Nationwide round-up (01/21/21)

January 21, 2021 | 7:59 pm

NPC flags WhatsApp’s planned privacy policy changes

THE National Privacy Commission (NPC) has flagged concerns about mobile messaging application WhatsApp, which is planning to implement privacy policy changes that will include sharing user data with third-party companies hosted by Facebook. The Facebook-owned app is adjusting its privacy policy so that users can interact with businesses through the technology, sparking global user concern about data being shared with the social media giant. The NPC said the company has not yet addressed concerns about the scope of data that Facebook and its partner companies will be able to harvest from the messaging app, and if the new policy is mandatory for all users. “While the Commission takes positive note on WhatsApp’s emphatic assurance on its continued end-to-end encryption of messages and calls, we would like to note that encryption is a bare minimum requirement for ensuring data protection,” it said in a statement on Thursday. The commission cited several concerns, including third party involvement in operations, account deletion without notice, use of personal data for advertising, and information gathering through third parties, among others. “The commission is closely monitoring developments and will directly coordinate with WhatsApp to extract specific details on the new policy, as we seek to understand more the data protection measures it currently adopts or will possibly adopt.” WhatsApp has moved its privacy policy update to May 15. — Jenina P. Ibañez

Central bank officials ready to answer complaint on alleged corruption in national ID program

OFFICIALS of the Bangko Sentral ng Pilipinas (BSP), including Governor Benjamin E. Diokno, will face complaints against them relating to an alleged irregular bidding process on materials for the National ID system in a “proper forum.” “As regards the complaint filed with the Ombudsman relative to the procurement for the printing of cards for the National ID System, rest assured that the BSP officials concerned will respond in the proper forum once required in accordance with applicable rules,” the central bank said in a statement on Thursday. The complaint was filed on Wednesday before the Office of the Ombudsman by the Stop Corruption Organization of the Philippines, Inc. (SCOPI), claiming that central bank officials did not undertake “competitive bidding” for the procurement of raw materials that will be used for the ID system. Other respondents include officials from the BSP Security Plant Complex Bids and Awards Committee led by Chairperson Prudence Angelita A. Kasala and Vice Chairperson Marianne M. Santos. Officials from the BSP Banknotes and Securities Printing Department Director Carl Cesar H. Bibat and Acting Production Manager Marianne M. Santos are also named in the complaint. “The BSP supports the rollout of the National ID as it is key to wider financial inclusion that promotes shared economic growth and the financial wellbeing of Filipinos,” the BSP said. Mr. Diokno was discharged from hospital on Wednesday following a Sunday medical procedure relating to a minor head injury. The BSP said he may already preside over the Monetary Board meeting as early as next week. — Luz Wendy T. Noble

PPA contractors to be required to plant trees, mangroves

FIRMS with contracts granted by the Philippine Ports Authority (PPA) will now be required to plant trees and mangroves as part of government efforts to protect the environment. Starting Feb. 2, the PPA’s service and goods providers as well as those involved in port facilities construction and dredging will be required to plant at least 1,000 seedlings for every contract, accreditation, and permit issued by the agency. Port service providers must also plant additional seedlings, including 100,000 for port terminal operators and 500,000 for private operators. Cargo handling and passenger terminal building operators must also plant 50,000, while roll on-roll off operators and harbor pilots must plant an additional 25,000 and 10,000, respectively. “Compliance with the requirements shall be made not later than one year after the issuance of the documents or from the effectivity of this order, whichever comes first,” PPA General Manager Jay Daniel R. Santiago said in a statement. Non-compliance could result in the cancelation or non-renewal of permit or contract. — Jenina P. Ibañez

Regional Updates (01/21/21)

