-up (11/09/20)

Cop in quarantine violation controversy is new police chief

MAJOR Gen. Debold M. Sinas, who became controversial earlier this year for having a birthday party during the strict quarantine period, has been appointed  by President Rodrigo R. Duterte as head of the police force. Mr. Sinas, head of the National Capital Region (NCR) police, is replacing Gen. Camilo P. Cascolan who is stepping down on Nov. 10 as he reaches the mandatory retirement age of 56. In a briefing on Monday, Palace Spokesperson Harry L. Roque said it the President’s “prerogative” to choose the head of the Philippine National Police. “Presidential appointments are really very executive in character. It is a prerogative of the President and he need not make any explanation for his appointment,” he said. Mr. Sinas made headlines in May after the NCR police office itself posted photos of his birthday celebration while the country was under lockdown rules. He later defended that the gathering was not a party but a “mañanita.” Mr. Roque said the President recognizes that Mr. Sinas is “not perfect” but chose to focus on track record, which includes his role in the administration’s anti-drug war. — Gillian M. Cortez 

Solon wants funds for underperforming GOCCs realigned for disaster relief

SUBSIDIES for nonperforming and underperforming government-owned and controlled corporations (GOCCs) worth P200 billion would be better used for disaster relief and coronavirus response measures, a lawmaker said on Monday. Senator Sherwin T. Gatchalian, chair of the committee on energy and economic affairs, said the amount can “augment funds” for coronavirus disease 2019 (COVID-19) recovery programs as well as restoration work in areas affected by two recent strong typhoons, Quinta and Rolly. Mr. Gatchalian issued the statement following a recent 2021 budget hearing where he noted that some P201 billion has been earmarked as subsidies for 118 GOCCs that remitted only a total of P47 billion dividends in 2019. Among these underperforming GOCCs is the Philippine National Oil Company Renewables Corp. which has already been recommended for abolition. — Angelica Y. Yang

Lawmakers reject mail-in voting

AT least three members of Congress have rejected the proposal to use mail-in voting for the 2022 national and local polls, citing possibilities of election fraud. “I am not so keen nor am I convinced that our system can adopt the mail-in voting system,” Senate Minority Leader Franklin M. Drilon said at an online briefing on Monday. “We do not have the infrastructure needed to assure our people that the voting by mail will reflect the true intent of our people,” he said. Elections Commissioner Ma. Rowena Amelia V. Guanzon last week pushed for postal voting after the United States concluded its national elections, which gave that option to voters amid the coronavirus outbreak. A bill has also been filed in the Senate proposing to allow certain sectors, such as senior citizens, pregnant women, persons with disabilities and indigenous people, to vote by mail. Senate Bill No. 1870 and House Bill No. 7572, authored by Senator Imee R. Marcos and Marikina Rep. Stella Luz A. Quimbo, respectively, were filed in light of health crisis. Senate President Vicente C. Sotto III is also not in favor of the mail-in voting system, saying over phone message to reporters that “it’s the easiest system of voting to cheat.” Agusan del Norte Rep. Lawrence H. Fortun, a member of the House of Representatives suffrage and electoral reform committee, also finds the Philippine Postal Corp. vulnerable to political influence. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

Online shopping sites told to self-regulate vs drug paraphernalia listings

ONLINE shopping sites should self-regulate and go after personalities involved in the sale of illegal drugs and related paraphernalia, a lawmaker said Monday, citing a surge in such transactions over the internet. “Online platforms must exercise due diligence with regards its merchants and not pass off the responsibility to law enforcement agencies to run after people who are behind these online illegal activities,” Valenzuela Rep. Weslie T. Gatchalian, committee on trade and industry chair, said during an inquiry into the alleged cases of online fraud and distribution of illegal drugs through online shopping sites or social media, citing a report from the Philippine Drug Enforcement Agency. Meanwhile, a group of consumers urged the government to file charges against all personalities allegedly involved in illegal online transactions. Laban Konsyumer President Victorio Mario M. Dimagiba told the committee that the list should include the owners and administrators of online sites and applications. “This is happening precisely because there are currently no regulations that will compel these platforms to ensure the safety of our consumers,” Mr. Gatchalian said, as he called on the House of Representatives to pass House Bill No. 6122, or the proposed Internet Transactions Act. The proposed law will create an E-Commerce Bureau, which will go after online merchants involved in illegal transactions. — Kyle Aristophere T. Atienza

COVID-positive Filipino workers abroad get gov’t help

A TOTAL of 3,102 overseas Filipino workers (OFWs) who tested positive for the coronavirus were given assistance worth nearly P30 million, the Department of Labor and Employment reported on Monday. International Labor Affairs Bureau Director Alice Q. Visperas, in a briefing, said they have given “US$621,000 (P29.9 million) to OFWs,” particularly those in countries where there is a Philippines Overseas Labor Office. Latest government data show at least 9,402 OFWs have been infected with coronavirus disease 2019 (COVID-19) worldwide, including 4,000 who have recovered. — Gillian M. Cortez 

Proposed law vs child marriages hurdles final Senate reading

THE Senate on Monday approved on third and final reading the measure that will declare child marriages illegal in the Philippines. With 21 affirmative votes, no negative and abstention, the chamber passed Senate Bill No. 1373 protecting children from abuse and other forms of exploitation by penalizing persons who will arrange or officiate child marriages. “The issue of child, early and forced marriages is one that is largely invisible to us here in Metro Manila, but it is a tragic reality for scores of young girls who are forced by economic circumstances and cultural expectations to shelve their own dreams,” Senator Risa N. Hontiveros-Baraquel said during Monday’s session. Penalties include a fine of at least P40,000, and higher especially if the perpetrator is an ascendant, stepparent or guardian. At least three bills, prohibiting child marriage, have been filed in the House of Representatives and are pending at the committee level. — Charmaine A. Tadalan

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