January 21, 2021 | 7:59 pm

Bacolod, Negros Occidental map out tourism sector’s reopening

NEGROS Occidental province and the independent city of Bacolod have jointly started planning for reopening to tourists, along with possible recovery measures such as tax breaks to help industry players beat up by the coronavirus pandemic. “If you (tourism stakeholders) have any proposal, we are willing to go over them, we are open to that. If we can hear your proposal, I can take it up with the SP (Sangguniang Panlungsod or the city council),” Mayor Evelio R. Leonardia of Bacolod, the province’s commercial center, said during a stakeholders’ meeting on Tuesday organized by the Department of Tourism (DoT). Tourism Secretary Bernadette Romulo-Puyat, who was on a three-day visit to the province this week, said it is important to have localized plans for restarting tourism activities. “As the pandemic affected various regions in different ways, it was evident that there was no ‘one-size-fits-all’ solution to restart tourism. Through regular dialogues and consultations with local government units (LGUs) and stakeholders, we can better understand the situation in the areas and help address the most pressing needs of the constituents,” she said during the meeting. Among the areas that have reopened to domestic travelers are the islands of Boracay and Siargao, Ilocos Region, and Baguio City. Ms. Puyat, who also led the distribution of financial assistance to displaced workers and soft loans to establishments under the government’s COVID-19 response programs, announced that the department has other ongoing projects to help industry players such as subsidies for the RT-PCR testing of tourism employees. Negros Occidental, including Bacolod, has recorded 12,243 coronavirus disease 2019 (COVID-19) cases as of January 20, of which 284 are active. There have been 11,598 recoveries. The province is known for its colonial houses and other heritage sites, beaches and eco-tourism sites. — MSJ

Coca-Cola PHL opens new ‘smart’ distribution hub in Manila

COCA-COLA’S bottling arm in the country has opened a new distribution hub in Manila equipped with a smart logistics system, which will become a model for other centers across the country. In a statement on Thursday, Coca Cola Beverages Philippines, Inc. (CCBPI) said the facility jumpstarts “a series of bullish investments for 2021” in line with expansion plans nationwide. “The new site will also be a testing hub for all process and capability improvements to be rolled out to the rest of Coca-Cola distribution facilities across the country,” the company said. CCBPI Chief Executive Officer and President CEO Gareth McGeown said the distribution center will also open job opportunities for locals of the host area such as in Manila. All the hub’s regular employees are Manila residents. “This pandemic taught us so many things. Value to one’s life, value to family, value to health and safety. We have learned a lot from both our achievements and shortcomings during the pandemic, but we are sure that what will help us more in the coming months are jobs,” Manila Mayor Francisco M. Domagoso is quoted in the statement. “We are optimistic that in one way or another, business will bounce back. So in return for the trust that Coca-Cola is giving us, we (will) ensure that we (Manila government) will be efficient as we overcome the pandemic together.”

Zamboanga City ready for leisure visitors by February

ZAMBOANGA City is ready to reopen its borders to tourists starting February, the local government announced on Thursday. “Leisure and non-essential visits will soon be allowed as Zamboanga City reopens for tourism next month,” the city government said in a statement. Visitors will have to comply with requirements such as negative result of an RT-PCR test for the coronavirus, confirmed booking at an accredited hotel, and authority to enter from the city government, among others. The city’s island destinations, Sta. Cruz and Islas, are also set to reopen. For other information, visit the city’s social media pages or email turimolocal.promotions@gmail.com.

DoF warns against delaying PhilHealth premium hike

January 21, 2021 | 7:28 pm

THE Department of Finance (DoF) said proposals to defer the hike in premiums for members of the Philippine Health Insurance Corp. (PhilHealth) scheduled for 2021 and 2022 will have an “adverse” effect on the healthcare insurance’s fund.

The Bureau of the Treasury’s Deputy Treasurer Sharon P. Almanza made the remarks at a House of Representatives hearing on PhilHealth premiums.

“The Department of Finance recognizes the intent of the deferment of the direct contributors premium… we would like to emphasize the impact of the national health insurance fund. It will have a very adverse effect on the fund and perhaps the fiscal space of the PhilHealth,” she said.

On Thursday, the House Committee on Health approved House Bill (HB) No. 8316 filed by Speaker Lord Allan Jay Q. Velasco. The bill gives the President the power to defer the increase in premium rates for PhilHealth members.

“In this particular situation, the scheduled increases are actually statutory,” according to Marikina Representative Stella Luz A. Quimbo, speaking at the hearing. She added that the resort to Presidential intervention proposed by the measure is a matter of “expediency.”

In a December speech, Mr. Duterte called for the suspension in contribution increases.

House legislators are also seeking a suspension, citing the effects of the pandemic.

PhilHealth President Dante A. Gierran said at the hearing Thursday that the agency supports the granting of powers to the President to suspend premium increases in times of national emergency, “provided that the scheduled premium contributions can be adjusted in the years following the suspension.”

The House Committee on Government Enterprises and Privatization meanwhile approved HB 8317 which allows the President to suspend scheduled increases in contributions by Social Security System members. The bill was also filed by Mr. Velasco. — Gillian M. Cortez

SSS opposes suspension of scheduled contribution hikes

January 21, 2021 | 7:27 pm

THE Social Security System (SSS) opposed proposals to suspend any increases in its members’ contributions, adding this will “jeopardize” its ability to provide benefits.

“The SSS respectfully expresses its opposition to the proposals because of its expected financial impact on the financial health of the SSS,” according to SSS President Aurora C. Ignacio, speaking at a House hearing Thursday discussing a bill allowing the suspension of scheduled increases in SSS contributions.

Ms. Ignacio also added that deferring the hike will affect the fund’s ability to provide for pensioners, members, and their beneficiaries.

Ms. Ignacio added that the proposals “tend to weaken rather than strengthen the SSS especially during these difficult times.”

The Social Security Act of 2018 called for contribution increases in 2019, 2021, 2023, and 2025.

On Thursday, the House Committee on Government Enterprises and Privatization approved House Bill (HB) No. 8317 which allows the President to suspend increases in contributions by SSS members. The measure was filed by House Speaker Lord Allan Jay Q. Velasco.

The Committee’s chairman, Parañaque City Representative Eric Olivarez, said a committee report on the approval of HB 8317 will be submitted Monday. — Gillian M. Cortez

BIR streamlines digital accounting system registration process

January 21, 2021 | 7:27 pm

THE Bureau of Internal Revenue (BIR) said it will no longer require taxpayers to obtain a “permit to use” (PTU) when registering their computerized accounting systems (CAS).

BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular (RMC) No. 5-2021, dated Jan. 8, providing for a simplified registration processes for CAS, computerized books of account and its components, including the electronic storage system (ESS), middleware and other similar systems.

The new circular replaces RMC No. 10-2020.

However, the BIR said other documents are still needed for the registration of such systems, including a sworn statement, sample print-outs of receipts, invoices and books of account, a copy of the audit trail, and completed BIR forms.

It said the application for authority to use CAS or its components is also no longer required when applying to register.

During the registration process, the BIR will also not require demonstrations or pre-evaluation before they can be used. Instead, these platforms will only have to be subjected to post-evaluation by the Revenue District Office (RDO).

Those already holding a PTU for the system do not have to apply again as these will still be considered valid.

If there are major changes or updates to the software, the BIR said taxpayers have to submit a new application for registration, or else the current PTU or registration will be revoked. In case of minor changes, a written notice detailing the changes made must be sent to the RDO or large taxpayers office. — Beatrice M. Laforga

Overstaying cargo disposals generate P1.1 billion — Customs bureau

January 21, 2021 | 7:27 pm

THE Bureau of Customs (BoC) raised P1.077 billion from the disposal of 3,514 overstaying containers last year as part of an overall port decongestion effort.

The BoC said in a statement Thursday that revenue was generated from auctions involving 1,898 containers, holding items like televisions, tiles and plywood.

It donated the contents of 270 containers while that of 1,346 containers was condemned.

“The significance of these disposition activities is in connection with the ease of doing business in the bureau, as these will also result in the decongestion of ports and yards,” the BoC said.

After the lockdown to curb the spread of coronavirus disease 2019 (COVID-19) starting mid-March, ports started experiencing congestion in early April, putting them at risk of shutting down.

Unclaimed containers piled up in ports, especially in Manila, as factories shut down operations and travel restrictions hampered their ability to move goods.

Customs issued Circular Memorandum Order No. 10-2020 on April 8, 2020, declaring that cargo in ports and yards found to have overstayed more than 30 days from the date of discharge will be classified as abandoned.

Disposals helped make way for incoming shipments of critical goods, including food, medical items and personal protective equipment.

The BoC is authorized by law to donate, declare for official use, or sell at auction seized or abandoned items. Food, clothes, medicine and other goods that are suitable for shelter can also be donated to the Department of Social Welfare and Development. — Beatrice M. Laforga

Pressure on telcos to improve services will continue — DICT

January 21, 2021 | 7:27 pm

THE Department of Information and Communications Technology (DICT) said the government, including President Rodrigo R. Duterte, will not ease the pressure on telecommunications companies to improve their services.

At a briefing Thursday, DICT Assistant Secretary Emmanuel R. Caintic said the government has “no reason” to stop pushing for better telecommunications services.

“But at the same time, we should do our best, as government also, to alleviate problems with the permits.”

Telcos have cited slow permit approvals for delays to their infrastructure buildout, causing the government to verify the various agencies’ compliance with permit deadlines set out in the Ease of Doing Business Law.

The Palace reported Thursday that internet speeds have improved due to the construction of new communication towers and the installation of fiber optic lines across the country.

At the same briefing, the President’s Spokesman Herminio L. Roque, Jr. presented a report by Ookla, an internet speed testing site, indicating that mobile download speeds improved by 202.4% between July 2016 and December, while fixed broadband speeds rose 297.47% during the same period.

Ookla measured fixed broadband speed at 31.44 megabits per second (Mbps) in December from 7.91 Mbps in July 2016. Meanwhile, mobile download speeds improved to 22.50 Mbps from 7.44 Mbps over the same period.

Mr. Roque also reported a total of 2,939 telco towers were built between July and December.

The President in July 2020 told telcos to improve their services “before December” or risk shutdown.

Mr. Caintic said the DICT is already looking at a joint memorandum circular to “ease up” on the permits needed for the installation of fiber optic cable. He said the department hopes to release the circular by this quarter.

The construction of the national broadband project will start by July, he added. — Kyle Aristophere T. Atienza

No-disconnection policy extension urged for poor power consumers

January 21, 2021 | 7:26 pm

A SENIOR senator on Thursday called on the Energy Regulatory Commission (ERC) and distribution utilities like the Manila Electric Co. (Meralco) to extend the “no-disconnection” policy for low-income consumers until the end of the general community quarantine (GCQ).

In a statement Thursday, Senator Sherwin T. Gatchalian, who chairs the Senate committee on energy, said that this is “not the time to collect payments since there were many poor consumers who spent for Christmas.”

Two weeks earlier, Meralco’s Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said the company has started to issue disconnection notices to users falling behind on their payments. He said Meralco will be asking households consuming 201 kilowatt-hours (kWh) or more to settle their unpaid obligations this month, while those consuming 200 kWh and below were given until the end of January to pay.

Meralco’s no-disconnection policy on households with typical consumption was supposed to end on Dec. 31, but was extended until the end of January.

“It’s not the time to collect payments from low-income consumers. Christmas has just ended, and many Filipinos celebrated and spent what they could for it. It’s better to loosen the ‘no disconnection policy’ until the quarantine ends,” Mr. Gatchalian said in Filipino.

He also asked for “humanitarian consideration” for users with outstanding power bills.

Meralco’s Mr. Zaldarriaga has said the grace period has been in force for some time and that there was “no recourse on the firm’s part but to collect the overdue payments and consider the viability of their operations.”

BusinessWorld asked the ERC and Meralco to comment specifically on Mr. Gatchalian’s statement, but they had not replied at deadline time.

Meralco has said that it plans to increase its power rates by P0.2744 per kWh this month compared to December levels. Residential customers consuming 200 kWh are expected to pay an additional P55.

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 an interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Legislator touts P10B potential take from digital services VAT

January 21, 2021 | 7:26 pm

A PARTY-LIST legislator proposed taxing foreign companies providing digital services, noting the potential to raise up to P10 billion which could go to the government’s pandemic containment efforts.

In a statement, AAMBIS-OWA Party-list Representative Sharon S. Garin said major non-resident foreign corporations who profit from the Filipino market but are not registered with the Bureau of Internal Revenue must also be taxed.

The House of Representatives resumed discussions on House Bill No. 7425 in September the bill proposes the collection of value-added tax (VAT) from digital transactions.

She added that taxation levels the playing field between non-resident foreign entities and Philippines-registered businesses.

“The intention of the bill is to reduce the burden of taxpayers by simplifying payment without compromising accountability,” she said in the statement Thursday.

The bill calls for non-resident digital service providers to collect VAT on services. The threshold for VAT registration for non-resident digital service providers is gross sales of over P3 million.

Ms. Garin said only transnational services and transactions will be covered by the measure. — Gillian M. Cortez

Sotto to suit up for Gilas Pilipinas in FIBA ACQ third window in Clark

January 21, 2021 | 5:54 pm

By Michael Angelo S. Murillo, Senior Reporter

KAI Sotto will play for Gilas Pilipinas in the third and final window of the FIBA Asia Cup Qualifiers (ACQ) next month.

This was announced by the 7’3” Sotto himself in an Instagram video post, saying that he is heading back home soon to play for the national team in the ACQ window set for Feb. 18 to 22 at Clark City in Angeles, Pampanga.

“I’m heading home soon. I’m very excited that I’m given the opportunity to play for Gilas in the February window. I would like to thank all those who have supported me and believed in my dream of playing for the country and eventually in the NBA,” said Mr. Sotto in Filipino.

Initially, the young prospect’s status to play for Gilas in the window was deemed a long shot since he is currently in the United States as part of the Ignite team in the National Basketball Association (NBA) G League.

Mr. Sotto went to the US in 2019 to pursue his dream of making it to the NBA.

The NBA G League is set to begin its “bubble” tournament in February in Orlando and with Mr. Sotto playing for Gilas he is set to miss matches for Ignite.

For the third FIBA ACQ window, 18-year-old Sotto will be joining a team composed of a mix of Gilas cadet members and Philippine Basketball Association (PBA) players.

It will mark the first time that he will play for the seniors team after many tours of duty for the youth squad.

Gilas is currently at the INSPIRE Sports Academy in Calamba, Laguna, holding its training under strict health and safety protocols to guard against the spread of the coronavirus.

Cadet players already in the bubble since last week are Justine Baltazar, Javi Gomez de Liaño, Dave Ildefonso, Will Navarro, Calvin Oftana, Kemark Cariño, and naturalized player candidate Angelo Kouame.

They are joined by PBA player Kiefer Ravena, CJ Perez and Justin Chua, as well as Gilas PBA draft picks Isaac Go, Rey Suerte, Matt and Mike Nieto.

Set to join any time now are cadets Dwight Ramos and Juan Gomez de Liaño and pros Troy Rosario, Roger Pogoy, and Raul Soyud.

Once he arrives in the country, Mr. Sotto will have to observe quarantine procedures first before he gets to join the team in training.

In the ACQ, the Philippines currently leads Group A with an unblemished record of 3-0 and six points. Second running is Korea (2-0), followed by Indonesia (1-2) and Thailand (0-3).

Korea, however, was slapped sanctions by FIBA for failing to send a team in the second window in Manama, Bahrain, last November, and its ranking points in the tournament is to be affected.

Gilas is to play three games in February window — two against Korea (Feb. 18 and 22) and one versus Indonesia (Feb. 20).

In the qualifiers, the top two teams for each group in the end book an outright spot in the Asia Cup later this year in Indonesia.

Sexton, Cavs’ OT win spoils debut of Nets’ Big Three

January 21, 2021 | 5:53 pm

COLLIN Sexton hit the game-tying 3-pointer with 1.2 second left in the first overtime (OT) and scored 15 of his career-high 42 points in the second overtime as the host Cleveland Cavaliers outlasted the Brooklyn Nets for a 147-135 victory on Wednesday night.

Sexton gave Cleveland the lead for good at 128-127 on a free throw early in the second overtime. He then went on a binge that allowed the Cavaliers to win comfortably.

Sexton’s second 3-pointer of the final overtime made it 134-127 with three minutes left, and his final trey hiked the lead to 142-131 with 89 seconds left.

Sexton surpassed his previous career high of 41 set March 4, 2020, against Boston by scoring 31 points after halftime. He shot 16 of 29 from the field overall after missing the previous five games with an ankle injury.

Thanks largely to Sexton’s efforts, Cleveland overcome big nights in the debut of Brooklyn’s star trio of Kevin Durant, Kyrie Irving and James Harden, who each played the final 18-plus minutes.

Durant led the Nets with 38 points but missed a potential game-winning shot at the buzzer in the first overtime after Brooklyn blew a five-point lead in the final 1:53. He also put up 12 rebounds and eight assists.

Irving added 37 points in his first game back from a two-week absence due to personal reasons along with health and safety protocols. Harden posted his second triple-double in three games as a Net with 21 points, 12 assists and 10 rebounds.

The trio all played more than 48 minutes and combined for 28 points in the fourth quarter when the Nets overcame a 13-point deficit.

Cedi Osman added 25 points for the Cavaliers, who shot 51.4% from the floor. Cleveland placed seven in double figures after consecutive postponements in Washington due to the Wizards’ COVID-19 issues.

Irving forged a 113-113 tie with 68 seconds left in regulation with a tip-in. The Nets took a 120-115 lead with 1:53 left in overtime on a layup by Durant and led 127-124 on Durant two free throws with 8.9 seconds left.

Taurean Prince added 17 points for Cleveland while Larry Nance, Jr. and Damyean Dotson contributed 15 apiece. Andre Drummond finished with 13 while Jarrett Allen amassed 12 points and 11 rebounds against his former team.

Jeff Green contributed 16 for the Nets, who made their first 10 shots and shot 45.3% overall. — Reuters

Adiwang in ‘high risk, great reward’ fight at ONE: Unbreakable

January 21, 2021 | 5:52 pm

FILIPINO FIGHTER Lito Adiwang faces off with Japanese Namiki Kawahara at ONE: Unbreakable on Friday. — ONE CHAMPIONSHIP

By Michael Angelo S. Murillo, Senior Reporter

ONE Championship rolls off its first offering this year on Friday, which includes a match featuring Filipino fighter Lito “Thunder Kid” Adiwang; a bout that one local fight analyst sees as a “high risk, great reward” kind for the Team Lakay stalwart.

Coming off a narrow split decision loss in his last fight in November, Mr. Adiwang (11-3) is looking to bounce back at “ONE: Unbreakable” at the Singapore Indoor Stadium, the first event for the new year of Asia’s largest sports media property.

Mr. Adiwang is to face short-notice opponent and ONE-debuting Namiki Kawahara (6-3-2) of Japan in a three-round strawweight collision.

The Filipino was supposed to fight Japanese Hexigetu, but the latter was not able to secure his travel papers in time for the event, prompting ONE to put Mr. Kawahara as a replacement.

For local fight analyst Nissi Icasiano, the Kawahara fight will see Mr. Adiwang having his hands full, but a victory would surely benefit him in more ways than one.

“Adiwang has his hands full in this fight. Yes, Kawahara is just a short-notice replacement. But our Filipino bet should be on his toes and shouldn’t have any ounce of complacency because this Japanese will surely bring it to him. Kawahara has held a title under the banner of Deep and has shared the stage with vets and best up-and-comers in Japanese MMA. He is a well-rounded fighter and has knockout power and he is very much comfortable on the ground,” said Mr. Icasiano, also a host of Tiebreaker Vods’ The Hit List podcast, in an online interview with BusinessWorld.

“It’s a high-risk, great-reward kind of fight because this fight could earn him (Adiwang) a ticket back to the Top Five of his division,” he added.

But despite the challenge that awaits Mr. Adiwang in his ONE Circle return, Mr. Icasiano said the Team Lakay stalwart’s willingness to take it on and bring the goods should serve him well.

“The stake is much higher in this fight and I expect Adiwang to shine and reclaim his position in the strawweight bracket,” the analyst said.

ONE: Unbreakable is headlined by the ONE bantamweight kickboxing world championship clash between reigning champion Alaverdi Ramazanov of Russia and challenger Capitan Petchyindee Academy of Thailand.

Co-headliner is the lightweight mixed martial arts (MMA) battle between former champion Shinya Aoki of Japan and American James Nakashima.

Also on tap is Serbian heavyweight kickboxer Rade Opacic against Swiss Patrick Schmid; welterweight Zebaztian Kadestam of Sweden versus Gadzhimurad Abdulaev of Russia; and atomweights Meng Bo of China and Samara Santos of Brazil.

ONE Unbreakable will be broadcast live over One Sports and One Sports+ at 8:30 p.m. and an encore over TV5 at 11 p.m. on Jan. 23.